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Regular City Council Meeting Monday, December 5, 2016 Page 13 City Manager Trudgeon advised that beyond the detail provided in the RCA and attachments, he and Finance Directar Miller were both available to respond to questions as needed. For the benefit of the public, Mayar Roe asked Finance Director Miller to display several charts outlining recommended budget and levy numbers based on the City Manager's Recommended Budget and revisions made based on City Council di- rection and additional refinements made to assumptions as the 2016 year pro- gressed (pages 1 and 2 of the RCA). At the request of Mayor Roe, Finance Direc- tor Miller confirmed that $405,000 in additional reserves was proposed for use in 2017 to lower levy and budget impacts for Roseville taxpayers. Mayor Roe clari- fied how those reserves served to mitigate levies, while retaining the projected range for reserves in accordance with current city policy. Councilmember Willmus pointed out an error between the narrative for the net levy increase on the levy side on line 11 of the RCA and the chart, with the chart accurately stating $1,046,450. At the request of Councilmember Etten, Finance Director Miller reviewed capital increases for 2017 in the amount of $160,000, but noted an additional $65,000 had been allocated for additional pathway and parking lot maintenance for a total of $225,000. Councilmember McGehee referenced use of reserves in 2017 in the amount of $375,000 for tax-supported programs continued in the General Fund (page 2, lines 39 — 40). Councilmember McGehee noted this had been the City Council's prac- tice over the last three years, and even though stating they were not going to re- peat that practice without paying those reserves back, an additional amount con- tinued to be spent from reserves annually. Councilmember McGehee suggested this process, if to continue indefinitely, be made more straightforward and trans- parent for the public. Councilmember Willmus referenced information provided to the City Council by Finance Commission Chair Robin Schroeder that the current balance of reserve accounts remained above the city's own mid-point goal (General, Parks, Commu- nity Development, License Center, and Communications Funds) far a midpoint goal of $3.6 million and over the maximum goal of $2.3 million. Also, during the budget process and when looking at material costs, Councilmember Willmus not- ed that while inflationary multipliers were built into the budget that may vary, on a generalized basis, opined that the City Council typically budgeted and levied beyond that inflationary point. In doing so, Councilmember Willmus noted that healthy reserve balances continued; and therefore, this provided his rationale in supporting spending down those reserves to bring them more in line with targets and goals. Councilmember Willmus clarified that he had supporting using those