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Regular City Council Meeting Monday, November 24, 2008 Page 19 Councilmember Ihlan advised that she was not willing to cut staff unless staff so advised that it was necessary; but opined that everything was on the table. Councilmember Roe clarified that the state legislature maximum levy was 3.9%, rather than the 3.5% Councilmember Ihlan had indicated. Council- member Roe noted the exceptions provided to municipalities by the state legislature; and opined that it would be irresponsible for the City not to look at those exceptions and take advantage of them, avoiding placing the City in a more difficult situation to manage. Councilmember Pust, in response to public comments made by Mr. Ky- sylyczyn, noted that the reason the City Council struggled with percent- ages was because they were an employer with over 80% of their costs were personnel driven. Councilmember Pust noted that, as with any busi- ness in the state, an employer couldn't keep their business operating at 3.5% when health care and other fixed costs were over 3%. Councilmem- ber Pust opined that, with all due respect to Councilmember Ihlan, there was no way to achieve a 3.9% levy without going through the exercise and discussion, with a result in cutting staff. Councilmember Ihlan opined that, if the Council majority hadn't already built a tax increase into the budget with the sale of equipment bonds, other costs could be accommodated. Councilmember Ihlan expressed concern with the legal services discussion and potential for reducing costs through other actions; and spoke in opposition to cutting jobs, when other sacri- fices should be identified and recommended by staff. Councihnember Roe provided an update on his recommendation at the previous meeting, and subsequent discussions with staff and the City's bond counsel regarding early decertification of Tax Increment (TIF) Dis- trict No. 1; and the determination that there would no benefit in such ac- tion. At the prompting of Councilmember Roe, City Manager Malinen provided additional information on potential funding from TIF District No. 1 to the City in 2010 that could provide additional information in respect to the 2009 budget. Mayor Klausing concurred with Councilmember Pust's comments related to personnel costs and past fuel cost excesses, and the resulting inadequate funding in 2008, in addition to a series of years when asset replacement and capital improvements were deferred, resulting in a time of "catch up" in current and future budgets, resulting in increases at a rate greater than the rate of inflation.