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Regular City Council Meeting Monday,July 22,2013 Page 22 the City should proceed to achieve that sustainability goal for the CIP. Coun- cilmember McGehee cautioned that the City Council and residents continue to think long-term to avoid similar issues as found through not investing in its own infrastructure system. Mayor Roe noted that Councilmember McGehee had a good point; agreeing that the City had come a long way with its infrastructure replacement and maintenance needs. Mayor Roe advised that as he included 2014 numbers in CIP funding, the only issues were in the Water Fund for water tank refurbishment and water meter costs, coming on line earlier than originally projected; along with a Facility Man- agement Plan proposed as an additional levy amount in 2014,but no longer feasi- ble given levy limits enacted by the legislature. While recognizing that the unex- pected LGA funds estimated at $225,000 could be applied to the CIP Fund as planned before levy limits were enacted, Mayor Roe 'suggested that there were competing priorities and needs beyond Capital needs. At the request of Councilmember Etten, Mr. Miller clarified Mayor Roe's com- ments related to a portion of the sales tax exemption with the majority of purchas- es done in CIP thus realizing the majority of savings in that Fund; along with some savings in Enterprise Funds that will also save on future fee increases, even though it wasn't a huge budget windfall, and most of the savings will be eaten up by inflationary costs. At the request of Councilmember Etten, Mr. Miller further clarified that any savings from the sales tax exemption would be eliminated since the 2013 and 2014 CIP had been frozen, creating an issue again in 2015. Mayor Roe concurred, noting that since CIP spending varied from year to year, but the goal was to have steady funding annually to avoid spikes; with the frozen funding seeming to get the City through several years in the short-term. When working on the CIP and Budget Task Forces, Councilmember Etten noted that one item addressed was the inflationary increase for what was already in place; and questioned if the sales tax exemption monies would help any without increasing the levy and would avoid digressing. Mr. Miller responded that it helps and would benefit the City some by alleviating the need for tax levy increases down the road,but would only be a one-time reve- nue source and adjustment, and once factored in would become part of the base. Councilmember McGehee spoke in support of spending LGA revenue this year only. Mayor Roe clarified, for general information that the LGA revenue had come as result of new LGA calculations in their formulas.