To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Kevin Tilson, Director of Castle Rock Downtown Alliance
Title
Resolution Approving the Proposed First Amendment to the 2022 Fiscal Year Budget for the Castle Rock Downtown Development Authority
Body
________________________________________________________________________________
Executive Summary
DDA Staff has prepared a budget amendment to account for increased expenses related to a number of DDA Board, Town Council and staff objectives and anticipated, necessary expenses.
This 2022 DDA Budget First Amendment includes the following items:
• Office Admin. ($15,000): As property values (assessed values) have increased in Downtown, so has property tax collections, and in turn so the DDA Fees to the Douglas County Treasurer. Staff is estimating $40,000 in fees this year, in addition to our other Office Admin. expenses.
• Trolley ($5,000): We are planning to operate the trolley this year on Tuesday and Fridays in July and Mondays and Tuesdays in December based on DDA Board and community feedback.
• Façade Grants/Downtown Improvement ($20,000): In Dec. of 2021, staff received feedback form Council to increase support for smaller projects in Downtown, like the Perry St. Social District. As we have met with business and property owners, we have received indication from at least 6 business/property owners of their intention to apply for a façade grant this year; all supporting smaller projects. In support of this focus on smaller projects, the DDA has directed staff to prepare a budget amendment to support a greater number of façade grant applications. The DDA typically budgets for 2 applications, and in many years have only had 1 or 0 applications. This year the DDA would like to support and encourage this increased interest with a budget amendment to accommodate up to 6 façade grant applications. In addition, we are paying for half of the streetscape project out of the DDA Operating Fund.
• Flower Box and Patio ($110,000): Costs for flowers have gone up, and now that the DDA is doing a spring, fall and winter planting we believe our expenses will be higher than estimated 8 months ago. In addition, our watering service provider was unable to provide the service to Downtown Castle Rock this year, and in order to find a new provider, we had to increase our commitment and expenditure in this category. In addition, we have been saving up money to make some much needed repairs on DDA patios. The Town received a grant to help pay for some concrete work at patios in Downtown, and the DDA may need to use the Operating Fund to match these dollars. One of the DDA patios was hit by a car and the cost of repairs is an unanticipated expense, and 2 of the patios are being rebuilt with a more durable material. We have 7 DDA Patios and 5 are getting upgrades this year using dollars from our reserves. This amendment allows us to spend those reserve dollars.
• Contingency ($20,000): With several additional projects (facades, patios, flowerboxes), staff is planning ahead for any increased or unforeseen expenses. The process for a budget amendment can sometimes take multiple months and late in the year it would be difficult to process an amendment with both the DDA Board and Town Council. In addition, our office is improving our benefits to stay competitive, and this contingency line item could cover any increased costs associated with health care or retirement provider fees, etc.
The total budget amendment amount is $170,000.
Proposed Motion
“I move to approve the 2022 DDA Budget First Amendment as presented.”
Attachments:
2022 DDA Budget First Amendment Spreadsheet.