To: Honorable Mayor and Members of Town Council
From: David L. Corliss, Town Manager
Title
Preliminary 2020 Unaudited Yearend Financial Review
Body
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Executive Summary
The following discussion and financial information reflect the positive financial condition of the Town and highlight the continued focus on strategic priorities established by Town Council. Financial reporting helps to keep departments apprised of financial conditions that could trigger short or long-term budget adjustments and is completed through a team effort between Finance, Department Heads and staff.
As demonstrated by the following information, departments continue effective and responsible management of the Town’s finances while working towards accomplishing community priorities. 2020 presented unique challenges, and Town departments were responsive to economic uncertainty surrounding the COVID-19 pandemic. Due to conservative financial planning, proactive measures taken by Town staff, better than anticipated sales tax activity, and CARES Act funding, the overall financial position of the Town remains positive through December 31, 2020. Please note that 2020 actuals are considered preliminary and subject to change until the 2020 annual audit is completed by Accounting. After the audit is completed, the 2020 Comprehensive Annual Financial Report will be presented to Council in June of 2021.
Some highlights contained in this report include:
• Town Sales tax revenue collections were up 7.6 percent compared to 2019
• General Fund expenditures are 10 percent under budget largely due to position vacancies and COVID-related reductions and deferrals
• Capital expenditures make up 42 percent or $139 million of the amended 2020 budget for the Town; of this, $64 million was spent in 2020
• The budget carryforward of $49,824,231 into 2021, for ongoing capital projects, occurred in March. View ongoing projects and capital carryforward amounts at:
<https://castlerock-co.legistar.com/LegislationDetail.aspx?ID=4851777&GUID=B56C8E85-0E2D-44F5-BD42-310EF4F33FE7>
• About $3.5 million in CARES Act funding was received by the Town and used for small business grants, Water residential and business assistance, personal protective equipment, and other COVID-19 costs to promote safety
• Operating expenses in many areas reflect reduced 2020 spending as a result of COVID-19 budget reductions, economic uncertainty, and changes to levels of service
• In 2020, permits for 1,086 single family and 293 multi-family units as well as 59 commercial projects were issued
The financial information in this report includes:
• Highlights of 2020 preliminary revenue and expenditures including financial summaries by major category for each Town fund
• Status updates related to community priorities
• Discussion and financial summaries by major category for each fund
• Incorporation of the first, second, and third amendments to the 2020 budget as approved by Town Council
• Discussion of COVID related impacts and budget adjustments
Proposed Motion
This memo is for discussion purposes only.
Attachments
Attachment A: 2020 Yearend Financial Reports
• Schedule A - General Fund
• Schedule B - Development Services Fund
• Schedule C - Water Fund
• Schedule D - Water Resources Fund
• Schedule E - Stormwater Fund
• Schedule F - Wastewater Fund
• Schedule G - Transportation Fund
• Schedule H - Transportation Capital Fund
• Schedule I - Fleet Services Fund
• Schedule J - Fire Capital Fund
• Schedule K - Police Capital Fund
• Schedule L - Police Forfeiture Fund
• Schedule M - Parks and Recreation Capital Fund
• Schedule N - Conservation Trust Fund
• Schedule O - Community Center Fund
• Schedule P - Golf Course Fund
• Schedule Q - Economic Development Fund
• Schedule R - Downtown Development TIF Fund
• Schedule S - Philip S. Miller Trust Fund
• Schedule T - Public Art Fund
• Schedule U - Municipal Facilities Capital Fund
• Schedule V - General Long Term Planning Fund
• Schedule W - Employee Benefits Fund
• Schedule X - Parking Fund
• Schedule Y - Townwide Summary
Attachment B: Sales Tax Collections by Category and Geographical Area
Attachment C: Investment Summary