To: Honorable Mayor and Members of Town Council
From: Kristin Zagurski, Senior Management Analyst
Title
2017 Service Contract Funding Requests
Body
________________________________________________________________________________
Executive Summary
Each year, Town Council reviews requests from service organizations for funding their operations and/or community events and services. Attached are applications from the organizations. Four of the organizations are requesting a funding increase for 2017; the remainder are requesting the same funding level as this year:
Organization 2016 Funds 2017 Request
Castle Rock Chamber of Commerce $99,720 $99,720
Castle Rock Downtown Development Authority $140,549 $150,000
Castle Rock Economic Development Council $180,550 $197,586
Castle Rock Historical Society/Museum $71,000 $73,000
Castle Rock Senior Center $120,000 $120,000
Douglas County Housing Partnership $35,000 $35,000
Douglas County Youth Initiative $19,800 $19,800
Downtown Merchants Association $57,600 $75,000
More detailed summaries of the applications follow this overview. In addition, these organizations will make brief presentations at this Town Council meeting. No final decisions regarding 2017 funding requests are necessary at this time. Staff has the budgeted amounts the organizations requested in the Proposed 2017 Budget. The contracts ultimately will be administered according to how Council approves them toward the end of 2016.
Discussion
Each year, the Town contracts with various community organizations for services that the Town might otherwise directly provide the community. By contracting through these organizations, the Town leverages its funds with other dollars. The organizations also bring volunteer support, expertise and other resources to the table, which result in the Town receiving a better return on investment and level of service than if the Town provided the services directly.
This section summarizes each organization’s 2017 funding application in these areas:
• The amount of Town funds requested
• The services to be provided
• The anticipated outcomes of the services
• The leveraging of Town funds with other dollars and volunteer resources
• If applicable, the amount of additional funds requested this year, and an explanation of the request
Castle Rock Chamber of Commerce
Amount of Town funds requested: $99,720
Services to be provided:
• Events: Artfest, the Douglas County fair parade and Starlighting
• Business support services: Economic Gardening and Leadership Douglas County
• Community marketing
• Administration: Event/program staffing and operations
Anticipated outcomes of services:
Enhanced social and cultural experiences, educational excellence and recreational opportunities and assistance in business success.
How Town funds will be leveraged with other dollars and volunteer resources:
The Chamber’s main source of income is events/sponsorships, followed by membership investment and the service contract with the Town. The amount requested for 2017 would represent 12 percent of the Chamber’s total anticipated annual revenues. Volunteers provide services valued at over $33,500 in conjunction with several Chamber initiatives, including business counseling and Leadership Douglas County.
Castle Rock Downtown Development Authority
Amount of Town funds requested: $150,000
Services to be provided:
• Façade improvement, flower box, patio and trolley programs
• Rink at the Rock management, equipment, operations, installation, teardown and utilities
• Professional services, marketing and public website
Anticipated outcomes of services:
Increased economic activity; charm and pedestrian activity; and sales and traffic within Downtown.
How Town funds will be leveraged with other dollars:
The requested contribution is a match of the revenue generated through the DDA’s
3 mill property tax levy. Sales ($85,000) and sponsorships ($25,000) for Rink at the Rock are other major sources of revenue expected in 2017.
Additional funds requested this year:
This year’s request represents a $9,451 increase over last year’s funding. Though the mill levy remains the same, property valuations are anticipated to increase, which will lead the revenue generated by the mill levy to correspondingly increase. Valuation information will be finalized toward the end of 2016, which will determine the actual amount of the matching funds.
Castle Rock Economic Development Council
Amount of Town funds requested: $197,586
Services to be provided:
• Attracting developers and primary employers to Castle Rock
• Growing Castle Rock’s existing businesses
• Developing and recruiting retail businesses
• Creating a positive business environment
• Counseling the Town on economic development agreements
Anticipated outcomes of services:
Primary employers create jobs and bring new dollars to the community’s economy. Strong retail strengthens the Town’s tax base, enhancing its ability to provide core services.
How Town funds will be leveraged with other dollars:
Town investment at the requested level would represent about 27 percent of the EDC’s projected revenue for 2017, which also includes as major revenue sources private sector investment ($227,000) and Downtown Development Authority/Downtown Merchants Association reimbursements for services ($246,500).
Additional funds requested this year:
This year’s request represents a $17,036 increase over last year’s funding. The majority of the requested funds would go toward personnel ($149,461), followed by national and regional events/conferences ($25,750), rent/office ($17,035) and website/computers ($5,340).
Castle Rock Historical Society/Museum
Amount of Town funds requested: $73,000 (from the Philip S. Miller Fund)
Services to be provided:
• Preserve the history of the Castle Rock area
• Hold open the Castle Rock Museum four days per week, five hours per day, excluding holidays, and provide exhibits at the museum
• Provide historical tours and presentations
• Assist economic development by presenting the development of Castle Rock from founding to present and encouraging the growth of local businesses,
while preserving the small-town atmosphere
Anticipated outcomes of services:
Provision of a sense of place, and a destination, for the community and visitors.
How Town funds will be leveraged with other dollars and volunteer resources:
The requested contribution represents about 81 percent of the Historical Society’s projected revenue for 2017. Fundraising and grants are expected to bring in $13,700. Volunteers run tours and guide visitors, donate artifacts and perform maintenance duties at the Museum.
Additional funds requested this year:
This year’s request represents a $2,000 increase over last year’s funding. The increase would be used to cover increases in basic operational costs, as well as an increased emphasis on fundraising.
Castle Rock Senior Center
Amount of Town funds requested: $70,000 for operations (from the Philip S. Miller Fund) and $50,000 for transportation services (funded through Public Works)
Services to be provided:
• Transportation services for older residents
• Educational, social, health and recreational programs and services and volunteer opportunities for seniors
Anticipated outcomes of services:
Provision of educational, social, health and recreational programs for seniors.
How Town funds will be leveraged with other dollars and volunteer resources:
A $120,000 contribution from the Town (including the $50,000 for transportation) would represent about 28 percent of the Senior Center’s projected revenues for 2017. Grants ($140,000), fundraising ($59,000), activity income ($45,000) and membership fees ($30,000) represent other significant revenue sources. In 2015, more than 450 volunteers served the Center, totaling more than 30,000 volunteer hours.
Additional information:
In addition to the Senior Center’s funding request, the Center requested the Town keep it in mind if there could be any additional space allocation in the future. Town staff met with Center staff to further discuss this need, and the two will continue working together on any possible solutions.
Douglas County Housing Partnership
Amount of Town funds requested: $35,000
Services to be provided:
• Homebuyer education classes
• Down payment assistance
• Foreclosure mitigation counseling
• Reverse mortgage counseling
Anticipated outcomes of services:
Enhancement of the economic stability of Douglas County.
How Town funds will be leveraged with other dollars:
About 59 percent of the Housing Partnership’s projected 2017 revenue would come from various fees. Participating jurisdictions - the Town, Douglas County, Lone Tree and Parker - are expected to contribute about 39 percent, or $165,000 in all, with the partnership’s remaining income coming from grants.
Douglas County Youth Initiative
Amount of Town funds requested: $19,800
Services to be provided:
• Provision of resources, including the Family Resource Guide
• Hosting of events, including Youth Congress and the Outstanding Youth Awards
• Provision of family services, including WrapAround
• Coordination of juvenile justice services, including teen court
Anticipated outcomes of services:
A community in which youth are involved, valued, productive, protected and healthy.
How Town funds will be leveraged with other dollars:
All of the Youth Initiative’s revenue ($303,280 total expected for 2017) comes from participating jurisdictions: the Town, the City of Lone Tree, Douglas County, the Douglas County Libraries, the Douglas County School District, the Highlands Ranch Metro District and the Town of Parker.
Downtown Merchants Association
Amount of Town funds requested: $75,000
Services to be provided:
• Free annual events for the public, including four Starlight Summer Movies, the Classic Rock Cruise in car show, Oktoberfest, four concerts, and Trick or Treat Street
• Staff to support these events
• Production of a direct mail piece two times per year
Anticipated outcomes of services:
Provision of outstanding cultural and entertainment opportunities; sustainment of a high quality of life as a safe, family friendly community; maintenance of a vibrant Downtown; and maintenance of a strong sense of community and small-town character.
How Town funds will be leveraged with other dollars:
The requested contribution would represent about 32 percent of the DMA’s total budgeted income for 2017. These funds generate economic activity, which supports Downtown businesses and generates sales tax. Additional sources of DMA funding are sponsorships and vendors ($75,000) and beverage sales ($56,870).
Additional funds requested this year:
The 2017 request represents a $17,400 increase over the 2016 final funding amount. The increase would be used to add attractions and staff at events, which have grown in popularity. The amount requested represents a dollar-for-dollar match of private sector investment in Downtown events. Additionally, the DMA is requesting the funds be paid in two semiannual payments rather than the prior method of paying per event once the event has been completed.
Financial Impact
Overall, the organizations’ requests reflect a $43,887 increase in General Fund funding (subject to changes in the DDA’s mill levy match, which will be finalized in December). The amount from the Philip S. Miller Trust Fund would increase by $2,000 if requests are granted as proposed. (Historical Society and Senior Center contract monies come out of the Miller fund, which was established for sense-of-community projects and services.)
The combined total requests for all service contracts for 2017 is $770,106, which is $45,887 - or 6.3 percent - more than overall 2016 funding. Funding history and 2017 requests are shown in the attached chart.
Staff Recommendation
1. Review the attached proposals.
2. Listen to presentations from the service organizations and ask questions of their representatives.
3. Staff has budgeted the requested amounts in the Proposed 2017 Budget. The contracts ultimately will be administered according to how Council approves them toward the end of 2016.
Attachments
Attachment A: Service contract funding application and back-up for Castle Rock Chamber of Commerce
Attachment B: Service contract funding application and back-up for Castle Rock Downtown Development Authority
Attachment C: Service contract funding application and back-up for Castle Rock Economic Development Council
Attachment D: Service contract funding application and back-up for Castle Rock Historical Society/Museum
Attachment E: Service contract funding application and back-up for Castle Rock Senior Center
Attachment F: Service contract funding application and back-up for Douglas County Housing Partnership
Attachment G: Service contract funding application and back-up for Douglas County Youth Initiative
Attachment H: Service contract funding application and back-up for Downtown Merchants Association
Attachment I: Summary of Service Organization Contract Amounts from 2003-2017