To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller CPA, Finance Director
Title
Ordinance Approving the Second Amendment to the 2023 Fiscal Year Budget by Making Supplemental Appropriations for the 2023 Fiscal Year, and Providing for the Emergency Adoption of this Ordinance on First and Final Reading
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 four years and the budget amendments approved to date in 2023.
Supplemental expenditure requests in this proposed Second Amendment to the 2023 Budget total $191,637,745. Also, an additional $165,795,674 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 Second Amendment to the 2023 Budget. Following is a summary of requested items.
Discussion
Total requested changes to appropriations referred to in Attachment B increase total expenditures for 2023 by $191,637,745. Major requests included in this budget amendment are described below and are grouped by Town priority.
Secure our water future
• Castle Rock Water requests supplemental appropriation of funds totaling $15,333,089. This includes funding for new Aquifer Storage and Recovery wells, a new Technical Engineering Manager, Water Plant Operators, a vehicle for the new Water Plant Operators, and funding for ongoing work for Reservoir upgrades adjacent to Plum Creek to optimize the raw water storage capacity on the Plum Creek Trust property near Sedalia, Colorado. The total finished storage capacity of the two reservoirs is estimated to be 1,340 acre-feet (AF).
• Castle Rock Water is requesting supplemental appropriation of $10,500,000 to enter into an interfund loan to the Transportation Capital fund for the Crystal Valley Parkway Interchange project. These funds will cash flow the project and be paid back with interest.
Enhancing our transportation
• The Public Works Department is requesting supplemental appropriation of $93,665,909 for the Crystal Valley Parkway Interchange project. This budget includes the remaining expenses and revenues needed to complete and fund the project. The department is also requesting supplemental appropriation of $37,500,000 to repay the interfund loans with interest.
• The Public Works Department is requesting supplemental appropriation of $926,492 for the Craig and Gould North project. This project was originally approved and budgeted for in 2022, and the project is still ongoing.
• The Public Works Department is requesting supplemental appropriation of $311,635 for an Asphalt Patch Truck. This truck was originally budgeted in 2022 but was delayed due to supply chain issues.
• The Public Works Department requests supplemental appropriation of $71,308 for emergency snow removal funds. Due to extreme weather conditions in early 2023, additional actions were undertaken to remove snow pack from residential roads.
Maintain strong Parks and Recreation
• The Parks and Recreation Department requests supplemental appropriation of $2,557,366 for the design development of the Sports Development Center.
• The Parks and Recreation Department requests supplemental appropriation of $1,146,561 for the design and construction of Plum Creek North park. The expenses for the project came in higher than initially anticipated.
Ensure outstanding public safety
• The Police Department requests supplemental appropriation of $21,868 from the Police Forfeiture Fund for a Cardio Screening program provided by Sigma Wellness.
• The Fire Department requests supplemental appropriation of $253,735 out of the Fire Capital fund to purchase a Fire Brush Truck for the new fire station 156.
Other Town funds and initiatives
• The Finance Department is requesting supplemental appropriation of $18,000,000 to begin an interfund loan to the Transportation Capital fund for the Crystal Valley Parkway Interchange project. These funds will cash flow the project and be paid back with interest.
• The Finance Department is requesting supplemental appropriation of $1,800,000 for the Quiet Zone project. As council previously approved, the $1,800,000 quiet zone is being paid by the Downtown Development Authority special fund ($900,000) and the Encore developer ($900,000).
• The Finance Department is requesting supplemental appropriation of $50,000 related to the State of Colorado’s Bag Fee (HB 21-1162,HB 23-1285). Amounts are estimated and actual revenues received will be fully spent according to State requirements.
The additional amount of expenditures 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. In order to have the funds appropriated and available to enter into upcoming contracts for the Crystal Valley Interchange project, staff is requesting approval of this ordinance on first reading and final reading, with emergency adoption.
Proposed Motion
I move to approve on the Ordinance as introduced by title, on first and final reading.
Alternative Motions
“I move to approve the resolution 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 2023