11-22-1999 Council Packet - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION COUNCfL MEETING NOV 2 2 1999 DATE: ITEM NO: Department Approval: Name Ron Moorse Title City Administrator Administrator Reviewed:Agenda Section: City Administrator ’s Report Item Description: Funding for the Acquisition of the Property at 3790 Shoreline Drive When the Council approved the purchase of the property at 3790 Shoreline Drive for at least partial parkland use, the funding was approved from the Building Capital Outlay Fund for two reasons. 1. 2. The City may want to use a portion of the property for other than park use. There was a concern that if the purchase was funded through the Park Fund, the property could be restricted to park use only. The amount of funding available in the Park Fund was insufficient to cover the full cost of the acquisition. Although the staff recommendation was to fund the acquisition from the Building Capital Outlay Fund, the Finance Director has advised that the resolution establishing the Building Capital Outlay Fund did not make a provision for using the fund as a source of funding for the purchase of parkland. The resolution (attached) is focused only on funding for e.xpenditures related to facilities. Based on this finding, staff has identified three options to address the funding of the acquisition of the property at 3790 Shoreline Drive. 1.Amend the resolution establishing the Building Capital Outlay Fund to broaden the allowable use of the fund to inelude parkland acquisition. 2. Use General Fund reserves to fund the acquisition. 3.Use a combination of General Fund reserves and Park Fund reserves to reflect that a portion of the property will remain as parkland and a portion may be used for non park use. Importance of Preserving the Building Capital Outlay Fund Although stafl'does not have a problem with amending the Building Capital Outlay Fund resolution to include funding for parkland acquisition, staff does recommend that a limitation be placed on the amount of parkland acquisition that can come from the Building Capital Outlay Fund. This fund is a very important asset to the City. It provides interim funding for capital projects; it provides funding for repairs needed to the City facilities; interest earnings from the fund are being used to pay a substantial portion of the debt service on the City facilities; and the fund is an important element in the City's credit rating. It is important this fund be used conser\atively so that it can be substantially preserved over the long term.