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HomeMy WebLinkAboutTB Budget Study Session 2010-10-01 Town of Estes Park, Larimer County, Colorado, October 1, 2010 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 1st day of October, 2010. Board: Mayor Pinkham, Trustees Blackhurst, Elrod, Ericson, Koenig, Levine and Miller Attending: All Also Attending: Deputy Town Administrator Richardson, Finance Officer McFarland, Directors Joseph, Goehring, and Zurn, Town Clerk Williamson Absent: Town Administrator Halburnt Mayor Pinkham called the meeting to order at 8:00 a.m. 2011 BUDGET PRESENTATION The 2011 budget was prepared by Finance Officer McFarland. He stated the layout/format remains unchanged for 2011; most acronyms have been spelled out for clarity; and descriptions and details made easier to follow. The 2011 budget remains flat from 2010, special revenue fund subsidy decreases from 63% in 2009 to 59% in 2011, internal revenue funds continue to retain fund balances for capital purchases, and enterprise funds metabolize capital projects and debt service while maintaining healthy ratios as required by the bond companies. Due to Government Accounting Standards Board (GASB) laws, the Community Reinvestment Fund, Catastrophic Loss Fund, and Medical Insurance Fund are being eliminated in 2011 and will appear in the General Fund departments with revenues and expenditures for items such as capital projects, Estes Park Housing Authority loan, TABOR reserves and SOPA commitment noted. The Fire Pension fund has also been eliminated and transferred to the newly formed Fire District. The Building Authority Fund has had no activity for 2 years in a row and is not shown in the 2011 budget. The 2011 budget projects revenues up 1.4%, just ahead of expenditures with a 30% fund balance, a transfer of $800,000 to Community Reinvestment, elimination of 3.33% vendor fee, a 10% in Community Service grants, vehicle replacement charges decreased in 2011, and no salary increases. Employee benefits are projected to increase by 20% for medical, life insurance increase by 2%, employee assistance program up 1% and dental increase by 15%. Trustee Elrod questioned what is included in personnel services and requested staff include this information in the cover letter next year. He also questioned the inconsistency in the employee recognition numbers for each department and requested staff review to ensure the numbers were correct and applied consistently. Trustee Miller had requested the prior year’s budget numbers be included on the detail sheets for this year to help review the changes from year to year. Deputy Town Administrator Richardson stated it was not included because of the amount of staff time it would have required; however, new software upgrades in 2011 will make the request possible in the future. INTERNAL SERVICES FUNDS FLEET MAINTENANCE The fund maintains all equipment and charges the appropriate department for the services related to equipment owned and operated by the department. The rate for service will increase for the first time in twelve years from $45/hour to $55/hour, which is less than half the cost in the valley. The new rate would increase revenues in 2011 and the ending fund balance would be maintained. The department is staff with 2.5 FTEs Town Board Budget Study Session – October 1, 2010 – Page 2 and there is some concern for fatigue and safety. O&M increases in 2011 and includes shop equipment, IT services and education and training. The Board requested staff review the staffing level of the department for discussion during the 2012 budget process. Trustee Ericson stated the Town should consider an overhead expense for benefits instead of actual for each department. Trustee Koenig questioned if the money saved by not filling the Utility Director position immediately could be used to hire an additional seasonal employee for the fleet department. INFORMATION SYSTEMS TECHNOLOGY FUND The internal service fund manages Town wide information systems including technical support, maintenance, security, phone support, audio-visual support and GIS services Town-wide. Each department pays a fee based on the equipment the department utilizes (laptops and computers, servers, audio and video components, software, copiers and telephone components). O&M and expenses increase slightly in 2011 due to medical insurance and the purchase of upgraded audio-visual equipment for the Board room. A consultant would be hired in 2010 to determine the appropriate fund balance. The current staffing levels include 2.5 FTEs with the part-time personnel shared with utilities. The part-time position should be reevaluated because this position has become a full-time GIS position and conducts very little IT support. Mayor Pinkham called a break at 9:30 a.m. and reconvened the meeting at 9:45 a.m. VEHICLE REPLACEMENT The internal services fund maintains a fund balance for future vehicle purchases of $2.178 million at the end of 2010. The 2011 budget contains revenues of $298,526 and expenses of $464,000 to purchase vehicles for Streets, Parks, Light & Power, Special Events and Water. Departments pay an annual fee for vehicles utilized by their department until the replacement cost (25% more than purchase price) has been fully funded. Revenues in 2011 are down because vehicles have lasted longer, thereby decreasing the funding needed by individual departments. This in turn has provided funds to meet the 30% fund balance for the General Fund. The Fire District equipment is not included in the replacement fund because the District has established their own fund. Staff continues to evaluate the fund and make adjustments as necessary to maintain the appropriate fund balance. Auxiliary equipment for vehicles is paid for by the department using the equipment and not the VRF. Staff also continues to evaluate the use of alternative fuel vehicles, used vehicles or the purchase of used vehicles between departments. Trustee Blackhurst questioned if the fund is overfunded and could be used by departments for operations. Superintendent Mahany stated the replacement schedule is determined by use of the equipment and not just age. GENERAL FUND. Each fund was reviewed and requests for additional information is noted below: • Legislative – The budget increased 11% because of the approved salary increases for the newly elected Board in 2010 and increases in participation and premiums for health insurance. • Judicial – The 2011 budget increased by 7% because of health insurance increases for court personnel. • Executive – The proposed 2011 budget for personnel increased due to health insurance premiums. O&M increases in 2011 with the addition of upgrades to the website and a proposed citizen survey. • Elections – One mail ballot election has been budgeted for 2011 in the event the Town has a special election. Mayor Pro Tem Levine questioned the decrease in revenues from business licenses and liquor license. Town Clerk Williamson stated business licenses are down for 2010 due to a lack of construction and the loss of 5 liquor licenses in 2010. Town Board Budget Study Session – October 1, 2010 – Page 3 Trustee Elrod questioned the increase in catering/special circumstances line item. Town Clerk Williamson stated there has been an increase in the number of meetings and hosted meetings with Larimer County that continues to increase costs. Trustee Elrod stated he would like to see staff review the printing and mailing of the newsletter, and consider an online version of the newsletter to decrease costs. Trustee Blackhurst requested an update on where the Town is with respect to document imaging. Town Clerk Williamson stated document management software would cost the Town an estimated $20,000 to $30,000. The Board requested a proposal on cost and phasing be brought forward for possible addition to the 2011 budget. PIO Rusch reviewed the scientific citizen survey to assess opinions and concerns with town programs and services. This survey would set a benchmark and utilize the survey in the future to compare service levels. Board comments included: continue to explore the survey; the survey would only be useful if it contains actionable results; and current and proposed projects should be included. Mayor Pinkham called a break at 10:50 a.m. and reconvened the meeting at 11:05 a.m. • Finance – Finance personnel costs are increasing with the sixth and final year of reallocating personnel costs. O&M has remained unchanged in 2011. COMMUNITY DEVELOPMENT Revenues are estimated to remain at 2010 levels with the downturn in development. Prior to the downturn in the economy, the department collected half the cost of personnel and O&M. The department would be taking advantage of upgraded software to the HTE system to help with workflow. The Board questioned if the IT budget includes software updates to ensure each employee is operating the same version of Microsoft; the department should purchase International Code Council Plan Check software with the adoption of the 2009 I-Codes, and funds should be added to upgrade the phone system for the Administrative Assistance. BUILDINGS The 2011 proposed budget remains flat from 2010. Director Zurn stated that 3% of the value of the buildings should be budgeted annually and currently only a quarter of 1% is being budgeted. Discussion followed: examples of items that should be completed were reviewed; a list of maintenance items that are being deferred should be created; a building maintenance fund should be considered such as the vehicle replacement fund; more information is needed on the real estate owned by the Town (comprehensive list); should the Town be involved in employee housing; and need to be proactive rather than reactive to building maintenance. Personnel costs include a portion of the Public Works Director and Project Manager with 93% of the budget in O&M costs. Update headings and the 2010 and 2011 building rent numbers. EMPLOYEE BENEFITS This fund contains the homeownership program, tenure awards and employee gatherings. With the dissolving of the Medical Insurance Fund, those revenues and costs have been transferred to this account. There are currently 4 employees participating in the homeowner program with one additional participant anticipated for 2011. The employee gatherings have been cut to include only a holiday party. Trustee Elrod questioned if Post Employment Insurance is listed as income and if it is an auditing issue. Discussion followed on the benefits of the employee gatherings. Deputy Town Administrator Richardson stated the item has been discussed and it was determined the employees would prefer a one-time check in lieu of the gatherings. The next Budget Study Session is scheduled October 8th, 8:00 a.m. – 12:00 p.m. There being no further business, Mayor Pinkham adjourned the meeting at 12:10 p.m. Jackie Williamson, Town Clerk