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PACKET Town Board 2024-10-08
The Mission of the Town of Estes Park is to provide high-quality, reliable services for the benefit of our citizens, guests, and employees, while being good stewards of public resources and our natural setting. BOARD OF TRUSTEES - TOWN OF ESTES PARK Tuesday, October 8, 2024 7:00 p.m. ACCESSING MEETING TRANSLATIONS (Accediendo a las Traducciones de la Reunión) To access written translation during the meeting, please scan the QR Code or click this link for up to 48 other languages (Para acceder a la traducción durante la reunión, par favor escanee el código QR o haga clic en el enlace para hasta 48 idiomas más): https://attend.wordly.ai/join/UOFH-5928 Choose Language and Click Attend (Seleccione su lenguaje y haga clic en asistir) Use a headset on your phone for audio or read the transcript can assist those having difficulty hearing (Use un auricular en su teléfono para audio o lea la transcripción puede ayudar a aquellos que tienen dificultades para escuchar). The Town of Estes Park will make reasonable accommodations for access to Town services, programs, and activities and special communication arrangements for persons with disabilities. Please call (970) 577-4777. TDD available or use the link above to access audio or read the transcript. ADVANCED PUBLIC COMMENT By Public Comment Form: Members of the public may provide written public comment on a specific agenda item by completing the form found at https://dms.estes.org/forms/TownBoardPublicComment. The form must be submitted by 12:00 p.m. the day of the meeting in order to be provided to the Town Board prior to the meeting. All comments will be provided to the Board for consideration during the agenda item and added to the final packet. PLEDGE OF ALLEGIANCE. (Any person desiring to participate, please join the Board in the Pledge of Allegiance). RECOGNITION. Larimer County Sheriff John Feyen. AGENDA APPROVAL. PUBLIC COMMENT. (Please state your name and address). TOWN BOARD COMMENTS / LIAISON REPORTS. TOWN ADMINISTRATOR REPORT. CONSENT AGENDA: 1.Bills. 2.Town Board Meeting and Study Session Minutes dated September 24 and Joint Town Board and County Commissioners Study Session Minutes dated September 9, 2024. 3.Audit Committee Minutes dated September 23, 2024. Prepared 2024-09-27 *Revised NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared. 4. Estes Park Board of Adjustment meeting minutes dated August 6, 2024 (acknowledgment only). 5. Transportation Advisory Board Minutes dated August 21, 2024 (acknowledgment only). ACTION ITEMS: 1. 2025 VISIT ESTES PARK OPERATING PLAN. Town Administrator Machalek. To consider the plan per the terms of the intergovernmental agreement with Larimer County for the formation of the Local Marketing District. 2. ORDINANCE 14-24 AMENDING CHAPTER 9.40 OF THE ESTES PARK MUNICIPAL CODE REGARDING FIREARMS IN TOWN HALL. Town Administrator Machalek. To consider an amendment to the Estes Park Municipal Code regarding the carrying of firearms in Town Hall related to the passing of SB24-131. 3. ACCEPT DELIVERY OF THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDING DECEMBER 31, 2023. Director Hudson & Manager Garcia. To consider formally accepting the report as required by state statutes. 4. APPOINTMENT OF HAYNIE & COMPANY TO PERFORM THE AUDIT OF THE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING DECEMBER 31, 2024. Director Hudson & Manager Garcia. The Town is required to have an annual audit of its Annual Comprehensive Financial Report (ACFR), this action would be the fifth year of a five-year engagement with Haynie & Company. 5. REVISED TOWN BOARD GOVERNING POLICIES. Town Administrator Machalek. To consider revisions to ensure the policies stay relevant and are well-suited to aid the Board with governing responsibilities. REPORTS AND DISCUSSION ITEMS: 1. APPLICATION FOR ADVANCE COLORADO BROADBAND GRANT FUNDING THROUGH THE BROADBAND EQUITY, ACCESS AND DEPLOYMENT (BEAD) PROGRAM. Director Bergsten, Customer Service Manager Smith, and Superintendent Lockhart. Notification of intent to apply for grant funding and required match. 2. NOISE ORDINANCE. Town Administrator Machalek. Continued discussion of updates to the Town's noise ordinance. ADJOURN. Town of Estes Park, Larimer County, Colorado, September 24, 2024 Minutes of a Regular meeting of the Board of Trustees of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Town Hall in said Town of Estes Park on the 24th day of September, 2024. Present: Gary Hall, Mayor Marie Cenac, Mayor Pro Tem Trustees Bill Brown Kirby Hazelton Mark Igel Frank Lancaster Cindy Younglund Also Present: Travis Machalek, Town Administrator Jason Damweber, Deputy Town Administrator Dan Kramer, Town Attorney Jackie Williamson, Town Clerk Absent: None Mayor Hall called the meeting to order at 7:08 p.m. and all desiring to do so, recited the Pledge of Allegiance. AGENDA APPROVAL. It was moved and seconded (Hazelton/Younglund) to approve the Agenda, and it passed unanimously. PUBLIC COMMENTS. Joanie Crockett/Town resident commented on the neighboring commercial property that once was a quiet operation and has since added an outdoor venue that now hosts four to five weddings a weekend and increased noise for the adjacent neighborhood. Steve Krueger/Town resident and Director of Restoration Ranch Colorado thanked Mayor Hall, Trustee Igel and Peggy Young for their support of the first responder day at this year’s Scotsfest. He further thanked members of the Police and the Fire department for assisting and attending this year’s event. The Estes Park Noon and Sunrise Rotary have planned a visit to the Ranch to see firsthand the work being done at the ranch. John Guffey/Town resident stated he appreciated the conversation at the study session related to noise. He spoke to the need for the Town, its citizens and guests to respect and care for the natural environment and ecosystem of the valley. Laura Rustin/Town resident commented on the three initiated ordinances submitted by members of Protect Estes Park (PEP) for review and approval by the Town Clerk that were rejected to their form. She stated concern with the summaries provided by the Town Clerk commenting they are confusing and shrouded in legalese. She further stated the ballot question at the April Municipal Election was confusing and PEP suspects due to the language individuals did not vote on the question which failed by less than 100 votes. TRUSTEE COMMENTS. Trustee comments were heard and summarized: Trustee Brown and Attorney Kramer attended a CML municipal law seminar; Trustee Brown clarified his wife owns The Estes Voice and that he has no ownership; the Town’s Finance Director generally has access to the monthly sales tax information from the state 45 days after the end of the month, Town staff analysis and generates a report approximately 10 days later, and that the raw monthly sales tax figure can be released prior to the analysis at an individual’s request; the month of October recognizes Conflict Resolution and citizens were encouraged to get involved with programs organized by Restorative Justice and the Estes Valley Library; Visit Estes Park (VEP) held a joint study session with the Larimer County Commissioners DR A F T Board of Trustees – September 24, 2024 – Page 2 and Estes Park Town Board to receive comments on their 2025 operating plan; VEP held a special meeting to discuss the organization’s board governance, sunshine law, and how to build consensus; the next VEP meeting would consider the selection of SearchWide Global to recruit for the next VEP Executive Director/CEO, the approval of the revised 2025 operating plan, and contract consideration for the interim Executive Director/CEO; discussion on the development of a dementia daycare service to provide respite to caregiver has begun; Sister Cities would hold their annual meeting and fund drive and all were encouraged to attend; Audit Committee meet to discuss the 2023 audit report to be presented to the Town Board at the October 8, 2024 meeting; the community was encouraged to get the latest COVID vaccine and to take precautions; the Planning Commission met and reviewed upcoming changes to the development code; the Estes Valley Water Coalition met and commented on the need to update the wildlife regulations within the development code; Transportation Advisory Board (TAB) met and received a report on improvements to river capacity, and reviewed the Visitor Center parking lot redesign to address the interface of passengers and transit; Police Auxiliary are preparing to address wildlife interactions and to increase enforcement of wheeled objects on downtown sidewalks; the Board and the community need to be clear on the difference between workforce housing versus affordable housing during housing conversations; there are a few items that need to be addressed now that the Loop has been completed; and the Public Works and Police personnel were thanked for their efforts during the Loop construction. TOWN ADMINISTRATOR REPORT. Town Administrator Machalek noted he had nothing to report. CONSENT AGENDA: 1. Bills. 2. Town Board Meeting and Study Session Minutes dated September 10, 2024. 3. Planning Commission minutes dated August 20, 2024 (acknowledgment only). It was moved and seconded (Igel/Brown) to approve the Consent Agenda, and it passed unanimously. ACTION ITEMS: 1. RESOLUTION 76-24 CONCERNING THE ESTES PARK HOUSING AUTHORITY AND ITS HOUSING REVENUE NOTES REGARDING THE FALL RIVER VILLAGE PROJECT. The Estes Park Housing Authority (EPHA) entered into a contract to purchase the Fall River Village development consisting of 90 units to be used as workforce housing with a closing scheduled for September 27, 2024. The Town Board approved Resolution 67-24 committing the workforce housing regulatory linkage fee funds, and potentially 6E lodging tax extension funds to assist EPHA with the debt service for the $40 million loan. The financing structure requires the Town to approve a moral obligation resolution to ensure the debt would be paid off by EPHA, the Town would back the obligation by ensuring Town funds would be used to purchase the property, and should EPHA debt service drop below an identified level, the Town would be expected, but not required, to make up the deficit. The Town could risk its credit rating being impacted if the Town were to decline to cover the deficit, and would thereby be viewed negatively in the financial market, and could lead to a downgrade of the Town’s issuer credit rating, and impact the Town’s ability to borrow in the future. The closing would be contingent on the Town’s approval of Resolution 76-24. Peter Levine/Estes Park Housing Authority noted the Authority would assume operations of the property on November 18, 2024 and begin leasing units on December 1, 2024. He reviewed a financial presentation noting a current financial gap of $2.425 million at a 1.12% debt ratio. A number of items impacted the current gap, including Prop 123 funding increasing to $7 million, confirming a tax exempt interest rate with a high of 4%, and one lender to avoid mezzanine debt. The debt service reserve must contain one year principal and interest at approximately $1.4 DR A F T Board of Trustees – September 24, 2024 – Page 3 million. The debit service would be funded with rental revenues, workforce housing regulatory linkage fees, and 6E funds for housing. The risk to the Town related to debt service would be low and there remains a significant buffer in funding previously dedicated by the Town Board through the approval of the previous Resolution 67-24. Town Board comments and questions were heard and summarized: questioned why the Board could not vote to approve the debt service rather than the moral obligation; concerned how this may impact Tabor, questioned the timing of the sell of the upper units to assist with the debt service; and questioned if the financing method has been commonly used for these types of projects. It was moved and seconded (Hazelton/Cenac) to approve Resolution 76-24, and it passed with Trustee Igel voting “No”. REQUEST TO ENTER EXECUTIVE SESSION: It was moved and seconded (Hazelton/Younglund) to approve entering into Executive Session for the purposes of receiving legal advice on specific legal questions per CRS Section 24-6-402(4)(b) - Petitions for Initiated Ordinances Regarding the Estes Park Development Code., and it passed unanimously. The Board entered Executive Session at 8:22 p.m. and concluded at 9:20 p.m. Whereupon Mayor Hall adjourned the meeting at 9:21 p.m. Gary Hall, Mayor Jackie Williamson, Town Clerk DR A F T Town of Estes Park, Larimer County, Colorado September 24, 2024 Minutes of a Study Session meeting of the TOWN BOARD of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in the Board Room in said Town of Estes Park on the 24th day of September, 2024. Board: Mayor Hall, Mayor Pro Tem Cenac, Trustees Brown, Hazelton, Igel, Lancaster, and Younglund Attending: Mayor Hall, Trustees Brown, Hazelton, Igel, Lancaster, and Younglund Also Attending: Town Administrator Machalek, Town Attorney Kramer, and Deputy Town Clerk Beers Absent: None Mayor Hall called the meeting to order at 5:30 p.m. USE OF 6E FUNDS FOR TUITION ASSISTANCE. Tuition Assistance has been prioritized within the framework of 6E funding and identified as a key element to stabilizing and building childcare capacity within the Estes Valley. Manager Bangs stated through efficiently layering subsidies and tuition assistance programs, childcare providers could increase revenue by charging tuition at or close to the actual cost of care. Providers are currently unable to establish fees at a rate to recover the actual cost of care. Highlights of the Estes Valley current childcare landscape through the Estes Valley Childcare Needs Assessment reflected: nearly half of families in the school district are considered “low-income”; the majority of families work in education, health, or social assistance; approximately 100 children in middle- income, working families need childcare; 62% of parents with children under six (6) both work; and 93% of survey respondents who did not have their child enrolled in care, said, they would if the care was available at a cost they could afford,. Current demand for infant, toddler and preschool identified a lack of supply for each age group. The Larimer County Childcare Fund (LCCF) was established to serve households with an income greater than the Colorado Childcare Assistance Program (CCAP) supports. Through collaboration with the Early Childhood Council of Larimer County (ECCLC), the Town could build upon the existing platform and allocate grant funds to increase the eligibility of middle-income working families to receive assistance. She reviewed a middle-income level model, the existing programs available to families for care funding, and programs established in other communities including Boulder, Aspen and Breckenridge. She highlighted the importance of transparency and access to information for use of 6E funds. Staff sought Board feedback on prioritizing the use of $50,000 in Buell grant funds for cost modeling and to develop a program in collaboration with the ECCLC. Rut Miller/EVICS Executive Director, Angelina Kirkpatrick/EVICS Program Director, and Kylie Myers/EVICS Childcare Resource Specialist spoke regarding the use of a new application and data collection software; EVICS’ efforts in serving families with an 80% AMI and have systems in place to expand the program further; EVICS would not administer a platform fee or startup cost if they administer the tuition assistance program; how their co-pay calculation methods consider individual family needs versus a flat percentage to better suit the needs of the community; and they contract with family, friend and neighbor care who provide weekend care for families. Director Miller spoke regarding the support of ECCLC and identified barriers with the BridgeCare software which serves Larimer County. Board comments and questions have been summarized: Clarification was requested on whether 6E funds can be used for families who work outside of the Estes Valley; how the barriers with the Larimer County BridgeCare software impacts the partnership with DR A F T Town Board Study Session – September 24, 2024 – Page 2 ECCLC; how staff identified the cost of care figure; how providers are absorbing the loss in income; what the total cost of making care affordable for the entire community; and if the Board wants funds to go to licensed or non-licensed providers. The Board was in support of utilizing Buell grant funds toward cost modeling and to develop a program. NOISE ORDINANCE. Town Administrator Machalek stated over the past year, the Town has received feedback from members of the public expressing concerns with the current noise ordinance. Specific concerns include the lack of quantitative decibel standard, the ability of the Town engineer to issue permits for overnight construction work instead of the Town Board, and the lack of enforcement of the unreasonable noise standard. Staff were directed by the Board to explore options for making changes to the Town’s existing noise regulations. At the June 11, 2024 study session, the Board indicated continued support for a hybrid approach to noise enforcement, utilizing both an unreasonable noise standard and a decibel-based standard. They also stated support in moving the responsibility for approving overnight construction work permits to the Town Board. Staff presented three options and requested Board feedback. • Use the limits described in State Law Section 25-12-103 C.R.S., measured 25 feet from the property line during the hours of 7:00 a.m. to 7:00 p.m. for residential zone districts at 55 decibels, commercial zone district at 60 decibels, light industrial zone district at 70 decibels and industrial zone district at 80 decibels with a decrease of five (5) decibels for each zone district during the hours of 7:00 p.m. to 7:00 a.m. • Use the limits from the Town’s last decibel-based ordinance (2016), measured 25 feet from the property line regardless of zone district and hours of the day at 80 decibels. • Articulate different limits based on Town Board judgement. A Decibel Level Comparison Chart from the American Academy of Audiology was provided for reference. In addition, staff requested Board interest in: replacing blanket exception for “Town authorized or sponsored events, including, but not limited to, parades, fireworks, displays, concerts, and events at Stanley Park, Bond Park, or Performance Park”, with a requirement for annual approval of these exceptions by the Board; establishing a variance process which would allow the Board to consider exceptions to the noise ordinance; establishing specific decibel-based limitations on waste collection or the use of domestic power tools and/or lawn and garden equipment; establishing an escalating fine structure for multiple tickets within a one-year period and any other new provisions not identified. Decibel-based enforcement would require investment in both decimeters and training. Staff stated any noise regulations should create a balance between residential areas and commercial operations and highlighted other municipalities with decibel noise regulations continue to issue the majority of tickets using the measurement of unreasonable noise. Board comments and questions have been summarized: whether staff foresee the Police Department taking more proactive approach in addressing noise; it was requested staff retrieve data on noise violations including repeat offenders; if enforcement had increased since the beginning of these discussions; concerns were heard for the level of wind noise at 5 mph and support was heard for using 15 mph wind considerations; value of measuring from the complaint’s property versus 25 feet from the noise infraction; defining the measurement of decibel limits at the receiving property based on the limits in that location; and majority support was heard to change the hours to 10:00 p.m. or 11:00 p.m.; majority support was heard to change variance approval to the Town Board; the Board was split on moving variance approval from the Town Engineer; support was heard for the Board approving Town sponsored events annually; questioned how staff would calculate and measure the wind component; duration of the noise may be a factor in determining unreasonable noise; exception for power tools during daytime hours; goals and opportunity to incentivize changes in behavior; comments were heard regarding the location of residential properties near commercial DR A F T Town Board Study Session – September 24, 2024 – Page 3 operations; and clarification was requested on exceptions to emergencies and escalation for repeat offenders. The Board was in agreement to schedule a report and discussion item at the October 8, 2024 regular meeting to further discuss the noise ordinance. FUTURE STUDY SESSION AGENDA ITEMS. Town Administrator Machalek requested and it was determined the Noise Ordinance discussion would be scheduled as a Report and Discussion item at the October 8, 2024 regular meeting, the Rooftop Rodeo Update would be scheduled for October 22, 2024, the Multimodal Transportation and Transit Development Plans for November 26, 2024 and Visit Estes Park Dark Skies Initiative on December 10, 2024. COMMENTS & QUESTIONS. The public in attendance for the Noise Ordinance were encouraged to provide public comment during the beginning of the regular meeting. There being no further business, Mayor Hall adjourned the meeting at 6:56 p.m. Bunny Victoria Beers, Deputy Town Clerk DR A F T Town of Estes Park, Larimer County, Colorado September 9, 2024 Minutes of a Joint Study Session meeting of the ESTES PARK TOWN BOARD and LARIMER COUNTY COMMISSION of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in the Board Room in said Town of Estes Park on the 9th day of September, 2024. Board: Mayor Hall, Mayor Pro Tem Cenac, Trustees Brown, Hazelton, Igel, Lancaster, and Younglund County Commission: Chair Kefalas, Commissioners Stephens and Shadduck- McNally Attending: Mayor Hall, Mayor Pro Tem Cenac, Trustees Brown, Hazelton, Igel, Lancaster, and Younglund Also Attending: Member of the Visit Estes Park Board and Staff, Town Administrator Machalek, Deputy Town Administrator Damweber, Town Attorney Kramer, and Deputy Town Clerk Beers Absent: None Mayor Hall called the meeting to order at 5:00 p.m. VISIT ESTES PARK (VEP) OPERATING PLAN VEP Chief Strategy Officer (CSO) Cindy Mackin presented organizational updates and 2025 Visit Estes Park Operating Plan. Interim Chief Executive Officer (CEO) Zumbaugh and Board Chair Jurgens were available for questions and clarifications. Highlights of the presentation included: marketing efforts to support businesses affected by construction, construction resources for guests and content created for navigating downtown; ads promoting businesses impacted by construction; the Extended Locals Campaign – Staycation ads; Estes Inspired Storytelling initiative; efforts to encourage guests to shop local; the Thank You initiative; Destination Stewardship Plan; Outdoorist Oath event sponsorship; Colorado Tourism Office photoshoot; media coverage highlights; social media highlight with Lily Yu; regional partnerships with Explore Noco; and extending the season with the 36-foot LED light infused pine tree and new Skijor event scheduled for January 2025. The 2025 Operating Plan and highlights included: building a better future; the importance of the Destination Stewardship program; mission, vision and values; organizational stewardship imperatives; partners; and brand attributes which are community oriented, sustainable, educational, inclusive, accessible, and data and tech driven. She reviewed thoughtful messaging for an evolving Travel Landscape and deciding factors. Target audiences and demographics were reviewed for overall interests and varied seasonal visitation. She reviewed the geographic focus to identified where VEP advertises with 70% out of state, 50% primary, and 20% secondary. She further reviewed measurements for success and stated VEP continues to identify ways to measure tax revenue along with occupancy specifically related to the advertising. She reviewed marketing focuses for advertising, public relations, social media, website, national publication spots and the use of an artificial intelligence (AI) travel planner. VEP continues exploring options for extending the season, goals and opportunities to create other ancillary events to support and join existing marketing efforts. She spoke regarding the key organizational goals for marketing for marketing impressions, website views, bookings with lodging partners, expanding travel planner engagements and integrate messaging which includes sustainability, inclusion and efforts to preserve community character at all levels of guest communications. Next steps would be to incorporate Commissioner and Board feedback into the plan and present an updated plan to the Board of Trustees and County Commissioners at future meetings for approval. DR A F T Town Board & County Commissioners Joint Study Session – September 9, 2024 – Page 2 Commissioner and Board comments and questions have been summarized: questioned the use of the 10% of 6E funds which go directly to VEP; what brought on the construction marketing initiative efforts; importance of supporting local businesses outside of the main downtown corridor and what marketing strategies are used to provided exposure to those businesses; VEP was commended on their sustainability efforts; questioned the difference between primary and secondary advertising outlined in the plan; what key performance indicators are used for inclusivity and accessibility and do they show success in the outreach related to diversity and inclusivity; transit marketing promotions; how VEP ensures the community at large knows how their funds are being used to market the Town, areas for improvement and the importance of being intentional in these efforts; it was recommended the plan clearly identify 6E funds are considered pass through and VEP continues to operate off an approximate $4.4 million budget; target audience efforts for different demographics; research opportunities to identify heads in beds which may be more valuable than impressions; including marketing and sponsorship efforts for all local events into the plan; coordination efforts with both local newspapers should be included in the plan; whether there are any efforts related to turning vacant property downtown into an additional visitor center since it was not included in the plan; how stakeholder engagement is quantified; importance of including effectiveness of previous year efforts in the plan; and marketing toward the consumer who continues to return to Estes Park year after year. The Board and County Commissioners were directed to send any additional comments on the 2025 VEP Operating Plan. PROPOSED 6E FUNDING PLAN. Manager Bangs presented the 2025 Workforce Housing and Childcare Funding Plan which outlines how the Workforce and Childcare Lodging Tax funds (6E) would be passed through the Local Marketing District (VEP). The 6E Funding Plan would be presented formally to both the Town Board and the County Commissioners for consideration and final inclusion in the 2025 VEP budget considerations. She stated the most significant change in the plan reflects an 80/20 split between childcare at $1.1 million and housing at $4.4 million. The 2023 Housing Needs Assessment and Strategic Plan and the 2024 Childcare Needs Assessment provided landscape data to guide the 2025 changes. She stated the population continues to increase in age with retirees moving to Town and less families moving and staying in the area. Childcare items included tuition assistance, facilities and capital funding grants, and out of school programming. With the freeze of the county wide childcare assistance program, Estes Park was one of the few communities able to continue to support eligible families which was commended by the Board and County Commissioners. The Town received a $50,000 grant from the Buell Foundation to help understand the future needs of tuition assistance and identify opportunities to reframe the childcare structure in the community. She stated the Town was currently under contract to purchase a building currently utilized as a childcare facility in order to continue to use the site for childcare. She provided the 2025 and 2027 targets for childcare afterschool and summer spots with focus on: addressing workforce challenges through continuing the annual childcare workforce subsidy; developing a funding program for family childcare home providers (FCCH); creating collaborative programs including mortgage and rental assistance; healthcare for childcare providers (in partnership with Salud); and early childhood education career path. She reviewed goals for 2025 for childcare staff, home providers, infant, toddler and preschool classrooms. 2023 workforce housing property acquisition efforts included: 775 Riverside, 0 Mary’s Lake Rd, 507 Grand Estates (16 unit multi- family), and a purchase agreement was executed for 1700/1738 Highway 66 (20 unit multi-family). The Estes Park Housing Authority (EPHA) was in agreement to purchase Fall River Village which would provide additional housing in the near future and has retained a planning firm to pursue securing $2 million in ARPA funds towards the Fish Hatchery project. Staff are drafting opportunities for a deed restriction purchase program/down payment assistance program to support families with low to moderate household income and childcare staffing and capacity building. Additional EPHA staffing was anticipated for 2025 in finance, accounting and operations. She stated although these existing positions are typically funded through operating revenue, due to the DR A F T Town Board & County Commissioners Joint Study Session – September 9, 2024 – Page 3 volume of units being created through housing efforts, additional positions may be considered with the temporary use of 6E funds. Board comments and questions have been summarized: whether efforts included culturally responsive childcare and housing for teachers, nurses, police officers and other types of workforce so those essentials workers have opportunities to live in the community they serve; options for engaging our community providers; the importance of forming workforce positions which would not need to be eliminated in the future; a status report was requested for the use of ARPA fund; identifying needs for various income levels; and the importance of regular reports to both the Board and County Commissioners. COMMISSIONER & TRUSTEE COMMENTS & QUESTIONS. Trustee Hazelton raised concerns regarding VEP board governance, where VEP Board strategic direction was originating, the culture on the executive board, contract review without performance evaluations, business being discussed outside of public meetings, emails removed from the public email forum which should not have been removed, and comments from staff about local businesses who have provided feedback on the work of VEP. She further questioned the residency requirements of the Chief Executive Officer position and the use of VEP funds for out of state travel. She stated a number of individuals have stated concern with the direction VEP has taken; the importance of transparency and oversight of a taxing district who are held to state statutes; and the importance of VEP operating in a manner that benefits the community. She requested time to address concerns and the plan at a future meeting. There being no further business, Mayor Hall adjourned the meeting at 7:10 p.m. Bunny Victoria Beers, Deputy Town Clerk DR A F T Town of Estes Park, Larimer County, Colorado, September 23, 2024 Minutes of a Regular meeting of the AUDIT COMMITTEE of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Municipal Building in said Town of Estes Park on the 23rd day of September, 2024. Committee: Mayor Hall, Mayor Pro Tem Cenac, Trustee Brown, Town Administrator Machalek, Interim Finance Director Hudson, and Account Manager Garcia Attending: Mayor Hall, Mayor Pro Tem Cenac, Trustee Brown, Town Administrator Machalek, Interim Finance Director Hudson, Account Manager Garcia, Town Clerk Williamson, Superintendent Lockhart, and Director Bergsten Absent: None Mayor Hall called the meeting to order at 9:37 a.m. 2023 ACFR AND SINGLE AUDIT REVIEW. Ty Holman and Abbie Irvine of Haynie and Company reviewed the audit completed for fiscal year ending 2023, stating they utilized general and governmental auditing standards to review both governmental and enterprise revenue recognitions, accounts receivable and allowances, near term reporting, capital assets and depreciation, long- term debt, pension and OPEB reporting, single audit, workforce housing regulatory linkage fee (new enterprise fund in 2023), workforce housing 6E revenue (new in 2023), and a focus on inventory. They reported the Estes Park Housing Authority was a new component in 2023 and a delay in completing the audit occurred as the Authority’s audit was required to be completed by June 30, 2024 and included in the Town’s audit due to the 6E funding. A new accounting standard for subscription-based software was required in 2023. The Town identified $111,000 in new assets that met the definition of the new standard in the General fund and $9,600 in the Enterprise funds. The auditors provided an unmodified opinion, a clean opinion, of the Town’s financial statements issued on August 15, 2024. Single audits were conducted for and audited four grants provided for the Fall River Trail, Prospect Mountain Water project, and Trailblazer Broadband with federal funds over $10 million and ARPA funds. The revenues and expenditures were found to be in compliance with grant requirements. FEMA grant funds were reimbursed for the 2013 flood as the reimbursement was found to be ineligible. It was noted that audit adjustments were found to be more than in previous years due to a new Finance Director and additional grant funding. Items adjusted included recording the pension and OPEB, adjustment for the new software standard, $318,000 for a Water fund grant which was found to be insignificant, $200,000 adjustment to reduce liability for the Town’s medical self-insurance because it was booked backwards, a material weakness was identified with inventory and internal controls for Power and Communications. A letter was submitted to address and assist with the inventory controls. Finance would provide additional guidance and accounting assistance moving forward to address the concerns rasied. Mayor Pro Tem Cenac left the meeting at 10:15 a.m. Committee questions and comments were heard and summarized: questioned who receives the final audit report; how bond and credit rates use the report to determine the Town’s bond rating; questioned if Power and Communication funds should be audited in relation to the electric rate increases; and questioned if anything significant should be addressed in the management and analysis of the audit. Audit Committee – September 23, 2024 – Page 2 Director Hudson stated the audit would be presented to the Town Board on October 8, 2024 as an action item. CONSIDER OF APPOINTMENT OF AUDITORS FOR 2024 AUDIT Interim Director Hudson stated the 2024 audit would be the fifth year of the contract with Haynie and Company. Committee consensus was to recommend appointment of Haynie and Company for the completion of the 2024 audit. There being no further business, Mayor Hall adjourned the meeting at 10:55 a.m. Jackie Williamson, Town Clerk Town of Estes Park, Larimer County, Colorado, August 6, 2024 Minutes of a Regular meeting of the ESTES PARK BOARD OF ADJUSTMENT of the Town of Estes Park, Larimer County, Colorado. The meeting was held in the Town of Estes Park on August 6, 2024. Board: Chair Jeff Moreau, Vice-Chair Wayne Newsom, Board Member Joe Holtzman Attending: Chair Moreau, Vice-Chair Newsom, Member Holtzman, Senior Planner Hornbeck, Director Steve Careccia, Floodplain Administrator Jennifer Waters, Recording Secretary Karin Swanlund Absent: none Chair Moreau called the meeting to order at 3:00 p.m. There were 12 people in attendance. APPROVAL OF AGENDA It was moved and seconded (Moreau/Holtzman) to approve the agenda. The motion passed 3-0. APPROVAL OF CONSENT AGENDA It was moved and seconded (Moreau/Holtzman) to approve the Consent Agenda. The motion passed 2-0, with Newsom abstaining. PUBLIC COMMENT: none ACTION ITEMS: 1. Variance to Lot Coverage Continental Peaks Circle Senior Planner Hornbeck Staff requested this item be withdrawn. It was moved and seconded (Moreau/Holtzman) to withdraw the variance request. The motion passed 3-0. 2. Variance Request 2842 Fall River Rd Senior Planner Hornbeck The Board of Adjustment first considered a variance for the property on July 2, 2024. The Board voted to continue the request to a future meeting date. Based on feedback from the Board at the July meeting, the applicant has revised the application to define the annual high-water mark of the river in accordance with EPDC requirements. This Memo and Project Analysis reflect the revised application and request for an encroachment of 6.8 feet rather than the previous request of five feet into the 50-foot river setback. Staff recommended denying the request, stating that the applicant could decrease the deck size or locate the house north of the private drive. The lot is undeveloped, so the applicant is not constrained by existing development or structures. Redesigning the home and/or deck is a viable alternative at this time. Public Works submitted a letter stating they are okay with the new plans as they pertain to the high water mark. DISCUSSION: . Angela Walter, applicant, reiterated concerns about changing the submitted building plans, including deck and house square footage and the inability to build to the north. Lonnie Sheldon, Van Horn Engineering, explained that the elevated deck setback is to the deck, not to the posts, which is what counts. A detailed look into the high water mark using the vegetation line in the river was done to get a definitive line. Flooding concerns were reviewed using a cross-section of the river. The deck is eight feet above the FEMA 100-year water surface elevation. Chair Moreau stated that he would like concrete deck piers 18 inches above the BFE on the 100-year floodplain, which Sheldon agreed to. Board of Adjustment, August 6, 2024 – Page 2 PUBLIC COMMENT: none It was moved and seconded (Moreau/Newsom) to approve the variance request with the agreement that the deck piers be concrete and installed above the flood level. The motion passed 3-0. 3. Variance to Grading and Site Disturbance Standards 2365 Big Thompson Ave Senior Planner Hornbeck The Board of Adjustment first considered variances for the property on June 4, 2024. The Board voted to continue the request to a future meeting date. Based on feedback from the Board at the June meeting, the applicant has revised the application to lower the maximum retaining wall height to 12' rather than the previously requested height of 23'. The change was made possible by collaborating with the Fire District to reduce the size of the emergency vehicle turnaround to allow for two shorter retaining walls with a terrace between them. This Memo and Project Analysis reflect the revised application and request for 12' retaining walls. The existing accommodations use on the subject parcel, Olympus Lodge, is proposed to be demolished and replaced with a new hotel. The property is located in unincorporated Larimer County, and the applicant has submitted a petition to annex the property into the Town of Estes Park, a Development Plan for the proposed hotel, and the subject variance requests. The Annexation and Development Plan remain under review, and no formal action is scheduled. Staff recommended approval of the variance requests with conditions. DISCUSSION: Jodi Newton, Master Works, LLC, on behalf of the applicant, 2Combs Enterprises. Significant modifications have been made to upgrade the hotel's architecture. Employee housing has also been added to the plans. The northwest and west walls will be terraced and undulated. The walls will be covered with high-grade stone materials. Rail fence with wire mesh will be included in the Development Plan. PUBLIC COMMENT: Glen Brett, 2370 Bellvue Dr, would like to know more about the parking lot's lighting and architecturally enhanced fence. Chair Moreau stated that those questions should be addressed to the Planning Commission when the Development Plan is heard. It was moved and seconded (Moreau/Holtzman) to approve the variance requests to allow the original, natural grade to be lowered by up to 25 feet rather than the maximum of 10 feet, to allow retaining wall heights up to 12 feet rather than the maximum of 6 feet, and to allow retaining wall terrace less than 5 feet in width with findings as outlined in the staff report and subject to the following conditions and no bare concrete will be exposed in the retaining walls and that it shall be made or veneered with natural-looking materials: 1. An architecturally enhanced fence or railing shall be provided on top of all retaining walls where determined necessary for public safety, subject to review and approval by the Planning Commission; 2. All rooftop mechanical equipment shall be fully screened from the view of surrounding properties and private or public roadways. Screening methods shall be consistent with the style, materials, and colors of the primary building. Such screening details shall be depicted on the Development Plan and subject to review and approval by the Planning Commission; and Board of Adjustment, August 6, 2024 – Page 3 3. All retaining walls visible from adjoining properties or from private or public roadways shall be faced with wood, stone, or other earth-colored materials that blend with the surrounding natural landscape and provide an architecturally enhanced design. Such materials and design shall be depicted on the Development Plan and subject to review and approval by the Planning Commission. The motion passed 3-0. REPORTS: None With no further business, Chair Moreau adjourned the meeting at 3:45 p.m. Jeff Moreau, Chair Karin Swanlund, Recording Secretary Town of Estes Park, Larimer County, Colorado, August 21, 2024 Minutes of a Regular meeting of the TRANSPORTATION ADVISORY BOARD of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Municipal Building in said Town of Estes Park on the 21st day of August, 2024. Board: Chair Belle Morris; Vice-Chair Kristen Ekeren; Members Larry Gamble, Linda Hanick, Joan Hooper, Misti Marcantonio, Wallace Wood; Trustee Mark Igel; Staff Liaison Greg Muhonen Attending: Chair Morris; Vice-Chair Ekeren; Members Gamble, Hanick, Hooper, and Marcantonio; Trustee Igel; Director Muhonen; Engineer Bailey; Manager Klein; Recording Secretary McDonald; Anthony Pratt, Kimley-Horn; Paul Hornbeck and Karin Swanlund, Community Development Absent: Member Wood Chair Morris called the meeting to order at 12:02 p.m. PUBLIC COMMENT None. TRUSTEE LIAISON UPDATE Trustee Igel reported that the Town Board approved the two Intergovernmental Agreements (IGAs) accepting federally funded grant money for completion of the Fall River Trail Extension project. Interviews with volunteer applicants will begin on August 23 for the TAB’s current vacancies. APPROVAL OF MINUTES DATED JULY 17, 2024 It was moved and seconded (Hooper/Gamble) to approve the July 17, 2024, minutes, and it passed unanimously. ENGINEERING UPDATES Consultant Pratt presented the two conceptual design alternatives for the Visitor Center Parking Lot Redesign. Alternative A features a one-way, eastbound bus routing lane parallel to Big Thompson Avenue; 22 standard and 0 Americans with Disabilities Act (ADA) stalls would be removed. Alternative B features a wider entrance at the northeast and a two-way bus routing configuration east of the Visitor Center (VC); 23 standard and 1 ADA stalls would be removed. Both alternatives feature 6-7 stalls for the transit vehicles, which must exit eastbound onto Big Thompson Avenue. Discussion points included the major benefits of a Steamer Drive roundabout, a budget- dependent concept that is supported by the Colorado Department of Transportation (CDOT) but does not provide a timely solution for westbound traffic exiting the VC; options Transportation Advisory Board – August 21, 2024 – Page 2 for shelters or canopies on the passenger platform; how to distinguish parking stalls by vehicle size and type; the potential for pedestrian-vehicle conflict in the passenger loading areas; location options for a plaza; and the advertising benefits of Alternative A, where the transit vehicle lane is fully visible from Big Thompson Avenue. Consultant Pratt then presented the Solutions & Prioritization spreadsheet for the Transportation Master Plan (TMP) and Transit Development Plan (TDP), asking for the TAB’s perspective on the survey data results. Member feedback is welcome for another week while the design team refines the final plan. There was brief discussion about the scoring results of some items and the nature of HAWK crossings. As a closing update for this agenda item, Engineer Bailey advised that Graves Avenue fully opened to pedestrians and vehicles on August 9. Some TAB members reported that school bus drivers have adjusted their routes to avoid Graves Avenue. Public Works staff was fully unaware of this issue but will follow up today with the school. The Town’s 2024 application for Safe Routes to School (SRTS) program funds will target crosswalk improvements at Manford Avenue and Colorado Highway 7 (CO 7; South Saint Vrain Avenue). PARKING & TRANSIT UPDATES Manager Klein reported on occupancy data through August 18. With school resuming, weekday numbers are down but weekends are seeing at or near 100% capacity in all lots excluding the Events Center and Parking Structure (PS). The PS has achieved 85% or higher capacity eight times this season. Of the temporarily free parking lots impacted by construction, Riverside resumed paid parking status on August 9 and its resulting activity reflects turnover and stall availability. Post Office lot access is improving. Overall parking revenue is down 8.3% from the average of previous years, which may be due in part to one less Bond Park summer event. Payment use continues to be balanced between the mobile app and kiosk options. The Red Route served 20,809 riders in July, up 4.9% from 2023 despite operating two hours fewer per day this season; all routes are up 4.5% from 2023. The RATP Dev drivers are tracking “on the fly” diversion requests to help adjust 2025 transit stops according to actual demand; a good example is the common request for the Brown Route to stop at National Park Village. For eight days during the Alexander Mountain Fire, the transit team prepared assets for evacuation assistance by refilling vehicle tanks at the half-tank mark, which slightly delayed routes. The fire also required cancellation of the planned August 4 CDOT/RTD tabling event, which may be rescheduled. The board of GoNoCo34 (the Estes Park to Kersey transportation initiative), met in early August to prioritize its workflow until the anticipated arrival of a fractional Executive Director in October. Current priorities are public and private membership growth, marketing plan development, funding and sustainability planning, and staff candidate interviews. Transportation Advisory Board – August 21, 2024 – Page 3 Attendee Swanlund (Community Development) inquired about what happened to the former Shuttle Committee (SC), which ceased meeting before or during the COVID-19 pandemic. There was brief discussion about the SC’s origin and distinction from the TAB, and Director Muhonen advised that the SC had not been formally sunset but ceased activity through attrition. ADMINISTRATIVE UPDATES Director Muhonen acknowledged a recent TAB email interaction that had provided the opportunity to clarify the TAB’s obligation to follow Colorado Sunshine Law. A site map page from the Downtown Estes Loop (DEL) plan was distributed, and Director Muhonen described pedestrian navigation routes and pending signal placement points. Discussion points included areas of potential confusion for pedestrians; the Town’s request for signage where the sidewalk ends at Davis Street; and driver disregard for the new stoplight near Park Theatre, possibly due to its proximity near the Elkhorn/Moraine intersection. Members were advised to call Dispatch with license plate numbers of offending drivers, or to contact Director Muhonen with related concerns. In follow-up to the May 14 Town Board Study Session for the Big Horn Parking Structure Design, Director Muhonen advised that proposals and fees had been reviewed and interview of firms completed. Currently, there is insufficient funding for the Board- preferred designs (Options 2 and 3). A parking fee increase in 2025 could help bridge the funding gap; overall funding options are being prepared for further review. The US 34/36 Resurfacing Project has experienced delays related to the Alexander Mountain Fire closure, rainfall during nightwork, and plant production issues. UPDATE ON PAST PUBLIC COMMENT Regarding a TAB Public Comment Form submitted by Member Hooper prior to her TAB appointment, it was agreed that staff could examine and develop accommodations for pedestrians when planning future projects. OTHER BUSINESS Chair Morris reminded the TAB of its plan to gather feedback this fall from school staff and poll school parents regarding crosswalk safety issues along CO 7. Member Gamble indicated that Member Wood is involved in the Estes Park Newcomers Club, which was discussed as a good source of volunteer support for coordinating this student-safety project. There being no further business, Chair Morris adjourned the meeting at 2:02 p.m. /s/Lani McDonald, Recording Secretary TOWN ADMINISTRATOR’S OFFICE Memo To: Honorable Mayor Hall Board of Trustees From: Town Administrator Machalek Date: October 8, 2024 RE: 2025 Visit Estes Park Operating Plan (Mark all that apply) PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER: _____________ QUASI-JUDICIAL YES NO Objective: Town Board consideration of the 2025 Visit Estes Park Operating Plan. Present Situation: Per the terms of the Town’s Intergovernmental Agreement with Larimer County for the formation of the Estes Park Local Marketing District (VEP), VEP is required to file an Operating Plan with both the Town and the County no later than September 30th of each year. This Operating Plan must identify services to be provided by VEP, any marketing and promotion tax to be levied by VEP, and such additional information as may be appropriate or required to inform the Town and the County as to the activities, services, and funding of VEP in the upcoming calendar year. This Operating Plan must also include a proposed budget for the next fiscal year. The Town and the County must each approve, modify, or disapprove the Operating Plan no later than December 5th of each year. The Town Board reviewed the 2025 Operating Plan at its September 9th Joint Study Session with the Board of County Commissioners. Proposal: The 2025 Visit Estes Park Operating Plan is included in the packet. Action Recommended: N/A. Finance/Resource Impact: None. Level of Public Interest Medium Sample Motion: I move for the approval/denial of the 2025 Visit Estes Park Operating Plan. Attachments: 1. 2025 Visit Estes Park Operating Plan 2. Presentation Visit Estes Park Operating Plan DRAFT ATTACHEMENT 1 Table of Contents The Significance of Tourism Lodging Tax Letter from the Larimer County Commissioners Letter from the Estes Park Mayor Letter from the Visit Estes Park Board of Directors Introduction to Visit Estes Park Destination Stewardship Extend the Season Paid Media Content Development Social Media Public Relations Tourism Advocacy & Community Relations Sales & Services Finance & Administration Key Terms Additional Opportunities Visit Estes Park Staff 3 4 5 6 7 8-20 21-25 26-44 45-55 56-62 63-65 66-70 71-80 81-88 89-97 98-99 100 101 Tourism is the backbone of the Estes Valley economy. It anchors the community around us and has driven significant growth in the area for generations. Because of tourism and events, local businesses have the opportunity to thrive and job opportunities remain ample. And beyond its economic advantages, tourism significantly enhances the quality of life. in Estes Park, funding year-round amenities and essential public safety services that protect the community. Recognizing the potential impacts of sustained growth, Visit Estes Park places destination stewardship. at the heart of our mission. We collaborate closely with destination development counselors, as well as local businesses and residents, to foster a dynamic, responsible tourism industry that benefits both visitors and the community. Our efforts ensure that the natural beauty and unique character of the Estes Valley are preserved for future generation. s, maintaining the delicate balance between economic stability and growth, and environmental conservation. The Significance of Tourism quality of life destination stewardship preserved for future generations, 3 The availability and affordability of workforce housing and childcare has been a significant challenge in the Estes Valley for decades. Until Visit Estes Park’s lodging tax extension (ballot initiative 6E) passed on November 8, 2022, a consistent, meaningful funding mechanism to finance these issues had not been available. As of January 1, 2023, the lodging tax in Estes Park increased from 2% to 5.5% and is collected on overnight stays at hotels, motels, RV parks, campgrounds, guest ranches, rental properties, and other lodging facilities. Two percent is used to fund the Estes Park Local Marketing District. The remaining 3.5% is for funding dedicated workforce housing and childcare projects, with 90% of the funds going to the Town of Estes Park and 10% remaining with VEP for marketing and visitor education, as required by the Colorado statute, such as the Estes Experiences workforce initiative, the community roundtables and the Estes Inspired community initiative. In 2023, this meant $5.9 million in lodging taxes would be earmarked for workforce housing and childcare in Estes Park. Thanks to tourism and lodging taxes, a pathway to significant, positive impacts on these two issues is now in action. In addition to funding public safety services and local amenities, tourism is the engine that drives funding for our community’s workforce housing and childcare programs. What does this mean? A strong tourism economy is crucial in order to create a sustainable community ecosystem where local workers can live and prosper. Tourism success is more significant than ever. What Tourism and Lodging Tax Means to Our Workforce 4 John Kefalas Commissioner, District I Kristin Stephens Commissioner, District 2 Jody Shadduck-McNally Commissioner, District 3 Estes Park's beauty, recreational opportunities and cultural offerings are among the many reasons Larimer County is a remarkable place to live and visit. Built on sustainable tourism principles, Visit Estes Park’s important work in destination stewardship contributes to a welcoming destination that thrives economically and conserves the area’s natural beauty for residents, visitors and future generations. This approach addresses the pressure visitors can place on the environment and quality of life in communities like the Estes Valley that serve as gateways to some of Colorado’s most spectacular natural areas. Alongside Visit Estes Park, we value these important principles to ensure this delightful destination retains its wonder for our residents and guests. We look forward to continuing to collaborate toward a future where our shared community is a welcoming place for all to thrive. Letter from Larimer County Commissioners 5 Estes Park is a vibrant mountain community that is fortunate to be a place visitors choose to travel to each year. The town’s proximity to Rocky Mountain National Park complements a welcoming destination full of irresistible services and amenities for locals and visitors. This results in a strong tourism economy that supports the quality of life our residents enjoy every day. In 2025, we look forward to continuing our collaborative relationship with Visit Estes Park to serve the Estes Park community. Shared missions of destination stewardship that strive to balance our community's needs while conserving our natural resources and creating a positive visitor experience drive both of our organizations. Collaboratively, we aim to be good stewards of our destination so that it continues to be a wonderful place to live and visit. Letter from the Mayor of Estes Park Mayor Gary Hall 6 Letter from Visit Estes Park Board of Directors Sean Jurgens Board Chair Deborah Gibson Jerusha Rice Kirby Hazelton Vice Chair Secretary/Treasurer Director & Town Trustee Director Director Director Pat Murphy Rich Chiappe Nick Smith Through the dedicated work of local businesses, organizations and community partners, Estes Park is on its way to becoming a true year-round destination. This extended economic opportunity is integral to our tourism economy and our community’s quality of life. In support, Visit Estes Park remains committed to sustainable destination development and responsible tourism marketing that prioritizes inclusion and sustainability. In 2025, staff will continue establishing destination drivers like Catch the Glow Holiday Season while using technology and data-driven marketing strategies to attract guests who value our community. This community-driven approach is rooted in our commitment to being good partners in destination stewardship and focuses on conserving our vibrant mountain town for future generations. 7 Here in Estes Park, we are building a better future. From the infrastructure improvements that surround us to the ever- changing digital landscape at our fingertips, it’s evident that Estes Park is evolving for generations to come. This 2025 Operating Plan outlines how Visit Estes Park will be responsible destination stewards throughout this significant growth period, by implementing proactive marketing and management tactics that foster sustainable visitation, drive economic opportunity and support our workforce. We are setting our sights on innovation to help deliver the right message, to the right travelers, at the right time through the use of powerful data and technology. This will attract travelers who will care for our destination and align with our community values. And our destination development objectives are designed to better serve these conscientious travelers while they are in town. Our work to become true destination stewards is the underlying foundation for these marketing and development efforts. In alignment with the industry best practices found in the Colorado Tourism Office’s state-wide Destination Stewardship Plan, we are embracing action, both short and long-term, that demonstrates how we can share Estes Park responsibly. This includes responsible messaging and content, a new level of community engagement and active stakeholder participation across all categories. As stewards of these lands and this community, Visit Estes Park strives to increase the strength of tourism to ensure economic vitality, while protecting community character and resident satisfaction. Collectively, we can take proactive steps to encourage tourism success and mitigate its impacts. And together with the community, we can safeguard the natural wonders that draw visitors to our doorstep. Introduction: Building a Better Future 8 Visit Estes Park nurtures visitor reverence of this vibrant mountain town for business success, environmental sustainability and community harmony. To be a year-round, family-friendly tourism and event destination that supports our vibrant mountain town with a balance of financial success, positive and memorable experiences for guests and a meaningful quality of life for our community. Mission Vision 9 Values Collaboration Innovation Empathy Passion Resilience Stewardship 10 Destination stewardship allows us to work toward striking the right balance between achieving economic vitality, enhancing the visitor experience and preserving the quality of life in the Estes Valley. Becoming a true steward of Estes Park is a paradigm shift in how we optimize our visitor economy and leverage tourism sustainably. Evolving the important work of promoting and managing our destination, stewardship emphasizes long-term community vitality, active stakeholder involvement and preserving Estes Park’s authentic character, while working to conserve the lands that brought us here. Through our Destination Stewardship Plan, we defined underlying principles that inform our annual operating plans and guide our daily decisions by carefully considering our work's economic, social and environmental impacts. Alongside our partners, we’re building a shared vision for how tourism supports and contributes to our community's future. Estes Park's long-term sustainability depends on this work, found through destination stewardship, both as a place for our guests to visit and as a thriving, vibrant community. Destination Stewardship is Our Cornerstone Destination Stewardship Destination Promotion Destination Management Finance Administration 11 Organizational Stewardship Imperatives Continue to provide an excellent visitor experience and evolve the product to attract target audiences who appreciate and seek the quality, authentic experiences that Estes Park offers. To ensure that Estes Park’s visitor economy evolves in a way that not only attracts more higher-spend visitors and enhances the overall quality of the visitor experience, but also cultivates the town’s authentic character and contributes to the town’s quality of place, Visit Estes Park will continue to address four imperatives to care for the destination in the long-term: Ensure that the visitor economy continues to drive the Town’s economic vitality and provide opportunities for engagement from all stakeholders in the community. Lead the visitor economy in adopting and implementing practices that protect the Estes Park’s natural resources and ensure the area’s long-term vibrancy. Provide Best-in-Class Visitor Experiences Optimize the Positive Impacts of the Visitor Economy Steward the Environment Prioritize the needs of residents when encouraging enhancements to the Town’s product and working to grow visitation. Share Estes Park Responsibly 12 Effective destination stewardship is rooted in strong partnerships between governmental agencies and partner organizations within a destination. Knowing this, Visit Estes Park actively maintains collaborative partnerships with the the Town of Estes Park, Larimer County, Estes Park Visitor Center, Estes Park Chamber of Commerce and Rocky Mountain National Park. Visit Estes Park will continue to strengthen relationships with Arapaho-Roosevelt National Forest, Hermit Park Open Space, Rocky Mountain National Park visitor centers, and the Colorado Welcome Centers through communications, information exchange and programming development. Together with these partners, Visit Estes Park will continue implementing its Destination Stewardship Plan, which was developed in collaboration with destination development counselors Clarity of Place and the Colorado Tourism Office. Partners in Destination Stewardship 13 Brand Attributes We support and foster relationships with local businesses, leaders and community members while identifying new opportunities for innovation and collaboration. We strive to welcome all to Colorado’s Original Playground and emphasize that everyone can experience and thrive in the great outdoors. We make decisions based on data to sustainably attract guests and proactively adjust our strategies. Through the latest AI technology, we drive real-time conversation, booking and advanced content creation. We embody sustainability and empower guests to do the same. This is key to preserving the natural beauty that surrounds us. We educate guests about how to experience Estes Park and the surrounding public lands so they have the best experience while maintaining the charm of our local community and natural environment. Community Oriented Inclusive & Accessible Data & Tech-Driven Sustainable Educational 14 Messaging for an Evolving Travel Landscape Deciding Factors Here in Estes Park, visitors and residents share a common goal for an uncommon land. We treat our guests as we do our neighbors, just as we ask them to treat the local wildlife: with awareness and appreciation. Together, we are supporting our community. Promoting sustainability. And focusing on social, economic and environmental impacts. Because if we take care of this beautiful place that has drawn us together, we can continue to to honor what brought us here. When travelers are considering a destination, we position Estes Park as an authentic, vibrant mountain town, offering activities, events, dining, shopping and an experience that is welcoming and approachable. Estes Park is affordable to families and offers a multitude of activities in every season, while also offering a basecamp to world-class adventure and outdoor experiences. 15 Messaging Key Points Outdoor Experiences Easy Access Unique Local Offerings & Events Year-round Affordability Inclusion Sustainability-focused Travel 16 Estes Park loyalists who have traveled to the destination in the past Active adults, outdoorsy couples and outdoor enthusiasts Couples looking for a romantic getaway Multigenerational travelers visiting as a family with grandparents Adults and families interested in events Meeting planners and travel advisors Travelers who value sustainable tourism Digital Nomads, remote workers who travel while working Pre-tirees, travelers reaching retirement age and work part time Age: 25-54 with an emphasis on 45+ Family-friendly audience: 60+ with an emphasis on Multi-generational Household income: $100K+ Demographics Target Audiences 17 Scenic beauty, relaxing mountain getaway, mountain biking and hiking, outdoor adventure / enthusiast, backpacking, trails, national parks, road trips, craft beer, romantic getaways, family friendly, easy access, eco-tourism, wildlife viewing, events Cross country skiing, winter climate, snowboarding, snowshoeing, backcountry skiing and split boarding, avalanche education, sledding, ice climbing, mountain town, concerts, events Mountain biking, outdoor adventure/enthusiast, backpacking, golf, hiking trails, live music, events, road trips, craft beverages/breweries, fall colors, change of season, spooky travel Target Audience Interest Overall Interests Winter/Spring Interest Summer/Fall Interest 18 Los Angeles San Francisco Orlando Tampa Miami Ft Lauderdale Denver, Colorado Springs, Fort Collins, Boulder, Loveland, Longmont, Greeley Laramie, CheyenneWyoming: Colorado: Geographic Focus Dallas-Fort Worth DMA Omaha Kansas City Chicago Iowa Houston DMA 19 Tax Revenue Occupancy Average Daily Rate (ADR) Revenue Per Available Room (RevPAR) Stakeholder Engagement Advertising Public Relations Social Media Website AI Travel Planner Categories of Key Performance Indicators (KPIs) Destination Focus Marketing Focus 20 Destination Stewardship Goals 21 Key Organizational Goals Continue executing the Destination Stewardship Plan Execute programming to support the workforce and contribute to community sustainability efforts Communicate the Destination Stewardship Plan and generate support from key partners See the outcome of last year's goals in our 2023 Annual Report. 22 Strategy Develop existing and introduce new programs that contribute to the pillars of sustainable tourism within our destination. Track and support important destination issues within the community related to tourism. Tactic 1 Tactic 2 Tactic 3 Goal Regularly meet with the organizations working on these issues, including the Town of Estes Park, Larimer County, The Estes Chamber Economic Development Workforce Council, Rocky Mountain National Park, Estes Valley Housing Authority and EVICS. and the NOCO Hospitality Partnership. Contribute to solutions by supporting these organizations’ initiatives with Visit Estes Park resources where appropriate. Partner with organizations and services that are working to make Estes Park more inclusive and sustainable and track the progress to establish benchmarks. 23 Strategy Bring the Colorado Green Business Network (CGBN) to Estes Park. Tactic 1 Tactic 1 Tactic 2 Tactic 3 Goal Strategy Develop existing and introduce new programs that contribute to the pillars of sustainable tourism within our destination. Build on the Estes Experiences momentum to support our workforce. Increase workforce participation by 10% to educate tourism workers about the destination, improve visitor experience, and contribute to economic opportunity at a foundational level. Partner with the Community Recycling Committee to introduce and implement the program. Recruit local facilitators to do the in-market work of the CGBN. Promote the program through Visit Estes Park partner channels to encourage participation. Cont’d 24 Strategy Develop existing and introduce new programs that contribute to the pillars of sustainable tourism within our destination. Support the Estes Nonprofit Network’s effort to “tap into tourism” to enable their support of Estes Park nonprofits. Tactic 1 Tactic 2 Goal Support the Be a Giving Guest program by including it across owned media channels, such as inclusion in blog posts, social media posts and short-form videos and on VisitEstesPark.com Support the accommodation donation program through inclusion in Visit Estes Park owned media and in other inclusion and sustainability efforts. Cont’d 25 Extend the Season Goals 26 Extend the Season: SkiJor Estes Park 27 Key Organizational Goals Drive visitation during January need period through the sponsorship of a new multi-day signature winter event, which encourages overnight stays. Collaborate with Estes Valley businesses to foster economic stability by creating ancillary offerings through the Beyond program to complement this new flagship event. Develop an advertising, paid social media, public relations and content creation campaign to attract consumers interested in winter sports to experience Estes Park’s newest cold weather event and ancillary offerings. 28 Strategy Support large-scale, multi-day events that reflect community character and are able to draw overnight visitors during off-peak and need periods. Collaborate with Running Wild Events by sponsoring the inaugural Ski Jor Estes Park in January 2025 with financial and marketing support. Tactic 1 Tactic 2 Tactic 3 Goal Collaborate with event producers to aid in developing the Ski Jor event weekend and satellite events. Launch an integrated marketing campaign to target travelers interested in winter sports, events and experiences, highlighting unique selling propositions. Work with partners to create lodging packages, satellite events, transportation options and special offers to boost the economic impact in the community. 29 Extend the Season: Frozen Dead Guy Days 30 Key Organizational Goals Increase the Frozen Dead Guy Days (FDGD) festival attendance to 7,000 attendees, boosting both overnight and day visitation during a slower season Continue to enhance the FDGD festival experience to include more elaborate and immersive experiences Secure a strong lineup of FDGD-themed offerings from lodgers, restaurants and local businesses to encourage spending beyond the festival footprint and within the destination Develop an integrated marketing campaign and include new relevant content on FDGD website Expand FDGD marketing to reach a national audience in key target markets 31 See the outcome of last year's goals in our 2023 Annual Report. Goal Strategy Expand the Frozen Dead Guy Days festival with new and elevated Estes twists. Partner with Bosco Productions to produce Frozen Dead Guy Days 2025 with more elaborate and immersive experiences to engage attendees and visitors. Develop additional activities and areas for different audiences, including families and other niche audiences. Increase local partners' participation in the food village and expand bar offerings. Tactic 1 Tactic 2 32 Strategy Expand the Frozen Dead Guy Days festival with new and elevated Estes twists. Foster stakeholder collaboration during Frozen Dead Guy Days to strengthen community partnerships and enhance the festival experience. Tactic 1 Tactic 2 Tactic 3 Goal Increase community and partner participation in the festival, garnering their support and enthusiasm for this signature destination event. Increase partner participation with pre and post-festival events to encourage longer stays and increased visitor spending and attendance. Provide training and FDGD partner toolkits for local businesses to participate in the event. Cont’d 33 Goal Strategy Generate awareness and visitation to Estes Park during Frozen Dead Guy Days through an integrated marketing strategy. Create a multi-channel marketing campaign complete with advertising, public relations, social media and content strategies to maximize awareness, tickets sales and travel booking. Align ticket sales launch with the spooky season in October, leveraging the national interest in Estes Park during that time and offering a longer sales window to secure more ticket sales. Activate paid social media efforts aimed at increasing ticket sales, email sign-ups and awareness by targeting FDGD fans and band followers, as well as consumers with similar interests. Formulate an advertising campaign reaching new and return attendees through digital display, out-of-home (OOH), television and radio promotions. Tactic 1 Tactic 2 Tactic 3 34 Goal Strategy Generate awareness and visitation to Estes Park during Frozen Dead Guy Days through an integrated marketing strategy. Create a multi-channel marketing campaign complete with advertising, public relations, social media and content strategies to maximize awareness, tickets sales and travel booking. Influencer marketing campaign including ongoing partnerships spanning from ticket sales launch through to event week. Execute an ongoing editorial calendar to manage a consistent stream of website content, social media and blog posts covering the event. Public relations efforts including press releases, pitches and TV appearances centered around the major event milestones including tickets on-sale, line-up announcement and headliner announcement. Tactic 4 Tactic 5 Tactic 6 35 Cont’d Cont’d Extend the Season: April & August 36 Key Organizational Goals Drive visitation during need periods of April and late August by sponsoring and developing signature events. Develop an advertising, paid social media, public relations, and content creation campaign to attract consumers likely to travel in April and late August, including couples, milestone travelers, and retirees/pre-retirees. 37 Strategy Boost visitor numbers in April, a critical period in spring before the bustling summer season. Collaborate with community partners to plan a successful event season in April, including sponsoring a variety of local events and organizing VEP’s 2nd Annual Earth Week. Tactic 1 Tactic 2 Tactic 3 Tactic 4 Goal Work with community partners to aid in developing, promoting, and marketing local events. Execute the 2nd Annual Earth Week as an authentic Estes Park experience. Launch an integrated marketing campaign to target travelers most likely to travel in early spring/April. Support event and project development through a sponsorship program and marketing and staff support. 38 Strategy Increase visitation in the late August need period when summer occupancy levels soften. Support and promote an enticing late August visitor experience, including arts-focused events, while encouraging destination development of ancillary local events. Tactic 1 Tactic 2 Goal Support local event and activity development through a sponsorship program. Launch an integrated marketing campaign to target travelers most likely to travel in late August, with a focus on extended locals. 39 Extend the Season: Winter & Holidays 40 Key Organizational Goals Prolong the busier season and foster economic stability by implementing initiatives that attract visitors seeking memorable and rewarding winter travel experiences. Achieve sustainable destination development by sponsoring Winter/Holiday programs to enhance the area's appeal, attract more visitors and bolster the local economy during a critical need period. Increase winter/holiday visitation by positioning and promoting Estes Park as a non-ski outdoor adventure getaway. Enhance our winter wonderland image through advertising, paid social media, public relations and content creation efforts. 41 See the outcome of last year's goals in our 2023 Annual Report. Extend the tourism season to support local businesses, retain skilled employees, and increase revenue streams for the community. Goal Leveraging the success of last years Catch the Glow launch, continue to enhance the winter experience in Estes Park by transforming the destination into a classic winter wonderland through the collaborative efforts of the community and stakeholders. Strategy Tactic 1 Tactic 2 Enhance and grow a signature Catch the Glow weekend event series to enhance, support and encourage overnight stays during the holidays. Encourage business owners to decorate for the holidays through development and sponsorship of decoration contests. 42 Extend the tourism season to support local businesses, retain skilled employees, and increase revenue streams for the community. Tactic 3 Tactic 4 Tactic 5 Goal Leveraging the success of last years Catch the Glow launch, continue to enhance the winter experience in Estes Park by transforming the destination into a classic winter wonderland through the collaborative efforts of the community and stakeholders. Strategy Encourage lodging partners to create or enhance holiday packages to encourage overnight stays. Continue to enhance Bond Park, Elkhorn and main arterial corridor lighting. Support event and destination development of ancillary events to enhance existing programming through a sponsorship program and marketing support. Cont’d Cont’d 43 Strategy Increase awareness and visitation to Visit Estes Park in the Winter and holiday season through an integrated marketing strategy. Use comprehensive tracking, combined with travel data, to guide season- specific targeting for media placements to prospects in key markets. Support the marketing plan with public relations and content efforts. Tactic 1 Tactic 2 Tactic 3 Goal Execute a dedicated winter marketing campaign with season-specific interests and targeting. Position Estes Park as the picturesque winter wonderland, offering an affordable family-friendly getaway, through media pitches, social media and blog content. Promote winter events, activations and activities through paid, owned and earned media channels, as well as social media influencer partnerships and engaging collateral pieces. 44 Leisure Consumer Marketing 45 Key Organizational Goals Generate 900 million paid and earned media impressions Exceed 10 million paid and organic social media impressions Drive 2 million views on VisitEstesPark.com Deliver 400,000 referrals to lodging partner booking engines and websites Obtain 20,000 engagements on Rocky Mountain Roamer AI travel planner Integrate messages of sustainability, inclusion and preserving community character at all levels of guest communications 46 See the outcome of last year's goals in our 2023 Annual Report. Paid Media 47 Tactic 1 Tactic 2 Tactic 3 Goal Increase destination demand i n all market segments, specifically during need periods, to ensure economic stability, disperse visitors and moderate congestion. Showcase ease of access from Denver International Airport (DEN) to Estes Park to flight markets, as well as short drive for drive markets. Strategy Generate an increase in demand for overnight lodging stays by driving intent to visit Estes Park during need p eriods including April, late August, fall weekdays, winter and spring. Engage with potential visitors through mass reach and niche targeting, ensuring we capture the interest of all key audiences. Continually optimize campaigns based on data and analytics. 48 Tactic 4 Tactic 5 Tactic 6 Goal Increase destination demand i n all market segments, specifically during need periods, to ensure economic stability, disperse visitors and moderate congestion. Strategy Generate an increase in demand for overnight lodging stays by driving intent to visit Estes Park during need p eriods including April, late August, fall weekdays, winter and spring. Leverage the power of analytics and strategic regional NoCo partnerships to identify and tap into emerging markets, staying ahead of trends and capturing new opportunities. Market to visitors more likely to travel during slower times, including couples and milestone travelers. Develop advertising campaigns specific to Extend the Season destination development efforts. Cont’d Cont’d 49 Tactic 1 Tactic 2 Tactic 3 Goal Maximize an alytics & data optimization. Test different creative messages to different audience segments within digital and paid social to gain a deeper understanding of their preferences and responsiveness. Strategy Build strateg y and tactics on robust analytics leveraging data to optimize efforts. Utilize sophisticated targeting and retargeting strategies to reach and engage the right audience with personalized messages, delivered at the optimal time for maximum impact. Leverage analytical tools to optimize digital messaging and delivery to maximize performance and goal conversions that deliver on Key Performance Indicators (KPIs). 50 Tactic 1 Tactic 2 Tactic 3 Goal Obtain maximum value from advertising campaigns through optimized media plans. Focus budget on the most effective measures and added value must-haves. Strategy Distribute advertising on media channels specific to the media usage habits of each audien ce segment. Use effective media partnerships to reach consumers most likely to visit. Monitor key performance metrics by using media that delivers measurable results in the form of impressions, click-through rates and net economic impact. Tactic 4 Maintain paid social media throughout the year to continue consumer conversations and promote year-round offerings. 51 Tactic 1 Tactic 2 Tactic 3 Goal Leverage marketing assets t o target audiences. Integrate video assets into cross-channel units maximizing views and increasing click-throughs. Utilize staff photographer to continuously refresh assets. Strategy Harness the power of video and image assets to craft inspirational narrat ives which create emotional connections and amplify aspirational desire among travelers. Develop high-impact interactive gamified units with proven success to deliver a high-end user experience driving engagement and clicks. Engage potential visitors through dynamic visual storytelling including listicles, search engines and print ads prioritizing attractive creative assets. 52 Tactic 4 Tactic 5 Tactic 6 Goal Leverage marketing assets t o target audiences. Evolve the Estes Inspired storytelling campaign featuring exceptional stories from Estes Park locals, encouraging responsible visitation. Strategy Harness the power of video and image assets to craft inspirational narrat ives which create emotional connections and amplify aspirational desire among travelers. Present Visit Estes Park as an outdoor destination offering activities accessible to all ages and abilities, in all seasons. Create a dedicated sustainability campaign on paid social media and search promoting the second season of Do Estes Right educational PSA videos. 53 Cont’d Cont’d Tactic 1 Tactic 2 Tactic 3 Goal Utilize paid media to driv e visitors to new travel planning tools and resources using AI and social media. Develop a programmatic display and paid social media campaing to increase visitor guide sign-ups and requests. Strategy Develop a dedicated paid media strategy for travel planning tools in order to reach visitors in unique ways. Utilize programmatic display and paid social media to drive potential visitors to Rocky Mountain Roamer AI travel planning tool, available on our website, WhatsApp, Facebook and Instagram. Leverage paid social media to drive visitors to VEP influencer page, for firsthand information and tips from an Estes Park local. 54 Paid Social Media Allocation 55 Paid Media Allocation Content Development 56 Tactic 1 Tactic 2 Tactic 3 Goal Use storytelling to showcase the range of activities and businesses offered in Estes Park and educate guests on how to do Estes right. Utilize an artificial intelligence (AI) platform to create more high-quality and relevant content in the VEP brand voice and style while saving time and resources on content production. Strategy Develop, curate and promote world-class content through dynamic and diverse storytelling. Maintain and expand a robust content library to generate affinity for the destination, highlight distinctive brand attributes and evoke an emotional connection with the consumer. Partner with businesses on content development to bring a diverse range of perspectives and foster community involvement and a sense of ownership. 57 Tactic 4 Tactic 5 Tactic 6 Goal Use storytelling to showcase the range of activities and businesses offered in Estes Park and educate guests on how to do Estes right. Highlight businesses implementing green practices to attract environmentally conscious guests and maintain a regular cadence of sustainable travel articles. Showcase a diverse representation of identities and abilities to position Estes as a welcoming destination. Increase short-form video content to convey a sense of connection with the destination and to create a participation culture across platforms like TikTok, Instagram and YouTube. Strategy Develop, curate and promote world-class content through dynamic and diverse storytelling. Cont’d Cont’d Tactic 7 Complete a second season of Do Estes Right PSA videos and Estes Inspired community storytelling videos. 58 Goal Tactic 1 Tactic 2 Develop strategic content to boost engagement, visitation and cultivate reverence. Utilize data research to implement technical and content recommendations provided by Simpleview's Search Engine Optimization team. Tactic 3 Strategy Optimize the Visit Estes Park online experience on VisitEstesPark.com, social media channels and Rocky Mountain Roamer artificial intelligence (AI) travel planning tool, in order to educate and inspire all audiences. Channel advertising and social communications towards the AI travel planning tool, in addition to VisitEstesPark.com content and landing pages, and track referrals to stakeholder booking engines and websites. Evolve and manage a comprehensive editorial calendar, while optimizing the VisitEstesPark.com homepage to serve as an ideal landing page for digital visitors. 59 Tactic 4 Tactic 5 Tactic 6 Goal Develop strategic content to boost engagement, visitation and cultivate reverence. Captivate web users with content that strikes a balance between practical destination insights and resources, and aspirational storytelling. Strategy Optimize the Visit Estes Park online experience on VisitEstesPark.com, social media channels and Rocky Mountain Roamer artificial intelligence (AI) travel planning tool, in order to educate and inspire all audiences. Create web content that aligns with Google priorities in a new AI era, by focusing on actions and content that is user and audience-focused and leads with key information and summaries. Apply search optimization techniques, including keyword research and best practices, to enhance new content pages. Cont’d Cont’d 60 Goal Tactic 1 Tactic 2 Build visitor inten t to travel through strategic outreach. Build the e-newsletter subscriber database, grow click-through and open rates through A/B testing and optimizing our content pillars. Tactic 3 Strategy Optimize a n online outreach program that leverages email newsletters to consumers. Create a well-crafted welcome email drip campaign for new subscribers consisting of responsible travel trips, an introduction to the destination and other ways to engage and make them feel valued from the start. Design targeted re-engagement campaigns to win back inactive subscribers or those who haven't interacted with our emails for a while. 61 Goal Tactic 1 Tactic 2 Provide comprehensive travel planning tools for potential visitors. Evolve the Rocky Mountain Roamer AI travel planning tool with new features and enhanced user experience. Tactic 3 Strategy Create travel planning tools available through various channels and mediums to reach consumers where and how they prefer to research. Research if a new visitors guide is necessary, which would pull the most valuable resources on VisitEstesPark.com into a print and digital guide. Continue guide partnerships for visitors in market via print and digital. Stay abreast of new guide parntership opportunities. Grow the Visit Estes Park social media influencer account @clairefromestes, providing first hand knowledge from an Estes Park local. 62 Social Media 63 Tactic 1 Tactic 2 Tactic 3 Goal Boost engagement to maximize reach across all soci al channels. Strategy Use key social media channels to drive awareness and create engagement with traveling consumers . Continue building a highly engaged community of followers by communicating regularly with them to influence and promote Visit Estes Park's Instagram, Facebook, X, TikTok, YouTube and LinkedIn accounts. Increase short-form video content to convey a sense of connection with the destination and to create a participation culture across platforms like TikTok, Instagram and YouTube. Utilize social media to expand presence on Google’s search results page by utilizing forums like Reddit or TripAdvisor, and creating a consistent flow of content on VEP’s influencer page. 64 Goal Tactic 4 Tactic 5 Boost engagement to maximize reach across all soci al channels. Strategy Use key social media channels to drive awareness and create engagement with traveling consumers . Highlight the Visit Estes Park team and board along with key stakeholders and their efforts on business-focused channels like LinkedIn. Use paid social media to reach our target markets and demographics by lifestyle preferences, expand the reach of marketing campaigns and generate awareness for destination events. Cont’d Cont’d 65 Public Relations 66 Tactic 1 Tactic 2 Tactic 3 Goal Earn coverage positioning Estes Park as an authentic, vibrant mountain town, offering sustainable recreation and dynamic activities to all. Strategy Communicate and emphasize all there is to see and do in Estes, including locally-owned shops you won’t find any where else, exciting attractions, food for every taste and world-class recreational opportunities. Host press trips, group FAMs and attend media marketplaces to develop and strengthen media relationships, including media from a diverse range of backgrounds. Write and distribute seasonal “what’s new” press releases, as well as monthly press releases on major initiatives. Supply destination information to PR agency for inclusion in monthly pitching and press releases, highlighting offerings that are unique to Estes Park, emphasizing authentic Estes stories. 67 Tactic 4 Tactic 5 Tactic 6 Goal Earn coverage positioning Estes Park as an authentic, vibrant mountain town, offering sustainable recreation and dynamic activities to all. Strategy Communicate and emphasize all there is to see and do in Estes, including locally-owned shops you won’t find any where else, exciting attractions, food for every taste and world-class recreational opportunities. Continue to update the online newsroom and press kit collateral to meet journalist needs, including photo/video. Maintain an ongoing social media influencer program showcasing Estes Park from a firsthand POV. Measure success by evaluating earned coverage against PR goals designed to support marketing goals and increase overall brand awareness. Cont’d Cont’d 68 Tactic 1 Tactic 2 Tactic 3 Goal Increase national brand awarene ss of Estes Park. Strategy A. Leverage national trav el trends to increase national brand awareness. B. Create newsworthy communications of Estes Park's seasonal offerings to drive year-round media interest and coverage. Attend PR events and media marketplaces to connect with publications reaching our target audiences. Develop engaging, personalized itineraries for individual press visits to facilitate authentic, firsthand stories. Create content for news, pitches and editorials across audiences, including media, to maximize message reach, boost awareness and create synergy among VEP communications platforms and media outreach initiatives. 69 Tactic 1 Tactic 2 Tactic 3 Goal Increase international brand awareness of Estes Park. Strategy Leverage Colorado Tourism Office partnerships to increase brand awareness on an international level. Develop a deeper understanding of Estes Park's top international markets and what inspires them to visit the destination. Attend Colorado Tourism Office calls and media missions reaching target international markets. Include the international team on VEP’s media list. Participate in hosting press trips arranged by the Colorado Tourism Office to provide international journalists with firsthand experiences in the destination. Respond to requests for information with curated information to suit international publications. 70 Tourism Advocacy & Community Relations 71 Goal Strategy Establish and strengthen partner relationships with Visit Estes Park. Support partners through education, connection and staff resource support and track personal communication in the CRM portal. Host an annual open-house event that provides partners with OLIVE training. Host DTN to connect partners with advertising opportunities. Organize quarterly community roundtables to share information, gather input, and provide guest speakers, such as community leaders and experts. Offer meetings to discuss the opportunities available through Visit Estes Park. Tactic 1 Tactic 2 Tactic 3 Tactic 4 72 Goal Strategy Establish and strengthen partner relationships with Visit Estes Park. Cont’d Cont’d Support partners through education, connection and staff resource support. Tactic 5 Tactic 6 Tactic 7 Tactic 8 Engage partners in the Beyond Program. Continue to offer the Visit Estes Park sponsorship program to provide financial and in-kind marketing support for community and Town of Estes Park events and projects. See a list of 2023 sponsored events here. Host a state of the tourism industry event that allows for two-way dialogue. Maintain an increased presence at Estes Park and Larimer County events to serve as a community resource and demonstrate support during events. 73 Goal Strategy Establish and strengthen partner relationships with Visit Estes Park. Cont’d Benchmark resident and partner tourism sentiment. Conduct a resident sentiment survey.Conduct a partner sentiment survey. Tactic 1 Tactic 2 74 Goal Establish and strengthen partner relationships with Visit Estes Park. Cont’d Champion the community’s interesting programs and local businesses’ inclusion and sustainability efforts to Visit Estes Park audiences. Tactic 1 Tactic 2 Tactic 3 Strategy Post at least six blogs showcasing the interesting and admirable things local tourism businesses and organizations do. Post at least 12 Facebook posts that focus on sustainable tourism messages. Post at least 2 Instagram reels that focus on sustainable tourism information. 75 Communicate Visit Estes Park initiatives and programs to the community. Reach the Estes Park community through written communication and in-person interactions. Tactic 1 Tactic 2 Goal Strategy Develop a robust editorial calendar that leverages written content and video content distributed through advertorials in the local newspapers, Visit Estes Park’s stakeholder e-newsletters, the Visit Estes Park Partners Facebook Group, press releases and the partner's pages on VisitEstesPark.com. Enable the community relations team to communicate these messages during in-person meetings by informing them of key talking points. 76 Leverage data to advocate for tourism in Estes Park. Tactic 1 Tactic 2 Goal Strategy Develop a program to demonstrate the value of tourism to partners and residents using data. Incorporate monthly messaging into partner newsletters and Partners Facebook Group posts. Develop a partner communication program to share personalized data with individual businesses. 77 Goal Strategy Prioritize partnerships within the Estes Valley, Larimer County and the state of Colorado. Collaborate with Northern Colorado partners on initiatives and projects that will lift the region. Participate in Northern Colorado winter marketing campaigns. Participate in Northern Colorado international travel trade familiarization tours and international promotion efforts like IPW. Be available and prioritize participation in opportunities as they arise. Tactic 1 Tactic 2 Tactic 3 78 Prioritize partnerships within the Estes Valley, Larimer County and the state of Colorado. Continue to develop relationships with Roosevelt National Forest, Hermit Park Open Space, Rocky Mountain National Park Visitor Centers and Colorado Welcome Centers. Tactic 1 Tactic 2 Goal Strategy Request biannual meetings with each organization to share information, explore how we can work together and report on shared projects. Host FAM tour with Colorado Welcome Center staff so they can better market our destination. Cont’d 79 Prioritize partnerships within the Estes Valley, Larimer County and the state of Colorado. Strengthen relationships with Rocky Mountain National Park, the Town of Estes Park, Larimer County and the Estes Park Visitor Center. Tactic 1 Goal Strategy Continue building value in partnerships with these organizations, while regularly pursuing and developing effective ways to collaborate. Cont’d 80 Sales & Services 81 Boost the number of travel trade bookings and sales both domestically and internationally. Participate in relevant domestic and international trade shows, conferences and industry events to connect with travel trade professionals and showcase Estes Park’s offerings. Tactic 1 Tactic 2 Tactic 3 Goal Strategy Build and maintain relationships with key travel trade partners, nurturing existing partnerships and exploring new collaboration opportunities. Connect partners with key receptive international operators in order to get them listed as participating hotels/lodges with static rates. Work with the Colorado Tourism Office to host domestic and international travel/trade FAM tours. Attend relevant trade shows and events, including IPW and Go West, and partner with local businesses where possible. When applicable, share relevant learnings or show stakeholders how it brings value back to the community. 82 Boost the number of travel trade bookings and sales both domestically and internationally. Develop compelling sales and marketing materials, including wedding and group/conference materials, itineraries, videos, and other online content, highlighting Estes Park's selling points. Tactic 1 Tactic 2 Tactic 3 Goal Strategy Create a comprehensive travel trade webpage with relevant information, resources, and tools specifically designed for travel trade partners, with a focus on group, wedding, and international travel. Utilize digital marketing channels to reach travel trade professionals and generate leads. Utilize white-label AI tool to assist in developing sales and marketing materials in languages other than English. Cont’d 83 Boost the number of travel trade bookings and sales both domestically and internationally. Encourage local businesses to increase travel trade inventory and encourage destination development opportunities. Tactic 1 Tactic 2 Goal Strategy Provide education and training opportunities for local businesses to familiarize themselves with the travel trade industry and Visit Estes Park resources. Connect lodgers and attractions with receptive tour operators in order to contract, build and sell itineraries to the international traveler. Cont’d 84 Increase the number of group bookings for meetings, conferences, reunions, weddings and events, encouraging occupancy during need periods. Participate in relevant trade shows, conferences and industry events to connect with meeting and event professionals and showcase Estes Park’s offerings. Tactic 1 Tactic 2 Tactic 3 Goal Strategy Attend networking and educational events to connect with meeting planners and industry professionals. Renew and engage with industry groups that provide quality leads and RFPs. Attend valuable trade shows to grow meeting planner connections and collect leads for follow-up. 85 Increase the number of group bookings for meetings, conferences, reunions, weddings and events, encouraging occupancy during need periods. Collaborate with local businesses to create a comprehensive network of event services and facilitate seamless planning for group bookings. Tactic 1 Tactic 2 Tactic 3 Tactic 4 Goal Strategy Facilitate recurring and one-off educational events to empower partner businesses to engage with groups. Attend local wedding association and alliance meetings to connect with partners and stay informed. Establish strong partnerships with local wedding and event planners, offering them incentives or referral programs, when it makes sense, to bring their clients to Estes Park. Sponsor and host a familiarization trip in partnership with the Wedding Industry Professional Association (WIPA) to garner industry-wide exposure through firsthand experiences. Cont’d 86 Tactic 1 Tactic 2 Increase the number of group bookings for meetings, conferences, reunions, weddings and events, encouraging occupancy during need periods. Goal Cont’d Strategy Design marketing campaigns specifically tailored to reach meeting and event planners. Optimize website’s meeting and event pages and online listings to highlight group, wedding and reunion offerings. Concentrate efforts on markets that are a good fit for Estes Park. 87 Increase the number of group bookings for meetings, conferences, reunions, weddings and events, encouraging occupancy during need periods. Tactic 3 Tactic 4 Tactic 5 Goal Promote specials, discounts and value-added packages specifically for mid-week, shoulder seasons and other need periods. Showcase testimonials from meetings and events held in Estes Park. Produce group/wedding focused video and photography assets for use in sales pitch efforts and at trade shows. Cont’d Strategy Cont’d Design marketing campaigns specifically tailored to reach meeting and event planners. 88 Finance & Administration 89 Key Organizational Goals Ensure adherence to financial and budgetary regulations and requirements. Foster a productive, fulfilling work environment for employees. Ensure that equipment, technology, and facilities adequately support the organization's needs. Empower the organization with comprehensive data and insights to facilitate informed decision-making. Continue to provide a transparent and accountable budgeting process. 90 See the outcome of last year's goals in our 2023 Annual Report. Goal Tactic 1 Tactic 2 Ensure that Visit Estes Park aligns its financial and budgetary practices with the standards established by the Governmental Accounting Standards Board and adheres to best practices identified by other Destination Marketing Organizations. Produce precise and timely financial statements to assist the board and management in making well-informed decisions regarding the organization's financial matters. Tactic 3 Strategy Continue to adhere to and enhance established financial data reporting systems where applicable. Follow the Colorado Open Records Act (CORA) by promptly addressing all public records requests. Create and execute an annual budget that corresponds with the organization's strategic and operational objectives. 91 Goal Establish a work environment that is positive and supportive, ensuring employees feel valued and acknowledged. Strategy Align human resources practices with the organization's strategic goals. Ensure access to training programs that focus on enhancing employees' skills and knowledge relevant to their job responsibilities. Provide a work environment that encourages continuous learning and growth which allows employees to seek out new challenges and opportunities to enhance their skills. Encourage employees to seek out opportunities to connect and learn from one another. Provide opportunities for employees to openly discuss organizational goals, challenges, and strategies for improvement so they may contribute their insights, share ideas, and collectively address issues or obstacles. Tactic 1 Tactic 2 Tactic 3 Tactic 4 92 Goal Tactic 1 Tactic 2 Make sure Visit Estes Park has the essential equipment, technology, and facilities to efficiently conduct its operations. Provide employees with the necessary tools, training, and resources to excel in their roles. Tactic 3 Strategy Collaborate with all departments to optimize the delivery of support services, ensuring efficiency, effectiveness, and responsiveness. Embrace innovative technology solutions to optimize efficiency and effectiveness in our operations. Implement process improvement initiatives to eliminate bottlenecks and simplify workflows. 93 Goal Tactic 1 Tactic 2 Establish a culture within the organization that is driven by data. Evaluate Visit Estes Park's competitive stance in the Rocky Mountain area, and identify overall tourism patterns and developing markets. Tactic 3 Strategy Assist staff and stakeholders in utilizing various data sources, enabling data-driven decisions. Assist Visit Estes Park staff by offering research and insights to support their decision-making for marketing and tourism projects. Collaborate with a Data Dashboard provider to establish a system that displays all relevant data clearly and concisely. 94 Goal Tactic 1 Tactic 2 Create a transparent and accountable budget that aligns with Generally Accepted Accounting Principles (GASB) and industry standards. Provide the budget details to the State of Colorado annually as mandated. Tactic 3 Strategy Establish a budget that is meaningful and beneficial for Visit Estes Park stakeholders. Work with all departments to establish the budgetary needs of the organization. Incorporate flexibility into the budgeting system to streamline future years processes. 95 District Tax Fund 10% of 3.5% 6E Funds 6E Passthrough Funds Web Listing Sales Investment Interest $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Lodging tax on stays less than 30 days in the District boundaries. VEP receives the 2% base district tax fund, plus retains 10% of the 6E 3.5% incremental tax increase for marketing purposes. The remaining 90% of the 6E funds are forwarded by VEP to the Town of Estes Park for workforce housing and childcare initiatives. Income from paid placement on VisitEstesPark.com Interest earned from reserve funds $612,500 $5,512,500 $250,000 Operating Revenues: $4,387,500 Total Budgeted Revenues: $9,900,000 $3,500,000 $25,000 96 Personnel Expenses Program Expenses Indirect Expenses 6E Passthrough Funds$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $1,350,000 $2,887,500 $5,512,500 $150,000 97 Operating Expenses: $4,387,500 Total Budgeted Expenses: $9,900,000 Key Terms Destination Stewardship Colorado Tourism Office's official definition of destination stewardship is that it is "a transformational holistic approach that seeks to find harmony between quality of life for residents and a strong visitor economy while protecting our cultural and natural resources." Responsible Tourism According to the Colorado Tourism Office (CTO), responsible tourism is important because "[w]ith many Colorado residents voicing concerns about the impacts of travelers on special places and natural resources, the [CTO] Roadmap’s steward pillar laid the groundwork for a new partnership aimed at protecting what makes Colorado such a special destination. As part of this initiative, the Colorado Tourism Office is encouraging travelers to explore off- peak seasons and less-visited destinations, while inspiring them to travel like a local, engage in voluntourism and support causes important to Coloradans." Values-Based Approach Additionally, Destination International makes the case that "words matter in politics, and those words need to be chosen carefully. If we are going to be successful in changing the narrative surrounding our industry, it starts with a values-based approach. That means talking to stakeholders in a manner that is simple and emotional and connects their values to your organization. In this policy brief, we demonstrate why our industry must utilize a new tourism vocabulary to connect with stakeholders in a meaningful way and better illustrate the value of destination organizations. 98 Key Terms Paid Media Impressions An ad impression is counted whenever an ad is displayed and seen on a website, social media, mobile application, digital newspaper or other digital source. BookDirect Lodging Referral BookDirect lodging referrals are user referrals sent from VisitEstesPark.com’s BookDirect booking engine directly to stakeholder booking engines. Referrals occur once a website user performs a search in the VEP BookDirect booking widget, reviews rates on the BookDirect results page and then clicks to be referred to a stakeholder website for more information or to complete their booking. Travel Trade Travel Trade is a tourism term referring to tour operators, travel agents, receptive operators and wholesalers. These professionals organize and contract to buy travel products to sell to groups or individuals. Typically located in the market they are selling to, the travel trade have an intimate knowledge of traveler interests and motivations, and promote tourism experiences and vacations. 99 Earned Media Impressions Earned media impressions refer to the total number of times an earned media article is likely to be seen by an audience; this includes views from various platforms including online news sites and social media shares. Public relations professionals use verified measurement tools that provide analytics to help track the reach and impact of earned media content. In order to continue in our mission of supporting economic vitality, Visit Estes Park may pursue additional opportunities, within the statutory authority of the District, that may present themselves, subject to budget appropriations & board approval. Additional Opportunities 100 Visit Estes Park Staff Rebecca Domenico Gelsinger Cindy Mackin Rachel Ward OppermannDana Paiement Operations Director Chief Strategy Officer Advocacy & Sustainability DirectorDestination Development Director Position Currently Open Chief Executive Officer Heidi Barfels Mike Zumbaugh Kendall AkinJohn Berry Claire Mollé Chief Marketing Officer Chief Financial Officer Creative ManagerPhotographer/Videographer Communications Manager 101 Visit Estes Park Operating Plan REVIEW OF EDITS ATTACHMENT 2 The availability and affordability of workforce housing and childcare has been a significant challenge in the Estes Valley for decades. Until Visit Estes Park’s lodging tax extension (ballot initiative 6E) passed on November 8, 2022, a consistent, meaningful funding mechanism to finance these issues had not been available. As of January 1, 2023, the lodging tax in Estes Park increased from 2% to 5.5% and is collected on overnight stays at hotels, motels, RV parks, campgrounds, guest ranches, rental properties, and other lodging facilities. Two percent is used to fund the Estes Park Local Marketing District. The remaining 3.5% is for funding dedicated workforce housing and childcare projects, with 90% of the funds going to the Town of Estes Park and 10% remaining with VEP for marketing and visitor education, as required by the Colorado statute, such as the Estes Experiences workforce initiative, the community roundtables and the Estes Inspired community initiative. In 2023, this meant $5.9 million in lodging taxes would be earmarked for workforce housing and childcare in Estes Park. Thanks to tourism and lodging taxes, a pathway to significant, positive impacts on these two issues is now in action. In addition to funding public safety services and local amenities, tourism is the engine that drives funding for our community’s workforce housing and childcare programs. What does this mean? A strong tourism economy is crucial in order to create a sustainable community ecosystem where local workers can live and prosper. Tourism success is more significant than ever. What Tourism and Lodging Tax Means to Our Workforce UPDATED 4 Effective destination stewardship is rooted in strong partnerships between governmental agencies and partner organizations within a destination. Knowing this, Visit Estes Park actively maintains collaborative partnerships with the the Town of Estes Park, Larimer County, Estes Park Visitor Center, Estes Park Chamber of Commerce and Rocky Mountain National Park. Visit Estes Park will continue to strengthen relationships with Arapaho-Roosevelt National Forest, Hermit Park Open Space, Rocky Mountain National Park visitor centers, and the Colorado Welcome Centers through communications, information exchange and programming development. Together with these partners, Visit Estes Park will continue implementing its Destination Stewardship Plan, which was developed in collaboration with destination development counselors Clarity of Place and the Colorado Tourism Office. Partners in Destination Stewardship 13 UPDATED UPDATED Strategy Develop existing and introduce new programs that contribute to the pillars of sustainable tourism within our destination. Track and support important destination issues within the community related to tourism. Tactic 1 Tactic 2 Tactic 3 Goal Regularly meet with the organizations working on these issues, including the Town of Estes Park, Larimer County, The Estes Chamber Economic Development Workforce Council, Rocky Mountain National Park, Estes Valley Housing Authority and EVICS. and the NOCO Hospitality Partnership. Contribute to solutions by supporting these organizations’ initiatives with Visit Estes Park resources where appropriate. Partner with organizations and services that are working to make Estes Park more inclusive and sustainable and track the progress to establish benchmarks. 23 UPDATED Strategy Support large-scale, multi-day events that reflect community character and are able to draw overnight visitors during off-peak and need periods. Collaborate with Running Wild Events by sponsoring the inaugural Ski Jor Estes Park in January 2025 with financial and marketing support. Tactic 1 Tactic 2 Tactic 3 Goal Collaborate with event producers to aid in developing the Ski Jor event weekend and satellite events. Launch an integrated marketing campaign to target travelers interested in winter sports, events and experiences, highlighting unique selling propositions. Work with partners to create lodging packages, satellite events, transportation options and special offers to boost the economic impact in the community. 29 UPDATED Strategy Boost visitor numbers in April, a critical period in spring before the bustling summer season. Collaborate with community partners to plan a successful event season in April, including sponsoring a variety of local events and organizing VEP’s 2nd Annual Earth Week. Tactic 1 Tactic 2 Tactic 3 Tactic 4 Goal Work with community partners to aid in developing, promoting, and marketing local events. Execute the 2nd Annual Earth Week as an authentic Estes Park experience. Launch an integrated marketing campaign to target travelers most likely to travel in early spring/April. Support event and project development through a sponsorship program and marketing and staff support. 38 UPDATED Strategy Increase awareness and visitation to Visit Estes Park in the Winter and holiday season through an integrated marketing strategy. Use comprehensive tracking, combined with travel data, to guide season- specific targeting for media placements to prospects in key markets. Support the marketing plan with public relations and content efforts. Tactic 1 Tactic 2 Tactic 3 Goal Execute a dedicated winter marketing campaign with season-specific interests and targeting. Position Estes Park as the picturesque winter wonderland, offering an affordable family-friendly getaway, through media pitches, social media and blog content. Promote winter events, activations and activities through paid, owned and earned media channels, as well as social media influencer partnerships and engaging collateral pieces. 44 UPDATED UPDATED PREVIOUS Paid Social Media Allocation 55 Paid Media Allocation UPDATED Goal Strategy Establish and strengthen partner relationships with Visit Estes Park. Support partners through education, connection and staff resource support and track personal communication in the CRM portal. Host an annual open-house event that provides partners with OLIVE training. Host DTN to connect partners with advertising opportunities. Organize quarterly community roundtables to share information, gather input, and provide guest speakers, such as community leaders and experts. Offer meetings to discuss the opportunities available through Visit Estes Park. Tactic 1 Tactic 2 Tactic 3 Tactic 4 72 UPDATED Goal Strategy Establish and strengthen partner relationships with Visit Estes Park. Cont’d Cont’d Support partners through education, connection and staff resource support. Tactic 5 Tactic 6 Tactic 7 Tactic 8 Engage partners in the Beyond Program. Continue to offer the Visit Estes Park sponsorship program to provide financial and in-kind marketing support for community and Town of Estes Park events and projects. See a list of 2023 sponsored events here. Host a state of the tourism industry event that allows for two-way dialogue. Maintain an increased presence at Estes Park and Larimer County events to serve as a community resource and demonstrate support during events. 73 UPDATED Communicate Visit Estes Park initiatives and programs to the community. Reach the Estes Park community through written communication and in-person interactions. Tactic 1 Tactic 2 Goal Strategy Develop a robust editorial calendar that leverages written content and video content distributed through advertorials in the local newspapers, Visit Estes Park’s stakeholder e-newsletters, the Visit Estes Park Partners Facebook Group, press releases and the partner's pages on VisitEstesPark.com. Enable the community relations team to communicate these messages during in-person meetings by informing them of key talking points. 76 UPDATED Prioritize partnerships within the Estes Valley, Larimer County and the state of Colorado. Continue to develop relationships with Roosevelt National Forest, Hermit Park Open Space, Rocky Mountain National Park Visitor Centers and Colorado Welcome Centers. Tactic 1 Tactic 2 Goal Strategy Request biannual meetings with each organization to share information, explore how we can work together and report on shared projects. Host FAM tour with Colorado Welcome Center staff so they can better market our destination. Cont’d 79 UPDATED District Tax Fund 10% of 3.5% 6E Funds 6E Passthrough Funds Web Listing Sales Investment Interest $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Lodging tax on stays less than 30 days in the District boundaries. VEP receives the 2% base district tax fund, plus retains 10% of the 6E 3.5% incremental tax increase for marketing purposes. The remaining 90% of the 6E funds are forwarded by VEP to the Town of Estes Park for workforce housing and childcare initiatives. Income from paid placement on VisitEstesPark.com Interest earned from reserve funds $612,500 $5,512,500 $250,000 O p e r a t i n g R e v e n u e s : $4 ,3 8 7 ,5 0 0 T o t a l B u d g e t e d R e v e n u e s : $9 ,9 0 0 ,0 0 0 $3,500,000 $25,000 96 UPDATED Personnel Expenses Program Expenses Indirect Expenses 6E Passthrough Funds$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $1,350,000 $2,887,500 $5,512,500 $150,000 97 O p e r a t i n g E x p e n s e s : $4 ,3 8 7 ,5 0 0 T o t a l B u d g e t e d E x p e n s e s : $9 ,9 0 0 ,0 0 0 UPDATED Key Terms Paid Media Impressions An ad impression is counted whenever an ad is displayed and seen on a website, social media, mobile application, digital newspaper or other digital source. BookDirect Lodging Referral BookDirect lodging referrals are user referrals sent from VisitEstesPark.com’s BookDirect booking engine directly to stakeholder booking engines. Referrals occur once a website user performs a search in the VEP BookDirect booking widget, reviews rates on the BookDirect results page and then clicks to be referred to a stakeholder website for more information or to complete their booking. Travel Trade Travel Trade is a tourism term referring to tour operators, travel agents, receptive operators and wholesalers. These professionals organize and contract to buy travel products to sell to groups or individuals. Typically located in the market they are selling to, the travel trade have an intimate knowledge of traveler interests and motivations, and promote tourism experiences and vacations. 99 NEW Earned Media Impressions Earned media impressions refer to the total number of times an earned media article is likely to be seen by an audience; this includes views from various platforms including online news sites and social media shares. Public relations professionals use verified measurement tools that provide analytics to help track the reach and impact of earned media content. In order to continue in our mission of supporting economic vitality, Visit Estes Park may pursue additional opportunities, within the statutory authority of the District, that may present themselves, subject to budget appropriations & board approval. Additional Opportunities 100 NEW PROCEDURE FOR PUBLIC HEARING Applicable items include: Rate Hearings, Code Adoption, Budget Adoption 1.MAYOR. The next order of business will be the public hearing on ACTION ITEM 2. Ordinance 14-24 Amending Chapter 9.40 of the Estes Park Municipal Code Regarding Firearms in Town Hall. At this hearing, the Board of Trustees shall consider the information presented during the public hearing, from the Town staff, public comment, and written comments received on the item. Any member of the Board may ask questions at any stage of the public hearing which may be responded to at that time. Mayor declares the Public Hearing open. 2.STAFF REPORT. Review the staff report. 3.PUBLIC COMMENT. Any person will be given an opportunity to address the Board concerning the item. All individuals must state their name and address for the record. Comments from the public are requested to be limited to three minutes per person. 4.MAYOR. Ask Town Clerk’s Office Staff whether any communications have been received in regard to the item which are not in the Board packet. Ask the Board of Trustees if there are any further questions concerning the item. Indicate that all reports, statements, exhibits, and written communications presented will be accepted as part of the record. Declare the public hearing closed. Request Board consider a motion. 7.SUGGESTED MOTION. Suggested motion(s) are set forth in the staff report. 8. DISCUSSION ON THE MOTION. Discussion by the Board on the motion. 9. VOTE ON THE MOTION. Vote on the motion or consideration of another action. *NOTE: Ordinances are read into record at the discretion of the Mayor as it is not required to do so by State Statute. TOWN ADMINISTRATOR’S OFFICE Memo To: Honorable Mayor Hall Board of Trustees From: Town Administrator Machalek Date: October 8, 2024 RE: Ordinance 14-24 Amending Chapter 9.40 of the Estes Park Municipal Code Regarding Firearms in Town Hall (Mark all that apply) PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER: _____________ QUASI-JUDICIAL YES NO Objective: Consider an amendment to the Estes Park Municipal Code regarding the carrying of firearms in Town Hall. Present Situation: During the 2024 Regular Session, the State Legislature passed SB24-131 (Prohibiting Carrying Firearms in Sensitive Spaces). The bill prohibits a person from knowingly carrying a firearm, both openly and concealed, in specific government buildings, including their adjacent parking areas. As written, the law applies to Town Hall and changes how the Town has traditionally addressed the carrying of firearms in Town Hall. Prior to the passage of this bill, open carry was prohibited in Town Hall while lawful concealed carry was allowed. The bill allows local governments to enact an ordinance that permits carrying firearms in buildings otherwise impacted by the new legislation (allowing for local control). Proposal: The attached proposed ordinance would amend the Municipal Code and exercise the local control allowed by SB24-131 to continue to allow the lawful carrying of concealed firearms in Town Hall in most situations. It is important to note that Section 18-12-105.3(1)(c), C.R.S. (2024) prohibits carrying a firearm, whether loaded or unloaded, in a courthouse or any other building or portion of a building used for court proceedings. Accordingly, it is unlawful to carry any firearm in the Town Board Room or any other portion of Town Hall, while in such portion either court is in session, or law enforcement personnel, defense counsel personnel, or court personnel are engaged in any activities in connection with a court proceeding (certain individuals may carry firearms in court locations as identified by statute). In the future, the Town will place signs at the public entrances to such locations while Municipal Court is in session notifying the public that firearms are not permitted. Advantages: • Preserves the Town’s locally-determined approach to the carrying of firearms in Town Hall to the greatest extent allowed by SB24-131. Disadvantages: • Some residents may favor the State’s more restrictive regulations. Action Recommended: Staff recommends approval of the attached Ordinance. Finance/Resource Impact: No financial impact anticipated at this time. Level of Public Interest Medium Sample Motion: I move for the approval/denial of Ordinance 14-24. Attachments: 1. Ordinance 14-24 ORDINANCE NO. 14-24 AN ORDINANCE AMENDING CHAPTER 9.40 OF THE ESTES PARK MUNICIPAL CODE REGARDING FIREARMS IN TOWN HALL WHEREAS, concealed carry of firearms with a proper permit has previously been permitted at Town Hall; and WHEREAS, section 18-12-105.3 of the Colorado Revised Statutes, enacted during the 2024 legislative session, prohibits carrying a firearm at Town Hall unless the Town permits it; and WHEREAS, the Town intends to apply the laws governing firearms at Town Hall prior to the enactment of section 18-12-105.3 insofar as is permissible, understanding that the statute does not authorize the Town to permit carrying a firearm in portions of Town Hall used for court proceedings. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO AS FOLLOWS: Section 1: Chapter 9.40 of the Estes Park Municipal Code is hereby amended, by the addition of a section 9.40.030, to read as follows: 9.40.030 – Lawful concealed carry permitted at Town Hall; exceptions For the purposes of section 18-12-105.3(1)(b) and (4)(b), C.R.S. (2024), it is permitted to carry a firearm within the Municipal Building, also known as Town Hall, so long as it is not prohibited under section 9.40.010, above. Notwithstanding the foregoing, section 18-12-105.3(1)(c), C.R.S. (2024) prohibits carrying a firearm, whether loaded or unloaded, in a courthouse or any other building or portion of a building used for court proceedings. Accordingly, it is unlawful to carry any firearm in the Town Board Room or any other portion of Town Hall, while in such portion either court is in session, or law enforcement personnel, defense counsel personnel, or court personnel are engaged in any activities in connection with a court proceeding; except that certain individuals may carry firearms in court locations as identified by statute. During such times, the Town shall place signs before the public entrances to such locations notifying the public that firearms are not permitted. Section 2: This Ordinance shall take effect and be enforced thirty (30) days after its adoption and publication. PASSED AND ADOPTED by the Board of Trustees of the Town of Estes Park, Colorado this ____ day of _______________, 2024. TOWN OF ESTES PARK, COLORADO By: Mayor ATTEST: Town Clerk ATTACHMENT 1 I hereby certify that the above Ordinance was introduced at a regular meeting of the Board of Trustees on the day of , 2024 and published by title in a newspaper of general circulation in the Town of Estes Park, Colorado, on the day of , 2024, all as required by the Statutes of the State of Colorado. Town Clerk APPROVED AS TO FORM: Town Attorney FINANCE DEPARTMENT Memo To: Honorable Mayor Hall Board of Trustees Through: Town Administrator Machalek From: Duane Hudson, Finance Director Laura Garcia, Accounting Manager Date: October 8, 2024 RE: Accept Delivery of the Audited Financial Statements for the Year Ending December 31, 2023 (Mark all that apply) PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER QUASI-JUDICIAL YES NO Objective: Formally accept the Haynie & Company audit of the Annual Comprehensive Financial Report (ACFR) for the year ended December 31, 2023. Present Situation: The Town of Estes Park has received the annual audit of its financial statements as required by State Statute CRS 29-1-603 and, when applicable, the Federal Single Audit Act. The ACFR has been posted online on the Finance webpage at: 2023 Annual Comprehensive Financial Report The audit covers the Town’s operations, including its two component units Visit Estes Park (VEP) and the Estes Park Housing Authority (EPHA). Note 1 Summary of Significant Accounting Policies on page 36 of the ACFR explains the inclusion of VEP and EPHA in the reporting entity. Please note that this is the first year EPHA is included as part of the Town’s reporting entity, primarily due to the significance of the Lodging Tax pass through which began in 2023. Ty Coleman, Audit Partner and Abbey Irvine, Auditor Manager with Haynie & Company, met with the audit committee on Sept 23, 2024 at 9:30 am to review the ACFR and results of the audit. The independent auditor’s report expressed an unmodified (“clean”) opinion that the financial statements presented fairly, in all material respects, the financial position of the funds and activities of the Town of Estes Park in conformity with Generally Accepted Accounting Principles (GAAP). They also explained the management comment included in the internal control reports. This is the fourth year the audit was performed by this firm. To comply with State Statute filing deadlines as well as grant and bond filing deadlines, the ACFR has already been filed with the appropriate agencies. This action item is to formally acknowledge the receipt of the audit by the Town Board, as recommended by the audit committee. Proposal: Approve the audit committee’s recommendation to accept the audit report and ACFR as presented. Advantages: This will demonstrate compliance with State Statutes, bond covenants, and grantor requirements. Disadvantages: None identified. Action Recommended: The audit committee, by unanimous consent, referred the acceptance of the audit report and ACFR for the year ended Dec 31, 2023 to the Town Board for final consideration. Finance/Resource Impact: The audit is an ongoing annual obligation budgeted within the three following accounts: 101-1500-415-22-01 502-6501-560-22-01 503-6500-560-22-01 The total fee for the audit of the 2023 ACFR was $64,700 within the budgeted amount. Level of Public Interest I have received no inquiries or comments from the public regarding this ACFR. Sample Motion: I move for the approval/denial of acceptance of the audit report and Annual Comprehensive Financial Report for the year ended December 31, 2023. Attachments: 1)2023 Annual Comprehensive Financial Report 2)Management Letter dated 9-30-2024 3)Communication of Material Weakness dated July 9, 2024 4)Presentation by Haynie & Company TOWN OF ESTES PARK, COLORADO ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Fiscal Year Ended December 31, 2023 ATTACHMENT 1 Table of Contents Page Introductory Section List of Principal Officials ......................................................................................................................... 1 Organizational Chart ................................................................................................................................ 2 GFOA Certificate of Achievement ........................................................................................................... 3 Letter of Transmittal .............................................................................................................................. 4-9 Financial Section Independent Auditors’ Report ............................................................................................................. 10-13 Management's Discussion and Analysis ............................................................................................... 14-26 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ....................................................................................................................... 27 Statement of Activities ........................................................................................................................... 28 Governmental Funds Balance Sheet .......................................................................................................................................... 29 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................ 30 Combined Statement of Revenues, Expenditures and Changes in Fund Balances ................................. 31 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................ 32 Proprietary Funds Statement of Net Position ...................................................................................................................... 33 Statement of Revenues, Expenses and Changes in Net Position ............................................................ 34 Statement of Cash Flows ......................................................................................................................... 35 Notes to Financial Statements ................................................................................................................. 36-86 Required Supplemental Information Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual General Fund ................................................................................................. 87 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual Street Improvement Fund .............................................................................. 88 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual Workforce Housing/Childcare Lodging Tax Fund ......................................... 89 Schedules of Proportionate Share of the Net Pension and OPEB Liabilities and Related Ratios and Schedule of Employer Contributions – PERA Local Government Division Trust Fund ................. 90 Schedules of Changes in the Town’s OPEB Liability and Related Ratios .............................................. 91 Other Supplementary Information Combining, Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds – Combining Balance Sheet ............................................................................................................ 92 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................................... 93 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual – Governmental Funds Community Reinvestment Fund .................................................................................................. .94 Open Space Fund ......................................................................................................................... 95 Conservation Trust Fund ............................................................................................................. 96 Emergency Response Fund .......................................................................................................... 97 Community Center Fund ............................................................................................................. 98 Parking Services Fund ................................................................................................................. 99 Trails Expansion Fund ............................................................................................................... 100 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual – Proprietary Funds Power and Communications Fund .............................................................................................. 101 Water Fund ................................................................................................................................ 102 Workforce Housing Linkage Impact Fee..................................................................................... 103 Combining, Individual Fund Financial Statements and Schedules Internal Service Funds – Combining Statement of Net Position ....................................................................................... 104 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Position ............................................................................................................. 105 Combining Statement Cash Flows ............................................................................................... 106 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual – Internal Service Funds Fleet Maintenance Fund ............................................................................................................ 107 Vehicle Replacement Fund ......................................................................................................... 108 Information Technology Fund ................................................................................................... 109 Medical Insurance Fund ............................................................................................................ 110 Risk Management Fund ............................................................................................................. 111 State Compliance Local Highway Finance Report ........................................................................................... 112-113 Statistical Section Financial Trends Net Position ................................................................................................................................. 114 Changes in Net Position ...................................................................................................... 115-116 Fund Balances – Governmental Funds ....................................................................................... 117 Changes in Fund Balances – Governmental Funds .................................................................... 118 Revenue Capacity Sales Tax Revenue by Type of Industry ..................................................................................... 119 Direct and Overlapping Sales Tax Rates .................................................................................... 120 Principal Sales Tax Categories .................................................................................................. 121 Debt Capacity Ratios of Outstanding Debt by Type .......................................................................................... 122 Ratios of General Bonded Debt Outstanding and Legal Debt Margin ...................................... 123 Direct and Overlapping Governmental Activities Debt ............................................................ 124 Pledged – Revenue Coverage ..................................................................................................... 125 Demographic and Economic Information Demographic and Economic Statistics ........................................................................................ 126 Principal Employers .................................................................................................................. 127 Operating Information Full-Time Equivalent Employees by Function/Program ........................................................... 128 Operating Indicators by Function/Program ......................................................................... 129-130 Capital Assets Statistics by Function/Program ............................................................................ 131 Compliance Section Reports to Governmental Agencies Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................................... 132-133 Independent Auditors’ Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance .............................. 134-135 Schedule of Findings and Questioned Costs ........................................................................ 136-137 Schedule of Expenditure of Federal Awards .............................................................................. 138 Notes to Schedule of Expenditures of Federal Awards ............................................................. 139 TOWN OF ESTES PARK LIST OF PRINCIPAL OFFICIALS TOWN GOVERNMENT The Town of Estes Park is governed by a Mayor and a six-member Board of Trustees. The Mayor and Trustees are elected for four year terms. The Trustees and the Mayor each have one vote in town board meetings. Listed below are the Town officials and principal staff members as of December 31, 2023. Mayor Elected 2020 Wendy Koenig Mayor Pro Tem Re-elected 2020 Patrick Martchink Trustees Appointed 2023 Frank Lancaster Elected 2022 Kirby Hazelton Elected 2020 Barbara MacAlpine Re-elected 2022 Marie Cenac Elected 2020 Cindy Younglund Staff Town Administrator Travis Machalek Deputy Town Administrator Jason Damweber Town Clerk, Dir. of Admin Services Jackie Williamson Finance Director Jeremy Creamean Interim Chief of Police Ian Stewart Director of Community Development Vacant Director of Community Services Rob Hinkle Director of Public Works Greg Muhonen Director of Utilities Reuben Bergsten Public Information Officer Kate Miller Town Attorney Dan Kramer Municipal Judge David J. Thrower 1 2023 ORGANIZATIONAL CHART TOWN OF ESTES PARK ORGANIZATIONAL CHART CITIZENS MAYOR AND TRUSTEES Municipal Judge Town Attorney Utilities Police Finance Community Services Power & Communication Water Planning Building Town Clerk HR Engineering Parks Streets Facilities Fleet Parking and Transit Asst. Town Administrator Public Information Town Administrator Community Development Town Clerk’s Office Public Works Events Complex Visitor Services Patrol Communications (Dispatch) Community Services (Restorative Justice) Code Enforcement Risk Management Museum Information Technology 2 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Estes Park Colorado For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2022 Executive Director/CEO 3 Finance Department 970‐586‐5331 dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG August 15, 2024 To: The Honorable Mayor, Board of Trustees, and Citizens of the Town of Estes Park, Colorado: Formal transmittal The Annual Comprehensive Financial Report (“ACFR”) of the Town of Estes Park, Colorado (the “Town”) for the year ended December 31, 2023, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Town. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the Town. All disclosures necessary to enable the reader to gain an understanding of the Town’s financial activities have been included. The information provided in this section is introductory in nature. Specific financial details are reviewed in the Management’s Discussion and Analysis section of this report. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Haynie & Company has issued an unmodified (“clean”) opinion on the Town of Estes Park’s financial statements for the year ended December 31, 2023. The independent auditor’s report is located at the front of the financial section of this report. Profile of the Government The Town of Estes Park, incorporated in 1917, is a destination resort community nestled in the Rocky Mountain foothills 65 miles northwest of Denver, Colorado. The Town is at the eastern entrance to Rocky Mountain National Park and is visited by over four million people each year. Rocky Mountain National Park has been the number one tourist attraction in northern Colorado for as long as records have been compiled. The Town of Estes Park currently occupies a land area of nearly seven square miles and serves an official population of 5,824 (2023 estimate). 4 Finance Department 970‐586‐5331 dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG area of nearly seven square miles and serves an official population of 5,824 (2023 estimate). The Town is empowered to levy a property tax on both real and personal properties located within its boundaries. It is also empowered to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the Town Board. There were no significant annexations in 2023. Estes Park is a statutory town. Policy‐making and legislative authority are vested in the governing board consisting of the Mayor and six Trustees. The governing board is responsible, among other duties, for passing ordinances, adopting the budget, appointing committees, and hiring the Town Administrator and the Town Attorney. The Town Administrator is responsible for carrying out the policies and ordinances of the governing body, and for overseeing the day‐to‐day operations of the government. The Board is elected on an at‐large basis. Board members serve four‐year staggered terms, with three trustees elected every two years. The Mayor is elected to serve a four‐year term. Elected officials are limited to two consecutive elected terms of office. The ACFR includes all Town funds. The Town provides a broad range of services, including police protection, electric, broadband and water utility services, construction and maintenance of streets and infrastructure, municipal parks, museum, visitors’ center, community planning, building inspections, business and liquor licensing, and an extensive cultural events calendar. In addition to general government activities, the Town has significant operational and/or financial relationships with the Estes Park Building Authority (“EPBA”), the Estes Valley Fire Protection District (“EVFPD”), the Estes Valley Recreation and Park District (“EVRPD”), the Estes Park Housing Authority (“EPHA”) and the Estes Park Local Marketing District (Visit Estes Park – “VEP”). The EVFPD began operating as an independent taxing district in 2010, ending its long‐standing status as a department of the Town. The Town continues to contribute to the EVFPD, with the amount (currently 7% of General Fund sales tax collected) being appropriated annually. The Town is also financially accountable for the EPBA, which provided financing for golf course improvements in 1990. The EPBA completed its most recent agreement with EVRPD in 2009, did not operate in 2010‐23, and currently does not have plans or agreements in place for 2024. The EVRPD is a separately elected special purpose district formed in 1955 and was created for the purpose of supplying recreational facilities within its boundaries. VEP began operating as an independent taxing district in 2009 and collects a 5.5% lodging tax. The 2% lodging tax approved in 2008 is used to promote and advertise Estes Park as a vacation destination, a task previously borne by the Town. The remaining 3.5% lodging tax was approved in 2022 to provide funding for workforce housing and childcare needs. This additional funding, less a small administrative fee, is transferred to the Town of Estes Park for workforce housing and childcare programs. The Town of Estes Park then transfers a significant portion of the funding to EPHA for workforce housing programs. This significant financial arrangement resulted 5 Finance Department 970‐586‐5331 dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG in EPHA becoming part of the Town’s reporting entity beginning in 2023. VEP is listed in the ACFR as the Local Marketing District component unit while EPHA is listed as the Housing Authority component unit. Additional information on these entities can be found in Note 1 in the Notes to the Financial Statements. The annual budget serves as the foundation for the Town’s financial planning and controls. All departments of the Town are required to submit annual requests for appropriation to the Town’s Finance Director beginning in June. The Finance Director uses these requests as the starting point for developing a proposed budget. The proposed budget is then reviewed in a meeting with the Directors and a final balanced budget is then presented to the Town Administrator for his review and revisions. Next, the proposed budget is presented to the Town Board for deliberation in September/October. The board is required to hold public hearings on the proposed budget and must formally adopt the budget before December 15th. This date also serves as the deadline to certify the property tax mill levy to the Larimer County Commissioners. The appropriated budget is prepared by fund and department (e.g., General Fund and Public Works department). Budget‐ to‐actual comparisons are provided in this report for each individual fund for which an appropriated annual budget has been adopted. For the General Fund, the Community Reinvestment Fund, and the Street Improvement Fund, this comparison is presented as part of the required supplemental information of the basic financial statements for the governmental funds. For the other governmental funds with appropriated annual budgets, the budget‐to‐ actual comparison is presented in the Combining and Individual Fund Financial Statements and Schedules section of this report. The Town maintains budgetary controls, the objective of which is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Town Board. Budgetary controls (the level at which expenditures cannot legally exceed the appropriated amount) are established at the fund level. The Town also maintains an encumbrance accounting system as a budgetary control to prevent expenditures from exceeding legal appropriations. Encumbered amounts lapse at fiscal year‐end, and qualifying encumbrances are formally re‐appropriated in the following year as necessary. Assessment of Town’s economic condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Town operates. 6 Finance Department 970‐586‐5331 dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG Local economy Beginning in March 2020, the COVID‐19 global pandemic (pandemic) arrived in Colorado resulting in significant business disruptions. However, by the end of the year, sales tax collections for 2020 were only down by 7.4% from 2019’s record collections. The recovery of the local economy continued throughout 2021, 2022 and into 2023, setting a new record for sales tax collections. Sales tax collections for 2022 had been the previous record at $22,656,741. For 2023, sales tax collections set a new record at $22,880,811, an increase of approximately 1% from the previous record. In April 2014, citizens approved a Ballot issue (1A) that implemented a 1% sales tax increase, sun‐ setting in June 2024. The 10‐year increase dedicated an estimated $2,000,000 annually to Street Improvements/Repairs (60% of the 1%), expansion of public trails (12.5%), construction of a community recreation center including facilities for the Senior Center (25%), and for acquisitions associated with emergency response capabilities of the Town (2.5%). For 2022, $4,527,262 in sales tax was collected in these special revenue funds. In April 2024, citizens approved renewal of the 1% sales tax increase, sun‐setting in June 2034 with some changes in the permitted uses. The Fort Collins/Loveland, Colorado unemployment rate increased from 2.3% to 2.8% through December 2023 (source: U.S. Bureau of Labor Statistics). The Median Family Income in Estes Park (source: U.S. Census Bureau Quick Facts) was $63,598 in 2023. Meanwhile, the Denver‐Aurora‐ Lakewood Colorado CPI (consumer price index) increased from 8.0% in 2022 to 3.2% in 2023. Long‐term financial planning The Town is currently in the process of building a municipally owned and operated high speed broadband service for the Estes Valley doing business as Trailblazer Broadband. Trailblazer Broadband will eventually span the entire electric service territory, providing gig speed internet service over a fiber‐to‐the‐premise network, the only option of its kind available to residential customers in the Estes Valley. Trailblazer Broadband is a division of the Power and Communication Fund and is managed and operated by the Town. To finance construction and startup costs for the new utility, the Town issued $30,030,000 in Power and Communication Fund revenue bonds in November 2019, refunding the remaining $3,030,000 left on the 2007 Light and Power Bonds. Construction is progressing with over 3,774 customers signed up and receiving service as of the date of this letter. Also, a small portion of these bond proceeds was used to complete the buildout of an electric smart meter project that provides real time detailed information on the status of the electric 7 Finance Department 970‐586‐5331 dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG distribution system. During power outage events such as snowstorms, the smart meter system provides very valuable information to help manage responses throughout the service territory. Relevant financial policies The Town has adopted Fund Balance Policy 660 that establishes a minimum annual fund balance reserve that should be maintained in the various funds. For the General Fund, unassigned fund balance at the end of the year must meet a minimum of 25% of total expenditures. In addition, Cash and Investment Reserve and Contingency Policy # 670 establishes guidelines for a monthly minimum cash and investment balance of 2 months average expenditures in order to weather an unexpected significant downturn in the economy. In case the targeted cash and investment balance is not met in any particular month, the policy establishes a foundation of principles and goals to guide budgetary and fiscal management decisions as management takes appropriate action. Both reserve requirements were fully met during 2023. Major initiatives Numerous street improvement projects are well underway with some extending into 2024 and beyond, including the long awaited downtown street project, the Cleave Street rebuilding project, and numerous Fall River Trail system improvement projects. For the utilities, the buildout of the Trailblazer Broadband fiber network continues in the Power and Communications Fund and the Water Fund is in the process of upgrading the former Prospect Mountain Water District water distribution system. This project is partially funded by a USDA grant and loan package with construction expected to continue into late 2024. Another major initiative came about with the renewal of the 1% sales tax that was set to expire June 2024. One of the changes with the renewal was dedication of a portion of these sales tax revenues to a new Stormwater Fund in 2024. This funding will be used to make flood mitigation improvements along the waterways within the Town. The Town continually strives to provide superior services to its citizens and visitors in a cost‐ effective manner, including aggressively seeking Federal and State grants, thus leveraging available local funds, such as in the aforementioned Fall River Trail and former Prospect Mountain Water District projects. Award and acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town for its annual comprehensive financial report (ACFR) for the fiscal year ended December 31, 2022. In order to be awarded a Certificate of 8 Finance Department 970‐586‐5331 dhudson@estes.org 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG Achievement, the Town must publish an easily readable and efficiently organized ACFR. This report satisfied both Generally Accepted Accounting Principles (GAAP) and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Town believes that its current ACFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The successful preparation of this report could not have been accomplished without the dedication and efforts of the entire staff of the Finance Department: Sharla Beesley, Laura Garcia, Tania Mitchell, Deb Holgorsen, Karen Johnson, Kim McEachern, Amy Stoddard and Daniela Serrano. Valuable input was also received from Public Works, Community Development, the Power and Communications/Water utilities, Human Resources and the Public Information Officer. We also wish to extend appreciation to the Mayor and the Trustees for their efforts and support in setting and administering policies for the prudent financial management of the Town of Estes Park. Sincerely, Duane Hudson Interim Finance Director 9 Independent Auditors’ Report Honorable Mayor and Board of Trustees Town of Estes Park, Colorado Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, the discretely presented component units, and the aggregate remaining fund information of the Town of Estes Park, Colorado (the “Town”), as of and for the year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, the discretely presented component units, and the aggregate remaining fund information of the Town, as of December 31, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the Estes Park Housing Authority. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for Estes Park Housing Authority, is based solely on the reports of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 10 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and GAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standard and government auditing standards, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is expressed. •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for a reasonable period of time. •We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 11 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison information, and the pension and other post-employment retirement benefit schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The combining and individual nonmajor fund financial statements, the budgetary comparison schedules, the Local Highway Finance Report, and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards are presented for purposes of additional analysis and are not a required part of the basic financial statements. The information is the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, the budgetary comparison schedules, the Local Highway Finance Report, and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 12 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 15, 2024, on our consideration of the Town’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance. Littleton, Colorado August 15, 2024 13 Town of Estes Park, Colorado Management's Discussion and Analysis December 31, 2023 Town of Estes Park, Colorado MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2023 This section of the Town of Estes Park’s (the “Town”) financial statements provides a narrative overview and analysis of its financial activities for the year ended December 31, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal at the front of this report and the Town’s financial statements, which follow this section. Financial Highlights •The assets and deferred outflows of resources of the Town exceeded its liabilities and deferred inflows of resources at the close of 2023 by $187.7 million ($99.9 million in governmental activities net position and $87.9 million in business-type activities net position). Of the governmental activities net position total, $22.3 million, or 22%, is unrestricted and may be used to meet the government’s ongoing obligations to citizens and creditors. Similarly, $30.8 million, or 35%, of business-type activities net positions is unrestricted. It is important to note that “Unrestricted Net Position” is an accounting term referring to lack of formal commitments (loans, etc.) of assets. It does not reflect the amount of assets that are informally committed to targeted fund balances, unobligated monies for future projects, etc. For example, the Town targets a fund balance (reserve) in the General Fund of 25% of expenditures. This is not considered a “restricted” fund balance, but the Town has earmarked the amount as a reserve for budgetary purposes. •Total net position of the Town increased by $24.2 million, or 15%, from 2022 to 2023, up from the $15.9 million increase from 2021 to 2022. Net position of the governmental activities increased $10.0 million compared to the $8.5 million increase in 2022. Net position of the Town’s business- type activities increased $14.2 million compared to the $7.4 million increase in 2022. These changes are explored in further detail in the Government-wide Financial Analysis section of this Management’s Discussion and Analysis. •Total revenues, excluding transfers, increased $19.3 million, or 31%, to $81.0 million compared to 2022. Governmental activities revenues increased $10.2 million, or 33%, to $40.0 million, while revenues of business-type activities increased $9.1 million, or 29%, to $40.8 million compared to 2022. •The total expenses of all the Town’s programs, excluding transfers, increased $11.1 million, or 24%, to $56.9 million compared to 2022. The expenses of governmental activities programs increased $8.5 million, or 37%, to $31.7 million, while the expenses of business-type activities increased $2.5 million, or 11%, from 2022 to $25.1 million. 14 •As of December 31, 2023, the Town’s governmental funds reported a combined ending fund balance of $27.2 million. Approximately 20%, or $5.6 million, is unrestricted, unassigned fund balance and, therefore, available for spending at the town’s discretion within the purposes specified for the town’s funds. Overview of the Financial Statements Management’s discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements. The basic financial statements comprise three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the basic financial statements. This report also contains other required supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide the reader of the Town’s basic financial statements with a broad overview of the Town’s finances, in a manner similar to a private sector business. The statement of net position presents information on all of the Town’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The statement of activities presents information showing how the net position of the Town changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused accrued vacation leave). Both the statement of net position and statement of activities distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town include general government, public safety, public works, and culture and recreation. The business-type activities of the Town include electric distribution and broadband services (Power and Communications Fund) and a water utility that treats and distributes water (Water Fund). The government-wide financial statements include not only the Town itself (known as the primary government), but also the legally separate entities, the Estes Park Building Authority, the Estes Park Housing Authority and the Local Marketing District Visit Estes Park (established by election in 2009). For informational purposes, the Building Authority did not have any financial balances or activity to report on during the year. The Local Marketing District began issuing separate financial statements starting December 31, 2017. Statements are available upon request by contacting Visit Estes Park at (970) 586- 0500. This component unit is discretely presented in the Town’s financial statements as the Local Marketing District. The Estes Park Housing Authority is considered part of the reporting entity due to a significant financial benefit from the workforce housing programs funded by the use of lodging taxes and has been discretely presented in the Town’s financial statements as the Housing Authority. 15 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances or spendable resources available at year end. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town maintains ten individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Community Reinvestment Fund, the Street Improvement Fund, and the Workforce Housing Fund all of which are considered to be major funds. Data from the other six governmental funds, (Open Space Fund, Conservation Trust Fund, Emergency Response System Fund, Community Recreation Center Fund, the Trails Expansion Fund, and the Parking Services Fund) are combined into a single, aggregated presentation. Individual fund data for each of these non- major governmental funds is provided in the form of combining statements and schedules elsewhere in this report. Proprietary Funds Proprietary funds are generally used to account for services for which the Town charges customers – either outside customers or internal units or departments of the Town. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The Town maintains the following two types of proprietary funds: •Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses enterprise funds to account for the operations of the Power and Communications Fund and the Water Fund. These are considered to be major funds of the Town. •Internal Service funds are used by the Town to account for the costs of acquiring, operating and maintaining certain types of equipment and funding for Town-wide risk management and medical insurance programs. Because these services predominantly benefit governmental rather than business- type functions, the assets and liabilities of the internal service funds have been included within 16 governmental activities in the government-wide financial statements. Internal service funds are combined into a single, aggregated memo presentation in the proprietary fund financial statements. The internal service funds consist of Fleet Maintenance, Vehicle Replacement, Information Technology, Medical Insurance, and Risk Management Funds. Individual fund data for the internal service funds is provided in the form of combining statements in the “Combining and Individual Fund Financial Statements and Schedules” section. Notes to the Basic Financial Statements The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s progress in funding its obligation to provide pension benefits to its employees, and budgetary comparison schedules for the general and major special revenue funds. The combining and individual fund statements and schedules referred to earlier in connection with non- major governmental funds and internal service funds are presented immediately following the required supplementary information. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. Our analysis below focuses on the net position and changes in net position of the Town’s governmental and business-type activities. Table 1 - Net Position 2023 2022 2023 2022 2023 2022 Current and other assets 39,701,006$ 35,061,022$ 43,278,058$ 41,767,761$ 82,979,064$ 76,828,783$ Capital assets 74,373,293 68,876,463 88,825,278 77,143,441 163,198,571 146,019,904 Total assets 114,074,299 103,937,485 132,103,336 118,911,202 246,177,635 222,848,687 Deferred outflows of resources 3,353,944 1,038,667 3,189,548 1,001,715 6,543,492 2,040,382 Long-term liabilities 11,034,779 6,017,280 38,016,046 34,179,774 49,050,825 40,197,054 Other liabilities 5,780,943 3,846,337 9,155,169 7,503,148 14,936,112 11,349,485 Total liabilities 16,815,722 9,863,617 47,171,215 41,682,922 63,986,937 51,546,539 Deferred inflows of resources 753,122 5,272,535 268,521 4,536,026 1,021,643 9,808,561 Net position: Invested in capital assets 69,375,534 63,172,558 55,793,657 44,719,687 125,169,191 107,892,245 Restricted 8,218,834 8,694,410 1,250,000 1,250,000 9,468,834 9,944,410 Unrestricted 22,265,031 17,973,032 30,809,491 27,724,282 53,074,522 45,697,314 Total net position 99,859,399$ 89,840,000$ 87,853,148$ 73,693,969$ 187,712,547$ 163,533,969$ Governmental Activities Business-type Activities Total Primary Government 17 Analysis of Net Position Table 1 presents an analysis of the Town’s net position as of December 31, 2023. The Town’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $187.7 million at the close of December 31, 2023. By far the largest portion of the Town’s net position (67%) reflects its net investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related still- outstanding debt used to acquire those assets. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net investment in capital assets increased $17.3 million, or 16%, compared to 2022. Much of this change is attributable to acquisition of assets plus debt retirement less asset retirements, current depreciation and use of bond proceeds. Some of the more significant asset acquisitions include $3.4 million in street improvements, $1.1 million in broadband construction, $3.8 million in trail improvements, and $6.6 million in water system improvements. Asset retirements totaled $186,135 and depreciation expense increased $0.2 million to a total of $6.6 million for 2023 as well. Other changes include expenditure of capital related long term debt proceeds of $2.4 million and retirement of capital related long term debt of $2.6 million. An additional 3% of the Town’s net position ($9.5 million) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($53.1 million) may be used to meet the government’s ongoing obligations to citizens and creditors. Restricted net position decreased from 2022, primarily due to use of accumulated reserves in the Open Space Fund for the Fall River Trail. The $7.4 million increase in unrestricted net position was due in large part to uncompleted capital projects at year end in the Governmental Funds and grant revenues received in the Proprietary Funds. At the end of the current fiscal year, the Town is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business- type activities. It is important to note that $5.3 million in governmental unrestricted net position arises from the net position of the Town’s internal service funds, discussed above in “Overview of the Financial Statements – Proprietary Funds.” Although it is highly unlikely that these funds will be liquidated, in the event that they are, the distribution of the net position of these funds would result in a portion of these unrestricted net positions being liquidated to governmental activities and a portion to business-type activities. Analysis of Changes in Net Position As can be seen from Table 2, the Town’s total net position increased by $24.2 million during 2023. This increase is explained in the governmental and business-type activities discussions below. 18 Governmental Activities Net position of governmental activities increased by $10.0 million during 2023, accounting for 41% of the total increase in the Town’s net position. This increase was $1.5 million more than the $8.5 million increase in net position for 2022. During 2023, governmental revenues increased by $10.2 million compared to 2022. This increase is partially due to $3.5 million increase in grants related to the US HWY 36/Community Drive roundabout and the Fall River Trail. $5.3 million of the increase is due to the new lodging taxes dedicated to workforce housing and childcare programs. Investment income also increased in 2023 over 2022 by $1.2 million due to interest rate increases. Total governmental expenses for 2023 increased by $8.6 million compared to 2022. General government expenses increased by $5.8 million largely due to the use of the new lodging taxes by funding the Housing Authority workforce housing efforts. Public safety increased $0.8 million largely due to increased personnel costs from pay scale adjustments and less vacancies. Public works increased by $1.0 million largely due to general operating cost increases in streets and increases in personnel costs from pay scale adjustments and less vacancies. Culture and recreation increased $1.0 million largely due to increases in personnel costs in both Events and Parks from pay scale adjustments and less vacancies. Table 2 - Changes in Net Position 2023 2022 2023 2022 2023 2022 Program revenue: Charges for services 2,874,011$ 2,896,410$ 33,221,897$ 30,922,224$ 36,095,908$ 33,818,634$ Operating grants and contributions 209,498 483,861 - - 209,498 483,861 Capital grants and contributions 4,943,284 1,493,815 5,656,675 154,132 10,599,959 1,647,947 General revenue: Sales taxes 22,855,635 22,636,312 - - 22,855,635 22,636,312 Lodging taxes 5,309,126 - - - 5,309,126 - Property taxes 455,266 461,255 - - 455,266 461,255 Franchise taxes 651,095 639,000 - - 651,095 639,000 Use taxes 427,507 365,369 - - 427,507 365,369 Other taxes 57,909 53,457 - - 57,909 53,457 Investment income 1,151,361 44,217 1,507,437 200,153 2,658,798 244,370 Gain (Loss) on disposal of capital assets - - - - - - Miscellaneous 1,316,029 964,369 411,805 384,600 1,727,834 1,348,969 Total revenues 40,250,721 30,038,065 40,797,814 31,661,109 81,048,535 61,699,174 Program expenses (includes indirect expense allocation): Governmental activities: General government 10,492,265 4,684,953 - - 10,492,265 4,684,953 Public safety 7,318,583 6,559,825 - - 7,318,583 6,559,825 Public works 7,547,831 6,559,015 - - 7,547,831 6,559,015 Culture and recreation 6,184,813 5,179,185 - - 6,184,813 5,179,185 Interest on long-term debt 184,638 195,654 - - 184,638 195,654 Business-type activities: Power and Communications - - 19,545,260 17,205,293 19,545,260 17,205,293 Water - - 5,596,567 5,428,218 5,596,567 5,428,218 Total expenses 31,728,130 23,178,632 25,141,827 22,633,511 56,869,957 45,812,143 Excess before transfers 8,522,591 6,859,433 15,655,987 9,027,598 24,178,578 15,887,031 Transfers In (Out)1,496,808 1,612,752 (1,496,808) (1,612,752) - - Increase in net position 10,019,399 8,472,185 14,159,179 7,414,846 24,178,578 15,887,031 Net position, beginning of year 89,840,000 81,367,815 73,693,969 66,279,123 163,533,969 147,646,938 Net position, end of year 99,859,399$ 89,840,000$ 87,853,148$ 73,693,969$ 187,712,547$ 163,533,969$ Governmental Business-type Total Primary Government 19 Charts 1 and 2 illustrate the Town’s governmental activities expenses and revenues by function and its revenues by source. General revenues such as sales taxes, property and other taxes are not shown in Chart 1 by program but are used to support program activities town wide and included in Chart 2. For governmental activities overall, without regard to program, sales taxes are the largest single source (57%), followed by lodging taxes, capital grants and contributions and charges for services. Net Position increased $10.0 million during the current fiscal year. Contributing factors were discussed earlier in this section. $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 General Govt Public Safety Public Works Culture and Recreation Interest on LT Debt Th o u s a n d s Chart 1: 2023 Expenses and Program Revenues - Governmental Activities Prog Rev Expenses Charges for services 7% Operating grants and contributions 1% Capital grants and contributions 12% Sales taxes 57% Lodging taxes 13% Property taxes 1% Franchise taxes 2% Use taxes 1% Other taxes 0% Investment income 3%Miscellaneous 3% Chart 2: 2023 Revenues by Source -Governmental Activities 20 Business-type Activities Net position in business-type activities increased $14.2 million in 2023. This increase was $6.7 million or 91%, more than the $7.4 million increase in net position in 2022. Total business-type revenues increased $9.1 million, or 29%, compared to 2022. Charges for services increased $2.3 million due to rate changes and sales volume changes, including a $0.9 million increase in Trailblazer Broadband charges from additional customers as the Town continues to build out the system. Expenses of business-type activities increased $2.5 million, or 11% compared to 2022. Purchased power costs increased $361,046 due to rate increases. Personnel costs increased $917,209 from decreased vacancies and wage increases. Building maintenance costs also increased by $258,139. The rest was due to numerous smaller cost increases. $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Light and Power Water Workforce Housing Linkage Impact Fee T h o u s a n d s Chart 3: 2023 Expenses and Program Revenues -Business-type Activities Prog Rev Expenses Chgs for services 81% Capital grants 14% Invest. income 4%Misc. 1% Chart 4: 2023 Revenue by Source - Business-type Activities 21 As can be seen from Charts 3 and 4, the Town’s Power and Communications utility and Water utility account for most of the Town’s business-type activities, representing 100% of total business-type activities expenses. The Workforce Housing Linkage Impact Fee fund did not have any expenses in 2023. For 2023, charges for services accounted for the largest share of revenues at 81%. The second largest category was capital grants at 14% of revenues. In the Power and Communications Fund, this includes use of $1.6 million in ARPA funding and $1.1 million in state grants used for Trailblazer Broadband buildout expenses. In the Water Fund, this includes use of $2.7 million in USDA funding for the Prospect Mountain waterline replacement project. The Power and Communications Fund and the Water Fund transferred a total of $1.5 million out to Governmental Activities in 2023 (General Fund). In 2019, the Power and Communication Fund began construction of Trailblazer Broadband, a municipally owned and operated fiber-to-the-premise internet service. 2023 was the fourth year of Trailblazer Broadband operations with the Division beginning to cover its operating costs and debt service through user charges. The 2023 broadband revenues were $3.2 million, operating expenses were $1.2 million and debt service was $1.6 million. Costs for electric and water operations continue to be covered by customer charges for service revenues in accordance with policy. The utility funds are also subject to debt coverage requirements for the Power and Communication revenue bonds and the Water loan with all requirements met. Financial Analysis of the Town’s Funds As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows and balances of resources available for spending. Such information is useful in assessing the Town’s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of 2023, the Town’s governmental funds reported combined ending fund balances of $27.2 million, a small decrease from $27.8 million at the end of the prior year. Approximately 20% of this ending fund balance constitutes unassigned fund balance, which is available for spending at the Town’s discretion. The remainder of fund balance is non-spendable, restricted or assigned to indicate that it is not available for new spending because it has already been committed to inventories, other prepaid items, specific governmental funds, capital improvements, future appropriations, and emergencies. The General Fund is the primary operating fund of the Town. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $5.6 million ($11.0 million in 2022). As a measure of the General Fund’s liquidity, it may be useful to compare unassigned fund balance to total fund operating expenditures, including transfers out. The ratio for 2023 is 21%, a decrease from 2022’s ratio of 44%. As discussed elsewhere in this document, sales tax revenues have increased approximately 1% in 2023, setting a new record for sales tax collections. The General Fund operating costs increased by $1.6 million and the capital projects within the Community Reinvestment fund increased by $2.5 million necessitating $5.4 million transferred from the General Fund. The General Fund balance assigned to cover the 2024 22 fiscal budget increased from $4.3 million to $6.6 million accounting for much of the remaining decrease in unassigned fund balance in 2023. The Community Reinvestment Fund is the Town’s capital project fund and funding is transferred from the General Fund based on the planned capital projects. Significant capital projects were completed in 2023, including the US 36 / Community Drive roundabout. Several projects were started but not completed and will roll forward into 2024. The Community Reinvestment fund balance is to be used for these projects, increasing slightly from $3.7 million at the end of 2022 to $3.9 million at the end of 2023. The Street Improvement Fund was created by the 1% sales tax initiative approved in April 2014 which went into effect on July 1, 2014. In 2023, expenditures were primarily for street repairs, a few overlay projects, and work on the Cleave Street major rehabilitation project. Fund balance grew to $5.4 million as the Cleave Street project had just started by year end. The Workforce Housing Fund was new in 2023 and accounts for the receipt and expenditure of the Town’s share of the local lodging taxes which were increased by an election in 2022 for workforce housing and childcare expenses. The Town has an agreement with the Housing Authority to help develop and manage the workforce housing component. The magnitude of this arrangement resulted in the Housing Authority becoming a component unit of the Town’s reporting entity. Fund balance at the end of 2023, the first year of operations, was $365,965. The Community Center Fund, one of the “Other Governmental Funds”, was created by the 1% sales tax initiative approved in April 2014. During 2017, the Town entered into an agreement with Estes Valley Recreation and Park District (EVRPD) to help pay for the costs of the new Estes Valley Community Center which began construction in 2017 and was completed early in 2019. During 2023, the Community Center Fund remitted $1.1 million in accumulated sales tax monies to EVRPD for that purpose. In 2023, the Emergency Response System Fund primarily reflected debt service on a radio replacement lease purchase. Fund balance grew as sales tax revenues exceeded expenditures in 2023. The Trails Expansion Fund is one of the funds created by the 1% sales tax initiative approved in April 2014. During 2023, construction on the active phases of Fall River Trail improvement project proceeded, utilizing much of the fund balance accumulated over the last few years as planned. As a result, fund balance in the Trails Expansion Fund decreased by $1.3 million to $393,394 at year end. In 2023, the Open Space Fund was also used to fund part of the Fall River Trail improvement project. As fund balance was used for the Fall River Trail improvement project in 2023, it decreased to an ending balance of $807,665 at year end. The Parking Services Fund was created in 2020 to account for the operations of the paid parking program for downtown Estes Park. Funding in the amount of $190,000 was transferred to the General Fund to help pay for the regional transit program while cost of the parking operation was approximately the same as the prior year. Fund balance decreased slightly from $421,770 at the end of 2022 to $411,337 at the end of 2023. The other governmental funds were comparable to the prior year. 23 Proprietary funds As already discussed, the Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. As of December 31, 2023, the unrestricted net position of the Power and Communications Fund was $16.8 million and the Water Fund was $11.8 million. The Power and Communications Fund had a net increase of $7.6 million and the Water Fund had a net increase of $5.6 million for 2023. The Power and Communications Fund and Water Fund both easily maintained their required bonded debt ratios (see statistical tables, Schedule 11). Other factors concerning the finances of these two funds have already been addressed in the discussion of the Town’s business-type activities. General Fund Budgetary Highlights The Town’s final budget differs from the original budget in that it contains carry-forward appropriations for various programs and projects and other supplemental appropriations and adjustments approved during the fiscal year. The final budgeted 2023 appropriations for the General Fund, including transfers out, was $2.9 million more than the original budget. The primary reasons for this difference are related to the following changes: •$1.1 million increase from rollover of uncompleted PO’s and projects. •$180,000 increase in public transit services funded by a transfer from the Parking Services Fund. •$1.4 million increase in transfers to the Community Reinvestment Capital Project Fund for various projects and increases, including $0.9 million to underground power lines as part of the Cleave Street reconstruction project. Actual revenue and transfers in were approximately the same as the final budgeted amounts ($23,279 greater). Actual expenditures and transfers out were $5.7 million (18%) less than the final budgeted appropriations. The primary factors contributing to this favorable variance include: •General Government expenditures were $2.5 million less than budgeted. The Planning division had $420,604 less in expenditures, primarily due to delays in starting the development code rewrite project which rolled forward into 2024. Facilities had $706,555 less in expenditures, partially due to a reduction in building maintenance completed in 2023 and appropriating $500,000 for a facility and employee housing reserve. Outside entity funding expenditures were $284,984 less than budgeted, partially due to appropriating $100,000 for a childcare assistance reserve, using $82,582 less childcare assistance and $45,911 less transferred to the Fire District based on actual sales tax revenues. The new workforce housing appropriation had $412,517 unused by year end. Numerous other variances accounted for the rest of the General Government budget savings. •Public Safety expenditures were $1.1 million less than budgeted. This is primarily due to personnel cost savings from vacancies during the year. •Public Works expenditures were $696,734 less than budgeted. Personnel cost reductions accounted for $327,320 of this difference. Street and Stormwater operating costs were $259,603 less than budgeted, accounting for most of the remaining variance •Culture and Recreation expenditures were $1.0 million less than budgeted. The Parks and Recreation Division and the Special Events Division had significant vacancy savings in 2023. 24 The resulting actual ending fund balance for the General Fund of $15.4 million was $10.7 million more than the Final Budget’s projected ending fund balance. Capital Asset and Debt Administration Capital Assets Governmental activities capital asset additions for 2023 were $9.6 million, with a net increase (after disposal/retirement/transfers of capital assets) of $9.4 million. Some of the more significant capital acquisitions included: •Community Drive Roundabout - $3.1 million •Fall River Trail Improvements - $3.4 million •Downtown Wayfinding Signage Project - $315,161 •Cleave Street Reconstruction - $249,129 •Machinery and Equipment - $771,897 Business-type capital asset additions for 2023 were $14.2 million, with a net increase (after disposal/retirement/transfers of capital assets) of the same. Some of the more significant capital purchases in this area, including capital acquisitions in progress, were: •Electric infrastructure (streetlights, overhead and underground distribution lines) - $4.8 million •Trailblazer Broadband fiber infrastructure – $1.1 million •Prospect Mountain Water infrastructure (distribution lines) - $6.5 million Additional information can be found in notes to financial statements Note 4 – Capital Assets. Debt Administration The governmental activities are currently obligated on the 2013 Certificates of Participation to finance the Multipurpose Event Center Complex. Total payments are approximately $520,000 per year and are paid out of the Community Reinvestment Fund. The remaining balance as of December 31, 2023 is $1.9 million. The governmental activities are also obligated on the 2017 Lease Purchase Agreement to finance the Estes Park Visitor Center Parking Garage. Total payments are approximately $400,000 per year and are also paid out of the Community Reinvestment Fund. The remaining balance as of December 31, 2023 is $2.8 million. In 2019, the Town entered into a lease purchase agreement to upgrade the Town’s emergency handheld radios for both governmental-type and business-type activities. The total payments for the governmental-type activities is approximately $49,000 per year and are paid out of the Emergency Response System Fund. The remaining balance as of December 31, 2023 is $88,553. The business-type activities (utility funds) are currently obligated to two Power and Communication revenue bond and two Water issues. The Power and Communication bonds Series A and Series B were issued in Nov 2019 to fund the buildout of the Trailblazer Broadband fiber network and complete implementation of the electric system smart meters. The Series A bonds mature in 2039 with a remaining balance of $21.4 million as of December 31, 2023 and the Series B bonds mature in 2029 with a remaining balance of $6.2 million as of December 31, 2023. The 2008 water loan was obtained to finance a membrane filter and to increase capacity at the Mary’s Lake Treatment Plant. Maturing in 2028, there is 25 a remaining balance of $1.7 million at the end of 2023. In 2020, the Town entered into a USDA loan to finance upgrades to the Park Entrance Mutual Pipeline and Water Company distribution system. The loan matures in 2060 with a remaining balance of $503,559 as of December 31, 2023. The business-type activity share of the emergency handheld radio replacement lease purchase has a balance of $40,337 as of December 31, 2023. In 2023, the Town entered into a construction loan to make water distribution system upgrades for the former Prospect Mountain Water District areas which has a balance of $764,616 as of December 31, 2023. The Town’s Power and Communications fund currently maintains a rating from Standard & Poor’s and Fitch of “A+“ on its outstanding revenue bonds. State statutes limit the amount of general obligation debt a government entity may issue to 3% of its total assessed valuation. The debt limitation for the Town as of December 31, 2023, is $95.3 million (see statistical section under Schedule 9). Additional information on these loans can be found in Note 5 – Long-Term Debt of the notes to financial statements, and in the statistical section under Schedule 8. Other Significant Matters •The Town continues to aggressively seek grants to assist in creating and putting into service assets that enhance the lives of its citizens and the enjoyment of its visitor base. This includes trail expansion and other enhancements as well as system repairs and maintenance type projects. Requests for Information This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the Town. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director, P.O. Box 1200, Estes Park, Colorado 80517. 26 Basic Financial Statements GOVERNMENTAL BUSINESS-TYPE LOCAL MARKETING ESTES PARK ACTIVITIES ACTIVITIES TOTAL DISTRICT HOUSING AUTHORITY ASSETS Cash and investments 32,864,489$ 27,164,196$ 60,028,685$ 3,015,416$ 2,138,389$ Restricted cash and investments - 267,103 267,103 - 3,880,084 Receivables, net 319,601 8,495,421 8,815,022 242,779 77,310 Taxes receivable 3,005,561 - 3,005,561 902,317 - Intergovernmental receivable 4,084,328 603,091 4,687,419 - - Inventories 34,933 5,265,045 5,299,978 - - Prepaid items 364,381 - 364,381 105,052 21,394 Other assets - - - - 274,312 Due from component units 510,915 - 510,915 - - Internal balances (1,483,201) 1,483,201 - - - Land held for sale - - - - 2,937,688 Capital assets, not being depreciated 20,525,331 13,466,867 33,992,198 - 1,684,982 Capital assets, net of accumulated depreciation 53,847,962 75,358,411 129,206,373 42,282 21,405,870 TOTAL ASSETS 114,074,299 132,103,336 246,177,635 4,307,846 32,420,029 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 157,649 124,735 282,384 37,863 2,382 Deferred outflows related to pension 3,196,295 3,064,813 6,261,108 597,916 191,602 TOTAL DEFERRED OUTFLOWS OF RESOURCES 3,353,944 3,189,548 6,543,492 635,779 193,984 LIABILITIES Accounts payable 2,248,392 5,033,286 7,281,678 469,067 77,482 Due to Town of Estes Park - - - 510,915 - Accrued liabilities 1,291,448 877,771 2,169,219 - 157,004 Deposits - 348,456 348,456 - 208,474 Accrued interest payable 69,084 147,608 216,692 - - Claims payable 569,860 - 569,860 - - Unearned revenue 239,277 501,595 740,872 28,394 26,185 Long-term liabilities:- - Due within one year 1,362,882 2,246,453 3,609,335 137,831 783,873 Due in more than one year 4,508,304 31,631,134 36,139,438 - 14,548,326 Net Pension liability 5,863,302 5,830,562 11,693,864 1,100,436 469,327 Net OPEB liability - due in more than one year 663,173 554,350 1,217,523 72,382 30,828 TOTAL LIABILITIES 16,815,722 47,171,215 63,986,937 2,319,025 16,301,499 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to Pension 99,586 99,030 198,616 5,486 2,340 Deferred inflows related to OPEB 194,849 169,491 364,340 25,493 10,858 Property taxes 458,687 - 458,687 - - TOTAL DEFERRED INFLOWS OF RESOURCES 753,122 268,521 1,021,643 30,979 13,198 NET POSITION Net investment in capital assets 69,375,534 55,793,657 125,169,191 19,932 9,771,413 Restricted for: Deposits - - - - 3,880,084 Parks and open space 981,343 - 981,343 - - Capital improvements 6,435,650 - 6,435,650 - - Operations and Maintenance reserves - 1,250,000 1,250,000 - - Emergencies 801,841 - 801,841 292,022 - Unrestricted 22,265,031 30,809,491 53,074,522 2,281,667 2,647,819 TOTAL NET POSITION 99,859,399$ 87,853,148$ 187,712,547$ 2,593,621$ 16,299,316$ PRIMARY GOVERNMENT DISCRETELY PRESENTED COMPONENT UNITS Town of Estes Park, Colorado Statement of Net Position December 31, 2023 The accompanying notes are an integral part of these financial statements. 27 PROGRAM REVENUES OPERATING CAPITAL CHARGES FOR GRANTS AND GRANTS AND GOVERNMENTAL BUSINESS-TYPE LOCAL MARKETING ESTES PARK FUNCTIONS / PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES ACTIVITIES TOTAL DISTRICT HOUSING AUTHORITY Primary Government Governmental activities: General government 10,492,265$ 547,502$ 140,111$ 2,361,322$ (7,443,330)$-$ (7,443,330)$ -$ -$ Public safety 7,318,583 640,389 22,803 91,828 (6,563,563)- (6,563,563)- - Public works 7,547,831 880,855 6,828 473,708 (6,186,440) - (6,186,440)- - Culture and recreation 6,184,813 805,265 39,756 2,016,426 (3,323,366)- (3,323,366)- - Interest on long-term debt 184,638 - - - (184,638) - (184,638) - - Total Governmental Activities 31,728,130 2,874,011 209,498 4,943,284 (23,701,337) - (23,701,337) - - Business-Type Activities:Power and communications 19,545,260 24,937,494 - 2,698,830 -8,091,064 8,091,064 - - Water 5,596,567 7,560,513 - 2,957,845 -4,921,791 4,921,791 - - Workforce Housing Linkage Impact Fee - 723,890 - -- 723,890 723,890 - - Total Business-Type Activities 25,141,827 33,221,897 - 5,656,675 - 13,736,745 13,736,745 - - Total Primary Government 56,869,957$ 36,095,908$ 209,498$ 10,599,959$ (23,701,337)$ 13,736,745$ (9,964,592)$ -$ -$ Component Units Local Marketing District 4,372,643 271,632 - - - - -(4,101,011) - Estes Park Housing Authority 3,366,417 2,696,798 58,780 - - - - - (610,839) Total Component Unit 7,739,060$ 2,968,430$ 58,780$ -$ -$ -$ -$ (4,101,011)$ (610,839)$ Taxes: Property taxes 455,266$ -$ 455,266$ -$ -$ Sales taxes 22,855,635 - 22,855,635 - - Lodging Taxes 5,309,126 - 5,309,126 4,094,975 4,157,360 Franchise taxes 651,095 - 651,095 - - Use taxes 427,507 - 427,507 - - Other taxes 57,909 - 57,909 - - Investment income 1,151,361 1,507,437 2,658,798 28,487 12,516 Miscellaneous 1,316,029 411,805 1,727,834 750 - Transfers 1,496,808 (1,496,808) - - - Total general revenues and transfers 33,720,736 422,434 34,143,170 4,124,212 4,169,876 Change in net position 10,019,399 14,159,179 24,178,578 23,201 3,559,037 NET POSITION, BEGINNING 89,840,000 73,693,969 163,533,969 2,570,420 12,740,279 NET POSITION, ENDING 99,859,399$ 87,853,148$ 187,712,547$ 2,593,621$ 16,299,316$ NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION Primary Government DISCRETELY PRESENTED COMPONENT UNITS Town of Estes Park, Colorado Statement of Activities For the Year Ended December 31, 2023 The accompanying notes are an integral part of these financial statements. 28 COMMUNITY STREET WORKFORCE OTHER TOTAL GENERAL REINVESTMENT IMPROVEMENT HOUSING GOVERNMENTAL GOVERNMENTAL ASSETS FUND FUND FUND FUND FUNDS FUNDS Cash and cash investments 15,028,971$ 4,212,299$ 5,320,033$ 323,644$ 2,204,992$ 27,089,939$ Accounts and other receivables 232,327 10,730 9,971 - 7,086 260,114 Intergovernmental receivable 291,278 2,023,876 1,360 - 1,767,814 4,084,328 Taxes receivable 2,496,186 -305,625 510,915 203,750 3,516,476 Due from other funds 310,000 -- - - 310,000 Prepaid items 15,909 199,966 - - - 215,875 TOTAL ASSETS 18,374,671$ 6,446,871$ 5,636,989$ 834,559$ 4,183,642$ 35,476,732$ TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Accounts payable 766,005 523,465 201,760 466,857 213,341 2,171,428 Accrued liabilities 1,260,331 -2,499 1,737 6,492 1,271,059 Due to other funds - - - - 310,000 310,000 TOTAL LIABILITIES 2,026,336 523,465 204,259 468,594 529,833 3,752,487 DEFERRED INFLOWS OF RESOURCES Property taxes 458,687 -- - 458,687 Unavailable revenue 425,070 2,023,876 1,360 - 1,652,720 4,103,026 TOTAL DEFERRED INFLOWS OF RESOURCES 883,757 2,023,876 1,360 - 1,652,720 4,561,713 FUND BALANCES Nonspendable Prepaid items 15,909 199,966 -- -215,875 Restricted for: Parks and open space 72,895 -- -908,448 981,343 Capital improvements - -5,343,009 - 1,092,641 6,435,650 Emergencies 713,480 -88,361 - -801,841 Assigned for: Subsequent year's budget appropriation of fund balance 6,634,171 -- -6,634,171 Capital improvements - 3,699,564 - - - 3,699,564 Reserves 2,477,447 -- 365,965 - 2,843,412 Unassigned 5,550,675 - - - - 5,550,675 TOTAL FUND BALANCES 15,464,578 3,899,530 5,431,370 365,965 2,001,089 27,162,532 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 18,374,671$ 6,446,871$ 5,636,989$ 834,559$ 4,183,642$ 35,476,732$ Town of Estes Park, Colorado Balance Sheet Governmental Funds December 31, 2023 The accompanying notes are an integral part of these financial statements. 29 Amounts reported for governmental activities in the statement of net position are different because: Total fund balances - governmental funds 27,162,532$ Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds: Capital assets, net of internal service funds of $1,548,342 72,824,951 The deferred outflows below are not current assets or financial resources; and the deferred inflows are not due and payable in the current period and therefore are not reported in the Governmental Funds. Deferred outflows related to pension 3,196,295 Deferred outflows related to OPEB 157,649 Deferred inflows related to pension (99,586) Deferred inflows related to OPEB (194,849) Long-term liabilities are not due and payable in the current period and therefore are not reported as liabilities in the governmental funds balance sheet. Long-term liabilities at year end consist of: Net OPEB liability (net of internal service funds of $4,622)(658,551) Net pension liability (5,863,302) Accrued interest payable (69,084) Long-term liabilities (net of internal service fund liabilities of $59,747)(5,811,439) Total long-term liabilities (12,402,376) Other long term assets are not available to pay current expenditures and therefore, are deferred inflows of resources in the fund financial statements 3,863,749 Internal service funds are used by management to charge the costs of certain activities such is insurance, technology, and vehicles to individual funds. A portion of the assets and liabilities of the internal service fund is included in the governmental activities in the statement of net position.5,351,035 Total net position - governmental activities 99,859,399$ to the Statement of Net Position For the Year Ended December 31, 2023 Town of Estes Park, Colorado Reconciliation of the Governmental Funds Balance Sheet The accompanying notes are an integral part of these financial statements. 30 WORKFORCE COMMUNITY STREET HOUSING OTHER TOTAL GENERAL REINVESTMENT IMPROVEMENT LODGING TAX GOVERNMENTAL GOVERNMENTAL FUND FUND FUND FUND FUNDS FUNDS REVENUES: Taxes 19,876,315$ -$ 2,742,659$ 5,309,126 1,828,438$ 29,756,538$ Licenses and Permits 851,567 - - - 23,130 874,697 Intergovernmental 555,679 17,428 - - 1,039,673 1,612,780 Charges for Services 860,679 - - - 808,120 1,668,799 Fines and Forfeitures 26,485 - - - 50,902 77,387 Rental income 253,128 - - - - 253,128 Contributions 46,039 14,544 - - - 60,583 Investment Income 591,494 211,283 202,710 - 145,874 1,151,361 Miscellaneous 721,291 - - - - 721,291 TOTAL REVENUES 23,782,677 243,255 2,945,369 5,309,126 3,896,137 36,176,564 EXPENDITURES: Current: General Government 5,660,404 36,978 - 4,943,161 - 10,640,543 Public Safety 7,316,848 - - - - 7,316,848 Public Works 3,048,436 - 441,759 758,385 4,248,580 Culture and Recreation 4,652,137 - - - 1,242,089 5,894,226 Debt Service: Principal 18,150 724,997 - - 41,933 785,080 Interest 3,910 193,497 - - 6,610 204,017 Capital outlay 78,131 4,470,831 1,067,154 - 3,565,305 9,181,421 TOTAL EXPENDITURES 20,778,016 5,426,303 1,508,913 4,943,161 5,614,322 38,270,715 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 3,004,661 (5,183,048) 1,436,456 365,965 (1,718,185) (2,094,151) OTHER FINANCING SOURCES (USES) Transfers in 1,686,808 5,372,751 - - - 7,059,559 Transfers out (5,372,751) - - - (190,000) (5,562,751) NET CHANGE IN FUND BALANCE (681,282) 189,703 1,436,456 365,965 (1,908,185) (597,343) FUND BALANCES, BEGINNING OF YEAR 16,145,860 3,709,827 3,994,914 - 3,909,274 27,759,875 FUND BALANCES, END OF YEAR 15,464,578$ 3,899,530$ 5,431,370$ 365,965$ 2,001,089$ 27,162,532$ and Changes in Fund Balances For the Year Ended December 31, 2023 Town of Estes Park, Colorado Governmental FundsCombined Statement of Revenues, Expenditures The accompanying notes are an integral part of these financial statements. 31 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds (597,343)$ Capital outlays are reported in the governmental funds as an expenditure; however, for governmental activities, these costs are shown in the statement of net position and allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeds depreciation expense. Depreciation and amortization expense (3,684,919) Capital outlay 8,907,500 Net amount 5,222,581 Payments of long-term debt principal are expenditures in governmental funds, but the payments reduce long-term liabilities in the statement of net position and do not affect the statement of activities. This amount includes payments on leases during the current year.785,080 Some revenues/expenses reported in the statement of activities do not require the receipt/use of current financial resources and, therefore, are not reported as revenues/expenditures in the governmental funds. Change in environmental remediation liability 5,499 Change in accrued interest 8,346 Amortization of lease purchase agreement premium 19,379 Change in accrued compensated absences 5,325 Net amount 38,549 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental fund statement of revenues, expenditures and changes in fund balances.3,479,419 Pension income relating to changes in the Town's defined benefit retirement plan accounts do not provide current financial resources, and therefore, are not reported as revenue in the governmental fund financial statements.428,753 OPEB income relating to changes in the Town's defined benefit retirement plan accounts do not provide current financial resources, and therefore, are not reported as revenue in the governmental fund financial statements.67,629 An internal service fund is used by management to charge the costs of fleet maintenance, vehicle replacement and information technology to individual funds. A portion of the net income of the internal service fund is reported with governmental activities in the statement of activities.594,731 Change in net position - governmental activities 10,019,399$ to the Statement of Activities For the Year Ended December 31, 2023 Town of Estes Park, Colorado Reconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balances of Governmental Funds The accompanying notes are an integral part of these financial statements. 32 Governmental Activities Nonmajor Fund Current Assets: Power and Communications Fund Water Fund Workforce Housing Linkage Impact Fee Fund Total Enterprise Funds Internal Service Fund Cash and investments 13,383,529$ 12,807,610$ 973,057$ 27,164,196$ 5,774,550$ Restricted cash and investments 267,103 - - 267,103 - Accounts receivable, net 3,652,328 3,733,434 1,202 7,386,964 59,487 Notes receivable - 1,108,457 - 1,108,457 Intergovernmental receivable 603,091 - - 603,091 - Inventories 4,873,320 391,725 - 5,265,045 34,933 Prepaid Items - - - -148,506 Total Current Assets 22,779,371 18,041,226 974,259 41,794,856 6,017,476 Non-Current Assets: Capital assets, not being depreciated 1,501,262 11,965,605 - 13,466,867 278,743 Capital assets, net of accumulated depreciation and amortization 54,473,721 20,884,690 - 75,358,411 1,269,599 Total Non-Current Assets 55,974,983 32,850,295 - 88,825,278 1,548,342 TOTAL ASSETS 78,754,354 50,891,521 974,259 130,620,134 7,565,818 DEFERRED OUTFLOWS OF RESOURCES Related to OPEB 86,657 38,078 - 124,735 - Related to pension 2,136,290 928,523 - 3,064,813 - TOTAL DEFERRED OUTFLOWS OF RESOURCES 2,222,947 966,601 - 3,189,548 - LIABILITIES Current Liabilities: Accounts payable 2,121,345 2,911,941 - 5,033,286 76,963 Accrued liabilities 90,483 787,288 - 877,771 20,389 Customer deposits 340,956 7,500 - 348,456 - Claims payable - - - -569,860 Accrued interest payable 93,634 53,974 - 147,608 - Unearned revenue 269,925 - 231,670 501,595 - Compensated absences payable, current portion 271,761 112,187 - 383,948 47,535 Loans payable, current portion 16,302 2,533 - 18,835 - Revenue bonds payable, current portion 1,523,351 320,319 - 1,843,670 - Total Current Liabilities 4,727,757 4,195,742 231,670 9,155,169 714,747 Non-Current Liabilities: Compensated absences payable 143,219 51,696 - 194,915 12,212 Net pension liability 4,082,327 1,748,235 - 5,830,562 - OPEB liability 384,463 169,887 - 554,350 4,622 Long term debt 28,755,891 2,680,328 - 31,436,219 - Total Non-Current Liabilities 33,365,900 4,650,146 - 38,016,046 16,834 TOTAL LIABILITIES 38,093,657 8,845,888 231,670 47,171,215 731,581 DEFERRED INFLOWS OF RESOURCES Related to OPEB 117,730 51,761 - 169,491 - Related to pension 69,336 29,694 - 99,030 - TOTAL DEFERRED INFLOWS OF RESOURCES 187,066 81,455 - 268,521 - NET POSITION Net investment in capital assets 25,946,542 29,847,115 - 55,793,657 1,548,342 Restricted for operations and maintenance reserve - 1,250,000 - 1,250,000 - Unrestricted 16,750,036 11,833,664 742,589 29,326,289 5,285,895 TOTAL NET POSITION 42,696,578$ 42,930,779$ 742,589$ 86,369,946$ 6,834,237$ 1,483,201 Total Net Position Business-Type Activities 87,853,148$ Business-Type Activities Amounts reported for Business-Type Activities in the Statement of Net Position are different because: An internal service fund is used by management to charge the costs of fleet maintenance, vehicle replacement and information technology to individual funds. A portion of the assets and liabilities of the internal service fund is included in business-type activities in the statement of net position. Major Funds Town of Estes Park, Colorado Proprietary Fund Statement of Net Position December 31, 2023 The accompanying notes are an integral part of these financial statements. 33 Governmental Activities Nonmajor Fund OPERATING REVENUES Power and Communications Fund Water Fund Workforce Housing Linkage Impact Fee Fund Total Internal Service Fund Charges for services 24,937,494$ 6,423,061$ -$ 31,360,555$ 6,290,181$ Impact Fees - - 723,890 723,890 - Miscellaneous 131,087 86,303 - 217,390 4,930 TOTAL OPERATING REVENUES 25,068,581 6,509,364 723,890 32,301,835 6,295,111 OPERATING EXPENSES Source of supply 9,013,459 101,682 - 9,115,141 - Purification - 1,148,799 - 1,148,799 - Distribution 3,828,220 1,797,055 - 5,625,275 - Customer accounts 561,475 333,911 - 895,386 - Administration and general 2,429,637 1,146,884 - 3,576,521 1,590,681 Broadband operations 1,216,412 -- 1,216,412 3,442,203 Depreciation expense 1,605,889 948,611 - 2,554,500 378,759 Medical expenses - - - -404,507 TOTAL OPERATING EXPENSES 18,655,092 5,476,942 - 24,132,034 5,816,150 OPERATING INCOME 6,413,489 1,032,422 723,890 8,169,801 478,961 NON-OPERATING REVENUES (EXPENSES) Investment income 746,376 742,362 18,699 1,507,437 259,613 Grant revenue 2,698,830 2,957,845 - 5,656,675 5,808 Gain (loss) on sale of assets - - - - 44,766 Tap fees - 1,137,452 - 1,137,452 - Interest expense (890,168) (119,625) - (1,009,793) - TOTAL NON-OPERATING REVENUES (EXPENSES)2,555,038 4,718,034 18,699 7,291,771 310,187 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 8,968,527 5,750,456 742,589 15,461,572 789,148 Transfers out (1,354,932) (141,876) - (1,496,808) - CHANGE IN NET POSITION 7,613,595 5,608,580 742,589 13,964,764 789,148 NET POSITION, BEGINNING OF YEAR 35,082,983 37,322,199 - 72,405,182 6,045,089 NET POSITION, END OF YEAR 42,696,578$ 42,930,779$ 742,589$ 86,369,946$ 6,834,237$ Change in Net Position of Business-Type Activities 13,964,764 194,415 Total Change in Net Position of Business-Type Activities 14,159,179$ Town of Estes Park, Colorado Proprietary Fund Statement of Revenues, Expenses and Changes in Net Position For the Year Ended December 31, 2023 Major Funds Amounts reported for Business-Type Activities in the Statement of Activities are different because: An internal service fund is used by management to charge the costs of fleet maintenance, vehicle replacement and information technology to individual funds. A portion of the net income of the internal service fund is included in business-type activities in the statement of activities. Business-Type Activities The accompanying notes are an integral part of these financial statements. 34 Governmental Activities Nonmajor Fund Power and Communications Fund Water Fund Workforce Housing Linkage Impact Fee Fund Total Internal Service Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 24,858,211$ 6,585,449$ 954,358$ 32,398,018$ 6,461,664$ Cash received from other sources 131,087 86,303 - 217,390 3,034 Cash paid for goods and services (15,037,277) (223,169) - (15,260,446) (4,320,643) Cash paid to employees (3,942,461) (1,739,843) - (5,682,304) (1,152,715) NET CASH FROM OPERATING ACTIVITIES 6,009,560 4,708,740 954,358 11,672,658 991,340 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers to other funds (1,354,932) (141,876) - (1,496,808) - NET CASH FROM NON-CAPITAL FINANCING ACTIVITIES (1,354,932) (141,876) - (1,496,808) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital grants 654,223 195,696 - 849,919 5,808 Acquisition of capital assets (6,201,073) (8,035,264) - (14,236,337) (556,494) Proceeds from sale of capital assets - - - -46,569 Proceeds from the issuance of long-term debt - 710,240 - 710,240 - Principal paid on long-term debt (1,270,499) (322,464) - (1,592,963) - Interest paid on long-term debt (1,125,641) (102,084) - (1,227,725) - Tap fees received - 1,137,452 - 1,137,452 - NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES (7,942,990) (6,416,424) - (14,359,414) (504,117) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 746,376 742,362 18,699 1,507,437 259,613 NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES 746,376 742,362 18,699 1,507,437 259,613 NET CHANGE IN CASH AND CASH EQUIVALENTS (2,541,986) (1,107,198) 973,057 (2,676,127) 746,836 CASH AND CASH EQUIVALENTS Beginning of Year 16,192,618 13,914,808 - 30,107,426 5,027,714 End of Year 13,650,632$ 12,807,610$ 973,057$ 27,431,299$ 5,774,550$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES Operating income 6,413,489$ 1,032,422$ 723,890$ 8,169,801$ 478,961$ Adjustments to reconcile operating income to net cash flows from operating activities Depreciation 1,605,889 948,611 - 2,554,500 378,759 (Increase) decrease in operating assets: Accounts receivable (79,283) 162,388 (1,202) 81,903 169,587 Inventories (1,315,681) (3,573) - (1,319,254) (8,409) Prepaid items 1,543 - - 1,543 43,864 (Increase) decrease in operating liabilities: Accounts payable (696,417) 2,565,404 - 1,868,987 (75,907) Accrued liabilities 9,782 83,211 - 92,993 4,372 Unearned revenues - - 231,670 231,670 - Deposits 57,056 - - 57,056 - Compensated absences payable 83,462 8,585 - 92,047 113 Net pension and OPEB liabilities and related deferred inflows and outflows of resources (70,280) (88,308) - (158,588) - NET CASH FROM OPERATING ACTIVITIES 6,009,560$ 4,708,740$ 954,358$ 11,672,658$ 991,340$ Business-Type Activities Town of Estes Park, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2023 Major funds The accompanying notes are an integral part of these financial statements. 35 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 1. Summary of Significant Accounting Policies The Town of Estes Park, Colorado (the Town) is a statutory municipality governed by a town administrator form of government through a Mayor and six-member Board of Trustees elected by the residents at large. The accounting policies of the Town and its component units conform to generally accepted accounting principles as applicable to government entities. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Following is a summary of the more significant policies. Reporting Entity The financial reporting entity consists of the Town, organizations for which the Town is financially accountable, and organizations that raise and hold economic resources for the direct benefit of the Town. All funds, organizations, institutions, agencies, departments and offices that are not legally separate are part of the Town. Legally separate organizations for which the Town is financially accountable are considered part of the reporting entity. Financial accountability exists if the Town appoints a voting majority of the organization's governing board and is able to impose its will on the organization, or if the organization provides benefits to, or imposes financial burdens, on the Town. Based on the application of these criteria, the Town includes the following component units in its financial statements. The Estes Park Local Marketing District (Visit Estes Park) was established by election in November 2008, to assist with the marketing of businesses and activities in the Marketing District's boundaries, which include the Town and the surrounding area. The election allowed Visit Estes Park to assess a 2% marketing and promotion tax on all lodging establishments in the District. An increase to the lodging tax in 2023 to assist with workforce housing and childcare needs within the community resulted in tax collections of $5,374,603 being transferred to the Town. Visit Estes Park has a separate Board of Directors with seven members appointed by the Town and Larimer County. Although Visit Estes Park is legally separate from the Town, the financial statements are discretely presented in the Town's reporting entity because Visit Estes Park provides services almost exclusively to the Town, and the Town appoints five members (a majority) of the Board of Directors. Separately issued financial statements of Visit Estes Park can be obtained from Visit Estes Park at 1230 Big Thompson Ave., P.O. Box 4426, Estes Park, Colorado 80517. The Estes Park Housing Authority (EPHA) was established in April 1993 to help meet the housing needs of the Estes Park community. During November 2022, voters approved an increase to the lodging tax assessed by the Visit Estes Park to assist with workforce housing and childcare needs within the community. The Town entered into an agreement with the Local Marketing District to manage these new lodging taxes on their behalf. The Town subsequently entered into an agreement with EPHA to assist with workforce housing development, resulting in transfers to EPHA totaling $4,606,966 in 2023. 36 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 1. Summary of Significant Accounting Policies (continued) Due to the nature of this new arrangement with EPHA and the significance of this new workforce housing financial benefit to EPHA’s efforts, EPHA is now considered part of the Town’s reporting entity and their financial statements are now discretely presented within the Town’s reporting entity beginning with the year ending December 31, 2023. Separately issued financial statements for Estes Park Housing Authority may be obtained from Estes Park Housing Authority at 363 East Elkhorn Ave, Ste 101, Estes Park, Colorado 80517. Certain disclosures required by generally accepted accounting principles (GAAP) have been omitted from the Town's notes, as they may be viewed by obtaining Visit Estes Park's or the EPHA’s financial statements as described above. The Estes Park Building Authority (the Building Authority) was formed to provide financing for improvements to the Town-owned golf course. The Estes Valley Recreation and Park District operates the course under a management agreement. The Town Board of Trustees appoints the Directors of the Building Authority. The Building Authority had no financial activity for the year ended December 31, 2023. Joint Venture - In 1975, the Town joined with the cities of Fort Collins, Longmont, and Loveland to establish the Platte River Power Authority (the Authority), to provide electrical power and energy to the Town and Cities. The Authority is governed by an eight-member Board of Directors. Each participant's governing board appoints two members to the Authority's Board of Directors. The Town has a residual interest in the assets of the Authority that may revert to the Town upon dissolution of the Authority. The Town has no equity interest in the Authority. Complete financial statements of the Authority may be obtained by contacting the Platte River Power Authority at 2000 East Horsetooth Road, Fort Collins, Colorado 80525-2942. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the Town and its component units. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges for interfund services that are reasonably equivalent to the services provided. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from the legally separate component unit for which the Town is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of the given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. 37 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 1. Summary of Significant Accounting Policies (continued) Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. Measurement focus, basis of accounting, and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and pension trust fund financial statements. Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current year. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current year. Taxes, intergovernmental revenues, and interest associated with the current year are considered to be susceptible to accrual and so have been recognized as revenues of the current year. Expenditure-driven grants are recognized when the qualifying expenditures have been incurred and all other eligibility requirements have been met. All other revenues are considered to be measurable and available only when cash is received by the Town. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Town's practice to use restricted resources first, then unrestricted resources as they are needed. In the fund financial statements, the Town reports the following major governmental funds: General Fund – The General Fund is the general operating fund of the Town. It is used to account for all financial resources except those accounted for in another fund. Community Reinvestment Fund – This fund was reclassified as a capital projects fund in 2018 from a special revenue fund. The fund accounts for general capital improvements of the Town, including the acquisition, construction, improvement, and maintenance of capital assets. These expenditures are financed by General Fund transfers, intergovernmental grants and debt issuances. 38 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 1. Summary of Significant Accounting Policies (continued) Street Improvement Fund – This fund is a special revenue fund created in April 2015 by vote of the Board of Trustees. The fund accounts for the restricted 0.60% sales tax approved by voters in 2014. The fund is used for selected street department personnel costs, operations, street repairs; such as chip sealing and crack sealing efforts, street replacement, rehabilitation, and construction within the Town of Estes Park. Workforce Housing Lodging Tax Fund - This fund is a special revenue fund created in November 2022 by ballot initiative 6E. This fund receives a portion of the lodging taxes imposed by the Local Marketing District Visit Estes Park for support of workforce housing and childcare development projects within the Town of Estes Park. The Town also reports the following major proprietary funds: The Power and Communications Fund accounts for the financial activities associated with the provision of electric and broadband services. In 2019, the Town passed an ordinance to change the name of this fund from the Light and Power fund to the Power and Communications Fund. The Water Fund accounts for the financial activities associated with the provision of water services. Additionally, the Town reports the following fund types: The Internal Service Funds account for fleet maintenance, vehicle replacement, information technology, medical insurance services and risk management services provided to other departments of the Town on a cost reimbursement basis. Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Assets, Liabilities and Net Position/Fund Balance Cash and Investments - Cash equivalents include investments with original maturities of three months or less. Investments in pooled cash are considered cash equivalents. Investments are reported at fair value. Whenever possible, the Town pools cash to enhance investment opportunities and to facilitate management of cash resources. Restricted Cash and Investments - The amounts restricted are in compliance with the debt requirements associated with the Town's long-term debt. 39 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 1. Summary of Significant Accounting Policies (continued) Interfund Receivables/Payables - During the course of operations, certain transactions occur between individual funds. The resulting receivables and payables are classified in the fund financial statement as interfund receivables and interfund payables. Any residual balances outstanding between governmental and business-type activities are reported in the government-wide financial statements as internal balances. Receivables, net – Consists of amounts due from individuals and organizations for good and services. Additionally, this includes notes receivable of amounts due from customers related to one-time system development assessments. An allowance is uncollectible balances is recorded net. Inventories - Inventories are valued at cost, using the last-in first-out method. The costs of inventories are recorded as expenditures when consumed rather than when purchased. Prepaid Items - Certain payments to vendors reflect costs applicable to future years and are reported as prepaid items using the consumption method. Capital Assets - Capital assets, which include land, buildings, equipment, and all infrastructure owned by the Town, are reported in the applicable governmental or business- type activities columns in the government-wide financial statements and the proprietary funds in the fund financial statements. Capital assets are defined by the Town as assets with an initial, individual cost of $5,000 or more ($50,000 or more for street, bridge and trail infrastructure) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of arts or similar items, and capital assets received in a service concession arrangement are reported at their acquisition cost at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset life are not capitalized. Capital assets of the Town are depreciated using the straight-line method over the following estimated useful lives. Buildings 30 - 40 years Infrastructure – Collection and Distribution Systems 25 - 50 years Infrastructure – Streets, Bridges and Trails 30 – 40 years Machinery and Equipment 20 - 25 years Vehicles 5 - 10 years Subscription based IT arrangements Life of contract Deferred Outflows of Resources - In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources is a consumption of net assets by the Town that is applicable to a future reporting period. The Town has two items that qualify as a deferred outflow of resources related to pension and other post- employment benefit (“OPEB”) liabilities per GASB Statement No. 68 and 75. See Note 8 for additional information. 40 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 1. Summary of Significant Accounting Policies (continued) Unearned Revenues - Unearned revenues arise when resources are received by the Town before it has a legal claim to them or when assets are not available as current financial resources in the governmental funds. In addition, the Town recognizes unearned revenue related to water rates established to support estimated incremental expenses of future scheduled maintenance costs of the Water Fund, consistent with the regulatory provisions of GASB Statement No. 62. At December 31, 2023 the Town reported unearned revenue of $239,277 in governmental funds and $501,595 in the enterprise funds. Deferred Inflows of Resources - In addition to liabilities, the statement of net position will sometimes report separate sections for deferred inflows of resources. A deferred inflow of resources is an acquisition of net assets by the Town that is applicable to a future reporting period. The Town has three items that qualify for reporting as deferred inflows of resources. The first type of deferred inflow of resources occurs because governmental fund revenues are not recognized until available (collected not later than 60 days after the end of the Town's year end) under the modified accrual basis of accounting. In the governmental funds, the Town recorded $4,103,026 of deferred inflows of resources related to unavailable revenue and $458,687 related to property taxes as of December 31, 2023. Finally, a deferred inflow of resources related to the pension and other post-employment benefit amounts per GASB Statement Nos. 68 and 75 have been recorded as of December 31, 2023. See Note 8 for additional information. Deposits - Deposits reported in the General Fund represent customer payments for specific public improvements. The Power and Communications Fund reports deposits received from customers for the construction of electric service facilities at their locations. These deposits are recognized as revenue when the underlying construction is completed. The Power and Communications Fund also includes utility service deposits held as collateral for utility bills. These utility service deposits may be refunded, including accrued interest, at the end of the deposit term if the customer has demonstrated a good payment history. Compensated Absences - Employees of the Town are allowed to accumulate unused vacation and sick time. Upon termination of employment from the Town, an employee will be compensated for all accrued vacation time and, if the employee has completed 20 years of continuous service, will be compensated for 50% of accrued sick time at their current pay rate. These compensated absences are recognized as current salary costs when earned in the proprietary funds and when due in the governmental funds. A long-term liability has been reported in the proprietary funds and government-wide financial statements for the accrued compensated absences. Long-term Obligations - In the government-wide financial statements and the proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Long-term debt is reported net of the applicable premium or discount. Long-term debt issuance costs are expensed when incurred. 41 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 1. Summary of Significant Accounting Policies (continued) Net Position/Fund Balances - In the government-wide and fund financial statements, net position and fund balances are restricted when constraints placed on the use of resources are externally imposed. Committed fund balance represents amounts constrained by the Board of Trustees, which is the highest level of decision-making authority, by formal action (resolution). While there is no formal policy, the Board of Trustees has authorized the Town Administrator or his designee to assign fund balances for specific purposes consistent with the adopted budget. If both restricted and unrestricted fund balances are available, the Town uses restricted fund balance first, followed by committed, assigned and unassigned. As of December 31, 2023, the Town reported the following restrictions in the statement of net position: 1) $981,343 restricted for parks and open space, $6,435,650 restricted for future capital improvements and $801,841 restricted for emergencies (see Note 11) reported under governmental activities; and 2) $1,250,000 restricted for operations and maintenance reserves reported under business-type activities. Restricted net position is a result of externally imposed restrictions. Property Taxes -Property taxes attach as an enforceable lien on property on January 1, are levied the following December, and collected in the subsequent year. Taxes are payable in full on April 30 or in two installments on the last day of February and June 15. The Larimer County Treasurer's Office collects property taxes and remits to the Town on a monthly basis. Since property taxes are collected in arrears during the succeeding year, a receivable and corresponding deferred inflows of resources are reported at year-end. Contraband forfeitures -The Colorado Contraband Forfeiture Act allows law enforcement agencies to retain proceeds from the seizure of contraband. These proceeds are not subject to appropriation in the budget process. Cash proceeds are recorded in the General Fund. Property and equipment seized are recorded as capital assets. Pensions -The Town and the discretely presented component unit participate in the Local Government Division Trust Fund ("LGDTF"), a cost-sharing multiple-employer defined benefit pension plan administered by the Public Employees' Retirement Association of Colorado ("PERA"). The net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position of the LGDTF have been determined using the economic resources measurement focus and the accrual basis of accounting. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Other Post-Employment Benefits ("OPEB") -The Town and the discretely presented component unit participate in the Health Care Trust Fund ("HCTF"), a cost-sharing multiple- employer defined benefit OPEB fund administered by the Public Employees' Retirement Association of Colorado ("PERA"). The net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, OPEB expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position of the HCTF have been determined using the economic resources measurement focus and the accrual basis of accounting. 42 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 1. Summary of Significant Accounting Policies (continued) For this purpose, benefits paid on behalf of health care participants are recognized when due and/or payable in accordance with the benefit terms. Investments are reported at fair value. The Town also provides post-employment medical insurance premium assistance to all active and retired employees under the Retiree Medical Insurance Plan (the "Plan"). The Plan is a single employer defined benefit OPEB plan administered by the Town. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. New Accounting Pronouncements- For 2023, the Town implemented Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. GASB Statement No. 96 provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to- use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. As a result of implementation, the Town recorded a right-to-use intangible SBITA asset totaling $111,130 in the governmental activities, and a corresponding $101,629 subscription liability, effective January 1, 2023. Additionally, the Town recorded a right-to-use intangible SBITA asset totaling $9,625 in the business-type activities, with no corresponding liability, effective April 1, 2023. 2. Stewardship, Compliance and Accountability Budgets and Budgetary Accounting Budgets are legally adopted for all funds of the Town. Budgets for the governmental funds are adopted on a basis consistent with GAAP. Budgetary comparisons for the enterprise and internal service funds are presented on a non-GAAP budgetary basis. Capital outlay and debt service principal are budgeted as expenditures and depreciation is not budgeted. The Town follows these procedures in establishing the budgetary data reflected in the financial statements: •Management submits to the Board of Trustees a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them; •Public hearings are conducted to obtain taxpayer comments; •Prior to December 15, the budget is legally enacted through passage of a resolution; •Management is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the Board of Trustees; •All budget appropriations lapse at year-end. 43 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 3. Cash and Investments A summary of cash and investments as of December 31, 2023, follows: Town Visit Estes Park EPHA Petty Cash 4,350$ -$ -$ Deposits 4,653,071 3,015,416 6,018,473 Investments 55,638,367 - - Total 60,295,788$ 3,015,416$ 6,018,473$ Cash and investments are presented in the government-wide financial statements as follows: Town Visit Estes Park EPHA Cash and investments 60,028,685$ 3,015,416$ 1,922,872$ Tenant security deposits -- 215,517 Restricted cash and investments 267,103 -3,880,084 Total 60,295,788$ 3,015,416$ 6,018,473$ Bank Deposits The Colorado Public Deposit Protection Act (PDPA) requires all local government entities to deposit cash in eligible public depositories. Eligibility is determined by State regulations. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. The PDPA allows the financial institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution or held in trust for all uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2023, the Town, Visit Estes Park, and EPHA bank deposits had carrying values of $5,217,931, $3,016,532, and $257,036 respectively. Deposits collateralized under the PDPA are considered collateralized with securities held by the pledging financial institution's trust department or agent in the Town's, Visit Estes Park's, or EPHA’s name because the collateral pool meets the "held in name of the government" criterion. Investments The Town is required to comply with State statutes which specify investments meeting defined rating, maturity, and concentration risk criteria in which local governments may invest, which include the following (listed below). State statutes do not address custodial risk. The Town’s investment policy does not further limit these investment choices. Colorado statutes specify in which instruments the local government may invest, which include: 1.Repurchase agreements in obligations of the United States; 44 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 3. Cash and Investments (continued) 2.Obligations of the United States or obligations unconditionally guaranteed by the United States; 3.General obligation or revenue bonds of any state, District of Columbia, US territory or any of their subdivisions, with certain limitations; 4.Bankers’ acceptance issued by a state or national bank, with certain limitations; 5.Commercial paper, with certain limitations; 6.Any obligation, certificate of participation or lease/purchase of the investing public entity; 7.Money market funds, with certain limitations, which invest in the types of securities listed above; 8.Guaranteed investment contracts, with other certain limitations; 9.Participation with other local governments in pooled investment funds (trusts). These trusts are supervised by participating governments and must comply with the same restrictions on cash deposits and investments. These trusts are "Colotrust," “CSAFE", and “CSIP”. At December 31, 2023, the Town had the following investments reported as cash and cash equivalents: Investment Maturities (in Years) Investment Type Rating Less than 1 1 to 5 Fair Value Local Government Investment Pools AAAm $35,330,184 $ - $ 35,330,184 Corporate bonds AA- - 635,877 635,877 U.S. Treasury Securities AA+ 2,556,067 8,422,797 10,978,864 Government agencies AA+ 3,564,889 5,128,553 8,693,442 Total $41,451,140 $ 14,187,227 $ 55,638,367 Interest Rate Risk- State statutes limit investments in U.S. Treasury and Agency securities to an original maturity of five years unless the governing board authorizes the investment for a period in excess of five years. Credit Risk - State statutes limit investments in U.S. Agency securities to the highest rating issued by two or more nationally recognized statistical rating organizations (NRSROs). State statutes also limit investments in money market funds to those that maintain a constant share price, with a maximum remaining maturity in accordance with Rule 2a-7, and either have assets of one billion dollars or the highest rating issued by a NRSRO. 45 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 3. Cash and Investments (continued) Concentration of Credit Risk- State statutes do not limit the amount the Town may invest in one issuer. The Town's concentration of credit risk that exceed 5% is shown below as of December 31, 2023. Percentages are based on the Town's total investments. Investment Type Concentration of Credit Risk Local Government Investment Pools 63.50% Corporate Bonds 1.14% Government Agencies 15.62% Government Bonds 19.73% Fair Value The Town categorizes its fair value measurements within the fair value hierarchy established by the generally accepted accounting principles (GAAP). The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. Investment balances at December 31, 2023 were as follows: Investments Level 1 Level 2 Level 3 Total Government agencies $8,693,442 $ - $ - $ 8,693,442 Corporate bonds - 635,877 - 635,877 Government bonds -10,978,864 -10,978,864 Total $8,693,442 $11,614,741 $ -$ 20,308,183 Local government investment pool measured at NAV 23,577,481 Local government investment pool measured at amortized cost 11,752,703 Total $ 55,638,367 Securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities or offer same day liquidity at a price of par. Securities classified in Level 2 are valued using inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. The Town's securities in Level 2 are valued using matrix pricing and various relational pricing model techniques. As of December 31, 2023, the Town had invested $13,895,933 in the Colorado Local Government Liquid Asset Trust (COLOTRUST) (the Trust), an investment vehicle established for local government entities in Colorado to pool surplus funds. The State Securities Commission administers and enforces all State statutes governing the Trust. The Trust operates similarly to a money market fund and each share has a constant net asset value. 46 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 3. Cash and Investments (continued) The Trust offers shares in three portfolios, COLOTRUST PRIME, COLOTRUST PLUS+, and COLOTRUST EDGE. These portfolios may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities. COLOTRUST PLUS+ may also invest in certain obligations of U.S. Government agencies, highest rated commercial paper and any security allowed under CRS 24-75-601. A designated custodial bank serves as custodian for the Trust's portfolios pursuant to a custodian agreement. The custodian acts as the safekeeping agent for the Trust's investment portfolios and provides services as the depository in connection with direct investments and withdrawals. The custodian's internal records segregate investments owned by the Trust. COLOTRUST is rated AAAm by Standard & Poor's and is measured at net asset value (NAV). There are no unfunded commitments, the redemption frequency is daily and there is no redemption notice period. As of December 31, 2023, the Town had invested $11,752,703 in the Colorado Surplus Asset Fund Trust (CSAFE), an investment vehicle established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces all State statutes governing the Trust. CSAFE is a highly liquid fund operating similarly to a money market-like fund and each share is equal in value to $1.00. CSAFE measures all of its investment at amortized cost in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants. CSAFE invests primarily in United States Treasuries, United States Agencies, Primary Dealer Repurchase Agreements, highly rated commercial paper, AAAm rated money market funds, highly rated corporate bonds and Colorado Depositories. The weighted average maturity of the portfolio shall not exceed 60 days and the weighted average life of the portfolio shall not exceed 120 days. CSAFE is rated AAAm by Standard & Poor's. There are no unfunded commitments, the redemption frequency is daily or weekly, and there is no redemption notice period. As of December 31, 2023, the Town had $9,681,548 invested in Colorado Statewide Investment Program (CSIP), an investment vehicle established for local government entities in Colorado to pool surplus funds for investment purposes. CSIP is a highly liquid fund operating similarly to a money market-like fund and each share is equal in value to $1.00. CSIP measures all of its investment at net asset value in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants. CSIP invests primarily in United States Treasuries, United States Agencies, Primary Dealer Repurchase Agreements, highly rated commercial paper, AAAm rated money market funds, highly rated corporate bonds and Colorado Depositories. CSIP is rated AAAm by Standard & Poor's. The remainder of this page intentionally left blank. 47 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 4. Capital Assets Capital asset activity for the year ended December 31, 2023 is summarized below: Balance Balance December 31, Transfers/ Transfers/ December 31, 2022 Additions Retirements 2023 Governmental Activities Capital assets, not being depreciated : Land held for preservation 6,288,911$ -$ -$ 6,288,911$ Construction in Progress 6,769,341 7,510,581 (43,502) 14,236,420 Total capital assets, not being depreciated 13,058,252 7,510,581 (43,502) 20,525,331 Capital assets, being depreciated: Buildings 23,740,774 401,046 - 24,141,820 Infrastructure 140,165,992 814,475 - 140,980,467 Machinery and Equipment 9,743,704 771,897 (186,135) 10,329,467 Intangible right-to-use SBITA*- 111,130 - 111,130 Total capital assets, being depreciated 173,650,470 2,098,548 (186,135) 175,562,884 Buildings (12,788,470) (580,508) - (13,368,978) Infrastructure (98,560,882) (2,575,437) - (101,136,319) Machinery and Equipment (6,482,908) (882,363) 183,609 (7,181,662) Intangible right-to-use SBITA*- (27,963) - (27,963) Total accumulated depreciation and amortization (117,832,260) (4,066,271) 183,609 (121,714,922) Total capital assets, being depreciated/amortized , net 55,818,211 (1,967,723) (2,526) 53,847,963 Total governmental activities capital assets, net 68,876,463$ 5,542,858$ (46,028)$ 74,373,293$ * Subscription based technology agreements Less accumulated depreciation and amortization: Depreciation expense was charged to governmental programs of the Town as follows: Governmental Activities General Government $ 421,909 Public Safety 129,676 Public Works 3,100,039 Culture and Recreation 414,648 Total $ 4,066,271 48 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 4. Capital Assets (continued) Balance Balance December 31, Transfers/ Transfers/ December 31, 2022 Additions Retirements 2023 Business-Type Activities Capital assets, not being depreciated : Land and easements 4,271,639$ -$ -$ 4,271,639$ Construction in progress 26,950,875 7,925,557 (25,681,204) 9,195,228 Total capital assets, not being depreciated 31,222,514 7,925,557 (25,681,204) 13,466,867 Capital assets, being depreciated: Buildings 12,525,648 - - 12,525,648 Infrastructure 48,234,303 31,486,603 - 79,720,906 Machinery and Equipment 22,540,870 495,755 - 23,036,625 Intangible right-to-use SBITA*- 9,625 - 9,625 Total capital assets, being depreciated 83,300,821 31,991,983 - 115,292,804 Less accumulated depreciation: Buildings (5,011,400) (328,667) - (5,340,067) Infrastructure (19,162,732) (1,188,689) - (20,351,421) Machinery and Equipment (13,205,761) (1,035,006) - (14,240,767) Intangible right-to-use SBITA*-(2,139)-(2,139) Total accumulated depreciation and amortization (37,379,893) (2,554,500) - (39,934,393) Total capital assets, being depreciated/amortized , net 45,920,928 29,437,483 - 75,358,411 Total business-type activities capital assets, net 77,143,442$ 37,363,039$ (25,681,204)$ 88,825,278$ * Subscription based technology agreements Depreciation expense was charged to business-type activities of the Town as follows: Business-Type Activities Power and Communications 1,605,889$ Water 948,611 Total 2,554,500$ 49 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 4. Capital Assets (continued) The Town implemented Governmental Accounting Standards Board Statement No. 96, Subscription- Based Information Technology Arrangements, during the year ended December 31, 2023. The Town has two software arrangements that require recognition under GASB No. 96. The Town now recognizes a subscription-based information technology arrangements (SBITA) liability and an intangible right-to-use asset for the agreements related to a five-year enforcement mobile software subscription and a prepaid three-year budgeting software subscription. The intangible right-to-use assets in the above tables will be amortized over the term of the agreements. 5. Long-Term Debt Governmental Activities Following is a summary of long-term debt transactions for the governmental activities for the year ended December 31, 2023. Balance at Balance at Due December 31, December 31, Within 2022 Additions Payments 2023 One Year Governmental activities: Certificates of participation 2,410,000$ -$ (460,000)$ 1,950,000$ 470,000$ Lease purchase agreement 3,064,057 - (264,998) 2,799,059 277,056 Radio Equipment Lease Purchase 130,486 - (41,933) 88,553 44,030 Premium lease purchase 99,362 - (19,379) 79,983 17,708 Total direct placements 5,703,905$ -$ (786,310)$ 4,917,595$ 808,794$ SBITA* liability - 101,629 (21,465) 80,164 18,938 Environmental remediation 84,233 - (5,499) 78,734 6,000 Compensated Absences 800,019 909,487 (914,812) 794,694 529,150 Total other long-term liabilities 884,252$ 1,011,116$ (941,776)$ 953,591$ 554,088$ Total 6,588,157$ 1,011,116$ (1,728,086)$ 5,871,186$ 1,362,882$ Compensated absences and postemployment benefits are expected to be liquidated primarily with revenues of the General Fund. 50 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 5. Long-Term Debt (continued) Business-Type Activities Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2023. Balance at Balance at Due December 31, December 31, Within 2022 Additions Payments 2023 One Year Business-type activities: 2019A Power and Comm Rev Bonds 21,820,000$ -$ (435,000)$ 21,385,000$ 455,000$ 2019A Power and Comm Rev Bonds Premium 2,875,321 - (231,303) 2,644,018 228,351 2019B Taxable Power and Comm Rev Bonds 7,050,000 -(820,000) 6,230,000 840,000 Total bonded debt 31,745,321$ -$ (1,486,303)$ 30,259,018$ 1,523,351$ 2008A Water Loan 2,037,699$ -$ (306,506)$ 1,731,193$ 306,506$ 2019 Radio Equipment Lease 52,025 - (15,499) 36,526 16,302 2020 USDA Loan 517,096 - (13,537) 503,559 13,813 2019 Radio Equipment Lease Purchase (503)6,232 - (2,421) 3,811 2,533 2022 Construction Loan 54,376 710,240 -764,616 - Total direct placements 2,667,428$ 710,240$ (337,964)$ 3,039,704$ 339,154$ Compensated Absences 486,816$ 610,169$ (518,120)$ 578,865$ 383,948$ Total other long-term liabilities 486,816$ 610,169$ (518,120)$ 578,865$ 383,948$ Total 34,899,565$ 1,320,409$ (2,342,387)$ 33,877,587$ 2,246,453$ The Refunding and Improvement Power and Communications Revenue Bonds, Series 2019A were issued to advance refund the 2007 Light and Power Bond and to finance the Electric SmartGrid and Broadband projects. Principal payments are due annually on November 1 through 2039. Interest payments are due semi-annually on May 1 and November and interest rates vary from 3.0 to 5.0%. The Power and Communications Revenue Bonds, Series 2019B, were issued to finance Power and Communications projects. Principal payments are due annually on November 1 starting in 2023 through 2029. Interest payments are due semi-annually on May 1 and November and interest rates vary from 2.362 to 2.988%. A balance of $2,644,018 remains on the premium. The following are considered to be events of default under these bond agreements: (a) Payment of the principal of any bond is not made when the same becomes due and payable; (b) Payment of any installment of interest on any bond is not made when the same becomes due and payable; 51 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 5. Long-Term Debt (continued) (c) The Town, for any reason becomes incapable of fulfilling its obligations under the Bond Ordinance; (d) The Town shall have failed to carry out and to perform (or in good faith to begin the performance of) all acts and things lawfully required to be carried out or to be performed by it under any contract relating to the Revenue or to the Light and Power Facilities, the Communications Facilities or otherwise, and such failure shall continue for 60 days after receipt of notice from the registered owners of 25% in aggregate principal amount of the bonds then outstanding; provided that if such failure cannot be cured within such 60 days and if during that period corrective action has commenced to remedy such failure and subsequently is diligently pursued by the Town to the completion of such performance, an event of default shall not be deemed to have occurred; (e) The Town discontinues or unreasonably delays or fails to carry out with reasonable dispatch the reconstruction of any essential part of the Light and Power Facilities or the Communications Facilities which is condemned, destroyed or damaged and is not promptly repaired or replaced (whether such failure to repair the same is due to impracticality of such repair or replacement, or is due to a lack of moneys therefor, or for other reason); (f) An order or decree is entered by a court of competent jurisdiction, with the consent or acquiescence of the Town, appointing a receiver or receivers for the Light and Power Facilities or the Communications Facilities or for the Revenue and any other moneys subject to the lien to secure the payment of the Bonds, or if any order or decree, having been entered without the consent or acquiescence of the Town is not vacated or discharged or stayed on appeal within 60 days after entry; or (g) The Town defaults in the due and punctual performance of any other of the representations, covenants, conditions, agreements and other provisions contained in the bonds or the Bond Ordinance on its part to be performed, and if such default continues for 60 days after written notice, specifying such default and requiring the same to be remedied, is given to the Town by the registered owners of 25% in aggregate principal amount of the Bonds then outstanding; provided that if such failure cannot be cured within such 60 days and if during that period corrective action has commenced to remedy such default and subsequently is diligently pursued to the completion of such performance, an event of default shall not be deemed to have occurred. In the event of default, the registered owners of not less than 25% in aggregate principal amount of the bonds outstanding may initiate legal proceedings to enforce their rights under the Bond Ordinance. 52 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 5. Long-Term Debt (continued) The annual debt service requirements for the outstanding bonds at December 31, 2023 are as follows: Year ending December 31, Principal Interest Total 2024 1,295,000$ 1,081,991$ 2,376,991$ 2025 1,340,000 1,039,241 2,379,241 2026 1,385,000 991,805 2,376,805 2027 1,425,000 952,503 2,377,503 2028 1,465,000 910,772 2,375,772 2029-2033 8,240,000 3,647,783 11,887,783 2034-2038 10,180,000 1,710,200 11,890,200 2039 2,285,000 91,400 2,376,400 Total 27,615,000$ 10,425,695$ 38,040,695$ The 2008 Water Loan from the Colorado Water Resources and Power Development Authority was obtained to finance a membrane filter and increase capacity at the Mary’s Lake Water Treatment Plant. Principal and Interest payments are due semi-annually on February 1 and August 1 through 2028. Interest accrues at 3.26% per annum. The following are considered to be events of default under the loan agreement: (a)failure by the Town to pay or cause to be paid any amounts required to be paid when due, which failure shall continue for a period of ten days; (b)failure by the Town to make or cause to be made any required payments of principal of redemption premium if any and interest on any bonds notes or other obligations for borrowed money, after giving effect to the applicable grace period, the payments of which are secured by pledged property; (c)failure by the Town to pay or cause to be paid the Administrative Fee or any portion thereof when due or to observe and perform any duty covenant obligation or agreement on its part to be observed or performed under the loan agreement and other than a failure to comply with the provisions of the loan agreement, which failure shall continue for a period of thirty days after written notice specifying such failure and requesting that it be remedied is given to the Town by the Trustee; (d)a petition is filed by or against the Town under any federal or state bankruptcy or insolvency law or other similar law in effect on the date of the loan agreement or thereafter enacted unless in the case of any such petition filed against the Town such petition shall be dismissed within thirty days after such filing and such dismissal shall be final and not subject to appeal or the Town shall become insolvent or bankrupt or make an assignment for the benefit of its creditors or a custodian including without limitation a receiver liquidator or trustee of the Town or any of its property shall be appointed by court order to take possession of the Town or its property or assets if such order remains in effect or such possession continues for more than thirty days. (e)In the event of default, the lender may initiate legal proceedings to enforce their rights under the loan agreement. All income derived from the operations of the water facilities must be sufficient to pay a) all Operating Expenses during the fiscal year; and b) 110% of the debt service due during the fiscal year. 53 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 5. Long-Term Debt (continued) During the year ended December 31, 2023, revenues of $6,509,364 were available to pay 110% of annual debt service of $443,643 and operating expenses of $5,476,942. Annual debt service requirements for the outstanding Water Loan at December 31, 2023 are as follows: Year ending December 31, Principal Interest Total 2024 306,506$ 89,309$ 395,815$ 2025 329,211 70,791 400,002 2026 346,239 55,301 401,540 2027 363,267 39,613 402,880 2028 385,970 17,234 403,204 Total 1,731,193$ 272,247$ 2,003,441$ Effective January 1, 2019, the Town entered into a lease purchase obligation in the amount of $419,293 for the lease of radio equipment. The lease requires annual principal and interest payments of $69,348, with interest at 5.030%. The following are events of default under this agreement: (i) failure to make any lease payment (or any other payment) as it becomes due in accordance with the terms of the lease when funds have been appropriated sufficient for such purpose, and any such failure continues for ten (10) days after the due date thereof; (ii) failure to perform or observe any other covenant, condition, or agreement to be performed or observed by it hereunder and such failure is not cured within twenty (20) days after written notice thereof by the lessor; (iii) the discovery by lessor that any statement, representation, or warranty made by the Town in the lease or in writing delivered by lessee is false, misleading or erroneous in any material respect; (iv) proceedings under any bankruptcy, insolvency, reorganization or similar legislation shall be instituted against or by the lessee, or a receiver or similar officer shall be appointed for lessee or any of its property, and such proceedings or appointments shall not be vacated, or fully stayed, within twenty (20) days after the institution or occurrence thereof; or (v) an attachment, levy or execution is threatened or levied upon or against the equipment. In the event of default, the lessor may, at its option: (i) declare all amounts due under the lease; (ii) request the Town to discontinue use of the equipment; (iii) sell or lease the equipment; (iv) request the return of the equipment to the lessor; or (v) exercise any other right available under law. Annual debt service requirements for the outstanding lease obligation at December 31, 2023 are as follows: Year ending December 31, Principal Interest Total 2024 62,864$ 6,484$ 69,348$ 2025 66,027 2,531 68,558 Total 128,891$ 9,015$ 137,906$ 54 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 5. Long-Term Debt (continued) On May 30, 2013, the Town issued Certificates of Participation, Series 2013, in the amount of $6,075,000, for the purpose of financing construction of a multi-purpose events center and new stall barns at the Stanley Park Fairgrounds complex. The certificates are subject to mandatory sinking fund redemption prior to maturity of December 1, 2027. Payments of principal are due annually on December 1, through 2027. Interest accrues at a rate of 2.430% and is payable semiannually on June 1 and December 1. The following are events of default under this agreement: (i)failure by the Town to pay any amounts due during the term of the agreement within five days following the due date; (ii)failure by the Town to vacate the underlying property by the specified date in an event of Nonappropriation; (iii)any sublease, assignment, encumbrance, conveyance or other transfer of the interest of the Town in all or any portion of the underlying property, in violation of terms of the agreement (iv)failure by the Town to observe and perform any covenant, condition or agreement on its part to be observed or performed, other than as excluded by the agreement, for a period of 30 days after written notice; or (v)the Town files a petition or application seeking reorganization or protection under federal bankruptcy law or for other debtor relief under the laws of the State or a receiver is appointed for all or any material portion of the Town's assets or revenues or the Town is the subject of such a petition or application which is not contested by the Town or otherwise dismissed, vacated, discharged or stayed within 60 days. In the event of default, the trustee has the right to terminate the agreement, request the Town to vacate the underlying property and sell or assign it interest in the agreement. They may also recover any unpaid amounts and take any additional action allowed by law. Annual debt service requirements for the outstanding Certificates of Participation at December 31, 2023 are as follows: Year ending December 31, Principal Interest Total 2024 470,000$ 47,385$ 517,385$ 2025 480,000 35,964 515,964 2026 495,000 24,300 519,300 2027 505,000 12,272 517,272 Total 1,950,000$ 119,921$ 2,069,921$ 55 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 5. Long-Term Debt (continued) On January 1, 2017, the Town entered into a Lease Purchase Agreement commencing on January 23, 2017 and terminating on January 1, 2032, with Saulsbury Hill Financial, LLC. Under the agreement, Saulsbury Hill Financial, LLC will lease real property, including improvements, fixtures and equipment from the Town and provide funds in the aggregate amount of the principal rental payments. Saulsbury Hill Financial, LLC will also lease its interest in the property to the Town for rental payments until termination of the agreement. Upon execution of the Lease Purchase Agreement, $4,497,093 was deposited into a project fund and was fully disbursed at December 31, 2023. The total principal balance on the lease is $3,559,951 at an annual interest rate of 4.5%. A balance of $79,983 remains on the premium. Rental payments are to be made by the Town, semi-annually, in the amount of $199,966. The Town has the option to purchase on any rental payment date beginning January 1, 2022, with payment in full of the rental payments plus the applicable purchase price. The Town may exercise its option to purchase at any time in the event of substantial damage or destruction to the leased property, upon payment in full of rental payments, plus the purchase price. The following are events of default under this agreement: (i)Failure by the Town to make any payments required to be paid at the time specified; (ii)Failure by the Town to observe and perform any covenant, condition or agreement under the agreement on its part to be observed or performed, other than as referred to in the agreement; (iii)Any statement, representation or warranty made by Town in or pursuant to the agreement or any instrument or certificate related thereto or to the project shall be incorrect, untrue or misleading in any material respect; (iv)Any provision of the agreement shall at any time for any reason cease to be valid and binding on the Town, or shall be declared to be null and void, or the validity or enforceability thereof shall be contested by the Town or any governmental agency or authority if the loss of such provision would materially adversely affect the rights or security of the Town, or the Town denies that it has any further liability or obligation under this agreement; or The filing by the Town of a voluntary petition in bankruptcy, or failure by the Town to promptly lift any execution, garnishment or attachment of such consequence as would impair the ability of the Town to carry on its essential functions, or adjudication of the Town as a bankrupt, or assignment for the benefit of creditors, or the entry into an agreement of composition with creditors, or the approval by a court of competent jurisdiction of a petition applicable to the Town in any proceedings instituted under the provisions of any applicable federal bankruptcy law. In the event of default, the trustee has the right to terminate the agreement, request the Town to vacate the underlying property and sell or assign it interest in the agreement. They may also recover any unpaid amounts and take any additional action allowed by law. 56 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 5. Long-Term Debt (continued) Annual debt service requirements for the outstanding Lease Purchase Agreement at December 31, 2023 are as follows: Year ending December 31, Principal Interest Total 2024 277,056$ 122,876$ 399,932$ 2025 289,664 110,268 399,932 2026 302,846 97,086 399,932 2027 316,627 83,305 399,932 2028 331,036 68,896 399,932 2029-2032 1,281,831 117,931 1,399,762 Total 2,799,059$ 600,362$ 3,399,422$ On July 15, 2020, the Town entered into a loan agreement with the U.S. Department of Agriculture (USDA) in the amount of $658,000, to fund a water project that was completed in 2020. The note bears interest at a rate of 2.25% per annum and requires monthly payments of principal and interest in the amount $2,086, through July 2050. In the event that the Town does not comply with the terms of the USDA loan, the non-compliance would be addressed under the provisions of 7 CFR 1782 and other applicable regulations, statutes and policies. Annual debt service requirements for the USDA loan at December 31, 2023 are as follows: Year ending December 31, Principal Interest Total 2024 13,813$ 11,185$ 24,998$ 2025 14,162 10,870 25,032 2026 14,484 10,548 25,032 2027 14,784 10,248 25,032 2028 15,149 9,883 25,032 2029-2033 81,044 44,116 125,160 2034-2038 90,688 34,472 125,160 2039-2043 101,469 23,691 125,160 2044-2048 113,563 11,597 125,160 2049-2050 44,404 947 45,351 Total 503,559$ 167,558$ 671,117$ On October 11, 2022, the Town entered into a construction loan agreement with a commercial lender in the amount drawn on the loan, up to $4,493,000, to fund the upgrade and rebuild of a water distribution system. Upon completion of the project, the USDA has agreed to provide a permanent loan to replace the current loan, for an amount up to $4,493,000. The note bears interest at a variable rate, which is initially set at the Daily Simple Secured Overnight Financing Rate, with semi-annual interest payments due on February 1 and August 1 of each year, beginning February 1, 2023. The note matures on August 1, 2025. The construction loan carries a balance of $764,616 as of December 31, 2023. 57 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 5. Long-Term Debt (continued) Events of default on the loan include events of non-payment of interest and principal, bankruptcy or nonperformance of other covenants, conditions, agreements and provisions of the note. In the event of default, the lender may proceed under the law to enforce or compel performance of the terms of the note. In prior years, the Town was identified as a responsible party in the mitigation of ground water and drainage issues at the Elm Road Landfill. The Town has received a mandated request from the State of Colorado to submit a drainage plan to address the issues. During 2014, the Town contracted with Steward Environmental Consultants, LLC regarding the identified drainage issues and the Town's estimated liability. The Town's estimate was based on a drainage plan of the area and cost estimates for completing the site-specific controls necessary. During 2023, the Town made payments in the amount of $5,499 for monitoring costs. As of December 31, 2023, the Town's estimated liability is $78,734 which represents estimated monitoring costs for two fiscal years. This amount has been reported as a long-term liability in the government-wide financial statements. In November 2022, the Town entered into a subscription-based information technology arrangement for enforcement mobile ticketing software, which allows the right-to-use software over the term of the agreement. The Town is required to make monthly minimum contractual payments totaling $1,838. The Town used an estimate of its incremental borrowing rate to determine the subscription discount rate. The subscription term is 60 months and matures October 31, 2027. The weighted average remaining subscription term is 3.84 years, and the weighted average rate is 4.27%. Annual debt service requirements for the subscription liability at December 31, 2023 are as follows: Year ending December 31, Principal Interest Total 2024 18,937$ 3,123$ 22,060$ 2025 19,759 2,301 22,060 2026 20,617 1,443 22,060 2027 20,851 521 21,372 Total 80,164$ 7,388$ 87,551$ 6. Interfund Transfers Interfund transfers for the year ended December 31, 2023, were comprised of the following: Transfers In Transfers Out Amount General Fund Power and Communications Fund 1,354,932$ General Fund Water Fund 141,876 Community Reinvestment Fund General Fund 5,372,751 General Fund Parking Services Fund 190,000 7,059,559$ 58 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 6. Interfund Transfers (continued) Annually, the Power and Communications and Water Funds subsidizes the General Fund out of surplus revenues. The transfer from the General Fund to the Community Reinvestment fund was to move capital project dollars to the capital project fund. 7. Notes Receivable Following is a summary of notes receivable activity for the business-type activities for the year ended December 31, 2023. Balance at Balance at Due December 31, December 31, Within 2022 Additions Payments 2023 One Year Business-type activities: Notes receivable 1,217,858$ -$ (109,401)$ 1,108,457$ 129,226$ Total 1,217,858$ -$ (109,401)$ 1,108,457$ 129,226$ In February 2019, the Town entered into an agreement with a business to access to the Town’s water system which required payment of system development fees. The agreement totaled $206,050, with a $26,050 up front payment, with the remaining $180,000 to be repaid in annual installments totaling $20,000 per year, plus accrued interest at a rate of 4.0% annually until February 2028. The balance outstanding on this agreement as of December 31, 2023 totaled $100,000. In August 2020, the Town entered into an agreement with a business to expand access to the Town’s water system which required additional system development fees. The agreement totaled $237,414, with a $35,551 credit provided for existing water service, $14,000 assistance from the Town credited to the agreement, and the remaining $187,863 to be repaid in annual installments totaling $21,744 per year beginning in August 2024, plus accrued interest at a rate of 1.75% annually until August 2033. No payments are required from August 2020 to August 2023; however, interest accrues on the balance each year. The balance outstanding on this agreement as of December 31, 2023 totaled $191,012. In November 2021, the Town entered into a treated water service agreement with a business which required payment of system development fees. The agreement was effective January 1, 2022 and totaled $1,007,438, with a $100,743 up front payment, and the remaining balance to be repaid in annual installments totaling $116,450 until 2031. Interest accrues annually at 3.0%. The balance outstanding on this agreement as of December 31, 2023 totaled $817,445. 59 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 8. Risk Management Public Entity Risk Pool The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. For these risks of loss, the Town is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA), a separate and independent governmental and legal entity formed by intergovernmental agreement by member municipalities pursuant to State statute. The purposes of CIRSA are to provide members defined liability, property, and workers compensation coverage and to assist members in preventing and reducing losses and injuries to municipal property and to persons or property, which might result in claims being made against members of CIRSA, their employees and officers. It is the intent of the members of CIRSA to create an entity in perpetuity, which will administer and use funds contributed by the members to defend and indemnify, in accordance with the bylaws, any member of CIRSA against stated liability of loss, to the limit of the financial resources of CIRSA. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverages at reasonable costs. All income and assets of CIRSA shall be at all times dedicated to the exclusive benefit of its members. CIRSA is a separate legal entity and the Town does not approve its budgets nor does it have the ability to significantly affect the operations of CIRSA. Claims have not exceeded insurance coverage for the previous three years. 9. Defined Benefit Pension Plan Plan description - Eligible employees of the Town are provided with pensions through the Local Government Division Trust Fund, a cost-sharing multiple-employer defined benefit pension plan administered by PERA. Plan benefits are specified in Title 24, Article 51 of the Colorado Revised Statutes (C.R.S.), administrative rules set forth at 8 C.C.R. 1502-1, and applicable provisions of the federal Internal Revenue Code. Colorado State law provisions may be amended from time to time by the Colorado General Assembly. PERA issues a publicly available annual comprehensive financial report (ACFR) that can be obtained at www.copera.org/investments/pera-financial-reports. Benefits Provided - PERA provides retirement, disability, and survivor benefits. Retirement benefits are determined by the amount of service credit earned and/or purchased, highest average salary, the benefit structure(s) under which the member retires, the benefit option selected at retirement, and age at retirement. Retirement eligibility is specified in tables set forth at C.R.S. § 24-51-602, 604, 1713, and 1714. The lifetime retirement benefit for all eligible retiring employees under the PERA benefit structure is the greater of the: Highest average salary multiplied by 2.5 percent and then multiplied by years of service credit. The value of the retiring employee's member contribution account plus a 100 percent match on eligible amounts as of the retirement date. This amount is then annuitized into a monthly benefit based on life expectancy and other actuarial factors. 60 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 9. Defined Benefit Pension Plan (continued) In all cases the service retirement benefit is limited to 100 percent of highest average salary and also cannot exceed the maximum benefit allowed by federal Internal Revenue Code. Members may elect to withdraw their member contribution accounts upon termination of employment with all PERA employers; waiving rights to any lifetime retirement benefits earned. If eligible, the member may receive a match of either 50 percent or 100 percent on eligible amounts depending on when contributions were remitted to PERA, the date employment was terminated, whether 5 years of service credit has been obtained and the benefit structure under which contributions were made. Upon meeting certain criteria, benefit recipients who elect to receive a lifetime retirement benefit generally receive post-retirement cost-of-living adjustments, referred to as annual increases in the C.R.S. Subject to the automatic adjustment provision (AAP) under C.R.S. § 24-51-413, eligible benefit recipients under the PERA benefit structure who began membership before January 1, 2007. Eligible benefit recipients under the PERA benefit structure who began membership on or after January 1, 2007, will receive the lesser of an annual increase of the 1.00% AI cap or the average increase of the Consumer Price Index for Urban Wage Earners and Clerical Workers for the prior calendar year, not to exceed a determined increase that would exhaust 10% of PERA’s Annual Increase Reserve (AIR) for the LGDTF. The AAP may raise or lower the aforementioned AI cap by up to 0.25% based on the parameters specified in C.R.S. § 24-51-413. Disability benefits are available for eligible employees once they reach five years of earned service credit and are determined to meet the definition of disability. Survivor benefits are determined by several factors, which include the amount of earned service credit, highest average salary of the deceased, the benefit structure(s) under which service credit was obtained, and the qualified survivor(s) who will receive the benefits. Contribution Provisions as of December 31, 2023 -Eligible employees and the Town are required to contribute to the LGDTF at a rate set by Colorado statute. The contribution requirements are established under C.R.S. § 24-51-401, et seq. and§ 24-51-413. Employee contribution rates for the period of January 1, 2023 through December 31, 2023 are summarized in the table below: January 1, 2023 Through June 30, 2023 July 1, 2023 Through December 31, 2023 Employee contribution 9.00%9.00% **Contribution rates for the LGDTF are expressed as a percentage of salary as defined in C.R.S. § 24-51-101(42). 61 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 9. Defined Benefit Pension Plan (continued) The employer contribution requirements for all employees are summarized in the table below: January 1, 2023 Through June 30, 2023 July 1, 2023 Through December 31, 2023 Employer contribution rate 11.00%11.00% Amount of employer contribution apportioned to the Health Care Trust Fund as specified in C.R.S. § 24-51- 208(1)(f) (1.02%)(1.02%) Amount apportioned to the LGDTF 9.98%9.98% Amortization Equalization Disbursement (AED) as specified in C.R.S. § 24- 51-411 2.20%2.20% Supplemental Amortization Equalization Disbursement (SAED) as specified in C.R.S. § 24-51-411 1.50%1.50% Defined Contribution Supplement as specified in C.R.S. § 24-51-415 0.06%0.06% Total employer contribution rate to the LGDTF 13.74%13.74% *Rates are expressed as a percentage of salary as defined in C.R.S. § 24-51-101(42). Employer contributions are recognized by the LGDTF in the period in which the compensation becomes payable to the member and the Town is statutorily committed to pay the contributions to the LGDTF. Employer contributions recognized by the LGDTF from the Town were $1,487,116 for the year ended December 31, 2023. 62 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 9. Defined Benefit Pension Plan (continued) Employer contributions are recognized by the LGDTF in the period in which the compensation becomes payable to the member and the Town is statutorily committed to pay the contributions to the LGDTF. Employer contributions recognized by the LGDTF from the Town and the discretely presented component units for the year ended December 31, 2023 were as follows: Contributions Primary Government Governmental Activities $ 759,172 Power and Communications Fund 507,404 Water Fund 202,540 Total primary government $ 1,487,116 Discretely Presented Component Units $ 125,278 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2023, the Town and the discretely presented component units reported a net pension liability as follows: Net Pension Liability Primary Government Governmental Activities $ 5,863,302 Power and Communications Fund 4,082,327 Water Fund 1,748,236 Total primary government $ 11,693,864 Discretely Presented Component Units $ 1,569,763 The net pension liability for the LGDTF was measured as of December 31, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2021. Standard update procedures were used to roll- forward the total pension liability to December 31, 2022. The Town’s proportion of the net pension liability was based on The Town contributions to the LGDTF for the calendar year 2022 relative to the total contributions of participating employers to the LGDTF. For the plan year end, the proportionate share of the net pension liability is as follows: December 31, 2023 December 31, 2022 Change Primary Government Governmental Activities 0.585% 0.624% (0.039)% Power and Communications Fund 0.407% 0.407% 0.000% Water Fund 0.174% 0.181% (0.007)% Total primary government 1.166% 1.212% 0.015% 63 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 9. Defined Benefit Pension Plan (continued) For the year ended December 31, 2023, the Town and the discretely presented component units reported pension expense as follows: Pension Expense Primary Government Governmental Activities $ 480,212 Power and Communications Fund 320,957 Water Fund 139,501 Total primary government $ 940,670 Component Unit – Visit Estes Park $ 105,183 Component Unit – EPHA $ 31,374 At December 31, 2023, the Town and the discretely presented component units reported deferred outflows of resources from the following: Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred outflows of resources: Differences between projected and actual earnings on pension plan investments 2,437,123$ 1,628,886$ 707,983$ 4,773,992$ Town contributions subsequent to measurement date 759,172 507,404 220,540 1,487,116 Total deferred outflows of resources 3,196,295$ 2,136,290$ 928,523$ 6,261,108$ Visit Estes Park Estes Park Housing Authority Deferred outflows of resources: Differences between projected and actual earnings on pension plan investments 449,251$ 191,602$ Changes in proportion and differences between contributions and proportionate share of contributions 23,387 - Contributions subsequent to measurement date 125,278 - Total deferred outflows of resources 597,916$ 191,602$ 64 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 9. Defined Benefit Pension Plan (continued) At December 31, 2023, the Town and its discretely presented component units reported deferred inflows of resources from the following sources: Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred inflows of resources: Changes in proportion and differences between contributions and proportionate share of contributions 70,356$ 48,985$ 20,978$ 140,319$ Differences between expected and actual experience 29,230 20,351 8,716 58,297 Total deferred inflows of resources 99,586$ 69,336$ 29,694$ 198,616$ Component unit Visit Estes Park Estes Park Housing Authority Deferred inflows of resources: Differences between expected and actual experience 5,486$ 2,340$ Total deferred inflows of resources 5,486$ 2,340$ The amounts above reported in governmental activities, Power and Communications Fund, the Water Fund and the discretely presented component units deferred outflow of resources related to pensions, resulting from contributions made subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Within the governmental funds, the general fund is typically used to liquidate pension liabilities. Other amounts related to pensions will be recognized in pension expense as follows: Primary Government Governmental Activities Power and Communications Fund Water Fund Total 2024 (329,933)$ (220,124)$ (95,738)$ (645,795)$ 2025 345,581 230,564 100,278 676,423 2026 892,793 595,651 259,064 1,747,507 2027 1,429,096 953,460 414,685 2,797,241 Total 2,337,537$ 1,559,551$ 678,290$ 4,575,377$ 65 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 9. Defined Benefit Pension Plan (continued) Component Unit Visit Estes Park Estes Park Housing Authority 2024 (31,753)$ 29,387$ 2025 71,226 31,395 2026 164,447 87,666 2027 263,232 40,814 Total 467,152$ 189,262$ Actuarial Assumptions - The TPL in the December 31, 2021, actuarial valuation was determined using the following actuarial cost method, actuarial assumptions, and other inputs: Actuarial Cost Method Entry Age Price Inflation 2.30% Real Wage Growth 0.70% Wage Inflation 3.00% Salary Increases, Including Wage Inflation 3.20 – 11.30% Long-Term Investment Rate of Return, Net of Pension Plan Investment Expenses, Including Price Inflation 7.25% Discount Rate 7.25% PERA Benefit Structure Hire Prior to January 1, 2007 and DPS Benefit Structure (Automatic) 1.00% PERA Benefit Structure Hire After December 31, 2006 (Ad Hoc, Substantively Automatic) Finance by the Annual Increase Reserve Post-retirement benefit increases are provided by the AIR, accounted separately within each Division Trust Fund, and subject to moneys being available; therefore, liabilities related to increases for members of these benefit tiers can never exceed available assets. The TPL for the LGDTF, as of the December 31, 2022, measurement date, was adjusted to reflect the disaffiliation, as allowable under C.R.S. § 24-51-313, of Tri-County Health Department (Tri-County Health), effective December 31, 2022. As of the close of the 2022 fiscal year, no disaffiliation payment associated with Tri-County Health was received, and therefore no disaffiliation dollars were reflected in the FNP as of the December 31, 2022, measurement date. 66 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 9. Defined Benefit Pension Plan (continued) The mortality tables described below are generational mortality tables developed on a benefit-weighted basis. Pre-retirement mortality assumptions for members other than State Troopers were based upon the PubG-2010 Employee Table with generational projection using scale MP-2019. Post-retirement non-disabled mortality assumptions for members other than State Troopers were based upon the PubG-2010 Healthy Retiree Table, adjusted as follows: •Males: 94% of the rates prior to age 80 and 90% of the rates for ages 80 and older, with generational projection using scale MP-2019. •Females: 87% of the rates prior to age 80 and 107% of the rates for ages 80 and older, with generational projection using scale MP-2019. Post-retirement non-disabled beneficiary mortality assumptions were based upon the Pub-2010 Contingent Survivor Table, adjusted as follows: •Males: 97% of the rates for all ages, with generational projection using scale MP-2019. •Females: 105% of the rates for all ages, with generational projection using scale MP-2019. Disabled mortality assumptions for members other than State Troopers were based upon the PubNS- 2010 Disabled Retiree Table using 99% of the rates for all ages with generational projection using scale MP-2019. The actuarial assumptions used in the December 31, 2021, valuation were based on the results of the 2020 experience analysis for the period January 1, 2016, through December 31, 2019, and were reviewed and adopted by the PERA Board at their November 20, 2020, meeting. The long-term expected return on plan assets is reviewed as part of regular experience studies prepared at least every five years for PERA. The most recent analyses were outlined in the Experience Study report dated October 28, 2020. Several factors are considered in evaluating the long-term rate of return assumption, including long- term historical data, estimates inherent in current market data, and a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected return, net of investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long- term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentages and then adding expected inflation. The PERA Board first adopted the 7.25% long-term expected rate of return as of November 18, 2016. Following an asset/liability study, the Board reaffirmed the assumed rate of return at the Board's November 15, 2019, meeting, to be effective January 1, 2020. As of the most recent reaffirmation of the long-term rate of return, the target asset allocation, and best estimates of geometric real rates of return for each major asset class are summarized in the table as follows: 67 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 9. Defined Benefit Pension Plan (continued) Asset Class Target Allocation 30-Year Expected Geometric Real Rate of Return Global Equity 54.00% 5.60% Fixed Income 23.00 1.30 Private Equity 8.50 7.10 Real Estate 8.50 4.40 Alternatives 6.00 4.70 Total 100.00 In setting the long-term expected rate of return, projections employed to model future returns provide a range of expected long-term returns that, including expected inflation, ultimately support a long-term expected rate of return assumption of 7.25%. Discount Rate- The discount rate used to measure the TPL was 7.25%. The projection of cash flows used to determine the discount rate applied the actuarial cost method and assumptions shown above. In addition, the following methods and assumptions were used in the projection of cash flows: Total covered payroll for the initial projection year consists of the covered payroll of the active membership present on the valuation date and the covered payroll of future plan members assumed to be hired during the year. In subsequent projection years, total covered payroll was assumed to increase annually at a rate of 3.00%. Employee contributions were assumed to be made at the member contribution rates in effect for each year, including the required adjustments resulting from the 2018 and 2020 AAP assessments. Employee contributions for future plan members were used to reduce the estimated amount of total service costs for future plan members. Employer contributions were assumed to be made at rates equal to the fixed statutory rates specified in law for each year, including the required adjustments resulting from the 2018 AAP assessment, and the additional 0.50% resulting from the 2020 AAP assessment, statutorily recognized July 1, 2021, and effective July 1, 2022. Employer contributions also include current and estimated future AED and SAED, until the actuarial value funding ratio reaches 103%, at which point the AED and SAED will each drop 0.50% every year until they are zero. Additionally, estimated employer contributions reflect reductions for the funding of the AIR and retiree health care benefits. For future plan members, employer contributions were further reduced by the estimated amount of total service costs for future plan members not financed by their member contributions. • Employer contributions and the amount of total service costs for future plan members were based upon a process to estimate future actuarially determined contributions assuming an analogous future plan member growth rate. 68 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 9. Defined Benefit Pension Plan (continued) •The AIR balance was excluded from the initial FNP, as, per statute, AIR amounts cannot be used to pay benefits until transferred to either the retirement benefits reserve or the survivor benefits reserve, as appropriate. AIR transfers to the FNP and the subsequent AIR benefit payments were estimated and included in the projections. •Benefit payments and contributions were assumed to be made at the middle of the year. Based on the above assumptions and methods, the LGDTF’s FNP was projected to be available to make all projected future benefit payments of current members. Therefore, the long-term expected rate of return of 7.25% on pension plan investments was applied to all periods of projected benefit payments to determine the TPL. The discount rate determination does not use the municipal bond index rate, and therefore, the discount rate is 7.25%. There was no change in the discount rate from the prior measurement date. Sensitivity of the Town’s proportionate share of the net pension liability to changes in the discount rate- The following presents the proportionate share of the net pension liability calculated using the discount rate of 7.25 percent, as well as what the proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25 percent) or 1-percentage-point higher (8.25 percent) than the current rate: 1% Decrease (6.25%) Current 1% Increase (8.25%) Primary government 19,631,055$ 11,693,864$ 5,049,122$ Component units: Visit Estes Park 1,847,356$ 1,100,436$ 475,141$ Estes Park Housing Authority 787,882$ 469,327$ 202,644$ Pension plan fiduciary net position. Detailed information about the LGDTF's fiduciary net position is available in PERA's annual comprehensive financial report which can be obtained at www.copera.org/investments/pera-financial-reports. 10. Defined Contribution Plan Management Employees and Police Money Purchase Pension Plans The Town contributes to a single employer defined contribution money purchase pension plan on behalf of management employees and to a similar plan for police officers. The contribution requirements of Plan participants and the Town are established and may be amended by the Town's Board of Trustees. Management Employees Plan - Management employees are eligible to participate in the Plan. The Plan is administered by the International Town/County Management Association (ICMA). The Town is required to contribute 13.7% of each participant's covered salary to the Plan, and employees must contribute 8% of covered salary. During the year ended December 31, 2023, the Town and employee contributions were $94,175 and $57,428, respectively, equal to the required contributions. 69 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 10. Defined Contribution Plan (continued) Police Plan - All sworn police employees shall be eligible to participate in the Plan administered by ICMA. The Town is required to contribute 13.7% of each participating employee 's covered salary, and each employee must contribute 8% of covered salary. During the year ended December 31, 2023, the Town and employee contributions were $383,490 and $233,856, respectively, equal to the required contributions. 11. Post-Employment Healthcare Benefits OPEB Liabilities, and Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2023, the Town and its discretely presented component units reported the following amounts related to other post-employment retirement benefits. These plans are described in further detail in the following notes. HCTF RMIP Total HCTF RMIP Total HCTF RMIP Total Primary Government Governmental Activities $385,683 277,490$ 663,173$ $ 101,263 56,386$ 157,649$ 135,838$ 59,011$ 194,849$ Power and Communications Fund 257,777 126,686 384,463 67,681 18,976 86,657 90,789 26,941 117,730 Water Fund 112,042 57,845 169,887 29,413 8,665 38,078 39,460 12,301 51,761 Total primary government $755,502 $ 462,021 $1,217,523 $ 198,357 $ 84,027 $ 282,384 $ 266,087 $ 98,253 $ 364,340 Component Units Visit Estes Park 72,382$ -$ 72,382$ 37,863$ -$ 37,863$ 25,493$ -$ 25,493$ Estes Park Housing Authority 30,828$ -$ 30,828$ 2,382$ -$ 2,382$ 10,858$ -$ 10,858$ Net OPEB Liability Deferred Outflows of Resources Deferred Inflows of Resources Multiple-Employer Defined Benefit Plan Plan Description - The Town of Estes Park participates in the Health Care Trust Fund (HCTF), a cost-sharing multiple-employer defined benefit OPEB fund administered by the Public Employees’ Retirement Association of Colorado (“PERA”). The net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, OPEB expense, information about the fiduciary net position (FNP) and additions to/deductions from the FNP of the HCTF have been determined using the economic resources measurement focus and the accrual basis of accounting. For this purpose, benefits paid on behalf of health care participants are recognized when due and/or payable in accordance with the benefit terms. Investments are reported at fair value. Benefits provided. The HCTF provides a health care premium subsidy to eligible participating PERA benefit recipients and retirees who choose to enroll in one of the PERA health care plans, however, the subsidy is not available if only enrolled in the dental and/or vision plan(s). The health care premium subsidy is based upon the benefit structure under which the member retires and the member's years of service credit. For members who retire having service credit with employers in the Denver Public Schools (DPS) Division and one or more of the other four Divisions (State, School, Local Government and Judicial), the premium subsidy is allocated between the HCTF and the Denver Public Schools Health Care Trust Fund (DPS HCTF). 70 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) The basis for the amount of the premium subsidy funded by each trust fund is the percentage of the member contribution account balance from each division as it relates to the total member contribution account balance from which the retirement benefit is paid. C.R.S. § 24-51-1202 et seq. specifies the eligibility for enrollment in the health care plans offered by PERA and the amount of the premium subsidy. The law governing a benefit recipient's eligibility for the subsidy and the amount of the subsidy differs slightly depending under which benefit structure the benefits are calculated. All benefit recipients under the PERA benefit structure and all retirees under the DPS benefit structure are eligible for a premium subsidy, if enrolled in a health care plan under PERACare. Upon the death of a DPS benefit structure retiree, no further subsidy is paid. Enrollment in the PERACare is voluntary and is available to benefit recipients and their eligible dependents, certain surviving spouses, and divorced spouses and guardians, among others. Eligible benefit recipients may enroll into the program upon retirement, upon the occurrence of certain life events, or on an annual basis during an open enrollment period. PERA Benefit Structure. The maximum service-based premium subsidy is $230 per month for benefit recipients who are under 65 years of age and who are not entitled to Medicare; the maximum service-based subsidy is $115 per month for benefit recipients who are 65 years of age or older or who are under 65 years of age and entitled to Medicare. The basis for the maximum service-based subsidy, in each case, is for benefit recipients with retirement benefits based on 20 or more years of service credit. There is a 5 percent reduction in the subsidy for each year less than 20. The benefit recipient pays the remaining portion of the premium to the extent the subsidy does not cover the entire amount. For benefit recipients who have not participated in Social Security and who are not otherwise eligible for premium-free Medicare Part A for hospital-related services, C.R.S. § 24-51- 1206(4) provides an additional subsidy. According to the statute, PERA cannot charge premiums to benefit recipients without Medicare Part A that are greater than premiums charged to benefit recipients with Part A for the same plan option, coverage level, and service credit. Currently, for each individual PERACare enrollee, the total premium for Medicare coverage is determined assuming plan participants have both Medicare Part A and Part Sand the difference in premium cost is paid by the HCTF or the DPS HCTF on behalf of benefit recipients not covered by Medicare Part A. Contributions. Pursuant to Title 24, Article 51, Section 208(1)(f) of the C.R.S., as amended, certain contributions are apportioned to the HCTF. PERA-affiliated employers of the State, School, Local Government, and Judicial Divisions are required to contribute at a rate of 1.02 percent of PERA- includable salary into the HCTF. Employer contributions are recognized by the HCTF in the period in which the compensation becomes payable to the member and the Town is statutorily committed to pay the contributions. Employer contributions recognized by the HCTF from the Town were $106,516 for the year ended December 31, 2023. 71 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At December 31, 2023, the Town and its discretely presented component units reported a net OPEB liability as follows: Net OPEB Liability Primary Government Governmental Activities $ 385,683 Power and Communications Fund 257,777 Water Fund 112,042 Total primary government $ 755,502 Component Unit – Visit Estes Park $ 72,382 Component Unit – EPHA $ 30,828 The net OPEB liability for the HCTF was measured as of December 31, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2021. Standard update procedures were used to roll-forward the total OPEB liability to December 31, 2022. The Town's proportion of the net OPEB liability was based on the Town's contributions to the HCTF for the calendar year 2022 relative to the total contributions of participating employers to the HCTF. At December 31, 2022, the Town's proportion was 0.0925 percent, which was a decrease of 0.0004 percent from its proportion measured as of December 31, 2021. For the year ended December 31, 2023, the Town recognized OPEB expense of $12,829. Visit Estes Park recognized OPEB expense of $7,519, and EPHA recognized an OPEB benefit of $5,222. At December 31, 2023, the Town and its discretely presented component units reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 72 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred outflows of resources: Changes in proportion and differences between Town contributions and proportionate share of contributions 17,081$ 11,416$ 4,962$ 33,459$ Differences between expected and actual experience 50 33 15 98 Changes in assumptions or other inputs 6,198 4,143 1,801 12,142 Differences between projected and actual earnings on plan investments 23,557 15,746 6,839 46,142 Town contributions subsequent to measurement date 54,377 36,343 15,796 106,516 Total deferred outflows of resources 101,263$ 67,681$ 29,413$ 198,357$ Component unit Visit Estes Park Estes Park Housing Authority Deferred outflows of resources: Changes in proportion and differences between contributions and proportionate share of contributions 22,970$ -$ Differences between expected and actual experience 9 4 Changes in assumptions or other inputs 1,163 495 Net differences between projected and actual earnings on plan investments 4,421 1,883 Contributions subsequent to measurement date 9,300 - Total deferred outflows of resources 37,863$ 2,382$ 73 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred inflows of resources: Changes in assumptions or other inputs 42,567 28,450 12,365 83,382 Differences between expected and actual experience 93,271 62,339 27,095 182,705 Total deferred inflows of resources 135,838$ 90,789$ 39,460$ 266,087$ Component unit Visit Estes Park Estes Park Housing Authority Deferred inflows of resources: Changes in assumptions or other inputs 7,989 3,403 Differences between expected and actual experience 17,504 7,455 Total deferred inflows of resources 25,493$ 10,858$ The $106,516 in contribution reported in governmental activities, Power and Communications Fund, the Water Fund and Visit Estes Park as deferred outflow of resources related to OPEB, resulting from contributions made subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability in the year ended December 31, 2024. Within governmental activities, the general fund is typically used to liquidate OPEB liabilities. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: 74 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) Primary Government Governmental Activities Power and Communications Fund Water Fund Total 2024 (32,852)$ (21,957)$ (9,543)$ (64,353)$ 2025 (31,266)$ (20,897)$ (9,083)$ (61,246) 2026 (12,837)$ (8,580)$ (3,729)$ (25,147) 2027 243$ 162$ 71$ 476 2028 (9,862)$ (6,591)$ (2,865)$ (19,319) Thereafter (2,376)$ (1,588)$ (690)$ (4,655) Total (88,952)$ (59,452)$ (25,840)$ (174,243)$ Component Unit Visit Estes Park Estes Park Housing Authority 2024 1,416$ (1,979)$ 2025 2,565 (1,823) 2026 (1,944) (2,027) 2027 1,367 (1,885) 2028 (275) (715) Thereafter (59)(47) Total 3,070$ (8,476)$ Actuarial assumptions. The total OPEB liability in the December 31, 2021 actuarial valuation was determined using the following actuarial cost method, actuarial assumptions and other inputs: Actuarial cost method Entry age Price inflation 2.30 percent Real wage growth 0.70 percent Wage inflation 3.00 percent Salary increases, including wage inflation 3.20 – 11.30 percent Long-term investment rate of return, net of OPEB plan investment expenses, including price inflation 7.25 percent Discount rate 7.25 percent Health care cost trend rates PERA benefit structure: Service-based premium subsidy PERACare Medicare plans Medicare Part A premiums 0.00 percent 6.50 percent in 2026, gradually decreasing to 4.50 percent in 2030. 3.75 percent in 2022, gradually rising to 4.50 percent in 2029 75 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) The TOL for the HCTF, as of the December 31, 2022, measurement date, was adjusted to reflect the disaffiliation, allowable under C.R.S. § 24-51-313, of Tri-County Health Department (TriCounty Health), effective December 31, 2022. As of the close of the 2022 fiscal year, no disaffiliation payment associated with Tri-County Health was received, and therefore no disaffiliation dollars were reflected in the FNP as of the December 31, 2022, measurement date. Beginning January 1, 2022, the per capita health care costs are developed by plan option; based on 2022 premium rates for the UnitedHealthcare Medicare Advantage Prescription Drug (MAPD) PPO plan #1, the UnitedHealthcare MAPD PPO plan #2, and the Kaiser Permanente MAPD HMO plan. Actuarial morbidity factors are then applied to estimate individual retiree and spouse costs by age, gender, and health care cost trend. This approach applies for all members and is adjusted accordingly for those not eligible for premium-free Medicare Part A for the PERA benefit structure. Age-Related Morbidity Assumptions Participant Age Annual Increase (Male) Annual Increase (Female) 65-69 3.0% 1.5% 70 2.9% 1.6% 71 1.6% 1.4% 72 1.4% 1.5% 73 1.5% 1.6% 74 1.5% 1.5% 75 1.5% 1.4% 76 1.5% 1.5% 77 1.5% 1.5% 78 1.5% 1.6% 79 1.5% 1.5% 80 1.4% 1.5% 81 and older 0.0% 0.0% Sample Age MAPD PPO #1 with Medicare Part A MAPD PPO #2 with Medicare Part A MAPD HMO (Kaiser) with Medicare Part A Retiree/Spouse Retiree/Spouse Retiree/Spouse Male Female Male Female Male Female 65 $1,704 $1,450 $583 $496 $1,923 $1,634 70 $1,976 $1,561 $676 $534 $2,229 $1,761 75 $2,128 $1,681 $728 $575 $2,401 $1,896 76 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) Sample Age MAPD PPO #1 without Medicare Part A MAPD PPO #2 without Medicare Part A MAPD HMO (Kaiser) without Medicare Part A Retiree/Spouse Retiree/Spouse Retiree/Spouse Male Female Male Female Male Female 65 $6,514 $5,542 $4,227 $3,596 $6,752 $5,739 70 $7,553 $5,966 $4,901 $3,872 $7,826 $6,185 75 $8,134 $6,425 $5,278 $4,169 $8,433 $6,657 The 2022 Medicare Part A premium is $499 (actual dollars) per month. All costs are subject to the health care cost trend rates, as discussed below. Health care cost trend rates reflect the change in per capita health costs over time due to factors such as medical inflation, utilization, plan design, and technology improvements. For the PERA benefit structure, health care cost trend rates are needed to project the future costs associated with providing benefits to those PERACare enrollees not eligible for premium-free Medicare Part A. Health care cost trend rates for the PERA benefit structure are based on published annual health care inflation surveys in conjunction with actual plan experience (if credible), building block models and industry methods developed by health plan actuaries and administrators. In addition, projected trends for the Federal Hospital Insurance Trust Fund (Medicare Part A premiums) provided by the Centers for Medicare & Medicaid Services are referenced in the development of these rates. Effective December 31, 2020, the health care cost trend rates for Medicare Part A premiums were revised to reflect the current expectation of future increases in rates of inflation applicable to Medicare Part A premiums. The PERA benefit structure health care cost trend rates that were used to measure the total OPEB liability are summarized in the table below: 77 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) Year PERACare Medicare Plans Medicare Part A Premiums 2022 6.50%3.75% 2023 6.25%4.00% 2024 6.00%4.00% 2025 5.75%4.00% 2026 5.50%4.25% 2027 5.25%4.25% 2028 5.00%4.25% 2029 4.75%4.50% 2030+ 4.50%4.50% Mortality assumptions used in the December 31, 2021, valuation for the State Division, School Division, Local Government Division, and Judicial Division Trust Funds as shown below, reflect generational mortality and were applied, as applicable, in the December 31, 2020, valuation for the Trust Fund, but developed on a headcount-weighted basis. Affiliated employers of these Division Trust Funds participate in the Trust Fund. Pre-retirement mortality assumptions for the State and Local Government Divisions (members other than State Troopers) were based upon the PubG-2010 Employee Table with generational projection using scale MP-2019. Post-retirement non-disabled mortality assumptions for the State and Local Government Divisions (members other than State Troopers) were based upon the PubG-2010 Healthy Retiree Table, adjusted as follows: • Males: 94% of the rates prior to age 80 and 90% of the rates for ages 80 and older, with generational projection using scale MP-2019. • Females: 87% of the rates prior to age 80 and 107% of the rates for ages 80 and older, with generational projection using scale MP-2019. Health care cost trend rates for the PERA benefit structure are based on published annual The following health care costs assumptions were updated and used in the roll-forward calculation for the HCTF: •Per capita health care costs in effect as of the December 31, 2021, valuation date for those PERACare enrollees under the PERA benefit structure who are expected to be age 65 and older and are not eligible for premium-free Medicare Part A benefits have been updated to reflect costs for the 2022 plan year. 78 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) • The December 31, 2021, valuation utilizes premium information as of January 1, 2022, as the initial per capita health care cost. As of that date, PERACare health benefits administration is performed by UnitedHealthcare. In that transition, the costs for the Medicare Advantage Option #2 decreased to a level that is lower than the maximum possible service-related subsidy as described in the plan provisions. • The health care cost trend rates applicable to health care premiums were revised to reflect the then current expectation of future increases in those premiums. Medicare Part A premiums continued with the prior valuation trend pattern. Actuarial assumptions pertaining to per capita health care costs and their related trend rates are analyzed and updated annually by the Board’s actuary, as discussed above. Effective for the December 31, 2022, measurement date, the timing of the retirement decrement was adjusted to middle-of-year within the valuation programming used to determine the TOL, reflecting a recommendation from the 2022 actuarial audit report, dated October 14, 2022, summarizing the results of the actuarial audit performed on the December 31, 2021, actuarial valuation. The actuarial assumptions used in the December 31, 2021, valuations were based on the 2020 experience analysis, for the period January 1, 2016, through December 31, 2019. Revised economic and demographic assumptions were adopted by PERA's Board on November 20, 2020. The long-term expected return on plan assets is reviewed as part of regular experience studies prepared every four to five years for PERA. Recently this assumption has been reviewed more frequently. The most recent analyses were outlined in the Experience Study report dated October 28, 2020. Several factors are considered in evaluating the long-term rate of return assumption, including long- term historical data, estimates inherent in current market data, and a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected return, net of investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentages and then adding expected inflation. As of the most recent reaffirmation of the long-term rate of return, the target asset allocation and best estimates of geometric real rates of return for each major asset class are summarized in the table as follows: 79 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) Asset Class Target Allocation 30 Year Expected Geometric Real Rate of Return Global Equity 54.00% 5.60% Fixed Income 23.00% 1.30% Private Equity 8.50% 7.10% Real Estate 8.50% 4.40% Alternatives 6.00% 4.70% Total 100.00% In setting the long-term expected rate of return, projections employed to model future returns provide a range of expected long-term returns that, including expected inflation, ultimately support a long- term expected rate of return assumption of 7.25%. Sensitivity of the Town's proportionate share of the net OPEB liability to changes in the Health Care Cost Trend Rates. The following presents the net OPEB liability using the current health care cost trend rates applicable to the PERA benefit structure, as well as if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rates: 1% Decrease in Trend Rates Current Trend Rates 1% Increase in Trend Rates PERACare Medicare trend rate 5.25% 4.50% 5.50% Ultimate PERACare Medicare 3.50% 4.50% 5.50% Initial Medicare Part A trend rate 3.00% 3.75% 4.75% Ultimate Medicare Part A trend rate 3.50% 4.50% 5.50% Town's Net OPEB liability 734,116$ 755,502$ 778,768$ Component unit net OPEB liability 70,333$ 72,382$ 74,611$ 1For the January 1, 2023, plan year. Discount rate. The discount rate used to measure the total OPEB liability was 7.25 percent. The projection of cash flows used to determine the discount rate applied the actuarial cost method and assumptions shown above. In addition, the following methods and assumptions were used in the projection of cash flows: 80 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) •Updated health care cost trend rates for Medicare Part A premiums as of the December 31, 2022, measurement date. •Total covered payroll for the initial projection year consists of the covered payroll of the active membership present on the valuation date and the covered payroll of future plan members assumed to be hired during the year. In subsequent projection years, total covered payroll was assumed to increase annually at a rate of 3.00%. •Employer contributions were assumed to be made at rates equal to the fixed statutory rates specified in law and effective as of the measurement date. •Employer contributions and the amount of total service costs for future plan members were based upon a process to estimate future actuarily determined contributions assuming an analogous future plan member growth rate. •Estimated transfers of dollars into the Trust Fund representing a portion of purchase service agreements intended to cover the costs associated with OPEB benefits. •Benefit payments and contributions were assumed to be made at the middle of the year. Based on the above assumptions and methods, the projection test indicates the HCTF's fiduciary net position was projected to make all projected future benefit payments of current members. Therefore, the long-term expected rate of return of 7.25 percent on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. The discount rate determination does not use the municipal bond index rate, and therefore, the discount rate is 7.25 percent. Sensitivity of the Town's proportionate share of the net OPEB liability to changes in the discount rate. The following presents the proportionate share of the net OPEB liability calculated using the discount rate of 7.25 percent, as well as what the proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage- point lower (6.25 percent) or 1- percentage-point higher (8.25 percent) than the current rate: 1% Decrease (6.25%) Current 1% Increase (8.25%) Primary government 875,849$ 755,502$ 652,564$ Component unit Visit Estes Park 81,912$ 72,382$ 62,520$ Estes Park Housing Authority 35,738$ 30,828$ 26,627$ 81 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) OPEB plan fiduciary net position. Detailed information about the HCTF's fiduciary net position is available in PERA's annual comprehensive financial report which can be obtained at www.copera.org/investments/pera-financial-reports. Single-Employer Defined Benefit Plan Plan Description - The Town has established the Retiree Medical Insurance Plan (the "RMIP"), single-employer defined benefit OPEB plan which provides benefits to employees with at least 15 years of service with the Town, and who have reached at least 60 years of age. These benefits expire when the retiree reaches the age of 65. The authority to establish and amend benefit provisions rests with the Town's Board of Trustees. The Town does not issue a stand-alone financial report for the plan. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Benefits provided. The Town of Estes Park, through the RMIP, pays 90% of the premium for single coverage only. Spouses are not eligible for coverage under the plan. Employees covered by benefit terms. At January 1, 2022 the following employees were covered by the benefit terms: Active employees 69 Retired members 1 Total 70 Total OPEB Liability The Town's total OPEB liability of $462,021 was measured as of December 31, 2022 was determined by an actuarial valuation as of January 1, 2022. Actuarial assumptions and other inputs. The total OPEB liability in the January 1, 2022 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Actuarial cost method Entry Age Normal Price inflation 2.30 percent Salary increases, including wage inflation 3.00 percent Discount rate 3.72 percent The discount rate was based on the Bond Buyers General Obligation 20-Bond Municipal Bond Index. 82 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) Mortality rates were based on the following: •Pre-retirement: Sex-distinct Pub-2010 General Employee Mortality Tables adjusted to reflect Mortality Improvement Scale MP-2021 from the 2010 base year, and projected forward using MP-2021 on a generational basis. •Post-retirement: Sex-distinct Pub-2010 General Healthy Retiree Mortality Tables adjusted to reflect Mortality Improvement Scale MP-2021 from the 2010 base year, and projected forward using MP-2021 on a generational basis. The actuarial assumptions used in the January 1, 2022 valuation were based on a prior study on retirement used by a pension plan covering a population similar to that of the Town's current active employees. Actual experience is annually compared to that expected to ensure the assumed retirement rates continue to be reasonable. Changes in the Total OPEB Liability: Total OPEB Liability Balance at December 31, 2022 509,398$ Changes for the year: Service cost 21,601 Interest on total OPEB liability 10,664 Effect of assumptions changes or inputs (52,850) Benefit payments (26,792) Balance at December 31, 2023 462,021$ Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total OPEB liability of the Town, as well as what the County's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1- percentage-point higher than the current discount rate: 1% Decrease (2.72%)Current 1% Increase (4.72%) Primary government 492,861$ 462,021$ 434,012$ Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the Town, as well as what the Town's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage- point lower or 1-percentage-point higher than the current healthcare cost trend rates: 83 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) 1% Decrease Current Trend Rate 1% Increase Primary government 423,797$ 462,021$ 506,326$ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2023, the Town recognized OPEB expense of $41,709. At December 31, 2023, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred outflows of resources: Differences between expected and actual experience 14,885$ 6,795$ 3,103$ 24,783$ Changes of assumptions 26,680 12,181 5,562 44,423 Town contributions subsequent to measurement date 14,821 - -14,821 Total deferred outflows of resources 56,386$ 18,976$ 8,665$ 84,027$ Primary Government Governmental Activities Power and Communications Fund Water Fund Total Deferred inflows of resources: Changes of assumptions 59,011$ 26,941$ 12,301$ 98,253$ Total deferred inflows of resources 59,011$ 26,941$ 12,301$ 98,253$ The above amounts reported in governmental activities, Power and Communications Fund and the Water Fund for the primary government as deferred outflow of resources related to OPEB, resulting from contributions made subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability in the year ended December 31, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: 84 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 11. Post-Employment Healthcare Benefits (continued) Primary Government Amortization 2024 (5,377)$ 2025 (5,377) 2026 (5,377) 2027 (6,686) 2028 (2,703) Thereafter (3,527) Total (29,047)$ 12. Self-Funded Health Insurance Effective January 1, 2012, the Town established a self-insurance plan related to medical insurance for Town employees. The Town administers the plan; however, the Town utilizes a third-party service provider in the administration of the plan. Excess insurance coverage is maintained for claims greater than $60,000 to limit the loss of any individual claim. The plan assesses other funds for estimates of current claims based on historical claims. The estimated claim liability of $569,679 as of December 31, 2023, represents an estimate of incurred but not reported claims. This plan is an internal service fund. 13. Commitments and Contingencies TABOR Amendment Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending limitations, and other specific requirements of state and local government. In November 2000, voters within the Town authorized the Town to collect and retain all revenue in excess of the revenue limitations of the Amendment , and to spend all such revenues by transferring said revenues into the Community Reinvestment Fund for the purpose of acquisition, maintenance, repair and replacement of capital assets . In November 2008, voters within Visit Estes Park authorized Visit Estes Park to levy a 2% marketing and promotion tax, and to collect, keep and spend all revenues received in 2009 and each year thereafter without limitation. In 2022, voters approved Ballot measure 6E allowing for an additional 3.5% tax to be levied, in support of workforce housing and childcare initiatives. Most of these funds are passed through to the Town of Estes Park. The Town and Visit Estes Park have established emergency reserves, representing 3% of qualifying revenues, as required by the Amendment. At December 31, 2023, the emergency reserves of $801,841 and $130,784 respectively, were reported as restricted net position. In addition, the Town's emergency reserve was reported as restricted fund balance in the General Fund. 85 Town of Estes Park Notes to Financial Statements (continued) December 31, 2023 13. Commitments and Contingencies (continued) Claims and Judgements The Town is involved in various threatened and pending litigation. The outcome of this litigation cannot to be determined at this time. The Town participates in a number of federal, state, and local programs that are fully or partially funded by grants received from other governmental entities. Expenses financed by grants are subject to audit by the appropriate grantor government. If expenses are disallowed due to noncompliance with grant program regulations, the Town may be required to reimburse the grantor government. At December 31, 2023, significant amounts of grant expenses have not been audited but management believes that subsequent audits will not have a material effect on the overall financial position of the Town. 86 Town of Estes Park, Colorado Required Supplementary Information VARIANCE WITH FINAL BUDGET POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes Sales taxes 18,916,822$ 18,916,822$ 18,309,714$ (607,108)$ Property taxes 511,500 511,500 488,849 (22,651) Franchise taxes 586,354 586,354 651,095 64,741 Use taxes 335,000 335,000 426,657 91,657 Total Taxes 20,349,676 20,349,676 19,876,315 (473,361) Licenses and Permits 887,900 887,900 851,567 (36,333) Intergovernmental 453,848 631,915 555,679 (76,236) Charges for services 877,243 1,048,013 1,113,807 65,794 Fines and forfeitures 32,000 32,000 26,485 (5,515) Contributions and donations 30,000 44,000 46,039 2,039 Investment income 75,000 75,000 591,494 516,494 Miscellaneous 649,894 690,894 721,291 30,397 Total Charges for Services 3,005,885 3,409,722 3,906,362 496,640 TOTAL REVENUES 23,355,561$ 23,759,398$ 23,782,677$ 23,279$ EXPENDITURES General Government Legislative 337,248$ 338,858$ 256,588$ 82,270$ Attorney 383,737 383,737 335,213 48,524 Judicial 89,654 89,654 44,147 45,507 Town administrator 430,545 479,644 388,939 90,705 Town clerk 395,431 427,625 254,438 173,187 Financial administration 714,330 714,330 696,459 17,871 Planning division 901,164 1,026,895 606,291 420,604 Facilities 1,786,957 1,874,342 1,167,787 706,555 Outside entity funding 1,893,012 1,993,012 1,708,028 284,984 Human Resources 439,668 456,168 202,031 254,137 Workforce Housing 413,000 413,000 483 412,517 Total General Government 7,784,746 8,197,265 5,660,404 2,536,861 Public Safety Police 7,574,227 7,718,054 6,737,386 980,668 Protective inspection 672,640 736,707 579,462 157,245 Total Public Safety 8,246,867 8,454,761 7,316,848 1,137,913 Public Works Engineering 623,413 625,152 531,148 94,004 Transportation 700,291 1,040,895 906,773 134,122 Streets 1,523,983 1,569,967 1,387,592 182,375 Stormwater maintenance 519,156 509,156 222,923 286,233 Total Public Works 3,366,843 3,745,170 3,048,436 696,734 Culture and Recreation Parks and recreation 1,544,801 1,747,931 1,452,077 295,854 Visitor services 574,522 629,522 429,397 200,125 Museum 493,284 508,284 474,011 34,273 Special events 2,676,228 2,768,455 2,296,652 471,803 Total Culture and Recreation 5,288,835 5,654,192 4,652,137 1,002,055 Capital outlay - 91,000.00 78,131 12,869 Debt Service Principal - - 18,150 (18,150) Interest - - 3,910 (3,910) TOTAL EXPENDITURES 24,687,291 26,142,388 20,778,016 5,364,372 Excess (deficiency) of revenues over expenditures (1,331,730) (2,382,990) 3,004,661 5,387,651 OTHER FINANCING SOURCES AND (USES) Transfers in 1,496,809 1,686,809 1,686,808 (1) Transfers out (4,297,765) (5,712,306) (5,372,751) 339,555 TOTAL OTHER FINANCING SOURCES AND (USES)(2,800,956) (4,025,497) (3,685,943) 339,554 NET CHANGE IN FUND BALANCE (4,132,686)$ (6,408,487)$ (681,282)$ 5,727,205$ FUND BALANCES, BEGINNING OF YEAR 16,145,860 16,145,860 16,145,860 - FUND BALANCES, END OF YEAR 12,013,174$ 9,737,373$ 15,464,578$ 5,727,205 and Changes in Fund Balances—Budget and Actual For the Year Ended December 31, 2023 Town of Estes Park, Colorado General Fund Schedule of Revenues, Expenditures BUDGETED AMOUNTS 87 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes 2,835,123$ 2,835,123$ 2,742,659$ (92,464)$ Intergovernmental - 1,029,504 - (1,029,504) Investment income 10,000 10,000 202,710 192,710 TOTAL REVENUES 2,845,123 3,874,627 2,945,369 (929,258) EXPENDITURES Current: Operations and Maintenance 533,660 445,645 308,359 137,286 Personnel Services 201,749 201,749 133,400 68,349 Capital outlay 3,820,000 6,266,331 1,067,154 5,199,177 TOTAL EXPENDITURES 4,555,409 6,913,725 1,508,913 5,404,812 NET CHANGE IN FUND BALANCE (1,710,286)$ (3,039,098)$ 1,436,456$ 4,475,554$ FUND BALANCE, BEGINNING OF YEAR 3,994,314 3,994,914 3,994,914 FUND BALANCE, END OF YEAR 2,284,028$ 955,816$ 5,431,370$ Town of Estes Park, Colorado Street Improvements Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 88 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes -$ 5,375,000$ 5,309,126$ (65,874)$ TOTAL REVENUES - 5,375,000 5,309,126 (65,874) EXPENDITURES Current: Operations and Maintenance - 5,225,826 4,905,573 320,253 Personnel Services - 149,174 37,588 111,586 TOTAL EXPENDITURES - 5,375,000 4,943,161 431,839 NET CHANGE IN FUND BALANCE -$ -$ 365,965$ 365,965$ FUND BALANCE, BEGINNING OF YEAR - - - FUND BALANCE, END OF YEAR -$ -$ 365,965$ Town of Estes Park, Colorado Workforce Housing/ Childcare Lodging Tax Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 89 Colorado PERA - Pension Proportionate Proportion of Share of the Net Actual Net Pension Liability Fiduciary Net Position the Net Pension Pension Liability Member as a Percentage as a Percentage of Year Ending*Liability (Asset)Payroll of Member Payroll Total Pension Liability 12/31/2014 0.844%6,497,912$ 4,502,074$ 144.33%77.66% 12/31/2015 0.927%8,303,953$ 5,078,452$ 163.51%80.70% 12/31/2016 1.030%11,344,006$ 5,842,524 194.16%76.90% 12/31/2017 1.142%15,044,400$ 6,541,376 229.99%73.60% 12/31/2018 1.138%12,668,982$ 7,189,091 176.23%79.37% 12/31/2019 1.157%14,543,721$ 7,485,300 194.30%75.96% 12/31/2020 1.180%8,627,642$ 7,993,965 107.93%86.26% 12/31/2021 1.197%6,238,307$ 8,301,248 75.15%90.88% 12/31/2022 1.212%(1,039,346)$ 8,901,035 -11.68%101.49% 12/31/2023 1.166%1,002,563$ 9,390,182 10.68%82.99% Colorado PERA - OPEB Proportion of Proportionate Actual OPEB Liability Fiduciary Net Position the Net OPEB Share of the Net Member as a Percentage as a Percentage of Year Ending*Liability OPEB Liability Payroll of Member Payroll Total OPEB Liability 12/31/2017 0.085%1,102,634$ 6,541,376$ 16.86%16.72% 12/31/2018 0.088%1,138,541$ 7,189,091$ 15.84%17.53% 12/31/2019 0.088%1,198,408$ 7,485,300$ 16.01%17.03% 12/31/2020 0.089%999,076$ 7,993,965$ 12.50%24.49% 12/31/2021 0.089%854,999$ 8,301,248$ 10.30%32.78% 12/31/2022 0.093%801,874$ 8,901,035$ 9.01%39.40% 12/31/2023 0.093%755,500$ 9,390,182$ 8.05%38.57% Note: This schedule is intended to show information for ten years. Additional years will be displayed as they become available. Colorado PERA - Pension Actual Statutorily Actual Covered Contributions as a Required Employer Contribution Member Percentage of Year Ending Contributions Contributions Excess/(Deficiency)Payroll Covered Payroll 12/31/2013 570,863 570,863 - 4,502,074 12.68% 12/31/2014 643,712 643,712 - 5,078,452 12.68% 12/31/2015 740,832 740,832 - 5,842,524 12.68% 12/31/2016 829,447 829,447 - 6,541,376 12.68% 12/31/2017 911,577 911,577 - 7,189,091 12.68% 12/31/2018 949,136 949,136 - 7,485,300 12.68% 12/31/2019 1,013,635 1,013,635 - 7,993,965 12.68% 12/31/2020 1,073,351 1,073,351 - 8,301,248 12.93% 12/31/2021 1,190,666 1,190,666 - 8,901,035 13.38% 12/31/2022 1,287,282 1,287,282 - 9,390,182 13.71% 12/31/2023 1,487,114 1,487,114 - 10,442,758 14.24% Colorado PERA - OPEB Actual Statutorily Actual Covered Contributions as a Required Employer Contribution Member Percentage of Year Ending Contributions Contributions Excess/(Deficiency)Payroll Covered Payroll 12/31/2016 66,722 66,722 - 6,541,376 1.02% 12/31/2017 73,329 73,329 - 7,189,091 1.02% 12/31/2018 75,765 75,765 - 7,485,300 1.01% 12/31/2019 81,470 81,470 - 7,993,965 1.02% 12/31/2020 84,672 84,672 - 8,301,248 1.02% 12/31/2021 90,791 90,791 - 8,901,035 1.02% 12/31/2022 95,780 95,780 - 9,390,182 1.02% 12/31/2023 106,516 106,516 - 10,442,758 1.02% Note: This schedule is intended to show information for ten years. Additional years will be displayed as they become available. Town of Estes Park, Colorado Retirement Plan Supplementary Information For the Year Ended December 31, 2023 Schedule of Proportionate Share of the Net Pension and OPEB Liability and Related Ratios Schedule of Employer Contributions *The data provided in this schedule is based as of the measurement date of the Town's net pension liability, which is as of the beginning of the year. The accompanying notes are an integral part of these financial statements. 90 Year Ended December 31,2023 2022 2021 2020 2019 2018 Total OPEB Liability Service Cost 21,600$ 23,808$ 20,891$ 27,201$ 30,281$ 27,609$ Interest on total OPEB liability 10,664 9,569 11,529 20,137 18,576 20,240 Differences between expected and actual experience - 23,045 - 13,372 - - Changes of assumptions or other inputs (52,850) 37,240 18,548 (76,080) (23,110) 11,799 Benefit payments (26,791) (23,506) (23,013) (73,844) (69,396) (46,251) Net change in total OPEB liability (47,377) 70,156 27,955 (89,214) (43,649) 13,397 Total OPEB liability - beginning 509,398 439,242 411,287 500,501 544,150 530,753 Total OPEB liability - ending 462,021$ 509,398$ 439,242$ 411,287$ 500,501$ 544,150$ Covered employee payroll 12,192,905$ 12,669,436$ 11,115,810$ 11,175,908$ 10,542,533$ 10,015,583$ Total OPEB liability as a percentage of covered payroll 3.79%4.02%3.95%3.68%4.75%5.43% The Town implemented GASB Statement No. 75 in 2018; therefore 10 years of data is not available. Town of Estes Park, Colorado Schedule of Changes in the Town's Total OPEB December 31, 2023 There are no assets accumulated in a trust that meets the definition of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan. Liability and Related Ratios - Retiree Medical Insurance Plan 91 Town of Estes Park, Colorado Other Supplementary Information EMERGENCY COMMUNITY TRAILS PARKING TOTAL NONMAJOR OPEN SPACE CONSERVATION RESPONSE CENTER EXPANSION SERVICES GOVERNMENTAL FUND TRUST FUND SYSTEM FUND FUND FUND FUND FUNDS ASSETS Cash and Investments 1,010,998$ 100,691$ 275,226$ 11$ 350,138$ 467,928$ 2,204,992$ Taxes receivable - - 12,734 127,344 63,672 - 203,750 Accounts receivable 3,708 92 280 - 2,882 124 7,086 Intergovernmental receivable 810,058 - - - 955,000 2,756 1,767,814 TOTAL ASSETS 1,824,764$ 100,783$ 288,240$ 127,355$ 1,371,692$ 470,808$ 4,183,642$ LIABILITIES, DEFFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable 8,068$ -$ 341$ 127,344$ 21,649$ 55,939 213,341$ Accrued liabilities 1,311 - - - 1,649 3,532 6,492 Due to other funds 310,000 - - - - - 310,000 TOTAL LIABILITIES 319,379 - 341 127,344 23,298 59,471 529,833 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 697,720 - - - 955,000 - 1,652,720 TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 1,017,099 - 341 127,344 978,298 59,471 2,182,553 FUND BALANCES Nonspendable - - - - - - - Restricted for: Parks and open space 807,665 100,783 - - - - 908,448 Capital improvements - - 287,899 11 393,394 411,337 1,092,641 TOTAL FUND BALANCES 807,665 100,783 287,899 11 393,394 411,337 2,001,089 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 1,824,764$ 100,783$ 288,240$ 127,355$ 1,371,692$ 470,808$ 4,183,642$ Town of Estes Park, Colorado Combining Balance Sheet Nonmajor Governmental Funds December 31, 2023 92 EMERGENCY COMMUNITY TRAILS PARKING TOTAL NONMAJOR OPEN SPACE CONSERVATION RESPONSE CENTER EXPANSION SERVICES GOVERNMENTAL FUND TRUST FUND SYSTEM FUND FUND FUND FUND FUNDS REVENUES Intergovernmental 631,717$ 41,494$ -$ -$ 363,706 2,756$1,039,673$ Charges for services - - - - - 808,120 808,120 Taxes - - 114,277 1,142,774 571,387 - 1,828,438 Licenses and permits - - - - - 23,130 23,130 Fines and forfeitures - - - - - 50,902 50,902 Investment earnings 78,828 1,895 4,555 - 60,596 - 145,874 TOTAL REVENUES 710,545 43,389 118,832 1,142,774 995,689 884,908 3,896,137 EXPENDITURES Current: Culture and Recreation 97,312 1,321 682 1,142,774 - - 1,242,089 Public Works - - - - 53,044 705,341 758,385 Capital Outlay 1,315,068 40,000 - - 2,210,237 - 3,565,305 Debt Service: Principal - - 41,933 - - - 41,933 Interest - - 6,610 - - - 6,610 TOTAL EXPENDITURES 1,412,380 41,321 49,225 1,142,774 2,263,281 705,341 5,614,322 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (701,835) 2,068 69,607 - (1,267,592) 179,567 (1,718,185) OTHER FINANCING USES Transfers in (out)- - - - - (190,000) (190,000) TOTAL OTHER FINANCING USES - - - - - (190,000) (190,000) NET CHANGE IN FUND BALANCE (701,835) 2,068 69,607 - (1,267,592) (10,433) (1,908,185) FUND BALANCE, BEGINNING OF YEAR 1,509,500 98,715 218,292 11 1,660,986 421,770 3,909,274 FUND BALANCE, END OF YEAR 807,665$ 100,783$ 287,899$ 11$ 393,394$ 411,337$ 2,001,089$ Town of Estes Park, Colorado Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures And Changes in Fund Balance For the Year Ended December 31, 2023 93 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental 304,000$ 2,744,116$ 17,428$ (2,726,688)$ Investment income - - 211,283 211,283 Donations - 384,500 14,544 (369,956) Miscellaneous - 5,000 - (5,000) TOTAL REVENUES 304,000 3,133,616 243,255 (2,890,361) EXPENDITURES Current Professional Services 522,000 614,726 36,978 577,748 Capital outlay 3,926,876 11,340,134 4,470,831 6,869,303 Debt Service Principal 772,766 772,766 724,997 47,769 Interest 193,499 193,499 193,497 2 TOTAL EXPENDITURES 5,415,141 12,921,125 5,426,303 7,494,822 EXCESS OF EXPENDITURES OVER REVENUES (5,111,141) (9,787,509) (5,183,048) 4,604,461 OTHER FINANCING SOURCES Transfers in 4,297,765 5,712,306 5,372,751 (339,555) Financing proceeds 313,376 365,376 - (365,376) Transfers out - - - - TOTAL OTHER FINANCING SOURCES 4,611,141 6,077,682 5,372,751 (704,931) NET CHANGE IN FUND BALANCE (500,000)$ (3,709,827)$ 189,703$ 3,899,530$ FUND BALANCE, BEGINNING OF YEAR 3,709,827 3,709,827 3,709,827 FUND BALANCE, END OF YEAR 3,209,827$ -$ 3,899,530$ Town of Estes Park, Colorado Community Reinvestment Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 94 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental 475,000$ 923,226$ 631,717$ (291,509)$ Investment income 1,000 1,000 78,828 77,828 TOTAL REVENUES 476,000 924,226 710,545 (213,681) EXPENDITURES Current Culture and Recreation 83,774 146,117 97,312 48,805 Capital outlay 68,900 1,878,122 1,315,068 563,054 TOTAL EXPENDITURES 152,674 2,024,239 1,412,380 611,859 EXCESS OF EXPENDITURES OVER REVENUES 323,326 (1,100,013) (701,835) 398,178 NET CHANGE IN FUND BALANCE 323,326$ (1,100,013)$ (701,835)$ 398,178$ FUND BALANCE, BEGINNING OF YEAR 1,509,500 1,509,500 1,509,500 FUND BALANCE, END OF YEAR 1,832,826$ 409,487$ 807,665$ Town of Estes Park, Colorado Open Space Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 95 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental 34,000$ 34,000$ 41,494$ 7,494$ Investment Income 100 100 1,895 1,795 TOTAL REVENUES 34,100 34,100 43,389 9,289 EXPENDITURES Current Culture and Recreation 24,000 24,000 1,321 22,679 Capital Outlay 40,000 59,000 40,000 19,000 TOTAL EXPENDITURES 64,000 83,000 41,321 41,679 NET CHANGE IN FUND BALANCE (29,900) (48,900) 2,068 50,968 FUND BALANCE, BEGINNING OF YEAR 98,715 98,715 98,715 FUND BALANCE, END OF YEAR 68,815$ 49,815$ 100,783$ Town of Estes Park, Colorado For the Year Ended December 31, 2023 Conservation Trust Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual 96 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes 118,130$ 118,130$ 114,277$ (3,853)$ Intergovernmental - - - - Investment income - - 4,555 4,555 TOTAL REVENUES 118,130 118,130 118,832 702 EXPENDITURES Current Culture and Recreation 16,700 16,700 682 16,018 Debt Service Principal 41,934 41,934 41,933 1 Interest 6,611 6,611 6,610 1 TOTAL EXPENDITURES 65,245 65,245 49,225 16,020 EXCESS OF EXPENDITURES OVER REVENUES 52,885 52,885 69,607 16,722 NET CHANGE IN FUND BALANCE 52,885$ 52,885$ 69,607$ 16,722$ FUND BALANCE, BEGINNING OF YEAR 218,292 218,292 218,292 FUND BALANCE, END OF YEAR 271,177$ 271,177$ 287,899$ Town of Estes Park, Colorado Emergency Response Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 97 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Taxes 1,181,301$ 1,281,301$ 1,142,774$ (138,527)$ TOTAL REVENUES 1,181,301 1,281,301 1,142,774 (138,527) EXPENDITURES Culture and Recreation 1,181,301 1,281,301 1,142,774 138,527 TOTAL EXPENDITURES 1,181,301 1,281,301 1,142,774 138,527 NET CHANGE IN FUND BALANCE -$ -$ -$ -$ FUND BALANCE, BEGINNING OF YEAR 11 11 11 FUND BALANCE, END OF YEAR 11$ 11$ 11$ Town of Estes Park, Colorado Community Center Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 98 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental -$ -$ 2,756$ 2,756$ Charges for services 775,125 775,125 808,120 32,995 Parking permits and tickets 63,000 63,000 74,032 11,032 Miscellaneous 750 750 - (750) TOTAL REVENUES 838,875 838,875 884,908 46,033 EXPENDITURES Public works 811,215 811,215 705,341 105,874 Capital outlay - 190,000 - 190,000 TOTAL EXPENDITURES 811,215 1,001,215 705,341 295,874 EXCESS OF EXPENDITURES OVER REVENUES 27,660 (162,340) 179,567 341,907 OTHER FINANCING SOURCES Transfers out - (190,000) (190,000) - TOTAL OTHER FINANCING SOURCES - (190,000) (190,000) - NET CHANGE IN FUND BALANCE 27,660$ (352,340)$ (10,433)$ 341,907$ FUND BALANCE, BEGINNING OF YEAR 421,770 FUND BALANCE, END OF YEAR 411,337$ Town of Estes Park, Colorado Parking Services Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 99 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Intergovernmental 2,000,000$ 5,617,266$ 363,706$ (5,253,560)$ Taxes 590,651 590,651 571,387 (19,264) Investment income 2,000 2,000 60,596 58,596 TOTAL REVENUES 2,592,651 6,209,917 995,689 (5,214,228) EXPENDITURES Public Works 131,550 131,550 53,044 78,506 Capital outlay 3,002,167 7,738,013 2,210,237 5,527,776 TOTAL EXPENDITURES 3,133,717 7,869,563 2,263,281 5,606,282 EXCESS OF EXPENDITURES OVER REVENUES (541,066) (1,659,646) (1,267,592) 392,054 NET CHANGE IN FUND BALANCE (541,066)$ (1,659,646)$ (1,267,592)$ 392,054$ FUND BALANCE, BEGINNING OF YEAR 1,660,986 FUND BALANCE, END OF YEAR 393,394$ Town of Estes Park, Colorado Trails Expansion Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 100 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services 21,477,400$ 21,477,400$ 24,937,494$ 3,460,094$ Intergovernmental - 3,591,361 2,698,830 (892,531) Investment income 85,000 85,000 746,376 661,376 Miscellaneous 96,000 108,600 131,087 22,487 TOTAL REVENUES 21,658,400 25,262,361 28,513,787 3,251,426 EXPENDITURES Current Source of supply 8,168,860 9,268,860 9,013,459 255,401 Distribution 5,615,171 5,829,145 3,828,220 2,000,925 Customer accounts 601,931 601,931 561,475 40,456 Administration and general 3,369,844 3,269,561 2,429,637 839,924 Broadband 1,540,165 1,549,037 1,216,412 332,625 Capital outlay 3,012,600 8,877,768 6,199,823 2,677,945 Debt Service Other 231,603 231,603 - 231,603 Principal 1,270,500 1,270,500 1,270,499 1 Interest 1,125,642 1,125,642 1,121,471 4,171 TOTAL EXPENDITURES 24,936,316 32,024,047 25,640,996 6,383,051 OTHER FINANCING SOURCES AND (USES) Transfers out (1,354,934) (1,354,934) (1,354,932) 2 TOTAL OTHER FINANCING SOURCES AND (USES)(1,354,934) (1,354,934) (1,354,932) 2 CHANGE IN NET POSITION, BUDGETARY BASIS (4,632,850)$ (8,116,620)$ 1,517,859$ 9,634,479$ ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay 6,199,823 Depreciation expense (1,605,889) Bond Premium Amortization 231,303 Debt principal payments 1,270,499 CHANGE IN NET POSITION - GAAP BASIS 7,613,595 NET POSITION, BEGINNING OF YEAR 35,082,983 NET POSITION, END OF YEAR 42,696,578$ And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 Town of Estes Park, Colorado Power and Communications Fund Schedule of Revenues, Expenditures 101 VARIANCE WITH FINAL BUDGET POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for Services $5,868,360 $5,872,532 6,423,061$ 550,529$ Other - - 86,303 86,303 Intergovernmental - 10,610,000 2,957,845 (7,652,155) Investment Income 15,000 15,000 742,362 727,362 TOTAL REVENUES 5,883,360 16,497,532 10,209,571 (6,287,961) EXPENDITURES Current Source of supply 125,000 125,000 101,682 23,318 Purification 1,282,538 1,400,735 1,148,799 251,936 Distribution 2,536,189 2,719,041 1,797,055 921,986 Customer accounts 380,372 380,372 333,911 46,461 Administration and general 1,466,134 1,629,738 1,146,884 482,854 Capital outlay 3,459,500 21,861,106 7,906,796 13,954,310 Debt service Principal 308,928 322,465 322,464 1 Interest 88,069 204,479 119,625 84,854 TOTAL EXPENDITURES 9,646,730 28,642,936 12,877,216 15,765,720 OTHER FINANCING SOURCES AND (USES) Transfers out (141,875) (141,875) (141,876) (1) Financing proceeds 0 7,675,000 710,240 (6,964,760) Tap Fee 600,000 600,000 1,137,452 537,452 TOTAL OTHER FINANCING SOURCES AND (USES)458,125 8,133,125 1,705,816 (6,427,309) CHANGE IN NET POSITION, BUDGETARY BASIS (3,305,245)$ (4,012,279)$ (961,829)$ 3,050,450$ ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay, including capitalized interest 7,906,796 Depreciation expense (948,611) Debt proceeds (710,240) Debt principal 322,464 CHANGE IN NET POSITION - GAAP BASIS 5,608,580 NET POSITION, BEGINNING OF YEAR 37,322,199 NET POSITION, END OF YEAR 42,930,779$ And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 Town of Estes Park, Colorado Water Fund Schedule of Revenues, Expenditures BUDGETED AMOUNTS 102 VARIANCE WITH FINAL BUDGET POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Impact Fees 738,090 738,090 723,890$ (14,200)$ Investment Income - - 18,699 18,699 TOTAL REVENUES 738,090 738,090 742,589 4,499 EXPENDITURES Current Operations 500,000 500,000 - 500,000 TOTAL EXPENDITURES 500,000 500,000 - 500,000 CHANGE IN NET POSITION, BUDGETARY BASIS 238,090$ 238,090$ 742,589$ 504,499$ Town of Estes Park, Colorado Workforce Housing Linkage Impact Fee Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 BUDGETED AMOUNTS 103 Fleet Vehicle Information Medical Risk Maintenance Replacement Technology Insurance Management Fund Fund Fund Fund Fund Total ASSETS Current Assets: Cash and investments 564,677$ 2,022,492$ 825,713$ 2,299,581$ 62,087$ 5,774,550$ Accounts receivable 10,839 4,080 3,344 41,224 - 59,487 Inventories 34,933 --- - 34,933 Prepaid items - - - 148,506 - 148,506 Total Current Assets 610,449 2,026,572 829,057 2,489,311 62,087 6,017,476 Non-Current Assets: Capital assets, net of accumulated depreciation 475,397 855,386 217,559 - - 1,548,342 TOTAL ASSETS 1,085,846 2,881,958 1,046,616 2,489,311 62,087 7,565,818 LIABILITIES Current Liabilities: Accounts payable 57,628 720 18,615 - 76,963 Accrued liabilities 10,275 -10,114 - - 20,389 Claims payable - --569,860 - 569,860 Compensated absences payable 22,203 - 25,332 - - 47,535 Total Current Liabilities 90,106 720 54,061 569,860 - 714,747 Non-Current Liabilities: Compensated absences payable 6,821 -5,391 - - 12,212 OPEB Liability 2,264 - 2,358 - - 4,622 Total Non-Current Liabilities 9,085 -7,749 - - 16,834 TOTAL LIABILITIES 99,191 720 61,810 569,860 - 731,581 NET POSITION Net investment in capital assets 475,397 855,386 217,559 - - 1,548,342 Unrestricted 511,258 2,025,852 767,247 1,919,451 62,087 5,285,895 TOTAL NET POSITION 986,655$ 2,881,238$ 984,806$ 1,919,451$ 62,087$ 6,834,237$ Town of Estes Park, Colorado Combining Statement of Net Position Internal Service Funds December 31, 2023 104 Fleet Vehicle Information Medical Risk Maintenance Replacement Technology Insurance Management Fund Fund Fund Fund Fund Total OPERATING REVENUES Charges for services 838,887$ 675,677$ 940,579$ 3,425,474$ 409,564$ 6,290,181$ Miscellaneous 203 - 2,831 1,896 -4,930 TOTAL OPERATING REVENUES 839,090 675,677 943,410 3,427,370 409,564 6,295,111 OPERATING EXPENSES Salaries and benefits 577,704 - 560,022 --1,137,726 Supplies 18,540 - 137,143 --155,683 Utilities 12,924 - 19,187 --32,111 Training 15,841 - 3,461 --19,302 Maintenance and repairs 32,667 - 179,666 --212,333 Professional fees 13,529 - 14,751 -5,246 33,526 Depreciation 9,411 291,353 77,995 --378,759 Medical benefits -- -3,442,203 -3,442,203 Property and liability insurance 2,360 - 5,318 - 396,829 404,507 TOTAL OPERATING EXPENSES 682,976 291,353 997,543 3,442,203 402,075 5,816,150 OPERATING INCOME (LOSS)156,114 384,324 (54,133) (14,833) 7,489 478,961 NON-OPERATING REVENUES Grant revenue 5,808 - ---5,808 Investment income 37,480 83,190 34,632 104,311 -259,613 Gain on sale of asset - 44,766 - - - 44,766 TOTAL NON-OPERATING REVENUES 43,288 127,956 34,632 104,311 - 310,187 INCOME (LOSS) BEFORE TRANSFERS 199,402 512,280 (19,501) 89,478 7,489 789,148 Transfers in - - ---- Transfers out - - - - - - CHANGE IN NET POSITION 199,402 512,280 (19,501) 89,478 7,489 789,148 NET POSITION, BEGINNING OF YEAR 787,253 2,368,958 1,004,307 1,829,973 54,598 6,045,089 NET POSITION, END OF YEAR 986,655$ 2,881,238$ 984,806$ 1,919,451$ 62,087$ 6,834,237$ Internal Service Funds Town of Estes Park, Colorado Combining Statement of Revenues, Expenditures and Changes in Fund Net Position For the Year Ended December 31, 2023 105 Fleet Vehicle Information Medical Risk Maintenance Replacement Technology Insurance Management Fund Fund Fund Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 851,297$ 672,871$ 937,986$ 3,589,946$ 409,564$ 6,461,664$ Cash received from other sources 203 - 2,831 - - 3,034 Cash paid for goods and services (75,404) (3,291) (295,457) (3,543,983) (402,508) (4,320,643) Cash paid to employees (592,693) - (560,022) - - (1,152,715) NET CASH FROM OPERATING ACTIVITIES 183,403 669,580 85,338 45,963 7,056 991,340 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in from other funds - - - - - - Transfers out - - - - - - NET CASH FROM NON-CAPITAL FINANCING ACTIVITIES - - - - - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital grants 5,808 - - - - 5,808 Proceeds from the sale of capital assets - 46,569 - - - 46,569 Acquisitions of capital assets (142,348) (274,250) (139,896) - - (556,494) NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES (136,540) (227,681) (139,896) - - (504,117) CASH FLOWS FROM INVESTING ACTIVITIES Investment income (expense)37,480 83,190 34,632 104,311 - 259,613 NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES 37,480 83,190 34,632 104,311 - 259,613 NET CHANGE IN CASH AND CASH EQUIVALENTS 84,343 525,089 (19,926) 150,274 7,056 746,836 CASH AND CASH EQUIVALENTS Beginning of Year 480,334 1,497,403 845,639 2,149,307 55,031 5,027,714 End of Year 564,677$ 2,022,492$ 825,713$ 2,299,581$ 62,087$ 5,774,550$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES Operating income (loss)156,114$ 384,324$ (54,133)$ (14,833)$ 7,489$ 478,961$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 9,411 291,353 77,995 - - 378,759 (Increase) decrease in operating assets: Accounts receivable 12,410 (2,806) (2,593) 162,576 - 169,587 Inventories (8,409) - - - - (8,409) Prepaid items - - 43,864 - - 43,864 Increase (decrease) in operating liabilities: Accounts payable 26,941 (3,291) 2,656 (101,780) (433) (75,907) Accrued liabilities 1,922 - 2,450 - - 4,372 Compensated absences payable (14,986) - 15,099 - - 113 NET CASH FROM OPERATING ACTIVITIES 183,403$ 669,580$ 85,338$ 45,963$ 7,056$ 991,340$ Town of Estes Park, Colorado Combining Statement of Cash Flows Nonmajor Internal Service Funds For the Year Ended December 31, 2023 106 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services 848,300$ 848,300$ 838,887$ (9,413)$ Intergovernmental - 534,184 5,808 (528,376) Miscellaneous - -203 203 Investment income 2,000 2,000 37,480 35,480 TOTAL REVENUES 850,300 1,384,484 882,378 (502,106) EXPENDITURES Current: Salaries and benefits 740,002 740,002 577,704 162,298 Supplies 23,250 24,750 18,540 6,210 Utilities 10,917 10,917 12,924 (2,007) Job performance expenses 26,080 24,580 15,841 8,739 Maintenance and repairs 38,866 38,866 32,667 6,199 Professional fees 12,761 12,761 13,529 (768) Property and liability insurance 3,255 3,255 2,360 895 Capital outlay - 720,035 142,347 577,688 TOTAL EXPENDITURES 855,131 1,575,166 815,912 759,254 CHANGE IN NET POSITION, BUDGETARY BASIS (4,831)$ (190,682)$ 66,466$ 257,148$ ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay 142,347 Depreciation (9,411) CHANGE IN NET POSITION - GAAP BASIS 199,402 NET POSITION, BEGINNING OF YEAR 787,253 NET POSITION, END OF YEAR 986,655$ Town of Estes Park, Colorado Fleet Maintenance Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 107 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for Services 675,677$ 675,677$ 675,677$ -$ Investment income - - 83,190 83,190 TOTAL REVENUES 675,677 675,677 758,867 83,190 EXPENDITURES Capital outlay 186,000 485,053 274,250 210,803 TOTAL EXPENDITURES 186,000 485,053 274,250 210,803 OTHER FINANCING SOURCES (USES) Transfers out - - - - Gain on sale of capital assets - - 44,766 44,766 TOTAL OTHER FINANCING SOURCES - - 44,766 44,766 CHANGE IN NET POSITION, BUDGETARY BASIS 489,677$ 190,624$ 529,383$ 338,759$ ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Depreciation (291,353) Capital outlay 274,250 CHANGE IN NET POSITION - GAAP BASIS 512,280 NET POSITION, BEGINNING OF YEAR 2,368,958 NET POSITION, END OF YEAR 2,881,238$ Town of Estes Park, Colorado Vehicle Replacement Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 108 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services 937,753$ 937,753$ 940,579$ 2,826$ Investment income - - 34,632 34,632 Miscellaneous - - 2,831 2,831 TOTAL REVENUES 937,753 937,753 978,042 40,289 EXPENDITURES Current: Salaries and benefits 720,305 720,305 560,022 160,283 Insurance Premiums 6,849 6,849 5,318 1,531 Professional Services/Fees 15,500 15,500 14,751 749 Repair and Maintenance 185,090 188,055 179,666 8,389 Materials and Supplies 117,550 121,506 137,143 (15,637) Job Performance Expenses 7,550 7,550 3,461 4,089 Utilities 25,000 25,000 19,187 5,813 Capital outlay 99,000 198,558 139,897 58,661 TOTAL EXPENDITURES 1,176,844 1,283,323 1,059,445 223,878 CHANGE IN NET POSITION, BUDGETARY BASIS (239,091)$ (345,570)$ (81,403)$ 264,167$ ADJUSTMENTS FROM BUDGETARY BASIS TO GAAP BASIS Capital outlay 139,897 Depreciation expense (77,995) CHANGE IN NET POSITION - GAAP BASIS (19,501) NET POSITION, BEGINNING OF YEAR 1,004,307 NET POSITION, END OF YEAR 984,806$ Town of Estes Park, Colorado Information Technology Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 109 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services 3,563,042$ 3,663,042$ 3,425,474$ (237,568)$ Investment income 10,000 10,000 104,311 94,311 Miscellaneous - - 1,896 1,896 TOTAL REVENUES 3,573,042 3,673,042 3,531,681 (141,361) EXPENDITURES Current: Medical expense 3,573,042 4,173,042 3,442,203 730,839 TOTAL EXPENDITURES 3,573,042 4,173,042 3,442,203 730,839 CHANGE IN NET POSITION, BUDGETARY BASIS -$ (500,000)$ 89,478$ 589,478$ NET POSITION, BEGINNING OF YEAR 1,829,973 NET POSITION, END OF YEAR 1,919,451$ And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 Town of Estes Park, Colorado Medical Insurance Fund Schedule of Revenues, Expenditures 110 VARIANCE WITH FINAL BUDGET BUDGETED AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) REVENUES Charges for services 426,450$ 426,450$ 409,564$ (16,886)$ TOTAL REVENUES 426,450 426,450 409,564 (16,886) EXPENDITURES Current: Property and liability insurance 426,450 426,450 402,075 24,375 TOTAL EXPENDITURES 426,450 426,450 402,075 24,375 CHANGE IN NET POSITION, BUDGETARY BASIS -$ -$ 7,489$ 7,489$ NET POSITION, BEGINNING OF YEAR 54,598 NET POSITION, END OF YEAR 62,087$ Town of Estes Park, Colorado Risk Management Fund Schedule of Revenues, Expenditures And Changes in Fund Balance—Budget and Actual For the Year Ended December 31, 2023 111 Form Approved The public report burden for this information collection is estimated to average 380 hours annually. OMB No. 2125-0032 City or County: Town of Estes Park, Larimer County YEAR ENDING : December 2023 This Information From The Records Of:Prepared By: Duane Hudson, Finance DirectorTown of Estes Park Phone: (970) 577-3560 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway-Federal HighwayTaxesTaxesUser Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit5. Remainder used for highway purposes AMOUNT AMOUNTA. Receipts from local sources:A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2)4,176,081 a. Motor Fuel (from Item I.A.5.)2. Maintenance:1,245,833 b. Motor Vehicle (from Item I.B.5.)3. Road and street services: c. Total (a.+b.)a. Traffic control operations 47,296 2. General fund appropriations 5,197,531 b. Snow and ice removal 215,392 3. Other local imposts (from page 2)2,809,301 c. Other 91,040 4. Miscellaneous local receipts (from page 2)214,519 d. Total (a. through c.)353,728 5. Transfers from toll facilities 0 4. General administration & miscellaneous 883,276 6. Proceeds of sale of bonds and notes:5. Highway law enforcement and safety 1,874,933 a. Bonds - Original Issues 6. Total (1 through 5)8,533,851 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.)0 a. Interest 7. Total (1 through 6)8,221,351 b. Redemption B. Private Contributions 0 c. Total (a. + b.)0C. Receipts from State government 2. Notes: (from page 2)311,955 a. InterestD. Receipts from Federal Government b. Redemption (from page 2)545 c. Total (a. + b.)0E. Total receipts (A.7 + B + C + D)8,533,851 3. Total (1.c + 2.c)0 C. Payments to State for highwaysD. Payments to toll facilitiesE. Total disbursements (A.6 + B.3 + C + D)8,533,851 Opening Debt Amount Issued Redemptions Closing DebtA. Bonds (Total)0 1. Bonds (Refunding Portion)B. Notes (Total)0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 3,994,914 8,533,851 8,533,851 5,431,370 (1,436,456)Notes and Comments: The $(1,436,456) reconciliation amount is for 2023 transactions in other funds than the Street Improvement Fund but are still subject to reporting on Form FHWA-536. FORM FHWA-536 (Rev. 06/2000) PREVIOUS EDITIONS OBSOLETE (Next Page) 1 LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS(Show all entries at par) ITEMAND STREET PURPOSES 536-2023 HUTF Report & Worksheet 112 STATE: Colorado YEAR ENDING (mm/yy):December 2023 AMOUNT AMOUNT A.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assessments 0 a. Interest on investments 202,710 b. Other local imposts:b. Traffic Fines & Penalities 0 1. Sales Taxes 2,742,659 c. Parking Garage Fees 0 2. Infrastructure & Impact Fees 0 d. Parking Meter Fees 0 3. Liens 0 e. Sale of Surplus Property 0 4. Licenses 0 f. Charges for Services 7,100 5. Specific Ownership &/or Other 66,642 g. Other Misc. Receipts 0 6. Total (1. through 5.)2,809,301 h. Other 4,709 c. Total (a. + b.)2,809,301 i. Total (a. through h.)214,519 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 284,357 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds:a. Forest Service 0 a. State bond proceeds b. FEMA 545 b. Project Match c. HUD 0 c. Motor Vehicle Registrations 27,598 d. Federal Transit Admin 0 d. Other (Operating Grant)0 e. U.S. Corps of Engineers 0 e. Other (Specify)0 f. Other Federal 0 f. Total (a. through e.)27,598 g. Total (a. through f.)545 4. Total (1. + 2. + 3.f)311,955 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a)(b)(c)A.1. Capital outlay: a. Right-Of-Way Costs 0 0 b. Engineering Costs 3,090,425 3,090,425 c. Construction: (1). New Facilities 0 0 (2). Capacity Improvements 1,085,656 1,085,656 (3). System Preservation z 0 (4). System Enhancement & Operation 0 0 (5). Total Construction (1) + (2) + (3) + (4)0 1,085,656 1,085,656 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)0 4,176,081 4,176,081 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 PREVIOUS EDITIONS OBSOLETE 2 III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM 113 Town of Estes Park, Colorado Statistical Section Contents Schedules Pages Financial Trends These schedules contain trend information to help the reader understand how the Town's financial condition has changed over time.1-4 114-118 Revenue Capacity These schedules contain information to help the reader assess the Town's largest revenue source, sales and use taxes.5-7 119-121 Debt Capacity These schedules present information to help the reader assess the affordability of the Town's current levels of outstanding debt and the Town's ability to issue debt in the future.8-11 122-125 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Town's financial activities take place.12-13 126-127 Operating Information These schedules contain service data to help the reader understand how information in the financial report relates to the services the Town provides and the activities it performs.14-16 128-131 Statistical Section This section of the Town of Estes Park Annual Comprehensive Financial Report presents detailed data as a context for understanding the information in the financial statements, note disclosures, and required supplementary information. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Governmental Activities Net Investment in capital assets 43,113,642$ 42,539,162$ 49,411,763$ 57,733,149$ 59,401,578$ 62,894,857$ 61,698,464$ 61,939,706$ 63,172,558$ 69,375,534$ Restricted 912,392 9,406,344 4,797,549 5,348,119 4,739,559 3,581,754 1,878,535 6,398,672 8,694,410 8,218,834 Unrestricted 9,808,049 5,434,320 4,165,544 1,585,920 3,587,854 6,122,258 10,800,413 12,729,796 17,973,032 22,265,031 Total governmental activities net position 53,834,083$ 57,379,826$ 58,374,856$ 64,667,188$ 67,728,991$ 72,598,869$ 74,377,412$ 81,068,174$ 89,840,000$ 99,859,399$ Business-type Activities Net Investment in capital assets 26,771,542$ 29,175,592$ 30,145,069$ 32,596,716$ 37,356,339$ 41,111,109$ 45,632,830$ 45,872,510$ 44,719,687$ 55,793,657$ Restricted 1,503,341 1,671,908 1,693,717 1,250,000 1,250,000 845,273 1,114,118 1,250,000 1,250,000 1,250,000 Unrestricted 16,679,006 12,728,316 12,717,005 13,112,576 12,019,357 15,829,836 15,071,905 18,772,625 27,724,282 30,809,492 Total business-type activities net position 44,953,889$ 43,575,816$ 44,555,791$ 46,959,292$ 50,625,696$ 57,786,218$ 61,818,853$ 65,895,135$ 73,693,969$ 87,853,149$ Primary Government Net Investment in capital assets 69,885,184$ 71,714,754$ 79,556,832$ 90,329,865$ 96,757,917$ 104,005,966$ 107,331,294$ 107,812,216$ 107,892,245$ 125,169,191$ Restricted 2,415,733 11,078,252 6,491,266 6,598,119 5,989,559 4,427,027 2,992,653 7,648,672 9,944,410 9,468,834 Unrestricted 26,487,055 18,162,636 16,882,549 14,698,496 15,607,211 21,952,094 25,872,318 31,502,421 45,697,314 53,074,523 Total primary governmental net position 98,787,972$ 100,955,642$ 102,930,647$ 111,626,480$ 118,354,687$ 130,385,087$ 136,196,265$ 146,963,309$ 163,533,969$ 187,712,548$ Source: Current and prior years' financial statements (accrual basis of accounting) As of December 31, Schedule 1 Town of Estes Park, Colorado Net Position 114 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Expenses Governmental Activities: General Government 4,660,385$ 5,280,912$ 6,229,691$ 5,847,655$ 5,101,078$ 4,944,301$ 6,130,371$ 5,209,373$ 4,684,953$ 10,492,265$ Public Safety 5,281,116 4,063,117 4,915,545 5,276,247 5,339,084 6,038,646 6,231,721 5,940,530 6,559,825 7,318,583 Public Works 2,192,522 2,736,985 2,549,174 4,284,402 2,884,866 2,109,022 3,858,918 5,993,789 6,559,015 7,547,831 Culture and Recreation 4,669,256 5,342,804 6,471,134 6,495,360 6,969,523 5,985,682 4,385,164 5,769,152 5,179,185 6,184,813 Interest on Long-Term Debt 146,875 147,226 136,216 298,651 317,206 258,959 247,402 225,820 195,654 184,638 Total governmental activities expenses 16,950,154 17,571,044 20,301,760 22,202,315 20,611,757 19,336,610 20,853,576 23,138,664 23,178,632 31,728,130 Business-type Activities: Light & Power 12,272,416 12,813,281 14,122,680 14,727,651 15,628,176 14,367,197 16,381,774 17,519,237 17,205,293 19,545,260 Water 3,614,506 3,776,050 4,083,190 4,719,776 4,937,246 3,876,141 4,335,553 4,802,481 5,428,218 5,596,567 Total business-type activities expenses 15,886,922 16,589,331 18,205,870 19,447,427 20,565,422 18,243,338 20,717,327 22,321,718 22,633,511 25,141,827 Total primary governmental expenses 32,837,076$ 34,160,375$ 38,507,630$ 41,649,742$ 41,177,179$ 37,579,948$ 41,570,903$ 45,460,382$ 45,812,143$ 56,869,957$ Program Revenues Governmental activities: Charges for services: General Government 1,151,278$ 1,013,428$ 1,243,244$ 799,158$ 779,069$ 711,282$ 291,902$ 1,284,871$ 516,608$ 547,502$ Public Safety 60,462 57,676 45,045 140,346 190,659 150,535 444,821 625,061 733,288 640,389 Public Works - - - 476,240 470,681 440,780 5,015 3,300 857,177 880,855 Culture and Recreation 581,743 518,606 517,037 647,523 596,444 246,454 3,235 497,354 789,337 805,265 Operating grants and contributions 977,593 1,500,181 1,041,897 1,776,442 38,090 18,999 103,277 213,710 483,861 209,498 Capital grants and contributions 2,142,712 5,275,791 1,616,090 7,426,948 5,213,494 1,467,471 3,070,901 2,600,273 1,493,815 4,943,284 Total governmental activities program revenues 4,913,788 8,365,682 4,463,313 11,266,657 7,288,437 3,035,521 3,919,151 5,224,569 4,874,086 8,026,793 Business-type Activities: Light & Power 13,238,766 13,639,816 13,907,893 15,287,109 16,381,233 17,863,980 19,045,222 20,433,120 22,418,799 24,937,494 Water 3,508,109 3,822,059 4,458,412 4,964,756 5,541,465 5,334,499 6,584,836 7,166,539 8,503,425 7,560,513 Workforce Housing Linkage Impact Fee - - - - - - - - - 723,890 Operating grants and contributions - - - - - - 97,309 8,374 - - Capital grants and contributions 774,133 2,049,792 789,735 1,448,452 983,621 1,147,464 24,809 - 154,132 5,656,675 Total business-type activities program revenues 17,521,008 19,511,667 19,156,040 21,700,317 22,906,319 24,345,943 25,752,176 27,608,033 31,076,356 38,878,572 Total primary government program revenues 22,434,796$ 27,877,349$ 23,619,353$ 32,966,974$ 30,194,756$ 27,381,464$ 29,671,327$ 32,832,602$ 35,950,442$ 46,905,365$ Net (Expense)/Revenue Governmental activities (12,036,366)$ (9,205,362)$ (15,838,447)$ (10,935,658)$ (13,323,320)$ (16,301,089)$ (16,934,425)$ (17,914,095)$ (18,304,546)$ (23,701,337)$ Business-type activities 1,634,086 2,922,336 950,170 2,252,890 2,340,897 6,102,605 5,034,849 5,286,315 8,442,845 13,736,745 Total primary government net expenses (10,402,280)$ (6,283,026)$ (14,888,277)$ (8,682,768)$ (10,982,423)$ (10,198,484)$ (11,899,576)$ (12,627,780)$ (9,861,701)$ (9,964,592)$ For Years Ended December 31, Schedule 2 Town of Estes Park, Colorado Changes in Net Position (accrual basis of accounting) 115 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Taxes Sales taxes 10,405,574$ 12,227,589$ 13,027,892$ 13,859,472$ 15,076,059$ 16,357,777$ 14,390,465$ 19,909,713$ 22,636,312$ 22,855,635$ Property taxes 353,864 343,135 361,750 21,676 388,128 415,220 436,515 406,217 461,255 455,266 Property taxes - - - - - - - - - 5,309,126 Franchise taxes 480,676 470,612 488,325 512,132 542,058 564,658 560,865 588,222 639,000 651,095 Use taxes - 280,612 304,540 335,175 331,579 361,623 317,686 409,078 365,369 427,507 Other taxes & contributions 132,712 458,250 528,506 442,651 513,425 831,379 787,956 1,074,818 53,457 57,909 Investment income (loss)47,534 41,358 106,420 221,620 199,804 359,280 170,372 (18,724) 44,217 1,151,361 Miscellaneous 614,451 424,843 1,279,985 432,218 575,169 345,109 655,121 733,146 964,369 1,316,029 Gain (Loss) on sale of capital assets 835,373 - - - 55,776 13,950 (464,667) - - - Extraordinary item: Environmental Remediation - - - - - - Special item: Elim. Of net pension obligation - - - - - - Transfers In (Out)1,513,961 1,555,141 736,059 1,403,046 (815,338) 1,921,970 1,858,565 1,802,028 1,612,752 1,496,808 Total governmental activities 14,384,145$ 15,801,540$ 16,833,477$ 17,227,990$ 16,866,660$ 21,170,966$ 18,712,878$ 24,904,498$ 26,776,731$ 33,720,736$ Business-type activities: Investment income 67,013$ 53,616$ 113,292$ 147,234$ 307,128$ 537,901$ 447,994$ (6,839)$ 200,153$ 1,507,437$ Miscellaneous 1,810,884 367,588 457,589 1,197,549 816,467 2,457,193 408,357 598,834 384,600 411,805 Gain (Loss) on sale of capital assets - - - 208,874 93,769 (15,207) - - - - Transfers In (Out)(1,513,961) (1,555,141) (736,059) (1,403,046) 815,338 (1,921,970) (1,858,565) (1,802,028) (1,612,752) (1,496,808) Total business-type activities 363,936 (1,133,937) (165,178) 150,611 2,032,702 1,057,917 (1,002,214) (1,210,033) (1,027,999) 422,434 Total primary government 14,748,081$ 14,667,603$ 16,668,299$ 17,378,601$ 18,899,362$ 22,228,883$ 17,710,664$ 23,694,465$ 25,748,732$ 34,143,170$ Changes in Net Position Governmental activities 2,347,779$ 6,596,178$ 995,030$ 6,292,332$ 3,543,340$ 4,869,877$ 1,778,453$ 6,990,403$ 8,472,185$ 10,019,399$ Business-type activities 1,998,022 1,788,399 784,992 2,403,501 4,373,599 7,160,522 4,032,635 4,076,282 7,414,846 14,159,179 Total primary government 4,345,801$ 8,384,577$ 1,780,022$ 8,695,833$ 7,916,939$ 12,030,399$ 5,811,088$ 11,066,685$ 15,887,031$ 24,178,578$ Source: Current and prior year's financial statements Schedule 2 (continued) Town of Estes Park, Colorado Changes in Net Position (accrual basis of accounting) For Years Ended December 31, 116 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Fund Nonspendable 103,454$ 41,672$ 48,693$ 105,093$ 103,694$ 47,654$ 26,368$ 11,537$ 15,195$ 15,909$ Restricted 443,437 545,557 576,778 599,398 707,795 628,494 716,368 826,966 790,222 786,375 Assigned 715,775 678,791 373,866 945,296 300,087 755,923 2,091,374 2,649,628 4,132,686 9,111,618 Unassigned 3,036,517 2,932,790 4,422,749 529,245 7,541,385 9,802,762 9,092,668 12,678,756 11,207,757 5,550,676 Total general fund 4,299,183$ 4,198,810$ 5,422,086$ 2,179,032$ 8,652,961$ 11,234,833$ 11,926,778$ 16,166,887$ 16,145,860$ 15,464,578$ All other Governmental Funds Nonspendable - - - 199,966 - 199,966 210,546 - - - Restricted 468,955 8,860,787 4,220,771 4,654,222 4,031,764 2,953,260 1,162,166 2,998,920 7,904,188 7,632,425 Assigned 5,545,301 2,516,777 1,206,842 430,752 2,201,452 - 1,763,200 2,872,427 3,709,827 4,065,529 Unassigned - - (247,404) (371,805) - (199,966) - - - - Total all other governmental funds 6,014,256$ 11,377,564$ 5,180,209$ 4,913,135$ 6,233,216$ 2,953,260$ 3,135,912$ 5,871,347$ 11,614,015$ 11,697,954$ Total general fund + all other govt funds 10,313,439$ 15,576,374$ 10,602,295$ 7,092,167$ 14,886,177$ 14,188,093$ 15,062,690$ 22,038,234$ 27,759,875$ 27,162,532$ Source: Current and prior year's financial statements The Town adopted GASB 54 for 2011. As of December 31, Schedule 3 Town of Estes Park, Colorado Fund Balances, Governmental Funds (modified accrual basis of accounting) 117 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenues Taxes 11,240,114$ 13,321,948$ 14,182,507$ 14,728,455$ 16,851,249$ 18,530,657$ 16,493,487$ 22,388,048$ 24,155,393$ 29,756,538$ Licenses, fees and permits 525,376 581,401 730,684 962,487 912,204 809,296 630,350 787,817 1,014,392 874,697 Intergovernmental 3,024,306 6,665,193 3,167,621 6,798,487 8,899,628 1,175,891 2,566,116 3,401,599 1,922,931 1,612,780 Charges for services 1,004,843 665,719 702,261 685,200 741,016 574,802 310,959 1,329,280 1,502,505 1,668,799 Fines and forfeitures 60,462 57,676 45,045 38,831 76,366 61,890 59,925 74,933 107,702 77,387 Rental Income 202,802 284,914 327,336 376,749 307,267 103,063 293,228 218,558 271,811 253,128 Contributions - - - - - - 41,510 60,809 54,745 60,583 Investment Income (Loss)32,759 31,571 86,049 153,494 153,046 308,544 170,372 (18,724) 44,217 1,151,361 Miscellaneous 607,341 307,110 544,691 470,923 547,970 338,462 188,778 199,649 883,174 721,292 Total revenues 16,698,003 21,915,532 19,786,194 24,214,626 28,488,746 21,902,605 20,754,725 28,441,969 29,956,870 36,176,565 Expenditures General Government 3,877,566 4,452,444 4,698,211 4,531,015 4,468,864 4,577,812 5,539,291 5,362,265 5,380,563 10,640,543 Public Safety 5,081,198 3,991,990 4,758,036 5,037,114 4,535,463 5,492,446 5,309,712 5,896,062 6,814,248 7,316,848 Public Works 1,268,615 2,907,909 2,274,000 3,300,722 2,435,684 1,966,190 2,622,594 3,163,334 3,797,339 4,248,580 Culture and Recreation 3,962,643 4,402,049 5,545,079 4,996,013 5,380,601 5,513,533 4,005,928 5,417,407 5,253,576 5,894,226 Community Reinvestment 160,649 329,556 169,735 23,151 2,600 - - - - - Capital outlay 4,359,403 1,541,624 8,118,339 15,324,161 4,751,293 6,201,862 3,297,297 2,465,842 3,516,663 9,181,421 Debt Service Principal 370,000 434,171 445,926 566,989 692,149 766,072 692,990 715,468 743,400 785,080 Interest, Fiscal Charges, bond issuance costs 147,622 147,995 137,006 266,955 304,006 281,589 270,881 248,075 224,573 204,017 Total expenditures 19,227,696 18,207,738 26,146,332 34,046,120 22,570,660 24,799,504 21,738,693 23,268,453 25,730,362 38,270,715 Excess of revenues over (under) expenditures (2,529,693) 3,707,794 (6,360,138) (9,831,494) 5,918,086 (2,896,899) (983,968) 5,173,516 4,226,508 (2,094,150) Other Financing Sources (Uses) Financing Proceeds - - - - 291,845 Transfers in 5,008,419 2,850,141 2,760,009 3,849,670 3,226,246 7,932,227 3,203,703 3,383,885 7,909,052 7,059,559 Transfers out (3,494,458) (1,295,000) (2,023,950) (2,080,921) (1,350,322) (6,025,257) (1,345,138) (1,581,857) (6,413,919) (5,562,751) Proceeds on sale of assets 1,000,000 - 650,000 - - - - - - - Bond Proceeds/premiums/Escrow activity - - - 4,552,617 - - - - - - Total other financing sources (uses)2,513,961 1,555,141 1,386,059 6,321,366 1,875,924 2,198,815 1,858,565 1,802,028 1,495,133 1,496,808 Net change in fund balances (15,732)$ 5,262,935$ (4,974,079)$ (3,510,128)$ 7,794,010$ (698,084)$ 874,597$ 6,975,544$ 5,721,641$ (597,342)$ Debt service as a percentage of noncapital expenditures 3.5%3.7%3.2%4.4%5.7%5.6%5.2%4.6%4.4%3.4% Source: Current and prior year's financial statements GASB 34 implemented in 2003 (modified accrual basis of accounting) For Years Ended December 31, Schedule 4 Town of Estes Park, Colorado Changes in Fund Balances, Governmental Funds 118 General Personal/ Fiscal Amusement/Merchandise Lumber &Professional Year Recreation Automotive Food (Retail)Lodging Building Services Utilities Total Sales Tax 2014 77,638 180,808 3,640,784 2,233,404 2,896,359 521,716 174,221 680,645 10,405,574 2015 75,434 207,133 4,407,514 2,302,864 3,695,728 602,859 204,986 731,071 12,227,589 2016 85,086 244,733 4,852,342 2,372,937 3,903,203 595,912 211,821 746,250 13,012,284 2017 113,131 275,744 5,038,864 2,363,339 4,402,806 681,341 212,289 771,958 13,859,472 2018 97,563 283,633 5,506,167 2,692,364 4,764,050 702,690 244,331 785,261 15,076,059 2019 95,323 280,253 5,800,822 3,141,904 4,896,981 879,626 789,818 473,050 16,357,777 2020**96,815 252,344 5,280,932 3,175,428 4,152,606 1,075,819 355,518 757,449 15,146,911 2021 119,477 238,929 7,029,142 4,673,622 6,316,430 1,262,306 504,397 811,955 20,956,258 2022 104,812 280,175 7,630,779 4,766,670 6,913,106 1,453,020 583,098 925,081 22,656,741 2023 91,162 330,417 7,796,480 4,622,346 7,109,467 1,404,447 582,859 943,633 22,880,811 Sales tax rate: increased from 4.00% to 5.00%, July 1, 2014 Source: Town of Estes Park Sales and Use Tax Reports ** sales tax adversely affected by the COVID-19 pandemic Schedule 5 Town of Estes Park, Colorado Sales Tax Revenue by Type of Industry For Years Ended December 31, 119 Total Total Direct Overlapping Fiscal Town of Sales Tax State of Larimer Sales Tax Year Estes Park Rate Colorado County Rate 2014*5.00%5.00%2.90%0.65%8.55% 2015*5.00%5.00%2.90%0.65%8.55% 2016 5.00%5.00%2.90%0.65%8.55% 2017 5.00%5.00%2.90%0.65%8.55% 2018 5.00%5.00%2.90%0.80%8.70% 2019 5.00%5.00%2.90%0.80%8.70% 2020 5.00%5.00%2.90%0.80%8.70% 2021 5.00%5.00%2.90%0.80%8.70% 2022 5.00%5.00%2.90%0.80%8.70% 2023 5.00%5.00%2.90%0.80%8.70% Source: Colorado Department of Revenue Taxation Division Overlapping RatesCity Direct Rate Schedule 6 Town of Estes Park, Colorado Direct and Overlapping Sales Tax Rates *City sales tax increased from 4.00% to 5.00% on July 1, 2014, as a result of April 2014 ballot issue As of December 31, 120 2014 2023 Top three categories (alphabetical) Food 3,640,784$ 7,796,480$ Lodging 2,896,359 7,109,467 Retail 2,233,404 4,622,346 Total:8,770,547 19,528,293 Aggregate all other categories 1,635,027 3,352,518 Total sales and use tax 10,405,574$ 22,880,811$ Top three categories as a percentage of total sales tax 84.29%85.35% Schedule 7 Town of Estes Park, Colorado Principal Sales Tax Categories Current and nine years ago For Years Ended December 31, 121 Power and Certificates Lease Lease Light and Power Power and Communications Total Percentage Fiscal of Purchase Purchase Revenue Communications Revenue Bond Water Construction 2020 USDA Water Primary of Personal Per Year Participation8 Agreement9 Premium9 Leases Bonds3 Revenue Bonds10 Premium10 Leases Loan4 Loan5 Bond Loans6 Government Income7 Capita7 2014 5,705,000 0 0 0 4,510,000 0 0 0 0 0 0 4,330,819 14,545,819 24.31%2,390 2015 5,325,000 0 0 234,813 4,235,000 0 0 0 0 0 0 4,058,369 13,853,182 24.63%2,214 2016 4,935,000 0 0 178,887 3,950,000 0 0 0 0 0 0 3,780,243 12,844,130 23.55%2,019 2017 4,540,000 4,427,381 201,632 121,149 3,655,000 0 0 0 0 0 0 3,502,117 16,447,279 33.89%2,595 2018 4,135,000 4,203,062 189,446 61,540 3,350,000 0 0 0 0 0 0 3,218,315 15,157,363 28.59%2,386 2019 3,720,000 3,791,830 165,989 244,572 0 30,030,000 0 107,076 2,928,838 0 0 0 40,988,305 80.63%6,453 2020 3,295,000 3,559,951 142,510 208,461 0 29,660,000 3,340,253 91,530 2,633,684 0 543,145 0 43,474,533 79.04%6,765 2021 2,860,000 3,317,520 120,255 170,423 0 29,270,000 3,108,754 75,309 2,338,529 0 530,332 0 41,791,122 76.09%7,078 2022 2,410,000 3,064,057 99,363 130,486 0 28,870,000 2,875,321 52,025 2,037,699 54,376 517,096 0 40,110,423 71.41%6,842 2023 1,950,000 2,799,059 79,983 88,553 0 27,615,000 2,644,018 40,337 1,731,193 764,616 503,559 0 38,216,318 68.04%6,519 1 Issued by Estes Park Urban Renewal Authority to refinance Series 1993 Bonds. Interest accrues at rates between 3.00-3.25%. 2 Issued by the Estes Park Building Authority to refinance 1990 Certificates of Participation. Interest accrues at rate of 5.50%. 3 2007 Light and Power Revenue Bonds issued to finance construction and equipping of a new substation, and to rebuild certain distribution lines and make other improvements to Town's L&P facilities. 1999 Revenue Bonds ($1,305,000 remaining in 2010) were paid in full during the year ending December 31, 2010. Interest accrues at 3.88%. 4 1997B Water Loan from the Colorado Water Resources and Power Development Authority (CWRPDA) obtained to finance improvements to water system. Interest accrues at rates between 3.80-5.00%. 5 2022 Water Construction Loan was obtained from CoBank to finance improvements to water system. Interest accrues at a daily variable interest rate. 6 2008A Water Loan was obtained from the CWRPDA to finance improvements to water system. Interest accrues at 3.26%. 7 See schedule 12 for personal income and population data. These ratios are calculated using personal income and population for the prior calendar year. 8 Certificates of Participation Series 2013 ($6,075,000) obtained to finance Multipurpose Event Center/Pavillion complex. Duration: 14 years, Interest rate: 2.43%. 9 Lease Purchase Financing Agreement dated 1-1-17 obtained to finance the Visitor Center Parking Garage. Duration: 15 years, Interest rate: 4.5%. 10 Issued Power and Communications Revenue Bonds Series 2019A &B to finance the municial broadband and smart grid buildout. Duration: 30 years, Interest rate: 2.362% - 2.988%. Source: Current and prior year's financial statements Governmental Activities Schedule 8 Town of Estes Park, Colorado Ratio of Outstanding Debt, by Type Business-Type Activities As of December 31, 122 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General bonded debt outstanding -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Certificates of Participation 5,705,000 5,325,000 4,935,000 4,540,000 4,135,000 3,720,000 3,295,000 2,860,000 2,410,000 1,950,000 Total 5,705,000 5,325,000 4,935,000 4,540,000 4,135,000 3,720,000 3,295,000 2,860,000 2,410,000 1,950,000 Per capita1 937$ 851$ 776$ 716.20 650.98 585.64 512.76 484.42 411.12 334.82 . Less: Amounts not subject to the statutory debt limit 5,705,000 5,325,000 4,935,000 4,540,000 4,135,000 3,720,000 3,295,000 2,860,000 2,410,000 1,950,000 Less: Amounts set aside to repay general debt - - - - - - - - - - 5,705,000 5,325,000 4,935,000 4,540,000 4,135,000 3,720,000 3,295,000 2,860,000 2,410,000 1,950,000 Total net debt applicable to debt limit -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Legal debt margin2 43,565,562$ 48,643,383$ 48,919,777$ 54,813,869$ 55,572,712$ 66,132,054$ 66,642,636$ 72,235,707$ 72,851,331$ 95,288,081$ 1 See Schedule 12 for personal income and population data. These ratios are calculated using personal income and population for the prior calendar year. 2 The legal debt margin is the city's available borrowing authority. It is calculated from estimated actual property value as provided by Larimer County. For 2023, the computation is: $3,176,269,360 x 3% = $95,288,081. GASB 34 implemented in 2003 Schedule 9 Town of Estes Park, Colorado Ratio of General Bonded Debt Outstanding and Legal Debt Margin As of December 31, 123 Percentage Estimated Applicable Share of Debt To Overlapping Jurisdiction Outstanding Government Debt Direct: Town of Estes Park 4,780,608$ 100.00%4,780,608$ Overlapping: Northern Colorado Water Conservancy District 2,583,671 1.06%27,336 Park Hospital District 12,044,759 57.25%6,895,163 Park R-3 School District 11,660,000 52.00%6,063,200 Total 31,069,038$ 57.18%17,766,307$ Sources: documentation from entities listed above Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Town of Estes Park. This process recognizes that, when considering the Town's ability to issue and repay long-term debt, the entire debt borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore is responsible for repaying the debt, of each overlapping government. Schedule 10 Town of Estes Park, Colorado Direct and Overlapping Governmental Activities Debt As of December 31, 2023 124 Less:Net Fiscal Water Operating Available Year Revenues1 Expenses2 Revenue Principal Interest Coverage 2014 4,087,720 3,165,030 922,690 266,774 136,335 2.29 2015 5,211,779 2,985,121 2,226,658 272,450 132,440 5.50 2016 5,219,482 3,255,765 1,963,717 278,126 128,668 4.83 2017 5,747,358 3,906,535 1,840,823 278,126 125,027 4.57 2018 6,846,182 3,848,853 2,997,329 283,802 120,357 7.42 2019 7,309,877 2,989,397 4,320,480 289,478 111,369 10.78 2020 6,870,008 3,339,270 3,530,738 299,394 106,701 8.69 2021 7,179,700 3,768,806 3,410,894 307,967 108,479 8.19 2022 7,491,878 3,054,623 4,437,255 314,066 101,659 10.67 2023 8,389,178 4,528,331 3,860,847 318,002 101,252 9.21 Power & Less:Net Communications Operating Available Revenues Expenses Revenue Principal Interest Coverage 2014 15,311,185 11,818,066 3,493,119 260,000 184,838 7.85 2015 14,721,092 11,963,511 2,757,581 275,000 174,763 6.13 2016 14,507,439 13,201,872 1,305,567 285,000 164,106 2.91 2017 16,475,414 13,858,488 2,616,926 295,000 153,063 5.84 2018 17,277,501 13,990,269 3,287,232 305,000 141,631 7.36 2019 20,031,160 13,089,751 6,941,409 320,000 129,812 15.43 2020 19,558,776 14,154,799 5,403,977 370,000 1,127,566 3.61 2021 20,840,077 15,626,771 5,213,306 390,000 1,158,710 3.37 2022 22,873,862 14,861,899 8,011,963 400,000 1,143,110 5.19 2023 25,814,957 17,049,203 8,765,754 1,255,000 1,123,110 3.69 Source: Current and prior year's financial statements For Years Ended December 31, Schedule 11 Town of Estes Park, Colorado Pledged-Revenue Coverage Debt Service Debt Service Water Revenue Bonds Power & Communications Revenue Bonds 125 Fort Collins/ Total Median Per Capita Loveland, CO Fiscal Personal Family Personal Median School Unemployment Year Population1,3,5 Income4 Income1,3 Income1,3 Age1 Enrollment2 Rate3 2014 6,086 243,202,646 59,826 39,961 51 1,125 4.2% 2015 6,257 231,327,547 56,236 36,971 51 1,143 3.5% 2016 6,362 243,410,120 54,530 38,260 51 1,117 2.8% 2017 6,339 221,370,558 48,533 34,922 58 1,162 2.5% 2018 6,352 234,960,480 53,025 36,990 59 1,160 2.7% 2019 6,352 228,093,968 50,833 35,909 59 1,151 2.0% 2020 6,426 258,389,460 55,000 40,210 57 1,017 6.4% 2021 5,904 271,920,528 54,925 46,057 62 1,058 3.0% 2022 5,862 282,237,714 56,166 48,147 60.1 1,061 2.3% 2022 5,862 282,237,714 56,166 48,147 60.1 735 2.3% 2023 5,824 321,962,368 63,598 55,282 60.9 687 2.8% 1 2010 Census, 2013 www.census.gov factfinder. 2Park R-3 School district 3Data obtained from www.Larimer.org/compass or U.S. Bureau of Labor Statistics for Eastern & Southern Colorado Nonmetro area 4Total Personal Income derived from Per Capita Personal Income x Population 5Population numbers for 2012-13 are estimates as posted on www.census.gov Note: The Town of Estes Park implemented GASB 34 as of December 31, 2003 Schedule 12 Town of Estes Park, Colorado Demographic and Economic Statistics As of December 31, 126 # of # of full-time full-time equivalent equivalent 2014 employees 2023 employees 1 Estes Park Medical Center 254 Estes Park Medical Center 286 2 Rocky Mountain National Park 170 Rocky Mountain National Park 188 3 Park School District R-3 143 YMCA of the Rockies 174 4 YMCA of the Rockies 130 Town of Estes Park 158 5 Town of Estes Park 117 Park School District R-3 158 6 Harmony Foundation 108 Stanley Hotel 145 7 Estes Valley Recreation District 45 Safeway 94 8 Rocky Mountain Inn 30 Harmony Foundation 85 9 Safeway 20 Estes Valley Recreation District 64 10 Stanley Hotel N/A Holiday Inn 48 Source: Town of Estes Park's Community Profile and local informal surveys. Schedule 13 Town of Estes Park, Colorado Principal Employers As of December 31, 127 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function/Program General Government Judicial 1 1 1 1 1 0.5 0.5 0.5 0.5 0.5 Town Attorney1 2.00 2.00 2.00 2.00 2.00 Town Administration2 Town Administrator 5.00 5.00 5.00 5.00 4.00 4.00 4.00 4.00 4.00 5.00 Town Clerk 4.00 4.00 4.00 4.00 4.50 4.50 4.50 3.50 3.50 3.50 Human Resources3 1.00 2.00 2.00 Finance 8.00 9.00 10.00 10.00 9.00 8.75 8.75 9.13 9.00 11.00 Community Development 8.00 9.00 12.00 12.00 10.00 11.00 10.00 5.00 5.00 5.00 Police 32.00 33.00 34.00 36.00 37.00 38.71 38.71 38.13 40.71 42.71 Public Works 18.00 21.00 22.17 22.53 23.94 26.42 26.42 21.66 28.50 27.83 Community / Cultural Services Community Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Visitor Services Center 5.10 5.35 6.32 6.64 6.64 5.81 5.50 4.30 5.50 5.50 Senior Services 2.00 2.40 2.40 2.55 0.11 0.00 0.00 0.00 0.00 0.00 Special Events 5.00 8.66 12.00 12.00 11.50 13.15 14.12 13.03 13.03 11.46 Transportation 1.00 1.00 1.00 1.00 1.25 0.00 0.00 0.00 0.00 0.00 Museum 3.00 3.00 3.00 3.00 3.00 3.21 3.00 3.00 3.00 3.25 Enterprise Light & Power 21.68 21.68 25.00 25.33 26.00 26.00 31.00 30.00 38.00 38.00 Water 12.00 12.00 13.75 15.00 17.31 15.12 18.12 20.00 21.08 20.00 Internal Services Information Systems (IT)2.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00 5.00 5.00 Fleet Maintenance 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 5.00 TOTALS 130.78 143.09 158.64 163.05 162.25 167.17 174.62 163.25 183.82 187.75 2.06%9.41%10.87%2.78%-0.49%2.53%7.62%0.62%9.96%7.52% 1Town Attorney Department was added in 2019. 2Town Adminstration was separated between the Town Administrator's Office and the Town Clerk's Office in 2012. 3Human Resources previously reported under Town Clerk source: Town of Estes Park Human Resources Department, Annual Town Budget Schedule 14 Town of Estes Park, Colorado Full-time Equivalent Employees by Function/Program As of December 31, 128 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Police PD Incidents 17,880 14,591 13,446 16,736 14,048 16,691 12,716 14,774 13,272 13,002 PD Report Numbers 1,728 1,903 1,886 1,743 1,748 1,653 1,405 1,534 1,489 1,092 Total Arrests 315 297 174 155 195 205 113 102 111 115 Number of alloted PD Employees 32 32 32 32 33 37 37 37 32 41 Number of alotted Sworn Employees 20 20 20 20 21 22 22 22 23 24 Number of alotted Civilian Employees 12 12 12 12 12 15 15 15 9 17 Total Phone Calls 46,309 47,407 48,215 50,309 50,833 50,324 48,135 49,353 45,561 40,708 911 Calls 4,813 5,250 5,071 5,088 5,180 5,428 5,466 6,453 5,145 5,274 Total Incidents Police/Fire/Ambulance 20,235 17,154 20,295 19,587 16,435 5,428 14,768 16,956 15,476 15,204 *data lost during phone conversion Fire Number of volunteers 38 32 43 43 45 45 39 35 40 43 Emergency Responses 596 618 685 742 621 615 570 570 673 654 Fire insurance rating ISO PPC 4 ISO PPC 4 ISO PPC 4 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 Utilities-Electric No. of accounts 10,540 10,623 10,674 10,418 10,813 10,875 10,875 11,067 11,142 11,174 Wind Power customers 145 135 128 133 140 124 122 113 109 95 Substation Capacity (MW)100 100 100 100 100 100 100 100 100 100 Average daily consumption 348,423 342,382 346,496 341,479 344,698 363,252 345,995 363,368 368,133 370,511 Annual consumption 127,174,378 124,969,364 126,470,866 124,639,921 125,814,757 132,586,967 126,288,254 132,629,252 134,368,663 135,236,679 Distribution system (in miles)300 300 300 300 300 300 300 300 300 300 Number of Street Lights 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 Utilities-Water No. of accounts 5,154 5,197 5,228 5,027 5,368 5,536 5,536 5,600 5,600 5,696 Plant Capacity (gallons)7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 Average daily consumption (gallons)1,082,184 1,098,997 1,172,322 1,128,180 1,192,523 1,127,274 1,116,770 1,143,920 1,189,865 1,158,339 Annual consumption (gallons)394,997,119 401,133,914 427,897,375 411,785,866 435,270,803 411,455,154 407,621,094 417,530,905 434,300,786 422,793,613 Schedule 15 Town of Estes Park, Colorado Operating Indicators by Function/Program As of December 31, 129 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Schedule 15 Town of Estes Park, Colorado Operating Indicators by Function/Program As of December 31, Town Government Elected officials 7 7 7 7 7 7 7 7 7 7 Appointed officials 7 7 7 7 7 7 7 7 7 7 Full-time employees 121 131 133 136 141 138 153 152 176 175 Part-time employees 7 7 12 13 13 9 8 9 1.5 2.5 Seasonal employees 49 49 36 43 37 35 28 9 13 10.25 Building Permits 616 716 559 814 829 781 577 541 800 639 Culture and Recreation Museum 1 1 1 1 1 1 1 1 1 1 Senior Center 1 1 1 1 0 0 0 0 0 0 Event Center 0 1 1 1 1 1 1 1 1 1 Convention Center 1 1 1 1 1 1 1 1 1 1 Local Marketing District 1 1 1 1 1 1 1 1 1 1 Other Miscellaneous Data Hotels, Motels, B&Bs **124 124 146 137 132 115 107 103 161 163 Financial Institutions 5 5 5 5 4 4 4 4 4 5 Newspapers 2 2 2 2 2 2 2 2 2 2 Theaters 2 2 2 2 2 2 2 2 2 2 Bus/Taxi Companies 2 2 2 2 2 2 2 2 2 2 Radio Stations 1 1 1 0 0 0 0 0 0 0 Hospitals 1 1 1 1 1 1 1 1 1 1 Churches 18 18 21 19 19 19 19 19 19 19 State highways (Highways 7, 34 and 36)3 3 3 3 3 3 3 3 3 3 Other Miscellaneous Data No. of Registered Voters 4537 4040 4040 4813 4810 4408 4930 4930 4329 4774 . Facilities and services not included in the reporting entity: Education-Park School District R-3 (enrolled) Estes Park High School (9-12)322 331 325 334 333 351 371 375 326 328 Estes Park Middle School (6-8)249 259 274 281 274 267 225 227 228 199 Estes Park Elementary School (K-5)521 553 518 488 475 477 394 424 507 488 Estes Park Options & Home Schooled 33 24 36 53 47 56 27 32 0 0 Parks and Recreation Estes Valley Recreation and Park District 1 1 1 1 1 1 1 1 1 1 Source: Local authorities including: Local Marketing District, EVRPD, Park School District R-3, Dex Onlince Listings 130 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function/Program Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 15 15 15 15 15 16 16 16 16 16 Fire Protection Stations 2 2 2 2 2 2 2 2 2 2 Fire Rating ISO PPC 4 ISO PPC 4 ISO PPC 4 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 ISO PPC 3 Public Works Area in Square Miles 6.88 6.88 6.88 6.88 6.88 6.88 6.88 6.88 6.88 6.88 Utilities Water mains (miles)100 100 100 100 100 100 100 100 100 100 Fire Hydrants 683 684 714 717 740 747 752 757 768 806 Water Treatment Plants 2 2 2 2 2 2 2 2 2 2 Number of Street Lights 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1250 Electric Substations 2 2 2 2 2 2 2 2 2 2 Source: Town of Estes Park departmental data, Community Profile Schedule 16 Town of Estes Park, Colorado Capital Asset Statistics by Function/Program As of December 31, 131 Town of Estes Park, Colorado Compliance Section INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Trustees Town of Estes Park, Colorado We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Estes Park, Colorado, as of and for the year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the Town of Estes Park, Colorado’s basic financial statements, and have issued our report thereon dated August 15, 2024. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town of Estes Park, Colorado’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Estes Park, Colorado’s internal control. Accordingly, we do not express an opinion on the effectiveness of Town of Estes Park, Colorado’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town of Estes Park, Colorado’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 132 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Littleton, Colorado August 15, 2024 133 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Trustees Town of Estes Park, Colorado Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the Town of Estes Park, Colorado’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the Town of Estes Park, Colorado’s major federal programs for the year ended December 31, 2023. The Town of Estes Park, Colorado’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. In our opinion, the Town of Estes Park, Colorado complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2023. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Town of Estes Park, Colorado and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the Town of Estes Park, Colorado’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Town of Estes Park, Colorado’s federal programs. Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Town of Estes Park, Colorado’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. 134 The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Town of Estes Park, Colorado’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Town of Estes Park, Colorado’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the Town of Estes Park, Colorado’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Town of Estes Park, Colorado’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the auditors’ Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Littleton, CO August 15, 2024 135 Town of Estes Park, Colorado Supplemental Information Schedule of Findings and Questioned Costs for the Year Ended December 31, 2023 1.Summary of Auditors’ Results Financial Statements: Type of report issued on the financial statements: Unmodified Material weaknesses in financial reporting internal control noted: Yes Significant deficiency(s) identified that are not considered to be material weaknesses in financial reporting: None reported Material noncompliance noted: None Federal Awards: Material weaknesses in internal control over major programs: None Significant deficiency(s) identified that are not considered to be material weaknesses over major programs: None reported Type of report issued on compliance for major programs: Unmodified Audit findings required to be reported: None The following programs are considered to be major: 10.760 Water and Waste Disposal Systems for Rural Communities 20.205 Highway Planning and Construction 21.027 Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish Type A and Type B programs: $750,000 Risk type qualification: Not low-risk 2.Findings relating to the financial statements which are required to be reported in accordance with Government Auditing Standards. 2023-01 – Year-end Enterprise Fund Inventory Classification: Material Weakness Condition: The Town did not ensure it appropriately adjusted year-end inventory quantities to physical counts performed prior to year end Context: In November 2023, the Audit team observed the counts of 30 items at the Power and Communications department yard. Quantities of 17 items observed (56%) did not agree to the physical counts performed as of December 31, 2023. During year end fieldwork, the audit team also noted two instances of negative quantities on the inventory summary report. 136 Cause: The lack of adjustment to the department following the year-end count and lack of sufficient review over the inventory year-end report during the year-end close process contributed the misstatement of the balance. Effect: Inventory was misstated by approximately $206,000 based on the audit sample and a projection of misstatement over the untested population. Recommendation: •An annual physical count by Town staff should be performed prior to year-end and in advance of the audit test counts. •Physical count documentation performed by Town staff as of the date of the count should be maintained for record keeping purposes. Any live electronic spreadsheets must be frozen or converted to PDF as of the date of the final count to maintain the historical count information. •Any differences that cannot be resolved between the physical count and the quantities maintained in the inventory system should be adjusted to actual quantities on hand prior to year- end, to ensure accurate reporting for year-end accounting purposes. •Adequate documentation, including the names of staff participating in the counts and the actual count dates, must be retained. The documentation should provide the actual physical counts compared with the inventory system available quantities, support explanations of any reconciling items, and document the final adjustments made to the inventory system quantities. •After year-end counts are adjusted in the inventory system, a spot check of the resulting adjusted quantities should be performed as a method of monitoring that the controls are functioning as intended. •Items should be checked out to active workorders once work begins, and not in advance of work occurring. This ensures accurate real-time accounting of quantities available for use. 3.Findings and questioned costs for Federal Awards None 4.Summary Schedule of Prior Audit Findings None 137 Federal Agency/ Pass-through Entity/ Program or Cluster Federal Assistance Listing Number Pass-Through Entity and Identifying Number Federal Expenditures ($) Federal Transit Cluster-Cluster Department of Transportation Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 Colorado Department of Transportation 21-HTR-ZL-00308 $5,808 Total Department of Transportation 5,808 Total Federal Transit Cluster-Cluster 5,808 Other Programs United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities 10.760 RUS 1780-12 6,471,183 Total United States Department of Agriculture 6,471,183 Department of the Interior WaterSMART (Sustain and Manage America’s Resources for Tomorrow)15.507 19,351 Total Department of the Interior 19,351 United States Department of Justice Bulletproof Vest Partnership Program 16.607 BVP - SFY22 5,266 Total United States Department of Justice 5,266 Department of Transportation Highway Planning and Construction Highway Planning and Construction 20.205 State of Colorado 20-HA4-XC-00018 21-HA4-XC-03173 2,415,000 Total Highway Planning and Construction 2,415,000 Formula Grants for Rural Areas and Tribal Transit Program Formula Grants for Rural Areas and Tribal Transit Program 20.509 State of Colorado 22-HTR-ZL-00205 23-HTR-ZL-00121 23-HTR-ZL-00122 107,656 Total Formula Grants for Rural Areas and Tribal Transit Program 107,656 Total Department of Transportation 2,522,656 Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds 21.027 State of Colorado Department of Local Affairs Tranche 1 and 2 1,609,391 Total Department of the Treasury 1,609,391 Department of Homeland Security Flood Mitigation Assistance Flood Mitigation Assistance 97.029 State of Colorado 20FMA22TEP FAIN # EMD-2020-FM-015 13,876 Total Flood Mitigation Assistance 13,876 Disaster Grants - Public Assistance (Presidentially Declared Disasters)97.036 State of Colorado -140,259 Total Department of Homeland Security -126,383 Total Other Programs 10,501,464 Total Expenditures of Federal Awards $10,507,272 The accompanying notes are an integral part of this schedule Town of Estes Park, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2023 138 Notes to the Schedule 1. 2. 3. Town of Estes Park, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2023 Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule")includes the federal award activity of the Town of Estes Park under programs of the federal government for the year ended December 31, 2023.The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal Regulations Part 200,Uniform Administrative Requirements,Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Estes Park it is not intended to and does not present the financial position,changes in net assets,or cash flows of the Town of Estes Park. Town of Estes Park Colorado has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. 139 September 30, 2024 To the Board of Trustees and Management Town of Estes Park, Colorado We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of Town of Estes Park for the year ended December 31, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated August 15, 2024. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Town of Estes are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the Town of Estes Park changed accounting policies related to leases by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 96, Subscription Based Information Technology Arrangements ("SBITAs") in 2023, which resulted in the addition of a net SBITA asset totaling $111,130 and an additional liability of 101,629 in the governmental activities and an addition of a $9,625 SBITA asset reported in the business-type activities. We noted no transactions entered into by Town of Estes Park during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the Town’s financial statements were: Management’s estimate of the depreciable lives and estimated residual value of property and equipment is based on prior management experience. We evaluated the key factors and assumptions used to develop the depreciable lives and estimated residual value in determining that it is reasonable in relation to the financial statements taken as a whole. The estimates of the net pension and OPEB liabilities are based on actuarial valuations, which make certain assumptions and estimations. We reviewed the valuations and key assumptions and found them to be reasonable. ATTACHMENT 2 The Town estimates the year-end self-insurance claims payable. This estimate is based on past experience and expected results. We reviewed the calculation of this liability and the key assumptions used to determine it and consider the estimated liability to be consistent with expectations. The Town estimates the discount rate and contractual terms for its subscription-based technology arrangements. The estimate is based on the facts and circumstances at the time of the estimate. We reviewed the calculation of this liability and the key assumptions used to determine it and consider the estimated liability and related asset to be consistent with expectations. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit The audit opinion issuance was delayed related to the timing of receipt of the audited financial information for the new component unit, the Estes Park Housing Authority. Management Representations We have requested certain representations from management that are included in the management representation letter dated August 15, 2024. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements, which are attached. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to Town of Estes Park’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as Town of Estes Park’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. See attached communication of the material weakness identified during the financial statement audit. Other Matters We applied certain limited procedures to the required supplementary information as listed in the table of contents of the annual financial report, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining, individual, and budget fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the Introductory and Statistical Section of the financial report and associated schedules, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the information and use of Town of Estes Park and management of Town of Estes Park and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Sincerely, Client:Town of Estes Park, Colorado Engagement:2023 - Town of Estes Park Period Ending:12/31/2023 Trial Balance:1000 - Fund Trial Balance Workpaper: Fund Level:All Index:All Account Description W/P Ref Debit Credit 6703 502-0000-170.00-00 OTHER ASSETS / DO-CONTR AFTER MEASU DATE 58,013.00 502-0000-194.00-00 DEFERRED OUTFLOW / PERA PROJ AND ACTUAL EARNING 1,628,887.00 502-0000-238.60-00 DEFERRED POSTEMPLOY BENEF / PROJ AND ACTUAL EARNING 3,021,726.00 502-0000-191.00-00 DEFERRED OUTFLOW / PERA CHG PROPORTION SHARE 82,715.00 502-0000-192.00-00 DEFERRED OUTFLOW / PERA CHG IN EXPERIENCE 17,072.00 502-0000-193.00-00 DEFERRED OUTFLOW / CHANGE IN ASSUMPTIONS 118,413.00 502-0000-238.10-00 DEFERRED POSTEMPLOY BENEF / NET PENSION LIABILITY 4,431,651.00 502-0000-238.20-00 DEFERRED POSTEMPLOY BENEF / DEF INFL-PERA EXPERIENCE 14,517.00 502-6301-540.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 27,396.00 502-6401-550.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 3,322.00 502-6501-560.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 13,540.00 Total 4,708,626.00 4,708,626.00 6703 503-0000-170.00-00 OTHER ASSETS / DO-CONTR AFTER MEASU DATE 28,090.00 503-0000-194.00-00 DEFERRED OUTFLOW / PERA PROJ AND ACT EARNINGS 707,984.00 503-0000-238.60-00 DEFERRED POSTEMPLOY BENEF / PROJ AND ACTUAL EARNING 1,343,190.00 503-0000-191.00-00 DEFERRED OUTFLOW / PERA CHG PROPORTION SHARE 35,971.00 503-0000-192.00-00 DEFERRED OUTFLOW / PERA CHG IN EXPERIENCE 7,588.00 503-0000-193.00-00 DEFERRED OUTFLOW / CHANGE IN ASSUMPTIONS 52,636.00 503-0000-238.10-00 DEFERRED POSTEMPLOY BENEF / NET PENSION LIABILITY 1,903,514.00 503-0000-238.60-00 DEFERRED POSTEMPLOY BENEF / PROJ AND ACTUAL EARNING 6,122.00 503-6200-530.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 11,494.00 503-6300-540.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 37,625.00 503-6400-550.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 7,761.00 503-6500-560.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 16,553.00 Total 2,079,264.00 2,079,264.00 6703 503-0000-190.01-00 PERA CONT SUBS MEAS DATE / PERA CONT SUBS MEAS OPEB 1,477.00 503-0000-194.01-00 DEFERRED OUTFLOW / PERA OPEB PROJ AND ACT EARNINGS 6,840.00 503-0000-238.11-00 DEFERRED POSTEMPLOY BENEF / PERA HCTF NET OPEB LIAB 7,759.00 503-0000-238.20-00 DEFERRED POSTEMPLOY BENEF / DEF INFL-PERA EXPERIENCE 1,311.00 503-0000-238.61-00 DEFERRED POSTEMPLOY BENEF / PERA EARNINGS OPEB 7,416.00 503-0000-191.01-00 PERA CHG PROPORTION SHARE / PERA CONT SUBS MEAS OPEB 3,199.00 503-0000-192.01-00 DEFERRED OUTFLOW / PERA OPEB CHG IN EXPER 168.00 503-0000-193.01-00 DEFERRED OUTFLOW / CHANGE IN ASSUMPTIONS / OPEB 680.00 503-0000-238.40-00 DEFERRED POSTEMPLOY BENEF / PERA CHANGE IN ASSUMPTION 5,867.00 503-6200-530.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 2,330.00 503-6300-540.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 7,628.00 503-6400-550.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 1,574.00 503-6500-560.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 3,357.00 Total 24,803.00 24,803.00 Adjusting Journal Entries JE # 2 To record PERA Pension entries - Water Fund Adjusting Journal Entries JE # 3 Adjusting Journal Entries To record PERA Pension entries - P&C Fund Adjusting Journal Entries JE # 1 To record OPEB Entries -Water Fund 1 of 4 Client:Town of Estes Park, Colorado Engagement:2023 - Town of Estes Park Period Ending:12/31/2023 Trial Balance:1000 - Fund Trial Balance Workpaper: Fund Level:All Index:All Account Description W/P Ref Debit Credit 6703 502-0000-190.01-00 PERA CONT SUBS MEAS DATE / PERA CONT SUBS MEAS OPEB 2,906.00 502-0000-194.02 OPEB PROJ AND ACTUAL EARNINGS 15,745.00 502-0000-238.11-00 DEFERRED POSTEMPLOY BENEF / PERA HCTF NET OPEB LIAB 11,736.00 502-0000-238.61-00 DEFERRED POSTEMPLOY BENEF / PERA EARNINGS OPEB 16,683.00 502-0000-238.62-00 DEFERRED POSTEMPLOY BENEF / PERA CHG IN EXP OPEB 1,566.00 502-0000-191.01-00 PERA CHG PROPORTION SHARE / PERA CONT SUBS MEAS OPEB 6,942.00 502-0000-192.01-00 PERA CHG IN EXPERIENCE / PERA CHG IN EXPER OPEB 377.00 502-0000-193.01-00 CHANGE IN ASSUMPTIONS / OPEB 1,437.00 502-0000-238.40-00 DEFERRED POSTEMPLOY BENEF / PERA CHANGE IN ASSUMPTION 13,831.00 502-6301-540.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 16,124.00 502-6401-550.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 1,955.00 502-6501-560.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 7,970.00 Total 48,636.00 48,636.00 6710.20 502-0000-238.12-00 DEFERRED POSTEMPLOY BENEF / RMIP NET OPEB LIABILITY 12,990.00 502-6301-540.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 17.00 502-6401-550.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 2.00 502-6501-560.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 8.00 502-0000-193.02-00 CHANGE IN ASSUMPTIONS / RMIP CHANGE IN ASSUMP 1,178.00 502-0000-193.02-00 CHANGE IN ASSUMPTIONS / RMIP CHANGE IN ASSUMP 2,168.00 502-0000-238.63-00 DEFERRED POSTEMPLOY BENEF / OPEB-CHG IN ASSUMP RMIP 9,671.00 Total 13,017.00 13,017.00 6710.20 503-0000-238.12-00 DEFERRED POSTEMPLOY BENEF / RMIP NET OPEB LIABILITY 5,931.00 503-6200-530.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 2.00 503-6300-540.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 7.00 503-6400-550.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 2.00 503-6500-560.14-90 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 2.00 503-0000-190.02-00 PERA CONT SUBS MEAS DATE / RMIP CONT SUBS MEAS OPEB 538.00 503-0000-193.02-00 CHANGE IN ASSUMPTIONS / RMIP CHANGE IN ASSUMP 990.00 503-0000-238.63-00 DEFERRED POSTEMPLOY BENEF / OPEB-CHG IN ASSUMP RMIP 4,416.00 Total 5,944.00 5,944.00 2303.0 606-0000-341.80-00 INS. STOP LOSS 29,514.58 606-0000-341.80-00 INS. STOP LOSS 6,673.87 606-0000-115.00-00 CURRENT ASSETS / ACCOUNTS RECEIVABLE 29,514.58 606-0000-115.00-00 CURRENT ASSETS / ACCOUNTS RECEIVABLE 6,673.87 Total 36,188.45 36,188.45 Adjusting Journal Entries JE # 7 To agree stop loss receivables to cash collected in Jan-March 2024. Adjusting Journal Entries JE # 6 To record RMIP Pension entries - Water Fund Adjusting Journal Entries JE # 4 To record OPEB pension entries for P&C Fund Adjusting Journal Entries JE # 5 To record RMIP Entry - P&C fund 2 of 4 Client:Town of Estes Park, Colorado Engagement:2023 - Town of Estes Park Period Ending:12/31/2023 Trial Balance:1000 - Fund Trial Balance Workpaper: Fund Level:All Index:All Account Description W/P Ref Debit Credit PBC 101-0000-126.20-90 STATE GRANTS / OTHER 16,027.38 256-0000-334.20-00 STATE GOVERNMENT REVENUE / OPERATING GRANT 16,027.38 101-5600-334.20-00 STATE GOVERNMENT REVENUE 16,027.38 256-0000-126.20-90 STATE GRANTS / OTHER 16,027.38 Total 32,054.76 32,054.76 502-0000-126.20-90 STATE GRANTS / OTHER 318,562.25 502-0000-334.30-00 CAPITAL GRANTS 318,562.25 Total 318,562.25 318,562.25 4103.0 606-0000-202.70-00 ACCOUNTS PAYABLE / IBNR MEDICAL BENEFIT PMTS 201,194.00 606-4200-635.29-11 HEALTH BENEFIT PAYMENT 201,194.00 Total 201,194.00 201,194.00 PBC 101-1500-415.32-01 Capital outlay - Data processing software 9,500.00 101-2100-421.41-05 Expenditures - Subscription financing principal 18,150.00 101-2100-421.41-06 Expenditures - Subscription interest 3,910.00 502-0000-168.00-00 MDSS SBITA ROU Asset 5,625.00 502-6401-550.29-97 Amortization Expense 1,250.00 503-0000-168.00-00 MDSS SBITA ROU Asset 4,000.00 503-6400-550.29-97 Amortization Expense 889.00 101-0000-202.05-00 ACCOUNTS PAYABLE / MANUAL ACCTS PAYABLE 22,060.00 101-1500-415.26-32 DATA PROCESSING SOFTWARE 9,500.00 502-0000-168.10-00 MDSS SBITA Acumulated Amortiztion 1,250.00 502-6401-550.26-32 DATA PROCESSING SOFTWARE 5,625.00 503-0000-168.10.00 MDSS SBITA Accumulated Amortization 889.00 503-6400-550.26-32 DATA PROCESSING SOFTWARE 4,000.00 Total 43,324.00 43,324.00 2501.0 502-0000-141.40-00 INVENTORIES-MAT. & SUPPLY / LUCITY INVENTORY 128,220.44 502-6301-540.25-32 POWER LINE MAINTENANCE 23,372.34 502-0000-141.40-00 INVENTORIES-MAT. & SUPPLY / LUCITY INVENTORY 23,372.34 502-6301-540.25-32 POWER LINE MAINTENANCE 128,220.44 Total 151,592.78 151,592.78 PBC 503-0000-333.00-00 FEDERAL GRANT 3,018,144.00 503-0000-126.10-90 FEDERAL GRANTS / OTHER 3,018,144.00 Total 3,018,144.00 3,018,144.00 Total Adjusting Journal Entries 10,681,350.24 10,681,350.24 Adjusting Journal Entries JE # 13 To reverse USDA Loan receivable and revenue not elgible for revenue recognition in 2023 Adjusting Journal Entries JE # 8 To move grant receivable to the correct fund, per Sharla Adjusting Journal Entries JE # 9 Adjusting Journal Entries JE # 12 PBC entry to update inventory per physical count. Record state grant receivable for TB DOLA. Funds received March 4th 2024 and eligble for revenue recognition Adjusting Journal Entries JE # 10 to adjust IBNR payable balance Adjusting Journal Entries JE # 11 To record current year GASB 96 - SBITA implementation 3 of 4 Client:Town of Estes Park, Colorado Engagement:2023 - Town of Estes Park Period Ending:12/31/2023 Trial Balance:1000 - Fund Trial Balance Workpaper:1120 - Passed Journal Entries Fund Level:All Index:All Account Description W/P Ref Debit Credit 2506 502-0000-141.40-00 INVENTORIES-MAT. & SUPPLY / LUCITY INVENTORY 102,000.00 502-6301-540.25-32 POWER LINE MAINTENANCE 102,000.00 Total 102,000.00 102,000.00 Total Proposed Journal Entries 102,000.00 102,000.00 Total All Journal Entries 102,000.00 102,000.00 Proposed Journal Entries Proposed Journal Entries JE # 14 To record passed adjustment for P&C Inventory - estimate based on untested balance. Passed due to nature of the estimate. 4 of 4 Communication of Material Weakness July 9, 2024 Board of Trustees and Management Town of Estes Park In planning and performing our audit of the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Town of Estes Park as of and for the year ended December 31, 2023, in accordance with auditing standards generally accepted in the United States of America, we considered the Town of Estes Parks’ system of internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Town of Estes Parks’ internal control. Accordingly, we do not express an opinion on the effectiveness of Town of Estes Parks’ internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the following deficiencies in internal control to be material weaknesses: During the course of the audit, we identified that controls over inventory quantities on hand, specifically as they relate to the Power and Communications department, should be improved. In November 2023, two members of the audit team were onsite to physically count inventory in the Power and Communications yard. At that time, a physical inventory had been previously completed by Town staff. The audit team physically counted 30 items, which were then compared to internal documents (primarily a google spreadsheet) maintained by Town staff. The google sheet maintained by Town staff was used to track their physical inventory counts compared to the inventory system quantities, which are maintained real time. Seventeen of the thirty items counted by the audit team did not agree to quantities reported by both the internally maintained spreadsheet and the accounting system. In general, the accounting system quantities were higher compared to items observed onsite, which can be partially attributed to items being checked out in the inventory system for jobs which had not started. These differences were communicated with the staff from the Power and Communications department, and most could be resolved to agree, or closely agree, to internally maintained quantities on the electronic spreadsheet. ATTACHMENT 3 It was later determined that the physical counts tracked on the internally maintained spreadsheets were not updated in the inventory system prior to year-end. The audit team also identified instances where negative quantities were included in the accounting records as of year-end. As a result, inventory is misstated by approximately $206,000. We have the following recommendations as a result of these findings: An annual physical count by Town staff should be performed prior to year-end and in advance of the audit test counts. Physical count documentation performed by Town staff as of the date of the count should be maintained for record keeping purposes. Any live electronic spreadsheets must be frozen or converted to PDF as of the date of the final count to maintain the historical count information. Any differences that cannot be resolved between the physical count and the quantities maintained in the inventory system should be adjusted to actual quantities on hand prior to year- end, to ensure accurate reporting for year-end accounting purposes. Adequate documentation, including the names of staff participating in the counts and the actual count dates, must be retained. The documentation should provide the actual physical counts compared with the inventory system available quantities, support explanations of any reconciling items, and document the final adjustments made to the inventory system quantities. After year-end counts are adjusted in the inventory system, a spot check of the resulting adjusted quantities should be performed as a method of monitoring that the controls are functioning as intended. Items should be checked out to active workorders once work begins, and not in advance of work occurring. This ensures accurate real-time accounting of quantities available for use. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following deficiencies in internal control to be significant deficiencies: None identified. This communication is intended solely for the information and use of management and the Board of Trustees of the Town of Estes Park, and is not intended to be, and should not be, used by anyone other than these specified parties. Littleton, Colorado <Any extra information that doesn’t match agenda but needs to be on section break slide> Town of Estes Park Audit Presentation to the Board of Trustees For The Year Ending December 31, 2023 October 8, 2024 •Engagement team •Audit procedures •Required communications •Audit Adjustments •Appendices Agenda 1 2 ATTACHEMNT 4 - PRESENTATION RECEIVED 2024-10-07 <Any extra information that doesn’t match agenda but needs to be on section break slide> ENGAGEMENT TEAM Ty Holman, CPA, tyh@hayniecpas.com 303-995-4970 Audit Partner Abbey Irvine, CPA, abbeyi@hayniecpas.com 970-443-0936 Audit Manager <Any extra information that doesn’t match agenda but needs to be on section break slide> AUDIT PROCEDURES 3 4 -We issued an unmodified audit opinion on the 2023 financial statements effective August 15, 2024 . -The audit opinion covers the governmental activities, the business type activities, each major fund, all non-major funds, the discretely presented component units, and the related notes to the financials -We conducted our audit in accordance with United States Generally Accepted Auditing Standards. The objective of our audit was to obtain reasonable, not absolute, assurance about whether the financial statements are free from material misstatement. -There was a new component unit presented this year, the Estes Park Housing Authority. Engagement status 5 6 •Government-Wide Financial Statements (27-28) •Governmental Fund Financial Statements (29 and 31) •New Major Fund – Workforce Housing Lodging Tax •Enterprise Fund Financial Statements (33 -35) •New Non-Major Enterprise Fund- Workforce Housing Linkage Impact Fee •Accounting Policies (Note 1) •Capital assets (Note 4) •Long-Term Debt (Note 5) •Budget to actuals (pages 87-89 and 94-103, 107-111) •No funds over budget in 2023 Highlights of the Report <Any extra information that doesn’t match agenda but needs to be on section break slide> REQUIRED COMMUNICATIONS 7 8 •GASB 96, Subscription Based technology arrangements, was adopted effective January 1, 2023. - Impact - Financial impact: Net SBITA asset added totaling $111,130 in the governmental activities and $9,625 in the business-type activities. Liability added totaling $101,629 in governmental statement of net position and $0 in the business-type activities. Selection of, or changes in, accounting policies or their application Evaluation of Accounting estimates •Based on our review of the Company’s critical accounting estimates, no significant changes were noted in the current period. Estimates considered: •Depreciable lives •Pension and OPEB liability •Self Insurance claims payable •Discount rates used to measure SBITAs liability Disagreements with management •We encountered no disagreements with management about matters that, individually or in the aggregate, could be significant to •The District’s interim financial information •Our audit procedures Difficultiesencountered in performing the audit •No significant difficulties were encountered •We are not aware of any consultations management had with other accountants about significant review or accounting matters. Management consultation with other accountants Management representation •Management provided a signed representation letter prior to issuance of the final report. Other matters •Required supplementary information – no opinion and no assurance •Other supplementary information – in-relation-to opinion Single Audit •Performed in 2023 for three major programs – •Two Highway Planning and Construction grants from Department of Transportation, for Fall River Trail and the Roundabout •The Coronavirus State and Local fiscal Recovery Funds spent on Trailblazer Broadband, from the Department of Treasury •Water and Waste Disposal Systems for Rural Communities grant, from the USDA, for the Prospect Mountain Project. •No findings to report. 9 10 <Any extra information that doesn’t match agenda but needs to be on section break slide> Audit Adjustments •These are also referred to as audit adjustments •Standard audit adjustments provided to adjust Pension and OPEB amounts on the financials statements •Town provided adjustments •Adjustment provided to record the SBITA in accordance with GASB 96 •Other adjustments identified during the audit •- Not considered a control deficiency as we reviewed the process to functioning as designed •Material Weakness over Internal Control •$104,000 posted adjustment to P&C Inventories. •Approx $102,000 passed adjustment to P&C Inventories •Break down in process Corrected and Uncorrected Misstatements 11 12 Any additional information needed for sub-section break slide Upcoming GASB Pronouncements Effective Date (fiscal years beginning )Date Issued Status Pronouncement 6/15/2023 6/13/2022 Final Statement No. 100, Accounting Changes and Error Corrections (an amendment of GASB Statement No. 62) The primary objective is to provide more straightforward guidance that is easier to understand and is more reliable, relevant, consistent, and comparable across governments for making decisions and assessing accountability. Improving the clarity of accounting and financial reporting requirements for accounting changes and error corrections will mean greater consistency in the application of these requirements in general. 12/15/20236/16/2022Final Statement No. 101: Compensated Absences Aligns recognition and measurement guidance for all types of compensated absences under a unified model. It also requires that a liability for specific types of compensated absences not be recognized until the leave is used. Additionally, it establishes guidance for measuring a liability for leave that has not been used, generally using an employee's pay rate as of the date of the financial statements. Provides an alternative to the existing requirement to disclose the gross annual increases and decreases in long-term liability for compensated absences, allowing governments to disclose only the net annual change in the liability as long as it is identified as such; and removes the disclosure of the government funds used to liquidate the liability for compensated absences. 6/15/202412/1/2023Final Statement No. 102: Certain Risk Disclosures This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. 13 14 QUESTIONS AND ANSWERS THANK YOU! HaynieCPAs.com 15 16 FINANCE DEPARTMENT Memo To: Honorable Mayor Hall Board of Trustees Through: Town Administrator Machalek From: Duane Hudson, Finance Director Laura Garcia, Accounting Manager Date: Oct 8, 2024 RE: Appointment of Haynie & Company to Perform the Audit of the Annual Financial Report for the Year Ending December 31, 2024 (Mark all that apply) PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER QUASI-JUDICIAL YES NO Objective: Appointment of Haynie & Company to perform the audit for the year ending December 31, 2024. Present Situation: As required by state statute, grant agreements and other regulations, the Town is required to have an annual audit of its Annual Comprehensive Financial Report (ACFR). Haynie & Company was appointed on Jan 12, 2021, to perform the audit of the Town’s 2020 AFR. This action item is to appoint Haynie & Company to perform the Town’s audit of the 2024 ACFR, which will be the fifth year of a five-year engagement. Proposal: Since the auditor works on behalf of the Town’s Audit Committee and the full Town Board, the audit committee recommends that the Town Board formally approve re- appointment of Haynie & Company to audit the 2024 ACFR. Advantages: The Town is required by state statute and by grantor agreements to have an annual audit conducted by a qualified CPA firm. This action will demonstrate continued compliance with this requirement. Disadvantages: None identified. Action Recommended: The Audit Committee and the Finance Department is recommending appointment of Haynie & Company to conduct the audit of the 2024 ACFR. Finance/Resource Impact: The audit is an ongoing annual obligation budgeted within the three following accounts: 101-1500-415-22-01 502-6501-560-22-01 503-6500-560-22-01 The total fee for the audit of the 2024 AFR is anticipated to be about $63,400. Level of Public Interest No comments or inquiries have been received regarding this appointment. Sample Motion: I move for the approval/denial to award the engagement for the financial statement audit for the year ended December 31, 2024 to Haynie & Company. Attachments: 1. None TOWN ADMINISTRATOR’S OFFICE Memo To: From: Date: RE: Honorable Mayor Hall Board of Trustees Town Administrator Machalek October 8, 2024 Revised Town Board Governing Policies (Mark all that apply) PUBLIC HEARING ORDINANCE LAND USE CONTRACT/AGREEMENT RESOLUTION OTHER: _Policy_______ QUASI-JUDICIAL YES NO Objective: Town Board consideration of updates to Policy Governance. Present Situation: The Town Board has reviewed updates to each section of Policy Governance in Study Sessions that took place on July 9, July 23, August 13, and September 10 of this year. Proposal: A fully updated copy of the Town Board’s Governing Policies is attached. The only update from the last meeting is adding back the following language as Policy 2.3.7 (previously Policy 1.8.4): Monitoring reports due and/or submitted to the Town Board will be on the Town Board Meeting agenda for acceptance. Discussion of the reports will be only for indication of policy violations or if the Town Board does not consider the interpretation to be reasonable. Advantages: •Continuing to update the Town Board Governing Policies will help to ensure that these policies stay relevant and are well-suited to aid the Board with its governing responsibilities. Disadvantages: •None Action Recommended: Staff recommends approval of the updated Town Board Governing Policies as presented. Finance/Resource Impact: None. Level of Public Interest Low Sample Motion: I move for the approval/denial of the Town Board Governing Policies as presented. Attachments: 1. Town Board Governing Policies ATTACHMENT 1 Introduction These Governing Policies, as adopted by the Board of Trustees, incorporate four categories of policy: 1.Governance Process: This section describes the Town Board’s governance commitment and style, operating principles, roles and responsibilities, and how the Board relates to the residents of the Town of Estes Park. 2. Board/Staff Linkage: This section outlines the Town Board’s connection to management, delegation to the Town Administrator, and accountability for the Town Administrator and Town Attorney. 3.Staff Limitations: This section describes the expectations and limitations for the Town Administrator in his/her capacity as the Town’s Chief Administrative Officer within the scope of authority delegated to him/her by the Town Board. 4.Ends Statements and Key Outcome Areas: This section describes the vision, direction, and key outcomes established by the Town Board. The first three sections all work together to implement the ends and key outcome areas established in this section. To further its accountability to the residents and taxpayers of the Town of Estes Park, the Board of Trustees adheres to the following principles of governance: 1.Ownership: The Board derives its authority from, and is accountable to, the “owners” of the Town – the residents and taxpayers of the Town – seeing its task as a servant leader to and for them. 2. Governance Position: With the ownership above it and operational matters below it, governance from the Town Board forms a distinct link in the chain of command and authority. The Board’s role is that of commander, not advisor. It exists to exercise that authority and properly empower others, rather than to be management’s consultant or adversary. The Trustees—not the staff—bears full and direct responsibility for the process and products of governance, just as it bears accountability for any authority and performance expectations delegated to others. 3. Board Holism: The Town Board makes authoritative decisions directed toward management and toward itself, its individual Trustees, and committees only as a total group. That is, Town Board authority is a group authority rather than a summation of individual authorities. 4.Board Means Policies: The Town Board defines, in writing, those behaviors, values added, practices, disciplines, and conduct of the Board itself and of the Board’s delegation/accountability relationship with its own subcomponents and with the management of the organization. These decisions are categorized as “Governance Process” and “Board /Staff Linkage” in the policies that follow. 2 5. Staff Limitations Policies: The Town Board makes decisions with respect to its staff’s means only in a proscriptive way (prohibiting those means that would be unacceptable, even if they work) in order to avoid prescribing. These decisions are categorized as “Staff Limitations” in the policies that follow. 6. Board Ends Policies: The Town Board defines, in writing, the ends statements and key outcome areas through its annual strategic planning process. This document describes the outcomes that the Town Board expects the organization to produce. These decisions are categorized as “Ends Statements and Key Outcome Areas” in the policies that follow. 7. Self-Enforcing: These policies are collectively adopted by Town Board and, as such, only the Board and individual members of the Board are responsible for compliance, both individually and collectively. 3 TOWN OF ESTES PARK GOVERNING POLICIES MANUAL Table of Contents Category 1. Governance Process Policy 1.0 Governance Commitment Policy 1.1 Governing Style Policy 1.2 Operating Principles Policy 1.3 Board Job Description Policy 1.4 Mayor’s Responsibility Policy 1.5 Board Appointed Committee Principles Policy 1.6 Board Liaison Roles Policy 1.7 Board Committee Principles Policy 1.8 Strategic Planning and Agendas Policy 1.9 Self-Monitoring of the Board 4 Policy Type: Governance Process Policy: 1.0 Policy Title: Governance Commitment Revised: 10/08/2024 Within the authority granted to it by Colorado Revised Statutes, the purpose of the Town of Estes Park Board of Trustees (the “Board”), on behalf of the residents of Town of Estes Park, is to see to it that the Town of Estes Park government 1) achieves results for residents at an acceptable cost and 2) avoids unacceptable actions and situations. 1.1 The Board of Trustees will approach its task with a style which emphasizes outward vision rather than an internal preoccupation, strategic leadership more than administrative detail, clear distinction of Board and staff roles, collective rather than individual decisions, future rather than past or present, and proactively rather than reactively. 1.2 The operating principles and commitments of the Board of Trustees, as it relates to the working relationship between the Trustees, staff and residents of the Town of Estes Park, are to emphasize fairness; responsibilities as elected officials; respect; honesty and integrity; and communication. 1.3 The job of the Board of Trustees is to make contributions which lead the Town Government toward the desired performance and to assure that it occurs. The Board’s specific contributions are unique to its trusteeship role and necessary for proper governance and management. 1.4 The responsibility of the Mayor is, primarily, to establish procedural integrity and representation of the Board of Trustees and the Town to outside parties (as delegated by the Board). 1.5 The Board of Trustees may establish committees to advise the Board in carrying out its responsibilities. Other than those statutorily required, all committees appointed by the Town of Estes Park Board of Trustees exist so that Board decisions (a) will be made from an informed position, and (b) will be made in a public forum consistent with Board policy. 1.6 The Board of Trustees may appoint an individual Trustee to serve as the official liaison of the Board to Town Boards and Commissions. The Board of Trustees may appoint an individual Trustee to serve as the official liaison to other community groups. 5 1.7 Board Committees, when used, will be assigned so as to reinforce the wholeness of the Board’s job and so as to never to interfere with delegation from the Board to Town Administrator. The purpose of Board Committees shall be to provide more in-depth discussion and information on the specific areas assigned to the Committee. Committees may not vote on or adopt policy, but may make recommendations to the Town Board for action. 1.8 The Town Board will prepare and follow an annual Strategic Plan that includes (1) a complete review of the Town’s Vision, Mission, Strategic Policy Statements, Goals, and Objectives and (2) opportunity for continuous improvement in Town Board performance through Town Board education, enriched input, and deliberation. 1.9 The Board of Trustees will systematically and rigorously monitor compliance with these adopted policies, both individual and collectively, to determine the extent to which policies are being followed. 6 Policy Type: Governance Process Policy: 1.1 Policy Title: Governing Style Revised: 10/08/2024 The Board of Trustees will approach its task with a style which emphasizes outward vision rather than an internal preoccupation, strategic leadership more than administrative detail, clear distinction of Board and staff roles, collective rather than individual decisions, future rather than past or present, and proactive rather than reactive. In this spirit: 1.1.1 The Board of Trustees will operate fully aware of its trusteeship and stewardship obligation to its constituents. 1.1.2 The Board of Trustees will conduct itself individually and collectively with whatever discipline is needed to govern with excellence through: 1.1.2.1 Being committed to matters such as policy-making principles, role clarification, speaking with one voice and self-policing of any tendency to stray from governance adopted in Board policies. 1.1.2.2 Individual Board members’ thorough preparation for meetings and regular attendance. 1.1.2.3 Continuation of Board development including orientation of new members in the Board’s governance process, participation in relevant continuing education, and periodic Board discussion of process improvement. 1.1.3 The Board of Trustees will direct the organization through the careful establishment of broad written policies reflecting the Board’s values and perspectives. The Board’s emphasis will be on impacts on the Town outside the organization, not on the administrative means. 1.1.4 The Board of Trustees, as trustee for and working with the residents of the Town of Estes Park, will be the primary initiator of policy, and will also be receptive to other policy initiatives from residents and staff. The Board, not the staff, will be responsible for Board performance as specified in the policy entitled Board Job Description. 1.1.5 The Board of Trustees will be accountable to the residents of the Town of Estes Park for competent, conscientious and effective accomplishment of its obligations as a body. It will allow no individual, committee, or entity to usurp this role or hinder this commitment. 7 1.1.6 The Board of Trustees will monitor and discuss the Board’s own process and performance, and ensure the continuity of its governance capability through continuing education and training. 1.1.7 A member of the Board of Trustees who votes in the minority is free to express his/her dissent, but will respect the process and legitimacy of the majority decision. 1.1.8 All Town Trustees will respect legitimacy of the opinions and reasoning of other Trustees when and after making board decisions. 1.1.9 All Town Trustees agree not to hold grudges or bring disagreements from past actions into future decisions. 1.1.10 A member of the Board of Trustees who, in their sole opinion, believes they have a conflict of interest or for any other reason believes that they cannot make a fair and impartial decision in a legislative or quasi-judicial decision, will recuse themselves from the discussion and decision. Any recusal will be made prior to any Board discussion of the issue. 1.1.11 Any Trustee may choose to abstain from voting on any question, at their sole discretion. If there is not conflict of interest or reason for recusal as outlined in 1.1.10, the Trustee may participate fully in Board discussions of the issue, yet abstain from voting, should they so choose. 8 Policy Type: Governance Process Policy: 1.2 Policy Title: Operating Principles Revised: 10/08/2024 The operating principles and commitments of the Board of Trustees, as it relates to the working relationship between the Trustees, staff, and residents of Town of Estes Park, are to emphasize fairness; responsibilities as elected officials; respect; honesty and integrity; and communication. As such, the Board shall adopt and comply with a Board Code of Conduct and associated Operating Principles. 9 Policy Type: Governance Process Policy: 1.3 Policy Title: Board Job Description Revised: 10/08/2024 The job of the Board of Trustees is to lead the Town Government toward the desired performance and to assume a good faith effort toward those objectives. The Board’s leadership is unique to its trusteeship role and necessary for proper governance and management. 1.3.1 The products of the Board shall be: 1.3.1.1 Linkage: As the Board of Trustees places a high value on open, participatory government, the board will produce the linkage between Town of Estes Park government and the residents of the town of Estes Park. A. Needs Assessment: The Board of Trustees will strive to identify the needs of the residents as they relate to Town of Estes Park’s activities and scope of influence, and shall translate such knowledge into written governing policies. B. Advocacy and Ambassadorship: The Board of Trustees will act as the representatives of the residents to the Town of Estes Park government, and shall take steps to inform and clarify: o the residents’ relationship with government, and o the organization’s focus on future results, and as well as present accomplishments. C. Communication: o Any Board member expressing a personal point of view on a matter of Town business must include language which states the views expressed do not represent the view of the Town, rather they are the official’s personal opinions, unless previously authorized to speak on behalf of the Board of Trustees, or when articulating a position official adopted by the Board of Trustees. o Board members should recognize that they may be legally liable for anything they write, present online, or say. 1.3.1.2 Written governing policies that, at the broadest levels, address each category of organizational decision. 10 A. Governance Process: Specification of how the Board of Trustees conceives, carries out, and monitors its own task. B. Staff Limitations: Constraints on staff authority which establish the prudent and ethical boundaries within which all Town Administrator and staff activity and decisions must take place. C. Board/Staff Linkage: How power is delegated and its proper use monitored; the role, authority and accountability of the Town Administrator and the Town Attorney. D. Outcomes: Organizational products, effects, benefits, to answer the questions for (what good, for which recipients, and at what cost?). 1.3.1.3 Assurance of: A. Town Administrator performance (in accordance with policies in 2A and 2B). B. Town Attorney performance (in accordance with policies in 2A and 2B). C. Municipal Judge performance. 1.3.1.4 Adopted resolutions, regulations, ordinances, and fee schedules; legislative positions; the Audit; the Budget; Boards and Commissions; and statutorily mandated items. 1.3.2 Role of Town Trustees 1.3.2.1 Representation: A. Providing leadership for the Town on behalf of the residents of Estes Park. B. Representing and acting in the best interest of residents of the Town of Estes Park. C. Being knowledgeable of issues, researching background information, attending regularly scheduled meetings, and acting as a resource for residents’ concerns. D. Serving as a conduit for information from residents to the Town Administrator and the Mayor in responding to questions and individual problems. 11 E. Finding a balanced approach for addressing competing interests among constituent groups to ensure the community is fairly represented. F. Representing the Board of Trustees on standing committees of the Town for the purpose of monitoring major Town activities and policy implementation. 1.3.2.2 Legislative A. Serving as the governing body of the Town and holding all legislative and corporate powers of the Town specifically granted or implied by statutory provisions and the Municipal Code. B. Enacting ordinances, resolutions, and policies for the governance of the Town of Estes Park and protecting the life, health and property of its citizens and visitors. C. Establishing policy for the direction of the Town Board and Town Staff. D. Establishing fiscal policy, financial targets, and budget goals for the Town government. E. Having final decision-making responsibilities over pertinent land use issues and application of development code requirements within the Town of Estes Park. 1.3.2.3 Quasi-Judicial A. Acting in a quasi-judicial manner in matters brought before it that relate to public hearings, appeals, land use, and liquor licensing. B. Making decisions concerning quasi-judicial matters based upon testimony presented at formal hearings which are normally conducted during regularly scheduled Town Board meetings. C. Not accepting nor seeking outside input or lobbying that attempts to influence their decision prior to the quasi-judicial Public Hearing. Any and all ex-parte communication shall be disclosed at the beginning of the hearing. Not doing so may cause a Trustee to be disqualified from the proceedings. 1.3.2.4 Communications 12 A. Following a formal decision, acting as a united body, not as individual Trustees, and acknowledging the decision of the Town Board. B. The Town Administrator is the sole point of contact for directions from Trustees, as policy makers, to Town Staff. Trustees may ask questions and request information from Town Staff, but shall not direct staff actions except through direction from a majority of the Board to the Town Administrator. C. Interacting with the media, governmental entities, the public or other bodies as individual Trustee and not as a representative of the majority of Trustees, unless an official position or legislative action has been established or authorized to do so. D. Communicating to the Mayor and other Trustees items of importance from their respective committees and providing information that may be necessary to keep other members aware of important Town activities or critical functions. E. In times of community emergency, it is important that the Town Board speak with one voice. The Mayor, or the Mayor Pro Tem, if the Mayor is not available, shall speak for the Board during an emergency. Other Trustees will refer all requests for information to the Mayor or Mayor Pro Tem. The Mayor will coordinate all communication with the incident commander and the Town Administrator. The purpose of this policy is not to restrict the communication of the Trustees or the Mayor, but to ensure all communication is timely, accurate, and is in concert with the incident response plan. 13 Policy Type: Governance Process Policy: 1.4 Policy Title: Mayor’s Responsibility Revised: 10/08/2024 The responsibility of the Mayor is, primarily, to establish procedural integrity and representation of the Board of Trustees and the Town to outside parties (as delegated by the Board). Accordingly: 1.4.1 The responsibility of the Mayor is to consistently guide the behavior of the Board with its own rules and those legitimately imposed upon it from outside the organization. 1.4.1.1 Meeting agendas and discussion content will be only those issues which, according to Board policy, clearly belong to the Board to decide, not the Town Administrator. 1.4.1.2 Deliberation will be fair, open, orderly and thorough, but also efficient, limited to time, and kept to the point. 1.4.2 The authority of the Mayor is to preside over meetings and to sign documents as authorized by the Board of Trustees and to preside over the evaluation of the Town Administrator by the Town Board. 1.4.3 The Mayor shall not act on behalf of the Town in any unilateral manner, except as approved by the Board of Trustees. This shall include any appointment of committee or board positions, making any financial or other binding obligations on behalf of the Town, or expressing the official position of the Town on any matter. 1.4.4 Representation 1.4.4.1 Provide leadership for the Town of Estes Park. 1.4.4.2 Serve as the primary representative of the Town of Estes Park in official and ceremonial functions. 1.4.4.3 Represent the Town in interaction with other government agencies. 1.4.4.4 Be the spokesperson for the Town unless the Town Board has decided otherwise. 14 1.4.4.5 Represent the Town Board as a liaison with the Town Administrator to promote the timely flow of information between the Town Board, Town Staff, and other governmental organizations. 1.4.4.6 Represent the Town on the Platte River Power Authority Board. 1.4.5 Enactment 1.4.5.1 Mayor in conjunction with the Town Board and Town Administrator enforces the ordinances and laws of the Town. 1.4.5.2 Signs all warrants (Estes Park Municipal Code Section 2.12.020). 1.4.5.3 Executes all ordinances and resolutions authorizing expenditure of money or the entering into a contract before they become valid. 1.4.5.4 Mayor, with Town Board approval, appoints members of committees and other entities that may be necessary from time to time for the effective governance of the Town. 1.4.5.5 Facilitating policies and procedures for the effective management of the Board, establishing Town goals in conjunction with the Town Board, promoting consensus, and enhancing Board performance. 1.4.6 The Mayor Pro Tem shall assume all duties of the Mayor in the Mayor’s absence (Estes Park Municipal Code Section 2.16.010). 1.4.7 Mayoral Appointments 1.4.7.1 Audit Committee – At the first regular meeting following the certification of the results of each biennial election, the Mayor shall appoint two (2) Trustees to the Audit Committee with the Mayor serving as the third member. In the event it is necessary to establish a specialist committee to review a matter between regularly scheduled Town Board meetings, the Mayor shall establish and appoint the members of the special committee (Estes Park Municipal Code Section 2.08.010). 1.4.7.2 Special Assignments – The Mayor may nominate Trustees to serve on committees, community groups, or in some other capacities as a representative of the Town. The Mayor shall present the nomination of any such appointments to the Board for approval at a regular town board meeting. The Mayor will make every effort to distribute special assignments equitably among the members of the Board. 1.4.7.3 Special Committees – Special committees may be established by the Board of Trustees. The Mayor shall appoint all members of any special committee 15 subject to the approval of the Board of Trustees (Estes Park Municipal Code Section 2.08.020). 1.4.8 Voting Privileges – The Mayor has full voting privileges for items coming before the Board of Trustees (Ordinance 04-16). 16 Policy Type: Governance Process Policy: 1.5 Policy Title: Board Appointed Committee Principles Revised: 10/08/2024 The Board of Trustees may establish committees to advise the Board in carrying out its responsibilities. For the purposes of this policy, the term “Committee” shall refer to any board, commission, task force, council, committee or any other volunteer group of residents. Other than those statutorily required, all committees appointed by the Town of Estes Park Board of Trustees exist so that Board decisions (a) will be made from an informed position, and (b) will be made in a public forum consistent with Board policy. Accordingly: 1.5.1 Committees which are appointed by the Board of Trustees. 1.5.1.1 It is the policy of the Board of Trustees to encourage resident involvement in Town affairs, as well as to avoid conflicts involving Trustees who serve on committees, boards, commissions and organizations. For these reasons, the Board has agreed that a Trustee shall serve only as a liaison to Town committees, commissions, and boards. 1.5.1.2 Other than those legislatively directed, committees may not speak or act for the Board of Trustees except when formally given such authority for specific and time-limited purposes. Expectations and authority will be carefully stated in order not to conflict with authority delegated to the staff. 1.5.1.3 Committees appointed by the board are to help the Board of Trustees do its job, not to help the staff do its job. Committees ordinarily will assist the Board by preparing policy alternatives and implications for Board deliberation. Committees are not created by the Board to advise staff. The Board understands that at times the Town Administrator or Town Staff may convene ad-hoc or ongoing advisory boards to serve as advisors for operational issues. These advisory groups are subject to the same limitations as Board appointed committees. 1.5.1.4 In keeping with the Board of Trustees’ broader focus, committees normally will not have direct dealings with current staff operations. Committees cannot exercise authority over staff. 1.5.1.5 Because the staff works for the Board, they will not be expected to obtain approval of a committee before taking action unless otherwise authorized by state statute, Board policy, or federal regulation. 17 1.5.1.6 Because of the differing nature of committees, some of which are defined by state statute, the Board shall have and keep current an operating policy defining the role of different committees and setting forth rules and procedures for Town of Estes Park committees (Operating Policy 102). 1.5.1.7 The authority and responsibility of any committee will not duplicate the authority or responsibility of: A. The Board of Trustees B. Town Staff C. Any other committee D. Town Auditor E. Town Attorney 1.5.1.8 All committees will undergo a regular sunset review, at least once every five years, unless otherwise provided for more frequently and according to a staggered schedule to be adopted separately by the Board of Trustees. 1.5.1.9 Said sunset review shall include a review of the Committee’s Mission Statement, and of the Board of Trustees’ charge to the Committee of their role, responsibility and authority. 1.5.2 Outside Committees: At times a Trustee may seek to serve or be asked to serve on an outside committee not appointed by the Board of Trustees. A Trustee may seek or be asked to serve on an outside committee in an official capacity representing the Board and the Town of Estes Park, or as an individual Board member, not as the official representative of the Town or the Board. 1.5.2.1 Official Representation A. No Trustee may represent the Town or the Board of Trustees or represent themselves as being an official representative or speak for the Town or the Board without have first been officially designated as the Town’s representative by the Board of Trustees at a regular meeting of the Board. B. The Mayor may nominate Trustees to serve on committees, community groups, or in some other capacities as a representative of the Town. The Mayor shall present the nomination of any such appointments to the Board for approval at a regular Town Board 18 meeting. The Mayor will make every effort to distribute special assignments equitably among the members of the Board. C. A Trustee serving on an outside committee shall not chair the outside committee, board, commission or organization (with the existing exception of the Platte River Power Authority Board) without prior approval of the full Board of Trustees. 1.5.2.2 Individual Representation A. Individual trustees have the right to participate as an individual in any outside group or committee. B. When participating as an individual Trustee, the Trustee should clearly express to the committee membership that he/she is there as an individual and does not speak for nor represent the Town of Estes Park or the Board of Trustees. C. When participating on any outside committee, Trustees should be cautious to avoid any real or perceived conflict of interest and any involvement that could compromise the role of the trustee in any quasi-judicial actions or other decisions. 19 Policy Type: Governance Process Policy: 1.6 Policy Title: Board Liaison Roles Revised: 10/08/2024 Trustees may serve as the official liaison of the Board to Town committees. The Board of Trustees may appoint an individual Trustee to serve as the official liaison to other community groups. 1.6.1 Appointment: The Mayor may nominate Trustees to serve as a Board Liaison. The Mayor shall present the nomination of any such appointments to the Board for approval at a regular Town Board meeting. The Mayor will make every effort to distribute special assignments equitably among the members of the Board. 1.6.2 Term: A Trustee shall serve as the Town Board Liaison solely at the pleasure of the Town Board, with no specific term limit. 1.6.3 Duties of a Liaison 1.6.3.1 Communicate with the committee when Board of Trustees communication is needed and to serve as the primary two-way communication channel between the Town Board and the committee or community group. 1.6.3.2 Review applications, interview candidates, and make recommendations to the Town Board for final approval. 1.6.3.3 Serve as the primary Trustee contact for the committee or community group. 1.6.3.4 Attend assigned committee or community group meetings when requested or whenever appropriate, in the opinion of the Trustee liaison. Trustee liaisons are not expected to attend every meeting of the committee or group. 1.6.3.5 The liaison is not a member of the committee and, when in attendance at a meeting, is there as an observer for the Board of Trustees and a resource for the committee. Participation in board discussions should be minimal and restricted to clarification of Town Board positions or collection of information to bring back to the full Town Board. 20 Policy Type: Governance Process Policy: 1.7 Policy Title: Board Committee Principles Revised: 10/08/2024 For the purpose of this policy, Board Committee is defined as a sub-committee of the Board of Trustees and membership is composed solely of Town Trustees. 1.7.1 Board Committees: The Board shall have the following Board Committees (Estes Park Municipal Code 2.08.010) 1.7.1.1Audit Committee: Responsible for supervising and working with the Town Auditors in the preparation of the Comprehensive Annual Financial Report and any other formal audits, as required. 1.7.2 Board Committees, when used, will be assigned so as to reinforce the wholeness of the Board’s job and so as to never to interfere with delegation from the Board to Town Administrator. The purpose of Board Committee’s shall be to provide more in-depth discussion and information on the specific areas assigned to the Committee. Committees may not adopt policy, but shall make recommendations to the Town Board for action. 1.7.3 The following principles shall guide the appointment and operation of all Town Board Committees: 1.7.3.1 Board Committees may not speak or act for the Board except when formally given such authority for specific and time limited purposes. Expectations and authority will be carefully stated in order not to conflict with authority delegated to the Town Administrator. 1.7.3.2 Board Committees cannot exercise authority over staff. Because the Town Administrator works for the full board, he or she will not be required to obtain approval of a Board, Committee, or Commission before an executive action. 1.7.3.3 Board committees shall consist of no more than 3 Trustees so that the committee is never a quorum of the Town Board. 21 Policy Type: Governance Process Policy: 1.8 Policy Title: Strategic Planning and Agendas Revised: 10/08/2024 The Town Board will prepare and follow an annual Strategic Plan that includes (1) a complete review of the Town’s Vision, Mission, Strategic Policy Statements, Goals, and Objectives and(2) opportunity for continuous improvement in Town Board performance through Town Board education, enriched input, and deliberation. Accordingly: 1.8.1 The Town Board annual strategic planning cycle will produce a Provisional Strategic Plan each year before July 1 so that administrative planning and budgeting can be based on the priorities articulated in that plan. 1.8.1.1 The cycle will start with the Town Board development of its strategic priorities for the next year. In April-May of each year, the Board will begin the strategic planning process by reviewing the Town’s Vision, Mission, and Strategic Policy Statements. 1.8.1.2 The Town Board will identify its strategic priorities to be addressed in the coming year, and will identify the information‐gathering necessary to fulfill its role. This may include consultations with selected groups in the ownership, other methods of gaining ownership input, governance education, and other education related to Goals issues (e.g. presentations by advocacy groups, demographers, other providers, and staff). 1.8.1.3 Town Staff will prepare recommended Goals and Objectives based on the Board’s stated priorities. Individual Board Members may also submit Goals and Objectives for consideration by the full Board. 1.8.2 Agendas shall be governed by Town Board Policy 105 (Agendas). 22 Policy Type: Governance Process Policy: 1.9 Policy Title: Self-Monitoring of the Board Revised: 10/08/2024 The Board of Trustees will systematically and rigorously monitor compliance with these adopted policies, both individual and collectively, to determine the extent to which policies are being followed. Accordingly: 1.9.1 The purpose of monitoring is simply to determine the degree to which Board policies are being met. Monitoring will be as automatic as possible, using a minimum of Board time so that meetings can focus on creating the future. 1.9.2 Self-monitoring of compliance with these policies will be completed by the Town Board twice a year, in August and February at a regularly scheduled Board Study Session. Monitoring shall be on an exception basis. A. The Town Administrator will notify the Board of the scheduled self- monitoring session a minimum of two weeks prior to the meeting. B. Each Board member should review the policy list in section 1.10.6 prior to the scheduled study session. C. Any Board member who has a concern about compliance with any of the policies listed in 1.10.6, or who wishes to discuss the content or interpretation of any of the policies, should notify the Mayor at least one week prior to the meeting. D. Discussion at the Study Session will be limited to those polices brought to the attention of the Mayor by a member of the Board. All other policies shall be deemed in compliance. 1.9.3 In every case, the Board of Trustees will judge whether (a) the interpretation is reasonable, and (b) whether data demonstrate accomplishment of, or compliance with, the Town Board’s interpretation. 1.9.4 In every case, the standard for compliance shall be “any reasonable Town Trustee’s individual interpretation” of the Board of Trustees’ policy being monitored however, the Board of Trustees is the final judge of reasonableness, and will always judge with a “reasonable person” test (what a reasonably prudent person would do in that context). Interpretations favored by individual board members do not constitute a “reasonable person” test. 23 1.9.5 Actions determined to be not compliant with a reasonable interpretation of Board of Trustees’ policies will be subject to a process agreed to by the Town Board. 1.9.6 Town Board Compliance Review Schedule Governing Policy Review Date 1.1 Governance Style (2)(5)-(11) Aug & Feb 1.3 Board Job Description 1.3.1.1.C Aug & Feb 1.3.1.3 Aug & Feb 1.3.2.3 Aug & Feb 1.3.2.4 Aug & Feb 1.4 Mayor’s Responsibility 1.4.1 Aug & Feb 1.4.3 Aug & Feb 1.4.4 Aug & Feb 1.4.7.2 Aug & Feb 1.5 Board Committee Principles 1.5.1 Aug & Feb 1.5.1.1 Aug & Feb 1.5.1.2 Aug & Feb 1.5.1.4 Aug & Feb 1.5.1.6 Aug & Feb 1.5.1.7 Aug & Feb 1.5.2 Aug & Feb 1.5.2.1 Aug & Feb 1.5.2.2(B)(C) Aug & Feb 1.6 Board Liaison Roles 1.6.1 Aug & Feb 1.6.3 Aug & Feb 1.7 Board Standing Committees 1.7.2 Aug & Feb 1.7.3 Aug & Feb 1.8 Annual Planning and Agendas 1.8.1 Aug & Feb Adopted Town Policies Review Date 103 Town Board Code of Conduct and Operating Principles Biannually – following Town Board Elections 107 Board Emails Annually March 24 TOWN OF ESTES PARK GOVERNING POLICIES MANUAL Table of Contents Category 2. Boad/Staff Linkage Policy 2.0 Governance – Management Connection Policy 2.1 Delegation to the Town Administrator Policy 2.2 Town Administrator Job Description Policy 2.3 Monitoring Town Administrator Performance Policy 2.4 Town Attorney 25 Policy Type: Board/Staff Linkage Policy: 2.0 Policy Title: Governance – Management Connection Revised: 10/08/2024 The Board of Trustees’ official link to the operation of departments of Town Government and staff is the Town Administrator. 2.1 The Board of Trustees’ job is generally confined to establishing the broadest policies; implementation and subsidiary decision making is delegated to the Town Administrator. 2.2 As the Board’s primary link to the operations of Town government, the Town Administrator’s performance will be considered to be synonymous with organizational performance (within the scope of the Town Administrator’s authority). 2.3 The Board of Trustees will systematically and rigorously monitor Town Administrator job performance to determine the extent to which goals are being achieved and whether operational activities fall within boundaries established in management limitations policies. 2.4 The Town Attorney represents the Board of Trustees as specified in the Estes Park Municipal Code 2.24.020 (3) and anyone acting on its behalf so long as they are not acting in conflict with the Board of Trustee or its policies. 26 Policy Type: Board/Staff Linkage Policy: 2.1 Policy Title: Delegation to the Town Administrator Revised: 10/08/2024 The Board of Trustees’ job is generally confined to establishing the broadest vision and policies. Implementation and subsidiary decision making is delegated to the Town Administrator as specified in the Estes Park Municipal Code 2.28. 2.1.1 Only decisions of the Board of Trustees, by majority vote, are binding on the Town Administrator. 2.1.2 With the exception of the Town Attorney and the Municipal Judge, the Town Administrator shall have line authority over all Town departments. This authority shall include supervision and control over day-to-day functions and management decisions required to carry out the objectives of the Board of Trustees. 2.1.3 The policies, goals, and objectives of the Board of Trustees direct the Town Administrator to achieve certain results; the policies permit the Town Administrator to act within acceptable boundaries of prudence and ethics. With respect to the policies, the Town Administrator is authorized to make all decisions, take all actions, and develop all activities as long as they are consistent with any reasonable interpretation of the policies of the Board of Trustees. 2.1.4 The Board of Trustees may change its policies, thereby shifting the boundary between Board and Town Administrator domains. Consequently, the Board may change the latitude of choice given to the Town Administrator, but so long as any particular delegation is in place, the Board will respect and support the Town Administrator’s choices. The Board will not allow the impression that the Town Administrator has violated policy when the Town Administrator supports an existing policy. 2.1.5 No individual member of the Board of Trustees has authority over the Town Administrator. Information may be requested by individual Board members, but if such request, in the Town Administrator’s judgment, requires a material amount of resources or is detrimental to other established priorities, the Town Administrator may ask for majority Board action on such a request. 2.1.6 It is understood that at times it may be in the best interest of the Town to waive or grant exceptions to adopted Board policy. The Town Administrator shall request Board approval for any policy waiver or exception prior to its implementation. 27 2.1.7 Should the Town Administrator deem it necessary to, or inadvertently, violate a Board policy, he or she shall promptly inform the Board of Trustees. Informing is simply to guarantee no violation may be intentionally kept from the Board, not to request approval. Board response, either approving or disapproving, does not exempt the Town Administrator from subsequent Board judgment of the action. 2.1.8 The following decisions shall be the responsibility of the Board of Trustees. Implementation and subsidiary decision making for all other items is delegated to the Town Administrator. 1. Establishment and approval of all Utility Rates. 2. Establishment and approval of Community Development Fees. 3. Establishment of purchasing approval limitations contained in the Town Procurement Policy. 4. Approval of any increase to staffing levels. The Town Administrator may approve positions funded by grants, which would not impose additional costs to the Town in excess of the grant funds, and any temporary positions for which existing budgeted funds are allocated. 5. All changes to the Town Budget as allocated and adopted by the Board of Trustees. 6. Any sale, purchase, or lease of real property. 7. Any changes to employee benefits. 8. Any issue that, in the opinion of the majority of the Board of Trustees, concerns a substantial policy determination and/or is of a controversial nature with the public that warrants Board involvement. 9. Approval of Intergovernmental Agreements, subject to the provisions of the Town Procurement Policy and Policy 1101 (Delegation of Contract Signature Authority). 10. Approval of any substantive change to the scope, design, development, or construction of any capital project. 28 Policy Type: Board/Staff Linkage Policy: 2.2 Policy Title: Town Administrator Job Description Revised: 10/08/2024 As the Board’s primary link to the operations of Town government, the Town Administrator’s performance will be considered to be synonymous with organizational performance (within the scope of the Town Administrator’s authority). The official job description for the Town Administrator shall be adopted by the Town Board and incorporated by reference in the Employment Agreement between the Town and the Town Administrator. The Town Administrator’s job contributions can be stated as performance in two areas: 2.2.1 Board outcomes are met and policies are followed. 2.2.2 Town government operates within the boundaries established in Governing Policies Category Three – Staff Limitations. 29 Policy Type: Board/Staff Linkage Policy: 2.3 Policy Title: Monitoring Town Administrator Performance Revised: 10/08/2024 The Board of Trustees will systematically and rigorously monitor Town Administrator job performance to determine the extent to which goals are being achieved and whether operational activities fall within boundaries established in management limitations policies. Monitoring Town Administrator performance is synonymous with monitoring organizational performance against Board policies and Staff Limitations. Any evaluation of Town Administrator performance, formal or informal, may be derived only from these monitoring criteria. Accordingly: 2.3.1 The purpose of monitoring is simply to determine the degree to which Board policies are being met. Information which does not do this will not be considered to be monitoring. Monitoring will be as automatic as possible, using a minimum of Board time so that meetings can focus on creating the future. 2.3.2 A given policy may be monitored in one or more of three ways: A. Internal Report: Disclosure of compliance information to the Board of Trustees from the Town Administrator. B. External Report: Discovery of compliance information by a disinterested party who is selected by and reports directly to the Board of Trustees. Such reports must assess executive performance only against policies of the Board, not those of the external party unless the Board has previously indicated that party’s opinion to be the standard. C. Direct Board Inspection: Discovery of compliance information by a Board member or the Board of Trustees as a whole. This is a Board inspection of documents, activities, or circumstances directed by the Board which allows a “prudent person” test of policy compliance. 2.3.3 In every case, the Board of Trustees will judge whether (a) the Town Administrator’s interpretation is reasonable, and (b) whether data demonstrate accomplishment of, or compliance with, the Town Administrator’s interpretation. 2.3.4 In every case, the standard for compliance shall be “any reasonable Town Administrator interpretation” of the Board of Trustees’ policy being monitored. However, the Board of Trustees is the final judge of reasonableness, and will always judge with a “reasonable person” test (what a reasonably prudent person 30 would do in that context). Interpretations favored by individual board members or by the Board of Trustees as a whole do not constitute a “reasonable person” test. 2.3.5 Actions determined to be not compliant with a reasonable interpretation of Board of Trustees’ policies will be subject to a remedial process agreed to by the Town Board. 2.3.6 The Board of Trustees will conduct an annual formal evaluation of the Town Administrator which will include a summary examination of the monitoring data acquired during that period. 2.3.7 Town Administrator Performance Expectations Review Schedule Governing Policy Type Frequency Date 3.1 Customer Service Internal Annually March 3.2 Treatment of Staff Internal Annually March 3.3 Financial Planning/Budgeting Internal Quarterly Apr., July, Oct., Jan. 3.4 Financial Condition and Activities Internal Annually March External Annually June 3.5 Asset Protection Internal Annually March 3.6 Emergency Town Administrator Backup and Replacement Internal Annually March 3.7 Emergency Preparedness Internal Annually April 3.8 Compensation and Benefits Internal Annually September 3.9 Communication and Support to the Board Internal Annually March 3.10 Capital Equipment and Improvements Internal Annually March 3.11 Quality of Life Internal Annually March 3.12 Internal Procedures Internal Annually July 3.13 Town Organizational Plan Internal Annually July 31 Policy Type: Board/Staff Linkage Policy: 2.4 Policy Title: Town Attorney Revised: 10/08/2024 The Town Attorney represents the Board of Trustees as specified in the Estes Park Municipal Code 2.24.020 (3) and anyone acting on its behalf so long as they are not acting in conflict with the Board of Trustee or its policies. 2.4.1 Ethical Obligation of Town Attorney 2.4.1.1 The Town Attorney at all times will be guided by, and subject to, the Colorado Rules of Professional Conduct for Attorneys and specifically Rule 1.13 Organization as Client. 2.4.2 Accountability of the Town Attorney 2.4.2.1 The Town Attorney shall report directly to the Town Board. The purpose of the Town Attorney is to ensure that the Board’s actions take place with competent and prudent legal counsel and representation. 2.4.2.2 The Town Attorney is accountable to the Board acting as a body, never to any individual Board member or group of members, nor to the Town Administrator. 2.4.2.3 If individual Board members request information or assistance without Board authorization, the Town Attorney may refuse such requests that require, in his/her opinion, an inappropriate amount of staff time or funds or is disruptive. In such a case, the requesting member may choose to bring the request to the Board. 2.4.2.4 Town Attorney accountability is for all resources, including personnel, under his or her control. Therefore, any accomplishments or violations due to actions of a subordinate of the Town Attorney are considered to be accomplishments or violations by the Town Attorney. 2.4.2.5 The Town Attorney may accomplish the “Job Products” of the position in any manner not imprudent, unethical, or in violation of the prohibitions listed below under “Limitations on Town Attorney Authority.” 2.4.2.6 The Town Attorney may use any reasonable interpretation of Board policies as they pertain to his/her authority and accountability. The Town 32 Attorney is authorized to establish all further policies, make all decisions, take all actions and develop all activities as long as they are consistent with any reasonable interpretation of the Board’s policies. 2.4.3 Job Products of the Town Attorney 2.4.3.1 Timely opinion on documents and contemplated decisions or actions of the Board, the Town Administrator or other Town Officials holding the authority to make such decisions. Requests to the Town Attorney to provide opinions about the wisdom of policy of decisions shall be discouraged. 2.4.3.2 Timely opinion on the legal ramifications of pending or actual laws, regulations, court decisions, and pending or threatened litigation. 2.4.3.3 Timely opinion on the legality or propriety under the law of the Board’s processes and/or pending or actual acts or omissions of any Trustee, Board, Committee, Commission, the Town Administrator, or any other Town employee or official. 2.4.3.4 Oversight of the Town Prosecutor. 2.4.3.5 When requested or appropriate, alternate language or action to achieve Board or Town Administrator intentions in a lawful manner. 2.4.3.6 Timely and thoughtful advice and recommendations on the range of legal options available. 2.4.3.7 The Town Attorney shall endeavor to provide professional advice based upon the law as determined by the Town Attorney and also other considerations as may be appropriate to the decision. The Town Attorney should refrain from influencing policy based upon the personal belief of the attorney. 2.4.3.8 Litigation: A. Advice regarding avoidance of litigation or settlement of potential litigation. B. Timely provision to the Board and the Town Administrator on the status of settlement negotiations and all threatened/actual litigation. C. Settlement of litigation, with authority as set forth in Policy 1101 – Delegation of Contract Signature Authority. 33 D. Diligent and competent representation of the Board, the Town, and the Town’s officer’s agents and employees in litigation. E. The Town may carry out its obligation to defend Town officials and employees from third party claims by using the services of the Town Attorney’s Office. The Town Attorney will be responsible for determining conflicts of interest in such defense and advise the Board and individuals involved. The Town Attorney may retain separate counsel to represent the Town, its individual officials, and/or employees. 2.4.3.9 Adequately brief the board on emerging legal issues and trends affecting the Town. 2.4.4 Limitations on Town Attorney Authority. The Town Attorney shall not: 2.4.4.1 Exercise authority over Town Administrator or staff. 2.4.4.2 Violate applicable codes of professional ethics and conduct. 2.4.4.3 Treat the public or staff in a disrespectful or unfair manner. 2.4.4.4 Incur expenditures or fiscal encumbrances beyond those authorized under Board Policy. 2.4.4.5 Unreasonably withhold information from the Town Administrator, nor shall the Town Attorney fail to cooperate with the Town Administrator in the performance of his/her official functions. 2.4.5 Evaluation of Town Attorney performance. 2.4.5.1 Town Attorney accountability is only for job expectations explicitly stated by the Board in this document. Consequently, the provisions herein are the sole basis of any subsequent evaluation of Town Attorney performance, though he or she may use any reasonable interpretation of the Board’s words. 2.4.5.2 The Board of Trustees will monitor the Town Attorney’s performance with respect to these expectations on a routine basis. 2.4.5.3 Any modification to the compensation paid the Town Attorney shall be as specified in the Estes Park Municipal Code, section 2.24.030. 34 TOWN OF ESTES PARK GOVERNING POLICIES MANUAL Table of Contents Category 3. Staff Limitations Policy 3.0 General Town Administrator Constraint Policy 3.1 Customer Service Policy 3.2 Treatment of Staff and Volunteers Policy 3.3 Financial Planning Policy 3.4 Financial Condition and Activities Policy 3.5 Asset Protection Policy 3.6 Emergency Town Administrator Backup and Replacement Policy 3.7 Emergency Preparedness Policy 3.8 Compensation and Benefits Policy 3.9 Communication and Support to the Board Policy 3.10 Capital Equipment and Improvements Programming Policy 3.11 Quality of Life Policy 3.12 Internal Operating Procedures Policy 3.13 Town Organizational Plan 35 Policy Type: Staff Limitations Policy: 3.0 Policy Title: General Town Administrator Constraint Revised: 10/08/2024 Within the scope of authority delegated to him/her by the Board of Trustees, the Town Administrator shall not cause nor allow any practice, activity, decision, or organizational circumstance that is either unlawful, imprudent, or in violation of commonly accepted business and professional ethics. 3.1 The quality of life in the Town of Estes Park depends upon the partnership between residents, elected officials, and Town employees. Therefore, within the scope of his/her authority, the Town Administrator shall not fail to ensure high standards regarding the treatment of our residents. 3.2 With respect to the treatment of paid and volunteer staff, the Town Administrator may not cause or allow conditions that are unsafe, unfair, or undignified. 3.3 With respect for strategic planning for projects, services, and activities with a fiscal impact, the Town Administrator may not jeopardize either the operational or fiscal integrity of Town government. 3.4 With respect to the actual, ongoing condition of the Town government’s financial health, the Town Administrator may not cause or allow the development of fiscal jeopardy or loss of budgeting integrity in accordance with Board Objectives. 3.5 Within the scope of his/her authority and given available resources, the Town Administrator shall not allow the Town’s assets to be unprotected, inadequately maintained, or unnecessarily risked. 3.6 In order to protect the Board from sudden loss of Town Administrator services, the Town Administrator may have no less than two other member(s) of the Town management team familiar with Board and Town Administrator issues and processes. 3.7 The Town Administrator shall have an Emergency Preparedness Process in place for the coordination of all emergency management partners (Federal, State, and local governments, voluntary disaster relief organizations, and the private sector) to meet basic human needs and restore essential government services following a disaster. 36 3.8 With respect to employment, compensation, and benefits to employees, consultants, contract workers, and volunteers, the Town Administrator shall not cause or allow jeopardy to fiscal integrity. 3.9 The Town Administrator shall not permit the Town Board to be uninformed or unsupported in its work. 3.10 With respect to planning for and reporting on Capital Equipment and Improvements Programs, the Town Administrator may not jeopardize either operational or fiscal integrity of the organization. 3.11 With respect to Town government's efforts to improve the quality of life for the community the Town Administrator shall not fail to plan for implementing policies of the Board regarding economic health, environmental responsibility, and community interests. 3.12 The Town Administrator will ensure that the Town has internal operating procedures to promote effective and efficient Town operations. 37 Policy Type: Staff Limitations Policy: 3.1 Policy Title: Customer Service Revised: 10/08/2024 The quality of life in The Town of Estes Park depends upon the partnership between residents, elected officials, and Town employees. Therefore, within the scope of his/her authority, the Town Administrator shall not fail to ensure high standards regarding the treatment of our residents. 3.1.1 The Town Administrator shall not fail to encourage the following basic attitudes in employees: 3.1.1.1 The residents of the Town of Estes Park deserve the best possible services and facilities given available resources. 3.1.1.2 Prompt action is provided to resolve problems or issues. “Prompt Action” shall be interpreted as: • Residents receive initial responses to a reported problem or issue, at a minimum acknowledging the receipt of the contact, within two business days of receipt. • The appropriate process required to resolve the problem is initiated within three business days of receipt, whenever possible. 3.1.1.3 Attention is paid to detail and quality service is provided that demonstrates a high level of professionalism. 3.1.1.4 Each employee represents excellence in public service. 3.1.1.5 Each employee is “the Town” in the eyes of the public. 3.1.2 The success of Town government depends upon the partnership between residents, elected officials, and Town employees. Accordingly, regarding the treatment of residents and customers, the Town Administrator shall not: 3.1.2.1 Fail to inform residents of their rights, including their right to due process, as they relate to the operations and responsibilities of the Town. 3.1.2.2 Ignore community opinion on relevant issues or make material decisions affecting the community in the absence of appropriate community input. 3.1.2.3 Allow the community to be uninformed (or informed in an untimely basis) about relevant decision-making processes and decisions. 38 3.1.2.4 Ignore problems or issues raised by the community, or fail to address them in a timely manner, where the Town Administrator has been delegated the authority to act (or to fail to inform the Board of issues where he/she may not have the authority to act). 3.1.2.5 Allow incompetent, disrespectful, or ineffective treatment from Town employees. 3.1.2.6 Unduly breach or disclose confidential information. 39 Policy Type: Staff Limitations Policy: 3.2 Policy Title: Treatment of Staff and Volunteers Revised: 10/08/2024 With respect to the treatment of paid staff and volunteers, the Town Administrator may not cause or allow conditions which are unsafe, unfair, or undignified. Accordingly, pertaining to paid staff within the scope of his/her authority, the Town Administrator shall not: 3.2.1 Operate without written personnel policies that clarify personnel rules for employees. 3.2.2 Fail to acquaint staff with their rights under the adopted personnel rules upon employment. 3.2.3 Fail to commit and adhere to the policies of Equal Employment Opportunity and Fair Labor Standards Act. 3.2.4 Fail to make reasonable efforts to provide a safe working environment for employees, volunteers, and residents utilizing Town services. 3.2.5 Operate without written volunteer policies that clarify the responsibilities of volunteers and of the Town for all volunteers. 40 Policy Type: Staff Limitations Policy: 3.3 Policy Title: Financial Planning Revised: 10/08/2024 With respect for strategic planning for projects, services, and activities with a fiscal impact, the Town Administrator may not jeopardize either the operational or fiscal integrity of Town government. Accordingly, the Town Administrator shall not allow budgeting which: 3.3.1 Deviates from statutory requirements. 3.3.2 Deviates materially from Board-stated priorities in its allocation among competing budgetary needs. 3.3.3 Contains inadequate information to enable credible projection of revenues and expenses, separation of capital and operational items, cash flow and subsequent audit trails, and disclosure of planning assumptions. 3.3.4 Plans the expenditure in any fiscal year of more funds than are conservatively projected to be received in that period, or which are otherwise available. 3.3.5 Reduces fund balances or reserves in any fund to a level below that established by the Town Board by adopted policy 3.3.6 Fails to maintain a Budget Contingency Plan capable of responding to significant shortfalls within the Town’s budget. 3.3.7 Fails to provide for an annual audit. 3.3.8 Fails to protect, within his or her ability to do so, the integrity of the current or future bond ratings of the Town. 3.3.9 Results in new positions to staffing levels without specific approval of the Town Board. The Town Administrator may approve positions funded by grants, which would not impose additional costs to the Town in addition to the grant funds, and any temporary positions for which existing budgeted funds are allocated. 41 Policy Type: Staff Limitations Policy: 3.4 Policy Title: Financial Condition and Activities Revised: 10/08/2024 With respect to the actual, ongoing condition of the Town government’s financial health, the Town Administrator may not cause or allow the development of fiscal jeopardy or loss of budgeting integrity in accordance with Board Objectives. Accordingly, the Town Administrator may not: 3.4.1 Expend more funds than are available. 3.4.2 Allow the General Fund and other fund balances to decline to a level below that established by the Town Board by adopted policy, unless otherwise authorized by the Board. 3.4.3 Allow cash to drop to a level below that established by the Town Board by adopted policy, unless otherwise authorized by the Board. 3.4.4 Allow payments or filings to be overdue or inaccurately filed. 3.4.5 Engage in any purchases wherein normally prudent protection has not been given against conflict of interest, and/or engage in purchasing practices in violation of state law or Town purchasing procedures. 3.4.6 Use any fund for a purpose other than for which the fund was established, unless otherwise authorized by the Town Board. 42 Policy Type: Staff Limitations Policy: 3.5 Policy Title: Asset Protection Revised: 10/08/2024 Within the scope of his/her authority and given available resources, the Town Administrator shall not allow the Town’s assets to be unprotected, inadequately maintained, or unnecessarily risked. Accordingly, he or she may not: 3.5.1 Fail to have in place a Risk Management program which insures against property losses and against liability losses to Board members, staff, and the Town of Estes Park to the amount legally obligated to pay, or allow the organization to be uninsured: 3.5.1.1 Against theft and casualty losses; 3.5.1.2 Against liability losses to Board members, staff and the Town itself in an amount equal to or greater than the average for comparable organizations; or 3.5.1.3 Against employee theft and dishonesty. 3.5.2 Subject plant, facilities, and/or equipment to improper wear and tear or insufficient maintenance (except normal deterioration and financial conditions beyond Town Administrator control). 3.5.3 Receive, process, or disburse funds under controls insufficient to meet the Board- appointed auditor’s standards. 3.5.4 Unnecessarily expose Town government, the Town Board, or staff to claims of liability. 3.5.5 Fail to protect intellectual property, information, and files from loss or significant damage. 3.5.6 Acquire, encumber, dispose, or contract for real property except as expressly permitted in Town policy. 3.5.7 Allow internal control standards to be less than those necessary to satisfy generally accepted accounting/auditing standards, recognizing that the cost of internal control should not exceed the benefits expected to be derived. 43 Policy Type: Staff Limitations Policy: 3.6 Policy Title: Emergency Town Administrator Backup and Replacement Revised: 10/08/2024 In order to protect the Board from sudden loss of Town Administrator services, the Town Administrator may have no fewer than two (2) other members of the Town management team familiar with Board of Town Trustees and Town Administrator issues and processes. 3.6.1 The Deputy Town Administrator shall act in the capacity of Town Administrator in his/her absence. In the absence of the Town Administrator and Deputy Town Administrator a Town Department Director previously designated by the Town Administrator will act in the capacity of Town Administrator. 3.6.2 The Town Administrator shall provide the necessary training needed to enable successful emergency replacement. 44 Policy Type: Staff Limitations Policy: 3.7 Policy Title: Emergency Preparedness Revised: 10/08/2024 The Town Administrator shall have an Emergency Preparedness Process in place for coordination of all emergency management partners (Federal, State, and local governments, voluntary disaster relief organizations, and the private sector) to meet basic human needs and restore essential government services following a disaster. 3.7.1 The Town Administrator shall be responsible for the assigned responsibilities identified in the Town of Estes Park Emergency Operations Plan. 3.7.2 The Town Administrator shall not fail to have a business continuity plan for the Town. 3.7.3 In the event of an emergency, the Town Administrator shall not fail to take appropriate action immediately to ensure the safety of the public, and public and private assets, including authorizing specific actions by Town staff and declaring an emergency on behalf of the Board of Town Trustees in accordance with the Estes Park Municipal Code. 45 Policy Type: Staff Limitations Policy: 3.8 Policy Title: Compensation and Benefits Revised: 10/08/2024 With respect to employment, compensation, and benefits to employees, consultants, contract workers, and volunteers, the Town Administrator shall not cause or allow jeopardy to fiscal integrity of the Town. Accordingly, pertaining to paid workers, he or she may not: 3.8.1 Change his or her own compensation and benefits. 3.8.2 Promise or imply permanent or guaranteed employment. 3.8.3 Establish current compensation and benefits which deviate materially for the regional or professional market for the skills employed. 3.8.4 Establish deferred or long-term compensation and benefits without approval of the Town Board. 46 Policy Type: Staff Limitations Policy: 3.9 Policy Title: Communication and Support to the Board Revised: 10/08/2024 The Town Administrator shall not permit the Town Board to be uninformed or unsupported in its work. Accordingly, he or she may not: 3.9.1 Let the Town Board be unaware of relevant trends, anticipated adverse media coverage, material external and internal changes, and particularly changes in the assumptions upon which any Board policy has been previously established. 3.9.2 Fail to submit monitoring data required by the Board (see Policy 2.3 – Monitoring Town Administrator Performance) in a timely, accurate and understandable fashion, directly addressing provisions of Board policies being monitored. 3.9.3 Fail to establish a process that brings to the Town Board as many staff and external points of view, issues, and options as needed for informed Board choices on major policy issues. 3.9.4 Present information in unnecessarily complex or lengthy form. 3.9.5 Fail to provide support for official Town Board activities or communications. 3.9.6 Fail to deal with the Town Board as a whole, except when fulfilling individual requests for information. 3.9.7 Fail to report in a timely manner any actual or anticipated noncompliance with any policy of the Town Board. 47 Policy Type: Staff Limitations Policy: 3.10 Policy Title: Capital Equipment and Improvements Programming Revised: 10/08/2024 With respect to planning for and reporting on capital equipment and improvements programs, the Town Administrator may not jeopardize either operational or fiscal integrity of the organization. Accordingly, he or she may not allow the development of a capital program which: 3.10.1 Deviates materially from the Town Board’s stated priorities. 3.10.2 Plans the expenditure in any fiscal period of more funds than are conservatively projected to be available during that period. 3.10.3 Contains too little detail to enable accurate separation of capital and operational start-up items, cash flow requirements, and subsequent audit trail. 3.10.4 Fails to project on-going operating, maintenance, and replacement/perpetuation expenses. 3.10.5 Fails to provide regular reporting on the status of the budget and on the progress of each active project, including data such as changes and the financial status of each project, including expenditures to date. 48 Policy Type: Staff Limitations Policy: 3.11 Policy Title: Quality of Life Revised: 10/08/2024 With respect to Town government's efforts to improve the quality of life for the community, the Town Administrator shall not fail to plan for implementing policies of the Board regarding economic health, environmental responsibility, and community interests. 49 Policy Type: Staff Limitations Policy: 3.12 Policy Title: Internal Operating Procedures Revised: 10/08/2024 The Town Administrator will ensure that the Town has internal operating procedures to promote effective and efficient Town operations. 50 Policy Type: Staff Limitations Policy: 3.13 Policy Title: Town Organizational Plan Revised: 10/08/2024 With respect to internal organizational structure of the Town, the Town Administrator will maintain a current organizational plan (organizational chart) of the Town, in a graphical format through the division level. The Town Administrator will update the plan annually. The current plan shall be included in the Annual Comprehensive Financial Report each year and presented to the Town Board at the first regular meeting following the certification of the results of each biennial election. 51 TOWN OF ESTES PARK GOVERNING POLICIES MANUAL Table of Contents Category 4. Ends Statements Policy 4.0 Ends Statements and Key Outcome Areas 52 Policy Type: Board Ends Statements Policy: 4.0 Policy Title: Ends Statements and Key Outcome Areas Revised: 10/08/2024 The Town Board agrees on its Ends Statements and Key Outcome Areas through the annual strategic planning process. The Board will review its Ends Statements and Key Outcome Areas annually. The Board’s Ends Statements and Key Outcome Areas are: 4.1 Exceptional Community Services: Estes Park is an exceptionally vibrant, diverse, inclusive, and active mountain community in which to live, work, and play, with housing available for all segments in our community. 4.2 Governmental Services and Internal Support: We provide high-quality support for all municipal services. 4.3 Outstanding Guest Services: We are a preferred Colorado mountain destination providing an exceptional guest experience. 4.4 Public Safety, Health, and Environment: Estes Park is a safe place to live, work, and visit within our extraordinary natural environment. 4.5 Robust Economy: We have a diverse, healthy, year-round economy. 4.6 Town Financial Health: We will maintain a strong and sustainable financial condition, balancing expenditures with available revenues, including adequate cash reserves for future needs and unanticipated emergencies. 4.7 Transportation: We have safe, efficient, and well-maintained multimodal transportation systems for pedestrians, cyclists, motorists, and transit riders. 4.8 Utility Infrastructure: We have reliable, efficient, and up-to-date utility infrastructure serving our community and customers. 53 UTILITIES Report To: Honorable Mayor Hall Board of Trustees Through: Town Administrator Machalek From: Utilities Director Bergsten; Customer Experience Manager Smith Superintendent Lockhart; Date: October 10, 2024 RE: Notification of intent to apply for Broadband Equity, Access and Deployment (BEAD) Grant funding $1.5M to $2M Match, Unfunded Objective: Our objective is to be good stewards of public resources by submitting a grant application for the Broadband Equity, Access, and Deployment (BEAD) grant. The funds will be used to provide high-quality, reliable Trailblazer Broadband services for the benefit of our residents, guests, and employees in the grant-eligible areas within Power and Communication’s service area. Present Situation: To support Platte River Power Authority’s virtual power plant 1, and provide modern broadband internet service for our customers, P&C (Power and Communications) will build fiber optic infrastructure throughout the P&C electric service area. P&C has built fiber out to 90% of our electric customers. The remaining 10% is are the highest construction cost per customer location and the lowest revenue density, i.e., few customers per mile of fiber optic infrastructure. The Infrastructure Investment and Jobs Act (IIJA) allocated $42.45 billion to the Telecommunications and Information Administration (NTIA) for the Broadband Equity, Access, and Deployment (BEAD) Program. The BEAD program 2 grant helps fund 1 A virtual power plant consists of distributed energy resources such as electric vehicles, air conditioning, thermal electric storage, and utility scale batteries for microgrids- that can be controlled through the internet with advanced software to provide capacity and energy services to the grid, much like a conventional power plant. These resources can be located within customer premises and can be owned by: customers, the owner communities, Platte River or third parties. While virtual power plants are an emerging resource and still in development, they offer many promising solutions including the ability to maximize the use of intermittent renewable energy resources. 2 The Broadband Equity, Access, and Deployment (BEAD) grant program is a federal initiative aimed at expanding high-speed internet access in underserved and rural areas. Administered by the National Telecommunications and Information Administration (NTIA). The program allocates significant funding to states who then support business activities that deploy broadband infrastructure, thereby enhancing digital equity, and improving internet accessibility. infrastructure projects to areas that are typically the highest construction cost per customer location and the lowest revenue density. Colorado was awarded $826.5 million in funding, distributed as sub-grants through the Colorado Broadband Office (CBO), a Governor’s Office of Information Technology division. The CBO’s Advance- BEAD sub-grant applications are due Oct 28, 2024, 11:59 PM. There are a few barriers associated with a successful grant application. Required Cash Match The BEAD grant has a 25% cash match requirement. Trailblazer Broadband does not have the required matching funds. Staff is developing the project cost estimate for the remaining 10%, and at this time, the estimate is $6 to $8M, which will require a grant match of $1.5 to $ 2 M. When writing this report, the staff has not identified the source of matching funds. Project Area Requirements Under the BEAD program, the State and Federal goal aims to provide service to 99% of households, focusing on unserved and underserved areas. However, implementing projects in the defined BEAD project areas presents challenges beyond high costs. The project area challenges include: 1. Geographical Barriers: Most pre-determined project areas encompassing our original build locations have existing service points that are unfeasible for fiber connections due to distance, access issues, and challenging terrain. For instance, serving remote locations like those in National Forest areas between Allenspark and Highway 36, including locations east of Big Elk Meadows, or Rocky Mountain National Park locations off Bear Lake Rd, Moraine Park, Endo Valley Rd & Wild Basin requires overcoming significant logistical hurdles. 2. Infrastructure Limitations: The grant requires all applicants to provide internet access to all Broadband Service Locations (BSLs) in any given pre-defined project area included in their proposed application. Some of these service points fall outside the existing P&C infrastructure limits. This necessitates the construction of new infrastructure to as many locations as possible and/or provide alternative solutions for locations within these geographical areas. A good example of these challenges lies within one pre-defined project area, which requires us to serve a location just north of Brainard Lake near Ward, CO., if we accept the grant to fund fiber optic construction to our existing P&C electric customer on Bunce School Road. Staff is actively collaborating with consultants and the Colorado Broadband Office (CBO) to identify viable alternatives for internet service provision within the constraints of the BEAD program requirements. The two best options staff sees at this time include: 1. Partnerships with neighboring providers in adjacent service locations that can help extend coverage to underserved areas without duplicating infrastructure efforts and; 2. Recommend satellite equipment and service to those extremely remote locations. Staff will collaborate with consultant and the CBO to identify viable alternatives for internet service provision within the constraints of the BEAD program requirements. Proposal: Staff will provide funding options for the Board’s consideration at a future Board meeting. Advantages: •Securing BEAD grant funding would allow Trailblazer Broadband to extend high- quality, reliable internet service to the remaining 10% of customers in the most challenging and costly areas to serve. •The grant would support Platte River Power Authority's virtual power plant, which requires modern internet services behind customers’ meters. •The grant would help Trailblazer maintain its high-value and low-cost service plan. Disadvantages: •The required $1.5-2 million cash match is currently unfunded and would require identifying a funding source. However, this investment would leverage $4.5-6 million in grant funding, providing a 3:1 return. •Some extremely remote service locations present significant logistical challenges for fiber deployment. However, exploring alternative solutions like satellite service would allow the town to meet grant requirements while still focusing fiber deployment on more feasible areas. •It is a lot of work; however, we will include project management support in our grant application. Action Recommended: With a positive indication tonight from the Board staff will continue to work on the BEAD grant application. At the next board meeting staff will request the Board’s approval of the BEAD application, along with financial commitment and possibly designation of signature authority. Finance/Resource Impact: 502-7001-580.35-66, Fiber Optic Install Current Impact: $1.5 - $2 million cash match commitment from source(s) yet to be identified to fund $6-8 million total project cost Level of Public Interest High interest is expected, as this project would expand broadband access to currently unserved and underserved areas of the P&C service area. Residents and businesses in these rural areas Attachments 1.Presentation Attachments: 1. Please list all attachments to the memo in the order they should be attached. Broadband Grant Opportunity Notification of intent to apply for Broadband Equity, Access and Deployment (BEAD) Grant funding $1.5M to $2M Match, Unfunded 10-8-2024 ● A financial barrier exists to meet our Town Board objective to complete the construction of Trailblazer Broadband system for customers in the electric service area. ● 90% of construction is complete and the remaining 10% is our highest-cost construction and lowest density of customer revenue. ● Capital construction bond funds were depleted early this year. BACKGROUND 1 2 ATTACHMENT 1 - PRESENTED AT MEETING 2024-10-08 ● 25% match and, possibly, some working capital ○ $1.5 to $2 million ■Documentation of the GAAP inventory costing method used will allow us to use existing inventory as match, reducing the amount required from other sources ● Give application signature authority to staff ● We need a Town Board head nod that we should apply for this grant THE ASK ● This is a competitive grant process ○ Funds are first allocated to “Priority Applications” ○ Any remaining funds go to “Other Last Mile Broadband Projects” ● There are risks ○ 10% Letter of Credit ○ Awards to other Broadband Providers to serve areas in our service area TRANSPARENCY - Expectations 3 4 ○Funds are first allocated to “Priority Applications” ■Applications that will all serve eligible locations within the state’s “Project Area” Our most competitive “Priority” grant application will include 7 state drawn project areas. OUR “PRIORITY” APPLICATION ○“Other Last-Mile Broadband Projects” ■Serving some eligible locations with the state’s “Project Area” This less competitive grant application will include 8 state drawn project areas OUR “Other” APPLICATION 5 6 ○Letter of Credit ■State will hold a Letter of credit for 10% of the total project cost. Risks ○ If a competitor submits and wins a grant because they will serve ALL locations of an area that includes our electric customers Risks DRAKE Storm Mountain Sleepy Hollow Park 7 8 ○ If a competitor submits and wins a grant because they will serve ALL locations of an area that includes our electric customers ○ Possibly erodes our viability/revenue Risks Included in our Priority Application P&C infrastructure serves BOTH the north and south sides of Big Thompson Our “Other” Application ○ We can’t serve all locations and still be competitive. Risks NOT in our Priority Application Poudre Valley REA service area Poudre Valley REA service area Loveland service area 9 10 ● 25% match and, possibly, some working capital ○ $1.5 to $2 million ■Documentation of the GAAP inventory costing method used will allow us to use existing inventory as match, reducing the amount required from other sources ● Give application signature authority to staff ● We need a Town Board head nod that we should apply for this grant THE ASK 11 <,?){bo �0 � RJ� ��,� �0� 0� �· � TOWN ADMINISTRATOR’S OFFICE Report To: Honorable Mayor Hall Board of Trustees From: Town Administrator Machalek Date: October 8, 2024 RE: Noise Ordinance Objective: Gather feedback from the Town Board sufficient to generate a draft of an updated noise ordinance. Present Situation: Over the past year, the Town has received feedback from members of the public expressing concerns with the current noise ordinance. Specific concerns include the lack of a quantitative decibel standard, the ability of the Town Engineer to issue permits for overnight construction work (instead of the Town Board), and the lack of enforcement of the unreasonable noise standard. In response to these concerns, the Town Board asked staff to explore options for making changes to the Town’s existing noise regulations. At the June 11, 2024 Study Session, the Board indicated continued support for a hybrid approach to noise enforcement, utilizing both an unreasonable noise standard and a decibel-based standard. The Board also supported moving the responsibility for approving permits for overnight construction work to the Town Board. There was no consensus at that meeting as to whether the Town’s own events should be subject to the provisions of the new ordinance, or whether they would continue to be exempted under the code. The Board continued discussion of an updated noise ordinance at the September 24, 2024 Study Session. The Board confirmed a desire to continue forward with an update to the Town’s noise regulations, and proceeded to have a wide-ranging conversation about the various components of an update. There appeared to be a slight preference from the Board for decibel limits that fall somewhere between the existing state limits and the Town’s prior decibel limits (2016). Proposal: The primary area where staff needs Town Board direction is in the setting of new decibel limits. Staff has developed the following recommendation for decibel limits based on the Board discussion at the September 24 Study Session: Zone 7:00 a.m. to next 10:00 p.m. 10:00 p.m. to next 7:00 a.m. Residential RE, E-1, E, R, R-1, R-2, RM 60 db(A) 55 db(A) Commercial A, A-1, CO, CD, O 65 db(A) 60 db(A) Industrial I-1, CH 80 db(A) 75 db(A) In addition to feedback on decibel limits, there are a number of areas where Board feedback would facilitate the efficient drafting of an updated ordinance: •Should noise be measured at the receiving property line, 25 feet from the property line, or some other distance? •Does the Board want to replace the blanket exception for “Town authorized or sponsored events including, but not limited to, parades, fireworks displays, concerts, and events at Stanley Park, Bond Park, or Performance Park”, with a requirement for annual approval of these exceptions by the Board? •Does the Board want to consider any changes to the exceptions contained in §8.06.040 of the Municipal Code? •Does the Board want to consider any changes to the regulation of outdoor amplified sound as set forth in §8.06.030 of the Municipal Code? •Does the Board want to establish a variance process that would allow the Board to consider case-by-case exceptions to the noise ordinance? •Does the Board want to establish an escalating fine structure for multiple tickets within a one-year period? •Does the Board want to create additional time-of-day limitations on waste collection? •Are there any other new provisions that the Board would like added to the existing noise ordinance? Finance/Resource Impact: Decibel-based enforcement would require an investment in both decimeters and training. Staff estimates that a new type-2 decibel meter costs between $2,000 and $3,000. The main resource impact associated with a decibel-based standard is training enforcement personnel on how to measure sound and testify to it, as well as the time spent enforcing. Based on information from the City and County of Denver, staff would expect at least a week of training on enforcement alone. Level of Public Interest High. Attachments 1. Decibel Level Comparison Chart 2. Presentation LeveLs of Noise In decibels (dB) PaiNfuL & DaNgerous Use hearing protection or avoid 140 Fireworks Gun shots Custom car stereos (at full volume) 130 Jackhammers Ambulances uNcomfortabLe Dangerous over 30 seconds 120 Jet planes (during take off) very LouD Dangerous over 30 minutes 110 Concerts (any genre of music) Car horns Sporting events 100 Snowmobiles MP3 players (at full volume) 90 Lawnmowers Power tools Blenders Hair dryers Over 85 dB for extended periods can cause permanent hearing loss. LouD 80 Alarm clocks 70 Traffic Vacuums moDerate 60 Normal conversation Dishwashers 50 Moderate rainfall soft 40 Quiet library 30 Whisper faiNt 20 Leaves rustling OctOber is NatiONal audiOlOgy awareNess MONth aNd NatiONal PrOtect yOur heariNg MONth American Academy of Audiology | 11730 Plaza America Drive, Suite 300, Reston, VA 20190 | 800-AAA-2336 | www.HowsYourHearing.org ©2009 American Academy of Audiology. All rights reserved. ATTACHMENT 1 ATTACHMENT 2 - PRESENTED AT MEETING 2024-10-08 Noise Ordinance Town Board Meeting 10/08/2024 Agenda Objective Current Direction Open Questions Decibel Limits Town Events Exceptions Amplified Sound Other Next Steps 1 2 Objective Gather feedback sufficient to generate a first draft of an updated noise ordinance. Current Direction Hybrid approach (include both decibel and unreasonable noise standards) Night work approvals move from Town Engineer to Town Board 3 4 Decibel Limits Support for limits between State limits and prior Town limits (2016) Support for expanded evening hours (weekends only?) Measured from receiving property line? 10:00 p.m. to next 7:00 a.m. 7:00 a.m. to next 10:00 pm Zone 55 db(A)60 db(A)Residential RE, E-1, E, R, R-1, R- 2, RM 60 db(A)65 db(A)Commercial A, A-1, CO, CD, O 75 db(A)80 db(A)Industrial I-1, CH Town Events Town authorized or sponsored events currently exempt from noise restrictions (Estes Park Municipal Code §8.06.040(4)). Retain blanket exemption? Require annual Board consideration of exemption? 5 6 Exceptions Any bell or chime from any building, clock, school or church. Any siren, whistle, or bell lawfully used by emergency vehicles or any other alarm system used in case of fire, collision, civil defense, police activity or other imminent danger. Aircraft which are operated in accordance with federal laws or regulations Town authorized or sponsored events including, but not limited to, parades, fireworks displays, concerts, and events at Stanley Park, Bond Park, or Performance Park. Exceptions Continued Any domestic power equipment, except as provided within this subsection, operated upon any residential, commercial, industrial or public place between 7:00 a.m. and 9:00 p.m. Any construction, maintenance, or repair activities between 7:00 a.m. and 9:00 p.m., or at other times as may be authorized under section 8.06.045. Activities directly connected with the abatement of an emergency. Noise from snow blowers, snow throwers and snow plows when operated with a muffler for the purpose of snow removal. Noise generated from golf course maintenance equipment. 7 8 Amplified Sound Outdoor amplified sound prohibited between the hours of 10:00 pm and 10:00 am (Estes Park Municipal Code §8.06.030). Hours expand on Friday and Saturday nights (allowed until 11:00 pm). Amplified outdoor sound also subject to overall noise ordinance. Any changes? Open Questions – Other Variance process other than night work? Escalation of fines for multiple tickets within a year? Time-of-day limitations on waste collection? Other changes desired? 9 10 Next Steps Staff will draft an updated noise ordinance; Board discuss draft noise ordinance at November 12 Regular Meeting; Final ordinance to Board for consideration on December 10. 11 PUBLIC COMMENT RECEIVED ON 10/7/2024 Board of Trustees Public Comment Name: Mark Guenther Stance on Item: For Agenda Item Title: Noise Ordinance. Public Comment: Good Day Town Officials. My name is Mark Guenther. I live at 421 Ridge View Lane. I have not followed previous discussions regarding a noise ordinance, so if my comments are redundant, I apologize. I strongly favor a noise ordinance like the one from Golden, Colorado. I have attached some details about their ordinance. Any number of cars, trucks and motorcycles can make a ruckus as they drive through town. Often, when attending the Cowboy Brad Dot Com sing-along, the music is drowned out by excessively loud vehicles. Moccasin Circle Drive seems to challenge drivers as they zoom over the crest of the hill and take the curves at well over the 20 and 15 mph posted speeds. Many of these vehicles have modified exhausts that we hear all hours of day and night. Whether cars, trucks, or motorcycles, the noise is disturbing. I believe a strong noise ordinance will improve the quality of Estes Park for residents and visitors. Thank you for hearing my comments. File Upload Please note, all information provided in this form is considered public record and will be included as permanent record for the item which it references. Files are limited to PDF or JPG. NEW CITY OF GOLDEN NOISE ORDINANCE 🔇 _ Golden Police Department.pdf 154.97KB 25 MB limit. Video files cannot be saved to the final packet and must be transcribed before submitting. NE W CITY OF GOLDEN NOISE ORDINANCE 🔇 We want to share with everyone the City of Goldens NEW noise ordinance. It was passed on January 25, 2022. Here are some key points from the new law: ⏲ Producing noise over set decibel sound levels is a violation depending on the time of day, property zoned area, and is measured at the edge of the property line. Residential Commercial Industrial Daytime Nighttime Daytime Nighttime Daytime Nighttime 7:00 AM - 10:00 PM 10:00 PM - 7:00 AM 7:00 AM - 10:00 PM 10:00 PM - 7:00 AM 7:00 AM - 10:00 PM 10:00 PM - 7:00 AM 55 dBA 50 dBA 65 dBA 60 dBA 80 dBA 75 dBA 🏡 Producing noise so loud it bothers someone inside their home is a violation, regardless of decibel sound levels, time of day, or zoned area. 🔊 There are new restrictions on amplified outdoor music. GOLDEN POLICE DEPARTMENT 🚙 It is a violation to operate a vehicle with an altered muffler or no muffler at all. 🎫 Any violation of the City’s new noise ordinance requires a MANDATORY court appearance if you are issued a citation. 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