To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Ordinance Approving Supplemental Appropriations for the 2025 Budget and the Third Amendment to the 2025 Budget (Second Reading - Approved on First Reading on October 21, 2025, by a vote 7-0)
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 2025 Budget total $11,555,426. Also, an additional $2,983,326 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 2025 Budget. Following is a summary of requested items.
Discussion
Total requested changes to appropriations referred to in Attachment B increase total expenditures for 2025 by $11,555,426. Major requests included in this budget amendment are described below and are grouped by Town priority.
Secure our water future
• Castle Rock Water is requesting supplemental appropriation totaling $465,000 to cover repairs and equipment for Wells 31, 45, and 221.
• Castle Rock Water is requesting supplemental appropriation totaling $2,139,000 to purchase 250-acre feet of WISE subscription and related infrastructure capacity from the Pinery.
• Castle Rock Water is requesting additional appropriation of $450,000 to cover increased expenses related to the success of the ColoradoScape program for residential and commercial (HOA) customers.
• Castle Rock Water is requesting an additional $3,406,164 related to Council approved items for the reservoir project, which include $2.3 million for the PCT property purchase, additional contingency funds and an amendment to construction oversight.
Enhancing our transportation
• The Public Works Department is requesting additional appropriation of $1,054,000 in the Transportation Capital Fund for expenses related to the 5th Street Widening project.
Maintain strong Parks and Recreation
• The Parks and Recreation Department is requesting supplemental appropriation of $100,000 in the General Fund to increase the transfer from the General Fund to the PS Miller Trust Fund for Town-wide special events.
• The Parks and Recreation Department is requesting supplemental appropriation of $58,108 in the General Fund for improvements made to Philip S. Miller Park that is offset by deferred revenue from the zip line lease agreement.
• The Parks and Recreation Department is requesting supplemental appropriation of $12,443 in the Conservation Trust Fund personnel budget for a new full-time Parks and Recreation Permit Specialist that will be funded 50% from the Community Center Fund and 50% from Field Rental Fees.
• The Parks and Recreation Department is requesting supplemental appropriation of $1,172,350 in the Parks and Recreation Capital Fund to accommodate the first debt service payment for the Sports Development Center COP.
• The Parks and Recreation Department is requesting supplemental appropriation of $300,218 in the Golf Fund personnel budget for seasonal, part-time and regular staff and related benefits in the Administration, Operations, Food & Beverage, and Facility Maintenance Divisions. This request is offset by an increase in revenue.
• The Parks and Recreation Department is requesting supplemental appropriation of $25,000 in the Facility Maintenance Division for additional operating supplies. This request is offset by an increase in revenue.
• The Parks and Recreation Department is requesting supplemental appropriation of $373,143 in the Community Center Fund personnel budget for Town paid benefits related to regular, seasonal and part-time staff in the Athletics, Aquatics, Operations and Youth Divisions.
Other Town funds and initiatives
• The Human Resources Division is requesting supplemental appropriation of $2,000,000 in the Employee Benefits Fund to cover unforeseen claim expenses through the end of 2025. This request is partially offset by an increase in revenue.
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 as written.
Proposed Motion
I move to approve on the Ordinance as introduced by title, on first reading.
Alternative Motions
“I move to approve the Ordinance 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 2025