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Item # 4_5. <br />MEMORANDUM <br />ver <br />TO: Mayor and City Council <br />FROM: Tim Simon, Finance Director <br />DATE: February 14, 201 I <br />SUBJECT: Review of Reserve Funds <br />The purpose of this discussion is to provide an update to the City Council on special <br />revenue and capital project funds the City maintains. During the capital improvement plan <br />(CIP) discussions we review the majority of these funds along with revenue and expenditure <br />projections for the next several years (2011-2015). I have included the information in the <br />same foxrnat as presented at the various woxksessions in 2010. In May, prior to starting the <br />2012 budget we will review the 20-year forecast on the general fund. The enterprise fund <br />forecasts axe updated and presented with the budget. <br />With the implementation of governmental accounting standards board (GASB) statement <br />#54 we reviewed all the City's special revenue funds fox appropriate classifications and <br />designated purpose. I have attached the same spreadsheet we reviewed with 2009 final <br />numbers (Exhibit J). <br />Park Improvement Fund (Exhibit A) <br />The park improvement fund was created to provide a funding source fox replacement and <br />further build out of our current parks. The funding source is an annual transfer from the <br />municipal liquor store based on a percentage (20%) of profits after approved transfers. The <br />expenditures planned in 2011 are playground safety repairs/supplies, re-lamp the Orono <br />softball fields, and several well upgrades at various fields. The subsequent years will be <br />updated with the CIP based on avai]able funds. <br />Government Building Reserve Fund (Exhibit B) <br />This fund covers building construction and maintenance, landscaping, and small remodeling <br />projects for the municipal buildings. As discussed in the previous CIP's we established <br />setting aside $50,000 annually fox future building repairs such as roof ox mechanical system <br />replacements. Aside from routine updates and maintenance projects, the public works <br />facility expansion project will run through this fund. The main funding source aside from <br />interest earnings is the host fee. <br />C:\Usets\jmillec\AppDa[a\Local\Miaosoft\Windows\Temporary Internet Files\Low\ContenclES\SYEINSER\CPFunds[1].doc <br />