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2021 CIP – Page 1 <br />MEMORANDUM <br />To: Mayor Walsh and Orono City Council <br />From: Ron Olson, Finance Director <br />Subject: Parks and Improvement Outlay Fund <br />Date: September 28, 2020 <br /> <br />Attachments: Budget Information <br /> <br /> <br />As part of the budget process, staff has continued to work on the 2021 CIP. The Park CIP and the <br />Equipment CIP information and fund balance information is provided for discussion. <br /> <br />Issues for discussion: <br /> <br />• Funding of the Equipment CIP. Funding for the Equipment CIP is through the <br />Improvement Equipment Outlay fund. The Improvement / Equipment Overlay <br />Fund was created to buy non-police General Fund assets such as equipment and <br />building improvements. The source of funding for this fund has been an annual <br />transfer from the general fund. For 2021 the budgeted transfer will be $225,000. <br />The fund is now being used to purchase non-infrastructure capital items for the <br />enterprise funds also. Enterprise purchases are funded by a transfer from the <br />enterprise fund in the year that the purchases are made. The projected balance of <br />the fund on 12/31/2020 is $205,103. Looking into the future, this fund is in good <br />financial health. <br /> <br />• Funding for Long Lake Fire. The improvement Equipment Outlay Fund also fund <br />the purchase of fire equipment. The balance set aside for fire capital appears to be <br />adequate at this time. Future decisions on the fire department will impact these <br />funds. <br /> <br />• Funding of the Park CIP. Primary Funding for the Park CIP is through the Park <br />Fund. This fund’s primary source of revenue has been Park Dedication fees that <br />are collected as part of subdivisions and development. Beginning in 2021 a tax <br />levy has been reinstated to provide additional funding for parks. The items <br />currently proposed for the Park CIP will exceed the balance of the fund. <br /> <br />