To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Ordinance Approving the Seventh Amendment to the 2016 Budget and Authorizing Changes in Appropriations for Year 2016 to Fund the Possible Issuance of a Contract for Festival Park Expansion Project, Providing for its Emergency Adoption on Second and Final Reading (Second Reading - Approved on First Reading on October 18, 2016 with a vote of 4-1)
Body
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Ordinance was approved on First Reading on October 18, 2016 with a vote of 4-1 with no changes.
Executive Summary
Within this Seventh Budget Amendment for 2016, there is one requested item which is to accommodate increased expense as identified for the low bid for construction of Festival Park. This ordinance would allow for a proposed funding structure to be in place, in the event that Council, on October 18, decides that they would like to pursue the option presented by the Parks & Recreation Department, to enter into a contract for construction of Festival Park, at the November 1 Council meeting.
(Attachment B) includes the supplemental appropriation items and (Attachment C) details estimated ending funds available for 2016.
Discussion
Council in 2012 affirmed that the expansion and redevelopment of Castle Rock’s only downtown park, Festival Park, was recommended to be pursued. At a 2014 work session with the Downtown Development Authority, Council identified the reconstruction of the park as a priority downtown project. Council, again in 2015, demonstrated support for the effort, in keeping with the Council priority of Economic Development and maintaining community character, by directing staff to proceed with the plans, as presented in October and November.
A proposed funding structure for the park, identified in 2015 and included in the Adopted 2016 Budget accommodated $4.5 million, plus $500k in 2015 for construction documents for the project. Since the Downtown Development Authority is a partner in funding this initiative, $2.5 million in DDA TIF funds have been committed thus far to the project. The remaining $2.5 million of the project funds were committed by the Town through the following: Conservation Trust, Parks Capital, General Long Term Planning and Stormwater funds.
On September 13, 2016 the Parks and Recreation Department received bids from four General Contractors, as identified in (Attachment D), the September 21 memo to the Parks and Recreation Commission. Bid results were presented to the DDA and to the Commission, which reflect the lowest bid, plus identified soft costs such as geotechnical testing, permit fees, etc. coming in at $1,891,052 higher than the currently budgeted amount for the project, for a total project cost of $6,391,052 for 2016. The DDA has expressed interest in working together with the Town in closing the funding gap by contributing 50% of the additional funds needed for the low bid.
Parks and Recreation staff have worked with the Town Manager and Finance staff to generate solutions to address the funding gap and propose the following within this requested budget amendment:
|
Total amount needed |
$1,891,052 |
|
|
|
|
Cash funding from the DDA TIF Fund (appropriated in 2016) |
$495,526 |
|
|
|
|
Loan from the General Fund to be paid back with Line of Credit Funds generated by DDA TIF by 2018, as reflected in (Attachment E) |
$450,000 |
|
|
|
|
Remaining DDA TIF funds in the General Fund from 2012-2014 collected TIF increment (appropriated in 2016) |
$92,806 |
|
|
|
|
Contribution of Funds from Unobligated General Fund balance |
$852,720 |
|
|
|
|
Total amount provided through scenario |
$1,891,052 |
Within this proposed request, some of the proposed amounts are already currently appropriated within the 2016 Budget and are not requested to be appropriated through this budget amendment, however displayed to illustrate capacity. The total net additional cost to the General Fund is as shown above $852,720.
Emergency adoption is requested for this budget amendment to allow for the Town to enter into a contract following the November 1 Council meeting, in the event that Council chooses to do so, following the October 18 presentation of information by the Parks and Recreation Department.
The changes of appropriation in this proposed Seventh Budget Amendment include items requested for consideration for supplemental appropriation. (Attachment B) includes the supplemental appropriation request.
Budget Impact
As presented in (Attachment C), the Finance Department has ensured that funding is available within the fund balance of each fund. A summary of the proposed total change in 2016 expenditure appropriation changes by fund is shown in the following table:
Staff Recommendation
Staff recommends that Town Council approve the Ordinance on first reading. Staff plans to bring the second reading of the Ordinance to the November 1, 2016 Council meeting.
Proposed Motion
“I move to approve An Ordinance Approving the Seventh Amendment to the 2016 Budget and Authorizing Changes in Appropriations For Year 2016, Providing for its Emergency Adoption on Second and Final Reading”
Attachments
Attachment A: Ordinance
Attachment B: Requests for Supplemental Appropriation
Attachment C: Estimated Ending Funds Available for 2016
Attachment D: Parks and Recreation Commission Memo for Festival Park Construction
Attachment E: Proposed payment schedule for loaned funds from the General Fund, paid back
by the DDA TIF increment Line of Credit