Also in attendance were the following: John Gilk, Tim Hennen, and Jim Hemker.

Staff persons on hand were Paul Hetland and Joel Dasher.

The Pledge of Allegiance was said by those in attendance.

Report - John Gilk, Fire Chief, Area Fire Service

Gilk reported that the he has attempted to dedicate the FEMA grant fund to the purchase of a three phase generator. Gilk shared a copy of the e-mail correspondence with the Council. Thelen brought forward the idea of the Area Service operating with greater independence on budgeted expenditures. Gilk stated that he would mention the idea at the next meeting and at the February Annual Meeting.

Report - Paul Hetland, City Clerk/Treasurer

Hetland gave a brief report that Minnesota Public Radio called to set up an appointment for the next day in anticipation for the awarding of the JOBZ designation. He also reported that Health Partners has forwarded their annual renewal information to the City which would be reviewed at a later date. Hetland also brought forward a service claim for work done by Butch Thull for Famo Feeds in the Industrial Park. He was instructed to contact John Beste and Thull and invite them to a future meeting to discuss the claim.

Tim Hennen gave a brief report of the progress on the new city hall.

New Business

Thelen moved and Humbert seconded a motion approving the claims as presented in the amount of $65,900.13. Discussion offered. Amount included the Middendorf payment for crop loss on 6.22 acres of the Industrial Park. Motion carried.

2004 Budget

Thelen and Hetland reported they had worked on the budget extensively prior to the meeting. The process was more laborious this year due to the thoroughness being given to a zero-based budgeting approach analyzing the expenditures in the last three years for the following budgets: General, Water, Waste Water, and EDA. Hetland presented the budget and much discussion followed on the General budget and setting the amounts for 2004. Humbert moved and Goebel seconded a motion approving the reduced levy at $169,245.00. Discussion offered. Motion carried. Council examined and reviewed the water and wastewater budgets. Many suggestions and additions were noted for the budgets and it was decided that with the levy set, the budget discussion and finalization would continue at the next available meeting.

At 1:05 A.M. December 18 Worms moved and Thelen seconded a motion to adjourn the meeting. Motion carried.