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HomeMy WebLinkAboutTB Budget Study Session 2011-10-07 Town of Estes Park, Larimer County, Colorado, October 7, 2011 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 7th day of October, 2011. Board: Mayor Pinkham, Trustees Blackhurst, Elrod, Ericson, Koenig, Levine and Miller Attending: All Also Attending: Town Administrator Halburnt, Deputy Town Administrator Richardson, Finance Officer McFarland, Directors Bergsten, Chilcott and Zurn, Superintendent Mahany, and Town Clerk Williamson Absent: None Mayor Pinkham called the meeting to order at 8:00 a.m. 2011 BUDGET PRESENTATION The 2012 budget was prepared and presented in a form unchanged from 2011 with minor changes, including the number or funds reduced, clear descriptions (limited acronyms), and addition of comparative columns in the detail section for each department. The General Fund balance is projected to maintain a 30% balance in 2012, with the Town Board providing direction to lower the fund balance to 25% for projects such as street improvements. The Community Reinvestment Fund transfer would be reduced to $750,000 in 2012 in an effort to fund street improvements an additional $50,000. 2012 sales tax projections are estimated at $7.2 million, a 2.9% increase. The Local Marketing District (LMD) funding would be discontinued in 2012 as the district moves out of the Visitor Center due to space constraints; therefore, the revenues associated with rental space would be discontinued. The Town employees working for the LMD would become LMD employees as of January 1, 2012 with the LMD maintaining and paying for Town benefits. The Internal Revenue Funds (Fleet, IT, Vehicle Replacement) continue to maintain established fund balances below 5% and utilize fund balances for capital projects. The Enterprise Funds are completing capital projects while maintaining debt service ratios. The Police Pension Fund would be eliminated at the end of 2011 with the sole recipient passing away. Per the auditors, the funds transferred to the Fire District and the LMD have been moved from Transfers to the Community Services Grant Fund. A 2% one-time bonus has been included in the 2011 expenditures and a 3% raise has been included in 2012 for employees. Town Board Budget Study Session – October 7, 2011 – Page 2 The Board requested staff provide updated sheets if the numbers presented are different than the numbers provided to the Board previously. Also noted the word cigarette is not spelled correctly on the General Fund sheet. 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. There would be an increase in personnel in 2012 from a part-time seasonal position to a full-time position. 2012 would be the third year of providing services to the Estes Valley Fire Protection District, which is anticipated to grow in the coming year with additional apparatus added to the fleet. Revenues and personnel expenses increase in 2012 with the addition of a .5 FTE and O&M decreases. The current charge for service is approximately half the service fee charged in the valley. INFORMATION SYSTEMS TECHNOLOGY FUND The Internal Service Fund manages Town wide information systems including technical support, network hardware management, maintenance, security, phone communication management, audio-visual support, software licensing, external connectivity, database management, maintenance contracts, user training 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). In 2012, a new fiber optic contract would be negotiated with the School District providing a new revenue source, and a new lease agreement with Level3 Fiber Optic would be negotiated because it has expired. Personnel expenses increase due only to insurance benefit increases and O&M decreases in 2012. Capital expenditures include the third year of a five year plan to replace and upgrade Town Board AV equipment. In 2011, an Estes Park High School student internship has been used in IT to help with day-to-day repairs to free up IT staff to work on other issues. Staff would look favorably in additional internships. Mayor Pro Tem Levine voiced concern with the decrease in training budget for the department and would encourage additional funds be budgeted. Director Bergsten stated funds have been budgeted in the utility accounts for GIS training. Trustee Blackhurst requested staff analysis IT personnel levels for review during the 2013 budget. Trustee Miller requested staff review providing email accounts to the Town Board for consideration during the 2013 budget. The Mayor requested staff review the option of moving from paper Board packet to electronic media base packets for 2013. VEHICLE REPLACEMENT The Internal Services Fund maintains a fund balance for future vehicle purchases of $2.183 million at the end of 2011. The 2012 budget contains revenues of $265,470, a Town Board Budget Study Session – October 7, 2011 – Page 3 reduction from 2011 and expenses of $476,500 to purchase vehicles for Parks, Light & Power, Police, Special Events and Water. Finance Office McFarland reviewed the fund stating the fund was initiated in 2002; all vehicles still existing prior to 2002 are not fully funded; the fund includes interest income that has decreased over that last few years; fire apparatus replacement funds have been maintained; and a number of the vehicles are lasting longer than the vehicle life expectancy. The fund has a balance that exceeds the funds required; therefore, staff has decreased the cost of charges to each department in 2012 in an effort to spend down fund balance. This spend down is temporary and would most likely increase to established replacement costs in 2013. Staff continues to evaluate the fund and make adjustments as necessary to maintain the appropriate fund balance. Staff has reviewed the option of borrowing funds from this account to help fund projects, and after a review, it would not be recommended. Staff continues to analysis vehicle usage when replacing vehicles to determine appropriateness of vehicle type, and whether or not alternative fuel vehicles could be purchased. Many of the alternative fuel vehicles continue to have issues for larger equipment such as a bucket truck, as well as using alternative fuel source vehicles at altitude. Auxiliary equipment for vehicles is paid for by the department using the equipment and not the Vehicle Replacement Fund. Mayor Pinkham called a break at 9:25 a.m. and reconvened the meeting at 9:35 a.m. GENERAL FUND. Each fund was reviewed and requests for additional information is noted below: • Legislative – The budget contains increases for codification cost because of the number of changes to the codes and the hosting of the codes online. O&M decreases with a reduction in the Contingency Fund. Personnel cost increases are related to health insurance costs and the number of the Board taking advantage of the Town’s benefits. Trustee Elrod questioned whether or not the Town should receive a reduction in CAST membership fees because of the staff time provided to CAST in collecting and reporting of financial data for all members. • Judicial – The 2012 budget includes a 5% increase in staff salary as required by Ordinance. O&M decreases with the removal of translator fees. • Executive – The 2012 budget increases with the formation of the Administrative Services Department in 2011 which includes the Town Clerk’s Office and Human Resources and corresponds to a decrease in the Finance Department. The 2012 budget includes O&M expenses to complete the new Administrative Services offices with filing systems, additional furniture and miscellaneous items. The budget contains a department assessment for 2012 with the department to be identified in 2012. Additional revenue for 2012 includes HR fees for services rendered to other entities. Town Board Budget Study Session – October 7, 2011 – Page 4 • Elections – One mail ballot election has been budgeted for 2012 for the Municipal Election in April for three Trustee positions (Ericson, Levine & Miller) and the Mayor. Mayor Pro Tem Levine is term limited. Trustee Elrod questioned how duplicate requests for open records are handle, and how requests for Trustee emails are handled related to charges for copies and time. Town Clerk Williamson stated the second request would not be charged the staff time or copy fee if the file was maintained electronically. Trustee email requests are not handled by staff. The Town’s open records policy only addresses Town staff time and resources, and therefore, there are no costs associated with requests for Town Board emails. Trustee Blackhurst asked where the Town stands on document imaging. Staff would review the placement of funds in the budget to begin the process in 2012. Town Administrator Halburnt stated without additional revenue it has been difficult to justify the addition of staff and equipment/software to address the issue. Town Clerk Williamson stated the Clerk’s Office began maintaining all files electronically with regard to packet material in 2010 and only files permanent documents in the records room once scanned electronically. The main issue is addressing the 90 plus years of documents currently stored as paper. Trustee Koenig stated the Town should contact the Library and the Library foundation to see if the Town could jointly use their digitizing equipment. The Board questioned if grants would be available to help fund the process of digitizing. Deputy Town Administrator Richardson stated the grants available are for historical documents and not available for municipalities. • Finance – Finance personnel costs are decreasing with the reallocation of personnel costs to the Executive Fund with HR personnel moving to the newly formed Administrative Services. O&M decreases with HR expenses moving to the Executive Fund. Trustee Elrod questioned if the Town should be providing financial services for the other taxing entities in town and potentially taking business away from local businesses. Mayor Pinkham called a break at 11:00 a.m. and reconvened the meeting at 11:10 a.m. COMMUNITY DEVELOPMENT Revenues are estimated to increase slightly in 2012 with a slight upswing in development. Personnel cost have decreased with the elimination of a Planner II position not filed with the promotion of Director Chilcott. O&M decreases with a reallocation of legal expenses between the Community Development and Building divisions. The 2012 budget includes an increase for training, new filing/storage systems and a GIS consultant for zoning maps and services related to the new SunGard software. Trustee Elrod questioned if the items from the department assessment had been addressed. Director Chilcott stated staff continues to address items in the report such as increasing training. A status report would be brought forward to the Community Development/Community Services Committee. Town Board Budget Study Session – October 7, 2011 – Page 5 Protective Inspection (Building) has budgeted flat revenue for 2012, slight reduction in personnel, and a slight increase in O&M. The increase expenses include training, legal fees and new filing/storage systems. The vehicle replacement cost was reduced by 46.7% in 2012. BUILDINGS The 2012 budget contains increases in O&M including additional funds for janitorial services for the municipal building and public restrooms due to complaints, repair and replacement of structural support columns for the Visitor Center lobby, replacement of water heater at the Convention Center, staining the exterior of the Visitor Center and system wide facility assessment to provide the Town with a list of capital expenditure items needed for the next 5 to 10 years for all municipally owned buildings. There would be a decrease in revenue with the LMD moving out of the Visitor Center. The new Police lobby remodel would be funded under Community Reinvestment Fund. Trustee Miller questioned if an on-demand system would be appropriate for the Convention Center. 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 2 employees participating in the homeowner program with one additional participant anticipated for 2012. Expenses decrease with a reduction in the number of post employee insurance benefits. Trustee Elrod stated concern that the benefit consultant never supplied the Board with a final written report on alternative medical benefits after the last discussion. He questioned again the holiday party versus a bonus check for the employees. The post employment insurance should be update to state 2 current in 2012 rather than 3. The next Budget Study Session is scheduled October 14th, 8:00 a.m. – 12:00 p.m. There being no further business, Mayor Pinkham adjourned the meeting at 11:50 a.m. Jackie Williamson, Town Clerk