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Finance Director Lund verified that the unions received the following: AFSCME: 2% January 1 and 1% July 1 and LELS 2% January 1 and 2% July 1st for year 2014. Finance Director Lund stated this is preliminary for consideration by the Council but the union contracts have been approved and need to stay in the budget. Councilmember Tossey stated he would support a .5% decrease for non -union employees instead of paying a higher increase than union employees received. City Administrator Ulrich stated the AFSCME is 2% in January and 1% in July, or 2.5%; and, LELS was 2% January 1st and 2% July lst which averages 3%. Councilmember Tossey stated there could be savings by reducing non -union increases. He asked why, in September, the Council debated using Anoka County HRA funds to off -set the Ramsey HRA but there is still not an answer. Finance Director Lund stated the Council was informed that Anoka County HRA funds could be used but decided to not use it and save it for other housing activity or a project. She indicated Anoka County had approved it, but Ramsey had to submit its budget. Councilmember Tossey referenced about the comment on the lack of transparency when using HRA funding to pay for certain EDA things, and stated he would argue that franchise fees result in the same, lack of transparency. He felt invoking a franchise fee was an attempt to get around the levy limit. Councilmember Kuzma stated he would like to talk about bonding for road reconstruction. Finance Director Lund stated it is too late to bond for projects in 2013 but bonding can be done for 2014 projects. Since it would be a non -qualified bond and the process takes 90 days to complete, she would recommend it be held off to 2014. Mayor Strommen asked when the Council will receive revised road construction costs so that discussion can be tackled. She noted it is clear the cost for road reconstruction will not fit into the General Fund levy without significant decreases elsewhere. Mayor Strommen stated all agree the roads need to be fixed so the decision is the level of projects, pace of projects, and how they will be funded. City Engineer Westby stated information on road costs, funding options, and associated timelines will be presented at the August 13, 2013, Work Session. Finance Director Lund explained how levy limits are determined, noting the limit is 3% of last year's levy amount. Councilmember Tossey asked how much additional revenue will be received by the TIF #2 District coming off line and asked why that should count towards levy limits since that money could not be accessed last year. City Council Work Session / July 23, 2013 Page 3 of 7