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HomeMy WebLinkAboutMINUTES Town Board Budget Study Session 2025-10-03RECORD OF PROCEEDINGS Town ofEstes Park, Larimer County, Colorado, October 3, 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 3rd day of October, 2025. Board: Mayor Hall, Trustees Brown, Cenac, Hazelton, Igel, Lancaster, and Younglund Attending: Mayor Hall, Trustees Brown, Hazelton, Igel, Lancaster, and Younglund Also Attending: Town Administrator Machalek, Deputy Town Administrator Damweber, Finance Director Zimmerman, Directors Careccia, Fortini, Greear, Hinkle, Managers Bucci and Director/Town Clerk Williamson Absent: Mayor Pro Tem Cenac Mayor Hall called the meeting to order at 9:00 a.m. WORKFORCE HOUSING AND CHILDCARE Deputy Town Administrator stated there are two funds one for the Workforce Housing Regulatory Linkage Fee (WHRLF) with a budget of $810,000 and the Workforce Housing and Childcare Lodging Tax funds with a budget of $5.5 million. He noted the WHRLF has been obligated to the Estes Park Housing Authority for the purchase of Fall River Village for workforce housing. 6E funds for workforce housing would be transferred to the Estes Park Housing Authority at approximately 80% of the projected revenue, 20% to fund childcare initiatives, and the costs of the Workforce Housing and Childcare Manager's salary, benefits, and O&M for the program. Staff would complete within the base budget an update to policies, discuss with the Estes Park Housing Authority the expenditures related to the Housing Needs Assessment, including a discussion on senior and seasonal housing, evaluate with the Housing Authority interest rate buy-down programs, and assess seasonal housing with the Chamber and the Housing Authority. Board comments and questions were heard and summarized: questioned the process for providing WHRLF funds to the Housing Authority and how the transfer would be authorized; questioned how to quantify for the public the improvements that have been made through the funds such as number of childcare spots created and the number of workforce housing units available, and staff noted the creation of an impact report to be available April 2026; questioned the contingencies as funding mainly comes from sales tax base, to which staff stated the fund would rely on fund balance if there was a slowdown in the economy and reduce scope of work; noted that the ownership and operation of additional facilities would need to be a philosophical question; commented on a need for a reserve policy for the funds; and stated the impact report should address the impact of governmental entities purchasing sales tax generating properties to address workforce housing properties. COMMUNITY DEVELOPMENT Planning: The Estes Park Development Code rewrite would continue into 2026 with an anticipated completion and adoption at the end of 2026. Revenues are anticipated to decrease in 2026 with an expected decrease in development applications. O&M costs decrease with the majority of the work with the Development Code encumbered in 2025. Staff would work within the budget to complete the rewrite of the Development Code, review potential updates to Section 11.4 of the Development Code, and update the Town's public art policy. It was noted that the Water Coalition has funding to assist RECORD OF PROCEEDINGS Town Board Budget Study Session - October 3, 2025- Page 2 with the update to the wildlife map and corridor, however, the funding was not adequate to complete the effort. Building: The Town has adopted the 2021 International Building/Residential Codes and continues to contract with SafeBuilt to provide building-related services. Revenues are estimated at $500,000 for building permit fees with the Town retaining 10% with 90% paying for the services of SafeBuilt. Board comments and questions were heard and have been summarized: questioned the economic advantages of outsourcing the building services; questioned the quality control benchmarks and what other concerns are there with contracting the services versus hiring Town staff to complete the services; and larger projects allow for the contractor to bring in additional staff to assist with the project. Town Administrator stated contracting the building services provides a consistency in the cost, prevents an escalation of costs, eliminates the need to hire or fire staff based on the level of development, and the oversight remains fundamentally the same with a contractor. EVENTS & VISITOR SERVICES Visitor Services: Manager Bucci stated the budget includes funding to replace the carpet and restroom door replacement within the Visitor Center. Revenues have been budgeted at $50,000 in 2026 and include funds from the Rocky Mountain Conservancy from the sale of merchandise which assists in funding projects such as an interpretive program on wildlife. O&M remains flat with personnel increasing due to an increase in compensation and benefits for a total budget of $769,352. Not resourced in the proposed budget was the wrapping of the restroom stalls with local artwork in the Visitor Center restrooms. Board comments and questions were summarized: questioned if Visit Estes Park assist with the cost of operating the Visitor Center; questioned if the budget contains funds to mail out the visitor guides as there has been an increase of 42% in guides being handed out, and it was noted there were funds for mailing the guide, and a large number of guides are handed out by staff and the ambassadors due to the maps within the guide; and requested an explanation as to why the Town operates the Vistor Center rather than Visit Estes Park. Events: The division has budgeted expenses at $3.5 million and revenues of $946,200. Strategic Plan items resourced include a snowplow, gooseneck dump trailer with ramps, arena surefoot 10 sand footing, barn stall mats, and Rooftop Rodeo contracts. O&M increases in 2026 due to the facilities allocation. Staff would complete items within the base budget, including the development and implementation of an emergency and safety training program for all events and visitor team employees, infrastructure improvements at the O'Connor Pavilion, and improve the horse stalls in barns A-L and W by installing stall mats. Board comments and questions were summarized: questioned the life expectancy of the barn mats; questioned if the footing requires replacement annually, and it was noted the footing has been improved every five years; questioned the ratio of revenues to expenses of other facilities in comparable communities; questioned if Events provides in-kind facilities and/or support to non-town events; requested an annual report on the number of events, attendance, and possible fiscal impact of events; questioned the funding provided by Visit Estes Park for Town events, and it was noted they support the events, however, there could be more support. Director Hinkle stated Events has found a niche in providing facilities for dog shows and gymnastics events which require less set up, tear down, stay for a week, and generate additional sales tax for the Town versus labor intensive horse shows. He noted the only event that receives in-kind services continues to be Scotsfest. MUSEUM Director Fortini stated the division estimates revenues of $46,425 and expenditures of $744,841. The revenues have increased with the donation from the Friends of the Museum to support contracted positions. O&M has increased with the maintenance of the seven buildings and the facilities allocation. RECORD OF PROCEEDINGS Town Board Budget Study Session - October 3, 2025- Page 3 PUBLIC WORKS Parks: The budget has been proposed at $1.7 million with revenues of $35,000 for the maintenance and care of Mrs. Walsh's Garden. O&M decreases with a reduction in the facilities allocation, reduction with the completion of a number of trail maintenance projects, and the completion of planter refurbishment in 2025. Staff would complete the 2045 Parks Master Plan and begin planning for one of the major projects outlined in the plan for 2027. Conservation Trust Fund: The fund holds the Town's share of the lottery proceeds estimated at $41,000 in 2026 with expenditures of $10,000 for noxious weeds. The remainder of the revenues would be held for future acquisitions. Open Space Fund: The revenues of $550,000 are the Town's share of the 1% Larimer County Open Space tax. A number of large projects that were funded and begun in 2025 are planned to rollover into 2026. Mayor Hall called a break at 10:28 a.m. and reconvened the meeting at 10:40 a.m. Streets Operations: Streets division has proposed a budget of $1 .67 million with a decrease in O&M with some expenses shifting to the 1A Streets Fund for items such as stripping. The budget contains funds to address drainage improvements at the shop to improve safety during the winter months from ice build up due to improper drainage. Revenue from the Highway Users Trust Fund were estimated at $378,000 in 2026. The division would seek grant funding or pursue in-house resources to construct the Community Drive multi-use trail. Stormwater Operations and Improvements: The overall budget decreases in 2026 to $463,759 with a reduction in the facilities allocation and with the reduction in personnel with retirements and with being fully staffed with actual salaries established. The purchase of the new vac truck has reduced personnel costs, project costs, and the elimination of a number of expensive decision packages in 2026 to address stormwater projects. The vac truck could also be used by other departments such as Water to reduce the time it takes to address issues. Engineering: The proposed budget of $717,000 includes a reduction in O&M due to a decrease in facilities allocation and a reduction in professional services. The base budget contains funds to continue to evaluate the Downtown Estes Loop traffic flow and construct of the Visitor's Center parking and transit improvements if fully funded by SB267 grant funds. Trustee Igel questioned if the Downtown Parking Management Plan would be updated with the completion of the parking garage and the Downtown Estes Loop project. Street Improvement Fund - 1A Sales Tax: The budget contains $1.8 million in expenses to complete pothole patching, reconstruction of Old Ranger Drive, reconstruction of Old Man Mountain Lane reconstruction, and the reconstruction of 2nd Street. Revenues are estimated at $2.1 million in sales tax collection and no grants have been identified. Trails Improvement Fund: The budget of $557,072 would be used for trail expansion, maintenance, and improvement projects including the Community Drive multi-use trail at a cost of $450,000. Revenues have been budgeted at $571,390. The base budget outcomes would include the design of the multi-use trail on the south side of Moraine Avenue from Davis Street to Mary's Lake Road and seek construction grant funding. It was noted the Fall River Trail construction was budgeted for through the previous 1A sales tax that sunset in 2024 and funds have been rolled over each year until the Town can complete an IGA with CDOT and solicit bids for the project. Stormwater Improvement Fund: The new 1A sales tax for stormwater has budgeted $1.25 million in expenses with revenues budgeted at $1.28 million. It was noted there are a number of capital construction projects being considered; however, the RECORD OF PROCEEDINGS Town Board Budget Study Session - October 3, 2025- Page 4 approximately $1 million may not be used in 2026 and would remain as fund balance for future projects. The funds would be used to replace the Performance Park bridge in 2026. The Stormwater Engineer continues to work on developing the program utilizing the Stormwater Master Plan which contain projects such as bridge replacement, river channeling, flood mitigation, and drainage improvements. Transit Operations: The budget contains $959,908 in expenses for the operation of the shuttle system and $15,000 in sponsorship funds. The Town receive over $1.2 million in grant funds in 2025 and has applied for and anticipates grant funding in 2026. The division would implement the CMAQ funded pilot programs for regional transit services, expanded transit routes and micro-transit services in 2026 with grant funding awarded in 2025. Parking: The 2026 revenue has been based on the 2023 actual revenues of $859,750 and expenses of $793,791 which includes the addition of a .5 FTE for a Parking and Transit Assistant during the peak season. Expenses decreased significantly in 2026 with $628,000 in capital expense for the design of the Big Horn parking structure in 2025. An RFP was completed in 2025 and the Town was able to secure a contract with a third-party parking contractor that came in below budget. Staff would resource within the base budget the funding and construction of a 3-level parking structure at the Big Horn parking lot. Board discussion ensued on the addition of the .5 FTE with Trustee Igel expressing concern with the implications of growing the parking program based on the outdated Parking Management Plan and the negative impact the paid parking has on commerce downtown. Town Administrator Machalek stated the parking program would not be growing with the addition of the .5 FTE, but would assist with managing the current program currently in place. After further discussion by the Board, support was heard for the addition of the .5 FTE. UTIUTYFUND The Utilities Department contains Power and Communication with a proposed budget of $27.04 million and Water with a budget of $8.13 million which are enterprise funds that are funded by rates. The Power and Communications would continue to work on wildfire mitigation with the replacement of line with tree cable and intellirupters, support PRPA's clean energy transition, and investing in distribution system reliability. Capital projects in 2026 include the rebuild ofAcacia Drive and Concord Lane lines, 1A funded wildfire mitigation, and a number of rollover projects from 2025 such as grid hardening and the Trailblazer buildout funded by the BEAD grant. The Water division would complete work on the Water Master Plan and a rate study in 2026. No new projects have been included in the budget for 2026 in an effort to complete the current plan and study before making new commitments. Several 2025 projects would rollover to 2026 including the Mail Road looping, Prospect Mountain, and Carriage Hills and Spruce Knob water projects. Power and Communication Fund: The division's budget funds Power and Trailblazer Broadband at a proposed $27.04 million. The revenues and expenses remain fairly flat in 2026 with the exclusion of the grant funds received for project work. Personnel expenses did increase with the additional of staff to replace contractors and with the division becoming fully staffed. Items resourced within the base budget include identifying fundings for affordable Trailblazer program and completing the construction of the Trailblazer Broadband pending the BEAD grant funding. Water Fund: Revenues for the division are projected at $7.55 million with expenses of $8.13 million. Staff would implement an enforcement process for customers who do not comply with water administrative regulations related to unmetered water and blackflow prevention compliance in 2026. BUDGET SUMMARY Director Zimmerman reiterated the proposed 2026 budget contains $85.48 million and $88.45 million in expenses with a fund balance of $2.97 million. The ending fund balance for the General Fund has been projected at 26%, exceeding the fund balance requirements outlined in Finance Policy 660 of 25%. She noted ongoing expenditures RECORD OF PROCEEDINGS Town Board Budget Study Session - October 3, 2025- Page 5 do not exceed revenues and available fund balance and only one .5 FTE has been proposed in 2026. As noted previously, the budget establishes $1.5 million in the Community Reinvestment Fund for a new Police facility. Sales tax has been budgeted flat for 2026. The Capital Improvement Plan has been revised to $4 million in expenses for 2026 with a change to stormwater to $1.5 million from $250,000 and Community Drive North Trail to $450,000 from $750,000. The debt management philosophy has been pay as you go and try to capitalize on grant funding to complete projects. She noted the Town does not currently have general obligation debt; however, the Town has the ability to issue up to $95.8 million or up to 3% of the capital asset value. The Town's current outstanding debt as of December 2024 of $4.1 million for the parking garage, Event Center, and the radio leases. The Utilities funds has $32.5 million in debt for the Trailblazer Broadband, water projects, and radio lease. Medical insurance has now been projected to increase by 2% rather than the 5% included in the proposed budget with saving maintained as fund balance in the event the Town experiences an economic downturn in 2026. Director Zimmerman reviewed the GASB 75 requirement to allocate Post Employment Benefits paid to retirees to their home department rather than accounting for the expense in Human Resources. The budget hearings have been scheduled for October 28, 2025 and November 12, 2025. There being no further business, Mayor Hall adjourned the meeting at 12:23 p.m. ^.^-- ^->00 ^ -s'^r^ •I.S^a-^^. J9f61<ie Williamson, Town Clerk