To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Ordinance Approving Supplemental Appropriations for 2018 and the First Amendment to the 2018 Budget Authorizing Changes for Year 2018 (Second Reading)
Body
________________________________________________________________________________
The ordinance was approved on first reading on April 3, 2018 with a vote of 7 to 0.
Executive Summary
The changes of appropriation in this proposed First Amendment to the 2018 Budget include items to be considered for supplemental appropriation and carryover of unspent capital appropriations from the 2017 Amended Budget. Attachments B and C describe the budget amendment requests in two types of changes:
- Attachment B includes supplemental appropriation items and non-capital encumbered obligations for 2017
- Attachment C includes all encumbered and unencumbered capital project amounts as identified by departments
The table below summarizes changes in appropriations in this First Amendment to the 2018 Budget and the net effect on capital and operating expenditure budget increases, including any applicable revenue adjustments:
Of the total budget requests, $197,544 is recurring and is incorporated in future financial plans. These recurring costs include $6,648 in the General Fund intended for the Parks and Recreation Department to take over trolley operations from Public Works and $190,896 in the Development Services Enterprise Fund for the addition of two full time development related positions and the reclassification of another. All other items contained within this proposed budget amendment are intended for one-time projects that are not continued every year, therefore are planned as one-time uses of available fund balances. Some items are needed to more precisely appropriate funds as the result of gaining more complete project estimates and the finalization of project scope.
Discussion
Total necessary changes to appropriations referred to in Attachment B net to an increase in total expenditures for 2018 of $9,812,906. Significant supplemental appropriation needs include the following items:
Within the Town Manager’s Office, supplemental appropriation of funds totaling $2,000,000 is needed in the Economic Development Fund related to the Castle Rock Collaborative Campus project. On December 5, 2017, Council approved a development agreement in which the Town will commit funds to assist in the construction of a new collaborative campus project to include Arapahoe Community College, Colorado State University, and Douglas County Schools.
Public Works Department needs total an increase in expenditures of $1,223,881 in the Transportation Fund and $1,670,374 in the Transportation Capital Fund. Significant items in the Transportation Fund include an additional $1,000,000 transfer out to the Transportation Capital Fund intended to aid in funding capital improvement projects, an additional $100,000 for traffic signal construction, and an increase of $104,904 for Transfers out to the Fleet Fund. Necessary items within the Transportation Capital Fund include an additional $825,000 for construction of a roundabout at Plum Creek Parkway and Wolfensberger Road, $325,077 in additional funding for construction of an addition to the Service Center and $300,000 for improvements at the intersection of Founders Parkway and Crowfoot Valley Road. Early estimates for these projects were included in the 2018 Budget adopted in September 2017. As project estimates have been refined, additional funding needs have been identified to accommodate project completion.
The Fleet Division, within the Public Works Department, has included the supplemental appropriation of $145,287. Of this amount, $40,383 is intended to complete an upgrade of the fleet management software, which was started and budgeted in 2017. The remaining $104,904 is requested to fund the purchase of a new Town trolley within the Fleet Fund. The Town’s old trolley has reached the end of its serviceable life and needs to be replaced. The trolley is used for various Town events and is often rented for other private events. Revenue in the form of an offsetting transfer from the Transportation Fund is included for the trolley purchase. In addition to these expenditure items, increased revenue is included to accommodate transfers in from other funds to complete various planned 2017 vehicle additions.
Castle Rock Water has included needed supplemental appropriation of funds within the Water, Water Resources, Stormwater, and Wastewater Fund, resulting in a total increase of $3,217,492. Of this, $1,001,761 is intended to complete obligations, which started in 2017 and continue in 2018, including well repair and maintenance work, ongoing renewable water initiatives as part of the WISE project, and completion of the Hangman’s Gulch stabilization project. Remaining items are included to fund project needs that were identified after the 2018 Budget was adopted. Significant project needs include $1,334,250 in the Stormwater Fund for Douglas Lane and 6400 South Tributary stabilization work, an additional $500,000 in the Wastewater Fund for Plum Creek Interceptor sewer line improvements, and an additional $250,000 also in Wastewater for a new sewer main line in the Founders/Terrain area.
Supplemental appropriation of funds within the Development Services Department total $403,745. Of this, $212,849 is intended for the continuation of projects and items included in the 2017 Amended Budget. The remaining $190,896 is necessary in order to fund two additional full time positions and the reclassification of an existing position. The two new positions include a Plan Review Engineer and one Inspection Supervisor. The reclassification includes changing a Development Supervisor position into a Lead Engineer. As development in Town continues to be strong, the demand for development review and inspections services has increased. These personnel changes will allow the department to maintain levels of service.
The Deputy Town Manager’s Office supplemental appropriation funding within the Municipal Facilities Capital Fund are needed to accommodate additional needs related to construction of the new Central Service Center. Funds needed to deliver the final design exceeded initial project planning estimates. As a result, an additional $1,600,000 is included to accommodate construction. Revenue in the form of offsetting transfers in of $410,889 from the General Long Term Planning Fund and $778,222 from the Parks and Recreation Capital Fund are also included in the amendment to help fund these additional needs.
The Parks and Recreation Department has included supplemental appropriation of funds to accommodate project needs that were not anticipated as part of the 2018 Adopted Budget. Significant items include $56,470 in the General Fund to accommodate trail improvements coinciding with tributary stabilization work undertaken by Castle Rock Water and $75,724 in the Golf Fund to accommodate replacement of an HVAC unit at the Red Hawk Ridge clubhouse. In addition, $6,648 is included in the General Fund to accommodate Town trolley operations being absorbed by the Parks and Recreation Department, with a corresponding reduction in the Transportation Fund.
Supplemental appropriation of $157,256 is included by the Finance Department within the General Fund to complete the purchase and implementation of new sales tax software that was started in 2017 and is scheduled to be completed in 2018. Funds were previously appropriated within the 2017 Amended Budget. In addition, the supplemental appropriation of funds in necessary to complete a study of impact fees in 2018. This $100,000 is planned to be split among Town capital funds, based upon historical revenue amounts.
A listing of all requests for supplemental appropriations for the First Amendment to the 2018 Budget, including written justification is included in Attachment B.
In addition to the supplemental appropriations requests, departments will carry forward unspent appropriations, referenced in Attachment C, for capital projects that were planned and funded as approved by Town Council in 2017. The total amount of capital funding in 2017 planned to be re-appropriated into the 2018 budget is $24,563,609.
The following chart identifies these requests by fund:
|
Fund |
Capital Amount for Carryover |
Significant Projects Included in the Carryover Amount |
|
General Fund |
$ 1,501,424 |
The General Fund is carrying forward funds for the Public Safety Training Facility, for the new Town Mobile Application, and unspent 2015 TABOR surplus funds |
|
Transportation Fund |
$ 880,750 |
Public Works projects requiring carryforward of unspent 2017 budget include funding for ongoing upgrades to the Town's traffic signal system and design costs related to the Meadows Parkway reconstruction project |
|
Conservation Trust Fund |
$ 97,798 |
The Conservation Trust Fund is carrying forward unspent funds from 2017 related to design and construction of park improvements |
|
Downtown Development Auth. TIF Fund |
$ 199,469 |
The Finance Department is carrying forward funds to maintain flexibility to complete unforeseen downtown projects |
|
Parks & Recreation Capital Fund |
$ 599,863 |
The Parks & Recreation Capital Fund requires capital carryforward of unspent funds from 2017 for the completion of Festival Park as well as design of a new neighborhood park |
|
Municipal Facilities Capital Fund |
$ 3,587,301 |
The Deputy Town Managers Office is carrying forward funds for design and construction of the Central Service Center |
|
Fire Capital Fund |
$ 3,679,203 |
The Fire Department is carrying forward remaining 2017 funds for completion of the new Fire Station 152 in Crystal Valley Ranch |
|
Transportation Capital Fund |
$ 1,798,728 |
The Public Works Department requires carryforward of remaining 2017 Budget related to the Founders Parkway and Allen Way project, the Founders Parkway and Crowfoot Valley Road project, the Ridge Road widening project and for improvements at the intersection of Highway 86/5th Street/Ridge Road |
|
Water Fund |
$ 2,989,894 |
Castle Rock Water is carrying forward funds for ongoing well redrills, valve actuators, and improvements for Castle Rock Water buildings |
|
Water Resources Fund |
$ 4,478,293 |
Castle Rock Water is carrying forward funds for Water Infrastructure, Advanced Oxidation facility, Chatfield Reallocation, and improvements on various Castle Rock Water buildings |
|
Stormwater Fund |
$ 1,108,785 |
Castle Rock Water is carrying forward remaining funds for multiple Stabilization projects, drainage improvements, and improvements on Castle Rock Water buildings |
|
Wastewater Fund |
$ 1,866,332 |
Castle Rock Water is carrying forward remaining funds for Plum Creek Interceptor, Plum Creek Water Reclamation Authority, Castle Oaks Lift Station, and building improvements on Castle Rock Water buildings |
|
Golf Course Fund |
$ 158,675 |
Parks & Recreation is carrying forward unspent capital funds related to ongoing improvements such as bunker renovation, revegetation, and practice facility improvements at Red Hawk Ridge and the purchase of a tractor with attachments |
|
Development Services Fund |
$ 300,134 |
The Development Services Fund is carrying forward unspent capital funds to complete items related to the Town Hall expansion project |
|
Fleet Services Fund |
$ 1,211,960 |
The Fleet Division is carrying forward remaining 2017 funds to complete various outstanding vehicle purchases, including a fire truck, fire brush truck, and a bucket truck for traffic signal maintenance |
As per section 9-15 of the Town Charter, appropriations for capital expenditures do not lapse and are automatically re-appropriated into the next year’s budget. Therefore, these continuing appropriations are provided for Council’s review. These items are detailed in Attachment C.
Budget Impact
As presented in Attachment D, the Finance Department has ensured that funding is available through either revenues and/or fund balance for one-time expenditures, maintaining adequate reserves within each fund. A summary of the proposed total increase in 2018 expenditure appropriation changes by fund is shown in the following table:
Staff Recommendation
Staff recommends that Town Council approve the Ordinance as introduced by title.
Proposed Motion
“I move to approve an Ordinance Approving Supplemental Appropriations for 2018 and the First Amendment to the 2018 Budget Authorizing Changes for Year 2018.”
Attachments
Attachment A: Ordinance
Attachment B: Requests for Supplemental Appropriation
Attachment C: Unspent 2017 Capital Project Allocations Carryover for Fiscal Year 2018
Attachment D: Estimated Ending Funds Available for 2018