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Attachment B Commissioner McRoberts stated if a capital expense is being approved then it would be assumed that the operating expense of maintaining that capital is approved and built into the plan. Commissioner Hodder stated from past experience this has not been the case. Commissioner Zeller stated these expenses would eventually have to come into the operating budget if the City wants to maintain their capital investments. Chair Schroeder stated the capital policy does address the concerns about future maintenance of assets. Commissioner Bachhuber stated the CIP plan does look at the capital replacements that are coming up but the City may not be planning for the maintenance on the new capital items. Commissioner Hodder asked how the City would account for investing in renewable technologies that decrease the City’s expenditures over time. Commissioner Murray stated usually these savings are gradual over time. Commissioner Murray clarified the surplus in the IT Fund was partly due to vacant positions. Commissioner McRoberts stated the City should take into account that departments would never be fully staffed and not budget to this amount. Commissioner Zeller suggested taking a pole on of the Commissioners to see if there was support for creating a cash reserve fund. Commissioner Murray stated he would support this in some form but does not want to burden staff with managing this type of fund. Commissioner Bachhuber stated he is not a fan of the cash reserve fund. He does like Commissioner’s Zeller idea of making the operating budgets actual operating budgets and CIP budgets as a separate item. Any surplus on the operating budgets could then be used for tax relief or for capital needs. Commissioner McRoberts stated if the departments do budget to actual operating expenses then there should be some mechanism for when departments have a need to go over their budget such as hiring an additional people in their department. Chair Schroeder stated removing the CIP from all the funds should be done because it is mudding the waters of what they are discussing. It is difficult to discuss a cash reserve fund when there is CIP mixed with it. She does not see the CIP is not an operating budget item. Commissioner Zeller suggested adding two columns to the analysis provided for the Commission’s discussions: actual fund balance at the end of the fiscal year and the capital needs.