City of Pocatello | minutes | meeting 2026-06-02 | Budget Development Meeting Agenda (9:00 AM)
source: https://pocatello.gov/AgendaCenter/ViewFile/Minutes/_06022026-1911

CITY OF CITY OF POCATELLO, IDAHO

CITY COUNCIL

BUDGET DEVELOPMENT MEETING

JUNE 2, 2026
On
AGENDA ITEM NO. 1:

ROLL CALL

Mayor Mark Dahlquist called the City Council Budget Development meeting to order at 9:00 a.m.
Council members present were Dakota Bates, Corey Mangum, Brent Nichols, Hayden Paulsen
and Ann Swanson. Council member Stacy Satterfield was excused.

Chief Financial Officer, Rich Morgan, gave an overview of the budget materials, highlighting the
addition of a new payroll-to-revenue ratio analysis included in the budget report. Mr. Morgan
explained that the new metric measures total base wages in relation to City revenues and is
intended to provide another tool for evaluating organizational efficiency and labor market
trends. He noted that this information would also be incorporated into the Treasurer's Report
going forward.

In response to questions from Council, Mr. Morgan confirmed that the information reflected base
wages only. He explained that the earlier ratio measured payroll against total expenditures, while
the new analysis compares payroll to revenues, providing a different perspective on the City's
financial position.

Mayor Dahlquist added that the previously presented ratio did include employee benefits.

Mr. Morgan confirmed that an analysis which breaks down the payroll ratios by department
would be beneficial and could be explored in the future, providing additional insight into
departmental operations and staffing levels. Mr. Morgan added that the metrics should be
viewed together as a range of indicators rather than relying on a single measure to assess the
City's financial health.

Mayor Dahlquist announced that Agenda Item No. 8 would be considered at this time.

AGENDA ITEM NO. 8:
POLICE DEPARTMENT

Police Chief Roger Schei, Assistant Chief Eric Anderson and Amy Teuscher, Assistant to the Chief,
were present to give an overview of the Police Department, including its mission, organizational
structure, operations, accomplishments, proposed Fiscal Year 2027 budget, staffing and strategic
priorities. Chief Schei reviewed the department's mission and emphasized its commitment to
public safety, professional policing and community partnerships. He reported that the
department currently consists of 101 sworn officer positions and 46 civilian support staff. The
department maintains Idaho Chiefs of Police Association (ICOPA) accreditation and operates
Idaho's only Accredited Center of Excellence (ACE) certified emergency medical dispatch center.
He reviewed departmental operations, including Patrol, Investigations and Support Services.
Chief Schei noted that although the City's service area has expanded through annexation, TypeA
crime offenses declined approximately 9.75 percent during 2025. He compared Pocatello's crime
statistics and case clearance rates with other Idaho communities, noting that the department
continues to perform favorably despite serving an expanding jurisdiction.

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In response to a question from Council regarding why some criminal cases remain uncleared,
Assistant Chief Anderson explained that cases may remain open due to the inability to identify
suspects, insufficient evidence, prosecutorial decisions or offenses such as vandalism that often
lack investigative leads.

Chief Schei outlined several strategic priorities, including modernization of communications
technology, replacement of aging radios and body cameras, implementation of cloud-based
systems, continued community engagement initiatives and long-term facility improvements. He
explained that the department's radio system will soon exceed its expected service life and that
Motorola will discontinue support for the existing equipment. Funding options, including grant
opportunities and reserve funds, continue to be evaluated. Community engagement efforts
highlighted included the Citizen Police Academy, school partnerships, town hall meetings,
podcasts, Shop with a Cop, Handcuff Hunger, Touch-a-Truck, Give the Cops a Bird and other
outreach programs. Chief Schei discussed long-term facility needs, noting that the current police
facility is substantially smaller than recommended for a department of its size. Additional space
is needed for equipment storage, specialized vehicles and future operational growth.

Reviewing the proposed budget, Chief Schei explained that most operating expenditures consist
of personnel costs and internal service charges allocated by other City departments.

Theron Hill, Finance Department, reviewed how interdepartmental cost allocation formulas are
calculated for administrative services, fleet, information technology, facilities and other shared
services.

Council discussion continued regarding internal service allocations, staffing vacancies, budget
transparency and the methodology used to distribute indirect costs among City departments.

Chief Schei discussed staffing challenges, recruitment efforts, lateral officer hiring, increases in
law enforcement training costs, succession planning and national trends affecting police
recruitment and retention. He explained that although several sworn positions remain vacant,
the department continues active recruitment and emphasized the importance of maintaining
authorized staffing levels to ensure officer and public safety.

Council Members discussed the City's overall approach to budgeting vacant positions and
balancing personnel costs with service expectations.

Mayor Dahlquist stated that broader staffing and budget reduction discussions should occur after
reviewing the complete citywide budget rather than evaluating individual departmental
vacancies in isolation.

Chief Schei concluded by emphasizing the department's responsibility to provide safe and
effective public safety services and expressed appreciation for the Council's continued support.

Mayor Dahlquist called a recess at 10:19 a.m.

Mayor Dahlquist reconvened the meeting at 10:30 a.m.

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AGENDA ITEM NO: 2:
MARSHALL PUBLIC LIBRARY:

Eric Suess, Library Director, presented an overview of the Marshall Public Library, including the
department's mission, organizational structure, services, accomplishments, proposed Fiscal Year
2027 budget and future goals. He reviewed the Library's organizational structure, including
Administration, Youth Services, Public Services and Technical Services and discussed staffing
levels. Mr. Suess noted exceptional efficiencies with a lower staff ratio than many libraries while
remaining open six days per week, sixty hours each week and maintaining safe staffing on both
floors. Mr. Suess highlighted the Library's 2025 accomplishments, including record circulation
levels, internet usage, patron interactions, story time attendance, meeting room utilization and
library card registrations. He emphasized that the library serves as a community resource well
beyond traditional book lending, by participating in community events such as Lunch in the Parks,
health fairs and outreach programs that provide library services to individuals unable to visit the
facility.

Reviewing the proposed budget, Mr. Suess stated that increasing costs for library materials,
particularly electronic resources, continue to place pressure on operating expenses. He
explained that the department has worked to balance its budget through attrition by leaving a
recent vacancy unfilled and eliminating a page position rather than reducing existing staff.

In response to questions from Council about the Library's dedicated tax levy, Mr. Suess explained
that Idaho law requires the Library's levy revenue to remain dedicated solely to library operations
and cannot be diverted for other City purposes. He stated that user fees have had very few
increases and library cards remain free for Pocatello residents.

Chief Financial Officer Rich Morgan noted that the property tax revenue reflected in the budget
represents the Library's dedicated levy and offered to providea breakdown of City support versus
dedicated library revenues.

AGENDA ITEM NO. 3:
POCATELLO REGIONAL TRANSI

Skyler Beebe, Pocatello Regional Transit Director, presented an overview of Pocatello Regional
Transit, including the department's mission, organizational structure, services, accomplishments,
proposed Fiscal Year 2027 budget and future goals. Mr. Beebe explained that Pocatello Regional
Transit is the second-largest public transit agency in Idaho and the only agency in the state
providing the full range of urban, rural, senior and disabled transportation services. He reviewed
the department's various Federal Transit Administration grant programs, including Sections
5307, 5310, 5311 and 5339, which fund operations, capital purchases, bus stop improvements
and vehicle replacements. The department currently employs approximately 55 employees and
provides nearly 200,000 passenger trips annually, averaging approximately 1,000 passenger trips
each day. Mr. Beebe highlighted recent accomplishments, including receiving additional grant
funding originally awarded to Idaho Falls for bus stop improvements, implementation of real-
time bus tracking and rider notification technology, bus purchases, continued operation without
safety or security incidents and expansion of youth transit programs and travel training
initiatives. He discussed ongoing efforts to improve the Alameda Transfer Station and noted that

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the planned purchase of six light-duty buses had been delayed until Fiscal Year 2027. Future
projects include additional sidewalk improvements utilizing remaining grant funds.

Reviewing the proposed budget, Mr. Beebe explained that both the Urban and Rural Transit
funds remain largely supported through federal and state grants rather than through City tax
revenues. He noted that operational expenses have remained relatively flat and explained that
capital expenditures do not fully reflect anticipated grant reimbursements until funding is
finalized.

Councilmembers asked for clarification regarding the various funding sources and suggested
future budget presentations clearly illustrate the amount of local taxpayer support compared to
federal and state grant funding.

In response to Council questions, Mr. Beebe explained that available advertising revenues,
existing reserves and grant funding would offset projected operating differences without
requiring additional taxpayer support. He explained that many capital projects, such as the
Alameda Transfer Station, sidewalk improvements and bus purchases, carry forward from prior
fiscal years until construction or procurement is completed. Mr. Beebe stated that federal
regulations prohibit retaining excess operating revenues within the Urban Transit Fund, while
Rural Transit funds may retain reserves for future capital purchases, such as bus replacements.

AGENDA ITEM NO. 4:
POCATELLO REGIONAL AIRPORT:

Alan Evans, Airport Manager, and Kristy Heinz, Management Assistant/Security Coordinator,
presented an overview of the Pocatello Regional Airport, including the department's mission,
organization, accomplishments, proposed Fiscal Year 2027 budget and future capital
improvement projects. Mr. Evans stated that the Airport's primary goal is to support economic
development by growing commercial air service while providing safe, reliable aviation facilities
for the community and region. He reviewed the department's organizational structure, staffing
levels and the Airport's broad range of responsibilities, including compliance with Federal
Aviation Administration (FAA) and Transportation Security Administration (TSA) regulations,
airfield maintenance, wildlife management, snow and ice removal, tenant management, security
administration, grant administration and air service development. Mr. Evans reported that the
Airport recently completed a successful FAA and TSA inspection and commended staff for
maintaining high operational standards despite operating with a relatively small workforce. He
highlighted several recent accomplishments, including completion of taxi lane improvements
supporting future hangar development, rehabilitation of the secondary runway through crack
sealing and seal coating, acquisition of additional snow removal and deicing equipment,
transition to SkyWest commercial air service and continued progress toward construction of the
new FAA Air Traffic Control Tower. Department goals include maintaining airport facilities,
enhancing customer service, supporting economic development opportunities, expanding
commercial and industrial aviation uses and pursuing infrastructure improvements through
federal grant funding. Mr. Evans reviewed upcoming Fiscal Year 2027 projects, including
additional hangar development, infrastructure improvements, runway rehabilitation planning
and continued design work for future airport expansion.

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Ms. Heinz reviewed the Airport's financial position, explaining that the Airport operates as a self-
supporting enterprise fund primarily funded through leases, rentals, landing fees, passenger
facility charges and grant revenues. She noted that increased revenues associated with wildfire
activity and additional aircraft operations can vary significantly from year to year. Ms. Heinz
explained that Airport revenues must remain within Airport funds and are reserved primarily to
provide the required local match for large FAA-funded capital projects, such as the upcoming
approximately $30 million runway rehabilitation project.

In response to Council questions regarding maintenance responsibilities for roadways located on
airport property, Public Works Director Tom Kirkman acknowledged that many of the roadways
on airport property are deteriorating and discussed future maintenance considerations. He
clarified that the roadways are not considered right-of-way, but are easements.

Council discussion followed regarding Passenger Facility Charges, FAA discretionary grants, state
aviation grants and long-term capital reserve planning.

In response to a question from Council, Mr. Evans explained that while commercial passenger
service remains important, significant opportunities also exist through industrial aviation, cargo
operations, aircraft maintenance facilities, emergency response operations and additional
hangar development utilizing the Airport's extensive available property. He discussed ongoing
national efforts to preserve commercial air service at smaller regional airports through federal
legislative actions.

Mayor Dahlquist called a recess at 11:50 a.m.
Mayor Dahlquist reconvened the meeting at 11:59 a.m.

AGENDA ITEM NO. 5:
PLANNING AND DEVELOPMENT SERVICES

Brent McLane, Planning and Development Services Director, and Becky Babb, Planning Manager,
presented an overview of the Planning and Development Services Department, including its
mission, current projects, proposed Fiscal Year 2027 budget, and future initiatives. Mr. McLane
reviewed the department's ongoing responsibilities, including implementation of the
Comprehensive Plan, coordination of development review activities, long-range planning, zoning
administration and updates to Title 17 of the City Code. He reported that the department
currently has four full-time employees and is fully staffed. Staff have assumed additional
responsibilities while continuing to manage a significant number of active planning projects.

Ms. Babb reviewed the proposed budget, explaining that the department generates only a
limited amount of revenue through planning application and permit fees. Ms. Babb confirmed
that unlike departments with dedicated levies, Planning and Development Services is primarily
supported through the General Fund, with only a small portion of operating costs offset by
planning fees. She noted that recent modifications to sign permitting fees resulted in only
minimal additional revenue. The department's largest professional services expenditure is the
multi-year project to comprehensively update the City's zoning ordinance through the
development of a form-based code. Consultant selection is currently underway, with contract

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execution anticipated during the summer. She explained that the complexity of the project
requires specialized consultant expertise beyond the capacity of existing staff.

In response to questions from Council, Ms. Babb noted that, in an effort to maintain a flat budget,
the department reduced its request for professional services funding by postponing updates to
the River Vision Plan. She also reported that approximately $50,000 has been budgeted during
the current fiscal year toward the estimated $200,000 cost to update Title 17 zoning code.

In response to questions from Council, Mr. McLane stated that while fees could be increased
modestly, they still would not recover the department's actual operating costs and could
discourage development if set significantly higher than neighboring communities. He also noted
that future consideration of impact fees could provide an additional funding source for growth-
related infrastructure. Mr. McLane reported that the department processed approximately 200
planning applications during the previous year, including annexations, subdivisions, home
occupations and other land use applications.

Ms. Babb explained that while subdivision applications have decreased, development activity has
shifted toward larger multifamily and commercial projects, resulting in a decline in planning fee
revenues. Although those projects generate fewer subdivision fees, staff continue to review
building permits for compliance with parking, landscaping, zoning and other development
standards.

Mr. McLane added that subdivision applications require additional public hearing processes and
procedural steps compared to multifamily developments.

AGENDA ITEM NO. 6:
GRANTS DIVISION / GRANT FUNDS / ALTERNATE TRANSPORTATION

Brent McLane, Planning and Development Services Director, and Christine Howe, Grants
Administrator, presented an overview of the Grants Division, Grant Funds and Alternate
Transportation Program. Ms. Howe explained that the department, formerly known as
Neighborhood and Community Services, has expanded its responsibilities beyond Community
Development Block Grant (CDBG) administration to pursue and manage a broader range of grant-
funded projects benefiting departments throughout the City. The Grants Division currently
consists of two full-time employees and a Public Outreach and Grant Coordinator position. Ms.
Howe explained that personnel costs are largely reimbursed through grant funding, substantially
reducing the department's impact on the General Fund. Professional services funding is
budgeted primarily to provide required local matching funds for smaller grant opportunities, such
as Certified Local Government historic preservation grants. Ms. Howe confirmed the department
currently has one vacant Grant Compliance Analyst position.

In response to questions from Council, Ms. Howe stated that financial oversight already includes
multiple layers of review and auditing, and that the compliance position focuses primarily on
monitoring grant subrecipients and ensuring contractual compliance rather than internal
financial controls. She confirmed that existing staffing levels provide sufficient flexibility to
pursue current opportunities, particularly when General Fund positions can assist with grant-
funded projects. Ms. Howe noted that while additional grant opportunities exist, successful
implementation also requires project management capacity and local matching funds.

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Mr. McLane added that increasing the City's grant matching resources would improve its ability
to compete for future grant funding opportunities.

Ms. Howe explained that approximately $200,000 of the department's operating costs are
supported by the General Fund, while approximately $301,000 in personnel expenses are
reimbursed directly through grant programs. She added that grant administration funding is
derived from several grant programs, including Community Development Block Grants,
Brownfields, sidewalk improvement projects and related initiatives. Ms. Howe reviewed Grant
Fund 081, explaining that the fund is entirely reimbursement-based and contains separate
accounting for numerous federal, state and local grant programs. Revenues and expenditures
are budgeted equally because reimbursement occurs as project expenditures are incurred.
Approximately $9.2 million in grant-funded projects are anticipated during Fiscal Year 2027. Ms.
Howe confirmed that the funding has been awarded and that many projects span multiple fiscal
years due to grant implementation schedules. Ms. Howe clarified that the “debt service” line
actually represents program income generated through repayment of Community Development
Block Grant loans and does not represent traditional debt service. She provided updates on
numerous grant-funded projects, including Community Development Block Grants, Brownfields
assessment and job training, Lead Hazard Reduction, Safe Streets and Roads for All (SS4A),
Firewise, watershed restoration, Bureau of Reclamation projects, Parks and Trails grants, Simplot
River Access improvements, Johnny Creek sewer improvements, Brady Chapel restoration, Terry
First design work and several ongoing alternate transportation projects.

Ms. Howe shared an overview of Fund 071, which supports alternate transportation
improvements including sidewalks, pathways, curb and gutter improvements and Transportation
Alternatives Program projects, such as the Brennan Trail, South 5th Avenue sidewalks and East
Side sidewalk improvements.

Mayor Dahlquist noted that the increasing number of successful grant applications demonstrates
the importance of maintaining adequate staffing to administer grant reporting and compliance
requirements throughout the life of each project.

In response to a question from Council, Ms. Howe explained that City staff currently prepare
grant applications in-house, often with assistance from Planning staff and student interns,
providing a cost-effective approach while maintaining familiarity with City projects.

Mr. McLane verified that while staffing remains adequate to manage current grants, matching
fund availability and project management capacity across City departments continue to be
important considerations when pursuing future grant opportunities.

Mayor Dahlquist called a recess at 12:47 p.m.
Mayor Dahlquist reconvened the meeting at 1:00 p.m.

AGENDA ITEM NO. 7:
ANIMAL SHELTER

Liam Hughes, Animal Shelter Manager, presented an overview of the Animal Shelter, including
recent operational improvements, proposed Fiscal Year 2027 budget, facility needs and future

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initiatives. Mr. Hughes discussed the department's continued efforts to foster an "animal-first”
culture while maintaining high standards of care despite increasing workloads. He explained that
staffing ratios have changed substantially over time, requiring employees to care for significantly
more animals while continuing to provide adoption counseling, cleaning, medical care and facility
maintenance. He outlined ongoing efforts to address deferred maintenance within the shelter,
including a multi-year project to improve drainage systems and reduce areas where disease can
develop. Additional planned capital improvements include acquisition of a commercial
dishwasher to improve sanitation and installation of customer kiosks to provide information
regarding available animals and shelter services. Mr. Hughes also discussed expanded
educational programming designed to promote responsible pet ownership and reduce future
shelter populations through community outreach.

Reviewing the proposed budget, Mr. Hughes stated that the department has worked to maintain
a flat operating budget despite increasing costs associated with salaries, facility maintenance and
animal care. While the shelter generates some revenue through fees, it is not a significant
revenue-generating department. Certain fees will be adjusted during FY2027 to better reflect
operational costs.

Mayor Dahlquist complimented the shelter staff on maintaining an exceptionally clean facility
and recognized their dedication and professionalism.

In response to a question from Council regarding the proposed purchase of a crematorium, Mr.
Hughes explained that estimated costs have increased substantially due to inflation and supply
chain impacts, with current estimates ranging from approximately $89,000 to $130,000.
Approximately $74,000 has been reserved within Fund 078 toward the project. Mr. Hughes
explained that the crematorium would improve environmental stewardship by eliminating burial
of euthanized animals containing chemical agents, improve staff morale and potentially provide
limited revenue opportunities through pet cremation services and partnerships with other
agencies. Mr. Hughes clarified that while offering cremation services to the public could generate
some revenue, it would not fully recover the cost of the equipment.

In response to a question from Council regarding heating and cooling issues within the shelter,
Mr. Hughes reported that portions of the facility continue to experience temperature control
challenges due to original design limitations and that additional HVAC improvements may be
necessary in the future.

AGENDA ITEM NO. 9:
FIRE DEPARTMENT / AMBULANCE

Interim Fire Chief Shane Grow and Administrative Services Manager Autumn Baker presented an
overview of the Fire Department and Ambulance Division including departmental
accomplishments, proposed Fiscal Year 2027 budget, capital needs and future operational
planning. Chief Grow reviewed the department's mission, organizational structure and major
accomplishments during the past year. Highlights included placing the new tiller truck into
service, acquisition of a new brush truck, implementation of automatic aid agreements with the
City of Chubbuck to improve emergency response, expansion of hazardous materials capabilities
through state grant funding, participation in wildfire mitigation initiatives and continued
partnerships with educational institutions providing paramedic and emergency medical services
training opportunities. Chief Grow noted that budget constraints have required reductions in

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employee training during the current year, with training hours declining significantly due to
increasing operating costs such as fuel, tires, maintenance and equipment. He emphasized that
ongoing training remains essential to maintaining emergency response capabilities.

Ms. Baker explained that the Fire Department's operating budget remains largely unchanged,
with no new personnel requests and no current vacancies. Personnel costs are governed by the
Collective Bargaining Agreement (CBA) through 2028, while health insurance costs remain
subject to annual adjustments.

Chief Grow stated the proposed capital budget includes replacement of a Battalion Chief vehicle,
station furniture, roof repairs at Fire Station No. 3 and continued improvements to the Teel
Building at 422 East Clark Street. He discussed anticipated long-term capital replacement needs,
including self-contained breathing apparatus (SCBA) systems, fire engines and other major
apparatus that will require replacement over the next several years. He emphasized the
importance of developing a long-term funding strategy for these significant expenditures. In
response to a question from Council regarding annual call volumes, Chief Grow reported that
during Fiscal Year 2025 the department responded to approximately 9,775 total incidents,
including approximately 1,596 fire-related calls and more than 8,100 emergency medical service
responses.

Ms. Baker explained that several capital priorities have been reprioritized in order to maximize
available funding and utilize reserves generated through wildland fire deployments. In response
to a question from Council regarding the Fire Department's apparatus reserve fund, Ms. Baker
explained that revenues generated through wildland deployments may be transferred into Fund
075 through budget amendments to support future apparatus replacement and major capital
purchases.

In response to a question from Council regarding the department's apparatus replacement
schedule, Chief Grow explained that while there is currently no formal staggered replacement
program, the department recognizes the importance of developing one to avoid replacing
multiple fire engines simultaneously as equipment ages.

Council discussion included the significant increase in fire apparatus costs, current manufacturer
lead times and opportunities to reduce costs through standardized equipment specifications.

Ms. Baker reviewed the Ambulance Division budget, explaining that personnel costs are allocated
between Fire and Emergency Medical Services based upon employee assignments. She noted
that ambulance operations are intended to recover operating costs rather than generate a profit,
with funding provided through ambulance district revenues, transport fees and payments
received from Bannock County.

Council Members discussed the financial relationship between the City and Bannock County
regarding ambulance and dispatch services.

Mayor Dahlquist explained that the City continues to work collaboratively with County officials
to address long-term funding challenges associated with dispatch operations, ambulance capital
replacement and increasing emergency medical service demands.

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Ms. Baker reported that the proposed ambulance services agreement is currently under legal
review and is expected to be finalized later in the year.

Additional Council discussion addressed emergency medical responses that do not result in
patient transport, the inability to recover costs in those situations under current reimbursement
regulations and ongoing efforts to identify sustainable funding solutions.

Mayor Dahlquist announced that the next Budget Development meeting would be June 3, 2026
at 9:00 a.m.

AGENDA ITEM NO. 10:
ADJOURN

There being no further business, Mayor Dahlquist adjourned the meeting at 1:52 p.m.

APPROVED:

tw. Que

MARK DAHLQUIST, MAYOR