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Attachment B **Note – This draft policy was submitted to the City Council for review in conjunction with the City Manager-Recommended Budget. It has not been evaluatedby the Finance Commission, but is included here as a reference to the discussion on establishing a Cash Carry-Forward Fund. August 28, 2017 City of Roseville Future Initiatives Funding Program Purpose The purpose of the Future Initiatives Funding Programis to establish a mechanism for capturing annual operating budget surpluses to be used for future initiatives, in accordance with target cash reserve levels outlined in the City’s Operating Fund Reserve Policy; while also preserving the mission and essence of previously established and separately managedcity functions. Monies set aside for the Future Initiatives may be used for any public purpose in accordance with State Statutes. Background In previous discussions, the City Council has expressed support for creating the means to capture surplus monies from designated operating budgets. It is proposed that only the General Fund be considered as a funding source for this new Programgiven that the General Fund is specifically and statutorily designated for general-purpose type functions that typically do not carry any outside restrictions. In contrast, other city functions including revenue-generating functionssuch as the Parks & Recreation, License Center, and Information Technology Funds, should be excluded from consideration in order to preserve the original intent behind the establishment ofa separately managedfunction which oftentimesis accompanied by an objective of generating revenues for current and future operations in lieu of greater reliance on the property tax levy. Process & Procedures At the close of each fiscal year,any unassigned surplus monies held in the General Fund in excess of minimum targeted cash reserve levels may be considered for the Future Initiatives Program. Upon formal Council action, aseparate Future Initiatives designation shall be made within the General Fund’s balance sheet which shall be updated annually to reflect associated financial activity during the past fiscal year. It should be noted that any moniesassigned for future initiatives is still nonetheless monies held by the City. As such, it must be disclosed on the City’s financial statements. A depiction of the General Fund balance sheet incorporating the new Future Initiatives category is shown below.