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Finance Commission Minutes April 11, 2017 – Draft Minutes Page 4 of 6 reflect the removal of the $400,000 from the Park Dedication Fund since the Council is 136 recommending these funds be used for the Golf Course. 137 138 Commissioner Harold stated including the Golf Course in the PIP would allow the Council to see 139 the total expenditures that are expected. 140 141 Commissioner McRoberts suggested looking at the park dedication fees over the last 10-years 142 and determine if these funds are decreasing due to the City being fully developed. 143 144 Finance Director Miller stated the Council is not using the Commission recommendation for the 145 PIP at this time but they are still using the rules that have been in effect. 146 147 Commissioner Murray asked if the City was receiving 3% on their reserves. 148 149 Finance Director Miller stated the City is currently close to 3% but he has reduced this to 2% in 150 future projections. 151 152 Chair Schroeder stated the policy changes approved by the Council include prioritizing projects 153 in the City. This could be applied to the Golf Course project and there may be funds in other 154 areas that could be used to fund the project. The Commission could also recommend other 155 projects not be completed in order to fund the Golf Course project. She stated they should 156 review the updated graphs after the expenditures have been updated by staff. 157 158 159 Review 2016 Cash Reserve Balances 160 161 Finance Director Miller provided an overview of the key unrestricted operating funds for 2016. 162 He stated based on the cash reserve balances and the established policies the City has 163 approximately $4.1 million in excess reserves. 164 165 Chair Schroeder stated the City Council had decided that they would like to create the Cash 166 Reserve Fund that the Commission had previously discussed. This fund mean for 2016 the cash 167 over of $1.6 million would go into a separate fund rather than the cash reserves continuing to 168 grow. The Council would then know, based on the budget, what the overage or deficit is each 169 year. They can then take the money in this fund and put towards other needs in the City such as 170 the CIP. These funds would not be used toward the operation costs as the City does not want to 171 become dependent on these funds. Since the Council had not received a formal recommendation 172 from the Commission on the creation of this type of fund the Council is requesting the 173 Commission review it and make a recommendation. Based on previous discussions the would 174 recommend the Commission tell the Council that they believe the concept is a good idea and if 175 the Council wants to proceed they will need to vote on it and send it back to the Commission to 176 continue to work on it and create a policy for this fund. 177 178 Finance Director Miller stated that these funds may not be restricted by an outside entity but 179 there is a story behind each of the reserves and what the long-term plans are for these reserves. 180 Item 3: Attachment A