Memo: City Of Wildomar Outlines Its Case Against Using Reserves To Fund Parks

Wildomar Assistant City Manager Gary Nordquist says there is not enough money in the city’s reserves to pay for parks’ maintenance.

In a May 19 memo addressed “To Those of Interest” (see attached PDF), Nordquist said, “using a portion of a reserve on a ‘recurring’ basis for park maintenance expenses is not a prudent fiscal strategy as the reserves will run out and the park maintenance expenses will continue, year after year.”

Nordquist has stated that maintenance of Wildomar's three existing parks costs the city in excess of $200,000 annually.

, the June 7 ballot initiative that asks residents to approve establishment of a Community Facilities District and incur a $28 annual tax to fund the parks.

has come out in favor of the Measure; the organization stopthemoneygrab.com has come out against.

The timing of Nordquist’s memo coincides with heated debate on both sides of the issue. The city has continued to maintain that if the Measure doesn’t pass, the parks will shut down. But some opponents argue the city has other options.

“The basis for this memo stems from the current discussions circulating throughout the City which inaccurately stated that as of Fiscal Year End June 30, 2010 the City has a $2.8 million reserve that can be used for the annual Park Maintenance costs,” Nordquist wrote in the memo. “This claim was further supported by the statement that the City has a $1.3 (million) General Fund balance and has $1.5 (million) invested in the Local Agency Investment Fund which is administered by the State agency and the sum of these two amounts equals (a) $2.8 (million) reserve …

“In the simplest terms, the claims made in the statements are counting the same monies twice,” Nordquist continued.

In the memo, Nordquist attached June 30, 2010 year-end financial statements and gave some explanations (see attached).

“The Reserve for the General Fund using yearend actual audited expenses would have been $890,128 of the $1,044,414 actual Fund Balance,” Nordquist explained. “The remaining $154,286 would be termed ‘undesignated’ fund balance and ideally would be set aside to address the debt of $1,394,377 which the City must repay the County for transition year (FY2008-09) costs.”

The city incorporated in July 2008.

that is open to the public. The city is asking concerned Wildomar residents to bring forth ideas on how to build next year’s budget.

The parks issue is among the many items expected to be discussed.