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City Manager's 2005 Budget Memo Page 7 of 27 them credit for, that government services are subject to the same economy and the same inflationary pressures as other daily expenses -- such as the cost of clothing, groceries, and movies. We operate in the same economy and are not immune from the same inflationary trends. And paralleling inflation does not mean the Council cannot cut gov- ernment spending. Certainly you can. It just requires that we all be upfront about the government program or project you want to cut rather than cutting everything indirectly by failing to keep up with inflation. Hence, I offer this recommendation for Council consideration: Council Action Recommendation #2: Council motion approving [disapproving] the general budgeting principle that city property taxes should not exceed on a cumulative basis the rate of infla- tion, but barring exceptional circumstances city property taxes should parallel each year the rate of inflation so the city does not fall behind in funding equipment and facility depreciation ac- counts, does not fall behind in offering salaries that are neces- sary to attract and retain great employees, and does not fall be- hind in paying operating expenses subject to inflation that must be paid if we are to provide even the same level of city services from one year to the next. III. Recommended Budget for the City Council, Administration, and Finance. A. City Council. I recommend several changes in the budget for the City Council next year. I don't think we are in a position any longer to be a member of