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License Center Fund <br />90% <br /> 1,000,000 <br />81% <br />80% <br /> 800,000 <br />70% <br />55% <br />60% <br /> 600,000 <br />50% <br />49% <br />40% <br />40% <br /> 400,000 <br />30% <br />18% <br /> 200,000 <br />20% <br />-2% <br />10% <br /> - <br />0% <br />200320052007200920112013 <br />-10% <br /> (200,000) <br />Cash Reserve $Cash Reserve % <br />The Cash Reserve Policy calls for the License Center Fund to maintain a cash reserve of 20% of <br />the operating budget. As indicated in the chart, the Fund has grown substantially over the past 7 <br />years due to increased agent feesgranted by the Stateand staff-initiated partnerships with new <br />auto dealers. This coincided with a concerted effort to forgo hiring of additional staff and extend <br />staffing vacancy periods even though revenues were much higher than expenditures. <br />This was a deliberate management strategy to position the City to construct a new License <br />Center facility without using taxpayer dollars, and avoid having to pay $60,000 annually in rent. <br />During this 7-year period, the License Center provided $578,000in funding for other City <br />functions. <br />The 2015 City Manager Recommended Budget calls for the spend-down of License Center <br />reserves in the amount of $140,000. <br />Cash reserve levels for theCity’s capital replacement funds are addressed in a separate memo <br />depicting the 20-Year CIP and Funding Strategies. <br />Page 4of 4 <br />