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CITY COUNCIL WORK SESSION
October 07, 2013
5:00 PM, City Council Chambers
MEETING AGENDA
I. Budget Kick off: General Fund; Asset Management: Tourist Promotion; Debt Service; Employee
Benefit; City Employee Housing
City of Aspen
2014 Proposed Budget
October 7, 2014
P1
I.
Agenda for Oct. 7
•Budget Overview
•General Fund
•Asset Management Plan Fund
•Debt Service Fund
•Employee Benefits Fund
•Employee Housing Fund
•Tourism Promotion Fund
2 P2
I.
Budget Overview
2011 Original
Budget
2012 Original
Budget
2013 Original
Budget
2014 Proposed
Budget Variance %
Change
Revenues $86,943,310 $93,072,954 $94,594,225 $101,713,656 $7,119,431 7.50%
Operating $47,469,980 $49,941,280 $51,210,660 $54,023,000 $2,812,340 5.50%
Capital Outlay $13,809,990 $21,810,300 $33,262,380 $28,216,200 ($5,046,180)-15.20%
Debt Service $4,954,570 $5,293,160 $5,141,720 $4,977,250 ($164,470)-3.20%
Net Appropriations $66,234,540 $77,044,740 $89,614,760 $87,216,450 ($2,398,310)-2.70%
Interfund Transfers $18,603,150 $18,148,800 $16,844,510 $17,340,900 $496,390 2.90%
Total Appropriations $84,837,690 $95,193,540 $106,459,270 $104,557,350 ($1,901,920)-1.80%
Ending Fund Balance $66,296,633 $71,825,209 $65,548,532 $71,785,841 $6,237,309 9.50%
3 P3
I.
2014 Projected Revenues
Taxes
$38,676,100
38%
Fees
$33,249,250
33%
Intergovernmental
Transfers
$19,354,010
19%
Other
$10,510,520
10%
2014 Projected Revenues = $101,713,656
4 P4
I.
2014 Projected Tax Revenue
Property Tax
(GF, AMP, Stormwater)
$6,954,700
Lodging Tax
(Transportation, Marketing)
$2,549,100
Real Estate Transfer Tax
(Wheeler, Housing)
$8,085,000
Use Tax
(Transportation)
$847,600
Sales Tax
(Parks & Open Space,
Housing Development,
Kids First, Transportation)
$19,636,700
Other Taxes
(General Fund)
$603,000
Taxes
$38,676,100
2014 Projected Tax Revenue
5 P5
I.
Budget Overview
6
$8,000,000
$8,500,000
$9,000,000
$9,500,000
$10,000,000
$10,500,000
$11,000,000
$11,500,000
$12,000,000
$12,500,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
City Sales Tax (2.1% City, Excludes Add’l 0.3% Education)
Actual Collections Inflation Adj. Collections
P6
I.
Budget Overview
7
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
City Lodging Tax (2.0%)
City Collections City Adj. Inflation
P7
I.
Budget Overview
8
$500,000
$2,500,000
$4,500,000
$6,500,000
$8,500,000
$10,500,000
$12,500,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Housing Real Estate Transfer Tax (1.0% less first $100,000)
City Collections City Adj. Inflation
P8
I.
Budget Overview
9
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2009 2010 2011 2012 2013 2014
Use Tax (2.1%)
On Deposit City Collections Realized
P9
I.
Budget Overview
10
$1,000,000,000
$1,100,000,000
$1,200,000,000
$1,300,000,000
$1,400,000,000
$1,500,000,000
$1,600,000,000
$1,700,000,000
$1,800,000,000
2009 2010 2011 2012 2013 2014
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
$6,500,000
Property Tax
Base Property Tax Collections Add'l TABOR Revenues Assessed Value
P1
0
I.
2014 Projected Fee Revenue
Comm.
Development /
Engineering
$4,887,700 Franchise Fees /
Business Licenses
$1,261,500
Utilities & Stormwater
$14,380,600
Recreation / Golf /
Parks & Open Space
$3,762,600
Affordable
Housing
$2,986,810
Other
$5,970,040
Other
$33,249,250
2014 Projected Fee Revenue = $33,249,250
11 P1
1
I.
2014 Projected IGT’s
General Fund
Overhead
$5,813,700
IT Overhead
$2,194,300
Employee Housing
$920,000
Debt Service
$3,299,610
Employee
Benefits
$3,832,300
Other
$3,294,100
IGTs
$19,354,010
2014 Proposed IGTs = $19,354,010
12 P1
2
I.
2014 Other Revenue
Housing
Development
$7,871,100
Housing
Administration
$522,400 Wheeler
Opera
House
$684,870
Other
$1,432,150 Other
$10,510,520
2014 Other Revenue = $10,510,520
13 P1
3
I.
Expenditure Overview
•Base Budget
•Equal to same level of resources as prior fiscal year,
adjusted for:
»Salary increases (Up to 4.0% merit pay)
»Health care increases (3.0% premium increase)
»Inflationary pressure on goods and services (2.0% target)
•Supplemental Requests
•New resource requests for expanded or new services,
or for cost escalation beyond the 2.0% target
14 P1
4
I.
2014 Projected Expenses
Labor
$29,145,570
Training /
Memberships
$714,970
Professional Services
$18,150,300
Materials
$3,117,090
Contribitions
$2,680,120
Fixed Assets
$28,216,200
Transfers
$17,340,900
Other
$5,192,200
2014 Proposed Expenditures = $104,557,350
15 P1
5
I.
General Fund
16
•Includes nearly all administrative support functions
for the City
•City Council and Manager’s Office
•Attorney’s and Clerk’s Offices
•Human Resources, Finance, and Asset Management
•Also includes services that may not have sufficient
dedicated fees or revenue sources and require
general purpose funding
•Community Development, Engineering, and Streets
•Recreation and Special Events
•Police and Environment Health
P1
6
I.
General Fund
17
Property Tax
$2,150,000
9%
City Share of
County Sales Tax
$7,469,000
30%
Transfers
$5,813,700
23%
Community
Development /
Engineering
$4,897,000
Franchise Fees /
Business Licenses
$1,577,500
Recreation
$2,018,100
Other
$1,368,700
Other
$9,861,300
38%
2014 General Fund Revenues = $25,294,000
P1
7
I.
General Fund
18
•What does the City receive for these funds?
•Community safety for 6,650 full-time residents plus 20,000 visitors
during peak seasons
•Maintenance of 30 miles of streets, storm drains, and alleyways
•Recreation facilities that include two sheets of ice, aquatic center,
gymnastic facilities, artificial and natural turf fields, and more
•Regulation of all construction and land use within City limits,
oversight of two historic districts and over 300 historic landmarks
•Enforcement of noise pollution ordinances, food safety standards,
child care regulations, air and water quality
•Over $1 million (excluding in-kind support) for local non-profits
P1
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General Fund
19
Contributions &
Transfers
$1,824,400 Community
Development
$2,574,720
Engineering
$1,120,360
Police /
Communications
$4,944,250
Recreation
$4,268,290
Envir. Health
$548,130 Streets
$1,944,900
Special Events
$1,195,050
Council
$372,520
Manager's
Office
$1,009,030
HR, $685,820
Clerks
$678,090
Finance
$1,717,600
Attorney
$505,360
Asset
Mgmt
$421,690
Support Depts.
$5,390,110
2014 General Fund Budget = $23,809,530
P1
9
I.
General Fund
20
Labor
$15,415,390
65%
Professional Services
$4,028,700
Training/Dues
$456,420
Materials / Supplies
$1,246,540
Contributions
$1,230,810
Overhead / Transfers
$1,446,850
2014 General Fund Budget = $23,809,530
P2
0
I.
Supplemental Requests
(2013 Requests With On-Going Impacts)
Department / Fund FTE Requested
Resources
Ongoing /
Temporary
Revenue
Offset
As % of Total
Req. Authority
GF / Engineering 1.0 $101,500 Ongoing $0 %
Engineer II –This position -originally sought as a Development Engineer but since downgraded -
was brought before Council on July 23, 2013 as an effort to ramp up development reviews and
inspection services in direct reflection of increased activity in the construction industry.
GF / Community
Development
1.0 $147,500 Ongoing $0 %
Administrative Assistant and Plans Examiner -These position additions were brought before
Council on July 23, 2013 as an effort to ramp up development reviews and inspection services in
direct reflection of increased activity in the construction industry.
GF / Police 0.0 $50,000 Ongoing $0 1%
Wildfire Mitigation -This request was presented to Council on July 23, 2013 and reflects
requested wildfire preparedness improvements from City of Aspen, Pitkin County, AVFPD, U.S.
Forest Service and Holy Cross Electric representatives.
21 P2
1
I.
Supplemental Requests
22
17.3
13.2
24.9 25.2
20.9
17.5
33.7 33.7
23.1 22.1
23.0
27.0
0
5
10
15
20
25
30
35
40
0
100
200
300
400
500
600
700
2008 2009 2010 2011 2012 2013 Proj.
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O
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Permit and Change Order Activity per FTE
Activity Subject to Use Tax Activity Not Subject to Use Tax Activity / FTE FTE Count
P2
2
I.
Supplemental Requests
Department / Fund FTE Requested
Resources
Ongoing /
Temporary
Revenue
Offset
As % of Total
Req. Authority
GF / Finance 1.0 $83,500 Ongoing $42,000 5%
Accountant I -Finance proposes to assume accounting functions for three affordable housing
projects -Country Inn (ACI) and Truscott II (APCHA related), and Burlingame Housing Inc. (BHI).
Half of the position would be charged out to the benefitting entities, offsetting 50% of the cost.
Duties would include A/R reconciliation, Active Network customer deposit reconciliation,
maintenance of electronic lease files, payroll back-up, budget to actual analytics, and
reconciliation of balance sheets, fund balance, etc.
GF / Community
Development
1.0 $75,000 Ongoing $0 3%
Planning Technician -This position will cover planner-of-the-day duties, review of all sub-permits
(mechanical, electrical, plumbing), approve all pre-permitting planning approval forms, and will
address less complicated land use cases. When possible, this position will also assist senior -level
staff with routine aspects of large cases and provide support to the Long -Range Planner and
Director with policy projects. All duties will continue to improve customer service.
23 P2
3
I.
Supplemental Requests
Department / Fund FTE Requested
Resources
Ongoing /
Temporary
Revenue
Offset
As % of Total
Req. Authority
GF / Engineering 1.0 $95,000 Ongoing $0 8%
Project Manager I -Permit activity has increased in excess of 30% and has driven a
commensurate increase in inspection volume. Volumes are trending toward 2008 levels yet
staffing currently resides at approximately 2 FTE below 2008 levels. Current response rates are at
30 days+ and current inspections are performed as complaints are received instead of on a
regular inspection schedule. The requested resource would improve customer service related to
the above areas and improve compliance.
GF / Environmental
Health
0.0 $3,760 Ongoing $0 1%
Air Quality Monitoring -With recent upgrades to monitoring equipment coupled with
efficiencies in contracts for professional monitoring, this program has to expand into monitoring a
third pollutant (PM2.5). This request seeks a minimal adjustment to allow for expanded services
to continue, including website reporting and greater quality assurance testing, and adoption of
data by the Colorado Dept. of Public Health and Environment.
24 P2
4
I.
Supplemental Requests
Department / Fund FTE Requested
Resources
Ongoing /
Temporary
Revenue
Offset
As % of Total
Req. Authority
GF / Environmental
Health
0.0 $3,800 Ongoing $0 1%
Yard Waste Bin -In an effort to eliminate non-compliant dumping of yard waste by City residents,
additional funding is sought to extend the current availability of the yard waste bin located at the
Rio Grande Recycling Center for the full duration of the spring and fall seasons (estimated at 4
additional weeks). Funding provides for the cost to haul the bin to the Pitkin County Landfill site.
GF / Special Events 0.0 $30,000 Temporary $0 3%
Temporary Administrative Assistant -Workload has increased with the addition of the 4th of July
parade, lacrosse tournament, and Pro Cycling Challenge.The requested temporary resource is
sought to assist with these new events over the next two years, concurrent with the
Department’s increased outreach and emphasis on permitting requirements and compliance .
After the two year period has expired, it is anticipated that education and outreach with event
permitting will have translated into an efficient process and existing permanent staff will be able
to address existing volume.
25 P2
5
I.
Supplemental Requests
Department / Fund FTE Requested
Resources
Ongoing /
Temporary
Revenue
Offset
As % of Total
Req. Authority
GF / Aspen
Recreation Center
0.0 $10,000 Ongoing $5,000 < 1%
Labor for Learn-To -Skate –The Recreation Advisory Committee and public input have identified
that this program should be provided by the facility, to extend greater equitable treatment to the
two skating clubs that utilize the facilities. While not completely cost neutral, projected expenses
are anticipated to be partially offset by fees charged to participants.
GF / Aspen Ice
Garden
0.0 $43,000 Ongoing $0 6%
Labor for Adult Hockey -The number of hockey teams has grown from eight to thirty-two in
recent years. Costs associated the expansion of leagues, including officiating and scorekeeping,
had been absorbed through staffing vacancies in maintenance positions; however, these
maintenance positions have now been filled. With the absence of ongoing vacancy savings, there
are no longer sufficient budget savings to cover the additional hockey expense without new
expenditure authority. As existing hockey league play expenses are already offset by revenues
collected from participants, this request is for new authority without new offsetting revenue.
26 P2
6
I.
General Fund
27
$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
$20,000,000
$24,000,000
$28,000,000
$32,000,000
$36,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Long Range Plan 2010-2023
Ending Balance Revenues Expenditures Reserve (25% of Uses)
Recent property tax and fee-based revenue growth (specifically from Community Development and Engineering)
have positively influenced and maintained projected fund balances above the 25% of annual expenditures target .
P2
7
I.
Asset Management Plan (AMP)
28
•Includes all capital project development, large dollar
maintenance and replacement costs for fixed assets
owned and operated by General Fund programs
•City Hall, Aspen Recreation Center, Ice Garden, Red Brick
•Streets, Bridges, Sidewalks, and Gutters
•Fleet vehicles, Copiers, Computers, Etc.
•10 year forecast estimates a useful life for many
items and anticipates cost escalation
•Not a smooth pattern to expenses when compared to operating
•Rough placeholders for a number of large ticket items
P2
8
I.
Asset Management Plan (AMP)
29
Property Tax
$3,993,000
96%
Leases and
Timeshares
$160,000
Interest
$7,900
Other
$167,900
4%
AMP Program Revenues = $4,160,900
P2
9
I.
Asset Management Plan (AMP)
30
Department 2014 Amount Department
Fleet Replacements $747,000 Streets
Curb and Gutter Replacements $269,000 Engineering
Pedestrian Improvements at Mill St. $213,000 Engineering
Payroll for Capital Projects $167,000 Engineering
Traffic Calming and Pedestrian Improvements at Neale St.$160,000 Engineering
Replacement of the Pool Slide $150,000 Aspen Recreation Center
Offices, Storage, and Housing Development (Planning)$100,000 Aspen Recreation Center
Police Facility Renovation and Construction (Planning)$100,000 Asset Management
Facility Master Planning for Entire City (Planning)$100,000 Asset Management
All Other Projects $723,500 Various
Grand Total $2,729,500
P3
0
I.
Asset Management Plan (AMP)
31
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset Management Plan Fund
Long Range Plan 2010-2023
Ending Balance Revenues Expenditures Reserve 12.5% of Uses
Expenditure spikes between 2015 and 2020 reflect future plans for administrative space for City staff.
Revenues, predominately from property taxes, include a one-time benefit for the sale of the Zupancis property.
P3
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I.
Debt Service Fund
32
•As a home rule city, limited by City charter for
general obligation debt issuance to a maximum
issuance of 20% of the City’s assessed value
•20% of the projected 2014 assessed valuation is $252.2 million
•Current outstanding general obligation debt is $11.3 million
•There is no limitation to the amount the City can
enter into for either revenue supported debt or
special district debt.
•Revenue supported debt as of Jan. 1, 2014 equals $38.3 million
P3
2
I.
Debt Service Fund
33
Parks and
Recreation Bonds
$30,435,000
61%
Facility Bonds
$12,395,000
25%
Housing Bonds
$6,415,000
13%
Energy Efficiency
Lease Purchase
$331,123
1%
Outstanding Total Debt = $49,576,123
Paid From
Outstanding
Debt
Principal +
Interest Pmts
Debt Service $37,349,850 $3,300,040
General Fund $331,123 $48,940
Electric Fund $4,835,000 $358,270
Golf Fund $645,150 $135,800
Truscott Fund $4,840,000 $705,000
Marolt Fund $1,575,000 $282,900
Grand Total $49,576,123 $4,977,250
P3
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I.
Debt Service Fund
34
Lease
Revenue
$594,860
18%
Transfers
$2,704,750
82%
2014 Revenues = $3,299,610
Trustee Fees
$8,500
0%
Principal
$2,087,200
63%
Interest
$1,204,340
37%
2014 Expenditures = $3,300,040
P3
4
I.
Employee Benefits
35
•The City of Aspen is partially self-insured for health,
dental and vision coverage for its 286.9 FTEs
•Recent years’ efforts to better control cost escalation
in these benefits have turned into successes
•City pays roughly 85% of premium costs; employee
contributions equate to the remaining 15%
P3
5
I.
Employee Benefits
36
Employer
Premiums
$3,832,000
83%
Employee
Premiums
$707,000
15%
Other
$103,000
2%
2014 Revenues = $4,641,800
Paid Claims
$3,903,000
Contributions to
HSAs
$170,000
Administration
$500,000
Consulting
$92,000
2014 Expenditures = $4,665,000
P3
6
I.
Employee Housing
37
•Prior Council objectives included providing
housing options for roughly 45% of City
employees
•Assist in recruitment / retention of a quality workforce
•Reduce roadway congestion / lessen pollution
•Currently 20 rental and 24 ownership units
•Per FTE charge of $3,375 applied to programs
in an effort to set aside resources for future
development (reduced by 25% from 2013)
P3
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I.
Employee Housing
38
Rental & Other
Income
$86,500
Transfers
$920,000
2014 Revenues = $1,006,500
Operating
Expenses
$144,160
Capital
Expenses
$103,000
Transfers
$75,000
2014 Expenditures = $322,160
P3
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I.
Employee Housing
39
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Employee Housing Fund
Long Range Plan 2010-2023
Fund Balance Revenues Expenditures Reserve (12.5% of Uses)
Revenues reflect "charges" to departments on a per FTE basis to support future housing development needs. Biannual
expenditure spikes mirror placeholder estimates for constructing new housing units every other year.
P3
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Tourism Promotion Fund
40
•Dedicated program began in 2001 with approval of
1.0% lodging tax (50/50 split with transportation)
•Marketing resources were expanded in 2011 through
an additional 1.0% lodging tax
•The City contracts with the Aspen Chamber and
Resort Association for marketing services, including:
•Guest services
•Website hosting and maintenance
•Social media and digital marketing, targeted marketing and groups
•Tracking and reporting occupancy and average daily rate
P4
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I.
Tourism Promotion Fund
41
Projected Fund
Balance
$87,000
3%
Lodging Tax for
Transportation
$637,300
24%
Lodging Tax for
Marketing
$1,912,000
73%
Revenues + Fund Balance =
$2,549,700
Transportation
$659,200
25%
Marketing
$1,977,500
75%
Expenditures = $26,636,700
P4
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I.
Tourism Promotion Fund
42
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Tourism Promotion Fund
Long Range Plan 2010-2023
Fund Balance Revenues Expenditures
The small fund balances shown in recent years reflect revenues exceeding preliminary projections.
The remaining 2013 balance will be distributed to preserve the 25/75 split between ACRA and Transportation.
P4
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