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8) Council discussion of increasing the MA YOR'S FUND; City Manager Everett said the increase recommended was from $1,200 to $5,000 to establish a contingency fund for the Council. Council discussion ensued. City Attorney Schricker advised that the Charter allowed only $1,200 in the Mayor's fund. MIS: HARTNETTIRUSKIN TO LEAVE $1,200 IN THE MAYOR'S FUND AND PROVIDE $3,800 FOR COMMUNITY PROMOTION ALLOCATION BY THE COUNCIL CARRIED BY THE FOLLOWING VOICE VOTE. AYES: COUNCIL MEMBERS DAIN, CLAIRE, HARTNETT, IRA, RUSKIN AND MAYOR HOWARD NOES: COUNCIL MEMBER LEIPZIG MINUTE ORDER NO. 98-180 9) MIS: LEIPZIG/- REDUCE THE UTILITIES USERS TAX BY SO%, AND THE 2.S% THAT IS COLLECTED IN THE REMAINING YEARS BE USED TO PAY THE OUTSTANDING BONDS. Council Member Ira said he would conditionally provide a Second, but he wanted to change the motion to the amount needed. City Attorney Schricker said, "There is a Constitutional issue involved. The contract clause of the U.S. Constitution would prevent any reduction below the amounts obligated under Bond obligations. I understand that to be the intent of the Motion. The figures aren't really known, so that would have to be the limitation on any reduction." Council Member Leipzig amended his motion: MIS: LEIPZIGIIRA TO REDUCE THE UTILITY USERS TAX TO THE AMOUNT REQUIRED TO PAYOFF THE EXISTING DEBT ONLY Council Member Claire said at the time the Utilities Users Tax was passed by a very conservative Council in 1993, the City was indeed short of funding for essential programs. He said that Council Member Leipzig had earlier stated he wanted to get pot holes fixed, and he found it unfortunate that considering the current capital improvement needs, Council Member Leipzig, "would start cutting one of your major sources of funding for capital improvements. I hope that this Council understands that BUDGET STUDY SESSION MINUTE BOOK NO. 57 JULY 6,1998 MINUTES Page No. 066 PAGE 23