Agenda - Council Work Session - 05/12/2015

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CREATION OF A PARK FUND By: Diana Lund, Finance Officer Background: FC:.3 On June 10, 2004, City Council held a joint meeting with the Park & Recreation Commission. During this meeting, the creation of a new Park Fund was discussed. The Park Commission, as well as City Council was in agreement that a new fund should be created. The purpose of this meeting is to discuss what the purpose of this Park Fund is, that is, what are its eligible expenditures and sources. It was determined that the "Park Fund" would be a Trust Fund. Trust Funds are used to account for assets held by a government in a trustee capacity for individuals, private organizations, other governments and/or other funds. I have provided a brief summary of the questions that need be answered in regards to the creation of the new Park Fund with possible answers. 1. What will the Park Fund be used for? Possible Definition -The Park Fund will be used to account for resources accumulated to defray the cost of maintaining and/or acquiring park improvements. 2. What Revenue Sources will fund the Park Fund? a. Donations b. Excess General Fund Revenue Transfer in the amount of 10% (Will need to change current policy). c. Interest Earnings from pooled interest earnings. d. Park and Trail Fees (future?) 3. What expenditures will be allowed from the Park Fund? a. Yearly transfer to the General Fund in the amount of _% of accrued Interest earnings to offset park maintenance costs. b. Any Capital Expenditures (non-operating) that would utilize principal And are approved by a four-fifths vote of the City Council. c. Fund balance shall be increased to and maintained at $3,000,000 unless Council declares an emergency situation exists. These are just some ideas that were presented at the Joint meeting with Planning Commission. Minutes from this meeting are attached.