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Regular City Council Meeting Monday, December 06, 2010 Page 10 Councilmember Pust clarified that the City historically borrowed among its funds, and that it was not a unique situation to the economic downturn of the last few years. Mr. Miller advised that the internal borrowing was done some in the past, but not consistently. Discussion included the need for internal borrowing to meet monthly expenses while major revenue from tax payments to Ramsey County was only processed twice annually; guidelines from the State Auditor's Office for City's to retain at least a 25% level of reserves, based on the strength of the City's General Fund, cash flow strength and general guidelines, while deferring that to local decision making based on local conditions; and the City's Reserve Policy designating a 50% reserve level. Further discussion included addressing citizen concerns about the City having those reserves, while considering other issues in that context, including a periodic review of that policy based on economic circumstances; and impacts to the City's bond rating. Councilmember Roe noted that it was appropriate to have this discussion now be- fore going into budget discussions; but also could be periodically addressed in the future as well. No action taken. b. Adopt the Final 2011 Tax Levy and Budget Councilmember Ihlan asked that the City Council work through the new tax levy dollars tentatively earmarked in the RCA dated December 6, 2010, page 1 and 2, lines 22 33, to determine if there were other options rather than tax increases. Councilmember Ihlan sought clarification that the proposed 2011 budget was es- sentially the 2010 budget with some new obligations as outlined, with few rec- ommendations for decreased funding. Mr. Miller concurred that that was a fair assumption in a general sense, noting that some employee positions had changed, and that other existing positions were recommended to remain vacant and unfunded; and that some program cuts were increased in 2011 from 2010. Councilmember Ihlan sought a summary of those positions remaining unfunded or vacant. Mr. Miller advised that there were several positions in public safety; and existing police officer; and the Assistant Fire Chief position; in addition to one down- graded position and one elimination in the Community Development Department.