To: Honorable Mayor and Members of Town Council
Thru: David L. Corliss, Town Manager
From: Shannon Eklund, Executive Assistant
Title
Presentation: 2025 Service Contract Funding Requests
Body
________________________________________________________________________________
Executive Summary
Each year, Town Council reviews requests from service organizations for funding their operations, which include community events and services. Attached are applications from the organizations. The Historical Society/Museum, Economic Development Council, and the Senior Center are each requesting funding increases for 2025. The Downtown Development Authority amount increases according to the annual mill levy revenue calculation. The remainder of the organizations are requesting the same funding level as last year. Funding to accommodate these service contract requests is included in the 2025 Proposed Budget:
|
Organization |
2025 Request |
2024 Funds |
2025 Funding Source |
|
Castle Rock Chamber of Commerce |
$133,000 |
$133,000 |
General Fund |
|
Castle Rock Downtown Development Authority |
Approx. $225,000 |
$217,544 |
ED Fund |
|
Castle Rock Downtown Merchants Association |
$97,850 |
$97,850 |
ED Fund |
|
Castle Rock Economic Development Council |
$247,927 |
$240,709 |
ED Fund |
|
Castle Rock Historical Society/Museum |
$98,700 |
$92,200 |
Split between General Fund and PS Miller Trust Fund |
|
Castle Rock Senior Center |
$170,000 |
$150,000 |
PS Miller Trust Fund ($80k) and Transportation Fund ($90k) |
|
Douglas County Community Foundation |
$17,857 |
$17,857 |
General Fund |
|
Douglas County Housing Partnership |
$35,000 |
$35,000 |
General Fund |
|
Douglas County Youth Initiative |
$19,800 |
$19,800 |
General Fund |
|
TOTAL: |
$1,045,134 |
$1,003,960 |
|
More detailed summaries of the applications follow this overview. In addition, representatives from each organization will make brief presentations at this Town Council meeting.
The Town also provides in-kind support for Chamber of Commerce and Downtown Merchants Association events throughout the year. This support is provided in addition to the direct funding shown above. More information about this in-kind support can be found in Attachment A.
Discussion
Each year, the Town contracts with various community organizations for services that the Town might otherwise directly provide the community. By contracting through these organizations, the Town leverages its funds with other dollars. The organizations also bring volunteer support, expertise and other resources to the table, which result in the Town receiving a better return on investment and level of service than if the Town provided the services directly.
This section summarizes each organization’s 2025 funding application in these areas:
• The amount of Town funds requested
• The services to be provided
• The anticipated outcomes of the services
• The leveraging of Town funds with other dollars and volunteer resources
• If applicable, the amount of additional funds requested this year, and an explanation of the request
Castle Rock Chamber of Commerce
Amount of Town funds requested: $133,000 (from the General Fund)
Services to be provided include, but are not limited to, the following:
Events: Artfest, the Douglas County fair parade and Starlighting
Programs: eXcelerate business development, Leadership Douglas County and community marketing
Administration: Event/program staffing and operations
Visitor Center: Staffed 9 am to 5 pm Monday-Friday, excluding holidays
Anticipated outcomes of services:
Positive community image, maintenance of community character and small business success.
How Town funds will be leveraged with other dollars and volunteer resources:
The Chamber’s main source of income is events/sponsorships, followed by membership investment and the service contract with the Town. The amount requested for 2024 would represent about 13% of the Chamber’s total anticipated annual revenues. Volunteers provide services valued at nearly $34,000, in conjunction with several Chamber initiatives, including business consulting, monthly class trainings and Leadership Douglas County. The 2025 request is the same amount as the approved 2024 service contract.
Castle Rock Downtown Development Authority (DDA)
Amount of Town funds requested: Approx. $225,000 (from the Economic Development Fund)
Services to be provided include, but are not limited to, the following:
Façade improvement, flower box and patio, and downtown trolley and carriage ride programs
Professional services, marketing and public website
Anticipated outcomes of services:
Increased economic activity; charm and pedestrian activity; and sales and traffic within Downtown.
How Town funds will be leveraged with other dollars:
The requested contribution is a match of the revenue generated through the DDA’s 3 mill property tax levy. Other revenues include specific ownership tax and program revenue.
This year’s requested amount is an amount up to $225,000. The preliminary mill levy information was not available at the time of application, however the DDA requests a continuation of the Town’s annual match of the DDA’s mill levy revenue within this range. Valuation information will be finalized toward the end of 2024, which will determine the actual amount of the matching funds. The mill levy match amount is determined by actual valuation information provided by the Douglas County Assessor.
In 2024, the actual amount of matching funds was $217,544, based on the actual Douglas County Assessor valuation. This DDA mill levy match is used to support DDA operations, while other funding sources are available for additional DDA activities. More information about the DDA’s finance structure is available in Attachment B.
Downtown Merchants Association (DMA)
Amount of Town funds requested: $97,850 (from the Economic Development Fund)
Services to be provided include, but are not limited to, the following:
Free annual events for the public including a Spring Kickoff Concert, Car Show Kickoff Concert and Car Show, Music in the Park (4-8 events), Boots & Brews, Oktoberfest, and Fangtastic Festival; and staff to support these events
Anticipated outcomes of services:
Provision of outstanding cultural and entertainment opportunities; maintaining a high quality of life as a safe, family friendly community; preserving and enhancing history and heritage through a vibrant Downtown; and reinforcing a strong sense of community and small-town character.
How Town funds will be leveraged with other dollars:
The requested contribution would represent about 22% of the DMA’s total budgeted income for 2025. For every $1 contributed from the Town, the DMA generates an additional $3 to pay for community events and activities in Downtown. These events generate economic activity, which supports Downtown businesses and generates sales tax. Additional sources of DMA funding are sponsorships and vendors ($100,000) and beverage sales ($225,000). The 2025 request is the same amount as the approved 2024 service contract.
Castle Rock Economic Development Council (EDC)
Amount of Town funds requested: $247,927 (from the Economic Development Fund)
Services to be provided include, but are not limited to the following:
Attracting developers and primary employers to Castle Rock
Growing Castle Rock’s existing primary employers
Developing and recruiting retail businesses
Creating a positive business environment
Counseling the Town on economic development agreements
Anticipated outcomes of services:
Primary employers create jobs and bring new dollars to the community’s economy. Strong retail presence strengthens the Town’s tax base, enhancing its ability to provide core services.
How Town funds will be leveraged with other dollars:
Town investment at the requested level would represent about 27% of the EDC’s projected revenue for 2025, which also includes as major revenue sources private sector investment ($305,000) and Downtown Development Authority/Downtown Merchants Association reimbursements for services ($257,500).
Additional funds requested this year:
Castle Rock EDC’s 2025 request of $247,927 represents a 2.9% increase over the 2024 contract to account for inflationary increases in rent and operating expenses over the past year.
Castle Rock Historical Society/Museum
Amount of Town funds requested: $98,700 (split between General Fund and PS Miller Trust Fund)
Services to be provided include, but are not limited to, the following:
Preserve the history of the Castle Rock area
Hold open the Castle Rock Museum four days per week, five hours per day, excluding holidays, and provide exhibits at the museum
Provide historical tours and presentations
Assist economic development by presenting the development of Castle Rock from founding to present and encouraging the growth of local businesses while preserving the small-town atmosphere
Anticipated outcomes of services:
Education on the tremendous and varied history of the Town. Provision of a sense of place, and a destination, for the community and visitors.
How Town funds will be leveraged with other dollars and volunteer resources:
The requested contribution represents about 88% of the Historical Society’s projected revenue for 2025. Fundraising is expected to bring in $7,500. Volunteers run tours and guide visitors, donate artifacts and perform restoration duties at the museum.
Additional funds requested this year:
This year’s request represents a $6,500 increase over last year’s funding. In 2025, the Castle Rock Historical Society and Museum plans to continue highlighting our history by preserving material and oral history, providing permanent exhibits of artifacts, curating traveling and rotating exhibits, hosting historical tours, and participating in local community activities such as the Car Show, Senior Center Craft Fair and others.
Castle Rock Senior Activity Center
Amount of Town funds requested: $80,000 for operations (from the PS Miller Trust Fund) and $90,000 for transportation services (from the Transportation Fund)
Services to be provided include, but are not limited to, the following:
Transportation services
Educational, social, health and recreational programs and services and volunteer opportunities for seniors
Anticipated outcomes of services:
Provision of educational, social, health and recreational programs for seniors.
How Town funds will be leveraged with other dollars and volunteer resources:
A $170,000 contribution from the Town (including the $90,000 for transportation) would represent about 18% of the Senior Center’s projected revenues for 2025. Grants ($285,000), fundraising ($140,000), activity income ($110,000) and membership fees ($46,000) represent other significant revenue sources. In 2023, more than 250 volunteers served the center, totaling nearly 23,000 volunteer hours.
Additional funds requested this year:
Castle Rock Senior Activity Center’s 2025 request of $170,000 represents a 2.9% increase over the 2024 contract to account for increased transportation ridership along with funding cuts from grant sources. The request identifies a 20%+ increase in new transportation riders in the first half of 2024 over 2023, and a 30% decrease in funding from State/County sources.
Douglas County Community Foundation
Amount of Town funds requested: $17,857 (from the General Fund)
Services to be provided include, but are not limited to, the following:
Grant Making
Nonprofit Participation
Colorado Gives Day
Private Donations
Anticipated outcomes of services:
Enriching lives within our community by providing leadership and responsible stewardship of philanthropic contributions through grants, donations and supporting local nonprofit organizations.
How Town funds will be leveraged with other dollars:
About 17% of the DCCF’s projected 2025 revenue would come from corporate and individual gifts and foundations. Event income is expected to generate $250,000. Contributions from Douglas County government jurisdictions - the Town, Douglas County, Lone Tree and Parker - represent about 28% of DCCF’s overall funding, used primarily for their administrative expenses. The 2025 request is the same amount as the approved 2024 service contract.
Douglas County Housing Partnership
Amount of Town funds requested: $35,000 (from the General Fund)
Services to be provided include, but are not limited to, the following:
Home ownership and homebuyer education classes
Foreclosure mitigation and counseling
Reverse mortgage counseling
Rental housing
Anticipated outcomes of services:
An economically thriving community through preserving, providing and developing housing.
How Town funds will be leveraged with other dollars:
About 60% of the Housing Partnership’s projected 2024 revenue would come from various program fees and real estate revenue. Participating jurisdictions - the Town of Castle Rock, Douglas County, Lone Tree and Parker - are expected to contribute about 40%, or $200,000 in all. The 2025 request is the same amount as the approved 2024 service contract.
Douglas County Youth Initiative
Amount of Town funds requested: $19,800 (from the General Fund)
Services to be provided include, but are not limited to, the following:
WrapAround services
Events, including Youth Congress and the Outstanding Youth Awards
Associated expenses - cell phones, mileage, training, supplies, misc.
Anticipated outcomes of services:
A community in which youth are involved, valued, productive, protected and healthy.
How Town funds will be leveraged with other dollars:
All of the Youth Initiative’s revenue comes from participating jurisdictions: Town of Castle Rock, the City of Lone Tree, Douglas County, the Douglas County Libraries, the Douglas County School District, the Department of Human Services, the Highlands Ranch Metro District and the Town of Parker. The 2025 request is the same amount as the approved 2024 service contract.
Financial Impact
Overall, the organizations’ requests reflect an increase of $41,174. The combined total requests for all service contracts for 2025 is $1,045,134, which is 4.1% more than overall 2024 funding. Funding history and 2025 requests are shown in the chart provided in the executive summary. Funding to accommodate these service contract requests is included in the 2025 Budget.
Staff Recommendation
After listening to the service organizations representatives’ presentations for each proposal, staff recommends Council consider approving the service contract requests as presented. Based on Council’s direction, staff will prepare the 2025 Service Contracts for the Town Manager to administer and execute.
Proposed Motion
“I move to direct the Town Manager to execute the 2025 Service Contracts with the service organizations for the funding amounts as requested.”
“I move to direct the Town Manager to execute the 2025 Service Contracts with the service organizations, with the following changes: (list changes).”
“I move to direct staff to continue this item to the Council Meeting on (date) to allow additional time to (list information needed).”
Attachments
Attachment A: Castle Rock Chamber of Commerce Funding Request
Attachment B: Castle Rock Downtown Development Authority Funding Request
Attachment C: Castle Rock Downtown Merchants Association Funding Request
Attachment D: Castle Rock Economic Development Council Funding Request
Attachment E: Castle Rock Historical Society/Museum Funding Request
Attachment F: Castle Rock Senior Center Funding Request
Attachment G: Douglas County Community Foundation Funding Request
Attachment H: Douglas County Housing Partnership Funding Request
Attachment I: Douglas County Youth Initiative Funding Request
Attachment J: Summary of Service Organization Contract Amounts from 2010-2025