HomeMy WebLinkAboutCouncil Meeting - March 5, 2025 (208) 359-3020
35 North 1st East
Rexburg, ID 83440
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City Council Minutes – March 5, 2025
Mayor Jerry Merrill
Council Members:
Bryanna Johnson Eric Erickson
Robert Chambers David Reeser
Colin Erickson Mikel Walker
City Staff:
Stephen Zollinger – City Attorney
Matt Nielson – Finance Officer
Keith Davidson – Public Works Director
Alan Parkinson – Planning & Zoning Administrator
Scott Johnson – Economic Development Director
Deborah Lovejoy – City Clerk
5:30 PM Work Meeting – Discuss Local Improvement District Policies and No. 54
Public Works Director Davidson explained that the city engineers examined all the city roads (asphalt only) in the city excluding the curb and gutter. As shown in the chart below the
average annual budget for street reconstruction is 2.5 million dollars over the last five years. The arterial roads cost more money to reconstruct because a thicker cross section is
needed due to the heavier volume of traffic. He said with the amount of funds in the city’s street budget, they can reconstruct roads about every 50 years; however, the pavement life
cycle is only 20 years.
Public Works Director Davidson explained that a brand-new road starts to need maintenance at five years and there is a rapid decline in the pavement life cycle as the road ages. Some
of those maintenance processes are chip seal or crack sealing to prevent water from infiltrating the pavement and destroying the road base. They also try to extend the life of the asphalt
by applying a process called Cement Recycled Asphalt Base Stabilization (CRABS). He said even with those maintenance processes the pavement life cycle is 20 years. The city has roads
well beyond the 20 years, some roads are at 40 years.
Council Member Chambers asked if the city’s climate impacts the life cycle of the road. Public Works Director Davidson replied yes, the city’s climate impacts the life cycle of the
road especially when a lot of freezing cycles occur causing deterioration. He said moisture from melting snow or rain tends to pond which causes the worst situation because the hydrostatic
force of the vehicles tires pushes water down into the asphalt causing potholes.
Public Works Director Davidson said he is often asked where street funding sources come from and why don’t other cities participate in Local Improvement Districts (LIDs). The graph
below
illustrates the property and sales tax of cities that have universities. There is a disparity in the property and sales tax revenue that comes into Rexburg compared to some of the other
cities. The city, by state statute, can only increase the property tax budget by 3% every year, which for fast growing cities it is hard to keep up with infrastructure demands.
Public Works Director Davidson reviewed the graph below that illustrates the other revenue sources. The state fuel tax is based on population, the higher the city’s population the more
revenue the city is going to receive from the state fuel tax. The County Road and Bridge Property Tax are taxes paid by all property owners to the county, the county then refunds the
city 50% of those taxes that city residents paid. He said over the past several years the county has been decreasing the levy rate. In 2019 the city was receving $902,000 from the Road
and Bridge Property Tax and in 2025 the city is only receving $217,000 that is almost a $700,000 decrease.
Council Member E. Erickson asked for clarification regarding the county lowering the overall levy rate. Finance Officer Nielson explained the county is not lowering their budget to
his knowledge; however, it appears, they are shifting those funds from road and bridge to their justice department. He said he determined from 2017 to 2022 there was major shift in the
county’s justice budget, it went up about 47% in the last five years. The county has reduced the amount of tax funds in their street budget by about 30%.
Discussion regarding the changes in the levy rates. Finance Officer Nielson said levy rates change often; however, the budget is generally the same plus a 3% increase each year, the
increase could be more because of the assessed value component.
Public Works Director Davidson reviewed the list of the long-term strategies the city employs to increase funding for city streets. City Staff pursued obtaining the correct census data
for the higher density in population without road growth category. He said having the correct census data helped the city because it increased the amount of state fuel taxes the city
receives.
Public Works Director Davidson explained the narrowing of the roads is another strategy city staff recently completed on the Stonebridge Subdivision addition. He said allowing a narrow
road cross section will help save costs because the city will have less asphalt to maintain. The narrowing of the road is possible where parking on both sides of the street is not needed.
Public Works Director Davidson said city staff also goes after grants to help bolster the city’s road reconstruction fund. The city received a two million dollar grant from the state.
He said it is a long shot for the city to ever get a state approved special sales tax for city roads.
Public Works Director Davidson reviewed Resolution 2020 – 25 amending the cost sharing reimbursement for the replacement of sidewalk, curb and gutter on LID’s. He said to keep in mind
the city doesn’t participate in new sidewalk installations; for example, if the property did not have sidewalks installed at the time it was developed, the city does not participate
in the costs.
1. Sidewalk – 30% of the contractor final sidewalk cost per square foot
2. Curb & gutter – 30% of the contractor final curb & gutter cost per linear foot
3. Portions of Driveway required to be replaced to meet ADA standard – 30% of the contractor final cost per square foot
Public Works Director Davidson said when reconstructing a street, the federal code states sidewalks need to be brought up to current ADA standards. The curb and gutter are replaced
to mitigate stormwater drainage. Council Member Reeser asked if there were other sidewalk standards besides the ADA standards that would cause the sidewalks to be replaced. Public Works
Director Davidson replied, some of those other standards that would warrant the replacement of the sidewalks include cracks, uneven surfaces, tripping hazards, and safety concerns for
pedestrians; essentially, when sidewalks become too damaged or worn down.
Discussion regarding the USDA Single Family Housing Repair Loans and Grants to help pay for LIDs is no longer available to city residents because it is for rural cities.
Public Works Director Davidson reviewed the spreadsheet with different city participation percentages amounts.
Discussion regarding the participation percentages for city share and property owners. Public Works Director Davidson said the different city participation percentages in the spreadsheet
illustrate the costs ramification if the City Council decides to choose a higher participation percentage.
Council Member Johnson asked if they are going to discuss providing a subsidy on LIDs to low income property owners. City Attorney Rammell said he read several state statutes to determine
if cities are precluded from providing a subsidy or reducing the rates paid by certain individuals. He believes state code prohibits a full reduction or a subsidized rate on LIDs. The
state code provides a method for repayment and provides a payment plan; however, does not speak to a full reduction or a subsidized rate on LIDs.
City Attorney Rammell explained as he continued to review state statute 63-711, specifically states a property tax reduction benefit; however, would not reduce solid waste, irrigation,
or other fees charged by government. He said he completed a wider search into other jurisdictions, he found that there is not another jurisdiction in the state of Idaho that tries to
have their own reduction of LID fees. The State of Washington specifically within their circuit breaker legislation, they include special assessments. The state of Washington has a deferral
of special assessments and or property taxes and their code speaks specifically to a categorized segment of population that might be able to permanently defer their LID payments.
City Attorney Rammell stated as he further examined Idaho State code regarding subsidies and or reduction rates for LIDs, he found the precedent from the most commonly cited litigation
that was argued revolving LIDs in a 1986 case from the city of Moscow. The litigation states what is fundamental to assessment law which is in order to properly assess cost of an improvement
to an effective property, the property must receive a special benefit one that is more intense then is received by the rest of the municipality. A local improvement district is not looked
at as a tax. The state views local improvement districts in terms of a benefit. He said if the city were to create a system where there is a subjective approach to who participates and
who does not, it could undermine what is fundamental to assessment law.
Discussion regarding the financing options for LIDs. Finance Officer Nielson explained the city’s financing policy for an LID final assessment is to use the current market rate of interest
plus 1%. The property owner has the option of financing their LID final assessment over a period of 10 years at that interest rate. He said because the financing of the LID is internal,
the city has more control of the interest rate verses the financing through a warrant. The interest rate could be set as a fixed rate through a City Council approved policy. He reviewed
the diagram illustrating the costs with a 5.50% and 3.50% interest rate.
Finance Officer Nielson said he believes setting a fixed interest rate is a good option to make the LIDs final assessment costs more feasible to pay over 10 years. The money accrued
from the interest charged to finance LIDs is invested and these debt service funds are backed up with the general fund. When an LID is closed out, the city’s policy has been, the money
that is left in the debt service fund, 50% of that money is moved back to the general fund and 50% is moved to the streets fund. The reason why 50% is moved back to the streets fund
is to help offset some of the city’s participation percentage for the sidewalks, curb and gutter.
Council Member E. Erickson asked how many residents participating in an LID finance their final assessment costs over the 10-year period. Staff Account Phethean replied he does not
have a percentage; however, there are very few that finance their LID to the full 10-year term.
Discussion regarding the potential of loan forgiveness for LIDs. Attorney Rammell explained that the Idaho Statutes specifically prescribes a way to spread out an LID payment and ways
to claim the money through liens, reentering and foreclosing; however, it does not give a way to suspend or forgive LID assessments.
Council Member Johnson stated she views LIDs differently, if someone buys a new home, then they are making the decision to have a sidewalk; however, if you don’t have a sidewalk and
the city comes and tells the property owner, you must put in a sidewalk that is not the property owner’s choice. Mayor Merrill said the opposite side of that coin is when the people
without the sidewalk bought that home, they paid a lower price because that property did not meet the city requirements of having a sidewalk.
Council Member Chambers wondered what would happen if a resident decided to finance their LID assessment for the 10-year term and then did not make a single payment. What would happen
if that property owner passed away? Finance Officer Nielson said if the LID assessment goes past due several years, then a treasurer’s tax is placed on the property which is a more powerful
lien. Once the lien is placed on the property the next step would be to foreclose on the property.
Council Member Walker said he is in favor of changing the city’s participation percentage to 35% and the set interest rate of 3.5%.
Council Member Johnson said the set interest rate and 35% city participation percentage is a start; however, it was a hardship when property owner’s assessments were $5,000 now some
of those assessments are $15,000 and she is not comfortable with giving property owners a $15,000 bill. She said she believes these high bills are a hardship for a lot of property owners.
Council Member Reeser said he would be in favor of exploring the idea of increasing the city’s participation percentage to 50% and possible help with the cost of the curb and gutter.
Council Member Johnson said something important to remember is that the City Council controls the city budget. The Councilmembers have seen the budget, and they could adjust the budget
if that is what they decide they want to do to offset the LID assessment charged to the property owners. Mayor Merrill said he understands costs have increased astronomically; however,
there needs to be a balance and careful consideration when increasing the city’s participation amounts because there could have been property owners struggling to make payments on the
previous LIDs. He asked the Councilmembers to keep in mind are we being fairer to these property owners on LID 54 and less fair to the property owners on previous LIDs.
Council Member C. Erickson said he worries about the elderly, widowers, and other property owners that cannot afford to pay for an LID; therefore, he would like to look at some more
ways the city can possibly help by looking closely at the budget before making any changes to the policy.
City Attorney Rammell suggested that since there is not a provision in the state statute that allows subsidies for LID assessments the Councilmembers could petition the state legislators
to have a circuit breaker classification designated for LID assessments.
Public Works Director Davidson said city staff can send the Councilmembers the spreadsheet with the different city participation percentages to review before making a change to the
policy. Mayor Merrill asked that the spreadsheet include the costs if the city were to pay for the curb and gutter instead of sharing the costs of the curb and gutter with the property
owners; however, the property owner would be responsible for the full costs of the sidewalk on their property.
Work Meeting Adjournment 6:35 P.M.
6:36 P.M.
Council Member Reeser said the prayer.
Council Member E. Erickson led the pledge.
Roll Call of Council Members:
Attending: Council Member Johnson, Council Member Chambers, Council Member C. Erickson, Council Member E. Erickson, Council Member Reeser, Council President Walker and Mayor Merrill.
Mayor Merrill mentioned the Open House on March 12th, 2025, at 5:00 P.M. for the property owners participating in Local Improvement District 54 and the public. Some city staff members
will be there to answer questions regarding the LID.
Public Comment: Items not on the agenda; limit of 3 minutes; issues may be considered for discussion on a future agenda. Please keep comments on point and respectful.
David Merrill informed everyone of the creation and opening of a community non-profit business. The Rexburg Soup Kitchen will be opening in early April at the Veterans Hall. The soup
kitchen will be open for three months before closing for the Madison County Fair, once the fair is over, they will resume operations again in the fall. The soup kitchen is a community
sponsored non-profit, they will not be taking state or federal money so that they can offer a free meal service to anyone without regard to income level or pre-qualification or pre-
registration.
Mr. Merrill invited everyone to the Rexburg Soup Kitchen ribbon cutting, which is being organized by the Chamber of Commerce on April 1st. Their first full weekly service will commence
on April 2nd. He said because they are heavily dependent on volunteers to run the soup kitchen, he has some input regarding the wording in Proclamation 2025 – 01 Commitment to Volunteerism
in the City of Rexburg. The proclamation commits to promoting volunteerism, leveraging Just Serve, he recommended to change the wording to leveraging platforms like Just Serve. The reason
for the word change is, there are some community members who feel like the Just Serve volunteer program is the back door to a proselytizing effort or church run program. He has been
asked to create alternate platforms for voluntary sign-up assignments.
Mayor Merrill asked Attorney Rammell if there is an issue with changing the wording on Proclamation 2025 – 01 Commitment to Volunteerism in the City of Rexburg to read leveraging platforms
such as justserve.org and others. City Attorney Rammell replied that he does not see an issue with changing the wording on the proclamation because it is not a substantial change.
Keith Wilding asked the City Council to consider a traffic pattern change at the intersection of East 2nd North and Moody Road also known as the Walmart intersection. Moody Road is
a two-lane road with a turn lane to get on to 2nd East during heavy traffic hours that left turn lane becomes backed up with traffic. He believes the backed-up traffic will become worse
as future development occurs. He suggested that the westbound lane on Moody Road have an optional left-hand turn.
Discussion regarding the width of the road and the possibility of painting a left turn lane.
Public Hearing 6:30 PM: Proposed Idaho Department of Commerce for an Idaho Community Development Block Grant in the amount of $245,000 for the Tabernacle Civic Center
Taci Stoddard with Altura explained the funding for this program, the Block Grant Program comes through the State of Idaho to the US Department of Housing and Urban Development (HUD).
They have asked that the city take comments for up to five days after this hearing and any inquiries be responded to in writing for 15 working days from the hearing date, if it is practical.
The grant is a funding opportunity for the Rexburg Tabernacle City Center to get a new HVAC system. The total project costs are $860,500 which includes the $245,000 grant funds plus
$616,000 of city cash and $7,500 city in kind.
Ms. Stoddard said if the city is awarded the grant, the project schedule would be to hopefully complete the design and begin construction in the fall of 2025 and the project completion
in the Spring 2026. The proposed beneficiaries are all the residents of the city of Rexburg, including low to moderate income residents.
Council Member C. Erickson asked if the city needed to match any funds for this grant. Ms. Stoddard replied the match is $616,000 which includes some of the design and about $21,500
which is the purchase order for the HVAC mechanical design, the rest is construction costs.
Council Member C. Erickson asked if the matching funds are in the budget. Finance Officer Nielson explained currently, there is about $350,000 in this fiscal year. This project will
more than likely need to be re-budgeted during the budget process because the construction work will not begin until next fiscal year. He said the Restore the Tabernacle campaign could
provide additional revenue. They are looking at different options to keep the costs down; however, the project is going to take more than $350,000 in the budget.
Council Member Johnson asked how much time the state has given the city to use the grant funds. Ms. Stoddard replied the project scheduled is set; however, the Department of Commerce
can be flexible, giving the city about two years to use those grant funds.
Mayor Merrill opened the public hearing.
Public Testimony in favor of the proposal (5-minute limit): None
Public Testimony neutral to the proposal (5-minute limit): None
Public Testimony opposed to the proposal (5-minute limit): None
Mayor Merrill closed the public hearing.
Council Member Walker moved to approve the Idaho Department of Commerce for an Idaho Community Development Block Grant in the amount of $245,000 for the Tabernacle Civic Center; Council
Member Chambers seconded the motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council President Walker
Council Member Reeser
The motion carried.
Staff Reports:
Public Works: - Keith Davidson
Surplus Wood dbh6.31 extendable side mower Action Item
Public Works Director Davidson explained the surplus item is from the golf course, it is a side mower that they no longer need. Finance Officer Nielson said this side mower has not
worked for the desired application; the golf course needs a different mower. The side mower is in good condition, they could get a fair price for the mower.
Council Member C. Erickson moved to approve the Surplus Wood dbh6.31 extendable side mower; Council Member Reeser seconded the motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council President Walker
Council Member Reeser
The motion carried.
Finance: - Matt Nielson
Finance Officer Nielson mentioned the Fiscal Year 2024 Audit report will be held at the City Council Meeting on Friday, March 14th, 2025, at noon.
Mayor’s Business:
Ratify Proclamation 2025 – 01 Commitment to Volunteerism in the City of Rexburg Action Item
Mayor Merrill read Proclamation 2025 – 01 Commitment to Volunteerism in the City of Rexburg.
PROCLAMATION
No. 2025-01
Commitment To Volunteerism in the City of Rexburg
Whereas, we firmly believe that the values of compassion, empathy, and community
support are the foundation of a united harmonious society and fosters connections that
transcend differences; and
Whereas, the strength and prosperity of our cities, towns, and villages are based in the
selflessness of its residents to serve and uplift one another; and
Whereas, we acknowledge the profound impact that can be achieved when we extend a
helping hand to our neighbors, especially those of diverse backgrounds and lifting them
up and collectively working to improve lives; and
Whereas, we nurture a culture of giving within our cities, emphasizing that volunteerism
is not just a duty but a source of personal fulfillment and community strength; and as we
work side by side with and learn from each other, mutual understanding increases,
misconceptions can be corrected, and new friendships are built; and
Whereas, we urge all citizens to care for one another, volunteer, and engage in acts of
service and kindness that contribute to our city's betterment and its inhabitants'
well-being, regardless of background or belief; and
Whereas, the City of Rexburg has joined a growing list of supporters, including the President of the National League of Cities and hundreds of leaders to date, in making a commitment
to volunteerism.
Now, Therefore, Be It Proclaimed, I, Jerry Merrill, Mayor of Rexburg, Idaho that the City of Rexburg, commits to promoting volunteerism, leveraging platforms like JustServe.org to make
it easier for residents to find and engage in volunteer opportunities and will regularly acknowledge and celebrate the contributions of volunteers.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Rexburg to be affixed this 5th day of March of the year of our Lord two thousand twenty-five.
APPROVED:
_____________________________
Jerry Merrill
MAYOR
ATTEST:
______________________________
Deborah Lovejoy
R
EXBURG CITY CLERK
Mayor Merrill explained that he met with one of the Just Serve representatives last week and was asked if the city would like to become a Just Serve city. The ratification of this proclamation
would make the city a Just Serve city.
Council Member Chambers moved to ratify Proclamation 2025 – 01 Commitment to Volunteerism in the City of Rexburg; Council Member Johnson seconded the motion; Mayor Merrill asked for
a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council President Walker
Council Member Reeser
The motion carried.
Calendared Bills:
Second Reading: Those items which have been first read:
Ordinance No 1328 Rezone 4 W Moody Rd from Light Industrial (LI) to Medium Density Residential 2 (MDR2) #24-01171 – Alan Parkinson Action Item
ORDINANCE NO. 1328
Rezone 4 W Moody Rd from Light Industrial (LI) to Medium Density Residential 2 (MDR2) Zone
AN ORDINANCE AMENDING AND CHANGING THE ZONING MAP OF THE CITY OF REXBURG, IDAHO, AND PROVIDING THAT THE ZONED DESIGNATION OF THAT CERTAIN PROPERTY HEREINAFTER DESCRIBED, SITUATED IN
REXBURG, MADISON COUNTY, IDAHO, BE CHANGED AS HEREINAFTER DESIGNATED; AND PROVIDING WHEN THIS ORDINANCE SHALL BECOME EFFECTIVE.
Discussion:
Council Member E. Erickson asked why the property owner did not request the rezone all the way up to the freeway. Planning and Zoning Administrator Parkinson stated the property owner
has not finalized the plans for that section of property.
Council Member E. Erickson moved to approve Ordinance No 1328 Rezone 4 W Moody Rd from Light Industrial (LI) to Medium Density Residential 2 (MDR2 and consider second; Council President
Walker seconded the motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council President Walker
Council Member Reeser
The motion carried.
Third Reading: Those items which have been second read: NONE
Consent Calendar: The consent calendar includes items which require formal City Council
action, however, they are typically routine or not of great controversy. Individual Council members may ask that any specific item be removed from the consent calendar for discussion
in greater detail. Explanatory information is included in the City Council’s agenda packet regarding these items.
Minutes from February 19, 2025, Meeting
Approve the City of Rexburg Bills
Council Member C. Erickson moved to approve the Consent Calendar containing the minutes and city bills; Council Member Johnson seconded the motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council President Walker
Council Member Reeser
The motion carried.
Roll call vote for motion to move into Executive Session as per Idaho State Statute §74-206(1)(j) To consider labor contract matters authorized under section 74-206A(1)(a) and (b),
Idaho Code Action Item
Council President Walker moved to enter into Executive Session as per Idaho State Statute §74-206(1)(j) To consider labor contract matters authorized under section 74-206A(1)(a) and
(b), Idaho Code; Council Member Chambers seconded the motion; Mayor Merrill asked for a roll call vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Executive Session Began 7:20 P.M.
Executive Session Ended 8:59 P.M.
Council Member Chambers moved to approve to set a special combined meeting and invite Madison County Commissioners and Madison Fire District for the purpose of an Execute Session as
per Idaho State Statute §74-206(1)(j) To consider labor contract maters authorized under §74-206A(1)(a) and (b), Idaho Code; and to invite staff as designated; Council Member C. Erickson
seconded the motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council President Walker
Council Member Reeser
The motion carried.
Adjournment 9:02 P.M.
APPROVED:
________________________________
Jerry Merrill, Mayor
Attest:
________________________________
Marianna Gonzalez, City Deputy Clerk