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City of <br /> Elk=' Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 4.7 <br /> Agenda Section Meeting Date Prepared by <br /> Consent June 16, 2014 Tim Simon, Finance Director <br /> Item Description Reviewed by <br /> Resolution Authorizing Transfer from the Cal Portner, City Administrator <br /> Municipal Liquor Fund to the Park Improvement Reviewed by <br /> Fund <br /> Action Requested <br /> Adopt,by motion,a resolution authorizing a transfer from the Municipal Liquor Fund to the Park <br /> Improvement Fund. <br /> Background/Discussion <br /> On June 2, 2008, the City Council reviewed and approved the creation of a Park Improvement Fund to <br /> provide a long-term funding source for city park needs. Subsequently, on November 19, 2012, the <br /> funding percentage was revised and approved during the 2013-2017 capital improvement planning <br /> process. <br /> The Park Improvement Fund policy states the following: <br /> The City of Elk River may utilise up to 45%of operating income less budgeted transfers from its municpal liquor <br /> stores to fund a Park Improvement Fund(PIF). The Park Improvement Fund will be used for further build-out of <br /> our current parks, replacement and maintenance of capital assets, and the beautification of city parks. <br /> The Municpal Liquor Fund casb flow will be reviewed at least annually and prior to the transfer to insure the Liquor <br /> Fund bas retained enough profits as working capital for the operating and non-operating expenditures including <br /> personnel costs, maintenance, debt service payments and expansion of physical assets, including store facilities. In <br /> addition, budgeted transfers and capital improvements wbicb ut&.Ze liquor profits will be made prior to the Park <br /> Improvement Fund transfer. <br /> The amount will be calculated after the prioryear's audit is complete and will be subsequently transferred via resolution <br /> from the City Council. The fund will not incur any debt nor spend in excess of the casb available since the transfer will <br /> be calculatedyearly in June. <br /> Financial Impact <br /> The 2014 transfer amount is $282,519. The Municipal Liquor Fund has this transfer budgeted in the <br /> 2014 budget. <br /> Attachments <br /> ■ Resolution authorizing a transfer from the Municipal Liquor Fund to the Park Improvement <br /> Fund. <br /> P a w E R E U 6 Y <br /> Template Updated 4/14 INIM UREI <br />