HomeMy WebLinkAbout2013-11-20 PACKET 08.A.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM # �
DATE 11/20/13 �
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PREPARED BY Finance Robin Roland
ORIGINATING DEPARTMENT DEPARTMENT HEAD
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COUNCIL ACTION REQUEST
Consider resolution establishing the Park Improvement Capital Project Fund.
STAFF RECOMMENDATION
Adopt resolution establishing the Park Improvement Capital Project Fund.
BUDGET IMPLICATION
BUDGETED AMOUNT
ADVISORY COMMISSION ACTION
DATE
❑ PLANNING
❑ PUBLIC SAFETY
❑ PUBLIC WORKS
❑ PARKS AND RECREATION
❑ HUMAN SERVICES/RIGHTS
❑ ECONOMIC DEV. AUTHORITY
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SUPPORTING DOCUMENTS
� MEMO/LETTER:
� RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
ADMINISTRATORS COMMENTS:
REVIEWED
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ACTUAL AMOUNT
APPROVED
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DENIED
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Date
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H:\Council items\council-action.doc
Cottage
� Grove
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� Pride and QrOSPerity Meet
To: Mayor and City Council Members
Ryan Schroeder, City Administrator
From: Robin Roland, Finance Director
Da'te: November 8, 2013
Subject: Consider Resolution establishing Park Improvement Capital Project Fund
Introduction
As part of the 2014-2015 budget process, the City Council directed that a funding mechanism
be established to assure long term funding for capital improvements to existing park facilities.
Discussion
Currently, parks are constructed in conjunction with development of residential or commercial
property using dedicated fees paid by developers. Park Dedication fees are established by
City ordinance and evaluated each year as part of the City budget process and fee schedule
review. The fees are accumulated in the "Park Trust Fund" and expenditures for the
establishment of new parks are charged against them.
Once established, regular operational maintenance and upkeep of park properties are funded
by the Park Maintenance division in the General Fund. However, as the park system ages,
more significant costs for renovations and replacement of equipment have been difficult to fit
into the annual budget. Although several years of the "Park Shelter replacement/Playground
Equipment replacement" tax levy have managed to bridge any gap for necessary
improvements, recent years have seen this levy be reduced and eliminated more often than
not.
The consensus of the City Council was to consider establishment of a new fund, using
revenues derived from the leasing of space on the City's Water Towers/Reservoirs for Cell
phone antennas. Until 2013, these revenues have been directed to the Water Utility Fund to
pay for the costs of painting water towers. Currently these lease revenues exceed $360,000
annually. Other antennas exist on the lattice tower at the BEC and a tower at the Public Works
Facility; lease revenues from these antennas will continue to be assigned to their respective
funds.
The resolution for consideration reflects the City Council's intent in creating the Park
Improvement Capital Project fund and outlines policy regarding revenues and expenditures.
Recommendation
Adopt the resolution creating the Park Improvement Capital Project Fund.
RESOLUTION NO: 2013-[Resolution Number]
ESTABLISHING A PARK IMPROVEMENT CAPITAL PROJECT FUND
WHEREAS, the City Council of the City of Cottage Grove desires to
establish a separate funding mechanism for improvements and upgrades to
existing park properties and facilities; and
WHEREAS, funds have previously been levied for park shelter and
playground equipment replacement and expensed for the same purposes; and
WHEREAS, the City receives revenue for the leasing of space on water
towers for cell phone antennas.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Cottage Grove, County of Washington, and State of Minnesota that the Park
Improvement Capital Project fund is established as follows:
1. Lease revenues, from the rental of space on water towers for cell
phone antennas shall be the primary source of revenue into this fund.
2. Other revenues may accrue into said fund from investment earnings,
donation and grant revenues and other sources as designated by the
City Council.
3. The existing fund balance from the "Park Shelter/Playground
Equipment replacement" levy shall be used as the initial fund balance
at January 1, 2014.
4. Expenditures from the fund shall be limited to capital costs of
improvements to existing parks, including engineering/design services,
materials, equipment, and construction. Expenditures toward
operational costs, administration, and/or debt service payments shall
not be allowed from this fund.
5. The fund balance of the Park Improvement Capital Project Fund shall
not be less than 50% of the annual revenue of the fund.
Passed this 20th day of November, 2013.
Myron Bailey, Mayor
Attest:
Caron M. Stransky, City Clerk