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most likely growth years when the City received more building permits than the budget planned for. He <br />stated that the plan check fees have dropped off as well. <br /> <br />Councilmember Strommen stated that the fees come in but it is the Council's challenge to try to estimate <br />year-to-year if the money will come in. <br /> <br />City Administrator Norman stated some of the excess revenue from permits is set aside for the following <br />year. <br /> <br />Ms. Lund clarified that there is a formula for how the monies are carded over for certain designated <br />funds and where they go. <br /> <br />Mr. Hartman stated it was alarming to hear that City raises taxes when they have extra money in the <br />bank. <br /> <br />Mayor Gamec explained having money in the bank is a necessity. He stated that taxes are collected <br />twice a year, but in the meantime everything is paid out of that. He explained that the City is actually <br />borrowing from itself to operate and the City gets caught up when the next tax revenues are collected. <br />He stated that when the City starts getting short, they have to pull out of the reserve before the budgeted <br />revenues are actually received. <br /> <br />Mr. Hartman asked if the 60% is rolled into the next budget. <br /> <br />Ms. Lund explained that is the starting point for the formula to calculate expected expenses from the <br />previous year that weren't paid for yet. <br /> <br />Mayor Gamec stated that everything is put back into service for the people. <br /> <br />Councilmember Cook stated it has been the thought that development costs money; however, he <br />explained that development drives itself. He noted that as a matter of fact, development has put in most <br />of the parks, roads, sewer and water. He noted that licenses and charges are paid for by development. <br />Councilmember Cook stated that sometimes it appears that the money is not spent, but that money is <br />usually required by developers in park fees and trail fees. He stated that money might grow over the <br />winter when nothing can be done with it, but will be spent at a later date. <br /> <br />Mayor Gamec added the State regulates many of these types of expenditures. He stated that sewer and <br />water is a separate fund that is paid for by the citizens using the services. Sewer and water is a separate <br />fund not for development of sewer and water. Development of sewer and water is a completely different <br />fund paid by developers. <br /> <br />Mayor Gamec stated he was encouraged by citizens coming to the meeting, and felt there was more input <br />regarding concem about where the dollars are going. He encouraged citizens to feel free to ask staff and <br />City Council for assistance. <br /> <br />A citizen stated he felt that residents are being taxed out of their homes, especially those on a fixed <br />income. He stated that not all citizens get the increases that City employees get. He noted he had a <br /> <br />City Council Truth in Taxation/December 5, 2005 <br /> Page 11 of 13 <br /> <br /> <br />