9.2. SR 06-02-2008 - Laserfiche WebLink

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Item # 9.2. MEMORANDUM TO: Mayor and City Council FROM: Tim Simon, Finance Director DATE: June 2, 2008 SUBJECT: Parl< Improvement Funding 1A4any dues use a varieh' of ways to fund park improvements such as tax levies, pear-end transfers, general fund operations-, and liquor store profits. In looping at a variety of options, I would recommend that d~re Ciry~ uses a percentage of liquor store profits as detexrnined on a yearly basis for park improvements. The finance department maintains afive-year cash flow forecast on the liquor stores and feels this will 6e manageable given the percentage ttansFerxe~d will be reviewed on a yearly basis. See example policy below: Funding For Parlc Improvements The Cit~° of Till-. River map utilize up to 20% of net income from its municipal liduox stores to fund a park improvement fund (PIF). The park improvement ftmd will be used for further build-out of our current pvl~s, replacement, maintenance of capital assets, and the beautification of city parks. The municipal liquor fund cash flow will be reviewed at least annually and prior to the transfer to insure the Liquor fund has retained enough profits as working capital fox the operating and non-operating expenditures including personnel costs-, maintenance, debt service payments and expansion of physical assets, including store facilities. In addition, budgeted uansfets and capital ixstprovements which urilize liquor proilts- will be made prior to the park improvement fund transfer. The amount will be calculated after the prior years audit is complete and will be subsequently transferred via resohitiou from the City Council- The fund will not incur any debt not spend in excess of the cash available since the transfer will be calculated yearly in f time.