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Session 1923 June 7, 2004 increased, and with the understanding that the City does not use its operating reserve funds as part of the budget. He noted it was a job well done by the City Manager. The budget was accepted as amended, unanimously. Council Response to Loop Merchant Form Letters The City Manager said the last item for consideration tonight was response to letters received from The Loop, as suggested by Mr. Wagner. Mr. Wagner said his reaction to these letters was that they were a request to act on a matter which had not come before the Council for public discussion, and secondly, they asked for a binding moratorium on developing something on the free parking lot in The Loop north of Delmar Boulevard. He noted that Council would not act rashly on a matter, as suggested in the letter, particularly on something that is not true, and he stated that he would not agree to pass a 25-year moratorium on anything, especially upon something not yet discussed, and make it binding on future Councils. He regarded their suggestion as "way out of line." He drafted a letter of response, which was amended by the Mayor, and he now sought discussion on that letter. Copies of the letter amended by the Mayor were then passed to the Council for review. One of the differences noted was that Mr. Wagner, in his letter, pointed out that The Loop association was holding a false premise, but this statement was deleted from the Mayor's draft. Mr. Wagner wants that statement put back in, because their premise is false; no Councilmembers advocated development, as stated in their letter, and the remainder of their letter flows from this false premise. Ms. Brot agreed. Ms. Colquitt disagreed, because she had understood that some Councilmembers had met with developers and that there was an actual plan shown to some Councilmembers and to some members of The Loop association. She advocated communicating with people from The Loop prior to sending a letter of response. Mayor Adams said he removed Mr. Wagner's statement because The Loop business owners who met with developers relayed information to the Mayor that plans had been shared with some members of the Council, who supported the plans. Mayor Adams said developers understood that some Councilmembers were supportive of the plan. The Loop community acted on this information. Mr. Wagner responded that the Council is not responsible for what developers say, but for The Loop owners to state as a fact "that certain Councilmembers advocate this" is a false statement and should be squelched. He doubted that any Councilmember actually does support the plan, and pointed out that there is no plan. What developers shared were sketches and concepts that could become a plan. He asserted the need to affirm that this is an untrue rumor, not fact. That is why he wants his original statement restored to the draft letter. Then Mr. Wagner questioned a statement in the third paragraph of the Mayor's draft letter which said, "This Council and I hope future owners would not make hasty decisions" which is a variation of Mr. Wagner's original sentence. Mr. Wagner said Page 6