HomeMy WebLinkAboutMINUTES Town Board Study Session Budget Meeting 11-02-2007 Town of Estes Park, Larimer County, Colorado, November 2, 2007
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 2nd day of November,
2007.
Committee: Mayor Baudek, Trustees Blackhurst, Eisenlauer, Homeier
Levine, Newsom and Pinkham
Attending: Mayor Baudek, Trustees Blackhurst, Eisenlauer, Homeier
Levine and Pinkham
Also Attending: Town Administrator Repola, Deputy Town Administrator
Halburnt, Finance Officer McFarland, Town Clerk Williamson
Absent: Trustee Newsom
Mayor Baudek called the meeting to order at 8:30 a.m.
CATASTROPHIC LOSS FUND
This fund contains a 3% emergency reserve required by the Tabor amendment. The
reserves from this fund could be used for other projects as long as the 3% Tabor
reserve is maintained. This fund was a funding source for the loan to the Estes Park
Housing Authority for the purchase of the Pines Apartment complex. Staff will
footnote all funds used for the EPHA loan.
BUILDING AUTHORITY FUND
The Town administers the Certificate of Participation issued for the golf course
improvements due to mature in 2009. This is a straight pass through. The maturity of
this debt would allow the Town to issue new debt.
MEDICAL INSURANCE INTERNAL SERVICE FUND
Deputy Administrator Halburnt stated the Town is partially self insured for the first
$5,000 of any claim paid from the medical insurance fund. The balance is growing in
this fund which could allow the Town to increase its stop loss and lower medical
premiums in the future. The Town is investigating reducing its cost for vision coverage
through a fully self insured plan.
FLEET
Administrator Repola reviewed the internal service fund that charges each department
for services related to vehicles and related equipment. The target fund balance should
be capable of repairing or replacing the building and all equipment. Future vehicle
replacement will be corrected from $2,600 to $3,600.
Director Zurn stated the 2008 budget contains no changes in personnel. O&M
increases include A&C for the office and security door locks for the building.
VEHICLE REPLACEMENT FUND
This internal service fund charges each department with vehicles 125% of the estimated
annual depreciation. In the past, funds were transferred from the Contingency Fund for
the replacements of vehicles in lieu of purchasing vehicles through a bank loan. In
order to use the fund in 2008, the dollar amount to be paid by each department has
been recalculated and will increase total vehicle replacement funds from $269,000 to
$537,000. The fund will only replace current vehicles within the fleet and all new
vehicles will be purchased by the department. Discussion followed on the practice of
allowing departments to purchase used vehicles from Fleet and if additional equipment
Town Board Budget Study Session – November 2, 2007 – Page 2
(snowplows, light bars, ladders, hoses, etc.) for the vehicles should be purchased by the
individual department. Vehicles will not be added to the fleet without justification and
Committee approval. The appropriate Committee will also evaluate each vehicle
purchase and required equipment to determine if the vehicle replacement fund is to be
used for the full purchase. Staff will footnote on the individual department
summaries the yearly vehicles to be replaced and to note department names not
account numbers on the vehicle replacement fund summary. Mayor Baudek
requested staff review the potential use of hybrid vehicles for the building inspectors
and the museum in the future. Staff continues to assess the benefits versus cost of
maintenance for hybrid vehicles.
POLICE PENSION/FIRE PENSION FUNDS.
Police: There is one surviving spouse receiving a benefit of $214/mo. This fund was
closed to new enrollment in 1988. This is a fiduciary fund that has to remain as a
separate account. When the fund is paid out the Town will pay the benefits from the
General Fund.
Fire: The Town’s contribution will be increased to the maximum allowed by state statute
in order to fully fund the pension fund. Pensions were raised in September for all
current and retired volunteers from $350 to $400 per month.
THEATER FUND.
This is a fiduciary fund to be used to raise funds and build a performing arts theater.
Funds have been budgeted for use by the Supporters of the Performing Arts (SOPA) to
complete fundraising for the theater by November 2008.
Mayor Baudek announced a 10-minute recess at 9:48 a.m., and the meeting was
reconvened at 10:03 a.m.
COMMUNITY SERVICES FUNDING REQUESTS (General Fund).
In past years the target budget for this funding has been 5% of sales tax; therefore, the
2008 target budget is $355,000. The subcommittee is recommending $362,297 in
funding, a decrease from 2006. Trustee Levine commented that not every program
could be funded and many that have received funding in the past have been cut. In
addition, the Town must focus on infrastructure needs and cuts were necessary to do
so. Trustee Blackhurst commented all the programs and projects are worthy of funding;
however, there are limited funds.
ORGANIZATION 2008 BUDGET
Arts & Education:
Chamber Music Festival, $1,000
Community Jazz Concert Series, $1,000
Estes Village Band, $1,000
Oratorio Society of Estes Park, $1,000
Cultural Arts Council of Estes Park, $1000
$5,000
Transportation:
Door to Door Transportation Service, $26,000
$26,000
Housing:
Estes Park Housing Authority, $175,000
Habitat for Humanity, $7,000
$182,000
E. V. Public Library District $27,600
Youth:
Estes Valley Investment in Childhood
Success, $28,000
Estes Learning Place, $2,500
Partners of Estes Park, $4,000
PACK, $6,500
$41,000
Town Board Budget Study Session – November 2, 2007 – Page 3
Comments to the Town Board are summarized below:
Janice Newman/President of EVICS – Thanked the Board for the
continued support. The funding will be enough to keep the program with
cuts to scholarship funding. She invited the community to a meeting
Monday, November 5, 2007 to discuss childcare in Estes Park.
Carol Evans/ Interim Exe. Dir. of Crossroads Ministry –Thanked the Town
for their support. Due to the Town’s support Crossroads has been chosen
for additional funding by the County through grant funds.
Rita Kurelja/Estes Park Housing Authority Director – Thanked the Board
for continued funding and stated the EPHA continues to decrease its
dependency on Town for funding and continues to seek other funding and
revenue sources.
Concluding all public comment, the Board expressed their appreciation to all those in
attendance, noting their good work in the community.
BENEFITS
The employee parties (picnic, holiday party, and two other gatherings) and
homeownership program are funded within this fund. Staff will increase the Town’s
contribution to the homeownership fund from $150/month to $250/month.
EMPLOYEE COMPENSATION
Health insurance will increase 10% and an increase in co-pays from $15 to $25 per
visit. A new insurance broker has been hired for 2008 with a five-year contract
renewable yearly and a $5,000 savings per year.
An annual compensation survey was completed this year to ensure the Town’s wages
remain competitive. This year three regional comparisons were used (Loveland,
Longmont, Fort Collins) and three resort comparisons (Avon, Frisco, Steamboat
Springs). A 5% increase is proposed with 2.5% Merit, 2% Cost of Living Adjustment
(COLA) and .5% for salary range adjustments.
Discussion followed: to retain and attract employees the salaries need to be adjusted to
inflation; COLA should be increased to inflation and decrease merit pool; need to
maintain competitive wages; turnover can be expensive; the employees spending power
is decreasing every year the salaries do not increase by CPI; the merit pool should be
high enough to create an incentive; and spot awards and bonuses should be used for
special recognition.
Administrator Repola stated the philosophy of the Town has been pay for performance
and a merit pool of 2.5% would allow the average employee to remain even with
inflation. Staff is recommending adding COLA directly to all salaries without adjusting
the grades.
ORGANIZATION
2008 BUDGET
Food Tax Refund $21,197
Human Services:
Crossroads, $20,000
E.P. Salud, $20,000
Radio Reading Service, $500
Estes Valley Victims Advocates, $10,000
$50,500
Sister Cities Int’l. Conf. Student Participation,
$9,000
$9,000
Town Board Budget Study Session – November 2, 2007 – Page 4
Staff was directed to (1) provide a merit pool of 2.5% (2) 2.5% Cost of Living
Adjustment and (3) 0.5% for salary range adjustments. Trustees would like staff to
provide feedback on the employees’ reactions to the compensation structure.
TRUSTEE/ MAYOR COMPENSATION
The Mayor and Trustees received an increase in compensation in 2000. Deputy
Administrator Halburnt reviewed a CML survey of elected official compensation and 64
out of 75 municipalities that responded have higher compensation than Estes Park.
Mayor Baudek stated an increase in compensation could help attract additional
candidates, especially business owners. Discussion followed on the positive effects an
increase for newly elected officials in 2008 may have on the candidate pool. The
following increases were proposed: $6,000/Mayor, $5,000/Mayor Pro Tem,
$4,000/Trustee. The Board approves of the concept and requested staff provides
current salaries adjusted by CPI for comparison and prepare an Ordinance for an
upcoming Board meeting.
MISCELLANEOUS
Larimer County will be reallocating a portion of the Larimer County Road and Bridge tax
to their General fund. 50% of this tax is rebated to the Town; therefore, the Town will
see approximately $50,000 less from the County next year and a further reduction of
approximately $100,000 of $150,000 in 2009. This decrease is reflected in the Street
Department budget.
The Board thanked staff for an easy to understand and transparent budget process.
Trustees also appreciated the July Study Session and requested a session be held
again next year to discuss the budget with the department heads present. Mayor
Baudek thanked the Board and staff for their time and effort.
There being no further business, Mayor Baudek adjourned the meeting at 11:46 a.m.
Jackie Williamson, Town Clerk