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 14, 2006 at 3:30 p.m. Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, Valesano, Thrasher, and Stachowicz.

Absent: None

Also present were City Manager Nordeman, City Attorney Lawrence, and City Clerk/Treasurer Olson.

Visitors in attendance included: Mike Koszyk, Eric Peterson, Larry Bicigo, Tom Stachowicz, Dan Graff, David Graff, Robert Fabbri, Mark Simeoni, Gerard Valesano, and Kelly Stankewicz,

The purpose of this special meeting was to conduct a public hearing regarding the 2006-2007 annual budget hearing.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Manager Nordeman presented the highlights of his proposed budget including the following:

Early out retirement effect on the City.

The leveling off of health care cost.

Continued reduction in revenue sharing from the State.

A 1 mill increase in the tax levy earmarked for fire protection.

The 5 year Capital Spending Plan.

Cost of Living increase for employees of 4.3%.

Electric Department wages adjustments.

Water Project expenses.

Upkeep of the Riverwalk.

Electric Energy contract and the unknown Formula Rate impact on the City.

Crystal Manor Demolition or Renovation costs.

Nordeman went on to say that the budget should be amended quarterly to account for the expenditures more accurately.

Mayor Hendrickson voiced her concern with another tax increase, noting that the citizens are dealing with other increases such as electricity, water and sewer. Other Councilors echoed this concern. Mayor Hendrickson went on to say that at this time she is not comfortable with the cost of living adjustment and electric department wage adjustments proposed by the Manager’s budget. She felt the wages should be considered after the employee evaluations have been completed.

Michael Koszyk asked about the income from the Metro Act.

Tom Stachowicz asked why the Council would be un-easy about the cost of living raise. Mayor Hendrickson answered that she just wants to take her time with this decision and review the evaluations prior to any wage increase.

Councilor Thrasher seconded by Councilor Heikkinen moved to adjourn this special meeting of the City Council.

Motion carried.

Meeting was adjourned at 4:37 p.m.