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Finance Commission Minutes October 11, 2016 – Draft Minutes Page 2 of 8 Commissioner Zeller moved, Seconded by Commissioner Hodder, to approve the September 13, 46 2016 meeting minutes as amended. The motion carried unanimously. 47 48 49 Continue Discussion on Cash Reserves 50 51 Commissioner Zeller reviewed the charts prepared for the General Fund Reserve, Parks and 52 Recreation Reserve, Community Development Reserve, Information Technology Fund Reserve, 53 License Center Reserve, Telecommunications Fund Reserve, and the Annual Operating 54 Expenses and Reserve Balances versus Reserve Goals. These graphs were updated to include 55 the 2016-2017 projected budget. 56 57 Chair Schroeder asked if the City Council included the Police Reserve Fund when they reviewed 58 the budget. 59 60 Finance Director Miller stated the budget does not include the Police Forfeiture Fund. 61 62 Chair Schroder pointed out that the 2016 Budget is showing a short fall of $376,000 and this 63 would reduce the General Fund Reserves. 64 65 Commissioner Bachhuber stated based on the General Fund Reserve graph the City would not be 66 able to use reserves in 2017 because this would bring the balance below the target goal. 67 68 Commissioner Harold asked if the Commission should consider making a recommendation to the 69 City Council regarding the General Fund Reserve for this budget cycle. When looking at the 70 charts the City would be below the target goal in 2017 and the City should consider reducing the 71 amount of reserves they are using in order to stay within the goal range. 72 73 Chair Schroeder stated the not to exceed tax levy has been set so the City would have to look at 74 reducing expenditures in order to reduce the use of reserves. 75 76 Commissioner Zeller stated the City Council will need to decide what steps need to be taken to 77 make sure the reserves remain in the target range. 78 79 Commissioner Bachhuber stated the City will need to think outside of the box for different 80 elements of the budget to be able to manage these over time. The City would not want to be 81 below the goal range when harder economic times occur. 82 83 Commissioner Harold asked what had caused the large increase in reserves in 2010. 84 85 Finance Director Miller stated there had been decertification of a TIF District and the capture of 86 one-time funds for this. 87 88 Item 3: Attachment A