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Regular City Council Meeting Minutes Monday, April 23, 2007 Page 39 eration, with ongoing review and revision, and dependent on their use and function, for each type of asset. Councilmember Roe suggested that those considerations be incorpo- rated and broken down for all Capital Replacement funds. Operatine: Fund Reserve Policv Miller reviewed suggested language revisions and specific comments related to this fund. Mr. Miller noted the need to maintain a General Fund Reserve of 50% of the total annual operating budget to accom- modate drawdown time to receive the City's tax revenue from Ram- sey County; and noted current reserve levels at 30%. Councilmember Pust sought clarification of State Auditor recommen- dations. Mr. Miller advised that the State Auditor recommendation language was chosen very carefully, and related to unreserved fund balances, or undesignated monies for cities recommended at approximately 25- 30%. Mr. Miller noted that all City of Roseville reserves were desig- nated for some specific purpose; and cautioned that if the City Coun- cil chose to adhere to the recommendations of the State Auditor, even though not applicable to the City's designated funds, the City would run in the red for several months each year. Councilmember Pust requested clarification on the Operating Fund Reserve Policy and the Pavement Improvement Plan (PIP) and whether they were related, and the accuracy of that perception of some citizens. Mr. Miller advised that they were two completely separate funds, with the PIP designated for one very specific purpose only, and that that perception was definitely incorrect. Councilmember Pust noted Mr. Miller's comments on page 13, lines 3 land 405 respectively; and sought recommendations from Mr. Miller in the future and his specific recommendations. It was Council consensus to complete discussion of these policies prior to adjourn- ing tonight's meeting.