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Regular City Council Meeting Monday, December 15, 2008 Page 26 Councilmember Ihlan advised that her other suggestions for further reductions were all related to personnel, including reducing cost of living adjustments (COLA) for non-union employees; temporary suspension of step increases for non-union employees; phasing of COLA increases over the year; and the need to recognize that the City couldn't afford raises in 2009. Councilmember Ihlan opined that this appeared to be the only other area for reduction if the reduction in equipment and vehicles was not supported by Councilmembers. Councilmember Ihlan further opined, related to the H1ZA Budget, that there should be a zero levy increase for the HRA as well, allowing them to work on their cash reserve carryover of $257,000. Further discussion included the percentage of difference to the average home- owner in a 3.4% versus 0% levy increase and staff's estimate of approximately $.SO per month depending on home valuations, or an estimated savings of roughly $45 annual from the staff-recommended budget as reduced. Councilmember Ihlan opined that such estimates were impossible to determine due to valuation disparities for homeowners. Councilmember Ihlan further opined that the City Council should do their best to not increase the levy; and ap- pealed to her fellow Councilmembers to attempt this not unreasonable effort; opining that it would mean so much to those who were really struggling, and that it was the City Council's responsibility since they were spending other people's money. Mayor Klausing noted that, while the City Council could absolutely achieve a zero percent levy, opined that since they were indeed spending other people's money, the City Council needed to do what was best for the long-term viability and health of the community; opining that the City Council would not be doing their duty for taxpayers to not position them in the long-term to replace ve- hicles and maintain core services. Mayor Klausing opined that he was comfort- able with and suggested moving the resolution ^to adopt the final tax levy as rec- ommended by staff. Councilmember Willmus sought clarification from Mr. Miller regarding impacts of utilizing reserve funds for vehicle and equipment purchases. Councilmember Pust noted the difficulty in how the budgets were presented and individual abilities to clearly understand specific budget reserves. Councilmem- ber Pust opined that the economy was only going to get worse, and the City Council may need to rely on those reserves in 2010, rather than planned replace- ment based on a schedule. Mayor Klausing clarified that the reserves were not contingency funds for unex- pected events, but served as part of the normal budgeting process.