A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Monday, August 11, 2003 at 2:30 p. m. Central Time.

Present: Mayor Sabo, Councilors Hendrickson, Thrasher, Benda and Koszyk.

Also present were City Manager Nordeman, City Attorney Lawrence, City Clerk/Treasurer Olson, a contingent of City employees, the press, and various citizens.

The purpose of this special meeting was to conduct the Annual Budget Hearing for the 2003 – 2004 Fiscal Year Budget.

Mayor Sabo convened the meeting at 2:30 p.m.

City Manager Nordeman presented the budget to the Council, highlighting several areas that will have an impact on the revenues and expenditures of the City for the next fiscal year. Manager Nordeman answered various questions from the Councilors regarding the budget. There were no questions from the audience.

Councilor Koszyk seconded by Councilor Benda moved to adopt the 2003 – 2004 Fiscal Year Budget for the City of Crystal Falls in the amount of $4,046,075.00 as presented by City Manager Nordeman, which includes a pay increase of 1.9% for the employees with an additional 1% allowance for merit increases.

Motion carried.

Councilor Hendrickson seconded by Councilor Koszyk to adopt the following resolution:

WHEREAS, said budget, after due notice and public hearing has been adopted; and

WHEREAS, pursuant to said budget is necessary that FOUR MILLION FORTY SIX THOUSAND, SEVENTY FIVE DOLLARS ($4,046,075) has been determined to be necessary to defray the expenditures and liabilities of the City of Crystal Falls for the fiscal year of 2003 - 2004, the following sums shall be and hereby are appropriated:

General ---------------------------------------$1,491,375.00

Major Street-----------------------------------$ 166,000.00

Local Street Fund------------------------------$ 50,000.00

Theatre/Museum/Contemporary Center-------------$ 6,000.00

Television-------------------------------------$ 179,000.00

Electric---------------------------------------$1,463,000.00

Sewer------------------------------------------$ 352,000.00

Water------------------------------------------$ 333,000.00

Trust & Agency---------------------------------$ 1,000.00

Electric Reserve & Contingency-----------------$ 2,500.00

Perpetual Care Fund----------------------------$ 2,200.00

_____________

$4,046,075.00

Resolution Adopted.

Councilor Benda seconded by Councilor Thrasher moved to adopt the following tax levy resolution:

WHEREAS, in accordance with Chapter V of the Charter of the City of Crystal Falls, the City Manager has caused to be prepared a budget which was presented to the Council; and

WHEREAS, said budget, after due notice and public hearing has been adopted; and

WHEREAS, pursuant to said budget it is necessary that TWO HUNDRED NINETY THOUSAND DOLLARS for General Operation be raised by taxation; and

WHEREAS, the Taxable Valuation for the City of Crystal Falls is SEVENTEEN MILLION, EIGHT HUNDRED EIGHTY NINE THOUSAND, THREE HUNDRED TWENTY ONE DOLLARS ($17,889,321); now, therefore,

BE IT RESOLVED that the City of Crystal Falls levy 16.50 mills to be assessed against all real and personal property located in the City of the aforesaid municipal purposes.

Meeting adjourned at 3:25 p.m.