To: Honorable Mayor and Members of Town Council
From: Kristin Zagurski, Senior Management Analyst
Title
Presentation: 2016 Service Contract Funding Requests
Body
________________________________________________________________________________
Executive Summary
Each year, Town Council reviews requests from service organizations for funding their operations and/or community events and services. Attached are applications from the organizations. Two of the organizations are requesting a funding increase for 2016; the remainder are requesting the same funding level as this year:
Organization 2015 Funds 2016 Request
Castle Rock Chamber of Commerce $99,720 $99,720
Castle Rock Downtown Development Authority $124,288 $140,760
Castle Rock Economic Development Council $180,550 $180,550
Castle Rock Historical Society/Museum $71,000 $71,000
Castle Rock Senior Center $102,000 $120,000
Douglas County Housing Partnership $35,000 $35,000
Douglas County Youth Initiative $19,800 $19,800
Downtown Merchants Association $55,600 $55,600
More detailed summaries of the applications follow this overview. In addition, these organizations will make brief presentations at this Town Council meeting. No final decisions regarding 2016 funding requests are necessary at this time. Staff has budgeted a 5 percent increase over approved 2015 amounts, regardless of the amounts the organizations requested. The contracts ultimately will be administered according to how Council approves them toward the end of 2015.
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 2016 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: $99,720
Services to be provided:
• Community marketing
• Hospitality and tourism, including community events and the Visitor Center
• Small business assistance services
• Leadership program
• Administration: Event/program staffing and admin/operations
Anticipated outcomes of services:
Positive emotional and intellectual impression of our community. Support for local businesses.
How Town funds will be leveraged with other dollars and volunteer resources:
The Chamber’s main source of income is its events, followed by membership dues and the service contract with the Town. The amount requested for 2016 would represent about 13 percent of the Chamber’s total anticipated annual revenues. Volunteers provide services valued at more than $36,000 in conjunction with several Chamber initiatives, including business counseling and monthly trainings, and Leadership Douglas County.
Castle Rock Downtown Development Authority
Amount of Town funds requested: $140,760
Services to be provided:
• Façade improvement, patio and trolley programs
• Professional services, marketing and public website
• Rink at the Rock
Anticipated outcomes of services:
Increased economic activity; charm and pedestrian activity; and sales and traffic in Downtown Castle Rock.
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. Sales ($85,000) and sponsorships ($25,000) for Rink at the Rock are other major sources of revenue expected in 2016.
Additional funds requested this year:
Though the request for a mill levy match remains the same, this year’s request represents a $16,472 increase over last year’s funding level due to increased property valuations within Downtown.
Castle Rock Economic Development Council
Amount of Town funds requested: $180,550
Services to be provided:
• Attracting developers and primary employers to Castle Rock
• Developing and recruiting retail businesses
• Growing Castle Rock’s existing businesses
• Creating a business/industry-friendly environment
• Counseling the Town on economic development agreements
Anticipated outcomes of services:
Business attraction creates new jobs, which bring new dollars into the community. Business retention programs allow established businesses to thrive. Creating a positive business environment is essential to the economic success of the community.
How Town funds will be leveraged with other dollars:
Town investment at the requested level would represent about 26.5 percent of the EDC’s projected revenue for 2016, which also includes as major revenue sources private sector investment ($214,000) and Downtown Development Authority/Downtown Merchants Association reimbursements for services ($232,980).
Castle Rock Historical Society/Museum
Amount of Town funds requested: $71,000 (from the Philip S. Miller Fund)
Services to be provided:
• 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:
Provision of a sense of place, and a destination, for the community and visitors.
How Town funds will be leveraged with other dollars:
The requested contribution represents about 53 percent of the Historical Society’s projected revenue for 2016. Fundraising is expected to bring in $60,000.
Castle Rock Senior Center
Amount of Town funds requested: $70,000 for operations (from the Philip S. Miller Fund) and $50,000 for transportation services (funded through Public Works)
Services to be provided:
• Provision of educational, social, health and recreational programs
• Transportation program for seniors and adults with disabilities
• Meal programs
Anticipated outcomes of services:
Provision of programs and activities; transportation; and health and wellness services for seniors.
How Town funds will be leveraged with other dollars and volunteer resources:
A $120,000 contribution from the Town (including the $50,000 requested for transportation) would represent about 28 percent of the Senior Center’s projected revenues for 2016. Grants, fundraising, activity income and membership fees represent other significant revenue sources. In 2014, the center’s 450 volunteers donated 30,000 hours in service to the center.
Additional funds requested this year:
This year’s request represents an $18,000 increase over last year in order to meet the continued growth of the senior population within Castle Rock.
Douglas County Housing Partnership
Amount of Town funds requested: $35,000
Services to be provided:
• Homebuyer education classes/down payment assistance
• Foreclosure mitigation counseling/reverse mortgage counseling
Anticipated outcomes of services:
Preservation, provision and development of housing in Douglas County.
How Town funds will be leveraged with other dollars:
About 60 percent of the Housing Partnership’s projected 2016 revenue would come from various fees. Participating jurisdictions - the Town, Douglas County, Lone Tree and Parker - are expected to contribute about 38.3 percent, or $165,000 in all, with the partnership’s remaining income coming from grants.
Douglas County Youth Initiative
Amount of Town funds requested: $19,800
Services to be provided:
• WrapAround services, events and associated expenses
Anticipated outcomes of services:
Family engagement.
How Town funds will be leveraged with other dollars:
All of the Youth Initiative’s revenue ($295,500 total expected for 2016) comes from participating jurisdictions: the Town, the City of Lone Tree, Douglas County, the Douglas County Libraries, the Douglas County School District, the Highlands Ranch Metro District and the Town of Parker.
Downtown Merchants Association
Amount of Town funds requested: $55,600
Services to be provided:
• Free annual events for the public, including four Starlight Summer Movies, the Classic Rock Cruise in car show, Oktoberfest, two date night movies, a series of up to three concerts, a Broncos autograph event, Trick or Treat Street, Splash in the Park and a Community Partners Program
• Staffing to support these events and program
Anticipated outcomes of services:
A strengthened Downtown business community and a vibrant Downtown, with a strong sense of community and a small-town atmosphere.
How Town funds will be leveraged with other dollars:
The requested contribution would represent about 37 percent of the DMA’s total budgeted income. These funds generate economic activity, which supports Downtown businesses and generates sales tax. Additional DMA funding comes from vendors, sponsors and event sales.
Financial Impact
Overall, the organizations’ requests reflect a $16,472 increase in General Fund funding (subject to changes in the DDA’s mill levy match, which will be finalized in December). The amount from the Philip S. Miller Trust Fund would increase by $18,000 if requests are granted as proposed. (Historical Society and Senior Center contract monies come out of the Miller fund, which was established for sense-of-community projects and services.)
The combined total requests for all service contracts for 2016 is $722,430, which is $34,472 more than overall 2015 funding. Funding history and 2016 requests and budgeted amounts are shown in the attached chart.
Staff Recommendation
1. Review the attached proposals.
2. Listen to presentations from the service organizations and ask questions of their representatives.
3. Staff has budgeted each organization’s requested amount up to a 5 percent increase over approved 2015 amounts, as indicated in the attached funding summary. The contracts ultimately will be administered according to how Council approves them toward the end of 2015.
Attachments
Attachment A - Castle Rock Chamber of Commerce
Attachment B - Castle Rock Downtown Development Authority
Attachment C - Castle Rock Economic Development Council
Attachment D - Castle Rock Historical Society/Museum
Attachment E - Castle Rock Senior Center
Attachment F - Douglas County Housing Partnership
Attachment G - Douglas County Youth Initiative
Attachment H - Downtown Merchants Association
Attachment I - Summary of Service Organization Contract Amounts from 2003-2016