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Regular City Council Meeting Monday,July 22,2013 Page 28 Mr. Trudgeon noted that his request for further clarification was based on the fact that while inflationary issues could be addressed easily, if considering as an ex- ample the Community Development Department budget at a zero percent in- crease, it also remained frozen at 2013 levels,while not impacted by levy limits as it was supported primarily through fees. Mr. Trudgeon sought whether all budg- ets should be frozen at 2013 levels, with associated ramifications, or only those supported by the property tax levy. Councilmember Willmus opined that he would take the motion and direction to mean levy-focused only. Regarding staff time to prepare and present two different budget scenarios, Mr. Trudgeon deferred to Finance Director Miller, allowing time for conversations and work by Departments Heads in determining their priorities, and for he and Mr. Miller to get those budget scenarios prepared for presentation to the City Council by August 19, 2013. Mr. Miller noted that it should be doable. Based on the current pressures, Councilmember Laliberte added that it was im- portant to look at the worst case scenario, some of those things that were outside the control of the City, and stressed the importance of having that information in- cluded. Mayor Roe clarified, and Councilmember Laliberte confirmed that her motion did not include the use of reserves of LGA funds. If only intended as an exercise, Councilmember Etten opined that he could sup- port the motion; however, he noted that the $430,000 already excluded an infla- tionary increase for basic operations and would already represent a zero percent increase in that portion of the budget, requiring staff to absorb any recommended Compensation Study increase and identified mandates. Councilmember Etten cautioned that this scenario at zero percent increase went from making an invest- ment in City employees to significantly reducing or eliminating a lot of options; and if seriously considered, needed to be open to using reserve principles or re- purposing those reserves. Councilmember Etten opined that he did not anticipate any additional money in reserves by year-end 2012 with the exception of addi- tional monies available to the City for the budget that were not currently being talked about. Mr. Miller concurred, based on current and projected interest rates so low; and those older investments maturing and needing to be reinvested at those lower in- terest rates that he projected to remain stagnant at best and possibly declining in 2014. Mayor Roe concurred, noting that the investment would reduce according- ly.