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City Council Regular Meeting — 09/12/OS <br />DRAFT Minutes - Page 22 <br />Finance Director Chris Miller provided opening comments and <br />reviewed the four specific items requiring Council action tonight, <br />via resolution, in adopting the Preliminary Levy and Budget for <br />2006. Mr. Miller reminded Councilmembers that the preliminary <br />budget and levy could not be increased, but only reduced prior to <br />final adoption in December. <br />Mr. Miller reviewed distinctions between levy and non-levy <br />programs when contemplating budget reductions a�dlor <br />increases; reviewed supporting documentation provided in the <br />Council packet for Council consideration; and suggestions from <br />staff through incorporation of previous Council consensus <br />themes. <br />Councilmember Schroeder expressed concern that his previous <br />budget recommendations were not included in tonight's packet; <br />alleging favoritism being shown. Councilmember Schroeder <br />reviewed several items that he had misinterpreted until he'd <br />received additional information (i.e., Park Administration and <br />elimination of leased storage at Fairview Community Center; and <br />County Road C streetscape maintenance costs). Councilmember <br />Schroeder noted that he had attempted to separate one-time costs <br />for payment from the Tax Reduction Fund to keep the Tax Levy <br />stable. <br />Mayor Klausing interpreted that staff rationalized maintenance <br />of those reserve funds in a portfolio earning an average of 5% <br />annual interest, with the interest earnings used to cover <br />obligations, thus reducing annual levy requirements. <br />Mr. Miller concurred with Mayor Klausing's interpretation. <br />Mayor Klausing opined that those interest earnings provided an <br />annual reduction of taxes by virtue of reducing the tax burden; <br />and that prior Council's had provided the benefit of using those <br />proceeds to reduce tax obligations on current taxpayers. <br />Discussion ensued regarding City General Reserve Funds; <br />interest earnings; use of reserve funds; and statutory <br />requirements and regulations. <br />to-Exceed, 2006 <br />Property Tax Levy <br />Resolution 10331 <br />Preliminary, Not- <br />to-Exceed, 2006 <br />Budget <br />Resolution 10332 <br />Preliminary, Not- <br />to-Exceed, 2006 <br />Tax Levy for <br />Bonded Debt <br />