3.10. SR 06-15-2009REQUEST FOR ACTION
To Item Number
Ci Council 3.10.
Agenda Section Meeting Date Prepared by
Consent une 15, 2009 Tim Simon, Finance Director
Item Description Reviewed by
Resolution Authorizing a Transfer from the Municipal Liquor Lori ohnson, Ci Administrator
Fund to the Park Improvement Fund Reviewed by
Action Requested
Council is asked to approve a transfer to the Park Improvement Fund from the Municipal Liquor Store
Fund.
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 for 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 (PIF). 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
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 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.
The amount transferred in 2008 was $107,248.
Financial Impact
The 2009 transfer amount is $106,639. The Municipal Liquor Store Fund has this transfer budgeted in
the 2009 budget.
Attachments
^ Resolution authorizing a transfer from the Municipal Liquor Fund to the Park Improvement
Fund.
Action Motion by Second by Vote
FOIIOW Up
RESOLUTION 09 -
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 $106,639 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 $106,639
Passed and adopted this 15th day of June 2009.
Stephanie Klinzing, Mayor
ATTEST:
Tina Allard, City Clerk