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Elk REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Mayor and City Council 4.6 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> Consent June 17, 2013 Tim Simon, Finance Director <br /> ITEM DESCRIPTION REVIEWED BY <br /> 2013 Budgeted Transfer From the Municipal Liquor Fund to the Cal Portner, City Administrator <br /> Park Improvement Fund REVIEWED BY <br /> ACTION REQUESTED <br /> Approve by resolution the transfer of$250,289.00 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 funding policy is reprinted below for your reference. <br /> The City of Elk River may utilize up to 45%of operating income less budgeted transfers from its municipal <br /> liquor stores to fund a Park Improvement Fund (PIF). The Park Improvement Fund will be used for further <br /> build-out of our current parks,replacement and maintenance of capital assets,and the beautification of city <br /> parks. <br /> The Municipal Liquor Fund cash flow will be reviewed at least annually and prior to the transfer to insure the <br /> Liquor Fund has retained enough profits as working capital for the operating and non-operating expenditures <br /> including personnel costs,maintenance,debt service payments and expansion of physical assets,including <br /> store facilities. In addition,budgeted transfers and capital improvements which utilize liquor profits will be <br /> made prior to the Park Improvement Fund transfer. <br /> The amount will be calculated after the prior year's audit is complete and will be subsequently transferred via <br /> resolution from the City Council.The fund will not incur any debt nor spend in excess of the cash available <br /> since the transfer will be calculated yearly in June. <br /> FINANCIAL IMPACT <br /> The 2013 transfer amount is $250,289. The Municipal Liquor Store Fund has this transfer budgeted in <br /> the 2013 budget. <br /> ATTACHMENTS <br /> ■ Resolution authorizing a transfer from the Municipal Liquor Fund to the Park Improvement <br /> Fund <br /> R Q w E A E 0 9 T <br /> NAWREI <br />