2019_0318_CCPacket - Laserfiche WebLink

Home

67 Communications Fund 68 While the Communications Fund remains within the targeted 10-30% cash reserve level for now, it is 69 expected to decline by $82,000 in 2019. If this occurs, the cash reserve level will drop to 4%. At a 70 minimum, it will be necessary to take corrective action within the 2020 Budget to re-balance the staffing- 71 related costs that can befunded by cable franchise feeswhich have declined 12% ($54,000) in the past 72 year. 73 74 If made, the 2020 staffing-allocation change will require a corresponding increase in the property tax 75 levy. 76 77 Information Technology Fund 78 The calculated excess cash reserve amount in the Information Technology Fund declined by 79 approximately $50,000 as additional funds were set-aside for capital-related items to ensure the 2019- 80 2038 CIP had sufficient cash reserves to fund scheduled replacements. 81 82 License Center Fund 83 Similar to the IT Fund, the calculated excess cash reserves in the License Center Fund dropped 84 considerably in 2018 due to a number of contributing factors. They include: 85 86 $250,000 cash transfer to finance the acquisition of the Lexington Shoppes site 87 $55,000 outlay for renovation of the Passport and Auto Dealer areas 88 $174,000 in monies set-aside to adequately fund capital-related items included in the 2019-2038 89 CIP. This includes $100,000 for possible renovation of the motor-vehicle side of the License 90 Center. 91 $140,000 general operating loss** 92 93 ** The operating loss is calculated after making $455,000 in financial support payments to 94 other city programs 95 96 With regard to the oprating loss, we had projected a $103,000 operating loss based on expected revenues 97 and expenditures. While revenues came in 1% higher than expected, we continued to experience on-going 98 challenges associated with motor-vehicle related transactions (MNLARS). This resulted in added costs 99 as staff routinely stayed well past normal operating hours to meet customer needs. 100 101 There are a number of legislative bills that are in progress for Roseville and other deputy registrars to 102 receive reimbursement for some of these excess costs, and there appears to be broad support within the 103 Legislature as well as the Governor’s Office. 104 D ISCUSSION I TEMS 105 The City Council has discussed at length the potential advantages and upside of creating a separate Cash 106 Reserve Fund - monies that might provide startup or temporary funding for a new initiative or perhaps 107 help buoy future property tax increases. However commendable it may be, the reassignment of cashfrom 108 one purpose to another carries potential tradeoffs and consequences. 109 110 The cash reserve target levels noted earlier were established primarily based on meeting the day-to-day 111 cash flow needs of the respective fund. However, these targets do not factor in business and economic 112 risk or initiatives identified in long-range plans where funds may have been accumulating over a period 113 of years. 114 Page 3 of 4