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She announced that Finance will introduce a $28.4 million debt issuance at the Dec. 2nd Council <br /> meeting. There will be one-year notes to pay for new projects as well as a continuation of debt <br /> from prior years. These are for projects with a useful life of ten years or more. <br /> She spoke about municipal capital leasing which is used for projects with a useful life of ten <br /> years or less. <br /> Councilman Litten expressed agreement with the City's philosophy on debt, noting that the City <br /> has millage dedicated to the payment of debt that other cities do not have. He also noted that <br /> interest rates are at an all-time low and that if a project is to be enjoyed for 20 years that it is OK <br /> to spend 20 years paying for it. It was clarified that no General Fund dollars pay for debt. <br /> Councilman Bullock expressed interest in investing in electric and/or clean fuel vehicles to save <br /> on diesel costs and other expenses in the long-term. <br /> Director Pae directed the Committee to additional items in the executive summary and discussed <br /> the City's big picture financial position. <br /> Chairman O'Malley noted that this overview corresponds to the budget ordinances introduced at <br /> tonight's General Meeting. <br /> Mayor Summers concluded that this is a stretch budget due to the front loading of the 3% <br /> increase. He noted that the budget remains balanced and that the City can consciously do this <br /> because of its stable position. This year's budget does not focus on building reserves. Also, the <br /> reserves are typically encumbered at the end of the year once all other revenues are in place. <br /> Finance Committee adjourned at 7:26 p.m. <br /> 4 <br />