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Attachment B Commissioner Hodder thought 2019 might be tight. Mr. Miller stated at the end of 2018 the General Fund will be close to the floor of 35%. What staff suggested to the Finance Commission and City Council is staff may have to consider, when closing the books, if it looks like the General Fund will be below 35% to move some money in the fund to make sure the fund does not drop below that. He noted that is something that can be done quickly before staffcloses the books for the year. Commissioner Hodder wondered if the Finance Commission needed to provide a policy recommendation for what happens if this happened a certain way. Vice-Chair McRoberts asked if the Finance Commission needed a recommendation such as “In the event that, here is how the sweep happens, and in the event that one of them is short it can deduct from the sweep fund”. Commissioner Hodder thought there should be some contingencies. What happens in a situation where the fund comes in below target? Mr. Miller stated this was discussed at the last meeting as well. The question was if the fund falls below the floor how would funds get transferred back into the fund to bring it back up. The obvious answer would be to take some cash out of a fund that has excess reserve and shore that up. Vice-Chair McRoberts stated the theory being if the money is being swept up into the General Fund, because the Finance Commission did not feel there was a value in creating a separate sweep fund, what would the process be to get the funds put back into the fund that was below the floor of that fund. He assumed the transfer would require the City Council’s approval based on a recommendation from City Management. Mr. Miller stated that was correct and staff would try to memorialize something like that in the form of a Resolution where it is deliberate and documented. Commissioner Murray asked if a resolution would be needed for every instance of a transfer of money or would staff have a standing authority to move money if a fund fell below the selected percentage. Mr. Miller stated he did not expect this to come into play very often, so he would suggest to the City Council to approve based on a resolution and staff can see if that tends to be more of an overkill. He stated it needs to show on the books that the funds have the cash that needs to be in there. Commissioner Hodder stated the City does not want reserve levels to go below targets because of the impact on the Standard and Poor’s and Moody’s bond rating.