To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Ordinance Approving Supplemental Appropriations for 2018 and the Second Amendment to the 2018 Budget (Second Reading-Approved on First Reading on October 16, 2018 by a vote of 5-0)
Body
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The second reading of the Ordinance Approving Supplemental Appropriations for 2018 and the Second Amendment to the 2018 Budget has been changed from first reading. Changes from first reading include:
- The total project cost for the Metzler Park Turf project is increased from $2,025,000 to $2,104,500 to reflect updated cost estimates.
- Transfers from the Water Resources Fund to the General Fund, in the total amount of the Metzler Turf Project, are included to ensure the Metzler Park Turf asset is recorded appropriately. These transfers from the Water Resources Fund include a contribution of $791,941 and an interfund loan of $1,312,559 to the General Fund for completion of this project, for a total of $2,104,500.
Due to the additional transfer between funds, the total amount of expenditures in this budget amendment has been revised to $15,640,170, with offsetting revenue of $2,208,255. More detailed information about the changes and all items within this budget amendment can be found in Attachment B, along with revised estimated funds available in Attachment C.
Executive Summary
The changes of appropriation in this proposed Second Amendment to the 2018 Budget include items to be considered for supplemental appropriations as identified in Attachment B. Important to note is that all requested changes to the 2018 budget within this proposed amendment are 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 increase total expenditures for 2018 by $13,456,170. Of this total, $10,970,563 is related to Castle Rock Water projects including:
- Water Well projects located in the Lanterns and Castlewood Ranch areas totaling $5,804,131
- WISE water option payment and Douglas County Reservation Fee totaling $2,081,432
- Conversion of grass fields at Metzler Park to artificial turf for $2,025,000
- Denver Basin well rehabilitation project for $900,000
- Addition of a flood barrier wall near the Police Department for $160,000
Other requests, by fund, within this Second Amendment to the 2018 Budget include:
General Fund:
- Acquisition of 830 North Wilcox Street, plus estimated remediation costs, totaling $1,000,000 as approved at the September 4, 2018 Town Council meeting - the Opportunity/Economic Development Reserve will be utilized for this expenditure in 2018 and will be replenished in 2019.
- Additional appropriation authority for the completion of the East Plum Creek Trail expansion totaling $103,307. The General Fund will be repaid in future years using the annual allocation from the Transportation Fund for trail improvements.
Parks & Recreation Capital Fund:
- Increased appropriation for the construction of the Deputy Zack S. Parrish III Memorial Park as approved at the August 21, 2018 Town Council meeting for $934,805.
- Accommodation of a transfer to the Downtown Development Authority Tax Increment Financing (DDA TIF) Fund related to the DDA TIF Fund’s portion of savings from the Festival Park project is requested. Supplemental appropriation of $75,000 is requested to provide sufficient budget authority for the full transfer amount.
Transportation Capital Fund:
- Increased design costs related to Plum Creek Parkway improvements totaling $150,035 as approved by Town Council on September 18, 2018.
Golf Course Fund:
- Replacement of a well pump at Red Hawk Ridge Golf Course totaling $19,960
- Increased appropriation of pro shop and concession merchandise expenses totaling $52,500 due to strong retail sales throughout the 2018 season to date. These additional expenditures will be offset by increased revenue, also included in this budget amendment, totaling $103,755 based on the average revenue margin on these items.
Employee Benefits Fund:
- Supplemental appropriation of $150,000 to provide adequate budget authority based on trending of actual employee medical and prescription claim activity in 2018.
A listing of these requests for supplemental appropriations for the Second Amendment to the 2018 Budget, including written justification, is included in Attachment B, and a summary of requests by fund is shown below:
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 on the Ordinance as introduced by title, on second reading.
Attachments
Attachment A: Ordinance-Second Reading
Attachment B: Requests for Supplemental Appropriation
Attachment C: Estimated Ending Funds Available for 2018