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HomeMy WebLinkAboutTB Budget Study Session 2010-10-22 Town of Estes Park, Larimer County, Colorado, October 22, 2010 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 22nd day of October, 2010. Board: Mayor Pinkham, Trustees Blackhurst, Elrod, Ericson, Koenig, 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 8:00 a.m. UTILITIES Director Goehring stated the bond-funded capital improvements for the Light & Power and Water will be completed by the end of 2010. A financial plan and cost-of-service analysis would be completed this year with the results presented to the Town Board during the board meeting in December. • Light & Power – The fund balance at the end of 2011 would increase to $4.084 million because of a decrease in project costs in 2010. Staff would conduct fewer capital improvements because many projects have been completed in recent years, and Platte River Power Association (PRPA) has increased rates that would be absorb by the department, thereby lowering the rate increases in 2011 for the consumer. The debt service ratio is 5.36, well above the required 1.25 or $2.78 million fund balance. 2011 projects include circuit upgrades from the switchbacks to Glen Haven, upgrade to tree cable on overhead lines, annual pole replacement program, and increased tree trimming due to bark beetle infestation and fire mitigation. Revenues would increase with the proposed rate increase. The source of supply increases by 6.2% from PRPA because of new environmental standards and renewal energy increase from $1.30 per block to $2.00. Distribution portion of the budget increases slightly due to personnel costs related to insurance and 2 staff members achieving journeyman status. Customer accounts contain personnel from both Finance and Meter department. Trustee Elrod questioned whether or not statements could be delivered electronically to reduce costs and make credit card and debit card payments available. Town Administrator Halburnt stated new software may allow electronic billing in the future; however, the customer would have to opt in to receive electronic statements. The use of credit cards has been and continues to be reviewed by the Town Clerk’s office as an option to pay for different services in Town Hall, i.e. utility bills, business licenses, tickets, and permits. The Board was supportive of accepting credit card payments with a convenience fee, and stated it would increase productivity and decrease shut-offs. The Board requested staff review the need for a printed form or the use of other statement options such as a postcard. Administration and General expenses decrease in 2011 with personnel costs flat and less spent on engineering. The notation of legal under 22-98 should be removed. Trustee Elrod would like staff to provide a listing of the revenues and expenses the land owned by Town generates. Town Board Budget Study Session – October 22, 2010 – Page 2 • Energy Efficiency – The State will not be offering rebates in 2011. The Town would be increasing incentives for commercial buildings to replace light fixtures, for new construction and remodels that design efficiency measures, and residential lighten up program for the replacement of bulbs for CFL bulbs. Expand the renewable energy purchase program through the purchase of wind energy credits. Staff will work with the Senior Center to improve lighting, heating, cooling and the replacement of kitchen equipment. PRPA offers an Energy Efficiency Certification Program that will be completed by 2 staff members. • Water – The fund balance at the end of 2011 would be $1.365 million with a debt ratio of 1.44 compared to the required 1.10 or $687,801 fund balance. Projects for next year include a third stage membrane pilot program at Marys Lake Water Treatment facility, increase the size of the pressure reducing valves at Prospect Estates PRV station and Strong PRV pump station, replace the Thunder Mountain water pump, SCADA CPU scheduled replacement, replace chemical feeder and installation of process analyzers. Revenues and source of supply costs remain flat for 2011. Purification costs increase because of higher chemical costs, and required storage tank and building maintenance. Administration and General expenses decrease significantly by reducing engineering costs. Distribution costs increase with equipment purchase and an increase in personnel costs related to succession planning. The department will be promoting conservation programs and purchase of water saver kits. Customer accounts decrease with fewer new water meters being installed and a drop in uncollectible accounts. Debt service decreases with the final payment of the 1990 bond that funded the original Marys Lake Water Treatment Plant. The 1997 bond that funded the Highway 7 water main replacement will be paid off in 2011. The department should be spending $800,000 to $1 million a year to replacing the aged distribution system. Mayor Pinkham called a break at 9:25 a.m. and reconvened at 9:40 a.m. POLICE PENSION 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 fund ran out of money and the General Fund is now paying for the cost of the pension. THEATER FUND This fiduciary fund is to be used by the Supporters of the Performing Arts (SOPA) to raise funds to build a performing arts theater. The Board discussed the allocation of $21,000 in expenses per year when little to no money has been spent the last couple of years. Town Administrator Halburnt stated without budgeted funds the Town would have to do a supplemental appropriation if SOPA expended funds in2011. The Board reached consensus to leave the $21,000 for O&M. The last column needs to be updated to read 2011. IMPACTS OF 60/61/101 Town Administrator Halburnt stated if the voters approve Proposition 101 and Amendment 60, the General Fund impact will range between $418,000 and $500,000. Administration and Department Heads provided suggestions on areas that could be cut from the 2011 budget and future budgets. Director Goehring stated the utility rates would increase to cover the additional costs. Discussion was heard and summarized: revisions to the budget would be long term and the Board would need to review items that are essential such as personnel and restructuring departments; examine performance based budgeting; an emergency study session should be held immediately after the election to discuss options if passed; the Town Board Budget Study Session – October 22, 2010 – Page 3 discussion; and the approach to budgeting should be reviewed through productivity studies. EMPLOYEE BONUS Town Administrator Halburnt stated the 2010 budget contains 2% for employee bonuses if the year’s budgeted revenues were exceeded. She requested Board approval for the bonuses in December for all employees excluding employees on a performance improvement plan. Trustees Blackhurst, Levine, Ericson and Koenig were supportive of the one-time bonus. Trustee Miller would like to discuss the issue after the election. MISCELLANEOUS The budget would be presented to the public during two public meetings to be held on November 9, 2010 and November 23, 2010. There being no further business, Mayor Pinkham adjourned the meeting at 10:06 a.m. Jackie Williamson, Town Clerk