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Home My WebLink Aboutagenda.council.worksession.20241028AGENDA CITY COUNCIL WORK SESSION October 28, 2024 4:00 PM, City Council Chambers 427 Rio Grande Place, Aspen I.Work Session I.A Budget Presentation: Employee Housing, Employee Benefits, Tourism Promotion, Public Education, Information Technology, Kids First, and Debt Service. 2025 Budget Work Session Wrap Up. Zoom Meeting Instructions Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://us06web.zoom.us/j/84454906856? pwd=whXguE0cBYvHp6s01yFlNBW7djdQ1a.1 Passcode: 81611 Or join by phone: Dial: US: +1 346 248 7799 Webinar ID: 844 5490 6856 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kk6qZQCmk FY25 Budget Work Session 10.28.pdf 1 1 2025 Proposed Budget October 28, 2024 2 2 OCTOBER 21st WORK SESSION RECAP Questions? •APCHA & Smuggler •Arts & Culture, Wheeler Opera House, and Red Brick Arts •Environmental Health, Climate Action, and REMP Fund •Water & Electric Utilities •Housing Funds, Parking & Transportation, and Stormwater 3 Council & Staff Action Items from 10/21 Parks & Open Space – Bike Skills Trail Project o Per Council direction, staff will remove from 2025 Budget prior to November budget adoption Parking & Transportation o Staff will provide data on uncollected parking fees o Staff to explore e-bike subsidy and bike share alternatives as part of first and last mile solutions via the “Aspen Gets Us There” planning process. Future Council work session 1Q 2025. EHS, Climate Action, and REMP o Details of single use bag fee program expenditures (next slide) 4 Single Use Bag Program 4 2025 Proposed Expenditure Budget: $122,310 • $50K supplies and services for reusable bags, e-waste collection event, etc. • $72K personnel reflects allocation of: o Env. Health & Sustainability Director (10%) o Env. Health Administrator (25%) o Temporary Employee (~$18K) Note: Personnel figures are from before the bag fee was introduced and reflect time spent on reduction of single use items prior to the fee. Fees could not be used to pay for much of this time as it was paid from the General Fund prior to the fee approval. 5 FY25 Budget Update on Food Tax Refund Matt Grau | Budget Manager October 28, 2024 6 FOOD TAX REFUND 6 •2023 Refund - $55/per person + senior •2024 Refund - $85/per person + senior •2025 Refund - $132/per person o Missed adding budget authority to fully cover this in 2025 Proposed Budget o +$118.5k to incorporate into 2025 Budget Resolution Impacts Parks, Transportation, Housing Development, & Kids First Funds 7 7 TONIGHT’S BUDGET PRESENTATIONS Department Presentations o Employee Housing o Employee Benefits o Tourism Promotion Budget Presented by Finance o Public Education, Information Technology, Kids First, and Debt Service Budget Work Session Wrap Up 8 FY25 Budget Report Employee Housing 505 Fund October 28, 2024 9 EE HOUSING 9 74Total Unit Count 3Alpine Grove 1Anderson Park 2Animal Shelter 1Aspen Animal Hospital 1Aspen Recreation Center 8Burlingame 4Cemetery Lane 1Deer Hill 1E. Hopkins Ave. 8Main Street 1Marolt Open Space 3Marolt Seasonal 1Parks Campus 1S. West End St. 14Truscott 24Water Place Employee Housing Program •Focus on stability of services o Emergency Responds Needs o Critical Recruitments / Retention •Small down payment assistance & rental advancement programs •Largely been acquisition focused – both rental and ownership 10 EE HOUSING REVENUES 10 Rental Income 7% Refund of Expenditures - Housing 4% Transfers In 89% 2025 2026 2027 2028 2029 Request Projection Projection Projection Projection Opening Balance $5,328,990 $8,435,660 $11,583,490 $14,126,720 $17,648,210 Rental Income $309,000 $315,180 $321,480 $327,910 $334,470 Investment Income $158,900 $168,710 $231,670 $282,530 $352,960 Refund of Expenditures $162,700 $166,500 $170,400 $174,300 $178,200 Revenues In $630,600 $650,390 $723,550 $784,740 $865,630 Transfers In $3,905,500 $3,998,700 $4,091,800 $4,184,800 $4,277,900 Total Revenues $4,536,100 $4,649,090 $4,815,350 $4,969,540 $5,143,530 11 EE HOUSING EXPENDITURES 11 Employee Housing Assistance 52% Facilities Maintenance 11% Capital 37% Total Uses 2025 2026 2027 2028 2029 Request Projection Projection Projection Projection Employee Housing Assistance $663,350 $63,350 $63,350 $63,350 $63,350 Facilities Maintenance $141,080 $143,910 $146,770 $149,700 $152,720 Operating $804,430 $207,260 $210,120 $213,050 $216,070 Capital $625,000 $1,294,000 $2,062,000 $1,235,000 $1,014,200 Total Uses $1,429,430 $1,501,260 $2,272,120 $1,448,050 $1,230,270 Ending Fund Balance $8,435,660 $11,583,490 $14,126,720 $17,648,210 $21,561,470 Fund balance is planned to accumulate to allow for future participation opportunities at Forest Service and Lumberyard sites 12 2025 SUPPLEMENTAL REQUEST 12 Employee Housing Stipend Pilot Program, $600,000 (One-Time) •Supporting a pilot stipend program as a benefit within the City’s total compensation plan •Greater details planned for Nov 2024 work session •Deeper dive presented to Council in spring 2025 o Focus on employees outside of subsidized units o Will focus on City wages as determiner of eligibility •To support the attraction and retention of a qualified workforce 13 2025 Capital 13 2025Capital Maintenance $550,00040071 Properties Repair and Renovations $75,00040188 550 E. Main St. Exterior Finishes 14 14 Summary Questions? 15 FY25 Budget Report Employee Benefits 501 Fund October 28, 2024 16 2025 Employee Benefits 16 •Self-Funded Health Plan •Employee and Employer take on cost sharing of premiums •Stop loss policy mitigates some risk •Maintain $0 employee-only premium in 2025; all other tiers increased 17 EE BENEFITS REVENUES 17 Refund on Stop Loss 5% Refund on Rx 1% Employee Premiums 10% Employer Premiums 84% 2025 2026 2027 2028 2029 Request Projection Projection Projection Projection Opening Balance $1,666,430 $950,330 $349,940 ($93,360) ($346,800) Refund on Stop Loss $378,000 $408,200 $440,900 $476,200 $514,300 Refund on Rx $75,600 $81,600 $88,100 $95,100 $102,700 Employee Premiums $755,700 $816,200 $881,500 $952,000 $1,028,200 Employer Premiums $6,648,400 $7,180,300 $7,754,700 $8,375,100 $9,045,100 COBRA Revenues $31,500 $34,000 $36,700 $39,600 $42,800 Investment Income $50,000 $19,010 $7,000 ($1,870) ($6,940) Other Revenues $4,600 $5,000 $5,400 $5,800 $6,300 Total Revenues $7,943,800 $8,544,310 $9,214,300 $9,941,930 $10,732,460 18 EE BENEFITS EXPENDITURES 18 Administrative 3% Employee Wellness & Safety 5% Reinsurance 10% Claims Paid 82% Operating Budget 2025 2026 2027 2028 2029 Request Projection Projection Projection Projection Administrative Costs $263,600 $268,800 $274,100 $279,500 $285,100 Employee Wellness/Safety $382,000 $389,700 $397,500 $400,670 $408,664 Reinsurance $900,000 $945,000 $992,300 $1,041,900 $1,094,000 Claims Paid $7,114,300 $7,541,200 $7,993,700 $8,473,300 $8,981,700 Total Uses $8,659,900 $9,144,700 $9,657,600 $10,195,370 $10,769,464 Ending Fund Balance $950,330 $349,940 ($93,360) ($346,800) ($383,804) 19 19 Summary Questions? 20 FY25 Budget Report Tourism Promotion Fund – 130 October 28, 202420 21 TOURISM PROMOTION FUND FINANCIALS 21 •Lodging Tax: o 75% Tourism Promotion Fund o 25% Transportation Fund •New contract adopted via Resolution 46 (series 2023) to include: o Marketing Plan, Staffing Welcome Centers, Winterskol and Food & Wine, and Partnership with Forest Service 2025 2026 2027 2028 2029 Request Projection Projection Projection Projection Opening Balance $382,321 $382,321 $382,321 $382,321 $382,321 Lodging Tax $4,479,750 $3,960,100 $4,845,300 $5,039,110 $5,240,670 Total Revenues $4,479,750 $3,960,100 $4,845,300 $5,039,110 $5,240,670 Marketing and Tourism Promotion $4,479,750 $3,960,100 $4,845,300 $5,039,110 $5,240,670 Total Uses $4,479,750 $3,960,100 $4,845,300 $5,039,110 $5,240,670 Ending Fund Balance $382,321 $382,321 $382,321 $382,321 $382,321 x Change in Fund Balance $0 $0 $0 $0 $0 22 22 Summary Questions? 23 FY25 Budget Public Education – 131 Fund Matt Grau | Budget Manager October 28, 2024 24 PUBLIC EDUCATION FUND FINANCIALS 24 •Dedicated 0.3% Sales Tax o Commenced January 1, 2013, renewed in 2017 and 2022 o Sunset Scheduled End of 2026 o Modeling an assumption of tax renewal for out years o Council would initiate tax renewal if supported again •Pass Through of Collections o 98% distributed o 2% kept for administration •Separate from City’s Tobacco Tax o $250,000 / yr for 3 years for Aspen Family Connections 2025 2026 2027 2028 2029 Request Projection Projection Projection Projection Opening Balance $0 $0 $0 $0 $0 0.3% Sales Tax - Sunset $4,629,360 $4,013,660 $4,816,390 $4,912,720 $5,010,970 Total Revenues $4,629,360 $4,013,660 $4,816,390 $4,912,720 $5,010,970 61000 - Fund Admin. $92,590 $80,270 $96,330 $98,250 $100,220 61000 - Fund Disb. $4,536,770 $3,933,390 $4,720,060 $4,814,470 $4,910,750 Total Uses $4,629,360 $4,013,660 $4,816,390 $4,912,720 $5,010,970 Ending Fund Balance $0 $0 $0 $0 $0 Change in Fund Balance $0 $0 $0 $0 $0 25 FY25 Budget Information Technology – 510 Fund Matt Grau | Budget Manager October 28, 2024 26 IT DEPT 26 •2025 Total Sources - $3,140,600 •2025 Total Uses - $3,407,760 •Supplemental Requests o Increase in operations (Software & Network Services) o Software application management •Capital o Fiber Optic Improvements o CommVault Backup Upgrade o Network Services o Cybersecurity Admin. 11% Workgroup Svcs 15% Network Svcs 38% Phone Svcs 9% Application Licenses 11% Help Desk 11% Community Broadband 5% 27 FY25 Budget Kids First – 152 Fund Matt Grau | Budget Manager October 28, 2024 28 KIDS FIRST 28 Admin. 11% Enrollment Support 57% Childcare Program Support 21% Facilities Maintenance 11% •2025 Total Sources - $4,713,180 •2025 Total Uses - $3,778,120 •Supplemental Requests o Workforce training & incentive programs o Utilities operating expense increase for Yellow Brick building •Capital o Playground equipment replacement o Building interior & exterior 29 FY25 Budget Debt Service – 250 Fund Matt Grau | Budget Manager October 28, 2024 30 30 Annual Debt Payments: $6.3M Parks and Recreation Bonds $8,190,000 17.6% Facility Bonds $38,335,000 82.4% Debt Outstanding As of 1/1/2025 $46.5M •New City Hall ($22.9M) •Aspen Police Department ($15.2M) •Parks & Open Space ($8.2M) •CCEC Balance ($265K) City Charter: Section 10.4 General Obligation Debt Limit: 20% of Assessed Value (~$600M)* 31 31 2025 BUDGET WORK SESSION WRAP UP Questions? November 12th Council Meeting •Public hearing for budget resolutions •First reading of budget fee ordinances •November 19th Council Meeting •Public hearing and second reading of budget ordinances 32