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Use of Cash Reserves <br />The 2015 General Fund Budget relies on the use of $375,500 in cash reserves to fund day-to-day <br />operations. The following chart depicts the General Fund's cash reserve level over the past S years. <br />50% <br />45% <br />General Fund Cash Reserve Level <br />40% �- <br />35% . <br />30% -� � , —, <br />2011 2012 2013 2014 2015 <br />Projected <br />� Actual Target: High Target: Low <br />As shown in the chart, the General Fund reserve level (as a percentage of the budget) is scheduled to <br />drop in 2015 for the third consecutive year. Continued reliance on cash reserves in 2016 could drive <br />the Fund below target levels adopted by the City Council and Finance Commission. It also sends a <br />decidedly different message to the bond rating agencies than the one we gave in 2012 when we secured <br />our triple-A rating. The Council is advised to discontinue the practice of deficit spending in the <br />General Fund for 2016. <br />The current budget also relies on the use of reserves in the Communications and License Center funds, <br />but those are expected to stabilize as associated revenue sources continue to grow. <br />�� City Staff will be available to provide additional information or answer any Council inquiries. <br />POLICY OBJECTIVE <br />Not applicable. <br />FINANCIAL IMPACTS <br />Not applicable. <br />STAFF RECOMMENDATION <br />� Not applicable. <br />REQUESTED COUNCIL ACTION <br />�c�_, No formal Council action is necessary, however Staff is seeking direction on the Council's 2016 <br />� � Budget goals and priorities. <br />Page 3 of 4 <br />