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minutes meeting date 2026-06-03 · fetched 2026-10-18 · 31550 characters · read by OCR, check numbers against the source · official file · plain text
CITY OF CITY OF POCATELLO, IDAHO CITY COUNCIL BUDGET DEVELOPMENT MEETING JUNE 3, 2026 I ST AGENDA ITEM NO. 1: ROLL CALL Mayor Mark Dahlquist called the City Council Budget Development meeting to order at 9:01 a.m. Council members present were Dakota Bates, Corey Mangum, Brent Nichols, Hayden Paulsen, Stacy Satterfield and Ann Swanson. AGENDA ITEM NO: 2: PUBLIC WORKS DEPARTMENT (PUBLIC WORKS, GIS, ENGINEERING) Public Works Tom Kirkman, Public Works Director, presented an overview of the Public Works Department, including its organizational structure, mission, departmental goals, budget changes and the various divisions operating within Public Works. Mr. Kirkman explained that Public Works takes a holistic approach to project planning and that environmental compliance and outreach functions had been moved under the purview of Public Works. The change resulted in a significant shift in the department's budget and staffing structure. Council members discussed the number of full-time equivalent positions associated with the administrative and environmental functions. The department currently supports four positions in this area, including the director, an administrator and two environmental positions. Mr. Kirkman explained that revenue previously associated primarily with Water and Water Pollution Control (WPC) had been redistributed among Public Works divisions, including Fleet and Sanitation, to more appropriately reflect the services provided throughout the department. In response to questions from Council regarding the River Vision program, Mr. Kirkman stated that the program remains active and is now overseen by the Planning and Development Services Department, as its functions are more closely aligned with planning activities. Becky Babb, Planning Manager, will oversee the River Vision responsibilities in conjunction with her other Planning duties. Mr. Kirkman clarified that the position is not intended to represent a full-time employee dedicated exclusively to the program. Mr. Kirkman explained that environmental compliance responsibilities have also been reorganized, adding that stormwater permitting and compliance requirements remain a significant responsibility. Sediment and erosion control were identified as particularly important components of protecting the Portneuf River and maintaining compliance with stormwater permit requirements. He discussed environmental education and outreach requirements and activities such as Water Week, river cleanup events and the Environmental Fair. Mr. Kirkman noted that Public Works also provides stormwater-related training for City operators and contractors. Engineering Mr. Kirkman gave an overview of the Engineering Division. He explained that Engineering provides technical support to City departments and is involved in planning, construction, surveying, plat review, project management, inspections and other development-related activities. The division includes two engineer positions, one of which is currently vacant, along with three technicians. Mr. Kirkman explained that the vacant project engineer position has been CITY COUNCIL BUDGET DEVELOPMENT MEETING 2 JUNE 3, 2026 difficult to fill because of competition with the private sector. He reported that interviews had been conducted and an offer had been made but the applicant declined the offer and other candidates were being considered. Council members discussed recruitment efforts and compensation as a significant factor in filling vacant positions. Mayor Dahlquist suggested that the City consider utilizing a specialized recruiter or headhunter for the engineering position and explore flexibility within the salary range, including potentially placing a qualified candidate at a higher step. Council members discussed funding for the Engineering Department. The division is supported primarily through the General Fund, with contributions from the City's utility funds. Mr. Kirkman explained that the Engineering Division had been reorganized to improve coordination and eliminate competing priorities among engineering functions. Water and wastewater engineers remain available to support their respective utilities, while the City's engineering functions are increasingly focused on development-related activities. Improved coordination between Engineering and Planning was identified as an important goal for streamlining the development and housing process. Geographic Information Systems (GIS) Nico Martinez, GIS Coordinator, presented an overview of the GIS Division. Mr. Martinez explained that GIS provides support to more than 75 percent of City departments and is used for mapping, data analysis, asset management, service requests, software integration, planning, maintenance and decision-making. Mr. Martinez emphasized that GIS involves considerably more than producing maps. The division collects field data, performs spatial analysis, manages databases, supports asset management systems and integrates information from various City sources. Public-facing GIS resources include maps related to zoning, land use, trailheads, aerial imagery and other information. Utility information is not made publicly available because of security considerations. Mr. Martinez highlighted recent accomplishments which included improvements to asset management, public maps, cemetery mapping, wildfire preparedness and server migration. The division is also continuing to transfer information and systems to updated platforms. Goals for FY2027 include expanding public outreach, making GIS tools more accessible to residents and working with Planning and Development Services on property and market value analysis to identify economic drivers. Mr. Martinez reported that the GIS budget remains generally consistent with the prior year, with salaries and software licensing representing the primary expenses. No new positions are proposed. Council members discussed the division's workload and future staffing needs and discussed property addressing and property-related processes. Mr. Martinez stated that the two-person division is operating near maximum capacity but has remained efficient. He indicated that the division may eventually benefit from an additional analyst position to address increasing data workloads and allow for further system development. Mr. Martinez explained that GIS works closely with Engineering on addressing and has implemented improvements to standardize the process and ensure compliance with applicable regulations. Additional training was identified as a need because GIS technology and software CITY COUNCIL BUDGET DEVELOPMENT MEETING 3 JUNE 3, 2026 are frequently updated. He confirmed that training funds had been included in the proposed budget. AGENDA ITEM NO. 3: FLEET DEPARTMENT / FUEL: Teresa Caudill presented an overview of Fleet and Facilities, including the development of the centralized Fleet Department, asset management, vehicle maintenance, procurement, fuel operations and the department's budget. Fleet Operations Ms. Caudill stated the Fleet Department's mission is to maintain City assets in a coordinated and cost-effective manner. The department has approximately ten (10) full-time equivalent positions, including a Fleet and Materials Coordinator, data entry/shop support and an emergency vehicle technician position, with three current vacancies in the shop. Fleet maintains an asset-tracking and maintenance software system that tracks repairs, maintenance, capital improvement plans and replacement needs. The system is used to identify vehicles that should be replaced based on age, usage, maintenance costs and other data. Fleet also handles procurement for City departments and oversees the City's centralized fuel operation. The department conducts CDL training and uses driving simulators to assist employees in obtaining their commercial driver's licenses. Mr. Kirkman explained that CDL operators are difficult to recruit and that providing training helps address the staffing challenge. Council members discussed whether there was a requirement for employees who have received CDL training to remain with the City for a specified period. Mr. Kirkman stated that there is currently no such requirement. He added that employees generally have six (6) months to obtain their CDL. Mr. Kirkman reported that Fleet achieved approximately $1.1 million in savings on parts in 2025. The City has partnered with NAPA Auto Parts, which operates:a parts store within the Fleet facility. Approximately $850,000 in inventory is maintained without having the expense of paying for the inventory until the parts are used. The City's markup on parts is approximately five percent, compared with substantially higher markups commonly found in private repair operations. Mr. Kirkman reviewed the history of the centralized Fleet operation. Beginning in 2016, the City evaluated deferred maintenance and the benefits of consolidating Fleet operations. A facility was purchased in 2017 and subsequently moved several departments into the centralized location. Fleet management software was implemented in 2019 to establish consistent tracking of assets, maintenance, labor and parts. Council members reviewed maintenance costs associated with various City departments and discussed the age of the City's vehicle fleet. Mr. Kirkman explained that aging equipment generally results in increased maintenance costs and that for some City departments, the average age of the City’s fleet is approximately 19 years. The importance of a structured vehicle replacement program was discussed. Mr. Kirkman stated that Fleet has developed a capital replacement plan for light-duty vehicles and would like to use the City's reserves to provide a more equitable approach to vehicle replacement rather than relying solely on individual departments to have sufficient funds available. CITY COUNCIL BUDGET DEVELOPMENT MEETING 4 JUNE 3, 2026 Council members discussed Fleet charges and the manner in which labor and maintenance costs are billed to departments. Mr. Kirkman explained that Fleet operates using a shop rate, with revenue generated from charges supporting Fleet personnel and operations. Council members requested additional information regarding budget-to-actual expenditures and fluctuations in Fleet costs. Mr. Kirkman explained that Fleet expenses can vary substantially from year to year due to unexpected major repairs, such as engine failures. Rich Morgan, Chief Financial Officer, explained that excess revenue is retained in the Fleet fund and contributes to the overall reserve. Council members discussed the potential for conducting a market-rate study comparing the City's centralized Fleet operation with private maintenance providers and with similarly sized cities. Members expressed interest in evaluating the City's actual savings under the current system. Council members discussed establishment of a City Hall motor pool and Fleet's shop rate. Mr. Kirkman explained that a review had identified approximately eleven (11) vehicles used by departments that may be candidates for consolidation. A centralized pool could potentially reduce the number of vehicles needed and allow departments to check out vehicles as needed. The current Fleet reserve goal was discussed. Mr. Kirkman indicated that the department would like to maintain approximately $600,000 as an emergency reserve while using additional funds for planned vehicle replacements and capital improvements. He reported that the shop rate had been reduced from $75 per hour to $60 per hour as the reserve reached a more appropriate level, comparing the rate with private-sector rates and discussed the City's performance relative to other municipalities. Mayor Dahlquist suggested that the results could be presented at a future Work Session. Fuel Mr. Kirkman presented information regarding the City's centralized fuel site, which serves most City departments but does not serve the Airport, Transit or WPC. The previous fuel facility had exceeded its useful life, resulting in the development of a new centralized fuel site. Fuel prices are monitored closely, and the City conducts fuel bids approximately every two (2) weeks among multiple suppliers in order to obtain the lowest available price. The department uses Energy Information Administration data to assist with fuel forecasting. Proposed FY2027 budget assumptions were discussed, including gasoline, diesel and Diesel Exhaust Fluid (DEF). Council members discussed how fuel costs are allocated among departments. Departments are charged actual fuel costs, while a portion of the fuel surcharge supports the cost of the centralized fuel site. The Street Department owns the fuel-site asset, with other departments contributing toward the associated costs, through a fuel surcharge. Council members discussed the City's interest in reducing emissions. Mayor Dahlquist encouraged consideration of zero-emission and hybrid vehicles, for the City Hall motor pool. CITY COUNCIL BUDGET DEVELOPMENT MEETING 5 JUNE 3, 2026 Mr. Kirkman explained that hybrid vehicles may provide a practical initial step because of winter- weather considerations, while all electric vehicles would require additional charging infrastructure. Mayor Dahlquist called a recess at 10:34 a.m. Mayor Dahlquist reconvened the meeting at 10:46 a.m. AGENDAITEMNO. 4: CITY FACILITIES Teresa Caudill presented information regarding City Facilities, including custodial services, facility maintenance, HVAC systems, capital needs and FY2027 priorities. Facilities is responsible for custodial services and general facility maintenance at City Hall, Police Department facilities, including substations, Marshall Public Library, Pocatello Regional Transit facilities and other City facilities. Ms. Caudill reviewed FY2026 accomplishments, including exterior improvements associated with rebranding, HVAC mini-split installations, lobby lighting improvements, cooperative efforts with Idaho Power and various painting projects. A significant priority in FY2027 is the aging HVAC system which services City Hall. The current system has experienced repeated breakdowns and includes components that are becoming obsolete. A comprehensive replacement is estimated to cost more than $1.5 million. Council members discussed whether the HVAC replacement should be completed as a simple system replacement or as part of a larger redesign. Mr. Kirkman explained that the system should be evaluated comprehensively, including zoning, ductwork and future building configurations. He noted that planning for long-term future configuration of City Hall and Police and Fire facilities is being considered. Because a larger facility decision could take several years, staff is attempting to keep the existing HVAC system operational while planning for future needs. Ms. Caudill reported that Facilities has approximately $300,000 in operational funding for facility maintenance. She explained that the majority of the funding is needed for custodial services, leaving limited resources for major improvements or replacements. Council members discussed the need to distinguish critical needs from discretionary improvements and to prioritize available resources accordingly. They discussed the possibility of outsourcing custodial services. Ms. Caudill explained that previous contract experiences had presented challenges related to quality control, turnover and cost. City departments benefit from having custodial employees available for weekend and holiday cleanings, if needed. In response to questions from Council related to administrative support revenue and interfund transfers associated with Facilities, Mr. Morgan explained that the department's funding structure is still being evaluated and that historical actual expenditures will be reviewed to determine appropriate funding levels. CITY COUNCIL BUDGET DEVELOPMENT MEETING 6 JUNE 3, 2026 In response to Council discussion regarding custodial staffing and turnover, Mr. Kirkman reported that recruitment can be challenging because of the early morning schedule, physical nature of the work and relatively low pay. However, the custodial team was described as having good morale and reported a positive working environment. In response to Council discussion regarding the possibility of expanding centralized custodial services to additional City facilities, Ms. Caudill indicated that staffing would be the primary limiting factor but stated that the concept could be evaluated further. AGENDA ITEM NO. _ 5: STREET OPERATIONS Mike Neville, Street Superintendent, presented an overview of Street Operations, including roadway maintenance, emergency response, snow removal, pavement management, traffic operations, revenues and capital needs. Mr. Neville explained that Street Operations is responsible for maintaining approximately 344 miles of roadway, the Portneuf River levee, storm response, emergency response, pothole repair, street sweeping, traffic signals, striping, signage and related services. Mr. Neville reviewed departmental organization and goals for FY2027, including repainting crosswalks, stormwater maintenance, EPA compliance, treating approximately 30 miles of roadway and evaluating snowplow routes in connection with annexations and safety concerns. Council members discussed pavement management and GIS support. Mr. Neville stated that the City's pavement condition is above the national average and that the department continues to focus on maintaining the City's roadway network. A significant concern discussed was the reduction in State of Idaho highway user revenue. The amount received by the City was identified as decreasing from approximately $1.3 million to approximately $160,000. Mr. Morgan distributed information showing the highway user revenue and its various funding components. He indicated that future budget presentations would separate the four revenue sources for greater transparency. Council members discussed the effect of the revenue reduction on the Street Department's budget and long-term sustainability. Other changes discussed included Idaho Power rates and growth in the City's street-lighting system. Mr. Neville discussed capital needs including pavement management equipment and replacement of a jet-vac truck that had become unreliable and was not originally designed for certain excavation activities. He discussed reducing the annual contribution to Fund 70 and reducing federal-aid project funding. In response to questions from Council regarding available street funding and the ability to support greenway projects, Mr. Neville reported that staff was working with the Bannock Transportation Planning Organization and the Portneuf Health Trust on potential funding opportunities. Mr. Kirkman reported that approximately $500,000 to $600,000 remained available in Fund 70 after completion of several major projects. CITY COUNCIL BUDGET DEVELOPMENT MEETING 7 JUNE 3, 2026 Council members expressed concern that the reduction of the state annual contribution could limit the City's ability to address future projects. They discussed the City's Street reserve balance, which Mr. Morgan reported to be approximately $6.1 million. Council members generally agreed that reserves could provide a temporary means of addressing the unexpected State revenue reduction, but that reserves should not be used as a long-term solution. They emphasized the importance of developing a sustainable plan to operate with approximately $1 million less in annual revenue, including the potential consequences of reducing Street Department staffing, particularly for snow removal, emergency response and roadway maintenance. Mayor Dahlquist and Council members discussed the following topics: the importance of maintaining the City's curb appeal and roadway infrastructure; the State's actions affecting highway user revenue and the potential for future changes; and the importance of continued discussion during the budget process and at upcoming meetings involving the Association of Idaho Cities. AGENDAITEMNO. 6: SANITATION DEPARTMENT Kerri Farnsworth, Sanitation Superintendent, presented an overview of the Sanitation Department, including residential and commercial collection, recycling, rate structure, capital needs, and FY2027 goals. Mr. Kirkman explained that the Sanitation, Water and WPC utilities utilize five-year rate studies and financial analyses to establish rates in order to plan for capital improvements, equipment replacement and growth. The current rate study is effective through 2029 and generally anticipates annual rate increases of approximately three percent. Ms. Farnsworth reported that the Sanitation Department has approximately 49 employees and provides residential and commercial collection services to approximately 22,000 customers. The department handles garbage collection, container service, roll-off service, leaf collection, Christmas tree disposal and assistance to residents with mobility limitations. Crews also perform right-of-way cleanup to maintain the appearance of the community. Recycling services were discussed in detail. Mr. Kirkman reported that recycling costs had previously been approximately $30,000 to $35,000 per month but due to operational efficiency changes and market growth, those expenditures had been reduced to approximately $11,000 per month. Mr. Kirkman emphasized that the Sanitation Department receives revenue from recyclable commodities and has budgeted approximately $50,000 in commodity revenue. Ms. Farnsworth characterized the estimate as conservative and indicated that commodity markets for single-stream materials and cardboard were currently favorable. She added that the City’s recycling facility operates as a baling facility and receives materials from Pocatello and other communities. The department currently works with the Cities of Chubbuck and American Falls, among others and has also received materials from outside entities. She reported that approximately 20 tons of material are sent to the landfill, while approximately 4,500 tons are diverted through recycling efforts. Ms. Farnsworth reported that FY2027 goals include expanding commercial cardboard recycling, upgrades at the recycling facility to improve the drop-off area and traffic flow and exploring a City-sponsored composting program. CITY COUNCIL BUDGET DEVELOPMENT MEETING 8 JUNE 3, 2026 In response to questions from Council regarding establishment of a composting program, Mr. Kirkman explained that a successful program would require an appropriate site and a mixture of materials, including woody vegetation and grass, to produce a quality compost product. He added that Pocatello is among the lower-cost communities in the region for comparable sanitation services and that its rates remain competitive. Mr. Kirkman added that the Sanitation Department's capital plan includes vehicle replacement and anticipates using approximately $756,000 in reserves for planned capital expenditures. In response to Council discussion regarding increased demand for roll-off services, Ms. Farnsworth reported that service demand has been steady and increasing, particularly during the spring and summer construction season. She reported that crews recently handled approximately 49 roll-offs in one day. Mr. Kirkman reported that the department has nine roll-off trucks and that six pulls per day represents a very busy workload. Current operations have reached approximately seven pulls per day. Council members discussed the following topics: capacity of the recycling facility; recycling- related improvement funding mechanisms; and general sanitation revenues. Ms. Farnsworth confirmed that the recycling facility has the potential to accommodate approximately two to three times the current volume. Mr. Morgan stated that the City's accounting structure could accommodate tracking recycling and sanitation revenues and expenses separately. Mr. Kirkman noted that the current rate study anticipated the use of approximately $700,000 in reserves and that sanitation revenues have been exceeding the rate study projections. Mayor Dahlquist called a recess at 11:59 a.m. Mayor Dahlquist reconvened the meeting at 12:11 p.m. AGENDAITEMNO. 7: WATER DEPARTMENT Justin Armstrong, Water Superintendent, presented an overview of the Water Department, including staffing, operations, water quality, infrastructure, capital projects, revenues, water leases and conservation. He explained that the Water Department is organized into four divisions and is responsible for water production, treatment, sampling, administration and system maintenance. Mr. Armstrong reviewed the department's FY2027 goals, including water quality and safety, reliability and resilience, efficiency, planning and sustainability. He reported that the department conducts approximately 2,000 water quality tests annually to ensure compliance with applicable standards. In response to questions from Council, Mr. Armstrong discussed the age of portions of the City's water infrastructure and the use of asset tracking and GIS mapping to prioritize replacements. He explained that some older water mains continue to perform well depending on materials, soil conditions and construction practices, making strategic planning important. Mr. Armstrong reported that major projects included replacement of Wells 2R and 22R, replacement of the High Country Tank, Well 17 improvements and approximately two miles CITY COUNCIL BUDGET DEVELOPMENT MEETING 9 JUNE 3, 2026 of water main replacement annually. A water system facility planning study is also planned. In response to a question from Council regarding treatment and repair of streets following water system work, Mr. Armstrong explained that the department has been able to improve its maintenance backlog by using contracted services and recycled asphalt for certain repairs. He discussed the use of equipment and trailers to maximize resources and avoid unnecessary vehicle maintenance. In response to a question from Council regarding water leases and water rights, Mr. Armstrong explained that lease revenue can vary depending on available storage capacity and drought conditions. The Water Department closely monitors well levels and conducts monthly depth checks. He added that that current groundwater conditions are not considered alarming and that similar conditions have occurred in previous drought years. He confirmed that the local aquifer generally responds quickly to recharge. Mr. Armstrong explained that the department uses production rates, historical information and water levels to monitor conditions that could trigger water restrictions and that a tiered conservation system is in place. Voluntary conservation is encouraged throughout the year, with additional measures available if conditions deteriorate. Council members discussed the following topics: water leases involving Palisades Reservoir and other water rights; and staffing challenges, particularly in recruiting licensed water operators. Mr. Armstrong explained that available lease quantities vary annually based on storage conditions and the City's need to maintain sufficient water supplies. He added that because the Water Department operates continuously and requires specific licensing, some functions are difficult to contract out and that staffing shortages can affect preventative maintenance, such as valve exercising as well as response times. AGENDA ITEM NO. 8: WATER POLLUTION CONTROL (WPC): Levi Adams, Water Pollution Control (WPC) Superintendent, and Tom Kirkman, Public Woks Director, presented an overview of the Water Pollution Control Department, including operations, staffing, compliance, capital projects and financial resources. Mr. Adams explained that WPC has approximately 33 full-time employees, with two open positions and that the laboratory technician position is currently being reevaluated. Mr. Adams outlined that the department's primary goals are maintaining compliance and treatment standards while operating in a fiscally responsible manner. He advised that the department follows a rate-study approach designed to provide moderate increases while maintaining existing infrastructure and expanding facilities as needed. Mr. Adams discussed the City's unique geographic and environmental challenges associated with wastewater treatment and discharge. The Portneuf River presents significant environmental considerations, requiring the City to meet stringent discharge standards. He gave an overview of FY2027 capital improvement projects which include treatment facility improvements and collection system improvements. Major projects include rehabilitation of the treatment facility lift station, rehabilitation and rerouting of the Indian Hills force main and relocation of a pressure line associated with the South Valley Connector. Mr. Adams articulated that the proposed improvements will increase capacity and improve system reliability while reducing potential impacts to the Portneuf River and surrounding areas. CITY COUNCIL BUDGET DEVELOPMENT MEETING 10 JUNE 3, 2026 In response to a question from Council regarding an upcoming capital project, Mr. Kirkman explained that the department has planned for the upgrade and sufficient reserves are available to support the project. Mr. Adams emphasized that the department has also been able to reallocate debt service funding and transfer funds to capital construction accounts, resulting in significant savings. Approximately $4.4 million in additional capital funding is available as reserves continue to build. Mr. Adams indicated that, especially for a multi-year project, having the full funding amount available provides greater certainty for funding and completion of the project. AGENDA ITEMNO._ 9: UTILITY BILLING DEPARTMENT Cindy Robbins, Utility Billing Director, presented an overview of the Utility Billing Department, including staffing, customer service, billing operations, revenues, expenditures and FY2027 goals. Ms. Robbins explained that the department's staffing level has remained generally unchanged since 2015. The department's utility billing specialists handle approximately 4,600 customers during each billing cycle and staff members continue to process payments through cash, bank drafts, online bill pay and credit and debit cards. She added that Utility Billing staff members also coordinate meter-reading activities and other customer account functions. Ms. Robbins reported that the department generally maintains an even budget and plans for capital needs, including vehicle replacements. She explained that Utility Billing is funded through the City's enterprise funds and provides billing an collection services to the Water, Sanitation and WPC departments. Late fees, shutoff fees and related customer charges contribute to the department's revenues. Ms. Robbins explained that certain expenses relate primarily to printing, safety and third-party vendor charges, which can vary and are often difficult to forecast precisely. She reported that the department was fully staffed at this time. Mayor Dahlquist announced that the next Budget Development meeting would be June 4, 2026 at 9:00 a.m. AGENDA ITEM NO. 10: ADJOURN There being no further business, Mayor Dahlquist adjourned the meeting at 12:59 p.m. APPROVED: MARK DAHLQUIST, ME ATTEST AND PREPARED BY:
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