Laserfiche WebLink
LCity�f FINANCE COMMITTEE <br />Louisville COMMUNICATION <br />COLORADO -SINCE 1878 ITEM 1 <br />SUBJECT: PARKS FUND — LONG-TERM FORECAST STRUCTURAL ISSUE <br />DISCUSSION <br />DATE: JUNE 11, 2025 <br />PRESENTED BY: RYDER BAILEY, CPA, FINANCE DIRECTOR <br />ADAM BLACKMORE, PROS DIRECTOR <br />ABBY MCNEAL, PARKS SUPERINTENDENT <br />SUMMARY: <br />Prior to 2024, Open Space and Parks Divisions operated within a single and shared fund. <br />It was funded primarily by the dedicated sales tax (3/8th of one cent) and annual General <br />Fund subsidy Transfers. <br />With the November 2023 passage of Measure C and City Ordinance No 1856, Series <br />2023, it clearly defines the split between Open Space and Parks of the original 3/8ths of <br />a cent to be split evenly, and with the incremental increase of 1/8th of a cent exclusively <br />for Open Space uses and purposes. <br />During the 2025-2026 Biennial Budget Development process, it was identified that the <br />newly created Parks Fund demonstrated ongoing structural issues. The City Council <br />immediately took action to direct future Park capital projects into and funded by the City's <br />Capital Fund. <br />BACKGROUND: <br />In 2024, Measure C defined the tax split and restructured the existing Open Space and <br />Parks Shared Fund (Fund 201) into two distinct funds: one dedicated to Open Space <br />(Fund 210) and another exclusively for Parks (Fund 211). <br />During the 2025-2026 Biennial Budget development process and driven by long-term <br />modeling and projections demonstrating the imbalance, that beginning in 2025 all <br />approved Park capital expenditures were shifted to the Capital Fund. <br />In reviewing the latest Long -Term Financial Model for the Parks Fund, the fund is <br />expected to remain solvent through 2030, but not in adherence to the City Financial and <br />Reserve Policy. <br />Notably, during years 2026 — 2030, the Parks Fund is structurally imbalanced, meaning <br />recurring expenses exceed recurring revenues, and therefore is reliant upon Fund <br />Balance, or one-time funding sources to pay for recurring expenses. Our City's policy is <br />to adopt a Structurally Balanced budget. <br />FINANCE COMMITTEE COMMUNICATION <br />