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Home My WebLink AboutMINUTES Town Board Budget Study Session 2022-09-29RECORD OF PROCEEDINGS Town of Estes Park, Larimer County, Colorado, September 29, 2022 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 in said Town of Estes Park on the 29th day of September, 2022. Board: Mayor Koenig, Mayor Pro Tem Webermeier, Trustees Cenac, Hazelton, MacAlpine, Martchink, and Younglund Attending: All Also Attending: Town Administrator Machalek, Assistant Town Administrator Damweber, Finance Director Hudson, Directors Fortini, Garner, Hinkle, and Muhonen, Managers Bucci, Lizotte, and Schlichtemier, and Deputy Town Clerk Beers Absent: None Mayor Koenig called the meeting to order at 2:45 p.m. Town Administrator Machalek stated staff would be presenting a budget which sets aside significant reserves for capital and important projects including wildfire mitigation. He stated the de-brucing measure which passed in April 2022 allowed for a flexible budget which meets the needs of the community, maintain current services without major reductions and add additional services. 2022 BUDGET PRESENTATION Finance Director Hudson stated the proposed budget would be structurally balanced with expenditures not exceeding conservative revenue projections, meets the 25% General Fund reserve, projected an ending fund balance of 26.5% in 2023, and addresses Town Board Strategic Plan Objectives. Decision packages were previously referred to as "change forms" and almost all requests for 2023 were funded. He stated a majority of the "not resourced" items were withdrawn by staff due to staffing limitations. He reviewed the annual budget process and timelines for putting the budget together for presentation to the Board. Two significant accounting changes occurred in 2022, including a new cost center for the Workforce Housing function and Stormwater Maintenance. An accounting change in 2023 would reflect a new cost center for the Workforce Housing impact fee which would begin generating revenues in January 2023. He reviewed sales tax revenue allocation which included 1A sales tax revenue. 2023 sales tax allocation would include: 76% of total General Fund revenues, 1A funds allocated across the Emergency Response, Community Center, Trails, and Street Improvement Funds. 2023 Sales tax projections reflected an increase of 1.1% from 2022's projections at $24,852,370. He reviewed reserves and restrictions including: discretionary equipment replacement, parking garage maintenance, childcare, workforce housing, facility and employee housing, restricted revenues/donations and the 25% reserves. Discussion ensued regarding the 3% TABOR reserve requirement, what happens when a vehicle is retired and whether electric vehicles have been considered for replacement vehicles. He provided a review of the budgeted projects for 2023 for the Open Space Fund, Trails Expansion — 1A Fund, Parking Services Fund, Street Improvement — 1A Fund, Power and Communications (P&C) Fund, Water Fund, Fleet Maintenance Fund and Community Center — 1A Fund. He stated any incomplete 2022 projects would be rolled over into the 2023 budget. Proposed changes included: 2% merit pool $160,102, 2043 Multimodal Transportation Plan at $300,000, lease purchase of a street sweeper $313,376, wildfire mitigation expenditure of $500,000, ERP accounting software system replacement $537,500, increases to reserves $2,013,000, and $2,395,122 in various other projects. Proposed new positions included two regular full-time positions for one new Patrol Sergeant, Dispatcher and Grant Writer position. Three fixed term full time positions were proposed for one Project Manager and Staff Accountant for the new ERP Accounting system and one new Grant Writer. He stated Utility transfers are based on a fixed amount to be transferred each year RECORD OF PROCEEDINGS Town Board Budget Study Session — September 29,2U22—Page 2 which is set during the budget process. Staff intends to slowly and methodically reduce the P&C transfers in the future. P&C transfers are approximately 7-8% and Water transfers are 2'396ofrevenues. COMPENSATION & BENEFITS Manager Lizcdte stated the annual compensation survey was conducted by Graves Consulting LLC. The2U23 market adjustment changes reflected: an update to market definitiono, a restructure of pay families and ranges across all funds, a 596 market adjustment to address final market study adjustments, and 296 merit pool to move employees through the pay range. Staff worked with the Town'sinsurance broker Brown and Brown (formerly Hays Companies) to review the Town'o benefit package for2023. She stated the budged proposal reflected a 10% increase for medical in 2023 with all other benefits remaining unchanged. Bound questions included whether staff anticipated changes to any benefit providers in 2023 and how staff identifies comparable municipalities for benefits and compensation. CAPITAL IMPROVEMENT PLAN 2O23-2O27 The Capital Improvement Plan (C|P) was developed through departments submitting projects, the Town Board completing and setting aStrategic Plan, development ofthe operating budget, project prioridzahon, and the final adoption of the C|P by the Town Board taking place on November 8, 2022. The C|P annual summary for 2U23 was presented at $13.2million innew projects and atotal of$43.4million over the next five years. Director Hudson stated future years are provided in the summaries in the packet for reference and may shift depending onneed and availability throughout the year. COMMUNITY REINVESTMENT FUND The fund includes seven projects for 2O23atacost of$2.1 million. The 2O23Strategic Plan Initiatives naoourced include the Bobcat Too|cat trail maintenance equipment, community development office osmudo|. DowntownVVoyfinding Phuoo3. Event Center acoustical pane|n, second greenhouue, street sweeper lease purchase, Events Department water truck replacement, VVondamiew Village Townhome nid*wa|k, barricade prcjeot, town hall remodel design for central vemaption, wildfire mitigation expenditures, ERPaccounting system replacement, museum roof/wall modification, and Capital Reserve contributions. GENERALFUND The general governmental service funds (Legislative, TownAttome/e Offico, Judicia|, Town Administrator's Offioe, Town C|ad(a Offime, Finanoa, Human Resources, and Workforce Housing. Director Hudson stated inApril 2022the voters approved o de' bruninQ measure which removed vaaihudona on the use of revenues in oxoeuo of TABOR limitations and removed the requirement to transfer funds from the General Fund into the Community Reinvestment Fund. The 2023 Budget summary reflected an estimated end of2U23fund balance of$2Q.427.183. COMMUNITY CENTER FUND The 1Asales tax funds are accumulated and remitted to the Estes Valley Recreation and Parks District to fund the construction of the Community Center. The aa|oo tax would expire inJune of2U24. VEHICLE REPLACEMENT FUND The fund has proposed revenues ofSG75.G77 and expenses of$1O8.UUU to purchase three vehicles in2O23. Mayor Koenig called u 10-minute break at 4:30 p.m. and Trustee Cenao left the meeting. The meeting was reconvened at 4:40 p.m. COMMUNITY SERVICES Visitor Services: The division has no revenues identified for2O23 and $574.522 in expenses. Staffing has approximately 30 volunteers and four full time employees. Staff would implement o Guest Services (Service Elevated) training for volunteers/staff and RECORD OF PROCEEDINGS Town Board Budget Study Session - September 29, 2022- Page 3 explore partnership opportunities with Visit Estes Park to develop a visitor experience data strategy. OUTSIDE ENTITY FUNDING REQUESTS Assistant Town Administrator Damweber presented the 2023 funding for outside entities including base funding and community initiative funding. Funded items included an increase to base funding (chart provided below) and childcare reserve contributions. Base Funding Allocations Entity 2023 Request 2023 Recommendation Crossroads Ministry of Estes Park $35,000 $35,000 Estes Park Economic Development Corporation $100,000 $65,000 Estes Park Nonprofit Resource Center $22,000 $21,000 Estes Valley Crisis Advocates $20,000 $20,000 Estes Valley Investment in Childhood Success $60,000 $40,000 Estes Valley Watershed Coalition $24,000 $20,000 Estes Park Housing Authority $75,000 $50,000 Estes Park Salud Foundation $24,000 $24,000 Via Mobility Services $36,000 $36,000 Estes Arts District $27,000 $21,000 TOTAL $423,000 $332,000 Community Initiative Funding Allocations Entity 2023 Request 2023 Recommendation Explore Estes $10,000 - Estes Land Stewardship Association $3,000 $3,000 Estes Park Newcomers $3,000 $2,500 Estes Park Learning Place $7,080 $7,080 Larimer County Partners $5,000 $5,000 Estes Park Gun and Archery Club $5,000 $5,000 Big Kahuna Memorial w/Arts Center of Estes Park $5,000 TOTAL $38,080 $22,580 IT The internal services fund charges fees to each of the departments and has projected $937,753 in revenues and $1,176,844 in expenses for 2023. Staff requested server upgrades for shared storage and IT managed inventory totaling $171,000. 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 $15,000 for small claims and deductibles, for a total of $426,450 in 2023. MUSEUM The Museum estimates revenues of $28,675 and expenditures of $493,284 in 2023. The Town Board approved a grant on September 27, 2022 for repairs at the Birch Ruins for a total of approximately $25,000. Discussion ensued regarding replacing signage for the cabin at the Museum. It was determined the Estes Park Museum Friends & Foundation has budgeted funds towards replacing the signs and an update would be provided to the Board when available. POLICE The department has four divisions, including patrol, dispatch, support services and code enforcement. Staff requested an additional Patrol Sergeant, an additional Dispatcher, radio hardware updates as mandated by the State, and a trailer for a grant funded barricade system anticipated in 2023. Staff would create a radio equipment plan and gather information to consider the addition of a full-time Emergency Manager including a draft job description and financial impact. The next Budget Study Session was scheduled for October 6, 2022. There being no further business, Mayor Koenig adjourned the meeting at 5:42 p.m. µ.........µ. _...... mow.,, Bun :V tori Beers, Deputy own Clerk