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Regular City Council Meeting Monday, September 24, 2018 Page 17 Nays: None. Etten moved, McGehee seconded, adoption of Resolution No. 11536 (Attachment C) entitled, "Resolution Adopting the Preliminary 2019 Annual Budget for the City of Roseville." Roll Call Ayes: Willmus, Laliberte, Etten, McGehee and Roe. Nays: None. Councilmember Laliberte thanked residents who sent e-mails, filled out the sur- vey cards, and gave the City their input. She thought it was an important step in their process and the feedback was good. g. Consider Adopting a Revised Operating Fund Reserve Policy Finance Director Chris Miller briefly highlighted this item as detailed in the RCA and related attachments dated September 24, 2018. Councilmember Etten stated in regard to the Communications Fund, bringing it up from 25% to 30% or even up to 35%is meant to almost shield it from the poli- cy the Council and staff were talking about a week ago as far as taking something above the recommended target and pulling it into the General Fund. Mr. Miller stated that was correct. When staff looked at the actual cash flow needs the last couple of years, 25% was real close to going negative in the fund throughout the year so moving the percentage to 35% gives a little more cushion so the City doesn't run into the red throughout the fiscal year then as the Council contemplates one of the Finance Commissions other recommendations of sweep- ing an amount above and beyond the 30%. Councilmember Etten wondered that if staff is concerned about going into the negative with 10%to 25%, should the floor be raised as well. Mayor Roe thought the City should be more concerned about the 10% floor. Councilmember Etten stated he would be more comfortable doing 20%, and pos- sibly even moving the ceiling upto 35%, but certainly 20% as the bottom and not 10%. Councilmember Willmus asked from where the percentages were derived, where did the floor of 10% come from.