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Regular City Council Meeting Monday,April 18, 2011 Page 12 Mr. Miller advised that he was unable to offer a comment on norms for other communities, as each looked at their specific cash flow and operational needs be- tween revenue collections cycles from differing perspectives. Mr. Miller noted that the City collected revenue through Ramsey County property taxes on a six (6) month cycle, thus the rationale in creating the 50% reserve policy to assure oper- ating needs in the interim. However, Mr. Miller advised that, budget cycles over the last seven to eight (7-8) years were closer to 35-40% reserves in the General Fund, with additional funds borrowed on an interim basis internally from other funds, a normal operating procedure not only for Roseville but other cities as well; and that borrowing was usually from the City's most stable reserve fund, the Pavement Management Plan (PMP); typically for only 30-60 days. Mr. Miller advised that the City Council may wish to have discussion on whether or not that was an appropriate practice to continue. Councilmember Johnson questioned if reducing the reserve policy from 50% to 35%would preclude the necessity of borrowing from other internal funds. Mr. Miller responded affirmatively;however, he noted that to get from the 35%to 50% funding level, it would require a sizable infusion of cash from some source. Councilmember Willmus opined that that specific policy needed further review and discussion. Mayor Roe concurred, noting that policy had been one of his proposed discussion points as well. Mayor Roe clarified with Mr. Miller total General Fund budget versus levy- supported General Fund budget ($13 million versus $18 million); the portion of property tax levy going toward principle and interest and whether it made sense to have a policy related to tax-supported portion of the General Fund, or the whole fund; and whether there would be any significant changes to the numbers accor- dingly. Mr. Miller advised that consideration should be given on the lack of uniformity of non-cash tax flows through the year; noting that most cities used General Fund, rather than property tax-based reserve percentages. Mayor Roe questioned if it made sense to provide a minimum range rather than a fixed percentage for reserves as a future policy discussion if supported by the City Council majority. Mr. Miller opined that such a policy could be considered. Mayor Roe noted the inclusion over many years at the end of the budget docu- ment of a list of funds by type and category, as well as a description for the City's