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HomeMy WebLinkAboutMINUTES Town Board Budget Study Session 2020-10-15RECORD OF PROCEEDINGS Town of Estes Park,Larimer County,Colorado,October 15,2020 Minutes of a Regular meeting of the TOWN BOARD BUDGET STUDY SESSION of the Town of Estes Park,Larimer County,Colorado.Meeting held at Town Hall and Virtually in said Town of Estes Park on the 15th day of October,2020. Board:Mayor Koenig,Trustees Bangs,Cenac,MacAlpine, Martch ink,Webermeier and Younglund Attending:Mayor Koenig,Trustees Cenac,MacAlpine,Martchink, Webermeier and Younglund Also Attending:Town Administrator Machalek,Assistant Town Administrator Damweber,Finance Director Hudson,Directors Fortini, Hinkle,and Hunt,Manager Salerno and Director/Town Clerk Williamson Absent:Trustee Bangs Mayor Koenig called the meeting to order at 1:30 p.m. 2021 BUDGET PRESENTATION Town Administrator Machalek provided an introduction and overview of the current budget status stating the Town has done better than expected during the past 6 months with revenues stronger than budgeted.The Town has not had to dip below the 25% fund balance set by Town policy.The remainder of 2020 and the first half of 2021 are expected to be unpredictable due to the ongoing COVID-19 pandemic.The budget has been built with conservative revenue projections,continuation of the COVID cuts from 2020 to operating budgets,and preserve the fund balances and holding ongoing cost such as merit and market compensation.He confirmed excluding the market compensation would be a break from the Board adopted policy.The projected year end 30%fund balance would be spent on normal operations to assist the Town through the first half of 2021.The staff would continue to review the budget and reallocate funds for unfunded projects in 2021 if revenues come in stronger than budgeted. Finance Director Hudson reviewed the proposed budget stating the budget has been produced with a conservative approach and balancing all funds.The projected ending fund balance has been estimated at 30.3%.Numerous strategic plan objectives have not been funded due to ongoing revenue limitations predicted in 2021 with the ongoing impacts of the COVID pandemic.2021 projected sales tax revenues have been budgeted at 12.6%less 2019 actuals.He stated the total revenues were conservatively estimated at $53 million with expenses estimated at $58 million.The budget was prepared with no new General fund positions,no market or merit increases,limited personnel cost increases,limited program changes,limited repairs and maintenance and limited capital projects.Ongoing revenues are estimated at $16.9 million and ongoing expenditures of $18.5 million,which equates to a $1.585 million deficit for ongoing revenues.As the Town sees the sales tax receipts the Town Administrator may identify items that can be added throughout the 2021 fiscal year.The Utility fund transfers are now based on a fixed amount to be transferred each year with fixed amounts to be set during the budget process annually.The intent would be to slowly and methodically reduce the Power and Communication transfer with a target of approximately 7-8%of revenues and Water of approximately 2-3%of revenues.The proposed budget contains a 10%for Power and Communication and 2.5%for Water. COMMUNITY IMPROVEMENT PLAN 2021 —2025 The Community Improvement Plan (CIP)was developed by the departments submitting projects,the Town Board completing and setting a Strategic Plan,development of operating budget,project prioritization,and the final adoption of the CIP by the Town Board through the adoption of the budget at the November 24,2020.The CIP annual RECORD OF PROCEEDINGS Town Board Budget Study Session —October 75,2020—Page 2 summary for 2021 has been presented with $5.329 million in projects and a total of $14.782 million over the next five years. The Board discussed the current fund balance policy which established a General fund balance of 25%.The Board stated the importance of maintaining Town infrastructure and the need to assess the fund balance percentage.Staff would schedule a discussion on the topic during the third quarter of 2021 to review the fund balance policy. GENERAL FUND. Director Hudson reviewed the General Government funds,including Legislative,Town Attorney,Judicial,Town Administrator’s Office,Town Clerk’s Office,Finance and Human Resources.2021 revenues include liquor licensing,business licensing,court fines and miscellaneous fees totaling $319,024.Expenses have been budgeted at $2.09 million with 62%from personnel costs.The departments would complete a citizen survey,use Laseriiche for public input gathering,complete Service Elevated staff training,develop philosophy and approach to performance measurement,implement electronic invoice processing through Laserfiche,archival of existing invoices in LaserNche database,implement phase 2 of human resources strategic plan,develop a plan to implement phase I of the recruitment and retention plan,finalize and begin implementation of a process improvement culture initiative,evaluate communication gaps from language translation and identify potential solutions,expand Laserfiche public records portal,evaluate financial system replacement needs,evaluate establishment of a grant-matching fund,and develop a summary of revenue enhancement options.The Town would implement Iockbox operations for utility collections. OUTSIDE ENTITY FUNDING REQUESTS Assistant Town Administrator Damweber presented the 2021 funding for outside entities including base funding and community initiative funding.Event sponsorships, intergovernmental transfers,and food tax refund are included in the fund for a total projected expense of $1.36 million in 2021 with the bulk of the funding to the Fire District with 7%of the Town’s sales tax remitted,excluding the 1A sales tax.The Estes Park Housing Authority increased their funding request due to operational expenses increasing with the recent move out of the Visitor Center.Staff recommended $244,500 in base funding as outlined below. Entity 2020 Funded 2021 Request 2021 Recommendation Crossroads Ministry of EP $32,000 $35,000 $32,000 EP Economic Development Corp $51,500 $51,500 $51 500 EP Housing Authority $30,000 $30,000 $30,000 EP Nonprofit Resource Center $10,000 $20,000 $10,000 Estes valley Crisis Advocates $16,000 $16,000 $16,000 Estes valley Investment in Childhood Success $35,000 $30,000 $30,000 Estes valley Watershed Coalition $1 8,000 $24,000 $18,000 Saud Family Health Centers $22,000 $22,000 $22,000 Via Mobility Services $35,000 $35,000 $35,000 TOTAL $249,500 $263,500 $244,500 The Town received applications for Community Initiative funding and each application was ranked by each Board member and an average funding has been proposed below. Entity 2021 2021 Funded Recommendation Estes Chamber of Commerce EV Business Leadership Program $50,000 $5,929 Shepherd of the Mountains Lutheran Church Community Corner Cafe $1,000 $857 Estes Land Stewardship Association Monitored Weed Drop-off,Roundup,$3,000 $1 ,1 21 Booklet Estes Park Education Foundation Boys &Girls Club Remote Learning $1,000 $677 Center Estes Park Health Foundation COVID &Subsequent Emergency Fund $10,000 $4,929 Estes Valley Library Friends and Foundation Storage at Cliffhanger Used Books $1,500 $500 Habitat for Humanity of Estes Valley Affordable Housing Initiative $5,000 $3,643 Estes Park League of Women Voters Glass Recycling $7,700 $2,593 Larimer County Partners (Partners Mentoring Youth)One-to-One Mentoring $5,000 $3,457 The Estes Park Learning Place Need-based Scholarships $6,000 $4,314 TOTAL $90,200 $28,074 Board discussion was heard on the funding of other taxing districts or foundations associated with taxing districts.The Board requested staff provide additional RECORD OF PROCEEDINGS Town Board Budget Study Session —October 15,2020—Page 3 information on the use of the funds by the Hospital and Library foundations.They further requested staff determine if the Estes Chamber of Commerce would move forward with the Leadership program if they do not receive the full $50,000 funding request. Mayor Koenig called a 10-minute break at 3:19 p.m.and reconvened the meeting at 3:30 p.m. COMMUNITY REINVESTMENT FUND The fund contains the transfer of excess TABOR revenues.The fund includes $29,000 in revenues for 2021,$1.37 million transfer from the General fund.Proposed expenses have been projected at $1 .40 million which includes debt services,operations and maintenance,capital and transfers out.The 2021 Strategic Plan Initiatives resourced the Downtown Wayfinding project at a cost of $59,000. COMMUNITY CENTER FUND The 1A fund has estimated revenues of $713,885 with funds to be transmitted to the Estes Valley Recreation and Park District to fund the Community Center construction. VEHICLE REPLACEMENT FUND The fund accumulates reserves for the systematic replacement of General fund vehicles and equipment.The fund contains 80 units varying replacement costs and depreciation tables between 6 —20 years.The fund would not replace units in 2021.Enterprise vehicles and equipment were pulled from the replacement fund in 2019. MUSEUM Director Fortini reviewed the proposed budget stating revenues would decrease and expenses increasing with the addition of $15,000 for capital.Mayor Koenig commented on a letter issued by the Museum Foundation in 2018 requesting support and funding for the completion of oral histories for the Estes Park community.She stated concern with the lose of our community members and the need to capture the history.After further discussion,Board consensus was to direct staff to schedule a study session to discuss the project further and possible funding in 2022. INFORMATION TECHNOLOGY Assistant Town Administrator Damweber stated the internal service fund charges each department a fee for services provided per unit owned by the department.The revenues for service in 2021 are projected at $955,751 with expenses of $943,698. RISK MANAGEMENT The fund established in 2019 accumulates funds to pay for property and liability coverages,including building a reserve to cover unanticipated claims and deductibles. The fund includes the estimated CIRSA renewal premiums and $30,000 for small claims and deductibles for a total of $348,827 in 2021. COMMUNITY SERVICES Visitor Services:Manager Salerno presented the 2021 budget stating revenues are estimated to return to 2019 levels with expenses increasing with the addition of $55,000 in capital improvements to the Visitor Center. Events:The division has budgeted expenses at $2.149 million and revenues of $648,000.In 2021,the division anticipates restoring events which were not able to occur due to COVID-19 in 2020.A number of items cut in 2020 have been restored to support the restoration of events.The division would work with the Chamber of Commerce,Economic Development Corporation and other relevant organizations to educated local businesses on how to leverage events to stimulate business,evaluate opportunities to expand mid-week events,and develop and implement system of gathering and utilizing guest data.A Board discussion ensued on the increase in expenses budgeted over 2019 and the need to understand the O&M cost.Staff would provide more detail on the expenses for O&M.Further discussion was heard on the fact RECORD OF PROCEEDINGS Town Board Budget Study Session —October 15,2020—Page 4 the event revenues do not come closer to the expenses for the division.Staff would develop a method to establish economic income numbers to demonstrate the impact events have on the overall economy. COMMUNITY DEVELOPMENT Planning:Director Hunt reviewed the budget stating revenues decrease with vacation home registration revenue shifting to the Town Clerk’s office with the full registration process completed in the office and code enforcement moving to the Police department. The budget also removes County planning application revenues and revenue the County paid the Town through the Intergovernmental Agreement (IGA)to conduct planning services for county properties.The expenses increase in 2021 with the anticipation of filling vacant positions and funding to begin work on the Comprehensive Plan.Staff would evaluate and improve the Development Review process,implement the Downtown Plan,incentivize downtown housing,prioritize Estes Park Development Code amendments that impact housing and seek funding for environmental design and planning for wildfire mitigation and strategy. Building:Director Hunt stated the Town would continue to contract with SafeBuilt to provide building safety services,including staffing,processing plans and permits,and inspections.The Town would maintain oversight,administration and enforcement for building related issues.Revenues are projected to decrease in 2021 with expenses remaining flat.Staff would work to modify codes and regulations to support alternative and distributed energy. The next Budget Study Session is scheduled October 22,2020 1:30 p.m. There being no further business,Mayor Koenig adjourned the meeting at 4:57 p.m.