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Regular City Council Meeting Monday, December 5, 2016 Page 20 cant penalties applied if found otirt of compliance, possibly up to $10,000 per day. Mr. Trudgeon noted that the unions were predominantly male, and non-union em- ployees predominantly female, further exacerbating the equity issue, and noted the challenges in addressing those equity issues. While understanding the City Council's need to moderate the budget, Mr. Trudgeon asked that they consider at a minimum a 2.5% COLA for 2017 if unable to support his recommended 2.75% in arder to stay in part with other peer cities. From a process point of view with the motion currently on the table, Mayor Roe reviewed options for City Council consideration: propose motions to amend this motion and see how they're voted, or to vote on this motion as is and then follow- up with subsequent motions accordingly. Regarding City Manager Trudgeon's comments, Councilmember McGehee opined that it was obviously demonstrable that the adopted policy was not being supported or followed by the City Council. Mayor Roe noted that he had historically not supported using reserves to cover operating costs, but had agreed that using reserves for some one-time costs made sense. However, Mayor Roe admitted that his thinking had also evolved during those years, and two things were pushing that: one the carry forward from 2015 and 2016 dollars representing levied dollars collected, and therefore leading him to feel they were appropriate to use in situations where a projected annual levy in- crease in a particular year was more notable than desired. Mayor Roe noted that the city at one time had a Taxpayer Relief Fund established for that very purpose to bank those unanticipated windfalls, earn interest on them at a time when there was noticeable interest to be earned, and then use that inter- est to pay down future levy increases. However, Mayor Roe noted that, in 2007 of 2008, the City Council at that time had decided to roll that fund into the Gen- eral Fund and eliminate using it that way based on interest earnings being so neg- ligible. Therefore, Mayar Roe noted that the General Fund had benefited since then, and money collected in it had been levied, making him believe it was appro- priate to provide some relief to taxpayers going into 2017. Mayor Roe stated that his primary reasoning was in recognizing fee increases in the utility side, and his attempt to look at ways to avoid, reduce or control those fees. Mayor Roe thanked Finance Director Miller for providing the additional back-up information and staff's basis for the recommended changes; but stated that he also wanted to provide the rationale for his personal thinking and his interest in providing some levy reduction for 2017 since the dollars were available to do so. Mayor Roe stated there was an obvious need to annually review past income and its sources and be realistic about the impact, and then act accordingly in upcoming years. By winding down some of the increases proposed as part of the CIP fund- ing process that were put in place through levy increases in 2011 and 2012, ;i a� :f � ; ;� '; I