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 27, 2005 at 4:30 p.m. Central Time.

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

Absent: None

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

The purpose of this special meeting was to conduct a budget workshop regarding the budget for fiscal year 2005 – 2006 for the City of Crystal Falls.

Mayor Hendrickson led everyone in reciting the Pledge of Allegiance.

Manager Nordeman reviewed the requirements of the City Charter regarding the budget process. Some of the highlights of the budget from Manager Nordeman’s perspective included a decrease in labor costs at the Power Plant, decrease in labor costs due to "early out" retirements, decrease in Revenue Sharing from the State of Michigan, and an increase in the cost to purchase electric power from Wisconsin Electric. Nordeman suggested the Council consider increasing the property tax millage to pay for fire protection and an increase in electric rates to customers on the city’s distribution system. He noted that the Midwest CPI as of May is 3.2% and suggested this be granted to the employees as they did not get any wage increases last year. Regarding equipment purchases for the upcoming fiscal year Manager Nordeman noted the most important were a new plow truck (approximately $92,000) for the public works department and a used utility digger (approximately $30,000) for the electric department.

Councilor Thrasher suggested a referendum vote on any millage increases for fire protection and discussed the need to increase spending on alleyway improvements. In addition, Thrasher asked the Council to consider putting limits on benefits to any newly hired employees. He suggested the employee contribute to his/her MERS plan and perhaps some health insurance plan co-pays. This last will be discussed further at the next regular meeting of the City Council.

Councilor Stachowicz noted that a tree harvest at Runkle Lake Park could be very profitable for the City and also allow for land to be opened up for development of additional campsites.

Councilor Valesano and Mayor Hendrickson agreed that the employees should get the CPI increase of 3.2% to their wages this upcoming fiscal year. In addition, Councilor Valesano disagreed with decreasing new hire employee benefits to any extreme noting that good benefits attract and keep, good, qualified employees.

Councilor Thrasher seconded by Councilor Heikkinen moved to adjourn this special meeting of the Crystal Falls City Council at 6:03 p.m.

Motion carried.