To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Ordinance Approving Supplemental Appropriations for the 2025 Budget and the Second Amendment to the 2025 Budget (Second Reading - Approved on First Reading on July 15, 2025, by a vote 7-0)
Body
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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 Second Amendment to the 2025 Budget total $81,526,589. Also, an additional $82,695,142 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 $81,526,589. 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 $62,509 for the purchase of telescoping valves to be installed at the Plum Creek Water Purification Facility.
Enhancing our transportation
• The Public Works Department is requesting to re-appropriate Transportation funds totaling $1,447,046 for the Pavement Maintenance Improvement Plan. These funds were budgeted for and went unspent in 2024.
• The Public Works Department is requesting to re-appropriate Transportation funds totaling $424,343 for bridge repair and maintenance. These funds were budgeted in for and went unspent in 2024.
• The Public Works Department is requesting supplemental funds of $1,100,000 in the Transportation Capital fund for the Crowfoot Valley Road Widening project to accommodate additional construction costs.
• The Public Works Department is requesting supplemental appropriation in the Fleet Fund totaling $325,451 for the purchase four vehicles for the Police Department, three of which are partially funded by a grant from the Douglas County School District. This request is off-set with an increase in revenue appropriation.
• The Public Works and Finance Departments are requesting to reduce the General Fund interfund loan amount by ($6,500,000) to the Transportation Capital Fund as the loan is no longer needed for the Crystal Valley Parkway Interchange project.
• The Public Works Department is requesting to re-appropriate 2024 revenue budget in the Transportation Capital Fund of $5,690,671 related to the Crystal Valley Interchange project.
Maintain strong Parks and Recreation
• The Parks and Recreation Department is requesting supplemental appropriation of $76,500,000 in the Parks and Recreation Capital Fund to accommodate COP issuance costs and construction costs of the Sports Development Center. This request is offset by a corresponding revenue appropriation increase to recognize the COP proceeds.
• The Parks and Recreation Department is requesting supplemental appropriation of $491,592 in the Lodging Tax Fund miscellaneous services account to ensure that sufficient expenditure appropriation is available to fund projects as they arise.
Ensure outstanding public safety
• The Police Department is requesting supplemental appropriation of $234,402 in the General Fund for the addition of one School Resource Sergeant and related equipment that is reimbursed 50% by Douglas County School District per Council approved agreement. This request is partially offset by a corresponding revenue appropriation increase.
• The Police Department is requesting supplemental appropriation in the General Fund of $248,451 for the purchase of three vehicles associated with two School Resource Officers and one School Resource Sergeant that is reimbursed 50% by Douglas County School District per Council approved agreement. This request is partially offset by a corresponding revenue appropriation increase.
• The Police Department is requesting supplemental appropriation of $77,000 in the Police Capital Fund to purchase a vehicle for the Downtown Liaison Officer.
• The Fire Department is requesting to re-appropriate unused TABOR funds of $329,483 for town-wide Fire mitigation efforts. These funds were budgeted for and went unspent in 2024.
• The Fire Department is requesting additional appropriation in the TABOR Fund of $6,000,000 to fund an interfund loan to the Fire Capital Fund for the design and construction of the new Fire Station 156. This loan is from TABOR but will be paid back to the General Fund in accordance with the loan agreement.
• Finance is requesting additional appropriation in the TABOR fund of $107,032 to transfer interfund loan principal and interest payments from the Police Capital Fund for the Police Department basement remodel that were erroneously paid to the TABOR fund in 2024 and should have been paid to the General Fund. This request is offset by a corresponding revenue appropriation increase in the General Fund.
• The Facilities Division is requesting to re-appropriate $99,409 in unspent 2024 building repair and maintenance funds in the General Fund to repair the stairs and make improvements to the parking area on the west side of the Police Department.
Other Town funds and initiatives
• Finance is requesting additional revenue appropriation to recognize $126,840 in capital grants from the Efficiency and Energy Conservation Block Grant. This request was originally included in the first 2025 budget amendment as an item but was not included in the total General Fund revenue in error, therefore it is included in this budget amendment to fix that error.
• The Division of Innovation and Technology is requesting to re-appropriate $229,844 in unspent IT Governance funds in the General Fund to be used for various town-wide web accessibility related costs.
• The Division of Innovation and Technology is requesting to re-appropriate $60,248 in unspent computer software and software maintenance agreement funds in the General Fund to be used for Microsoft server licensing and Vmware host software licensing for servers that were purchased in 2024.
• The Facilities Division is requesting to re-appropriate $87,099 in the General Long-Term Planning Fund technical services account for remediation efforts at Town Hall and 830 N. Wilcox St.
• The Public Works Department is requesting to re-appropriate $122,680 in the General Long-Term Planning Fund for repair and maintenance of Town owned parking lots. These funds went unspent in 2024 due to timing.
• The Division of Innovation and Technology is requesting to re-appropriate $80,000 in the General Long-Term Planning Fund telecommunications account for a phone system replacement that was planned in 2024 but did not occur due to timing and other prioritized projects.
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 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 2025