A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Monday, June 26, 2006 at 5:00 p.m. Central Time.

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

Councilor Thrasher arrived at 5:27 p.m.

Absent: None

Also present were City Manager Nordeman, City Attorney Lawrence, City Clerk/Treasurer Olson, Mark Simeoni, and Larry Bicigo.

Mayor Hendrickson led all present in the Pledge of Allegiance.

Manager Nordeman explained the budget process and asked for Council input regarding items of importance for inclusion in the budget. Budgetary issues discussed included: Golf Course Irrigation Project ($150,000), Streetscape Project ($65,000), Crystal Manor Demolition ($250,000), Milfoil treatment ($1,000-1,500), Unemployment ($9,400), and CATV property ($40,000). Note that the foregoing amounts are not final. Wages were also discussed with Manager Nordeman indicating that he will conduct evaluations to determine merit increases. He also advised that the CPI for May 2006 is 4.3%. Manager Nordeman noted that the early out retirements will save the City approximately $155,000 this upcoming year. Health insurance and revenue sharing have stabilized and should not have a negative impact on the upcoming budget.

Other areas of concern voiced by the Councilors included: road and alley improvements, Riverwalk maintenance, Runkle Lake Park renovations, and the funding of pensions and retirees healthcare.

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

Motion carried.

Meeting adjourned at 7:00 p.m.