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City Council Special Study Session - 09/09/04 Minutes - Page 2 Mayor Klausing noted that, as per the City Manager's Budget Memo, three solutions were provided: 1) increasing the General Fund Levy; 2) identifying new revenue sources; and 3) cutting expenses. Mayor Klausing again expressed his appreciation to the public for their approval of the recent referendum for a 10% levy increase to facilitate construction and remodeling on the City Hall campus, noting that this was representative of a community that works well and cooperatively. Mayor Klausing further noted that the School District and Ramsey County were facing similar budget issues due to the actions of the State of Minnesota. Councilmember Maschka provided another context, noting that the City Council had not approved a revenue increase since 2001, with the exception of the referendum. Noting inflationary growth and substantial employee health insurance costs, Councilmember Maschka opined that the City continued to fall behind; and reiterated the need to address the structural issue as soon as possible, then return to the historical policy of basing the annual levy at inflationary levels to keep the City on track. Councilmember Maschka, from a financial perspective, further noted that government did not work in a non- inflationary environment. Counciln1ember Maschka provided written recommendations for a 10% General Fund Levy increase for 2005, funding the City Manager's recolnmended budget; and restoring funds as follows: 1. Forgo the implementation of a street light utility or gas and electric franchise fee 2. Restoration of the Y2 year funding for the Police Department Civilian position 3. Restoration of fundin for the Nature Center osition 4. Restoration of fundin for one Maintenance osition Councihnember Maschka's recommendation did not include funding for a custodial position or one Maintenance position, or restore fundin for the Park 1m rovement Pro ram or the