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City Council Regular Meeting — 09/12/OS <br />DRAFT Minutes - Page 23 <br />Mayor Klausing directed staff to include Councilmember <br />Schroeder's referenced memorandum as a Bench Handout made <br />available on line for public information and future reference. <br />Mr. Miller reviewed the original intent for creation of the Tax <br />Reduction Fund (TRF) in 1998 as a permanent Endowment <br />Fund, set aside with the specific intent that only the interest <br />earnings be used. Mr. Miller assured Councilmembers and the <br />public that the City's Reserve Funds were duly reflected on the <br />books and the City was not in violation of State Auditor <br />guidelines. <br />Councilmember Schroeder disagreed with Mr. Miller's <br />interpretation of City reserve funds. <br />Mayor Klausing, for the record, reiterated his recommended levy <br />increase at 9% in order to meet necessary funding levels. Mayor <br />Klausing reviewed quality of life issues; new obligations for <br />2006 in the amount of $733,000 (i.e., additional gymnasium <br />costs; Police Dispatch services; and inflationary wage factors); <br />lack of support from the Council or community in raising <br />revenues to support additional obligations, creating the need for <br />additional reductions in programs a�dlaz` services. <br />Mayor Klausing questioned how financially responsible it was <br />for the Council to continue to dip into reserves and spend money <br />provided by past Councils to cushion necessary funding, while <br />continuing to spend at current levels and only increasing the levy <br />by 5%. Mayor Klausing again distinguished between levy and <br />non-levy expense items (i.e., community survey). <br />Councilmember Ihlan expressed concern that the Council was <br />attempting this discussion without a full Council present, noting <br />that Councilmember Maschka had yet to arrive at the meeting. <br />Councilmember Ihlan noted that, in approaching the preliminary <br />levy and budget amounts, she'd used the City Manager's <br />recommendations as detailed on the attached spreadsheet, <br />beginning at 5%; and attempting to determine those items that <br />would be paid for in ways other than through the tax levy. <br />Councilmember Ihlan opined her support of using City reserves <br />