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MINUTES <br />CITY COUNCIL <br />NOVEMBER 12, 1997 <br />enormous levy increase, however, felt that a.26% net levy increase was <br />very reasonable. <br />Scalze stated that she would like to see a 0% net levy increase. Fahey <br />agreed, and felt that the 0% increase should be achieved through either an <br />increase in revenues or a reduction in expenses. Fahey pointed out that the <br />City typicaliy comes in under budget each year and felt there was room in <br />the 1998 Budget to make the $3,100 adjustments. <br />The Administrator acknowledged that the first objective would be to find a <br />way to reduce expenses or increase revenues. The Administrator stated <br />that short of chan~ing some revenue assumptions, he did not have many <br />options for reducing expenses further. However, there may be some <br />options with regard to insurance premiums and dividends that the City will <br />obtain information on next month. <br />Scalze asked for a fiarther explanation on the use of future levy reduction <br />dollars. The Administrator pointed out that the debt levy would drop by <br />$256,400 in the year 2000. The City could buy down the net levy for <br />1998 and 1999 by reducing debt levies for these years. That would also <br />imply the reduction of the $256,400 in future years by the same amount if <br />we do not want to impact taxes at that point. <br />Scalze stated that she would have no problem buying down the 1998 net <br />levy in this way. Fahey stated that he would agree, but preferred to find <br />expense reductions or revenue increases to account for the $3,100 <br />reduction. <br />Morelan felt that use of future debt reductions forced taxpayers to pay for <br />services that they are not getting today. <br />Fahey pointed out that the City has had a track record of coming in under <br />budget, and suggested that the City Administrator find a way to make the <br />$3.100 reduction. <br />The Administrator pointed out that any budget surplus goes into the <br />General Capital Improvement Fund. Without a surplus, no money goes <br />into that fiznd. <br />Scalze pointed out that the City has had surpluses every year and felt that <br />1998 would be no different. Scalze stated that the situation would be <br />different if the City was looking for $25,000 to cut. However, it is only <br />$3,100 that needs to be cut. <br />2 <br />