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SUBJECT: OPEN SPACE & PARKS FUND OVERVIEW <br />DATE: SEPTEMBER 13, 2017 PAGE 8 OF 11 <br />The City's Reserve Policy for the Open Space & Parks Fund states, <br />The minimum fund balance of the Open Space and Parks Fund shall be maintained at <br />or above 15% of current operating expenditures. For purpose of this policy, operating <br />expenditures include only open space and parks operations and exclude all interfund <br />transfers and capital outlay. <br />The targeted fund balance of the Open Space and Parks Fund will include the minimum <br />fund balance plus an amount sufficient to cover the City's share (considering other likely <br />joint partners) of the total projected cost of acquiring the three highest priority candidate <br />open space properties. As the highest priority properties are purchased, this amount <br />will be adjusted. <br />The Open Space & Parks Fund balance is projected at $490,000 at the end of 2018. <br />This is 21% of operating expenditures as defined in the Reserve Policy, which exceeds <br />the minimum (15%). At this time, not enough information is available to calculate the <br />targeted fund balance. <br />Since staff has yet to completely redevelop the Tong -term financial model, it is also <br />important to pay attention to the Open Space & Parks Fund's operational surplus/deficit. <br />This analysis gives an indication of the fund's ability to sustain recurring expenditures <br />with recurring revenue over the longer term. The following graph summarizes the <br />surplus/deficit analysis. <br />3,500,000 <br />3,000,000 <br />2,540,000 <br />20)0,000 <br />1,500,000 <br />1,000)000 <br />500,000 <br />(500,040} <br />(1,000,000) <br />Open Space & Parks Fund <br />1. <br />2002 2003 2004 2005 2006 2007 2008 2009 21)10 2011 2012 2013 2014 2015 2016 20 <br />- Operating Revenue - Operating Expenditures =Operating Surplus/Deficit <br />11i <br />2018 <br />CITY COUNCIL COMMUNICATION <br />16 <br />