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Attachment A <br />Memo <br />To: <br />City Council <br />Pat Trudgeon, City Manager <br />From: <br />Chris Miller, Finance Director <br />Date: <br />August 25, 2014 <br />Re: <br />2003-2013Cash Reserve Level Summary <br />Introduction <br />th <br />Atthe July 14Council meeting, the Council asked for an expanded look at cash reserve levels <br />and how they’ve varied over time. The attached memo provides that supplemental information. <br />The following series of graphs depict the reserve levels for key operating funds <br />General Fund <br />70% <br /> $7,000,000 <br />58% <br />60% <br /> $6,000,000 <br />45% <br />46% <br />50% <br /> $5,000,000 <br />36% <br />40% <br /> $4,000,000 <br />30% <br />30% <br /> $3,000,000 <br />27% <br />20% <br /> $2,000,000 <br />10% <br /> $1,000,000 <br />0% <br /> $- <br />200320052007200920112013 <br />Cash Reserve $Cash Reserve % <br />The City’s Cash Reserve Policy was most recentlydiscussed on May 13, 2013and was last <br />adopted by resolution in 2011.The Policy calls for the General Fundto maintain a cash reserve <br />of 35-45% of the operating budget. <br />While the General Fund is currently at a reserve level of 45%, the 2014 Budget called for a <br />planned reduction of $346,000. If this comes to fruition, the reserve level would drop to 42%. <br />Furthermore, when compared to the 2014General Fund Budget, the reserve level would drop to <br />40%. This is because the cash reserve level (numerator) is unchanged, yet the operating budget <br />(denominator) is increasing. <br />In other words, ifthe 2014 financial activity goes as planned the reserve level will fall from the <br />current 45% to 40% by the end of the year. <br />Page 1of 4 <br />