WORKSHOP ITEM - Robert Therres, Public Services Manager
Title
SPLIT OF PARK DEDICATION FEES
Background
In 2000 the City passed a bond referendum in the amount of $3.5 million for the purchase of open space property. As part of the process the City Council created the Natural Resource Conservation Board (NRCB) to make recommendations on which property to purchase and how to manage the open space property.
To provide an ongoing funding source for the NRCB’s management of the open space property the Park Dedication Fee Ordinance was changed to split the park dedication fees collected with development to have 35% of fees collected from residential development go to an Open Space fund. The remaining 65% of residential development and 100% of industrial and commercial development would go to the existing Park fund.
In 2014, the City had several large park projects on the horizon, including the purchase and development of the Lexington Athletic Complex. The City Council amended the Park Dedication Fee Ordinance to provide 20% of fees collected from residential development go to the Open Space fund, while 80% of residential fees and 100% of industrial and commercial fees go to the Park fund. This amendment also stipulated that this would only be for five years and the City Council would revisit this issue at that time.
It has now been five years. Attached are the current five year plans for the Open Space and Park funds showing the proposed and committed projects.
The Park Board has taken no position on what to do with the Park Dedication Fee split while the NRCB has passed a motion requesting the City Council to return to the 65/35 split that existed 5 years ago.
Another option is not setting a percentage split and having all the Park Dedication Fees go into one fund, giving the City Council the flexibility to prioritize and fund projects, either Open Space or Park without having to amend an Ordinance when a larger project is being considered.
Recommendation
Looking for direction on the Park Dedication Fee Ordinance split. Options include returning to the 65/35% split of residential development fees between Open Space and Park Fund. Continuing with the 80/20% split or not splitting the funds and have both the Park Board and NRCB use one fund.