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Home My Public Portal About2021.04.23 Special Meeting Minutes MINUTES McCall City Council Special Meeting McCall City Hall--Legion Hall VIA TEAMS Virtual April 23, 2021 Call to Order and Roll Call Work Session Adjournment CALL TO ORDER AND ROLL CALL Mayor Giles called the special meeting of the McCall City Council to order at 9:00 a.m. Mayor Giles, Council Member Maciaszek, and Council Member Nielsen all answered roll call. Council Member Callan and Council Member Holmes were absent. City staff members present were Anette Spickard, City Manager; Shay Tyler,Deputy Clerk; Linda Stokes, City Treasurer; Eric McCormick, Golf Course Superintendent; Chris Curtin, Information Systems Manager;Traci Malvich,Human Resources Manager;Kathy Ikier,Deputy City Treasurer WORK SESSION City Treasurer Linda Stokes opened the work session and presented her goals for the meeting. Public Comment Mayor Giles called for public comment at 9:04 a.m. Hearing no comments, Mayor Giles closed the comment period at 9:04 a.m. Purpose & Agenda City Treasurer Stokes and City Manager Anette Spickard gave an overview of the FY22 Budget Development session. The FY21 Cares Act Overview of Mayor Revenue Sources City Treasurer Stokes took the Council through each of the major revenue sources. Property Taxes—The City participated in the FY21 CARES Act Public Safety Grant Initiative that provided a onetime property tax relief of approximately $305,000 which will affect all funds in the amount of tax dollars available. Staff talked about the impacts created by participating in the Initiative which included no merit raises for employees and increasing the foregone, and by accepting the CARES Act dollars, the monies that would have been available for the growth and MCCALL CITY COUNCIL Page 1 of 4 April 23, 2021 Special Meeting annexation are permanently lost. One positive is the City will not be held to the lower levy rate of 2020 but rather that of 2019. Growth and Annexation — The growth amount is due from County Assessor June 7. There is legislature being considered that could impact a city's ability to take 100%of the new construction. City Manager Spickard shared these state legislative bills are looking to cap growth and annexation that a city can levy, and staff is watching the progress as there may be news late in the budget process of how much the city can take on property taxes. Some legislation is looking to cap growth and annexation at 80% rather than 100% that will place a challenge on communities with an upward growth pattern in development and construction with funding additional services and road maintenance. The real estate market is strong so there has not been any decline in property taxes in comparison to previous years. Staff is working on a draft of what these impacts will have on the budget. Capital Projects: ARPA Funds and Construction Cost Index—City Manager Spickard spoke to the most current federal stimulus package distribution which is based on a formula of population and budget in relation to other cities in the State. It is estimated the City will receive $742,217 to be spent on certain kinds of infrastructure and COVID-19 expenses. Staff is waiting for guidance from the State on how to use the funds and if there are any strings attached. Once the data is received, staff will present recommendations to the Council. She also shared the CIP budget this year will be affected by the higher cost of construction so staff will be investigating those cost increases. Planning and Building Permit Fees — City Treasurer Stokes explained the revenue shown in the budget does will be different from the revenue reported from CED due to her using a cash basis system. She went over the different revenue source numbers. Building permits have been more residential in nature this year. Local Option Tax—There has been record numbers for Local Option Tax (LOT) dollars and the trend has been continuing. Currently 66% of the LOT has been collected at the halfway point of the fiscal year. Money is collecting to finish the last of the downtown project. The FY22 Tourism LOT estimated revenue is $766,797 with the City Share of $200,000 for the Parks relocation leaving $566,000 for the LOT Commission to consider for tourism applications. Council should see the LOT Commission's recommendations by the end of May. Golf Facility Operations—A portion of the increase in the fees will be put aside for the CIP items identified by the Golf Course Master Plan completed last year. Sales of FY20 exceeded the previous five years. Golf Course Superintendent Eric McCormick explained that last October was a great month due to greens and tournament fees. Water System Revenue—This is year three of the water rate increase and utility billing has been very busy with new accounts.The water system operations are reaching the age where maintenance and replacement is becoming a focus. Expect more projects to come through as these systems are replaced or have maintenance. The system buy-in revenue has increased due to the new construction. MCCALL CITY COUNCIL Page 2 of 4 April 23, 2021 Special Meeting State Shared Revenue— State Liquor Distribution has been decreasing by about 2% each year but there still has been growth. Legislation has affected State and County Sales Tax Distribution therefore,beginning in FY20, cities cease to receive excess distribution which creates a big impact with less revenue for the City. State Highway Distribution has seen an increase but HB312 changed the percentage of gas tax calculation which decreased the amount the City receives in revenue and things like electric cars also affect that revenue. This makes the City reliant on other revenue sources in order to take care of the road. McCall is very fortunate to have the Street LOT to help pave roads. Overview of Mayor Cost Drivers Personnel — Human Resource Manager Traci Malvich presented the personnel budget numbers. National average for wage increases is 3% and she has been looking at how to spread an increase between a Market/Merit increase. She felt it is important to have a merit increase as staff has worked hard to adjust in dealing with the pandemic. The Benefit Rate increase is approximately 8% for medical and 5% (average is 3%) for Dental. The IIIA Board was recommended to take a 5% in 2020 but because of the pandemic, they did not implement an increase but used surplus funds to cover the increase. The board consultant states to expect a bad year every 5 years so this is not unusual. IIIA is still recommended regardless of the increase because the benefits far outweigh the cost increase. She spoke to the requirements of the customer service,maintaining the city infrastructure, and the importance of supporting staff financially in order to keep the level of skill and professionalism currently in place. Utilities & Fuel — City Manager Spickard mentioned Idaho power is requesting an increase and fuel prices are going up. The number of cost drivers that influence the City CPI is affected by these variables so following the national average is not always possible due to these inflation rates. The goal is to keep the current service level and accomplish major capital projects in 2022. In order to plan for next year, she asked Council to provide input on any projects they felt were important so she could present those to the department heads for their budget creation. City Treasurer Stokes shared the rising costs of supplies will impact individual budgets as well. Council Discussion/Direction on Budget Parameters Council expressed thanks and confidence with what has been presented and did not have any further insight to give. Council Member Maciaszek did ask staff to take a conservative approach. Mayor Giles agrees in supporting staff with an incentive and is supportive of a 3% market/merit increase. Council Member Nielsen asked if there was anything specific staff would like for direction from Council. City Manager Anette Spickard stated the FY22 budget will include all the maximum assumptions discussed today and asked if the Council is comfortable with the starting point. The Council all stated they were and gave staff the direction to move forward with the draft budget. FY22 Budget Development Next Steps City Treasurer Stokes stated the LOT funding requests will be presented at the May 28 Special Meeting and she has invited MCPAWS and Treasure Valley Transit. Meeting Schedule: ■ Council Work Session on May 28, 10:00AM to 1:OOPM MCCALL CITY COUNCIL Page 3 of 4 April 23, 2021 Special Meeting ■ Council Work Session on June 25 10:00AM to 1:00PM ■ Council Work Session on July 29 5:30PM to 8:30PM — important meeting for Council attendance to set the budget and need full attendance. ■ FY22 Budget Public Hearing on August 12, 5:30PM—adopt budget and possible foregone ■ FY22 Foregone Public Hearing on August 12, 05:30PM ■ FY22 Budget Adoption on August 12 or August 26 The Council had no further questions and thanked staff for the presentation. ADJOURNMENT Without further business, Mayor Giles adjourned the meeting at 10:17 a.m. SEA 5; ATTEST: �'♦ +�L p Robert S. Giles, Mayor L BessieJo W finer, City C rk MCCALL CITY COUNCIL Page 4 of 4 April 23, 2021 Special Meeting