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Regular City Council Meeting <br /> Monday,March 18, 2024 <br /> Page 6 <br /> will continue to need financial support, either through levy increases or through <br /> future transfers out of the excess Cash Reserve Fund. Staff does internally analyze <br /> budget versus actual by department and that is a part of their audit procedures <br /> before the auditors come on board. If there is a department that exceeds its budget, <br /> it would be reported in the footnotes of the audit. <br /> Councilmember Etten thought this was something for further discussion. His point <br /> was not that the department was in the red but, rather, potentially in the black <br /> significantly and when the Parks and Recreation Department is in the black,money <br /> is taken away. But, when other departments are in the black, the Council does not <br /> even know as that is not broken out. It may be a part of the audit process, but the <br /> Council does not see that broken down. He was concerned about how this works <br /> and that one department is losing accumulated positive cash reserves and the City <br /> is not taking money from other departments in the same way that it is being taken <br /> from this department. <br /> Mayor Roe thought the difference was that this was much more obvious or apparent <br /> because the City has separate funds for the Parks and Recreation Department and <br /> the City does not have those same, separate funds for the other departments. On the <br /> other hand,he does not completely agree with the characterization as taking money <br /> away from Parks and Recreation either because, to the extent, for instance, that it <br /> might be property tax money. He noted the City does not levy a tax by department; <br /> the City levies a tax and some of it goes to a department. <br /> Councilmember Schroeder explained the EDA is actually called out in the City's <br /> operating fund reserve policy yet the Council does not see that fund anywhere. She <br /> knows it does not roll into the excess cash reserve but since it is in the policy stating <br /> "should maintain a reserve of thirty-five percent", she thought it was important that <br /> the Council actually sees the fund where that is at. She noted maybe that is another <br /> one that has quite a pile of money and asked if it should be left in the EDA fund or <br /> should something be done with that as well. She stated she would like to see that. <br /> Mayor Roe indicated the Council does see it.There are two different things reported <br /> and this is specifically to the excess cash fund policy which relates specifically to <br /> these funds. There is the annual reporting on just the reserve levels in all of the <br /> funds and that is where the Council sees the EDA and all of the capital funds. <br /> Councilmember Schroeder explained the EDA fund is particularly called out <br /> because it talks about certain funds at a certain percentage. <br /> Mayor Roe indicated that is the overall Fund Reserve Policy for all of the funds and <br /> is the reporting the Council gets on all of the funds in the annual report. <br /> Councilmember Schroeder agreed with Councilmember Etten that more <br /> information is better than less information. <br />