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• <br />City Council Minutes <br />November 21, 2011 <br />Building Fund E.x~enditure <br />Page 7 <br />Mayor Dietz suggested using $250,000 from the Government Building Fund to help reduce <br />the tax rate and to pay off the public safety facility quicker in order to take the money off the <br />debt levy. <br />Mr. Simon stated it makes a lot of sense to use these funds to write-down the public safety <br />facility bond levy. The Council should consider committing for the remaining 10 years so the <br />city doesn't have to see a levy increase in a few years. <br />Mr. Simon stated that currently the expansion fee is allocated 85%to the Government <br />Building Reserve Fund and 15% to the Street Improvement Reserve Fund. He stated the <br />Street Improvement Reserve Fund is in good shape and Council may want to allocate 100% <br />of the fee to the Government Building Reserve Fund. <br />Mayor Dietz suggested that this come back at a future Council meeting. <br />Council majority was to utilize $250,000 over the next 10 years to pay down the public <br />safety debt. <br />General Fund Kererve Balance <br />• <br />Mayor Dietz further stated the General Fund Reserves are at 41.5% but city policy states it <br />could be maintained at a minimum of 40%. He suggested using the excess funds to lower <br />the tax rate by $116,000. He further stated the fund would be replenished within the month <br />because expenditures are under budget by 5%. <br />Councilmember Gumphrey stated he is not comfortable using the General Fund Reserve <br />balance and felt it would affect the city's bond rating. <br />Councilxnember Motin concurred. <br />Mr. Fortner stated it wouldn't hurt the city to use these funds and it's well within the range <br />set up in guidelines by the state auditor. <br />Council majority was to leave the fund balance at 41.5%. <br />Tax Lev~v <br />Councilmember Motin agrees it's not fair that commercial properties have a slight increase in <br />their taxes but it is the fault of the State Legislature with the Market Value Homestead Credit <br />program. He stated the Council needs to look at what it needs to service the city and he has <br />notice some cracks in service levels. <br />Councilmember Westgaard stated he is comfortable with a levy around 47.55% due to the <br />significant reduction in the levy. <br />Council majority suggested a levy target of approximately 47.55 %. <br />• <br />