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HomeMy WebLinkAboutMINUTES Town Board Budget Study Session 2025-09-18RECORD OF PROCEEDiNGS Town ofEstesPark, Larimer County, Colorado, September 18, 2025 Minutes of a Regular meeting of the TOWN BOARD BUDGET STUDY SESSION of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in said Town of Estes Park on the 18th day of September, 2025. Board: Mayor Hall, Mayor Pro Tem Cenac, Trustees Brown, Hazelton, Igel, Lancaster and Younglund Attending: Mayor Hall, Trustees Brown, Hazelton, Igel and Younglund Also Attending: Town Administrator Machalek, Deputy Town Administrator Damweber, Finance Director Zimmerman, Director Fetherston, Chief Stewart, Managers Garcia and Schlichtemier, and Director/Town Clerk Williamson Absent: Mayor Pro Tem Cenac and Trustee Lancaster Mayor Hall called the meeting to order at 9:02 a.m. 2026 BUDGET PRESENTATION Town Administrator Machalek stated the proposed budget has revenues projected at $85.5 million, expenses of $88.4 million, and a fund balance used for capital of $2.97 million. The budget process was conducted as it has been in years past. The proposed budget remains structurally balanced with flat sales tax projected and expenditures, and savings used to pay for capital projects. The budget implements the Town Board's strategic plan and continues to meet the General Fund targeted fund balance of 25%. Director Zimmerman reinforced the proposed 2026 budget remains structurally balanced, and noted fund balance has been used for one-time expenses rather than ongoing expenses. She stated $1.5 million has been added to the Community Reinvestment Fund for the new police facility. Staff projected the ongoing revenues to be positive at the end of 2026. Departments submitted 48 decision packages for consideration, 23 approved, 21 as one-time funding, and 25 as on-going expenditures. The General Fund revenues are supported by a 4% sales tax making up 93% of the annual revenue. The additional 1% sales tax approved by the voters in 2024 supports wildfire mitigation, trails extension, street improvement, stormwater, and Power and Communications. Sales tax revenue has been budgeted at the 2023 level and remains a conservative estimate. The proposed budget includes the addition of a .5 FTE for a seasonal Parking and Transit Assistant to be funded through the Parking Services fund. 2026 transfers within the proposed budget include $1.35 million from Power and Communication to the General Fund, $120,000 from Water to the General Fund, $3.08 million from the General Fund to the Community Reinvestment Fund and $336,000 from the General Fund to the Facility Internal Services Fund. Town Administrator Machalek stated the proposed transfer from Power and Communication remains flat in 2026 due to the budgetary pressures and due to the Town coming into alignment with the other Platte River Power Authority communities of approximately 7% of revenues. He further noted the need to reinvest these funds into the utility, reduce the need for rate increases, and the need to have a policy level discussion with the Board on if 7% or a flat amount would be appropriate moving forward. CAPJTAL IMPROVEMENT PLAN 2027-2032 The Capital Improvement Plan (CIP) was developed by the departments submitting projects, the Town Board completing and setting a strategic plan, development of operating budget, project prioritization, and the final adoption of the CIP by the Town RECORD OF PROCEEDINGS Town Board Budget Study Session - September 18, 2025- Page 2 Board. The CIP annual summary for 2026 has been presented with $3.52 million in projects with a number of 2025 projects projected to rollover to 2026. COMPENSATION AND BENEFITS Director Williamson stated the annual compensation survey was conducted by Graves Consulting LLC. The 2025 market study proposes adjustments to the pay families as follows: Labor & Trade - 2%, Technical & Professional - 3%, Public Safety - 4%, Lineworker - 4%, and Management - 2%. The budget also includes a 2% merit pool to move employees through the pay range. Staff worked with the Town's insurance broker Brown and Brown to review the Town's benefit package for 2026. She noted the budget process was taking place earlier than in past years, therefore, the numbers presented are estimates, especially for medical, and would be finalized by the next budget study session. The budget proposal contained a 5% increase for medical in 2026 for both the Town and employee premiums. Spousal medical coverage would remain the same for 2026 with the inclusion of spouses that do not have access to employer coverage. Dental and vision insurance premiums would increase 10% in 2026. All other benefits remain unchanged at the time of the meeting. PERA has increased employer contributions from 14.81% to 15.8% in 2026 and would be reflected in the Mission Squared contributions for the Police and Management funds. Human Resources completed a benefit analysis and concluded the Town's voluntary life offering was low, therefore, the voluntary life would be increased from $100,000 to $500,000 in 2026. GENERAL FUND. Each fund was reviewed and requests for additional information was noted: Legislative: The expenses for 2026 decreased largely due to a significant decrease in the facilities allocation. Full benefits have been budgeted with the potential of up to three new Board members. Judicial: No service proposals were requested for 2026. The revenues and expenses remain flat for 2026. Judge Thrower has not requested an increase to his contract for 2026. Town Clerk: The O&M budget realized a decrease in the facilities fee in 2026 while the personnel costs increase in 2026 with full staffing. A service proposal to begin the digitization of Community Development files was included. Revenues for business, vacation home and liquor licensing remain largely flat in 2026. Strategic outcomes resourced in the base budget would include a review of term limits for all Town- appointed boards, evaluate the use of Laserfiche for policy management, and continue to evaluate the permanent financial records for digitization and storage in Laserfiche. Human Resources/Employee Benefits: The Town entered into a few leases with local residents to support transitional housing. The revenue and expense of the lease were moved from Facilities to Human Resources in 2025. The personnel costs increase with the proposed market adjustments and increase to benefits. The O&M budget fluctuates significantly from year-to-year based on the benefits and programs employees elect, such as the homeownership program, retiree benefits, dependent care, etc. Staff would complete a revision to the organizational culture survey and complete the survey during the 4th quarter of 2026, and streamline and automate recruitment and onboarding process through the new HRIS system. Staff would bring back a clear understanding of how the retiree funds have been used and allocated at the next budget meeting. Executive: The fund supports the activities of the Town Administrator's office which provides direction and ensures the efficient operations of Town departments, manages public information and risk management. The budget reflects a decrease in O&M due to the facilities allocation and a decrease in the plastic bag fee collected. Service proposals to be completed within the base budget included the follow-up recommendations from the Senior Needs Assessment completed in 2025, exploring options to improve the website, utilizing County resources to develop a Climate Action RECORD OF PROCEEDINGS Town Board Budget Study Session - September 18, 2025- Page 3 Plan, identify opportunities to support eclectic mix of businesses, and evaluate the expansion of Town Hall hours through schedule changes to align with customer and business needs. Town Attorney: The department's O&M budget contains a significant budget for special counsel and would be utilized when needed for specific projects. A discussion ensued on the use of Special Counsel White during absences, illness, or vacation; questioned the Board's ability to select a general counsel; whether a law firm should be utilized; should the Board have additional counsel available in the absence of Town Attorney Kramer; and should the Town review how the Board has structured the legal department. Trustee Igel requested a discussion at a future study session to discuss the issue. Trustee Brown cautioned the Board in selecting special counsel as they may not be well versed in selecting counsel. Mayor Hall called a break at 10:50 a.m. and reconvened the meeting at 11:00 a.m. Finance: Staff stated the new Enterprise Resource Planning (ERP) system would go live in January 2026 with efficiencies gained. Expenses decrease and personnel costs increase with the market and benefit increases in 2026. The new remodel of Finance supports the efforts of centralized reception for the Town. In 2026, the department would resource within the base budget training for the new ERP, revise the purchasing policies, and revise the grant policy to create a framework for grant applications, evaluation, approval, and reporting. COMMUNITY REINVESTMENT FUND The revenues for 2026 would include $3.08 million from the General Fund and minor interest. At the time of the presentation no grants have been awarded or included in the 2026 budget. The proposed expenses of $3.14 million would fund debt service and capital projects. WILDFIRE MITIGATION The fund was created with the approval of the 1A sales tax in 2024 to provide funding for wildfire mitigation. The revenues and expenses of $411,401 remains flat for 2026 due to sale tax being budgeted flat. VEHICLE REPLACEMENT The internal services fund supports the replacement of vehicles and has budgeted $239,088 in replacements for 2026. The fund would purchase vehicles such as police, utility carts, and a parking management vehicle. FLEET MAINTENANCE The internal services fund supports the maintenance, fuel, and equipment needs for the Town's fleet as well as the maintenance for the Fires District's apparatus and vehicles as outlined in the IGA between the two entities. In 2025, the Town billed the Fire District for 289 hours and the 2026 budget contains billing of 350 hours. The strategic plan items resourced in the 2026 budget include the fleet telematics and fleet radio replacements. The increase in O&M was due to a grant in 2025. Personnel costs increase with the increase in benefits and compensation. FACILITIES The internal services fund has a total budget of $1.77 million in 2026. The fund maintains 96 town owned facilities with janitorial services outsourced and facility maintenance managed by staff. The public trash and recycling cost would move to Parks Fund in 2026. Project management has shifted from Public Works to Internal Service in 2025 with Facilities funding 80% of the position. Grant Specialist has shifted to Internal Services in 2025 from Public Works; however, funding of the position has been allocated to the Open Space Fund, Trails Expansion Fund, and the Engineering Fund. Strategic Plan items funded in 2026 include fire and life safety maintenance and upgrades, new police facility design and survey, new carpeting in the Visitor Center lobby, and public restroom door replacement in the Visitor Center. Revenues largely come from charges for services and other revenues from transfers. Life cycle RECORD OF PROCEEDINGS Town Board Budget Study Session - September 18, 2025- Page 4 improvements for building of approximately $215,000 would be funded in 2026. A proposed $300,000 has been budgeted for emergency repairs as needed. INFORMATION SYSTEM TECHNOLOGY The total budget has been proposed at $1.26 million to fund network and systems administration, technical support, security, application management, and procurement of equipment. The budget would fund network, security and media updates, cameras, access control and panic button updates, phone system replacement, and board room upgrades. Overall budget decreases in 2026 with a decrease in O&M costs and limiting capital expenditures. RISK MANAGEMENT The fund accumulates to pay for the property and liability coverages, including building a reserve to cover unanticipated claims and deductibles. The Town added cyber security coverage two (2) years ago which the Town had to use this past year. The proposed 2026 budget has been budgeted at $711,732. It was noted that insurance premiums continue to increase and due to the Town's experience with claims for wind and hail damage. POLICE The Police Department contains four funds for Operations, Communications, Records and Restorative Justice, and Code Enforcement for a total budget of $8.56 million in 2026. Strategic Plan items resourced in 2026 include replacement of radio communications and vehicle fleet alignment to provide each officer with their own vehicle. It was noted that no grants have been included in the revenue estimates for 2026; however, staff continues to evaluate and apply for appropriate grants. Charge for services are the revenues from billable events such as Frozen Dead Guys. Personnel costs increase in 2026 with the full staffing and increase to compensation, benefits, and retirement costs. Board comments and questions have been summarized: noted the importance of outlining the cost and advantages to the department to participate in County events; stated the overtime costs appear to decrease even with the Town's participation in County events; concern was raised in the community related to the cancellation of the Scotsfest parade due to the cost being bore by the organizer for services and barricades. It was noted the Town pays for Town Police Officers base pay and overtime to provide services at Scotsfest in lieu of providing direct funding to the event; and discussion ensued on the benefits of providing each Police Office with a vehicle, and the benefits were outlined which included recruitment. EMERGENCY RESPONSE COMMUNICATION The fund expired in June 2024 with the sunsetting of the initial 1A sales tax. The current fund balance would be spent down until the fund has been exhausted. The $246,415 budgeted would be used to purchase new radios for the Police Department for both vehicles and handheld devices. The current radios have reached the end of service and are not being maintained by Motorola moving forward. OUTSIDE ENTITY FUNDING REQUESTS Management Analyst Simpson reviewed the budget to include base funding and community initiative funding with the removal of event funding in 2026 and the inclusion of the Estes Park Senior Center for base funding. Outside entity funding for 2026 has been recommended at $322,000, with Town Administrator Machalek noting the funding has been maintained for the entities at the 2025 level due to a loss of grant funding by many of the entities in 2026. He further stated these entities provide services the Town does not through other departments and provides the critical services to the community without the Town creating additional infrastructure. Community initiative funding has been reduced in 2026 to $20,000, and it was noted less applications were received this year. Board comments and questions were heard and summarized: stated concern with Town sales tax being allocated to fund other entities; questioned the thought process on maintaining base funding; noted the challenges Salud faces with funding and maintaining services and questioned if the Town would request funds be returned if the RECORD OF PROCEEDINGS Town Board Budget Study Session - September 18, 2025- Page 5 entity closes; questioned what qualifiers are used for the recommendations forwarded by staff for community initiative funding; noted the Chamber and the Nonprofit Center could collaborate to provide support for businesses and nonprofits in 2026; the Board stated interest in maintaining oversite of the fund. Town Administrator Machalek stated support for the Fire District to consider a sales tax to fund the operations moving forward. The 7% of sales tax currently allocated to the District through an IGA could be used by the Town to fund the debt service for a new Police facility once the District has an alternate funding mechanism. Base Funding Entity Crossroads Ministry of EP Estes Arts District Estes Chamber of Commerce/EDWC Estes Nonprofit Network Estes Park Senior Citizens Center, Inc. Estes Valley Crisis Advocates Estes Valley Investment in Childhood Success Estes Valley Watershed Coalition Estes Valley Saud Foundation Via Mobility Services TOTAL 2025 Funded $40,000 $21,000 $65,000 $25,000 N/A $29,000 $30,000 $25,000 $30,000 $37,000 $302,000 2026 Request $45,000 $46,000 $65,000 $50,000 $45,000 $34,000 $40,000 $30,000 $50,000 $37,000 $442,000 2026 Recommendation $40,000 $21,000 $65,000 $25,000 $20,000 $29,000 $30,000 $25,000 $30,000 $37,000 $322,000 Community Initiative Funding Entity Estes Land Stewardship Association Habitat for Humanity of the St. Vrain Valley Larimer County Partners League of Women Voters of Estes Park: Community Recycling Committee Pet Association of Estes Park Estes Park Learning Place Estes Park Sister Cities Friends of Colorado Avalanche Information Center Stanley Home Museum and Education Center TOTAL 2025 Funded 2026 Request $3,500 $10,000 $5,000 $9,000 $7,000 $10,080 $10,000 $5,526 $7,880 $67,986 2026 Recommendation $2,813 $2,025 $5,000 $5,175 $2,075 $2,813 $2,500 $250 $250 $20,000 The next Budget Study Session is scheduled October 3, 2025 at 9:00 a.m. There being no further business, Mayor Hall adjourned the meeting at 1:06 p.m. ^J^<>_*.0 . ^ ^ _ ^ kie Williamson, Town Clerk