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HomeMy WebLinkAboutPre Budget Study Session 2015-07-28 Town of Estes Park, Larimer County, Colorado, July 28, 2015 Minutes of a Budget 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 28th day of July, 2015. Board: Mayor Pinkham, Mayor Pro Tem Koenig, Trustees Ericson, Holcomb, Nelson, Norris and Phipps Attending: All Also Attending: Town Administrator Lancaster, Assistant Town Administrator Machalek, Finance Officer McFarland, Directors Bergsten, Chilcott, Kufeld, and Winslow, Manager McEachern, Town Clerk Williamson, Public Information Officer Rusch and Grant Specialist Crosser Absent: Director Muhonen Mayor Pinkham called the meeting to order at 2:55 p.m. REVIEW OF BOARD RETREAT HELD JUNE 25, 2015. Town Administrator Lancaster reviewed the 2015 Strategic Plan draft developed at the Town Board retreat that included a list of objectives. REVIEW OF FLOOD RECOVERY EXPENSES AND FUNDING. Finance Officer McFarland reviewed the finances for flood recovery stating reimbursements have taken longer to receive from the State than anticipated. The State continues to review each submittal thoroughly to ensure municipalities are not receiving funds erroneously that would have to be paid back in the future. Reimbursements for CDBG-DR grant funds are slow for the Fish Creek utility repairs. FHWA funds are being administrated by Larimer County; therefore, the reimbursement timeframe is dependent on submittals by the County. The Town received DOLA funds for three flood recovery position and reimbursements for pay and benefits are being submitted monthly. With the unknown timeframe for the reimbursements staff continues to be cautious with regard to cash flow to ensure the Town does not expend funds beyond those available. FORECAST OF FUND BALANCES. General fund has a fund balance of 13% due in large part to a lag in reimbursements and a significant shortfall of approximately $715,000 in budgeted revenues for the Event Center. Staff would propose a balanced budget for 2016 to address the declining fund balance. Community Reinvestment fund has an anticipated fund balance of $49,000 at the end of 2015; therefore, there are no funds available for projects in 2016. The General fund would transfer $500,000 to the fund to cover the Certificate of Participation payment for the Event Center. The Open Space fund could be used to fund appropriate flood recovery efforts such as the Scott Ponds reconstruction. The remaining Special Revenue funds include the 1A sales tax funds: Emergency Response, Community Center, Trails and Streets. The Street fund includes the RAMP funds of $4.2 million received for the devolution of Elkhorn from Moraine to the Wonderview bypass. Enterprise funds include the Light and Power fund and Water fund which require appropriate fund balance ratios to meet bond ratings. The Water department would reduce expenses to improve the fund balance and associated bond rating. Town Board Study Session – July 28, 2015 – Page 2 Internal Service funds are funded by General and Enterprise funds and include the Medical, Fleet, IT and Vehicle Replacement funds. The Fleet fund has a declining fund balance, IT fund remains healthy and can complete projects, and the Vehicle Replacement fund has not been funded fully in the past couple of year and needs to be fully funded in the future. The Theater fund continues to hold funds for the performing art center. GENERAL THOUGHTS ON REMAINDER OF 2015 AND 2016 Administrator Lancaster stated out of budget requests are impacting the overall budget. The Town’s expenditures have been exceeding revenues for several years, which was intentional to spend down a large fund balance. The spending would be cut in 2016 to attempt to balance the budget. Multiple constraints for staffing and expenditure exist. Requests for new projects have an effect on staff workload and staff has been and continues to be over taxed. The Town has an opportunity to replace the Moraine Bridge; however, if awarded engineering staff would have to manage the project or hire a project engineer. Other possible projects discussed during the Strategic Planning meeting include: 1) Fall River Trail – the project design should be completed and shovel ready for grant opportunities such as COGO funds. There would likely be a match required and could be funded by the Open Space fund; 2) Additional Parking Structures – would require matching funds and continues to be a very high priority for the Town; 3) Storm Water Master Plan – a consultant would be needed to review and develop a master plan. Grant opportunists may be available to develop a plan; 4) Special Event Signage – staff has discussed the need to update the banner location with a variable sign; 5) Conference Center Improvements – would require a consultant to review the property and provide recommendations; 6) 100th Anniversary in 2017 – cost unknown at this time and would largely be expended in 2017; 7) Document Management System – consulting fees; and 8) Biennial Survey – cost estimated at $15,000. The survey could be moved to 2017. Personnel costs Personnel costs are estimated to increase by 2 – 3% based on the market study adjustments. No merit adjustments are being recommended for 2016. Increases to benefits are unknown as the Town has hired a new benefit consultant in June. Staff has placed a 10% increase in the preliminary budget for medical. The medical insurance would continue to have no spousal coverage in 2016, which has had an effect on recruiting. Staffing A number of staffing needs have been identified and include a Payroll Clerk, Street staff, Special Event staff, Administrative Services staff, Police Records Tech, additional CSOs, Community Development staff, and Utilities staff. Other Department Needs Community Services continues to review funding for the Museum storage facility. Community Development would implement the Downtown Neighborhood plan, develop wayfinding plan for downtown neighborhood, code changes to address business concerns, and update fees to aid in cost recovery. Public Works would eliminate the ice rink in 2016; update GIS management, expand Lucity software to include Streets and Facilities modules; a need for heated storage for the spray patcher and aggregate; and Master Plan for the Elm Road campus. Finance would request an upgrade to the HTE financial software that may be funded by the IT fund. Town Board Study Session – July 28, 2015 – Page 3 Utilities continues to evaluate a redundant source for the Mary’s Lake Water Treatment Plant, and the need to extend the fiber associated with the electric system management. Board discussion followed and has been summarized: Trustee Holcomb listed top priorities: parking structure, personnel, Event staff, Police staff, storage, and cost recovery on fee. Trustee Norris stated personnel would be at the top of the list. Capital projects should be evaluated and a cost benefit analysis conducted. Trustee Ericson agreed employee compensation should be adjusted to market, would recommend pushing projects out to maintain financial strength, review revenues and fees charged, eliminate or cut back special programs, invest in Community Development, and eliminate the Street Improvement (STIP) funding of $435,000 from the General fund because of the increase in 1A sales tax revenues. Trustee Nelson concurred that personnel compensation and staffing issues are important, especially an adequately staffed Community Development and Special Event departments. Mayor Pro Tem Koenig stated personnel would be at the top of her list. Trustee Phipps agreed the Community Development and Special Event staffing needs should be addressed. There being no further business, Mayor Pinkham adjourned the meeting at 5:00 p.m. Jackie Williamson, Town Clerk