4.13. SR 06-21-2021
Request for Action
To Item Number
Mayor and City Council 4.13
Agenda Section Meeting Date Prepared by
Consent June 21, 2021 Lori Ziemer, Finance Director
Item Description Reviewed by
Park Improvement Funding Policy Update and Cal Portner, City Administrator
Resolution Authorizing Transfer from Municipal
Reviewed by
Liquor Fund to Park Improvement Fund
Action Requested
Approve, by motion, the updated Park Improvement Funding Policy.
Adopt, by motion, the resolution authorizing the transfer from the Liquor fund to the Park
Improvement fund.
Background/Discussion
At the June 7 work session, the Council reviewed the revision to the Park Improvement Funding Policy
utilizing a transfer from its municipal liquor stores of up to 45% of operating income less budgeted
transfers or $250,000, whichever is greater. This will provide stability to the long-term funding source and
allow for the planning of replacement and maintenance of city park assets.
Based on the revised funding policy, the amount of the transfer from the Liquor Fund to the Park
Improvement Fund will be the greater of $235,483, calculated as 45% of operating income less budgeted
transfers, or $250,000.
Financial Impact
The 2021 transfer amount is $250,000 and is budgeted for in the Liquor Fund.
Mission/Policy/Goal
To responsibly grow and develop a sustainable and prosperous community.
Attachments
Park Improvement Funding Policy
Resolution authorizing a transfer from the Liquor fund to the Park Improvement fund.
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Adopted by Council: June 2, 2008 (Item 9.2)
Revised by Council: November 19, 2012
Revised by Council: June 21, 2021
Park Improvement Funding Policy
The City of Elk River may utilize up to 45% of operating income less budgeted transfers
from its municipal liquor stores or $250,000, whichever is greater, to provide funding for the
Park Improvement Fund (PIF). Budgeted transfers and capital improvements which utilize
liquor profits will be made prior to the Park Improvement fund transfer.
The Park Improvement Fund will be used for further build-out of our current parks,
replacement and maintenance of park 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.
The amount to transfer to the PIF 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.
City of Elk River
City Council
Resolution 21-____
A Resolution of the City Council of the City of Elk River Authorizing a
Transfer from the Liquor Fund to the Park Improvement Fund
WHEREAS, The City Council approved the establishing of the Park Improvement
Funding Policy on June 2, 2008.
WHEREAS, The City Council has reviewed the request and determined it to be a sound
financial practice.
WHEREAS, It has been determined that $250,000 should be transferred out of the Liquor
fund to provide funding for the Park Improvement fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: The transfer of $250,000 from the Liquor fund to the Park
Improvement fund.
Passed and adopted this 21st day of June 2021.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk