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HomeMy WebLinkAboutTBSS 10-13-17 - Budget Town of Estes Park, Larimer County, Colorado, October 13, 2017 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 13th day of October, 2017. Board: Mayor Jirsa, Trustees Holcomb, Koenig, Martchink, Nelson, Norris and Walkers Attending: All Also Attending: Town Administrator Lancaster, Finance Director Hudson, Chief Kufeld, Directors Bergsten, Hinkle, Hunt and Muhonen, Managers Fraundorf and McEachern and Director/Town Clerk Williamson Absent: Assistant Town Administrator Machalek Mayor Jirsa called the meeting to order at 8:30 a.m. 2017 BUDGET PRESENTATION Administrator Lancaster provide an overview of the 2018 budget process, including the development of a Capital Improvement Plan (CIP), maintaining existing service levels, a budget that meets the Town Board’s Strategic Plan and fund balance policy. The proposed budget includes funding for a 2% merit pool, market rate adjustments, an increase in benefit cost, and other non-optional adjustments to worker compensation and property and liability insurance (CIRSA). The Town utilized a service proposal process to identify department requests for programs, equipment or staff above the department’s base budget. The proposals were identified as one-time expenses versus ongoing. Finance Director Hudson provided an estimate of available funds based on base budget, projected revenues and impact on available fund balance. In order to maintain a balanced budget not all services proposals were funded. Of the 34 ongoing proposals only 8 have been recommended at a cost of $519,241, and 14 of the 24 one- time expenses have been included at a cost of $1.098 million. A list of service proposals not funded was been provided for the Board’s review. Finance Director Hudson reviewed the process used to deliver a balanced budget for the Board’s consideration. He reiterated the departments jointly developed recommendations based on a town-wide perspective. Department presentations would highlight the items that were not funded. He reviewed sales tax collection and stated the 2018 estimates are 3% over the 2017 actuals and projected, a conservative approach. The proposed budget does not include any significant accounting changes from the 2017 budget. There are several grant projects expected to roll over from 2017 to the 2018 budget such as Fish Creek flood repairs. No new large grants are projected. The General fund estimates include $14.969 million in revenues (sales tax, property tax, departmental revenues, transfers in and other revenues), $525,612 in transfers, and $16.406 million (O&M, personnel, capital, debt services, and transfers out) in expenses. Director Hudson stated 50% of the Town’s budget costs are personnel, which would be considered low for a governmental entity. Administrator Lancaster commented the Town has continued to assess processes and use technology or change processes in order to address issues rather than adding additional staff because of the ongoing expense. The 2018 transfers out of the General fund to the Community Reinvestment fund would include $515,322 for COPs payment on the Event Center financing, $434,000 for parking garage financing payment, and $400,000 for option to partially transfer sales tax from 2013 and 2015 for the parking garage. Discussion followed on possible uses of the $400,000 not utilized for the construction of the parking garage project such as refinancing the parking garage loan or utilizing the funds for other one-time projects in 2018. After further discussion, it was Town Board Budget Study Session – October 13, 2017– Page 2 determined a separate study session would be held to discuss the use of the funds. Per Finance Policy 660 the current General fund balance has been set at 20%. The proposed budget contains a fund balance estimate of 23%. EMPLOYEE COMPENSATION & BENEFITS Eric Marburger/EMS Consulting Services was hired to complete the market salary survey for 2018. After review of the market adjustments for the six market pay families, staff recommended the following adjustments: Admin – 3%, T&P – 2.2%, PS – 3%, LTSC – 2.5%, MGMT – 0%, and Lineworker 1.9%. Pay ranges would be adjusted and employees would see an increase to their pay based on the pay family during the first full paycheck in 2018. In addition, a 2% merit pool has been included for 2018. Administrative Services Director Williamson stated merit increases are currently the only mechanism for moving employee salaries through the pay ranges, which are set at 50% of the market average per the Town’s compensation policy. On average employee salaries are below 50% of the pay scales. The Insurance Committee meet with the Town’s benefit broker Hays Companies to review the Town’s benefit package and concluded no significant changes would be proposed with the exception of moving from AirMed to MASA for ambulance services. MASA provides nationwide coverage and both air and ground coverage not offered by AirMed. The proposed budget includes an 8% increase for medical coverage, 4% increase for dental, a slight increase to life, and no changes in costs for vision, employee assistance or Teledoc services. Staff and the committee would continue to educate employees on how to be good consumers of the Town’s partially self-insurance medical plan and to grow the wellness programs in an effort to keep our employees healthy. INTERNAL SERVICES FUNDS FLEET MAINTENANCE Manager McEachern reviewed the 2018 proposed budget in which the revenues and expenses essentially net out because the fund charges each department for the services provided. Fleet makes up 11% of the Public Works overall annual budget. The division maintains and repairs the Town owned equipment and the Estes Valley Fire District equipment with a replacement value of approximately $7 million. The division requested a service proposal for an additional Fleet Mechanic II, which was not included in the budget. The position was proposed because the Fire District requested a mechanic onsite part-time to maintain vehicles at the station. The District stated they would pay for half the costs of a new mechanic that would work out of separate vehicle and would work on the weekends to provide 7-day a week coverage for the Town and the Fire District. The proposal would require an Intergovernmental Agreement be approved between the Town and the Fire District. Trustee Holcomb questioned the need for additional mechanics. Manager McEachern stated there continues to be a need for additional mechanics based on industry standards; however, staff has to balance the needs with the current space constraints. Facilities Manager Landkamer has prepared a space needs analysis and included it in the Capital Improvement Plan (CIP). INFORMATION SYSTEMS TECHNOLOGY Manager Fraundorf reviewed the scope of services and the service proposal not included in the proposed budget for an additional IT Support Specialist. He stated the responsiveness of the IT staff has been good when considering the increase need to address security issues, project work, new application systems, etc. The addition of a staff member would have provided additional resources to address the growing security issues without negatively impacting the day-to-day response time to issues that come up. Revenues grow in 2018 with the charge of services increasing to departments for equipment support and expenses increase with personnel cost for annual salary adjustments and benefit costs. Trustee Nelson questioned the potential cost of a breach to the Town’s system. Mayor Pro Tem Koenig questioned if offsite consultants or companies could be hired to address potential threats. Manager Fraundorf stated a breach would be significant; however, the Town does not maintain trade secrets or Town Board Budget Study Session – October 13, 2017– Page 3 credit card information which would make it more vulnerable. He further stated onsite staff would be needed to address any potential threat. VEHICLE REPLACEMENT Director Hudson stated the fund was developed to aid the Town in accumulating funds to systematically replace vehicles and equipment. The fund currently supports 107 units with a replacement cost between $3,750 to $300,921 and depreciation tables of 6- 20 years. In 2018 the fund would replace 5 units with a replacement cost of $208,001, and would be fully funded for the first time since 2013. The service proposal included the funding for a new police officer patrol vehicle and a new facilities vehicle at a total estimated cost of $90,000. Mayor Jirsa called a break at 9:55 a.m. and reconvened the meeting at 10:05 a.m. GENERAL FUND. Each fund was reviewed and requests for additional information was noted:  Executive – Service proposals requested and funded included $15,000 for the completion of a Community Report/State of the Town Newsletter and $20,000 for a Community Marketing Video Campaign. An additional request for a Visitor Survey was not funded because Visit Estes Park (Local Marketing District) has agreed to fund the project. Expenses decrease overall with a reduction in personnel costs.  Legislative – No service proposals were requested. Overall expenses for the fund increase with an increase in benefit costs and IT costs.  Judicial – A service proposal was included to move the part-time Municipal Court Clerk to a full-time position within the Administrative Services department. Currently the Court Clerk does not have regular office hours, and therefore, can only be reached by phone or email. The position would also perform part-time Human Resources Administrative work and assist the Human Resource Manager. This would provide the citizens with direct access to the court during normal business hours Monday through Friday. The Administrative Service Director would be responsible for the budget and supervision of the department staff with the exception of the Municipal Judge who would be reviewed annually by the Town Board.  Administrative Services – The service proposals for the department included the funding of Phase II and Phase III of Laserfiche in 2018 at a cost of $133,800. Phase III has been requested in order to address the urgent need in Community Development to replace the Building Safety division’s software. Staff had identified a new software package at a cost of approximately $230,000. It was determined Laserfiche could be used in lieu of new software if Phase III was implemented to provide the web-facing servers. Utilizing Laserfiche would save the Town money and realize long term efficiencies by storing all the data within one software accessible by staff. The funding of the additional half-time hours for the Municipal Court Clerk/Administrative Assistant was included as an additional service proposal. Revenues for 2018 are projected to remain flat while expenses increase with the inclusion of a Municipal Election in April 2018, maintenance cost for Laserfiche, IT consulting services and an increase in IT costs.  Finance – No services proposals were requested. Revenues decrease in 2018 with the funding for the flood recovery finance position ending. Overall costs in the department increase slightly with personnel and benefit costs increasing and an increase in IT costs.  Employee Benefits – No service proposals were requested. The fund includes funds for the benefit consultant, home ownership program, wellness program, post-employment benefits and tenure awards. The 2018 budget increases due to the number of individuals participating at the 3-year home ownership program Town Board Budget Study Session – October 13, 2017– Page 4 and the number of employees eligible for the post-employment medical insurance benefit. COMMUNITY DEVELOPMENT  Planning – Service proposals requested and not funded in 2018 included an Environmental Planner currently funded by a flood recovery grant ending in 2017 and an increase in legal services associated with code amendments. Revenues drop significantly with the completion of the grant. Expenses decrease with the removal of one FTE and reallocation of floodplain administration to Public Works, reduction in contract services and the completion of the Downtown Plan. With the hiring of the Senior Planner a number of items would be brought back in house for completion. Trustees Holcomb and Norris questioned if the department had the staff needed to complete the current workload and address the code amendments outlined by staff.  Building Safety – A service proposal was requested and not funded to provide contract labor to provide records management. The revenues for the division are estimated to remain flat in 2018 and overall expenses to decrease with the reduction in outsourcing plan reviews. COMMUNITY SERVICES  Visitor Services – The 2018 budget includes the following service proposals: interior wood staining of the Visitor Center, interior paint for the Visitor Center and new carpet for the Visitor Center. The proposed budget does not include a request for a part-time seasonal and the conversion of 2 part-time temporaries to 1 full-time position.  Events – The division has budgeted expenses at $2.336 million and revenues of $731,801. Service proposals requested and included are a mobile stage, Event Center acoustics, barn painting and arena 1-4 footing renovation. Additional service proposals not included were the conversion of a seasonal to a full-time employee, landscaping, Events Complex Master Plan, and events exhibit and display. Revenues increase in 2018 with the addition of three horse events that left in 2017 and are returning due to the improved arena footing. Expenses increase with the proposed service proposals, proper allocation of expenses added purse money and utility costs. Estes Park Feed and Supply has gone out of business; therefore, the Events Complex would provide shaving and feed as a pass-through cost to event attendees. Mayor Pro Tem Koenig questioned the need for an Events Complex sign that can be read. Director Hinkle stated improved signage for the entire property has been included in the 2019 CIP. Trustee Holcomb questioned if a wind break could be built to address the footing issue. Mayor Pro Tem Koenig suggested staff review the possibility of developing the area as a temporary ice rink to hold the footing in place.  Transportation – The division requested the addition of RideHop, a real-time passenger information service, which was added to the budget. Other service proposals considered and not funded in 2018 included a seasonal part-time employee and additional weekend shuttle service for September 15-17. Revenues are anticipated to increase in 2018 with additional sponsorships purchased. A discussion was heard on providing services outside of Town limits to entities such as the YMCA at no cost and the need for the entities to pay for the service. Trustee Holcomb advocated the need to continue to review the possibility of year-round transit and regional transit to provide a link to the Front Range. Administrator Lancaster stated the Town could expand the services provided if services were limited to within town limits. POLICE Town Board Budget Study Session – October 13, 2017– Page 5 The department completed a staffing assessment which outlined the need for additional patrol personnel (27 total) to meet the service needs of the community and visitors. The 2018 service proposal requested the addition of 3 patrol staff and required patrol vehicle and equipment. The 2018 budget was prepared with the inclusion of 1 officer. Chief Kufeld stated the officers are busier and are going from call-to-call, and stated the severity of crimes has become more complex as well. Trustees Holcomb and Norris suggest additional conversation be heard on how to provide additional officers to meet the needs of the department. Revenues in 2018 have been budgeted flat. Expenses would increase with the addition of a Police Officer and the associated costs. Captain Rose provided a review of the budget for Ballot Issue 1A Emergency Response fund. In 2018 the proposed projects have been identified, including stream gauge operation maintenance, portable table, video/still digital camera and accessories, 3 APX 6000 hand held radio, 1 APX 6500 mobile radio, NOAA weather alert radio for the communication van, employee safety equipment PPE, comprehensive first aid kits for field use, satellite phone service, and information station specialist. Revenue for 2018 has been budgeted at $69,800 and estimated expense of $45,685. Trustee Nelson questioned if the funds could be used for training. Captain Rose stated the ballot language would not allow training with the exception on how to use any new equipment or software. The next Budget Study Session is scheduled October 20, 2017 8:30 a.m. – 12:00 p.m. There being no further business, Mayor Jirsa adjourned the meeting at 11:53 p.m. Jackie Williamson, Town Clerk