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Mr. Ulrich stated if the City Council supports a slight increase in levy, it is reasonable to replace <br />one -time money (tax increment) that will not be available in 2015. <br />Mayor Strommen stated there is a $1.7 million gap in funding the annual amount for road <br />reconstruction but it will be a larger gap in 2015 because there will not be a TIF base since <br />District 4 expires in 2014. <br />Finance Director Lund stated that is correct because TIF District 4 decertifies at the end of 2014. <br />She explained that with TIF, the City receives about 90 cents on the dollar and without TIF, the <br />City receives about 37 cents on the dollar. <br />Councilmember Tossey asked if the budget includes an increase for non -union employees. <br />City Administrator Ulrich stated it includes a 2.5% increase and that matter will be considered by <br />the Personnel Committee for recommendation to the City Council. <br />Finance Director Lund reviewed the percentage of wage increases that are included in the <br />proposed budget. <br />NOTE: Additional discussion on this item occurred following Case 2.02. <br />2.02: Consideration of Long -Term Street Maintenance Program (SMP) Cost and Funding <br />Options <br />City Engineer Westby presented the Long -Term Street Maintenance Program (SMP), 2013 <br />estimated costs, and funding options as detailed in the staff report. He noted the 2009 costs were <br />higher because it assumed roads have a 40 -year life span and would then have to be <br />reconstructed. He explained the costs estimated in 2013 are based on a Pavement Surface <br />Evaluation and Rating (PACER) of 7, assume a 60 -year life span, and reflect regular <br />maintenance. <br />Councilmember LeTourneau stated the City Council should consider a total of the first five years <br />and then another total from 2019 to 2023. <br />City Engineer Westby stated that can be considered but he had suit to show a <br />comparison between the 2009 and 2013 assumptions. <br />Councilmember Tossey asked why MSA is being included. <br />City Engineer Westby explained that the 2009 estimate assumed MSA roads would be <br />maintained and reconstructed through the MSA allocation; however, those funds are being used <br />to pay back debt and not available. <br />Councilmember LeTourneau asked to what is the MSA debt attributable. <br />City Council Work Session / September 3, 2013 <br />Page 2of12 <br />