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HomeMy WebLinkAboutMINUTES Town Board Study Session Budget Meeting 2008-10-03 Town of Estes Park, Larimer County, Colorado, October 3, 2008 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 3rd day of October, 2008. Committee: Mayor Pinkham, Trustees Blackhurst, Eisenlauer, Ericson, Homeier, Levine and Miller Attending: Mayor Pinkham, Trustees Blackhurst, Eisenlauer, Ericson, Levine and Miller Also Attending: Town Administrator Halburnt, Deputy Town Administrator Richardson, Finance Officer McFarland, Town Clerk Williamson Absent: Trustee Homeier Mayor Pinkham called the meeting to order at 8:20 a.m. 2009 BUDGET PRESENTATION Administrator Halburnt reviewed the budget process that includes four budget study sessions the first four Friday mornings in October, a public hearing on November 11th and potential adoption of the 2009 budget on November 25th. Staff has proposed an annual budget with a five-year Capital Improvement Plan (CIP) and flat revenues and expenditures for 2009. The budget was prepared with the next phase of the Stanley Fairgrounds Revitalization plan to be completed in 2009 including the barns, ice rink, parking lot, landscaping and grandstands at a cost of $6.6 million while maintaining a 30% fund balance. The improvements would be funded with $1.6 million from Community Reinvestment Fund (CRF), $1 million from Catastrophic Loss Fund (CLF), the approved purchase of the fire truck from the Vehicle Replacement Fund (VRF) and financing of $4 million over 20 years with payments of $330,000 annually. Staff recommends transferring a consistent $500,000 to the CRF in the future; however, $217,000 would be set aside for the operation of the Performing Arts Theater as agreed during an earlier pre-budget study session. Theses funds could be used to prepare the building site in the event the Supporters of the Performing Arts (SOPA) raise the necessary funds to build the theater and Lot 4, Stanley Historic District does not sell. Administrator Halburnt stated the budget contains the addition of a full-time Public Information Officer, part-time Water Technician moving to full-time and a Digitizing Technician for the Museum contingent on grant funding. Employee salaries must remain competitive and a benefit package that would attract a highly-qualified employee pool must be maintained. Staff is proposing a 3% salary increase for merit with no Cost of Living Adjustment (COLA). Health insurance premiums are estimated to increase 10%, dental insurance decreasing slightly and no change to the vision insurance premiums. Trustees Blackhurst, Levine and Miller expressed concern with moving the purchase of the fire truck to the VRF. The truck was approved with funding from the Fire Department. Administrator Halburnt stated the VRF has an adequate balance to absorb this purchase, which would allow the Fire Department fund balance to increase and decrease the transfer from the General Fund in 2009. Trustee Miller expressed concern with placing the Town in debt for the next 20 years for the Stanley Fairground improvements in 2009. He stated the projected cost estimates are low and do not appear to contain funds for contingencies. Town Board Budget Study Session – October 3, 2008 – Page 2 Finance Officer McFarland reviewed the 2009 fund balance by percentage with a balance of $15 million, the General Fund balance related to personnel and O&M, General Fund balance related to total expenditures, General Fund income of $11.1 million, General Fund expenditures of $11.7 million and total expenditures of $38.8 million. Total expenditure for 2009 includes two large capital improvements in L&P and Water Departments. VEHICLE REPLACEMENT FUND. This internal service fund was developed to fund the depreciation of vehicles and fund future vehicle purchases. The fund has adequate balance to begin funding the purchase of replacement vehicles with an ending fund balance in 2008 of $1.2 million. The 2008 VRF budget was approved to expend $208,500 for vehicle purchases. Staff recommends revising the 2008 budget to include the purchase of the new fire truck, for a total expenditure in 2008 of $566,418. If approved, a supplemental budget appropriation would be completed to reflect the change. In 2009, the fund would be used to purchase $391,000 in vehicles with a bucket truck as the largest purchase. The 2009 fund balance would be $1.4 million. Mayor Pinkham called a break at 9:20 a.m. and reconvened the meeting at 9:30 a.m. INFORMATION SYSTEMS TECHNOLOGY FUND. The internal service fund was formed in 2007 to manage Town wide information systems including technical support, maintenance, security, phone support, audio-visual support and GIS services Town-wide. Each department pays a fee based on the equipment the department utilizes (185 laptops and computers, 24 servers, 221 audio and video components, 4,191 instances of software and 1,321 telephone components). The phone maintenance fee pays for the maintenance contract ($38,000) of the current phone system and the future purchase of a replacement system ($30,000). Trustee Blackhurst commented on the need to replace the document camera in the Board Room. LIGHT AND POWER FUND. Director Goehring reviewed the proposed 2009 budget containing $12 million in projected revenue, $14 million in expenses and an ending fund balance of $3 million. Fund balance would decrease from $5 million in 2008 to complete ongoing projects, i.e. improvements to distribution system. Charges for services are increasing in 2009 by 3.8% for the Platte River Power Authority Power Rider, 2.5% for a rate increase and 3% growth. Staff plans on conducting a new rate study in 2010 to evaluate future rate increases. O&M expenses include the source of supply, distribution, administration and customer accounts. The 2009 budget contains funds for the energy efficiency programs including solar and small wind turbine rebates, “Lighten Up” program to relamp Town Hall and research/education for wind and solar sites. The Moraine and Peak View distribution circuits would be upgraded and placed underground when possible during the next two years. Staff will create a separate line showing the totals for personnel costs and O&M for the summary page. WATER FUND. Director Goehring reviewed the proposed 2009 budget containing $3.5 million in projected revenue, $4 million in expenses and an ending fund balance of $2.4 million. The department plans to maintain a $2 million fund balance to maintain an appropriate debit service ratio for a possible second phase of improvements at the Mary’s Lake water treatment plant. The projected revenue includes a 5.6% rate increase and 3% growth. Staff plans on conducting a new rate study in 2010 to evaluate future rates. Projected expenses include source of supply, purification, distribution, customer accounts, administration and general, transfers, debt service and capital. The Water Department plans to increase the current part-time lab technician to full-time because of new state and federal regulations. Electric and sanitation costs are increasing in 2009 as all Water facilities transition to wind energy and the new treatment process increases Town Board Budget Study Session – October 3, 2008 – Page 3 discharge. Debit service increases in 2009 with the first year of payments on the loan for the improvements to the water treatment plant and a corresponding decrease in capital with the completion of the improvements. Mayor Pinkham called a break at 10:44 a.m. and reconvened the meeting at 10:58 a.m. GENERAL FUND. Each fund was reviewed and requests for additional information is noted below: Finance Officer McFarland reviewed the overall revenues, expenditure and fund balance for the General Fund. He stated the ending fund balance for 2008 was estimated at 29% and has been increased to 34% because of 2007 rollovers and the repayment of the Estes Park Housing Authority (EPHA) loan of $918,500. A note will be added to reflect the loans from the CLF and Utilities have not been repaid by EPHA for the purchase of the Pines Apartment complex. He commented the recent trend shows the Town spending more than the Town has received in revenues with current sales tax down 1.9% from the previous year. Staff will provided further detail on the “Sales-Local” sale tax revenue collected.  Legislative – The budget increased 8% because of the approved salary increases for the newly elected Board in 2008 and additional studies requested by the Board.  Judicial – The 2009 budget remains flat. Salary increases for court personnel are completed every other year.  Executive – The proposed 2009 budget increases by 19% with the addition of a PIO position. The PIO salary would be allocated to the Executive, L&P and Water funds. Trustee Eisenlauer questioned the need for a PIO, and stated the job should remain with the DTA as it is outlined in the job description. Deputy Town Administrator Richardson stated the DTA’s workload has been modified and does not allow for adequate time to perform the PIO function.  Elections – Two elections have been budgeted for in 2009 with an Initiated Ordinance still pending for the abolishment of EPURA. The Fire District Task Force has planned a November election in 2009 for the formation of a valley- wide fire district.  Finance – Finance personnel costs are increasing as part of a six year plan to reallocate the expense with Finance and Utilities splitting the cost 50/50. 2009 would be the fourth of six phases. O&M has increase with the increased cost of IT services. The Scope of Services will be updated to include the preparation of the budget and the CAFR. MISCELLANEOUS Trustee Blackhurst questioned the digitizing and archiving of Town-wide records. Town Clerk Williamson stated the Clerk’s department continues to evaluate software that could be used Town-wide to manage documents. The Board expressed their appreciation for the new budget format and congratulated the staff on the improvements. The next Budget Study Session is scheduled October 10th, 8:00 a.m. – 12:00 p.m. There being no further business, Mayor Pinkham adjourned the meeting at 11:47 a.m. Jackie Williamson, Town Clerk