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City Council Regular Meeting -12/05/05 Minutes - Page 7 Mr. Cartier noted the significant double-digit increases in residential market values; and questioned when the cap would be reached. Mr. Cartier questioned if the City had a spending problem or a revenue problem. Mayor Klausing commented on Mr. Cartier's excellent questions; noting the answer depended on who you were asking and what your priorities were; and the City Council valued the reconmlendations of staff, as well as the public comments related to services, programs and overall community values and quality of life impacts and preferences. Councilmember Ihlan opined that in consideration of the last two questions and spending versus revenue, the City Council should be taking a long-term approach in their budget process; setting long-term taxation targets at inflation, plus a small percentage increase to allow the City Council, staff and residents to anticipate future expenditures and capital improvements. Mr. Cartier expressed his support of the standard of living maintained in the City of Roseville; but asked that the City Council look at each line item carefully; and encouraged the Council's consideration of a multi-year budgeting process. Mayor Klausing spoke in support of long-term budgeting; however, recognized the areas that remained outside the City's control (i.e., state budget crisis) and the limits under which the City Council could work in long-term budgeting and planning. Councilmember Schroeder noted that the problem with the current budget process was that it didn't allow staff or the City Council time to look into the future to determine future needs; and that the current process necessitated the staff padding their budgets to make sure contingencies were funded. Councilmember Schroeder spoke in support of line item analysis and long-range funding and budgeting plans, for staff to ensure they can provide adequate operations and services as demanded by the public.