HomeMy WebLinkAboutMINUTES Town Board Budget Study Session 10-23-2009
Town of Estes Park, Larimer County, Colorado, October 23, 2009
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 23rd day
of October, 2009.
Committee: Mayor Pinkham, Trustees Blackhurst, Eisenlauer, Ericson,
Homeier, Levine and Miller
Attending: All
Also Attending: Town Administrator Halburnt, Deputy Town Administrator
Richardson, Finance Officer McFarland, Town Clerk
Williamson
Absent: None
Mayor Pinkham called the meeting to order at 8:30 a.m.
2009 UPDATE
Finance Officer McFarland provided a brief update on the proposed 2009 cuts from the
General Fund to offset the decrease in sales tax and other decreasing revenues,
including: $62,000 from payroll, $70,000 from O&M, $46,000 from capital for a pothole
patcher and $115,000 in transfers. The Christmas party and the Town employee
incentives have been added back into the 2009 budget at a cost of $26,000. Trustee
Homeier questioned the need to make additional cuts to the 2009 budget in order to
maintain a 30% fund balance. Trustee Blackhurst stated the fund balance has been
maintained in the past to weather economic conditions the Town currently faces and
stated the reserves could be used to fund operations so long as it is done cautiously.
CATASTROPHIC LOSS FUND
This fund was created after the 1976 flood and was originally funded by other Town
funds in existence at the time it was created. The fund was created to cover costs of a
disaster for unforeseen losses not covered by insurance. The 2009 budget includes a
$1 million transfer to the Community Reinvestment Fund to fund capital projects. The
fund contains an emergency reserve of the Town’s operating expenses required by the
Tabor amendment of $600,000 and could be held in the General Fund. The fund was
used as a source for a loan to the Estes Park Housing Authority for the purchase of the
Pines apartments with a balance of $515,067. In 2010, the unrestricted fund balance
would be $393,541. The Board requested staff confirm the guideline for how the money
in this fund could be used.
BUILDING AUTHORITY FUND
The Town administers the Certificate of Participation (COPs) issued for the golf course
improvements that are due to mature in 2009. This is a straight pass through. The
maturity of the debt would allow the Town to issue new debt. The EVPRD has
expressed interest in issuing additional COPs for a new sprinkler system for the golf
course in the future. This fund could be used to fund Town projects.
POLICE PENSION/FIRE PENSION FUNDS.
Fire Fund
This fund receives revenues from the Town, State and equities and has a projected
fund balance in 2010 of $1.179 million. This fund would be managed by the Fire District
if the district passes in November. The Town would maintain a contractual
Town Board Budget Study Session – October 23, 2009 – Page 2
responsibility to the firefighters to provide a pension; therefore, an IGA would be created
between the Town and the District.
Police Fund
This fund was formerly offered to the Estes Park law enforcement personnel and was
closed to enrollees in 1988. There is one surviving spouse receiving a benefit of
$214/month. The 2010 budget includes a required actuarial study at a cost $900.
THEATER FUND
This is a fiduciary fund to be used to raise funds and build a performing arts theater.
The purpose would be updated to state if construction of the facility is
determined by the Town to not be feasible by the end of 2011; all remaining funds
would be donated to a local non-profit organization dedicated to the support of
the performing arts. The Board discussed the importance of determining a definitive
date with Supporter of the Performing Arts (SOPA) to end the Memorandum of
Understanding (MOU) with the Town. This would free up money being held in
abeyance for the theater site preparations and the land owned by the Town. The
Feasibility Study line item would be removed from the O&M detail.
BENEFITS
The employee parties (picnic, holiday party, and two other gatherings) and
homeownership program are funded within this fund. There are currently 4 employees
participating in the homeowner program with 1 additional participant anticipated for
2010. The Town contributes $250/month with a minimum employee contribution of
$95/pay period.
COMMUNITY REINVESTMENT FUND
The 2009 budget has been revised to include the grandstand project at a cost of
$1,046,071 and Stanley Park Fairground design and construction documents for the
Multi Purpose Event Center (MPEC) and the Indoor Arena for $275,000. The fund has
approximately $2 million available for projects in 2010 with $800,000 transferred from
the General Fund. In 2009 the Town transferred $500,000 from the General Fund and
$1 million from Catastrophic Loss Fund. The fund contains $434,250 to complete
infrastructure improvements for the proposed performing art theater. The Board
requested the theater funds be reworded from “Restricted” to “Earmarked”
funds. The detail under capital for the Fairgrounds-grandstands should be
changed to $1 million. Revenues should be updated to remove Lot 4 and
Contributions/donations/misc/sale of fixed assets.
Discussion followed amongst the Board on if funds from Community Reinvestment
should be utilized for street improvements. Administrator Halburnt stated prior to the
Board allocating additional funds for street improvements, staff should prioritized a list of
projects for the Board to review. The Board agreed that a prioritized list should be
reviewed by the Public Works Committee.
The Board discussed the need to receive schematic drawings and cost estimates for
projects at the fairgrounds prior to committing Community Reinvestment funds. Trustee
Miller stated other projects may take precedent in 2010 such as streets or Bond Park;
therefore, it may be appropriate to change the line item from Stanley Park Master
Project to a more general term. Trustee Blackhurst suggested the Board discuss and
reprioritize the Capital Improvement Project (CIP) list prior to dedicating the funds and
include items such as street improvement projects.
CONTINGENCY & TRANSFER FUND
The Mayor’s contingency fund was moved to the legislative account in 2009 and is used
to fund unforeseen expenses. Transfers to Special Revenue funds would be reduced in
2010 to reflect a 1% fund balance for all funds with an estimated savings of $40,000 to
the General Fund. The proposed budget reflects a zero transfer to EPURA in 2010.
Town Board Budget Study Session – October 23, 2009 – Page 3
EMPLOYEE COMPENSATION
Deputy Town Administrator Richardson stated the regional comparison municipalities
(Loveland, Longmont, Fort Collins, Avon, Frisco, Steamboat Springs) are budgeting no
merit and no COLAs for 2010 with the exception of Frisco recommending a 1.5% COLA.
The proposed budget contains no merit and no COLA for 2010.
Trustee Blackhurst suggested a one-time bonus or a percentage increase could be
budgeted if the Town realizes a substantial increase in sales tax by the fourth quarter of
2010. The Board requested staff review options for a one-time bonus in the event
sales tax comes in higher than budgeted by the fourth quarter.
MEDICAL INSURANCE INTERNAL SERVICE FUND
Trustee Homeier recused himself from the discussion. The focus of this fund changed
in 2009 with the Town moving from partially self insured to fully insured. This fund now
provides medical health insurance benefits for eligible retirees. The fund has a
declining fund balance that would need to be addressed in the near future. The main
expenses include the benefit consultant, actuarial study and post employment insurance
benefits.
Deputy Town Administrator Richardson stated the proposed budget contains estimated
increases of 10% for health, 7% for dental and 8% for vision. The benefit consultant
would provide firm numbers prior to the budget adoption. An employee survey was
conducted on the Vision benefits in 2009 with the following result: 84% use the VIP
insurance; 78% have annual vision claims; 79% have out of pocket expenses; and 81%
responded the vision plan is adequate. He stated an employee has the option to use an
out-of-network provider and pay the higher out of pocket expenses. Any provider can
submit claims to VSP at a lesser reimbursement rate than those belonging to VSP. As
discussed in 2009, a self-insured plan would cost considerably more than the
approximately $20,000 the Town pays for VSP and would cover less expenses than
VSP for the employee. Trustee Ericson requested a supplemental listing of the
insurance premiums paid by the Town and the employee for each plan (health,
dental and vision) and add a footnote of the aggregate costs of insurance on the
Medical Insurance fund budget.
COMMUNITY SERVICES FUNDING REQUESTS (General Fund)
Mayor Pro Tem Levine reviewed the sub-committee’s process for assessing the
applications. He commented that not every program could be funded and funding levels
were cut for 2010. The Town of Estes Park spends a larger percentage per capita than
other municipalities, including those with much larger budgets. He stated all the
programs and projects are worthy of funding, however, there are limited funds. Trustee
Blackhurst stated his research on other communities demonstrates Estes Park spends
more than most communities. He commented that some communities such as Telluride
are asking the voters to pass a sales tax to fund these requests.
Administrator Halburnt stated a request for funding improvements to the bird sanctuary
was received after the formal application process. EVIA has requested $12,500 for elk
fencing around the sanctuary to enhance the riparian vegetation destroyed by the elk.
The Town did agree to improve the vegetation around the trail after construction. Bob
Michener provided a project overview and stated the total cost of the project would be
$17,000. EVIA would fund a portion of the project and Eagle Rock has offered
volunteer labor. He contends the bird sanctuary would be an added tourist attraction.
The Board stated more information was needed in order to make a decision and
requested staff discuss the project further with the Recreation District.
The Board discussed the funding for the Estes Valley Historical Society for historical
preservation projects. This organization has been the organizational entity for the
annual Heritage Festival that receives $2,000 in funding through the Special Events
Town Board Budget Study Session – October 23, 2009 – Page 4
department. This festival continues to grow and brings visitors to town during a slow
weekend. The additional funds would be earmarked for preservation and not costs
associated with the festival.
Virgil Good/Crossroads Ministry stated the economic climate has
increased the number of families seeking assistance to over 400 with
approximately 1,000 people affected. Foundation funding is being cut
across the board and Crossroads appreciated the continued support of the
Town.
Mark Richards/Salud Foundation stated Salud has also seen an increase
in services provided with approximately 3,000 served this past year with
an operating deficit of $400,000. The funding provided would help to
offset 350 patient visits. The Salud Foundation appreciates the Board’s
continued support.
Mary Mesropian/Estes Valley Victim Advocates appreciates the Board’s
support of the safehouse project. The house has been full all summer and
people have had to be turned away.
Jacquie Halburnt/Commander of the American Legion stated the Legion
sends out over 600 packages to the troops serving our county with
products donated by the community. The funds would help offset the cost
of postage for the packages.
Sharon Gartner/Estes Park Gun & Archery Club stated the request would
fund improvements to the indoor shooting range used by the Gun Club,
Estes Park Police Department, Larimer County Sheriff’s Department,
Rocky Mountain National Park Rangers and the general public. The funds
would be used more specifically to upgrade the heating system.
ORGANIZATION 2010 BUDGET
Arts & Education:
Art Center of Estes Park, $800
Chamber Music Festival, $800
Community Jazz Concert Series, $800
Estes Village Band, $800
Oratorio Society of Estes Park, $800
Estes Valley Historical Society, $1,500
$5,500
Transportation:
Special Transit, $27,500
$26,000
Housing:
Estes Park Housing Authority, $161,500
Habitat for Humanity, $5,000
$166,500
Youth:
Estes Valley Investment in Childhood
Success, $26,000
Estes Learning Place, $2,000
Circle of Friends Montessori School, $5,000
Partners of Estes Park, $3,800
EP Non-Profit Resource Center Inc., $1,200
PACK, $4,000
$42,000
Food Tax Refund $20,000
Human Services:
American Legion, $1,500
Crossroads, $19,000
E.P. Salud, $19,000
Estes Valley Victim Advocates, $4,000
Radio Reading Service, $500
Estes Park Gun & Archery Club, $3,000
$47,000
Sister Cities Int’l. Conf. Student Participation, $8,500 $8,500
Town Board Budget Study Session – October 23, 2009 – Page 5
Rita Kurelja/Estes Park Housing Authority Director thanked the Board for
continued funding. She stated the EPHA continues to seek other sources
of funding to decrease its dependency on Town funding and has
decreased funding requests by over $106,000 in the past 6 years. In
conjunction with the Board of Realtors, a new Estes Valley Workforce
Housing Assistance Fund has been created to help assist lower income
households with down-payments and would be available to households
with higher incomes than the Authority can help (80% to 120% AMI). The
program is currently funded by donations and fundraising efforts. The
Cleave Street project may receive a grant from Energy Outreach of
Colorado to completely renovate the heating system. The EPHA Board
continues to review the best use of a property in the Northend for the
community, i.e. rental units versus homeownership.
Mary Bolgeo/EVICS President, Nancy Almond/EVICS, Janice
Newman/Childcare Endowment Fund, Beverly Thurber/Early Childhood
Council of Larimer County – Ms. Bolgeo stated EVICS has provided
$14,000 in scholarship in 2009 and raised over $17,000. She thanked the
Board for their continued support and for making a difference for working
families in Estes Park. Janice Newman stated the goal for the Childcare
Endowment Fund is to raise $500,000 to sustain EVICS in the future. Ms.
Almond stated the scholarship fund helps parents maintain jobs and
sustain the economic viability of our community.
Concluding all public comment, the Board expressed their appreciation to all those in
attendance, noting their good work in the community.
MISCELLANEOUS
Mayor Pinkham commented on the need to educate the public on the fact the Town only
employs needed staff and has been able to maintain the current staffing levels because
of past and current Board’s fiscally responsible decisions. Blackhurst reiterated
employee salaries and benefits are only 57% of the General fund compared to other
mountain communities with 65% - 75%.
Mayor Pro Tem Levine suggested the $1,900 budgeted and not allocated for
Community Service grants should be granted to the Estes Valley Workforce Housing
Assistance Fund. Mayor Pinkham stated he would review the 2009 contingency fund to
determine if funds would be available for this worthy effort.
The Board requested staff provided information on how emergency funds could be used
for discussion at the next Town Board meeting.
The Board discussed the possibility of selling Lot 4, Stanley Historic District and the
value of the property. The revenue from the property could help to fund improvements
at the fairgrounds.
The budget would be presented to the public during two public meetings to be held on
November 10, 2009 and November 24, 2009.
There being no further business, Mayor Pinkham adjourned the meeting at 11:40 a.m.
Jackie Williamson, Town Clerk