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w Current policy meets GFOA standards
<br />w Operating Reserve created
<br />Economic Uncertainty Reserve created
<br />w Assigned Accounts Reserve created
<br />w Fiscal and Budget Policy
<br />w Operating Reserve Account
<br />Policy goal is 15%
<br />w Council has gone above and beyond, reaching 20%
<br />w GFOA's recommendation is at least 2 months operating expenses, which
<br />is approximately 17%
<br />w City Staff will bring this before the City Council
<br />w KAMG agrees with this position
<br />w Economic Uncertainty Reserve Account
<br />w % of estimated revenues
<br />s Currently funded at 1.5% Discussion about changes to the policy
<br />w Established to maintain between I% and 10%
<br />w Used to offset weak economic conditions
<br />w KAMG recommends trying to achieve a 5% reserve balance
<br />Analysis of Fund Balance — General Fund
<br />w Six year analysis of fund balance (General Fund)
<br />w Focus is on the accumulation of reserves, year over year
<br />w Key is understanding there are multiple reserve "buckets"
<br />w Excellent growth in reserves
<br />w Stable since 2014
<br />General Fund — 6 Year History
<br />Taraet Goal for Reserves
<br />Operating Reserve Account (20%) $40,400,000 $41,000,000 $38,800,000 $40,538,518 $41,512,985 $42,397,974.
<br />Budgeting Methods Used
<br />w Attrition Savings used for 2016-17 budget process
<br />% of department's projected budget was removed and reallocated back to
<br />another, or same department, for other projects or programs
<br />Most, if not all, of the reallocated funds were vacant personnel positions
<br />- Attrition Savings is a budgeting practice that is used and can be effective
<br />Important to clearly identify number of personnel positions funded in the
<br />budget adoption
<br />CITY COUNCIL MINUTES 17 JUNE 6, 2017
<br />2010.11
<br />2011-12
<br />2012.13
<br />2013.14
<br />2014-15
<br />2015-16
<br />Operating Reserve Account
<br />$6,673,290
<br />$19,335,569
<br />$26,842,243
<br />$40,538,518
<br />$41,512,985
<br />$42,397,974
<br />Economic Uncertainty Account
<br />$3,845,592
<br />$3,845,592.
<br />$3,845,592
<br />$3,845,592
<br />Assigned Account*
<br />$2,986,397.
<br />$4,660,762
<br />$5,424,045.
<br />$5,403,946
<br />$16,618,376
<br />$27,077,619
<br />Unallocated Account
<br />$913,595
<br />$532,895
<br />$2,151,297
<br />Prepaid Items
<br />$3,266,819
<br />$3,357,089
<br />$3,434,420
<br />Restricted/Committed **
<br />$1,314,331
<br />$954,954
<br />$1,454,962
<br />$10,974,018.
<br />$23,996,331
<br />$39,378,699
<br />$54,058,740
<br />$66,899222
<br />$76,927,444
<br />Taraet Goal for Reserves
<br />Operating Reserve Account (20%) $40,400,000 $41,000,000 $38,800,000 $40,538,518 $41,512,985 $42,397,974.
<br />Budgeting Methods Used
<br />w Attrition Savings used for 2016-17 budget process
<br />% of department's projected budget was removed and reallocated back to
<br />another, or same department, for other projects or programs
<br />Most, if not all, of the reallocated funds were vacant personnel positions
<br />- Attrition Savings is a budgeting practice that is used and can be effective
<br />Important to clearly identify number of personnel positions funded in the
<br />budget adoption
<br />CITY COUNCIL MINUTES 17 JUNE 6, 2017
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