Meeting was called to order by Mayor Gary Astleford at 4:04pm.

Pledge of Allegiance was spoken

Present: Gary Astleford, Keith Emerson, James Tholen, Bruce Pederson

Absent: Lloyd Hagemann

Motion by Emerson seconded by Tholen to approve the agenda as presented, all ayes.

Ron Kleinschmidt met with Tom Klemenhagen to go over the project and to get the cost estimate for the north end and the south end of 1^st Ave East.

Ron gave out some numbers for the council to expect to see at their September 4^th meeting. That meeting they will need to call for the feasibility study.

Items discussed were the sewer line going under the school and lining that line for a cost of $35,000.

Tom will be at the September meeting to discuss.

Summer Rec. – why does the city pay for this? $2,500 clerk will check for next meeting

Swimming Lessons – City pays $20 per student, $2,500 in the past have gotten reimbursed, but the last 2 years have not, and will not in the future.

VFW was talked to and they may be interested in paying of the summer rec. and swimming lessons out of their gambling funds.

Insurance may change after the new plans are in place.

Interest – additional funds 210, 530, 400, 575, 800, 900 were discussed, the possibility of the council putting the interest from these funds into the general fund. This would be and additional 11,900 at the current amount. Capital Outlay in June will increase the interest by $2,500, Total of $14,400. Council was in agreement to use this money for the general fund.

Levy – increase the levy by 6% which is $19,000, 8% is $25,000, 10% $31,300.

Liquor Store – Council take additional funds needed form liquor store, currently we take $35,000 a year could take $5,000 more.

Council will re-evaluate budget vs. actual in December at the truth in taxation meeting.

Motion by Astleford seconded by Tholen to approve the changes of the EDA budget to $24,000, all ayes.

Motion by Pederson seconded by Tholen to increase the 2008 levy to 10%, all ayes.

Council reviewed a letter form Tom Klecker regarding insurance for Jan Flolid.

Council will need to make a decision on how they would like to proceed and have our attorney get back to Mr. Drummond.

Motion by Pederson seconded by Tholen to approve the council continue to maintain the position it has in the past regarding the health insurance benefit to Jan Flolid and have our attorney Tom Klecker respond to Jan’s attorney Steve Drummond, all ayes.

Motion by Pederson seconded by Tholen to adjourn meeting at 5:30pm, all ayes.

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Gary L. Astleford –Mayor

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Angela A. Jacobson – City Clerk