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HomeMy WebLinkAboutTB Budget Study Session 2011-10-14 Town of Estes Park, Larimer County, Colorado, October 14, 2011 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 14th day of October, 2011. Board: Mayor Pinkham, Mayor Pro Tem Levine, Trustees Blackhurst, Elrod, Ericson, Koenig and Miller Attending: Mayor Pinkham, Mayor Pro Tem Levine, Trustees Blackhurst, Elrod, Ericson, Koenig and Miller Also Attending: Town Administrator Halburnt, Deputy Town Administrator Richardson, Finance Officer McFarland, Town Clerk Deats Absent: None Mayor Pinkham called the meeting to order at 8:00 a.m., and added a discussion relative to the town administrator selection process to the agenda. COMMUNITY SERVICES FUNDING REQUESTS (General Fund) Town Administrator Halburnt, Trustees Ericson and Koenig, reviewed the Community Service Grant (CSG) applications and recommended funding for the Food Tax Refund and 22 local organizations in an amount equal to the amount budgeted in 2011, for a total of $270,900 as follows: Trustee Koenig said during the review of the applications the following items were considered: ORGANIZATION 2012 BUDGET Arts & Education: Art Center of Estes Park, $500 Cultural Arts Council, $500 Estes Land Stewardship, $400 Estes Valley Historical Preservation, $1,000 EP Repertoire Theater Company, $700 Estes Park Jazz Big Band, $900 Estes Park Village Band, $900 Life Rhythm’s Music Therapy, $1,000 Oratorio Society of Estes Park, $700 $6,600 Transportation: Special Transit, $27,300 $27,300 Housing: Estes Park Housing Authority, $123,310 Habitat for Humanity, $5,000 $128,310 Youth: Estes Park Learning Place, $2,000 Estes Valley Investment in Childhood Success, $30,000 Partners of Estes Park, $4,000 $36,000 Food Tax Refund $17,500 Human Services: Audio Information Network of CO, $500 Crossroads, $18,000 Estes Park Gun & Archery, $1,800 Estes Park Nonprofit Resource Center, $2,500 E.P. Salud, $19,000 Estes Valley Victim Advocates, $5,000 $46,800 Sister Cities Int’l. Conf. Student Participation, $8,390 $8,390 Town Board Budget Study Session – October 14, 2011 – Page 2 • does the organization provide a unique service in Estes Park? • does the program benefit a large section of the population? • does the program meet child care needs, human services needs, support youth, support the arts? • what other funding sources are utilized by the organization?, and • does the group actively participate in funding their own projects? The Trustees asked that the Estes Park Library District be removed from the scope of service narrative related to Community Services Grants, and that organizations that did not submit an application for funding be identified. Mayor Pinkham noted that compared to most municipalities, the Town of Estes Park’s grant process is a generous one. Trustee Elrod said although there is no question that the CSG funds are put to good use, he suggests the Board discuss whether this kind of funding should be left to private fundraising efforts, thereby freeing up monies for street improvements and municipal projects that would benefit the entire community. The Mayor agreed that this topic should be discussed by the Board. The following agency representatives were present and all thanked the Board for the Town’s ongoing support and funding. ƒ Christy Crosser, Non-Profit Resource Center ƒ Steve Blacksher, Special Transit ƒ Betty Baier, EVICS ƒ Mary Mesropian, EVVA ƒ Eileen Flaherty, Salud ƒ Jim Thompson, Sister Cities Paul Newendorp, representing the Community Garden group, expressed disappointment that funding was not received for this project. He said a community garden would benefit Estes Park and said the group wanted to get the ball rolling with the intention that a community garden would be a great investment on the part of the Town in the same way playgrounds, parks, and bike paths are all investments in quality of life aspects of the Town. The Trustees supported the idea of a community garden but said the CSG is designed to fund organizations with a volunteer base, and recommended soliciting the support of a service group. Trustee Koenig proposed that, at the request of Kathy Irons and Lloyd Scott, the Chamber Music Society CSG application be reviewed and considered for funding. The application was submitted after the deadline due to extenuating circumstances. Trustee Blackhurst thanked the Town for continued support of the Estes Park Housing Authority (EPHA) which continues to reduce its funding request and is striving to be self- sufficient. Finance Officer McFarland asked about changes related to the distribution of CSG funds for 2012. Trustee Koenig said that applicants were notified that funds will be distributed in quarterly payments in 2012 rather than in lump sum payments as in the past. Mayor Pinkham called for a five minute break at 9:05 a.m. and resumed the meeting at 9:10 a.m. POLICE Chief Kufeld reviewed the Scope of Services for the Police Department which includes Patrol, Support Services, and Community Services divisions. Total revenue for 2012 of $404,375 has increased due to grants to offset the Restorative Justice case worker position. 85% of the department’s expenses are personnel related, 14% O&M costs, and 1% capital. For 2012, $10,000 has been budgeted for the purchase of an Town Board Budget Study Session – October 14, 2011 – Page 3 intoxilyzer which was previously supplied by the Department of Health; personnel expenses have increased due to benefits, as there is no increase to the number of personnel; funds have been budgeted for the replacement of three tough-books, increases to phone maintenance and property and liability insurance; and the installation of a doorway separating offices from the break room and patrol room to create a quieter working environment. Tasers and tough books are on a replacement rotation in order to eliminate the need to budget a large amount of money for the replacement of this equipment all at one time. Clarify the move of CSOs to Patrol by using the term “Community Services” rather than the account number in notation under Patrol Personnel Levels. Chief Kufeld said that the Town of Estes Park has become a training organization for police officers and dispatchers due to its inability to compete with salaries offered by agencies in the valley. He said it costs the Town over $87,000 to train, outfit, and pay an officer for a year, and said the department is exploring ways to retain employees for more than one or two years. PUBLIC WORKS Engineering Dir. Zurn reviewed the scope of services for Engineering. Projects for 2012 include the proposed Virginia Drive, Park Lane, MacGregor Avenue rehabilitation project which will consist of roadway resurfacing, improving water and sewer infrastructure, addressing drainage issues, and the potential addition of sidewalks on Virginia Drive, to be done in conjunction with Estes Park Sanitation District’s completion of sewer line replacement on Virginia Drive. Budgeted expenses for 2012 include $58,454 in personnel costs which have increased due to benefit costs, and $84,387 in O&M which include the design fees for the rehabilitation project described above, a development standards manual update, and assistance in public education related to addressing streets and storm water conditions. Streets Revenues for 2012 are anticipated to be $358,999, with expenses of $1,497,109. The proposed expenses include the purchase of a snow box to increase snow-plowing operations efficiency, decreased funding for street sign replacement program, and the proposed improvements on Virginia Drive, Park Lane, and MacGregor Avenue. The Streets budget contains the capital portion of the project and in addition, Street Improvement Program (STIP) monies remaining from 2011 will be rolled over to fund the project, with 1.5 years worth of STIP being allocated to this project. Dir. Zurn noted that revenues are trending downward and, therefore, expenses are also trending downward. Dir. Zurn noted that personnel costs are fairly flat, with O&M major expenses attributable to repair and maintenance contracts, and capital expenses primarily for the STIP project for 2012. The concrete rehabilitation program funds were reduced from $50,000 to $35,000 to balance the budget. Trustee Blackhurst proposed that the Board discuss reducing the monies held in reserve from 30% to 25%, freeing up approximately $350,000. He said the Town is seeing an increase in revenue of 3% to 5% for 2011, which conservatively could be $300,000 above budget. He proposed allocating the additional $350,000 from reserve to STIP in 2012 on a one time basis. He said the street improvement budget has been flat at $400,000 a year over the past five years and it is time to address the condition of our streets. The Trustees concurred that street improvements need to be addressed and that the entire budget for 2012 must be presented for review and consideration as part of the discussion, as additional savings may be realized in other areas of the budget that could be redirected into street improvements. Trustee Elrod asked staff to provide background regarding the percentage of fund balance currently kept in reserve and the possible effects of reducing the percentage so that the Board can make an informed and conscious decision. Finance Officer McFarland said he has a large amount of information related to fund balance and said that communities dependent on Town Board Budget Study Session – October 14, 2011 – Page 4 sales tax may be inclined to keep a higher percentage in reserve than those communities whose revenues come largely from property taxes. He suggested waiting until February to make a final number decision if the Board decides to go with this concept, to have final numbers related to sales tax, rollovers, and fund balance. Town Administrator Halburnt said staff will prepare a document to illustrate what can be accomplished with additional funds if they become available, to include options for projects and maintenance vs. repair of streets. The Mayor said this discussion ties in with the Community Service Grants and brings even more meaning to a discussion of what the Board considers important in terms of providing support to the community in the face of other things, such as infrastructure, going unfunded. Parks Personnel costs of $593,980, are slightly higher for 2012 due to increases in employee insurance benefits; with O&M at $355,021 primarily for repair and maintenance contracts, supplies, and design and development of the next phase of Bond Park; and Capital at $18,500 to fund the annual in-house project, which for 2012 is the renovation of Children’s Park. Dir. Zurn said personnel costs and trash disposal costs are trending up with added responsibilities and additional trash collection related to increased visitation to Estes Park. Dir. Zurn said costs related to the removal of dead trees and also vehicle maintenance and fuel costs were reanalyzed and adjusted down to better reflect actual expenditures. TRANSPORTATION Dir. Kilsdonk said ridership is increasing as the community embraces the shuttle system with 56,900 people served in 2011. No revenues are realized from the shuttle with total O&M expenses budgeted for 2012 at $259,772. For 2012, $50,000 was added to the 2011 shuttle contract base, an additional $5,000 was budgeted for fall weekend events such as the Fine Arts Guild Arts and Crafts Show, Autumn Gold, and Elk Fest; with $5,900 budgeted for maps and signage. Special charters previously listed in other funds have been consolidated into the Transportation Fund for 2012. Staff will be meeting with stakeholder groups later this fall to come back to the Board with proposed routes, number of days and hours of operation, and schedules for 2012. It was suggested to add a shuttle during the Halloween festivities for 2012 to decrease traffic in the downtown area. TRANSFERS 2012 transfers from the General Fund include a $750,000 transfer to the Community Reinvestment Fund and $1.375 million to the CVB/Community Services Fund. Monies previously transferred to the Senior Center and the Museum are now included in the CVB/Community Services Fund transfer. COMMUNITY REINVESTMENT The Community Reinvestment Fund provides funds for capital projects with monies coming from general fund transfers, grants, investment income, and, when applicable, TABOR excesses. Fund balance in the amount of $858,500 (as of 12/31/12) is reserved for SOPA site preparation, and $200,000 reserved for a museum storage facility. 2012 proposed projects include Stall Barns Phase III at $600,000; Police Department entrance remodel at $40,000; Barn W reroofing at $50,000, and Wiest pedestrian crossing signalization at $50,000. Inflows for 2012 include a general fund transfer of $750,000, and investment income estimated to be $15,000 for a total of $765,000. An additional $50,000 was allocated to the building account for structural repairs on the CVB. Finance Officer McFarland said that $1.6 million that has not been allocated to a specific project remain in the fund balance. He confirmed that if not Town Board Budget Study Session – October 14, 2011 – Page 5 required, the SOPA funds would be returned to the Community Reinvestment Fund with FOSH funds being dispersed to arts organizations. Dir. Zurn reported that grant applications have been submitted for 2012, however, no monies have been awarded at this point in time. He said CDOT is encouraging the Town to make application for a grant that would offset the Town’s commitment for matching funds, reducing the commitment from $900,000 to $300,000, and said that Federal Highway and Public Lands also may have grant opportunities for 2012. DTA Richardson reported that grant monies are not available to build new horse barns, however, there may be opportunities for low interest rate loans for that type of project. The Trustees discussed the $800,000 transfer which was initiated with the creation of the Local Marketing District (LMD). With the construction of the grandstands, a variety of other projects, and the improvements to Bond Park, the Town continues to meet its commitment to the public to reinvest in the community. CONSERVATION TRUST Revenues in this account are from the State lottery and are estimated at $32,500 in 2012. The bark beetle management ($15,000), weed control ($15,000) and Arbor Day tree replacement ($11,716) would be funded in 2012. The tree replacement allows the Town to maintain its Tree City designation. OPEN SPACE The Open Space Fund reflects the Town’s portion of a one-quarter of 1% sales tax increase that was passed by Larimer County voters in 1996. The funds are for trails and open space purchases and maintenance; the Fund will sunset in 2018. Revenues in the amount of $241,000 are estimated for 2012, with expenses totaling $261,902. The budget for this Fund contains no significant changes for 2012, with expenditures of $225,000 being costs associated with Bond Park improvements. Additionally, $36,703 are personnel costs for the Town engineer and Public Works Director and $199 in O&M. TOWN ADMINISTRATOR SELECTION PROCESS The Board discussed a process to follow in conducting a search for a new Town Administrator. The Mayor asked for input on the following: whether to initiate a national search; whether to engage a firm such as Mountain States Employment to help with the search; and whether to attempt to have a Town Administrator hired soon after the first of the year, or to wait until the new Board is seated in April. The Trustees concurred that a national search should be undertaken for a replacement and asked for information about Mountain States Employment, as well as other qualified head hunter organizations, and the costs associated with hiring such a firm, and noted that the Colorado Municipal League (CML) has a variety of resources to utilize. Mayor Pinkham stated that a hiring process will be developed following the selection of an employment firm. There being no further business, Mayor Pinkham adjourned the meeting at 12:16 p.m. Cynthia A. Deats, Deputy Town Clerk