A special meeting of the Council for the City of Crystal Falls was held in the Council Chambers at the City Hall on Monday, August 11, 2008 at 4:00 pm Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, Valesano, Smokevitch, and Bicigo.

Absent: None

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

Visitors in attendance included: Robert Sherwin, Tom Stachowicz, Larry Bicigo, Mark Simeoni, Dennis Mitchell, Angelo Diqui, John Moon, Marilyn Moon, Walter Trzeciak, Geri Trzeciak, Mary Lahna, and Tara Peltoma.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

The purpose of this special meeting was to conduct a Public Hearing on the 2008 – 2009 Fiscal Year Budget.

Manager Nordeman reviewed his budget message and explained that the budget is merely a planning tool and may need to be amended from time to time to meet the financial obligations of the City. He noted that the Golf and Park revenues are somewhat reduced from the previous year, that the State Shared Revenues have diminished substantially over the years, and that the Crystal Manor renovation project will have a severe economic impact on the City’s funds. Manager Nordeman advised that he had incorporated a 3.5% increase for wages in the budget and suggested the implementation of a different health insurance plan to keep the increases at a minimum.

Questions from the Public:

Angelo Diqui asked various questions about the revenues and expenditure distribution in the funds.

Tom Stachowicz noted that the employees had proposed a savings on the health care cost in hopes to offset the expense of a cost of living adjustment of 5.1%.

Mark Simeoni offered that the recommendation of the active employees to give up health saving account contributions in exchange for a higher wage increase affects the retiree’s health care benefit also.

Mayor Hendrickson closed the Public Hearing at 5:23 p.m.