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Home My WebLink AboutMINUTES Town Board Study Session 07-10-2007 Town of Estes Park, Larimer County, Colorado, July 10, 2007 Minutes of a Regular meeting of the TOWN BOARD STUDY SESSION of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in said Town of Estes Park on the 10th day of July, 2007. Committee: Mayor Baudek, Trustees Blackhurst, Eisenlauer, Homeier, Levine, Newsom and Pinkham Attending: All Also Attending: Town Attorney White, Administrator Repola, Deputy Administrator Halburnt, Directors Goehring, Joseph, Kilsdonk, McFarland, Pickering, Chiefs Dorman and Richardson, Mgr. Mahany, Attorney White and Town Clerk Williamson Absent: None Mayor Baudek called the meeting to order at 1:30 p.m. POLICY GUIDANCE FOR 2008 BUDGET.  Affirm or revise fund balance targets – GF, L&P, Water, Catastrophic Loss  Department Priorities – 3 to 5/Department  Town Priorities –10 taken from Department Priorities  Community Services grants - Priorities  Funding & Use of Vehicle Replacement Fund  Staffing additions/deletions – Criteria DRAFT BUDGET OVERVIEW The 2008 budgets were drafted last year as part of a two-year budget. Administrator Repola reviewed the projected budgets stating the General Fund continues to show a projected increase for the next several years with expenses increasing in 2007 and a decrease in 2008; transfers are projected to decrease in 2007 by approximately $1,000,000 and increase in 2008; funds from the sale of Lot 4, Stanley Historic District will be placed in the Community Reinvestment Fund and used for future improvements at the Stanley Fairgrounds. The Utility Funds show substantial revenue increases in 2008. This is due to the issuance of bonds for major capital projects in both Light & Power and Water in 2008. Expenses for L&P will increase due to an unanticipated increase from Platte River Power Authority rail and coal contracts. FUND BALANCE TARGETS The Town Board has adopted fund balance targets in the past of 30% of Operations and Maintenance (O&M) for the General Fund and 25% of O&M plus a fraction of depreciation in the Utility Funds that are industry standards and recommendations from consultants that have provided financial studies for the Town. In addition, the Enterprise Funds have target debt coverage ratios based upon minimum requirements in bond covenants for existing debt. The Town intentionally began spending down the GF reserves a few years ago to fund various projects including trails, a new visitor center and parking improvements. The fund is approaching the 30% target balance. Special Revenue Funds do not have a target fund balance due in large part to their reliance on GF transfers; however, a 5% O&M balance is usually carried to avoid potential deficit spending. Finance Officer McFarland stated municipalities with unsteady revenue streams have fund balance targets in the 20-30% range of O&M and those with steady (property tax) revenue streams have targets well below 20% with some as low as 5%. He stated 30% is conservative if you factor in the other fund balances such as the Catastrophic Loss Fund. Questions to consider: 1) Is it the best use of the taxpayers money? 2) What percentage would the Board accept? 3) What is the purpose of the reserve and how is it tied to the Catastrophic Loss Fund (CLF)? Administrator Repola stated the General Fund balance would be used to operate the Town during a short term revenue interruption and the CLF would be used for a larger Town wide catastrophe. Trustees questioned how and when the CLF was created and if other funds or CIRSA would be available during a major event. Discussion followed concerning the Town’s vision and mission statements, defining level of service, how the additional funds would be spent if the fund balance was lowered and could it benefit the town in the future, how the fund balance is determined, set a range for the fund balance in lieu of a fixed percentage and use additional funds for capital improvements before adding personnel. Administrator Repola encouraged the Board to consider lowering the fund balance to complete current projects such as the Stanley Fairgrounds Master Plan. CAPITAL IMPROVEMENT PLAN The Town adopted a Capital Improvement Plan (CIP) in 2004 that is limited to certain General Fund and most Special Revenue Fund capital projects. This plan is updated annually to reflect actual revenues, expenses and projects per the Board’s priorities. The Community Reinvestment Fund (CRF) continues to decline with money budgeted for improvements at the Stanley Fairgrounds. Capital investment is declining due to the GF approaching the 30% target balance. Even with the reduced spending, the GF balance is predicted to drop below 30% in 2011. The CIP will need to be modified if the revenue and expense assumptions hold true. VEHICLE REPLACEMENT FUND The Vehicle Replacement Fund (VRF) was initiated in 2002 with the purpose of funding depreciation of vehicles and to accumulate funds necessary to replace vehicles. At present, the VRF is not being funded at a level that would allow full utilization of the fund. Contributions would need to double to begin using the fund to purchase vehicles. Finance Officer McFarland reported the Town could save significant money over the next 5 years if contributions increased and the fund were used to purchase vehicles immediately. Administrator Repola would like to see a line item in each department’s budget for the depreciation of the vehicles currently operated by that department. Discussion was heard in regards to developing a motor pool that would own the vehicles with each department paying for their use of the vehicles. Vehicles would be purchased from the VRF to eliminate capital purchases within the department budgets and to save money on vehicle loans or leases. Administrator Repola would advocate for the increase in funding of the VRF and begin purchasing vehicles in 2008. BUDGET PRIORITIES The following are the Board’s priorities by department: Administration  Management Training  Travel Policy - Flexible  Public Information – Structure  Minutes – More Detail  Document Imaging – Digital  Ethics Policy Finance Department  Customer Service Training Planning  Update the EVDC  Rewrite the Sign Code – Municipal Code  Records Archiving  Rewrite of the Comprehensive Plan  Clarifying fees versus expenses  Impact fees  GIS Services Government Buildings  Update Public Restrooms (Plan)  Cleaning Contract  Energy Efficiency  Evaluate Employee Housing Police  Restorative Justice  Expand CSO program  Outsourcing Dispatching 911 - Analysis  Zone Initiative  Develop a Comprehensive Code Enforcement Program. Fire  Training Staff Member Analysis  Recruitment and Retention of Volunteers  Analysis/Impact of a Fire Code  Wildfire Mitigation Building  Customer Service Training for Building Inspectors (Improved Relationship)  Records Archival  GIS/Mapping Options Streets  Update PCI Data - Identify a minimum PCI  Capital Improvement Plan for Public Works Infrastructure  Maintain Snow removal policy  Improve curb and gutter maintenance and sidewalk  Evaluate and Update Drainage Master Plan Parks  Maintain current planting levels  Maintenance of trash cans  Removal of dead trees in ROW  Tree Replacement  Bark Beetle Management Light and Power  Investigate Renewable Energy  Competitive Compensation for Skilled Personnel  Maintain Holiday Lighting Water  Leakage Index of 85%  Security of Water Distribution Senior Center  Increasing Programming Museum  Investigate the operation of hydro plant  Collect storage facility CVB  Continue to increase revenue  Expand web presence  Re-evaluate the media  Evaluate the make-up of the Marketing Advisory Committee  Add off-season event  Stanley Park Improvements  Local Marketing District. There being no further business, Mayor Baudek adjourned the meeting at 6:30 p.m. Jackie Williamson, Town Clerk