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City Council Regular Meeting -10/10/05 Minutes - Page 10 John Kysylyczyn, 3083 N Victoria Street Mr. Kysylyczyn suggested an "Option E;" and questioned the inflation comments addressed in the City Manager Memo to the City Council dated October 5, 2005. Mr. Kysylyczyn provided his perspective to specific items throughout the memo (i.e., non- inflationary new spending; Police Captain's position; take home squad cars; and health care and energy costs related to inflation). Mr. Kysylyczyn opined that the reductions in departments over the last several years was due to the normal course of business and increased technology; and that while the City may claim to have a lower tax rate than similar cities of the same size, it had a significant reliance on user charges. Al Sands, 2612 Aldine Mr. Sands spoke in support of the new "Option D" provided by the City Manager, as requested by the City Council, and opined that it was a workable option. Mr. Sands reviewed the most recent tax levy year, and the skyrocketing values of residential properties. There were no further public comments. Mayor Klausing questioned the logic of Councilmembers Ihlan and Kough in supporting a 5% levy increase, rather than a 6.9% levy increase to fund new obligations and not depend on reserves. Discussion ensued regarding rationale of individual Councilmembers and percentage of levy increases they were willing to support; Consumer Price Indexing and how it related to internal escalating costs. Councilmember Ihlan supported the 5% levy increase to avoid double-digit levy increases to the taxpayers for two years in a row, opining it was unfair. Councilmember Maschka noted that current inflation rates are estimated at 2.6% and 3% for the year, but didn't account for energy and housing; noting that gross inflation would probably increase by 3 % just this month, and that the economy was moving into an inflationary period. Councilmember Maschka