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Truth in Taxation Hearing Minutes <br /> December 16, 1998 <br /> Page 2 <br /> 1 that reserves are at a maximum level and the City has no debt,but residents have seen a dramatic <br /> 2 increase in fees to resolve the flooding problem, and there has been a street.assessment increase. <br /> 3 He stated that he believes the City has a means to hold the line and a reduction of$49,410 is a <br /> 4 gesture to the community that the Council recognizes and takes advantage of reducing the levy <br /> 5 when the opportunity presents itself. <br /> 6 Thuesen stated he understands.this reduction is being raised at the last moment but he <br /> 7 understands the logic behind Cavanaugh's motion to amend. He stated that he does not advocate <br /> 8 reducing reserves since they are important but he believes there are currently adequate reserves. <br /> 9 With regard to the debt and TIF money coming back,he asked where it will go if the budget is <br /> 10 not reduced. Thuesen stated that the excess of the past years has to be redesignated eventually <br /> 11 and the Council either needs to be more exact to set up a fund with the parks or look at reducing <br /> 12 the budget. He stated that he believes the properyt tax levy can be reduced without putting the <br /> 13 "hurt" on citizens and keeping taxes and the budget more under control. Thuesen stated that this <br /> 14 motion makes sense and he supports it. <br /> 15 Marks noted that this is a substantial change and this is the last minute to consider such a change. <br /> He stated he understands the desire.to save.money for each resident but he also knows.that when <br /> 17 it comes to levy limits,the City has found that when they have cut back it has caused a bind in <br /> 18 the following years. He stated that he wished this option had been presented sooner to allow <br /> 19 more time for thought by the Council and the ability for staff to review the issues and make a <br /> 20 recommendation. Marks stated he is not sympathetic to the substitute motion due to those <br /> 21 reasons. <br /> 22 Cavanaugh stated he asked the Mayor about the budget process and the Council remains in that <br /> 23 process. He agreed that it is the day of the vote but that does not exclude the ability to make <br /> 24 changes. He stated that he suggested these changes knowing there would be a vote. He noted <br /> 25 there never was a "window" to make this change previously so he is taking that opportunity at <br /> 26 this time. <br /> 27 Faust stated that the Council started the budget process in August and has been discussing these . <br /> 28 issues and had ample time to either convince themselves or the public of both sides of the issue. <br /> 29 He stated he is concerned because he sees needs that arise and the past practice of good <br /> 30 stewardship of these funds has allowed the City to do what was needed. Because of the City's <br /> 31 predecessors and process followed,they were able to save the taxpayers money so when <br /> 32 problems arose they were able to utilize those funds.. Faust stated that he sees problems on the <br /> 33 horizon and does not support the motion to amend. <br /> Ranallo stated that Cavanaugh, in his comments, indicated the City has no debt but that is not <br /> q35 true since the City has about$3 million debt on the roads alone. He noted these costs were <br /> 36 bonded for and payments need to be made each year. With TIF there is a$4 million debt which <br />