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HomeMy WebLinkAboutPACKET Administrative Committee 1992-12-07ADMINISTRATIVE COMMITTEE December 7, 1992 10:00 a.m. - Room 103 AGENDA 1. Amendment #1 Assumptions/Interpretations. 2. Amendment #1 Revenue/Spending Limits: A. Use of Reserves - All/None. B. Planned Reserve Usage - Enterprise Funds Included. C. Planned Reserve Usage - Enterprise Funds Excluded. D. 1992 Reserves Budget Amendments - Schedule Special Meeting. 3. 1993 Budget - Proposed Changes to Balance Budget. 4. 1993 Pay Plan. December 3, 1992 TO: FROM: MEMORANDUM Honorable Mayor Dannels and Board of Trustees Rich Widmer Assistant Town Administrator SUBJECTS: ADMINISTRATIVE COMMITTEE AGENDA DISCUSSION AMENDMENT #1 ASSUMPTIONS/INTERPRETATIONS An immense amount of information about Amendment #1 has appeared in print in the last few weeks. Staff has attended several lengthy workshops presented by the Government Finance Officers Association and the Colorado Municipal League in order to discover the latest thinking about how best to comply with the Amendment. While it will be months before all the issues are clarified, staff believes we have enough information now to make some recommendations. Town Attorney White will explain the most important assumptions and interpretations that form the basis of our recommendations for compliance actions. A copy of Amendment #1 and a brief outline of our interpretations/assumptions are included in your packet. AMENDMENT #1 REVENUE/SPENDING LIMITS Amendment #1 controls the Town's yearly spending limits by limiting the yearly growth to the previous year's inflation plus a local growth allowance. Revenue exceeding this spending limit must be refunded unless voters approve a revenue change as an offset. Any year of decreased spending or revenue levels "ratchets down" the — 1- 5.."(()(1) 586-5 3 31 • 1[1,0., [()Xi 200 • ESTES PARK, CC) 0051 7 • FAX (303) !3 86-281 (.) ADMIN tlSTR„ATO NI • FA.X (.4)3) 586-6909 Coro. 1 own ol Es1es 1[1"ank, C1ollora(1(...) 30.517 Administrative Committee Agenda -2- December 3, 1992 base the inflation and growth allowance is applied to. The Town is in a unique position with large capital expenditures in 1992 as part of its base year spending, plus the accumulation over the years of approximately $5 million in fund balances and retained earnings. Steve Jackson, the Town's auditor, will explain how the use of these funds to create reserves could be structured to delay the "ratchet -down" effects of Amendment #1 as long as possible. Several different plans will be presented. Recommendation: Recommend the Town Board adopt the necessary resolutions to implement the planned reserve usages for the 1993 budget as presented. Recommend the Town Board schedule a Special Meeting on December to consider changes in the 1992 budget regarding creation of reserves. 1993 BUDGET - PROPOSED CHANGES TO BALANCE THE BUDGET Amendment #1 requires spending to equal revenues, unless reserves are spent. Staff believes strongly compliance with Amendment #1 should begin with a balanced 1993 budget, since spending of reserves creates a long-term detrimental effect on overall spending levels. Included in your packet is a menu of possible changes that could be made to bring the budget into balance. Also shown are our recommendations on which changes should be made. Town Administrator Klaphake and Assistant Administrator Widmer will present these recommendations. Recommendation: Recommend the Town Board adopt the 1993 budget with the changes proposed and/or modified as noted. 1993 PAY PLAN Included in your packet is a memorandum from Assistant Administrator Widmer concerning the Pay Plan Committee's recommendations for the 1993 Pay Plan. Mr. Widmer will explain the recommendations in detail. Recommendation: Recommend to the Town Board adoption of the 1993 Pay Plan as presented. - 3 - Text of Amendment 1—Taxpayer's Bill of Rights (Bruce) Be it Enacted by the People of the State of Colorado: Article X, Section 20 The Taxpayer's Bill of Rights. (1) General provisions. This section takes effect December 31, 1992 or as stated. Its preferred interpretation shall reasonably restrain most the growth of government. All provisions are self-executing and severable and supersede conflicting state constitutional, state statutory, charter, or other state or local provisions. Other limits on district revenue, spending, and debt may be weakened only by future voter approval. Individual or class action enforcement suits may be filed and shall have the highest civil priority of resolution. Successful plaintiffs are allowed costs and reasonable attorney fees, but a district is not unless a suit against it be ruled frivolous. Revenue collected, kept, or spent illegally since four full fiscal years before a suit is filed shall be refunded with 10% annual simple interest from the initial conduct. Subject to judicial review, districts may use any reasonable method for refunds under this section, including temporary tax credits or rate reductions. Refunds need not be proportional when prior payments are impractical to identify or return. When annual district revenue is less than annual payments on general obligation bonds, pensions, and final court judgments, (4) (a) and (7) shall be suspended to provide for the deficiency. (2) Term definitions. Within this section: (a) "Ballot issue" means a non -recall petition or referred measure in an election. (b) "District" means the state or any local government, excluding enterprises. (c) "Emergency" excludes economic conditions, revenue shortfalls, or district salary or fringe benefit increases. (d) "Enterprise" means a government -owned business authorized to issue its own revenue bonds and receiving under 10% of annual revenue in grants from all Colorado state and local governments combined. (e) "Fiscal year spending" means all district expenditures and reserve increases except, as to both, those for refunds made in the current or next fiscal year or those from gifts, federal funds, collections for another government, pension contributions by employees and pension fund earnings, reserve transfers or expenditures, damage awards, or property sales. (f) "Inflation" means the percentage change in the United States Bureau of Labor Statistics Consumer Price Index for Denver -Boulder, all items, all urban consumers, or its successor index. (g) "Local growth" for a non -school district means a net percentage change in actual value of all real property in a district from construction of taxable real property improvements, minus destruction of similar improvements, and additions to, minus deletions from, taxable real property. For a school district, it means the percentage change in its student enrollment. (3) Election provisions. (a) Ballot issues shall be decided in a state general election, biennial local district election, or on the first Tuesday in November of odd -numbered years. Except for petitions, bonded debt, or charter or constitutional provisions, districts may consolidate ballot issues and voters may approve a delay of up to four years in voting on ballot issues. District actions taken during such a delay shall not extend beyond that period. (b) 15-25 days before a ballot issue election, districts shall mail at the least cost, and as a package where districts with ballot issues overlap, a titled notice or set of notices addressed to "All Registered Voters" at each address of one or more active registered electors. Titles shall have this order of preference: "NOTICE OF ELECTION TO INCREASE TAXES/TO INCREASE DEBT/ON A CITIZEN PEITTION/ON A REFERRED MEASURE." Except for district voter -approved additions, notices shall include only: (i) The election date, hours, ballot title, text, and local election office address and telephone number. (ii) For proposed district tax or bonded debt increases, the estimated or actual total of district fiscal year spending for the current year and each of the past four years, and the overall percentage and dollar change. (iii) For the first full fiscal year of each proposed district tax increase, district estimates of the maximum dollar amount of each increase and of district fiscal year spending without the increase. (iv) For proposed district bonded debt, its principal amount and maximum annual and total district repayment cost, and the principal balance of total current district bonded debt and its maximum annual and remaining total district repayment cost. (v) Two summaries, up to 500 words each, one for and one against the proposal, of written comments filed with the election officer by 30 days before the election. No summary shall mention names of persons or private groups, nor any endorsements of or resolutions against the proposal. Petition representatives following these rules shall write this summary for their petition. The election officer shall maintain and accurately summarize all other relevant written comments. (c) Except by later voter approval, if a tax increase or fiscal year spending exceeds any estimate in (b) (iii) for the same fiscal year, the tax increase is thereafter reduced up to 100% in proportion to the combined dollar excess, and the combined excess revenue refunded in the next fiscal year. District bonded debt shall not issue on terms that could exceed its share of its maximum —4— repayment costs in (b) (iv). Ballot titles for tax or bonded debt increases shall begin, "SHALL (DISTRICT) TAXES BE INCREASED (first, or if phased in, final, full fiscal year dollar increase) ANNUALLY...?" or "SHALL (DISTRICT) DEBT BE INCREASED (principal amount), WITH A REPAYMENT COST OF (maximum total district cost)...?" (4) Required elections. Starting November 4, 1992, districts must have voter approval in advance for (a) Unless (1) or (6) applies, any new tax, tax rate increase, mill levy above that for the prior year, valuation for assessment ratio increase for a property class, or extension of an expiring tax, or a tax policy change directly causing a net tax revenue gain to any district. (b) Except for refinancing district bonded debt at a lower interest rate or adding new employees to existing district pension plans, creation of any multiple -fiscal year direct or indirect district debt or other financial obligation whatsoever without adequate present cash reserves pledged irrevocably and held for payments in all future fiscal years. (5) Emergency reserves. To use for declared emergencies only, each district shall reserve for 1993 1% or more, for 1994 2% or more, and for all later years 3% or more of its fiscal year spending excluding bonded debt service. Unused reserves apply to the next year's reserve. (6) Emergency taxes. This subsection grants no new taxing power. Emergency property taxes are prohibited. Emergency tax revenue is excluded for purposes of (3) (c) and (7), even if later ratified by voters. Emergency taxes shall also meet all of the following conditions (a) A 2/3 majority of the members of each house of the general assembly or of a local district board declares the emergency and imposes the tax by separate recorded roll call votes. (b) Emergency tax revenue shall be spent only after emergency reserves are depleted, and shall be refunded within 180 days after the emergency ends if not spent on the emergency. (c) A tax not approved on the next election date 60 days or more after the declaration shall end with that election month. (7) Spending limits. (a) The maximum annual percentage change in state fiscal year spending equals inflation plus the percentage change in state population in the prior calendar year, adjusted for revenue changes approved by voters after 1991. Population shall be determined by annual federal census estimates and such number shall be adjusted every decade to match the federal census. (b) The maximum annual percentage change in each local district's fiscal year spending equals inflation in the prior calendar year plus annual local growth, adjusted for revenue changes approved by voters after 1991 and (8) (b) and (9) reductions. (c) The maximum annual percentage change in each district's property tax revenue equals inflation in the prior calendar year plus annual local growth, adjusted for property tax revenue changes approved by voters after 1991 and (8) (b) and (9) reductions. (d) If revenue from sources not excluded from fiscal year spending exceeds these limits in dollars for that fiscal year, the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Initial district bases are current fiscal year spending and 1991 property tax collected in 1992. Qualification or disqualification as an enterprise shall change district bases and future year limits. Future creation of district bonded debt shall increase, and retiring or refinancing district bonded debt shall lower, fiscal year spending and property tax revenue by the annual debt service so funded. Debt service changes, reductions, (1) and (3) (c) refunds, and voter -approved revenue changes are dollar amounts that are exceptions to, and not part of, any district base. Voter -approved revenue changes do not require a tax rate change. (8) Revenue limits. (a) New or increased transfer tax rates on real property are prohibited. No new state real property tax or local district income tax shall be imposed. Neither an income tax rate increase nor a new state definition of taxable income shall apply before the next tax year. Any income tax law change after July 1, 1992 shall also require all taxable net income to be taxed at one rate, excluding refund tax credits or voter -approved tax credits, with no added tax or surcharge. (b) Each district may enact cumulative uniform exemptions and credits to reduce or end business personal property taxes. (c) Regardless of reassessment frequency, valuation notices shall be mailed annually and may be appealed annually, with no presumption in favor of any pending valuation. Past or future sales by a lender or government shall also be considered as comparable market sales and their sales prices kept as public records. Actual value shall be stated on all property tax bills and valuation notices and, for residential real property, determined solely by the market approach to appraisal. (9) State mandates. Except for public education through grade 12 or as required of a local district by federal law, a local district may reduce or end its subsidy to any program delegated to it by the general assembly for administration. For current programs, the state may require 90 days notice and that the adjustment occur in a maximum of three equal annual installments. • Received by Secretary of State, May 8, 1991. Retyped from the original by Legislative Council staff, June 23,1992 and by CML July 29,1992. —5— December 1, 1992 AMENDMENT #1 INTERPRETATIONS/ASSUMPTIONS 1. The earliest election can occur in November, 1993 and every November thereafter, plus standard elections in April of every even numbered year. 2. The local growth allowance for 1993 will be calculated as follows: 3.3% for CPI, and "zero" for local growth. 3. Accrual Basis in lieu of Cash Basis Accounting will be utilized by the Town. 4. All future lease purchases will be capitalized; existing lease purchases are now part of the spending base. 5. The emergency reserve figure will be 3% in 1992 and will be funded from the Catastrophic Loss Fund. 6. As the Light and Power and Water Funds cannot issue their own revenue bonds, said funds will not be considered as "Enterprise Funds" as defined in the Amendment. 7. Portions of Fund Balances will be reserved for future expenditures. These reserves are counted as spending in the year set aside, but are not counted in the expenditure limit in the year actually spent. 8. EPURA will be considered a separate entity ("District"); may be subject to Amendment 1; and the Reserve will be listed as a "total" dollar amount. BALANCED BUDGET CUTS 12/.3/92 BUDGET CUT MENU 0!NLRAL PU3aD TOTAL AMOUNT STAFF RECOMMENDATIONS BASIC COMMUNITY "EXTRA" TOTAL SERVICES SERVICES SERVICES CUTS L . Salary Cont (5'1, to 4.@5X) Delete Surplus Cont 15,003 70,000 15,000 70,000 15,000 70,@@@ Education/Trainino 4. Board Room microphones 24,5@@ 750 72700 7,700 @ Sister City program 6. 7. ❑ . Advertising Zoning/Sub Plat Reviews Senior Center funding ,000 5"4,871 9,4000 3,@00 85,600 3,000 851600 5,@@@ @ 11. Larimen Cty Human Sery Arts Support RSVP 8,400 25,@@0 2,500 12. 13. Ambulance support PACK 14. E.P. Trolley Corp 4,000 2,500 60,@@@ 17,500 4,000 2,500 40,000 17,5@@ 4,000 L . 5@0 40,000 15, Seasonal Police (8 to 4) 16. Street Clean/Plow O./T 151@@@ 15,000 2,500 @ 2,500 17. 18. 1. Entry Signs Design Clean-up Week (Discontinue) Park Workers (10 to 5) 20. 21. Park supplies Chamber roof iL. L � . L T. nc U. Museum roof Museum landscaping Museum sign Conf Ctr- Reduce adv 26, ;o 29. CC - Reduce Mtis/Supplies CC -. Reduce Ed/Training r CC - Reduce Dues/Subs -- Reduce Sales Dir • 34. T C 36. 7. 38, CC -- Outdoor sign Spec Ev Seasonal (6 to 3) Spec v ADA Blacktop Spec Ev Dump Truck Spec Ev Misc Equipment Spec Ev New Events Spec Ev Existing Events Spec Ev - Reduce Ed/Train Spec Ev -- Reduce purses TOTAL GENERAL FUND 1,5@'t0 1,'0000l 25,000 15,000 7,000 8,000 4,80 41:0001 5, 000 121000 9,050 3,000 -,5s00 2,5@'@ 111000 15,000 21,600 18,200 14,000 1,000 4,800 4,000 1,500 1,000 2,010 4,400 1,500 5@@ 2 , 900 2,000 1,500 11000 B 0 ►� @ 4,000 1,000 2.00s00 41400 1,500 3,500 2,500 2,000 s@ 0 r925LJ 1�1 1,775 0 14,000 79 905 L J 1,775 1,00@ 141000 i 71925 1,775 1,300 984,071 31,200 32,800 242,000 306,000 BUDGET CUT MENU TOTAL AMOUNT STAFF RECOMMENDATIONS BASIC COMMUNITY "EXTRA" TOTAL SERVICES SERVICES SERVICES CUTS WATER FUND �^ 3. 4. 5. Salary Cont (5% to 4.05%) Delete Surplus Coot Reduce Ed/Training Fall River ll Devils Gulch 6. 7. B. 1993 Looping Fall River/Devils Design Loop Design TOTAL WATER FIND 41000 251000 750 3101900 501000 1501000 46.600 22,500 4, 000 750 41000 25)000 251000 750 310000 3101900 50`000 50,000 35,550 351550 46/600 461600 5,500 5,500 580,000 4,750 0 47J`550 478,300 LIGHT & POWER FUND 1. 2. 3. Salary Cbnt (5% to 4,05%) Delete Surplus Cont Reduce Ed/Training 71500 351 000 1,500 71500 35 000 , 7`5Q0 351000 0 4. Other Revenue - Increase 5, 6. Purchased Power - Reduce Dist O & M - Reduce 7. 8. Admin & Gen - Reduce Cap Plant/Equip - Reduce TOTAL L & P FUND 60,000 199,400 5 1000 49`500 230,000 587,900 601000 199,400 5,000 491500 321,400 0 60`000 199,400 5,000 49`500 1861300 186,300 221,300 542`700 NOTES. 1. Goal for General Fund is to cut $203,000 to balance funds + $103,000 for lease -purchase items (street sweeper & 2 copiers) = $306,000 total. 2. 3. Goal for Water Fund is to cut $478,300 to balance fund. Goal for Light & Power Fund is to cut $542,700 to bal�nce fund. 4. General Fund Item 1: Pay Committee request is for a total of 4.05% in pay increases. 5. General Fund Item 3: Option total shown would decrease town board travel by one out-of-state conference per board member and staff by one in -state conference per employee~ Option recommended would decrease staff by one in -state conference per empioyee. 6. General Fund Item 10: Option shown would freeze art support at past levels of $7,500 and reduce budgeted contingency by :t17,500. 7. General Fund Item 14� Option shown would limit transportation fuuding to prior level of subsidy for the existing trolley program and delete support for conference transportation and park and ride. B. General Fund Item 16: Option recommended would change snowplowing operations to begin plowing at 6 am instead of 4 am. 9. General Fund Item 35: New events cut are: Kite Festival ($4,500), Bike Festival ($5,500)' and October Fest ($4,000). 10, GenerEAl Fund Item 36: Existing events reduced are: Art/Jazz Walt ($4,000 to $2°000), Valentines ($2,000 to 0), Rodeo concert ($2v500), and Wool Market ($1,425). 11. Beneral Fund Item 3B: Purses reduced are: Hunter -Jumper (500), Arabian (500}, Quarter Horse (300). 12. L & P Fund Item 7: Items reduced are: Clerical Aide (13,000)v Outside Services (10«000), Energy Efficiency (4,000)° Training (3,000), Decorations (19,500). 13. L & P Fund Item B: Items reduced are.- Substation site (30,000), Building Remodel (3~500), Office Equipment (14,300), Data processing Equipment (500), Communication Equipment (2,000), L�b Equipment (2,500), Shop Equipment (500)v Stores Equipment (500), Meter VHhicle (15,500), Other Machinery (2,500), Station Equipment (9,500), Street Lighting (10°000), PczIe!si/Towers (35r000), Overhead Lines (65,000), Underground Lines (added 10r000). p00 ,,(0,•;;P0 P40, 1.',//./PPP(P0,1[1, 0,b,„,. , „p00.0,20p„poPf , • p •)•- N040,0,14p), e04 December 1, 1992 TO: / MEMORANDUM Honorable Mayor Dannels and Board of Trustees Gary F. Klaphake, Town Administrator FROM: Rich Widmer Assistant Town Administrator SUBJECT: 1993 PAY PLAN ADVISORY COMMITTEE RECOMMENDATIONS The Pay Plan Advisory Committee, composed of Linda Hinze, Richard Matzke, Randy Repola, Dan Speedlin, Steve Stamey, and myself, has completed its research into the Town's 1993 Pay Plan. Research was conducted by reviewing Colorado Municipal League data, and by contacting other communities, organizations, and employers, public and private. The Committee's recommendations for the 1993 Pay Plan follow: 1. Salary Adjustments. The Committee recommends that merit increases be suspended until 1994. Under this proposal, evaluations would be performed during November and December 1993, and merit raises would become effective with the first pay period in 1994, subject to Town Board authorization in 1993. This would allow the evaluations to be conducted during a less hectic part of the year, and would eliminate the cumulative effect of spacing raises six months apart. The Committee recommends a market adjustment effective the first pay period of 1993 for all salary grades as follows: Grade 13 and below: 4.5% Grade 14 and above: 3.5% -10- (3013) 05436-5 331 .6 P.O. BOX 1 2 ES-11,...S PARK., CO 8 05"..fi FAX (.303 ), 86-281 Co Al.., • 0 IN P,PPFRA11-110 10::AX (.101.P. 8 (p 0•••()96,0009 (0),"11-11 11-( c»1 [sites Rark, Collormio Pay Plan Recommendations -2- December 1, 1992 The net payroll increase under this recommendation would be 3.8%. In addition, the Committee recommends 0.25% be reserved for an achievement award pool, for a total payroll increase of 4.05%. Under existing Town policy, Achievement Awards may be given by each department head in an amount not to exceed $200 for such things as major educational improvement or certifications, suggestions, safety records, temporary assumption of greater responsibilities, and service "above and beyond" normal job activities. 2. Benefit Changes. The Committee proposes two changes in the Town's benefit package: A. Add one additional holiday, specified as a floating holiday that may be taken at any time during the year with the supervisor's approval. This would give Town employees a total of ten holidays per year. The CML average is 85 hours (10.6 days) per year. B. Adjust the schedule for annual leave by changing the years of service required for 10 hours earned per month from 11 through 15 to 8 through 15. The CML average for 70 cities is 120.3 hours per year earned during the seventh year of service. Most local employers surveyed give three weeks' vacation after five years of service. This change would provide additional vacation benefits to fourteen Town employees in 1993. These recommendations will keep our pay grades and benefits competitive with the market, and are consistent with good management practices and our organizational values.