A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Wednesday, August 22, 2001 at 8:00 a.m. Central Time.

Present: Mayor Cram, Councilors Hendrickson, Nylund, Benda and Lind.

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

Absent: City Attorney Lawrence

The purpose of this special meeting was to discuss and balance the budget adopted by the City Council on August 13, 2001 for the upcoming fiscal year 2001 – 2002.

Mayor Cram opened the meeting by leading all present in the Pledge of Allegiance.

Mayor Cram began by stating that he felt the Council has not been involved enough in the budget process. He suggested a workshop type meeting to go over the budget more extensively with the manager in which public comment would not be accepted. Councilor Nylund noted that he did not feel comfortable building a budget for the City as he was not as qualified as Manager Nordeman in this area. Councilor Benda agreed that it is the Manager’s job to create the budget and the Council should not attempt to micro-manage the City. Councilor Lind said it was not wise of the Council to not make plans for the future and saw a need to prioritize the budget. Councilor Hendrickson supported the idea of a workshop for the budget.

A lengthy and contentious discussion ensued regarding the budget adopted by the Council on August 13^th. David Graff, representing the City employees, urged the Council to reconsider the cost of living adjustment and confirm Manager Nordeman’s suggested adjustment of 3.2% based on the Consumer Price Index. He noted some facts regarding the financial condition of the City and claimed there was no basis to the perception that the City was in financial trouble. He went on to say that if the Council had problems with the Manager’s proposed budget they should have had their workshop meeting prior to the August 15^th deadline for the adoption of the budget, and in fact, the Council was in violation of the City Charter and urged them all to read it.

Mayor Cram supported by Councilor Lind moved to set a meeting date of September 5, 2001, 8:00 a.m. to conduct a workshop to discuss the goals of the Council and give the Manager direction on those goals.

Ayes: Mayor Cram, Councilors Lind and Hendrickson

Nayes: Councilors Nylund and Benda

Motion carried.

Councilor Lind supported Mayor Cram to break for a 10 minute recess.

Ayes: Mayor Cram, Councilors Lind and Hendrickson

Nayes: Councilors Nylund and Benda

Motion carried.

Meeting in recess at 9:00 a.m.

Meeting reconvened at 9:10 a.m.

Councilor Benda supported by Councilor Nylund moved to amend the budget to reflect the 2001 – 2002 fiscal year budget proposed by Manager Nordeman in its entirety in order to be in compliance with the Charter.

Ayes: Councilor Nylund, Councilor Hendrickson, and Councilor Benda.

Nayes: Mayor Cram and Councilor Lind.

Motion carried.

Councilor Lind supported by Mayor Cram moved to amend the budget to reflect a 1.2% cost of living adjustment for the employees and to delete the patrol car purchase.

Ayes: Mayor Cram and Councilor Lind

Nayes: Councilors Nylund, Hendrickson and Benda.

Motion defeated.

Councilor Nylund supported by Councilor Benda moved to adjourn this special meeting.

Motion carried.

Meeting adjourned at 9:45 a.m.