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45 <br />46 <br />47 <br />48 <br />49 <br />50 <br />51 <br />S2 <br />53 <br />54 <br />5S <br />56 <br />57 <br />58 <br />59 <br />60 <br />61 <br />52 <br />b3 <br />Discu,ssion Items <br />It should be recagnized ihat �he Operating �'und Reserve Policy establishes a£'x�ed peree�tage of <br />the annual operati�g budget as the �arget xeserve leve�. Therefore, as the annual aperati�g budg�t <br />inereases, so do tl�e rec�uired reserve levels. �or exam�le, the 2�07 Gener�l �'und Operating <br />Budget is �l Q,8 mil�ion. A 50% rese�ve �evel equates to $5.4 millzoz� (SQ% af $10.8 �nillio�), �f <br />the Operati�g Budge� increased io $1 I.8 z�:�illion, tl�e req�ired reserve �evel would now be $5.9 <br />million (50% of $11.8 rniilion). <br />As a result, to stay carr�pliant vaitl� the Operating Fund Reserve Policy it is necessary to adopt <br />canservative budgets that are conduciee to creating operating surpluses. Ii wnuld a�sa b� wise ia <br />consider capiuring one-iirr�e rr�onies for the p�rposes of strengthening reserve lc�vels. <br />The Taxpayer Reduction Fund was previo�sly establislaed under the premise tl�at the City co�ld <br />continue to report its �'ir�ancial activities separately and inde�endently. Hawe�er, new generally <br />accepted aecQUnting practices have sinc� been implernented �I�ai na longer per�nit `pe�znanent <br />funds' to i�e acco�nted %r in ihis m�nner. �� additzon, the f��a��cial co�ditxon of the City's icey <br />operating funds is para�ount ta aary sznaller-scale effort �n designate discretionary funds. As a <br />result, it is suggested that the Taxpayer Reduction �und be abnlished. <br />64 S�af�'Reca�nmend�tion <br />65 In consideration of tl�e newly ada�ated Operating Fund Reserve Policy and ihe general c�allenga <br />56 in achieving cortaplianee in a timeiy fashio��, S�aff reco��ends t�e follawang: <br />67 <br />68 <br />69 <br />70 <br />71 <br />72 <br />73 <br />74 <br />75 <br />76 <br />77 <br />78 <br />79 <br />8� <br />81 <br />I} <br />�� <br />$4�Q,000 be transferred frorr� the Taxpa�er Reduction Fund �o the Par�CS & R�creation <br />�und <br />$x.5 millian (and an.y aresidual monies) be trans�'er�cd frnm the Taxpayer Reduction <br />Fund to the General F�nd <br />3) Abolish the Taxpayer ReduCtion Fund <br />T�e attached resolution calis �'or tl�ese aetions to �e carried aut. <br />Council Aciion I�equest�d <br />By motion, adopt the attach�d resolution appraving the trans£er a� manies available i�� the <br />T�payer Reduc�it�� Fund to tY�e Greneral and �'arks & Recreation �'�d arid io a�olish the <br />Taxpayer Reduc�ion Fund. <br />2 <br />