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City Council Regular Meeting - 11/08/04 Minutes - Page 11 3.h Adopt a Resolution Forgiving the Parks and Recreation Internal Loan City Manager Beets provided background information related to this internal loan created from incurred losses over a period of years in the City's Parks and Recreation Fund. Mr. Beets noted that the current deficit was $.2 Million; resulting from accumulated operating deficits primarily related to the operation of the OVAL. Mr. Beets further noted that, it was his understanding that as part of the 2005 Budget discussion, the City Council had directed staff, at their October 18, 2004 Council Study Session, to prepare a resolution that would forgive the internal loan made to the City's Parks and Recreation Fund. Councilmember Schroeder sought clarification regarding the recommended elimination of the Park Infrastructure Maintenance Fund; where additional deficits would be itemized; and whether an additional fund would need to be created. Finance Director Chris Miller noted that the internal loan was provided by the Park Infrastructure Maintenance Fund which initially served as an "endowment" fund, and forgiving the loan would negate the need for the Park Infrastructure Maintenance Fund. Mr. Miller further noted that recent changes in financial procedures provided more realistic tracking of expenditures and revenues related to operation and maintenance of the OVAL. Mr. Miller advised that the Park Infrastructure Maintenance Fund was a "break-even" account only and maintained no fund balances. Mayor Klausing noted that further discussion tonight and potential creation of a Task Force to look at funding operations and maintenance of the OVAL would probably be within the charge to the Task Force. John Kysylyczyn, 3083 N Victoria Street Mr. Kysylyczyn sought clarification as to the origination of the funds in the Park Infrastructure Maintenance Fund. Resolution 10257 Forgiving the Parks and Recreation Internal Loan