City budget

department and the amount of resources being put into equipment for the department.

"Is this a long-term expenditure every year or are we going to find a level?", said French. "I'm not faulting it, I'm just curious if it will end where we don't have these major expenditures every year."

Shephard responded that as the development continues each year, the public works department will need more equipment.

"To answer your question, I think it's going to be an on-going thing, but the revenue generated from the new development will off-set those things," said Shephard.

"It's nothing detrimental to the water department at all," said French. "I wouldn't do what those guys do. They go above and beyond. The hours and the labor and the conditions are deplorable, so I totally support them. It's just that we did not put a lot of money into them for a long time and now we are. So, is that an indicator of the initial growth? Is it a trend?"

Shephard said that for a long time during the first five or six years of his tenure as city administrator, nothing was purchased due to the lack of funds.

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"About the fourth or fifth year, we were forced to increase the water rates by 30 percent because we were going broke," said Shephard. "But the water department nor the police department had bought anything and so we're now playing the game of catch up and we're also need stuff for the future development that's coming up."

There was no vote on the budget, but a proposed budget was put in place with the City Secretary's office. In September, the budget should be final for the new fiscal year that begins in October.

Prior to the budget hearing, Susan LaFollett gave a recap of the city audit recently concluded.

The total net position for the City of Howe was $1,194,393. Total assets were $7,808,843 with the majority coming by means of infrastructure at $5,559,643. Total liabilities for the city were $6,607,134 with the vast majority coming in long-term debt of $4,738,750.