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HomeMy WebLinkAboutMINUTES Town Board Study Session Budget Meeting 2008-10-24 Town of Estes Park, Larimer County, Colorado, October 24, 2008 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 24th day of October, 2008. Committee: Mayor Pinkham, Trustees Blackhurst, Eisenlauer, Ericson, Homeier, Levine and Miller Attending: All Also Attending: Town Administrator Halburnt, Deputy Town Administrator Richardson, Town Clerk Williamson Absent: Finance Officer McFarland Mayor Pinkham called the meeting to order at 8:00 a.m. BUILDING AUTHORITY FUND The Town administers the Certificate of Participation (COPs) issued for the golf course improvements that are due to mature in 2009. This is a straight pass through. The maturity of the debt would allow the Town to issue new debt. The EVPRD has expressed interest in issuing additional COPs for the golf course. Staff will meet with the Rec. District next month to discuss options. CATASTROPHIC LOSS FUND This fund contains a 3% emergency reserve of the Town’s operating expenses required by the Tabor amendment and could be held in the General Fund. The 2009 budget includes a $1 million transfer to the Community Reinvestment Fund, leaving a $1.4 million balance. This fund was a funding source for the loan to the Estes Park Housing Authority (EPHA) for the purchase of the Pines Apartment complex and $582,471 would be repaid by June 2010. Administrator Halburnt stated a balance of approximately $591,000 is required to be held in the fund; however, the Town’s insurance would not cover some issues that may occur from a disaster. The Board expressed concern with drawing the fund down and not retaining sufficient funding for a disaster. POLICE PENSION/FIRE PENSION FUNDS. There is one surviving spouse receiving a police benefit of $214/month. This fund was closed to new enrollment in 1988. This is a fiduciary fund that has to remain as a separate account. A transfer from the General Fund would be made in 2009 to pay the benefits and an actuarial study required by state statute. Trustee Ericson requested staff review the possibility of increasing the pension. The Fire Pension Fund revenues have been revised down for 2008 and 2009 budgets. The calculation for the State’s contribution to the fund was incorrect. The State contribution was estimated based upon 90% of the Town’s contribution in the current year. DOLA has stated the calculation must be based on the contributions from the prior year. The retirement benefit was increased to $400/month last year and exceeds the State contribution range. Discussion followed on the cost of the required actuarial study and the possibility of becoming self-insured. THEATER FUND. This is a fiduciary fund to be used to raise funds and build a performing arts theater. Funds have been budgeted for the Supporters of the Performing Arts (SOPA) to complete fundraising for the theater by 2010. If funds can not be raised to build the theater the funds would be donated to a local non-profit organization dedicated to the support of the performing arts. Town Board Budget Study Session – October 24, 2008 – Page 2 BENEFITS The employee parties (picnic, holiday party, and two other gatherings) and homeownership program are funded within this fund. The homeownership fund was increased to $250 last year and is held in a separate account. COMMUNITY REINVESTMENT FUND Administrator Halburnt reviewed the prioritization exercise conducted earlier in the pre- budget process in which the Stanley Park Fairground Multi-Use Barn project emerged as the top priority. Staff was instructed to include the $6.6 million improvement in the 2009 budget: 1) $1 million cash from CLF; 2) $4 million COPs from mortgaging Town buildings with payments of $330,000 over 20 years; 3) $1.6 million cash from CRF and 4) purchase 2008 fire truck from the VRF. During the budget process the national economy has changed drastically and obtaining a loan has become more difficult. Staff recommends revisiting the CIP in early 2009 to review the economy, potential for borrowing money and whether or not the LMD passes. The passage of the LMD may provide additional funds that could be spent on other projects. Board discussion followed: the Town should not incur external debit at this time; past practices of previous boards should be honored and projects should be paid for as funding becomes available; the proposed financing plan may be the cheapest but not prudent at this time; set aside available funds and discuss the potential of moving forward in 2009; past Town Boards have done an exceptional job maintaining fund balances, and therefore, the Town continues to be in good financial situation with no significant debt; available funds for the barn project should be transferred to the CRF in 2009 in the event the economy turns around and a portion of the barns could be built in 2009; and the cost of constructing the barns may decrease as contractors are seeking work. Trustee Blackhurst stated the Board should discuss the Stanley Fairground Master Plan to identify what has been accomplished and what are the next steps. The Board requested a copy of the Master Plan and a separate study session to discuss the rational of the Master Plan. Mayor Pinkham stated a work session would be scheduled during the first quarter to review the Master Plan and the construction of the barns. Staff will remove the barns from the 2009 budget, transfer $1 million from CLF to the CRF and purchase the 2008 fire truck from the Fire Department budget. Director Pickering stated the Master Plan phasing was altered to accommodate the future performing arts theater in the southwest corner of the fairground property and the removal of the stall barns. This change necessitated the need for a new barn that included year-round facilities for the community. The Snow and Ice convention has expressed interest in using the barn facility and would like to make Estes Park its permanent home. The Hunter Jumpers have also expressed interest in using the new barns. CONTINGENCY FUND The contingencies fund includes the Mayor contingency fund to be used for unforeseen expenses. Mayor Pinkham stated he intends to use the funds in a responsible manner and ensured any contributions made would be to organizations without a political bias. Organizations that request funding yearly have been asked to include their requests with the community service grants in the future. Staff recommends moving the Mayor’s Contingency to the Legislative account for transparency and changing the name of the account to Transfers in the 2009 budget. Mayor Pinkham called a break at 9:20 a.m. and reconvened the meeting at 9:33 a.m. Town Board Budget Study Session – October 24, 2008 – Page 3 EMPLOYEE COMPENSATION Administrator Halburnt reviewed the importance of maintaining a quality workforce and competitive salaries. In 1990, the Town employed 100 employees and in 2008 the Town employed 110 with a population that has doubled. The Town provides more services with fewer staff. Staff recommends a 3% merit pool and no Cost of Living Adjustment (COLA) for 2009, which is within the range of the regional comparisons (Loveland, Longmont, Fort Collins, Avon, Frisco, Steamboat Springs). Trustee Homeier stated the General Fund revenues have increased less than 10% in the past five years while employee salaries have increase 60%. He voiced concern with the ongoing trend and recommended the Board set a limit on the percentage of salaries related to the overall budget. The cost of personnel in the private sector is 30% compared to the Town’s cost of 56%. He stated personnel costs exceed operation and maintenance, and therefore, would eliminate funds for services and future projects. Trustee Blackhurst contended the Town’s percentage of personnel related to O&M is one of the lowest compared to other municipalities, with some topping 70%. He stated salaries are in line with the budget and cost increases have occurred because of salary adjustments for Police officers and the lineman in order to retain qualified personnel. Insurance premiums have also contributed to the increase in personnel costs that are not controlled by the Board. Trustee Homeier disagreed and stated the Board can control the quality of insurance provided. Other comments followed: In the past five years additional positions have been added increasing personnel costs; Trustee Homeier’s comments are valid, however, administration has managed salaries responsibly; setting a limit on salaries could cripple the Town in the future; a warning system for personnel costs similar to the “green”, “yellow” and “red” could be beneficial; the Town is not comparable to private industry and a hiring freeze in the future may hinder the level of service the Town can provide the citizens. MEDICAL INSURANCE INTERNAL SERVICE FUND The Town hired a new insurance broker in 2008, Sisk & CO., for a flat fee of $25,000. The broker is recommending a change in providers from a partially self-insured policy with Anthem to a fully-insured policy with Aetna for an estimated saving of $75,000, a 6.5% increase in premiums and an out-of-network increase to $5,000/individual and $15,000/family. Dental insurance would be provided from The Standard with a 25% reduction from 2008, a savings of $35,585 and no additional out-of-pocket expenses. Vision insurance has been through VSP. Staff requested the broker review other plans and options such as a self-insured plan, in which the Town would provide an eye care benefit to all participants. The costs associated with a self-insured plan would more than quadruple the current VSP cost of $17,000 per year. Therefore, staff recommends continuing with VSP. Trustee Homeier stated other plans exist that would allow independent participants to enroll. Administrator Halburnt stated the VSP plan does not exclude employees from purchasing glasses or contacts from a different provide; however, a lesser coverage would apply. The Board requested other options be investigated for next year. Mayor Pinkham called a break at 10:20 a.m. and reconvened the meeting at 10:32 a.m. COMMUNITY SERVICES FUNDING REQUESTS (General Fund). In past years the target budget for this funding has been 5% of sales tax. The subcommittee is recommending $362,491 in funding, a flat budget from 2009. Library funding of $27,600 was agreed to through an IGA that will expire in 2009. The Library would like to discuss a new IGA for future funding. This fund also supports the food tax refund program at a cost of $20,000. Town Board Budget Study Session – October 24, 2008 – Page 4 Mayor ProTem Levine reviewed the sub-committee’s process for assessing the applications. He commented that not every program could be funded and that many of the groups look at the funding as an entitlement. He stated funding levels would not and can not continue. The Town of Estes Park spends a larger percentage per capita than other municipalities, including those with much larger budgets. He stated all the programs and projects are worthy of funding, however, there are limited funds. Comments to the Town Board are summarized below:  Mary Bolgeo/ EVICS President & Nancy Almond/ EVICS – Ms. Bolgeo stated the $8,000 fund balance is money raised for scholarships through grants, fundraising or donations. She stated funding from the Town has been used for scholarships in the past; however, in 2009 the funding would be used solely for operations. Mayor ProTem Levine commented that initial funding for EVICS was provided as seed money with the understanding that EVICS would become self-sustaining over time. Nancy Almond stated the scholarship funding has been eliminated from the request for funding over the years; however, operational costs are difficult to find supplemental funding. In addition, professional fees and fundraising have increased overall costs. Trustee Blackhurst requested EVICS develop a model that decreases the organization’s reliance on Town funding.  Kay Lawson/Circle of Friends Montessori School – The request is for a one time funding for a fire alarm at the school’s temporary location at the Masonic Lodge.  Estes Park Non-Profit Resource Center Inc. – Frank Shavlik stated the center requested funding for access to major funding sources, The Giving ORGANIZATION 2009 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 EP Repertoire, $1,000 Cultural Arts Council of Estes Park, $1000 $6,000 Transportation: Special Transit, $27,500 $27,500 Housing: Estes Park Housing Authority, $170,000 Habitat for Humanity, $7,000 $177,000 E. V. Public Library District $27,600 Youth: Cub & Boy Scout Program, 2,591 Estes Valley Investment in Childhood Success, $28,000 Estes Learning Place, $2,500 Circle of Friends Montessori School, $4,800 Partners of Estes Park, $4,000 EP Non-Profit Resource Center Inc., $1,500 PACK, $6,500 $49,891 Food Tax Refund $20,000 Human Services: Crossroads, $20,000 E.P. Salud, $20,000 Radio Reading Service, $500 Estes Park Gun & Archery Club, $5,000 $45,500 Sister Cities Int’l. Conf. Student Participation, $9,000 $9,000 Town Board Budget Study Session – October 24, 2008 – Page 5 Guide and Foundation Center. The Center would provide training to non- profits on the use of the online guides.  Estes Park Gun & Archery Club – The request would fund improvements to the indoor shooting range used by the Gun Club, Estes Park Police Department, Larimer County Sheriff’s Department, Rocky Mountain National Park Rangers and the general public. The funds would be used to improve the ventilation system to meet EPA requirements. Trustee Blackhurst stated improvements to the building are a critical need for the training of our officers, and therefore, the Town should review the needs of the facility, funding for improvements and long range planning.  Pam McDonald/Audio Information Network of Colorado (Radio Reading Services) - Thanked the Board for the support. She reviewed the non- profits scope of services, including the broadcasting of over 104 hours of the Trail Gazette each year.  Virgil Good/Crossroads Ministry – Thanked the Town for their support. He stated the current economic crisis has already impacted the services Crossroads provides.  Mary Scott/Salud Foundation – The Salud Board thanked the Town for their ongoing support. The center has experienced an increase of 10% in medical needs this year. The local Salud does not receive Federal funding due to the ratio of population to doctors that take Medicaid/Medicare.  Rita Kurelja/Estes Park Housing Authority Director – Thanked the Board for continued funding. She stated the EPHA continues to seek other sources of funding to decrease its dependency on Town funding; however, the Authority was unable to do so this year because of the need to expand services. The Authority will expand the two part-time positions next year to provide additional services to the community. She stated financing for development is not available and homeownership projects have also been affected by the current financial situation. Next year’s activity will center on strategic planning and outreach.  Judy Nystrom/Habitat for Humanity – Thanked the Board for the support throughout the years. She stated Habitat is accepting applications for its next project.  Art Bloom/Estes Park Repertoire Theater Company – The Theater is a new group as of July 2008. The funding is a one time request for this start up theater company. Concluding all public comment, the Board expressed their appreciation to all those in attendance, noting their good work in the community. MISCELLANEOUS Staff has taken a look at those items that could be cut or could wait to be purchased later in 2009: - Not purchase vehicles – instead not transfer $250,000 to VRF - Leg Plan/Studies $5,000 - Leg Pride Awards $5,000 - Exec PIO $35,000 - Fin Furniture $1,000 - CVB Marketing $50,000 - Community Service Grants - $150,000 - Police Radar Guns - $3,500 - Police Tasers - $2,445 - Police ICOP - $10,000 - Fire SCBAs - $19,500 - PW Potholes Patcher - $47,300 - SOPA $217,000 Town Board Budget Study Session – October 24, 2008 – Page 6 The Board stated the budget money should be transferred to the VRF, and if necessary, funds could be borrowed from this fund. Trustee Eisenlauer questioned the method used to distribute Community Service Grant funds. Discussion followed on the need to pay requests above $20,000 quarterly and all others as a one time payment. Staff would review and provide options to the Board. Trustee Homeier stated the Town could forego funding for the operations of EPURA and save $200,000. The Board thanked staff for the redesign of the budget that provided an easy to read document. Mayor Pinkham thanked the Board and staff for their time and effort over the last several months. There being no further business, Mayor Pinkham adjourned the meeting at 12:05 p.m. Jackie Williamson, Town Clerk