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HomeMy WebLinkAboutTB PreBudget Study Session 2012-06-29 Town of Estes Park, Larimer County, Colorado, June 29, 2012 Minutes of a Study Session meeting of the TOWN BOARD of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in Rooms 202/203 in said Town of Estes Park on the 29th day of June, 2012. Board: Mayor Pinkham, Mayor Pro Tem Blackhurst, Trustees Elrod, Ericson, Koenig, Norris and Phipps Attending: All Also Attending: Town Administrator Lancaster, Assistant Town Administrator Richardson, Finance Officer McFarland, Assistant Finance Officer McDougall, Directors Bergsten, Chilcott, Kufeld, and Zurn and Town Clerk Williamson Absent: None Mayor Pinkham called the meeting to order at 8:00 a.m. BUDGET POLICIES AND OTHER INFORMATION. Finance Officer McFarland reviewed the budget calendar for 2013 stating a number of the line items relate to deadlines for staff; however, the Board would continue to hold budget meetings on Friday mornings in October. Trustee Ericson requested a high level review of the budget be presented during the budget process as talking points for the Board. The Board discussed and set a goal retreat for 2013 on August 2, 2012 with a location to be determined. 2012 REVIEW/FUTURE. Finance Officer McFarland stated revisions to the 2012 budget and the development of the 2013 budget are affected by the performance of sales tax collections for 2012 and the level and direction of fund balance in the General Fund. At present, the 2012 sales tax collection has been up 14% over 2011 and 11% ahead of the 2012 budget. It was noted after the 2002 fire season, sales tax was down for 9 straight months, and therefore, staff stated some concern that summer sales tax collection could be affected by the severe fire season Colorado has faced to date. Moving forward, staff will forecast sales tax flat. 2013 POLICY DEVELOPMENT. Target Fund Balance During the development and final approval of the 2012 budget, staff was directed to lower the General Fund balance to 25% rather than the historical 30% to help fund road improvements. The current 56% fund balance has been reduced to 41% with the rollover of the 2011 STIP funding and is reduced to 31% when the Catastrophic Loss Fund is removed from the General Fund balance. Board discussion followed and it was the consensus of the Board to move forward with a 25% fund balance in 2012 and spend fund balance on road improvements. General Fund balance targets would be discussed by the Board for 2013. Staff noted the current level of expenditures would not be sustainable moving forward without considering other funding mechanisms to complete projects. Catastrophic Loss Fund The Town has a General Fund balance at the end of 2011 of more than $6 million or 56% due to the Catastrophic Loss Fund accounted for in the General Fund of approximately $1.28 million, Medical Insurance Fund ($250,000), rollovers ($91,000) Town Board Study Session – June 29, 2012 – Page 2 and Street Improvement (STIP) funds ($290,000) returned to the General Fund. The CLF was established after the Long Lake flood to provide immediate funding after a disaster; however, the Town now has property and liability insurance to provide funding of improvements after a disaster. This fund could be used for general Town expenses or restricted. The Board discussed the uses of the CLF and concluded a Board policy should be drafted to address how the funds should be identified in the future, i.e. rolled into the General Fund reserves or restricted and what should be the fund balance if restricted. Community Services Grants The Town has historically reviewed and approved grant funding to local groups during the budget process; however, there is no formal policy established to outline what entities qualify and how to determine annual funding levels. The current grants are paid out quarterly and include the support of entities outside of Estes Park. Town Administrator Lancaster stated the Board should discuss the outcome of funding, such as to reduce poverty and support early childhood development. The Board would hold a study session to establish a basis for grant funding and what should be funded. Funding of the Local Marketing District dba Visit Estes Park needs further discussion with the district in order for the Board to understand the benefit to the Town. Further discussion by the Board and staff ensued regarding workforce housing and childcare and the need to address them as economic development issues. A healthy workforce is required in order to have a health economic development program for the Town. Trustee Koenig noted that programs in other mountain towns may not work in Estes Park because our community is relatively close to other Front Range communities in which families may want to live. The Housing Authority is not able to use federal funds to address work force housing; therefore, other alternative funding mechanism would need to be identified. Town Administrator Lancaster suggested the Town consider Requests for Proposals for the distribution of the FOSH funds. Mayor Pro Tem Blackhurst requested the Town discuss the original intent of distributing the FOSH funds with members of the original fundraising group. Financial Relationships with other Taxing District The Town, through an IGA with the Estes Valley Fire Protection District, provides 7% of sales tax receipt annually for operations. The agreement can be reviewed annually and requires a notice from either party by July 1st to terminate the agreement at the end of the year. The Town has provided financial assistance to the Local Marketing District (LMD) since its formation; however, the funding has decreased each year. The LMD continues to request support during the budget process. Trustee Elrod commented on the need for other local districts that serve the valley to seek financial assistance from the County. Discussion followed on the need to assess the expenditures by both the Town and the LMD on special events, and at what level should each be funding the advertisement of events. Trustee Norris stated the LMD has been conducting a study to provide a correlation on advertising dollars spent and tourism sales tax dollars created. The study would be presented to the Board this fall to help quantify the impact. A policy should be developed to address fee waivers to other taxing districts. The current policy allows for up to $3,000 to be waived by the CDCS Committee and funding in excess shall be included in the budget process. A policy would be forwarded for consideration by the Town Board. Transfer Out The Town has transferred funds to the Community Reinvestment Fund (CRF) annually to fund current and future projects. Currently the Town transfers $800,000 annually, which correlates to the funds saved on marketing/advertising prior to the creation of the LMD. Mayor Pro Tem Blackhurst stated the advertising funds were to be used for Town Board Study Session – June 29, 2012 – Page 3 tourism based projects; however, at this point in time the funds could be used for other Town projects. The Town maintains special revenue funds for Open Space and Community Services (CSF) (Museum, Senior Center, Visitor Center, and Conference Center). The CSF required a transfer from the General Fund in the amount of $1.35 million in 2012. Staff requested direction on merging the CSF with the General Fund or designate CSF fund balance for CSF related expenditures only. This was a recommendation from the auditors in 2011. The Board consensus was to maintain the funds as separate accounts. Transfer In The Light and Power and Water utilities transfer revenues to the General Fund annually at approximately 8.5% L&P and 4.0% Water. These percentages have been fluctuated over time, but have been at their current levels for the last several years. The transfers provide approximately 10% of the General Fund’s annual revenues. A draft Utility Transfer Policy has been developed and sent to the Board for review. The policy would identify the appropriate percentage fee to be paid by the utilities for the Town’s investment in developing the municipally owned utilities. A policy should be established prior to the budget process to provide staff with an estimate for 2013 revenues. CAPITAL PROGRAMS Street Improvement Plan The Street Improvement Plan (STIP) currently resides in the General Fund. Staff recommends moving the STIP funding to the CRF because unused STIP balances affect the General Fund balances at the end of each year. The CRF retains funds not allocated each year. Discussion followed on the topic and including the possible inflation of the funds available for street improvements if STIP funding is placed in the CRF; maintain capital projects in one fund; the need to separate out capital street and projects from maintenance. Director Zurn stated the capital versus the maintenance is already allocated separately in the General Fund. The Board discussed the 2012 funding for street improvements and the consensus was to move forward with utilizing the rollover funds and any General Fund dollars over 25% fund balance to complete road improvements in 2012. Community Reinvestment Fund The fund has the following project expenditures outlined for 2012: stall barns - $1.2 million; police remodel - $140,000, Wiest retaining wall – over budget by $10,000 - $15,000; Visitor Center structural repair - $50,000, Elm Road effluent - $110,000, parking structure - $40,000; Museum master plan - $25,000, and MPEC pro-forma - $40,000. The MPEC Pro Forma would include a programming element not included in past Pro Forma conducted for the building as well as events to be held in the facility over 5 years. Once the Pro Forma has been reviewed, the staff and the Board should then decide on any alternative uses for the building. Trustee Koenig stated concern with using the building during the height of the season for horse stalls as planned for in the past. Mayor Pro Tem Blackhurst commented the facility would require a subsidy; however, the net effect would be an increase in sales tax. Director Zurn informed the Board the cost to build the MPEC would increase by approximately $1 million for infrastructure improvements if the building was relocated to the southeast corner. A future remodel of the Visitor Center would be required due to the increase in the number of visitors currently and a significant increase once the parking structure is complete. Town Board Study Session – June 29, 2012 – Page 4 Trustee Ericson requested the completion of the riverwalk through the Park Theater Mall property be added to the 2013 budget. OTHER REQUESTED DISCUSSION TOPICS. Events Mayor Pinkham presented a request from Dr. Durward to increase the Town’s funding for accommodations for participants in the Irish Scottish Highland Festival for 2013. The Town needs to discuss the future of the event and how it will be funded. Transportation The shuttle bus counters were not purchased this year because they could not be installed at the beginning of the season; therefore, they will be purchased during the off season and installed for 2013. Trustee Ericson questioned the Town’s investment in the shuttle system as it relates to sales tax revenue. He stated it should be reviewed Trustee Elrod stated the system is a community benefit as well as a benefit for the visitors. Employee Compensation/Benefits Update Administration would bring forward a recommendation for employee compensation and a staffing review during the budget process. Town Owned Property A review of Town owned properties should be conducted to measure the effectiveness of use and whether the Town should continue to own the properties. The Town should also address how to make better use of under-utilized Town assets such as the fiber ring. There being no further business, Mayor Pinkham adjourned the meeting at 12:00 p.m. Jackie Williamson, Town Clerk