To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Update: 2017 First Quarter Financial Review, Period Ending March 31, 2017
Body
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Executive Summary
The 2017 Budget reflects the priorities and direction of the Town of Castle Rock. Progress toward these strategic priorities is underway through the first quarter of the year including:
• Ensuring our Water Future: Although the 2017 construction season is just beginning, Castle Rock Water is underway with numerous projects including WISE Infrastructure and several system improvements. This includes water rights acquisition, pipeline capacity purchase, groundwater well drilling, and the planned purchase of water rights and infrastructure in Douglas County.
• Enhancing our Transportation: Planning is underway for several projects to improve transportation around Castle Rock. Projects include the construction of a roundabout at 3rd and Perry Streets, design of intersection improvements at Founders Parkway and Crowfoot Valley Road and Founders Parkway and Allen Way.
• Ensuring our Public Safety: Design of Fire Station 152 continued through the first quarter with plans to bring construction contract information to Town Council later in the year. Additionally, the Police Department has added two new patrol officers as approved as part of the 2017 Budget.
• Maintaining Strong Parks and Recreation: Improvements to Festival Park are underway and are expected to be complete by the end of 2017.
The financial information in this report also includes:
• Discussion and financial summaries by major category for each fund included in the Town’s financial information
• 2016 Audited Year-end numbers
• First Amendment to the 2017 Budget items as approved by Town Council at the April 4 and April 18, 2017 meetings, including the voter approved expenditure of the 2015 TABOR surplus amount
• Items requested as part of the Second Amendment to the 2017 Budget have been included in this financial information in order to provide the most accurate reflection of fund balance information. The budget amendment items include $3 million for the purchase of a Public Safety Training Facility, $1.5 million for additional WISE Canyons Pipeline costs, $114,900 for stream stabilization and $225,000 for sewer main construction.
While the financial position of the town remains strong, it is generally premature to project annual financial performance for the Town based upon three months of the year, which is reflected in this report. The year to date budget represented in this report has been adjusted to reflect seasonal trends within funds in order to provide a more accurate reflection of Town financial trends for the first three months of the year.
Total revenues for the Town are about 3% lower or about $1.3 million less, than the budget for the first three months of the year. This is related to timing of system development fee revenue that is related to development activity in the town. Town wide expenditures are 25% lower than budget, which is primarily due to the timing of capital expenditures and other projects.
While several factors contribute to the overall financial picture of the Town, below are other items of note from the first quarter of 2017:
• Sales tax collections are higher by more than 12% when compared to January - March 2016
• General Fund operational expenditures are about 10% lower than the amended budget for the first quarter.
Overall development activity remains steady in the town during the first quarter. However, some variation may be found in some funds due to the type and square footage of actual development activity during the first quarter.
Proposed Motion
This memo is intended to be for discussion purposes only.
Attachments
Attachment A: 2017 First Quarter Financial Reports
1. Schedule A - General Fund
2. Schedule B - Transportation Fund
3. Schedule C - Parks and Recreation Capital Fund
4. Schedule D - Municipal Facilities Capital Fund
5. Schedule E - Fire Capital Fund
6. Schedule F - Police Capital Fund
7. Schedule G - Transportation Capital Projects Fund
8. Schedule H - General Long Term Planning Fund
9. Schedule I - Water Fund
10. Schedule J - Water Resources Fund
11. Schedule K - Stormwater Fund
12. Schedule L - Wastewater Fund
13. Schedule M - Golf Course Fund
14. Schedule N - Community Center Fund
15. Schedule O - Development Services Fund
16. Schedule P - Employee Benefits Fund
17. Schedule Q - Fleet Services Fund
18. Schedule R - Conservation Trust Fund
19. Schedule S - Philip S. Miller Trust Fund
20. Schedule T - Public Art Fund
21. Schedule U - Economic Development Fund
22. Schedule V - Police Forfeiture Fund
23. Schedule W - Downtown Development TIF Fund
24. Schedule X - Special Events Fund
25. Schedule Y - Townwide Summary
Attachment B: First Quarter Sales Tax Collections by Category and Geographical Area