City Council Agenda and Packet 2017 10 10 SP

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SUBJECT: DATE: OPEN SPACE & PARKS FUNDING POLICY OCTOBER 10, 2017 PAGE 3 OF 7 10.001.000 8,000,000 5,400,000 40100,000 2,4(00,460 (2,000,000) (4,000,406] fw Open Space & Parks Fund JT fi 2005 2006 2007 2008 2004 2010 2011 2012 2013 2014 2015 2016 2017 2418 241 201 20 •! Reaenue — Expenditures Fund Bahance—Minirnurn Previous Long -Term Financial Plans had foreseen this imbalance and assumed transfers from the General Fund would eventually subsidize the total fund deficits. However, due to the year-to-year fluctuations in the level of capital within the Open Space & Parks Fund, the ongoing transfers from the General Fund would also fluctuate and be difficult to project. This limits the General Fund's financial flexibility and inhibits the use of General Fund resources for recurring expenditures to support general government services. For example, capital such as open space acquisition would compete directly with general government services, such as police protection, street maintenance, and administrative services. At the September 26, 2017 presentation of the Recommended 2018 Budget, staff proposed an alternative method of supporting the Open Space & Parks Fund that included transfers from both the General Fund and the Capital Projects Fund. Staff proposes this alternative method be effective for the 2019 fiscal year and is defined, as follows: The General Fund will make an annual transfer to the Open Space & Parks Fund calculated as total Open Space & Parks Fund operational expenditures, less all sales and use tax revenue, and less all other non -capital, recurring revenue (exclusive of interest earning). This will result in an ongoing transfer that will not fluctuate significantly and will be relatively easy to project. It will also CITY COUNCIL COMMUNICATION