To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Ordinance Approving the Second Amendment to the 2017 Budget Authorizing Changes for Year 2017 (Second Reading - Approved on First Reading on June 6 with a vote of 7-0)
Body
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Ordinance was approved on first reading on June 6, 2017 with a vote of 7-0 with no changes.
Executive Summary
The changes of appropriation in this proposed Second Amendment to the 2017 Budget include items to be considered for supplemental appropriations primarily related to accommodating a Public Safety Training Facility and Castle Rock Water projects. (Attachment B) includes further information about the budget amendment requests.
The proposed changes to the 2017 budget within this proposed amendment are requested for one-time projects which are requested as one-time uses of available fund balances.
Discussion
Total requested changes to appropriations referred to in (Attachment B) net to an increase in total expenditures for 2017 of $4,856,315. The largest request within this amendment includes $3,000,000 for the accommodation of a new Public Safety Training Facility.
As previously presented to Council at the May 16, 2017 meeting and this evening, staff requests that funds be appropriated to accommodate the purchase of property and renovation costs for a Public Safety Training Facility for Castle Rock Police and Fire Departments. Staff proposes that funding for the project come from a variety of sources, some of which could be paid back to the General Fund through deferred interfund loans from Impact Fee Funds:
|
Proposed Funding Source |
Amount |
|
General Fund Balance |
$1,300,000 |
|
Building Use Tax - General Long Term Fund |
500,000 |
|
Impact Fees - Municipal Facilities, Fire & Police Capital Funds |
1,200,000 |
It is estimated that approximately 40% of this proposed project is related to growth needs, however the applicable impact fee capital funds do not currently have adequate fund balance to contribute this identified share. Staff proposes that within the current development of the 2018 budget, a structured loan between funds be incorporated with planned payment back to the General Fund over the next 5 years. If Council agrees with this proposal, interfund loan schedules would be included in the 2018 Budget for this purpose.
Castle Rock Water has included requests in this second budget amendment additionally, including accommodation of increased construction costs for the WISE Canyons Pipeline. A budget amendment was presented in 2016 for this purpose and preliminary estimates were presented at the time, subsequently, current estimates are higher and $1,516,415 is requested for this project, bringing the total projected cost for the pipeline construction to $22.7 million.
Two additional requests by Castle Rock Water include $225,000 to accommodate construction of a sanitary sewer main which is planned to replace a temporary lift station which has been in use for thirteen years. A final request in this budget amendment includes funds to accommodate engineering design for stream stabilization work along McMurdo Gulch between Highway 86 and Valley View Drive. Improvements are needed to accommodate the increased development in the Terrain area.
A listing of all requests for supplemental appropriations for the Second Amendment to the 2017 Budget, including written justification is included in (Attachment B) and a summary of requests by fund is included here;
Budget Impact
As presented in (Attachment C), the Finance Department has ensured that funding is available through either revenues and/or fund balance for one-time expenditures, maintaining adequate reserves within each fund.
Staff Recommendation
Staff recommends that Town Council approve the Ordinance.
Proposed Motion
“I move to approve the ordinance as introduced by title.”
Attachments
Attachment A: Ordinance
Attachment B: Requests for Supplemental Appropriation
Attachment C: Estimated Ending Funds Available for 2017