Pocatello holds public hearings on FY2026 fees, foregone levy and budget; council schedules final votes for Aug. 21

City staff opened three connected public hearings on proposed fiscal year 2026 fee changes, use of foregone tax authority and the FY2026 budget, outlining the administration’s recommendations and inviting public comment.

Anne Nichols, chief of staff for the City of Pocatello, told council the fee changes were intended to recover program costs and better align fees with comparable permits and services. Departments proposing changes included airport, alcohol licenses, business licenses, cemetery, childcare licensing, construction trades, engineering review, fire, geographic information systems, library, parks and recreation, planning and development, public records requests, sanitation and water services. Nichols said some changes would move fees from the municipal code to the annual fee resolution and that the final vote on fee changes would be on Aug. 21.

Nichols also presented the foregone tax hearing. She said Idaho Code 63-802 allows cities to levy a previously authorized but unused “foregone” dollar amount and that Pocatello’s available foregone balance was $5,423,454. The city had earlier considered using the maximum allowable foregone of $359,614 but, after accounting for an Avista Electric rate-judgment recoupment of $101,044 and final revenue numbers from Bannock County, recommended reducing the foregone request to $19,728 to avoid a “double ask” of taxpayers. Nichols said any foregone dollars not levied would remain available for future years and that the council would vote on the foregone request on Aug. 21.

On the broader FY2026 budget, Nichols said projected city expenditures total $161,827,149 and projected revenues $151,245,309, producing planned reserve use of $10,581,840. She said the city’s recommended tax ask is $35,865,971 and that general fund reserve use was reduced from $853,504 to $611,140 after updated revenue figures and recouping the Avista judgment. Nichols said the Planning and Work Session decisions from July 10 remain reflected in the draft and that the final budget vote is set for Aug. 21.

Council members asked technical questions about particular fees and line items. Mallory Bascom of Pocatello Police licensing explained why the city reduced one business licensing fee to align it with similar background- and inspection-requiring licenses. Richard Bigelow, identified as a building official, clarified that “hydronic” systems described in the mechanical permit schedule refer to in-floor hot-water (radiant) heating.

Public comment at the hearings included residents who opposed the proposed budget and foregone use. Heather Dislequin said she had not seen a document associated with the foregone agenda item and asked whether the Avista judgment recovery would replace part of the foregone ask. Anne Nichols responded that the city was reducing the foregone request and would recoup the Avista amount this year.

Several speakers urged the council against using reserves to balance the budget and questioned the city’s use of enterprise interest revenue and interfund fee allocations. One commenter argued that certain interfund charges resembled fees the city had previously faced legal challenges over, and asked whether the attorney general had provided an opinion supporting current practices. Other public commenters raised broader objections to local taxation levels, use of city funds for noncore services, and the timing and notice for public materials.

No final votes occurred during these hearings. Nichols and the mayor reminded the public that council will take final votes on fee changes, the use of foregone amounts and adoption of the FY2026 budget at the Aug. 21 council meeting.

Ending: The hearings provided council with public input and clarifications from staff; the council will consider final motions and roll-call votes at its next regular meeting on Aug. 21.