City Council

CITY OF POCATELLO, IDAHO CITY COUNCIL BUDGET DEVELOPMENT MEETING AUGUST 11, 2021 AGENDA ITEM NO. 1: Mayor Brian Blad called the City Council Budget Development ROLL CALL Meeting to order at 1:33 p.m. Council members present were Heidi Adamson, Roger Bray, Rick Cheatum, Linda Leeuwrik, Claudia Ortega and Chris Stevens. AGENDA ITEM NO. 2: Jim Krueger, Chief Financial Officer, gave an overview of public FISCAL YEAR 2022 comments received during the public hearing held August 5, 2021. BUDGET He stated that three members of the public spoke in opposition DISCUSSION to the proposed budget. Other speakers spoke in opposition to further cuts to the proposed budget. Mr. Krueger clarified that one item in the amount of $49,000 (Building Department vehicle) had appeared in two areas of the budget. By removing the duplicate request, the General Fund budget shortfall could be reduced. He gave an overview of Idaho property tax levy regulations and published budget amounts. Mr. Krueger distributed questions asked by Council and information received by the Bannock County Auditor. He gave an overview on the following topics: Fund 78 policies and procedures, replacement policy and procedures for City vehicles, proposed reductions to community organizations and organization of a Finance subcommittee. Mr. Krueger clarified that a 2.5% reduction in community organization contributions was included in the published budget amount. A motion was made by Mr. Bray, seconded by Mrs. Ortega, that each item be considered individually for consideration to be included for proposed Fiscal Year 2022 budget. Council members discussed the proposed process. Mr. Bray’s motion was voted upon at this time. Upon roll call, those voting in favor were Bray, Ortega, Cheatum and Stevens. Adamson and Leeuwrik voted in opposition to the motion. The motion passed. A motion was made by Mr. Bray, seconded by Ms. Adamson, that the proposed budget amount for a Building Department vehicle, be removed from the working budget figures. Upon roll call, those voting in favor were Bray, Adamson, Leeuwrik, Ortega and Stevens. Cheatum voted in opposition to the motion. The motion passed. A motion was made by Ms. Leeuwrik, seconded by Mr. Cheatum to remove the 2.5% decrease in community organization funding. Upon roll call, those voting in favor were Leeuwrik, Cheatum and Bray. Adamson, Ortega and Stevens voted in opposition to the motion. Due to a tie in voting, Mayor Blad was required to cast the deciding vote. Mayor Blad voted in favor of the motion. The motion passed. A motion was made by Ms. Stevens to explore the option to reduce all City department budgets by 2.5%.  2 BUDGET DEVELOPMENT MEETING AUGUST 11, 2021 Ms. Stevens rescinded her motion. Mr. Krueger stated that 13.5 employee positions are currently funded and unfilled. These do not include positions currently in the process of being filled. He explained that the savings amount associated with those unfilled positions would be approximately $931,428. Council discussion took place regarding the Northgate TIF District repayment schedule and budget implications on repayment amounts. Brent McLane, Planning and Services Director, stated that the Pocatello Development Authority gives an annual update to the Council in January or February each year and would report in early 2022 to give a full update pertaining to the Northgate TIF District repayment schedule. Mr. Krueger clarified that the City of Pocatello is the first recipient in line for repayments from the TIF District. Any additional revenue realized from those repayments would be considered during a future budget amendment. In response to a question from Council, Mr. Krueger stated according to a Zillow estimate, the value of a City-owned facility that is the former Pocatello Free Clinic, is estimated to be between $209,000 and $229,000. A motion was made by Mrs Ortega, seconded by Mr. Bray, to investigate the potential auction of the former Pocatello Free Clinic property. Jared Johnson, City Attorney, clarified that the property is currently under a legally effective lease and any changes to that lease should be discussed with the current lease holder. Mrs. Ortega rescinded her motion. Mr. Bray asked that necessary property issues related to the former Pocatello Free Clinic facility be investigated by staff. Council discussed the following topics: City Hall maintenance budget amounts, current Finance software system and reporting capabilities, employee retention and Employee Education Benefits. Mayor Blad called a recess at 2:50 p.m. Mayor Blad reconvened the meeting at 2:58 p.m. Council discussed the following topics: Employee trainings and clothing allowances. Mr. Bray gave a PowerPoint presentation related to budget policy, budget forecasting, budgeting priorities, wages and benefits, healthcare costs and services to taxpayers in relation to City growth. Mrs. Ortega was excused from the meeting at 3:18 p.m.  3 BUDGET DEVELOPMENT MEETING AUGUST 11, 2021 Ms. Leeuwrik shared that feedback she has received from community members indicates that citizens are not in favor of budget cuts and are in support of investments in the community in order to have a thriving economy. She feels the Council has a responsibility to find a balance in regards to all obligations to the community. A motion was made by Mr. Cheatum, seconded by Ms. Leeuwrik, to adopt the budget amounts for budget preparation as proposed and as modified at the current meeting for all funds except the General Fund and that the General Fund amount be reduced to $37,676,629 and that any reductions necessary be facilitated by the Mayor and City staff members for appropriations ordinance consideration at the August 19, 2021 Regular City Council meeting. Council members discussed the following topics associated with the motion: Budgeting process, labor expenses and attrition savings and revenue estimations. Mr. Cheatum’s motion was voted upon at this time. Upon roll call, those voting in favor were Cheatum, Leeuwrik and Adamson. Bray and Stevens voted in opposition to the motion. The motion passed. Mayor Blad announced that budget items would be discussed at the August 12, 2021 Work Session. AGENDA ITEM NO. 3: There being no further business, Mayor Blad adjourned the meeting ADJOURN at 4:01 p.m. APPROVED: BRIAN C. BLAD, MAYOR ATTEST AND PREPARED BY: KONNI R. KENDELL, CITY CLERK