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Attachment B Memo To:Roseville Finance Commission From:Chris Miller, Finance Director Date:February 13, 2018 Re: Item #5:Continue Discussion on Establishing a Cash Reserve Fund Background At the September 18, 2017 Joint City Council-Commission meeting, the Council directed the Finance Commission to discuss the concept of creating a separate Cash Reserve Fund that would be comprised of excess monies from the City’s unrestricted operatingfunds. As expressed by the Council, the general intent behind the creation of a separate fund was to simplify the determination of whether excess monies were available for future use. For purposes of this discussion, ‘excess monies’ weremeant to include cash amounts that exceededthe cash reserve targeted amount for each fund. Under the current approach, the City Council received a report of the excess monies as listed by individual fund such as the one depicted most recently in a 12/11/17 Staff Memo: ProjectedProjectedProjected12/31/2017 12/31/20162017Less12/31/201712/31/2017Amount CashSurplusAmount FromCashReserveAbove Low Operating FundsReserves(Deficit)DonationsReservesLevelTarget % General (unrestricted)$ 6,646,077$(613,000)(54,000)$ 5,979,07739%646,881$ Parks & Recreation1,637,111144,000(305,000)1,476,11131%280,855 Communications436,616(2,700)433,91680%379,559 Information Technology1,041,002(104,000)937,00232%644,060 License Center1,172,926(75,000)1,097,92658%909,503 The available cash balance from all funds would be the summary of the right-hand column which totals $2,860,858. In this example, the low end of the targeted cash reserve level was used. In contrast, if a Cash Reserve Fund was created the Council and others would see something along the lines of: Amount Available Description12/31/2017 Cash Reserve Fund$ 2,860,858