To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Ordinance Approving the First Amendment to the 2022 Budget by Making Supplemental Appropriations for 2022 and Authorizing Changes for Year 2022 (Second Reading - Approved on First Reading on April 19, 2022, 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 2022.
Supplemental expenditure requests in this proposed First Amendment to the 2022 Budget total $36,674,688, with the majority requested for Castle Rock Water bond issuance. Also, an additional $36,122,836 of revenue is being 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 First Amendment to the 2022 Budget. Following is a summary of requested items.
Discussion
Total requested changes to appropriations referred to in Attachment B increase total expenditures for 2022 by $36,674,688. Major requests included in this budget amendment are described below and are grouped by Town priority.
Secure our water future
• Castle Rock Water request supplemental appropriation of funds totaling $33,422,436, which includes $30,000,000 in bond proceeds to be used on multiple Water Resources projects. Other requests include the annual payment for the Bond, continued work on the Omni Tributary Stabilization project, sewer line rehabilitation in conjunction with the Oakwood Apartments Sanitary Sewer, and a part time position to assist with the new billing system and the rates and fees study.
Enhancing our transportation
• The Public Works Department requests supplemental appropriation in the Transportation Capital Fund in the amount of $1,596,888, which includes traffic safety improvements, continued bridge repair and maintenance work that was planned in 2021 and will be completed in 2022, for the alleyway master plan project that begun in 2021, and a new CIP Manager.
• The Town Manager’s Office is planning on receiving $5,703,100 in revenue from American Rescue Plan Act (ARPA). These funds will be used for the 2022 budgeted projects to widen both Ridge Road and Plum Creek Parkway. The previous funding for these projects will be moved into fund balance.
Maintain strong Parks and Recreation
• The Parks and Recreation Department requests supplemental appropriation in the amount of $184,163, which includes a yearly principal payment for a turf replacement loan, tree purchases (revenue for these trees was received in 2021), and a new mower that was originally planned to be purchase in 2020 but was deferred. Parks and Recreation also requests $24,409 in the General Long Term Planning Fund for concrete repair and replacement that was planned for in 2021 but were unspent.
Ensure outstanding public safety
• The Police Department requests supplemental appropriation of $415,015 in the General Fund, which includes two new situation monitoring officers, a new community response team officer, a new vehicle for the response team officer, cameras to be used on location, and ten new License Plate Readers.
• The Fire Department requests supplemental appropriation of $327,619 in the General Fund for increase in gasoline, furniture replacements at the Public Safety Training Facility and multiple fire stations, and training.
• The Fire Department requests supplemental appropriation of $104,532 in the General Long Term Planning Fund for training tower repairs that were planned for 2021 but were unspent.
Other Town funds and initiatives
• The Town Manager’s Office is requesting supplemental appropriation of $347,276, which includes miscellaneous services, operating supplies, and other professional services. These funds were planned for 2021 but were unspent. They will be used for needs that arise within the town during the year.
• The Division of Innovation Technology is requesting supplemental appropriation of $106,134 within the General Long Term Planning Fund for replacement security cameras, traffic network switches, and replacement desk phones.
• The Development Services Department is requesting supplemental appropriation of $168,000 for a traffic study that was budgeted for in 2021 but went unspent, and an inspection service agreement due to the high demand of inspections for commercial and residential growth.
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 first reading.”
Alternative Motions
“I move to approve the resolution 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 Appropriation
Attachment C: Estimated Ending Funds Available for 2022