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City Council Regular Meeting —� 0110145 I�f�,�1F"I' ��i�11�� - P��• 1= Councilmember Maschka reiterated his opinion that to realistically make structural budget corrections, it would be necessary to eliminate employees, no matter how unpleasant the task. Councilmember Maschka further opined that the consulting fees were a non-issue, as they came out of Economic Development Department funds and were fee-based. Mayor Klausing suggested that the new information and discussion be considered by Councilmembers for future reference and further discussion. Additional discussion included percentage of reserves in Option D; clarification by Mr. Miller of actual General Fund reserves ($10.5 Million, not $34 Million); and staffs concern for continual drawing down of reserves over the last several years and the wrong signal being sent to lending and bonding institutions in continuing to draw down those reserves. Mayor Klausing requested clarification as to the estimated dollar difference for a$200,000 valued home from a 7.5% to a 5.5% levy increase. Finance Director Miller estimated it would be a difference of approximately $10.00 annually for each home. Councilmember Maschka clarified that the $34 Million in reserves discussed included $12 Million in the Pavement Improvement Program (PMP) for annual maintenance of the City's infrastructure; and opined that it should not be addressed, and brought actual reserves in line. Councilmember Ihlan opined the need for long-term strategic planning; noting that Option D provided a workable alternative for 2006, and could allow the Council to concentrate on depreciation and long-term issues. 11. Discuss and Give Staff Direction regarding a City Council Policy for Out-of-State Travel by Councilmembers City Manager Beets provided recent legislation language requiring all cities to adopt a Council Travel Policy; and a model policy provided and recommended by the League of Minnesota City Council Policy Out-of-State Travel