To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Update of the Third Quarter Financial Review, Period Ending Sept. 30, 2020
Body
________________________________________________________________________________
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.
As demonstrated by the following information, departments continue effective and responsible management of the Town’s finances while working towards accomplishing community priorities. 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 measures taken by Town staff, the overall financial position of the Town remains positive through September 30, 2020.
Please note that this report was previously planned to be presented to Council on November 3, 2020. However, because sales tax is paid the month after it is collected, this report was delayed to December to use actual September sales tax data.
Some highlights contained in this report include:
• Sales tax revenue was up 5.6 percent through September 30 compared to 2019. Yearend sales tax estimates are 3 percent over 2019 actuals
• General Fund expenditures are 13 percent under budget through the third quarter largely due to vacancies and COVID related reductions and deferrals
• Capital expenditures make up 42 percent, or $139.1 million, of the amended 2020 budget for the Town; of this, $50 million has been expended so far in 2020
• Capital projects will be reevaluated in the fourth quarter, and funding for ongoing projects will carried forward into 2021. Most of these amounts are not yet known.
• Development activity remains strong in Castle Rock and has already exceeded 2020 permitting projections for the year with 747 single family and 240 multi-family units as well as 42 commercial projects through September 30
The financial information in this report includes:
• Discussion of COVID related impacts and budget adjustments
• 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
• The 2020 year-to-date budget information has been adjusted to more accurately reflect seasonal variability
• Incorporation of the first, second, and third amendment to the 2020 budget as approved by Town Council
• Yearend estimates for Town funds which were prepared and reviewed with departments during the third quarter
Proposed Motion
This memo is intended for discussion purposes only.
Attachments
Attachment A: 2020 Third 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 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 - Parking Fund
• Schedule Y - Townwide Summary
Attachment B: Sales Tax Collections by Category and Geographical Area
Attachment C: Investment Summary