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115 The City’s Emerald Ash Borer (EAB) Program is a good example of the latter, while the 2007-2009 <br />116 recession demonstrated the financial impacts that can occur at the License Center during an economic <br />117 downturn. During the recession and subsequent years, the License Center experienced a significant drop <br />118 in every transaction category including a 39% decline in passports and 18% declinein vehicle title <br />119 transfers. The result was a $900,000 loss in revenue from 2007-2013. We didn’t return to pre-recession <br />120 passport transaction volumes until 2015. <br />121 <br />122 A separate Cash Reserve Fund mightsupplant these and other ancillary reasons for holding excess <br />123 reserves in individual funds but only if the monies aren’t spent. Staff will be available at the meeting to <br />124 address any Council inquiries. <br />125 <br />126 To provide the Council with a complete picture of available cash reserves, a summary of 12/31/18 Cash <br />127 Reserves for all funds is included in Attachment A. The attachment includes two columns that depict the <br />128 projected cash reserves in our unrestricted CIP funds at the 5-year, and 10-year mark. <br />129 P OLICY O BJECTIVE <br />130 Not applicable. <br />131 F INANCIAL I MPACTS <br />132 See comments above. <br />133 S TAFF R ECOMMENDATION <br />134 Given the near-term funding challenges and lack of financial sustainability in some of the City’s <br />135 unrestricted operating funds, Staff recommends that the Council forgo the creation of a Cash Reserve <br />136 (cash carry-forward) Fund at this time. <br />137 <br />138 Staff further recommends that the City Council authorize a one-time cash transfer of $500,000 from a <br />139 fund identified on Attachment A, to bring the General Fund into compliance with the City’s Operating <br />140 Fund Cash Reserve Policy. Staff recommends that the cash transfer be made effective on 12/31/18 and <br />141 memorialized in a resolution to be brought forth at the March 25, 2019 City Council meeting. <br />142 R EQUESTED C OUNCIL A CTION <br />143 Staff is seeking direction on whether to proceed with the creation of a separate Cash Reserve Fundas <br />144 well as whether to enact any cash transfers to improve the General Fund’s cash position before closing <br />145 the 2018 books. <br />146 <br />Prepared by: <br />Chris Miller, Finance Director <br />Attachments: A: Summary of 12/31/18 Cash Reserve Levels: ALL FUNDS. <br />147 <br /> <br />Page 4 of 4 <br /> <br />