HomeMy WebLinkAboutMINUTES Town Board Pre-Budget Study Session 07-24-2009
Town of Estes Park, Larimer County, Colorado, July 24, 2009
Minutes of a Regular meeting of the TOWN BOARD PRE-BUDGET
STUDY SESSION of the Town of Estes Park, Larimer County, Colorado.
Meeting held at Town Hall in Rooms 201/202/203 in said Town of
Estes Park on the 24th day of July, 2009.
Board: Mayor Pinkham, Trustees Blackhurst, Eisenlauer, Ericson,
Homeier, Levine and Miller
Attending: All
Also Attending: Town Administrator Halburnt, Deputy Town Administrator
Richardson, Dept. Heads Dorman, Goehring, Kilsdonk,
Kufeld, Joseph, McFarland, Pickering and Zurn and Town
Clerk Williamson
Absent: None
Mayor Pinkham called the meeting to order at 9:10 a.m.
BUDGET POLICY AND FLOW CHART.
Deputy Town Administrator Richardson reviewed the new budget flow chart and stated
the chart breaks down the budget process into steps. The Board commented they liked
the level of detail provided during the 2009 process and requested staff provide
information on any large decreases or increases to the budget for 2010.
FIVE YEAR OUTLOOK.
Finance Officer McFarland presented an overview of the current nationwide economy.
He stated consumer prices increased 0.7% in June with a 0.6% forecasted for July due
to an increase in energy costs. Over the past year, prices have fallen 1.4%, the largest
drop since January 1950. Inflation has been contained because companies are not
able to pass on higher energy costs to consumers. The GFOA predicts the current
lower consumer spending pattern would become the new norm, and therefore, the
economic recovery would occur at a lower growth path. The Rocky Mountain Lodging
Report states occupancy YTD is down 7% from 2008 and the average daily rate is down
by $10.00.
Estes Park sales tax through May (25% of fiscal year) is down 1.5% from 2008, which
translates to $110,000. The predictors of sales tax (traffic counts, RMNP visitation and
hotel occupancy) remain consist from May to June, and therefore, the Town predicts a
flat June. Real estate market remains strong for commercial property and a softening of
the residential market with lower prices for single-family homes.
Finance Officer McFarland presented the Board with assumption for the Capital
Improvement Plan (CIP) including: Denver/Boulder CPI projections of 2010-1.6%, 2011-
2.6%, 2012-3.3%; a flat trend for revenues; 7% sales tax for Fire District; $200,000
transfer to EPURA; $500,000/year transfer to Community Reinvestment Fund (CRF);
$770,000/year reduction in transfers to the CVB; and no new net staff. He reviewed
three scenarios on how the CVB savings could be allocated: Scenario #1 would transfer
only $500,000/year to the CRF and maintain 30% fund balance through 2013; Scenario
#2 would transfer only the CVB savings of approximately $770,000/year to the CRF and
drop fund balance to 20% by 2013; and Scenario #3 would transfer both $500,000/year
and $770,000/year to the CRF and drop fund balance to 4% by 2013.
Community Reinvestment Fund Assumptions include a transfer from the General Fund
ranging from $500,000 to $1.27 million, $217,000/year for SOPA commitment, $400,000
in 2009/2010 for grandstand project, and $270,000 in 2009 for architectural/impact fee
studies for Multi Purpose Event Center. CRF fund balance in 2013 ranges from $3.2
Town Board Study Session – July 24, 2009 – Page 2
million with $500,000/year transferred from the General Fund, $4.3 million with
$770,000/year transferred and $6.3 million with $1.27 million/year transferred. If the
default of $500,000 is transferred the CRF would increase annually by $283,000 with a
fund balance of $2.1 million in 2009. This annual increase could be used to pay cash
for ongoing projects or leveraged with Certificates of Participation (COPs) to yield up to
an additional $3.25 million of borrowing power. The Town could build projects totaling
up to $5.4 million with the COPs.
2009 YEAR TO DATE REVIEW/2009 FORECAST.
Finance Officer McFarland stated revenues YTD are down 1.4%. The Building
Department has seen a sharp drop off in revenues down from $330,000 YTD in 2008 to
$80,000 YTD in 2009. Interest income is down from staff’s estimate of 1.37% to .37%
that translates into $50,000 of unrealized revenues. He stated staff identified capital
projects that are being held until the fourth quarter and could cover the shortfall in
revenue.
2010 POLICY GUIDANCE.
Administrator Halburnt reviewed the Capital Improvement Plan (CIP) ranking by the
Trustees. The top two projects were the grandstands and the MPEC. The grandstands
remain a number one priority because of the safety concerns. The grandstand
committee has been reviewing the design with Roger Thorp/Architect to decrease costs.
The committee would be receiving final cost estimates and Trustee Miller anticipates the
base bid of $1.2 million with add alternates that may bring the project to $1.3 or $1.4
million. Trustee Blackhurst stated concerns with the Town funding a portion of this
project and stated Town funds could be used to complete other revenue generating
projects at the fairgrounds. He stated the Board should look at the potential revenues of
the projects at the fairgrounds to determine what to build first. The Board discussed
options for financing the projects and stated they would like to pay for the projects with
available funds; however, they would like staff to bring forward finance options.
Administrator Halburnt stated the only other item that received a high rating was an
update to the Comprehensive Plan. Discussion followed amongst the Board and staff
on the need, including the fact an update was recently completed for the statistical
numbers and projections; an update should not be completed during the current
economic environment; the money should be spent on other projects; discussed the
need to identify potential commercial ground; more important issue would be to address
the inconsistencies with the Municipal Code and the EVDC; and a problem stated would
provide clarity on the scope of the issues. Mayor Pinkham stated the Town needs to
look at the long term sustainability of the town and the issues facing the community. He
informed the Board that RMNP Superintendent Baker has shown interest in an
assessment and may be able to provide funding of approximately $30,000. The Board
reached consensus to remove the Comprehensive Plan update for 2010.
Chief Dorman stated an inspection of Town Hall was completed and a report would be
forthcoming; however, no major issues were found. If the Fire District passes in
November, the issue of a fire code could be addressed by the district. The Board
agreed the adoption of a Fire Code should be placed on hold until after the
election.
The Board requested additional information on the cost, location, and size (number of
spaces) for a police carport. The carport would protect the cars from sun damage to the
paint but more importantly the electrical components within the cars and would keep the
cars free from snow.
The Town received grant funding for the beautification of Moraine Avenue. CDOT has
informed Public Works that the state expects the Town to fix the pedestrian crossing
with a $100,000 traffic light. Discussion followed on the need for the crossing at
Moraine Ave. to Wiest. The Board reached consensus on the removal of the
pedestrian crossing at an estimated cost of $5,000.
Town Board Study Session – July 24, 2009 – Page 3
The Board discussed the funding of EPURA for 2010. EPURA has requested $500,000
for operations and project funding. The Board agreed that establishing funding for
EPURA should wait until after the election on the Initiated Ordinance to abolish
EPURA.
Administrator Halburnt stated the League of Women Voters have requested the Town
be involved in joint meetings with the county and Waste Management to discuss
recycling issues. She stated the issue should be addressed by the county and the
private business sector and not the Town. Trustee Ericson stated the Town should
support recycling. The Board consensus was to promote recycling on Town
owned properties and in the downtown areas; however, the Town should not
finance a recycling center.
Trustee Miller requested staff replace the current question marks in the CIP plan with
estimates and resend the document to the Board.
The Town has committed to pay for the salaries and benefits for the four CVB
employees that would report directly to the LMD. The only funds the Town would save
are the dollars currently spent on marketing/advertising. The Town would still be
responsible for the operation and maintenance of the CVB building. The LMD has
presented their interest in sharing the revenues generated by the stakeholder services
of approximately $100,000. The Board should consider whether or not they intend to
fund the LMD beyond the employee salaries.
POTENTIAL REVENUE SOURCES.
Administrator Halburnt presented the Board with the potential of forming a new utility for
stormwater/drainage. The valley wide utility would become an enterprise fund that
would charge each account a monthly fee of $5 and could collect approximately
$500,000 a year to address stormwater and drainage issues. Many towns are forming
these utilities.
Trustee Miller stated the Bond Park focus groups continue to discuss the parking issue
downtown. He questioned if an increase in sales tax for parking could be dedicated to a
parking structure, i.e. a second level on the Wiest parking lot. He also questioned the
potential sale of Lot 4, Stanley Historic District as a revenue source.
MISCELLANEOUS.
Trustee Homeier requested staff provide two scenarios at the beginning of the budget
process with one scenario spending all available funds to maintain infrastructure and
complete the grandstands and the MPEC and a second scenario showing the baseline
costs of running the Town. He would like to know where the Town could cut 10% to
15% in order to accomplish the infrastructure improvements. Mayor Pro Tem Levine
concurred and stated this would allow the Trustees to determine how much money
could be spent on other projects. Administrator Halburnt stated statutory requirements
do not include departments such as the museum and senior center. Mayor Pinkham
and Trustee Blackhurst stated this process would overcomplicate the budget and items
can be deleted during budget discussions in October.
Director Zurn stated $1.2 million should be funded per year to maintain the current
infrastructure. He also stated the drainage master plan has identified the need for $9
million in improvements to stop polluting the rivers.
There being no further business, Mayor Pinkham adjourned the meeting at 12:00 p.m.
Jackie Williamson, Town Clerk