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Regular City Council Meeting Monday,June 13,2011 Page 28 cut by departments, which would be close to the 10%reduction exercise previous- ly performed. City Manager Malinen concurred, noting that such a scenario would be close; but he was hopeful with a sense of agreement along those lines, that staff could present a compromise and put the City on a sustainable path for the capital needs side and adjust the levy from the operational side from 2012 on, once the City Council took care of the capital needs portion of the equation. Councilmember McGehee opined that, after the results from when the City Coun- cil asked for the 10%reduction exercise, she was now"gun shy"having found it a meaningless exercise; and whether the City went forward with a 3.4% or 4% levy increase right now, it still meant some cuts were necessary, but guaranteed $500,000 for capital funding, which seemed crucial from her perspective. Coun- cilmember McGehee suggested that City Manager Malinen do a more serious job that she perceived him having done the last time; since she went through the list and made cuts in painless ways compared to his suggestions. While willing to consider at 3.4% or 4% increase, Councilmember McGehee opined that this was a minimal start if those cuts went into the CIP. Councilmember Johnson, from a biennial point of view, opined that it was impor- tant to remember that the 3.4% increase for 2012 included a 0% for 2013; under- standing that the 3.4%would remain in place that should make it more sustainable for taxpayers, while recognizing that there could be future unknowns that were not foreseen. Councilmember Johnson opined that the plan on paper looked very sustainable for 2013 and beyond. At the request of Councilmember Willmus, Mayor Roe advised that the next por- tion of the subcommittee report would be received by the City Council and public in next weeks' agenda packet. In an effort to accommodate inflationary items in 2013, Mayor Roe moved an amendment to the original motion, seconded by Councilmember McGehee, rather than a 3.4% increase in 2013 and 0% in 2013, to increase the 2013 budget and levy by$340,000 to handle the decision packages; while retaining the capital need increase of 3.4% for twenty(20) years going forward. While willing to support the original motion, Councilmember Willmus advised that he would be voting against the motion as amended. At the request of Councilmember Pust, Finance Director Miller clarified that the $340,000 would represent an approximate 2.5%levy increase. City Manager Malinen expressed appreciation that there had been no 2012 reduc- tion for contractual obligations or to achieve a zero percent 2013 budget, meaning