Loading...
HomeMy WebLinkAboutTB Budget Study Session 2013-11-01 Town of Estes Park, Larimer County, Colorado, November 1, 2013 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 November, 2013. Board: Mayor Pinkham, Trustees Blackhurst, Elrod, Ericson, Koenig, Norris and Phipps Attending: Mayor Pinkham, Trustees Blackhurst, Elrod, Koenig, Norris and Phipps Also Attending: Town Administrator Lancaster, Finance Officer McFarland, Chief Kufeld, Directors Chilcott, Winslow and Zurn, and Town Clerk Williamson Absent: Trustee Ericson Mayor Pinkham called the meeting to order at 8:00 a.m. COMMUNITY SERVICES FUNDING REQUESTS (General Fund) Trustees Ericson and Koenig and Town Clerk Williamson met to review grant applications. The grant applications were reviewed by the committee with the exception of those programs that are funded annually such as the Estes Park Housing Authority and the Food Tax Refund program. The committee reviewed previous funding for each request and looked at the community support provided by each entity. The programs not funded included a new program Dance 2 Live from the metro area, Touchstone Health Partners and the Gun Clubs request for an onsite port-a-john. The Committee would like to see the PD fund this request and encourage the Gun Club to work on a long term solution to the restroom facility needed. The Committee would review the application submitted by Touchstone Health Partners again as their application did not outline they had changed their name from Larimer County Mental Heatlh. The Committee declined funding as it was understood that Larimer County was already supplying the service through Salud locally. Mayor Pro Tem Blackhurst requested staff investigate the possibility of grant funds to upgrade the shooting range facility through an interagency application because of the number of law enforcement entities utilizing the facility. ORGANIZATION 2014 BUDGET Arts & Education: Art Center of Estes Park, $500 Cultural Arts Council, $500 Estes Park Repertoire Theater Company, $500 Estes Valley Historical Preservation, $1,000 Estes Valley Library Foundation, $2,000 Estes Park Village Band, $500 Oratorio Society of Estes Park, $500 $5,500 Transportation - Special Transit, $28,500 $28,500 Youth: Estes Park Learning Place, $3,000 Estes Valley Investment in Childhood Success, $28,500 Partners of Estes Park, $4,500 $33,500 Food Tax Refund $17,500 Human Services: Audio Information Network of CO, $250 Crossroads, $20,000 Estes Park Nonprofit Resource Center, $5,000 E.P. Salud, $20,000 Estes Valley Victim Advocates, $5,000 $50,250 Sister Cities Int’l. Conf. Student Participation, $2,000 $2,000 Town Board Budget Study Session – November 1, 2013 – Page 2 INTERGOVERNMENTAL GRANTS These grants are differentiated from the Community Grants as these are outside entities in which the Town contracts services, including the Estes Park Housing Authority (EPHA), the Estes Valley Fire Protection District, the Economic Development Council and Local Marketing District. The EPHA continues to decrease funding requests each year and has requested $106,000 for 2014. The Intergovernmental Agreement with the Fire District provides the district with 7% of the sales tax collected by the Town annually. As the Town moves forward with a sales tax initiative and anticipates increased sales tax revenues from the new MPEC, staff would recommend the Board review the current IGA because any new revenue generated by either should not be included in the agreement. The Town has taken the risk in developing the new project and should maintain the benefit. The budget contains the 7% for 2014. The Town did not provide operating funds for the Local Marketing District in 2013 and has not budgeted fund in 2014. The Board agreed the funding for the Fire District should be reviewed and should be need based and not a percentage of the sales tax annually. Caution was raised that the Fire District formation was passed with the understanding that the Town would fund 7% of the district with sales tax funds. Trustee Norris commented the LMD would be formally requesting financial support from the Town to help their funding shortfall due to the recent flooding event. The Town’s support would help the district in their bid for grant applications and other funding sources such as a bridge loan. The Board supported the newly formed Economic Development Corporation (EDC) in 2013 with $30,000. The EDC previously requested $60,000 in funding for 2014; however, in light of the flood has reduced their request to $30,000. Jon Nicholas/EDC Executive Director stated the EDC has revamped their financial model and has begun pursuing private grants to fund next year’s budget. The EDC has identified the Town as the keystone investors, setting the tone for the other investors. The EDC has also identified federal funding from the Economic Development Administration that may be available for the region; therefore, the council and other regional partners have come together to work on developing a regional economic strategy. Trustee Koenig expressed concern the Town has been identified as a keystone player without the Town’s opportunity to determine their role. The Board agreed key milestones should be developed for the EDC that address the reduction of funding by the Town over the life of the organization. Trustee Elrod stated the Board should discuss the funding of the Community Service grants and how the funding level should be determined moving forward. PUBLIC WORKS  Buildings – The fund contains funding for the maintenance of Town owned structures and janitorial services. Janitorial services have been reduced by 25% in an anticipated reduction in visitation; eliminated a system wide facility assessment; remodel of the Public Works and Utilities office has been placed on hold; and the hiring of a Facilities Manager has been cut from the 2013/2014 budget. Revenues and expenses remain flat in 2014; however, the funding of capital improvements continues to be inadequate with only emergency repairs being completed annually, no annual maintenance conducted. Staff stated the Facilities Manager position would be added back in as funding becomes available and the economy begins to recover.  Engineering – Projects for 2014 include the development of a standards manual compatible with Larimer County to be used by consultants and contractors working on Town projects; FLAP grant work begins with the NEPA study and preliminary design of the one-way couplet; continue public outreach for the development of the sales tax initiative to sustain and maintain public infrastructure, street and storm drainage; Elm Road environmental design and Town Board Budget Study Session – November 1, 2013 – Page 3 begin the first phases of construction of the landfill leachate; design Dry Gulch Road reconstruction for 2015 replacement; completion construction of MPEC and stall barn; design and construction of the Visitor Center Transit parking structure; participate in the design and construction of the Fish Creek corridor repairs; and begin the preliminary design and NEPA study for the Fall River Trail. Trustee Koenig questioned if a portion of the materials being removed from the lake could be used to repair residential properties that have lost their driveways, and therefore, access to their homes. Costs estimated for repairs are significantly higher than the funds provided by FEMA and homeowners would benefit from a local low cost resource to repair their properties. Trustee Phipps requested staff provide information on how the FLAP grant process would move forward and how eminent domain may be used for the project. Director Zurn stated the $13 million project required a match and the CDOT Ramp program has been approved to provide approximately $4.2 million in matching funds. To provide the funding the State of Colorado requires the Town to take ownership of Elkhorn from Moraine west to the bypass as the Town’s matching contribution for the Ramp funding. The advantage allows the Town to control the roadway, including closing off that portion of downtown as a pedestrian mall or for other events. The Town would prefer for CDOT to conduct the acquisitions; however, at this juncture the process has not been defined. The NEPA process and preliminary design process would be the next step. Mayor Pro Tem Blackhurst questioned if the Town would be provided an opportunity to inspect the road conditions and other infrastructure prior to taking ownership of the roadway. Staff has reviewed the roadway and has confirmed the bridge along the stretch of roadway appears to be in good condition.  Streets – The Street Improvement Program (STIP) has been reduced in 2014 and funds would be used for flood repairs and damage with potholes increasing during the winter and spring due to freezing and thawing. Reserves for the repair of Dry Gulch Road reconstruction continue to be held for 2015. Staff has removed the maintenance and overlay of Performance Park parking lot, and added a school zone traffic safety study.  Parks – Minor cuts have been made in 2014 without creating significant changes in the level of service. The division would complete the design and construction of the irrigation system and landscaping for the MPEC and stall barn facilities at the fairgrounds and the Visitor Center transit parking structure. Staff would assist with the development of a master plan for an arboretum and river restoration at the Visitor Center parking lot area. A new SCADA system was originally budgeted as it was installed with the original streetscape in the 1980s. The $175,000 system would be included in the 2015 budget. TRANSFERS Transfers from the General Fund in 2014 include $800,000 to the Community Reinvestment Fund (CRF), $435,000 to CRF for STIP, and $2 million to the Community Services Fund. GENERAL FUND. Each fund was reviewed and requests for additional information is noted below:  Legislative – In 2014 the budget includes an increase in personnel costs related to the election of three Trustee positions which would receive the increased salary approved in 2012. Staff has also budgeted for each to enroll in the Town’s insurance plans at the family rate. A consultant has been budgeted to aid the Board in developing a standard evaluation process for the Town Administrator. Education and training for the Board has been reduced in 2014. Trustee Elrod Town Board Budget Study Session – November 1, 2013 – Page 4 stated concerned with the Mayor’s contingency fund of $40,000. The fund has been used for routine purchases and would request the items be added to the budget rather than be funded by a discretionary fund used by the Mayor. Trustee Koenig and Mayor Pro Tem Blackhurst stated the Mayor has used the funds judiciously in the past and there are needs that occur out of the budget process. They would support the continued funding of the contingency fund.  Judicial – The 2014 budget contains no material changes over 2013 with the exception of an increase in salary for the judge and court clerk in 2014. Legislation was passed in 2013 that allows the fees charged by a Municipal Court to increase, however, the court would have to become a court of record. The current maximum the court can charge is $300. Judge Brown, staff and Attorney White would continue discussions on the matter.  Executive – The Assistant Town Administrator position would not be filled in 2014 Staff would review the position and how to maximize it in the future. The budget includes a citizen survey to be completed to identify trends. The budget has been decreased for both personnel and O&M. The Board requested staff review the possibility of sending all department heads and the other local entities to FEMA training. The Board discussed the need to review the Town Administrator contract to determine if the salary can be adjusted based on performance.  Administrative Services – A mail ballot election has been budgeted for the regular Municipal Election on April 1, 2014 to elect three Trustee position and a possible sales tax question. Revenues decrease with the elimination of Town staff performing payroll services for other entities such as the Library and the Fire District because the Town moved to Paylocity for payroll processing. Legal fees for Administration, Legislative and Administrative Services have been placed in this fund as it became difficult to separate out the fees for each. O&M expenses remain flat. Staff removed budgeted items for document management and the remodel of the records room and completion of the Administrative Services office. Staff would have discussions in 2014 on document management needs town wide, review software packages, and prepare for implementation in 2015.  Employee Benefits - This fund contains the homeownership program, tenure awards, wellness program, post employment benefits and employee gatherings. There are currently eight employees participating in the homeowner program with four additional participants anticipated for 2014. The budget also contains an increase in the number of eligible retirees for post employment benefits. Staff has been promoting the homeownership program and has promoted the down payment assistance program managed by the Housing Authority. With those efforts, staff has seen a doubling of participation by employees. Mayor Pinkham called for a break at 10:05 a.m. and reconvened the meeting at 10:15 a.m.  Finance – A Grant Specialist was hired as a limited term contract employee to manage the grants received by the Town for the parking garage and now the FLAP grant. This position has also been serving the Town as the main contact with FEMA for reimbursement. Personnel costs increase and O&M up slightly. COMMUNITY DEVELOPMENT The department provides planning services for the entire Estes Valley and building safety services for properties within Town limits. Planning has included the addition of a Planner II for 2014 to address an increase in development activities; partnering with Larimer County to utilize Energov to allow for updated software to provide better, faster information for staff and most importantly the public; continue to improve access to GIS information with the use of a consultant; and cut population build-out analysis and commercial land-based needs analysis cut from the proposed budget in 2014. Revenues increase with additional development applications anticipated. Personnel cost increase with the addition of one full-time position. O&M remains flat. Trustee Town Board Budget Study Session – November 1, 2013 – Page 5 Elrod questioned if the financial support provided by Larimer County for personnel would be increased in 2014. Director Chilcott stated staff reviews the IGA annually and recommends the financial support from the county remain the same for 2014 due to the cooperation received by the county in partnering with the Energov software. Protective Inspection (Building) has seen an increase in permit activity for the fourth straight year with a corresponding increase in revenues for 2014. Funds have been budgeted to implement Energov for the building division as well and would include permitting and code compliance software. The addressing conversion would be completed through GIS utilizing a consultant. Funds have been budgeted for continued floodplain management efforts and are estimated to cost $61,000 in 2014. A revision to the sign code was cut from the proposed budget. Staff has reviewed grant funding to complete floodplain management for the Fall River corridor. This would provide funding to complete a master plan and would include private property along the corridor. The Natural Resource Conservation Service would provide 75% of the river restoration and bank stabilization with matching funds provided by the individual property owners. Trustee Norris requested staff provide talking points for the Board on the floodplain recovery. POLICE The Police Department includes services for Patrol, Support Services and Community Services divisions. Total revenues are budgeted to decrease in 2014 and expenses increase due to personnel costs. A reorganization of the department occurred in 2013 with the departure of a couple of key positions, included in the reorganization was the combining of the Community Services and Support Services divisions to simplify the organization and reduce accounts by one; creation of a second Commander position to oversee Support Services; current Commander to oversee Operations; and 20 sworn police staff and 11 civilian staff members. The 2014 budget includes upgrades to the Tiberon system and corresponding training. The Police communication center would be mandated to develop a new digital trunking system if the department joins the communication consortium. It would require an upgrade to the communication equipment to meet the FCC regulations in 2017 with a $75,000 capital expense in 2014 for an interface to the call logger system. Staff has requested an additional dispatcher as the need became obvious during the recent flooding event. The department has cut two positions in 2014, one Community Services Officer and one Temporary Records Technician. CONSERVATION TRUST FUND This fund contains revenues from the State lottery and is used to fund bark beetle management, weed mitigation and tree replacement for Arbor Day. The Board requested staff review the 2013 funds budgeted for a playground in Bond Park because the stakeholder group requested the item be removed from the Park as there is a playground across the street. OPEN SPACE The Open Space Fund reflects the Town’s portion of a one-quarter of 1% sales tax increase that was passed by Larimer County voters in 1996. The funds are for trails and open space purchases and maintenance; the Fund will sunset in 2018. Revenues in the amount of $225,000 are estimated for 2014 and have not be allocated at this time. Finance Officer McFarland stated he has confirmed the fund could be used to repair trails affected by the flooding. UTILITIES Director Bergsten reviewed modifications made to the proposed budget presented to the Board, including the addition of $1.1 million to the Water department to address Fish Creek repairs; $1.2 million to replace overhead lines in the Glen Haven and Retreat area; $1.3 million to underground conductors; and increase in legal fees for both Enterprise funds to address flood related issues such as the placement of new power Town Board Budget Study Session – November 1, 2013 – Page 6 poles; and additional fees for professional services; and a shop assistant budgeted for 2013 was not hired but would be filled in 2014. Planned capital expenditures would not occur due to the flood recovery projects that have now taken precedence.  Light & Power – The projected revenues have been estimated with a worst case scenario and the funds ending balance for 2014 would meet debt service. The personnel costs remain flat for 2014 with the delay in filling the Assistant Town Administrator position and a full market increase provided to all lineman, above the 5% cap for the General Fund employees, because the Enterprise Fund can afford the increase. O&M increases with an increase to the tree trimming services during the summer months; a decrease in the useful life of the large vehicles; replacement of a flatbed pickup with a derrick truck, replacement of a 6- wheeler with a side-by-side, repair and replacement of service in the Fox Creek and North Fork areas and along the Fish Creek drainage, and the undergrounding of service along County Road 43. Trustee Elrod questioned the usage of utility payments by credit card. Staff would review and provide information on the usage.  Water – 2014 Revenues have been estimated conservatively as there are 181 water meters not currently in service and only 6 that impact the department. The department has not received the revenue numbers for September and October; therefore, the impact of the no flush zone has not been determined. The projected expenses have increased with the capital projects to repair flood damage, including the Fish Creek corridor waterline replacements. The department would also purchase a new process analyzer, continue the installation of automated meter reading devices; delay a water rate study and continue the review/design of treatment processes at Glacier Creek Water Treatment Plant as it relates to sedimentation. Staff continues to support the cooperative projects with customer groups in the Fish Creek, Charles Heights and Hondius water systems. Mayor Pro Tem Blackhurst questioned if the department is mandated to complete a rate study. Director Bergsten stated a mandate does not exist for the study; however, he would not be comfortable moving forward without a review of rates. THEATER FUND The funds were to be dispersed in 2013; however, the distribution was delayed and the funds continue to be held until such time a final decision has been made on how to disperse the funds. MISCELLANEOUS Finance Officer McFarland stated adjustments to the budget would be made through November 20th, new budgets delivered as part of the board packet on November 22nd, first reading of the budget on November 26th and a final reading and adoption of the budget on December 10th. Staff would also present the revisions to the 2013 budget at the December 10th meeting. Flood expenditures through October 31st have occurred in 40 different expense accounts with over $1 million spent. The expenses have been incurred in FEMA category A & B. The rock crusher operation has been estimated at $650,000 through December 1st. The reimbursement timetable from FEMA and the State is unknown at this time; however, staff continues to work diligently to identify all reimbursable expenses. Salaries and benefits that would have normally been incurred are not reimbursable, any items covered by Town insurance and legal fees. The project sheets for the other FEMA categories C-G are to be completed by the end of the year and are estimated at $2.3 million. Staff suggests a budget line item be added to the budget for $1 million in flood related expenditures to ensure sufficient funds have been allocated in the 2013 budget. A revenue line item would also be established for the reimbursements the Town would receive to cover flood costs. Any unused funds would be returned to Town Board Budget Study Session – November 1, 2013 – Page 7 the General fund balance. These steps would ensure the Town follows Governmental Accounting Standards and meet a review by DOLA. There being no further business, Mayor Pinkham adjourned the meeting at 12:05 p.m. Jackie Williamson, Town Clerk