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HomeMy WebLinkAboutTB Budget Study Session 2012-10-05 Town of Estes Park, Larimer County, Colorado, October 5, 2012 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 5th day of October, 2012. Board: Mayor Pinkham, Trustees Blackhurst, Elrod, Ericson, Koenig, Norris and Phipps Attending: All Also Attending: Town Administrator Lancaster, Assistant Town Administrator Richardson, Finance Officer McFarland, Directors Bergsten and Zurn, and Town Clerk Williamson Absent: None Mayor Pro Tem Blackhurst called the meeting to order at 8:00 a.m. 2013 BUDGET PRESENTATION The proposed 2013 budget was prepared with a number of substantial changes in reporting methodology such as spending down the General Fund balance to 25% and using the additional funding for street improvements (approximately $535,000); increase projected sales tax revenues by $500,000 to $7.8 million for both 2012 and 2013; the 2013 budget includes a 2% market adjustment and a 2% merit pool for employee compensation (4% total); the Community Reinvestment Fund (CRF) format has been updated to include Town capital projects thereby increasing the complexity and creating a project-specific fund; re-establishment of the medical fund with the Town moving to medical self-insurance; transfers have increased significantly from the General Fund with the movement of all capital projects to the CRF, i.e. funding for projects such as street improvement; Transportation funding (shuttles) has been moved to the Community Services fund under Visitor Services; Group Sales moved to the General Fund under Executive from the Community Services fund; Conference Center moved to Buildings; and the Theater Fund would be discontinued in 2012 with FOSH funds to be distributed in early 2013. The 2013 budget presentation includes columns with the 2011 actuals, 2012 original budget, 2012 revised budget and the proposed 2013 budget. The Tabor set aside, projected at $462,500 for 2013, resides in the General Fund with the Catastrophic Loss Fund dissolution and absorption into the General Fund. In 2013, the PILOT has been calculated using industry-wide methodology, which thereby decreased the PILOT significantly; however, the transfer percentage has been increase to cover the difference. The transfer remains below 10%. The Auditors recommended transfers between the General Fund and the utilities funds be netted in 2012; i.e. Catastrophic Town Board Budget Study Session – October 5, 2012 – Page 2 Loss to utilities, utilities percentage to General Fund. The transfers from the General Fund are forecasted to increase in 2013 from a revised $2.47 million in 2012 to $3.17 million in 2013 due to realigning of several funds and the addition of all capital projects such as STIP to the CRF. The Board requested staff develop a policy on retention of Town-owned properties, future land acquisition and the sale of Town-owned properties. The Board discussed the option of selling assets such as Town owned land and utilizing the proceeds to complete other capital projects. Staff suggested bringing a draft policy on the purpose of owning Town property with criteria on ownership/disposition to a study session in the first quarter of 2013. COMMUNITY REINVESTMENT FUND The fund was established by Resolution 18-00 as a result of voter approval to allow the Town to collect and retain revenues in excess of Tabor limits to be utilized for projects that would reinvest in the community. The fund was utilized to build major capital infrastructure through 2012. For 2013 ,staff suggested centralizing all projects from the General Fund and Community Services Fund into the CRF in order to easily review capital projects competing for funding and thereby prioritize projects based on available funding. The fund projects $800,000 transfer from the General Fund with 7 projects proposed; $435,000 in STIP funding transferred from the General Fund with no corresponding expense in an effort to build a fund balance for a major road repair of Dry Gulch in 2014; and a continuation of $250,000 set aside for the future Museum storage facility. The ending fund balance in 2013 is estimated at $1.2 million. Staff has expended nearly $1.2 million in STIP projects in 2012. Increased revenues have made an approximately $535,000 available in 2013 to expend if the Town continues to hold the fund balance at 25%. Mayor Pro Tem Blackhurst stated objection to the reformatting of the CRF from a simple capital projects fund to a fund which contains all capital projects from the General Fund. The proposed change would allow General Fund departments to utilize funding in the CRF and complicate the once simple capital fund. This reduces the Board’s ability to reserve fund balance for future capital projects with the individual departments utilizing the CRF for capital projects. Trustee Norris commented on the importance of having all capital items in one fund to allow the Board the ability to see the capital needs Town wide; however, he suggested the items be grouped into types such as required by law, infrastructure maintenance, new infrastructure, etc. The complexity of the fund reinforces the need for a capital asset management plan that includes information on key milestones and benefits of projects to the community. Mayor Pinkham arrived at the meeting at 8:55 a.m. Discussion followed regarding specific projects and has been summarized: The Board requested staff review other options to secure the Birch Ruins; conduct a study to determine the feasibility of rehabbing the building; and use the estimated $18,000 for a Town Board Budget Study Session – October 5, 2012 – Page 3 fence to seed the fundraising efforts by the community to address the future of the building. Trustee Koenig requested the Town budget for a consultant to evaluate the project, i.e. fence, rehabilitation, etc. The Board discussed the funding of the museum storage facility in 2013 at $250,000; the need to complete the Museum/Senior Center Master Plan prior to allocating additional funding; and whether or not to freeze funding for 2013 and/or release the $200,000 set aside in 2012 for other projects. Mayor Pinkham called a break at 9:40 a.m. and reconvened the meeting at 9:50 a.m. EMPLOYEE COMPENSATION Administrator Lancaster stated the compensation policy needs to be updated and staff would recommend moving away from Cost of Living Adjustment (COLA) and move toward a market based system and merit. A compensation study and classification study would be completed in 2013 to review the Town’s compensation policy. Staff reviewed the compensations proposed by other communities in Colorado as well as the market study completed by Larimer County for 2013 which demonstrated an average of 2% increases across the board with a 3% merit; therefore, staff is proposing a 2% increase and 2% merit. Trustee Elrod stated the Town has an adopted Personnel Policy manual which outlines the timing of reviews annually. The Town has not followed the policy which requires reviews to be completed during the first of the year rather than on the employees’ anniversary date which is the current practice. He requested the Town follow the adopted policy. INTERNAL SERVICES FUNDS MEDICAL The fund maintains the medical premiums and fund balances as the Town moved to self insurance in 2012. The 2013 budget contains a 15% increase in medical and dental premiums and no increase in vision as the Town enters the second year of a two year contract with VSP. Since the draft budget was prepared the Town’s insurance brokerage firm Gallagher Benefits has calculated the medical increase to be approximately 5%. FLEET MAINTENANCE The fund maintains all equipment and charges the appropriate department for the services related to equipment owned and operated by the department. The Fleet division would be fully staffed in 2013 with 25% of the Town’s rolling fleet to be specified, purchased and replaced throughout the year. Both revenues and O&M would remain flat in 2013. INFORMATION SYSTEMS TECHNOLOGY The Internal Service Fund manages Town wide information systems including technical support, network hardware management, maintenance, security, phone communication Town Board Budget Study Session – October 5, 2012 – Page 4 management, audio-visual support, software licensing, external connectivity, database management, maintenance contracts, user training and GIS services Town-wide. Each department pays a fee based on the equipment the department utilizes (laptops and computers, servers, audio and video components, software, copiers and telephone components). The division would continue to fund the project management for the SunGard/OneSolution migration, replacement of a number of security cameras and DVRs, double internet speed at no additional cost and raise public awareness of the Town’s underutilized fiber optics. Revenue and capital increase in 2013 for projects noted and O&M remain flat as it mainly contains funding for maintenance contracts. Mayor Pro Tem Blackhurst commented the IT capabilities at the conference center should be evaluated and upgraded. VEHICLE REPLACEMENT The Internal Services Fund maintains a fund balance for future vehicle purchases of $2.123 million at the end of 2012. The 2013 budget contains revenues of $429,098, an increase from 2012 and expenses of $604,000 to purchase 34 vehicles for Parks, Light & Power, Police, Streets and Building Safety and Water. The available fund balance would continue to decrease with the replacement of vehicles with an ending fund balance of $1.6 million in 2013. In 2013, the fund would be used to purchase new vehicles and equipment such as police light bars rather than purchasing equipment separate from the individual department budget. GENERAL FUND. Each fund was reviewed and requests for additional information are noted below: • Legislative – In 2013 the budget contains the addition of IT costs associated with computer, IPads and phones used by the Town Board. These costs were allocated in the Executive fund previously. Additional IPads have been budgeted in order to move toward a paperless agenda and packet process. Personnel costs have increased with approved increase in Board salaries and benefits. • Judicial – The 2013 budget contains no material changes over 2012. • Executive – The fund changes significantly with the removal of Administrative Services department revenues and expenses and the addition of the Sales and Marketing of the Conference Center. Alliance for Innovation is a consortium of government entities and allows staff and all employees of the Town to utilize them as a reference/research to best practices. • Administrative Services – The Election fund (1400) would be renamed Administrative Services in 2013 and contain the revenues and expenses for the Town Clerk and Human Resources. Elections would become a line item in the budget with one coordinated election in November 2013 budgeted. A compensation/classification study would be conducted with additional funding from the utilities. Additional training has been added for town wide employee training in 2013. Revenues for business and liquor license are conservative and decrease for liquor with the number of liquor licenses down in 2012. Trustee Town Board Budget Study Session – October 5, 2012 – Page 5 Elrod requested staff provide a summary of salary and benefit paid for by the Town as a total personnel expense per employee. • Finance – Expenses increase slightly in 2013 with the addition of a full-time staff member added with the retirement of both part-time clerks in 2012. Trustee Elrod stated he is not comfortable that the Town is receiving revenues due for services provided to other entities through the related IGAs and MOUs. Staff would review the process used to track agreements and payments. • Employee Benefits - This fund contains the homeownership program, tenure awards, wellness program, post employment benefits and employee gatherings. There are currently 3 employees participating in the homeowner program with three additional participants anticipated for 2013, increase the number of eligible retirees eligible for post employment benefits, add funding for the wellness program associated with medical self insurance, and fund an actuarial study for the post retirement benefits as required every two years. MISCELLANEOUS Administrator Lancaster stated staff has been reviewing options to place an ice rink downtown this winter. The cost of a commercial ice rink would be approximately $120,000; however, the City of Fort Collins Downtown Business Authority would be willing to lease an ice rink for $60,000 to $70,000. The rink would go in the Riverside parking lot and the Recreation District would operate the warming house and rent the skates. This would allow the Town to try a rink for a season to see if it has an impact in bringing people downtown and keep businesses open during the off season. The rink would be installed the weekend prior to Thanksgiving and run through March 1st. The Board consensus was to move forward with the project; however members of the Board would request staff review how an entrepreneur might run an ice rink in the future and how it may affect those who provide ice skating in Town currently. Trustee Ericson stated he would not be in favor of the project and stated the money could be used to complete other projects. The next Budget Study Session is scheduled October 12th, 8:00 a.m. – 12:00 p.m. There being no further business, Mayor Pinkham adjourned the meeting at 12:10 p.m. Jackie Williamson, Town Clerk