To: Honorable Mayor and Members of Town Council
Thru: David L. Corliss, Town Manager
From: Shannon Eklund, Executive Assistant
Title
Presentation: 2023 Service Contract Funding Requests
Body
________________________________________________________________________________
Executive Summary
Each year, Town Council reviews requests from service organizations for funding their operations, which include community events and services. Attached are applications from the organizations. The Castle Rock Chamber of Commerce, Historical Society/Museum, Economic Development Council, Downtown Merchants Association, and the Senior Center are each requesting funding increases for 2023. The Downtown Development Authority amount increases according to the annual mill levy revenue calculation. The Douglas County Community Foundation is a new applicant in 2023. The remainder of the organizations are requesting the same funding level as last year. Funding to accommodate these service contract requests is included in the 2023 Proposed Budget:
|
Organization |
2022 Funds |
2023 Request |
2023 Funding Source |
|
Castle Rock Chamber of Commerce |
$110,815 |
$121,910 |
General Fund |
|
Castle Rock Downtown Development Authority |
$201,116 |
Up to $205,000 |
ED Fund |
|
Castle Rock Downtown Merchants Association |
$75,000 |
$95,000 |
ED Fund |
|
Castle Rock Economic Development Council |
$226,892 |
$233,698 |
ED Fund |
|
Castle Rock Historical Society/Museum |
$84,500 |
$87,000 |
Split between General Fund and PS Miller Trust Fund |
|
Castle Rock Senior Center |
$130,000 |
$150,000 |
PS Miller Trust Fund ($70k) and Transportation Fund ($60k) |
|
Douglas County Community Foundation |
|
$17,143 |
General Fund |
|
Douglas County Housing Partnership |
$35,000 |
$35,000 |
General Fund |
|
Douglas County Youth Initiative |
$19,800 |
$19,800 |
General Fund |
More detailed summaries of the applications follow this overview. In addition, representatives from each organization will make brief presentations at this Town Council meeting.
The Town also provides in-kind support for Chamber of Commerce and Downtown Merchants Association events throughout the year. This support is provided in addition to the direct funding shown above. More information about this in-kind support can be found in Attachment A.
Discussion
Each year, the Town contracts with various community organizations for services that the Town might otherwise directly provide the community. By contracting through these organizations, the Town leverages its funds with other dollars. The organizations also bring volunteer support, expertise and other resources to the table, which result in the Town receiving a better return on investment and level of service than if the Town provided the services directly.
This section summarizes each organization’s 2023 funding application in these areas:
• The amount of Town funds requested
• The services to be provided
• The anticipated outcomes of the services
• The leveraging of Town funds with other dollars and volunteer resources
• If applicable, the amount of additional funds requested this year, and an explanation of the request
Castle Rock Chamber of Commerce
Amount of Town funds requested: $121,910 (from the General Fund)
Services to be provided include, but are not limited to, the following:
Events: Artfest, the Douglas County fair parade and Starlighting
Programs: eXcelerate business development, Leadership Douglas County and community marketing
Administration: Event/program staffing and operations
Visitor Center: Staffed 9 am to 5 pm Monday-Friday, excluding holidays
Anticipated outcomes of services:
Positive community image, maintenance of community character and small business success.
How Town funds will be leveraged with other dollars and volunteer resources:
The Chamber’s main source of income is events/sponsorships, followed by membership investment and the service contract with the Town. The amount requested for 2023 would represent about 12% of the Chamber’s total anticipated annual revenues. Volunteers provide services valued at over $45,000 in conjunction with several Chamber initiatives, including business consulting, monthly class trainings and Leadership Douglas County.
Additional funds requested this year:
The Chamber is increasing their request to $121,910, from the $110,815 in 2022, and over the $99,720 they had been requesting each year since 2011. The Chamber estimates their programmed expenses have increased by $33,284 (annual-inflation compounded), to account for these increases they are proposing a gradual increase in additional Town fund over three years. They anticipate another requested increase to $133,000 to 2024.
Castle Rock Downtown Development Authority (DDA)
Amount of Town funds requested: up to $205,000 (from the Economic Development Fund)
Services to be provided include, but are not limited to, the following:
Façade improvement, flower box and patio, and downtown trolley and carriage ride programs
Professional services, marketing and public website
Anticipated outcomes of services:
Increased economic activity; charm and pedestrian activity; and sales and traffic within Downtown.
How Town funds will be leveraged with other dollars:
The requested contribution is a match of the revenue generated through the DDA’s 3 mill property tax levy. Other revenues include specific ownership tax and program revenue.
This year’s requested amount is a range between $195,000-205,000. The preliminary mill levy information was not available at the time of application, however the DDA requests a continuation of the Town’s annual match of the DDA’s mill levy revenue within this rand. Valuation information will be finalized toward the end of 2023, which will determine the actual amount of the matching funds. The mill levy match amount is determined by actual valuation information provided by the Douglas County Assessor.
In 2022, the actual amount of matching funds was $201,116, based on the actual Douglas County Assessor valuation. This DDA mill levy match is used to support DDA operations, while other funding sources are available for additional DDA activities. More information about the DDA’s finance structure is available in Attachment D.
Downtown Merchants Association (DMA)
Amount of Town funds requested: $95,000 (from the Economic Development Fund)
Services to be provided include, but are not limited to, the following:
Free annual events for the public including a Spring Kickoff Concert, Movie in the Park, Car Show Kickoff Concert and Car Show, Activities in the Park (4-8 events), Boots & Brews, Concert Under the Lights, Oktoberfest, and Fangtastic Festival
Staff to support these events
Anticipated outcomes of services:
Provision of outstanding cultural and entertainment opportunities; maintaining a high quality of life as a safe, family friendly community; preserving and enhancing history and heritage through a vibrant Downtown; and reinforcing a strong sense of community and small-town character.
How Town funds will be leveraged with other dollars:
The requested contribution would represent about 29% of the DMA’s total budgeted income for 2021. These funds generate economic activity, which supports Downtown businesses and generates sales tax. Additional sources of DMA funding are sponsorships and vendors ($90,000) and beverage sales ($140,000).
Additional funds requested this year:
The DMA is increasing their request to $95,000, from the $75,000 each year since 2017. The DMA events have become increasingly popular, while costs have also risen significantly. Increased attendance at the events has also sparked the need for added attractions, and the support of paid staff in addition to volunteers, in order to maintain the quality and safety of the events.
Castle Rock Economic Development Council (EDC)
Amount of Town funds requested: $233,698 (from the Economic Development Fund)
Services to be provided include, but are not limited to the following:
Attracting developers and primary employers to Castle Rock
Growing Castle Rock’s existing primary employers
Developing and recruiting retail businesses
Creating a positive business environment
Counseling the Town on economic development agreements
Anticipated outcomes of services:
Primary employers create jobs and bring new dollars to the community’s economy. Strong retail presence strengthens the Town’s tax base, enhancing its ability to provide core services.
How Town funds will be leveraged with other dollars:
Town investment at the requested level would represent about 27% of the EDC’s projected revenue for 2023, which also includes as major revenue sources private sector investment ($295,000) and Downtown Development Authority/Downtown Merchants Association reimbursements for services ($226,500).
Additional funds requested this year:
Castle Rock EDC’s 2023 request of $233,698 represents an 3% increase over the 2022 contract to account for additional operating expenses over the past year; the request identifies increases in rent, utilities, insurance and compensation.
Castle Rock Historical Society/Museum
Amount of Town funds requested: $87,000 (split between General Fund and PS Miller Trust Fund)
Services to be provided include, but are not limited to, the following:
Preserve the history of the Castle Rock area
Hold open the Castle Rock Museum four days per week, five hours per day, excluding holidays, and provide exhibits at the museum
Provide historical tours and presentations
Assist economic development by presenting the development of Castle Rock from founding to present and encouraging the growth of local businesses while preserving the small-town atmosphere
Anticipated outcomes of services:
Education on the tremendous and varied history of the Town. Provision of a sense of place, and a destination, for the community and visitors.
How Town funds will be leveraged with other dollars and volunteer resources:
The requested contribution represents about 88% of the Historical Society’s projected revenue for 2023. Fundraising is expected to bring in $7,000. Volunteers run tours and guide visitors, donate artifacts and perform restoration duties at the museum.
Additional funds requested this year:
This year’s request represents a $2,500 increase over last year’s funding. In 2023, the Castle Rock Historical Society and Museum plans to expand the vision of highlighting our history by adding featured exhibits, expand outdoor access with the marker program and outdoor interpretive signage, using social media to attract a larger audience, and expanding its outreach through online exhibits and videos.
Castle Rock Senior Center
Amount of Town funds requested: $80,000 for operations (from the PS Miller Trust Fund) and $70,000 for transportation services (from the Transportation Fund)
Services to be provided include, but are not limited to, the following:
Transportation services
Educational, social, health and recreational programs and services and volunteer opportunities for seniors
Anticipated outcomes of services:
Provision of educational, social, health and recreational programs for seniors.
How Town funds will be leveraged with other dollars and volunteer resources:
A $150,000 contribution from the Town (including the $70,000 for transportation) would represent about 18% of the Senior Center’s projected revenues for 2023. Grants ($350,000), fundraising ($120,000), activity income ($80,000) and membership fees ($42,000) represent other significant revenue sources. In 2021, more than 250 volunteers served the center, totaling 16,581 volunteer hours.
Additional funds requested this year:
In 2023, the Senior Center is requesting to increase their funding by $20,000 over last year, split evenly between operational and transportation funds. The Senior Center identifies increasing transportation costs of fuel and insurance, additional cleaning of vehicles to prevent illness, with increasing participation resulting in more frequent and smaller trips. Operating and supplies costs have also increased for providing both in-person and in-home programs and activities to meet the needs of the community.
Douglas County Community Foundation
Amount of Town funds requested: $17,857 (from the General Fund)
Services to be provided include, but are not limited to, the following:
Grant Making
Nonprofit Participation
Colorado Gives Day
Private Donations
Anticipated outcomes of services:
Enriching lives within our community by providing leadership and responsible stewardship of philanthropic contributions through grants, donations and supporting local nonprofit organizations.
How Town funds will be leveraged with other dollars:
About 56% of the DCCF’s projected 2023 revenue would come from corporate and individual gifts and foundations. Event income is expected to generate $100,000. Contributions from Douglas County government jurisdictions - the Town, Douglas County, Lone Tree and Parker - represent about 25% of DCCF’s overall funding, as the primary funding for their administrative expenses.
Douglas County Housing Partnership
Amount of Town funds requested: $35,000 (from the General Fund)
Services to be provided include, but are not limited to, the following:
Home ownership and homebuyer education classes
Foreclosure mitigation and counseling
Reverse mortgage counseling
Rental housing
Anticipated outcomes of services:
An economically thriving community through preserving, providing and developing housing.
How Town funds will be leveraged with other dollars:
About 60% of the Housing Partnership’s projected 2021 revenue would come from various program fees and real estate revenue. Participating jurisdictions - the Town of Castle Rock, Douglas County, Lone Tree and Parker - are expected to contribute about 40%, or $200,000 in all. The 2023 request is the same amount as the approved 2022 service contract.
Douglas County Youth Initiative
Amount of Town funds requested: $19,800 (from the General Fund)
Services to be provided include, but are not limited to, the following:
WrapAround services
Events, including Youth Congress and the Outstanding Youth Awards
Associated expenses - cell phones, mileage, training, supplies, misc.
Anticipated outcomes of services:
A community in which youth are involved, valued, productive, protected and healthy.
How Town funds will be leveraged with other dollars:
All of the Youth Initiative’s revenue comes from participating jurisdictions: Town of Castle Rock, the City of Lone Tree, Douglas County, the Douglas County Libraries, the Douglas County School District, the Department of Human Services, the Highlands Ranch Metro District and the Town of Parker. The 2022 request is the same amount as the approved 2021 service contract.
Financial Impact
Overall, the organizations’ requests reflect an increase of $119,940. The combined total requests for all service contracts for 2023 is $947,408, which is 13.5% more than overall 2022 funding. Funding history and 2023 requests are shown in the chart provided in the executive summary. Funding to accommodate these service contract requests is included in the 2023 Budget.
Staff Recommendation
After listening to the service organizations representatives’ presentations for each proposal, staff recommends Council consider approving the service contract requests as presented. Based on Council’s direction, staff will prepare the 2023 Service Contracts for the Town Manager to administer and execute.
Proposed Motion
“I move to direct the Town Manager to execute the 2023 Service Contracts with the service organizations for the funding amounts as requested.”
“I move to direct the Town Manager to execute the 2023 Service Contracts with the service organizations, with the following changes: (list changes).”
“I move to direct staff to continue this item to the Council Meeting on (date) to allow additional time to (list information needed).”
Attachments
Attachment A: Castle Rock Chamber of Commerce Funding Request
Attachment B: Castle Rock Downtown Development Authority Funding Request
Attachment C: Downtown Alliance Finance Structure
Attachment D: Castle Rock Downtown Merchants Association Funding Request
Attachment E: Castle Rock Economic Development Council Funding Request
Attachment F: Castle Rock Historical Society/Museum Funding Request
Attachment G: Castle Rock Senior Center Funding Request
Attachment H: Douglas County Housing Partnership Funding Request
Attachment I: Douglas County Youth Initiative Funding Request
Attachment K: Summary of Service Organization Contract Amounts from 2010-2023