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City Council Regular Meeting - 12/18/06 Minutes - Page 32 the intention that the second phase be implemented in 2007 for 2008 payable taxes. Councilmember Kough reluctantly supported the motion; opining that he didn't want to take anything away from the Police, Fire or Park Improvement Funds; and sought clarification from Mr. Miller on the increase per household represented and the home valuation used. Mr. Miller advised that he had used the average - one-half median - home value in Roseville of $200,000. Mr. Miller, using the same calculations, with the proposed motion, advised that the typical homeowner would save approximately $.75/month, or roughly 2.5%. Mayor Klausing spoke against the motion; opining that last year's discussion was that use of reserves was advocated as a temporary measure, and had been used in previous years as well. Mayor Klausing further opined that, the Council's attempts to be financially responsible and conservative, didn't seem appropriate if reserve funds were used annually on an ongoing basis. Mayor Klausing clarified that consideration was not for increasing reserves, but simply balancing them and not using them to meet operational expenses. Councilmember Pust, prior to her election to the Council, had listened to discussions last year; and the concept of using reserve funds was identified as only to be done on a limited basis, and the practice eliminated as soon as possible. Councilmember Pust opined that the same argument about phasing could be used, that it could be ongoing. Councilmember Pust spoke in opposition to the motion; opining that it was more prudent to end the practice now, and discontinue using reserve funds for operational expenses. Councilmember Maschka spoke in oppOSitIOn to the motion; noting that due to state aid reductions and/or eliminations, the City had started with a $750,000 structural budget problem; and over the last three years it