To: Honorable Mayor and Members of Town Council
From: Shannon Eklund, Executive Assistant
Title
Presentation: 2020 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. Two of the organizations are requesting a funding increase for 2020, and the remainder are requesting the same funding level as last year:
|
Organization |
2019 Funds |
2020 Request |
|
Castle Rock Chamber of Commerce |
$99,720 |
$99,720 |
|
Castle Rock Downtown Development Authority |
$164,917 |
approx. $175,000 |
|
Castle Rock Downtown Merchants Association |
$75,000 |
$75,000 |
|
Castle Rock Economic Development Council |
$210,086 |
$210,086 |
|
Castle Rock Historical Society/Museum |
$77,000 |
$79,500 |
|
Castle Rock Senior Center |
$120,000 |
$130,000 |
|
Douglas County Housing Partnership |
$35,000 |
$35,000 |
|
Douglas County Youth Initiative |
$19,800 |
$19,800 |
More detailed summaries of the applications follow this overview. In addition, most organizations will make brief presentations at this Town Council meeting. No final decisions regarding 2020 funding requests are necessary at this time. Staff has included amounts without any requested increases within the 2020 Proposed Budget. The contracts ultimately will be administered according to how Council approves them later in 2019, and any additional funding required will be accommodated through a future budget amendment.
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 2020 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
Programs: eXcelerate business development, Leadership Douglas County and community marketing
Administration: Event/program staffing and operations
The Visitor Center: Staffed five days per week, 9 am to 5 pm, Monday-Friday, excluding holidays.
Anticipated outcomes of services:
Positive community image, maintenance of community character and small 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 2020 would represent about 11 percent of the Chamber’s total anticipated annual revenues. Volunteers provide services valued at over $50,000 in conjunction with several Chamber initiatives, including business consulting and monthly class trainings and Leadership Douglas County.
Castle Rock Downtown Development Authority
Amount of Town funds requested: approx. $175,000
Services to be provided:
Façade improvement, flower box, patio and trolley programs
Rink at the Rock administration, programs, operations, personnel, equipment, installation 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 ($135,000) and sponsorships ($25,000) for Rink at the Rock are other major sources of revenue expected in 2020.
This year’s requested not-to-exceed amount of $195,000 is the same as last year’s funding. The preliminary mill levy information was not available at the time of application, however the DDA requests a continuation of the Town’s annual match of the DDA’s mill levy revenue within an estimated range of $165,000-195,000. Valuation information will be finalized toward the end of 2019, which will determine the actual amount of the matching funds. The DDA estimates this to be $175,000 for budgeting purposes and notes it could be as low as $165,000.
In 2019, the DDA’s budgeting estimate was the same estimated range, and the actual amount of matching funds was $164,917. The Town had used an approximate amount of $175,000 in last year’s estimates.
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, street party and concert, four other concerts including Boots & Brews, up to four Splash in the Park events and Oktoberfest
Staff to support these events
Anticipated outcomes of services:
Provision of outstanding cultural and entertainment opportunities; maintaining a high quality of life as a safe, family friendly community; preserving and enhancing history and heritage through a vibrant Downtown; and reinforcing a strong sense of community and small-town character.
How Town funds will be leveraged with other dollars:
The requested contribution would represent about 25 percent of the DMA’s total budgeted income for 2020. These funds generate economic activity, which supports Downtown businesses and generates sales tax. Additional sources of DMA funding are sponsorships and vendors ($109,000) and beverage sales ($116,000).
Castle Rock Economic Development Council
Amount of Town funds requested: $210,086 (from the Economic Development Fund)
Services to be provided:
Attracting developers and primary employers to Castle Rock
Growing Castle Rock’s existing primary employers
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 25 percent of the EDC’s projected revenue for 2020, which also includes as major revenue sources private sector investment ($269,000) and Downtown Development Authority/Downtown Merchants Association reimbursements for services ($278,000).
Castle Rock Historical Society/Museum
Amount of Town funds requested: $79,500 (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:
Education on the tremendous and varied history of the Town.
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 88 percent of the Historical Society’s projected revenue for 2020. Fundraising is expected to bring in $7,000. 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 $2,500 increase over last year’s funding. The increase would be used to raise the compensation of the Castle Rock Museum’s Executive Director position closer to a current market pay rate, particularly in anticipation of the current Director’s retirement within the next 1-3 years. The President of the Museum explains that this position has been ‘woefully underpaid’ for the past 9 years at $18,600 per annum, and a pay increase will be critical for recruiting a new qualified and competent Museum Executive Director.
Castle Rock Senior Center
Amount of Town funds requested: $70,000 for operations (from the Philip S. Miller Fund) and $60,000 for transportation services (funded through Public Works)
Services to be provided:
Transportation services
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 $130,000 contribution from the Town (including the $60,000 for transportation) would represent about 18 percent of the Senior Center’s projected revenues for 2020. Grants ($205,000), fundraising ($110,000), activity income ($65,000) and membership fees ($40,000) represent other significant revenue sources. In 2018, more than 450 volunteers served the Center, totaling nearly 30,000 volunteer hours.
Additional funds requested this year:
This year’s request represents a $10,000 increase in transportation funding over last year’s funding.
This increase would be used to provide transportation services for the growing senior population in the Town. The transportation program is a curbside shuttle service designed to help seniors 50+ and adults with disabilities maintain their independence and self-sufficiency by providing rides to medical appointments, grocery stores and other types of trips.
Douglas County Housing Partnership
Amount of Town funds requested: $35,000
Services to be provided:
Home ownership and homebuyer education classes
Foreclosure mitigation and counseling
Reverse mortgage counseling
Rental housing
Anticipated outcomes of services:
An economically thriving community through preserving, providing and developing housing.
How Town funds will be leveraged with other dollars:
About 60 percent of the Housing Partnership’s projected 2020 revenue would come from various program fees and real estate revenue. Participating jurisdictions - the Town, Douglas County, Lone Tree and Parker - are expected to contribute about 37 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:
WrapAround services
Events, including Youth Congress and the Outstanding Youth Awards
Associated expenses - cell phones, mileage, training, supplies, misc.
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 2020) comes from participating jurisdictions: the Town, the City of Lone Tree, Douglas County, the Douglas County Libraries, the Douglas County School District, the Department of Human Services, the Highlands Ranch Metro District and the Town of Parker.
Financial Impact
Overall, the organizations’ requests reflect an increase of $12,500, subject to changes in the DDA’s mill levy match, which will be finalized in December. The combined total requests for all service contracts for 2020 is $824,106, which is 2.8 percent more than overall 2019 funding. Funding history and 2020 requests are shown in the attached chart.
Staff Recommendation
Review the attached proposals.
Listen to presentations from the service organizations and ask questions of their representatives.
Staff has included amounts without any requested increases in the Proposed 2020 Budget. The contracts ultimately will be administered according to how Council approves them later in 2019, and any additional funding requirement will be accommodated through a future budget amendment.
Attachments
Attachment A: Castle Rock Chamber of Commerce
Attachment B: Castle Rock Downtown Development Authority
Attachment C: Castle Rock Downtown Merchants Association
Attachment D: Castle Rock Economic Development Council
Attachment E: Castle Rock Historical Society/Museum
Attachment F: Castle Rock Senior Center
Attachment G: Douglas County Housing Partnership
Attachment H: Douglas County Youth Initiative
Attachment I: Summary of Service Organization Contract Amounts from 2003-2020