To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: David L. Corliss, Town Manager
Trish Muller CPA, Finance Director
Title
Resolution Approving the 2025-2029 Balanced Financial Plan for the Town of Castle Rock
Body
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Executive Summary
Long-term planning is an essential part of the annual budget development process. In the past, a three-year balanced financial plan has been prepared along with the annual budget. Beginning in 2020, with the 2020-2024 Balanced Financial Plan, planning increased to five years to provide a longer-term perspective that demonstrates the sustainability of Town funds. The framework for this initiative ties back to the Town’s numerous Council-adopted long-range plans, which define levels of service and provide clear direction on priorities and projects while maintaining conservative financial management. This effort continues in 2025 with the development of the 2025-2029 Balanced Financial Plan.
The 2025-2029 Balanced Financial Plan demonstrates that the Town is in good financial condition and although not all departmental budget requests were able to be accommodated, several requests to support Town priorities and level of service needs are included. All funds are balanced in each of the five years of the plan, meaning that funds available plus annual revenues exceed the total planned expenditures in all funds. This does include the planned use of $42 million of capital reserves for one-time capital projects, which is a common and sound financial practice.
The Town’s 2025 budget includes a sales tax rate increase of 0.2% (.20 cents on the purchase of $100) an would bring the rate to four-point two percent. The 0.2% will be on the ballot for the 2024 election for the people to decide on this sales tax increase. The 2024 property tax mill levy will stay at 0.92 mills based on the preliminary property valuation for the Town that reflects a 5.5 percent increase over the prior year. An increase to water rates and fees for existing customers is proposed in 2025, along with an increase to the maximum allowed amount for growth-related water system development fees. Inflationary increases are proposed for all other development impact fees, as previously approved by Council.
Personnel projections also shows a five percent increase in healthcare cost for Town employees and five percent for the Town.
Overarching goals of the 2025-2029 Balanced Financial Plan include 1) providing healthy operating resources and capital projects in Town priority areas of transportation, water, parks, and public safety and 2) maintaining current levels of service in a responsible and conservative manner.
DISCUSSION
2025 Budget Priorities
The 2025 Budget priorities used as the basis for development of the 2025-2029 Balanced Financial Plan can be summarized as follows:
• Ensure outstanding public safety
• Enhance our roads
• Secure our water future
• Maintain strong parks and recreation
• Support economic development
• Manage Town finances conservatively
• Preserve our community character
Council has affirmed the above priorities and approach throughout the 2025 Budget process. These priorities are also supported in the 2021 community survey results as previously presented to Town Council.
Financial Overview
The 2025-2029 Balanced Financial Plan was developed using conservative and informed financial modeling and forecasting. Annual growth in sales tax revenue is included at three percent for 2025. Residential growth is expected to continue to slow over the five-year planning period and is budgeted at 400 single-family units and 110 multi-family units in 2025.
Financial Details
The 2025-2029 Balanced Financial Plan (Exhibit 1) shows the estimated costs of addressing high priority area level-of-service needs and of implementing additional major priorities and projects in all operating funds using projected resources. Included within the plan are 23 additional FTEs for 2025 needed to address top-priority level-of-service needs, along with needed increases in expenditures for equipment, technology, services, and capital projects. The following is a summary of the most significant items (generally, totaling $100,000 or more) in the plan for 2024, by fund and by department.
GENERAL FUND
Police Department:
• Add eleven Police positions - two school resources officers, one patrol sergeant and four patrol officers, a detective, an Animal Control supervisor, a traffic officer and a dispatcher
• Address additional needs of CRPD including $450,740 for Asset Management System, Transcription Service, Language Stipend, additional uniform costs, as well as other needs
Fire Department:
• Add ten Fire and Rescue positions: three firefighter/EMTs -these positions eventually would serve the future Fire Station 156
• Address additional needs of CRFD including $515,894 for Continuity of Operations Consultant, contracted hiring specialist, promotional processes and other needs.
Parks & Recreation Department:
• Continued renovations at Recreation Center pool and fitness equipment replacements
• Irrigation System Improvement for Golf Course
• Rock Scaling at Rock Park
• Updates to the Miller Activity Complex and Recreation Center pools
• Purchase new golf equipment and repairs for parking lot
• Add one Parks and Recreation Administrator position
TRANSPORTATION & TRANSPORTATION CAPITAL FUND:
• Crystal Valley interchange and related road construction
• Complete an aggressive Pavement Maintenance Program, focused in 2025 on western Castle Rock, at an estimated 2025 cost of $16.5 million
• Traffic Signal Program
• Improvements to Crowfoot Valley Road east of Knobcone Drive
• 5th Street Widening
CASTLE ROCK WATER FUNDS (Combined):
Continue projects, program and policies to advance the goal of securing 75% renewable water by 2050; reducing per-capita consumption to 100 gallons per day; and maintaining affordable rates and fees, including:
• Continue projects, programs and policies to advance the goal of securing 75% renewable water by 2050; reducing per-capita water consumption to 100 gallons per day; and maintaining affordable rates and fees, including:
• Double the capacity of the Plum Creek Water Purification Facility
• Continue progress in the long-term water plan on the WISE, Box Elder, Cherry Creek Project Authority and Chatfield Reallocation projects
• Substantially complete the new reservoirs north of Sedalia
• Continue to implement advanced metering infrastructure
• Upgrade pumping and control system equipment as part of the 10-year replacement plan
• Redesign and reconstruct the Plum Creek Diversion to maximize permitted capacity
• Rehabilitate and replace aging water and sewer infrastructure on Front Street going into Downtown and the Young/American neighborhood
• Implement the U.S. Highway 85 sewer project using Douglas County American Rescue Plan Act funds
• Stabilize stream segments in Sellers Gulch, improve detention ponds, rehabilitate aging storm sewer pipe and update the Watershed Master Plan
CONCLUSION
The overarching goals of the 2025-2029 Balanced Financial Plan are providing healthy operating resources and capital projects in Town priority areas of transportation, water, parks, and public safety and maintaining current levels of service in a responsible and conservative manner. Based on projected revenues, not all departmental requests were able to be accommodated; however, the included items align with Council priorities and endeavor to maintain levels of service in the community. The 2025-2029 Balanced Financial Plan demonstrates that the ongoing initiatives set forth within the 2025 Budget are sustainable and the one-time requests are able to be accommodated.
STAFF RECOMMENDATION
Staff recommends that Council approve the 2025-2029 Balanced Financial Plan as presented.
PROPOSED MOTION
I move to approve a Resolution Approving the 2025-2029 Balanced Financial Plan.
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).
ATTACHMENT
Attachment A: Resolution
Exhibit 1: 2025-2029 Balanced Financial Plan