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The changes noted above reflect only those major issues that were expressed by several Council Members, or were recurring in nature. It is acknowledged that other comments and suggestions were made, however, absent specific direction from a consensus of the Council; Staff did not feel it was appropriate to make revisions to the proposed budget. Rather it is preferred for the Council as a whole to initiate those revisions. 2003 Proposed Budget The proposed 2003 Budget is $34,802,395, a decrease of $2,787,079 or 7.4%. The decrease has resulted primarily due to a reduction in the City's debt service costs, and tax increment pay-as- you-go payments. The following table provides a summary of the proposed budget by major expense category. Personal Services includes tbe wage, benefit, and insurance costs of employees. The proposed budget for this item has increased due to increases in wage adjustments and insurance premiums. In an effort to attract and retained highly qualified employees, the City's Compensation Plan provides for an estimated cost of living adjustment (COLA) of 3%. In addition, health and dental insurance premiums charged to the City is expected to increase 25%. The increase is shared equally by the City and the employee. Supplies and Materials include office supplies, motor fuel and vehicle supplies, clothing and protective gear, street repair materials, and salt/sand purchases. A small increase is estimated for 2003 to account for general inflation effects Other Services and Charges include professional services, contractual maintenance and repair, utilities, memberships, interfund charges, and training and conferences. An increase is expected due to higher maintenance costs, higher rates for bulk water, and higher wastewater treatment costs. Capital Outlay includes both new and scheduled replacement purchases of vehicles and equipment, water meters, and infrastructure improvements. A substantial increase is budgeted due to the capital replacements of utility mains, and to implement the stormwater Phase II Plan. Debt Service includes the principal and interest paid on bonds used to fmance infrastructure improvement projects. The decrease in debt service costs will result due to the defeasance of bond issues in 2001 and 2002.