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HomeMy WebLinkAboutPACKET Joint Town Board Study Session 2023-09-26TOWN OF ESTES PARK BOARD OF TRUSTEES BOARD OF LARIMER COUNTY COMMISSIONERS Joint Study Session No public comment will be heard Tuesday, September 26, 20 23 4:30 p.m.- 6:00 p.m. TO BE HELD VIRTUALLY This study session will be streamed live and will be available on the Town YouTube page at www.estes.org/videos. Agenda I.Introductions. II.Visit Estes Park Operating Plan. (CEO Franker) III.Proposed 6E Funding Plan. (Deputy Town Administrator Damweber & Manager Bangs) I V.Trustee & Administrator Comments & Questions. V.Future Study Session Agenda Items. (Board Discussion) VI.Adjourn for Town Board Meeting. NOTE: The Town Board and County Commissioners reserve the right to consider other appropriate items not available at the time the agenda was prepared. Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Presentation Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 TOWN ADMINISTRATOR’S OFFICE Report To: Honorable Mayor Koenig Board of Trustees Through: Town Administrator Machalek From: Carlie Bangs, Housing & Childcare Manager Date: September 26, 2023 RE: Proposed 6E Funding Plan Purpose of Study Session Item: Joint study session with the Larimer County Commissioners to consider the proposed 2024 Annual Workforce and Childcare Funding Plan for Lodging (6E) funds. Town Board Direction Requested: Consider the proposed 2024 Workforce and Childcare Funding Plan and provide direction. Present Situation: The 2023 Workforce and Childcare Funding Plan was approved in February 2023. This annual funding plan must be presented to both the Town Board and Board of County Commissioners for approval. The purpose of the 2024 Funding Plan is to outline the use of the Lodging Tax Extension funds for workforce housing and childcare. The timeline for the annual Funding Plan approval is as follows: Summer: o Town Board engages in Strategic Planning Process which will inform the development of the next year’s budget. August: o Town Staff works with Visit Estes Park to determine projected revenues for upcoming year; develops report on current year expenditures. o Town staff develops recommended Funding Plan for Workforce and Childcare Lodging Tax funds to be included in proposed VEP Annual Operating Plan. September: o Larimer County, Town, VEP Boards consider VEP operating plan, including recommended Workforce and Childcare Lodging Tax Plan budget. October-December: o Town files proposed Funding Plan with the County by November 1. Page 81 o Town Board adopts Town budget, including budget for Workforce Housing and Childcare Lodging Tax funds. o County Approves or requests changes to Funding Plan by December 1. Proposal: Staff propose that the Town Board and Board of County Commissioners provide direction for changes to the 2024 Funding Plan prior to final consideration and approval. Advantages: •Approval of the Funding Plan will provide staff with direction regarding next steps on the allocation and expenditure of lodging tax funds to address workforce housing and childcare issues in the Estes Valley. Disadvantages: •None Finance/Resource Impact: Revenue from Workforce Housing and Childcare Lodging Tax 270-0000-316.10-00 Level of Public Interest Moderate. A public Key Stakeholder meeting was conducted on September 6, 2023 to provide feedback, which was attended by 23 people and 11 participant surveys were received. Attachments: 1.Proposed 2024 Annual Workforce Housing and Childcare Funding Plan. – To be Provided 09-22-2023 Page 82 2024 Workforce Housing and Childcare Funding Plan Page | 1 2024 Workforce Housing and Childcare Funding Plan Purpose The purpose of this document is to outline how the Workforce and Childcare Lodging Tax funds (6E) will be passed through to the Town and allocated to address workforce housing and childcare issues in 2024, how the funds will be administered and for what purpose. This document is designed to report and summarize the use of the funds from the previous year while creating a strategic framework for the future. Overview In November 2022, residents of the Visit Estes Park Local Marketing District voted to approve Ballot Initiative 6E to increase the total lodging tax rate from 2% to 5.5%. This increase in tax supplies approximately $5 million in funds to address workforce housing and childcare needs in the Estes Valley. Prior to the election, a high-level framework outlined the intentions of how funding could be used to address these issues and how they might be administered if the measure passed. The Board of Visit Estes Park determined prior to the election that it would prefer to serve as a “pass-through” of the funds and rely on the Town of Estes Park, in coordination with Larimer County, to decide how to administer them. In February 2023, the Intergovernmental agreement with Larimer County for the Estes Park Local Marketing District was amended to address the Lodging Tax (6E) funds and voted upon by the Town Board. In 2023 the budgeted revenues from the Workforce Housing and Childcare Lodging Tax to be passed through Visit Estes Park to the Town of Estes Park were estimated to be $5,379,305. The Town began receiving funds in March 2023 (remittances take about three months to be processed and sent to the Town) and as of the drafting of this document, the town has received $1,918,211. Because of the delay in receiving actual funds, this only accounts for lodging tax revenues through June 2023. We still expect to receive close to what was initially budgeted. In addition to the funds received through the Workforce Housing and Childcare Lodging Tax, the Town contributed funds from its own budget to begin addressing the workforce housing and childcare needs as soon as possible. These funds were used for the same purposes as the Workforce Housing and Childcare Lodging Tax funds while waiting for the tax funds to be received. Those funds are not included in this report or plan for 2024 because, as strictly Town funds, they are not subject to the same process outlined herein. However, it is worth noting that the Childcare Needs Assessment and Strategic Plan will be funded through the Childcare Reserve Fund. We expect that this report will supply essential data and strategies to direct the Attachment 1 Page 83 2024 Workforce Housing and Childcare Funding Plan Page | 2 use of the Lodging Tax Funds to address our childcare challenges. The last Childcare Needs Assessment was conducted in 2017 and did not supply a strategic plan. The Workforce Housing and Childcare Lodging Tax supports the position of the Town’s new Housing and Childcare Manager, who administers the funds and coordinates with community partners while ensuring that all funding decisions are made in accordance with the Intergovernmental agreement (IGA) between the County and Town of Estes Park, as well as that year’s approved Funding Plan. This position with the Town of Estes Park was filled in August of 2023. In addition to the creation of the Housing and Childcare Manager role, the Town entered a memorandum of understanding (MOU) with the Estes Park Housing Authority to formalize that government entity to administer and use the Workforce Housing and Childcare Lodging Tax funds dedicated to workforce housing. The process to execute a new MOU with the Estes Park Housing Authority and the time to hire a Housing and Childcare Manager reinforced the predicted expectation that 2023 would be a “building year.” The Estes Park Housing Authority is still in the process of trying to recruit two new positions necessary to develop and administer new housing programs and plan for new development. Those positions are currently being advertised. As of September 2023, significant steps have been taken to form a solid foundation for action in late 2023 and into 2024. 2023 Funding Summary The 2023 Annual Funding Plan was approved in February 2023. The following sections describe how the funds were distributed for childcare and workforce housing throughout the year up until the drafting of this report in August 2023. To date, $4,203,760 has been either distributed/spent or is slated for distribution/expenditure. Any unspent funds will be either be spent in 2024 or held in reserve for future use on workforce housing and childcare. It should be noted that while we budgeted for revenues in the amount of $5,379,305, we will not actually receive at least two months’ worth of funding until March and April of 2024 due to the aforementioned remittance lags. Childcare The 2023 Fund Plan included additional breakdown of funds for childcare into the following subcategories: Purpose of Funds Estimated Budget Addressing Workforce Challenges $250,000 Facilities/Capital $200,000 Tuition Assistance/Scholarships $100,000 Out-of-School Programming $75,000 Total $625,000 Page 84 2024 Workforce Housing and Childcare Funding Plan Page | 3 In February 2023, Policy 227: Workforce and Attainable Housing Funding Guidelines and Policy 225: Childcare Funding Guidelines were updated. The Childcare Funding Guidelines inform financial decisions related to childcare challenges and includes a Childcare Funding Application, which allows childcare providers to request funding from Town. This application process allowed two childcare centers in the Estes Valley to apply for funds and were awarded grants to support staff recruitment and retention totaling $29,500. In addition to the grants, EVICS Family Resource Center was awarded $100,000 to fund Tuition Assistance, half of which went toward staff who are implementing the program and serve as a “tuition assistance navigator” for families. To date, $129,500 in Lodging Tax Funds has been distributed in the Estes Valley during 2023 to support childcare needs upon the drafting of this report. Additional funding request applications have been received upon the drafting of this report and it is expected that additional funds will be distributed before the end of the year. Workforce Housing The Town of Estes Park and the Estes Park Housing Authority entered a memorandum of understanding in July 2023 to transfer the workforce housing portion of the Workforce Housing and Childcare Lodging Tax funds received by the Town. EPHA has authority to make purchasing decisions as outlined in the MOU to administer and manage the various programs presented in the Annual Funding Plan. To oversee the development and programs needed in the administration of the Workforce Housing and Childcare Lodging Tax funds, the Housing Authority has created and opened two positions. Increasing staffing capacity with these two positions, a Housing Program Manager and a Real Estate Development Manager, will play a critical role in the ability to provide solutions to the workforce housing needs in the Estes Valley. The 2023 revenues budgeted to go toward workforce housing was $4,750,000. Per the 2023 Fund Plan, the funds are broken down into additional subcategories to include programs, staffing needs, and property acquisition, as noted in the table below. Purpose of Funds Estimated Budget Property Acquisition Reserve (Land-banking, financing, etc.) $1,500,000 Cash Buyer Program/Rental Assistance $1,500,000 Predevelopment work for property already in real estate portfolio $900,000 Deed Restriction Purchase Program $500,000 Staffing/Capacity Building at EPHA $350,000 Total $4,750,000 Upon drafting this report, the Estes Park Housing Authority has requested a change in the allocation of funds within the described subcategories. In their role, EPHA must respond quickly to market opportunities to preserve and create additional housing options. Timing is essential to taking advantage of these opportunities. The confinement of subcategories inhibits their ability to carry out their mission and acquire property with Workforce Housing and Childcare Lodging Page 85 2024 Workforce Housing and Childcare Funding Plan Page | 4 Tax funds. This reasoning is true for workforce housing needs, as well as childcare, and is why the 2024 Funding Plan does not have as constraining subcategories with specific allotment of dollar amounts. With the Housing Strategic Plan and Needs Assessment published in 2023, updated data from the previous report in 2017 reflected a continuation of need for housing in the Estes Valley and provided clear projections of needed development. The Housing Strategic Plan identified a 5 - year target of developing between 300-400 dwellings, in addition to proposing several strategies to preserve or convert the use of existing housing stock to meet those needs. In 2023, Workforce Housing and Childcare Lodging Tax funds were primarily used for land acquisition, pre-development of property, and engineering and development expenses. The majority of funds, nearly $2.5 million, are allocated to land acquisition and development. In addition to that, $225,500 was used as a down payment and $30,000 for carrying costs to purchase a property and pre-development costs that will provide 10-12 townhome style homes deed restricted to the local workforce, as well as income restricted. Another $620,000 was administered for development expenses of Castle Ridge Development. Castle Ridge Development will provide an estimated 30 townhome style units which will be deed restricted to the local workforce, as well as income restricted. The Estes Park Housing Authority acquired land and property in 2023 that will allow for the opportunity to begin development of approximately 281 housing units in 2024. The Town of Estes Park intends to leverage Workforce Housing and Childcare Tax funds, by opting in to Proposition 123. This will allow for the Town to submit for funding from several programs born from this funding source which will expand funds to develop housing in the Estes Valley. The Town of Estes Park submitted Letters of Interest for the Department of Local Affairs (DOLA) Strong Communities Infrastructure Grant and the Transformational Housing Grant for this purpose. 2024 Funding Plan The 2024 Funding Plan is based on information and data gleaned from foundational documents such as the 2023 Housing Needs Assessment and Strategic Plan, the Childcare and Housing Task force recommendations, the 6E Framework and the 2023 Funding Plan. In addition to these documents, a Key Stakeholder meeting mostly focused on childcare supplied robust feedback that also helped inform the 2024 Funding Plan. At this meeting, Town staff and Estes Park Housing Authority conducted a public meeting with key stakeholders throughout Estes Valley and Larimer County. The virtual meeting had 23 attendees and provided survey feedback from 11 participants. The valuable insight from this meeting was included in the decision making and planning of the 2024 Funding Plan. The Housing and Childcare Manager was hired in August 2023. This position is responsible for facilitating decision-making and ensuring that agreements with recipients of any Lodging Tax Funds are drafted, negotiated, and executed per the ballot language. This includes the Intergovernmental Agreement with Larimer County whereby the Town and County agree on the Page 86 2024 Workforce Housing and Childcare Funding Plan Page | 5 process for decision-making, professional service agreements with partners/contractors providing services relating to the creation of workforce housing and provision of childcare services, and the agreement made with the Estes Park Housing Authority. There are also new and updated policy decisions related to childcare that need to be made which will inform program development, eligibility requirements, etc. The Housing and Childcare Manager worked with the Estes Park Housing Authority, local childcare providers, the EVICS Family Resource Center, the School District, the Early Childhood Council of Larimer County, Boys & Girls Club of Larimer County, and several other key stakeholders on the creation of this report and Annual Funding Plan. Funding Allocations The following proposed budget breakdown demonstrates how the Workforce Housing and Childcare Lodging Tax funds will directly and strategically support childcare and workforce housing needs in the Estes Valley, while allowing for flexibility to respond to needs as they arise. All dollar figures are approximations contingent on several factors including actual collections each year. The timing of collections impacts how much can be spent and at what point in the year. Once received, funds roll into their designated category of workforce housing or childcare. Funds received in 2023 but not distributed will roll into a reserve fund balance to be used in 2024 or held in reserve for future use on workforce housing and childcare. Unknown funding requests are expected prior to the end of 2023 that will lower the estimated fund balance in both childcare and workforce housing in 2024. The 2024 Funding Plan does not have designated dollar amounts outlined in subcategories under Workforce Housing or Childcare so that funds may be shifted during the year depending on opportunities that present themselves (e.g., for property acquisition if something becomes available on the market). Flexibility and responsiveness to childcare and workforce housing needs is essential to being solutions focused. Staff from the Town and the Estes Park Housing Authority quickly realized that while in the early developmental stages there is a need for greater flexibility within each category. Programs and processes continue to be developed upon the drafting of this plan that innately have a level of uncertainty. Until we have a firmer grasp on how to best target funds to address our community’s needs (and in anticipation of the results of the Childcare Needs Assessment and Strategic Plan), we will want to allow ourselves flexibility within each of the categories. We expect that as we continue to gather information, and programs and processes are honed, the budget will “firm up” year after year and allow the Town and the Estes Park Housing Authority to present a more exact budget proposal each year. For budgeting and planning purposes, the 2024 proposed budget allocations from the Workforce Housing and Childcare Lodging Tax will breakdown the same as the 2023 Funding Plan: ●Workforce Housing: $4,750,000 ●Childcare: $625,000 For the 2024 Funding Plan, it is estimated that $400,000 will carry over to a fund balance for childcare needs and the Estes Park Housing Authority projects approximately $675,000 will Page 87 2024 Workforce Housing and Childcare Funding Plan Page | 6 carryover for workforce housing and remain unallocated to any subcategory but may be spent to support any allowable workforce housing purpose under the applicable statute. Childcare Workforce Housing and Childcare Lodging Tax funds, along with the Town’s direct contributions, will be used to address the varied challenges faced by families in need of childcare, as well as the workforce challenges providers, early childhood teachers and support staff experience. Childcare will receive 12% of the expected revenue from the Workforce Housing and Childcare Lodging Tax funds, estimated to be $625,000. It is important to note that the estimated revenue and budget for childcare is an approximation and is subject to change based on needs and opportunities that arise, and that all funds may not be spent each year but may carry over to the following year into a fund balance. When considering current and anticipated funding requests before end-of-year, the fund balance expected in 2024 is estimated to be approximately $400,000 bringing the total funds to support childcare solutions to $1,025,000. The roll-over funds may be spent to support any allowable childcare purpose under the applicable statute. Funding decisions are made based on evaluation of need in the community and consideration of maximizing the impact of Workforce Housing and Childcare Lodging Tax funds for the Estes Valley Community. Decisions regarding distribution will be made consistent with the Town’s adopted Childcare Funding Guidelines, while specifics will be informed by the upcoming Childcare Needs Assessment and Strategic Plan expected to be transmitted to the Town in the spring of 2024. Further, with the Housing and Childcare Manager now onboard we can begin developing programs to ensure that funds are distributed in an equitable and transparent manner, and so that childcare providers can have some idea of what they can expect to receive based on the services they provide. The four subcategories presented in the 2023 Funding Plan remain very relevant and will be addressed strategically as follows: Tuition Assistance Tuition Assistance continues to be a prioritized need for Estes Valley families. During the community stakeholders meeting, the participants reiterated that Tuition Assistance should be prioritized to receive additional funding support in upcoming years. In 2023, EVICS Family Resource Center was identified as the partner community organization to administer tuition assistance for families in the Estes Valley in coordination with Larimer County. Funds will be directly provided to EVICS to create a “pool” to supply needed tuition assistance for eligible families. Through a professional service agreement, EVICS will receive funds to offset the costs of administering the program. Town staff will audit funds and evaluate the agreement with EVICS annually to determine efficiency and the approach to administering tuition assistance to the Estes Valley community. Page 88 2024 Workforce Housing and Childcare Funding Plan Page | 7 It is worth noting the ardent desire by stakeholders to increase Tuition Assistance eligibility requirements for families in the Estes Valley. In collaboration with EVICS Family Resource Center, Early Childhood Council of Larimer County, and by using the data gathered from the Childcare Needs Assessment and Strategic Plan, a proposal to increase the eligibility requirements for Tuition Assistance will be presented to the Town Board in 2024 for consideration. Addressing Workforce Challenges Funding programs to support childcare providers and early childhood teachers and support staff is needed to stabilize our workforce. Programs be developed to help bridge the gap between what providers can afford to pay staff and what is considered to be a reasonable living wage in the Estes Valley. Pilot programs such as yearly stipends, recruitment bonuses, and retention programs will be examined as solutions to this need in 2024. A strong focus will be placed on eligibility requirements of such programs. Grants to provide funding for costs associated with housing staff, addressing transportation needs of staff and/or children will be available through the Childcare Funding Guidelines and Funding application process. Depending on the specific need of the applicant, the project may likely be funded through the fund balance. The year-round fluctuation of the local economy affects all of our workforce, but especially negatively impacts childcare providers. As the Estes Park economy shifts throughout the year, work schedules, income, and childcare needs change as well. Dips in enrollment at childcare centers and home providers affect the providers financial stability, as well as the needed consistent care for children. A yearly subsidy for providers to support operational costs will be examined as a priority pilot program and presented to the Town Board in 2024 for consideration. The framework for programs such as these exists throughout the state and country. It is essential to work with local and county partners to ensure we are not duplicating services or programs, rather expanding upon them to meet the unique needs of our local Estes Valley workforce. Out-of-School Programming Childcare for school age children during the summer months, after and/or before school, and on out-of-school days like Teacher Professional Development days, will be subsidized through the Childcare Funding Guidelines and Funding application process for entities that provide such care within the Estes Valley. Ongoing and large scale Out-of-School programming needs will be defined with the Childcare Needs Assessment and Strategic Plan and outline long term planning and support for such care. Collaboration with existing local organizations will support this planning. Page 89 2024 Workforce Housing and Childcare Funding Plan Page | 8 Capital and Facilities The Childcare Needs Assessment and Strategic Plan will provide the necessary insight into long term capital and facility needs for the Estes Valley and describe the role that Workforce Housing and Childcare Lodging Tax funds will play in addressing that need. Because a fund balance will exist in 2024, the Town will be in a position to react to the priority actions presented in the Strategic Plan related to larger capital expenses. Likely, many of the funds for capital and facility will come from the fund balance created by the roll-over funds. Requests for funding for facilities and capital-related expenditures by community providers will be made using an application process administered by the Town. Depending on the size of the request, award decisions may be made administratively (less than $10,000) or by the Town Board. Subsidies to providers for capital improvements and facilities are expected be unique and administered on a case-by-case basis to the individual grant applicant, but may be used for: ●Financial assistance to childcare providers wishing to purchase a facility for childcare. ●Rental assistance for providers. ●Funding for capital improvements to existing facilities needed in order to open or to maintain or increase capacity. Again, it will be especially important to work with our state and county partners to ensure we are not duplicating existing services and grant opportunities, rather the Workforce Housing and Childcare Lodging Tax funds are expanding on them to serve the needs of the local community and workforce. Workforce Housing The Estes Park Housing Authority (EPHA) exists to create and facilitate housing development opportunities in the Estes Valley. EPHA currently has staff and programs in place to utilize Workforce Housing and Childcare Lodging Tax funds to address workforce housing challenges in the immediate term. In July 2023, the Town entered a memorandum of understanding to transfer the workforce housing portion of the Workforce Housing and Childcare Lodging Tax funds received by the Town. EPHA has authority to make purchasing decisions as outlined in the MOU to administer and manage the various programs presented in the Annual Funding Plan. All expenditures by the EPHA will be subject to regular audits. Again, it is important to note that the estimated revenue and budget for childcare is an approximation and is subject to change based on opportunities that arise, and that all funds may not be spent each year but may carry over to the following year. The Estes Park Housing Authority was created by the Town and is a formal governmental entity. The EPHA Board Members are appointed by the Town Board, and it is subject to the same auditing requirements as other public entities in Colorado. Funding decisions are made based on evaluation of need in the community and consideration of maximizing the impact of Workforce Housing and Childcare Lodging Tax funds for the Estes Valley Community. Decisions regarding distribution will be made in collaboration with the Estes Page 90 2024 Workforce Housing and Childcare Funding Plan Page | 9 Park Housing Authority and specifics are informed by the Housing Needs Assessment and Strategic Plan, which was transmitted to the Town and EPHA in January 2023 and the Annual Housing Supply Plan drafted by EPHA, which provides insight into the organization’s future planning. Property Acquisition Reserve The 2023 Housing Needs Assessment and Strategic Plan has informed the specifics for strategic administration of the Workforce Housing and Childcare Lodging Tax funds and is a priority for the development of new housing units for the Estes Park Housing Authority. Therefore, the Estes Park Housing Authority projects $2.5 million for property acquisition in 202 4 and based on this projection that dollar amount will be set aside for that purpose. Predevelopment work for property already in real estate portfolio Estes Park Housing Authority projects the creation of approximately 281 units through the development of four capital development projects beginning in 2024. These projects are either under the direct control of the Estes Park Housing Authority or the Town of Estes Park. Workforce Housing and Childcare Lodging Tax funds, in partnership with various Prop 123 initiatives, will support the development of these projects. Property owned by the Town of Estes Park slated for concept work and possibly the development of housing in upcoming years include the Fish Hatchery Housing Development, 179 Stanley Circle Drive, and the Dry Gulch property. The collaboration between the Town and EPHA will allow for efficient planning and development of these properties. The Fish Hatchery Housing Development has been in predevelopment since 2021, but the Town stepped back from pursuing a workforce rental development at that location due to changes in the financial market, construction costs, and market demand. EPHA and the Town will continue working together to jumpstart a redevelopment of mixed income workforce housing at the site. EPHA anticipates pursuing Low Income Housing Tax Credits (LIHTC) to develop the site in coordination with development partners. That funding process will dictate the timing and ability to begin construction of this project in 2024. Deed Restriction Purchase Program Upon the hiring of the Housing Program Manager, Estes Park Housing Authority will conduct a robust review of deed restriction programs and develop a program that fits the needs of Estes Valley residents. The primary goal of any deed restriction program will be to preserve existing home inventory for use by the local workforce. $1.05 million to go toward this program and its development in 2024. Cash Buyer and Rental Assistance Estes Park Housing Authority will also begin an exploratory process to evaluate the potential efficacy and feasibility of a cash buyer program upon the hiring of the Housing Program Manager. The program could allow EPHA to be a cash buyer for open market properties on behalf of identified and approved local workforce buyers. The pre-approved buyers would then have 90 days to close on the final sale. The Estes Park Housing Authority will utilize $700,000 Page 91 2024 Workforce Housing and Childcare Funding Plan Page | 10 of Workforce Housing and Childcare Tax funds to investigate the tools and processes necessary to activate a program of this nature in 2024. Staffing/Capacity Building In addition to developing assistance programs such as those listed above, the Workforce Housing and Childcare Lodging Tax funds will significantly increase EPHA’s workforce housing development throughout the Estes Valley. To meet the need for new workforce housing developments, as well as the need to preserve or convert existing housing stock, the Estes Park Housing Authority will expand their staffing with two additional positions. Upon the drafting of this report, the positions are open and posted. The Housing Program Manager position will facilitate the development of new housing programs, such as enhanced down payment assistance, deed restriction purchasing, ADU incentives and other housing programs to increase and preserve the stock of attainable housing for our local workforce. The second position of Real Estate Development Manager will take the lead role in managing new development, rehabilitation, and land banking for the Estes Park Housing Authority. The Estes Park Housing Authority is primed to address the needs of workforce housing in the Estes Valley with the addition of these two staff positions and the available funds to acquire property with the funds provided by the Workforce Housing and Childcare Lodging Tax revenue. Assistance programs will allow the additional housing supply to be more accessible to our community members. Decision Making Funding decisions are made based on evaluation of need in the community and consideration of maximizing the impact of Workforce Housing and Childcare Lodging Tax funds. All funding decisions will be made in accordance with the Intergovernmental Agreement between Larimer County and the Town of Estes Park and the adopted Annual Funding Plan (including this plan for 2024). With respect to spending decisions made by the Town, Workforce Housing and Childcare funding policies dictating eligibility for awards and how they can be used have been adopted by the Town Board. These policies are informed by the Town’s existing finance policy, which limits administrative purchasing authority to $100,000 or less, as well as existing Workforce Housing and Childcare funding guidelines. New fund accounts have been established within the Town budget for Workforce Housing and Childcare. Workforce Housing funds are transferred to the Estes Park Housing Authority on a monthly basis as remittances are received. 2024 and Beyond In 2022, Estes Valley constituents requested direct support for childcare and workforce housing from our visitors to help support the vibrancy of our community. With the passing of Ballot Initiative 6E to redirect Lodging Tax funds to childcare and housing, the community turned to the Town of Estes Park to plan, develop, and execute strategies that will foster a more diverse, inclusive, and vibrant community ready to welcome our visitors. With affordable and attainable Page 92 2024 Workforce Housing and Childcare Funding Plan Page | 11 housing and childcare, our community can thrive and in turn our visitors will have a more enjoyable experience and Estes Park will have a more vibrant and sustainable economy. The Town of Estes Park and the Estes Park Housing Authority have a vested responsibility to be proper stewards of these funds. There are many variations of successful programs to support childcare and housing that can be replicated from communities across the state of Colorado and the nation, however, Estes Park has unique needs that will require unique solutions. The Workforce Housing and Childcare Lodging Tax funds provide an opportunity to meet those needs creatively and offer sustainable solutions. The 2023 Housing Strategic Plan and Needs Assessment and the future Childcare Needs Assessment and Strategic Plan will provide strategic action items that will facilitate data driven decision making. Once we have the results of the Childcare Needs Assessment and Strategic Plan, Town staff, in coordination with community partners, will be developing a longer-term strategic plan (e.g. a five-year plan that interweaves housing and childcare and outlines specific desired outcomes and metrics of success. Childcare and workforce housing issues inherently go hand-in-hand and primarily affect the workforce and young families in the Estes Valley. As solutions are developed, the holistic understanding of how these issues are intertwined is essential to long term success and sustainability of the programs. The Housing Strategic Plan provides a vision where “working age households have stable, desirable housing in the Estes Valley enabling them to support our local economy, provide essential services, and thrive as vital members of our community,” which could be easily broadened to include childcare. In 2024, we will be developing a more formal strategic plan that includes desired outcomes with specific metrics for success for both workforce housing and childcare. At a high level, desired outcomes include: •Improving availability and affordability of housing and childcare for the workforce. •Increasing the preservation and creation of workforce housing units. •Creating housing that is desirable, compatible, and affordable for the long term and have close proximity to childcare centers. •Matching housing investments with areas of greatest need in the workforce community. •Providing early childhood teachers and staff with a livable wage so that they are able to live and work in the Estes Valley. Page 93 2024 Workforce Housing and Childcare Funding Plan Page | 12 Process for Development of the Annual Workforce and Childcare Funding Plan for Lodging Tax (6E) Funds The graphic below outlines the high-level steps in the process for development of the 2024 Funding Plan and for future years. The process will be revisited annually in coordination with Larimer County. Changes to the process can be made at any time based on mutual agreement of the Town and County. Summer Aug •Town staff works with Visit Estes Park to determine projected revenues for upcomingyear; develops report on current year expenditures. •Town staff develops recommended Funding Plan for Workforce and ChildcareLodging Tax funds to be included in proposed VEP Annual Operating Plan. Sept •Larimer County/Town/VEP Boards consider VEP operating plan, includingrecommended Workforce and Childcare Lodging Tax Plan budget. Oct-Dec •Town files proposed Funding Plan with the County by November 1. •Town Board adopts Town budget, including budget for Workforce and ChildcareLodging Tax funds. •County approves or requests changes to Funding Plan by December 1. •Town Board engages in Strategic Planning Process which will inform thedevelopment of the next year’s budget. Page 94 10/3/2023 2024 Annual Funding Plan Proposed Workforce Housing and Childcare Funding Plan Carlie Bangs Housing & Childcare Manager Town of Estes Park October-December Town files proposed Funding Plan with the County by November 1. Town Board adopts Town budget, including the budget for Workforce and Childcare Lodging Tax funds. County approves or requests changes to Funding Plan by December 1. September Larimer County, Town and VEP Board considers VEP Annual Operating Plan, including recommended Workforce and Childcare Lodging Tax Plan budget. August Town Staff works with Visit Estes Park to determine projected revenues for upcoming year; develops report on current year expenditures Town staff develops recommended Funding Plan for Workforce and Childcare Lodging Tax funds to be included in proposed VEP Annual Operating Plan. Summer Town Board engages in Strategic Planning Process which will inform the development of the next year’s budget Annual Timeline 1 2 Page 95 10/3/2023 ●Budgeted revenues estimated to be $5,379,305 ●MOU with Estes Park Housing Authority ●Hired Housing & Childcare Manager ●Administering of funds 2023 Report Year One: Building a Foundation ●Housing and Childcare Manager position ●EPHA MOU signed in July ●Childcare Needs Assessment and Strategic Plan RFP ●Seeking additional Staff at EPHA to assist in stewarding 6E funded projects ●Purchased property at 775 Riverside and under contract with a second ●Create foundational processes and systems for disseminating childcare funds o Community Grants ○Subsidy Programs ●Seeking outside funding resources: ○Opting in Prop 123 ○Letter of Interest for Strong Communities Grant ○Letter of Interest for Transformational Housing Grant ○Land Banking Letter of Interest and Invitation to Apply (Prop 123) 3 4 Page 96 10/3/2023 2023 in Review Childcare $625,000 ●Addressing Workforce Challenges ●Facilities/Capital ●Tuition Assistance/Scholarships ●Out-of-School Programming 2023 Distribution of Funds As of 9/20/2023 Expected DistributionEstimated BudgetPurpose of Funds $29,500$250,000Addressing Workforce Challenges -$200,000Facilities/Capital $100,000$100,000Tuition Assistance/Scholarships $75,000 request$75,000Out-of-School Programming $129,500$625,000Total 5 6 Page 97 10/3/2023 2023 in Review Workforce Housing $4,750,000 ●Property Acquisition Reserve (Land- banking, financing, etc) ●Cash Buyer Program/Rental Assistance ●Predevelopment Work ●Deed Restriction Purchase Program ●Staffing/Capacity Building at EPHA ○Up to 3 FTEs and associated overhead 2023 Distribution of Funds **Pending approval of reallocation of funds As of 9/20/2023 Expected DistributionBudgetedPurpose of Funds $2,655,500**$1,500,000Property Acquisition $200,000$1,500,000Cash Buyer Program/Rental Assistance $662,360$900,000Predevelopment Work $300,000$500,000Deed Restriction Purchase Program $256,400$350,000Staffing/Capacity Building at EPHA $4,074,260$4,750,000Total 7 8 Page 98 10/3/2023 2024 Funding Childcare $625,000 + ~$400,000 estimated Workforce Housing $4,750,000 + ~$675,000 estimated 2024 Childcare Funds Tuition Assistance ●Prioritized need ●Annual audit of funds and evaluation of EVICS Family Resource Center as distributor of funds ●Proposal to increase eligibility requirements will be presented to the Town Board in 2024 for consideration Addressing Workforce Challenges ●Pilot programs such as individual stipends, recruitment bonuses, retention programs will be examined ●Annual subsidy for providers to support operational costs will be examined and presented to the Town Board in 2024 for consideration ●Grants will continue to be available through the Childcare Funding Guidelines and Funding application process 9 10 Page 99 10/3/2023 2024 Childcare Funds Facilities & Capital ●Childcare Needs Assessment and Strategic Plan will support the long term capital and facility needs for the valley ●Because a fund balance will exist in 2024, the Town will be in a position to react to the priority action items presented in the Strategic Plan ●Fund requests for capital and facility are proposed to come from the fund balance Out-of-School Programming ●Ongoing funding through the Childcare Funding Guidelines and Funding application ●Ongoing and large scale programming needs will be defined with the Childcare Needs Assessment and Strategic Plan ○This document will outline potential long term planning Childcare Needs Assessment and Strategic Plan By utilizing demonstrated need through statistically viable research conducted in the Childcare Needs Assessment, 6E funds will be utilized to support the the execution and implementation of strategic plan. Projected Timeline: Begin gathering survey data October 2023 Likely completion date June 2024 11 12 Page 100 10/3/2023 Workforce Housing Property Acquisition Reserve (Land-banking, financing, etc) ●Substantial amount of funding needed for purchasing of property ●Expecting $2.5 million needed in 2024 Predevelopment (work for property already in real estate portfolio) ●EPHA projects the creation of approximately 281 units through the development of four projects through 2026 ●Fish Hatchery remains a large project that will progress through next year Workforce Housing Deed Restriction Purchase Program ●Upon the hiring of the Housing Program Manager, EPHA will conduct a robust review of deed restriction programs in hopes to have this program up and running in 2024 Cash Buyer Program/Rental Assistance ●EPHA will also begin an exploratory process to evaluate the potential efficacy and feasibility of a cash buyer program ●They will investigate the tools and processes necessary to activate this program in 2024 13 14 Page 101 10/3/2023 Workforce Housing Staffing/Capacity Building at EPHA (Up to 3 FTEs and associated overhead) ●Position recruitment, training, for ○Housing Program Manager ○Real Estate Development Manager 2024 & Beyond 15 16 Page 102 10/3/2023 Thank you. Continue for Reference Slides 17 18 Page 103 10/3/2023 Projected Fund Balance Actual DistributionProjected DistributionEstimated BudgetPurpose of Funds $29,500$59,500$250,000Addressing Workforce Challenges --$200,000Facilities/Capital $100,000$100,000$100,000Tuition Assistance/Scholarships $100,000$75,000Out-of-School Programming $129,500$259,500$625,000Total $495,500$365,500Fund Balance: Childcare Fund Balance Projected Carry Over Estes Park Housing Authority Projected Carry Over Actual Distribution/CommittedExpected DistributionBudgetedPurpose of Funds $2,925,980$2,655,500$1,500,000Property Acquisition $0$200,000$1,500,000Cash Buyer Program/Rental Assistance $609,298$662,360$900,000Predevelopment Work $0$300,000$500,000Deed Restriction Purchase Program $40,117$256,400$350,000Staffing/Capacity Building at EPHA $3,575,394$4,074,260$4,750,000Total $1,174,606$675,7402023 Carry-over: **Actual/Anticipated as of 9/22/2023 19 20 Page 104 10/3/2023 Survey Feedback Summary of the Survey ●Majority of stakeholders believe the 2023 proposed split between childcare and housing should remain the same in 2024 ●Comments indicated that stakeholders suggest that 2024 should be a continuation of 2023 as a building year ●Lacking clear structured plan for childcare, need to make decisions based on the Strategic Plan ●Need a community-wide, collaborative “vision” ●Long term planning needed for larger projects 21 22 Page 105 10/3/2023 Survey Feedback 23 Page 106 October 10, 2023 •Power Lines and Fire Mitigation •Community Wildfire Defense Grant •Updated ADA Transition Plan October 24, 2023 •Addressing Substandard Rental Housing •Southwest Energy Efficiency Project •Codifying Town Board Compensation Changes November 14, 2023 •179 Stanley Circle Check In and Next Steps Items Approved – Unscheduled: •Fish Hatchery Joint Study Session with EPHA •Growing Water Smart Overview •Noise Ordinance •National Flood Insurance Program Overview •Governing Policies Updates •Stanley Park Master Plan Implementation •Downtown Loop Updates as Necessary Items for Town Board Consideration: •None Future Town Board Study Session Agenda Items September 26, 2023 Page 107 Page 108