To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Pete Mangers, Assistant Finance Director on behalf of Trish Muller, CPA, Finance Director
Title
Ordinance Approving the First Amendment to the 2025 Fiscal Year Budget by Making Supplemental Appropriations for the 2025 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.
Supplemental expenditure requests in this proposed First Amendment to the 2025 Budget total $17,566,084. Also, an additional $67,100,481 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 First Amendment to the 2025 Budget. Following is a summary of requested items.
Discussion
Total requested changes to appropriations referred to in Attachment B increase total expenditures for 2025 by $17,566,084. 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 totaling $341,199 for the addition of two Supervisory Control and Data Acquisition (SCADA) positions: one Network Engineer and one System Administrator, split 50/25/25 to Water, Water Resources, and Wastewater respectfully. The need for these positions was identified in the 2025-2029 SCADA Master Plan.
• Castle Rock Water is requesting supplemental appropriation totaling $56,769 for the purchase and related operating costs of a new truck for the two new SCADA positions.
• Castle Rock Water is requesting supplemental appropriation totaling $260,718 for the addition of two Raw Water System Operator positions which will be split between Field Operations and SCADA. These positions are necessary to continue operating the surface water diversions in a safe, efficient, and cost-effective manner.
• Castle Rock Water is requesting supplemental appropriation totaling $235,750 for the purchase and related operating costs of a new truck and a Mini Excavator for the two new Raw Water System Operator positions.
• Castle Rock Water is requesting supplemental appropriation totaling $1,762,420 for the Fifth Street Water and Sanitary Improvement project construction phase. This expense is partially offset by an increase in revenue appropriation of $97,195 as a reimbursement from Public Works related to the 5th Street Widening project and subject to Council approval of the Extraterritorial wastewater service agreement.
• Castle Rock Water is requesting supplemental appropriation of $318,241 to fund an anticipated shortfall in the funds needed to purchase a replacement Vacuum Truck. This was partially budgeted in 2024, but due to timing the purchase of the replacement was not completed.
Enhancing our transportation
• • The Public Works Department is requesting supplemental appropriation of $27,000 to
• purchase a box blade for a front-end loader to improve snow plowing efficiency.
• • The Public works Department is requesting supplemental appropriation of $118,244 for
• an additional Street Maintenance Technician, including personnel, uniform and
• operating costs.
• • The Public Works Department is requesting supplemental funds of $50,000 to
• purchase a replacement sign printer, as the current printer is frequently inoperable.
• • The Public Works Department is requesting additional funds of $35,000 to supplement
• the Transportation Planning and Traffic Engineering budget for repair and maintenance
• of signals and street lights, as well as to conduct traffic counts and underground
• locates. Funds are needed in order to maintain current level of service, as costs have
• increased due to inflation.
• • The Public Works Department is requesting supplemental funds of $94,300 to
• supplement the Transportation Planning and Traffic Engineering roadway repair and
• maintenance budget. Funds are needed to ensure public safety on our roadways and
• to maintain the current level of service, as costs have increased due to inflation.
• • The Public Works Department is requesting supplemental funds of $18,400 to repair
• the floor in the Service Center bathrooms.
• • The Public Works Department is requesting supplemental funds of $80,000 to perform
• a study to evaluate the impacts, requirements, and opportunities of the new Castle
• Rock Urbanized Area (UZA) designation and the potential for additional funds through
• the Federal Transit Administration (FTA). This study is partially funded by an increase
• in revenue appropriation of $50,000 combined from Douglas County and Castle Pines,
• per intergovernmental agreement.
• • The Public Works Department is requesting supplemental funds of $500,000 to
• supplement maintenance for the N. Meadows Bridge over Highway 85 and Plum Creek
• Parkway Bridge over the Union Pacific Railroad (UPPR) project.
• • The Public Works Department is requesting supplemental funds of $800,000 for the
• reconstruction portion of Crowfoot Valley Road Widening project. These funds were
• budgeted in 2024, but due to delays the project will not go out for bid until 2025.
• • The Public Works Department is requesting supplemental appropriation in the Fleet
• Fund totaling $1,135,000 for the purchase of a reserve engine and an ambulance for
• the Fire and Rescue Department. This request is off-set with an increase in revenue
• appropriation.
• • The Public Works Department is requesting supplemental appropriation in the Fleet
• Fund totaling $267,000 for the purchase of two trucks and one mini excavator for
• Castle Rock Water. This request is off-set with an increase in revenue appropriation.
• • The Public Works Department is requesting supplemental appropriation in the Fleet
• Fund of $318,241 to supplement the purchase of a replacement Vacuum Truck for the
• Wastewater Fund. This request is off-set with an increase in revenue appropriation.
• • The Public Works and Finance Departments are requesting to re-appropriate unspent
• 2024 funds consisting of $6,500,000 in General Funds and $1,000,000 in
• Transportation Funds for interfund loans to the Transportation Capital Fund to provide
• cash flow for Crystal Valley Parkway Interchange project. The loan will be paid back in
• accordance with the agreement.
• • The Public Works Department is requesting to re-appropriate 2024 revenue budget in
• the Transportation Capital Fund of $63,991,815 related to the Crystal Valley
• Interchange project.
Maintain strong Parks and Recreation
• The Parks and Recreation Department is requesting supplemental appropriation of
$50,000 in General Funds to repair the Rock Park Access Road. This was originally
budgeted in 2024 but due to price increases the project was delayed and was not able
to be completed in 2024.
• The Parks and Recreation Department is requesting additional appropriation in the
Public Art fund of $100,000 in accordance with Ordinance No. 2024-010, which
indicates funds shall be used for public art programming and community grants, which
shall be subject to the approval of Town Council. This expense appropriation is off-set
by a transfer in of revenue from the Lodging Tax Fund.
• The Parks and Recreation Department is requesting supplemental appropriation in the
Parks and Recreation Capital Fund of $1,110,232 to obtain Contract Administration
services for the proposed Sports Development Center. This was not included in the
original 2025 budget request as the project had not yet been finalized at the time of budget development.
• The Parks and Recreation Department is requesting to re-appropriate unspent 2024 General Long-Term Planning funds of $129,500 for the resurfacing of Metzler Ranch Park inline courts and Gemstone Park tennis courts as the projects were unable to be completed in 2024.
• The Parks and Recreation Department is requesting supplemental appropriation in the Golf Course Fund of $150,000 to update the pump station, which includes all electrical work and roof removal and replacement. Funds were included in the 2025 budget for this project but costs have continued to increase, therefore, these additional funds are needed. Source of funds is the Golf Fund capital reserve balance.
Ensure outstanding public safety
• The Fire Department is requesting supplemental appropriation of $800,000 to purchase a reserve engine and related equipment due to parts no longer being manufactured for the International engines that are currently in the existing KME apparatuses. This engine will serve as a reserve engine in the event that a KME engine is out of service. Source of Funds for this purchase is fund balance due to expenditure savings in Fire for the 2024 budget year.
• The Fire Department is requesting supplemental appropriation to recognize an additional $500,000 of Use Tax revenue in the Public Safety Fund and to transfer that revenue into the General Fund for the purchase of a new ambulance and related equipment for Fire Station 155 due to increased call volume. The staff for this unit was added in the 2025 budget as part of the passing of the .2% public safety sales and use tax ballot item.
• The Fire Department is requesting supplemental appropriation of $40,000 for a Continuity of Operation Plan (COOP) Consultant to assist in the development of the Town's plan. This item was approved as part of the 2025 budget; however, it was not included in the final budget document in error.
• The Police Department is requesting supplemental appropriation of $141,230 for continued mental health support funded through a grant awarded in 2024 by Colorado Department of Local affairs. This request is offset by a corresponding revenue appropriation increase.
Other Town funds and initiatives
• The Town Manager's Office is requesting additional appropriation of $126,840 in Finance Non-Departmental to purchase electric-powered equipment for Parks, Golf, Public Works, and Castle Rock Water, which will help Departments comply with the Air Quality Commission's Regulation 29 (effective 2025) which prohibits use of small gas-powered equipment during the months of June, July and August. This purchase is offset by a corresponding revenue appropriation increase of federal funds from the Efficiency and Energy Conservation Block Grant.
The additional amount of expenditure appropriation requested in this amendment are shown below and are grouped by Town fund.
Other Town funds and initiatives
• The Town Manager's Office is requesting additional appropriation of $126,840 in Finance Non-Departmental to purchase electric-powered equipment for Parks, Golf, Public Works, and Castle Rock Water, which will help Departments comply with the Air Quality Commission's Regulation 29 (effective 2025) which prohibits use of small gas-powered equipment during the months of June, July and August. This purchase is offset by a corresponding revenue appropriation increase of federal funds from the Efficiency and Energy Conservation Block Grant.
The additional amount of expenditure appropriation requested in this amendment are shown below and are grouped by Town fund.
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 the as introduced by title.”
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 2025