HomeMy WebLinkAboutMINUTES Town Board Study Session Budget Meeting 10-12-2007 Town of Estes Park, Larimer County, Colorado, October 12, 2007
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,
2007.
Committee: Mayor Baudek, Trustees Blackhurst, Eisenlauer, Homeier
Levine, Newsom and Pinkham
Attending: All
Also Attending: Town Administrator Repola, Deputy Town Administrator,
Finance Officer McFarland, Town Clerk Williamson
Absent: None
Mayor Baudek called the meeting to order at 8:30 a.m.
2008 BUDGET PRESENTATION
Administrator Repola provided a high level overview of the General, Light & Power and
Water funds. The total expenditures for the General Fund for 2004 through 2006 were
increased for capital improvements with a corresponding decrease in fund balance.
Budgeted compensation in all three funds is usually higher than actual or year-end due
to retirements or unanticipated resignations. Revenues are a conservative estimate in
all three funds. Capital expenses are budgeted to increase substantially with the
improvements at the Mary’s Lake Substation and the Mary’s Lake Water Treatment
facility. The proposed 2008 budget is a guide and has been updated to address the
Town Board goals identified during the July study session, affirm service levels, set the
stage for future budgets and ensure the sustainability of Town operations.
Finance Officer McFarland reviewed the 2008 fund balance by percentage with a
balance of $17.4 million, the General Fund balance related to personnel and O&M,
General Fund balance related to total expenditures, General Fund income of $12.2
million, General Fund expenditures of $11.8 million, and total expenditures of $39.8
million. Total expenditure for 2008 includes two large capital improvements in L&P and
Water Departments.
Deputy Town Administrator Halburnt presented an overview of the budget process.
Changes to the proposed 2008 budget include a decrease in the L&P transfer to the
General fund of 8.5%, decrease in the CVB transfer by $25,000, begin using the vehicle
replacement fund in 2008 with a corresponding increase in O&M for each department
for the actual depreciation of the vehicles, personnel additions – Fire Captain, GIS/IT,
Electrical Engineer, 2 CSOs, increase Museum Curator to full time and additional funds
for Park/Street seasonals, personnel reductions – Police Patrol FTE (keeping position
but not funding it for 2008), Animal Control will be absorbed by the Code Enforcement
Officer duties, Executive Secretary in Administration will be moved to a Secretary III
with 30% in Administration and 70% in Public Works and Utilities, .5 Administrative FTE
will retire in Public Works. Increases in personnel and benefits include a 5% salary
increase, an estimated 12.6% health insurance increase, fire pension increased to
$81,000 and moved to personnel costs, and car allowances and commissions moved to
personnel costs.
Board Priorities for 2008
Stanley Park Improvements
Update Public Restrooms Plan
Competitive Compensation for Skilled Employees
Recruitment/Retention of Volunteers
Town Board Budget Study Session – October 12, 2007 – Page 2
Local Marketing District
Maintain Current Planting Levels
Restorative Justice Sustainability
Bark Beetle Management
Records Archival
The Public Works Department has added $10,000 to the budget to address restrooms,
compensation for lineman was addressed earlier this year, fire pensions were increased
from $350 to $400/month, Dir. Pickering is moving forward with the LMD, budget for
plantings has been maintained at the same level as 2007, Restorative Justice has hired
a new Director to replace the vacancy, Town is purchasing a $12,000 grinder to destroy
infested trees and continues to coordinate efforts with the community and the Clerk’s
office is researching archival methods.
LIGHT AND POWER FUND.
Director Goehring reviewed the proposed 2008 budget that contains $11.3 million in
revenue and a fund balance of $3.3 million. The growth in revenue from 2007 to 2008 is
related to the proposed 2.5% increase in electric rates for 2008, a 2% power rider and
1% growth in sales. The power rider would pay for the 3% increased cost to purchase
power from Platte River Power Authority in 2008 with a $.00197/kWh to the customer.
Finance Officer McFarland stated the L&P fund would take possession of a $6 million
bond for the improvements at the Mary’s Lake Substation; however, approximately
$180,000 in processing costs for the bond would be realized in 2007. The bond money
will be spent over the next two fiscal years.
The Department has budgeted for the following: $25,000 for Loveland engineering to
design the new distribution system; $35,000 for the inspection of power poles for
damage and determining replacement needs; tree trimming; street light upgrades; sheep
island lighting year round with LED lights; $365,000 for engineering of the distribution
system improvements; payment in lieu of taxes at 2.5%; franchise fee 3% and vehicle
replacement has doubled and moved under O&M from transfers. Meter reading for the
L&P and Water Departments has merged and is a separate division reporting directly to
the Director. Discussion following on turnover rates, training of personnel and the
organizational chart. Staff will provide an annual report to the Utilities Committee to
address the training program and turnover rates. The organizational chart will be
updated with vacant positions removed if they are not truly vacant.
Capital expenditures are increasing significantly for 2008 due to the upgrades at the
Mary’s Lake Substation ($4 million). Transformer expenses are down with fewer to be
purchased in 2008. Meter reading van to be replaced with old van used by IT. Data
processing has increased for upgrades for finance software and additional servers.
Software will be removed from the data processing line item. The Click to Gov
software will come to Committee for further discussion prior to purchase.
Mayor Baudek announced a 10-minute recess at 10:10 a.m., and the meeting was
reconvened at 10:20 a.m.
WATER FUND.
Dir. Goehring reviewed the projected $3.4 million revenue for 2008 with a fund balance
of $2.5 million. A 5.6% rate increase for 2008, 2009 and 2010 would increase the
revenue by $126,000/year. The Windy Gap water supply has assessed the Town $30
per acre foot, and therefore, the cost to the Town is $119 per acre foot versus $22.39
per acre foot of CBT water. Windy Gap water is reusable and can be used until
exhausted. Add $20,000 to lab testing budget to meet the testing requirement of the
new Federal mandate called the Interim Distribution System Evaluation (IDSE) to
determine the build up of carcinogens from the aging of chlorine and inorganic carbon.
The new membrane technology will remove these items and testing costs will be less in
Town Board Budget Study Session – October 12, 2007 – Page 3
the future. New guidelines are requiring the inspection of all storage tanks; therefore,
divers will be hired. A new pump will be purchased for the Thunder Mountain/Windcliff
area. The $4.7 million in capital expenses are for the improvements to the Mary’s Lake
Water Treatment facility. The facility will also receive fiber feeds to allow the cameras to
be monitored by the Police Department.
INFORMATION TECHNOLOGY
The Department is requesting the addition of a FTE for general computer services and
GIS services. The department has approximately 300 pieces of equipment, the phone
system and security equipment. Trustees favor the position but expressed concern
that an individual with the specific set of skills could be difficult to find. For 2008,
the phone costs have been removed from L&P and placed within the IT budget with an
increase in corresponding revenue. Each department pays into the IT fund based on the
number of pieces of equipment and phone outlets. Data processing title will be
updated to reflect the detail, i.e. a better description. Update the category
telephone to telephone services.
GENERAL FUND. Each fund was reviewed and requests for additional information is
noted below:
Legislative – The Citizen Survey has been eliminated from the budget. The
Comprehensive Plan update will be completed in 2007; therefore, no money has
been budgeted for 2008. O&M is down for 2008 with the Local Marketing District
expenses added including the election expenses.
Executive – This account is down 2% in 2008 compared to the revised 2007
budget. Legal expenses have increased. Capital expenses include a new
copier. All supervisors will attend a 12 week program by ICMA on Effective
Supervisory Practices next year. Department Heads will complete the program
first starting this winter and complete the training by the 1st quarter of 2008.
Trustees requested information on the program. Administrator Repola will
supply the Trustees with a summary document.
Elections – Two elections have been budgeted for in 2008. The General Election
will be held on April 1, 2008 with three Trustee vacancies and the Mayor up for
election. The 2007 budget shows $1,712 spent in O&M. These were costs
associated with the 2006 General Election that were not billed to the Town until
the spring of 2007. This fund will not be used for an election for the Local
Marketing District.
Finance – Personnel costs are increasing as part of a 6 year plan. In 2006, 26%
of personnel costs were allocated to the Finance Department and it will increase
to 46% by 2011 which corresponds to a decrease in Utilities. IT charges have
increased significantly due to underpayment in the past. A discussion followed
as to the Human Resource Management and what functions are being performed
by the HR Manager and the Deputy Town Administrator. The HR functions will
be reviewed after the budget process.
The next Budget Study Session is scheduled October 19th, 8:30 a.m. – 11:30 a.m.
There being no further business, Mayor Baudek adjourned the meeting at 11:30 a.m.
Jackie Williamson, Town Clerk