To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Update: 2018 First Quarter Financial Review, Period Ending March 31, 2018
Body
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Executive Summary
The 2018 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 2018 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, installation of a diversion structure on Plum Creek, and advanced water treatment capability at the Plum Creek Water Purification Facility.
• Enhancing our Transportation: Planning is underway for several projects to improve transportation around Castle Rock. Projects include construction of a roundabout at Plum Creek Parkway and Wolfensberger Road, design of improvements at Founders Parkway and Allen Way, and design of improvements at Founders Parkway and Crowfoot Valley Road.
• Ensuring our Public Safety: Construction of Fire Station 152 continues into 2018 and is anticipated to be complete by the end of the year, with twelve new positions hired in the first quarter to staff the new station. In addition, the Police department added five new positions as approved in the 2018 Budget.
• Maintaining Strong Parks and Recreation: Design of the next new neighborhood park, located in the Meadows, continued through the first quarter with construction anticipated to begin later in the year.
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
• 2017 Preliminary Unaudited Year-end numbers
• First Amendment to the 2018 Budget items as approved by Town Council at the April 3 and April 17, 2017 meetings
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 2% higher than the budget for the first three months of the year. Town wide expenditures are 47% 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 an estimated 6.9% when compared to January - March 2017. Actual revenue received in the first quarter includes actual collections through February plus an estimated 5.7% increase for March sales tax revenue as compared with last year.
• General Fund operational expenditures are about 7% lower than the amended budget for the first quarter.
• Overall development activity remains steady in Town during the first quarter with a total of 433 housing unit permits and 14 commercial permits issued.
Proposed Motion
This memo is intended to be for discussion purposes only.
Attachments
Attachment A: 2018 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