PRECA 08-13-1980 - Laserfiche WebLink

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7) Golf course club house renovation for either public space or private rental (in the event the Park Department returns to City Ball) $10,000-$20,000 The 1.981-1982 capital improvement worksheets recently sub- mitted by the Park Board are also attached to this report. `these worksheets will give you some idea as to the projected uses of park and golf course capital improvement project funds, as requested, during the next six (6) years. Also attached is a report dated July 22, 1980 from the Finance Director which addresses the status of reserve balances projected at year end 1980 and at year end 1981. Given that there exists more projects than funds on hand, the Council must establish their priority objectives in order to arrive atan allocation of the monies. While it is not generally prudent to authorize projects prior to funds being on hand, I believe that we can reasonably assume that the liquor profits for 1981 will be at least $150,000, as projected, and that the $95,000 of revenue sharing will also be received. ray recommendation on the use of the 1980 General Fund surplus is that the City ought not draw that $350,000 down • more than $100,000. 1 make this statement for three reasons: First, a $250,000 General Fund surplus represents only slightly more than 10% of the General Fund budget. Second, I foresee future budgetary problems in funding the operating budget and believe that we must eventually begin to prudently draw down on this surplus in order to meet current operations. Third, since most of the projections that are being used for costs are simply guesstimates, it would appear to me that the General Fund surplus should represent our fall-back position. If, for example,, we project the liquor store to cost $700,000 and',in the final analysis it costs $725,000 we may wish to use the General fund surplus to provide the cushion. As mentioned earlier in the report, I believe that the Council ought to state their objectives in some priority. I present my objectives to you for evaluation. In priority they are: 1) That the City must recognize the significance of the municipal liquor operation to long term capital funding of projects within the City. The City must also recognize the deterioration of the present facility and the positive influence the new liquor store would have on the revital- ization of downtown. Accordingly, the new municipal liquor store should receive top priority for funding. -2-