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HomeMy WebLinkAboutTBSS 10-20-17 - Budget Town of Estes Park, Larimer County, Colorado, October 20, 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 20th day of October, 2017. Board: Mayor Jirsa, Trustees Holcomb, Koenig, Martchink, Nelson, Norris and Walker Attending: All Also Attending: Town Administrator Lancaster, Assistant Town Administrator Machalek, Directors Bergsten, Fortini, Hinkle, Hudson and Muhonen, and Director/Town Clerk Williamson Absent: None Mayor Jirsa called the meeting to order at 8:30 a.m. Director Hudson presented a summary of the official debt and obligations. The Town’s current debt consists of the 2013 Certificates of Occupancy for the Event Center with a payoff date in 2027, 2014 Radio Equipment Lease Purchase to be paid in fully in 2019, and 2017 Lease Purchase for the parking garage with a payoff in 2032. The total General fund obligation stands at $8.886 million at the end of 2017. There are 2 obligations in Utilities for the 2007 Light and Power Revenue Bond with a payoff in 2027 and 2008 Series A CWRPDA Water Loan with a payoff in 2028. The total obligation from the perspective funds is $7.157 million. CULTURAL SERVICES Assistant Town Administrator Machalek presented the 2018 funding for outside entities. In past budgets, the Town has funded Community Service grants in which a committee of Trustees would make recommendations to the full Board. Staff developed a policy to address the grant process and identified funding types: base funding for organizations, community initiatives, and in-kind projects. The proposed expenses for the fund have been budgeted at $1.059 million and include funding for the Fire District, the Larimer County Road and Bridge fund, and the food tax refund. Base funding would include the following: Entity 2017 Funded 2018 Funded 2018 Recommendation Crossroads Ministry of EP $20,000 $20,000 $20,000 EP Economic Development Corp $44,250 $60,000 $51,500 EP Housing Authority $50,000 $32,000 $32,000 EP Nonprofit Resource Center $4,000 $10,000 $5,000 Estes Valley Crisis Advocates $13,000 $15,000 $15,000 Estes Valley Investment in Childhood Success $25,000 $25,000 $25,000 Saud Family Health Centers $20,000 $20,000 $20,000 Via Mobility Services $30,000 $31,800 $31,800 TOTAL $206,250 $215,000 $200,300 The overall funding for 2018 contains expenses that have been reclassified from other departments and within the fund based on the new policy approved by the Town Board. The community initiative funding was ranked by the entire Board and based on the ranking a percentage of the requested funding was provided and allocated as indicated in the chart: Town Board Budget Study Session – October 20, 2017 – Page 2 Entity Program  2017 Funding  2018 Request Avg.  Ranking  Avg. Funding Recommendation  Crossroads Meals on Wheels ‐$                  14,000.00$        1 10,400.00$                         Estes Valley Watershed Coalition 2018 Operations ‐$                  10,000.00$        5 5,400.00$                           Estes Valley Watershed Coalition Maintenance Fund ‐$                  5,000.00$          5 3,200.00$                           Estes Park Learning Place GED Program 1,000.00$        2,880.00$          6 1,576.00$                           Habitat for Humanity of Estes Park Affordable  Housing Initiative ‐$                  10,000.00$        6 2,600.00$                           Estes Valley Crisis Advocates Victim Advocate Stipend and Training ‐$                  7,000.00$          7 1,500.00$                           Estes Park Veterans Monument Committee Estes Park Veterans Monument/Park Plaque ‐$                  5,100.00$          8 1,800.00$                           Partners Mentoring  Youth Mentoring Programs 2,000.00$        5,000.00$          8 1,700.00$                           Estes Park Gun and Archery Club Port‐a‐Let Rental  for Indoor Range ‐$                  500.00$              9 300.00$                               United Way of Larimer County 2‐1‐1 Information & Resource  Referral ‐$                  10,000.00$        9 2,000.00$                           Partnership for Age‐Friendly Communities Livable Larimer County ‐$                  5,000.00$          10 500.00$                               KREV Real‐Time  Emergency Information ‐$                  2,500.00$          11 ‐$                                     Oratorio Society Auditorium Rental  for 2 Performances ‐$                  818.25$              12 ‐$                                     Total 77,798.25$        30,976.00$                         The approximately $31,000 recommended if funded would be over the budgeted $25,000 for outside entities. Staff stated an additional $6,000 could be added to the budget to fund the requests identified by the ranking. The Board agreed the funding for the Gun Club should be increased from $300 to the full amount requested of $500 because the Police department utilizes the club. SENIOR SERVICES The Senior Center contains funds to operate the current Senior Center for limited hours in January 2018. In February, the staff and programming would be relocated to the Community Center and operated by the Estes Valley Recreation and Park District. MUSEUM Director Fortini presented the Museum budget and stated no service proposals were requested for 2018. The revenues would remain flat with the Museum Friends group providing additional funding for programs at no charge to the attendees. The expenses increase with the museum fully staffed in 2018. The remodel of the museum has been allocated to the facilities budget. PUBLIC WORKS  Facilities – The 2018 budget contained a number of service proposals for the Board’s consideration with the following included in the proposed budget: Facilities Maintenance Worker, ADA compliance projects, vehicle and computer for new position, and Town Hall windows on 2nd floor. Other items considered by staff and not included in the budget: funding set aside for future parking garage maintenance, increase R&M to address deferred maintenance, Parking Service Manager, and Parking Services software and equipment. Revenues and expenses remain flat in 2018; however, O&M increases with the service proposals, electricity for the parking garage and new equipment for new position. Capital decreases with the completion of the parking garage in 2017. Discussion was heard on the need to develop a maintenance fund for the parking garage.  Engineering – The fund contains a service proposal for a Development Review Engineer/Floodplain Administrator. This would move floodplain administration from Community Development to Public Work, allowing the position already reviewing development for drainage concerns to review the deveopment for compliance with the floodplain. Trustee Norris stated the review of floodplain issues has been a full-time position since the 2013 flood. He stated concern with coupling the development review with the floodplain because development review from Public Works has slown down the development process currently and in the past. Director Muhonen stated the current level of service being provided in Community Development remains higher than needed moving forward. Other service proposals were requested and not funded, including a transportation master plan, parking lot resurfacing, stormwater capital improvement program, intersection improvements at US36 and Community Drive. Director Muhonen stated the Town has an obligation to CDOT to make the intersection improvements as agreed to during the development of the Event Town Board Budget Study Session – October 20, 2017 – Page 3 Complex and Community Center. The division would not have grant funded revenues in 2018, nor would there be associated expenditures. The overall O&M budget decreases with the completion of studies in 2017. Mayor Pro Tem Koenig questioned if there was grant funding for a shuttle from the fairgrounds to downtown in a separate lane. Trustee Martchink stated the funding of $510,000 for a turn lane does not seem realistic and requested staff review funding estimates for the project.  Streets – The division has estimated revenues at $400,567, a significant decrease with the completion of grant funded projects, and $1.125 million in expenses. The division requested a service proposal for the completion of asphalt crushing within the proposed budget. A number of service proposals were not included: roadway striping, traffic signs, fuel for snow plowing, pedestrian bridge maintenance, contract with CDOT for striping and painting highways through town (unknown if the contract would be revenue and expense neutral), and a laptop for the Street Supervisor. Overall expenses for the division decrease with the completion of grant funds; however, O&M increases with the reinstatement of the full funding for the vehicle replacement fund. No capital has been budgeted for 2018. Trustee Nelson stated maintaining streets makes a big impact visually and to be a premier mountain community image has to be considered. Administrator Lancaster commented the Board could add items if other items are cut from the budget or the Board choses to decrease overall General fund balance. The division would find funding in 2017 to pay for the laptop identified for the Street Supervisor.  1A Streets Fund – The revenues for the fund have been estimated at $1.686 million for 2018 and expenses are budgeted at $1.080 million. The major projects budgeted would include Brodie Avenue improvements, street overlays, crack sealing, seal coats, spray patcher emulsion and aggregate, parking lot resurfacing, spray patcher replacement reserve and personnel costs.  1A Trail Fund – The revenues are estimated at $352,100 and expenses of $400,000. Staff has identified 2 grant opportunities to build a portion of the Fall River trail extension, with 1 grant requiring 100% match of $400,000. The EVRPD would provide $200,000 and the Town to allocate the additional $200,000 for a total of $800,000 to complete Phase III of the project. A second smaller grant could help to fund the remainder of the phase.  Parks – The division requested service proposals for the purchase of an ATV and weed sprayer and GIS services to map irrigation, trees, ROWs and open space. Additional service proposals were requested and not funded, including concrete trail repairs, parking structure irrigation maintenance, parking structure flowers, plants and materials, and a greenhouse expansion. With the Town taking ownership of Mrs. Walsh’s garden in 2017, the Town would receive $35,000 in endowment funding in 2018 for the maintenance. Overall expenses would increase in 2018 for both Personnel and O&M. Mayor Pro Tem Koenig suggested staff consider implementing an adopt a plant program until a new greenhouse can be built. Trustee Martchink questioned if the planting and care of the flower beds outside businesses could be done by the perspective business. Mayor Jirsa called a 10-minute break at 10:05 a.m. and reconvened the meeting at 10:15 a.m. OPEN SPACE The fund contains revenues of $368,250 in 2018 from the Larimer County voter approved one-quarter of one percent sales tax increase to be used for trails and open Town Board Budget Study Session – October 20, 2017 – Page 4 space purchases. In 2018, $255,000 would be allocated to the trail underpass improvements at the Moraine Avenue bridge. COMMUNITY REINVESTMENT The fund provides funding for specific capital projects utilizing General fund, grants and Tabor excess when applicable. The only identified project for the fund in 2018 would be the intersection improvements at Hwy 36 and Community Drive, which was not included in the budget. The only revenue would come from interest income of approximately $18,000. Expenses in 2018 would consist of the debt payments for the Event Center and the parking garage at a cost of $916,760. CONSERVATION TRUST The fund contains the Town’s share of the state lottery proceeds which are restricted to acquiring, constructing, and maintaining park and open space facilities. The fund has been managed by the Parks division throughout the years. For 2018 the staff would complete noxious weed removal, tree purchases for Arbor Day celebration and work on the picnic shelter at the parking garage. COMMUNITY CENTER FUND The funds from the 1A sales tax revenues are collected in the fund an remitted to the EVRPD on a monthly basis for the funding of the Community Center financing. LIGHT AND POWER The 2018 budget includes the following service proposals: a snow plow, project trailer, skid steer trailer, snow outage equipment, Dandie Way line rebuild, Hwy 34 and Big Thompson line rebuild, automated meter reading improvements, Goblin Castle line rebuild, and Longs Peak area line rebuild. The revenues and expense are estimated to decrease in 2018 because the broadband project drove up the revenues and expenses in 2017. Personnel costs increase with the market adjustments and merit increases. The underground service, meters and work orders have been moved to capital for 2018 which reduced O&M costs. The budget also contains a reduction in GIS inventory labor in 2018. Capital would include the projects outlined and Phase I for web-based utility billing. The bond payment for the Mary’s Lake substation and various distribution improvements and the transfer to the General fund has been estimated at $2.178 million. WATER The fund includes a number of service proposals for 2018, including two limited-term meter employees, replace purification and selected lab equipment, replace pressure testing equipment, new trench boxes and other safety equipment, Glacier Creek Water Treatment Plant land acquisition, replace walk-behind asphalt saw, new tandem axle dump trucks, Rockwell/West Riverside project, Phase II of the water main replacement in Reclamation area, Big Thompson Avenue water main repair, USA water rights contract, and Aspen Avenue water main replacement. Revenues decrease slightly in 2018 while expenses increase for personnel cost and O&M remains flat. Bond payments for the Mary’s Lake Treatment Plan and transfers to the General fund are estimated at $548,860. BUDGET SUMMARY Director Hudson provided a 2018 budget summary stating the ending fund balance would be 23% with sales tax growth projected at 3%. There are a number of projects that are estimated to roll over from 2017, including Moraine Avenue bridge, Fish Creek Road repairs, broadband project, and several other projects. The proposed budget contains a number of new positions, including a Police Officer, Development/Floodplain Engineer, Municipal Court/HR Assistant, Facilities Maintenance Worker, and 2 Meter Maintenance Workers. The proposed budget also includes 44 service proposals at a cost of $6.131 million and 37 service proposals not included at a cost of $4.877 million. The net zero-sum budget would require any additions to be offset with reductions to maintain the stability of the funds. He stated there would be approximately $35,000 Town Board Budget Study Session – October 20, 2017 – Page 5 available for one-time expenses if the Board identifies service proposals to be added to the budget. The next Town Board Study Session would include a discussion by the Board on any changes to the proposed budget. Staff proposed 23% fund balance, 3% above the limit set by policy, to allow for unknown items that may come up during the year. Administrator Lancaster stated there are additional revenue sources staff continues to investigate such as annexations and sales tax collection. CAPITAL IMPROVEMENT PLAN (CIP) Assistant Town Administrator Machalek provide the draft 2018-2022 CIP for the Board’s review. He stated the document would be updated to reflect the changes in the service proposals included in the proposed 2018 budget. The document would be a significant first step in addressing the Town’s overall capital planning needs. Staff has identified four opportunities to help improve the process moving forward; including prioritization process, five-year financial plan, deferred maintenance, and project inclusion criteria. He stated prioritizing over multiple years becomes difficult because priorities change from year-to-year and with changes in Board priorities. Staff has tried to align the projects with the Strategic Plan, however, staff cannot prioritize the Board’s objectives. Staff would provide the Board a mechanism for prioritizing the Board’s objectives to provide staff with clear direction on the priorities for 2018. The CIP would be adopted with the 2018 budget as a guiding document. MISCELLANEOUS Trustee Norris commented on the need to address staffing levels for the Police, IT and Community Development. He stated concern with cyber security and the need to address preventative maintenance. He further commented on the increase cost of construction and the need to re-evaluate the estimated construction costs for 2018 projects. There being no further business, Mayor Jirsa adjourned the meeting at 11:17 a.m. Jackie Williamson, Town Clerk