CitySSM   It’s being recommended that city council make use of reserve and surplus funds in order to bring the municipal tax levy closer to the rate of inflation.  Council will be sitting down tomorrow to finalize the budget and a report from City Finance Commissioner Shelley Schell says council is faced with a 4.93% increase prior to making use of reserve and surplus funds.  That figure takes into account the 1.2-million dollars in operational savings already identified and approved in principle and an over 900-thousand dollar increase in the District Social Services Administration Board levy the city will face.  The report identifies 2.3-million dollars in total by using two reserve funds and estimated surplus funds.  That would reduce the tax levy to around 2.63%.  Schell’s report also states that staff does not recommend using reserves for levy reduction on an ongoing basis, but there’s a need this year due to the city’s current economics and council’s desire to lower the levy.