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City Council Regular Meeting — 09/12/OS DRAFT Minutes - Page 25 Mayor Klausing suggested that, rather than setting the Preliminary Levy and Budget at 5%; it be set higher, and if additional sources were determined, the levy could be reduced. Councilmember Maschka opined that it was more prudent to set a higher preliminary figure and then reduce it; further opining that it made no sense to continue to operate the City by using it's reserves, likening it to operating financially similarly to state government, which has proven ineffective. Maschka moved, Klausing seconded, adoption of Resolution No. — 10330 entitled, "Resolution Submitting the Preliminary Property Tax Levy on Real Estate to the Ramsey County Auditor for the Fiscal Year of 2006;" establishing the 2006 Preliminary Levy at $11,435,165, representing an increase of 7.5%. Councilmember Maschka opined that by using reserves, less income would be produced annually, and that didn't seem prudent. Councilmember Maschka advocated ending that practice. Councilmember Schroeder opined that the reserve funds were set aside for the purpose of one-time costs to lower the levy. Councilmember Maschka suggested the Council may need to consider a "rainy day" fund. Further discussion included use of Tax Reduction Funds and use of interest monies; and stability of those reserve funds. John Kysylyczyn, 3083 N Victoria Mr. Kysylyczyn opined that this year's budget process was poor, and that the Council leadership was poor. Mr. Kysylyczyn suggested that staff provide comparison information specific to each department for their expenses related to the rate of inflation; as he'd suggested at a previous meeting, with no response from staff to provide the requested information. Mr. Kysylyczyn further opined that the City enjoyed a substantial, healthy, and unnecessarily high reserve fund balance. Mr. Kysylyczyn cautioned Councilmembers that their decision