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Regular City Council Meeting Monday, September 24, 2018 Page 18 Mr. Miller stated it was originally based on the cash flow needs of the fund at a point in time. That number has been in there a long time. Councilmember Willmus asked if the Finance Commission looked at that. Mr. Miller stated the Commission did look at the last two years' cash reports. Councilmember Etten stated if the Finance Commission is looking at the histori- cal piece,he wondered how the 10% figured into the discussion. Mr. Miller stated staff presented the cash flow of the fund and the Finance Com- mission came up with 10%to 30%. It is more conservative to go at a higher floor and ceiling, so he thought from the strength of their financial position more re- serves increase that. He thought there was some concern on the part of the Com- mission that having reserves in all of the different funds may collectively trigger an excess reserve rather than combining it all into one. The Finance Commission was concerned in the collective of all the funds in the totality of getting too high. Councilmember McGehee stated she did not think it was a problem to have a little extra reserve and she thought the Communications Fund will take most of the money if there are no more franchise fees, which are going down and is the fund the City uses for extra money now. She did not have a problem with having a 20% floor right now and it can always be changed. It can be revisited to see if it needs adjustment. She would feel more comfortable with 20%to 35%. Councilmember Laliberte stated she would be more comfortable going forward with the recommended amount by the Finance Commission. She thought the Commission had the same type of discussion the Council is having, and she did not know if the Council needed to second guess them at this point. The Council can see how the change on the high side effects things as the Council looks for- ward. Councilmember Etten thought the concern of the Finance Commission was the City holding too much money in one account. The 20% isn't going to affect that. The floor won't necessarily create that. If people are more comfortable with 20%-30% because that meets the maximum threshold the Commission talked about he was okay with that,but he thought the floor was a protection. Councilmember Willmus stated he liked that a little better than where the discus- sion was going before. Mayor Roe referenced the top of the second page of Appendix A and need for the EDA to have consistent language with the other two changes. He thought the first sentence on page two should read"...30% of the annual operating budget...". He thought the City should make it clear it is talking about operating funds.