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Regular City Council Meeting Monday, September 24,2018 Page 14 Mayor Roe stated this is a clear and defined issue society has and not just in Ro- seville. He thought it required a lot of thought and a good solution that takes ad- vantage of the capabilities and capacities that are either in the system or can be created in the system. It very well might be a Roseville specific model. He would like to take part of 2019 to try to figure out what that is and have a lot of conversations to develop a business plan or model of what it would be. He would be happy to look at, potentially, even considering some kind of budget amend- ment in 2019 if the Council is ready to do that, which might involve using some reserves if the City wanted to get something started. He was not in the position at this point to support adding $85,000 to the levy to support that without all those conversations having happened. Councilmember Etten stated when the use of reserves to balance the budget was previously discussed, he suggested putting an additional $100,000 on the prelimi- nary levy to be prepared depending on the information the Council receives from Mr. Miller at the December meeting as to whether the City's reserves have been spent below that thirty-five percent. He would like to remove that piece from the levy if it was determined that the City was in a good spot for 2019 but he did not want to be backed into a corner. Councilmember McGehee asked if Councilmember Etten recommended the City go to the two-year plan now as the"not to exceed", with the understanding in De- cember if the City was above the thirty-five percent, the City would then drop to the three-year plan. Councilmember Etten stated if the year-end 2018 and projected use of reserves in 2019 looked safe, the City could then bring it back down to the three-year plan. This will give the Council some flexibility to be prepared to react if the Council is not in a spot with their reserves. Mr. Trudgeon stated as referenced in the staff report, what the City does in 2019 is not going to affect any reserve level the City will have at the end of 2018. The City does not get the tax payments until July and December. If the City levies higher, the City has less reliance on the payments but if the City finds itself to be under the thirty-five percent threshold at the end of 2018 or the first couple of months in 2019, the City will need to find other funds to transfer. He was not sure if there will be any additional information on December 3rd to make that clear decision. Councilmember Etten understood but thought the Council would have a better idea that 2018 was planning to use almost $700,000 in reserve and the City still has $400,000 plus planned for 2019 that the City might not have anything to use for 2019. So this gives the Council the opportunity. If the Council is talking about pulling from reserves, he would rather have the levy in a spot where the