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Finance Commission Minutes February 14, 2017 – Draft Minutes Page 5 of 8 two. These funds would not be part of a legally restricted fund but repurposing these would not 181 be used for the intended purpose. There are funds that are currently earmarked and being tracked 182 in the individual funds. 183 184 Chair Schroeder asked for clarification on staff’s concern about the potential for disrupting a 185 means of holding staff accountable for programs and assets. 186 187 Finance Director Miller stated for every dollar the City holds, someone is accountable for 188 holding that dollar. The City has created funds for specific purposes including greater 189 transparency and greater accountability. Having a system that is automated that whenever there 190 is a surplus these funds are transferred to a larger cash reserve fund would take away the 191 accountability of individuals or departments to capture this surplus to meet an unmet need in the 192 future. There would not be a way for these individuals or departments to know what funds are 193 available to them in the future. A lot of the surplus funds are sitting in CIP funds. 194 195 Chair Schroeder stated if there is a need in a fund then these excess funds could be used without 196 having to raise taxes. 197 198 Commissioner Hodder stated the problem would arise if these funds were not returned or repaid 199 when they are needed to fund the original intended purpose. 200 201 Commissioner Zeller stated his idea on the concept had been that the amount needed in that 202 reserve would be quantified and in the budget as part of the budgeting process. It would be 203 considered revenue for the following year. This would strip out the CIP and any designated 204 fund. 205 206 Finance Director Miller clarified using the General Fund as an example. The Commission is 207 looking to designate the amount of excess reserves which signals to the Council these can be 208 used in funding the next year’s general fund budget. 209 210 Chair Schroeder stated the concept would be to move those funds that are in excess of the set 211 reserve amount for each fund into a separate cash reserve fund and use these funds for CIP items 212 or other needs in the City without raising taxes. These would not be reserve funds but rather 213 surplus funds beyond the reserve amounts. Having a separate account would make it easier to 214 see what is available and track how it is spent and show the accumulated annual surplus or 215 deficit of actual expenditures versus budgeted expenditures. 216 217 Chair Schroeder asked who would make the decision that funds should be set aside for a future 218 purchase or acquisition. 219 220 Finance Director Miller stated that any large purchase has been identified in some long-term 221 document such as the CIP and this is shared with the City Manager. This then becomes part of 222 the City Manager budget recommendations. If it is a strategic plan it is typically shared with the 223 City Council. Many of the City’s departments have strategic plans that have been presented to 224 the City Council. He stated there is a story behind every dollar of cash reserves and he cautioned 225