4.9. SR 11-19-2012REQUEST FOR ACTION
To
Item Number
City Council
4.9
Agenda Section
Meeting Date
Prepared by
Consent
November 19, 2012
Tim Simon, Finance Director
Item Description
Reviewed by
Park Improvement Fund Funding Policy Update
Reviewed by
Action Requested
Council is asked to approve the updated Park Improvement Fund funding policy update.
Background /Discussion
On June 2, 2008, the City Council reviewed and approved the creation of a Park Improvement Fund to
provide a long -term funding source for the city park needs and replacements. The original policy utilized
20% of operating income less budgeted transfers from the municipal liquor stores. Based on the long-
term planning and the number of replacement projects coming in the next several years, the Council
discussed increasing the percentage from 20% to 45% starting in 2013.
Financial Impact
The 2013 transfer from the Municipal Liquor Store Enterprise fund will average around $250,000
depending on operating income on a yearly basis.
Attachments
• Revised Park Improvement Fund Policy.
PDIIAID Dr
ATUR
Adopted by Council.- June 2, 2008 (Item 9.2)
Betvi. ed by Council.- November 19, 2012
Park Improvement Fund
The City of Elk River may utilize up to 2"0 45% of operating income less budgeted
transfers from its municipal liquor stores to fund a Park Improvement Fund. The Park
Improvement Fund 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 insure the 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 Park
Improvement Fund transfer.
The amount will be calculated after the prior years 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.