HomeMy WebLinkAboutApproval of Sources of Funding for Burke Park
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Kukulski, City Manager
Anna Rosenberry, Finance Director
SUBJECT: Approve Sources of Funding for Burke Park Lots Purchase from Park
Cash-In-Lieu Fund
MEETING DATE: May 19, 2008
RECOMMENDATION: Approve expenditure of $520,000 from Park Cash-In-Lieu Fund
for purchase price and GVLT assistance in the acquisition of the Burke Park Lots.
BACKGROUND: At the meeting on March 24, 2008, the City Commission considered the
matter of purchasing the Burke Park Lots. After public comment and deliberation, the
Commission approved the City Manager to negotiate and execute the Settlement Agreement and
Buy-Sell agreement. Those documents have been signed with the City’s purchase price at
$500,000 and a partial reimbursement of expenses to GVLT in the amount of $20,000. A
closing date of June 2nd has been established for the purchase.
At the time, the Recreation & Parks Advisory Board recommended that $270,000 in
General Fund dollars and $250,000 in Park Cash-In-Lieu money be used as the funding sources
for the project. The Commission directed city staff to apply to the Gallatin County Open Space
Bond program to partially fund the purchase costs. Identification of a specific source for funding
was postponed until after the Open Space Bond request had been considered.
The City’s Open Space Bond application was recently denied.
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The General Fund: Given the need to design and purchase land (either at the L&J site
or another location) for a Police and Court facility, we do not recommend that the General Fund
cash reserve be utilized. The Police and Court facility continues to be identified as one of the
Commission’s highest priorities. One current estimate puts land costs at roughly $1.8 Million.
Both the site location and building schematic design need to be completed before a question
could be put to the public for bond approval. For that reason, we recommend that a total of
$700,000 of the General Fund reserve be dedicated to the Police & Court Facility project in the
fiscal year 2009 (FY09) budget. This would allow us to make an earnest payment
(approximately 20-25%) to secure land, with final purchase price paid after a successful bond
election. An additional $270,000 from the General Fund for Burke Park would put the reserve at
13%, a mere 1% above the Charter defined minimum. This would leave very few additional
dollars to manage a Police/Court facility land purchase or design process beyond our current
estimates or to manage other unforeseen issues in the General Fund without violating the 12%
minimum. Below are the details of our current reserve estimate for FY09.
General Fund Estimated Unreserved Fund Balance
FY07 Ending Unreserved Fund Balance 4,367,538
Plus: FY08 Budgeted Revenues 19,589,319
Less: FY08 Budgeted Appropriations (19,581,229)
Less: FY09 City Hall Remodel - LEED Costs (395,714) FY08
Less: FY09 Story Mansion (116,500) FY09
Less: PD Design (250,000.00) FY09
Less: PD Land Earnest Money (450,000.00) FY09
Projected Unreserved Fund Balance 3,163,414
As a % of FY09 Estimated Revenues 14.3%
Park Cash-In-Lieu Fund: The Park Cash-In-Lieu Fund has a balance of $521,382,
which can be utilized for this important improvement to Burke Park. Burke Park is used by
residents throughout the city and the region. This money has been accumulating for years for the
primary purpose of purchasing parkland. Below are the cash receipt and expenditure details
related to the fund since fiscal year 2004 (FY04). The fund earns interest on its cash balance
every month, earning a total of $36,520 since FY04.
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Cash-in-Lieu Parkland - Fund 850
Fiscal Year Date Cash Receipt Description Amount
FY08 9/26/2007Schroeder Homes 152,611$
FY07 6/8/2007 D&D Palmer, LLC 29,800$
5/14/2007 Baxter Springs, LLC 89,089$
4/5/2007 Mill District Partners 25,766$
1/9/2007Big River Development, Inc.102,600$
11/14/2006DMC, Inc.55,398$
FY06 4/25/2006MT Avenue Partners: Mill Pk (Northside Final PUD)11,348$
9/28/2005 Sandan, LLC 36,515$
7/20/2005 Stewart Title: Baxter Square Sub 23,409$
FY05 5/17/2005 Village Investment Group 119,744$
5/5/2005Vera M Wiegand Trust: Pineview Condos 10,500$
2/14/2005Morgan Homes: Bridger Common Conods 38,524$
FY04 - - None - -
TOTAL 695,304$
Fiscal Year Expenditure Description Amount
FY08 - - None - -
FY07 - - None - -
FY06 Library Lands Project 272,000$
FY05 - - None - -
FY04 North Meadow Park 8,000$
TOTAL 280,000$
FISCAL EFFECTS: This recommendation would spend $520,000 of the Park Cash-In-
Lieu Fund.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
Chris Kukulski, City Manager Anna Rosenberry, Finance Director
Report compiled on: May 14, 2008
Attachments: None
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