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<br />City Council Regular Meeting - 04/24/06 <br />Minutes - Page 40 <br /> <br />overall spending targets and budget priorities; followed by <br />individual departments. Councilmember Ihlan suggested that <br />less time be spent on departments making formal presentations, <br />with the information provided to Councilmembers in advance for <br />their review, followed by Council meeting time allowed for <br />Council questions and additional information requested as <br />needed of specific Department Heads. Councilmember Ihlan <br />also noted her support for researching issues and studying the <br />reserve funds; budget controls; and ongoing debate of items (i.e., <br />line item versus fund). <br /> <br />Councilmember Pust requested staff comment and monitoring of <br />School Board discussions for Council information to balance <br />impacts of city and school tax levy increases. <br /> <br />Mayor Klausing requested that staff return with an inflationary <br />factor increase, estimated at 3.5%. <br /> <br />Discussion included the 2006 budget process and perceived <br />flaws in that process; inflation factors and index schedules used <br />(i.e., CPI versus cost-of-government indexes); long-term <br />planning and assessment plans to establish long-term community <br />success; and the need for getting back to an inflation-rate levy <br />increase, given the corrections made in the past several years to <br />get back on track, with emphasis on long-term planning and <br />capital improvements. <br /> <br />Mr. Miller suggested new initiatives (i.e., housing) be above and <br />beyond the basic long-term planning to situate the community <br />for success for the duration. <br /> <br />14. Consider Conducting a Bond Rating and Reserve Fund Consider <br />Assessment Conducting a Bond <br />Mr. Miller reviewed the City's current bond rating of Aal from Rating and Reserve <br />Moody's and AA from Standard & Poor; with both ratings one Fund Assessment <br />step below the top rate, placing the City in the top 6% nationally <br />for all municipalities. Mr. Miller reviewed the rationale for <br />maintaining a strong bond rating related to issuing bonds and <br />favorable interest rates, resulting in lower debt payments and <br />lower property taxes. Mr. Miller noted that with the Twin Lakes <br />development, the City was poised to issue approximately $24 <br />