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Regular City Council Meeting Minutes Monday, April 23, 2007 Page 37 Mr. Miller noted that the Community Development Department fees were detailed and outlined in the annual fee schedule resolution adop- tion, but were not specifically addressed in a policy. Councilmember Roe, with concurrence by Councilmember Pust, sug- gested that the adoption of the fee schedule be incorporated as part of the Revenue Policy, with language indicating that as part of that pol- icy, the City Council will annually, and as part of the budget approval process, adopt the fee schedule. Mayor Klausing concurred that there was a benefit in having the pol- icy explicitly shown. Councilmember Ihlan concurred that it would be appropriate to in- clude it specifically here; even though fee discussions cropped up in TIF discussions and policies, when considering public benefits that were consistent and stated as an overall policy. Councilmember Roe questioned the benefit of maintaining the annual levy based on the City's tax rate as a consistent and general objective. Councilmember Pust cautioned that budget impacts and contingencies not apparent and within the City's control (i.e., fuel costs, Local Gov- ernment Aid reductions or eliminations, employee health care costs) required the need to maintain flexibility in setting the annual levy. Mayor Klausing was supportive of a policy based on the general prin- cipal, with deviation as required, to tie the annual levy increase to that of inflation. Mayor Klausing, while recognizing Councilmember Roe's suggestion, questioned the impact if a large development came forward, and broadened the City's tax base, and whether the Council would want to require that the levy be tied to the tax rate if a reduced levy were achievable. Councilmember Roe suggested additional discussion, in addition to staff input, related to reserve levels.