HomeMy WebLinkAbout5.F.2. Internal Service Fund for Park Assets
S"". F. 2. ,
CITY OF SHAKOPEE
Memorandum
CONSEt~T
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Internal Service Fund for Park Assets
DATE: November 8, 2007
Introduction
Council is asked to consider establishing an internal service fund for
park assets similar to the ones for major buildings and equipment.
Background
The city does not have a plan or funding for replacement of park
assets. This issue has arisen several times over the past year. Over
the past few years, the number of parks and the value of the
improvements have risen dramatically. Establishing the fund with a
consistent revenue source will avoid the spikes and the need to find a
funding source for replacement of those park assets.
Note that this is for replacement only. New assets would still be
funded by the Park Reserve Fund or other sources.
The 2008 budget contains a first step towards the operation of this
fund by "charging rent" on park buildings. Major buildings would stay
in the Building Internal Service Fund but the Youth Building would be
transferred from the Building Fund to the Park Internal Service Fund.
Sand Venture would stay in the Building Fund. Staff is currently
working on the data to include other park assets for the 2009 budget.
These are tennis courts, play equipment irrigation systems, fencing,
hockey rinks, parking lots, lighting systems and recreational trails.
Staff has discussed the issue and is recommending that Council
establish an internal service fund for park assets by adopting the
attached policy.
Action
Discuss and give staff direction.
fiJ
Gregg Voxland
Finance Director
H: \docs\parkassets
Park Internal Service Fund Policy
The City of Shakopee Park Internal Service Fund is hereby established
by City Council action dated
The purpose of this fund is to accumulate and provide capital funding
for replacement of park assets which are defined below.
Revenue for this fund is from operating charges to the General Fund and
other funds as applicable, interest earnings and transfers in from
other funds as determined by Council.
Expenditures are for replacement ($20,000 or more) of the following;
Buildings
Shelters
Tennis courts - surface and fencing
Play equipment sets
Irrigation systems
Fencing
Field lighting systems
Hockey rinks
Parking lots and internal roads
Park/parking lot lighting systems
Recreational trails
The annual budget shall contain appropriations to provide funding to
the Park Internal Service Fund according to the formula(s) then in
place for calculating the "rental charge".