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 2022 Fiscal Year Budget by Making Supplemental Appropriations for the 2022 Fiscal Year, and Providing for the Emergency Adoption of this Ordinance on Second and Final Reading (Second Reading - Approved on First Reading on October 4, 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 Third Amendment, in Attachment A, to the 2022 Budget total $12,844,306. Supplemental revenue in the amount of $3,828,740 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 2022 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 2022 by $12,844,306.
Secure our water future
• Castle Rock Water requests supplemental appropriation of $770,000 to increase budget for minor drainage way improvements in the Woodlands to address ongoing erosion and flood risk in open space. This project expands beyond the nominal budget for minor drainage ways allocated in the budget due to utility conflicts that require deep boring of pipe to avoid gas mains.
Enhance our transportation
• The Public Works Department is requesting supplemental appropriations, in the amount of $610,000, for their portion of the funds for the Craig and Gould North project. The cost of the project came in over anticipated budget.
• The Public Works Department is requesting supplemental appropriation, in the amount of $80,000, to pave the gravel portion of Rocky View Road with recycled asphalt. Paving this road will extend its lifetime until the developer can make longer lasting improvements.
Maintain strong Parks and Recreation
• The Parks and Recreation department is requesting to do an interfund loan between the Parks and Recreation Capital Fund and the Conservation Trust Fund for $3,700,000. This loan will be paid back within 2 years and is to help construct Mitchell Gulch park.
• The Parks and Recreation department is requesting supplemental appropriation, in the amount of $1,281,027 for construction of Mitchell Gulch park.
• The Parks and Recreation Department is requesting to do an interfund loan between the General Fund and the Golf Fund, in the amount of $541,809, to purchase Golf Equipment during 2022. Engaging in an interfund loan versus financing the equipment saves the Golf Fund thousands of dollars over 4 years.
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 staff is requesting to approve second reading under 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 2022