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HomeMy WebLinkAboutMINUTES Town Board Study Session Budget Meeting 11-04-2003 Town of Estes Park, Larimer County, Colorado, November 4, 2003 Minutes of a Regular meeting of the TOWN BOARD BUDGET STUDY SESSION of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Municipal Building in said Town of Estes Park on the 4th day of November, 2003. Committee: Mayor Baudek, Trustees Barker, Doylen, Gillette, Habecker, Jeffrey-Clark, Newsom Attending: All Also Attending: Town Administrator Widmer, Assistant Town Administrator Repola, Finance Officer Brandjord, Directors Linnane and Kilsdonk, Mgr. Hinze, and Clerk O’Connor Absent: None Mayor Baudek called the meeting to order at 6:35 p.m. 2004 BUDGET PRESENTATION – ENTERPRISE FUND AND OTHER FUNDS. Assistant Town Administrator Repola reported that the first order of business is an overview of the funds carried over from the October 30th Budget Study Session. Ass’t. Administrator Repola and Finance Officer Brandjord presented the following funds, noting items of interest:  Conference Center. Staff expenses are no longer included in this fund due to changes in marketing, business development and now the CVB.  Conservation Trust. Lottery proceeds of $34,000 in 2004 are noted in this fund, and the budget includes $30,000 or SCADA, Ph. 4. Mayor Baudek requested all “phased” projects include the stage so as to advise the pace of the project.  Senior Center. With privatization of the food service, staff is continuing to see reduced costs. Interviews have concluded for the Sr. Ctr. Mgr. Position and a job offer is imminent. Discussion followed on a recent endowment of $200,000 and the Board requested assurance that a written policy on how the money will be controlled by Sr. Center, Inc. is in place. The food service contract will expire in August, 2004 and staff intends to renegotiate the term to place it in line with the budget process. Director Kilsdonk will confirm the status of a written policy and advise. Additionally, an asterisk is to be added to the copy machine line item.  Larimer County Open Space. $147,500 is budgeted for construction of the Knoll-Willows Trail Project.  Park Entrance Estates & Debt Service. This is the 8th year of a 10-yr project, and staff believes the debt will most likely be paid off in 2005.  Building Authority. This fund contains the debt service on the COPs for the Golf Course, and the debt should pay-off in 6 more years. Town Board Budget Study Session – November 4, 2003 – Page 2 LIGHT & POWER FUND.  The Ending Fund Balance (revised) is $1,225,931. Per the Financial Plan provided by Black & Veatch, the target fund balance is 25% of annual revenues. Discussion followed on the standard fund balance policy, with staff directed to provide the basis for same. Dir. Linnane reported on the Five-Year Financial Plan as prepared by Black & Veatch. In summary, an annual rate increase of 3.9% has been projected for 2005-2008, annual deficits are projected to cease in 2006, and the projected fund balance in 2008 is approximately $2,725,000. PRPA has planned a purchased power increase of 3.9% and the net affect of both increases is an +8% rate increase in 2004. Black & Veatch is scheduled to present the Financial Plan during the December 9th Town Board meeting.  Christmas Decoration Contract and Supplies. Discussion followed regarding performing this project in-house due to increased costs, with the issue being that the work need not necessarily be accomplished strictly with Light and Power Dept. personnel. Consensus: a cost-comparison be prepared between an in-house and private project prior to consideration of a new private contract, with the possibility of transitioning this project to in- house.  Capitol:  AS400 Upgrade  Annual radio automatic meter program (year 1 of 4)  Annual traffic signal paint project  Annual street light program  Annual conductor upgrade  Replace Jeep Wrangler  Automatic gate at Light and Power Storage Facility  Replace SCADA computers  Transformers  PRPA fiber optics project from Loveland to Estes Park (22 miles)  MacGregor Ranch underground project; this 1/3 cost-sharing project has been moved to 2006  With prior budget estimates, staff deleted $70,000 for the Annual Tree Trimming Project. Pursuant to revised figures, Dir. Linnane is requesting this item be included in the 2004 Budget. Consensus: Add the annual tree trimming project and deduct the automatic gate. Finance Officer Brandjord will provide the exact amount of interest being paid on bonds. WATER FUND.  Ending Fund Balance. There is a slight decrease in revenues primarily due to water conservation (drought). The 2.9% rate increase will continue through 2006 and the Financial Plan assumes additional increases through 2008 (Black & Veatch Financial Plan and Rate Study). The 2004 estimated ending fund balance of $1,225,900 exceeds the 2001 Black & Veatch projection by $122,000. The Fire Protection Transfer from the General Fund to the Water Fund has been deleted. Discussion followed on the standard fund balance policy, with staff directed to provide the basis for same. Town Board Budget Study Session – November 4, 2003 – Page 3  Capitol:  Security Equipment  Water Shop North Retaining Wall  Shop Office Space Addition  GIS Plotter  Plant Lab Equipment  Thunder Mountain Tank SCADA Upgrade  Fall River Corridor Pump, Tank, Water Line System Addition. This project will provide water service for outlying commercial properties.  Upper Broadview Water Line Replacement  Replace ¾ Ton Pickup Truck OTHER FUNDS.  Catastrophic Loss. Funds are set aside in this fund should the Town suffer a loss that is uninsured.  Medical Insurance. Major adjustments occurred in 2003 where employee contributions were increased. The 2004 Budget contains a 7.7% increase ($80,00); however this figure is not yet firm as the Employee Insurance Team continues to meet. An RFP process for a Benefits Consultant is underway, and this process is expected to save money to manage this fund.  Fleet Maintenance. Fund balance is carried in this fund, and an increase in fees paid by other dept. for services is budgeted to avoid dipping into the fund balance. Discussion included continual efforts to maintain a stable workforce. Consensus: staff was directed to search for methods to reduce the fund balance under $100,000.  Vehicle Replacement. The process was reviewed, and the intent with this fund is not to amass a large fund balance but to purchase vehicles in perpetuity.  Fire Pension. Town contributions with a State match maintains this fund. A new Actuary has been hired this year and he will meet with the Fire Pension Board and Firefighters in December. Should a Fire District be created, this fund will be closed and the firefighters will decide where the funds will be allocated.  Police Pension. This fund is due to one beneficiary.  FOSH (Friends of Stanley Hall). This fund balance will be depleted as performing arts funds are expended. DETERMINATIONS FOR THE 2004 BUDGET.  Liquor Occupation Tax. Appropriate fee. Consensus: approved. The Policy Manual will be revised and presented at a Town Board meeting.  Development Application Fees. Additional discussion followed on the proposed fee for variances regarding the possibility of staff and/or the Community Development Committee considering waiver requests. Trustee Barker commented on staff procedure and cited instances where a negative impact affected the applicant. Consensus: approved, including the 2-yr. implementation schedule. The Policy Manual will be revised and presented at a Town Board meeting. Town Board Budget Study Session – November 4, 2003 – Page 4  Community Services Funding:  Kreative Kids. Update: the application requested $5,000 in 2003 and 2004. However, the budgeted amount is $4,000 in 2003 and $5,000 in 2004.  School District. The application requested $2,000, and a letter dated 10/29 from Program Director Wahler states $3,000. Discussion followed concerning booking this funding request elsewhere (employee benefits), and returning the Partners funding request from funds allocated to Multicultural Connections. Consensus: appropriate $3,000 for the School District, $3,000 for Partners, and remove the 5% budget cut from the remaining funding levels.  Cardboard Recycling. Trustee Gillette reported that Waste Management has made a decision to undertake commercial cardboard recycling, and the program may be provided to the entire community. Consensus: based upon recent developments, the $17,000 funding request be deleted from the 2004 Budget. The Board commended Bruce Grant for bringing this project forward.  Advertising. The 2004 Budget was reduced by 5% and discussion followed on media buys and effectiveness in the market place. Consensus: return to the original 2004 funding level of $914,946.  June Rodeo Series. Special Events Mgr. Hinze reported that estimated expenses for a 2-week event are $40,000, and that income would be $18,000. Discussion followed on substitute events/opportunities and affects of inclement weather. Consensus: proceed with a 2-week June Rodeo Series, adding $40,000 in expenses and $18,000 in revenues, with the balance from the General Fund.  Elk Repellant Program. Director Linnane reported Ph. I was unsuccessful, and Phase II ($5,000) should be omitted from the budget.  Bond Park Project Design. Director Linnane provided background information and changes thereof, and stated this project ($20,000) should be omitted from the budget.  Sand Screen Rental. Director Linnane stated that the purchase price of this equipment well exceeds the payback ($70-80,000 v. $7,000 for rental), and that the sand is screened by Public Works personnel.  Museum Renovation. Ass’t. Repola reported that the renovation project needs an additional $71,000 for furnishings, equipment, etc. Consensus: staff submit a budget request when a needs list is refined. Completing the 2004 Budget review, Trustee Doylen complimented staff on the improved budget process/presentation. Mayor Baudek commented on the Town’s Webcam and potential opportunity for improvement with the implementation of the CVB. There being no further business, Mayor Baudek adjourned the meeting at 9:18 p.m. Vickie O’Connor, CMC, Town Clerk