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Regular City Council Meeting Monday,November 26, 2018 Page 3 er's recommended budget he had a three-year phase out and the Council opted to go with two years so at that time the Council asked Mr. Miller to come back with some updated numbers to see if indeed it might make sense to stay with the City Manager recommended three-year phase out versus the more aggressive approach that the Council decided to pursue. He asked if there were any updated numbers in regard to that. Mr. Miller stated Attachment B in the Council packet has a memo that looks at how the City is trending for 2018 and shows a projected cash balance on where staff thinks the City will land in 2018 and gives an idea of where the reserve lev- els will be at. He noted the attachment is based on the trends through October 31St. There is still a margin of error at two percent. He stated right now it looks like the General Fund will be very near, if not below, the minimum reserve level that the Council-adopted policy would prescribe. He noted staff is hoping to get more updated information from the County that will help staff to provide more certainty to that by December 3rd Councilmember Willmus stated with regard to the levy, roughly $21,500,000 that is going to be proposed to be levied for next year, often times a question or con- cern arises about a split of that between residential and commercial properties. It is his understanding that typically the commercial sector in Roseville will make up approximately half of that but that fluctuates over time as the various sector's tax capacity changes so he asked Mr. Miller if he could give more detail as to that relationship and the split between residential and commercial. Mr. Miller stated right now the split is about fifty-five percent residential, forty- five percent commercial but it does fluctuate by several percentage points from year to year. Historically, it is pretty close to that. Mayor Roe stated as a follow-up to the first question, the levy increase to cover the two-year phase in of removing the City use of the reserves was about $340,000. If the City went with a three-year approach that would reduce the levy increase by approximately$113,000. Mr. Miller stated that was correct. Councilmember McGehee stated she believed the balance of 55%145% also has to do with the way the Legislature decides to set the balance. She did not know if it was possible but maybe the City could make a proposal for a reverse mortgage plan where residents would contact to get that information as well as a tax deferral program. She also thought the City should put out information for the public on rental and homeowner rebates through the State. She stated the discount is fairly significant if people are able to qualify. She thanked City Staff for holding the levy increase at 2.7%. She stated the City reserves that the Council has chosen to use over the years to balance the operating budget is something that needs atten-