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Attachment B Chair Schroeder indicated to her it comes down to who gets to decide where to stockpile money for future initiatives. Commissioner Reif thought Department Heads might start spending more money at the end of year if they have it rather than have a surplus that gets swept into a general fund for other Departments to use. Commissioner McRoberts stated that was why the Commission wanted to see monthly spending to look at the spending trends in the Departments. Commissioner Hodder stated his concern is they had already reserved spending since he has been a Finance Commission for almost four years. He stated they have been dipping into their reserves and some Councils may not be enlightened and could spend down more and create a situation where they destabilize theCity funding streams.Right now, they have sustainability and if they get into a sweep situation or some new initiatives they could destabilize our funding mechanisms. Commissioner Hodder stated as a project manager he relied on his staff to provide him with information on how things were being run and he couldn’t know everything and relied on his experts to ensure his programs were run well. He stated the Council sees the big picture, but they may not see nuances of how different departments work and are run. He thought there needed to be some delegation to Department heads. Commissioner McRoberts thought the lower limits are set at appropriate levels so mismanagement cannot happen. He stated the way he understood it at the end of the year any excess or deficits were going to be thrown in together into one fund and re-allocated to every Department for the new year. This allows a revisiting of all priorities across allthe Departments. It makes it an easier way to govern. Commission discussion ensued regarding department management of the funds versus staff management of the funds. Commissioner Bachhuber stated when he looks at this if he was going to propose sweep levels he would agree with Mr. Miller that the General Fund balance of 45% would be good but he figured all the excess money would eventually end up in the General Fund. He did not think it mattered for that fund. He thought 25% as a level at which sweeping would begin makes sense. He thought the percentage for the Communication Fund would need to go a little based on what they see. When he looks at IT and License Funds he thought those could be swept at 15% given how their revenues flow and not a need for reserves. Chair Schroeder asked what the next step should be.