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HomeMy WebLinkAboutPACKET Special Family Advisory Board 2023-02-24 February 24, 2023 2:00 p.m. EVICS Family Resource Center 1182 Graves Ave, Unit A 1. Review the Workforce and Childcare Funding Plan for Lodging Tax (6E) Funds. Board Discussion 2. Identify Funding Plan Recommendations for Town Board Consideration. Board Consideration. Adjourn. AGENDA FAMILY ADVISORY BOARD SPECIAL MEETING       Town of Estes Park 2023 Annual Workforce and Childcare Funding Plan for Lodging Tax (6E) Funds Purpose The purpose of this document is to outline how Workforce and Childcare Lodging Tax funds (6E) passed through to the Town will be allocated between workforce housing and childcare in 2023, how funding is planned to be further broken down for particular purposes within each category, and how the funds will be administered. It also outlines a proposed process for how such decisions will be made and by whom for expenditures in 2024 (and beyond). The plans/processes differ by necessity because of the timing of the passage of the measure and the desire to have a structure for expending funds in place for 2023 in short order. Overview In November 2022, residents of the Visit Estes Park Local Marketing District approved Ballot Issue 6E, increasing the total lodging tax rate from 2% to 5.5%. Ninety percent of the new revenue must be used to address workforce housing and childcare issues in the Estes Valley. Prior to the election, a high-level framework was created that outlines how funding could be used to address these issues and how the funds might be administered if the measure passed. Regarding the latter, the Board of Visit Estes Park determined prior to the election that it would prefer to serve as a “pass-through” of the funds, ultimately relying on the Town of Estes Park, in coordination with Larimer County, to decide how best to administer them. In 2023 the budgeted revenues from the Workforce Housing and Childcare Lodging Tax that would be passed along from Visit Estes Park for workforce housing and childcare total $5,379,305. The Town would begin receiving funds in March of 2023. The Town will also be contributing additional funding from its own budget in 2023 to enable us to begin addressing workforce housing and childcare issues as soon as possible: approximately $1,635,000 for workforce housing and $100,000 for childcare. While these funds will be used for the same purposes as the revenues received from the Workforce Housing and Childcare Lodging Tax, they are not included in this plan because, as strictly Town funds, they are not subject to the same process outlined herein. 2023 Funding Plan The first year 6E funds are collected, 2023, should largely be considered a “building year” as we (mainly the Town and County) work to get all the necessary decisions made and agreements drafted, negotiated, and executed. This includes an overarching Intergovernmental Agreement with Larimer County whereby the Town and County agree on the process for decision-making moving forward, as well as professional service agreements with partners/contractors that will be providing services related to the creation of workforce housing and provision of childcare services. There are also many new or updated policy decisions that need to be made which will inform program development, eligibility requirements, etc. We expect that several new positions will need to be created to develop and carry out programs, whether within the Town or the Estes Park Housing Authority. Additionally, consideration will need to be given to how the dedicated revenue stream can be leveraged to finance large projects and/or purchases related to workforce housing (such as bonding, etc.). Funding Allocations For budgeting and planning purposes, the 2023 budget allocations from the Workforce Housing and Childcare Lodging Tax would be approximately1: ●Workforce Housing: $4,750,000 ●Childcare: $625,000 Again, these dollar figures are approximations contingent on a number of factors including actual collections. The timing of collections will impact how much can be spent and at what point in the year, especially for 2023. For 2023 and in out years, funds may need to be shifted during the year depending on opportunities that present themselves in either category (e.g. for property acquisition if something becomes available on the market) and/or needs that arise that Workforce Housing and Childcare Lodging Tax funds could address. Additionally, a portion of the funds will be used to create a new position within the Town responsible for coordination and oversight of the funding, partnerships, programs, and processes needed to ensure 6E funds are spent appropriately and as intended. We expect that funds from each allocation pools will be used to cover the costs of the position. 1 The Town’s 2023 budget also includes $900,000 in Town Workforce Housing Reserve Funds, $735,000 in Short Term Rental Linkage Fee funds, and $100,000 in Childcare Reserve Funds. Decision Making In general, funding decisions will be made based on evaluation of need in the community and consideration of maximizing the impact of Workforce Housing and Childcare Lodging Tax funds. All funding decisions will be made in accordance with the Intergovernmental Agreement between Larimer County and the Town of Estes Park and the adopted Annual Operating Plan (including this plan for 2023). With respect to spending decisions made by the Town, new Workforce Housing and Childcare funding policies that dictate eligibility for awards and how they can be used will be adopted by the Town Board. These policies will be informed by the Town’s existing finance policy, which limits administrative purchasing authority to $100,000 or less, as well as existing Workforce Housing and Childcare funding guidelines. New fund accounts will be established within the Town budget for Workforce Housing and Childcare, with sub-accounts in each category designated for particular purposes, as practical. The Town will also enter into agreements with partners, where funds may be transferred for particular purposes, including for administrative costs associated with program management. In such cases, the agreements will specify authority with respect to spending. (For example, an agreement with the Estes Park Housing Authority may authorize a transfer of $500,000 to the Housing Authority to be used to purchase a certain number or type of deed restrictions. The agreement would dictate the extent to which EPHA has authority to make purchasing decisions vis-à-vis the Town.) It is important to note that the Estes Park Housing Authority, which will be a key partner on the workforce housing side, was created by the Town and is a formal governmental entity. EPHA’s Board Members are appointed by the Town Board, and it is subject to the same auditing requirements as other public entities in Colorado. Workforce Housing The Estes Park Housing Authority (EPHA) exists to create and facilitate housing opportunities in the Estes Valley. They currently have staff and programs in place to begin utilizing Workforce Housing and Childcare Lodging Tax funds to address workforce housing challenges in the immediate term. They are also poised to add staff in order to create and administer new programs using the new funds. To that end, the Town intends to enter into an agreement with EPHA whereby funding would be provided in exchange for administration and management of the various programs outlined below.2 The agreement, which will need to be considered and approved by the Town Board, would dictate the extent to which EPHA has authority to make purchasing decisions vis-à-vis the Town. All expenditures by EPHA will be subject to regular audits. It is important to note that the estimated budgets in each category are approximations and are subject to change based on opportunities that arise, and that all of the funds may not be spent in 2023. Details on each strategy can be found in the framework document developed prior to the election. The specifics will be informed by the new Housing Needs Assessment and Strategic Plan, which was transmitted to the Town and EPHA in January 2023. Purpose of Funds Estimated Budget Property Acquisition Reserve (Land-banking, financing, etc.) $1,500,000 Cash Buyer Program/Rental Assistance $1,500,000 Predevelopment work for property already in real estate portfolio $900,000 Deed Restriction Purchase Program $500,000 Staffing/Capacity Building at EPHA (Up to 3 FTEs and associated overhead) $350,000 Total $4,750,000 2 Consistent with the Estes Valley Housing Needs Assessment and Strategic Plan, which was presented to the Town Board on January 24, 2023. Childcare There are four areas where Workforce Housing and Childcare Lodging Tax funds, along with the Town’s direct contribution, will be used to address the varied challenges faced by families in need of childcare and providers struggling to start a business and stay open. They are listed below along with a brief description of how funds would be administered and breakdown of budget allocation for each subcategory. It is important to note that the estimated budgets in each category are approximations and are subject to change based on opportunities that arise, and that all funds may not be spent in 2023. Funding decisions will be made based on evaluation of need in the community and consideration of maximizing the impact of Workforce Housing and Childcare Lodging Tax funds. Decisions will be made consistent with the Town’s adopted Childcare Funding Guidelines. Details on each strategy can be found in the framework document developed prior to the election. Purpose of Funds Estimated Budget Addressing Workforce Challenges $250,000 Facilities/Capital $200,000 Tuition Assistance/Scholarships $100,000 Out-of-School Programming $75,000 Total $625,000 ●Addressing Workforce Challenges: $250,000 o Requests for funding to address workforce challenges would be made either through an application process administered by the Town or through direct subsidies to childcare providers based on the number of filled full-time or part-time childcare slots. Regarding a direct subsidy approach, while the subsidy amount per slot would need to be determined, we expect that a higher dollar amount would be provided for slots for infants and toddlers and that subsidies would be prorated for part-time slots. The advantage of a direct subsidy approach is that it would enable each provider to determine how funds could best be leveraged to address workforce issues based on their circumstances/challenges. By accepting funds, whether through an application process or subsidy, providers would be required to demonstrate how the funds would/are being used to address workforce challenges. The Town would dictate these requirements, likely to include a minimum salary or wages for staff and a minimum number of spaces provided. Requirements would formally be agreed to by the providers. o With respect to workforce challenges, 6E funds would be used to: ▪To help bridge the gap between what providers can afford to pay staff and what is deemed (when a program is developed) to be a reasonable, living wage. ▪Provide recruitment bonuses. ▪Help pay or offset costs for benefits such as healthcare and paid leave. ▪Provide assistance with costs associated with licensing and/or staff training. ▪Provide assistance with costs associated with housing staff. ▪Provide assistance with costs associated with transportation needs of staff and/or children. ●Facilities/Capital: $200,000 o Requests for funding for facilities/capital-related expenditures would be made using an application process administered by the Town. Depending on the size of the request, award decisions may be made administratively or by the Town Board. The Town could also decide to directly purchase property to be used for childcare or provide subsidies to providers where there is a known need. Recipients of funds would be required to spend the funds within a year of receipt and must offer services for a minimum period of time (still TBD). o Funds in this subcategory could be used to: ▪Purchase land or existing building(s) to be used for childcare and offer to provider at affordable rate. ▪Provide financial assistance to childcare providers wishing to purchase a facility for childcare, whether as a direct subsidy or through a low interest loan. ▪Provide rental assistance for providers. ▪Provide funding for capital improvements to existing facilities needed in order to open or to maintain or increase capacity. ●Tuition Assistance/Scholarships: $100,000 o According to EVICS Family Resource Center, which currently administers the tuition assistance program for families in the Estes Valley in coordination with Larimer County, the current need for tuition assistance/scholarships (based on existing eligibility requirements) is approximately $75,000 per year. Funds in this subcategory will be used to provide needed tuition assistance/scholarships for eligible families. Because EVICS has an existing program that also leverages tuition assistance funds from the County, funds will be provided directly to EVICS to create a tuition assistance “pool.” Unused funds, if any, will be carried forward to future years. A portion of the funds – approximately $25,000 – would be provided to EVICS through a professional services agreement to help offset costs of administering the program. ●Out-of-School Programming: $75,000 o After and/or before school care, care for children on other out-of-school days (like Teacher Professional Development days), and summertime programs are extremely important to many families in the Estes Valley workforce. Funds in this subcategory will be provided as subsidies through an application process by individuals or entities that provide out-of-school care based on the number of filled slots. Providers would be required to explain in their applications how the funds will be used. Process for Development of 2024 Annual Workforce and Childcare Funding Plan for Lodging Tax (6E) Funds (and beyond) The graphic below outlines the high-level steps in the process for development of the 2024 Funding Plan and for future years. The process will be revisited annually in coordination with Larimer County. Changes to the process can be made at any time based on mutual agreement of the Town and County. Summer Town Board engages in Strategic Planning Process which will inform development of 2024 budget. Aug Town staff works with Visit Estes Park to determine projected revenues for upcoming year; develops report on current year expenditures. Town staff develops recommended budget for Workforce and Childcare Lodging Tax funds (in coordination with County staff) to be included in proposed VEP Annual Operating Plan. Town Board considers recommended budget for Workforce and Childcare Lodging Tax funds; once approved by Town Board, sent to Larimer County for feedback. Sept Larimer County/Town/VEP Boards consider VEP operating plan, including recommended Workforce and Childcare Lodging Tax Plan budget. Oct-Dec Town files proposed Funding Plan by November 1. Town Board adopts Town budget, including budget for Workforce and Childcare Lodging Tax funds. County approves or requests changes to Funding Plan by December 1. Feb 20, 2023 To: FAB Members From: FAB Chair Nancy Almond and FAB Vice-Chair Deanna Ferrell Having reviewed the Proposed Opera�ng and Fund Distribu�on Plan for 6E revenue received in 2023, we make the following sugges�ons to FAB membership for considera�on and recommenda�on to the Town Board. • Recommend the TB designate 6E funds to update the 2018 Childcare Needs Assessment and create a Community Childcare Strategic Plan, including short and long-term goals and projected alloca�ons of funds for mee�ng the community’s childcare needs. • Recommend the TB amend the 2023 Town Strategic Plan to include the administra�on of 6E Lodging Tax Funds, and appropriate strategies and outcomes to ensure accountability and success. • Recommend the Opera�ng Plan reflect a partnership with EVICS for the execu�on of specific ac�vi�es within the plan that align with EVICS exper�se and scope of work and designate pass-through funds for those purposes. (page 3; 2023 Opera�ng Plan: “The Town will also enter into agreements with partners, where funds may be transferred for par�cular purposes, including the administra�ve costs associated with program management.”) • Recommend that TB direct staff to create a “key-stakeholders advisory team” of key partners currently execu�ng programs and services related to housing and childcare, to meet at regularly scheduled intervals to review, update, inform, and propose changes as needed to the Opera�ng Plan. (Suggested partners: EPHA, EVICS, ECCLC, FAB?) • Recommend that TB con�nue to monitor and update the Housing Needs Assessment and adopt the Housing Strategic Plan. Concerns to discuss: We have a concern that the proposed plan does not reflect equitable support for the childcare component of the plan, in terms of a strategic plan, community partner(s), funding distribu�on, and staffing support. (See “purpose of funds” tables on pp 4 and 5). We recommend that those components be focused on and addressed in the first year of funding so that the childcare goals are clear and successful. The plan notes the crea�on of a new staff posi�on within the Town to coordinate and oversee all aspects of the Opera�ng Plan, with alloca�ons taken from both funding pools to cover the cost of the posi�on. Considering the funding differen�al for housing and childcare, is this equitable? Perhaps a line item could be added to the childcare alloca�on designa�ng addi�onal funds for this purpose. Something to discuss.       Exploration Potential ECE Capacity 1.Community/Recreation Center A. $1.75 Mil. (all in). B.tbd Projected guess- $250,000 a.New Construction/Addition i.Build out of existing plans that were drawn at time of construction when ECE portion wasn’t completed due to increased construction costs. ii.Estimate includes all soft costs, haul offs, etc. iii.2500square feet of space= depending on ages and build-out configurations= 36-50 slots (using the MOST restrictive space requirements) b.Reconfiguration and Reuse of Cubz Den ECE area i.Make necessary modifications to existing area, already in use and established for ECE, to be used for infant care. ii.1000 sq. ft= 10 infant slots; requiring 2 ECE caregivers 2.LLEV is closing in May a.Building is for sale and includes already licensed space for ECE (any ages with little modifications), currently serving ages 3-5. b.Living space on second floor; multiple apartments as income generator or industry workforce housing. c.Additional space to expand ECE or utilize as human services/nonprofit office space. d.Shared ownership? EPHA? Town, retaining as an asset? 3.Town Owned Property at 179 Stanley Circle a.Reviewed and considered previously but without conclusion. b.Now that funding is in place, is it a possibility? c.Square footage = room for 2 classrooms=5-10 infants or 20 toddlers (approximate/estimated). 4.Industry Specific Workforce ECE a.Utilize funds to support staffing and usage of space in a hotel/motel on Highway 34, “hotel row”, to be utilized for childcare for that industry’s workforce. Potential Specific Uses Outside of Capacity 5.Support a unified industry standard for salaries. a.Such a standard would help to inform (already identified) salary subsidies for ECE providers. b.With the understanding that workforce is one element of success for establishing adequate access to quality, affordable, and local early care and learning opportunities, funding may establish a community-wide standard for salaries for early childhood professionals that balances the industry and brings local salaries to align or compete with regional PUBLIC COMMENT 2023-02-24 salaries. This can contribute to the ability to recruit and retain qualified ECE staff, equalizes providers, while also making strides toward changing the Estes Valley from a “childcare desert” unable to attract quality professionals, to a thriving and innovative leader in ECE. c. This, alongside meeting the gap in housing needs, can support this needed change in community culture. 6. Support a Community-Wide Early Childhood Strategic Plan a. As Estes Park has an unprecedented opportunity to reverse longstanding negative trends in both housing and early care and education, it is valuable to have in place a current needs assessment and strategic plan. Such a plan will allow us to maximize this opportunity and move forward in a unified approach as a community with roles identified and shared benchmarks for success. b. The most recent ECE Needs Assessment was released in 2018 with an anecdotal update completed by the Family Advisory Board subsequently. c. There is not a community-wide ECE strategic plan in place, leaving only the Childcare Reserve Funding guidelines as any guidance on ECE strategic plans for the entire community. 7. Support Transportation: a. Families often require transportation to piece together the workforce care they need. For example, with Universal Pre-Kindergarten in the Fall for four year olds (and some qualifying three year olds), some families will need a way for their child to attend one location in the morning and another in the afternoon, potentially. Funds could be used to support partnering organizations to develop ECE transportation services. Such a transportation network would also increase the locations of possible ECE services. Statistics from the most recent Estes Park Childcare Needs Assessment released in 2018 that speaks to the projected need for capacity in relation to housing needs. In 2017, the gap between capacity and demand is relatively small but by 2027 the shortage of childcare spots ranges from 17 full‐day full‐time childcare spots under the status quo scenario to 66 full‐day full‐time childcare spots under the workforce housing and childcare investments scenario. The demand forecasts indicate an immediate need for infant care regardless of demand scenario and indicate a long‐term need for additional preschool‐age capacity, particularly if both workforce housing and childcare investments are made as planned.