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Attachment B
<br />Less12/31/201712/31/2017
<br />12/31/2017LessReservedAvailable12/31/2017Amount
<br />CashFromForCashReserveAbove Low
<br />Operating FundsReservesDonationsCapitalReservesLevelTarget %
<br />General (unrestricted portion)$ 5,803,701$ (44,100)$ -$ 5,759,60138%427,405$
<br />Parks & Recreation1,945,172(306,726)-1,638,44634%443,190
<br />Communications431,608-(298,215)133,39325%80,036
<br />Information Technology1,125,426-(456,791)668,63525%401,181
<br />License Center976,492-(515,836)460,65625%276,394
<br />$ 8,660,731$ 1,628,206
<br />TargetTarget
<br />Operating FundsLowHigh
<br />General (unrestricted)35%45%
<br />Parks & Recreation25%25%
<br />Communications10%25%
<br />Information Technology10%25%
<br />License Center10%25%
<br />In the first table, the far-right column identifies the amount available above the minimumtarget level.
<br />Collectively this amounts toapproximately $1,682,000. In contrast, the amount available above the high
<br />targeted range is approximately $443,000.
<br />As shown in the table, the amount of ‘available’ cash reserves has been adjusted for monies received
<br />from donations which are earmarked for a specific purpose, as well as monies tentatively set aside for
<br />the CIP.It should be noted that the 2018 Adopted Budget calls for the spend-down of cash reserves in
<br />the amount of $681,000, $80,000, and $103,000 for the General, Communication, and License Center
<br />funds respectively. This will significantly reduce the amount available for 2019 and beyond, although
<br />any number of varying events could change this result.
<br />Staff Recommendation
<br />As noted earlier, the City maintains an Operating Fund Cash Reserve Policy to govern the appropriate
<br />level of cash reserves for its day-to-day activities. A copy of this Policy is included in Attachment D. In
<br />establishing this Policy, a number of discussions regarding the important role(s) that cash reserves play
<br />were held including the following:
<br />Provide cash flow to support operations in between revenue collection periods
<br />Provide interest earnings to fund current operations in lieu of higher property taxes or fees
<br />Address unforeseen circumstances including loss of revenue sources or unexpected expenditures
<br />(i.e. Business Risk)
<br />Provide for future capital expenditures
<br />Strengthen overall financial condition and bond (credit) rating
<br />As the Commissionreflects on the amount of cash reserves the City should maintain, and whether to
<br />create a separate Cash Reserve Fund, it is suggested that these considerations be taken into account.
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