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Attachment B <br />two. These funds would not be part of a legally restricted fund but repurposing these would not <br />be used for the intended purpose. There are funds that are currently earmarked and being tracked <br />in the individual funds. <br />r Schroeder asked for clarification on staff’s concern about the potential for disrupting a <br />Chai <br />means of holding staff accountable for programs and assets. <br />Finance Director Miller stated for every dollar the City holds, someone is accountable for <br />holding that dollar. The City has created funds for specific purposes including greater <br />transparency and greater accountability. Having a system that is automated that whenever there <br />is a surplus these funds are transferred to a larger cash reserve fund would take away the <br />accountability of individuals or departments to capture this surplus to meet an unmet need in the <br />future. There would not be a way for these individuals or departments to know what funds are <br />available to them in the future. A lot of the surplus funds are sitting in CIP funds. <br />Chair Schroeder stated if there is a need in any department then these excess funds could be used <br />without having to raise taxes. <br />Commissioner Hodder stated the problem would arise if these funds were not returned or repaid <br />when they are needed to fund the original intended purpose. <br />Commissioner Zeller stated his idea on the concept had been that the amount needed in that <br />reserve would be quantified and in the budget as part of the budgeting process. Any excess <br />would be considered revenue for the following year, and any deficits would need additional <br />funding requirements. This would strip out the CIP and any designated fund. <br />Finance Director Miller clarified using the General Fund as an example. The Commission is <br />looking to designate the amount of excess reserves which signals to the Council these can be <br />used in funding the next year’s general fund budget. <br />Chair Schroeder stated the concept would be to move those funds that are in excess of the set <br />reserve amount for each fund into a separate cash reserve fund and use these funds for CIP items <br />or other needs in the City without raising taxes. These would not be reserve funds but rather <br />surplus funds beyond the reserve amounts. Having a separate account would make it easier to <br />see what is available and track how it is spent and show the accumulated annual surplus or <br />deficit of actual expenditures versus budgeted expenditures. <br />Chair Schroeder asked who would make the decision that funds should be set aside for a future <br />purchase or acquisition. <br />Finance Director Miller stated that any large purchase has been identified in some long-term <br />document such as the CIP and this is shared with the City Manager. This then becomes part of <br />the City Manager budget recommendations. If it is a strategic plan it is typically shared with the <br />City Council. Many of the City’s departments have strategic plans that have been presented to <br />the City Council. He stated there is a story behind every dollar of cash reserves and he cautioned <br /> <br />