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 2026 Fiscal Year Budget by Making Supplemental Appropriations for the 2026 Fiscal Year (First Reading)
Body
________________________________________________________________________________
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.
|
Fiscal Year |
|
Revenue |
Supplemental Appropriations |
|
2022 |
Carryforward Amendment |
$ - |
$ 37,308,413 |
|
|
1st Amendment |
$ 36,122,836 |
$ 36,674,688 |
|
|
2nd Amendment |
$ 20,437,317 |
$ 19,128,116 |
|
|
3rd Amendment |
$ 3,828,740 |
$ 12,844,306 |
|
|
4th Amendment |
$ 3,048,711 |
$ 12,626,501 |
|
2023 |
Carryforward Amendment |
$ - |
$ 84,357,215 |
|
|
1st Amendment |
$ 167,880 |
$ 5,902,635 |
|
|
2nd Amendment |
$ 165,795,674 |
$ 191,637,745 |
|
|
3rd Amendment |
$ 2,700,944 |
$ 6,115,138 |
|
|
4th Amendment |
$ 4,616,807 |
$ 4,815,754 |
|
2024 |
Carryforward Amendment |
$ - |
$ 91,124,553 |
|
|
1st Amendment |
$ 164,029,503 |
$ 176,602,796 |
|
|
2nd Amendment |
$ 445,888 |
$ 12,825,188 |
|
|
3rd Amendment |
$ 3,457,757 |
$ 4,271,821 |
|
2025 |
Carryforward Amendment |
$ - |
$ 157,580,495 |
|
|
1st Amendment |
$ 67,100,481 |
$ 17,566,084 |
|
|
2nd Amendment |
$ 82,695,142 |
$ 81,526,589 |
|
|
3rd Amendment |
$ 2,983,326 |
$ 11,555,426 |
|
2026 |
Carryforward Amendment |
$ - |
$ 260,273,465 |
|
|
1st Amendment |
$ 26,693,267 |
$ 10,609,944 |
Supplemental expenditure requests in this proposed Second Amendment to the 2026 Budget total $4,580,996. Also, an additional $56,328,954 of revenue is being requested, of which $55,000,000 will be used to support planned Water Department capital projects. 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 2026 Budget. Following is a summary of requested items.
Discussion
Total requested changes to appropriations referred to in Attachment B increase total expenditures for 2026 by $4,580,996. 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 of $100,000 in the Water Fund to purchase two additional trucks for staff to be used for on-site visitation, emergency response, and site maintenance.
• Castle Rock Water is requesting supplemental revenue appropriation of $55,000,000 in the Water Resources Fund to recognize bond revenue anticipated in 2026. The additional revenue will support planned capital improvement projects that were included in the capital carryforward process.
• Castle Rock Water is requesting supplemental appropriation of $375,000 in the Water Resources Fund, to fund additional expense due to the success of the ColoradoScape rebate program.
• Castle Rock Water is requesting supplemental appropriation of $307,415 in the Stormwater Fund for a 2026 Stormwater Master Plan update to evaluate existing infrastructure, prioritize future capital improvements, and develop updated drainage and floodplain management recommendations.
• Castle Rock Water is requesting supplemental appropriation of $704,920 in the Stormwater Fund for construction of the EPC Reach 5 Phase 2 project and to complete construction-related services to include preparation of an as-built survey and submission of a Letter of Map Revision (LOMR) to FEMA.
• Castle Rock Water is requesting supplemental appropriation of $500,000 in the Wastewater Fund for the purchase of Bioxide and related monitoring services to control odors and hydrogen sulfide levels within the wastewater collection system.
Enhancing our transportation
• The Public Works Department is requesting supplemental revenue appropriation of $122,992 in the Fleet Fund for expected increases in revenue related to transfers in from the General Fund and the Water Fund.
• The Public Works Department is requesting supplemental appropriation of $100,000 in the Fleet Fund for the purchase of two trucks for Castle Rock Water.
Maintain strong Parks and Recreation
• The Parks and Recreation Department is requesting supplemental appropriation $1,250,000 in the General Fund for restoration and maintenance of the historic Cantril School building. Elements of this project include roofing, soffits, fascia, gutters, masonry and window restoration.
• The Parks and Recreation Department is requesting supplemental appropriation of $300,000 in the General Fund for replacement of the Town’s irrigation control system. This upgrade will allow staff to monitor and adjust irrigation remotely, respond quickly to issues, and ensure water is used responsibly across all parks.
• The Parks and Recreation Department is requesting supplemental appropriation of $100,000 in the General Fund for the purchase of additional security cameras to be installed in Town-owned parks. As incidents of vandalism and unauthorized activity in parks continue, implementing a comprehensive security camera system is essential to safeguard public spaces, reduce criminal activity, and provide law enforcement with critical surveillance tools.
• The Parks and Recreation Department is requesting to re-appropriate $538,801 in the Parks and Recreation Capital Fund for professional service costs related to the construction of the Castle Rock Sports Center.
Ensure outstanding public safety
• The Police Department is requesting supplemental revenue appropriation of $1,043,929 in the General Fund for the school resource officer (SRO) contracts with Douglas County School District, World Compass, and Academy Charter schools.
Other Town funds and initiatives
• The Town Manager’s Office is requesting supplemental appropriation of $162,033 in the General Fund for costs associated with the 250/150 celebration. The requested funding will support planned commemorative activities and related event expenses. This request is offset with an increase in revenue appropriation.
• The Finance Department is requesting to re-appropriate $66,000 in the General Fund for budget software expense that was originally included in 2025 but will now be incurred in 2026. The requested funding will support the continuation of the planned software implementation.
• The Facilities Division is requesting supplemental appropriation of $22,992 in the General Fund to fund a shortfall in replacement contributions for the purchase of two replacement vehicles.
• The Municipal Court is requesting supplemental appropriation of $53,835 in the General Fund for an audio equipment upgrade that will support ongoing court operations, as well as additional personnel costs that were planned for but inadvertently left out of the final 2026 budget.
The additional amount of expenditure appropriation requested in this amendment are shown below and are grouped by Town fund.
|
|
Supplement Requests |
|
General Fund |
$ 1,954,860 |
|
Parks & Recreation Capital Fund |
$ 538,801 |
|
Water Fund |
$ 100,000 |
|
Water Resources Fund |
$ 375,000 |
|
Stormwater Fund |
$ 1,012,335 |
|
Wastewater Fund |
$ 500,000 |
|
Fleet Services Fund |
$ 100,000 |
|
TOTAL |
$ 4,580,996 |
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 Second 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 2026