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Regular City Council Meeting Monday, August 24, 2009 Page 8 Mayor Klausing expressed his understanding that fees must show a direct correla- tion between that being charged and actual cost for providing the service, and not allowing for flexibility such as found in the General Levy; and that it made sense to have those fees off to the side. Mr. Miller noted the rationale of both Councilmember Roe's and Mayor Klaus- ing's observations, advising that there was so much emphasis placed on levy- supported programs due to statutory requirements, and no such provision for per- mits/fees, and until there was more of a comfort level with the BFO process, it may be prudent to break down the various items. Councilmember Pust expressed her confusion, while attempting to remain open- minded, in how to use the information provided by staff in ranking programs and services, without additional expertise provided by various departments in those programs that are vital and/or inter-related. Mayor Klausing shared Councilmember Pust's confusion, noting that the City Council was floundering as to how to best proceed; without the historical context and tradition of a City Manager-recommended budget and the City Council's re- action to that recommendation and subsequent adjustments. Mayor Klausing noted the difficulty in the natural process previously used for apart-time City Council and citizen perspective, and reliance on the City's professional staff and priority needs. City Manager Malinen noted that the BFO process was challenging for all in- volved, and would take several months to process all expenses, even that portion identified as tax-supported. Mr. Malinen opined that it was unfortunate that the Springsted report was not available tonight; however, noted that the City Council could continue the process without that documentation at this time as they set their not-to-exceed Preliminary Levy; and that the process would come after the Springsted presentation. Mr. Malinen noted the need to address new obligations in 2010 that will require additional funding via additional tax levy, or reduction or elimination of other programs, with varying impacts and ramifications, to balance the budget. However, Mr. Malinen noted that, even without the Springsted pres- entation, there was a certain amount of base budgeting that could be determined based on 2009 levels, including additional specific information to be provided later in tonight's meeting by staff that will affect the budget. Mr. Malinen noted staff's request that Councilmembers provide staff with information on where they were most comfortable with a Preliminary, not Final, 2010 Levy percentage. Councilmember Pust interpreted City Manager Malinen's comments to mean that the City Council set the highest levy possible, without sufficient information or the promise of that information at a later date, and many unknowns (i.e., em- ployee health costs, and fuel costs).