To: Honorable Mayor and Members of Town Council
From: Trish Muller, CPA, Finance Director
Title
Update of the Second Quarter Financial Review, Period Ending June 30, 2020
Body
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Executive Summary
The following discussion and financial information reflects the positive financial condition of the Town and highlights the continued focus on strategic priorities established by Town Council. Financial reporting for the Town takes a team effort between Finance, Department Heads, and staff. Reporting helps to keep departments apprised of potential revenue shortages that could trigger budget adjustments such as 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. This year, 2020, has presented unique challenges, and Town departments continue to be mindful of the current economic environment and future uncertainty surrounding the COVID-19 pandemic. Due to conservative financial planning and proactive measures taken by Town staff, the overall financial position of the Town remains positive halfway through 2020.
Year-end estimates are planned to be refined during the third quarter of 2020 and will be provided in the third quarter financial review. Staff plans to present the review to Town Council on November 3, 2020.
Some highlights contained in this report include:
• General Fund revenue was 4 percent over budget through June 30, 2020
• General Fund expenditures were 11 percent under budget through the second quarter largely due to vacancies and COVID-19 related reductions and deferrals
• Capital expenditures make up 45 percent, or $137.2 million, of the amended 2020 budget for the Town; of this, $34 million has been expended so far in 2020
• Development activity remains strong in Castle Rock including permitting for 456 single family and 116 multi-family units as well as 26 commercial projects through June 30
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 seasonal variability
• Incorporation of the first and second amendment to the 2020 budget as approved by Town Council
• Discussion of COVID-19 related impacts and budget adjustments
Proposed Motion
This memo is intended for discussion purposes only.
Attachments
Attachment A: 2020 Second 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