To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Update: 2018 Second Quarter Financial Review, Period Ending June 30, 2018
Body
________________________________________________________________________________
Executive Summary
Significant progress toward Town priorities within the 2018 Budget has been accomplished through the first half of the year. 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 our Water Future: Castle Rock Water is making progress on various projects intended to help provide safe, long-term water to the community. These projects include installation of a pipeline and pump station from the diversion structure the Town purchased on Plum Creek in 2017, advanced water treatment capability at the Plum Creek Water Purification Facility, continued funding for the Chatfield Reallocation project and ongoing renewable water initiatives as part of the WISE project.
• Enhancing our Transportation: The Public Works Department continues to enhance and maintain the Town transportation infrastructure. Current 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. Work is also underway on the annual Pavement Maintenance Program to maintain existing roads.
• Ensuring our Public Safety: Fire Station 152 opened on August 4th, 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: Planning for the construction of a new neighborhood park continued into the second quarter with construction planned to commence in the third quarter. In addition, design of the planned extension of the East Plum Creek Trail continues at this time and will utilize grant funding from Great Outdoors Colorado.
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 Audited Year-end numbers
• Revised 2018 Year End Estimates developed as part of the 2019 Budget development process. These estimates will be revised later in the year to provide more accurate fund balance estimates.
The overall financial position of the Town continues to be positive with all funds currently estimated to end the year under expense budgets. 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 half of the year.
Total revenues across all Town funds are about 4% higher than the year to date budget for the first six months of 2018. Town wide expenditures are 35% lower than the seasonally adjusted budget, primarily due to 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 second quarter of 2018:
• Gross sales tax collections are higher than the same period in 2017 by about 5%. Revenue received through the second quarter includes actual collections through May plus an estimated 5% increase for June sales tax revenue as compared with last year.
• General Fund operational expenditures are about 5% lower than the year-to-date budget through June.
• Overall development activity remains steady in Town for the first half of the year with a total of 616 single-family, 168 multi-family and 28 commercial permits issued.
Proposed Motion
This memo is intended to be for discussion purposes only.
Attachments
Attachment A: 2018 Second 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: Second Quarter Sales Tax Collections by Category and Geographical Area