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Attachment B Commissioner McRoberts stated the budget should be closer to the actual spend and there should not be large surpluses generated. Commissioner Bachhuber stated the IT Fund does look like they are budgeting more than their needs consistently and this is something that could be looked at. Finance Director Miller stated the IT Fund is the large surpluses resulted from vacant positions. The City also sets aside approximately $150,000 to $300,000 for capital replacements and this is based on the CIP schedule. There are times the City does not spend these CIP funds because there is not a need yet because the items that are scheduled to be replaced are still working. Commissioner McRoberts stated there should be some priority in the CIP because the replacement schedule should not be that discretionary. Finance Director Miller stated this is a business model that may change but currently the City set up the IT Fund to be separate and the monies in this fund stay in this fund. One of the reasons the City set this up this way was to allow discretion to not replace assets until you had to. This means the funds are there when the asset does need to be replaced. Chair Schroeder asked why some funds or departments did not have a separate CIP Fund. Finance Director Miller stated the IT Fund, Parks and Recreation Fund, and License Center Fund had been established as a separately managed function. The idea behind this was to isolate costs and decision-making. Chair Schroeder stated it makes things confusing when some areas have their CIP in their operating budget and there is not clear way to know what funds are set up this way. Commissioner Zeller stated there are CIP processes and a specific fund set up for capital improvements. There is a Parks and Recreation CIP fund but they also have CIP items built into their operating budget. Finance Director Miller stated the Parks and Recreation fund the Commission is reviewing at this time only operations and does not include CIP items. Commissioner Bachhuber stated what Chair Schroeder and Commission Zeller are recommending is to pull the CIP items from the operating budgets and look at these items and prioritize them. He would not have the Park and Recreation fund separate because it does not generate enough revenue to operate as a separate business. Chair Schroeder stated the License Center transfers funds to other departments throughout the year.