2019-08-28 CC Packet - Laserfiche WebLink

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�'` 1880�1ainScreet, CenterviCCe, �[:W55038 651-429-3232 oi, Exv, 651-429-8629 Memorandum Date: August 28, 2019 To: Mayor and City Council Members Through: Mark Statz, PE — City Administrator/Engineer From: Bruce DeJong, Finance Director Item: Park Capital Fund Discussion The purpose of this memo is to bring to the City Council's attention the status of Fund 402 - Park Capital Project Fund. This fund is sometimes known as the Park Dedication Fund because its primary source of funding is from Park Dedication Fees, collected from developers as new plats are approved. Expenditures from this fund should be limited to the purchase and construction of new park equipment or facilities. The replacement or reconstruction of existing parks facilities is budgeted under 409 - Capital Equipment Revolving Fund. That pot of money is funded through an annual transfer from the General Fund tax levy. Fund History Park Dedication Fees (PDFs) have been collected for many years, in Centerville and are currently authorized through Chapter 153 of the City Code. In December of 2007, the city spent the balance of the fund and borrowed $ 283,311.88 from the Sewer Fund for the purchase and improvement of Hidden Spring Park. Then, in 2010, the city again borrowed from Sewer Fund to pay for the large Trail Project, throughout the city. This project totaled over $1.6 M, but was partially funded through a Federal Transportation Enhancement Grant. The remaining costs of the project totaled $825,000. The total loan amount was finalized at $1,108,311.88. This loan was formalized by Resolution #10-035 (see attached), which outlined a repayment schedule and the arrangements for a situation in which there was a lack of PDFs collected to honor that schedule. In the time since 2010, the city has received very little in the way of PDFs, due to the lack of development through the recession. Therefore, payments on the principal amount of the loan have not been made. The inter -fund loan resolution states that if "...sufficient PDFs are not received in time to make the payments per the schedule, the General Fund shall pay the annual interest, but principal payments shall be deferred until such time PDFs are available. "