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Regular City Council Meeting Monday, December 06, 2010 Page 13 Councilmember Pust opined that it was unlikely that it would change in 2011; and further opined that the reduced interest revenue made sense as well in this econo- my. Councilmember Pust questioned what the surplus monies form the License Center indicated. Mr. Miller advised that historically, due to the Center's increasing efficiencies and volume, surplus revenue had gone into other General Fund services; however both vehicle transactions and passport activity was down due to the current econ- omy. Councilmember Johnson questioned if the License Center was overstaffed; and if there was any anticipation for increased activity trending for 2011. Mr. Miller advised that repeated staffing reductions had been made over the last three (3) years, mostly through attrition, with those positions not filled. Mr. Mil- ler noted that, while 2010 may end up looking better than 2009 and while trending was moving up, it was not significant to offset revenue generation of any magni- tude at this point. Mayor Klausing asked if Councilmember Ihlan's intent with the motion was to absorb those revenue losses into the budget or address them from reserves. Councilmember Ihlan opined that she would anticipate budget reductions in other areas; and in the worst case scenario, that funds be taken from reserves. Coun- cilmember Ihlan advised that her rationale in making the motion was to avoid the assumption that if revenue projections are reduced, taxes be raised accordingly without the ability to justify that for taxpayers, when their ability to pay is de- creasing as well. Councilmember Roe questioned if Councilmember Ihlan's intent was to reduce the tax levy and budget as well. Councilmember Ihlan responded affirmatively unless it was impossible to fund essential services and after other strategies had been considered; at which point she expected staff to return for Council authorization to use reserves. Mayor Klausing spoke in opposition to the motion; supporting staff's recommen- dations based on their observations and projections, noting their explanations for their recommended budget and levy. Mayor Klausing expressed his preference that if Councilmembers were looking for specific budget and levy cuts, they had already addressed them at previous meetings. Councilmember Roe recognized the concern in replacing other sources of revenue with other revenue in this particular area; but clarified that the recommended budget was essentially maintaining the 2010 budget to preserve essential services