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