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<br />City Council Regular Meeting - 10/10/05 <br />Minutes - Page 12 <br /> <br />Councilmember Maschka reiterated his OpInIOn that to <br />realistically make structural budget corrections, it would be <br />necessary to eliminate employees, no matter how unpleasant the <br />task. Councilmember Maschka further opined that the <br />consulting fees were a non-issue, as they came out of Economic <br />Development Department funds and were fee-based. <br /> <br />Mayor Klausing suggested that the new information and <br />discussion be considered by Councilmembers for future <br />reference and further discussion. <br /> <br />Additional discussion included percentage of reserves in Option <br />D; clarification by Mr. Miller of actual General Fund reserves <br />($10.5 Million, not $34 Million); and staffs concern for <br />continual drawing down of reserves over the last several years <br />and the wrong signal being sent to lending and bonding <br />institutions in continuing to draw down those reserves. <br /> <br />Mayor Klausing requested clarification as to the estimated dollar <br />difference for a $200,000 valued home from a 7.5% to a 5.5% <br />levy increase. <br /> <br />Finance Director Miller estimated it would be a difference of <br />approximately $10.00 annually for each home. <br /> <br />Councilmember Maschka clarified that the $34 Million in <br />reserves discussed included $12 Million in the Pavement <br />Improvement Program (PMP) for annual maintenance of the <br />City's infrastructure; and opined that it should not be addressed, <br />and brought actual reserves in line. <br /> <br />Councilmember Ihlan opined the need for long-term strategic <br />planning; noting that Option D provided a workable alternative <br />for 2006, and could allow the Council to concentrate on <br />depreciation and long-term issues. <br /> <br />11. <br /> <br />Discuss and Give Staff Direction regarding a City Council <br />Policy for Out-of-State Travel by Councilmembers <br />City Manager Beets provided recent legislation language <br />requiring all cities to adopt a Council Travel Policy; and a model <br />policy provided and recommended by the League of Minnesota <br /> <br />City Council Policy <br />Out-of-State Travel <br />