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Councilman Petersen moved to retain $55,000 in Equipment Replacement Fund, <br />seconded by Councilman Weymouth. It was questioned whether balance remaining <br />would leave enough leeway even though Fire Engine request had been deleted. Auditor - <br />Accountant warned of higher costs in replacing equipment and personnel efficiency <br />reduced if this fund cut too low. Council noted these facts but of fact also that <br />tax rate must be reduced. Motion lost on roll call vote, Councilmen Arnett, <br />Henderson, Keckley, Rhodes and Mayor Bury voting no, Councilmen Petersen and <br />Weymouth voting yes. <br />Councilman Henderson moved that $55,000 which had been deleted from Equipment <br />Replacement Fund be transferred to the General Fund, seconded by Councilman <br />Rhodes and carried on roll call vote, Councilmen Petersen and Weymouth <br />voting no. <br />Councilman Arnett moved to transfer $181,800, the amount of savings which had <br />been approved for reducing Sales Tax Capital Improvement Fund, to the General <br />Fund for purpose of offsetting tax rate increase, seconded by Councilman <br />Keckley, and carried on roll call vote, Councilmen Arnett, Henderson, Keckley, <br />and Rhodes voting yes, Councilmen Petersen, Weymouth and Mayor Bury voting no. <br />Councilman Henderson asked that Council re -consider the levying of a Utility <br />Tax and the anticipated revenue which could be expected, citing her opinions <br />why this might be more equitable in spreading tax burden on community. Council <br />discussed this consideration in detail on various viewpoints both pro and con <br />and again noted fact new legislation proposed might result in State preempting <br />this type of tax. Councilman Henderson moved that Staff be instructed to <br />implement the Utility Tax, to be effective as proposed in the City Manager's <br />Budget recommendation, and include the revenue anticipated, seconded by <br />Councilman Rhodes, and lost on roll call vote, Councilmen Arnett, Keckley, <br />Petersen, Weymouth and Mayor Bury voting no, Councilmen Henderson, and Rhodes <br />voting yes. <br />Final discussion held concerning cuts in Budget which had been made at this <br />point some of which reductions expected to be replenished through personnel <br />reorganization, transfers ordered in various accounts, and anticipated <br />reduction of tax rate increase which had been first proposed. <br />Councilman Henderson moved to adjourn, seconded by Councilman Petersen and <br />carried. Meeting adjourned at 3:15 P.M, <br />MARIAN McCRINDLE, City Clerk <br />