To: Honorable Mayor and Members of Town Council
Thru: David L. Corliss, Town Manager
From: Shannon Eklund, Executive Assistant
Title
Presentation: Short Introduction of 2026 Service Contract Funding Requests on Council’s Consent Calendar
Body
________________________________________________________________________________
Executive Summary
Each year, Town Council reviews requests from service organizations for funding their operations, which include community events and services. Attached are applications from the organizations. The Castle Rock Chamber of Commerce, Economic Development Council, Downtown Merchants Association, Historical Society/Museum, and the Douglas County Youth Initiative are each requesting funding increases for 2026. The Downtown Development Authority amount increases according to the annual mill levy revenue calculation. The remainder of the organizations are requesting the same funding level as last year. This will be on the October 21 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 to accommodate these service contract requests is included in the 2026 Proposed Budget:
|
Organization |
2026 Request |
2025 Funds |
2026 Funding Source |
|
Castle Rock Chamber of Commerce |
$140,000 |
$133,000 |
General Fund |
|
Castle Rock Downtown Development Authority |
Up to $235,000 |
$225,654 |
DDA Special Fund |
|
Castle Rock Downtown Merchants Association |
$102,000 |
$97,850 |
DDA Special Fund |
|
Castle Rock Economic Development Council |
$257,844 |
$247,927 |
ED Fund |
|
Castle Rock Historical Society/Museum |
$100,700 |
$98,700 |
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 |
$35,000 |
$35,000 |
General Fund |
|
Douglas County Youth Initiative |
$25,000 |
$19,800 |
General Fund |
|
TOTAL: |
$1,083,401 |
$1,045,788 |
|
More detailed summaries of the applications follow this overview. Town also provides in-kind support for Chamber of Commerce and Downtown Merchants Association events throughout the year. This support is provided in addition to the direct funding shown above.
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 2025 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 staffing and operations
Visitor Center: Staffed 9 am to 5 pm Monday-Friday, excluding holidays
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 2026 would represent about 13% of the Chamber’s total anticipated annual revenues. Volunteers provide services valued over $36,000, in conjunction with several Chamber initiatives, including business consulting, monthly class trainings, and Leadership Douglas County.
Additional funds requested this year:
The Chamber’s 2026 request represents a 5.3% increase over the 2025 contract amount, to meet increased community attendance and engagement, rising costs, and competitive salary adjustments. Their application cites a 300% increase in their professional development and business counseling, and saw an additional 11,000+ attendees at Signature Events in 2025 over 2024, resulting in the need for more staff support.
Castle Rock Chamber’s 2026 request represents a 5.3% increase over the 2025 contract amount, to account for inflationary increases to the costs of producing events
Castle Rock Downtown Development Authority (DDA)
Amount of Town funds requested: Estimated range of $220,000-235,000 (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 $235,000. 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 2025, 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 2025, the actual amount of matching funds was $225,654, 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: $102,000 (from the DDA Special Fund)
Services to be provided include, but are not limited to, the following:
Free annual events for the public including a Spring Kickoff Concert, Car Show Street Party and Concert, Castle Rock Cruise In Car Show, Music in the Park (4-8 events), Boots & Brews, Oktoberfest, Restaurant Week, and Fangtastic Festival; Trolley and Carriage Ridges; and staff to support these events
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 would represent about 22% of the DMA’s total budgeted income for 2026. For every $1 contributed from the Town, the DMA generates an additional $3 to pay for community events and activities in Downtown. These events generate economic activity, which supports Downtown businesses and generates sales tax. Additional sources of DMA funding are sponsorships and vendors ($115,000) and beverage sales ($225,000).
Additional funds requested this year:
The DMA did not request a funding increase in 2025. Their 2026 request represents a 4.2% increase over the 2025 contract amount, to account for inflationary increases in the costs to produce events in 2025 and 2026.
Castle Rock Economic Development Council (EDC)
Amount of Town funds requested: $247,927 (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 27% of the EDC’s projected revenue for 2025, which also includes as major revenue sources private sector investment ($305,000) and Downtown Development Authority/Downtown Merchants Association reimbursements for services ($257,500).
Additional funds requested this year:
Castle Rock EDC’s 2025 request of $247,927 represents a 2.9% increase over the 2024 contract to account for inflationary increases in rent and operating expenses over the past year.
Castle Rock Historical Society/Museum
Amount of Town funds requested: $100,700 (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 88% of the Historical Society’s projected revenue for 2026. Fundraising is expected to bring in $8,500. Volunteers provide services valued over $18,000 to run tours and guide visitors, donate artifacts and perform restoration duties at the museum.
Additional funds requested this year:
This year’s request represents a $2% increase over last year’s funding, to account for increased minimum mages.
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:
A $170,000 contribution from the Town-including the $90,000 for transportation-would represent about 15% of the Senior Center’s projected revenues for 2026. Grants ($405,000), fundraising ($160,000), activity income ($140,000) and membership fees ($55,000) represent other significant revenue sources. In 2024, 339 volunteers served the center, totaling more than 25,500 volunteer hours. The 2026 request is the same amount as the approved 2025 service contract.
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 2026 request is the same amount as the approved 2025 service contract.
Douglas County Housing Partnership
Amount of Town funds requested: $35,000 (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:
About 68% of the Housing Partnership’s projected 2026 revenue would come from various program fees and real estate revenue. Participating jurisdictions - the Town of Castle Rock, Douglas County, Lone Tree and Parker - are expected to contribute about 23%, or $200,000 in all. The 2026 request is the same amount as the approved 2025 service contract.
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:
All of the Youth Initiative’s revenue comes from participating jurisdictions: Town of Castle Rock, the City of Lone Tree, Douglas County, the Douglas County Libraries, the Douglas County School District, the Department of Human Services, the Highlands Ranch Metro District and the Town of Parker.
Additional funds requested this year:
This year’s request presents only the second funding increase in the DCYI Intergovernmental agreement in two decades, and the Town’s contribution is to match other municipal partners on the IGA.
Financial Impact
Overall, the organizations’ 2026 requests reflect an increase of $37,613. The combined total requests for all 2026 service contracts is $1,083,401, which is 3.5% more than overall 2025 funding. Funding history and 2026 requests are shown in the chart provided in the executive summary. Funding to accommodate these service contract requests is included in the 2026 Budget.
Staff Recommendation
Staff recommends Council consider approving the service contract requests as presented. Based on Council’s direction, staff will prepare the 2026 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 2010-2026