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Attachment B <br />Continue Discussion on Establishing a Cash Reserve Fund <br />Commissioner Harold stated he, and Commissioner Hodder met twice in June with Finance <br />Director Miller to discuss the cash reserve fund. Those conversations are described in the staff <br />report included in the packet. Bond ratings were discussed and the impact of bond reserves on <br />those ratings. He specifically pointed out the low points that some of the funds dip to throughout <br />the year. For example, the General Fund dips to around 10% in May or June. The Recreation <br />fund dips down to 5% in June, and the Communications fund dips under 10% in June. As part of <br />this discussion, it is important to be conscious of these dips when considering the sweeping <br />policy. <br />The Commission discussed how to take into account the swings in cash flow from the various <br />funds, when a sweep occurs. They considered the question of what happens when a sweep <br />happens when the high reserve level has been exceeded, but then later the fund needs some <br />monies back. <br />Commissioner McRoberts stated that the sweep will remove piggy-banking. <br />Commissioner Bachhuber stated sweeping will alsocreate transparency about what money is <br />available to spend. <br />Commissioner Harold stated it is difficult to understand the swings in the various funds, whether <br />itis arevenue or expenses issue. <br />Finance Director Miller noted that the communications funding is quarterly. He can tell the FC <br />what happened, but not necessarily why it happened. He does not think there is a lot of <br />discretionary spending. These are day-to-day operating expenses, the majority of which are <br />personnel. He noted he will have to create cash-flow charts for each of these 5 funds. This is <br />not something he looks at on a regular basis. <br />Commissioner Harold suggested creating a simple table or a chart, as the focuses will be on <br />dollars rather than on percentages, so visuals are not as important. <br />Discuss Topics for Joint City Council-Finance Commission Meeting <br />Chair Schroeder highlighted the items on the agenda so far: tax levy/budget; CIP; cash reserve <br />policy; a draft fiscal note. <br />Identify Discussion Items for the Future Meeting <br />It was agreed the above items for the joint Council meeting will also be their topics for the next <br />two FC meetings prior to that. <br />Adjourn <br /> <br />