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Regular City Council Meeting Monday, September 17, 2018 Page 2 The establishment of a Cash Reserve (Cash Carry-Forward)Fund Commissioner Bachhuber stated the goal of this items was to do a couple of things. The first is seeking to segregate capital and be clear within each fund what monies were set aside for capital use. The Commission also wants to make sure that all of the operating funds have the appropriate dollars to handle any cash flow throughout the year. By doing that, the City Council can understand how much money is available for spending, tax relief, etc. by putting all of the money, in excess of what is needed for capital and cash flow purposes, in a central place. This will make the money available more transparent to the Council and the deci- sion-making process. Commissioner Bachhuber reviewed the process of the Cash Reserve Fund with the Council. Mayor Roe asked what the timing of the decision would be making once the funds are swept into the carryforward fund, since that happens at the end of a cal- endar year and the Council does not know the final results until into the next cal- endar year. At that time, the Council starts on decision making for items for the next calendar year budget. Commissioner Bachhuber stated sweeping the money does not require the Coun- cil to take any action on it. It puts the funds in a place where it is clearly delineat- ed. It would be reasonable to say for the next cycle coming forward the Council would know there was money in the fund to use if needed. It may also provide some flexibility throughout the year. Chair Schroeder indicated the Council does not have to do anything with the funds,but the Council and staff would know the funds were there. Council Etten stated the Council is given a report showing where individual fund balances are in relationship to the minimum and maximum reserve levels required by policy. He wondered why the City should pull any excess money into a sepa- rate target pool versus the report staff gives them. He stated when he looks at the budget, seeing where it came from is a very helpful thing versus looking at a lump sum in a fund. Commissioner Bachhuber stated the Commission thought that by centralizing the money and putting the excess in one place would make it easier for both the Council and the public to understand when there is excess. Currently there is a co-mingling of both capital and cash flow funds in one place which makes it hard to determine what is there without doing the math. The other piece is to under- stand, the Commission views all of this as the City's money, it is not the different departments' money and by sweeping the funds that are not needed for cash flow makes it clear that the excess is the City's money. This does not have any impact