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Regular City Council Meeting Monday,June 16, 2014 Page 16 Mr. Miller clarified that it would not continue, and was due to funds received over time from other agencies and/or school districts involved in Joint Powers Agree- ments (JPA's) with the City of Roseville; and for the purpose of funding the con- struction of fiver build-out estimated at approximately$250,000 to complete. Mr. Miller advised that authorization for that build-out was intended to come before the City Council yet this summer, representing that large capital expenditure. While the surplus has been growing, Mr. Miller advised that it would not continue to do so beyond a gradual reserve fund. When voting last year in setting the budget, Councilmember Etten noted his con- cern then and ongoing concern in any continued use of budget reserves on an an- nual basis. Councilmember Etten opined that he had problems with that type of budgeting for the long-term. Councilmember Etten advised that he was open to reducing the amount of reserves in 2015 as indicated to avoid hammering resi- dents, he couldn't support cutting them all away, but would look toward splitting the difference as a reasonable compromise. Councilmember Etten opined that he would prefer not to use those reserves at all since it indicated larger and broader budget problems and a lack of ability to make hard choices. Mayor Roe concurred that he was not supportive of a long-term use of reserves; and noted previous discussions and former City Council's having a Tax Levy Re- duction Fund in place to reduce levy increases as indicated. Mayor Roe advised that his suggestion was to look at overall funds that way; and opined that the Gen- eral Fund and License Center made sense, not to deplete it all, but to transfer a sensible reserve amount; while still understanding that eventually the levy had to go up at some point to cover those costs. Councilmember Willmus agreed with the comments of Councilmember Etten. From his position, Councilmember Willmus opined that continuing the use of re- serves over many budget cycles would not be sustainable, and the City could not support that practice. However, Councilmember Willmus opined that there were other aspects outlined for the City Council that needed a hard look, using non- union COLA already put in place as just one example. Councilmember Willmus expressed his understanding of the original intent in October of 2013 for the 3.26% adjustment for employees, but when an additional 2% COLA in 2014 was approved, and now an additional 2% in 2015, he found that tying the Council's hands on other things. If some of those things are taken of the table, Coun- cilmember Willmus opined that a different balance could be found. Councilmember McGehee spoke in support of the reserve policy established in 2013. Councilmember McGehee noted the use of reserves last year with a prom- ise to pay it back, but now considering taking out of reserves yet again. Coun- cilmember McGehee agreed with Councilmember Etten's comments that some hard choices needed to be made; and since the recent community survey indicated citizens being happy with services and programs, and not seeking any reductions,