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• The council approved a 2004 budget in the amount of $1,360,600. The council also approved a 2004 tax levy in the amount of $443,290. (Press story.)

• The council set an informational meeting with Senator Michelle Fischbach (R-Paynesville) and Representative Doug Stang (R-Cold Spring) for Wednesday, Jan. 7, at 6 p.m. in the city council chambers. The meeting will give city officials and the public the opportunity to discuss matters concerning city government with state lawmakers.

*The council approved sewer and water rates for 2004. While sewer rates remained unchanged, water rates will be higher than 2003. Bulk water rates were increased by 11¢ per thousand gallons, which could mean an increase of about 55¢ per month for an average household.

• The council approved issuing 2004 liquor and cigarette licenses to 12 Paynesville businesses. The Paynesville American Legion and Queen Bee's Bar and Grill were each issued an on-sale liquor license for a fee of $3,000.

The following businesses were each issued a cigarette license for a fee of $12: Casey's General Store; Gas Plus More; H&L Express; Jim's Standard; Joel's Family Foods; Koronis Lanes; Paynesville Amer-ican Legion; Paynesville Corner Drug; Paynesville Farmers Union Co-op; Paynesville Municipal Off-Sale Liquor Store; Paynesville SuperValu; and Queen Bee's.

• The council approved amending the city's 2003 budget to reflect actual spending. In 2003, the city budgeted $1,307,284 in expenditures while actual expenditures were $1,342,025. In 2003, the city budgeted $1,307,292 in revenues for 2003 while actual revenues were $1,373,960.

• The council approved purchasing a new computer for the city office, not to exceed $1,400 plus tax.

• The council approved hiring the accounting firm of Kern, DeWenter, Viere to do the city's 2003 audit at a cost of $12,700. The audit is scheduled to be presented to the council in February.

• The council approved a $50,000 EDAP loan for Koronis Sports Apparel, contingent on the city's receipt of final documents. The loan will be used to pay down existing loans and possibly for future business expansion. The loan will come from the city only; Paynesville Township will not participate.

• The council approved a capitalization policy to set a dollar value, a use life, and a depreciation schedule for city property valued at more than $5,000.

• The council was informed by its engineer that the city's street improvements for 2004 - including upgrading Service Road - should be advertised for bids in January with the bid opening in February. The city will hold an informational meeting for the street projects on Wednesday, Jan. 7, at 7 p.m.

• The council approved an agreement with the Central Minnesota Federal Credit Union to continue to provide credit card service to the city.