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Finance Commission Minutes April 11, 2017 – Draft Minutes Page 5 of 6 Having no restrictions is not the same as having no obligations. These funds have been 181 earmarked for projects or initiatives in the City. Committing these excess funds based only on 182 policy may create unintended consequences. The uncertainty of not having these funds available 183 for an intended purpose is a culture change for the City and this should be considered when 184 making any changes. The City’s current leadership team does not think in 12-24 month 185 increments but rather in 5-year increments because they have developed strategic plans. One of 186 the first things to consider would be what are the commitments of these funds. 187 188 Commissioner Hodder asked if the excess funds collected for items such as water and sewer 189 maintenance were reflected in this surplus. 190 191 Finance Director Miller stated at this time the Council has only discussed creating this cash carry 192 over fund with the General Fund, Parks and Recreation Fund, Communication Fund, Information 193 Technology Fund, and License Center Fund. 194 195 Chair Schroeder clarified that if a Department is doing well and they have a surplus does not 196 mean that the budget will be cut the following year. She clarified that the Council is asking the 197 Commission if the creation of this fund would be a viable option. 198 199 Finance Director Miller stated the recommended City Manager budget for 2018 will include a 200 recommendation for the use of the $1.6 million overage from 2016. The Council would like to 201 have a more transparent discussion on the use of these excess cash reserve funds. 202 203 Commissioner Zeller stated the biggest change would be budgeting towards a target reserve 204 level. He stated he does support the concept of looking at the surplus/deficit cash reserves and 205 budgeting it towards a goal amount of reserves up front instead of waiting until after the year 206 ends. 207 208 Commissioner Harold stated he would agree with the preliminary concept of creating this fund. 209 210 Chair Schroeder moved, Seconded by Commissioner Harold, to provide the City Council with 211 the Commission’s preliminary approval of the concept of the creation of the Cash Carry Over 212 Fund and request additional direction from the City Council on the development of a policy. 213 The motion carried unanimously. 214 215 Finance Director Miller suggested Chair Schroeder email the Commission’s decision to the City 216 Council. 217 218 219 Revisit Finance Commission Recommended CIP Funding Strategies from 2016 220 221 It was the consensus of the Commission to table the Finance Commission Recommended CIP 222 Funding Strategies until the figures have been updated. 223 224 225 Item 3: Attachment A