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Regular City Council Meeting Monday, September 12, 2016 Page 33 the established budget goals. Councilmember McGehee asked if that is to meet the 5.5%. Mr. Miller clarified there is no money set aside in the levy to wean off cash reserves, which are being used at the same rate as the previous year, but that will be a future consideration of the Council. Councilmember McGehee recalled three years ago the City started with taking $325,000 from reserves, last year $375,000 was taken, and this year $400,000 was taken. She noted the amount taken from reserves has increased every year. Mr. Miller stated that is correct but the Council has talked about the reserve levels and thinks it is fine for 2017 but long term, staff is a strong advocate for the concept of having a structurally balanced budget and the Council will need to make those efforts in future years. Councilmember Willmus stated one reason the City has strong reserves is that in prior years the City has taxed over what was needed for that budget year. That is where the reserves came from, tax dollars paid in advance. He stated in consider- ing the information provided by the Finance Commission, the City is able to spend down reserves without impacting ratios within the General Fund. Coun- cilmember Willmus stated when the City has amassed this size of cushion, it should hold itself to being within the target ranges as identified by the Finance Commission. Councilmember McGehee asked how it works when taking $400,000 from the re- serve and if the same money could be applied to any of the three funds discussed last time: Maintenance Fund, Pavement Program, or Parks Improvement Fund. Mr. Miller stated the Council has discretion to move discretionary funds from one to another so that could be a strategy to address long-term capital funding. Coun- cilmember McGehee stated this money could actually be used to assist in address- ing other places of shortfalls. Councilmember Laliberte asked if that were to be done, then would it leave the City Manager’s budget short by $400,000. Mr. Miller answered there would be a gap between proposed spending and proposed revenues. Councilmember Laliber- te noted it would then have to be addressed in a different way. Councilmember Etten asked how much of the reserve dollars are being used for on-going versus one-time costs in the 2017 budget. Mr. Miller answered $375,000 is for on-going costs and the other $30,000 was for a one-time portion of the Comprehensive Plan update. Mayor Roe stated it is important to note the increase of $51/year on the average property is on a base amount from 2016 of $854 tax per year to $904 with round- ing. That takes into account that the property has seen a 4.8% increase in its value as well. Mr. Miller stated that is correct and is based on the median valued home in Roseville from 2016 to 2017.