To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Ordinance Approving the Third 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 |
|
|
2nd Amendment |
$ 56,328,954 |
$ 4,580,996 |
Supplemental expenditure requests in this proposed Third Amendment to the 2026 Budget total $4,187,058. Also, an additional $1,550,000 of revenue is being requested. 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 Third 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 $4,187,058. 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 $110,000 in the Water Resources Fund to purchase two additional trucks for the Water Resources and Conservation teams to address the significant increase in field demands and ongoing vehicle safety and reliability concerns. Conservation inspection volumes have reached record levels, requiring frequent travel to sites throughout the Town, while the Water Resources team regularly conducts water infrastructure inspections and field sampling at remote and off-road locations. Additionally, the existing Water Resources vehicle has experienced multiple safety and reliability issues, increasing the need for a dependable field vehicle to safely support these essential operations. The immediate need for these vehicles was recently determined so therefore had not been included in previous amendments or budget requests.
• Castle Rock Water is requesting supplemental appropriation of $670,000 in the Water Resources Fund, to fund additional expenses in the ColoradoScape rebate program. Due to the continued drought conditions the rebate program has experienced record participation this year.
Enhancing our transportation
• The Public Works Department is requesting supplemental appropriation of $110,000 in the Fleet Fund for the purchase of two trucks for Castle Rock Water. This request is offset by an increase in revenue which will be transferred from Water Resources.
Maintain strong Parks and Recreation
• The Parks and Recreation Department is requesting supplemental appropriation of $125,000 in the Philip S. Miller Trust Fund for increased part-time staff and professional service costs related to town special events. This request is offset by an increase in revenue.
• The Parks and Recreation Department is requesting supplemental appropriation of $215,000 in the Golf Fund personnel budget for seasonal, part-time and regular staff and related benefits in the Administration, Operations, Food & Beverage, and Facility Maintenance Divisions. This request is offset by an increase in revenue.
• The Parks and Recreation Department is requesting supplemental appropriation of $385,000 in the Community Center Fund personnel budget for Town paid benefits related to regular, seasonal and part-time staff in the Athletics, Aquatics, Operations and Youth Divisions due to increased enrollment in the medical and dental plan and a miscalculation of benefits associated with seasonal and part-time staff in the budget. This increase is partially offset by an increase in revenue due to increased participation in Community Center programs.
Other Town funds and initiatives
• The Human Resources Division is requesting supplemental appropriation of $2,572,058 in the Employee Benefits Fund for medical and prescription claims, which are trending above the 2026 budget. The additional funding will provide sufficient capacity if elevated claim costs continue through year-end.
The additional amount of expenditure appropriation requested in this amendment is shown below and grouped by Town fund.
|
|
Supplement Requests |
|
Philip S. Miller Trust Fund |
$ 125,000 |
|
Water Resource Fund |
$ 780,000 |
|
Golf Course Fund |
$ 215,000 |
|
Community Center Fund |
$ 385,000 |
|
Employee Benefits Fund |
$ 2,572,058 |
|
Fleet Services Fund |
$ 110,000 |
|
TOTAL |
$ 4,187,058 |
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 first 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