HomeMy WebLinkAbout1982.11.17 CITY COUNCIL MINUTES~1
MINUTES OF SPECIAL WORK MEETING FOR
CITY COUNCIL
November 17, 1982
State of Idaho)
County of Madison(
City of Rexburg)
A special work meeting for the City Council, held at 7:30 P.M., November 17, 19$2.
Those Present:
Mayor: John C. Porter
Councilman: Jim Morris
Glen Pond
Sander Larson
Nile Boyle
Morgan Garner
Councilwoman: Darlene Blackburn
Mayor Porter handed to the council members a projected budget deficit. He had heard
both pro and con on the franchise. He explained that we had taken the money from
TEDRO for construction and used it to balance the budget, $111,500. We did that
because we thought we would be getting money back from the franchise tax. It was
projected an inflation on next fiscal year. budget that are dependant on property
taxes $979,700 @ 5% which increases it $48,985. We can get an .additional $14,430
from the property tax at 5%. In order to balance the budget and pay. this back we
need $146,055 for next year, and if we need to repair the streets that is another
$100,000. He said we could cut back but not that much. The fireman can't be cut,
street department don't have as many people as they did before the flood, we haven't
hired anyone to replace Lou. The water department has only 3 men working and they use
to have five, sanitation department .has two more than before the flood because we
have more garbage to pick up, the police department is the largest department, before
the flood they had a total of 16 people, they now have a total of 19 people. We would
have to go back on police employees even before the flood.
The mayor said he had called up the Idaho Power Company, they told him they would
not have any problem with us having a frachise tax. They said he thought it should
be what they call a voluntary, meaning it should show on the statement that the
franchise tax is so much, and people should know that it is .going to the city. The
PUC will approve it. Mary Smith called up the attorney for Utah Power & Light, he
said they had no intention of bringing any legal action against the city, if we
passed a franchise tax and he said it would have to appear on the bill that it was
a city tax. He suggested that we make it a fluctuating tax, havin~ a certain height
and provide that it can be diminished or raised up to that amount at any time by
just letting the power company know. They would not make any collection charge.
Mayor Porter said we have two franchise taxes in Rexburg already, one is on Natural
Gas for 3% and 3% franchise tax on Cable TV. We need to consider that we had an
Override and over 65% of the people okayed that. The franchise would have a good
tax base because if we annex a housing division into the city they would immediately
start paying the franchise tax, new homes or shopping malls, as soon as they started
using power they would pay the franchise tax. With the amount of services that we
would have to provide we would immediately start getting some money back. The mayor
said he would propose that the funds be dedicated for street repair and rebuilding
streets, snow removal, street lighting, for fire and police department capital
improvement. This would give the people in Rexburg a certain amount of property tax
relief. It would cost if your light bill was $100 per month it would cost you $1.00
for every per .cent. The mayor said there is $170,000 we owe the TEDRO if we have
a sewer project.
Mayor Porter said most ,people are concerned about how long of a franchise we give
Utah Power & Light. When he had talked to Idaho Power they ask him what the rate
was he had told them it was 8~ a kil. for commercial which. is twice what Idaho
Power is. The mayor had told them to come over and take over and they had told him
to make them a deal. He had told the Mayor that there would still have to be a franchise
even if they came and bought them out.
Morgan Garner said he would be in favor of making the franchise for 10 years.
Jim Morris said he thought we should try to get them not to charge a demand charge
on meters, just consumption.
MINUTES OF THE CITY COUNCIL MEETING
November 17, 1982
State of Idaho)
County of Madison(
City of Rexburg)
A meeting of the City Council for the City of Rexburg, Madison County, held
November 17, 1982, at the City Hall.
Those Present:
Mayor John C. Porter
Councilman: Jim Morris
Glen Pond
Sander Larson
Nile Boyle
Morgan Garner
Councilwoman: Darlene Blackburn
RE: MINUTES
A motion was made by Darlene Blackburn and seconded by Nile Boyle to approve
the minutes. All Aye.
RE: DISCONTINUING GARBAGE SERVICE AT MIKE SIGLIN'S STORE
Mike Siglin was at the meeting to request discontinuing the garbage service at his
store, because he has paper which he could put in bags and take home to put with his
garbage. He said he felt that the garbage rates were outrageous. Mayor Porter said
we have an ordinance that garbage is manditory. If we start letting one person not have
garbage service soon everyone would not want to pay for the service. Before we had this
ordinance three or four people were putting their garbage in their neighbors cans
and paying for the one service. The mayor said .there is probably several in town that
don't have much garbage. He told Mr. Siglin in comparison, J.C. Penneys has more
garbage and they pay about $100 per month. The mayor said they would have a committee
meeting and discuss it and see if we could come to a solution. The lowest fee for
business in the city is $11.00.
RE: REID PARKINSON'S TRAILOR HOUSE
Reid Parkinson was at the meeting to talk-about his trailor house that he has on his
mother's property. He received a letter telling him he would have to move his trailor.
His mother is 83 years old, and it would be inconvient for him to move his trailor.
He had not met with the committee. She can't drive at night and relies on him to
drive her around at night. He said he was 60 years old. Morgan Garner said he would
bring it up with his committee and let him know.
RE: AGREED TO PAY CROSSING GUARDS
Mayor Porter said he had met with the County Commissioners and they had agreed to pay
$1,250 on the crossing guards.
RE: LETTER FROM BLAIR MANWARING
Mayor Porter said he had a letter from Blair Manwaring, concerning his trailer, the
committee has given him until July 1 to move his trailer. He wants to know if he
would be able to build an .office and shop where the trailer is. The council felt this
would be okay if it met with the building code. Mayor Porter said he would write him
a letter.
E: PROBLEMS WITH PEOPLE OPENING FIRE HYDRANTS
The mayor said we have had some problems in the last month or so with people opening
fire hydrants to fill water trucks. If they will go over to the fire department they
will fill them over there and charge them $5.00 for 1000 gallons. Some .people have a
big pipe wrench and they open the fire hydrant and fill up their tank and leave. The
problem we have with that is in most cases they don't open the fire hydrant clear up,
they partially open it and the pressure ruins the valve. The mayor said if we find
anyone doing it anymore there will be a warrant issued.
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RE: FRANCHISE TAX
The franchise tax was discussed.. Mayor Porter said he had contacted Idaho Power
and they said it did not make any difference to them. Mary Smith had contacted
Utah Power & Light's attorney and he said they are agreeable to a franchise tax.
He suggested if we could come to an agreement tonight and then have a special meeting
and have a special reading of the ordinance and get the thing underway.
RE: STEVE MOSER PROTEST GRANTING OF FRANCHISE TAX
Steve Moser was at the meeting, he said he was not at the meeting to talk about the
franchise tax but was at the meeting to protest the granting of the renewal of
the franchise for 50 years with Utah Power & Light and. wondered if a study could
be done of the feasibility of another utility taking over providing the power for
Rexburg.
RE: JOHN DUNCKLEY ASKED TO GET ANOTHER POWER COMPANY
John Dunckley, he asked the council if they would consider getting another Power
Company to come in Rexburg. Utah Power & Light are always raising the rates.
RE: ANOTHER POWER COMPANY WOULD NEED TO BUY FRANCHISE
Mayor Porter .said even if the franchise is given to Utah Power & Light and another
company wants to come in and buy them out they would need a franchise, and it
would be included in the buy. He said in talking to Idaho Power .Company he
asked them if they wanted to come over and they said make them a proposition. The
city is aware that the Utah Power & Light power charges are the highest in Idaho.
There is no way the city could bond or get any money to buy their facilities out
and put in their own system, we don't have the bonding capacity.
RE: BOB SMITH WAS AT MEETING
Bob Smith was at the meeting to observe. Several businesses are concerned about
the Franchise Tax.
RE: FRANCHISE IS JUST TAX
Mayor Porter said he felt that the Franchise Tax is a very just tax. Everyone that
uses power will pay the tax and the power company will not get any of that
money they will collect it and turn it over to the city. If the franchise is
1% and your light bill is $100 you will pay $1.00. If there is a new family
or a new home in Rexburg they will immediately .start paying for the services, or
if a new area is annexed to the city they will immediately start paying the franchise
tax. It used to be that when new property came into the city the next year
they would be on the tax roll and they would be helping, now the Legislature
has frozen the $1.00 amount that you raise, so when there is new property that
comes into the city to get on the tax roll, the city does not get anymore money,
to provide the increased services with no increased revenue except for. charges
for water, anct sewer, and garbage. We had an override. election and it did not pass,
652% voted for it and said they would pay the additional money if they got the
additional services. We are in a difficult situation, the city has grown with about
2500 more people since the flood and yet the money we receive from the property
tax we only get 9%, and .with the inflationary problem we have had we have run
out of money. We feel that this is an opportunity to get some extra money to help
run the city. The Intermountain Gas and Cable TV have a 3% Franchise Tax. The
cities are controlled by the State Legislature on many things they do, the city
can't pass a revenue bond to put in our own power system.
RE: MOTION BY NILE BOYLE
A motion was made by Nile Boyle to authorize Mary Smith to proceed to draw up the
ordinances necessary for the franchise, seconded by Morgan Garner. All Aye.
RE: SPECIAL MEETING TO BE HELD
A special meeting will be held to pass the ordinance and a special hearing will
be held within 30 days. A special meeting for reading ordinance on Franchise to
be held on November 29.
RE: TRY TO GET COMPROMISE
Jim Morris suggested that when drawing up the franchise we ary to get a compromise
on the demands and some of the other things, this could make a difference on
the per cent of franchise we will ask for.
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STATE OF IDAHO
REXBURG, IDAHO 83440
PR03F,CTED I3iJDGnT DEFIC l T. S
Transfer needed to balance budget this year (1982-83) $111 500
Some amount needed for next fiscal year (1983-84) $111 500
Inflation on next fiscal year budgets (1983-84) that are
dependant or property taxes $979,700 @ 5% $ 48,985
?mess increase in property taxes 288,595 ~ 5% $(14,430)
Amount needed to balance next years budget (1983-84) $146,055
Add amount needed to do necessary street and equipment
repair $100,000
TOTAL needed to balance 1983-84 budget $24b,05S
~4
RE: CHRISTMAS PARTyHELD DECEMBER 10
Mayor Porter told the council that the city employees are going to .have a
Christmas party on December 10 at 3:00 p.m. at the Senior Citizens Center.
RE: CONCERN OF CHILDREN WALKING PAST NEW MEDICAL FACILITIES
Sander Larson said he had had a lot of people contact him about their concern about
the children walking past the new medical facilities on East Main by the old
hospital. Right .now the children cut through the vacant lot, when the building
is built there will be no where to walk except the road. There needs to be a side-
walk. Mayor Porter said he would contact them about it.
RE: APPLICATION FOR BEER LICENSES
Mayor Porter read applications for beer licenses.
RE: MOTION TO APPROVE BEER LICENSE.
Skaggs Drug: A motion was made by Nile Boyle and seconded by Darlene Blackburn to
approve this beer license. All Aye.
RE: MOTION TO APPROVE BEER LICENSE
POD's: A motion was made by Darlene Blackburn and seconded by Jim Morris to approve
a beer license for POD's.
Those Voting Aye:
Abstaining:
RE: LEGISLATIVE MEETING
Nile Boyle
Glen Pond
Darlene Blackburn
Jim Morris
Sander Larson
Morgan Garner
Mayor Porter told the council there would be a legislative meeting December 8, in
Idaho Falls.
RE: MAYOR PORTER READS NOTE
Mayor Porter read a note received by the city with a $10 bill in it. Enclosed is
$10 as a donation to the City General Fund, "Times are tough and every little bit
helps," the note said. It was not signed.
RE: MOTION MADE BY MORGAN GARNER
A motion was made by Morgan Garner and seconded by Sander Larson, to pay the bills.
All Aye.
RE: MOTION MADE BY NILE BOYLE
A motion was made by Nile Boyle and secon by 'm Morris to adjourn. All Aye.
Meeting Adjourned / ~,
May Jo Porter
City Clerk, Rose Ba ley