To: Honorable Mayor and Members of Town Council
From: Trish Muller, CPA, Finance Director
Title
Update of the 2020 First Quarter Financial Review, Period Ending March 31, 2020
Body
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Executive Summary
The following discussion and financial information reflect the current financial condition of the Town and highlight the continued focus on strategic priorities established by Council. Financial reporting for the Town takes a team effort between Finance, Department Managers and staff. Reporting helps to keep departments apprised of potential revenue shortages that could trigger spending reductions and deferrals.
As demonstrated by the following information, departments continue effective and responsible management of the Town’s finances while working towards accomplishing community priorities and being mindful of current economic conditions and potential budgetary concerns due to COVID-19. Financial information within this report shows that all funds are in a positive position through the first quarter. Some highlights contained in this report include:
• General Fund revenue was 8 percent over budget and expenditures were 17 percent under budget for the first quarter of 2020
• Capital expenditures make up 43 percent, or $128 million, of the amended 2020 budget for the Town; of this, only $12.6 million has been expended at this point in the year
• Development in Castle Rock included permitting for 199 single family and 116 multi-family units as well as 21 commercial projects through March 31
Staff continues to analyze the potential impact that the COVID-19 crisis may have on the economy and Town Finances in 2020 and beyond. At this time, potential revenue shortfalls are anticipated within multiple funds. Budget reductions and opportunities for deferral of expenditures have been identified in many departments including the deferral of equipment purchases, training and vehicle replacements. Other savings have been identified in performance pay increase deferrals and personnel vacancies. An estimated shortfall in revenue of 20 percent is currently anticipated and corresponding budget reductions and deferrals in the General Fund, Transportation Fund, and General Long Term Planning Fund have been identified and included in this report. Staff continues to monitor and analyze the full scope of the economic impact and will determine other opportunities for deferrals and budget reductions in other funds as needed.
The financial information in this report includes:
• Highlights of year-to-date revenue and expenditures including financial summaries by major category for each Town fund
• Status updates related to community priorities
• Discussion and financial summaries by major category for each fund included in the Town’s financial information
• The 2020 year to date budget information has been adjusted to more accurately reflect the seasonal nature
• Incorporation of the first amendment of the 2020 budget as approved by Town Council
• Preliminary 2019 year-end actual information for revenues and expenditures
Please note that final numbers may change due to year-end processing and any audit adjustments.
Proposed Motion
This memo is intended for discussion purposes only.
Attachments
Attachment A: 2020 First Quarter Financial Reports
• Schedule A - General Fund
• Schedule B - Development Services Fund
• Schedule C - Water Fund
• Schedule D - Water Resources Fund
• Schedule E - Stormwater Fund
• Schedule F - Wastewater Fund
• Schedule G - Transportation Fund
• Schedule H - Transportation Capital Projects Fund
• Schedule I - Fleet Services Fund
• Schedule J - Fire Capital Fund
• Schedule K - Police Capital Fund
• Schedule L - Police Forfeiture Fund
• Schedule M - Parks and Recreation Capital Fund
• Schedule N - Conservation Trust Fund
• Schedule O - Community Center Fund
• Schedule P - Golf Course Fund
• Schedule Q - Economic Development Fund
• Schedule R - Downtown Development TIF Fund
• Schedule S - Philip S. Miller Trust Fund
• Schedule T - Public Art Fund
• Schedule U - Municipal Facilities Capital Fund
• Schedule V - General Long Term Planning Fund
• Schedule W - Employee Benefits Fund
• Schedule X - Townwide Summary
Attachment B: Sales Tax Collections by Category and Geographical Area
Attachment C: Investment Summary