To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Ordinance Approving the Fourth 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 First and Final Reading
Body
________________________________________________________________________________
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 Fourth Amendment to the 2022 Budget total $12,626,501. Also, an additional $3,048,711 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 fourth 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 $12,626,501. Major requests included in this budget amendment are described below and are grouped by Town priority.
Secure our water future
• Castle Rock Water requests supplemental appropriation of funds totaling $4,170,006 This includes funding for the Liberty Village Yellow Zone project, Bell Mountain Infrastructure and Improvement project, and a transfer out to Conservation Trust Fund for cellphone tower revenue collected over the past 5 years.
Enhancing our transportation
• The Public Works Department requests a transfer of $269,060 into to the Parking Fund to give funds to the Quiet Zone Project and for Public Safety events and parking garage maintenance.
Maintain strong Parks and Recreation
• The Parks and Recreation Department requests supplemental appropriation of $408,954 for site improvements such as Philip S Miller Play loop and Metzler Ranch Parking Lot. These expenses are offset by corresponding revenues.
• The Community Center requests supplemental appropriation for $223,000 for youth programs, the revenue has also exceeded budget.
• The Parks and Recreation Department requests supplemental appropriation of $155,647 to transfers funds to Conservation Trust Fund for construction of Plum Creek North and for additional funds for the Tennis Courts at Mitchell Gulch.
• Supplemental appropriation in the Philip S Miller Trust Fund to increase revenues and expenses by $140,000. Revenue and expenses for special events have exceeded budgeted estimates in 2022. This request will have a zero balance increase to the budget.
• The Parks and Recreation Department requests a transfer from the Community Center of $57,750 to the Parking Fund to give funds to the Quiet Zone Project and for Public Safety events and parking garage maintenance.
Ensure outstanding public safety
• The Fire Department requests supplemental appropriation of $1,000,000 for fire mitigation and whatever isn’t spent will be carried forward to the next year. The funding for this project is from the TABOR surplus that voters approved for Police, Fire and Road needs.
• The Fire Department requests supplemental appropriation of $1,026,783 to be transferred to the Fleet Fund for the prepayment of a new apparatus which will be delivered in about 30 months for the forecasted Fire Station in 2025.
Other Town funds and initiatives
• The Facilities Division is requesting supplemental funds of $377,111 for a Town Hall renovation project. Project costs include construction, IT needs, and office furniture. This project will result in hard-walled office space for current and future employees.
• The Town Manager’s office is requesting supplemental appropriation for $3,525,000 to purchase the Cantril building in the Downtown Castle Rock area. $500,000 is also being requested for necessary upgrades to the Cantril building.
• The Finance Department is requesting a transfer for the Parking Fund to be used for the Quiet Zone Project, Public Safety events and parking garage maintenance. These are part of Council approved use of sales tax funds that would have otherwise been transferred to the DDA Special Fund (totaling in 2022 $900,000.00 for the quiet zone, $50,000 annually for special events, and $150,000 annually for parking garage maintenance).
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 as written. Due to statutory timing staff is requesting to approve first reading under emergency adoption.
Proposed Motion
“I move to approve on the Ordinance as introduced by title, and emergency adoption on first and final 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 Appropriation
Attachment C: Estimated Ending Funds Available for 2022