Rexburg staff release tentative budget trimming spending, schedule July 17 public hearing

Rexburg City staff presented a tentative fiscal plan that narrows department spending requests to keep the general‑fund reserve within policy and to preserve capacity for major capital projects. At a council briefing, staff said the proposed budget includes a total capital/operating program referenced at about $45,000,000 and a year‑over‑year increase of roughly $3,460,000, with much of the growth attributable to personnel added in recent years.

The package keeps the general‑fund contingency at $175,000 and assumes a carryover of about $1,000,000 to balance revenue and expenses. Streets is a large line item in the plan — staff showed approximately $11,444,000 in streets revenue, much of it carryover and federal grants earmarked for specific projects. Major street work enumerated by staff included Birch Avenue and intersection work at 2nd West and 2nd South.

Wastewater and sewer work are also prominent. Staff said the budget includes nearly $7,000,000 for a new lift station at Riverside Park and a regional trunk line to serve Teton, Sugar City and Rexburg; the city expects a grant of about $3,600,000 on the trunk‑line project and estimated Rexburg’s net share on that project at under $1,000,000.

On staffing, the tentative plan retains three requested full‑time positions (building/plumbing inspector, street operator and one police patrol position), though staff recommended approving only one of two requested police positions and converting two part‑time police positions to a single full‑time role. Staff said some positions (notably a plumbing inspector) are expected to largely pay for themselves through fees.

Utilities and user fees were discussed: staff proposed a residential water increase with base fees up about 2.5% and volume increases around 3.7%; sewer rate changes are modest in the plan. Sanitation policy changes shift recycling and tipping costs more directly to residential customers; staff reported recycling tipping costs of about $261,000 and outlined a phased approach to rate changes so residents can weigh options.

Several cultural and recreation projects remain in the plan but with reduced city funding. The Romance Theater HVAC and minor fixture work is budgeted (roughly $350,000 for HVAC and $50–$55,000 for fixtures). The city will defer the $1.2 million Tabernacle remodel unless matching contributions are raised. Staff proposed pausing or downsizing a previously budgeted pickleball complex and asked council to allow staff to pursue additional pricing options including asphalt court alternatives.

On airport and FAA‑eligible work, staff noted a potential state earmark for airport relocation and said typical FAA‑eligible projects are budgeted with large federal and state reimbursement assumptions (staff used a 90% federal / 2.5% state reimbursement heuristic on FAA work).

Procedurally, staff asked the council for authorization to publish required notices and to schedule the formal public hearing on the tentative budget for July 17 at 6:30 p.m. Staff also asked for permission to publish a notice to hold $65,000 of foregone revenue to cover an additional police patrol position in the FY25 budget; council members indicated assent in the briefing but no roll‑call vote was recorded in the transcript.

Next steps: staff will publish the tentative budget and the notices as requested, finalize minor insurance and phone/AV cost updates that could slightly change totals, and bring the matter to a subsequent council meeting for a formal tentative‑budget hearing and any vote required to hold the foregone funds.