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MINUTES <br />CITY COUNCIL <br />NOVEMBER 30, 1993 <br />surpluses. Council discussed LaValle's recommendation <br />and the benefits that would accrue to the City by <br />retaining the filing position, funding of the Senior <br />Program and funding the MCAD membership. <br />Morelan stated that he was not in favor of taking 1993 <br />surpluses to buy down the levy. Morelan reported that <br />he would rather see the surpluses allocated to the <br />Capital Improvement Fund. <br />Hanson pointed out that through astute budgeting and <br />spending, the City may end up with a surplus in 1994. <br />Hanson and Scalze indicated their support of LaValle's <br />recommendation. <br />The City Administrator indicated that there is some <br />danger in using surpluses without cutting expenses, <br />since once surpluses are spent they're gone. The <br />Administrator reported that other cities use this <br />approach, however, and it is an option that works in <br />this budget. The Administrator indicated that he <br />appreciated Morelan's comments and pointed out that the <br />City does have capital improvement needs. However, <br />with prudent budgeting, hopefully there will be <br />surpluses again. <br />The Administrator felt that holding the budget at a <br />zero percent net levy increase shows the City is making <br />an effort to hold the line on spending. However, <br />increases in property valuations will result in <br />property tax increases. The Administrator reported <br />that he would provide explanations at the Truth in <br />Taxation Hearing. <br />LaValle, Scalze, and Hanson indicated their support for <br />the options that have been discussed. <br />The Administrator indicated that pending the outcome of <br />the Fire Relief situation, the budget document will be <br />revised as discussed this eveninq and presented at the <br />Truth in Taxation Hearing. <br />The Administrator then reviewed the Park/Recreation <br />Special Revenue Fund. <br />Scalze reported that she had some questions on this <br />Fund, but would meet with the Director and Accounting <br />Clerk at another time to discuss her questions. <br />Morelan pointed out that he previously asked for time <br />to review the City Administrator's salary scale. Based <br />on the background and salary comparisons he has <br />reviewed, Morelan felt that the scale was where it <br />should be. <br />Page 9 <br />