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HomeMy WebLinkAboutMINUTES Town Board Budget Study Session 2018-10-12 Town of Estes Park, Larimer County, Colorado, October 12, 2018 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 12th day of October, 2018. Board: Mayor Jirsa, Trustees Bangs, Cenac, Martchink, Norris, Walker and Zornes Attending: All Also Attending: Town Administrator Lancaster, Assistant Town Administrator Machalek, Finance Director Hudson, Chief Kufeld, Directors Bergsten, Hinkle, Hunt and Muhonen, Managers Fraundorf and McEachern and Director/Town Clerk Williamson Absent: None Mayor Jirsa called the meeting to order at 8:30 a.m. 2018 BUDGET PRESENTATION Finance Director Hudson reviewed the budget process for 2018 and the adoption process. The Town Board has adopted a 20% fund balance for the General Fund which drove the development of the 2019 budget. Each department developed the proposed 2019 budget with a base budget and submitted service proposals for new or changing staffing, programming, projects, etc. The leadership team reviewed all service proposals submitted from each department and ranked and reviewed each with a town- wide budget perspective. Town Administrator Lancaster reviewed the jointly developed recommendations and has presented the Board with a final draft budget for the Board’s consideration. A number of service proposals were not funded due to limited resources. Sales tax continues to be projected at 3% for the remainder of 2018 and the 2019 draft budget contains a 5% growth rate projection. The 2019 budget includes a 3% merit pool, no significant accounting changes, major projects have been budgeted in total, remaining budget balance for incomplete capital projects and select operating projects have been rolled over with an earlier budget amendment, and contains funds for the Fall River Trail grant of $400,000. EMPLOYEE COMPENSATION & BENEFITS Eric Marburger and Laurie Graves/EMS Consulting Services were hired to complete the market salary survey for 2019. After review of the market adjustments for the six market pay families, staff recommended the following adjustments: Admin – 3.2%, T&P – 2.5%, PS – 2.8%, LTSC – 1.8%, MGMT – 1.7%, and Lineworker 2.9%. Pay ranges would be adjusted and employees would see an increase to their pay based on the pay family during the first full paycheck in 2019. In addition, a 3% merit pool has been included for 2019. The Insurance Committee meet with the Town’s benefit broker Hays Companies to review the Town’s benefit package and concluded no significant changes would be proposed. The proposed budget includes a 5% increase to the medical coverage and 4% increase for dental. All other benefits remain the same for 2019 with no increases in cost to the Town or the employees. Staff would continue to review the medical premium increase and determine a final cost for 2019 once the quote from the reinsurance company has been received. The Town has experienced a couple of low claim years and has a healthy medical fund reserve. It is highly anticipated the Town may implement the current premiums with no cost increase in 2019. INTERNAL SERVICES FUNDS Town Board Budget Study Session – October 12, 2018– Page 2 FLEET MAINTENANCE Manager McEachern reviewed the scope of the division led by a Master ASE certified fleet supervisor to maintain and repair all Town-owned equipment and Estes Valley Fire District vehicles and equipment. Staff also assists with specifying and purchasing all new vehicles and equipment. The 2019 proposals include funds to redesign the current Water shop for the relocation of Fleet services, purchase of a new tire balancer, and the purchase of a vehicle diagnostic scanner. Revenues include charges for service to all departments with vehicles and equipment. Expenses, personnel costs, and operations and maintenance increase slightly in 2019. No capital purchases in 2019. VEHICLE REPLACEMENT The fund accumulates reserves for the systematic replacement of vehicles and equipment. The fund contains 122 units varying replacement costs and depreciation tables between 6 – 20 years. 2018 was the first year since the 2013 flood in which the fund has been fully funded. A service proposal was included for a new police vehicle at a cost of $64,000. The fund would replace 7 units in 2019. RISK MANAGEMENT Assistant Town Administrator presented the new internal services fund to accumulate funds to pay for property and liability coverages, including building a reserve to cover unanticipated claims and deductibles. The proposed budget contains the property and liability premiums from CIRSA and $15,000 for small claims and deductibles at a cost of $273,947. INFORMATION SYSTEMS TECHNOLOGY Manager Fraundorf stated the IT fund allocates costs to each department based on the number of computers and other devices. The 2019 budget includes an additional IT Support Specialist I, which would allow the current staff time to address the ongoing and growing security issues. The overall cost of the department increases with the addition of the new staff to $838,198, however, O&M remains flat. IT capital expenses would include the purchase of a Finance server and 2 general purpose servers. LIGHT AND POWER Director Bergsten outlined the 2019 budget revenues of $17.2 million are less than the proposed expenses of $17.9 million due to expenditures for large projects to be completed in 2019. The projects ensure the system maintains power quality, reliability, environmental stewardship, and cost consciousness. The 2019 service proposals include a reel trailer, vacuum trailer, side-by-side ATV, smart fuses (trip savers and intelliruptors), automated meter reading improvements, Skinner Road line rebuild, and Ski Road line rebuild. Revenues and expenses are budgeted to decrease in 2019 from the 2018 revised budget. The bond payment for the Marys Lake Substation and various distribution improvements have been budgeted at $450,213 and $1.772 million to the General fund. WATER The Water fund would experience the same situation as Light and Power in 2019 with revenues less than the proposed $8.3 million in expenses to address infrastructure improvements to the system. Service proposals included in the proposed budget were the remodeling of the Brook Drive buildings in order to relocate the Water shop, replace laboratory data management software systems and selected lab equipment, SCADA VHF repeater and radios, new water service truck, excavator trailer, valve exercising trailer, Big Horn Drive and Aspen Avenue water main replacements and Phase III of the water main replacement in the Reclamation area, parking garage line connection, and Spruce Drive water main replacement. O&M remains flat for 2019 and includes enhancements to cross connection control program and valve exercising program. The Water division has budgeted $3.3 million in capital to address improvements to the system as outlined in the service proposals, preliminary Loop project work, and Glacier Plant intake structural design. Director Bergsten stated in order to ensure reliable service the Town needs to have a redundant water service through remodeling of the Glacier Water Treatment Plant at an estimated cost of $33 million. Town Board Budget Study Session – October 12, 2018– Page 3 GENERAL FUND. Each fund was reviewed and requests for additional information was noted: Executive: A service proposal for an employee engagement survey was proposed and not funded. Personnel expenses remain flat and O&M expenses increase in 2019 with half the cost of SDIC training and the other half covered by the individual departments. Legislative: A proposed service proposal would create a new fee waiver subsidy pool for the Board to use when developers request fee waivers for development costs. Overall expenses for the fund increase with an increase in benefit costs and IT costs. Judicial: No service proposals were requested for 2019. The newly appointed Municipal Judge Thrower reviewed and updated the municipal fine schedule. Municipal court fines have been allocated as revenue for the first time in 2019 and estimated at $5,000. Expenses increase with the addition of a prosecutor in 2018. Personnel costs decrease with the judge, assistant judge and prosecutor moving to contract services which increases O&M. Administrative Services: A service proposal to reduce the business license fees by 50% was modified to 25% and included in the proposed budget, decreasing revenues by approximately $73,400. The overall expenses decrease in 2019 with the completion of and implementation of Laserfiche. Employee Benefits: Staff continues to address the Town’s benefit package to ensure the highest quality benefits are provided in consideration of the Town’s budget. In 2019, services proposals were funded to include an increase to the home ownership program by $5,000 for each participant and to create a new childcare assistance program to provide matching funds. The home ownership program was developed in 2005 as a 5- year program to help fund down payments. The initial funding provided the employee with up to $15,000 after the 5-years with the employee setting aside $95 per payroll. The Town has since seen a significant increase in the cost of housing, therefore, staff recommended an increase in funding to $20,000. A sub-group of staff met to discuss childcare and how the Town struggles to maintain working families due to the lack and cost of childcare. The childcare assistance program addresses the cost by providing matching funds to an employee’s dependent care account, i.e. a dollar for dollar match up to the $5,000 federal limit. A third service proposal was not funded which would have provided each employee with a membership to the Community Center as a wellness benefit. Mayor Jirsa called a break at 10:00 a.m. and reconvened the meeting at 10:05 a.m. COMMUNITY DEVELOPMENT Planning: Service proposals for the 2019 budget included funding a new Comprehensive Plan to be completed in the next 2 years, and a new Planning Technician. Staff had further proposed the addition of a Planner I which was not included in the budget. Revenues in 2019 increase with additional funding from Larimer County to fund half of the Comprehensive Plan cost. O&M expenses and Personnel costs increase with the addition of contract services for the Comprehensive Plan and contract services for development review assistance. Building Safety: The 2019 budget reflects little change as the Town and Larimer County continue to discuss merging the building divisions. The division has operated the second half of the year with 50% of the staff in anticipation of the merge; however, the County has required additional information not available by the Town’s current software. This has delayed the potential merger. The Town has therefore concluded the need to fill the Chief Building Official and Building Permit Technician positions. The Town and the County would continue further examination of combining the divisions to provide high level customer service. No service proposals were considered for 2019. COMMUNITY SERVICES Visitor Services: Manager Salerno stated the Town has seen a significant increase in visitation from 250,000 in 2006 to over 400,000 in 2018 to date. The Town manages Town Board Budget Study Session – October 12, 2018– Page 4 the facility with 5.74 FTEs and 60 volunteers. In order to address the growing visitation staff submitted a service proposal to restore a full-time position and to add one part-time seasonal staff. Additional services proposals included in the 2019 budget were to replace the main doors and replace the current call center workstations. Revenues are projected to increase in 2019 with the sale of Estes Park logo items. Events: The division has budgeted expenses at $2.3 million and revenues of $728,650 which are approximately at 2018 levels. The division proposed the conversion of 2 part- time workers to a full-time Events Maintenance Worker in 2019. Several service proposals were requested and not funded for 2019, including paving, outdoor lighting and signage at the Events complex, and additional seasonal staff. Revenues remain flat for 2019. Overall expenses in 2019 decrease with no expected capital. POLICE Chief Kufeld reviewed the departments scope of services which cover activities in patrol, communications, and community services. The department requested service proposals to add an additional Police Officer as outlined in the 2018 staffing assessment, a patrol car for the new officer, and the addition of Police psychologist services. Service proposals requested and not funded included a second Police officer and patrol car. He stated the revenues decrease in 2019 partly due to the elimination of providing fingerprinting services to the community. The state has mandated all fingerprinting be completed electronically by a third party as of October 2018. Parking ticket revenues have been moved to Public Works for 2019 with the creation of the new Parking and Transit division. In 2019, the department would make the final debt payment for the dispatch consoles. Chief Kufeld stated the Police department’s personnel costs at 80% of the budget run below the average of 85%. Ballot 1A funds for emergency response would be used for the Heron property lease, stream gauge operation maintenance, to complete the command van, purchase mobile APZ 6500 antenna, supply employee safety equipment (PPE), comprehensive first aid kits for field use, satellite phone service, AM radio media, and digital trunk radio communications upgrade. MISCELLANEOUS Mayor Jirsa stated additional information on the justification for new employees would be needed to provide the Board with details on how to evaluate the need based on overtime costs, work not being completed, safety, etc. The Board does not have the information needed to assess within and against the needs of other departments. He further commented the Board should keep in mind service proposals such as the Comprehensive Plan, subsidy pool and reduction in business license fees to ensure priorities are being addressed through the budget process. The Board should review the use of the newly acquired Brook Drive property for other Town uses to address long-term needs for the community. Trustee Norris questioned the criteria staff used to create the list of service proposals included in the budget and the criteria used to determine the addition of staff. Trustee Martchink commented whether or not a transfer of funds would be required to Water if the property was to be used for other Town functions. He further questioned the maximum use of the site. The next Budget Study Session is scheduled October 19, 2018 8:30 a.m. – 12:00 p.m. There being no further business, Mayor Jirsa adjourned the meeting at 11:23 p.m. Jackie Williamson, Town Clerk