To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Ordinance Approving the Second Amendment to the 2019 Budget by Making Supplemental Appropriations for 2019 and Authorizing Changes for Year 2019 (Second Reading - Approved on First Reading on July 2, 2019 by a vote of 7-0)
Body
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The Ordinance was approved on first reading on July 2, 2019 with a vote of 7 to 0 with no changes.
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 review and approval 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.
Supplemental expenditure requests in this proposed Second Amendment to the 2019 Budget total $8,974,651 with revenue adjustments totaling $993,356. Recurring expenditures amounts within these requests total $100,073 with recurring revenues of $30,943. 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 Second Amendment to the 2019 Budget. Following is a summary of requested items.
Discussion
Total requested changes to appropriations referred to in Attachment B increase total expenditures for 2019 by $8,974,651. Major requests included in this budget amendment are described below and are grouped by Town priority.
Ensuring our water future
• Castle Rock Water requests supplemental appropriation of funds in the amount of $3,650,000 for additional work on the Plum Creek Diversion Structure including design and construction of a metal walkway over the diversion structure and updating the amount to accommodate updated project costs.
• Castle Rock Water requests additional funding of $500,000 for the completion of the reuse water line and pump station project at Red Hawk Ridge Golf Course. This project will bring reuse water to the course for irrigation based on updated estimates.
• Castle Rock Water also requests supplemental appropriation of $450,000 for distribution upgrades for the Mount Royal/Oakwood PRV (Pressure Reducing Valve).
• Castle Rock Water requests supplemental appropriation for an additional Utility Locator position to assist with increasing demands. This position will be split between the Water Fund, Stormwater Fund, and Wastewater Fund. These costs will recur annually.
Enhancing our transportation
• The Public Works Department requests supplemental appropriation in the Transportation Capital Fund in the amount of $880,000. These funds will be used to purchase right of way property to accommodate the planned widening of Ridge Road in 2020.
• Public Works also requests supplemental funding in the amount of $65,000 in the Transportation Fund for the purchase of radar speed signs to be installed at various locations throughout town.
Ensuring our public safety
The Town Manager’s Office requests an additional $1,342,324 for construction of an additional building at the Public Safety Training Complex for more classroom space. Funding for this project is shared among the General Fund, Police Capital Fund, Fire Capital Fund, Municipal Facilities Capital Fund, and the General Long Term
amendment.
• Planning Fund. Transfers from these funds to the General Fund are included in this The Facilities Department is requesting $314,723 in the General Long Term Planning Fund to replace the generator at the Police Station and install a main electrical disconnect at Fire Station #154.
• The Police Department requests $61,885 for salary and associated costs in the General Fund and $57,500 for vehicle costs that will be transferred from the Police Capital Fund to the Fleet Fund related to the addition of one School Resource Officer position for the remainder of the year. This position will be half funded by Douglas County School District and corresponding revenue is included in this amendment. These costs, and associated revenue, will recur in future years.
Maintaining strong parks and recreation
• The Community Center Fund requests funding of $289,000 to replace the de-humidifier unit for the Recreation Center Leisure Pool. The current unit is at its end of life and needs to be replaced to ensure a high quality pool environment.
• The Parks and Recreation Department requests an additional $200,000 to complete design work for a new neighborhood park in Cobblestone Ranch that is planned for construction in 2020 and $34,218 for concrete replacement for Metzler Ranch Park.
Other Town funds and initiatives
• The Division of Innovation and Technology requests supplemental appropriation in the amount of $144,262 for audio visual system upgrades in the Town’s Council Chambers. Offsetting revenue is available from the Town’s PEG (Public, Education, and Governmental) cable franchise fees to fund these upgrades.
• The Development Services Department requests supplemental appropriation within the Development Services Enterprise Fund in the amount of $95,800 to accommodate an upgrade to the Town building permit software. This software will provide greater efficiency and functionality for staff and the community.
• The Division of Innovation and Technology requests additional funds of $33,600 in the General Long Term Planning Fund to replace end-of-life security cameras to support employee, facility, citizen, and public safety.
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 second reading.”
Attachments
Attachment A: Ordinance
Attachment B: Requests for Supplemental Appropriation
Attachment C: Estimated Ending Funds Available for 2019