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City Council Regular Meeting -11/14/05 Minutes - Page 16 State Auditor's website. Mr. Kysylyczyn opined several areas where expenditures could be reduced and encouraged the City Council to address basic items (i.e., social club dues for City management; employee use of vehicles; and OVAL subsidies). Mayor Klausing briefly returned to discussion of Item 8 at this time; and returned to the discussion at 7:24 p.m. Mayor Klausing again encouraged a Council-spirit of compromise, and questioned what levy increase number would be workable to achieve consensus. Councilmember Ihlan was firm in her support of Option D at a 5% levy increase, and deferred spending and capital purchases. Discussion included whether or not there was actually a consensus for that 5% levy increase, of if it had been approved for discussion purposes only. Councilmember Kough spoke in support of additional reductions to achieve a zero percent levy increase. Councilmember Schroeder expressed concern in considering a general percentage levy increase, opining that line item considerations should be reviewed, and a clear determination on the appropriate amount of reserves to be used; and noted his original 3.78% levy increase compromise to address inflation and use some reserves. Councilmember Schroeder encouraged a Council motion for a comprehensive review of minimum levels for reserves and implications for bonding rates, to be provided by an outside, independent consultant. Mayor Klausing clarified the items included in the City Manager's proposed Option D levy increase at 5%. Mayor Klausing spoke in support of Councilmember Schroeder's proposal for a study of reserves and bonding authority, and suggested it be one of the Council's primary objectives for early