A special meeting of the Council for the City of Crystal Falls was held in the Council Chambers at the City Hall on Tuesday, July 8, 2008 at 5:00 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, Gerard Valesano, Kelly Stankewicz, and Larry Bicigo.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

The purpose of this special meeting was to discuss and consider the following items:

Conduct the 2008-2009 budget work shop.

Consider participation in an ATC Capital Call.

Manager Nordeman presented the Council with a 6 year capital plan outlining the purchase of equipment for the public works, electric, cemetery, and police departments. He noted that some of the equipment is in critical condition and in need of replacement; however, there are not enough projected revenues to do them all. Nordeman also presented a list of major anticipated expenditures that will require new dollars for the upcoming fiscal year including: 5.1% Cost of Living adjustment for employees; Crystal View Apartment Project; and Fire Protection Costs.

Councilor Bicigo thought that the people should be allowed to vote on any increase in the tax rate for fire protection. Overall the consensus was to increase the tax rate to the maximum allowed without a vote to help pay for the fire protection costs.

Mayor Hendrickson noted that the city needs to "tighten their belt" a bit more with limited conference attendances to help cut down on the travel expenses.

The Council reviewed the CD investments available to offset some of the projected expenses and agreed that they should not cash them in unless absolutely necessary.

Regarding the Cost of Living increase for the employees it is possible that the wage adjustment may need to be less than the 5.1% in light of other benefit cost increases.

The health insurance costs were discussed, including the proposal to move to a new plan that will decrease the city’s HSA contribution beginning January 1, 2009.

Manager Nordeman advised that he will have the draft of the budget prepared and delivered to the City Council by Tuesday, July 15^th.

Councilor Valesano seconded by Mayor Hendrickson moved to participate in the 2^nd of 3 American Transmission Company (ATC) Capital Calls with the exact amount of the investment to be determined at a later date.

Motion carried.

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

Motion carried.

Meeting adjourned at 6:57 p.m.