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Case #1: Creation of a Park Fund Finance Officer Lund explained the purpose of this case was to discuss the creation of a new Park Fund and its possible funding sources and uses. Finance Officer Lund explained most park projects are currently being funded from the Park Trust Fund, which is funded from Park Dedication Fees received from developers when a parcel is developed. Park dedication fees are deposited 50% into the respective park district and the remaining 50% can be spent in any park district. While this fund has a healthy balance, it does not take into consideration those park districts that have little or no development fees to help fund necessary projects. Also, the City is currently in a growth mode, with much development occurring, which generates park dedication fees. What happens when development stops, the parks still need to be updated, maintained, etc. Finance Officer Lund noted that it is felt that with the additional park costs attributed to the ongoing maintenance, improvements, and acquisition that it was necessary to begin the implementation of an additional fund. Council directed staff at the Finance Committee meeting of May 25, 2004, to have this item presented at the June 10, 2004 Park Commission meeting so that the City Council and Park Commission could jointly determine the necessary funding uses and sources of this fund. Finance Officer Lund stated the creation of an additional fund requires the adoption of an ordinance amending Chapter 3, Section 3.40 entitled "City Funds". Chairperson Johns asked if this was an addition to or was it included in the current Park Fund. Ms. Lurid stated it was a separate fund. She stated that there is The Park Improvement Revolving Fund and this fund is only for park improvements and construction but not upkeep. She stated they wanted to have a blended fund that would allow for acquisition and maintenance. Commissioner Olds asked where the funds for maintenance came from. Ms. Lund stated they are included in the general fund right now and subject to the levy limit. She stated this would allow any of the upkeep coming online with the new parks, if levy limits were to remain in place; they will always be contained to what is in the general fund budget for the park maintenance. This would allow for a rainy day sort of fund. Councihnember Elvig stated a lot of this started last year when they were struggling with some of their budgeting. He stated they ran into some overages in the General Fund and they were wondering how they were going to disperse some of those funds. What the Park Commission is running into is they are developing the community but they do not know how they are going to pay for maintenance in the long term when the opportunity for new growth has stopped and they cannot keep the new growth happening. He stated this way, they can put some dollars into a fund sort of like an endowment and they would have something they would pull off of on a yearly basis. Chairperson Johns asked where the funds were coming from. Councilmember Elvig stated they were coming from development dollars.