To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
2021 Capital Carryforward for ongoing Capital Projects
Body
________________________________________________________________________________
Introduction
The charter for the Town of Castle Rock allows for the carryforward of prior year capital appropriations without approval by ordinance in order to complete ongoing projects (Section 9.15). Capital projects are fully budgeted in the year the project is anticipated to begin. However, actual capital expenditures vary depending on the timing of work on the project and size of the project and often span multiple years. Since projects often cross multiple years, the Finance Department will carryforward capital budget appropriations, as necessary, until the project is complete. A five-year summary of capital budget appropriation carryforwards is provided in the table below.
|
Year |
2017 |
2018 |
2019 |
2020 |
2021 |
|
Capital Carryforward Amounts |
$85,156,932 |
$24,563,609 |
$73,338,429 |
$55,320,649 |
$49,824,231 |
Discussion
The carryforward of unspent capital appropriations, referenced in Attachment A, is for capital projects that were planned and funded with prior Town Council approval. Such projects were included in the Capital Improvement Program presented to Council along with the annual budget in the year the project was originally funded. The total capital carryforward amount to be re-appropriated into the 2021 budget is $49,824,231.
Per section 9.15 of the Town Charter, appropriations for capital expenditures do not lapse and can automatically be re-appropriated into the next year’s budget. The Finance Department has worked with Town departments to review capital projects and to ensure that funds carried forward into 2021 are for ongoing projects not budgeted in 2021 and that only amounts needed to complete the project are re-appropriated.
In prior years, carryforward amounts were included in the first amendment to the current year budget, which is typically brought before Town Council as an ordinance in April. Beginning this year, capital carryforwards are being processed in March to allow departments to access capital funds sooner.
The first amendment to the 2021 budget is planned for April 20 and will only include supplemental appropriation requests. The annual budget is prepared with known estimated costs at the time of Council approval. Such cost estimates are subject to change between budget approval and the start of the fiscal year due to additional information received, changes in scope or priorities, and new spending needs. The Finance department works with Town departments to identify supplemental appropriations and requests Council approval when sufficient revenues or reserves are available to accommodate the change.
Capital carryforward amounts for 2021 can be seen in the following table and in Attachments A and B:
• Attachment A includes all specific capital project carryforward amounts as identified by departments for ongoing projects
• Attachment B includes estimated funds available in 2021 with these capital carryforward amounts
Budget Impact
The capital carryforward amounts totaling $49,824,231, and presented in Attachment A, will be re-appropriated in 2021 and reflected in the 2021 budget as of March. The following table shows capital carryforward amounts by fund. Estimated funds available with such carryforwards can be seen in Attachment B.
Staff Recommendation
This memo is intended for informational purposes only.
Attachments
Attachment A: Unspent 2020 Capital Project Carryforward for Fiscal Year 2021
Attachment B: Estimated Ending Funds Available for 2021