2019_0318_CCPacket - Laserfiche WebLink

Home

Attachment B Memo To:Roseville Finance Commission From:Chris Miller, Finance Director Date:July 10, 2018 Re: Item #7:Continue Discussion on Establishing a Cash Reserve Fund Background At the April 10, 2018 Finance Commission meeting, the Commission assigned Members’ John Bachhuber and Ed Hodder to work with Staff to continue the discussion on establishing a Cash Reserve or Cash Carryforward Fund that would be comprised of excess monies from the City’s unrestricted operating funds. This was preceded by several previous discussion by the Finance Commission as well as a directive from the City Council at the joint City Council-Finance Commission meeting on September 18, 2017. As expressed by the Council, the general intent behind the creation of a separate fund was to simplify the determination of whether excess monies were available for future use. For purposes of this discussion, ‘excess monies’ were meant to include cash amounts that exceededthe cash reserve targeted amount for each fund. The Finance Commission is tentatively scheduled to make a recommendation to the City Council regarding the establishment of a Cash Reserve Fund at the Joint City Council-Finance Commission meeting on September 17, 2018. The Subcommittee of Finance Commission Members Bachhuber and Hodder, along with Finance thth Director Chris Miller met on June 13and June 20 to review and discuss the following related topics: The general concepts of creating a Cash Reserve Fund The City’s operationalcash flow needs and associated Cash Reserve Target Levels. The impact cash reserves have on the City’s financial strength and sustainability The amount of ‘excess’ cash reserves available as of 12/31/17, and the projectedamounts needed for 2018 and beyond. Each of these topics are discussed in greater detail below.