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HomeMy WebLinkAboutMINUTES Town Board Budget Study Session 2019-10-18RECORD OF PROCEEDINGS Town of Estes Park,Larimer County,Colorado,October 18,2019 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 181h day of October, 2019. Board:Mayor Jirsa,Mayor Pro Tern Norris,Trustees Bangs, Blackhurst,Cenac,Martchink,and Zornes Attending:Mayor Jirsa,Mayor Pro Tern Norris,Trustees Bangs, Blackhurst,Cenac,and Martchink Also Attending:Town Administrator Machalek,Finance Director Hudson, Fortini,Hinkle,and Muhonen,Managers McEachern and Salerno and Director/Town Clerk Williamson Absent:Trustee Zornes Mayor Jirsa called the meeting to order at 8:30 a.m. 2019 BUDGET PRESENTATION Town Administrator Machalek provides an introduction and review of the current budget status.He stated the proposed budget has been structurally-balanced,fully reflecting TABOR transfer,increase General Fund balance to 25%,and establish BUILD grant match reserve of $500,000 in 2020.Adding one-time funding expenditures has been limited in 2020 due to these items.He outlined the presentations by each departrnentldivision would include a slide on items supporting the strategic plan which would be absorbed,a slide outlining service level proposals requiring new funding and a slide listing 2020 strategic plan objectives with no allocated time or money. Finance Director Hudson reviewed the budget process for 2020 and the adoption process.The Town Board has adopted a 25%fund balance for the General Fund which drove the development of the 2020 budget.Each department developed the proposed 2020 budget with a base budget and submitted service proposals for new or changing staffing,programming,projects,etc.The leadership team reviewed all service proposals submitted from each department and ranked and reviewed each with a town- wide budget perspective.Town Administrator Machalek reviewed the jointly developed recommendations and has presented the Board with a final draft budget for the Board’s consideration.A number of service proposals were not funded due to limited resources. Sales tax continues to be projected at 5%for the remainder of 2019 and the 2020 draft budget contains a 6.2%growth rate projection.The 2020 budget includes a 2%merit pool,no significant accounting changes,major projects have been budgeted in total, remaining budget balance for incomplete capital projects and select operating projects have been rolled over with an earlier budget amendment,and contain funds for the preliminary cost of broadband.Costs related to a paid parking program have not been budgeted and await further action by the Town Board.The proposed budget does not include any new positions requested,limited merit,limited program changes,limited repairs and maintenance and limited capital projects.The 2020 budget year has been developed as a stabilization year with future sales tax growth providing flexibility in future years.The General fund reserves for 2020 include $85,000 for restricted donations and prepaid items,$24,000 for parking garage maintenance reserve, $500,000 for BUILD grant match with a full match of $1.5 million needed by 2021, $241,700 for the purchase of the Thumb Open Space,and $2.7 million to replace equipment The Board discussed the sales tax growth projection of 6.2%in 2020.Director Hudson stated the projection was moderately aggressive.Trustee Blackhurst stated he was uncomfortable with an aggressive sales tax increase for the proposed 2020 budget RECORD OF PROCEEDINGS Town Board Budget Study Session —October 18,2019—Page 2 preparation.He further stated concern with the reduction of the proposed business license fees to $50 in 2020. COMMUNITY IMPROVEMENT PLAN 2020—2024 The Community Improvement Plan (CIP)was developed by the departments submitting projects,the Town Board completing and seffing a Strategic Plan,development of operating budget,project prioritization,and the final adoption of the CIP by the Town Board on November 26,2019.The CIP annual summary for 2020 has been presented with $5.2 million in projects and a total of $94.8 million over the next five years. EMPLOYEE COMPENSATION &BENEFITS Eric Marburger and Laurie Graves/EMS Consulting Services were hired to complete the market salary survey for 2020.After review of the market adjustments for the six market pay families,staff recommended the following adjustments:Admin —3.5%,T&P —2.5%,PS —5.0%,LTSC —1.5%,MGMT —2.0%,and Lineworker 4.8%.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 2020.In addition,a 2%merit pool has been included for 2020. The Town’s benefit package would remain unchanged in 2020.The only significant change occurred in August 2019 with the reinstatement of spousal medical coverage for eligible spouses,i.e.spouses that do not have access to coverage through their employer.The proposed budget includes a 2%increase to the medical coverage due to the favorable renewal by Sunlife,the Town’s reinsurance company.Teledoc has increase the monthly per employee fee by $0.12.All other benefits remain the same for 2020 with no increases in cost to the Town or the employees.The Town has experienced a couple of low claim years and has a healthy medical fund reserve. COMMUNITY REINVESTMENT FUND The fund contains the transfer of excess TABOR revenues.The revenues for 2020 would include $4.1 million from the General fund and minor interest.Proposed expenses have been projected at $4.1 million which include debt services for the parking garage and $2.9 million in transfers.The 2020 Strategic Plan Initiatives resourced include stall leveling at the fairgrounds,2020 phase of the downtown wayfinding project and Town Hall air conditioner replacement phase 1.Items not resourced included a transportation plan for US 34 between Wonderview Ave.and Steamer Dr.,and Community Dr.roundabout and multi-use path. COMMUNITY CENTER FUND The 1A sales tax funds are accumulated and remitted to the Estes Valley Recreation and Park District monthly to fund the construction of the Community Center.The fund has estimated revenues of $837,327. VEHICLE REPLACEMENT The fund accumulates reserves for the systematic replacement of General fund vehicles and equipment.The fund contains 80 units varying replacement costs and depreciation tables between 6 —20 years.The fund would replace 3 units in 2020 at a cost of $176,450.Enterprise vehicles and equipment were pulled from the replacement fund in 2019. RISK MANAGEMENT The fund established in 2019 accumulate funds to pay for property and liability coverages,including building a reserve to cover unanticipated claims and deductibles. The fund includes the estimated CIRSA renewal premiums and $35,000 for small claims and deductibles. GENERAL FUND.Each fund was reviewed and requests for additional information was noted: RECORD OF PROCEEDINGS Town Board Budget Study Session —October 18,2019—Page 3 Legislative:The expenses for 2020 increase with the upcoming Municipal Election in April to elect the Mayor and three Trustees.Full benefits have been budgeted for the newly elected Board members.A proposed service proposal to increase utility tap subsidies for workforce housing was not included. Judicial:No service proposals were requested for 2020.The revenues and expenses remain flat for 2020. Attorney:With the retirement of Town Attorney Greg White in 2019,the Town Board concluded legal services should be brought in house thereby creating a new department.The fund contains the expenses for the Town Attorney and an Executive Assistant in 2020 at a budgeted expense of $338,847. Executive:The fund supports the funding of the Town Administrator’s office which provides direction and ensures the efficient operations of Town departments,manages public information and risk management.A number of Strategic Plan Objectives are absorbed by the duties of the office staff such as workforce housing and childcare.The fund includes a $10,000 one-time funding for an infant/toddler childcare capital grant pool.A service proposal for an online community engagement,budget development, and performance platform tool requiring ongoing funding of $30,000 was not included. Mayor Jirsa called a break at 9:50 a.m.and reconvened the meeting at 10:05 a.m. Town Clerk:The overall revenues and expenses decrease in 2020 with a service proposal to reduce the business license fees to $50 for General,Building Contractor, and Home-based businesses with a projected reduction in revenues of approximately $79,500 in 2020.Expenses decrease with the removal of Human Resource expenses, including the HR Generalist to the 1800 account.The Board consensus was to bring forward an Ordinance to an upcoming Town Board meeting to consider the business license fee reduction. Human Resources/Employee Benefits:The overall expenses increase in 2020 with the reorganization of Human Resources in May of 2019.The fund would include the cost of the HR Generalist and all operational costs.The Human Resources Strategic Plan and implementation would be absorbed by the HR staff in 2020. Finance:The Library would complete their own financials beginning 2020,therefore, the department would not realize revenue for completing this task.Staff would update policies and develop a grant matching fund policy in 2020. Museum:Director Fortini reviewed the budget which remains flat both in revenues and expenses.Strategic Plan Initiatives not resourced in 2020 included a Museum Media Specialist and the re-roofing of the Cobb-MacDonald cabin. COMMUNITY SERVICES Events:The division has budgeted expenses at $2.3 million and revenues of $732,050. The 2020 Strategic Plan Initiative did not call out the need for any new funding. Visitor Services:Manager Salerno presented the 2020 budget stating the revenues remain flat with expenses decreasing as there are no planned capital projects.The staff would develop a Strategic Plan for the Visitor Center in collaboration with Visit Estes Park.Discussion was heard on the ability of the Visitor Center to double its revenues. Manager Salerno stated the items sold at the Visitor Center are limited in an effort not to compete directly with the downtown businesses.Trustee Blackhurst reconfirmed the businesses downtown voiced concern when the Center began retail sales. FLEET MAINTENANCE Manager McEachern reviewed the scope of the division led by a Master ASE certified fleet supervisor to maintain and repair all Town-owned equipment and Estes Valley Fire District vehicles and equipment.Staff also assists with specifying and purchasing all RECORD OF PROCEEDINGS Town Board Budget Study Session —October 18,2019—Page 4 new vehicles and equipment.The 2020 proposals include funds to purchase the current Water shop for the relocation of Fleet services on Elm Road.The remodel of the fleet shop in 2020 was not resourced and has been moved to the CIP for 2021. Board discussion was heard on why Fleet would pay the Water division for the building on Elm Road.Administrator Machalek stated the building has been owned by the Enterprise and would be selling it to the General fund,and further stated the Enterprise fund should not subsidize the General fund with rate payer dollars.The building could be sold on the open market.Trustee Blackhurst stated the shop has been abandoned by the Water division and should be considered an asset of the Town.Trustee Cenac stated there are rate payers that live in the county and should not be subsidizing Town operations. The next Budget Study Session is scheduled October 25,2018 8:30 a.m.—12:00 p.m. There being no further business,Mayor Jirsa adjourned the meeting at 10:53 a.m. Williamson,Town Clerk