To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Update: 2017 Third Quarter Financial Review, Period Ending September 30, 2017
Body
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Executive Summary
Significant progress toward Town priorities has been accomplished through September 2017. The following discussion and financial information reflects the overall positive financial condition of the Town and highlights the continued focus on strategic priorities established by Council. These priorities include:
• Ensuring outstanding public safety: Construction of the new Fire Station 152 is underway along with the fabrication of new apparatus that will be housed at the Crystal Valley station. In addition, the Police Department has hired two additional officers previously approved as part of the 2017 Budget.
• Securing our water future: Castle Rock Water is working to provide high quality water service to customers, with a focus on the goal of bringing additional renewable water to the Town. Multiple projects are underway, including construction of additional groundwater wells, ongoing WISE partnership work and the acquisition of additional water rights and storage capacity.
• Enhancing our transportation: Design is underway on multiple growth related transportation projects, including the widening of Ridge Road, improvements at Crowfoot Valley Road and Founders Parkway and improvements at Allen Way and Founders Parkway. In addition, construction is underway on multiple street reconstruction projects and the annual Pavement Maintenance Program.
• Maintaining strong parks and recreation: The renovation of Festival Park is underway and is currently scheduled to be open for the annual Starlighting event in November.
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
• Incorporation of two Council approved budget amendments
• The year-end estimates reflected here have been revised since the second quarter report and information reflected in the 2018 Budget
The overall financial condition of the Town through the third quarter remains strong, as evidenced by the information that follows. The year to date budget represented in this report has been adjusted to reflect seasonal trends and one-time items within funds in order to provide a more accurate reflection of Town financial trends at this point in the year.
Total revenues for the Town are under budget through September by $825 thousand, or less than 1% and are estimated to end the year slightly over budget. Town wide expenditures are about 22% lower than budget, which is primarily due to the timing of capital expenditures and other projects. Overall expenditures are expected to end 2017 about 12% under budget.
While several factors contribute to the overall financial picture of the Town, below are other items of note through the third quarter of 2017:
• Net sales tax collections are higher by an estimated 10% when compared to the same period of 2016
• General Fund operational expenditures are about 6% lower than the amended budget through the third quarter
• Overall development activity remains steady in the town for 2017. However, some variation may be found in some funds due to the type and square footage of actual development activity through the third quarter.
Staff also continues to monitor revenue trends concerning the Taxpayer Bill of Rights (TABOR) and will continue to evaluate significant revenue sources such as Sales Tax and update 2017 TABOR calculations accordingly.
Proposed Motion
This memo is intended to be for discussion purposes only.
Attachments
Attachment A: 2017 Third Quarter Financial Reports
Schedule A - General Fund
Schedule B - Transportation Fund
Schedule C - Parks and Recreation Capital Fund
Schedule D - Municipal Facilities Capital Fund
Schedule E - Fire Capital Fund
Schedule F - Police Capital Fund
Schedule G - Transportation Capital Projects Fund
Schedule H - General Long Term Planning Fund
Schedule I - Water Fund
Schedule J - Water Resources Fund
Schedule K - Stormwater Fund
Schedule L - Wastewater Fund
Schedule M - Golf Course Fund
Schedule N - Community Center Fund
Schedule O - Development Services Fund
Schedule P - Employee Benefits Fund
Schedule Q - Fleet Services Fund
Schedule R - Conservation Trust Fund
Schedule S - Philip S. Miller Trust Fund
Schedule T - Public Art Fund
Schedule U - Economic Development Fund
Schedule V - Police Forfeiture Fund
Schedule W - Downtown Development TIF Fund
Schedule X - Special Events Fund
Schedule Y - Townwide Summary
Attachment B: Third Quarter Sales Tax Collections by Category and Geographical Area