Town Council Update

Sept. 4 Council Update: Proposed 2019 Budget moves forward to second reading, first reading for two ordinances adjusting impact fees and system development fees approved

Several financial items were discussed at Town Council’s meeting Tuesday, including the Proposed 2019 Budget and adjustments to both impact fees and Castle Rock Water’s system development fees.

Additionally, a site development plan to construct 155 age-targeted apartments and townhomes at the northwest corner of Crystal Valley Parkway and Plum Creek Boulevard was approved, and a resolution was finalized to approve the Town’s purchase of a Conoco Station at Wilcox Street and Wolfensberger Road for future transportation improvements.

Here's a look at a few other items Council discussed Tuesday:

  • Grocery tax – Council reviewed the impacts that adjusting the Town’s sales tax on food for home consumption – more commonly known as the grocery tax – could have on Town operations. Currently, the Town receives about $7 million per year from the grocery tax, which largely funds police, fire, road maintenance and other Town functions. Council was presented options for alternative revenue sources, should it wish to adjust the grocery tax and maintain current levels of service.

    Following the presentation, Council directed staff to further evaluate options for potential adjustments, and requested more information on shopping patterns. Additionally, staff was directed to add questions about the possible elimination of the grocery tax to the Town’s 2019 Community Survey.

    Watch the Council discussion
  • 2019 Budget – The first of two formal readings of the Proposed 2019 Budget was approved by Council Tuesday. In the proposed budget, there are no tax increases, nor new taxes. The owner of a median-valued home would still pay the Town only $35.74 in property taxes in 2019, and the Town’s portion of the sales tax rate would hold at 4 percent, which it has been since 2011. Modest rate increases are included for existing Castle Rock Water customers on outdoor water use, as well as for golf course and recreation facility users.

    The second reading of the proposed budget will go before Council Tuesday, Sept. 18.

    Watch the presentation and public discussion

  • Impact fees – Council approved the first reading of proposed changes to the Town’s nonutility impact fees, which developers pay to fund growth-related capital needs for items like new roads, parks and fire stations. The Town updates the fees periodically to ensure they are aligned with market conditions. 

    Staff is recommending a four-year phase-in of a 53 percent increase in these fees, which in 2019 would amount to a .37 percent increase for a new home valued at $450,000. Existing residents and business owners do not pay these fees. If these fees are not increased, alternatives include reducing levels of service or requesting tax increases.

    Watch the Council discussion and public hearing

  • System development fees – Council also approved on first reading a proposed 8 percent increase to Castle Rock Water’s system development fees – fees developers pay to fund growth-related capital needs for water supply, water, wastewater and stormwater infrastructure. 

    Watch that discussion

Stay connected

Get a full agenda or watch any Council meeting. The next Town Council meeting is scheduled for Tuesday, Sept. 18. Please note, there will be a special meeting from 5-7 p.m. Wednesday, Sept. 12. This meeting will be a work session for Town Council to provide direction and next steps on the planned interchange for Crystal Valley Parkway and Interstate 25.

Questions? Email Council.

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