City of Pocatello | minutes | meeting 2026-03-02 | Special City Council Budget Development Training Meeting Agenda (11:00 AM)
source: https://pocatello.gov/AgendaCenter/ViewFile/Minutes/_03022026-1862

CITY OF CITY OF POCATELLO, IDAHO
SPECIAL CITY COUNCIL MEETING
BUDGET DEVELOPMENT TRAINING
MARCH 2, 2026

AGENDA ITEM NO. 1:
ROLL CALL

Mayor Mark Dahlquist called the City Council Special Budget Development Training
meeting to order at 11:00 a.m. Council members present were Dakota Bates, Corey
Mangum, Brent Nichols, Hayden Paulsen, Stacy Satterfield, and Ann Swanson.

AGENDA ITEM NO: 2:
CITY BUDGET DEVELOPMENT TRAINING

Rich Morgan, Chief Finance Officer, provided training for the Mayor and City Council on
the basics of City Budgeting. He explained that the purpose of the budget is to outline
how financial resources are to be allocated and managed across the organization, adding
that it serves as a planning and decision-making tool to prioritize expenditures and
maintain financial stability. Mr. Morgan outlined the following types of budgeting
approaches: a) Line Item Budgeting - This is the current primary method in use. It
allocates funds to specific categories and accounts while providing structure, but less
flexibility in in strategic allocation; b) Performance-Based Budgeting - This approach
focuses on allocating funds based on desired outcomes and priorities, encourages
decision-making on projects and helps plan where funds should be spent. Funds are
assigned to appropriate line-item codes after priorities are determined; c) Zero-Based
Budgeting - Starts from a “zero base”, requiring all expenses to be justified each budget
cycle and is viewed as effective for evaluating programs and services from scratch. This
approach is not recommended for wages or wage-related expenses, due to potential
negative impacts on employee morale. Separating personnel costs from the zero-based
evaluation may be best; and d) Hybrid Approach Budgeting - This combines elements of
zero-based and performance-based budgeting, allowing flexibility and adaptability. It
encourages discussion on priorities and resource allocation. Mr. Morgan gave the
example of determining annual goals which align with zero-based approach and
performance outcomes.

Council members discussed the positive aspects and potential concerns regarding the
budgeting methods introduced.

Mr. Morgan emphasized the importance on maintaining a higher-level perspective rather
than focusing solely on detailed line items. Department heads are tasked to develop and
present their budget needs effectively while providing detailed transparency for Council
members with strategic oversight.

Mr. Morgan reported that the fee resolution process is tied to the budget development
process, with rate studies used to ensure funds remain at sustainable and healthy levels.
He discussed the revenue sources and amounts available to the City including property
taxes, franchise fees, licenses and permits, shared revenue, user fees, reserves and
impact fees. He reviewed the timeline for budget development and highlighted that staff
and Council members would participate in Budget Development meetings during May,
June and July in order to meet publication and adoption deadlines in August.

SPECIAL CITY COUNCIL MEETING
BUDGET DEVELOPMENT TRAINING
MARCH 2, 2026

AGENDA ITEM NO. 3:
ADJOURN

There being no further business, Mayor Dahlquist adjourned the meeting at 12:00 p.m.

APPROVED:

Ta. Qui

MARK DAHLQUIST, MAYOR

PREPARED AND ATTESTED BY:

WA