Laserfiche WebLink
CITY OF ARDEN HILLS <br /> • MEMORANDUM <br /> DATE: July 8 , 1991 <br /> TO: John Buckley, Parks Director <br /> FROM: TJ Woulfe Swanson <br /> SUBJECT: Park Fund Financial Models <br /> Attached are three models I have put together at the direction of <br /> the Mayor, Council and yourself. <br /> The following items are assumptions which were made for all of the <br /> models: <br /> 1 . All receipts are received at the beginning of the year. <br /> 2 . All payments are made at the beginning of the year. <br /> 3 . The rate of interest is 6 1/2% . <br /> 4 . Within six years, there will be no park dedication monies . <br /> • 5 . Within 2 years, park maintenance salaries will no longer be <br /> charged to the Park Fund. The salary figures in year 1 and 2 <br /> are based on 1990 actual wages, with a 4% cost of living <br /> increase included for year 2 . <br /> 6 . Park maintenance and improvement costs of $60, 000 each year <br /> are maintenance costs for current park areas and structures . <br /> Model 7 is intended to keep the fund balance of the Park Fund <br /> relatively constant. This model would need a $10, 000 transfer from <br /> the General Fund in years 3 and 4 as the park dedication monies <br /> begin to decrease. Then beginning in year 5 and continuing through <br /> the length of the model, the General Fund would need to transfer <br /> $15 , 000 to replace the park dedication monies which have been <br /> depleted. This model does not allow for any development of current <br /> or future parks within the City without depleting the fund balance. <br /> Model 8 is intended to increase the fund balance of the Park Fund <br /> by approximately $10, 000 each year. This model requires a $7 , 000 <br /> transfer from the General Fund in year 2 , which would jump to <br /> $18 , 000 in year 3 and gradually increase to $23 , 000 in year 6 . <br /> These transfers again are necessary to offset the depleted park <br /> dedication monies. In year 7 , the transfer in from the General <br /> Fund begins to decrease because the interest income is increasing <br /> due to the compounding of interest as the fund balance grows. <br /> This model gradually increases the fund balance over a period of <br /> several years -which will allow for some expenditures towards <br /> developing new or current parks within the City approximately 25-30 <br />