To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Ordinance Approving the Third Amendment to the 2024 Fiscal Year Budget by Making Supplemental Appropriations for the 2024 Fiscal Year (Second Reading - Approved on First Reading on October 15, 2024 by a vote 6-0)
Body
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Executive Summary
The charter for the Town of Castle Rock allows for amendments to budget appropriations, including requests for supplemental appropriations that require approval by ordinance (Section 9.10). The Finance Department prepares budget amendments for Town Council consideration based on needs that may arise throughout the year. The number of budget amendments varies by year depending on needs/opportunities as they are identified. The chart below shows supplemental appropriations for the last five years.
Supplemental expenditure requests in this proposed Third Amendment to the 2024 Budget total $4,271,821. Also, an additional $3,457,757 of revenue is being requested. Descriptions of requested items are included in Attachment B. The Finance Department has reviewed all requests and has determined that sufficient funding is available to accommodate this proposed Third Amendment to the 2024 Budget. Following is a summary of requested items.
Discussion
Total requested changes to appropriations referred to in Attachment B increase total expenditures for 2024 by $4,271,821. Major requests included in this budget amendment are described below and are grouped by Town priority.
Secure our water future
• Castle Rock Water requests supplemental appropriation of funds totaling $2,097,600 to continue WISE water offers through the end of 2024 to provide the Town with additional renewable water supplies.
• Castle Rock Water requests supplemental appropriation of funds totaling $642,000 for Prairie Hawk PRV project and emergency pipeline repair work.
• Castle Rock Water requests supplemental appropriation of funds totaling $455,000 for additional expenses due to the success of the ColoradoScape rebate program.
• Castle Rock Water requests supplemental appropriation of funds totaling $407,000 for water rights legal firm due to unanticipated expenses associated with Rangeview’s water court application.
Maintain strong Parks and Recreation
• The Parks and Recreation Department requests to recognize $2,673,700 additional Intergovernmental revenue in the Conservation Trust Fund to align the budget with a planned Douglas County Shareback request to be presented to DC Parks Advisory Board in early October.
• The Parks and Recreation Department requests a supplemental appropriation of $135,000 in the Conservation Trust Fund for additional funds needed to complete the Centennial Park project.
• The Parks and Recreation Department requests a reduction in the scheduled transfer into Parks Capital from the Conservation Trust Fund (CTF) of ($2,000,000) due to part of the loan being paid back early in 2023. This is a decrease in expense to CTF and a decrease in revenue in the Parks Capital Fund.
• The Parks and Recreation Department is requesting supplemental appropriation of $180,000 for the Golf Personnel budget for Seasonal and Regular staff in the Operations, Food & Beverage and Facility Maintenance Divisions. This increase aligns the expenditure budget with projected expense due to increased use of the Golf Course, and is offset with a projected increase in revenue.
• The Parks and Recreation Department is requesting supplemental appropriation of $150,000 for the Golf Concession Merchandise budget. This increase aligns the expenditure budget with projected expense due to increased sale of pro-shop merchandise at the Golf Course, and is offset with a projected increase in revenue.
• The Parks and Recreation Department is requesting supplemental appropriation of $150,000 for the Operating Supplies budget in the Golf Facility Maintenance division. This increase aligns the expenditure budget with projected expense due to increased maintenance needs at the Golf Course, and is offset with a projected increase in revenue.
• The Parks and Recreation Department is requesting supplemental appropriation of $993,000 for part-time personnel in the Community Center Cultural Arts, Fitness, Operations, Special Programs, Therapeutic Recreation and Youth divisions. This increase aligns the expenditure budget with projected expense due to increased participation in programs, and is offset with a projected increase in revenue.
• The Parks and Recreation Department is requesting supplemental appropriation of $125,000 for Repair & Maintenance in the Aquatics division at the Recreation Center due to increased repair costs for the building, equipment and pumps, and is offset with a projected increase in revenue.
• The Parks and Recreation Department is requesting supplemental appropriation of $101,000 for Cantril Operations, this is partially offset with an increase in revenue.
• The Parks and Recreation Department is requesting supplemental appropriation of $87,000 for supplies in the Operations and Youth divisions. This increase aligns the expenditure budget with actual expenses, and is offset with a projected increase in revenue.
Enhancing our transportation
• The Public Works Department is requesting supplemental appropriation of $422,555 in the Transportation Planning & Traffic Engineering division to fund purchase orders from 2023 that were not included in the first budget amendment. The purchase orders include funding for the Traffic forecast update, Downtown Wayfinding plan, and the Safe Streets and Roads for All (SS4A) Grant project.
• The Public Works Department is requesting supplemental appropriation of $150,450 in the Fleet Fund for the purchase of two new vehicles for Police funded by Douglas County School District.
• The Public Works Department requests supplemental appropriation in the Fleet Fund in the amount of $100,000 for their Parts budget. Parts are ordered to repair and maintain Town vehicles and the cost is reimbursed to Fleet through their repair and maintenance revenue account, the revenue budget is being increased to offset this.
• The Public Works Department is requesting supplemental appropriation of $76,869 in the Fleet Fund for the purchase of one new vehicle for Police funded by Aspen View.
Ensure outstanding public safety
• The Police Department is requesting supplemental appropriation of $545,000 for a transfer out from PD capital for a one-time expense related to the PD basement remodel.
• The Police Department requests supplemental appropriation of $153,738 for a School Resource Officer’s vehicle. These expenses are being reimbursed from Douglas County School District and Aspen View.
Other Town funds and initiatives
• The Town Manager’s Office requests to recognize additional revenue of $545,000 in the TABOR fund for a transfer in from PD capital for a one-time TABOR expense related to the PD basement remodel.
• The Finance Department is requesting a reduction of ($699,391) in the budget to capacity line related to the Downtown Development Authority TIF fund.
The additional amount of expenditures requested in this amendment are shown below and are grouped by Town fund.
Budget Impact
As presented in Attachment C, the Finance Department has ensured that funding is available through either revenues and/or fund balance for requested items, maintaining adequate reserves within each fund.
Staff Recommendation
Staff recommends that Town Council approve the Ordinance.
Proposed Motion
I move to approve on the Ordinance as introduced by title, on first reading.
Alternative Motions
“I move to approve the resolution as introduced by title, with the following conditions: (list conditions).
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Attachment A: Ordinance
Attachment B: Requests for Supplemental Appropriation
Attachment C: Estimated Ending Funds Available for 2024