To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Ordinance Approving the Second Amendment to the 2022 Fiscal Year Budget by Making Supplemental Appropriations for the 2022 Fiscal Year (Second Reading - Approved on First Reading on July 19, 2022, 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 and the budget amendments approved to date in 2022.
Supplemental expenditure requests in this proposed Second Amendment to the 2022 Budget total $19,128,116. Also, an additional $20,437,317 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 Second Amendment to the 2022 Budget. Following is a summary of requested items.
Discussion
Total requested changes to appropriations referred to in Attachment B increase total expenditures for 2022 by $19,128,116. 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 $2,325,236 This includes funding for the Bell Mountain Infrastructure and Improvement project, a new Stormwater Inspector, a vehicle for the new Stormwater Inspector, funding for ongoing work with Plum Creek Water Reclamation Authority(PCWRA), and for the Acoustic Sewer Line Assessment Program. Castle Rock Water is also lowering their planned budget for the Plum Creek to Reuter-Hess Pipeline project by $8,000,000 as this project is delayed and is being re-budgeted for 2023.
Enhancing our transportation
• The Public Works Department requests supplemental appropriation of $77,950 for anticipated supply needs for the snow and deicing season, this request is primarily related to inflation and transportation cost increases.
• The Public Works Department is also requesting supplemental appropriation of $34,172 for a development related project with the Plum Creek Community Church. This work will be done on the frontage road near the Plum Creek Community Church who will be contributing to the project.
• The Town Manager’s Office is requesting supplemental appropriation to move TABOR funds in the amount of $5,641,727 into the newly approved TABOR (Taxpayers Bill of Rights) Fund. These funds were voter approved to be used on Police, Fire and Road needs.
Maintain strong Parks and Recreation
• The Parks and Recreation Department requests supplemental appropriation of $56,543 for capital items located at Red Hawk Ridge Golf Course. These include the installation of driving range turf, new carpet at the clubhouse, and a new shed for the restaurant and driving range supplies.
Ensure outstanding public safety
• The Police Department requests supplemental appropriation of $2,000,000 for a renovation of the Police Headquarters. The renovation is needed to accommodate the increase of police officers and equipment. The funding for this project is from the TABOR surplus that voters approved for Police, Fire and Road needs.
• The Fire Department requests supplemental appropriation of $100,682 for a new Records Management System and stop the bleed kit replacements.
• The Town Manager’s Office is requesting supplemental appropriation to move TABOR funds of $500,000 from the Fire Capital Fund into the newly approved TABOR Fund. These funds were voter approved to be used on Public Safety needs.
Other Town funds and initiatives
• The Town Manager’s Office is requesting supplemental appropriation of $500,000 for economic assistance agreements.
• The Town Manager’s Office is requesting supplemental appropriation of $1,613,359 townwide for a compensation adjustment. This economic adjustment request is due to the Town’s recruitment challenges, market conditions, and inflationary impacts on Town employees.
• The Finance Department is requesting supplemental appropriation to move the 2021 voter approved TABOR excess funds out of the general fund of $8,500,000 into the Tabor Fund. The total amount of TABOR excess is $14,641,727, and as voter approved these funds will fund Public Safety and Road needs.
• The Human Resources Division requests for supplemental appropriation of $67,420 for a Recruiter position. This position will be responsible for assessing the knowledge, skills, abilities, and other traits of a candidate that will meet the requirements of the Town's open positions.
• The Finance Department is requesting supplemental appropriation of $34,300 for a new part time accounts payable position. With the increase of highly technical and critical functions a new position is needed to manage the internal impact of growth of the Town.
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 2022