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<br />The internal loan has rendered the practicality of having a separate Park Infrastructure <br />Maintenance Fund questionable, as it is no longer has the ability to generate much interest <br />earnings. The current fund balance in the Parks Infrastructure Maintenance Fund is <br />approxinlately $300,000, which generates approximately $15,000 annually in interest earnings to <br />support the City's park maintenance function. Had the $1.2 million accmllulated deficit not <br />occurred, the additional monies could have renlained in the Parks Infrastructure Maintenance <br />Fund and would have generated approximately $75,000 in annual interest earnings. <br /> <br />Operating Deficits in other City Functions <br />At times, the City does incur operating deficits in other City functions. However, the City's <br />financial history delllonstrates that these operating deficits are generally offset by surpluses that <br />are realized in the years proceeding the deficit year, or in the years following. This has not been <br />the case with the Oval/Skating Center. <br /> <br />A notable exception might be the City's Community Developnlent function which, like the <br />Oval/Skating Center is designed to be a fee-based, stand-alone function. For the past several <br />years, this function has been reliant on its reserves. These reserves are quickly evaporating. A <br />decision on the appropriate staffing level and/or appropriate charges for services within the <br />Community Development Departnlent will need to be made in the next 3-6 months. <br /> <br />2 <br />