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The use of Park Dedication Fees is monitored by outside agencies. In addition to the City's <br />annual audit, the City is required to report development fee revenue and expenses annually <br />to the Department of Labor and Industry. Park Dedication Fees are reported on Line 22 of <br />this report. The corresponding line for Park Capital Expenditures is line 27. This reporting <br />requirement was the result of concerns expressed by developers that City's were collecting <br />development fees and using them to fund operating expenditures in violation of state law. <br />As of 10/31/2016 the Park Fund has a cash balance of $880,000. While this is a healthy <br />balance, it is not nearly large enough to fund the estimated $22,921,000 of park acquisition <br />costs that are identified in a 2011 analysis of park dedication fees. It is also important to <br />remember that these fees are one-time fees and as Orono becomes fully developed will no <br />longer be available. <br />The following paragraph is from the City's Comprehensive Plan page 4E-31: <br />The established park dedication fund will be used for purchase of additional <br />park land and/or for improvement of existing undeveloped park land. <br />Consistent with Minnesota Statutes, this fund will not be used for any park <br />maintenance or recreation operating expense. This fund will not be used for <br />typical physical improvements normally placed in the annual budget. The <br />intent is for the fund to accumulate to a level sufficient for a large scale activity <br />as may be determined in the future. <br />The Camp Plan is the guiding document for the City and it is with the goal of <br />accumulating funds for major expenditures that the Park Fund has been used. <br />