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224 <br /> <br />active in the budget process and have conducted various.~ <br />studies throughout the years, most recently the report on <br />a cigarette tax. Mr. Hendrix added that the interns in the <br />Finance Department and Department of Economic Development are <br />probably the most valuable to the organization because they <br />function more as regular employees. <br /> <br /> Ms. Waters stated that she felt graduate interns provide <br />a valuable service especially given the low salary they earn. <br /> <br /> Mr. Gary O'Connell, Deputy City Manager, explained that <br />the salary of the intern in the Department of Economic <br />Development was also paid by the Charlottesville Industrial <br />Development Authority and the Water Street Parking Garage . <br />project. <br /> <br /> Mr. Vandever stated that he was inclined to eliminate <br />the intern positions and reinstate the positions next year if <br />needed° <br /> <br /> Responding to a question from MS~ wa~ers, Mr.'Hendrix~' <br />stated that staff had planned to employ a graduate student <br />from the University of Virginia to evaluate the City's anti- <br />drug efforts, but with the proposed reductions this <br />evaluation could be done in-house. <br /> <br /> Mr. Buck stated that he felt the problem with Rev. <br />Edwards' proposal to cut the capital budget was that these <br />cuts would need to be made on an ongoing basis. <br /> <br /> Ms. Water stated that she felt reductions in the range <br />of $100,000 to $150,000 could be made in the capital bUdget, <br />but she did not believe further reducti6ns could be made, <br />noting for instance that the cuts to the renovations at the <br />Corner have already been committed. <br /> <br /> Mr. Vandever stated that he would be willing to make <br />ongoing cuts to the capital budget. <br /> <br /> Mr. Buck stated that reducing the capital budget by <br />deferring repairs and reducing the contingency can result in <br />larger costs in the future. '-~ ~ _ <br /> <br /> Responding to a question from Ms. Waters, Mr. O'Connell <br />stated that the contingency fund had been in place for <br />approximately three years to help plan for future projects, <br />inflation, the bidding market and to provide some leVel of <br />flexibility. <br /> <br /> Responding to a question from Ms. Waters, Mr. Hendrix <br />stated that he felt $100,000 could be %akin out of the <br />contingency fund each year without serious impact. <br /> <br /> Mr. O'Connell stated that reducing the percentage from <br />the general fund to the capital budget below 3% could <br />negatively affect the City's bond rating. <br /> <br /> Ms. Waters stated that she felt it would be very <br />difficult to reduce the tax rate by as~much as two cents <br />without a cigarette tax. <br /> <br /> Mr. Towe recommended that the real estate tax rate be <br />reduced by two cents and the personal property tax rate be <br />reduced by five cents and further reductions in the capital <br />budget be made. <br /> <br /> Ms. Waters stated that she was interested in funding <br />affordable housing initiatives at a level of $100,000. Mr. <br />Hendrix stated that he felt CDBG revolving loan funds could <br />be used for this purpose. There was-a consensus of Council <br />to use these funds for this purpose. <br /> <br />Ms. Waters stated that she wanted to preserve the City's <br /> <br /> <br />