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MINUTES <br />CITY COUNCIL <br />NOVENIBER 29, 1994 <br />xanson pointed out that by 1996 a track record would be <br />established and the Council will know whether or not it <br />made the right decision. Hanson also pointed out that <br />interest yields may inCrease, which will provide the <br />City with more dollars. Hanson stated that while he <br />can appreciate Morelan's caution, a track record will <br />be established within a year or two. <br />Morelan asked how the City will fund street overlay <br />projects in ten years' time. <br />The Administrator pointed out that beginning in the <br />year 2000 the City's debt levy drops dramatically and <br />disappears in 2003. The Administrator did not believe <br />the City would reduce the tax levy equal to this <br />reduction. While there will likely be a decrease in <br />the levy, the City will then have an opportunity to <br />proactively levy for capital improvements. The <br />Administrator pointed out that this is a unique <br />opportunity for the City in coming years. <br />Morelan felt that the City was mortgaging the future to <br />buy down the tax levy today. Morelan stated that he <br />would hate to see the City use $100,000 over the next <br />five years to buy down the levy and then be faced with <br />some unexpected costs. Morelan did not believe the <br />result of a 0% net levy increase was worth it. Morelan <br />pointed out that not doing this results in a 1.66% net <br />levy increase, and felt that this was a reasonable <br />increase. <br />Fifield pointed out that the plan does not include any <br />debt to finance future projects. If the City has <br />unexpected project, it always has the ability to borrow <br />dollars and move the debt levy out into the year 2000. <br />Using the $20,000 to buy down the levy will not leave <br />the City without any flexibility. <br />Morelan realized that the City has access to dollars, <br />but felt this was a policy issue. Morelan stated that <br />he could not say the decision was right or wrong, only <br />that he was uncomfortable with it. <br />Scalze stated that given the recommendations of the <br />City Administrator and Fiscal Advisor, she was <br />comfortable with it, pointing out that the <br />recommendation was still a conservative one. <br />9 <br />