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File #: ORD 2019-035    Version: Name:
Type: Ordinance Status: Passed
File created: 8/19/2019 In control: Town Council
On agenda: 11/5/2019 Final action: 11/5/2019
Title: Ordinance Approving the Third Amendment to the 2019 Budget by Making Supplemental Appropriations for 2019 and Authorizing Changes for Year 2019 (Second Reading - Approved on First Reading on October 15, 2019 by a vote of 5-0)
Attachments: 1. Attachment A: Ordinance, 2. Attachment B: Requests for Supplemental Appropriation, 3. Attachment C: Estimated Ending Funds Available for 2019, 4. Staff Presentation (1st Reading)

To:                     Honorable Mayor and Members of Town Council

 

From:                     Trish Muller, CPA, Finance Director

 

Title

Ordinance Approving the Third Amendment to the 2019 Budget by Making Supplemental Appropriations for 2019 and Authorizing Changes for Year 2019 (Second Reading - Approved on First Reading on October 15, 2019 by a vote of 5-0)

Body

________________________________________________________________________________

 

The Ordinance was approved on first reading on October 15, 2019 with a vote of 5 to 0 with no changes.

 

Please note that the beginning and ending funds available in the First Reading version of the budget amendment did not include items in the Second Amendment to the 2019 Budget. These items have been incorporated for Second Reading.

 

Executive Summary

 

The charter for the Town of Castle Rock allows for amendments to budget appropriations, including requests for supplemental appropriations that require approval by ordinance (Section 9.10) in Attachment A.  The Finance Department prepares budget amendments for Town Council review and approval based on needs that may arise throughout the year.  The number of budget amendments varies by year depending on needs/opportunities as they are identified. 

 

Supplemental expenditure requests in this proposed Third Amendment to the 2019 Budget total $2,030,000 with revenue adjustments totaling $875,000.  All requested expenditures are one-time in nature and are not planned to be recurring.  Descriptions of requested items are included in Attachment B.  The Finance Department has reviewed all requests and has determined that sufficient funding is available to accommodate this proposed Third Amendment to the 2019 Budget.  Following is a summary of requested items.

 

Discussion

 

Total requested changes to appropriations referred to in Attachment B increase total expenditures for 2019 by $2,030,000.  Major requests included in this budget amendment are described below and are grouped by Town priority.

                     Enhancing our transportation

                     The Public Works Department requests supplemental appropriation in the Transportation Fund in the amount of $70,000. These funds will be used to purchase additional road salt, sand and deicer for the upcoming winter. Due to significant snowfall in spring 2019 and in anticipation of upcoming snowfall, additional supplies are needed.

                     The Public Works Department also requests supplemental appropriation of funds in the Transportation Fund in the amount of $125,000. Funds will be used to accommodate payments related to the 6th Street alley retaining wall failure that occurred in 2016.

                     Maintaining strong parks and recreation

                     The Parks and Recreation Department requests supplemental appropriation within the General Fund in the amount of $675,000, with offsetting revenue in the same amount. Funds in the amount of $525,000 will be used to purchase property in the Plum Creek subdivision, as approved by Council. Funds in the amount of $150,000 will accommodate remediation of the property for use as open space. Previously received developer contributions will be recognized to fund these expenses.

                     The Parks and Recreation Department requests supplemental appropriation in the Community Center Fund in the amount of $60,000. These funds will be used to purchase new point of sale software. This purchase was previously planned for 2020, but has been advanced to 2019.

                     Other Town funds and initiatives

                     The Town Manager’s Office requests supplemental appropriation within the General Fund in the amount of $200,000, with $200,000 in offsetting revenue. These funds will be used for establishment of a downtown quiet zone with revenue received from the developer as part of the Encore Redevelopment Agreement. An additional $700,000 will be requested within a budget amendment in 2020 to accommodate the full $900,000 planned to be spent on this project.

                     The Human Resources Division requests supplemental appropriation within the Employee Benefits Fund in the amount of $900,000. Funds will be utilized to cover health insurance claim costs which have been higher than anticipated.

 

The additional amount of expenditures requested in this amendment are shown below and are grouped by Town fund.

 

 

Budget Impact

 

As presented in Attachment C, the Finance Department has ensured that funding is available through either revenues and/or fund balance for requested items, 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

 

Attachment B: Requests for Supplemental Appropriation

 

Attachment C: Estimated Ending Funds Available for 2019