WEDNESDAY, OCTOBER 13, 2010

BUDGET WORK SESSION

6:30 P.M.

1. CALL TO ORDER. Mrs. Sanders opened the Budget Work Session at 6:42 P.M., with roll call as follows: Mrs. Hammond, Mr. Barletta, Mr. Fix, Mr. Sauer, and Mrs. Sanders were present. Mr. Wisniewski arrived at 6:44 P.M. Mr. Blair was absent due to a work commitment. Others present were: Mayor O’Brien, Bill Vance, Lynda Yartin, Chris Schornack, Linda Fersch, Chet Hopper, Stephanie Spencer, Greg Bachman, Susan Crotty, Jan Eichner, Mike McKinley, Alexa Liebert, Jan Thiede, and others.

2. SCHEDULED MATTERS: Mr. Schornack stated if there were no objections by the Committee he would like to cover the departments out of the order listed on the agenda. Mrs. Sanders stated they had no problem with that. Mr. Vance stated at the budget work session last week the City’s biggest General Fund budget was addressed, the Police Department budget. He stated there might potentially be some additional issues to be addressed and there is the flexibility throughout this process to go back and look at any budget we need to along the way. He stated at this point the budget is still a work in progress and staff does not understand anything to be a done deal. Mayor O’Brien stated he would suggest that next year the police be scheduled on a night when there is no other meeting scheduled following the work session since it is so detailed and they be the only topic for that work session.

A. Review of proposed 2011 Budget for:

(1) Income Tax. Mr. Schornack stated this budget pretty much reflects the same as the prior year except a half-time clerk has been added to assist in the collection of income taxes. He stated we have a delinquent amount that we are aware of, and we also know there is an amount we are not aware of and Ms Eichner’s goal next year is to go after both of those to obtain additional revenues for the City. He stated this position would pay for itself as it would allow the more skilled collectors to go after those delinquent taxes. He stated this part-time person would be able to open mail, deposit checks, posting, etc. Ms Eichner stated further collections on delinquents react directly to how much time they have to beat the bushes and if you are in people’s face with a letter, even though they get a statement every month, it seems to bring about a little more result. She stated that effort depends on how much time the tax employees can be relieved of the daily grind of every day duties. She stated if she had a part-time person that just came in and did the mail that would relieve her employees of a half-day’s work that they can spend on delinquents. Mayor O’Brien stated he and Mr. Vance had met with Chris, Jan, and Molly and talked about the processes we use and how we can be better at it. He stated they had also met with the magistrate and prosecutor and those two individuals feel that court is a viable option, but the revenue will come in from the prosecutor letters because that usually gets their attention. Ms Eichner stated she does try to work with people on payment plans when we can’t do anything else with them and they are forthcoming every month. Mr. Sauer clarified that we estimate approximately $350,000 is delinquent that we are aware of. Mr. Sauer further clarified that the electronic system we implemented is reducing some of the paperwork, and we are now working toward being able to accept a debit payment. Ms Eichner stated she estimated there were approximately 600 e-filers this year and that was very good for a first year. Mrs. Sanders stated it appeared we budgeted for $2,500 for overtime for the tax clerks last year and this next year it is $4,500. Mr. Schornack stated that could be brought down to $2,500. Mr. Sauer stated if more was needed they could always come back to Council. Mr. Fix questioned what formula was used to calculate income tax refunds and Ms Eichner stated it was an estimate based upon prior history. Ms Eichner stated it has been running about $15,000 more each year. Mr. Fix clarified that the difference in the amount expected to be spent in 2010 from personnel categories and the amount budgeted for 2011 is $36,500, and he questioned what that amount was for other than adding one half-time person. Mr. Schornack stated there is a little bit of a leeway when he budgets and he did not realize it was that large of a gap. Mr. Fix stated his point was that when Council is telling every department no, he would like to see the justification for adding this much. Mr. Vance stated the difference is in this department we have the expectation of getting $200,000 in back income tax if we have the extra person.

(2) Mr. Schornack stated he would address the Engineering Department at this time. Mr. Bachman stated when you look at the expenses and the revenues his department brings in, his budget this year coming out of the General Fund is less than half what it was last year. He stated it is not that he is saving that much money, but he has worked with Mr. Vance and Mr. Schornack and the percentage of his salary and Ms VanCleave’s salary coming out of the General Fund could actually be less. Mr. Bachman stated we will be doing less roadway projects next year and more utility projects. Mr. Bachman stated, for example, this year 50 percent of his salary came out of the General Fund and 50 percent of Ms VanCleave’s salary came out of the General Fund. Mr. Bachman stated for next year he is projecting that only 25 percent of his salary would come out of the General Fund and none of Ms VanCleave’s salary will come out of the General Fund. Mr. Wisniewski stated that is a one year thing however and the 2012 budget would show a massive increase in the engineer’s budget if it would go back to the way it was. Mr. Bachman stated at least we have money in the utility funds and we don’t have it in the General Fund. Mr. Wisniewski asked if there was a way to show that because we are taking 100 percent out of another fund and that is not showing anywhere on this budget sheet. He stated it is like a shell game where we are moving it around, and isn’t there some way we can show on this particular budget that the funds are coming out of the Water Fund or whatever. Mr. Schornack stated we have payroll sheets that show the percentage coming out of each fund. Mr. Wisniewski stated he understood that, but he was saying if the papers reported that the engineering department budget was reduced by $175,000 or whatever, and we have an 85 percent reduction in expenses, and then next year if our financial situation has not changed if he is not working on utility projects that the engineering department is all of a sudden ballooned with a 95 percent increase. Mr. Schornack stated that is when he thought we needed to analyze the engineering department at that time to see if we really need that much coming out of the General Fund. Mr. Fix stated he understood Mr. Wisniewski was asking for the purpose of budgeting, if they could see all the expenses incurred by the engineering department regardless of what fund it is paid out of on one sheet, then they could see exactly what was happening. Mr. Fix stated he understood Mr. Bachman was moving the expenses where we have the money to pay for them, but the reality is that we are not really spending $100,000 less. We’re spending the same money, it is just coming out of different areas. Mr. Schornack stated he would come up with some ideas on how to show this, and he does create a sheet showing total salaries for the engineering department with deductions shown on the bottom where different percentages are allocated to different funds. Mr. Fix stated he felt the bottom line was they needed to see the total amount spent this year and the total amount projected for next year, and are we spending it wisely. Mr. Fix clarified that a lot of the revenue from the engineering department is generated by inspection fees, and it appeared that we were spending more for inspectors than we earned in fees. He stated he would like to know if it is possible to look at a different fee structure and Mayor O’Brien stated his question would be if our engineering fees are on the General Fee Schedule and he questioned if our fees were enough to cover the costs. Mr. Bachman stated we changed our inspection fee structure from an hourly rate to a percentage of construction costs, so as construction costs go up we will get more revenue.

(3) Human Resources Department. Mr. Schornack stated this budget includes a personnel director for next year as well as our receptionist at the front desk. Mr. Schornack stated the administrative clerk is no longer included in this budget as we will be opening up that position to a Deputy Municipal Clerk. Mr. Vance stated that position is being proposed for next year’s budget so we can enhance the duties from the Municipal Clerk’s department and will provide the flexibility so the Clerk can take vacation or if she is sick we would have a presence in that office. Mr. Vance stated we are making the transition then from a floater and investing those resources into a full time position as Deputy Municipal Clerk. Mr. Wisniewski inquired why this showed a 100 percent increase in the salary of the personnel director and Mr. Schornack stated that was an error and should be zero percent. Mayor O’Brien clarified the $9,000 for a part-time position was for the floaters that we use to cover the receptionist when she is gone or we need to have someone come in to cover another position. Mrs. Fersch stated we have had the floater position for quite some time. Mr. Wisniewski further clarified the $1,500 reflected in PERS pickup was an error and should be deleted. Mr. Wisniewski clarified the travel category was going from $100 to $1,000 because Mrs. Fersch wanted to have money in the budget for the new personnel director to be able to attend training. Mr. Wisniewski stated then the professional development category was going from $400 to $1,000, and Mrs. Fersch stated that was correct. Mr. Vance stated whatever we invest in this regard the individual will learn things that will keep us out of trouble and keep them up to speed. Mr. Wisniewski stated he would hope that we would hire someone who was up to speed already, and Mr. Vance stated he was referring to all of the changes that are occurring in the HR field. Mr. Wisniewski stated he understood that, but he felt that in the first year it was pretty quick for a person to be going out traveling. Mrs. Fersch stated she could reduce those categories to $500 each. Mr. Sauer clarified the two different professional development categories covered the personnel director and the receptionist. Mr. Fix stated he felt the $800 in professional development for the receptionist should be taken out and the other members concurred.

(4) Planning and Zoning Department. Mr. Vance stated as Council was aware staff was faced with approximately $353,000 worth of cuts in order to come up with a balanced budget. Mr. Vance stated he was proposing we eliminate the Senior Planner position which would save approximately $150,000. He stated we have basically been operating with the Economic Development Director acting as a Development Services Director with that individual splitting time within the land use aspects for operation and the economic development aspects for operation, and he proposed that we continue to do so again in the next fiscal year. Mr. Vance further stated the Building Department was under the Economic Development Director and from his perspective it seemed that the City Manager had a lot of coordination necessary with the building official and so within the organizational chart he was preparing, the Building Department would be under the direct supervision of the City Manager. Mr. Wisniewski clarified the duties of the Senior Planner or Planning and Zoning Director would be split between the Development Services Director and the remaining planner with the City Manager assisting as necessary. Ms Crotty stated she felt she and Mr. Henderson had the technical knowledge and expertise necessary to handle these duties, however, she felt it would be helpful if she could utilize the floater services for some of the clerical work. She stated that would relieve some of the burden of the day-to-day responsibilities. Mr. Vance stated we do have those resources budgeted. Mr. Wisniewski stated his concern was in splitting these duties between two people, one of whom was the department head and is our key person on development of the City, he wanted to make sure those duties would not be pushed aside for planning and zoning type issues. Mr. Vance stated the individual in the senior planner position is currently not with us and he is not sure about that person’s return. Mr. Wisniewski ascertained that Ms Crotty and Mr. Henderson were currently handling the day-to-day responsibilities of that position. Ms Crotty stated one of the roles of the Planning and Zoning Director was working on some of the bigger projects, like the Refugee Road Corridor Study and she thought that was something we might need to look at because we might need some consulting services in the future for that type of effort. Mr. Fix stated then as he understood it we have an employee who is not here and we don’t know when he is coming back, Ms Crotty and Mr. Henderson are already handling those responsibilities, and if we outsource some of the bigger projects and get some administrative help they can continue to handle it. Mr. Vance stated it is not a perfect solution, but it is a sign of the times when we had cuts that needed to be made he needed to look at recommending laying off a couple of police officers or going to a department that is dependent upon the amount of development activity we have. Mr. Fix clarified that when development comes into the City we may need to hire people into that position if and when necessary. Mr. Vance stated from his development background there is a lot of flexibility to build in the resources necessary within the application fees to attain those additional resources as we go along. Mr. Wisniewski stated one of his concerns is that we already have a fairly poor reputation in the building community on how long it takes to get something through, and if this slows down the building process and Ms Crotty is being pulled to do planning and zoning type work when she has a developer trying to also work through the system, he wasn’t sure how Ms Crotty could adequately balance these duties. He stated if that required bringing in consultants he would rather see that budget increased to help alleviate that with temporary work if needed. Mr. Wisniewski stated he wanted to make sure there was an understanding from Council that it was one thing to take a position and have it absorbed into four or five people’s positions, but it is another thing to take one position and divvy it up into two people. He stated he hoped if Mr. Vance found this was not working that he would come back to Council and address it quickly; if our processes suffer or development suffers in any way that he come back to Council and let them know it was not working as planned. Mr. Vance stated provided they maintain open and professional lines of communication and provided they maintain a team spirit, they have sufficient resources to move forward. Mr. Wisniewski inquired what Mr. Vance recommended on Code Enforcement and Mr. Vance stated he was proposing to eliminate the Code Enforcement position. Mr. Vance stated code enforcement will be a team effort and we can contract some of these duties. Mr. Vance stated this might be an area where change might not be a bad thing, and he is talking about 2011 right now because we have limited resources to work with during the next fiscal year. Mr. Vance stated this proposal gets us through 2011 and we will provide the best customer service we can with the resources that are available to us. He stated it seemed going in a different direction as far as code enforcement services and investigating different ways to look at things and different ways to accomplish things could be a very good thing in 2011, and that is what he is proposing. Mr. Vance stated we could probably not be as proactive in the future with this amount of resources, but he thought we could maintain the responsibilities we have to act on a regular basis. Mr. Barletta stated it is important to council that the development process does not slow down, but he felt Mr. Vance was headed in the right direction as we do have to cut somewhere. Mayor O’Brien questioned if there were any accommodations in the budget for unemployment or severance on the two positions being eliminated, and Mr. Vance stated we do have some flexibility and other resources have been shifted to cover the unemployment issue. Mr. Fix clarified that the position would be eliminated at the end of the year. Mayor O’Brien stated he would recommend that Mr. Vance consider a more dedicated clerical resource because if we want this to succeed we need to include the proper clerical support. Mayor O’Brien further clarified that eliminating the code enforcement officer would save $64,000 and he felt that March to September were the really big months of activity for code enforcement, and the rest of the year is manageable in house. He stated he felt we should consider investing part of the money saved in code enforcement services during the summer months. Mr. Wisniewski stated his concern was that Mr. Vance not be spending several hours a week on code enforcement. Mr. Vance stated he felt we were still small enough where someone in his position needs to get involved, and fortunately with a lot of different aspects of what we are trying to accomplish we want to keep things moving forward. He stated with the resources we have, the person in his position has to take an interest in some things they might not otherwise. Mayor O’Brien stated he also understood there would be a salary increase for the planner position and he did not see that reflected in the budget. Mr. Vance stated it is not reflected as yet and he will address it at another budget meeting once he finds the resources. He stated at this point in time this is a goal and if council has no objection that is the direction he will be heading. Mr. Vance further stated just as with the Development Services Director that is the direction he will be heading. Mayor O’Brien questioned if our fees in this department are current and cover our costs and Mr. Vance stated he felt we need to take a look at those fees and make sure they cover the services we supply.

Finance Committee recessed at 8:00 P.M. and reconvened in open session at 8:10 P.M.

(5) Development Department. Mr. Vance stated he would like to point out that the Development Director’s salary increase is reflected in this budget. He stated this position would be responsible for the planning and zoning duties in addition to the economic development duties of the city. Mr. Fix stated he noticed that no funds were budgeted for advertising and he questioned how we would attract business to the community if we did not advertise. Ms Crotty stated she felt the budget was prepared based on the expectations of the economic situation of the city next year and was very conservative. Mr. Schornack stated there is an advertising budget in the PIO department as well. Mr. Fix stated he felt a 30 percent carryover is not totally necessary and if there were ever a reason to spend funds out of that carryover he felt that advertising for economic development for our community would be a the time to do that. Mr. Fix stated he would advocate that Ms Crotty come back with an advertising/marketing plan for 2011 and let council know what would be a reasonable amount. Mr. Wisniewski stated he felt this should be added to the wish list so it can be figured out at the end of the year since they have not completed reviewing the entire budget. Mr. Barletta stated he felt that would be the place it belonged and funds could be allocated as appropriate. Mr. Sauer stated in keeping with the spirit of a balanced budget they needed to find areas to be cut before proposing extra expenditures. Mr. Fix stated his feeling was that with times as they are now, we do not need to have a 30 percent carryover. Mr. Sauer stated next year we know our revenues potentially will go down and our expenses are going up and that carryover will shrink. Mr. Fix stated that is not what we have now, and Mr. Sauer stated if we look only at 2011 and pretend 2012 doesn’t exist without planning for the future, he felt was irresponsible budgeting. Mr. Fix stated he was only suggesting we take $25,000 out of a $2 million carryover. Mr. Sauer stated then there would be two or three more things and before we know it, there would be a wish list of things we need to find a way to pay for. Mrs. Sanders stated she felt council should get a plan from Ms Crotty and see where we stand when we complete the budget hearings. Ms Crotty stated she does have some ideas of some things she can do next year if the money is available and she would provide something to council. Mayor O’Brien stated part of the economic developer’s job is to be at the right place at the right time and he questioned if the $1,000 in the budget for professional development was enough to pay entries into conferences, seminars, etc. Ms Crotty stated there are some funds as well in travel/transportation and that would provide some funds for a conference or whatever. She stated further in considering memberships and contributions she can leverage some resources through the Fairfield 33 Alliance and other things she participates in. Ms Crotty stated based on our target market she felt she would have more success working in the central Ohio markets. Mr. Vance stated the budget does contain $15,000 for professional services for the public information department and Council might take the position that half of that could be used for job retention and business retention activities and invest the remaining $7,500 in economic promotional opportunities. Mayor O’Brien inquired if we have benchmarked the salary changes being proposed against the MORPC standards for similar positions elsewhere, and Mrs. Fersch stated she does have the latest survey from MORPC and she can provide that to council. Mayor O’Brien stated he felt we needed to compare these so we knew where we were.

(6) Building Regulations Department. Mr. Vance stated he was proposing eliminating the building inspector position and reducing the salary of the building official from $75,000 to $70,000. Mr. Wisniewski clarified Mr. Vance stated he is proposing to contract the building inspector duties and the fees collected through permits requiring these services will also pay for those services. Mr. Hopper stated he is doing some of the inspections that take a short amount of time rather than have someone on contract that is charging by the hour do those. Mr. Wisniewski stated he still did not understand how we had gone from $85,000 to $40,000 to $35,000, to $30,000 since 2008 in picking up the duties of a full time person. Mr. Fix stated the Expense subcommittee had gone through this and Mr. Sabatino had argued that we were paying inspectors to not inspect because we had so few activities going on that it was a very inefficient way to run this part of our business and he advocated that by contracting that out, and he was right, that we would save money because we did not have enough activity going on to have a full time person doing this job. Mr. Schornack stated as Mr. Fix had pointed out with the formula used in prior years we were paying inspectors when we did not need them. Mr. Vance stated he felt the $30,000 in the budget for the inspectors should be a pass through, and Mr. Wisniewski stated he was trying to understand how we could have an expense that was less than the prior year and get rid of the position. Mr. Hopper stated we are looking at a different contractor now that does plans review for us and also provides inspection services for us on an hourly rate rather than a per inspection rate. He stated now the inspector may do three inspections in an hour whereas before we were paying for three separate inspections in that same hour. Mr. Wisniewski summarized then, this decrease is based on reworking the contract and Mr. Hopper absorbing some of the inspections. Mr. Vance stated the compensation of the $70,000 is for a building official once we get the additional inspector resource in place and he will administrate inspections that are to be conducted by that additional contract building inspector in addition to assisting with the code enforcement responsibilities. Mr. Wisniewski stated he felt the $30,000 figure was very conservative, however, if Mr. Vance and Mr. Hopper felt this is fine then he would agree with them. Mr. Wisniewski stated with regard to the Building Administrator’s salary, he has a problem reducing someone’s salary who hasn’t even been here a year, and who has brought considerable efficiency to the department, and that is not something he could support. Mr. Vance stated this was not related in any way to performance or capabilities, but as a Manager he must look across the spectrum of the salaries that we have and throughout the budgetary process make recommendations based upon what he knows about how others are treated as well. Mr. Vance stated this budget is not by any means final and Council could take the position that they would not support this individual going from $75,000 to $70,000. Mr. Vance stated it might be a good idea for him and Mrs. Fersch to work together on that MORPC comparison, but he might find that some of our department heads are not being compensated with what other municipalities are compensating their department heads. Mayor O’Brien stated they had done salary surveys for City Manager, Engineer, and other positions and that was based on staff size, budget size, and all of the other factors. Mr. Vance stated what he was trying to accomplish is to heighten awareness as to the situation and how it compares with some of our other situations where you have another individual responsible for the wastewater treatment plant, water plant, all of the city roads, basically all water and sewer items as well as infrastructure making just a few thousand dollars more than $75,000. He stated it doesn’t seem to compare to the amount of responsibility bestowed upon that individual either. Mr. Vance stated his position was to look across the whole spectrum and council has the flexibility to change any recommendation he puts forward. Mr. Sauer stated he concurred with Mr. Wisniewski’s view on the salary reduction and questioned if funds could be transferred from the savings in personnel to hold the salary steady with where it was last year. Mr. Vance stated there was some flexibility to do that.

(7) Legislative Department. Mr. Schornack stated the Deputy Municipal Clerk has been added to this department. Mr. Schornack further stated $4,000 has been included in the meeting expense budget for Council. Mr. Fix stated he had some questions regarding Council health insurance and clarified that was included in the $41,500.

(8) Public Information Department. Mr. Schornack stated the funding for Governing Dynamics was included in this budget. Mrs. Hammond stated she did not feel the City got their money’s worth with Governing Dynamics and if we were paying for generating public information, there wasn’t any. Mr. Vance stated if there was some flexibility to redirect some of these funds to enhance the City’s relationship with the Chamber that is what he would propose. Mayor O’Brien stated before that happened he would like to the see the Chamber come in with a presentation so we knew what they were offering. Mr. Fix stated he would like to know how we plan to provide information to the public about what is happening in the City, who would be the public information officer. Mr. Vance stated we have the Pickerington Magazine, we have the Mayor’s Newsletter, the Chamber’s newsletter, and we have the web site. Mr. Fix stated his question was who would maintain all of those things, and. Mr. Vance stated normally the City Manger gets the calls requesting information and it goes from there. Mr. Sauer stated he agreed with Mrs. Hammond regarding Governing Dynamics because he frankly does not really know what they did other than a survey in-house. He questioned where the funds were being used to get information out in the community about the city. Mr. Fix stated perhaps we should have them make a presentation to Council on how they feel that money was spent. He stated he was not saying we should use them or not, but if not them then who. Mr. Sauer stated his point was if we were going to budget funds for this, he would like to see a plan as to what those funds would be used for. Mr. Fix stated he would hope that if we left funds in this department we would go out with a request for proposal to see who could provide these services for us. Mr. Schornack stated $6,900 of the amount in the budget is for the two pages in the Pickerington Magazine bi-monthly. Mayor O’Brien stated with regard to public information or communication he felt we should talk about the whole picture and define the need, and then go from there. Mayor O’Brien stated he also felt we should look at what we are getting for the money we pay for our web site and look into getting that improved.

(9) Legal Department. There were no questions on the legal department budget.

(10) Finance Department. Mr. Schornack stated there were very few changes in this department. Mr. Fix inquired what the cost would be if we wanted to do a performance audit in 2011, and would it be appropriate to include that in this department. Mayor O’Brien clarified that the State Auditor’s office has the ability to come in and do an audit of our processes to see if we are performing in the most cost effective way possible. Mrs. Hammond stated since we are making personnel changes and shifting personnel around perhaps we should hold off on something like that for a year. Mr. Schornack stated he did not have a figure for that, but it could be quite costly. Mr. Schornack stated he could get more information on this and send it out to Council. Mr. Vance stated he is not familiar with this performance audit and he would like to see more information about the program before he would recommend we go any further with this. Mr. Fix stated he was not saying we should do this, he would just like to find out what that process is like and what it would cost.

Finance Committee recessed at 9:10 P.M., and reconvened in open session at 9:20 P.M.

(11) Lands and Buildings. Mr. Schornack stated there were very few changes in this budget from last year. He stated we do have a scanner in the Tax Department that needs replaced. Mayor O’Brien stated with the $4,000 we have budgeted for the internet, and the $5,000 we have budgeted for the web site, would it be possible to contact Insight to see if they could give us an assessment of where we stand and what they can do for us. Mr. Schornack stated Mr. Vannatta would know more about that and he follow up on that with him. Mr. Fix stated he thought fiber optic had been run throughout the area and Mayor O’Brien stated he thought we could look at what we spend in all departments for those types of services and compare it to what someone could provide for us. Mr. Schornack stated Mr. Vannatta was also requesting to have the parking lot at City Hall repaved and a new vehicle for City Hall and these were included on the 2011 unfunded budget list.

Mr. Schornack stated with regard to General Fund debt our principal retired in 2010 is $1.4 million and in 2011 it is $1.1 million although he has included an additional $400,000 on the unfunded list that he would like to pay off. Mayor O’Brien stated that money could be obtained by a decision to reduce the carryover by roughly 20 percent. Mr. Schornack stated he would like to have a presentation by our bond counsel regarding turning our SIB loan into bonds over a 20 year period. He stated as it is set up now we have a balloon payment after ten years, and that would be 2013 or 2014 when we would have a $3.5 million balloon payment. He stated at that point in time we would have to roll those into some sort of note or bond that we can pay over a period of time. Mr. Schornack stated we could reduce our annual payment total by going to bonds with rates as low as they are at this time. Mr. Schornack stated he would arrange for Mr. Schwallie to give a presentation on these issues at a Finance Committee meeting in the near future.

Mr. Wisniewski clarified that the budget reflects a transfer to the police department of approximately $2.6 million out of the $3.7 million shown under Transfers. He further clarified the police levy currently brings in about $1.4 million and it is being collected at 3.6 or 3.7 mills out of the 5.5 mills.

Mr. Schornack clarified at the next work session they would review the General Government, Utilities, Streets, and Parks and Recreation budgets. He stated the next budget work session is scheduled for October 27, 2010, at 6:30 P.M.

3. ADJOURNMENT. There being nothing further, the work session closed at 9:50 P.M., October 13, 2010.

RESPECTFULLY SUBMITTED:

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Lynda D. Yartin, Municipal Clerk