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8 Mr. Lynch said he thinks we can get to 94 cents and 93 cent further down the road. He said he agrees that the CIP is flush. He thinks we can reduce the Strategic Initiatives by $500,000 per year; reduce $1 million for indoor pools, Tonsler and Carver, and reduce funds for laptops and video cameras for the police. He said the rate could be reduced 1 cent by reducing City salaries as the 4% increase plus market adjustments really total a 5.5% increase. He proposed a 3% increase and keeping the rest of the proposed benefits. He said he thinks the rate can be lowered another cent by eliminating the EMS proposal. He said we should work with CARS to reduce response time. He suggested taking half of the money and setting it aside. He said it could be used to get more medics and get a couple of firefighters EMS certified. He said $250,000 could be used to beef up our own service and train all firefighters, and provide $250,000 to CARS. He said CARS has had 24-26 minute response times since 1997. He said the urgency about the situation now is puzzling to him. He said if we get lucky with the State or County we may be able to reduce the rate another cent. Ms. Hamilton said she disagrees with the specifics mentioned by Mr. Lynch of where to cut, but said she would like to strive for 2 to 3 cents more off the tax rate. Mr. Norris said he agrees there is more wiggle room in the CIP. He reiterated his position that he would like to see us target the cost savings toward expanding the tax rebate program. Mr. Taliaferro asked the City Manager to talk about the issue of reducing one- time funding in the CIP. Mr. O’Connell said the actual reduction in projects depends on the individual projects. He said some projects are bondable and others have been funded with year-end surplus funds which is one-time money. He noted that Tonsler Recreation Center is not a functional building. Ms. Hamilton suggested that Council address the principle of further reducing the tax rate tonight and work out the details at the work session. Dr. Brown said he agrees with at least a 2 cent reduction and working out the details at the work session. He noted that reducing projects in the CIP that were funded with surplus funds, including CAHIP and Strategic Initiatives, would leave a hole in next year’s budget. He said he would like to find a way to decrease the tax rate without taking away from Schools. He asked Councilors to communicate further with the City Manager before the Wednesday work session. Mr. Lynch said he agrees with not affecting the School’s budget. He said he can identify $2.5 million in the CIP to cut in total over five years. He said he is confident we will run a surplus next year. He said he agrees we need to do a deferral program. He said the Governor is working on a homestead exemption that will allow 20% of residential assessments to be deducted, and we should have that exemption in a couple of years. He said that before then it is incumbent on us to try to get the rate as low as we can. Dr. Brown asked if the tax levy ordinance can be amended on second reading, and Mr. Brown said yes. Mr. O’Connell said that another decision to be made is what to cut out of this year’s budget because for every cent the rate is reduced, half must come out of the current budget year. ORDINANCE : ANNUAL TAX LEVY Mr. Lynch made a motion to set the real estate tax rate at 94 cents, and to keep all others the same. Ms. Hamilton seconded the motion, saying Council will make a valiant effort to reduce the rate by this amount, and the Annual Tax Levy ordinance was carried th over to the April 10 meeting for consideration. APPROPRIATION : ANNUAL BUDGET APPROPRIATION