HomeMy WebLinkAboutTB Budget Study Session 2013-10-25
Town of Estes Park, Larimer County, Colorado, October 25, 2013
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 25th day of October,
2013.
Board: Mayor Pinkham, Trustees Blackhurst, Elrod, Ericson,
Koenig, Norris and Phipps
Attending: All
Also Attending: Town Administrator Lancaster, Finance Officer McFarland,
Directors Bergsten, Winslow and Zurn, and Town Clerk
Williamson
Absent: None
Mayor Pinkham called the meeting to order at 8:00 a.m.
2013 BUDGET PRESENTATION
Town Administrator Lancaster stated the draft 2014 budget had been completed prior to
the flood on September 12, 2013. As the flood changed a number of assumptions, the
2014 budget was revised using key criteria: Highways 34 and 36 closed for an extended
period of time; decrease in sales tax revenues for the rest of 2013 and the first half of
2014; unanticipated cost to repair flood damages, including 12.5% match for FEMA;
unknown timeframe for reimbursement of funds expended for flood recovery efforts; did
not cut items that attract visitors to town, i.e. flowers, events, etc.; maintain employee
base through completion of the classification and compensation plan, no layoffs, hiring
freeze for positions such as Assistant Town Administrator and Facilities Manager,
however, other critical positions would be filled, i.e. Dispatcher, Sales and Marketing
and Planner; cut equipment purchases, decrease funding for vehicle replacement, and
IT transfers decreased; projects were eliminated for 2014 such as updated sign code,
Visitor Center parking structure, and improvements to SCADA system; and department
training budgets were cut back. Staff is optimistic the Town will recover quicker than
previously anticipated with the early opening of Hwy 36, businesses that are open are
experiencing a better than or sustaining October, increase in local shopping, and
12.5% of category A for FEMA reimbursement was covered by in-kind, therefore, no
matching funds were needed from the Town. Staff would come back to the Board
periodically to review the budget and request modifications throughout 2014, with the
prospect of adding projects back into the budget as the economy recovers; however,
staff has room to cut more from the budget if revenues do not bounce back.
Finance Officer McFarland added the General Fund balance was estimated at 30% in
2013 and projected a fund balance for 2014 of 19% with current assumptions. The fund
balance does not include Tabor reserves of approximately $392,641, an estimated 3%
of General Fund expenditures for 2014. Sale tax revenues are estimated to decrease
by $1.6 million from September 2013 through May 2014. The flood recovery costs are
an unknown at present and would be added to the final budget presented to the Board
on November 26, 2013 with updated estimates. Other items affecting the 2013/2014
General Fund include the potential cost of PERA retirement funds needed for those
employees choosing to move from ICMA to PERA as outlined in the approved
agreement between PERA and the Town, and health insurance increases of 5% are
less than the estimated 10% included in the budget. Significant cost-saving measures
were taken to maintain a fund balance, including $1.5 million in operational costs, 2%
merit pool eliminated, reduction in transfers to the IT and Vehicle Replacement funds,
delaying of maintenance/efficiency and other related projects.
The Board requested staff provide the Board with an itemized list of the projects
and maintenance items being cut in 2014 for use in the development of the 2015
Town Board Budget Study Session – October 25, 2013 – Page 2
budget, and the development of a list of items not covered by CIRSA and FEMA
that could have been covered by the Catastrophic Loss Fund if it had not been
dispersed.
COMMUNITY REINVESTMENT FUND
The fund has been decreasing over the last few years from $2.85 million in 2012 to an
estimated $357,869 in 2013. The 2013 budget includes grant funded projects requiring
matching funds such as the Visitor Center parking garage. Other projects budgeted for
the 2013 include Elm Road landfill mitigation, Visitor Center parking garage,
Performance Park overlay, bleacher replacement, Birch Ruin fencing, transportation
hub irrigation, PW/Utility remodel, and Street Improvement plan. A number of the 2013
projects are being delayed and moved to the 2014 budget and others are being
eliminated, including starting construction on the parking structure. The revised 2014
budget has been prepared with a reduction in General Fund transfer of $300,000 with
an additional $500,000 transferred to the Special Events division for the operation of the
new Multi-Purpose Event Center (MPEC). The 2014 budget has the first full year of
payments for the Certificate of Participation (COPs) note approved earlier this year to
complete the MPEC and the stall barn construction; NEPA study match for the Fall
River Trail, and legal fees for the recently awarded FLAP grant. The revenues for 2014
include $1.2 million in transfers and $330,000 in grant income. The ending fund
balance is estimated at $401,696 in 2014.
Director Zurn stated the STIP program would be placed on hold until 2016 when there
may be enough funds to complete the reconstruction of Dry Gulch Road. Funds have
not been budgeted in 2014 to address post flood issues that may arise, such as
potholes.
The Board requested staff provide a list of roads that need major repairs, and
suggested repairing Dry Gulch with the funds being held back from the delay in
the parking garage and the carried over STIP funds. Staff stated using the matching
funds for the parking garage match would demonstrate to the other agencies the Town
may not build the parking structure. To give up the grant and complete road
improvements would need to be a policy decision by the Board.
INTERNAL SERVICES FUNDS
MEDICAL
The fund maintains the medical premiums and fund balances as the Town moved to self
insurance in 2012. The 2014 budget contains a 10% increase in medical, no increase
in dental premiums and 5% increase in vision for a two year contract. 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 2014. Both revenues and O&M would increase as the
staff focuses on extending vehicle life to support the decision to not replace vehicles in
2014 and to eliminate contributions to the Vehicle Replacement fund to help maintain
fund balance next year.
INFORMATION SYSTEMS TECHNOLOGY
The Internal Service Fund manages Town wide information systems including technical
support, network hardware management, maintenance, security, phone communication
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 contributions by department would be reduced in 2014 by $100,000
and decrease the overall fund balance. Staff has budgeted funds for the outsourcing of
some functions such as help desk support; however, staff continues to analyze needs
Town Board Budget Study Session – October 25, 2013 – Page 3
and determine if the current staff can accomplish all tasks in house. The HTE fees
budgeted are to maintain the current maintenance of the system.
VEHICLE REPLACEMENT
The Internal Services Fund maintains a fund balance for future vehicle purchases.
Contributions to the fund for 2014 have been suspended from the General Fund,
Special Events and the Museum (approximately $850,000); however, the Enterprise
Funds, Light and Power and Water, continue to contribute and replace needed vehicles.
The Enterprise Fund would increase contributions to the fund to decrease replacement
of vehicles from 12 year life cycles to 7 year replacement cycle. The fund balance
decreases by approximately $150,000 in 2014 to help maintain the General Fund
reserves. The Board requested purchases be delayed until March and staff
prioritize replacement to order critical replacements sooner in the year.
Mayor Pinkham called a break at 9:40 a.m. and reconvened the meeting at 9:50 a.m.
SPECIAL REVENUE FUND. Each fund was reviewed and requests for additional
information is noted below:
COMMUNITY SERVICES
The Special Revenue Funds of the Community Services department encompass the
Visitor Services, Transportation, Senior Center, Fairgrounds/Events, new Multi-Purpose
Event Center/Stall Barn and Museum. The department would increase expenses in
2014 with the addition of the new MPEC facility, largest increase in personnel costs with
the additional of a Sales and Marketing position and capital purchases for the MPEC
and stall barn facilities. O&M would remain flat.
Visitor Center – The Estes Park Housing Authority relocated its offices to the
Visitor Center earlier this year. New computers have been placed in the self-
service area of the Center to assist guest with information. The Transportation
budget items have been relocated to a separate budget with its own account
numbers. The Visitor Center lost one part-time employee this summer and the
duties of this position have been covered by the 65 volunteer Ambassadors.
MPEC/Stall Barn – The new fund was created to track revenues and expenses of
the new facilities at the Fairground. The entire fairground facilities along with the
Conference Center would be marketed together. The fund includes $522,600 in
capital items for furniture, fixture and equipment (FFE) for the new facilities. Staff
continues to investigate the possibility of using some of the construction budget
to fund the needed FFE. The new budget contains 5.45 FTEs with half of the
current Special Events staff allocated to the facilities and the addition of a Sales
and Marketing Manager, Scheduling Administrator and an additional Municipal
Services Worker. The 2014 revenues are estimated at $233,376, personnel
costs of $340,067 and O&M of $130,311. Staff would bring forward a fee for
service and rental fee schedule for the Board’s consideration.
The Board questioned the need for additional FFE beyond the funds
budgeted for the construction because the Board approved $500,000 above
the construction costs when approving the COPs for the project. The
Board suggested staff investigate the possibility of leasing the stall barns
rather than purchase the first year to save on initial startup costs and to
have the ability to scope out significant issues that may arise with the
configuration of stall barns prior to purchasing. Staff stated leasing would
decrease costs significantly; however, cautioned renting equipment long term as
the stalls would be a source of revenue.
Senior Center – The Senior Center/Museum master plan was completed this
year, which identified the need for a new building. Staff continues to work with
the Estes Valley Parks and Recreation District to possibly establish a new Senior
Center in a future Community Center. The master plan also identified a need to
review the programing at the facility and staff has begun reviewing programing
Town Board Budget Study Session – October 25, 2013 – Page 4
based on guest needs. An additional temporary staff member was added this
summer to help staff work on programing. Revenues for 2014 are down with the
reduction in United Way support.
Special Events – The division plans and executes a number of Town events and
assists with local events throughout the year. In 2014, the Scandinavian Festival
would return as a Town sponsored event. Staff reviewed events and eliminated
several from the 2014 calendar that do not generate substantial revenues such
as performances at Performance Park during the summer season, downtown
cowboy sing-a-long, and a decrease in fireworks from $30,000 to $20,000. If
funding becomes available the events would be added back into the schedule.
Personnel costs decrease because half of the salaries would be placed in the
MPEC/Stall Barn fund. O&M decrease largely due to the lack of tent rentals
needed with the new structures available for events.
The Board requested the funding for the Heritage Festival be placed as a
line item in the Special Event budget. Trustee Elrod stated the new budget
presentation does not provide line item expenses for events and requested staff
present more information on the cost of events during the budget review process.
He continues to question the financial support to the Scotsfest of $35,000 in
addition to the cost of the in-kind services of approximately $50,000 provided for
a private event. There continues to be a lack of information available to the
Board to support the financial backing provided for the event. The Board
requested additional information on the event, including P&L statements
and attendance records to justify the Town’s funding. Staff, the Mayor and
EALA members would come back the Board with information related to the sales
tax generated by the event for the Board’s review.
Trustee Elrod suggested the Mayor’s Contingency Fund be reduced and
the funds used to support the downtown cowboy sing-a-longs. Trustees
Koenig and Ericson agreed with the funding request.
Mayor Pro Tem Blackhurst requested staff consider adding back in the
Wednesday night performances at Performance Park as they are a quality
of life issue for the local residents.
Staff would review why we have an event, who we are trying to attract, why we
are trying to attract them, and what is the return on the investment and how do
we measure the return. Staff would bring forward a report for the Board to review
and funding of events moving forward. After further discussion, the Board
requested staff place funds in the budget for the Scotsfest as a place
holder and review the funding during the off season with a business task
force to review all events and their economic impact.
Transportation – The budget funds the shuttle services providing 5 routes and 59
stops throughout the valley, operates 12 weeks during late June through early
September, and provides services from 9 a.m. to 10 p.m. daily. With the success
of the downtown trolley, the Shuttle Committee has recommended the purchase
of an additional trolley for use on the Blue route; however, the floods impact on
the economy has delayed this request until 2015. Staff has recommended
funding the service at the 2013 level with minor route changes being proposed,
including the addition of stops at the Museum and Senior Center to the Silver
route and possible relocation of the Barlow Plaza stop for safety reasons for the
Brown and Gold routes. Trustee Koenig requested staff reassess the
location of the bench placement at the Transportation Hub bus shelter as
the benches are not fully covered by the roof in their current location.
Museum – The Museum staffing levels have been returned to previous staffing
levels with the addition of a Curator of Collections last year; however, the
Museum Director continues to double as the Curator of Exhibits. Staff has
removed this position from the budget in order to assist with potential budget
Town Board Budget Study Session – October 25, 2013 – Page 5
shortfalls. 2014 Revenues are estimated at $8,950 a reduction over 2013 with
an increase to the overall expenses due largely to personnel costs increasing
from the recent compensation study. Trustee Elrod questioned the use of the
hydro plant caretaker house as employee housing and suggested the
house be used as part of the museum in the future.
The next Budget Study Session is scheduled November 1, 2013, 8:00 a.m. – 12:00 p.m.
There being no further business, Mayor Pinkham adjourned the meeting at 11:00 a.m.
Jackie Williamson, Town Clerk