TOWN OF MONUMENT
MINUTES OF THE BOARD OF TRUSTEES
SPECIAL MEETING
WEDNESDAY, OCTOBER 4, 2000
6:00 P.M. Board of Trustees Special Meeting
Mayor Tenney called this Special Meeting of the Board of Trustees of the Town of Monument, Colorado, to Order at 6:00 P.M. at the Town Hall. The Following Board Members and Staff were Present:
Board of Trustees:
Absent from Meeting: Trustee Leibovitz
Town Staff:
1. Rick Sonnenburg, Town Manager
2. Michael Shoback, Clerk! Treasurer
Also Present were:
• John Dominowski
• Ernie Biggs
• Erin Randolph
• Betty Konarski
• Rick Tudor
• Al Sharon
New Assistant Town Manager I Town Planner: Michael Davenport
Mr. Sonnenburg advised the Board that the Assistant Town Manager / Town Planner had been hired and was expected to begin work on Thursday, October 5, 2000. His name is Michael Davenport.
Mayor Tenney suggested that the Planning Steering Committee Meeting scheduled for Monday, October 9, 2000 be rescheduled to permit Mr. Davenport some time to become familiar with his new position and Town issues.
Work Session for 2001 Town Budget
Mayor Tenney opened the Meeting and asked the Board for their input regarding Capital Items which should be considered in the Budget Process. He offered Three Initial Capital Projects to begin the List: 1) A New Public Works Yard ($500,000), 2) A New and Expanded Town Hall ($1,500,000), 3) A New Police Station ($1,000,000). Other items suggested for the Capital List were A) New Carpeting for the Town Hall Auditorium, B) Adding Street Lights to existing areas of the Town, C) Requiring Developers to Install Street Lights in New Developments, and D) An Expansion to the Cemetery. The Town Clerk I Treasurer was asked to provide a Capital Projects Status Report as to what Budget -2000 Capital items has been Spent and which have not. The board directed that all Committees be requested for Input about Budget 2001 Capital Items. The Public Works Committee was directed to study and provide input into the Two Street Light Issues mentioned earlier in the Meeting.
Mayor Tenney requested Board input regarding the Concept of a Water Rate Reduction from $4.99 to $4.00 for the First 10,000 Gallons per Month. The Board consensus was to wait on the Town Manager’s Budget then make a decision on this Issue.
Mayor Tenney requested Board input regarding the concept of assigning the Funds generated by the 7.6 Mills of Property Tax to a Building Replacement Fund and the Funds from Two Additional Mills to the Cemetery Expansion. The Mayor suggested that the mill levy could be raised from 7.607 mills to a maximum of 10 mills. There was not a Board consensus to Implement this concept.
Planning Commission: Betty Konarski
Planning Commission Chair Betty Konarski was in Attendance to present the Commission’s Request for $2,615 for Educational Materials from the Planning Commission. The Board of Trustees was provided with a memo dated October 2, 2000 itemizing this request for funds. The Board of Trustees agreed to place $3,000 in the Town Budget for 2001 for this Purpose.
Monument Lake Dam:
Mr. Shoback advised the Board on the status of financing for the $1,000,000 to $1,300,000 repair and replacement costs, (the Town’s portion). El Paso County has committed to pay their $1,000,000 share of the total cost, ($2,000,000 to $2,300,000). He indicated that in his recent discussion with Mr. Bill Green of the Colorado Water Conservation Board Mr. Green had complimented the Town on the way it had restructured the Water Fund into an Enterprise Fund under Tabor and the way it was proposing to fund this debt with the use of Water Revenues. Mr. Green indicated that he felt very confident that the Town would receive financing for this project with no problem.
Mr. Shoback advised the Board that Mr. Green indicated that bond rates had been increasing and that Mr. Green felt the Town could obtain a loan at a 5% - 5.25% rate. Mr. Shoback provided the Board with an indication of the debt service costs for a $1,000,000 loan using three different terms (10 years, 20 years and 30 years); and using three different interest rates, (5%, 5.5% and 6%). He also provided information at the various loan and interest rate levels on the projected Net Income expected to be generated by Water Sales; and the excess of income over the debt service.
The Board requested information concerning the existing Debt Service for the Town and Mr. Shoback provided copies to the Board of the Debt Service for FY 1997, FY 1998, FY 1999 and FY 2000. The Board indicated that they may wish to payoff some debt and commented that some existing debt would not be paid off until 2019 and 2025.
Trustee Schutz inquired on what percentage of the General Sales Tax is allocated to the Town’s Debt Service. Mr. Shoback advised that by establishing the Water Fund as an Enterprise Fund under TABOR allowed the Town to transfer the existing debt from the Water Fund to the General Fund; and use a portion of the General Sales Tax to fund the Debt Service. This created a debt free Water Fund which will facilitate the financing for the Monument Lake Dam repair and replacement. Mr. Shoback advised that one third of the Net General Sales Tax received by the Town, (after payment of the Tn View Metro share generated from their District boundaries), is required to be used for Capital Improvements in the Town’s Water System. Since these past improvements were paid for by issuing debt, these tax monies could be used to retire the debt. Mr. Shoback also advised that the Town Attorney concurred in this opinion. This NET General Sales Tax received by the Town was approximately $100,000 more than the total existing Debt Service Cost in FY 2000; and that as Principal is paid off future Debt Service Costs would decline each year.
Financial Information:
Mayor Tenney asked Clerk / Treasurer Mike Shoback to provide a Brief Overview of the Expectations for the Larger Revenue Categories in the 2001 Budget. Mr. Shoback did so.
Mayor Tenney suggested that Town Planning activities be combined in the Legislative and Administrative function of the General Fund. Mr. Shoback advised that the Board approved a change in the Planning function from a Department of the General Fund to a Special Revenue Fund when they approved the FY 2000 Budget. This was done to provide visibility to the Board on the operating results of the Town Planning activities, (costs vs, revenues). Subsequently during FY 2000 the Board directed the Treasurer to eliminate the Special Revenue Fund for the Planning function and again report it as a Department of the General Fund . Mr. Shoback advised the Board that they would lose some visibility of operating results in the Planning function of the Town by combining this function within the Legislative and Administrative Department of the General Fund ; and that he would do this if this were the wishes of the Board. The Board decided to leave the Town’s Planning function as a separate Department of the General Fund at this time.
Mayor Tenney asked Town Manager Rick Sonnenburg if he was ready to discuss the Major Elements of the Operating Side of the Budget. Mr. Sonnenburg stated he was not ready in that he had not yet met with all of his Department Heads.
Mayor Tenney asked if there were any comments from the Audience regarding the 2001 Budget. Mr. John Dominowski asked that the Funding for Third Street Drainage in the 2000 Budget be rolled into the 2001 Budget and that more Funds be added to this Project in 2001. The Board stated they would feel more comfortable doing this after a Consultant Studied the Project and Reported back in December or January. There were no other Citizen Comments.
Executive Session:
At 7:52 P.M. Mayor Tenney asked for a Motion to go into Executive Session. There was a Motion by Trustee Schutz, Seconded by Trustee Wilcox, to go into Executive Session to discuss Legal Issues Regarding Land Acquisition and Personnel Matters. The motion passed unanimously.
Mr. John Dominowski objected and requested that the Board be more specific on the purpose for adjourning to Executive Session. He noted that the Town Attorney was not present and objected to the Executive Session. Mayor Tenney responded that Mr. Sonnenburg had been in contact with the Town Attorney.
Erin Randolph suggested that the Board should be more specific in publicly noting what they will discuss in Executive Session. The Board disagreed.
At 7:55 P.M. the Board adjourned to Executive Session.
At 8:49 P.M. the Board came out of Executive Session.
Mayor Tenney asked if there was any other Business before the Board. There was none. There was a Motion by Trustee Delaney, Seconded by Trustee Smith, to Adjourn the Meeting. The Motion passed Unanimously at 8:50 P.M.
Respectfully Submitted,
Mike Shobeck, Town Clerk / Treasurer