To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
2016 First Quarter Financial Review, Period Ending March 31, 2016
Body
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Executive Summary
With priorities of excellence, dedication and service to the community, financial transparency and fiscal prudence is of paramount importance. At the end of the first quarter of 2016, Castle Rock continues to encounter strong revenue collections combined with responsible expense management. The following pages include discussion and financial summaries by major category for each fund included in the Town’s financial information. While the financial position of the town remains strong, it is generally premature to project annual financial performance for the Town based upon three months of the year, which is reflected in this report. The first quarter budget represented in this report has been adjusted for seasonal revenues and expenses due to the highly seasonal nature of many items. Adjusting the year to date budget for seasonality provides a more accurate reflection of Town financial trends for the first three months of the year. Seasonal adjustments for revenue and expense are based on trending from prior years.
The financial information in this report also includes:
• First and Second 2016 Budget Amendment items as approved by Town Council at the February 2 and April 5, 2016 meetings
• 2015 Unaudited Year End numbers
- These preliminary numbers may change upon completion of the annual independent audit
Total revenues for the Town are about 8% higher, or $2.7 million more, than the budget for the first three months of the year. Much of this is due to sales and use taxes, as well as growth related system development fees.
Townwide expenditures are 24% lower than budget, which is primarily due to the timing of capital expenditures and weather impacts on the timing of projects. Included in these expenditures are several significant projects that are approved for 2016. Among these include:
• North Meadows Extension: The 2016 budget includes roughly $14.6 million to complete this project. A total of $901 thousand has been spent in 2016 toward the completion of this project, which is expected to be finished in the summer.
• Long Term Water: Although the 2016 construction season is just beginning, the Utilities Department is underway with numerous projects including WISE Infrastructure and several system improvements. Among these include construction of additional wells, a diversion structure in Plum Creek to capture additional surface water and additional water treatment capabilities. Nearly $1.3 million has been spent toward completion of these projects in the first quarter.
• Philip S. Miller Park: The construction of additional amenities at Philip S. Miller Park, to include the core plaza, amphitheater and mill house. In addition to these amenities, Parks & Recreation is also underway with the construction of a pedestrian bridge that will connect Philip S. Miller Park and Ridgeline Open Space. This bridge is expected to be completed during the second quarter of the year. The 2016 budget includes about $1.4 million to complete these projects that began in 2015.
While several factors contribute to the overall financial picture of the Town, below are other items of note from the first quarter of 2016:
• Sales tax collections, including revenue received from a prior period, is up by about 5% when compared to January - March 2015
• General Fund operational expenditures are about 9% lower than the amended budget for the first quarter. The status of key expenditure categories compared to the year to date budget is as follows:
- Personnel: under budget by 6%
- Services & Other: under budget by 13%
- Supplies: under budget by 34%
• Development activity remains strong; overall impact fee revenue is almost 2% higher and related building permit revenues are up approximately 23% when compared to the same period in 2015, which is generally attributable to the rate of commercial development.
Proposed Motion
This memo is intended to be for discussion purposes only.
Attachments
Attachment A: 2016 First Quarter Financial Reports
1. Schedule A - General Fund
2. Schedule B - Transportation Fund
3. Schedule C - Parks and Recreation Capital Fund
4. Schedule D - Municipal Facilities Capital Fund
5. Schedule E - Fire Capital Fund
6. Schedule F - Police Capital Fund
7. Schedule G - Transportation Capital Projects Fund
8. Schedule H - General Long Term Planning Fund
9. Schedule I - Water Fund
10. Schedule J - Water Resources Fund
11. Schedule K - Stormwater Fund
12. Schedule L - Wastewater Fund
13. Schedule M - Golf Course Fund
14. Schedule N - Community Center Fund
15. Schedule O - Development Services Fund
16. Schedule P - Employee Benefits Fund
17. Schedule Q - Fleet Services Fund
18. Schedule R - Conservation Trust Fund
19. Schedule S - Philip S. Miller Trust Fund
20. Schedule T - Public Art Fund
21. Schedule U - Economic Development Fund
22. Schedule V - Police Forfeiture Fund
23. Schedule W - Downtown Development TIF Fund
24. Schedule X - Special Events Fund
25. Schedule Y - Townwide Summary
Attachment B: Sales Tax Collections by Category and Geographical Area