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Regular City Council Meeting Monday, September 17, 2018 Page 4 their own separate funds so when the Council is looking at the fund number it is not lumped in all together. Mayor Roe thought that would be appreciated by the Council. He noted that whatever needs to be done to make that work, would be the Council direction. Mayor Roe stated in regard to the Communications fund, because that depends on cable franchise fees and the industry is changing, he appreciated that the Commis- sion actually looked at increasing the target to make sure the Council is aware of how that is going to look. He thought that was something everyone will need to keep in their minds moving forward because not only is there potential that at the end of the current ten-year franchise the City has with the cable provider in the community, assuming the cable providers get to the end of that period with every- thing the same, the City is not sure what is going to happen after that in terms of the industry. He thought the City is already seeing trends where the amount of revenue the City is getting under the current franchise is going down quarter by quarter based on changes in people's behavior. That really had not been as much of a trend until the most recent year. Mayor Roe noted this was something to keep in mind moving forward as well as looking at the need to fund the City's communications activities and is the franchise revenue going to do that or are al- ternative revenue sources, whether levy sources or some sort of utility franchise fee, something the Commission and Council will have to look at. Chair Schroeder thought the Finance Commission should review the fund targets as part of their ongoing duties. She did not think this was something that could be done once and forgotten. Commissioner Hodder stated it was helpful to see the expenditure rates over time. The Commission was aware that the funds were operating on a yearly basis, so the Commission did not set the target too low or too high. Councilmember McGehee stated this year she understood the City is getting very close to the 35% operating threshold and she wondered if that still felt comforta- ble for the General Fund. Commissioner Bachhuber stated the Commission felt for the General Fund, that 35% is okay as a low target but is close to an uncomfortable range if the fund would fall below that. He understood that relying on the reserve to cover funding is an issue and the Commission would concur that the City needs to wean them- selves from relying on the reserve over time. Mayor Roe confirmed the council's request that the Finance Commission and City Staff move forward with this plan and bring it back to the City Council for finalization.