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CC Work Session 2. 3. <br />Meeting Date: 05/12/2015 <br />Information <br />Title: <br />Amend City Funds Policy and Excess Revenue Transfer Policy <br />Purpose/Background: <br />Purpose: Update the City's Ordinance entitled "City Funds" that outlines the respective sources and uses for each <br />fund currently utilized in the city and amend the Excess Revenue Policy to remove Park Maintenance Fund and <br />replace with Park Improvement Fund. <br />Chapter 7 (Section 7.9) Entitled 'Funds' of the City Charter Charter states that there should be maintained in the city <br />treasury a general fund and such other funds as may be required by state statutes, resolution or ordinance The <br />council shall, by resolution or ordinance, create and abolish funds and shall define with funds are eligible for <br />inter -fund loans as it may deem necessary and appropriate. <br />The last time the city's Funds Ordinance was amended was in 2004. Since that time, there have been some funds <br />that are no longer utilized, some added and some that just require an update in their authorized sources and uses. <br />The Lawful Gambling Fund is an example of a fund that needed an update in its authorized sources and uses. <br />In regards to the Excess Revenue Policy, the request is for the Park Improvement Fund be the fund receiving excess <br />revenue at year end due to the demands on Park Improvements instead of a Park Maintenance Fund, whose funding <br />should come from the General Fund. It is best for operational expenses to be included into the budget, because the <br />reliance upon a one-time, excess revenue account for annual expenses is not sustainable and an unreliable way to <br />fund necessary expenditures. This action is in line with the "Financial Stability" goal of the Council. Staff will be <br />requesting at a later date that City Council authorize the transfer of funds currently held in the Park Maintenance <br />Fund to the Park Improvement Fund. The amount of the transfer would be approximately $245,000. The estimated <br />cost of planned park improvements currently exceeds identified revenue sources, even with this transfer. <br />Timeframe: <br />20 minutes <br />Funding Source: <br />Responsible Party(ies): <br />Finance Director <br />Outcome: <br />Establish amended City Funds Ordinance for future City Council adoption and authorize staff to bring amended <br />Excess Revenue Policy forward for future Council adoption. <br />Attachments <br />Draft of City Funds Ordinance <br />Amended Excess Revenue Policy <br />Minutes from 2004 <br />