To: Honorable Mayor and Members of Town Council
Thru: David L. Corliss, Town Manager
From: Shannon Eklund, Executive Assistant
Title
Summary of 2027 Service Contract Funding Requests
Body
________________________________________________________________________________
Executive Summary
Town Council annually reviews service organizations’ funding requests for community services and events. For 2027, the Castle Rock Chamber of Commerce, Downtown Merchants Association, Economic Development Council, Historical Society Museum, and Douglas County Housing Partnership are each requesting funding increases for 2027. The Downtown Development Authority requests continuation of the Town match of its 3-mill levy revenue, estimated at $235,000 to $245,000 pending certification. The remaining organizations are requesting the same funding level as 2026.
Resolutions to approve the funding agreements will be on the October 20 Council Consent Calendar - Representatives have been asked to attend the meeting and be prepared to answer questions; however, no presentations are planned unless Council has questions. Funding is included in the 2027 Proposed Budget.
|
Organization |
2027 Request |
2026 Funds |
2027 Funding Source |
|
Castle Rock Chamber of Commerce |
$145,000 |
$140,000 |
General Fund |
|
Castle Rock Downtown Development Authority |
Up to $235,000 |
$234,921 |
DDA Special Fund |
|
Castle Rock Downtown Merchants Association |
$106,000 |
$102,000 |
DDA Special Fund |
|
Castle Rock Economic Development Council |
$265,279 |
$257,844 |
ED Fund |
|
Castle Rock Historical Society/Museum |
$102,450 |
$100,700 |
Split between General Fund and PS Miller Trust Fund |
|
Castle Rock Senior Center |
$170,000 |
$170,000 |
PS Miller Trust Fund ($80k) and Transportation Fund ($90k) |
|
Douglas County Community Foundation |
$17,857 |
$17,857 |
General Fund |
|
Douglas County Housing Partnership |
$45,000 |
$35,000 |
General Fund |
|
Douglas County Youth Initiative |
$25,000 |
$25,000 |
General Fund |
|
TOTAL: |
$1,083,401 |
$1,045,788 |
|
Town also provides in-kind support for Chamber of Commerce, Downtown Merchants Association and Castle Rock Senior Activity Center throughout the year. This support is provided in addition to the direct funding summarized herein.
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 2027 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: $140,000 (from the General Fund)
Services to be provided include, but are not limited to, the following:
Events: Artfest, Douglas County Fair Parade and Starlighting
Programs: Talent Pipeline DC, eXcelerate business development, Leadership Douglas County, Livability Magazine and community marketing
Administration: Event, program, Chamber, and Visitor Center staffing and operations
Visitor Center: In-person 9 am to 5 pm Monday-Friday, excluding holidays, and online visitor information and community promotion
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 sponsorships and community events, followed by membership investment and the service contract with the Town. The amount requested for 2027 represents about 13.2% of the Chamber’s total anticipated annual revenues. In 2025, Volunteers provided services valued over $39,000, with several Chamber initiatives, including business consulting, monthly class trainings, and Leadership Douglas County.
Additional funds requested this year:
The Chamber requests an additional $5,000, a 3.6% increase over the 2026 contract. The request cites higher insurance, taxes, utilities, technology, and marketing costs, along with continued growth in program and event demand.
Castle Rock Downtown Development Authority (DDA)
Amount of Town funds requested: Estimated range of $235,000-245,000 (from the DDA Special Fund)
Services to be provided include, but are not limited to, the following:
Façade/Downtown improvement, Flower box/patio program, 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 $245,000. 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 2026, 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 2026, the requested amount was up to $235,00, and the actual amount of matching funds was $234,921, 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.
Downtown Merchants Association (DMA)
Amount of Town funds requested: $106,000 (from the DDA Special Fund)
Services to be provided include, but are not limited to, the following:
Free community events including the Summer Kickoff Concert, Car Show Street Party and Concert, Classic Rock Cruise-In Car Show, Music in the Park, Boots and Brews, and Oktoberfest; with additional programming planned for Restaurant Week, Fangtastic Festival, trolley rides, and carriage rides as resources allow
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 represents about 20.5% of the DMA’s projected 2027 revenue of $517,500. The DMA reports that each Town dollar is leveraged with approximately $4 in other funding, including sponsorships, vendor booth sales, beverage sales, and carriage sales.
Additional funds requested this year:
The DMA requests an additional $4,000, a 3.9% increase over the 2026 contract, to address rising event production costs.
Castle Rock Economic Development Council (EDC)
Amount of Town funds requested: $265,579 (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 22.1% of the EDC’s projected revenue for 2027, which also includes as major revenue sources private sector investment ($400,000), DMA reimbursement ($95,000), Douglas County ($75,000), private sponsorships and other revenue ($44,000), and in-kind support ($4,700).
Additional funds requested this year:
The EDC requests an additional $7,735, a 3.0% increase over the 2026 contract, to address inflation, healthcare costs, and general operating expenses.
Castle Rock Historical Society/Museum
Amount of Town funds requested: $102,450 (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 curate exhibits at the museum
Curate exhibits at local sites including the Adventist Hospital and Cantril School
Scavenge the Rock community event, plus 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 87.6% of the Historical Society’s projected revenue for 2027. Other projected revenue includes fundraising and donations, museum donations, gift shop sales, and community rewards. Volunteers provide services valued over $20,000 to run tours and guide visitors, donate artifacts and perform restoration duties at the museum.
Additional funds requested this year:
The Historical Society requests an additional $1,750, a 1.7% increase over the 2026 contract, primarily to address increased insurance costs.
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:
The $170,000 Town contribution represents about 13.8% of the Senior Center’s projected 2027 revenue of $1,228,346. Other projected revenue includes grants ($485,000), fundraising ($170,000), in-kind income ($119,346), activity income ($110,000), membership fees ($55,000), shuttle donations ($23,000), and miscellaneous revenue ($96,000). The request is unchanged from 2026.
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 2026 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 2027 request is the same amount as the approved 2026 service contract.
Douglas County Housing Partnership
Amount of Town funds requested: $45,000 (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:
The requested contribution represents about 4.6% of the Housing Partnership’s projected 2027 revenue of $983,223. Other projected revenue includes participating jurisdictions ($250,000), development or partnership income, property and asset management, private activity bond fees, program revenue, and grants
Additional funds requested this year:
The Housing Partnership requests an additional, one-time $10,000 for matching funds for the Town’s Housing Action Plan. The continuing $35,000 operating request is unchanged from prior years.
Douglas County Youth Initiative
Amount of Town funds requested: $25,000 (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:
Funding is provided by participating jurisdictions and partners, including Douglas County, Douglas County School District, the Town of Castle Rock, the Town of Parker, the City of Lone Tree, the City of Castle Pines, Highlands Ranch Metro District, and Douglas County Libraries. The 2027 request is unchanged from the 2026 contract amount.
Financial Impact
The combined 2027 request is estimated at $1,111,886, depending on the final DDA mill levy certification. This is an increase of $28,564, or approximately 2.6%, over the $1,083,322 total 2026 funding shown in the summary table. Funding to accommodate these service contract requests is included in the 2027 Proposed Budget.
Staff Recommendation
Staff recommends Council consider approving the service contract requests as presented. Based on Council’s direction, staff will prepare the 2027 Service Contracts for the Town Manager to administer and execute.
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 2010-2027