HomeMy WebLinkAboutMINUTES Town Board Study Session Budget Meeting 11-03-2006
Town of Estes Park, Larimer County, Colorado, November 3, 2006
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 3rd day of
November, 2006.
Committee: Mayor Baudek, Trustees Blackhurst, Eisenlauer, Homeier,
Levine, Newsom and Pinkham
Attending: All
Also Attending: Town Administrator Repola, Finance Officer McFarland,
Clerk Williamson
Absent: None
Mayor Baudek called the meeting to order at 8:30 a.m.
GENERAL DISCUSSION.
Trustee Homeier would advocate the Town maintain a balanced budget and he voiced
concern that current reserves may be spent below the target fund balance within the
next 3 years. Administrator Repola stated the Town maintains target fund balances for
both utilities at 25% of O&M and 30% of O&M for the General Fund. The Town is well
above the average in fund balance with regard to the National League of Cities.
Discussion followed with regard to future fund balance targets and how the Town may
need to change operationally to meet the future targets. The proposed budget for 2007
maintains current service levels; however, with direction from the Town Board, staff
would look at potential cuts in service and staffing to meet future budget expectations.
A Town Board study session will be held in July 2007 to begin discussions of the 2008
budget and to develop an overall philosophy regarding fund balance. Administrator
Repola stated staff will utilize discussions held at the committee level to prioritize the
scope of services of each department in order to accurately reflect what services the
customers require. This will provide a rough draft of services for discussion at the July
meeting.
2007/2008 BUDGET PRESENTATION – OTHER FUNDS.
COMMUNITY SERVICES FUNDING REQUESTS (General Fund).
Mayor Baudek reviewed the process the subcommittee, Trustee Levine, Mayor Baudek
and Administrator Repola, used to review the applications. The subcommittee
concluded the community grant fund could not continue to grow each year without
impacting the General Fund. The committee recommended no new organizations for
2007 and funding be reduced 5% from 2006 with the following exceptions: Radio
Reading Services of the Rockies (no reduction), Estes Park Housing Authority (full
funding - $187,256), Special Transit (full funding – $27,500) and Estes Valley
Investment in Childhood Success (full funding - $28,500). Overall this represents a
$48,529 decrease from 2006.
ORGANIZATION 2006 BUDGET
Arts & Education:
Chamber Music Festival, $2,375
Art Center, $2,375
Community Jazz Concert Series, $1,900
Estes Village Band, $1,188
Oratorio Society of Estes Park, $1,188
Cultural Arts Council of Estes Park, $1,425
$10,451
Transportation:
Door to Door Transportation Service, $27,500
$27,500
Town Board Budget Study Session – November 3, 2006 – Page 2
Comments to the Town Board are summarized below:
Harry Graham/Exe. Dir of Crossroads Ministry thanked the Town Board
for the Community Service funding program. He stated the program has
received $22,500 in funding for the past 3 years and to his knowledge
funding has never been reduced. He would urge the Board to reconsider
funding Crossroads in full considering the Town has seen a 5% increase
in sales tax revenues for 2006. Mr. Graham provided a summary of
service that includes: utilities, food and money management classes.
They currently provide services to over 200 families.
Janice Newman/President of EVICS – Thanked the Board for continued
support and for helping Estes Park to be a family friendly town. EVICS is
working towards obtaining additional grants and becoming a 501(c)3
organization to become less dependent on the Town for funding.
Rita Kurelja/Estes Park Housing Authority Director – Thanked the Board
for their continued support and vision for affordable housing. The
Authority is working hard to reduce its reliance on Town funding. She
commended the Board for their efforts made towards affordable housing
and economic development in the Estes Valley.
Wendell Amos/Habitat for Humanity – Over the past 8 years, Habitat has
seen the cost of building a housing in Estes Park double. He thanked the
Board for their continued support.
Concluding all public comment, the Board expressed their appreciation to all those in
attendance, noting their good work in the community.
COMMUNITY REINVESTMENT.
Administrator Repola reviewed the Phase II upgrades to the Stanley Park Fairgrounds
for 2007/2008 stating this item will return to Committee for approval. Improvements will
include the construction of new stalls after the 2007 season. Director Pickering stated
the Special Events Department has received 2 new requests for events due to the
improvements at the fairgrounds. The Conference Center lease (debt service) will be
complete in 2008. Site preparations for the Stanley Park theatre are contingent on the
sale of Lot 4, Stanley Historic District and are estimated at $600,000. Staff will add a
School District:
Child Care Program, $2,850
$2,850
Housing:
Estes Park Housing Authority, $187,256
Habitat for Humanity, $7,125
$194,381
E. V. Public Library District $27,600
Youth:
Cub & Boy Scout Program, $2,850
Estes Valley Investment in Childhood
Success, $28,500
Estes Learning Place, $2,850
Partners of Estes Park, $4,750
Non Profit Resource Center, $2,850
PACK, $7,125
$48,925
ORGANIZATION 2006 BUDGET
Food Tax Refund $20,500
Human Services:
Crossroads, $21,375
E.P. Salud, $19,475
Radio Reading Service, $500
Options for Healthy Living, $2,375
$43,725
Sister Cities Int’l. Conf. Student Participation,
$9,405
$9,405
Town Board Budget Study Session – November 3, 2006 – Page 3
line item to the 2008 budget for this project with an asterisk. Revenue from the
sale of Lot 4, SHD has been added to the budget; however, the sale is pending
Technical Review Committee approval and the lawsuit by New Stanley Associates. If a
theatre is not built, the revenues from the sale would be used for future improvements at
the fairgrounds. Funding for trails has been moved to the Open Space fund. Funds
have been budgeted for the completion of the development improvements at the CVB
including sidewalk and curb/gutter. Transfers to Community Reinvestment are not
anticipated in 2007.
CATASTROPHIC LOSS FUND.
This fund provides a 3% emergency reserve required by the Tabor amendment. This
fund provides $2.3 Million in working capital for unforeseen losses not covered by
insurance. Trustee Blackhurst questioned if there was a target fund balance. Staff
stated $500,000 is the minimum required by Tabor.
Mayor requested a 10 minute recess at 10:00 a.m.; the meeting reconvened at 10:10
a.m.
MEDICAL INSURANCE INTERNAL SERVICE FUND.
Finance Officer McFarland stated the Town has chosen a new medical insurance plan
with a 6.4% increase for 2007, no increases in dental premiums and vision and life
insurance are in the second year of a 2-year plan. The Town did have discussions with
IMA, benefit consultant, regarding a dual plan option and the possibility of increasing the
stop loss amount from the current $5,000 in order to lower the health insurance
premiums. Staff will continue discussions in 2008. The current fund also contains a
post employment benefit for qualifying retirees. Additional funds will be re-appropriated
to cover an increase in health benefit payment for 2006. An RFP for the benefit
consultant will be produced for 2007. Trustee Homeier requested staff review the
current vision insurance and provided additional insurance options that would allow
businesses in Estes Park to participate.
POLICE PENSION/FIRE PENSION FUNDS.
Police: There is one surviving spouse receiving a benefit of $214/mo. This fund was
closed to new enrollment in 1988. This is a fiduciary fund that has to remain as a
separate account.
Fire: The department currently has 23 retirees and 40 active members. The fire
pension committee approved the use of an outside consultant to manage investments
for the fund in order to increase fund returns to meet actuarial numbers.
PARK ENTRANCE ESTATES.
Finance Officer McFarland advised the bonds for the 2 accounts have been paid in full;
however, money remains in both accounts. Funds can not be refunded to the
individuals. Funds could be used for further improvements in the district or to establish
an new special district improvement fund. The Board requests staff spend the
remaining funds on improvements in the district.
THEATER FUND.
This fund is being renamed the Theatre Fund formerly know as the Friends of Stanley
Hall Fund (FOSH). The newly formed Supporters of the Performing Arts (SOPA)
committee will use the funds to raise 3 million in the next year to build a theatre at the
Stanley Fairgrounds. The committee has not established a budget; therefore, the
money budgeted in 2007 are estimated costs including legal fees, professional fees,
publication fees and materials and supplies. The Board requests the SOPA
committee provide monthly progress updates to the Community Development
Committee and provide a budget as soon as possible to the CDC for review. The
FOSH funds were extended for one additional year; however, in order to complete the
fundraising effort, the funds will need to be extended for one additional year in 2007.
Town Board Budget Study Session – November 3, 2006 – Page 4
COMPENSATION.
Administrator Repola proposed the Town deviate from the current policies governing
employee compensation: Compensation Policy - adjust salaries based upon the
Denver-Boulder-Greeley Consumer Price Index (CPI), a Cost of Living Adjustment
(COLA) and adjusted based on CML salary data; Pay Philosophy – merit and bonus
awards based upon performance. Staff proposes 3.5% salary increases with 3.0%
merit and 0.5% one-time bonus awards. Staff will conduct an analysis of the Town’s
current salary structure and comparison market to develop a proposal by September 1,
2007 to address rising personnel costs. Compensation including salaries and related
benefits will increase 3.5% in 2007. In 2007, personnel costs in the General Fund will
increase significantly due to reallocations of personnel from the Utility Funds.
Discussion followed and is summarized: a COLA adjustment would keep salaries at a
sustainable level; merit provides department heads the ability to reward top performers;
the Town needs to determine if it is paying too many employees or paying too much per
employee; the Town should investigate methods of working with other communities to
lessen the cost to provide services; increase the bonus to decrease the inflationary
effects of merit in 2008. Staff was directed to (1) provide a merit pool of 3.0%, and
(2) a one-time bonus pool of 0.5%. Trustees would like staff to provide feedback on
the employees’ reactions to the compensation structure.
BUILDING AUTHORITY FUND.
The Town administers the Certificate of Participation issued for the golf course
improvements due to mature in 2009. This is a straight pass through.
MISCELLANEOUS.
The Police Community Services Fund will measure the costs of related service;
however, personnel will not be reallocated to this fund in 2007.
Staff will review the Vehicle Replacement Fund and discuss current vehicle replacement
criteria with Superintendent Mahany during the 1st quarter of 2007.
Trustee Blackhurst requested an additional study session to discuss revisions made to
the budget during the budget process. A study session will be held on Friday,
November 10, 2006 at 9:30 a.m. in the Board Room to review the executive summaries
for all departments.
There being no further business, Mayor Baudek adjourned the meeting at 11:55 a.m.
Jackie Williamson, Town Clerk