Village of Constantine
Budget Workshop
March 8, 2010
7:00 P.M.

The Monday, March 8, 2010 Budget Work Session began at 7:05PM in the Village Hall. In attendance: Trustees Brown, Brewer, LaFluer and Mathers, and President Weiss, Manager Honeysett, Treasurer Strawser and Clerk Strawser. Absent: Trustees Harder and Moore.

Manager Honeysett provided a revised proposed 2010 budget. President Weiss read a cartoon before Manager Honeysett led the budget review and discussion, saying he had made adjustments to the proposed based on input at the February 27, 2010 Budget Work Session. Points discussed:

• The $120,000 TIF capture of tax money cannot be taken from the DDA.

Manager Honeysett said that the DDA might assume a larger portion of Diana Lammott’s total compensation since most of what Ms. Lammott currently does for the Village is DDA-related. Clerk Strawser explained that the TIF can be rescinded and the money returned to the various entities, the Village retaining the largest portion to their General Fund. Manager Honeysett and President Weiss said it is imperative that the downtown be revitalized and re-branded before the U.S.131 bypass is completed to ensure the viability of the village. Clerk Strawser reminded everyone that TIF funds could only be spent on projects in the approved TIF Plan. Several trustees pointed out that the appointment as DDA Director was a 6-month trial, that time period due to expire. Some suggested the DDA Director have an office separate from Village Hall. Treasurer Strawser pointed out the increased cost of operating and maintaining separate buildings. While space is available in the Incubator, it would make one suite unavailable for lease to business. Manager Honeysett said the Incubator is self-staining with the current renters. Treasurer Strawser spoke about wants versus needs and urged that any money not returned to the General Fund be put toward paying down the Incubator mortgages, citing other DDA/Village debts.

• Police Department personnel changes.

Police Cpl. Studebaker may agree to either take early retirement or move to part-time while maintaining full benefits. Any lost man-hours would be filled by Chief Bedell (who is currently spending his time on the Parrack investigation and administrative functions versus patrol) or reserve officers. Cut the school liaison officer program and shift Officer Cerny to patrol duty. Part-time officer hours could be curtailed to 5-6 hours per week. Police Chief Bedell will receive a $1,500 raise per his current contract.

• Changes to the Equipment Fund.

Cut equipment rental fees (the charges made to various departments for the use of the village equipment to cover the actual cost of maintenance/repair).

• Jockey the employee salary spread through the various funds to allow increased draws on the healthier fund; these would have to be the same across the board to maintain legal requirements.
• Change employee insurance from HSAs to HRAs.
• Cut memberships to organizations and associations.
• Cancel the 4 th of July fireworks and parade.

Manager Honeysett said the Harvest Festival was no expense to the Village. President Weiss said the Cool Cities Committee did not run either event, rather sub-committees. Trustees stressed the popularity of the 4 th of July versus the Harvest Festival.

• Cut the Tree Fund.
• The Fire Department has already cut $12,000 from their proposed budget.
• Three DPW workers & the bookkeeper will receive a 3% raise per their current contract.

Manager Honeysett said that these measures would reduce the anticipated budget shortfall to approximately $60,000. He said the Council must adopt a budget by March 31, 2010, but that it does not have to be a balanced budget.

Treasurer Strawser spoke about wants versus needs, the need to balance the budget and plan ahead for even larger tax losses in 2011. Several trustees spoke about the need for austerity measures. Manager Honeysett said there were no extravagances areas within the budget.

In response to questions, Manager Honeysett said no checks have been issued without prior Council approval that exceed his discretionary limit. He said to expect year-end fund transfers soon and that the Council would likely reject, due to cost, the DWRF (water quality) requests.

The Council contemplated the timetable necessary to meet notice requirements before the budget could be adopted and agreed the hearing should be set at the next regular meeting.

Budget Work Session ended at 8:38PM.

Ruth Strawser
Village Clerk