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Mayor's September 3 Proposal The numbers in the proposal the Mayor handed out at the September 3 special meeting are different from staff 's numbers for one reason: The Mayor has EXCLUDED from his 2002 and 2003 levy comparison the money the city must pay to bondholders as interest and principal payments on the city's debt. In comparing the city's 2002 tax levy with the proposed 2003 levy, staff INCLUDED these debt service payments to bondholders. These payments must be made or the City would default on its debt. These interest and principal payments are made witYi tax levy dollars. Hence, staff INCLUDED these payments as part of our tax levy that the city has to make to pay off its debts. Prior City Councils INCLUDED these debt payments, too, in the levy amount. To remain consistent from year-to-year in our accounting and budgeting, and to get an accurate, total picture of the tax impact on our property owners, ALL tax levies should be looked at - INCLUDING that portion of the overall t� levy that goes to pay interest and principal on the city's debts. That is what staff has recommended and that is what the Council approved on August 19. To EXCLUDE debt payments from a comparison of the 2002 and 2003 tax levies, as the Mayor does, is to present only part of the picture. Since the city's overall tax levy must be sufiicient to enable the city to stay current on its debt payments, staff recommends that these debt payments be INCLUDED in any comparison of levy amounts from year to year. Benchmark Data Back on August 19�, and on September 4�, staff made a series of inquiries with other cities with similar populations to ascertain their proposed levy increases for 2003. It is acknowledged that it is difiicult to fully compare cities' levy increases, as their needs and service levels may vary, but at the very least it provides a baseline comparison. The following table provides a summary of cities that were polled, compared to Roseville: �