SUBJECT:
Title
Future Parks Funding Options and Direction
Department
DEPARTMENT: Parks & Recreation
Presenter
PRESENTER: Luke Bolinger, Director of Parks & Recreation
end
Time
TIME ESTIMATE: 60 minutes
Fiscal
FISCAL SUMMARY:
N/A
Policy
POLICY ISSUES:
Tonight’s discussion will focus on receiving Council direction on funding Erie’s unfinished parks and present that direction as part of the 2026 Budget process.
Recommendation
STAFF RECOMMENDATION:
Staff request Council’s direction on how to proceed with presenting park funding options.
Body
BACKGROUND OF SUBJECT MATTER:
At the March 13, 2025 Study Session, staff requested direction on which Capital Improvement Plan (CIP) projects to incorporate into the 2026 Budget. Although Council engaged in a robust conversation, Parks & Recreation staff did not receive clear direction on two parks that continue to surface in Council discussions: the proposed neighborhood parks in the Compass and Morgan Hill subdivisions.
In 2015, the developer of the Compass neighborhood dedicated 10 acres of park space without contributing funding for its development. In 2020, staff negotiated a fee-in-lieu agreement with the current Compass developer that provided seed funding for park construction. However, the funds remain insufficient to complete the project. That same year, the Morgan Hill developer dedicated 14.3 acres for a neighborhood park but was only obligated to cover the costs for grading, grass, and irrigation for 4.19 acres. Staff later negotiated a fee-in-lieu agreement to replace that scope of work and help support the park’s design and construction.
As part of the 2022 Parks & Recreation Work Plan, staff organized community conversations and engagement events to shape conceptual designs for the park sites. In March 2023, staff presented both park concepts to Council. Council approved the concepts and directed staff to prepare design and engineering documents. Given the Compass neighborhood’s maturity, Council designated it as the higher construction priority. Council also directed staff to focus on completing the full Schofield Farm Open Space project, as outlined in the 2018 Schofield Farm & Open Space Master Plan. As a result, the 2024 Budget included only the design and engineering phase for the Compass park, advancing plans to the design development level.
The current Capital Improvement Plan schedules completion of construction documents for the Compass park in 2027, with construction targeted for 2028. For the Morgan Hill site, design development begins in 2028, followed by construction in 2029. The Town plans to fund both projects through the Parks Improvement Impact Fund (PIIF), contingent on available resources.
The graphic below illustrates projected revenues and expenditures within the PIIF. This projection excludes anticipated fee-in-lieu contributions from future developments.
Timeline Options
Parks & Recreation staff request direction as the 2026 Budget process begins. If Council desires to revise project timelines, staff will need clear guidance that reflects funding realities, staff capacity, and operational commitments.
Staff pose the following questions:
• Should staff maintain the current schedule for both parks as outlined in the Capital Improvement Plan?
• Should staff begin phased design efforts for both parks in 2026, using available funds to build portions of each?
• Should staff present options to accelerate construction using alternative funding sources, such as the General Fund?
• Should staff prioritize one park for full funding and construction and defer the other to a later cycle?
Phasing park construction allows the Town to deliver community benefits sooner while distributing costs over multiple years. This approach can ease budget pressure, align with available funding, and give staff time to manage individual components and assess community use to guide future phases.
However, phasing can raise overall costs due to inflation, repeated mobilization, and potential redesigns. It may also delay full functionality, frustrating residents if key amenities remain incomplete. If Council shifts funding priorities in future years, the Town could leave a park only partially built or indefinitely postponed, falling short of community expectations and the original vision.
priorities
TOWN COUNCIL PRIORITY(S) ADDRESSED:
☒ Attractive Community Amenities
☒ Engaged and Diverse Community
☐ Prosperous Economy
☐ Well-Maintained Transportation Infrastructure
☒ Small Town Feel
☐ Safe and Healthy Community
☒ Effective Governance
☐ Environmentally Sustainable
☒ Fiscally Responsible
attachments
ATTACHMENT(S):
1. Presentation