Castle Rock proposes $411.8 million 2027 budget, $63.3 million draw
The proposed budget would use fund balance to cover the gap between revenue and spending. Separately, a second-quarter report put townwide revenue about 60% below its year-to-date budget, citing delayed water-debt issuances and slower growth.
Castle Rock is proposing a $411.8 million budget for 2027, including a planned $63.3 million use of fund balance. Town Council is scheduled to consider it at a first reading Oct. 6; the proposal has not been adopted.
The town’s 2027 budget message projects $348.5 million in revenue and $411.8 million in spending. It allocates $257.3 million for operations, $105.2 million for capital improvements and $49.3 million for debt, interfund loans and transfers. The five-year financial plan identifies the $63.3 million difference as use of fund balance. The budget message says annual operating revenue is expected to exceed operating expenses, so the planned draw is not presented as covering an operating deficit.
Separately, a report on town finances through June 30, 2026, put townwide revenue about 60% below the year-to-date budget. The quarterly financial review attributed the gap mainly to planned Castle Rock Water debt issuances that had not yet occurred and growth slower than anticipated. The comparison is with the budget for the period, not with revenue in the prior year: gross sales-tax collections were 7.2% higher than during the same period in 2025.
Through June 30, the town issued 106 single-family permits, no multifamily permits and eight commercial-project permits, the review said. It also reported impact and system-development fee revenue below the year-to-date budget. The proposed 2027 budget assumes 350 single-family and 400 multifamily units. Its message says slower residential growth reduces impact-fee revenue and limits capacity for capital projects; the 2026 permit counts are a snapshot, not a forecast for 2027.
The proposal includes $18.6 million for pavement maintenance and adds five Fire and Rescue positions and five Police positions. Its 2027–2031 capital improvement plan totals $291.3 million, including nearly $147 million for water, stormwater and wastewater projects. Major transportation work includes the Crystal Valley Parkway interchange and Wolfensberger Road widening. The town’s capital improvement plan lists $20.6 million for Wolfensberger and $15.25 million for Fifth Street widening over the plan period.
Town Council is scheduled to consider the budget at a second reading Oct. 20.