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am confident that council/staff can identify an alternative funding source in this amount. 4. The council should not approve any tax levy for the HRA this year. The HRA can operate on its reserve funds for 2008. I would propose that the council reconsider the role and structure of the HRA, and consider transforming the current HRA board into a citizen advisory council on housing issues, with the city council acting as the HRA. In addition to reducing the proposed overall levy increase by 1.9% A zero levy for the HRA would actually amount to a property tax cut of approximately $155,750 or 1.575% to offset the general levy increase. Implementing these suggestions would reduce the overall levy increase to, as follows: Proposed City Levy Increase $1,200,000 10.2% Proposed HRA Lew Increase $ 194,250 1 9% Total Proposed Levy Increase $1,394,250 12.1% Suggested Reductions from Proposed City Levy Increase: Capital Replacements $ 200,000 ii1fo17iiatiori Systems $ 50 vv0 Contingency/IR2025 $ 80,000 General Facility Repairs/Pathways $ 25 000 . Total Suggested Reductions $ 355,000 Proposed City Levy Increase $1,200,000 10.2% Less Suggested Reductions $ 355,000 Suggested Reductions to Total Proposed Levy Increase: Suggested Reduced City Levy Increase $ 845,000 8.45% Suggested Reduced HRA Levy Increase $ 0 0% Tax Reduction From Zero HRA Lew $ (155,750) (1 575%) Suggested Reduced Total Levy Increase $ 689,250 6.89% These budget reductions still result in a budget and levy growing faster than the rate of inflation, but I would note that the suggested reduced budget includes some modest increased services to residents, in the form of 3 new or upgraded staff positions (2 part time community service officers in the police department, and the upgrade of the fire department's administrative assistant position from part time to full time). The proposed reduced budget/levy also still includes a 3.5% cost of living increase for current staff. 2