HomeMy WebLinkAboutTB Budget Study Session 2012-10-19 Town of Estes Park, Larimer County, Colorado, October 19, 2012
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 19th day
of October, 2012.
Board: Mayor Pinkham, Trustees Blackhurst, Elrod, Ericson,
Koenig, Norris and Phipps
Attending: All
Also Attending: Town Administrator Lancaster, Assistant Town Administrator
Richardson, Directors Bergsten, Community Services
Coordinator Winslow, Managers Fortini, Mitchell and
Salerno, Finance Officer McFarland, Town Clerk Williamson
Absent: None
Mayor Pinkham called the meeting to order at 8:00 a.m.
2013 BUDGET PRESENTATION
Each fund was reviewed and requests for additional information are noted below:
COMMUNITY SERVICES
Community Services Coordinator Winslow provided an overview of the Special
Revenue Funds of the Community Services department that encompasses the Visitor
Services, Transportation, Senior Center, Fairgrounds/Events, and Museum. The
department utilizes the services of approximately 340 volunteers. The Sales and
Marketing and Conference Center funds have been transferred to the General fund
within the Executive Fund in 2013. Fund balance is projected to increase from 3% to
5% with a net fund balance of $288,172, an increase in General Fund transfer of $1.9
million, the addition of a Transportation Coordinator in the Visitor Center budget, and an
assistant to the Community Services Coordinator.
Mayor Pro Tem Blackhurst questioned the need for a shuttle coordinator for a program
that operates only 4 months out the year. He also voiced concern the program continue
to experience mission creep with the addition of an employee and ongoing committees.
Coordinator Winslow stated the position would be working on transportation related
issues 75% of the year and would be available to work on projects for the other
divisions in Community Services the other 25%. Trustee Norris requested a review of
the job description and an understanding of how the other divisions would utilize the
Town Board Budget Study Session – October 19, 2012 – Page 2
position. The Board requested a summary outlining the number of employees in
each department for 2012 and 2013 with proposed position for the budget
hearing.
• Visitor Center – Revenue is projected down slightly from 2013 and expenses
increase with the addition of the transportation budget and an additional FTE.
The budget includes funding for new signage in the parking lot to help direct
visitors.
• Senior Center – The 2013 budget increase the part-time Senior Center
Coordinator to a full-time position, increase funding for food service contract to
cover meals provided to the customers on a sliding scale, reduction in revenues
due to a decrease in funding by United Way, and a new Senior Expo planned
and being coordinated with the Hospital. The Senior Center in conjunction with
the Museum is in the process of reviewing proposals for a master plan; therefore,
no new construction would be scheduled until the process is complete.
• Special Events – The Town continues to work on the MOU with Western
Heritage to address expenses and revenues as it relates to the Rooftop Rodeo.
This change would have a minimal effect on the division’s bottom line, for
example Western Heritage would take over sponsorships and in turn pay for
expenses related to the rodeo. Revenues are anticipated to increase in 2013
with the completion of the new stall barns. The budget contains the repair of the
vinyl fence, lease for a water truck for 45 days during the summer and the
addition of one FTE. The Board requested staff review the possibility of
transferring funds to Community Services for the leasing of the water truck
from the Vehicle Replacement Fund. Trustee Ericson requested a list of
the 2013 events to provide a better understanding of the Town’s investment
in community events. Trustee Elrod stated other departments support
events; therefore a list including all Town support for events would provide
additional details on services provided and true costs.
Mayor Pinkham stated the Town has provided financial support to the
Irish/Scottish Festival for a number of years at $35,000 and would request the
Board consider increasing the funding to $50,000 to help defray increasing costs
and sustainability of the event. The parade cost $140,000 to produce and no
revenue is raised from this event; however, the Town benefits from the parade by
bringing people downtown. Discussion was heard: Trustee Elrod stated the
event is not sponsored by the Town and the funds are spent outside Town limits
to house the bands at the YMCA; the event is critical to the Town; additional
information would be required to assess the need for additional Town funding;
the Town should conduct a cost analysis of this event and all other events to
determine the benefit; and additional information would be needed on the current
financial status of the event before a commitment could be made by the Town.
Town Board Budget Study Session – October 19, 2012 – Page 3
Administrator Lancaster suggested the item be discussed at an upcoming study
session and have Dr. Durward present to provide more detail on the event such
as financial information and future plans for the event. He commented P&L
reports would provide detail on the benefit of each event to the Town; however,
some events are beneficial to the community without providing positive revenue
for the Special Event division. Staff continues to work with Visit Estes Park
(LMD) to develop an event analysis report to understand each events impact to
the town as a whole.
• Museum – The division would be producing a new brochure to be used for the
next two years, hire a temporary Collections Assistant to complete the museum
inventory, and continue work on the Master Plan in conjunction with the Senior
Center. Revenues and Personnel costs have been budgeted flat and a slight
increase in overall O&M costs in 2013. Staff has proposed a moratorium on
accepting additional items for the collection until the inventory can be completed.
A discussion ensued on the needs of the division including staffing. Staff
assessed and cancelled an even and has turned away shows because of a lack
of staffing. Other needs include additional computer memory for the database.
Staff would be reviewing strategies for owning a server in 2014. A staffing
analysis was completed and demonstrated the need for an additional FTE. After
further discussion, the Board requested an additional FTE be added to the
Museum for 2013.
• Transportation – The Shuttle Committee met throughout 2012 to study and make
recommendations to improve the free shuttle service. The Committee has
recommended the following: additional $90,000 for 10 additional days of service
(total of 83 days) to start the service earlier in the year, 1 additional hour in the
evening for the brown route, addition of a downtown only trolley route and
addition of a fulltime Shuttle Coordinator. Brian Wells/Seasonal Shuttle
Coordinator stated the addition of the trolley would alleviate the delays
experienced by the red route in 2012 by removing some stops downtown thereby
removing shuttle traffic downtown. This change would also allow the addition of
other beneficial stops to the red route. It is anticipated the Town would purchase
a used trolley utilizing the Vehicle Replacement Fund.
The Board discussed other transportation items including the addition of
automatic people counters on the shuttles; the need to review the cost benefits of
the counters before moving forward with the purchase and installation on the
leased shuttles; adding a program such as a punch card to track local use; the
addition of bike racks; and other avenues for generating revenue, i.e. advertising
on the buses or on benches at bus stops.
Mayor Pro Tem Blackhurst stated the proposed 2013 budget includes a 29%
increase to the shuttle system with a 3% increase in ridership. He commented
on the increased funding does not appear to be warranted, and the Town has a
Town Board Budget Study Session – October 19, 2012 – Page 4
number of other projects it needs to fund. Assistant Town Administrator
Richardson stated the service is still growing and requires upfront funding. The
addition of the trolley rather than an additional shuttle bus is to create a unique
experience downtown.
Mayor Pinkham called a break at 9:50 a.m. and reconvened at 10:05 a.m.
UTILITIES
• Light & Power – With the elimination of the Catastrophic Fund in 2012 the funds
were distributed from the General Fund to the Light and Power and Water funds
in 2012. The additional funds have allowed the department to add a capital
project for 2013. Changes for 2013 include the continuation of the Allenspark
circuit upgrade with tree cable, addition of an administrative personnel shared
with Water to conduct inventory, new customer processing and budgeting,
continue the development of the distribution computer model, purchase of a new
electric meter test bench, replacement of street lights on Highway 7 with LED
lights with a seven year payback, conduct a rate study and implement 900 MHz
radios. Revenues are projected to increase in 2013 with the increase in the
purchase power rider and the addition of the 1.4% rate increase approved in
2011. Source of supply has increased as PRPA continues to improve
transmission, plant improvements and other future capital projects. The PILOT
calculation decreased in 2013 as an industry standardized calculation was used.
Mayor Pro Tem Blackhurst questioned if the bond rate for the $6.18 million at
3.875% should be reviewed. Finance Officer McFarland would review the
current rates to determine if the bond should be refinanced.
• Water – As with Light and Power, the department’s fund balance increased with
funds redistributed from the Catastrophic Loss Fund, which corresponds to an
increase in capital expenditures in 2013. Projects include the continued
development of the distribution computer model, replacement of the Big Horn
Drive waterline (from Elkhorn to the bypass), upgrades of the automation
software, replace process analyzers, automated meter reading installation, water
system master plan, addition of administrative personnel shared with L&P, water
rate study and the addition of 800 MHz radios. Revenues are projected to
increase with the last year of the 5.6% increase approved in 2011. Personnel
cost increase with the addition of personnel and proposed restructuring.
The budget includes funding for additional tap fee to increase the capacity of the
Marys Lake Water Treatment Plant. The plant has the capacity to produce 4
mgd; however it is limited to the amount of discharge by the UTSD tap. The
department is setting aside funding to offset future costs of taps to increase the
Town Board Budget Study Session – October 19, 2012 – Page 5
capacity as needed. The Town entered into an MOU with UTSD during the
remodel of the plant to purchase half the capacity (2 mgd) and allow the Town to
purchase additional taps as needed to increase the capacity. The current cost of
the taps for full capacity (4 mgd) is $750,000.
Mayor Pro Tem Blackhurst stated his understanding is UTSD would increase
rates by 8.5% for the next 5 years and he would question the sewer costs
budgeted.
Trustee Elrod questioned the staffing allocations to the utility funds, stating they
are not intuitive. Administrator Lancaster stated staff would review the
allocations and the rationale and bring a report forward to the Public Safety,
Utilities and Public Works (PUP) Committee for further discussion.
THEATER FUND
Finance Officer McFarland stated the funds in the account were anticipated to be
dispersed in 2012 but it will not happen until 2013.
MISCELLANEOUS
Mayor Pro Tem Blackhurst commented on the significant technology deficiency at the
Conference Center, and stated the facility is not competitive with other nearby facilities.
Mayor Pinkham called a break at 11:30 a.m. and reconvened at 11:35 a.m.
Finance Officer McFarland provided a review of the 2012 CRF projects with proposed
costs and a $1.4 million fund balance. The Museum and Senior Center Master Plan
was moved to 2013 with the knowledge the item would not be completed in 2012. He
requested some direction from the Board on what items should be included in the 2013
CRF. He stated the Elm Road mitigation is mandated to be completed and the costs
are a place holder as the Town does not know what the final mitigation plan will
encompass. Other projects as they relate to liability or matching funds include the
bleachers, Birch Ruins fencing, and the parking structure. All other projects identified
are discretionary including Performance Park overlay, transportation hub irrigation,
PW/Utility Office remodel, Museum Master Plan, and street improvement program
(STIP).
Board discussion has been summarized: Trustee Ericson stated the STIP should be
increased to $900,000 by reducing the General Fund balance to 25%; Trustee Koenig
questioned if the Town should fund improvements to the conference center and would
like the Board to have further discussion on whether or not to keep the center; Mayor
Pro Tem Blackhurst and Assistant Town Administrator Richardson stated the Rocky
Mountain Park Inn has expressed they are not interested in purchasing the center; and
Town Board Budget Study Session – October 19, 2012 – Page 6
Administrator Lancaster stated staff would come back to the Board with a report on
options for the center.
Director Zurn stated the Town has submitted an RFP for consulting services to develop
a mitigation plan to be approved by the State to address the leachate at the landfill. The
Town would request the plan be implemented over 5 years; however, the State may
require the Town complete the plan within a year by removing all drainage from the site
and incurring the cost in a single budget year. There is an outside chance this is a
groundwater issue and not a surface water issue. Administrator Lancaster stated there
is some indication there might be other issues contaminating the site.
The civil site work for the improvements at the Fairgrounds has been issued and would
be coming forward for consideration in November. The stall barn and the MPEC bid
packages would be issued in November with final numbers coming forward in
December for the Board’s consideration. Director Zurn advised the Board in order to
complete the stall barn prior to the 2013 season a decision would need to be made in
December.
Finance Officer McFarland stated the budget approved for 2013 would most likely
change during the year as the Town gains additional information on the cost of projects.
A timetable would be developed when financing options are identified, including the
option of selling Town owned property.
There being no further business, Mayor Pinkham adjourned the meeting at 12:00 p.m.
Jackie Williamson, Town Clerk