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City Council Regular Meeting —11/14/OS DRAFT Minutes - Page 15 City Manager Beets noted the upcoming agenda items for the future meetings, requesting Council direction to staff on budget consensus to proceed accordingly prior to the December 5, 2005 Truth in Taxation Public Hearing; and fmal adoption at the December 19,2005 meeting. Mayor Klausing asked Finance Director Chris Miller to address the double negative impact of using reserve funds (i.e., future unseen contingencies and revenues used from interest earnings to hold down future levies); and opined the need to structurally correct the budget; and what amount of reserves would be used in City Manager Beets' "Option D" 5% levy increase budget. Finance Director Miller projected that approximately $138,642 of reserve funds would be used with Option D; and to achieve a budget not using any reserve funds, would require a 6.4% levy increase. Mayor Klausing proposed a compromise levy increase at 6%. There was no Council consensus. Councilmember Kough spoke in support of a 5%; and encouraged departments to live within their means with realistic expenditures, to provide relief to the taxpayers for at least one year. John Kysylyczyn, 3083 N Victoria Street Mr. Kysylyczyn provided two bench handouts: one entitled, "Change in Total County Revenue, County Property Taxes, and State Aid to Counties in Constant 2005 Dollars Per Capita since Pay 2002," identified as a bench handout previously provided by Commissioner Jan Parker related to Ramsey County. Mr. Kysylyczyn opined that if the County could absorb state cuts, the City could do so as well. Mr. Kysylyczyn's other bench handout provided various comparisons with other communities for per capita property taxes; Parks and Recreation expenditures; license and permit fees; and interest earnings, data referenced as retrieved from the