HomeMy WebLinkAboutCouncil Minutes Recreation Budget Meeting - May 13, 2026 (208) 359-3020
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Rexburg, ID 83440
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City Council Fiscal Year 2027 Budget Meeting Minutes – May 13, 2026
Mayor Jerry Merrill
Council Members:
Bryanna Johnson David Reeser
Colin Erickson Bill Riggins
Eric Erickson Alisha Tietjen
City Staff:
Spencer Rammell – 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
2:30 P.M. Fiscal Year 2027 Budget Meeting – Recreation Department
Finance Officer Nielson reviewed the Rexburg Rapids Budget Report.
Discussion: the pool began operating in 2011 and initially received a grant of nearly $100,000. The first year generated about $33,000 in profit, while the second year resulted in a
loss of about $49,000. Over the years, the pool's financial performance has fluctuated, with some profitable years and some years with losses. The strongest year was 2021, shortly after
COVID, when the pool earned nearly $80,000 in profit. The following year brought a profit of about $13,000, but more recent years have seen losses of approximately $76,000, $59,000,
and $18,000. On average, the pool loses around $15,000 to $16,000 annually from an operational standpoint, with capital costs excluded from the calculation.
Finance Officer Nielson emphasized that capital expenses are expected to be subsidized and pointed out that urban renewal funding covered the construction and bonding costs. The goal,
therefore, is not necessarily for the facility to pay for its own construction but to cover its operating expenses.
General Fund contributions increased to about $65,000 in fiscal year 2026. For fiscal year 2027, City Staff proposed that the General Fund provide a subsidy of approximately $115,000.
Revenues, the budget estimates about $282,000 in admissions revenue for the current year and $288,000 for the following year. Discussion regarding admission pricing, noting that the
last rate increase occurred two years ago and that another increase will take effect this year. The current admission rates are $8 for residents and $10 for non-residents, and those
rates were implemented for the current year.
Punch passes, season passes, and swim lessons. Punch passes generate solid revenue, and season passes bring in around $8,000 annually. Swim lessons currently cost $60 for residents
and $65 for non-residents and that most competing providers in the area charge similar rates.
Party room rentals, which generate approximately $17,000 in revenue. Finance Officer Nielson explained that the aquatic center began fiscal year 2026 with a carryover balance of about
$51,000. Based on current projections, he believes the fund balance could grow to roughly $112,000 by the end of the fiscal year. Because significant expenses are expected in fiscal
year 2027, the proposed budget assumes that the entire $112,000 balance will be carried forward to help offset those costs.
Facility expo and vendor events. The budget estimate may be too conservative because registrations have exceeded expectations. Revenue is already around $70,000 despite the event not
yet being sold out. The estimated revenue is between approximately $73,000 and $76,000 from a single evening event. Based on those figures, the total revenue could ultimately exceed
$80,000.
Finance Officer Nielson decided to revise the budget projections by increasing revenue from exclusive events to $78,000 in both budget lines and setting swimming lesson revenue at $65,000
to provide a more realistic target.
Finance Officer Nielson explained that looking at total revenue, the aquatic center generated approximately $546,000 in 2024 and about $529,000 in 2025. For fiscal year 2026, the goal
is roughly $600,000 in revenue, excluding the fund balance carryover. For 2027, projected revenue is close to $660,000, although he notes that the estimate is not significantly more
aggressive than the prior year and reflects only modest revenue growth.
Expenses, salary costs include portions of management and administrative staff time allocated to the aquatic center based on the amount of work they perform for the facility throughout
the year. These costs total around $60,000. Lifeguard wages are budgeted at approximately $117,000. Lifeguard costs had risen as high as $143,000 in 2024 but have since been brought
under better control through management efforts.
Cashier the budget includes about $47,500 for cashier payroll, but that amount might be high based on historical spending. Cashier wages were around $16,000 annually in 2021 and 2022
before increasing sharply to approximately $35,000 in 2023. City Staff explained that the increase coincided with rising wages across the local labor market, particularly after fast-food
employers significantly raised hourly pay rates to attract workers. The average cashier pay has only increased from roughly $7.25–$7.50 per hour in earlier years to about $9.00 per hour
today, an increase of around $1.50 per hour. Finance Officer Nielson said that hourly wages have not tripled, he questions why total cashier payroll expenses have risen so dramatically
and suggests there may be opportunities to reduce those costs while still attracting employees.
Operational Expenses. Employee benefits have been increased significantly in the proposed budget, reaching nearly $60,000. Supply expenses have increased noticeably due to deck chairs
replacement. Many of the existing chairs have reached the end of their useful life, the budget includes funds so staff can begin replacing them during the upcoming year.
Concession Inventory and Pool Chemicals, which are budgeted at approximately $30,000 and $35,000 respectively. Drug testing is another expense category that has historically been significant
and may increase further because of the large number of seasonal employees hired each year. The city's newer drug testing process has become more expensive and generate more false positives,
which often require additional laboratory testing to verify results.
Insurance costs estimate of approximately $17,000 but final figure is not available. Training expenses are budgeted at around $7,600, while credit card processing fees remain at a significant
cost at roughly $12,000 annually. Utility expenses were also reviewed. Natural gas is budgeted at approximately $26,000, although this category tends to fluctuate from year to year.
Electricity costs have been more stable, remaining in the low $20,000 range. Discussion regarding combining heat and power (CHP) system that was purchased to improve energy efficiency.
Equipment repairs are budgeted at about $14,000, but repair costs can vary considerably. In one recent year, those expenses exceeded $21,000. Software costs currently sitting at around
$11,600.
Boiler upgrade and replacement project estimated at about $225,000. City Staff confirmed that planning for the project is already underway and that the quoted amount is intended to
cover the entire project, including labor and installation. The boiler and mechanical systems operate in a highly corrosive setting due to moisture and chemicals, meaning materials such
as standard steel deteriorate quickly. As a result, components often need to be constructed from PVC, stainless steel, or other corrosion-resistant materials.
Finance Officer Nielson reviewed the Ice Rink Budget Report.
Finance Officer Nielson explained that the previous operator projected the rink would generate nearly $800,000 in annual operating profit, a figure the city did not believe was realistic.
After reviewing the rink's performance before taking over operations, the city created its own revenue projections, but those forecasts also proved to be too optimistic. Revenue trends
have been concerning, with income declining each month after the initial opening period. City Staff noted that the rink's strongest revenue months are expected to be during the winter
season. The facility requires significant additional investment after taking over operations. Several important items had not been completed or purchased by the previous operator. Additional
capital expenditures have been included:
Floor scrubbers
Security cameras
ADA-access improvements, including an accessible entrance door
A major mechanical issue occurred when the chiller developed an oil leak, resulting in approximately $9,000 in repair costs. City Staff are actively pursuing warranty coverage for the
chiller repair because the facility is less than a year old. Despite the financial and operational challenges, the rink continues to host rentals and events, and the most recent month
performed better than previous months.
Ice Rink Manager Josh Eaton explained that he had been working with city staff to organize promotional events around holidays such as Memorial Day and Juneteenth. He said the rink planned
to
develop a calendar of events that would include activities for both major and minor holidays throughout the year. The goal is to create consistent programming and give the community
advance notice of upcoming events. He noted that staff had recently organized a Mother's Day promotion where mothers skated for free. He explained that free admission promotions could
still be beneficial because they encourage additional attendance and spending. The ice rink kitchen is not yet ready for use because it requires extensive cleaning.
City Staff explained that they are working to improve food service operations by integrating food offerings into ticket packages and special events, which could increase kitchen usage
and generate additional revenue. Discussion regarding marketing efforts. Most promotional activities are currently being conducted through the rink's Facebook page, particularly the
Neutral Zone social media account.
Finance Officer Nielson explained that when the budget was first presented to the City Council, the expectation was that the rink would require approximately $56,000 in General Fund
support during fiscal year 2026. Based on updated information, however, he now believes the subsidy would be closer to $60,000. For fiscal year 2027, the projected subsidy is approximately
$186,000, although he noted that upcoming capital expenses are a major reason for the increase and will be discussed later.
Revenue projections from public skating admissions. City Staff believe that public skate revenue could reach approximately $85,000 by the end of the current fiscal year and increase
to about $160,000 the following year. Concession and sales revenue, this category included both direct food sales and commissions earned from vendors operating within the facility. Revenue
projections are intentionally conservative, with approximately $10,000 budgeted for the following year until city staff can better evaluate actual performance.
Ice rental revenue exceeded expectations. The rink generated approximately $15,000 in ice rental revenue during the previous month alone, prompting an increase in annual revenue projections.
Skate rentals are projected at approximately $20,000 for the current fiscal year and increase that estimate to about $50,000 for the following year.
Contributions and sponsorship revenue, the budget includes approximately $6,500 for the current year and $12,000 for the following year. City Staff explained that they are developing
sponsorship and advertising opportunities for local businesses. Potential options included advertising boards around the rink, sponsorships on the ice re-surfacer (Zamboni), and other
promotional placements throughout the facility.
Expenses, the budget included one full-time position with salary costs of approximately $64,000. Part-time wages are projected at about $77,000 for the current year, with staff aiming
to keep expenses within that budget by adjusting staffing levels during slower periods. For the following year, part-time wages are projected to increase to approximately $104,000 as
activity levels and operating hours expand. Employee benefits are budgeted at roughly $64,000 for the upcoming year.
Supply costs have been reduced because many startup purchases were made during the city's first year of operation. These initial expenditures included recreational equipment and activity
items needed to support programming at the rink. Concession expenses are projected to increase in the next budget year to align with expectations for higher concession sales and increased
facility usage.
Contracted services and maintenance costs at the ice rink. The "hired work" budget category was significantly higher than originally expected because of the numerous service contracts
required to maintain the rink's specialized equipment. These contracts cover systems such as the refrigeration equipment, cooling tower, water treatment systems, and other technical
components necessary for rink operations. City Staff acknowledged that these recurring maintenance agreements represented a much larger expense than anticipated when the facility first
opened.
Utility costs, particularly electricity, city staff identified as one of the largest uncertainties in the rink's budget. The city only has about one month of utility data to analyze,
and during that period the facility incurred approximately $10,900 in electricity costs. Because the rink has not yet operated through a full summer season, it is not known whether power
consumption will remain stable or increase significantly during warmer months. Given the uncertainty, the proposed budget included approximately $130,000 in annual electricity costs
for the following year, averaging nearly $11,000 per month. Natural gas expenses are easier to forecast. Finance Officer Nielson noted that utility costs, particularly electricity, could
become one of the primary factors influencing whether the rink remained open year-round or reduced operations during the summer.
Capital budget, City Staff reviewed a recently purchased floor scrubber that costs approximately $5,000 and is being used to maintain the facility. Security and camera upgrades, which
represented a much larger capital expense. Preliminary estimates placed the security camera project at roughly $50,000.
Capital Equipment needed: acquiring a second ice resurfacing machine (commonly referred to as a Zamboni). The rink should have a backup machine and approximately $65,000 has been included
in capital planning for that purpose. Most used resurfacing machines available for purchase are in Canada, and while some could be purchased for around $26,000, shipping costs would
be additional. The lower-priced machines are more than 30 years old, making them less attractive from a reliability standpoint. City shared pricing information received from another
rink that purchased a new machine. A new re-surfacer from Zamboni was quoted at approximately $110,000 for the base model, with additional features potentially increasing the total cost
by another $25,000 to $50,000.
New skate-sharpening machine City Staff explained that the current automatic sharpener works primarily for hockey skates and rental skates but is limited in its capabilities. A manual
sharpener would allow staff to sharpen a wider variety of skates, including figure skates, goalie skates, hockey skates, and rental skates, while also producing higher-quality results.
A refurbished machine is available for approximately $2,100 and could be delivered directly to Rexburg. He believed the investment could generate revenue because the rink currently charges
$5 per skate sharpening, although he noted that the market would likely support a price of $10 to $15 per pair while remaining below competitors' rates.
Finance Officer Nielson explained that the proposed fiscal year budget projected approximately $187,000 in city support, and with the capital items discussed during the meeting, the
actual subsidy could approach $195,000. The final amount would depend in part on unresolved costs such as the
security camera project.
Finance Officer Nielson reviewed the Recreation Administration Budget Report.
Finance Officer Nielson reviewed the Recreation Administration budget, which is fully supported by the General Fund. He noted that, for the first time, the budget reflected revenue
associated with the ice rink through the recognition of a contributed capital asset valued at approximately $5.1 million. This accounting entry represented the addition of the ice rink
facility to the city's assets.
Salary expenses included allocations for key recreation department staff. The budget reflected adjustments to how employee time is assigned among city programs. One employee's position
was shifted so that a portion of salary and benefits would be charged directly to the race program rather than entirely to Recreation Administration, reducing the General Fund burden.
Another employee's salary allocation is split between Recreation Administration and other recreation operations. Salary projections also included the approved 2.73% cost-of-living adjustment.
Benefits represented the next largest expenditure category. Beyond salaries and benefits, most budget items were described as routine operational expenses with only modest increases
from prior years. Fuel and oil expenses received a small increase, while insurance costs remained uncertain and would be updated once final estimates became available.
Finance Officer Nielson noted the Recreation Administration expenditures for the upcoming budget year are projected to be very similar to what had been spent in the prior year. The
primary reason costs appeared stable were that portions of employee wages and benefits have been reassigned to other programs, helping offset increases elsewhere in the budget.
Finance Officer Nielson reviewed the Recreation Programs Budget Report.
Finance Officer Nielson noted several significant fee adjustments were made to better cover the costs of the recreation programs. In addition, the recreation staff has introduced new
programs along the way. They have eliminated the programs that are not performing well and focused on maintaining the successful programs.
Golf Classes, the Recreation Department has an agreement with the golf course personnel for the golf classes and currently retains 15% of the revenue because city handles registration
and financial tracking. This generates approximately $1,200 in revenue. Discussion about increasing that percentage to 20%. Since the golf course staff are doing most of the operational
work, increasing the recreation share to 20% will only have a minor impact on their budget.
Main Street Mile, after reviewing the races, they are not showing any sponsorship contributions yet. Because those sponsorships have not been billed or recorded yet. Several sponsors
have already
committed for this year. Madison Health has contributed $7,000, and Mountain America has contributed $4,000. In addition, there has been approximately $8,000 in smaller sponsorships.
Based on those numbers, total sponsorship revenue is expected to be around $20,000 to $25,000 this year. Sponsorships are slightly lower than last year because much of their attention
has been focused on the ice rink project. There was some discussion about how Mountain America's contribution is allocated. Roughly 70% to 90% of the sponsorship is applied to the Main
Street Mile, with the remainder supporting other races. It was noted that recent accounting practices have allocated approximately $2,500 to the Main Street Mile, with the remaining
$1,500 distributed among the other race events.
Pickleball Tournaments, city staff indicated that if participation and results do not improve, this may be the final year the city attempts to organize and operate pickleball tournaments.
The budget implications for discontinuing the tournaments were discussed. Eliminating the program would remove approximately $1,200 in projected revenue, which would need to be offset
elsewhere in the budget. After discussion, the group agreed to leave the tournament budget in place for the current fiscal year. If enough participants register, the tournaments will
proceed. If registration remains low, the events will simply be canceled. For Fiscal Year 2027, however, the budget for pickleball tournaments will likely be reduced to zero.
Boys' basketball program, which is one of the department's largest and most successful recreation programs. There was some discussion about whether another fee increase might be appropriate,
although staff noted that fees have been increased recently. Staff also explained that they plan to reduce expenses within the basketball program. For the past three to four years, the
department has provided lunches for staff working the program. Beginning this year, that practice will be discontinued. Instead of purchasing full meals, the department plans to provide
light snacks for staff, which should result in meaningful cost savings.
Discussion then returned to the boys' basketball budget. Since no fee increase is currently planned, the projected revenue for next year was adjusted downward from approximately $41,000
to $38,000. City Staff noted that some modest growth may still occur, but the revised estimate is considered more realistic.
The current registration fee for boys' basketball is approximately $80 per participant.
T-ball program, city staff noted that participation has increased significantly over the past several years. Following substantial fee increases, the program now generates a healthy
financial return. Current projections show approximately $6,400 in net revenue from T-ball.
Girls' basketball, while the program is smaller than boys' basketball and generates less revenue, it still carries substantial operating costs. Staff noted that the same changes being
made to staff meal policies for boys' basketball will also apply to girls' basketball, which should help reduce expenses in that program as well.
Adult Volleyball Program, city staff noted that the program generally operates near the break-even point, generating only a small surplus of approximately $300. A question was raised
about where the volleyball league is currently held. City Staff explained that the program was hosted at the junior high school during the past year. Because the city relies on school
facilities, scheduling is dependent on the school's calendar and facility availability.
Cross-Country Skiing Program, city staff noted that significant changes have been proposed for the upcoming year. The program's financial outlook changed substantially. Rather than
generating approximately $2,200 in profit, the program is expected to produce a modest surplus of about $200. City Staff agreed that the cross-country skiing program is essentially operating
at a break-even level.
Adult Softball Program, city staff noted that participation and revenue continue to show modest growth. The unusual financial results shown in Fiscal Year 2025. Due to the timing of
payments, the department is required to pay for two years' worth of umpire expenses within the same fiscal year. This made expenses appear significantly higher than normal and distorted
the program's profitability.
To avoid this issue in the future, city staff explained that umpire costs will now be billed and budgeted in advance so that expenses align properly with each season. The proposed budget
projects approximately $6,200 in profit for the upcoming year. This is a notable increase from the approximately $4,400 profit generated in Fiscal Year 2024.
Adult Softball, games are played on the Dojo fields and indicated that no major changes are planned for the program at this time.
Madison Baseball Program, city staff reported that the program continues to perform well financially and is projected to generate approximately $8,500 in profit. Finance Officer Nielson
noted that these program-level profits are important because they help cover departmental overhead expenses that are allocated later in the budget. While individual programs may appear
to generate surpluses, those funds contribute toward broader administrative and operational costs across the recreation budget.
Concessions, revenue has increased substantially in recent years and is now included in the program's financial projections. Current estimates show approximately $36,000 in concession
sales, making concessions one of the most significant revenue sources associated with the baseball program. This additional revenue has helped strengthen the program's overall financial
performance and contributed to the projected profit.
Carousel, historically, the carousel has generated a healthy profit. However, next year's budget reflects a significantly smaller surplus because approximately $12,000 has been added
for a potential sidewalk improvement project. City Staff explained that the main entrance to the carousel building currently opens directly onto a grassy area without a dedicated sidewalk
connection. This has been a concern for several years, and the proposed project would construct a sidewalk connecting the entrance to the existing pedestrian pathways.
Teton Dam Marathon, city staff, noted that the event has experienced significant growth over the past several years. Current projections estimate approximately $66,000 in registration
fee revenue for the current year, which is slightly higher than the previous year's total. For the following fiscal year, revenue is projected to increase further to approximately $69,000,
reflecting continued growth in participation.
Discussion then shifted to sponsorship revenue for the Teton Dam Marathon. Based on updated information provided, it was determined that sponsorship projections for the current year
should likely be reduced from approximately $15,000 to $12,000. City Staff explained that less time had been available to focus on sponsor recruitment because attention had been directed
toward other projects. A significant accounting change within the program budget. A new allocation rate of 25% had been applied, meaning that 25% of the Race Directors wages and benefits
would now be charged directly to the Teton Dam Marathon program. As a result, personnel and benefit expenses shown in the budget increased substantially, reflecting a more accurate allocation
of staff time devoted to the event.
Discussion continued regarding the Teton Dam Marathon budget and noted that supply expenses have been increased slightly to account for the event's continued growth. As participation
increases, additional supplies are required to support runners, volunteers, and event operations. The hired services budget has been increased for the upcoming year because of transportation
challenges. In previous years, the school district had provided buses and drivers to assist with transporting runners and volunteers. However, the school district indicated that it would
not be able to provide that support this year.
Discussion returned to the financial performance of the Teton Dam Marathon. City Staff noted that, in previous years, the event generated a substantial profit. However, after allocating
a portion of staff wages, benefits, and increased operating costs directly to the program, the marathon now appears much closer to a break-even point and may even show a small loss in
some years. These accounting changes more accurately reflect the true cost of operating the event. As a result, they suggested a modest registration fee increase may need to be considered
in the future to offset the additional expenses. City Staff emphasized that participants who register early continue to receive a very competitive rate, while those who wait until the
final registration period pay a modest premium. This pricing structure has helped encourage earlier sign-ups, and the event had already surpassed 1,000 registrations at the time of the
meeting.
Foamy 5K, which continues to generate a positive financial return. The Zone program is no longer being operated.
Winter Sports Park, the program has historically required a subsidy from the city and has not generated enough revenue to cover its direct costs. In Fiscal Year 2024, the program required
approximately $18,000 in subsidy. In Fiscal Year 2025, the subsidy decreased to approximately $9,000. During the most recent year, the program was not operated, resulting in an estimated
subsidy of about $3,700. The proposed budget for next year projects a subsidy of approximately $2,400. The current figures could underestimate actual staffing costs and suggested increasing
the part-time wage allocation from $5,000 to approximately $7,500 to provide a more realistic estimate.
Disc golf tournament, despite extremely windy conditions, the event was considered very successful, and participants expressed strong interest in returning for future tournaments. Tournament
entry fees have been kept low this year and believe there is room to increase fees modestly in future years.
Approximately $3,000 was spent on portable disc golf baskets and other equipment needed to establish the program.
Speedy Spud Race is projected to generate a modest profit. Event organizers expressed optimism that the race will perform even better this year than it has in previous years.
Zombie Race, one of the department's newer events. City Staff reported a $3,000 sponsorship commitment from Noble Jewelers to support the Speedy Spud and Zombie Race events. Staff agreed
that the sponsorship revenue would be allocated between the two races, with approximately $1,500 assigned to each event's budget.
Shared Overhead Costs, city staff explained that these expenses include items such as part-time wages, employee benefits, and department-wide advertising and promotional costs. Part-time
wages represent the largest category of shared expenses. Approximately $4,000 has been budgeted for advertising and publishing across all recreation programs. Rather than assigning those
costs directly to individual programs, they are included within the department's shared overhead budget.
Finance Officer Nielson reviewed the Ball Diamonds Budget Report.
Ball Diamonds, the most significant changes in the upcoming year's budget, are related to planned capital improvements and equipment purchases. One major item is the proposed purchase
of a utility vehicle, commonly referred to as a Gator, with an estimated cost of approximately $18,000. Plans for dugout enclosure improvements. Previous estimates had set aside approximately
$40,000 for the
project. However, there is some uncertainty about the final cost. The project would likely come in below $40,000 but preferred to leave some flexibility in the budget until more detailed
estimates were available. After further discussion, the group agreed to reduce the allocation from $40,000 to $30,000.
Discussion regarding the trash receptacle system, it has been ordered and installed. Since the equipment is already in use, they agreed it would be prudent to leave the $8,000 budget
allocation in place until the payment status could be verified.
Finance Officer Nielson reviewed the Parks Operation Budget Report.
Federal Grant, of approximately $303,000 included in next year's budget for the Porter Park conversion project.
Discussion regarding the building sold to the Parks Department for approximately $45,500. The facility is now used for house building maintenance operations, including workspace for
maintenance staff. The current budgeted asset sale revenue of approximately $18,000 reflects anticipated sales of other equipment or surplus assets rather than the building transaction.
Park Shelter Reservation, revenue is projected at approximately $16,000 annually. Ball diamond preparation fees were also discussed, with projected revenue of approximately $15,000.
Salaries, the department currently includes four full-time employees, along with a portion of the Recreation Director’s salary that is allocated to parks operations. Combined, those
personnel costs account for approximately $250,000 in wages. Overtime expenses remain relatively modest, with approximately $6,400 budgeted. Part-time wages continue to be one of the
department's largest expense categories. Staff reviewed recent spending trends, noting that approximately $224,000 was spent on part-time labor in Fiscal Year 2024. Spending declined
to roughly $198,000 the following year. The current year’s budget includes approximately $225,000, while the proposed budget for next year increases that amount to approximately $250,000.
The increase is largely driven by the addition of new parks facilities. Teton River Park is expected to become fully operational and will require ongoing maintenance. In addition, Steiner
Park is anticipated to come online in the future, further expanding maintenance responsibilities.
Supplies, budgeted in the mid-$20,000 range. Fertilizer expenses, one of the largest supply costs in the parks budget. Approximately $60,000 has been budgeted for fertilizer. Staff
noted that actual annual expenditures can vary because fertilizer is often purchased in large quantities. Some years end with significant inventory remaining, while other years require
additional purchases.
Fuel and oil expenses were also reviewed. A modest increase had been built into the budget for those costs.
Travel and training expenses are budgeted at approximately $10,800. Utilities, including heat, electricity, and other services, are projected at approximately $22,500. Building repairs
were also reviewed. Staff noted that annual expenditures for maintaining park shelters, restrooms, and other structures typically average around $17,000. Another significant expense
category is Equipment Repairs. Approximately $35,000 has been budgeted for equipment repairs, and staff emphasized that this figure represents parts and materials only and does not include
labor costs.
Irrigation repairs, which are budgeted at approximately $18,000 annually. One of the largest budget categories in Parks Operations: overhead shop expenses.
Overhead Shop Services, approximately $80,000, is allocated. These expenses represent the labor and support provided by shop crew. When parks staff encounter mechanical issues or equipment
failures that require specialized repair work, those items are typically sent to the shop for service.
Discussion then moved to planned equipment purchases for Parks Operations. The proposed budget includes approximately $33,000 for the purchase of two lawn mowers. These replacements
are part of the department's ongoing equipment maintenance and replacement schedule. In addition to the lawn mowers, staff are also searching for a used dump truck.
Discussion regarding the capital improvement and equipment replacement items within the Parks Operations budget. The largest expenditure in the upcoming budget is approximately $610,000
associated with the Porter Park irrigation conversion project. Parks staff have requested the replacement of an older Kubota tractor. The existing tractor does not have an enclosed cab
and has experienced several mechanical issues over the years, particularly with steering and reliability. Approximately $70,000 has been budgeted for the replacement.
Finance Officer Nielson reviewed the Parks Impact Fee Fund 38 Budget Report.
Discussion regarding several major park development projects. This fund is used to track projects primarily financed through park impact fees and urban renewal funding. Rather than
placing these projects within the general construction budget, they are maintained separately because of their unique funding sources. Park impact fee revenue has remained strong over
the past several years. Collections have exceeded expectations in multiple years, and projections indicate another strong year ahead. Additionally, preliminary results from the city's
impact fee study suggest that park impact fees may increase in the future.
Discussion then turned to Urban Renewal funding. Urban Renewal is providing substantial financial support for major park projects. During the current fiscal year, approximately $1.225
million is projected to come from urban renewal sources. A large portion of that funding is being directed toward Teton River Park. In addition, approximately $325,000 has been allocated
toward the Steiner Park project. Of that amount, approximately $200,000 will be used for land acquisition, while the remaining funding is intended to support infrastructure improvements,
including a pump station.
Finance Officer Nielson noted looking ahead, the budget anticipates approximately $650,000 in additional urban renewal funding next year for Steiner Park. Those funds are expected to
be used to complete improvements on the initial five-acre park area and construct a bridge crossing the canal at the rear of the property.
Discussion regarding the overall financial position of the Parks Impact Fee Fund. The fund began Fiscal Year 2026 with approximately $871,000 in accumulated reserves. However, after
accounting for planned project expenditures, the forecast shows the fund ending with a deficit position of approximately $465,000. The result of intentionally accelerating major capital
projects rather than a revenue shortfall. The largest factor is Teton River Park, where projected expenditures total approximately $2.4 million. According to the construction contract,
Teton River Park is expected to be substantially completed by September. City Staff indicated that the contractor is currently scheduled to deliver the project to the city during the
current fiscal year, assuming construction remains on schedule.
Finance Officer Nielson reviewed the Trails Fund 39 Budget Report.
Finance Officer Nieslon explained that trail projects are funded through three primary sources. The first is a modest annual contribution from the General Fund, which is currently projected
at approximately $5,000 per year. The second source is a recurring $30,000 annual transfer from the Parks Impact Fee Fund. The third and most significant source is federal grant funding.
Most trail projects currently under consideration are heavily supported by federal grants, with grant programs covering approximately 94 percent of project costs. While this substantially
reduces the city's direct financial contribution, he noted that federally funded projects often involve significant design, engineering, environmental review, and compliance requirements.
As a result, trail projects can become more expensive than similar locally funded projects because of the extensive planning and documentation required under federal grant programs.
Discussion regarding the financial position of the Trails Fund. The fund began Fiscal Year 2026 with approximately $321,600 in available reserves. Based on current projections, the
fund is expected to end the year with a balance of approximately $318,000, assuming that planned projects move forward as anticipated. Another trail project that is more likely to move
forward in the near term. Approximately $50,000 has been budgeted for a trail segment associated with the Steiner Park development.
Finance Officer Nielson reviewed the Parks Construction Fund 41 Budget Report.
Finance Officer Nielson explained that the fund began Fiscal Year 2026 with approximately $265,000 in available reserves. One of the primary expenditures from the fund this year is
the Smith Park pickleball court conversion project.
Discussion regarding the long-term financial outlook for the Parks Construction Fund. City Staff explained that they are proposing only a minimal General Fund contribution next year,
approximately $5,000, rather than the substantially larger transfers that have been made in previous years. Under the current projection, the fund would carry forward a balance of roughly
$113,000 into the following year. The goal is to preserve those funds and allow reserves to gradually build over time. The reasoning behind this approach is to create flexibility for
future capital projects, particularly playground improvements or replacements. Historically, the General Fund often contributed around $100,000 annually to the Parks Construction Fund.
However, current budget pressures require the city to reduce those transfers.
Adjournment
APPROVED:
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Jerry Merrill, Mayor
Attest:
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Marianna Gonzalez, City Deputy Clerk