To: Honorable Mayor and Members of Town Council
Thru: David L. Corliss, Town Manager
From: Shannon Eklund, Executive Assistant
Title
Presentation: 2022 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 Chamber of Commerce, Castle Rock Historical Society/Museum, and Castle Rock Economic Development Council are each requesting funding increases for 2022. 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 the service contract requests is included in the 2022 Budget:
|
Organization |
2021 Funds |
2022 Request |
2022 Funding Source |
|
Castle Rock Chamber of Commerce |
$99,720 |
$110,815 |
General Fund |
|
Castle Rock Downtown Development Authority |
$178,858 |
$201,116 |
ED Fund |
|
Castle Rock Downtown Merchants Association |
$75,000 |
$75,000 |
ED Fund |
|
Castle Rock Economic Development Council |
$210,086 |
$226,892 |
ED Fund |
|
Castle Rock Historical Society/Museum |
$82,000 |
$84,500 |
Split between General Fund and PS Miller Trust Fund |
|
Castle Rock Senior Center |
$130,000 |
$130,000 |
PS Miller Trust Fund ($70k) and Transportation Fund ($60k) |
|
Douglas County Housing Partnership |
$35,000 |
$35,000 |
General Fund |
|
Douglas County Youth Initiative |
$19,800 |
$19,800 |
General Fund |
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 2022 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: $110,815 (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 2022 would represent about 13 percent of the Chamber’s total anticipated annual revenues. Volunteers provide services valued at over $45,000 in conjunction with several Chamber initiatives, including business consulting, monthly class trainings and Leadership Douglas County.
Additional funds requested this year:
The Chamber is increasing their request to $110,815, from the $99,720 they have been requesting each year since 2011. The Chamber estimates their programmed expenses have increased by $33,284 annually (inflation compounded), which they have absorbed as they have not requested an increase from the Town for the past 11 years. The Chamber is proposing a gradual increase over three years, requesting $110,815 in 2022, $121,910 for 2023 and $133,005 in 2024, to account for the increased expenditures incurred.
Castle Rock Downtown Development Authority (DDA)
Amount of Town funds requested: $201,116 (from the Economic Development Fund)
Services to be provided include, but are not limited to, the following:
Façade improvement, flower box, patio and trolley 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.
The mill levy match amount is determined by actual valuation information provided by the Douglas County Assessor. Valuation information was finalized on November 29, 2021, resulting in a match amount of $201,116. Initial estimates were up to $195,000 for the 2022 Budget. This initial estimate was submitted prior to valuation information being available. Although actual valuation results in an increase over initial estimates, the DDA requests continuation of the Town’s full annual match of the DDA mill levy. The additional amount can be absorbed by the Economic Development Fund.
In 2021, the actual amount of matching funds was $175,858, 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 D.
Downtown Merchants Association (DMA)
Amount of Town funds requested: $75,000 (from the Economic Development Fund)
Services to be provided include, but are not limited to, the following:
Free annual events for the public including up to two Starlight Movies, Pre-Car Show Concert and Car Show, Activities in the Park including events like Fun in the Sun, Yoga in the Park, Chalk in the Park and Music in the Park, Street Party and Concerts (up to four, including Boots & Brews), Oktoberfest, and Fangtastic Festival
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 25 percent of the DMA’s total budgeted income for 2021. These funds generate economic activity, which supports Downtown businesses and generates sales tax. Additional sources of DMA funding are sponsorships and vendors ($105,000) and beverage sales ($120,000).
Castle Rock Economic Development Council (EDC)
Amount of Town funds requested: $226,892 (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 26 percent of the EDC’s projected revenue for 2022, which also includes as major revenue sources private sector investment ($288,000) and Downtown Development Authority/Downtown Merchants Association reimbursements for services ($288,000).
Additional funds requested this year:
Castle Rock EDC’s 2022 request of $226,892 represents an 8 percent increase over the 2021 contract to account for additional operating expenses over the past five years; the request identifies increases in rent, utilities, insurance and compensation. The EDC has not requested an increase in its service contract amount since 2017.
Castle Rock Historical Society/Museum
Amount of Town funds requested: $84,500 (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 89 percent of the Historical Society’s projected revenue for 2022. Fundraising is expected to bring in $7,000. Volunteers run tours and guide visitors, donate artifacts and perform maintenance duties at the museum.
Additional funds requested this year:
This year’s request represents a $2,500 increase over last year’s funding. The increase would be used to raise the compensation of the Castle Rock Museum’s Executive Director position closer to a current market pay rate, particularly in anticipation of the current director’s retirement within the next 1-3 years. The museum president explains that this position has been “woefully underpaid” for the past nine years at $19,020 annually, and a pay increase to an eventual $25,000 per year will be critical for recruiting a new qualified and competent Museum Executive Director.
Castle Rock Senior Center
Amount of Town funds requested: $70,000 for operations (from the PS Miller Trust Fund) and $60,000 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 $130,000 contribution from the Town (including the $60,000 for transportation) would represent about 18 percent of the Senior Center’s projected revenues for 2022. Grants ($230,000), fundraising ($115,000), activity income ($60,000) and membership fees ($40,000) represent other significant revenue sources. In 2020, more than 450 volunteers served the center, totaling 15,748 volunteer hours. In 2022, they expect to see donated hours exceed 30,000. The 2022 request is the same amount as the approved 2021 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 percent of the Housing Partnership’s projected 2021 revenue would come from various program fees and real estate revenue. Participating jurisdictions - the Town, Douglas County, Lone Tree and Parker - are expected to contribute about 40 percent, or $200,000 in all. The 2022 request is the same amount as the approved 2021 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: the Town, 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 2022 request is the same amount as the approved 2021 service contract.
Financial Impact
Overall, the organizations’ requests reflect an increase of $52,659. The combined total requests for all service contracts for 2022 is $883,123, which is 6.3 percent more than overall 2021 funding. Funding history and 2022 requests are shown in the chart provided in the executive summary. Funding to accommodate these service contract requests is included in the 2022 Budget.
Staff Recommendation
Service contracts are provided for Town Council discussion and direction.
Staff has prepared proposed agreements based on the service organizations’ requests/proposals. After listening to the service organizations representatives’ presentations for each proposal, staff recommends Council consider approving the service contract request as presented.
Attachments
Attachment A: In-Kind Events Contribution Information
Attachment B: Castle Rock Chamber of Commerce Funding Request
Attachment C: Castle Rock Downtown Development Authority Funding Request
Attachment D: Downtown Alliance Finance Structure
Attachment E: Castle Rock Downtown Merchants Association Funding Request
Attachment F: Castle Rock Economic Development Council Funding Request
Attachment G: Castle Rock Historical Society/Museum Funding Request
Attachment H: Castle Rock Senior Center Funding Request
Attachment I: Douglas County Housing Partnership Funding Request
Attachment J: Douglas County Youth Initiative Funding Request
Attachment K: Summary of Service Organization Contract Amounts from 2010-2022