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Regular City Council Meeting Monday,November 13, 2017 Page 5 mercial to residential property taxpayers and potential impacts to single-family homeowners in addition to the significant school district bonds just passed. Commissioner Hodder noted that when talking about the Pavement Management Program (PMP), the commission made this recommendation along those same lines, that by making a little adjustment annually it would make for more sustain- ability as opposed to a sudden shock in the system or a one-time event. To that point, Councilmember Etten noted the rationale in the not-to-exceed levy when the city doesn't yet know what those reserves will look like by year-end, as well as the CIP to some extent, allowing for some flexibility. However, due to other factors, Councilmember Etten sought concurrence from the commission that this was a good time to take a bigger step as median valued homes would be im- pacted less making it a good time to make some of these corrections due to other factors at play this year. Commissioner Zeller noted that the rate of increase in the tax levy so far had far exceeded the annual rate of inflation over the last decade, and another 3.7% ap- plied in 2018 would improve that trend and eventually coincide with the rate of inflation for taxpayers. Councilmember McGehee noted that in the past decade the City had embarked on some capital improvements including a new fire station, six park buildings, re- cently approved a new golf clubhouse and a 3.6 million dollar per year program to repair and replace the aging water, sewer, and stormwater systems. These chang- es had resulted in an approximately 33% increase in the levy as well as a 60% in- crease in the base utility fees in about 2 years. While not discussing more back- ground, Councilmember McGehee simply stated that these actions had resulted in the large increases over inflation in the budget in the past decade. In principle, Commissioner Harold agreed that now was a good time to play catch-up, but by spreading it out over three years versus one year as recommend- ed, it aligned appropriately with approximately inflation over last year. Councilmember Etten agreed in theory as long as things remained the same; how- ever, he noted the many unknowns that could make that $250,000 recommenda- tion for 2019 unsustainable and create a larger increase for taxpayers, a great con- cern for him. Mayor Roe noted that it was worth pointing out the net impact on average single- family households in terms of the tax levy, plus the utility base rate changes at 2% even though, it was a 4.7% levy increase in 2018. Mayor Roe noted this helped to see a more complete picture than just looking at the levy as had been