1.  CALL MEETING TO ORDER
 
President Mielke called a special meeting of the City Council to order at 7:00 p.m. on Thursday, October 25, 2007 in the Council Chambers of the Municipal Building.

2.  ROLL CALL
 
On call of the roll, members present were:

LaVerne Behrens
John Mielke
Jim Simdon
Steve Tesmer
Mark Zastrow

Also present were the City Manager, City Engineer, City Clerk/Treasurer and various department heads throughout portions of the meeting.

3.  CONTINUED REVIEW OF THE 2008 BUDGET.
 
The Council continued its review of the proposed 2008 budget.

Museum
The Museum Director reviewed the Museum budget with the Council. Utilities will be increased for 2008 due to the expansion of the Museum and repairs and maintenance will be decreased due to a newer facility.

Fire Department
The Fire Chief reviewed the Fire Department budget with the Council. For 2007 everything is on or below budget with the exception of truck insurance due to the addition of a new vehicle. All accounts for 2008 have the recommended increases.

Water Utility
The City Manager reviewed the Water Utility budget with the Council. The City Manager stated 2007 revenues are coming in over budget by about $200,000 at $1.6 million and the same amount is expected for 2008. With higher revenues and demand come higher operating costs in power, labor and chemicals. The operating income for 2007 is expected to be $417,285 with a 6.58% rate of return.

Building Department
The Building Inspector reviewed the Building & Plumbing Inspection Department budget with the Council. The Building Inspector noted nothing major has changed and the department is expected to bring in approximately $73,000 in revenue.

Wastewater Utility
The City Manager reviewed the Wastewater Utility budget with the Council. Industrial sales are up about $150,000 for 2007 and are expected to come in at approximately $1.3 million and the rest of revenues should be close to budget. Total revenues are projected to be $3 million for 2008. Expenditures for 2007 are right on budget with the exception of power and chemicals being up a bit to treat additional waste. Wages are under budget due to a vacant position for a good part of the year. A surplus of approximately $160,635 is projected for 2007 and a $230 deficit or break-even for 2008.

Miscellaneous
The City Manager presented the following 2008 budget figures:

• Estimated City Fund Balance at the beginning of the year (unrestricted) = Just over $1,308,000
• General Fund Operating Expenditures = up 3.99%
• General Fund Operating and Capital Outlay Expenditures = up 2.26% (this number is used for expenditure restraint purposes)
• Total General Fund Expenditures (Operating, Capital, Debt Service) = up 2.08%
• Total General Fund Expenditures; Less Revenues; plus Capital Projects = up 1.94% (this number is used for levy limit purposes)
• Taxes Levied for City Purposes = $5,884,860 (up 1.87%)
• City Tax Rate = approximately $6.708/thousand of assessed value (down about $0.01 from 2006)

Cm. Zastrow, seconded by Cwmn. Behrens, moved that the 2008 City Budget as proposed by the City Manager be approved, and that a summary of the proposed budget calling for operating expenditures of $7,696,313; debt service of $554,843; capital outlay of $476,630; capital projects of $375,000; tax increment of $118,564; and total revenues of $3,336,490 for at total of taxes levied for City purposes of $5,884,860 be published for a public hearing at the regular City Council meeting to be held November 20, 2007 at 7:00 p.m. On call of the roll, the motion carried unanimously.

OVERDRAWNS
The City Manager presented and reviewed the following list of overdrawn accounts and requested the Council approve a transfer from the General Fund to cover these amounts. The contingency account will be used to cover $37,000 of the overdrawn monies.

4.  ADJOURNMENT
 
Cm. Zastrow, seconded by Cwmn. Behrens, moved to adjourn the October 25, 2007 Special Council meeting at 7:50 p.m. The motion carried on a voice vote.

/s/ Matt Trebatoski
City Clerk/Treasurer