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Regular City Council Meeting Monday, December 15, 2008 Page 24 Councilmember Roe clarified that, by deferring purchases of capital items in 2009, the City Council would not be cutting the levy by that much, unless decid- ing to not set aside $340,000 for this and future years, similar to an automatic sav- ings program. Councilmember Ihlan opined that she was suggesting both: to not add the $340,000 for capital replacement this year, and not replacing vehicles this year, attempting to slow down the roll-out schedule. City Manager Malinen recognized the goal of Councilmember Ihlan; however, noted that the City Council had just last year begun to stabilize those very funds by increasing annual deposits to be able to replace equipment and replenish the revolving fund. City Manager Malinen noted that, when including the arena debt reflected in the staff-proposed levy, City operations would actually only be in- creasing by one percent (1%) if not less; while meeting the City Council's own budgetary policy for funding capital expenditures. Mayor Klausing cautioned Councilmembers of the ramifications of deferring ve- hicle replacement for one year, compounding expenses the following year; and questioned how prudent deferral was as a long-term strategy. Mayor Klausing questioned what the "magic" was in achieving a zero percent levy increase versus a one percent (1%) levy increase, while risking the long-term health of the com- munity, particularly the City's core services. Mayor Klausing opined that this did not serve as a responsible way to address the budget and levy. Councilmember Ihlan advised that she was asking the City Council to support a zero levy increase for 2009; opined that, given the current economic situation, the City Council needed to rethink their plans and attempt to save taxpayers a little money in tough times. Ihlan moved, Pust seconded, reducing the 2009 levy by $340,000 and removing that designation in the Equipment Replacement Fund and the Vehicle Replace- ment Fund from the 2009 Budget. Further discussion included impacts of not funding that $340,000 in addition to not buying some or all of the seven items listed for 2009 replacement. City Manager Malinen noted that staff was continuing to review business prac- tices, thus his advocacy for budgeting for outcomes and the process by which structural changes were made, but in a more structured, thoughtful process, rather than attempting to do so at the last City Council meeting of the year, without de- termining overall city-wide and department-specific impacts of those actions. City Manager Malinen advised that, had this been offered to staff as an option