4.6. SR 06-17-2013 Elk REQUEST FOR ACTION
River
TO ITEM NUMBER
Mayor and City Council 4.6
AGENDA SECTION MEETING DATE PREPARED BY
Consent June 17, 2013 Tim Simon, Finance Director
ITEM DESCRIPTION REVIEWED BY
2013 Budgeted Transfer From the Municipal Liquor Fund to the Cal Portner, City Administrator
Park Improvement Fund REVIEWED BY
ACTION REQUESTED
Approve by resolution the transfer of$250,289.00 from the Municipal Liquor Fund to the Park
Improvement Fund.
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 city park needs. Subsequently, on November 19, 2012, the
funding percentage was revised and approved during the 2013-2017 capital improvement planning
process.
The Park Improvement Fund funding policy is reprinted below for your reference.
The City of Elk River may utilize up to 45%of operating income less budgeted transfers from its municipal
liquor stores to fund a Park Improvement Fund (PIF). The Park Improvement Fund will be used for further
build-out of our current parks,replacement and 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
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 Park Improvement Fund 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.
FINANCIAL IMPACT
The 2013 transfer amount is $250,289. The Municipal Liquor Store Fund has this transfer budgeted in
the 2013 budget.
ATTACHMENTS
■ Resolution authorizing a transfer from the Municipal Liquor Fund to the Park Improvement
Fund
R Q w E A E 0 9 T
NAWREI
RESOLUTION 13 -
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,revised on November 19, 2012, 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 $250,289 should be transferred out of the Municipal
Liquor Fund to provide funding for the Park 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 $250,289
Passed and adopted this 17 h day of June 2013.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City Clerk
r n w E R E U ® T
NnATUREI