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Home My WebLink AboutMINUTES Town Board Budget Study Session 2023-09-28RECORD OF PROCEEDINGS Town of Estes Park, Larimer County, Colorado, September 28, 2023 Minutes of a budget study session meeting of the TOWN BOARD of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in said Town of Estes Park on the 28th day of September, 2023. Board: Mayor Koenig, Mayor Pro Tem Cenac, Trustees Hazelton, Lancaster, MacAlpine, Martchink, and Younglund Also Attending: Town Administrator Machalek, Deputy Town Administrator Damweber, Finance Director Hudson, Directors Fortini, Hinkle, and Williamson, Managers Bucci and Schlichtemier, and Deputy Town Clerk Beers Absent: Mayor Pro Tem Cenac Mayor Koenig called the meeting to order at 1:30 p.m. Town Administrator Machalek stated Finance Director Hudson would complete the budget process and move to his new limited -term position as the ERP Implementation Manager. Jeremy Creamean has been hired as the new Finance Director and would begin mid - October 2023. 2024 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 26.4% in 2024, and addresses Town Board Strategic Plan Objectives. He reviewed the annual budget process, timelines for presentation to the Board, provided an overview of the budget decision packages and highlighted additional funding sources allocated within the budget, and the index and composite for recommended funding. One-time projects were funded; however, the proposed budget does not contain any proposed ongoing budget items in order to keep the budget structurally balanced. Two significant accounting changes occurred in 2023: creation of the workforce housing regulatory linkage fee and the housing and childcare lodging tax component. There were no significant accounting changes identified for 2024. Discussion ensued regarding the Board's interest in establishing an Environmental Sustainability Manager position, whether the position could be cost shared with other entities, and the process for establishing a position in the future. COMPENSATION & BENEFITS Director Williamson stated the annual compensation survey was conducted by Graves Consulting LLC. The 2023 market adjustment changes reflected: an update to market definitions, a restructure of pay families and ranges, a 5% market adjustment to address final market study adjustments, and 2% merit pool to move employees through the pay range. A supplemental adjustment to salaries occurred in September 2023. The final compensation study recommended a 3.0% increase across all pay families for 2024. The proposed budget also contains a 2% merit pool in 2024. Staff worked with the Town's insurance broker Brown and Brown (formerly Hays Companies) to review the Town's benefit package for 2024. She stated the budget proposal reflected an increase for medical in 2024 with the Town employee portion of the premiums increasing by 8% and the Town increasing its portion of the premiums by 15%. Spousal medical coverage would remain the same for 2024 with the inclusion of spouses that do not have access to employer coverage. Dental insurance contract signed in 2023 included an automatic 5% increase in 2024. All other benefits remaining unchanged at the time of the meeting CAPITAL IMPROVEMENT PLAN 2024 — 2028 Manager Garcia reviewed the Capital Improvement Plan (CIP) which was developed with projects submitted by departments, the Town Board completing and setting a Strategic Plan, development of the operating budget, project prioritization, and the final RECORD OF PROCEEDINGS Town Board Budget Study Session — September 28, 2023— Page 2 consideration of adoption of the CIP by the Town Board at the November 14, 2023 meeting. The CIP annual summary for 2024 was presented at $11.5 million in new projects and a total of $61.1 million over the next five years. Manager Garcia stated future years are provided in the summaries in the packet for reference and may shift depending on need and availability of funding over the next several years. GENERAL FUND The general governmental service funds (Legislative, Town Attorney, Judicial, Town Administrator, Town Clerk, Finance, Human Resources, and Workforce Housing. The 2024 budget summary reflected an estimated ending fund balance of $2,931,021. Trustee MacAlpine stated the Public Safety, Health and Environment Objective 1.A.1 to hire an Environmental Sustainability Manager had a majority of Board support in 2023 and requested the Board make the position a priority to strengthen tourism and benefit the community as a whole. Discussion ensued regarding fixed -term position versus hiring a consultant to assist in general fund projects which was a product of strategic planning discussions and would allow flexibility depending on Board direction. COMMUNITY REINVESTMENT FUND The fund includes eight projects for 2024 at a cost of $2.8 million. The 2024 Strategic Plan Initiatives resourced include the Visitor Center main door replacement, plate compactor attachment for a mini excavator, the remodel of Finance to create a centralized reception, Fall River Trail additional funding, hybrid dump utility trailer, Phase 3 of the Downtown Wayfinding Signage Plan, Museum annex building add -on and the Events Complex storage building. The completion of the street rehabilitation of 1st 2nd 3rd streets etc., was not funded in 2024 due to costs and existing projects. Staff would review sales tax revenues in 2023 and would re-evaluate after the 1A Ballot measure in April 2024. Discussion ensued regarding opportunities to fund the waterline project, including phasing the project over two or three years and pursuing grant funding to offset cost. The Board stated support for this approach. COMMUNITY CENTER FUND The 1A Sales Tax Funds are accumulated and remitted to the Estes Valley Recreation and Parks District to fund the construction of the Community Center. The sales tax would expire June 30, 2024. There were no changes or additions to the 1A sales tax. The Board may place a renew of the funding on the ballot for the regular Municipal election in April 2024. VEHICLE REPLACEMENT FUND The fund has proposed revenues of $627,508 and expenses of $889,000 to replace thirteen vehicles in 2024. There are approximately 83 units in the replacement fund schedule. Mayor Koenig requested staff considerations for low and no emission vehicles. Staff would continue to pursue opportunities for grant funding and replacement options for vehicles with low or no emissions. Mayor Koenig called a 10-minute break at 3:02 p.m. The meeting was reconvened at 3:10 p.m. OUTSIDE ENTITY FUNDING REQUESTS Analyst Simpson presented the 2024 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 2024 Request 2024 Recommendation Crossroads Ministry of Estes Park $35,000 $35,000 Estes Park Economic Development Corporation $100,000 $65,000 Estes Park Nonprofit Resource Center $31,000 $25,000 Estes Valley Crisis Advocates $24,000 $24,000 'Estes Valley Investment in Childhood Success $30,000 $30,000 [Estes Valley Watershed Coalition $25,000 $24,000 Estes Park Housing Authority - - [Estes Park Salud Foundation $26,000 $26,000 !Via Mobility Services $37,000 $37,000 RECORD OF PROCEEDINGS Town Board Budget Study Session - September 28, 2023- Page 3 Estes Arts District $29,000 $21,000 j TOTAL $337,000 $287,000 Community Initiative Funding Allocations Entity 2024 Request 2024 Recommendation Estes Land Stewardship Association $3,500 $2,786 Estes Park High School Band Boosters $4,391 $3,286 Estes Park Education Foundation $4,600 $1,643 League of Women Voters Community Recycling Committee $9,000 $4,357 Larimer County Partners $5,000 $3,929 Twister Events $13,000 - Habitat for Humanity of the St. Vrain Valley $10,000 $6,429 Estes Park Learning Place $8,004 $7,286 Estes Park Sister Cities $10,500 $5,286 TOTAL $67,995 $35,000 The Habitat for Humanity project would not be eligible for 6E funds. It was clarified, the Town did receive applications for funding from organizations which were not eligible for funding per Town policy and were removed from the funding presented to the Board. Staff requested Board direction on any changes to the policy to refine qualifications for eligible organizations. IT The internal services fund charges fees to each of the departments and has projected $973,608 in revenues and $1,134,443 in expenses for 2024. Resources items included server, phone system, and network upgrades, increased security footprint, and backup appliance hardware. 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 $550,108 in 2024. Staff highlighted the increase in charges due to increased operating and capital expenditures and an increase in police liability occurring throughout the nation. MUSEUM The Museum estimates revenues of $29,200 and expenditures of $514,308 in 2024. Facilities include the main Museum, Cobb -Macdonald Cabin and Historic Boyd building, annex building, Historic Fall River Hydroplant, and the Birch Ruins and Birch Ruins cabin. COMMUNITY SERVICES Visitor Services: The division estimates revenues of $16,000 for 2024 and $563,830 in expenses. Staff requested $20,000 to fund replacement of the Visitor Center main door. Board discussion ensued regarding the potential government shutdown and Town impacts during a Rocky Mountain National Park closure and ways to promote visitation despite the closure. Town Administrator Machalek would coordinate with Mayor Koenig to produce a letter for the congressional delegation urging representatives to do what they can to avoid a federal government shutdown. Events: The division estimates revenues of $880,000 for 2024 and $2,977,176 in expenses. Staff requested $45,000 for conceptual design and cost for the stall barns and CIP funds of $479,973 for the Events Complex storage building. Staff reviewed the changes that have occurred with bringing the Rooftop Rodeo coordination in house and stated the rodeo saw record numbers in 2023. The next Budget Study Session was scheduled for October 5, 2023. There being no further business, Mayor Koenig adjourned the meeting at 4:05 p.m. 12 4- ny Victoria Beers, Deputy Town Clerk