Businesses located within the Local Marketing District boundaries have until June 28 to apply for a Construction Impact Grant funded by the Town of Estes Park to help offset lost revenue due to ongoing road construction in Estes Park.
Businesses also have a second opportunity for direct financial assistance from the Town through a Construction Marketing Matching Grant program.
After considering how Town finances would be affected by the unbudgeted appropriation, the Town Board approved dedicating $400,000, primarily from its general fund for the two grant programs: $200,000 to be used for direct assistance and $200,000 to be used for Marketing Matching Grants up to $2,500.
Both grant programs will be administered by the Estes Chamber of Commerce. Direct Impact Grants will be allocated based on a percentage of net sales loss compared to the total net sales loss by all applicants. Marketing Matching Grants will provide a 75% reimbursement, up to $2,500 for funds that a business spends on marketing between May 1, 2004 and July 31, 2024.
Not present at the June 11 board meeting was Trustee Frank Lancaster and Trustee Marie Cenac recused herself from participation in this decision because she owns a business in the area to be served by these funds. Trustee Mark Igel also owns a business in the affected area but since he wanted to give input in the discussion, he recused himself from eligibility in this program, with approval from town attorney Daniel Kramer.
The Town’s interim finance director, Duane Hudson, discussed the budget reallocation for the grant program, originally set for $300,000 to be administered by the Estes Chamber of Commerce. But the construction is also negatively affecting the Town’s sales tax revenue; there will be a projected 4% decrease over last year in sales tax revenue this year according to Hudson, which translates into a $1.3 million reduction in income and cuts among all the funds supported by sales tax. Sales tax income provides approximately 80% of the Town’s projected General Fund revenue for 2024.
A portion of the fund balance from 2023, or as Hudson called it, “the savings account,” will be used to make up for the projected loss in sales tax revenue, approximately $6 million, he said. “That leaves a projected fund balance of $10 million at the end of 2024.
“That still meets our reserve requirements.”
Twenty-one different funds, each with its own spending requirements and restrictions, make up the Town’s annual budget, explained Hudson. There is approximately $988,000 in reserves that could be redirected upon the Board’s direction, said Town Administrator Travis Machalek.
“While there are more cars coming to Estes Park (this year), there is evidence they are spending less money,” Machalek said. “There is less economic activity in Town today, as compared to last year” based on sales tax revenue to date.
Applications for Direct Assistance will be accepted by the Chamber of Commerce from June 13-28, 2024.
Marketing Matching Grants will be accepted through Aug. 31, 2023.
Other business at Tuesday’s Town Board meeting included approval of the consent agenda and the approval of $175,000 in 25% matching funds for the Community Wildfire Defense Grant using budgeted funds for wildfire mitigation; an additional $10,000 in matching funds will be provided by the Estes Park Watershed Coalition.
A base funding report from the Estes Valley Nonprofit Network was presented by executive director Cato Kraft and Larimer County District Attorney presented the annual report on the Eighth Judicial District of Colorado, in which Estes Park is included.
Local developments in his report include the “not guilty by reason of insanity” plea submitted by Estes Park resident Jacobo Mendoza who has been charged with 17 felony counts including attempted murder, sexual assault, kidnapping, and sexual exploitation (the defendant is presumed innocent until proven guilty beyond a reasonable doubt).
Agendas, board packets, and minutes of the Town of Estes Park official meetings can be found here.
The next Town Board meeting will be held June 25 at 7 p.m.