To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Ordinance Approving the Third Amendment to the Town of Castle Rock 2021 Budget by Making Supplemental Appropriations for Fiscal Year 2021, and Providing for the Emergency Adoption of this Ordinance on Second and Final Reading (Second Reading - Approved on First Reading on November 16, 2021, by a vote 7-0)
Body
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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). The Finance Department prepares budget amendments for Town Council consideration 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. The chart below shows supplemental appropriations for the last five years and the budget amendments approved to date in 2021.
Supplemental expenditure requests in this proposed Third Amendment to the 2021 Budget, in Attachment A, total $4,919,933. Supplemental revenue in the amount of $360,000 is also requested. 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 2021 Budget. A summary of requested items follows.
Discussion
Major requests included in this budget amendment are described below and are grouped by Town priority. All requested changes to appropriations are referred to in Attachment B and increase total Townwide expenditures for 2021 by $4,919,933.
Secure our water future
• Castle Rock Water requests supplemental appropriation of $2,718,155 for the Walker Reservoir Project within the Cherry Creek Project Water Authority. Funds for this project were originally planned to be spent in 2022, but design work will need to begin in 2021. Adjustments will be made during the first budget amendment in 2022 to ensure the Town does not double-count the funds.
Enhance our transportation
• The Public Works Department requests supplemental appropriation in the Transportation Capital Fund for design and right of way procurement for the Crystal Valley Parkway and Plum Creek Boulevard intersection roundabout for $400,000. These funds were originally planned for 2022. However, in order for the construction to happen in 2022, design work needs to begin in 2021.
• Supplemental appropriation is requested in the Transportation Fund in the amount of $25,000 to purchase a Utility Terrain Vehicle “side-by-side” to assist in inspections of roads. These funds will be transferred from the Transportation Fund into the Fleet Fund to ensure the new UTV is in the vehicle replacement program.
Maintain strong Parks and Recreation
• The Parks and Recreation Department requests supplemental appropriation in the Golf Fund in the amount of $541,500 for golf maintenance equipment. The purchase of this equipment was originally planned for 2022, however, a cost-saving opportunity presented itself for fourth quarter 2021. Adjustments will be made during the first budget amendment in 2022 to ensure the Town does not double-count the funds.
• Supplemental appropriation is requested in the Philip S. Miller Trust Fund to increase revenues and expenses by $335,000. Revenue and expenses for special events have exceeded budgeted estimates in 2021. This request will have a zero-balance increase to the budget.
Ensure outstanding public safety
• The Police Department requests supplemental appropriation in the Police Capital Fund in the amount of $225,278 for accommodation of a Council-approved (July 6, 2021,) expenditure to complete the Police Department parking lot improvement project.
Other Town funds and initiatives
• The Human Resources Division requests supplemental appropriation within the Employee Benefits Fund in the amount of $600,000. (These funds are currently in the Healthcare Claims Reserve within the fund.). Though the fund is trending to be under budget, these funds will cover any unforeseen health insurance claims for the remainder of the year. Any unused funds at year end will roll back into the Healthcare Claims Reserve.
• The Human Resources Division requests supplemental appropriation within the Employee Benefits Fund in the amount of $50,000. Funds will be utilized to cover higher-than-forecasted employee participation in the Employee Wellness program.
The supplemental 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 these requested items while maintaining adequate reserves within each fund.
Staff Recommendation
Staff recommends that Town Council approve the Ordinance as written. Due to statutory timing pertaining to the 30-day referendum period for ordinances, adopting this on an emergency basis would allow the Town of Castle Rock to remain in compliance with Town Charter Section 9-6(b) and, as a result, staff is requesting approval of the second reading on emergency adoption.
Proposed Motion
“I move to approve the Ordinance as introduced by title, on second reading.”
Alternative Motions
I move to approve the ordinance as introduced by title, with the following conditions: (list conditions).
I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).
Attachments
Attachment A: Ordinance
Attachment B: Requests for Supplemental Appropriations
Attachment C: Estimated Ending Funds Available for 2021