Staff Report - City Administrator Staff Report
Date of Meeting: 2/2/2026
For: PRC
From: Kyle Morell, City Administrator
Subject: Capital Improvement Funding
The Parks and Recreation Committee has requested information on available funding for park projects in
2026. I have compiled information from the 2026 budget discussion and the December Treasurer’s Report for
the Committee’s review.
In 2024, the City committed to updating the old tennis courts. To do this, $125,000 was transferred from the
City's excess fund balance to the Parks CIP. Another $150,000 was transferred from the General CIP fund to
the Parks CIP. The City budgeted $450,000 for the tennis court upgrade. $275,000 from fund transfers,
$100,000 in tax levy funds from the 2024 and 2025 tax levies. $24,000 in park dedication funds from Laurel
Ridge. The remaining funds came from the Park CIP fund balance. I will have an updated final cost for the
tennis court project at the meeting.
The attached January 2026 Treasurer’s Report shows the end-of-December 2025 cash balances for all City
funds. The current end-of-year cash balance for the 404 Parks CIP fund is $(1,275.03). This number may be
adjusted after the City’s annual audit is completed in May.
The 2026 CIP spreadsheet shows that $20,000 was included in the tax levy to help build a fund balance in the
Parks CIP. The sheet also shows that no Parks projects were included in 2026, due to the unknown fund
balance. Depending on the final 2025 fund balance, the Committee has between b $15,000 and $20,000 in
the Parks CIP fund by the end of 2026. The Committee must weigh the desire to deliver short-term projects
and the need to save funds for the larger-scale projects already planned in the CIP.
Attachments:
1) January 2026, Treasurer’s Report
2) 2026 404 CIP – Revenue and Expenses
1 CITY OF SCANDIA
2 Capital Improvement Plan
3 Park Improvement Fund 404
4
5 Inflation Assumptions
6 Revenue (Non-property tax) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
7 Interest Earnings 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
8 Expenses 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
9 CIP Inflation Factor 6.78% 3.30% 2.66% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%
10
11 2024 2025 2026 2027 2028 2029 2030 2031 2032
12 Actual Approved Projected
13 REVENUE
14 Property taxes 60,000 40,000 20,000 20,500 21,013 21,538 22,076 22,628 23,194
15 Intergovernmental - - - - - - - - -
16 Charges for services - - - - - - - - -
17 Special Assessments - - - - - - - - -
18 Investment Income 66 66 - - - - - -
19 Sale of capital assets - - - - - - - - -
20 Refunds and Reimbursements - - - - - - - - -
21 Park Dedication Fees 24,000 - - - - - - - -
22 Rental and lease income - - - - - - - - -
23 Transfer from General Fund 125,000 - - - - - - - -
24 Miscellaneous Revenue - - - - - - - - -
25 Total Revenue 209,066 40,066 20,000 20,500 21,013 21,538 22,076 22,628 23,194
26
27 EXPENSES
28 Total Current - - - - - - - - -
29 Payables internet - - - - - - - - -
30 Total Capital Projects 335,000 115,000 - 14,674 200,000 40,000 117,391 - -
31 Total Expenses 335,000 115,000 - 14,674 200,000 40,000 117,391 - -
32
33 Revenue Over / (Under) Expenses (125,934) (74,934) 20,000 5,826 (178,987) (18,462) (95,315) 22,628 23,194
34
35 OTHER FINANCING SOURCES / (USES)
36 Bond Proceeds - - - - - - - - -
37 Bond premium - - - - - - - - -
38 Transfers In 150,000 - - - - - - - -
39 Transfers Out - - - - - - - - -
40 Total Other Sources / (Uses)150,000 - - - - - - - -
41
42 Prior Period Adjustments - - - - - - - - -
43 Ending Fund Balance 87,993 (1,275) 18,725 24,551 (154,436) (172,898) (268,213) (245,585) (222,391)
44CASH FLOW ANALYSIS
1 CITY OF SCANDIA
2 Capital Improvement Plan
3 Park Improvement Fund 404
4
5 Inflation Assumptions
6 Revenue (Non-property tax) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
7 Interest Earnings 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
8 Expenses 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
9 CIP Inflation Factor 6.78% 3.30% 2.66% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%
10
45 2024 2025 2026 2027 2028 2029 2030 2031 2032
46 Priority Project #Capital Project Name Actual Approved Projected
47
48 PR-043 Community Center Park-concrete, grill, table, benches
49 PR-048 Lilleskogen Praire/Wetland Restoration Project
50 PR-054 Lilleskogen Park Picnic Shelter
51 PR-060 Park Planning
52 PR-055 Hay Lake Park - sign
53 PR-057 Playground Equipment - Community Center Park
54 PR-057 Replace rink boards
55 PR-061 Park signage at Orwell Park (Liten)
56 PR-058 Tennis Court/Pickle Ball - repaint 335,000 115,000
57 PR-063 Gateway Trail Improvements @ Annex -
58 PR-066 Expanded Pleasure Rink 14,674
59 PR-064 Playground Equipment - Erickson ballfield 100,000
60 PR-050 Ballfield Reconstruction - Erickson ballfield 40,000
61 PR-059 Hay Lake Park Shelter water & doors 117,391
62 Wayne Erickson Pavillion/Storage 100,000
63 PR-044 Nature park trails
64
65 CIP Place Holder
66 Total Capital Projects 335,000 115,000 - 14,674 200,000 40,000 117,391 - - PARK IMPROVEMENT CAPITAL OUTLAY