HomeMy WebLinkAboutTB Study Session 2010-10-26
Town of Estes Park, Larimer County, Colorado, October 26, 2010
Minutes of a Study Session meeting of the TOWN BOARD of the Town
of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in
Room 130 in said Town of Estes Park on the 26th day of October,
2010.
Board: Mayor Pinkham, Mayor Pro Tem Levine, Trustees
Blackhurst, Elrod, Ericson, Koenig and Miller
Also Attending: Town Administrator Halburnt, Deputy Town Administrator
Richardson, Town Attorney White, Director Kilsdonk,
Finance Officer McFarland, Town Clerk Williamson
Absent: None
Mayor Pinkham called the meeting to order at 5:00 p.m.
2011 LOCAL MARKETING DISTRICT BUDGET.
Trustee Blackhurst recused himself from the discussion. Scott Webermeier/LMD
Treasurer stated the proposed LMD budget was modified as presented during the
October 12, 2010 study session to reflect the additional cost of a half-time FTE and the
removal of the Tabor reserves from the expenses. The LMD’s fixed expenses for 2011
were updated to reflect $128,985 over annual income rather than $195,243 reported at
the previous meeting.
Ken Larson/LMD Chair reiterated the LMD is requesting $128,985; therefore, with the
Town’s budgeted funding of $83,000 plus the LMD payment of approximately $39,000
in expenses (rental space, utilities, etc.) to the Town, the difference is an additional
$6,000 in funding for 2011. He stated the LMD would pay for all LMD employee
salaries and Town benefits and retain the stakeholder services fees in 2011 in an effort
to provide transparency to the public. Town Administrator Halburnt commented the
proposed 2011 Town budget contains the stakeholder revenues and the payment of the
four original LMD salaries with a next impact to the budget of $83,000. The Town has
not included the revenues from the LMD for rent, utilities, etc.
Discussion followed regarding the LMD’s emergency reserve: the Board questioned
what the reserve would be used for during an emergency; what would happen to the
funds in the meantime; have other DMO’s developed emergency funds and funded
them with a lump sum; and could the LMD fund the emergency fund over time and use
fund balance to pay for additional expenses in 2011. It was suggested $200,000 could
be earmarked from the Town’s Catastrophic Loss fund to provide the LMD with
emergency funds if an event occurred prior to the LMD completely funding the
emergency fund.
LMD Chair Larson stated a review of other DMO’s found the suggested reserve should
be 30% of operating expenses to be used during an emergency for operations and
additional marketing at the approval of the LMD Board. The Board made a decision to
utilize reserves to fund the emergency account in a lump sum and place the funds in an
investment account.
LMD staff would draft a new budget to be included in the 2011 Operating Plan.
Revisions to the current IGA would need to be approved by the Town and the LMD.
Finance Officer McFarland would update the proposed 2011 Town budget as it relates
to the LMD for the Town Board’s consideration at the November 9, 2010 public meeting.
Town Board Study Session – October 26, 2010 – Page 2
QUARTERLY FINANCIAL UPDATE.
Trustee Blackhurst joined the meeting. Finance Officer McFarland presented a 3rd
quarter financial report outlining income and expenses through September 2010 and
sales tax data through August 2010. Sales tax is ahead of the 2009/2010 budget by
3.2%. Food and lodging continue to increase with retail and construction down. Sales
tax is estimated to exceed budget at slightly over $7.0 million. Expenses are down in
the General Fund because of ongoing projects and due to prudent spending on the part
of departments. The debt service ratio for Light & Power has decreased with the early
payoff of a bond, thus saving over $130,000 in interest expense. He reviewed the
grants the Town has received in 2010, and stated a single audit does not occur unless
the Town spends $500,000 from a single grant per year. Most grant activity in 2010
occurred in the Police Department followed by Public Works for transportation related
issues.
MISCELLANEOUS
Finance Officer McFarland stated Greenplay continues to work on the pro forma for the
MPEC and would provide a final report to the Town Board at the first meeting in January
2011. He also stated an RFP would be completed for investment advisory services for
2011 with a final recommendation to the Board in January 2011.
Trustee Blackhurst stated he researched credit card fees locally and determined 2.5%
was the lowest. He stated the fee is paid for by the credit card merchant.
Trustee Miller stated the Community Reinvestment Fund was moved into the Public
Works funds per the new GASB regulations, and he requested the funds be removed in
order for the Board to review the revenue and expense. Attorney White informed the
Board that the fund was created by a vote of the people, and therefore, the account
would be reestablished.
There being no further business, Mayor Pinkham adjourned the meeting at 6:30 p.m.
Jackie Williamson, Town Clerk