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Home My WebLink Aboutagenda.council.worksession.20231030AGENDA CITY COUNCIL WORK SESSION October 30, 2023 3:00 PM, City Council Chambers 427 Rio Grande Place, Aspen I.Work Session I.A 2024 Recommended Budget Review - APCHA, City Owned Housing, and Component Unit Funds I.B Quarterly Financial Update Zoom Meeting Instructions Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://us06web.zoom.us/j/83781961569? pwd=Z0LF4EzsWARsY9DkLa1Lz7cBoZ6hS4.1 Passcode: 81611 Or join by phone: Dial: US: +1 346 248 7799 Webinar ID: 837 8196 1569 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kbLyIJlnWQ Oct 30 2023 presentations - final.pdf financial_update_2023.10.30.pdf 1 1 2024 Proposed Budget Overview Matt Grau – Budget Manager October 30, 2023 2 FY24 Compass & Budget Report APCHA, City-Owned Housing, Component Unit Funds Matthew Gillen | Executive Director October 30, 202333 3 FY24 Compass & Budget Report Aspen Pitkin County Housing Authority – 620 Fund Matthew Gillen | Executive Director October 30, 202344 4 COMPASS WINS – A LOOK BACK 5 Impact •Support to our lower income owners •Data for future impacts Completed Projects Rightsizing Pilot Live HOA Lunch & Learn Engagements Essential Repairs Pilot Approved •Effective use of resources •All parties benefit •Fills empty bedrooms •Building relationships •Empowers the HOAs •Collaboration and problem solving 5 COMPASS HIGHLIGHTS 6 PROJECTS: •Capital Reserve Plan •Rightsizing Pilot •HOA Outreach GOAL: Housing Stock Sustainability 6 COMPASS HIGHLIGHTS 7 PROJECTS: •Strategic Budget Development Revamp •Transparent/Efficient Qualification Process •Staff Development GOAL: Streamline Internal Productivity 7 COMPASS HIGHLIGHTS 8 PROJECTS: •Newsletter: 60% Open Rate! •Facebook Live in Spanish •Coffee Mornings GOAL: Tell The APCHA Story 8 9 APCHA Housing (11.46 FTE) General Administrative (4.86) Compliance (1.85) Qualifications (1.24) Sales (1.0) Property Management (2.34) APCHA STRUCTURE Independent Housing Entities (2.03 FTE) Truscott (1.05) Aspen Country Inn (0.53) Property Management (0.45) Housing Administration (13.49 FTE) 9 APCHA REVENUES 10 Current Subsidy 49% Unallocated Revenues 14%Property / Facility Maintenance 5% Management Fees 17% Other Revenues 15% 2024 2025 2026 2027 2028 Request Projection Projection Projection Projection Opening Balance $682,528 $439,505 $387,585 $401,465 $414,295 City - Subsidy (50% share)$791,000 $912,900 $987,850 $1,023,800 $1,072,750 County - Subsidy (50% share)$791,000 $912,900 $987,850 $1,023,800 $1,072,750 Unallocated Revenues $456,700 $469,520 $477,690 $487,360 $497,210 Facilities Maintenance $167,760 $174,910 $182,400 $190,260 $198,540 Management Fees $566,910 $578,250 $589,810 $601,600 $613,620 Revenues In $2,773,370 $3,048,480 $3,225,600 $3,326,820 $3,454,870 Other Revenues $500,000 $0 $0 $0 $0 Total Revenues $3,273,370 $3,048,480 $3,225,600 $3,326,820 $3,454,870 10 APCHA EXPENDITURES 11 Administrative 55% Property / Facilities Maintenance 9% Housing Sales & Rental Services 36% Operating Budget 2024 2025 2026 2027 2028 Request Projection Projection Projection Projection Administrative $1,645,765 $1,679,860 $1,736,630 $1,782,020 $1,848,030 Facilities Maintenance $276,151 $287,760 $300,500 $313,620 $327,170 Housing Sales & Rental $1,094,478 $1,132,780 $1,174,590 $1,218,350 $1,264,100 Operating $3,016,393 $3,100,400 $3,211,720 $3,313,990 $3,439,300 Capital $500,000 $0 $0 $0 $0 Total Uses $3,516,393 $3,100,400 $3,211,720 $3,313,990 $3,439,300 Targeted Reserve (12.5%)$439,549 $387,550 $401,465 $414,249 $429,913 Ending Fund Balance $439,505 $387,585 $401,465 $414,295 $429,865 % of Targeted Reserve 100%100%100%100%100% Change in Fund Balance ($243,023)($51,920)$13,880 $12,830 $15,570 11 2024 SUPPLEMENTAL REQUEST 12 Outreach Coordinator $111,660 (On-Going) •Addresses deficiencies: 1. Community engagement 2. Dedicated HOA POC/coach/sounding board for HOAs •HOAs responsible for maintenance – key to sustainability. 80 HOAs in APCHA system, 50 with common elements. •Analyze sustainability situation •Strategize results of capital reserve study (2024/25) •Liaise on climate change goals •Deepen understanding of sustainability needs, empower partners 12 2024 SUPPLEMENTAL REQUESTS 13 PTO Cash Out $6,580 (One-Time) •APCHA 620 Fund share of PTO Cash Out $6,510 •Smuggler Housing 622 Fund share of PTO Cash Out $70 13 FY24 Budget Report Smuggler – 622 Fund Matthew Gillen | Executive Director October 30, 2023141414 SMUGGLER FINANCIALS 15 Administrative 18% Property / Facilities Maintenance 70% Sales & Rental Services 12% Operating Budget20242025202620272028 Request Projection Projection Projection Projection Opening Balance $438,580 $447,041 $421,991 $425,601 $433,921 Rental Income $77,000 $78,540 $80,110 $81,710 $83,340 Late Rent Fees $100 $100 $100 $100 $100 Investment Income $7,000 $8,940 $8,440 $8,510 $8,680 Revenues In $84,100 $87,580 $88,650 $90,320 $92,120 Total Revenues $84,100 $87,580 $88,650 $90,320 $92,120 Administrative $13,150 $13,590 $14,030 $14,470 $14,920 Facilities Maintenance $51,538 $52,900 $54,380 $55,910 $57,500 Housing Sales & Rental $9,250 $9,440 $9,630 $9,820 $10,010 Operating $75,638 $77,630 $79,840 $82,000 $84,330 Capital $0 $35,000 $5,200 $0 $0 Total Uses $75,638 $112,630 $85,040 $82,000 $84,330 Target Reserve (12.5%)$9,455 $14,079 $10,630 $10,250 $10,541 Ending Fund Balance $447,041 $421,991 $425,601 $433,921 $441,711 % of Target 4,728%2,997%4,004%4,233%4,190% 15 FY24 Budget Report Truscott I – 491 Fund Matthew Gillen | Executive Director October 30, 2023161616 TRUSCOTT I FINANCIALS 17 Administrative 2% Property / Facilities Maintenance 75% Housing Sales & Rental 23% Operating Budget20242025202620272028 Request Projection Projection Projection Projection Opening Balance $888,369 $1,072,813 $1,052,983 $910,293 $942,613 Rental Income $1,360,000 $1,387,200 $1,414,940 $1,443,240 $1,472,100 Late Rent Fees $3,500 $3,570 $3,640 $3,710 $3,780 Laundry $31,000 $31,620 $32,250 $32,900 $33,560 Parking Fees $150 $150 $150 $150 $150 Investment Income $26,700 $21,460 $21,060 $18,210 $18,850 Other Facility Rentals $95,000 $100,000 $105,000 $110,000 $115,000 Other Revenues $5,500 $5,610 $5,720 $5,830 $5,940 Revenues In $1,521,850 $1,549,610 $1,582,760 $1,614,040 $1,649,380 Total Revenues $1,521,850 $1,549,610 $1,582,760 $1,614,040 $1,649,380 2024 2025 2026 2027 2028 Request Projection Projection Projection Projection Administrative $14,690 $14,980 $15,280 $15,580 $15,880 Facilities Maintenance $561,226 $575,140 $590,180 $605,710 $621,740 Housing Sales & Rental $175,020 $178,520 $182,090 $185,730 $189,450 Operating $750,936 $768,640 $787,550 $807,020 $827,070 Capital $189,470 $400,500 $534,200 $367,500 $336,600 Transfers Out $397,000 $400,300 $403,700 $407,200 $410,800 Total Uses $1,337,406 $1,569,440 $1,725,450 $1,581,720 $1,574,470 Targeted Reserve (12.5%)$167,176 $196,180 $215,681 $197,715 $196,809 Ending Fund Balance $1,072,813 $1,052,983 $910,293 $942,613 $1,017,523 % of Target 642%537%422%477%517%17 2024 Truscott Phase I 18 Capital Projects 2024 50663 – Interior Unit HVAC – Bld 100 Units $40,000 50647 – Truscott Ph 1 Hot Water Storage Tank Replacement $22,420 51636 – Mechanical 100 Building Office & Clubhouse $5,800 51737 – Truscott Exterior Lighting Replacement $25,000 50645 Laundry Rm. Equipment Replacement 600 & 900 Buildings – (funding carried forward from 2022 into 2023) $47,000 18 2024 Truscott Phase I 19 Capital Maintenance Projects 2024 40133 – Clean the Exterior of All Windows $13,750 40134 – Rekey all Unit Doors in Phase A $8,900 40122 – Truscott Phase I Facility Maintenance - Interior $15,800 40093 Interior Unit Light Fixtures and Outlets - Bld 100 Units $10,000 40094 Interior Unit Plumbing and Fixtures - Bld 100 Units $5,000 40095 – Replace Carpet Flooring and Paint – Bld 100 Apartments $10,000 40096 Appliance Range/Oven Replacement $13,000 40114 – Truscott Phase I Facility Maintenance $10,800 40076 – Truscott Concrete Repairs and Replacement $15,000 40079 – Truscott 100 Siding Repairs $7,000 19 FY24 Budget Report Marolt – 492 Fund Matthew Gillen | Executive Director October 30, 2023202020 MAROLT FINANCIALS 21 Administrative 1% Property / Facilities Maintenance 69% Housing Sales & Rental 30% Operating Budget20242025202620272028 Request Projection Projection Projection Projection Opening Balance $1,763,608 $1,265,482 $1,136,442 $1,377,852 $1,600,972 Rental Income - Seasonal $1,560,000 $1,591,200 $1,623,020 $1,655,480 $1,688,590 Laundry $25,000 $25,500 $26,010 $26,530 $27,060 Parking Fees $15,000 $15,300 $15,610 $15,920 $16,240 Cafeteria Lease $18,860 $19,240 $19,620 $20,010 $20,410 Investment Income $52,900 $25,310 $22,730 $27,560 $32,020 Other Revenues $25,500 $26,010 $26,530 $27,060 $27,600 Revenues In $1,697,460 $1,702,760 $1,733,720 $1,772,760 $1,812,120 Total Revenues $1,697,460 $1,702,760 $1,733,720 $1,772,760 $1,812,120 Administrative $4,960 $5,050 $5,150 $5,260 $5,370 Facilities Maintenance $425,136 $436,070 $448,020 $460,400 $473,240 Housing Sales & Rental $189,490 $193,280 $197,140 $201,080 $205,100 Operating $619,586 $634,400 $650,310 $666,740 $683,710 Capital $798,000 $466,800 $108,700 $146,900 $148,000 Transfers Out $778,000 $730,600 $733,300 $736,000 $738,900 Total Uses $2,195,586 $1,831,800 $1,492,310 $1,549,640 $1,570,610 Target Reserve (12.5%)$274,448 $228,975 $186,539 $193,705 $196,326 Ending Fund Balance $1,265,482 $1,136,442 $1,377,852 $1,600,972 $1,842,482 % of Target 461%496%739%826%938% Over/(Short) of Target $991,033 $907,467 $1,191,313 $1,407,267 $1,646,155 Change in Fund Balance ($498,126)($129,040)$241,410 $223,120 $241,510 21 2024 Marolt Ranch 22 Appropriations by Year Prior Years $160,000 2024 $640,000 Out Years $0 Lifetime Budget $800,000 51661 Building Envelope Improvements and Water Proofing All windows to be replaced, add flashing as required and repair siding. There are 8 buildings that contain 100 units. Project will start in 2024 and projected to finish up in the fall of 2025. Task Level Budget Design $30,000 Testing & Inspection $10,000 Hard Construction Cost $700,000 Project Contingency $60,000 22 2024 Marolt Ranch 23 Capital Projects 2024 51739 – Replace All Window & Door Blinds (100 Units)$54,500 Capital Maintenance Projects 2024 40083 – Marolt – Exterior Painting $27,000 40084 – Marolt – Carpet & Vinyl Replacement $25,000 40124 – Marolt Facility Maintenance – Interior $10,000 40099 – Marolt – Purchase New Furniture $10,000 40085 – Marolt – Furniture & Fixture Replacement $20,000 40086 – Marolt – Window Replacement $5,000 40087 – Marolt – Appliance Replacement $4,500 40088 – Marolt – Boiler and Plumbing Replacement $2,000 23 FY24 Budget Report Truscott II – 641 Fund Matthew Gillen | Executive Director October 30, 2023242424 TRUSCOTT II FINANCIALS 25 Administrative 25% Property / Facilities Maintenance 75% Operating Budget20242025202620272028 Request Projection Projection Projection Projection Opening Balance $567,109 $399,829 $287,259 $119,089 $334,759 Rental Income - Permanent $1,187,180 $1,210,920 $1,235,140 $1,259,840 $1,285,040 Late Rent Fees $2,000 $2,040 $2,080 $2,120 $2,160 Laundry $7,300 $7,450 $7,600 $7,750 $7,910 Section 8 Housing Assistance $7,000 $7,140 $7,280 $7,430 $7,580 Investment Income $3,800 $8,000 $5,750 $2,380 $6,700 Other Revenues $9,300 $11,320 $11,540 $11,770 $12,000 Total Revenues $1,216,580 $1,246,870 $1,269,390 $1,291,290 $1,321,390 Administrative $112,870 $115,310 $117,800 $120,350 $122,940 Facilities Maintenance $330,500 $339,630 $349,100 $358,890 $369,040 Operating $586,070 $600,500 $615,370 $630,680 $646,440 Capital $400,850 $362,000 $425,250 $48,000 $37,750 Debt Service $396,940 $396,940 $396,940 $396,940 $396,940 Total Uses $1,383,860 $1,359,440 $1,437,560 $1,075,620 $1,081,130 Target Reserve (12.5%)$172,983 $169,930 $179,695 $134,453 $135,141 Ending Fund Balance $399,829 $287,259 $119,089 $334,759 $575,019 % of Target 231%169%66%249%425% 25 2024 Truscott Phase II 26 Appropriations by Year Prior Years $125,000 2024 $125,000 Out Years $0 Lifetime Budget $250,000 51620 Drainage issues 10-70 Bldgs •Research & Fix Areas That Are Experiencing Drainage Issues •Berms Slope Toward Buildings B10-B30, B40-B70 •Regrade To Slope Water/Moisture Away From Buildings Task Level Budget Hard Construction Cost $250,000 26 2024 Truscott Phase II 27 Appropriations by Year Prior Years $125,000 2024 $125,000 Out Years $0 Lifetime Budget $250,000 51621 Drainage issues - 200-300 Bld •Research & Fix Areas That Are Experiencing Drainage Issues •Berms Slope Toward Buildings B200 And B300 •Regrade To Slope Water/Moisture Away From Buildings •Stormwater Management Plan Task Level Budget Hard Construction Cost $250,000 27 2024 Truscott Phase II 28 Capital Projects 2024 51753 –Laundry Room Equipment 40 & 50 Building $47,000 51623 – Elevator Car Improvement $10,000 51614 – Window Replacement – Buildings 10, 20, and 30 $15,000 Capital Maintenance Projects 2024 40125 – Truscott Phase 2 Facility Maintenance - Interior $10,000 40126 – Truscott Phase 2 Facility Maintenance - Exterior $10,000 40139 – Clean the Exterior of All Windows $9,750 40140 – Unit Turnover Interior Repairs $10,000 40141 – Unit Turnover Flooring Replacement $18,000 40142 – Kitchen Appliance Replacement $14,000 40143 – Rekey All Unit Doors $7,100 28 FY24 Budget Report Aspen Country Inn – 642 Fund Matthew Gillen | Executive Director October 30, 2023292929 ASPEN COUNTRY INN FINANCIALS 30 Administrative 21% Property / Facilities Maintenance 61% Housing Sales and Rental Services 18% Operating Budget 2024 2025 2026 2026 2027 Request Projection Projection Projection Projection Opening Balance $228,985 $192,475 $190,335 $190,335 $161,035 Rental Income - Permanent $420,240 $428,640 $437,210 $437,210 $445,950 Late Rent Fees $150 $150 $150 $150 $150 Laundry $5,100 $5,200 $5,300 $5,300 $5,410 Section 8 Housing Assistance $7,960 $8,120 $8,280 $8,280 $8,450 Investment Income $100 $3,850 $3,810 $3,810 $3,220 Other Revenues $1,620 $1,740 $1,760 $1,760 $1,780 Total Revenues $435,170 $447,700 $456,510 $456,510 $464,960 Administrative $58,700 $59,870 $61,070 $61,070 $62,280 Facilities Maintenance $171,460 $176,250 $181,180 $181,180 $186,270 Housing Sales/Rental Services $50,450 $51,450 $52,480 $52,480 $53,530 Operating $280,610 $287,570 $294,730 $294,730 $302,080 Capital $52,800 $24,000 $52,800 $52,800 $24,000 Debt Service $138,270 $138,270 $138,280 $138,280 $138,280 Total Uses $471,680 $449,840 $485,810 $485,810 $464,360 Targeted Reserve (12.5% of Uses)$58,960 $56,230 $60,726 $60,726 $58,045 Potential $3.8M Loan Ending Fund Balance $192,475 $190,335 $161,035 $161,035 $161,635 30 2024 Aspen Country Inn 31 Capital Maintenance Projects 2024 40146 – Routine Maintenance Every 2 Years (40 units) $28,800 40144 – Unit Turnover Repairs $10,000 40145 – Unit Turnover Flooring Replacement $14,000 APCHA will be conducting a property assessment this year to identify and begin addressing additional capital issues in 2024. 31 32 APCHA & Housing Summary Questions? Compass Goals: -Housing Stock Sustainability -Streamline Internal Productivity -Tell the APCHA Story Supplementals: -Outreach Coordinator $111,660 -One Time PTO Cash Out $6,580 Capital: -Capital Projects $500,000 32 FY24 Budget Report Aspen Mini Storage – 670 Fund Matt Grau | Budget Manager October 30, 2023333333 ASPEN MINI STORAGE FINANCIALS 34 2024 2025 2026 2027 2028 Request Projection Projection Projection Projection Opening Balance $23,886 $22,486 $22,486 $22,486 $22,486 Storage Rentals $165,000 $0 $0 $0 $0 Revenues In $165,000 $0 $0 $0 $0 Total Revenues $165,000 $0 $0 $0 $0 Aspen Mini Storage Operations $166,400 $0 $0 $0 $0 Operating $166,400 $0 $0 $0 $0 Total Uses $166,400 $0 $0 $0 $0 Ending Fund Balance $22,486 $22,486 $22,486 $22,486 $22,486 •Purchased (150 Fund) Feb 2020 for Lumberyard Affordable Housing Project •Current Budget Projection Steps Down Operations by June 2024 34 35 Summary Aspen Mini Storage Fund Questions 35 36 Budget Work Session Wrap Up Questions 36 2023 Financial Update October 30, 2023 37 Persistent Headwinds Many Compounding Economic Issues Today… Monetary Policy Political Disfunction Armed Conflicts Labor Disputes 38 2023 Year -to-Date (August) Last six months flat or below prior year benchmark Thru August 2022 Sales 2023 Sales 2023 vs 2022 Accommodations $253,222,589 $249,004,061 -1.7% Restaurants $141,558,187 $147,019,238 3.9% Sporting Goods $48,797,883 $50,789,844 4.1% Clothing $101,281,997 $97,530,629 -3.7% Food & Drug $54,786,976 $52,568,534 -4.0% Liquor $9,268,728 $8,388,485 -9.5% Marijuana $6,931,542 $5,734,353 -17.3% Miscellaneous $64,220,764 $75,210,537 17.1% Luxury Goods $39,361,122 $38,901,583 -1.2% Utilities $33,782,132 $34,758,111 2.9% Construction $53,020,604 $53,376,107 0.7% Automobile $23,714,208 $24,343,683 2.7% Banking / Financial $3,485,129 $3,093,495 -11.2% Health & Beauty $2,933,989 $4,629,086 57.8% Total Taxable Sales $836,365,849 $845,347,745 1.1% 39 2023 Taxable Sales: Projection Accommodations $336,901,061 Restaurants $195,663,238 Sporting Goods $73,241,844 Clothing $139,999,629 Food & Drug $79,485,534Liquor $12,653,485 Marijuana $8,192,353 Miscellaneous $116,403,537 Luxury Goods $58,090,583 Utilities $50,110,111 Construction $89,589,107 Automobile $34,989,683 Banking / Financial $5,142,495 Health & Beauty $6,537,086 Anticipate 1% Decrease by Year End 40 Sales Taxes: Projections 2023 Projection: 1.1% Softening Recipients 2023 Projection 2023 Tax Rates Parks & Open Space $18,001,200 1.50% Public Schools $3,604,300 0.30% Kids First / Affordable Housing $5,400,300 0.45% Transportation $1,800,100 0.15% Total Projected Collections Across Funds $28,805,900 2.40% Recipients 2024 Projection 2024 Tax Rates Parks & Open Space $18,330,000 1.50% Public Schools $3,670,100 0.30% Kids First / Affordable Housing $5,498,900 0.45% Transportation $1,833,000 0.15% Total Projected Collections Across Funds $29,332,000 2.40% 2024 Forecast: 1.8% Growth 41 Lodging Tax Jan – Sep Avg.2019 2020 2021 2022 2023 Occupancy 65%44%57%63%62% Daily Rate $470 $442 $501 $677 $716 RevPAR $331 $230 $304 $458 $479 RevPAR Down or Flat Last 6 Months $163 $165 $167 $184 $200 $216 $240 $261 $282 $304 $331 $230 $304 $458 $479 $100 $200 $300 $400 $500 $600 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 REVPAR (Thru Sept) 42 Lodging Taxes: Projections 2023 Projection: 4.0% Softening Recipients 2023 Projection 2023 Tax Rates Tourism Promotion Fund $4,194,750 1.50% Transportation Fund $1,398,250 0.50% Total Projected Collections Across Funds $5,593,000 2.00% Recipients 2024 Projection 2024 Tax Rates Tourism Promotion Fund $4,236,750 1.50% Transportation Fund $1,412,250 0.50% Total Projected Collections Across Funds $5,649,000 2.00% 2024 Forecast: 1.0% Growth 43 Real Estate Transfer Taxes Updated to 18% Softening in 2023 Budget Assumes Another 10% Down for 2024 Through Sept.2022 2023 Change Volume 493 445 (10%) Dollar Value $1,493,722,090 $1,200,577,645 (20%) Avg. Consideration $3,029,862 $2,697,927 (11%) Total Tax Collected $21,972,801 $17,654,609 (20%) 44 Short-Term Rental Tax Month Collections May $63,071 June $480,398 July $627,314 August $450,558 Year-to-Date $1,621,341 Affordable Housing $1,134,939 Capital / Environ.$486,402 Voter Approved Tax Effective May 2023 2023 Proj: $3.9M 2024 Proj: $7.9M 45 Property Tax Decision still pending… CPI Change – Known! Net Assessed Values – Unknown! Additions / Deletions – Unknown! Prop HH – Unknown! 46 How Can You Stay Informed? 47 Keeping Tabs Each Month Pooled Cash Across All Funds Investment Policies Guide Options Diversity, Duration, Risk & Yield Are Focuses 48 Keeping Tabs Each Month 49 Keeping Tabs Each Month 30,000 Foot View Fund-by-Fund Details Follow Thereafter Available: •By Program •By Type of Expense •By Project 50