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HomeMy WebLinkAboutPACKET Town Board Budget Study Session 2009-07-24TOWNBOARDPRE-BUDGETSTUDYSESSIONFriday,July24,20099:00a.m.—12:00p.m.Rooms202/2031.BudgetPolicyandFlowChart2.Five-YearOutlooka.FinanceOfficerSteveMcFarland3.2009YeartoDateReview/2009Forecast4.2010PolicyGuidancea.ImprovementProjectPrioritiesFinancingOptionsb.TargetFundBalancesc.CommunityServicesGrantsd.EmployeeCompensationandBenefits5.PotentialRevenueSourcesa.SalesTaxIncreaseb.StormWaterandStreetUtilityc.CVBFunds6.Miscellaneous CynthiaDeatsFrom:EPAdministration[ir3045©estes.orgJSent:Wednesday,July22,20099:07AMTo:CynthiaDeatsSubject:JobDoneNotice(Send)********************************JobDoneNotice(Send)JOBNO.1741ST.TIME07/2209:00PGS.1SENDDOCUMENTNAMETX/RXINCOMPLETETRANSACTIONOK6672527GregWhite5869561KEPL5869532TrailGazette5261691Channel86353677ReporterHerald2247899Coloradoan5771590EPNewsERROR1 •JULY.GinualPlanning/BudgetProcessStaBucigetFIovvChartJuly20097114:FinanceClosesBookson1stHalfofYear15-yearCIPUpdate(Finance)e/GoalSWorkSessionsPrioritizeGoalsCapitalProJects7130:DueDatefCurrentwithBoard&StaffDepartmentHe(#ofsessionsasjointlydetennined)(Board&Staff)AUGUST8(12:DueDateforNextYearRevisions18121:CurrenVNextYearBudgetsDuetoTA.SEPTEMBER9111:FinalRevisionsDue119(16:FinalRevisionsDueBudgetPreparationbyDepartment9I31-914:BudgetReviewsFinance&StaffDepadmentHeadswithDept.HeadsfromDept.Heads[toT.A.__________________________________________________9125:PublishSessioninNewspaperFJ124:FinalRevisionsDuetoTownBoardOCTOBER10/2:JointBoard&StaffBudgetWorkSession—H1019:JointBoard&Staff110/16:JointBoard&StaffI110123:JointBoard&StaffBudgetWorkSession]]BudgetWorkSession[BudgetWorkSessionNOVEMBER___________________________________________________________1BudgetPublicHearing#1BudgetPublicHearing#2Budget&GoalsApprovedbyBoardFinancialTrackingProcesswillbeaseparateflowchartDECEMBERSupplementalAppropriationtoCurrentBudget(ifapplicable)EEBRUARYoverofApplicabletoNewBudgetYear June19,2009BUDGETPROCESSTheTownofEstesParkproducesaone-yearbudgetannually.CALENDARJulyThebudgetprocessbeginsinJulywhentheFinanceDepartmentclosesthebooksonJune,thusmakingavailablethefirstsixmonthsofthecalendaryeartothosewhohavebudgetaryresponsibilityforprojectingrevenuesandexpenditures.Concurrentlywithdistributingthefinancialreportstoappropriateparties,theFinanceDepartmentupdatestheCapitalImprovementPlan(CIP).ThepurposeoftheCIPisto1)projectactivitiesintheGeneralFundforthenext5years(includingtheeffectonfundbalance),andto2)projectwhatmonieswillbeavailablefortheCommunityReinvestmentFund(acapitalprojectsfund).DuringthesecondhalfofJuly,aStrategy/GoalSettingWorkSession(s)isconvenedwithTownBoardandappropriateStaff.TownBoardprioritizesitsgoalswithassociatedimprovementprojectsfortheupcomingbudgetyear.Staffthentakestheresultinggoals/projectsandassimilatesthemintothebudget.Thebudgetprocessitselfistwofold.Staffisresponsibleforupdating/revisingthecurrentyear’sbudget(duetoFinanceOfficebyJuly31)andforprojectingthenextyear’sbudget.AugustRequestsforthenextyear’sbudgetareduetotheFinanceDepartmentbytheendofthesecondweekofAugust.TheFinanceDepartmentpresentstherevisedcurrentyear,andnextyear’sbudget,totheTownAdministratorapproximately10daysafterreceivingthebudgetproductsfromparticipatingdepartments(seeprecedingparagraph).TheTownAdministratorspendsapproximatelyaweekfamiliarizinghim/herselfwiththebudgetproductinpreparationforbudgetdiscussionswithappropriatestaffmembersinSeptember.1 SeptemberIndividualmeetingsareheldwithappropriatestaffmembers(attendedbytheTownAdministratorandhis/herdesignee(s))duringthefirstweekofSeptember.Atthemeetings,appropriatestaffexplains/advocatestheirbudgetrequeststotheTownAdministrator.Asaresultoftheabovemeetings,budgetarychangesareoftenenacted.StaffhasuntiltheendofthefollowingweektomakethesechangesandreturnamendedbudgetdocumentstotheFinanceDepartmentforprocessing.TheFinanceDepartmentreturnstheamendedbudgetdocumentstotheTownAdministratorforfinalapprovalwithinthenextfewdays.Aroundthistime,anoticeisplacedinthenewspapernotifyingthepublicthattherearepublicbudgetsessionsduringthemonthofOctober.TheproposedbudgetdocumentsaredeliveredtotheTownBoardnolaterthanthelastFridayofthemonth.OctoberThefirstfourFridaymorningsofOctoberaretraditionallydedicatedtopublicmeetingsregardingtheproposedTownBudget.AppropriatestaffpresentstheirrespectivebudgetstotheTownBoard,explainingdetailsandfieldingquestionstowhateverdepthisdeemednecessarybytheTownBoard.Thesessionsareusuallyarrangedasthematicallyaspossible.Forexample,onesessionhasmostofthepublicworksdepartments/funds,anothersessionhasmostofthepublicsafetydepartments/funds,athirdsessionhasmostoftheadministrativedepartments/funds,etc.BudgetaryinformationisdeliveredtotheBoardapproximatelyoneweekaheadofscheduledsessions.StaffusesavailabletimeinOctobertomakeanynecessaryamendmentstothebudgetsothatafinalproductisreadyforpresentationtothepublicattheNovembermeetings.NovemberThe“final”budgetispresentedatthefirstTownBoardsessioninNovember.Assumingnofurtherchanges,thebudgetisapprovedatthesecondTownBoardmeetinginNovember.Duringtheapprovalprocess,TownBoardactuallyapprovesseveraldocuments,includingtheHighwayUsersTrustFundreport,theResolutiontoadopttheMillLevy,theResolutiontoappropriatesumsofmoneytofinancethebudget,andtheResolutiontoappropriatetheexpendituresthemselves.Concurrently,thetownboardwillalsoapproveitsgoalsforthefollowingyear.2 DecemberAstheyeardrawstoaclose,itusuallybecomesclearastowhetherornotappropriationsneedtobemadetothecurrentyear’sbudget.Appropriationsareoftendonewhenanunexpectedexpenditureismadeduringtheyearthatwillcausethebudgettoexceedthepreviousyear’sappropriation.Theaffectedfundsareitemizedforapproval/disapproval.FebruaryAstheyeardrawstoaclose,italsousuallybecomesclearthatcertaininvoicesneedtobe“rolledover”intothefollowingyear’sbudget.“Rolledover”invoicesaresuggestedbyappropriatestaff,andareultimatelyapproved/disapprovedbytheTownAdministrator.Theapproved“rollovers”comeoutofthecurrentfiscalyear’sbudgetandareplaceintothefollowingyear’sbudget.Therolloverinvoicesareapproved/disapprovedbyTownBoardinaFebruarymeeting. CCNbO-o£0a)Q0a)UCCDCICCDI.CDUUa)>a) Excerpt from MBIA Weekly Economic Update (July 17,2009): D Consumer prices jumped 0.7 percent in June, following a 0.1 percent increase in May i Mote than the 0.6 percent forecasted lot the month due to the recent rise in energy costs. •Over the past year,prices have fallen largest drop since January 1950. •Companies have been forced to sell goods with incentives and/or discounts with declines in both consumer spending and business investment. •Inflation contained since companies are unable to pass on higher energy costs to the consumer. 1.4 percent,the Excerpt from Morgan Stanley Second Quarter Conference Call (July 15,2009) •No cleat growth driver apparent despite policy measures •Large output gap and weak labor market creates headwinds for recovery (unemployment rate 9.7%;expected to exceed 10%by end of 2009) •Structural change of deleveraging in financial and non-financial sector •Recovery to a lower growth path •Lagged impact of financial sector stimulus on the real economy •Risk that emerging market stimulus is over-estimated •Fault lines appearing amongst policymakers •Rising global tensions over trade and currency management Miscellaneous data: D Rocky Mountain Lodging Report: a Colorado Occupancy down YTD,61.7%(2008)to 54.1%(2009) a Average Daily Rate down YTD,$132.21 (2008)to $122.94 (2009) D GFOA conference (Seattle,June 2009): a Sales tax down 10-20%on western slope. a Real estate transfer taxes have evaporated. However... Town of Estes Park: D Sales tax thru May 09 (25%of fiscal year)down “only”1.5%from 2008. •1.5%on annual basis translates to ‘‘$11O,OOO. •Predictors for June sales tax:traffic counts up,RMNP visitation up,hotel occupancy down.This is the same scenario that existed for May,which was flat vs ‘08. D Real estate:Commercial market still strong. Residential market soft but “ok”compared to Colorado as a whole. CIP Assumptions D Denver/Boulder CPI projected rates (2010:1.6%,2011:2.6%, 2012:3.3%)used for projecting increases in expenses and sales tax revenues. D Excel “linest”function (trend)used for projecting other revenues.Trend is flat. D Fire services fund projected @ 7%of sales tax. D EPURA projected to continue transfer @ $200k/yr. D Community Reinvestment Fund transfer @ $500k/yr. D CVB Fund transfer reduced $770k/yr.Deployment of funds shown in 3 scenarios. D No new net staff. Scenario 1 —CVB savings kept in Gen Fund, $500k transfer to CRF from Gen Fund TOWN OF ESTES PARK GENERAL FUND Statement of Revenue,Expenditures,and Fund Balance IProiected I Actual w 08 rollovers Description 2007 2008 2009 2010 2011 2012 2013 $$$$$$$ Beginning Balance $2,849,037 $4,037,922 $4,631,244 $3,858,188 $3,849,130 $3,818,244 $3,737,011 Total Revenues 11,420,689 12,253,155 11,096,020 11,312,890 11,558,633 11,831,340 12,084,325 Total Expenditures 7,535,316 7,591,629 8,463,322 8,598,735 8,842,302 9,134,098 9,435,523 Total Transfers Out 2,696,492 4,068,205 3,405,754 2,723,213 2,747,216 2,778,474 2,810,764 Net cash flow for year 1,188,880 593,321 (773,056)(9,058)(30,886)(81,233)(161,963) Adjustments per CAFR Ending fund balance Recommended Board target (30%) 5 0 0 0 0 0 0 $4,037,922 $4,631,244 $3,858,188 $3,849,130 $3,818,244 $3,737,011 $3,575,048 39%40%33%34%33%31% Scenario 2 —CVB savings ($770k)transferred to CVB instead of Gen Fund $500k I $ TOWN OF ESTES PARK GENERAL FUND Statement of Revenue,Expenditures,and Fund Balance Projected w 08 rollovers 2008 2009 2010 2011 2012 2013 $$ Actual 2007 $2,849,037 11,420,689 7,535,316 2,696,492 1,188,880 $ Description Beginning Balance Total Revenues Total Expenditures Total Transfers Out Net cash flow for year Adjustments per CAFR Ending fund balance Recommended Board target (30%) $$ $4,037,922 12,253,155 7,591,629 4,068,205 593,321 $ $4,631,244 11,096,020 8,463,322 3,405,754 (773,056) $3,858,188 11,312,890 8,598,735 2,993,213 (279,058) $3,579,130 11,558,633 8,842,302 3,017,216 (300,886) $3,278,244 11,831,340 9,134,098 3,048,474 (351,233) $2,927,011 12,084,325 9,435,523 3,080,764 (431,963) 5 0 0 0 0 0 0 $4,037,922 $4,631,244 $3,858,188 $3,579,130 $3,278,244 $2,927,011 $2,495,048 39%40%33%31%24%20% Scenario 3 —CVB savings ($770k)and Gen Fund $500k transfer both transferred to CRF TOWN OF ESTES PARK GENERAL FUND Statement of Revenue,Expenditures,and Fund Balance I Projected I Actual w’08 rollovers Description 2QZ 2il $$$$$$$ Beginning Balance $2,849,037 $4,037,922 $4,631,244 $3,858,188 $3,079,130 $2,278,244 $1,427,011 Total Revenues 11,420,689 12,253,155 11,096,020 11,312,890 11,558,633 11,831,340 12,084,325 Total Expenditures 7,535,316 7,591,629 8,463,322 8,598,735 8,842,302 9,134,098 9,435,523 Total Transfers Out 2,696,492 4,068,205 3,405,754 3,493,213 3,517,216 3,548,474 3,580,764 Net cash flow for year 1,188,880 593,321 (773,056)(779,058)(800,886)(851,233)(931,963) Adjustments per CAFR Ending fund balance Recommended Board target (30%) 5 0 0 0 0 0 0 $4,037,922 $4,631,244 $3,858,188 $3,079,130 $2,278,244 $1,427,011 $495,048 39%40%33%18%11%4% Community Reinvestment Fund Assumptions D $500k/yr,$770k/yr,$1270k/yr transfer scenarios from General Fund D $2 17k/yr commitment to SOPA D $400k commãtment to grandstands in 2009 D $270k commitment to architectural/impact fee studies for MPEC in 2009 Summary of Community Reinvestment Fund COMMUNITY REINVESTMENT FUND Statement of Revenue,Expenditures and Fund Balance 2007 2008 2009 2010 2011 Beginning Balance $1,515,682 $1,146,177 $1,484,853 $2,100,343 $2,383,343 Total Revenues 68,957 701,164 1,527,000 500,000 500,000 Total O&M Expenses 219,503 217,494 217,000 217,000 217,000 Total capital 218,960 144,993 694,510 0 0 Total Expenditures 438,463 362,487 911,510 217,000 217,000 Net cash flow (369,505)338,677 615,490 283,000 283,000 Ending Fund Balance $1,146,177 $1,484,853 $2,100,343 $2,383,343 $2,666,343 2012 $2,666,343 500,000 217,000 0 217,000 283,000 $2,949,343 $770k>> $1270k>> 2013 $2,949,343 500,000 217,000 0 217,000 283,000 $3,232,343 $4,312,343 $6,312,343 Therefore... D The existing/default projection allows for an annual $283k surplus in CRF.Current options include spending $2.lm fund balance along with: •Paying cash for continuing project(s)at $2$3k pace/year. •Leveraging $283k into Certificates of Participation (COPS),along with pledge of assets,which (@ 5.5%,20 yrs)could yield up to $3.25m in borrowing power. D Town can therefore build project(s)(such as the MPEC complex)totaling approximately $5.4 million. D A project(s)of this magnitude will drain CR Fund balance and preclude any other sizeable capital projects.Existing capital project budget of $500k in General Fund will need to suffice for Town needs for foreseeable future. 0FuJ>-CCNuJHHUuJ0UzUJ>LU 2009 Year to Date Review/2009 Forecast (General Fund) BEGINNING FUND BALANCE REVENUES Taxes Licenses &Permits I ntergovern mental Charges for Services Fines/Forfeits Current Miscellaneous Transfer -Light &Power Transfer -Water Total Revenues EXPENDITURES General Government Public Safety Engineering-Public Works Cu Itu re-Recreation Contingencies Interfund Transfers Out GA -Transfer to EPURA Total Expenditures EXCESS OF REVENUES OVER (UNDER)EXPENDITURES ENDING FUND BALANCE FUND %(FUND BAL/EXPENDITURES) 2009 BUDGET (rev)YTD %BGT VARIANCE 50% $4,090,222 $4,632,144 (cafr) 8,283,968 1,718,794 21%($6,565,174) 507,200 353,607 70%(153,593) 401,461 169,865 42%(231,596) 38,750 31,784 82%(6,966) 40,000 20,460 51%(19,540) 267,500 108,744 41%(158,756) 464,881 213,632 46%(251,249) 982,161 496,487 51%(485,674) 110,099 45,916 42%(64,183) 11,096,020 3,159,289 28%(7,936,731) 2,625,277 1,268,961 48%(1,356,316) 3,240,653 1,480,767 46%(1,759,886) 1,691,818 470,001 28%(1,221,817) 905,574 392,366 43%(513,208) 0 0 N/A 0 3,205,754 1,602,877 50%(1,602,877) 200,000 0 0%(200,000) 11,869,076 5,214,973 44%(6,654,103) (773,056)(2,055,685)(1,282,629) $3,317,166 $2,576,459 28%49% 2008 YTD 09V’08 $4,037,922 $1,748,877 ($30,083) 435,059 (81,452) 200,038 (30,173) 36,442 (4,658) 28,236 (7,776) 153,595 (44,851) 1,131,895 (918,263) 497,750 (1,263) 42,859 3,057 4,274,751 (1,115,462) 1,143,800 125,161 1,376,047 104,720 641,882 (171,881) 350,771 41,595 10,056 (10,056) 2,378,736 (775,859) 200,000 (200,000) 6,101,292 (886,319) (1,826,541)(229,144) $2,211,381 EstesParkPotentialImprovementProjectsandRequestsQualityofLifeIssuesProject‘GrandstandsAdditionalFundingMultiPurposeEventsCenter-StanleyParkIndoorArena-StanleyParkBondParkConstructionPhaseFairgroundsparkinglotandlandscapingPermanentStallBarn-StanleyParkMoraineAvenueStreetscape&SafetyReplacebarns“T”“U”and“Vinnext5yearsAddsecondlevelofparkingonWeistparkinglotDonutHausIntersectionRenovatebarn“W”DowntownTrafficFlowRealignmentRequestsfromtheCommunity/OthersCostEst.$300,000$?$?$645,000$800,000-1.2M$?$600,000$1,000,000$?$200,000$450,0002.2RecyclingCenter2.2FundingforEPURA1.3ElmRoadBy-Pass1.3LandAcquisitionforOpenSpace$?4UpdateComprehensivePlan$100,0002.8FireCodeRequestsfromTrustees2.7PoliceDepartmentCarport1.7LandAcquisitiononRiversideDriveSuggestedbyLeagueofWomenVotersLendmoneytoEPURAfor5yearsLongtermtrafficcongestionsolutionInterestinacquiringlandforopenspace?CompleterewriteofcompplanImplementafirecodetoinspectfiresystemsannuallyOnnorthcurb/protectpaintfromsunlightAcquirepropertytoavoidfuturecondemnationforroadimprovements5=Animmediateneedexists4=Aneartermneedexistsinthenext2—3years3=Alongtermneedexistsinthenext3—5years2=Afutureneedexistsinthenext6+years1=Aneeddoesnotexist$?DescriptionImprove/expand,includerestrooms30,000sq.ft.eventscenterEncloseexistingarena#5UseMasterPlan/ConstructionDrawingstobeginconstructionLotandstormdrainageTomoveawayfromusingMPECforhorsesEPURAparticipation/trafficsignal@crosswalk?Rebuildthesetemporarypolebarns,nofoundations,areslidingPromoteandpass1/4centsalestaxforparking/maintenanceImprovementstounsafeintersection,20%matchReskin,insulation,heatersForcetrafficdownRockwell,one-wayonMoraine,grantpotentialPolicies$500,000$1,000,000 CVB Transitional Picture Attached is a spreadsheet comparing the current CVB budget to the proposed 2010 CVB budget minus $829,892 in expenses shown in the current budget under the Communications Fund.These expenses now are incurred by the LMD.In 2010 the CVB will transfer four staff members to the LMD.The Town will retain the personnel expenses of those four employees within their 2010 budget. Based on the expenses and revenues in 2009 the General Fund transfer was approximately $1,951,283.In 2010 the projected General Fund Transfer is anticipated to be $1,150,098,a savings difference of $801,185 to the General Fund. The following services will be transferred to the LMD in 2010: 1)Destination Advertising 2)Destination Public Relations 3)Destination Group Sales and Marketing 4)Visitors Guide 5)Stakeholder services The CVB will retain the following services: 1)Visitor Services a.Visitor services b.Visitor center c.Information specialists d.Ambassadors 2)Event Facilities and Support a.Fairgrounds b.Parks c.Event sales and support 3)Conference Center a.Sales and marketing b.Partnership agreements CVB Department Revenues 2009 2010 2010 General Fund Transfer Difference CVB LMD Communications Revenues Investment earnings 6,000 6,120 Visitors Center Revenues Stakeholder Services 250,000 255,000 Retail (counter sales)52,763 53,818 Pepsi Sales 3,000 3,060 Visitor Guide Revenues Visitor guide sales 180,318 183,924 Group Sales &Marketing Miscellaneous 11,000 10,000 Special Events Rents 191,500 191500 General Admission 124,079 124079 Participant Fees 72,000 72000 Feed sales 90,000 90000 Miscellaneous 7,000 7000 Rents 4,000 4000 Donations 20,000 20000 Other 50,500 50500 Total Revenues 1,056,160 1,071,001 CVB Expenditures Personnel 1,038,634 1,059,406 Communications 829,892 0 829,892 Vistors Center Expenses 196,679 200,612 Vistor Guide Expenses 180,318 183,924 Group Sales &Marketing Expenses 40,142 40,944 Special Events 608,304 620,470 Conference Center 113,474 115,743 Expense Totals 3,007,443 2,221,099 General Fund Transfer 1,951,283 1,150,098 801,185 2009 CVB Organizational Chart CVB Oitctot I I I Fairgrounds Event Manager Group Sales Marketing Manager Visitor Services Coordinator L (2)Informations Specialists (3)seasonal Staff •12 Fulltime Employees (FTE’s) o (1)Executive Director (Pickering 19 YOS/PERA) o (1)Events Manager o (1)Group Sales Manager o (1)Communications Manager (Marsh 18 YOS/PERA age eligible for retirement) o (1)Stakeholder Services Coordinator o (1)Fairgrounds Foreman (Vacant) o (1)Event Support Coordinator o (1)Fairgrounds Supervisor o (1)Communications Coordinator o (1)Visitor Services Coordinator o (1)Information Specialist o (1)Information Specialist •6 Seasonal Employees o (3 Seasonal employees)Fairgrounds o (3 Seasonal employees)Visitor services Fairgrounds Foreman I I Fairgrounds Supervisor [Ommunication Manager L Event Support Coordinator StCkeholder Services Coordinator (3)Seasonal Staff ornmunication Coordinator 2010 Proposed CVB Organizational Chart CV Director Visitor Services Coordinator Event Facilities and Support Manager Conference Center (vacant) (2)Informations Specialists I I i a a (3)seasonal Staff Event 5uppo Coordinator Fwtgrounds Supervisor Event 5upport Coordinator Fairgrounds Foreman •8 Fulltime Town Employees (FTE’s) o (1)Executive Director (Pickering 19 YOS/PERA) o (1)Events Manager o (1)Fairgrounds Foreman (Vacant) o (1)Event Support Coordinator o (1)Fairgrounds Supervisor o (1)Visitor Services Coordinator o (1)Information Specialist o (1)Information Specialist •6 Seasonal Employees o (3 Seasonal employees)Fairgrounds o (3 Seasonal employees)Visitor services •4 Fulltime Employees LMD o Destination Advertising o Destination Public Relations o Destination Group Sales and Marketing o Stakeholder Services &Visitors Guide