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<br />REQUEST FOR COUNCIL ACTION <br />Date: 3/16/2026 <br />Item No.: 7.c. <br />Department ApprovalCity Manager Approval <br />Item Description:Receive the 2025 Preliminary Cash Reserve Fund Report <br />1 <br />2 Background <br />3 Background <br />4 The Operating Fund Reserve Policy, as revised on September 20, 2021, (Attachment 1) <br />5 states that excess reserves above the maximum reserve level for that specific fund (less <br />6 funds needed for capital expenditures and funds received as donations) shall be placed <br />7 into the Cash Reserve Fund. <br />8 <br />9 Identifying Excess Cash Reserves <br />10 Attachment 2 shows the cash reserve levels along with the targets for each fund. In <br />11 accordance with the cash reserve policy, the following amounts have been identified to be <br />12 in excess of the high target reserve level for each fund. Historically, the excess cash <br />13 reserves analysis looks at the fund balance reserves as a % of the 2026 Budgeted <br />14 Expenditures. <br />15 <br />16 Therefore, these amounts should be considered to be transferred to and (from) the cash <br />17 reserve fund. Note: These are preliminary unaudited numbers. Staff will bring back to <br />18 council a request for transfer once the Financial Audit fieldwork is completed. The Audit is <br />19 scheduled for the weeks of March 23rd to April 3rd. <br />20 <br />21 Parks & Recreation Fund — When compared to the 2026 Budgeted Expenditures, <br />22 reserves are at 31.03% (Policy between 20% to 30%). As a result, the Parks and <br />23 Recreation Fund is $734,325 over its Low Target Fund Balance of 20% and $68,351 over <br />24 its High Target Fund Balance of 30%. <br />25 <br />26 License Center Fund — When compared to the 2026 Budgeted Expenditures, reserves <br />27 are at 34.17% (Policy between 10% to 15%). As a result, the License Center Fund is <br />28$636,247 above its Low Target Fund Balance of 10% and $504,631 above its High Target <br />29 Fund Balance of 15%. <br />30 <br />31 General Fund — When compared to the 2026 Budgeted Expenditures, reserves are at <br />32 29.61% (Policy between 35% to 50%). The analysis indicates that funds are needed to <br />33 replenish the fund balance margins. $1,619,905 to bring the fund balance to the Low Target <br />34 Level of 35% or $6,125,458 to bring the fund balance to the High Target Level of 50%. City <br />Page 1 of 2 <br />Qbhf!57!pg!211 <br /> <br />