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Memo To: Parks & RecreationCommission Lonnie Brokke,Parks & Recreation Director From: Chris Miller, Finance Director Date: October28,2013 Re: Discussion on Parks & Recreation Capital Improvement & Park Improvement Plans Background Over the past few years, both the Parks & Recreation Commission and City Council have held discussions regarding the possible formation of a Parks & Recreation Board. If the Board is created, it will likely be charged with reviewing the long-term capital asset needs ofthe parks and recreation system. This memo identifies the primary interests associated with that review. As of December 31, 2012 the City’s parks and recreation system included nearly $30million in capital assets. A summary of these assets is shown inthe table below. Est. Life Asset TypeValue(Years) Land$ 10,892,421n/a Buildings12,085,99040 Equipment5,870,4805-10 Vehicles1,009,2525-10 Total$29,858,143 Generally speaking, the land portion of these system assets will not require any on-going maintenance or replacement. The remaining asset categories will need to be incorporated into a long-term capital asset replacement plan. It’s important to note that the value of these assets is stated in historical termsor the cost incurred at the time the assets were acquired.To replace these assets in today’s dollars will be significantly higher.Therefore to properly assess the long-term financial impacts of sustaining the parks and recreation system, we must not only look at the useful life of each asset, we must continually adjust for future price increases. This process is carried out with the annual update of the Parks & Recreation Capital Improvement Plan (CIP), and the Park Improvement Plan (PIP). Each of these Plans andfinancing options is addressed separately below. 1