5.2. SR 09-10-2007 - Laserfiche WebLink

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Item # 5.2. ver MEMORANDUM TO: Mayor and City Council FROM: Tim Simon, Finance Director DATE: September 10, 2007 SUBJECT: 2008-2012 Park Improvement Projects The purpose of this meeting is to continue the discussion regarding projects proposed for funding in the 2008-2012 Capital Improvement Program (CIP) which will be adopted later this fall. Bill Maertz, Parks and Recreation Director, will be at the meeting to go over the projects in detail and answer any questions. Below are a couple key assumptions that went into the financial review of the fund: • The primary funding source for our park projects is the park dedication revenues and on occasion various grants. In looking at the park dedication revenues over the next five years, the planning department projected the number of platted lots and the associated revenues based on a 5% increase in the park dedication fee each year. • Current land acquisitions such as the Barsody property, Pinewood Golf Course, and potentially the Malmstrom property have a fixed payment schedule over the next five years. • A minimum reserve balance in 2008 was established to ensure we have enough funds on hand at year-end to cover at a minimum the first two quarters of payments the following year since the majority of park dedication revenues collected start in the spring of each year. • A reserve balance of $750,000 at the end of 2011 is to ensure we have funds on hand for April 2012 when we make the final Pinewood payment. There are a number of projects being proposed in which we identified the estimated park dedication resources available to fund these projects. We will review the CIP and readjust the priority of the projects on an annual basis based on the updated park dedication revenues and reserve balances. I have attached copies of the 2008-2012 CIP being proposed and a copy of the financial analysis on the park dedication fund. While this is a great tool for long-term planning of the park projects, we will again review the proposed projects in the 2009-2013 CIP next year. C:\Documents and Settings\jmiller\Local Settings\Temporary Internet Files\OLK3E\CIP memoparks.doc