(Pocatello for Accountable Government Entities, June 19, 2023)
The City of Pocatello’s press release [announcing the addition of a second daily flight to Salt Lake City] intentionally and nontransparently excludes the fact that the City of Pocatello taxpayers will be footing the bill for a subsidy if costs exceed revenue for an estimated (up-to) $1.5M – $1.7M minimum revenue guarantee (MRG) for FY24.
Taxpayers have previously paid $800K for the 2022 MRG and another $1.01M was approved for use in calendar year 2023. Through the 1st quarter (calendar 2023 -Jan, Feb, Mar), a $346,459 subsidy was expended for the MRG, leaving $663,541 in allocated funding remaining for April -Dec. These are larger planes with more seats (40% more) to subsidize.
Keep a close eye on the budget cycle – the FY24 budget building thus far includes approved (not yet final) 11.4% salary increases for the Mayor and Council + built-in 2% increases for at least 3 more years, 12 new FT positions, along other expense increases. And, it is being built (not yet final) with the maximum statutory allowed 3% “tax ask” increase plus another 1% in foregone.
