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City Council Regular Meeting - 12/05/05 Minutes - Page 5 the City, with foreseeable and unforeseen future items. Mr. Miller opined that, thus the stronger reserve levels, the better prepared the City appears. Councilmember Kough noted that the City had used reserves to payoff substantial debt in the Parks and Recreation Department. Mr. Miller clarified that this was an internal function, and that the overall financial condition of the City remained unchanged. Councilmember Ihlan clarified that the proposed 2006 budget anticipated using approximately $138,000 in reserve funds; questioning whether that small amount would impact the City's bond rating. ' Mr. Miller opined that it shouldn't have substantial impact on the bond rating; however, noted that the bonding companies' concerns aren't from year to year, but signals sent over a period of time related to the City's fiscal management and reserve levels. Councilmember Ihlan opined that there would be larger impacts on the City's overall bond rating and debt with the proposed issuance of $40-50 million in Revenue Bonds for the Twin Lakes Project. Councilmember Schroeder opined that caution should be used in predicting doom if reserves are used with discretion. Councilmember Schroeder spoke in support of an independent consultant providing an audit opinion as to the appropriate level of reserves for the City to maintain. Councilmember Schroeder provided, as an example, use of the City's Parks and Recreation Infrastructure Fund for recreational facilities (i.e., skating center). Mr. Miller noted that the Parks Infrastructure Replacement Fund no longer existed; and had been abolished in 2004 to offset accumulated deficits in the department. Mayor Klausing opened the TNT for public comment at approximately 6:35 p.m.