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Attachment B 47 level amounts as specified in the Operating Fund Cash Reserve Policy. 48 Modify the Operating Fund Cash Reserve Policy to increase the targeted high reserve 49 amount in the Communications Fund from 25% to 30%; and decrease the targeted high 4:reserve levels in the Information Technology and License Center funds from 25% to 51 15% to more accurately reflect cash-flow needs throughout the year. 52 Consistent with governmental accounting practices, the newly-established cash reserve 53 is to be held in the General Fund for financial reporting purposes until it is designated 54 for a defined purpose. The money is to be tracked separately from all other General 55 Fund activities. 56 57 58 ontheserecommendations. 59 5: City of Roseville 2015-2017 Excess Cash Reserve Calculation Op. Cash12/31/201512/31/201612/31/2017 Resrve PolicyREVISEDAmountAmountAmount TargetTargetTargetTargetAbove HighAbove HighAbove High Operating FundsLowHighLowHighTarget %Target %Target % General (unrestricted portion)35%45%35%45%$ -$ 30,935$ - Parks & Recreation25%25%25%25% 174,675-443,190 Communications10%25%10%30%217,471154,694- Information Technology10%25%10%15%306,799186,562267,454 License Center10%25%10%15%712,259206,863184,262 $ 1,236,529$ 753,730$ 894,906 61 62 63 It should be noted that the reserve amounts denoted in the table excludemonies that have been set aside 64 for capital replacements as well as donations. The far-right column of the table depicts the amount that 65 would have been swept into the Cash ReserveAccount had this policy been in place in 2017. 66 67 RECOMMENDATION on Capital Improvement Plan (CIP) Categorizations & Revised 68 Process 69 Similar to the discussion on the Cash Reserve Fund, this dialogue has also been on-going for an extended 6:period with the Council asking the Commission to again review the matter following the Joint Meeting 71 in March.The Finance Commission recommends that the Council establish newCIP categories 72 accompanied by separate review processes based on the following: 73 74 Category 1: CIP items that are generally routine and can be incorporated into various 75 replacement policies. It would include day-to-day items such as vehicles & equipment 76 that have a fairly consistent useful life. 77 78 Category 2: CIP items that are incorporated into a broader strategic plan or replacement 79 7:Program, Park Improvement Program, or similar long-term planning initiatives. 81 82 Category 3: CIP items that would be considered non-routine or occur on a highly 83 infrequent basis and have a significant budgetary impact. This could include items 84 such as the OVAL refrigeration system replacement or new facilities. 85 A revised Capital Investment Policy with these proposed revisions is highlighted in yellow in Attachment Page 2of 4