operate the secondary water system. The tentative budget was adopted unanimously, with a public hearing set for June 16, 2011, on the final budget. Mr. Morris reviewed the proposed FY 2010-11 amended budget, which reduced revenue about $74,000, for a total amended budget of about $1,243,000. A motion to review the budget for purposes of amendment passed unanimously. A public hearing was set for the next meeting on June 16, 2011. The proposed FY 2011-12 tentative budget was discussed by Mr. Morris and the council. It projects a total revenue and expenditure of about $1,362,000. Residents should thank Mayor Keith Butler for his diligent work on the budget. The tentative FY 2011-12 budget was adopted by a unanimous vote, with a public hearing on the final budget set for June 16, 2011. The City Council Meeting held on June 16, 2011, was a busy one, as fiscal matters and budgets were considered. Public hearings were held on this date before Resolutions were voted on by the Council. The first concerned Resolution 2011-G for the final budget for the Pioneer Special Service District. The budget has not changed much over last year. The Hoth Apartments and Townhouses are now connected to the Special District. No public comment was given. The council approved Resolution 2011-G unanimously. No public comment was offered on Resolution 2011-H adopting the FY 2010-11 amended city budget. There were no questions from the council. Resolution 2011-H was approved unanimously by the council. Mr. Morris presented Resolution 2011-1 to adopt the FY 2011-12 final city budget, and noted a minor change The city's health insurance carrier recently increased the premium by $1,300, which required the modification in the budget for this change. No public comment was offered. After various questions from the council, Resolution 2011-1 was approved by the council by unanimous vote. The 2011-12 Capital Improvement Plan was discussed at the November 17, 2011 Council Meeting.. The projects that were completed in the last year were reviewed, and proposed projects discussed. The plan is required to be eligible for CDBG funds, which it is hoped can be used to complete outstanding projects. A public hearing is required, and the matter was tabled until the next meeting after the public hearing, by a unanimous vote. A public hearing was opened at the December 15, 2011, City Council Meeting, concerning the Community Development Block Grant (CDBG) program. Potential projects for which funding may be applied under this program were discussed. The grant money must be spent on projects benefitting primarily low and moderate income persons. The projects identified as being needed in the community are listed in the Capital Investment Plan, as part of the regional consolidated plan. The hearing was opened for public comment. Corey Combe who owns property on 17*1 Street spoke in favor of constructing the sewer line on that street, which is a project already listed in the CIP. He added that he is in favor of more parks. No other public comment was offered, and the public meeting was closed and the public meeting re-opened. The 2011-12 Capital Investment Plan was approved unanimously by the council At the City Council Meeting held on December 15, 2011, beginning at 6:00 p.m., Cory Cardon, Independent Auditor, presented the annual independent audit report. There was revenue of $980,000 and about $1,000,000 in expenditures, giving a small deficit. The city was within $10,000 of its budget, and given the tough economy, has done well. The $100,000 in unassigned general funds, at 13% of the fund balance, is well within the 18% state rule. 10