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11 As there were no further speakers, the public hearing was closed. Ms. Hamilton asked if the carryover funds will mean that departmental budgets will be reduced next year by this amount. Mr. O’Connell said not necessarily, though in some cases it could lessen in the impact for future years. Dr. Brown said that if there were savings in departments he would like to see some of it saved rather than spent, and suggested that $100,000 or $200,000 be identified in the carryover funds to put into the CIP. Mr. Taliaferro said he does not want to see us penalize operating departments because they saved money. Mr. Lynch said the year end appropriation has been a perennial concern to him as it is essentially outside of the budget process. He said a better explanation of what the carryover funds will be used for would help. Mr. O’Connell said that all of the items included in the carryover funding appropriation went through the regular budget process. Mr. Norris said one of the dangers in not allowing the carryover funds is that departments may rush to spend the amount in their budgets at the end of the fiscal year. He said he would like to see how we can balance encouraging prudence and trying to recoup savings for other needs. He said that most of the carryover requests seem reasonable, but a couple may merit further investigation. Mr. Lynch asked why the revenue for the City Market increased so much that there is a surplus, and Mr. Svetz said that gross sales for the market increased substantially. Responding to a question from Mr. Norris, Mr. O’Connell said that a reserve of 12% is kept for catastrophic needs and to maintain our bond rating. He said that amount is not used for operations. He said a city-wide reserve is proposed from the overall unexpended budget to deal with anticipated cost increases related to fuel costs and snow removal and to protect this fiscal year’s budget. Dr. Brown suggested moving the appropriation, noting that there will be time to reduce the carryover amounts if desired at the second reading. On motion by Mr. Norris, seconded by Mr. Lynch, the Year End Appropriation for Fiscal Year 2007 was offered and carried over to the next meeting for consideration. Dr. Brown clarified that the surplus will automatically go into the CIP unless Council directs otherwise and the funds will be appropriated during the budget process in the spring. Mr. O’Connell said that is correct, and noted that staff is recommending that $5 million be designated for Smith Pool redevelopment. Mr. Lynch suggested that some funds also be designated for stormwater infrastructure. He expressed concern about the technology request from the Schools, and sees no compelling argument for smart boards. He said he supports better connectivity in the Schools, but the idea of wifi makes him a little nervous. Dr. Brown said he generally agrees with Mr. Lynch that some funds should be put into technology for the Schools, but not all at once. He said Council should not micromanage how the Schools use the funds, and suggested giving them half of the amount proposed. He also supported funding for stormwater improvements.