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HomeMy WebLinkAboutPACKET Town Board Study Session 2015-06-09 Tuesday, June 9, 2015 TOWN BOARD 4:30 p.m. – 6:40 p.m. STUDY SESSION Rooms 202/203 4:30 p.m. Trustee Comments & Questions. 4:45 p.m. Future Study Session Agenda Items. (Board Discussion) 5:00 p.m. Dinner Served. 5:10 p.m. Economic Development Strategic Planning Progress Update. (Avalanche Consultants) 6:10 p.m. April Financial Report. (Finance Officer McFarland) 6:40 p.m. Adjourn for Town Board Meeting. “Informal discussion among Trustees concerning agenda items or other Town matters may occur before this meeting at approximately 4:15 p.m.” AGENDA                    July 28, 2015  Update on Town of Estes Park Financial Policies August 11, 2015  Session on Zoning Basics Items Approved – Unscheduled: (Items are not in order of priority)  International Property Maintenance Code (Dangerous Buildings Code) and Adoption of New International Building Code Draft Reviews  Discussion of Noise Ordinance  Local Preference Purchasing Policy  Briefing on Storm Drainage and Flood Management Issues and Management Options  Updates on Environmental Assessment NEPA Process Draft Concerning the Loop Study Session Items for Board Consideration:  None Future Town Board Study Session Agenda Items June 9, 2015 TOWN ADMINISTRATOR Memo To: Honorable Mayor Pinkham Board of Trustees From: Frank Lancaster, Town Administrator Date: June 9th, 2015 RE: Economic Development Strategic Planning Progress Update. Objective: To update the Board on the EDC/Town Economic Development Strategy Project. Present Situation: The Estes Park Economic Development Corporation (EDC) and the Town are contracting with Avalanche Consulting to develop an Economic development strategy for the EDC and the Town. The project is one of three funded by the U.S. Economic Development Administration’s $300,000 grant award announced last year. The consultant has been working with the community for several months developing the plan and the purpose of this meeting is to update the Board on the project status to date. Proposal (including budget if applicable): n/a update only Advantages: n/a Disadvantages: n/a Level of Public Interest high Estes Valley Economic Development Strategy Report 1 – Market Assessment – Executive Summary www.AvalancheConsulting.com Prepared for Estes Park EDC & Town of Estes Park By Avalanche Consulting, Inc. June 2, 2015 ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – REPORT 1: MARKET ASSESSMENT – EXECUTIVE SUMMARY 1 avalanche Introduction In January, the Estes Park Economic Development Corporation (EDC) and Town of Estes Park engaged Avalanche Consulting to prepare an economic development strategy for the Estes Valley. Funded by a post-flood grant from the US Economic Development Administration (EDA), this strategy is intended to improve the Estes Valley’s economic diversity and long-term resiliency. As Rocky Mountain National Park celebrates its 100-year anniversary and flood-recovery continues, the residents of the Estes Valley are presented with an opportune moment to evaluate the community’s strengths and challenges and coalesce around a shared vision for the future. The process of developing an economic development strategy is as important as the end result. The three-phase planning process will: o Clarify & capture Estes Valley’s vision and build buy-in o Identify competitive advantages and challenges o Identify target industries that will increase resiliency o Prioritize community investments o Address workforce and housing needs o Develop an action plan for growing jobs, investment, and prosperity By identifying a shared vision and actionable roles for local stakeholders, the strategy will serve as a framework to inform future decision making in the Estes Valley. The strategy will also establish a set of metrics and benchmarks to help track the success of implementation. During Phase 1 of the strategy, Avalanche performed a detailed Market Assessment of the Estes Valley. This assessment analyzed the Estes Valley’s current competitive position on a range of infrastructure, demographic, economic, and other metrics. The baseline understanding of the Estes Valley developed in the Market Assessment will help inform the selection of Target Industries in Phase 2 of the strategy and the creation of the Strategic Recommendations in Phase 3. To begin this first phase, Avalanche conducted extensive community engagement to ensure that a wide diversity of perspectives are represented in the strategy. Combined with objective data analysis on Estes Valley trends, benchmark comparisons against other Colorado communities, and Avalanche’s own national experience, residents’ input helped inform the strategic themes presented in the Market Assessment Report. ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – REPORT 1: MARKET ASSESSMENT – EXECUTIVE SUMMARY 2 avalanche STRATEGIC PLANNING PROCESS Public Engagement Engaging and listening to local residents and stakeholders is a critical piece of the strategy. Avalanche Consulting can examine all the data in the world but cannot fully understand a community’s success stories, concerns, and goals without hearing the individual stories and perspectives of stakeholders. Since the strategic planning process launched in January 2015, more than 900 people have provided input to the process through individual interviews, focus groups and the public survey. Local response to the community survey was tremendous and demonstrates the passion of Estes Valley residents. The survey received 780 responses, 719 from full- or part-time residents, nearly 7% of the Valley’s population. This is a very high response level for any community. Avalanche also led focus groups, public meetings, and personal interviews with 163 Estes Valley stakeholders. The Estes Valley Community Survey asked respondents to weigh-in on a wide range of subjects and evaluate the community. Respondents raised concerns regarding affordability, seasonality, and other issues. But more importantly, they repeatedly highlighted the aspects they love about the Estes Valley, including the beauty, sense of community, and Rocky Mountain National Park. Phase 1: Market Assessment Phase 2: Target Industry Selection Info. & Literature Review Stakeholder Input Baseline Analysis SWOT Summary Market Assessment Report Target Identification Target industry Profiles Organizational Assess. Organizational Recs. Phase 3: Strategic Recs & Implement. Plan Vision, Goals, & Objectives Strategies & Tactics Implementation Tables Strategy Presentation III. Overall Project Implement. II. Economic Dev. Capacity Bldg. Implementation & Monitoring Training Sessions Scorecard Dev. Performance Review I – Regional Recovery Strategy ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – REPORT 1: MARKET ASSESSMENT – EXECUTIVE SUMMARY 3 avalanche What Does Economic Development Mean in the Estes Valley? A primary goal of this strategic planning process is to help the Estes Valley define what economic development means for the community and develop a vision for the future. Traditionally, economic development encapsulates a range of activities that create sustainable jobs in a community. The primary focus of these activities has been supporting local businesses, creating an environment that fosters startups, and attracting outside businesses into the community. In recent years, the role of economic development has expanded to include a range of activities, from workforce training to quality of life improvements. Every community has a different vision for their future and faces unique challenges in achieving that vision. Successful economic development leads to prosperity for residents and injects new monies into a community to invest in cherished assets. This means that quality of life and economic development sustain each other. The elements that make the Estes Valley a beautiful place to live also contribute to its ability to have a thriving economy. The natural beauty requires resources to protect and provide access. The medical center requires qualified, year-round staff. Schools, police, and other public services must also find and house workers. The arts, culinary, and other business that serve year-round residents require year-round patrons and employees to maintain operations and provide the lifestyle that makes the Estes Valley unique. Addressing the needs of the community is a critical component of economic development. Among other goals, appropriate economic development can: • Provide jobs for residents, security, and a greater capacity to enjoy life • Grow the tax base to pay for amenities, infrastructure, education • Draw talent to the area, helping employers grow • Help employees live closer to jobs and engage in the community • Curb leakage of wages, keeping dollars in town • Support entrepreneurs and provide a growing market for their goods Economic development in the Estes Valley will need to focus on building on local strengths while diversifying the business base to establish a balanced, year-round economy. This strategy will show on how the community, both public and private, can enhance the Estes Valley’s natural assets while supporting increased economic resiliency and building a thriving, affordable place for all residents. ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – REPORT 1: MARKET ASSESSMENT – EXECUTIVE SUMMARY 4 avalanche Strategic Themes When asked to grade the economic performance of the Estes Valley in recent years, survey respondents gave the region a C+. This is a passing grade, but it reflects numerous opportunities to enhance the local economy and quality of life. In our analysis, Avalanche identified three primary themes that tell the recent story of the Estes Valley and opportunities for improvement: • The Destination Economy – The destination economy is a critical part of the Estes Valley’s economy, but there is a need for greater job diversity to support a year-round community and increase resiliency in the face of disaster. Trends also show opportunities for the Estes Valley to diversity its destination products and attract more guests and outside investment. • Housing Affordability – Many workers who fuel the local economy cannot find affordable housing in the Estes Valley. This affects the ability of businesses and the town to offer services to year-round residents and forces many working families to live elsewhere. • Population Demographics – The Estes Valley’s permanent population is getting older and more temporary, which creates higher demand for services. Demographic shifts and development patterns lead to wage and retail leakage that limit town revenues and the ability to supply services that support the local quality of life. The report discusses each of these themes in detail, using a combination of quantitative data and qualitative analysis to fully understand demographic and economic trends and challenges in the Estes Valley. Note: The order of the strategic themes presented in this report does not reflect their level of priority. The local strengths and critical needs identified in this report will form the basis for identifying targeted industries and strategic recommendations for increasing local diversity and resiliency. A detailed data appendix provides additional information regarding the Estes Valley’s competitive position relative to Larimer County, the state of Colorado, the US, and select benchmark communities across the nation. ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – REPORT 1: MARKET ASSESSMENT – EXECUTIVE SUMMARY 5 avalanche SWOT Assessment The SWOT analysis presents a summary of the Estes Valley’s strengths, challenges, opportunities, and threats. (Avalanche prefers to use the term ‘Challenges’ rather than the traditional ‘Weaknesses.’ These are issues related to economic development that can be overcome, not permanent flaws in the community). The SWOT summary incorporates input from regional stakeholders who participated in the survey, focus groups, and interviews as well as findings from the consulting team’s statistical analysis, national perspective, and expertise. Some of the major findings from this assessment include: Strengths • Rock Mountain National Park and the wildlife, which draw millions of visitors to the Valley each year. • The Estes Valley’s geographic location along the Front Range offers unique opportunities for businesses and residents. Proximity to Denver International Airport is a plus for business operations and visitor attraction. • The recent success of the broadband initiative showed that residents are aware of the need for change. • The Estes Valley offers a wealth of recreational options, including golfing, rock-climbing, hiking, fishing, and camping. • The medical center sets Estes Park apart from other similar-sized communities along the Front Range. • The Estes Valley has a rich artistic past and is home to numerous artists and arts organizations. Challenges • Housing is relatively expensive, and there are few options available for purchase or rent – the long-term rental market is almost non-existent. • There are very few childcare options in the Estes Valley, which create challenges for families that wish to live and work here. • Building costs and current regulations make it expensive to redevelop aging properties – there is a perception that the town is not business-friendly. • Summer traffic congestion raises challenges for resident and guest mobility, and parking is an issue for downtown businesses. • It seems to be difficult for the community to agree on things – the lack of voter representation of Valley residents in the Town can create conflicts. • The Estes Valley’s Hispanic population is not well-integrated into the overall economy and community. ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – REPORT 1: MARKET ASSESSMENT – EXECUTIVE SUMMARY 6 avalanche Opportunities • Many properties are available for redevelopment, especially in downtown Estes Park, if the building codes and regulations make it cost effective or the town offers incentives for redevelopment. • Competitive broadband creates opportunities for professionals to live and work in the community. • A new community center could have numerous benefits for residents and businesses, particularly if it includes world-class athletic facilities and daycare if possible. • The Wellness Center provides opportunities to attract a new category of guests and provide new business services and products. • Visit Estes Park’s branding efforts could be strongly tied to economic development goals. • Rising winter and shoulder-season tourism reflect opportunities to attract visitors to activities and businesses year-round. Threats • Limited availability of workforce housing in the Estes Valley presents a serious threat to the ability of businesses to attract and retain qualified employees. The housing issue could affect the provision of critical quality of life services such as medical care, policing, and education. • Housing costs, limited childcare options, and other issues make it increasingly difficult for working families to live in the Estes Valley. This raises concerns about long-term economic health and the future availability of workers for any business operations. • If the economy remains primarily focused on a seasonal, one-product industry, the Estes Valley will remain highly vulnerable to the effects of natural disasters and outside changes in the tourism industry. It will also create challenges attracting higher-paying jobs and skilled new residents. • A perceived divide between the interests of retirees and businesses threatens the community’s ability to come together and address critical issues. There is a need to continue education regarding the importance of a multi-generational community and the roles that every member of the community must play in supporting resiliency and quality of life. • The Town and EDC may face challenges building public support for proactive actions if Valley residents and business owners are not included in decision making within the Town of Estes Park. 1 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION 1 Estes Valley - Economic Development Strategy Town Board Study Session Economic Development Strategic Plan Update and Discussion with Avalanche Consulting June 9, 2015 2 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Opening Remarks 3 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Agenda Project Update Market Assessment Findings Target Industry Discussion Q & A Next Steps 4 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION National economic development strategists and analysts Established in 2005 50+ years of combined experience 260,000+ jobs, 200+ communities 4 5 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Our process is as important as the end result Phase&1:&& Market& Assessment& Phase&2:& Target& Industry& Selec:on& Info.&&&Literature&Review& Stakeholder&Input& Baseline&Analysis& SWOT&Summary& Market'Assessment'Report' Target&IdenAficaAon& Target'industry'Profiles' OrganizaAonal&Assess.& OrganizaAonal&Recs.& Phase&3:& Strategic& Recs&&& Implement.& Plan& Vision,&Goals,&&&ObjecAves& Strategies&&&TacAcs& ImplementaAon&Tables& Strategy'Presenta9on' III.&Overall& Project& Implement.& II.&& Economic& Dev.& Capacity& Bldg.& ImplementaAon&&&Monitoring& Training&Sessions& Scorecard&Dev.& Performance&Review& I&–&Regional&Recovery&Strategy& 6 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Our Process Will… o Clarify & capture the community’s vision and build buy-in o Identify competitive advantages and challenges o Identify target industries that will increase resiliency o Prioritize community investments o Address workforce and housing needs o Action plan for growing jobs, investment, and prosperity Project Objectives – Diversification and Resiliency 7 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION o Meetings with the Town Board, EDC Board, & Strategic Planning Committee o Highlight key themes and messages o Review Target Industry recommendations o Discuss strategy themes o Discuss capacity building o Public input sessions o Provide opportunities for residents to share ideas o Review Target Industries and discuss strategy themes o Monday evening @ 7 pm and Wednesday morning @ 8 am o Additional interviews & meetings This Week – Targeting & Strategic Planning 8 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION o Personal interviews with 21 local, regional and state stakeholders o Focus groups and public forums with 144 Estes Valley residents o 780 survey participants o 2 workshops with 8-member project Advisory Committee o 2 workshops with 30+ member EDC Board of Directors Community Input To-Date 9 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION To share the findings of our assessment, discuss the link between economic development and quality of life, and hear your opinions about the future of the Estes Valley’s future. Today’s Purpose 10 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Agenda Project Update Market Assessment Findings Target Industry Discussion Q & A Next Steps 11 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION • 780 respondents – 719 full- or part-time residents • Nearly 7% of the Valley’s population • Representative of age, income, and background Community Survey FULL-TIME OR PART-TIME RESIDENT OF THE ESTES VALLEY? 593 126 61 Full Time Part Time Neither 0 200 400 600 800 234 354 99 71 7 3 0 100 200 300 400 65 + 45 - 64 35 - 44 25 - 34 18 - 24 < 17 WHAT IS YOUR AGE RANGE? 12 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Average of Highest Rated Features (1 = Very Dissatisfied, 5 = Very Satisfied) Survey Respondents Graded the Estes Valley 3.6 3.7 3.7 3.9 3.9 4.1 4.3 4.4 4.4 4.6 4.9 0 1 2 3 4 5 Pedestrian / Trail System Arts & Culture Healthcare Highway Access Family Friendliness Driving Time to Work Safety Open Space Volunteer Opportunities Outdoor Recreation Proximity to RMNP 13 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION 2.9 2.8 2.8 2.8 2.6 2.5 2.5 2.1 1.7 1.2 1.1 0 1 2 3 4 5 Retail Growth Management Affordability Job Availability Housing Availability Wage Levels Training Programs College / Univ. Course Job Diversity Career Advancement Entrepreneurship Average of Lowest Rated Features (1 = Very Dissatisfied, 5 = Very Satisfied) Survey Respondents Graded the Estes Valley 14 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Quality of Life & Economic Development Economic development supports communities in ways that are not only economic Natural features – Critical assets whose preservation needs public $ Healthcare – Requires year-round, qualified staff Arts & Culture – Requires year-round patrons and visitors Community Infrastructure – Requires public investment & tax revenues Lack of Job Diversity & Availability, Lower Wage Levels, and Housing Availability & Overall Affordability challenge what people love about living in the Estes Valley 15 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Economic development makes a community strong. Successful economic development leads to prosperity for residents and injects new monies into a community to invest in cherished assets. Quality of life and economic development sustain each other. o Provides jobs for residents, security, greater capacity to enjoy life o Tax base grows to pay for amenities, infrastructure, education o Talent is drawn to the area, helping employers grow o Employees can live closer to jobs, engage in the community o Curbs leakage of wages, keeps dollars in town o Entrepreneurs have a growing market for their goods What is Appropriate Economic Development? 16 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION 40% of respondents were “uncertain” about economic development. Need to Communicate This Message WHEN YOU THINK ABOUT ECONOMIC DEVELOPMENT, YOUR RESPONSE IS GENERALLY: 305 138 241 Uncertain Negative Positive 0 100 200 300 400 17 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION 81% of respondents view economic development as a medium or high priority for the Estes Valley Despite Uncertainty, Economic Development is a Priority RATE ECONOMIC DEVELOPMENT AS A PRIORITY FOR THE ESTES VALLEY: 26 102 297 261 Not a priority Low Priority Medium Priority High Priority 0 100 200 300 400 18 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Enhancing the Estes Valley’s natural assets while increasing economic resiliency and building a thriving, affordable place for all residents. Vision Identified in Survey 306 229 203 190 129 126 109 79 78 77 72 64 60 0 100 200 300 400 WHAT THREE WORDS BEST REFLECT YOUR VISION FOR THE ESTES VALLEY’S FUTURE? 19 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Survey respondents gave the Estes Valley’s economic performance a C+. Primary themes identified in the Market Assessment: • The destination economy has stalled; need for greater job diversity to support a year-round community and protect from disaster • Many workers who fuel the local economy cannot find affordable housing in the Estes Valley, affecting the ability of businesses to offer services to residents • The Estes Valley population is getting older and more temporary, creating higher demand for services with fewer working families and flat relatively slow growth in sales tax revenues How are We Doing? 20 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION The Estes Valley population more than doubles in Summer. THE DESTINATION ECONOMY 21 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION The official population of the Estes Valley according to the US Census Bureau in 2013: 10,500 Note: The Estes Valley includes roughly the entire school district, comprised of five zip codes: 80510, 80511, 80515, 80517, 80532 22 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Avalanche Consulting created a sophisticated model to estimate the Estes Valley’s seasonal population UTILITIES TRAFFIC SALES TAX DATA PARK VISIT DATA TRUE POPULATION 23 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 11,039 10,482 11,588 12,037 15,211 21,835 25,725 22,725 19,318 14,499 11,648 11,161 SOURCE: Avalanche Consulting The summer population of the Estes Valley is more than double the official Census count 24 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Are retail sales falling behind? From 2009 to 2014, retail sales in Estes Park grew 13%, below the 15% average among Colorado Association of Ski Towns (CAST). At $47,425, per capital retail sales in Estes Park are 62% of the CAST average. SOURCE: US Census / Colorado Comptroller / Avalanche Consulting $280,129,977 $242,994,481 $273,732,040 $235,000,000 $245,000,000 $255,000,000 $265,000,000 $275,000,000 $285,000,000 $295,000,000 2009 2014 CAST INDEX VALUE ESTES PARK 25 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION $343,549,483 $242,994,481 $273,732,040 $220,000,000 $240,000,000 $260,000,000 $280,000,000 $300,000,000 $320,000,000 $340,000,000 $360,000,000 2009 2014 Within the region, retail sales growth is trailing further. REGIONAL INDEX VALUE ESTES PARK Over the same period, total retail sales in Larimer, Weld, and Boulder county grew 41%, nearly three times faster than Estes Park. SOURCE: US CENSUS / COLORADO COMPTROLLER / AVALANCHE CONSULTING 26 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION 21% 0% 10% 20% 30% ESTES VALLEY US 31% Seasonal jobs dominate the Estes Valley economy More than 30% of jobs within the Estes Valley are in Retail, Accommodation, and Arts, Entertainment, & Leisure. Collectively, these industries are 50% more concentrated in the Valley than the US average. “The big wheel is tourism, but there are concerns with relying on one industry – fires, floods, and other disasters have a significant impact. We need a backup plan.”   SOURCE: US Census 27 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION WHY DOES SEASONALITY MATTER? The same business that provide services to permanent residents need to earn a living all year-round They require workers, customers, and civic infrastructure. Seasonality affects the operations of the medical center, grocery operations, retail & restaurants, and public services– police, fire, and utilities. “We need a year-round economy. Businesses currently have a hard time staying afloat in the off-season.” 28 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION HOUSING AFFORDABILITY SHARE OF VACANT HOUSING FOR SALE 2013 10% 11% 9% 5% 0% 4% 8% 12% US Colorado Larimer Cty. Estes Valley MEDIAN HOME VALUE 2013 $176,700 $236,200 $247,100 $328,382 $0 $200,000 $400,000 US Colorado Larimer Cty. Estes Valley Housing affordability is one of the greatest challenges in the Estes Valley. Home values are above county, state, and national values, and few homes are available for purchase or rent SOURCE: US Census 29 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION A significant share of workers in the Estes Valley are priced out of home ownership. The median income of Retail, Accommodation, and Arts, Entertainment, & Leisure workers, which represent nearly a third of the community’s workforce, is less than $18,000 annually. Number of houses in the Estes Valley valued at less than $100,000 with a mortgage? Zero Annual Income: $17,287 Monthly Debts: $0 Down Payment: $17,287 30 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Long-term rental options are limited: 35% of homes are Seasonal, Recreational, & Occasional Use. Only 11% are available for year-round rent. 31 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION POPULATION DEMOGRAPHICS Limited housing options restrict who can live in the Estes Valley, leading many families and workers to live elsewhere and commute. These workers spend their wages elsewhere, reducing the economic benefits for the Valley. “It’s hard to keep people that want to live and work here while raising a family.” “There are very few families that can afford to live here.” “Many young parents want to be able to live here and raise a family without commuting to jobs or vice versa.” 32 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Housing costs price some families out of the Estes Valley In the Estes Valley, the share of households with children and homeowners under the age of 45 are both nearly than half the US average. Estes Valley 16% SHARE OF HOUSEHOLDS WITH CHILDREN 2013 33% 32% 29% 16% 0% 10% 20% 30% 40% US Colorado Larimer Cty. Estes Valley SHARE OF OWNERS THAT ARE UNDER 45 2013 28% 31% 30% 17% 0% 10% 20% 30% 40% US Colorado Larimer Cty. Estes Valley SOURCE: US Census 33 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION 36.5 37.5 51.6 56.9 30 40 50 60 2011 2013 The Estes Valley is losing families, and the median age is rising more rapidly than the US. US ESTES VALLEY In 2011, the median age in the Valley was 15 years older than the US. By 2013, the gap in median age between the Estes Valley and the US approached 20 years. Losing families means less spending in the community, shrinking school enrollment, and fewer workers available for businesses in the future.   SOURCE: US Census 34 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION More than half of Estes Valley residents are over 55 years old SOURCE: US Census The Estes Valley has a large and very active retirement population, which provides economic and volunteer benefits to the community. Nonetheless, older populations generally have greater demand for services and produce less income for cities. An imbalance in population demographics can directly affect provision of services and operations of basic businesses.   25% 51% 0% 10% 20% 30% 40% 50% 60% Share of Residents Over 55 Years Old US ESTES VALLEY 35 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION AN IMBALANCE IN LOCAL HOUSING AND CAREER CHOICES CREATES TWO LARGE COMMUTING POPULATIONS 13 36 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION 1,916 Individuals employed in the Valley but who live elsewhere 2,126 Individuals living in the Valley but who are employed elsewhere 4,455 Individuals who live and work in the Estes Valley Nearly half of all employed residents within the Estes Valley work elsewhere, and vice versa Approximately 44% of all jobs in Estes Valley are filled by non-residents, who spend their wages and invest in other communities. SOURCE: US Census 37 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION The Estes Valley is closely tied to the Front Range Many Estes Valley residents and workers commute daily between Boulder, Fort Collins, Denver, Longmont, and Loveland. Employees living closer to jobs in the Estes Valley are more reliable for businesses, engaged in the community, and inclined spend wages locally. TOP 10 SOURCES OF ESTES VALLEY WORKERS, 2013 23 26 31 32 41 59 71 92 214 269 0 100 200 300 Arvada Aurora Windsor Boulder Lafayette Greeley Denver Longmont Loveland Fort Collins TOP 10 DESTINATIONS OF ESTES VALLEY RESIDENTS, 2013 22 24 36 36 38 98 174 212 232 236 0 100 200 300 Aurora Thornton Westminster Greeley Lakewood Loveland Longmont Denver Fort Collins Boulder SOURCE: US Census 38 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION • Seasonal jobs and limited housing options make it difficult for many workers to afford to live and raise families in the Estes Valley. This contributes to wage leakage, as well. • Businesses, like those with critical services (police, medical, education), find it difficult to fill positions because workers can’t access housing. This threatens quality of life for all. • Lack of diversification threatens Estes Valley’s ability to sustain economic health and vitality. ESTES VALLEY SUMMARY 39 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Agenda Project Update Market Assessment Findings Target Industry Discussion Q & A Next Steps 40 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION The critical needs identified in the Market Assessment include: o Creating a year-round economy that keeps businesses open o Increasing diversity and resiliency to protect the Estes Valley from negative impacts to one sector of the economy o Improve the ability of workers to find housing within the Estes Valley o Help create jobs that allow younger workers and families to live and spend their money in the Estes Valley, supporting the local economy and school system Critical Needs 41 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION To maximize return on economic development investment We look for industries that: o Will also help address critical needs o Match the assets and aspirations of the Estes Valley o Are growing regionally and nationally o Have the potential to grow faster with ED support o Can be affected by the tools available to the Estes Park EDC, Town of Estes Park and other partners o Will protect the qualities that make the Estes Valley unique Target industry identification is not a perfect science. Why Target? 42 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Survey Results 194 189 186 184 180 161 159 142 139 126 115 111 0 50 100 150 200 WHAT TYPES OF BUSINESSES WOULD MAKE THE BEST TARGETS TO RECRUIT, EXPAND, AND START IN THE ESTES VALLEY? (PLEASE CHOOSE UP TO THREE) 43 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION ESTES VALLEY TARGET AUDIENCES CRAFT GOODS Artisan Food Production Breweries & Distilleries Fine Art & Craft Production PROFESSIONAL SERVICES & IT Freelancers & Telecommuters Small Software & IT Businesses Specialized Health & Wellness Services OUTDOOR RECREATION & PRODUCTS Destination Athletic Training Mountain Tours, Events, & Retreats Outdoor Gear Manufacturing 44 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Addressing Needs Supports Wellness Attractive to Visitors Reinforces Estes Valley Brand Year- Round Economy Increases Job Diversity Enhances Quality of Life Supports Workers CRAFT GOODS Artisan Food Production X X X X X X X Breweries & Distilleries X X X X X X Fine Art & Craft Production X X X X X X X OUTDOOR RECREATION & PRODUCTS Destination Athletic Training X X X X X X X Mountain Tours, Events, & Retreats X X X X X X Outdoor Gear Manufacturing X X X X X X X PROFESSIONAL SERVICES & IT Freelancers & Telecommuters Possible X X X X X Small Software & IT Businesses Possible X X X X Specialized Health & Wellness Services X X X X X X X 45 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Agenda Project Update Market Assessment Findings Target Industry Discussion Q & A Next Steps 46 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Questions? 47 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION Agenda Project Update Market Assessment Findings Target Industry Discussion Q & A Next Steps 48 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION o Deliver Target Industry Profiles for review o Prepare for Trip 4 - Capacity Building and Training o Conduct Organizational Assessment o Draft Strategic Recommendations Next Steps 49 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION As we move the process into strategic recommendations and capacity building, what ideas should we keep top of mind? What can we do to help the community embrace the strategy? 50 – ESTES VALLEY ECONOMIC DEVELOPMENT STRATEGY – JUNE 2015 – TOWN BOARD STUDY SESSION 50 Estes Valley - Economic Development Strategy Town Board Study Session Economic Development Strategic Plan Update and Discussion with Avalanche Consulting June 9, 2015 FINANCE DEPARTMENT Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Steve McFarland, Finance Officer Date: June 9, 2015 RE: April Financial Report Objective: The objective of this memo is to provide an overview of the Town’s financial condition through April 2015. Present Situation: The attached Financial Report is divided in 5 sections (6 pages). The sections are divided into major Funds: General, Community Reinvestment, L&P, Water, and Minor Funds. Each section provides month-to-date, year-to-date, prior-year and “vs. Budget” comparisons. Two significant challenges make analyzing the financial statements difficult: First, the Budget is created as an annual document (not monthly), and is entered into the accounting software in a straight-line, linear fashion. For example, an $8.4m sales tax budget will appear in the Budget as $700k/month. Sales tax received and % of calendar year elapsed don’t coincide until September. On the expense side, payroll and projects accelerate during the summer, but the expenses are also budgeted annually and entered in straight-line fashion. These realities make revenues seems worse than they really are, and expenses better than they really are, at least early in the year. In short, it makes comparative analysis difficult with Estes Park being cyclical with both revenues and expenditures. The second item that distorts the budget are flood-related items. Expected grants, reimbursements and expenditures are all budgeted in the current calendar year so that Staff/Trustees can see, at a glance, the scope of work and reimbursements expected on projects. The challenge here is that the size of the projects are large enough that they can cause distortion the budget, with costs and time completion dates being very general estimates. The Town can therefore seem far ahead or behind budget. With those things in mind, some comments about the Financial Report: General Fund – In 2015, the General Fund (GF) absorbed the Community Services Fund (Museum, Senior Center, Events, MPEC, Transportation, and Visitors Center). For this reason, the GF page is pretty “busy” with extra columns needed to provide adequate comparison. The Events Center provides yet another variable, as this is its first full year of operation. Through April, the cost center that is the highest vs annual budget – 47% vs 33% of calendar year complete – is Streets. This is due primarily to the contracted work to complete Community Drive ($350,000). Overall, GF expenses are running at 30% of budget. Revenues are at 19%, due to sales tax receipts lagging the linear-based budget. As is the case every year, new expenditures have arisen post-Budget. These include Falcon Ridge Tap Fees ($40,000), VEP assistance ($25,000) and support for the Community Center ($50,000). These and other items will need to be taken into account during the Budget revision process. We continue to monitor the General Fund closely – with fund balance at an historically low level (as projected in the Budget), the margin for error is less than usual. Community Reinvestment Fund – Only about 3% of budgeted expenditures have been realized in CRF. This is because most budgeted projects have yet to begin. As is the case with the General Fund, the margin is thin on CRF – only $50,000 of fund balance is unbudgeted. L&P, Water – both L&P and Water Funds revenues and expenses are tracking nicely. Water revenues are only 27% of Budget, but water revenues are slightly cyclical. This is a higher % than this time last year, and in 2014 water revenues wound up at 101% of Budget. As is the case with CRF, the Utilities have significant capital budgets, most of which has yet to begin. Minor Funds – there are now 11 Funds listed with the “Minor Funds” section, including the 4 new “1% Sales Tax” Funds, the 4 Internal Service Funds (Fleet, Vehicle Replacement, IT, Medical), Conservation Trust, Open Space, and the Theater Funds. The Open Space Fund and Streets Funds are probably the most dynamic of these Funds. The budgets for these Funds were fairly non-specific when created last November, and will come into much better focus during the revision process. The Street Fund is also housing the $4.2m from FLAP. At present, the auditors are trying to determine if an entirely separate Fund is needed or not. Conclusion – Monitoring and reacting to the Town’s financial statements is an evolving and increasingly complex process. In no order of importance, we must respond to:  Sales tax flow  Flood recovery (grant reimbursements and inflows, expenditure outflows)  Construction projects (MPEC wrap up, Parking Structure)  Financial success of the Event Center.  Ongoing changes to the existing budget as opportunities present themselves throughout the year. Staff will continue to be diligent in monitoring and reporting financial progress in all areas. Proposal: N/A Advantages: N/A Disadvantages: N/A Action Recommended: N/A Budget: N/A Level of Public Interest Individuals/groups could have varying levels of interest in any one of a number of financial/budgetary areas of the financial statements. Sample Motion: N/A Attachments: Attached please find the April 2015 YTD financial statements.