Council approves third 2025 budget amendment to cover water projects, benefits and debt service

Castle Rock — The Town Council on Oct. 21 approved Ordinance 2025-37, the third amendment to the 2025 budget, adding $11.53 million in authorized expenditures and offsetting revenue of $2.96 million for a set of staff-identified items across water, parks, transportation and employee benefits.

Key adjustments include:
- $3,406,000 to budget previously approved reservoir project costs (property purchase and construction oversight)
- $2,139,000 budget capacity to enable a possible November purchase of 250 acre-feet of water subscription and related infrastructure capacity from the Pinery, subject to a separate future council approval
- $2,000,000 additional appropriation to the employee benefits fund to cover higher-than-anticipated medical expenses
- $1,054,000 for a transportation project (Fifth Street project)
- $450,000 increase to the ColoradoScape rebate program to meet higher demand
- $1,172,350 debt service payment due Dec. 1 for certificates of participation for the sports and Brickyard projects
- Additional smaller adjustments to golf course operations and community center part-time benefits

Finance staff explained that the Pinery purchase is only budget authority at this point; any purchase would require a separate approval. The budget amendment was presented after department-level vetting and with funds available in the approved 2025 fiscal plan.

Councilmember Hollingshead moved to approve the ordinance; the motion carried 7-0 on roll call.