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HomeMy WebLinkAboutMINUTES TOWN BOARD Pre-Budget Study Session 07-28-2009 Town of Estes Park, Larimer County, Colorado, July 28, 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 28th 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 9:00 a.m. 2010 POLICY GUIDANCE Improvement Project Priorities Financing Options The Board requested staff move forward with projects on a cash basis; however, the Board instructed staff to develop financing option for their review. The Board expressed hesitation on financing improvements during the current economic times. Finance Officer McFarland stated that borrowing is currently cheap and may never be cheaper. Target Fund Balances Finance Officer McFarland stated over the past two years 82% of communities in Colorado have seen a decline in their general funds. The Town’s fund balance ranks 48 out of 126 communities. Year-around communities have seen a 10% to 20% decrease in revenues. Resort communities general fund balances range from 3% to 75%. The Board reaffirmed its previous decision to maintain a 30% fund balance. Community Services Grants Administrator Halburnt stated the Town provided $362,000 in community service grants in 2009 with half of the funds granted to the Estes Park Housing Authority (EPHA). Discussions with the EPHA have confirmed their continued commitment to decrease their reliance on the Town and to eventually be supported solely on rental income. Trustee and EPHA Chair Blackhurst stated the Authority has tried to reduce its funding request by 10% a year. Administrator Halburnt stated the agreement between the Town and the Library that provided $27,600 in financial assistance ends in 2009; however, the Library may request funding for 2010. The Library claims the past assistance was not beneficial because it was used for debt payments and not O&M. Mayor Pinkham and Mayor Pro Tem Levine met with representatives of EVICS at their request. EVICS would like to have the Town finance them directly in order to avoid the uncertainty of grant funding each year. Discussion followed by the Board and is summarized: funds should be held at 2009 levels; with the Town budget down 1.5% and potential cuts in O&M there should be a decrease in grant funding for 2010; grants should be paid out quarterly; reduce funding Town Board Study Session – July 28, 2009 – Page 2 during the year if sales tax is down by June of the following year; all parties should share the burden of a decrease in sales tax revenue. Administrator Halburnt stated the Town reviewed quarterly payments last year and found it difficult to administer and would suggest the Board cut payments by 5% for the 2010 budget. Employee Compensation and Benefits Administrator Halburnt stated many municipalities and counties are seeing a freezing of positions and salaries, lay-offs, cutting payrolls by 10% and mandatory pay cuts for employees. The Town could consider reducing benefits and/or request the insurance broker to investigate other insurance companies in an effort to reduce costs. Trustee Homeier addressed the Board on the Town’s current vision insurance VSP. He requested the Town consider a health savings plan for vision care rather than an insurance company that does not accept businesses not owned by a doctor. The current insurance plan increases the leakage to the valley. Administrator Halburnt stated a survey was conducted in 2008, which seem to suggest the costs would increase if the Town provided a lump sum for vision care. There is also a perception by the employee that their benefit would decrease. Staff would review the finding of the previous survey and report back to the Board on the cost difference between VSP and a lump sum for vision care and the pros and cons of self insurance. Administrator Halburnt stated staff has investigated self-insurance with a stop loss of $30,000 for medical insurance. The Town could save money if there are fewer insurance claims. Trustee Miller suggested the Town consider offering a discount drug card to its citizens with the Town logo on the front. Administrator Halburnt stated the Board approved a 3% merit pool for 2009 with 2.5% for merit and .5% for salary adjustments. Staff does not anticipate cutting positions, furloughs, freezing positions or cutting salaries. Staff is budgeting flat for 2010 and will present the Board with a 1% - 3% merit pool. Board discussion followed: increases in benefits should be determined prior to discussing salary increases; salary and merit increases may need to be delayed until the fourth quarter of 2010; freeze salaries and zero merit in 2010; and the Town needs to concentrate on retaining employees over other expense such as community service grants. POTENTIAL REVENUE SOURCES. Sales Tax Increase Administrator Halburnt informed the Board that statutory limits on sales tax has been lifted. She stated the Town could raise sales tax by .25% for an approximate $400,000 that could be allocated for parking improvements. There is a perceived issue with the lack of parking downtown by the merchants and this would address their concerns. Discussion is summarized: would be reluctant to consider an increase during the current economic climate; there are more serious issues to address such as streets, drainage or workforce housing; merchants should organize and raise the funds to build a parking garage, i.e. Downtown Improvement District; and funds would be better spent on an outlining parking lot/transportation hub. A discussion ensued regarding parking tickets and metering of parking lots. The 3-hour parking has been enforced this season, and therefore, there has been an increase in tickets. Metering the prime lots and providing a free lot with shuttles provides people with choices. Storm Water and Street Utility Director Zurn provided an update on the current staffing levels and the shortfall on funding for street improvements over the past couple of decades. He stated communities are creating utilities to address the issues related to stormwater and street Town Board Study Session – July 28, 2009 – Page 3 improvements. This could be accomplished for the entire planning area with an IGA between the Town and the county. The Board responded positively to the possible creation of an additional utility and requested a brief memo on how the utility would work, the benefit, how it would be approved, and a spreadsheet outlining the potential revenue. There was discussion on the potential need to have two rates, one for county properties to address drainage and a separate rate for town properties to address drainage and streets. Director Zurn stated the county properties would be paying a fee to maintain the town roads they use to access their properties in the county. Administrator Halburnt stated the issue would come forward to the Utilities Committee for further review and discussion. CVB Funds Deputy Town Administrator Richardson presented the Board with a spreadsheet comparing the current CVB budget for 2009 with the proposed 2010 CVB budget minus the Communication Fund of $829,892 to be funded by Local Marketing District (LMD) in 2010. In 2010, the CVB will transfer four staff member to the LMD with the Town retaining the personnel expenses in 2010. The Town anticipates transferring approximately $1.15 million to the CVB in 2010 with a net savings over 2009 of approximately $801,185. Director Pickering reviewed the revenues generated at the CVB and stated the approximate $300,000 generated from stakeholder services and sales at the visitor center are used to offset the annual operating costs for the Visitor Center of $200,000. Therefore, an additional $100,000 remains that the LMD would like for marketing/advertising. Discussion was heard on transferring revenues to the CVB: the revenues generated by the stakeholder position should remain with the Town as long as the Town pays that positions salary; the four CVB employee salaries and benefits are more than the revenues generated and should remain with the Town until such time the LMD pays for the salaries; any revenue sharing with the LMD would be a decrease in the saving realized by the Town; and the LMD has requested the Town fund any shortfall from the collection of the 2% lodging tax. Town Administrator Halburnt pointed out the current group sales position also markets the conference center. With the transfer of this position to the LMD, Director Pickering would backfill this position because the Town’s agreement with the Holiday Inn requires a full-time person to market the facility. She stated the Town may have to consider filling the position to not only market the conference center but perhaps the other facilities at the fairgrounds. MISCELLANEOUS. None. There being no further business, Mayor Pinkham adjourned the meeting at 11:40 a.m. Jackie Williamson, Town Clerk