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<br />and doesn't think that there is much economic development happening in this economy. He <br />asked if the City could pull money.out of that since there is not much growth happening. <br /> <br />Councilmember Strommen stated that there have been some businesses that are expanding and <br />she considers that economic growth. <br /> <br />Councilmember Look stated that he feels these companies would have expanded without the <br />EDA. He stated that he feels the City has been moving full steam ahead in planning for future <br />growth and the City hasn't been pulling back. He stated that he finds it disconcerting when <br />everyone acknowledges that there are tough times ahead, but that there is nowhere to cut. He <br />stated that businesses have been cutting back for quite a few years and have seen these tough <br />economic times coming and the City has only made minor cuts. <br /> <br />Finance Officer Lund stated that for preliminary budget, the City can adopt a higher amount, but <br />can decrease it when the final budget is adopted. She stated that it is important to note that you <br />can lower the amount, but cannot raise the levy amount at the final budget adoption. She stated <br />that this will be on the Council agenda at the September 8, 2008 meeting. <br /> <br />Mayor Gamec suggested that the City go with the 40.0776% rate with the preliminary budget <br />and see what the tax valuations are before the City decides on the final levy amount. She stated <br />that the EDA has been levying $393,375 for the past three years. She asked if the Council <br />supported reducing the EDA amount to help offset the general fund cuts that need to be made to <br />keep the levy amount lower. <br /> <br />Councilmember Dehen asked if the EDA was burning through that amount of money every year. <br /> <br />Councilmember Strommen stated that she is unsure what the fund balance is for EDA, but noted <br />that the idea in the past has been to use this money for acquiring property for redevelopment. <br /> <br />Finance Officer Lund stated that the EDA fund balance is around $900,000. <br /> <br />Councilmember Strommen stated that she thinks that is a healthy fund balance and feels that <br />some of the EDA levy funds could be used to offset the other cuts. <br /> <br />Councilmember Look stated that he would like to have staff take a look at what services in the <br />City are not absolutely necessary, especially because he feels this is what will need to happen <br />next year. <br /> <br />Councilmember Jeffrey stated that he agreed with Councilmember Look and would like staff to <br />say, if the City went with the 39.2546%, what the City would have to live without to make that <br />happen. He stated that he agrees that there will need to be some very serious changes in the <br />future and feels it would be better to start looking at this now. He stated that he doesn't want to <br />send a shockwave to staff, but he does think the City needs to look at the situation and have an <br />idea of what things would look like if times get tough. <br /> <br />City Council Work Session I Monday, August 18,2008 <br />Page 11 of 12 <br />