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Regular City Council Meeting Monday, December 21, 2009 Page 12 refund funds earmarked for this street replacement fund, it would weaken the City's posi- tion, and a policy discussion may be prudent. Mr. Miller advised that, if the final pay- ment is made in 2010, the PMP will be returned to its 2000 status. Further discussion included the status of the City's reserve funds, down between $8 - 10 million, with a fraction due to the economy and reduced interest income, and the majority from utility improvements and spending down of those reserves; and whether taxpayers would be in a better position in 2010 or 2011, based on the economic recovery, for addi- tional tax burdens. Councilmember Roe sought clarification whether the $490,000 appeared on the 2008/2009 budget summary; and whether this was an increase in what taxpayers were be- ing asked to pay. Mr. Miller responded that this internal loan had been in place for eight years and was a continuation of past budget cycles; with the same $490,000 payment applied annually throughout those years; and that this was not something contributing to this year's pro- posed increase. Councilmember Pust noted that this was an expense that the City could control, since it was an internal loan. Amendment Ihlan moved, Pust seconded, to defer the $490,000 payment for the internal loan; and to bring it up again for the 2011 budget for reconsideration; thereby reducing the proposed budget and levy by $490,000. Councilmember Ihlan spoke in support of the motion, since it was an internal transaction; and opined that it would be appropriate to defer payment for one year and thereby reduce the levy by that amount. City Manager Malinen, while recognizing the purpose of the proposed amendment, asked the City Council to hear from the City's Public Works Director Duane Schwartz on po- tential impacts to the City's street reconstruction and maintenance program. Mayor Klausing spoke in opposition to the motion; expressing his perception of the irony in Councilmember Ihlan expressing concern and frustration to increase funding for the 2010 election, when she was the one voting for the motion to eliminate funding in 2009 in an effort to balance the budget at that time. Mayor Klausing questioned whether 2011 would see the economy improving substantially; and opined that not taking action at this time only shifted the problems onto future City Councils, taxpayers and generations. Mayor Klausing further opined that the proposed amendment was not fair to the commu- nity or represented a good long-term policy.