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Attachment B Chair Schroeder stated she asked Mr. Miller to include the other funds and their reserves as well for Commission review because the City Council has talked about the 29 funds and the reserves in each so for reference Mr. Miller included a Capital Fund sheet in the packet. Miller stated funds in yellow are restricted funds and money cannot be moved around in Mr. those. Chair Schroeder stated at the September meeting the Commission may be asked to make comments regarding the funds and their opinion on them. If they are Capital Funds they want to make sure they are being funded properly. Mr. Miller stated in conclusion, the City maintains an Operating Fund Cash Reserve Policy to govern the appropriate level of cash reserves for its day-to-day activities. In establishing this Policy, it was recognized that there are several important roles that cash reserves play including the following: Provide cash flow to support operations in between revenue collection periods. Provide interest earnings to fund current operations in lieu of higher property taxes or fees Address unforeseen circumstances including loss of revenue sources or unexpected expenditures Provide for future capital expenditures Strengthen overall financial condition and bond (credit) rating. As the Commission reflects on the amount of cash reserves the City should maintain, and whether to create a separate Cash Reserve Fund, it is suggested that these considerations be taken into account. The Commission discussed general account sweeps of the Capital fund accounts. Commissioner Bachhuber thought one of the challenges the City is facing for the coming year is they have been using General Account Cash Reserves to help prop up the budget for the last few years and that has been ok except now that they are trying to ween themselves off of it over a three-yearperiod they are in a situation where they levy may have to increase by an uncomfortable amount. Chair Schroeder asked on staff pages 10-12 regarding the bond rating, six percent is based on the strength of the cash reserves. She wondered if that was on the total including allthe reserves. Mr. Miller indicated all the reserves are looked at but there are a couple spots where they look more intently. The General Fund receives the most attention from the Bond Rating Agencies. That is the first place and the last place they will look. He stated if there was one fund a City wants to show strength in it is the General Fund.