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$392,000 plus contracts and the savings generated could be used for commercial tax reduction, incentives for future business growth, to fix old roads, and to plant some more shade trees in the City park. Mr. Baca further noted the City should look at subcontracting for City services as he can charge less per hour than what City workers are being paid. Mr. Baca noted that he is being screwed by the City with the amount of taxes he pays and would like to be annexed out of the City. Council Member Pederson questioned why Mr. Baca wants to be annexed out of the City to any other local entity but yet he is willing to run for City Council. Council Member Pederson further noted that the numbers Mr. Baca presented are wrong and he does not take into consideration information on business and seasonal taxpayers. 5. Presentations 5.1. Highway 371 Expansion Project Update Randy Shoen from Mathiowetz Construction updated the Council on the Highway 371 Expansion Project. Mr. Shoen noted that tarring should finish up this week. County Road 11 is now open and street lights on this bridge will be placed next week. The north leg of County Road 107 will open up this week along with the north end of the project. Mr. Shoen further noted that May 15, 2017 is the expected date for the new alignment to be opened up. Jim Park questioned the Council on the reasons why they did not file for the office of mayor in the upcoming election as this race is unopposed. Mayor Sjoblad noted that when things are running smoothly there is not much interest. Council Member Pederson stated that his past experience with Nancy Adams as mayor was a positive one and he chose to file for council member instead. Council Member Loukota explained that he is in the middle of his first term and it is still a learning opportunity for him. Council Member Akerson noted the time commitment involved with being mayor is not something he can commit to. Council Member Karr noted that some of the mayoral duties have now been shifted to the City Administrator position and that word of this has not gotten out to those who may be interested. 10.1. 2017 Preliminary Budget &Tax Rate Review Nancy Malecha informed the Council of the following changes to the 2017 preliminary budget as updated information has been received warranting these changes. • Decrease the Employer Share— Health Insurance expenditures by $8,340 as the City has been notified of a 0% increase in health insurance premiums for 2017. November 17, 2016 Staff Report Page 3