City Council

CITY OF POCATELLO, IDAHO CITY COUNCIL BUDGET DEVELOPMENT MEETING JUNE 9, 2021 AGENDA ITEM NO. 1: Mayor Brian Blad called the City Council Budget Development ROLL CALL Meeting to order at 9:02 a.m. Council members present were Roger Bray, Rick Cheatum, Linda Leeuwrik, Claudia Ortega and Chris Stevens. Council member Heidi Adamson arrived at 9:06 a.m. Jim Krueger, Chief Financial Officer, gave an overview of the previous Budget Development meeting held on June 8, 2021 in which the following department budgets were discussed: Pocatello Regional Airport; Parks and Recreation; Marshall Public Library; Street Operations; Sanitation; Fleet Department and Fuel Internal Service Fund. AGENDA ITEM NO. 2: Jeff Mansfield, Public Works Director, was in attendance to give PUBLIC WORKS a presentation. INTERNAL SERVICES FUND Mr. Mansfield reviewed the organization within the Public Works Department and current staffing levels. Service level changes and other major initiatives include:  The Public Works Internal Services Fund coordinates efforts between Engineering, Fleet, GIS, Science and Environment, Sanitation, Street, Water and Water Pollution Control Departments.  Leading efforts on impact fees and energy taskforce  Oversee award applications, Public Works proclamations, grant applications and compliance  Potential projects and initiatives to consider for funding has been provided AGENDA ITEM NO. 3: Justin Armstrong, Water Superintendent, was in attendance to give 2022 BUDGET a presentation on the following topics: Water Operations; Water PRESENTATION Capacity Fee; and Debt Service Funds. – WATER DEPARTMENT Mr. Armstrong reviewed the organization within the Water Department and current staffing levels. Service level changes and other major initiatives include:  Five-year Capital Improvement Plan (per Facility Plan and Rate Study) - projects include water line replacement projects; Pocatello Creek Booster and Transmission line; Well 12 and 13 pump replacement and reconfiguration; Phase 2 SCADA and Flow meter replacement; Well 22 redevelopment; West Bench 5 Million gallon tank interior recoating; Pressure management for two PRV stations; South Valley Booster; new well; material storage structures; Satterfield Well; Barton Booster surge tank and High Country tank replacement. Mr. Armstrong discussed the prospective timelines for various projects as identified in the Facility Plan and Rate Study and associated costs for projects.  2 BUDGET DEVELOPMENT MEETING JUNE 9, 2021 AGENDA ITEM NO. 4: Levi Adams, Water Pollution Control Superintendent, was present 2022 BUDGET to give a presentation on the following topics: WPC; and PRESENTATION Debt Service Funds. – WATER POLLUTION CONTROL (WPC) Mr. Adams reviewed the organization within Water Pollution Control (WPC) and current staffing levels. Service level changes and other major initiatives include:  Collection System Master Plan - updated in 2019  Treatment Plan Facility Plan - updated in 2021  Financial Plan - covers Fiscal Year 2020 through Fiscal Year 2024 to establish user fees and sewer rates Jared Johnson, City Attorney, clarified that proposed fee increases must come before Council during a public hearing prior to adoption. Reductions in fees are not subject to the requirement of the public hearing process, however, those fees become part of the adopted Fee Resolution. Mr. Adams stated that CIPP projects help extend the life of piping infrastructure by 60 years or more. In response to a question from Council, Mr. Adams stated that certain WPC positions require specific certifications and it can be challenging to replace retiring employees with qualified individuals. He added that recruitment for qualified public works employees is challenging in the public sector. AGENDA ITEM NO. 5: Chris Sorensen, Chief Information Officer, was in attendance to 2022 BUDGET give a presentation. PRESENTATION – INFORMATION TEHNOLOGY DEPARTMENT Mr. Sorensen reviewed the organization within the Information Technology Department (IT) and current staffing levels. Service level changes and other major initiatives include:  Costs for maintenance agreements has increased by 14.4%  Microsoft Exchange email services is moving to the cloud to ensure the City stays on the most current version of the Exchange, as the present system is 7 years old and in need of upgrade  Albert Intrusion Detection System contract increased 5%  Know Be 4 Cybersecurity training was moved to ICRMP provided contract to provide savings  Fiber installations have been completed to all viable locations to increase bandwidth, reliability and security  Minor increases are seen in hardware and software and other purchased professional services  Cybersecurity it IT’s top priority. There is not a fully-trained certified cybersecurity person on staff  IT operates with approximately 1/3 of the resources when compared to the national averages  3 BUDGET DEVELOPMENT MEETING JUNE 9, 2021 in Full time employees, spending per employee and operational expenses. Council member Bray was excused from the meeting at 10:20 a.m. Council members discussed the cost effectiveness of having trained IT professionals in-house, department cross training, and cybersecurity trainings. Mayor Blad called a recess at 10:36 a.m. Mayor Blad reconvened the meeting at 10:53 a.m. AGENDA ITEM NO. 6: Cindy Robbins, Utility Billing Director, was in attendance to give a 2022 BUDGET presentation. PRESENTATION – UTILITY BILLING Ms. Robbins reviewed the organization within the Utility Billing Department (UB) and current staffing levels. Service level changes and other major initiatives include:  54% of revenue is manually processed  46% of revenue is electronically processed  Each year, over 216,000 billings are reviewed, maintained and accurately billed  An average of 18,600 courtesy phone call recordings are sent to avoid shutoffs resulting in a reduction of 10.5% in shutoffs. In response to a question from Council, Ms. Robbins discussed the importance of having safety equipment and apparel for UB workers. Mr. Krueger clarified that typically departments budget for items at the same level as the previous year. If funds are not expended, the funds return to the general fund or to the fund balance, as appropriate. AGENDA ITEM NO. 7: Anne Butler, Risk Manager, and Andrea Henderson, Liability 2022 BUDGET Specialist, were in attendance to give a presentation. PRESENTATION – LIABILITY INSURANCE/ RISK MANAGEMENT/ WORKERS COMP INSURANCE FUND Mr. Krueger reviewed the organization for Liability Insurance/Risk Management/Workers Comp Insurance Fund and current staffing levels. Service level changes and other major initiatives include:  An increase of 10% to the experience modifier in the Workers Compensation fund will continue over the next two years. The goal is to achieve 100%, and currently the modifier is  4 BUDGET DEVELOPMENT MEETING JUNE 9, 2021 75%. The desire to increase funding is due to past claim history for all departments and legislation including presumptive cancer and PTSI claims for first responders. Council member Bray returned to the meeting at 11:08 a.m. In response to a question from Council, Ms. Butler stated that building necessary reserves allows for proper planning of workers compensation claims with above average costs. AGENDA ITEM NO. 8: Jim Krueger, Chief Financial Officer, was in attendance to give a 2022 BUDGET presentation. PRESENTATION – BUSINESS IMPROVEMENT FUND Mr. Krueger gave an overview of the goals and objectives of the Business Improvement Fund. He stated that the loan program is overseen by the Planning and Development Services Department. Mayor Blad clarified that the funds were allocated as a federal grant, which was converted into a loan program allowing small businesses to borrow funds at a low interest rate. Loans are typically used for beautification projects. Since the City was the original applicant of the federal grant, administration of the funds cannot be transferred to an outside agency. AGENDA ITEM NO. 9: Jim Krueger, Chief Financial Officer, was present to give a 2022 BUDGET presentation. PRESENTATION – CHIEF THEATER FUND Mr. Krueger stated that the Pocatello Arts Council administers funds in the Chief Theater Fund. The fund currently has approximately $52,000 and the Arts Council is given an annual allotment of $10,000 for cultural arts activities and grant funding. He added that the Arts Council members are aware that the funding source is limited. Council members shared their support to discuss the future of the Arts Council funding at a future Council Liaison meeting. AGENDA ITEM NO. 10: Dave Gates, Fire Chief, was in attendance to give a presentation. 2022 BUDGET PRESENTATION – AMBULANCE FUND Mr. Gates gave an overview of the Ambulance Fund. He stated that the Ambulance Fund is overseen by the City, administered by the Fire Department and is funded 50% through property tax allocations and 50% upon fee revenues. Mr. Gates stated that elements of the proposed budget are contingent  5 BUDGET DEVELOPMENT MEETING JUNE 9, 2021 upon funding from Bannock County. He stated that by contracting ambulance services with the City, the public receives a higher level of service. AGENDA ITEM NO. 11: Heather Buchanan, Human Resources Director, was in attendance 2022 BUDGET to give a presentation. PRESENTATION – EDUCATION BENEFITS FUND Ms. Buchanan gave an overview of the goals and objectives of the Education Benefits Fund. She stated that this employee benefit is articulated in the Fire and Police Union Collective Bargaining Agreements. Ms. Buchanan added that there are requirements for continued service regarding employees who use the education benefit. Council discussion ensued regarding employee retention, the benefits of an educated workforce and internal trainings and education opportunities. Mr. Krueger reminded the Council that the next Budget Development meeting would be held on June 10, 2021 at 9:00 a.m. AGENDA ITEM NO. 12: There being no further business, Mayor Blad adjourned the meeting ADJOURN at 11:58 a.m. APPROVED: BRIAN C. BLAD, MAYOR ATTEST AND PREPARED BY: KONNI R. KENDELL, CITY CLERK