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Executive Session and Regular City Council - 4/7/03 Page 10 provided direction prior to staff proceeding further. Mayor Kysylyczyn concurred with elimination of Sterling Codifiers; while raising concern regarding staff s interpretation of a budget crisis - state-wide and city-wide that he opined had been manufactured. Mayor Kysylyczyn advised that during the entire 2003 budget process, he had continually warned of upcoming state budget reductions to cities; and expressed his disappointment in staff s introduction of these proposed workforce reductions so recently after implementing the union contract clause regarding reopening the contract for wage negotiations if necessary. Mayor Kysylyczyn further reviewed the types of aid received by the City of Roseville; provided information regarding the state budget biennium; critiqued and criticized the employee letter and Frequently Asked Question (F AQ) responses prepared by City Manager Beets; and addressed his preference for use of the City's $30 Million (estimate) in discretionary Reserve Funds. Mayor Kysylyczyn summarized that staff, and the media, had manufactured a budget crisis that in reality didn't exist; and encouraged Councilmembers to make use of these reserves as a "Rainy Day" fund until the end of this legislative session, at which time more accurate information would be available. City Manager Beets responded to several of Mayor Kysylyczyn's comments, and asked that Councilmembers view the interest received on reserve fund balances as an asset to keep tax levies in line; and that spending those reserves would increase pressure on the taxpayer; and that the recommendations by staff were consistent with other metro communities in the state. Mayor Kysylyczyn responded to City Manager Beets' comments, stating that the City of Roseville was in effect, governing by endowment in collecting tax monies and using the interest earnings from those collections for