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December 4,2012 Page 3 of 4 Motion by Councilmember Burg, seconded by Councilmember Jacobsen to close the Public Hearing. 5 Ayes,0 Nays-Motion Carried The Public Hearing was closed at 7:03 p.m. Councilmember Burg requested further information on the "transfers out" terminology. Finance Director Maiers stated this term refers to funds being transferred out of the General Fund. Councilmember Burg indicated the Council has worked diligently to keep the levy flat. She commended both the Council and Staff for achieving this goal. Councilmember Jacobsen stated 58% of the City's revenues come from property taxes. He questioned how the City ranked based on this percentage. City Manager Lotter explained the City was on the lower side at this rate. The City had a number of other non-tax revenues that assisted in covering City expenses. Councilmember Burg appreciated the compensation question from Mr. Moses. She indicated the Council discussed this matter in detail. She requested further comment from Staff on this matter. City Manager Lotter discussed the compensation plan with the Council noting non- union employees' wages were targeted to be the midpoint when reflected against comparable cities. He stated this plan was completed 10 years ago. Councilmember Burg did not feel that City employees' salaries were bloated and was pleased with the rates at this time. Mayor Jacobsen questioned if the wage rates should be reevaluated, as this plan was completed 10 years ago. Councilmember Burg stated a reevaluation would provide the Council with an update of the information to see where rates stand. She reported when this evaluation was conducted 10 years ago, several employees' wages were increased. Councilmember Bauman commented six department heads were paid a total of $650,000 in salaries. She discussed the harmful practice of public employee turnaround. She stated this frequent turnaround was driving up salaries for public employees. This was not the case with the private sector as raises were only given when there was a profit. She explained wages in the private sector were decreasing by $4,000 annually. She encouraged the Council to look at what would be a "fair wage" versus assuming a 2% increase each and every year, plus step increases. She advised this would not be sustainable going into the future. She indicated everyone was struggling at this time and felt the 1% COLA with no step increases was fair given the economic climate. Councilmember Bauman requested further information from staff on the tax levy per capita. City Manager Lotter stated New Brighton was the eighth lowest in 2009 per capita when compared to cities of comparable size. He indicated New Brighton was proud of this fact and was running quite efficiently.