4.8. SR 06-18-20121-~ ~j
Elk REQUEST FOR ACTION
River
To Item Number
Ma or and Ci Council 4.8
Agenda Section Meeting Date Prepared by
Consent une 18, 2012 Tim Simon, Finance Director
Item Description Reviewed by
Resolution Authorizing a 2012 Budgeted Transfer From the Cal Portner, Ci Administrator
Municipal Liquor Fund to the Park Improvement Fund Reviewed by
Action Requested
Adopt the resolution authorizing a transfer to the Park Improvement Fund from the Municipal Liquor
Store budget.
Background/Discussion
On June 2, 2008, the City Council reviewed and approved the creation of a Park Improvement Fund to
provide along-term funding source for the city park needs.
The Park Improvement Fund funding policy is reprinted below fox your reference.
The City of Elk River may utilize up to 20% of operating income less budgeted transfers from its municipal
liquor stores to fund a Park Improvement Fund (I'IF). The PIF will be used for further build-out of our
current parks, replacement, maintenance of capital assets, and the beautification of city parks.
The municipal liquor fund cash flow will be reviewed at least annually and prior to the transfer to ensure the
Liquor Fund has retained enough profits as working capital for the operating and non-operating expenditures
including personnel costs, maintenance, debt service payments and expansion of physical assets, including
store facilities. In addition, budgeted transfers and capital improvements which utilize liquor profits will be
made prior to the PIF transfer.
The amount will be calculated after the prior year's audit is complete and will be subsequently transferred via
resolution from the City Council. The fund will not incur any debt nor spend in excess of the cash available
since the transfer will be calculated yearly in June.
Prior year's amounts
2010 - $92,815
2011 - $95,592
Financial Impact
The 2012 transfer amount is $108,510. The Municipal Liquor Store Fund has this transfer budgeted in
the 2012 budget.
Attachments
^ Resolution Authorizing a Transfer From the Municipal Liquor Fund to the Park Improvement
Fund
POMiE~i~ 8t
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RESOLUTION 12 -
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING A TRANSFER FROM THE MUNICIPAL
LIQUOR FUND TO THE PARK IMPROVEMENT FUND
WHEREAS, The City Council approved establishing the Park Improvement Fund on June 2,
2008, and,
WHEREAS, The City Council has reviewed the request and determined it to be a sound financial
practice; and,
WHEREAS, It has been determined that $108,510 should be transferred out of the Municipal
Liquor Fund to provide funding for the Paxk Improvement Fund;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk River
makes the following transfer of funds from the Municipal Liquor Fund:
Park Improvement Fund $108,510
Passed and adopted this 18~' day of June 2012.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
P D N E B E 6 B C
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