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HomeMy WebLinkAboutTB Budget Study Session 2011-10-21 Town of Estes Park, Larimer County, Colorado, October 21, 2011 Minutes of a Study Session 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 21st day of October, 2011. Board: Mayor Pinkham, Trustees Blackhurst, Elrod, Ericson, Koenig, Levine and Miller Attending: Mayor Pinkham, Trustees Blackhurst, Elrod, Koenig and Miller Also Attending: Town Administrator Halburnt, Deputy Town Administrator Richardson, Directors Bergsten and Kilsdonk, Managers Fortini, Mitchell and Salerno, Foreman Lindeman, Finance Officer McFarland, Town Clerk Williamson Absent: Mayor Pro Tem Levine and Trustee Ericson Mayor Pinkham called the meeting to order at 8:00 a.m. 2012 BUDGET PRESENTATION Each fund was reviewed and requests for additional information are noted below: COMMUNITY SERVICES Director Kilsdonk provided an overview of the Special Revenue Funds of the Community Services department that encompasses the Visitor Services, Facilities Sales and Marketing, Senior Center, Fairgrounds/Events, Museum and Conference Center. The department utilizes the services of approximately 340 volunteers. Funds that have been discontinues include the Advertising, Visitor Guide and Local Marketing District (LMD). Significant items for 2012 include fund balances projected at 4%, a $20,000 dining room upgrade funded by Senior Center Inc., increased costs of $18,500 to support the move from small to mid-size rodeo, a $10,000 capital project to be determined at the Museum funded by the Friends of the Museum, and a reduction in transfers from the General fund of approximately $70,000. • Visitor Center – Teri Salerno/Visitor Services Manager stated the center has had 346,000 visitors to date versus 325,000 in 2010, which has required the Town to utilize the services of the Ambassador (75 volunteer) not only during the weekends at this time of year but are needing their services during the week due to the traffic in the center. Personnel and revenue would remain static in 2012 Town Board Budget Study Session – October 21, 2011 – Page 2 with total expenses increasing slightly. The cost of training for the Ambassadors and staff for the transportation/shuttle system has been moved to the Transportation Fund. • Facilities Sales & Marketing – The conference shuttle buses have been moved to the Transportation fund. Personnel cost increase slightly in 2012 and O&M decreases with total expenses remaining flat. The LMD and Town staff work to compliment the efforts of both entities. Manager Pickering meets with LMD staff weekly. Trustee Blackhurst requested staff provide information on the number of conferences estimated for 2012. • Local Marketing District – This fund would be discontinued in 2012 because the Town employees working for the LMD will become LMD employees as of January 1st. There are no funds budgeted for the LMD. • Senior Center – O&M increases in 2012 with increases to janitorial services, natural gas costs and a new computer. Revenues increase in 2012 due to an increase interest in programs and the associated fees collected. Senior Center Inc. plans to complete a $20,000 remodel to the dining facility along with additional funding to total over $32,000 for services. The new dining room will be named the 4th Street Café. The meal subsidy from the Town to the food service contractor in 2012 would decrease by approximately $4,160 with a meal price increase of $.50 per meal. • Special Events – The revenues are budgeted at $601,451 and expenditures of $1.139 million in 2012. The division plans and executes events throughout town with 110 volunteers. The rodeo budget would increase by $18,500 if the rodeo remains in the medium size category with associated revenues of approximately $17,484 from tickets, sales and sponsorship fees. Program production expense have been reduced by $11,300 for the Wool Market program printing, which is now on-request printing only through the internet. The rodeo program is also printed through a partnership with the Trail Gazette. Total expenses for 2012 remain flat from 2011 with a slight decrease in personnel costs due to changes in personnel staffing and O&M remains flat. Revenues are broken into charges for services and miscellaneous that contains sponsorships, donations, building rent, program sales, etc. Trustee Blackhurst stated concern with the increase costs associated with the medium size rodeo category and questioned the pros and cons of moving the rodeo to the medium category. He would like to have a discussion on the issue before endorsing the change and approving the additional expenses related. Foreman Lindeman stated the additional revenue would come from not only ticket sales but from larger sponsorships that have already contacted staff, which would help to relieve the pressure on our local business supporters. She reiterated the staff and the rodeo committee want to maintain the rodeo as a Town Board Budget Study Session – October 21, 2011 – Page 3 small town rodeo. Trustee Miller agreed and stated questions need to be answered as to how the rodeo became a medium size rodeo prior to allocating additional funding. Trustee Koenig stated there would be an increase in the number of visitors that attend the rodeo and follow the higher caliber cowboys and stock. This would also increase the dollars spent at town businesses. Mayor Pinkham requested the Rodeo committee provide a business plan for the move to a medium size rodeo to demonstrate the benefits to the community. Trustee Elrod would like to be ensured the purse size would not increase in the future without the Town Board’s knowledge. The Board requested item 29-18 labeled Rodeo be further broken out to determine the items included. Trustee Elrod stated the Town expends $2 for every $1 in revenue realized. He stated the Board has requested financial information in the past such as a profit and loss statement to determine the benefit of each event. Town Administrator Halburnt stated staff has completed the information and delivered it to Administration, which will be forwarded to the Board. Trustee Elrod requested the Finance department provide a revenue and expense overview for the special events with the support of the Special Event staff. Trustee Blackhurst questioned if the Town builds new stalls would there be an increase in revenue for the rental of the stalls. Foreman Lindeman stated there would be increases for the stalls rented as long as there is not a standing contract for specific events; however, the fees could be increased in the future. Mayor Pinkham presented the Board with a letter from Dr. Durward requesting an increase in funding for the Scotsfest from $35,000 to $45,000 for accommodations at the YMCA. Town Administrator Halburnt stated the Town’s current funding for the event is approximately $80,000 including in-kind services. The LMD also provides an additional $50,000 in marketing funds for the event. Trustee Blackhurst questioned why the Town is funding accommodations outside Town limits. Trustee Miller questioned the funding line items for a concert, other contracted services, decrease funding for Performance Park and Riverside Plaza/Bond Park sing-alongs, and funding cut for the Heritage Festival. He stated concern with the decreases and questioned if the savings were to support the increased cost associated with the rodeo. Staff would provide more information on the funding for the events; however, Foreman Lindeman stated the concert funding is to help fully utilize the fairground property and bring more events to the property. Staff confirmed the current policy to fund new events would be discontinued, and require event coordinators to request funding through community service grants. Town Board Budget Study Session – October 21, 2011 – Page 4 Mayor Pinkham called a break at 9:20 a.m. and reconvened at 9:30 p.m. • Museum – The museum operates with 55 volunteers. The Friends of the Museum will provide $10,000 for a capital project at the Museum with a project to be determined in 2012. Revenues decrease in 2012 with no grant funding anticipated, which corresponds to a decrease in personnel and O&M costs. Staff has added a line item for acquisitions in 2012 because the museum has operated by donations and the Friends of the Museum in the past. The lighting in the building was redone with occupancy sensors for the out buildings and other lighting in the museum to realize a reduction in utility costs. No funds have been budgeted for the Stanley Museum collection because it is not anticipated a cost would be incurred if the items are to remain in Estes Park. • Conference Center – The revenues remain at $24,000 for concessionaire fees that offset the ground lease payment of $24,000. Expenses are flat for 2012 and consist of insurance premiums, rentals, repair and maintenance of the facility and utility costs. Trustee Blackhurst requested an energy assessment by PRPA be completed. The budget should be updated from Holiday Inn to the Rocky Mountain Park Inn under miscellaneous revenue. UTILITIES • Light & Power – The utility would have a beginning fund balance of $6.15 million with an ending fund balance in 2012 of $5.73 million. The Glen Haven upgrade project would be completed in 2012; the first phase of the Allenspark circuit upgrade with tree/wildlife cable; replacement of the roof of the Robert L. Dekker Light and Power Service Center; addition of GPS hardware and software for system mapping and modeling; and LED street lighting to be installed from Mall Road to the Hwy 36 and Hwy 34 intersections. Trustee Elrod requested information related to how the percentages for taxes are determined, what the other 28 municipally owned electric systems charge per kilowatt, what increase were projected, what percentage transfer and how is it determined, and what does the town do to determine the percentage of transfer. Deputy Town Administrator Richardson stated he reported to the Board during a study session earlier in the year that no historical data could be found as to when and how the transfers where determined for items such as the PILOT. The staff continues to review documents to try and determine the reasoning for the 2.5% PILOT and why it was created. The 3% franchise fee is consistent with the fees paid to the Town by other utilities such as the telephone and cable companies. He stated the kilowatt per hour rate study is in process. Trustee Elrod stated appreciation for staff’s efforts; however, it should be conveyed to the public why the fees are being charged. He questioned whether or not the rate increases should be supporting the other projects or departments of the Town. Town Town Board Budget Study Session – October 21, 2011 – Page 5 Administrator Halburnt stated the transfer from L&P is a return on investment, the utility is on public property which pays not property tax and the transfer provides value added services to the public that the Town could not otherwise provide. Trustee Elrod would request the Board have a business discussion on what the fees should be rather than a random fee. Trustee Miller suggested the item be discussed at a future study session once staff has prepared the information. Revenues are budgeted to increase in 2012 based on the rate increases approved in 2011 and the power rider increase that is a direct cost from PRPA for the cost of energy. Additional increases in O&M are due to transfers which increase as a percentage of revenues, an increase in IT services and higher bond payments. Distribution portion of the budget increases slightly due to personnel costs related to insurance. Customer accounts contain personnel from both Finance and Meter department. Mayor Pinkham called a break at 10:40 a.m. and reconvened at 10:50 a.m. • Water – The fund balance at the end of 2012 would be $1.321 million meeting the required 90 days O&M of $650,000 required for the bond ratio. Projects for next year include the acquisition of additional Glacier Creek water rights to meet future demand with full buildout in 2030; replacement of the Virginia Drive waterline in conjunction with Estes Park Sanitation and Public Works; automation software upgrades required for compatibility with Windows 7; process analyzer replacements; additional GPS hardware and software for system mapping and modeling; and demolition of the decommissioned Fall River Water Treatment plant. Revenues increase with the rate increases approved by the Board in 2011. Expenses decrease with a reduction in capital expense and the completion of the upgrades to the Marys Lake Water Treatment plant. O&M decreases because of the efficiencies realized at the remodeled treatment plant and a reduction in chemical costs. A personnel costs increase slightly due to an increase in benefits with one Class “A” operator on call 24/7. Transfer and debt service decreases in 2012 with the full payment of the 1997 bond in 2011. The annual depreciation for the utility is $589,000 annually and the utility has not kept up with the replacement of the assets. The utility has approximately $30 to $40 million in assets. Trustee Blackhurst questioned what lines would be replaced in 2012. Director Bergsten stated there is no current plan and staff would prepare a plan for the Board’s review in 2012. MEDICAL INSURANCE FUND Finance Officer McFarland stated the Medical Insurance Fund has been absorbed into the Employee Benefit account. Town Administrator Halburnt stated the Town has received the renewal rates for the medical insurance and has been presented with the possibility of a self-insured plan with some plan changes that would provide the Town Town Board Budget Study Session – October 21, 2011 – Page 6 with significant savings. If the Town moves forward with self-insurance the Medical Insurance Fund would have to be reestablished. The Insurance Committee would meet to discuss the options presented by the benefit consultant and make a recommendation to Administration. FIRE PENSION FUND This fund was closed with the creation of the Fire District in 2009 and will cycle off the books in 2013. POLICE PENSION FUND This fund would be closed in 2011 with the passing of the last surviving recipient this year. A note should be added to the fund stating the reason for the closure of the account. THEATER FUND This fiduciary fund is to be used by the Supporters of the Performing Arts (SOPA) to raise funds to build a performing arts theater. The projected expenses for 2012 have been reduced from $21,000 in 2011 to $1,000 based on historical use of the fund. Town Administrator Halburnt stated SOPA would come forward at the December meeting to update the Board on their financial status. Trustee Blackhurst would recommend staff begin developing a plan on how the funds would be distributed if the theater does not appear feasible. Town Administrator Halburnt stated staff has discussed developing a process similar to the community service grants with criteria reviewed by the Board. EMPLOYEE COMPENSATION Employee compensation includes 2% bonus for 2011 with a 3% raise for 2012 that would be added to the salary. MISCELLANEOUS Trustee Koenig requested a list of budget topics that need further discussion. There being no further business, Mayor Pinkham adjourned the meeting at 11:40 a.m. Jackie Williamson, Town Clerk