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minutes meeting date 2026-07-20 · fetched 2026-09-17 · 9299 characters · read by OCR, check numbers against the source · official file · plain text
CITY OF CITY OF POCATELLO, IDAHO SPECIAL CITY COUNCIL TOWN HALL MEETING JULY 20, 2026 AGENDA ITEM NO. | 1: ROLL CALL Mayor Mark Dahlquist called the Special City Council Town Hall meeting to order at 6:01 p.m. Council members present were Dakota Bates, Corey Mangum, Brent Nichols, Hayden Paulsen and Stacy Satterfield. Council member Ann Swanson was excused. AGENDA ITEM NO: 2: BUDGET DEVELOPMENT PROCESS: Rich Morgan, Chief Financial Officer, gave an overview of the Basics of Municipal Budgeting in Idaho, providing an educational presentation regarding the statutory framework governing municipal budgeting and the City's budget development process. Mr. Morgan explained that Idaho statutes provide the legal authority for municipalities to operate and establish the standards governing municipal finance and governmental accounting. He emphasized that the annual budget serves as both a policy document and financial plan, establishes legal spending authority through appropriations, provides operational guidance to City departments and serves as an important accountability and transparency tool for the public. Mr. Morgan reviewed Idaho's statutory budget requirements, including publication requirements, notice of public hearing, presentation of proposed revenues and expenditures and the City's 55 budget funds. Mayor Dahlquist noted that the public hearing on the proposed Fiscal Year 2027 budget is scheduled for August 6, 2026, and explained that although the budget could legally be adopted that same evening, the City traditionally adopts the budget at the following meeting to allow time for consideration of public comments. Final budget adoption is scheduled for August 20, 2026. Mr. Morgan explained that the City adopts a budget rather than setting a property tax levy directly, although the adopted budget ultimately determines the resulting levy. He reviewed Idaho's statutory limitations on annual property tax increases, including the allowable 3% increase and the use of forgone property tax authority. He also discussed recent legislative changes that further restrict the combined use of annual increases and forgone authority. In response to Council clarification regarding forgone property taxes, Mr. Morgan explained that forgone represents taxing authority the City was entitled to levy in previous years but elected not to collect. Using a simplified example, he illustrated how unused taxing authority is tracked and may be available for future use under state law. Mr. Morgan stated that the City currently has approximately $5 million in accumulated forgone authority, although current law limits the amount that may be incorporated into the levy each year. Council discussion followed regarding the annual limitations, the approximate $375,000 that may ‘currently be utilized and the Legislature's intent to limit future levy growth. Mr. Morgan also reviewed enterprise funds, explaining that utility operations—including Water, Water Pollution Control and Sanitation—are funded through user fees rather than property taxes. He noted that utility fee increases of less than 5% may be approved by Council action, while increases exceeding 5% require a public hearing. Mr. Morgan briefly reviewed the SPECIAL CITY COUNCIL MEETING TOWN HALL MEETING 2 JULY 20, 2026 statutory process for amending the budget and summarized the major municipal services funded through the City's budget. He noted that approximately 75 percent of the General Fund supports public safety operations and explained how the City's 55 funds are organized to account for various governmental activities. During his review of City revenues, Mr. Morgan highlighted that approximately 18 percent of City funding comes from grants, nearly equal to the amount generated through property taxes. He also discussed reserve funds as an important financial resource. Mayor Dahlquist requested that future budget presentations include percentage breakdowns for each fund and Mr. Morgan indicated that information would be incorporated. Mr. Morgan reviewed the City's various fund types. Mr. Morgan outlined the annual budget calendar, explaining that strategic planning discussions begin early in the process, followed by revenue forecasting before expenditure planning so the City understands available resources before making budget decisions. He noted that adopting the budget later in the statutory timeline provides flexibility to make necessary adjustments before final adoption. The presentation also included an overview of the City's budget philosophy and efforts to implement a formal multi-year capital improvement plan beginning with Fiscal Year 2028. Mr. Morgan explained that the long-range planning process will improve forecasting of capital projects, wages and other significant expenditures over a four-year period. Mr. Morgan discussed several ongoing budget challenges, including modest population growth, increasing service demands, changing state legislation, funding impacts associated with House Bill 312 and economic uncertainty. He concluded the budget overview by discussing the respective roles of the City Council and City administration in the budget process. He emphasized that the Council establishes policy direction and priorities while City management is responsible for implementing those priorities and administering City operations. Mr. Morgan informed the Council that the Fiscal Year 2024 Annual Comprehensive Financial Report was being distributed and noted that staff continues making significant progress toward bringing the City's financial reporting current. Mayor Dahlquist commended Mr. Morgan and the Finance Department for their efforts. Mr. Morgan reviewed the purpose of the City's Investment and Audit Committee, explaining that the committee provides oversight of the City's financial statements, ethics and fraud reporting and internal controls. He noted that the committee includes two Council Members, City employees, and an external financial professional to provide additional expertise and facilitate communication with the governing body. Mayor Dahlquist emphasized the importance of educating the public about the Investment and Audit Committee's role as an avenue for reporting financial concerns and promoting government transparency. Mr. Morgan concluded by introducing the City's new OpenGov financial transparency platform. He explained that the system will provide residents with direct online access to current financial information and budget data through the City's website, increasing transparency by allowing users to view real-time financial information rather than static reports. He noted that the system SPECIAL CITY COUNCIL MEETING TOWN HALL MEETING 3 JULY 20, 2026 is expected to be available before the end of the month and commented that it will provide both the Council and the public with a better understanding of the City's budgeting process. AGENDA ITEM NO. _ 3: COMMENTS FROM THE AUDIENCE Mayor Dahlquist remined those in attendance that comments should be presented respectfully and courteously. He also reminded the audience that the Council continues to serve in a quasi- judicial capacity regarding the pending Hearing Examiner Conditional Use Permit appeal and requested that comments on that matter not be presented. Lydia Noble, Pocatello resident, thanked the Mayor and Council for their work and offered several suggestions regarding the City's budget practices. She encouraged the City to evaluate the current practice of transferring interest earnings into the General Fund and suggested that interest income remain with the funds generating those earnings whenever possible. She also requested additional information regarding the methodology used to calculate right-of-way charges included within utility rates. Referring to the City's utility rate study, she questioned whether those charges remain appropriate and noted that other Idaho communities have eliminated similar charges. Ms. Noble expressed concern that including such costs within enterprise fund rates could unnecessarily increase utility fees. She requested historical comparisons showing growth in the City's base budget over the past ten years, with grant funding identified separately, to provide greater public understanding of long-term budget growth. She also suggested comparing staffing levels to population growth, noting that some Idaho communities rely more heavily on part-time employees to accommodate temporary growth. Mayor Dahlquist acknowledged Ms. Noble's comments regarding interest earnings and explained that the City has already begun addressing that issue by transferring interest income to the Street Fund to help offset reductions in state transportation funding. He noted that additional adjustments would likely occur over several budget cycles. Mayor Dahlquist thanked those in attendance for participating. He emphasized the Council's commitment to listening to residents and encouraged citizens to contact the Mayor or Council Members through the City's website or by scheduling an appointment with the Mayor's Office. AGENDA ITEMNO. 4: ADJOURN There being no further business, Mayor Dahlquist adjourned the meeting at 6:48 p.m. MARK DAHLQUIST, MAYOR ATTEST AND PREPARED BY:
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