HomeMy WebLinkAboutTBSS Budget 10-14-2016
Town of Estes Park, Larimer County, Colorado, October 14, 2016
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 14th day of October,
2016.
Board: Mayor Jirsa, Trustees Holcomb, Koenig, Martchink, Nelson,
Norris and Walkers
Attending: Mayor Jirsa, Trustees Holcomb, Koenig, Martchink, and
Norris
Also Attending: Town Administrator Lancaster, Assistant Town Administrator
Machalek, Finance Director Hudson, Director Bergsten and
Hunt, Manager Fraundorf and McEachern and Director/Town
Clerk Williamson
Absent: Trustees Nelson and Walker
Mayor Jirsa called the meeting to order at 8:00 a.m.
2016 BUDGET PRESENTATION
Finance Director Hudson provided an overview of the budgeting process, stating the
departments worked in collaboration to bring forward a balanced budget for 2017, the
first time since 2011. The proposed budget contains a 2% merit pool and market
adjustments, while still maintaining a proposed 21% fund balance in the General Fund.
The 2017 budget projects a 5% increase in sales tax revenue and month-to-month
projections were made factoring in the closure of Hwy 34 through April 2017. Staff
continues to address grant receivables in 2016, which will continue in 2017 with a grant
funded administrative staff member to address grantor agencies requests in a timely
manner to facilitate collections/reimbursements. The Community Reinvestment Fund
has over $6.4 million in capital outlay proposed, including the parking garage, Moraine
bridge replacement, broadband design grant and Fish Creek Road repairs. The
Community Center fund has begun to transfer funds to the Estes Valley Recreation and
Park District on a monthly basis for the construction of the Community Center. The IT
fund would reflect a significant decrease due to a transfer of dark fiber revenues to the
Light and Power fund for the broadband fiber project. The Light and Power fund equity
decreases by $1.2 million due in part to approximately $1 million in new capital projects
in 2017. The Water fund projects an increase in fund equity of approximately $140,000
after reinvestment of approximately $946,000 in line replacement projects and system
upgrades. The Tabor reserve of 3%, $563,251 in 2017, would reside in the General
fund and be included in the reserve ratio calculation. Staff has made difficult decision
on level of service and projects to bring forward the balance budget; however, through
the budget review the Board may determine items need to be restored.
Mayor Jirsa requested staff provide a cash flow by month to determine a minimum fund
balance during months such as June and July. Director Hudson stated the number of
large capital projects would make it difficult to estimate a month-to-month cash flow;
however, staff would review and develop a proposed minimum by month for the Board’s
review. Administrator Lancaster stated staff would bring forward a cash flow policy for
the Board to review.
INTRA-FUND TRANSFER
The fund has been used to transfer funds from the General fund to the Community
Services funds for their operations in the past. In 2016, $520,000 would be transferred
from the General fund to pay for the Certificates of Participation (COPS) to repay the
loan for the construction of the Event Center and Pavilion buildings. The $435,000
transferred from the General fund to the Street Improvement fund in 2016 continues to
Town Board Budget Study Session – October 14, 2016– Page 2
be considered as a source for repayment of the parking garage financing for the third
and fourth levels. If approved by the Town Board these funds would be transferred to
the Community Reinvestment fund. The Utilities transfer funds to the General fund with
10% of Light and Power revenues and 6% of Water revenues. Discussion ensued on
the use of STIP funds to repay the loan for the parking garage because the voters were
informed the funds would continue to be used for street improvement. Administrator
Lancaster commented during the 1A sales tax election the Town agreed to commit the
funds to transportation projects, and staff views the parking structure as a transportation
project.
EMPLOYEE COMPENSATION/BENEFITS
Eric Marburger/EMS Consulting Services provided an overview of the Town’s market
compensation plan adopted in 2013. Mr. Marburger completed the market salary
survey for 2017 and recommended the following adjustments to the current five pay
families: 3.4% Administrative, 3.3% Technical & Professional, 2.0% Public Safety, 1.3%
Labor, Trade, Skilled and Craft, and 4.3% Management. In addition, it was
recommended the Light and Power Lineman series be removed from LTSC and a new
pay family be created. It was further recommended the dispatchers be removed from
Public Safety and included in the Technical & Professional family. Other minor changes
would occur within the pay families and specific jobs would be reclassified. Pay ranges
would be adjusted and employees would see a market increase as of the first full
paycheck in 2017 corresponding to the pay family for their position.
The 2017 budget contains an 8% increase in medical and no increase in dental or vision
premiums. The Insurance Committee reviewed with the Town’s benefit broker Hays
Companies the possibility of bringing back spousal coverage in 2017, and, determined
the Town would not be able to do so with the current claim history. This issue would be
reviewed on an annual basis. The Air Ambulance service and Teledoc would be
maintained for 2017 with membership covered by the Medical Fund. The Insurance
Committee would continue to investigate options to assist employees and provide a
comprehensive benefit package, research additional out-of-pocket cost mitigation
tools/programs, and continue to educate employees on how to maximize benefit
offerings.
INTERNAL SERVICES FUNDS
MEDICAL
The fund maintains the medical premiums and fund balances as the Town moved to self
insurance in 2012. The fund balance would be reviewed as the stated funds appear to
only capture the Town’s premiums. There are current five other local entities, including
the Library District, Estes Park Sanitation, Estes Park Housing Authority and the Local
Marketing District on the Town’s medical plan.
FLEET MAINTENANCE
Manager McEachern reviewed the budget stating the division maintains over 500 pieces
of equipment ranging from pump trailers to heavy earthmoving equipment with a
replacement value of $7 million. The division provides specifics on the purchasing of all
new equipment for the Town departments and the Estes Valley Fire District. The
revenues for the fund remain flat in 2017 with expenses increasing slightly for personnel
and O&M. An increase in labor costs would require a rate assessment in 2017 and lead
to potential rate increases in 2018. A staffing analysis demonstrates the division’s
staffing needs are 6 FTEs and an administrative supervisor. A similar analysis of shop
space showed the division operates at approximately 25% of the space per industry
standards. An increase in shop space would address current safety concerns and allow
the storage of snow plows during the winter months to enhance efficiency.
INFORMATION SYSTEMS TECHNOLOGY
The division maintains equipment attached to the Town’s network and phone system
(laptops and computers, servers, audio and video components, software, copiers and
telephone components) with each department paying a fee per item. The division would
continue to support the network system, support the Broadband and Smart Grid
Town Board Budget Study Session – October 14, 2016– Page 3
initiatives, and move dark fiber revenue to Light and Power. Revenues increase with
the full cost of service charged to each department. The division would be fully staffed
in 2017 and O&M expenses remain flat. Capital includes new fiber equipment, a
firewall/switch enhancement, and the replacement of one server.
VEHICLE REPLACEMENT
The Internal Services Fund maintains a fund balance for future vehicle purchases with
approximately 95 vehicles in the fleet. In 2016, 21 vehicles were replaced at a cost of
$1.15 million. The 2017 budget contains 6 vehicles slated to be replaced at a cost of
$305,154. There are no new vehicles budgeted for 2017. The fund would be funded by
the General fund at 50% of normal as a budget saving measure in 2017. Staff would
review the replacement schedule for vehicles and make appropriate adjustments to
extend the useful life. Trustee Norris requested staff provide the Board with the
dollars needed to make the fund whole. Mayor Pro Tem Koenig questioned the
fate of the Senior Center van. Trustee Holcomb stated concern the fund would
not have the appropriate balance to fund replacement vehicle for the next 3 – 5
years. Staff stated the MOU with the EVRPD would transfer the van to the District with
the transfer of the Senior Center in 2017/2018, and at that point in time the District
would be responsible for the maintenance and replacement.
Mayor Jirsa called a break at 9:55 a.m. and reconvened the meeting at 10:05 a.m.
GENERAL FUND.
Finance Director Hudson stated the General fund revenues are primarily from sales tax,
property tax, transfer from Utilities, charges from services, operating grants and
contributions, and capital grants and contributions. Sales tax for 2017 has been
projected to increase by 5% with a budget estimate of $10.9 million. The Town’s
property tax mill levy of 1.822 equates to 2.2 cents of every dollar of property tax paid.
The average mill levy in Larimer County for 2016 was 12.19 mills. The departmental
revenues for 2017 are estimated at $5.16 million and include charges for services. The
most significant changes in revenues come from one time grant revenues for capital
projects. Staff continues to review grant opportunities and weigh the cost benefit
associated with the staff time required to administer grants.
Each fund was reviewed and requests for additional information is noted below:
Legislative – The benefit costs increase in 2016 and 2017 with the current
elections made by the Board members. The Mayor’s cell phone allowance has
been moved to a compensation line item in 2017. Funds have been budgeted for
a portable audio system for meetings at locations such as the Event Center. The
Mayor’s contingency fund would be reduced to $25,000 with $5,000 moved to
office supplies for promotional items.
Judicial - The fund remains flat for 2017 with no significant changes.
Executive –The department budget remains flat for 2017 and would realize a
reduction in personnel cost in August 2017. The budget includes funds for the
Town’s Centennial celebration.
Administrative Services – Revenues from business licensing increased in 2016
because of the change in vacation home fees in January 2016. The additional
revenues are to be used to offset additional code compliance staffing to address
associated compliance issues for vacation homes. Expenses increase slightly
with the continued need for contract labor in lieu of additional staffing, the
inclusion of employee development and leadership training, and agenda
management software without the implementation of document management
software. The budget does not include funding for the service proposal to
implement a town wide document management system. The Town Board
requested staff present the service proposal at the November 8, 2016 study
session.
Town Board Budget Study Session – October 14, 2016– Page 4
Finance – The revenues remain consistent with 2016 and includes continued
funding from DOLA for a flood accountant in 2017. The department recommends
converting a fixed term Grant Specialist to a regular employment position in
2017.
Employee Benefits – This fund contains the homeownership program, tenure
awards, wellness program, benefit consultant, post-employment benefits and
employee gatherings. The budget does not include a holiday gathering in 2017.
The 2017 budget increases due to the number of potential retirees that could
take advantage of the post medical insurance benefit and the number of
employees enrolled in the home ownership program. An actuarial study has
been budgeted for the post employee benefits which is required every other year.
COMMUNITY DEVELOPMENT
The department provides planning services for the entire Estes Valley and building
safety services for properties within Town limits. In 2017, the Planning division would
develop a Downtown Plan integrating floodplain management, economic development
and land use planning; continue to support the Watershed Coalition’s planning and
project implementation efforts; continue multi-year flood mitigation planning, including
short and long term objectives; coordinate effort with Town’s floodplain management
team; develop and implement residential and housing revisions to the Development
Code and policies; completely revise the Sign Code; develop and implement specific
commercial revisions to the Development Code; create and implement redevelopment
regulations to the Development Code and expand code enforcement capabilities and
tools with the implementation of iCompass for vacation rentals. Larimer County
revenues increase in 2017 with a 50/50 cost sharing of the iCompass software. The
department has anticipated an increase in charges for services in 2017. O&M costs
decrease with a reduction in the outsourcing of development plan reviews to improve
transparency and customer service.
Protective Services (Building) provides building permitting and inspection, addressing
and floodplain management in conjunction with Planning staff. Floodplain management
and floodplain administration has been placed on hold until the final hydrology report
has been completed and parameters have been determined. 2017 revenues decrease
with the completion of the grant funded hydrology study. Personnel cost increase with
the division fully staffed and reflects a corresponding decrease in O&M for the
outsourcing of plan review. Mayor Jirsa questioned if the proposed budget begins
to address the level of service provided by the department. Trustee Norris
expressed the same concern as it relates to customer service. Director Hunt stated
the department would be addressing its processes to simplify them in an effort to
provided better customer service.
CULTURAL SERVICES
Senior Services - Operates the Estes Park Senior Center and its programs,
including onsite dining, Meals on Wheels, information and referrals, outreach,
facility rentals, public meetings, recreation and social opportunities, and health,
wellness and fitness programs with 2.55 FTEs and 155 volunteers. The staff
continues to work with the EVRPD to transition Senior Services to the District
upon completion of the new Community Center in 2017 and a transition plan for
Meals on Wheels program beyond 2017. To accomplish the transition plan staff
has requested an increase of the Program Coordinator positions by an additional
4 hours per week each during 2017. Further discussion was heard on the
transition of the meal programs. Manager Mitchell stated staff has been in
discussions with Crossroads and the Larimer County Office of Aging to
determine an appropriate and feasible program for Meals on Wheels moving
forward. The Fort Collins model may be implemented, which provides a week
worth of frozen meals. Other options explored are partnerships with the School
District and the Hospital. Revenues remain steady with the Senior Center Inc.
funding the difference between the Town’s funding for meals and the new
contract with Catering for All Occasions in 2017, a $16,000 difference.
Town Board Budget Study Session – October 14, 2016– Page 5
Museum – The 2017 budget would address grant funding opportunities for the
Collection and Research building; museum staff providing a leadership role in the
Centennial celebration of the Town; complete the remodel of the main Museum
building; remove temporary exhibit in 2017 due to a lack of staffing; and begin
accreditation through STEPS program. The remodel of the building would
ensure the current building is viable for the next 15-20 years. The Estes Park
Museum Friends and Foundation would continue their efforts to raise the funds
needed to complete the $1.7 million Collections and Research facility. Staff
would research grant opportunities to improve the Birch Ruins and evaluate local
funds from organizations such as the Rotary clubs for educational programs.
Revenues, Personnel costs, and O&M would remain flat for 2017.
Mayor Jirsa called a break at 11:50 a.m. and reconvened the meeting at 12:07 p.m.
UTILITIES
Light & Power – The department provides electric power to approximately 10,500
accounts, including service to Rocky Mountain National Park; maintains 300
miles of distribution lines and construction of new infrastructure; provides meter
reading service for both electric and water; and provides energy efficiency
programs and renewable energy options. The projected fund balance would
decrease with an increase in expenditures over revenues in 2017; however, the
ending fund balance meets the debit service requirements. Revenues decrease
slightly in 2017. Personnel cost increase with the addition of a Document
Technician and fully funding a Project Manager with the elimination of the grant
funding for the position. Capital projects include tree cable and undergrounding
along Fall River, continue automated meter reading improvements with Smart
Grid, and underground/overhead work on the Allenspark circuit. Staff would
begin Phase I of a web based utility billing which would require web facing
servers. The Broadband project continues with dark fiber revenues transferred
from IT to Light and Power, inventory of field assets, and development of fiber
asset management software. Trustee Holcomb questioned if the rates
established would be sufficient to fund the utility. Director Bergsten stated
the current rates allow the utility to meet debt service coverage and maintain 90
days O&M. Staff continues to address capital projects that reduce outages and
the time customers are without power.
Water – The department manages water rights, augmentation plan accounting,
backflow prevention program, regulatory compliance testing and reporting, and
capital construction for aging infrastructure. In 2017, the ending fund balance
would increase with the new water rates established in 2016. Personnel cost
would increase with the addition of a Laboratory Technician and the increase of
the Administrative Assistant to full time. Capital projects would include a new
water main in the Reclamation neighborhood (Phase 1 of 5) and multiple system
improvements and automation. The department would administer water rights
with the Northern Colorado Water Conservancy District and Big Thompson water
rights acquisition. Director Bergsten stated the Water Master Plan continues to
address resiliency through the development of two raw water sources to one of
the water plants, and the need to address aging infrastructure with the
replacement of pipe. The funding needed to replace one mile of pipe has been
estimated at $1 million with 50 miles of pipe to be replaced. The department has
approximately four years to utilize the funding available through the USDA to aid
in the cost of replacement. The Town bonded the cost to upgrade the Mary’s
Lake Water Treatment facility in 2008 with a 20-year bond.
The next Budget Study Session is scheduled October 21, 2016 8:00 a.m. – 1:00 p.m.
There being no further business, Mayor Jirsa adjourned the meeting at 12:35 p.m.
Jackie Williamson, Town Clerk