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The parade of department heads began Thursday as the Dunkirk Common Council continues to move through its review of Mayor Richard Frey's proposed budget for 2009.

Clerk, Board of Assessors Thomas Mleczko was up first.

The travel and training expenses for 2008 of $3,324 was questioned as the 2009 figure is $1,500.

Mleczko said it was due to the training for a couple of newcomers to the department, himself and assessor Anthony Porpiglia, who was elected in 2007. More training is required for their certification and Mleczko said the budget for the line would be, "tight."

Councilman-at-Large James Muscato asked Mleczko what the $40,083 in contracted services to date in 2008 went for.

"NRG, Demetri and on-going Cliffstar," Mleczko replied.

When Muscato asked if it was for outside counsel Mleczko said yes, "plus the appraisals of Demetri's and Cliffstar."

Mleczko requested $25,000 for the line in 2009, which Mayor Richard Frey lowered to $15,000, $5,000 less than was budgeted in 2008. In 2006 the line saw $20,114 spent and 2007 it was $34,933.

Muscato asked what was anticipated in 2009.

"We've still got the Cliffstar one and the only one I've been served with so far for next year is D & F Plaza," Mleczko replied. "But D & F Plaza should be less involved because of the income and expense statements."

Muscato then asked if the $15,000 was adequate.

Before Mleczko could answer, Second Ward Councilman Kevin Muldowney, who is also the Town of Pomfret Assessor, pointed out that the deadline for filing a claim for 2009 was passed and the D & F Plaza claim would be the only new one.

"If we go to a full, blown-out trial with either one of these you're probably looking at, I'd say $20,000 to $25,000 ... if you go right to trial without settling out."

Muldowney doubted whether the D & F Plaza case would reach the trial stage in 2009 and asked Mleczko how comfortable he was with the $15,000.

"We could kill that with on-going Cliffstar, that's a scary one," Mleczko said. "Again, I'd hate to say $15,000 is going to be enough and we end up spending $40,000 like we did this year, and the year's not done yet."

More meetings will be held on both the cases this year so the final figure for the contracted services line in 2008 is unknown.

The assessment department requested a total budget of $115,485 while the mayor's 2009 figure is $105,385, slightly higher than the 2008 budget figure of $105,071.

City Treasurer Mark Woods was next to have his areas of appropriations responsibility examined. Woods submitted a budget request of $133,111 for the treasurer's office which Frey cut to $127,061. Some $5,000 of that difference comes from the fiscal agents fees line and Woods was asked if the mayor's proposal of $10,000 would be adequate.

"I do have a concern with the cut in that line,"Woods said. "And again that line includes any payments that the city has to make for the long-term financing that we currently have. A lot of those numbers are set numbers and there's not much we can do to change that. The amount that I budgeted, the $15,000, was very close to what we're actually going to need so I do have a concern with that. It should be $15,000."

Woods then led a review of the city's long-term debt obligations.

The city's statement of long-term debt for 2009 shows an unpaid balance of $7,154,000 with $1,019,000 in principal and $367,721 in interest payments due in 2009. The city is locked into both the payment and interest schedules for the serial bonds, which go as far back as 1985. Payments will come from the water treatment and wastewater treatment funds along with the general fund although most of the bonds are for projects at the two treatment plants.

"The actual indebtedness of the city is not anything all that drastic or all that bad in comparison to other municipalities and to the projects that have been done," Woods said. "While it seems like a huge number, which it is, it's not anything unusual or out of the ordinary."

Woods was asked it the city has limits on what it can borrow.

"Depending on the purpose of the borrowing and use of the money, yes there are," he said. "One big point for anyone wishing to invest in a sound type of investment (municipal bonds) ... is that the city will raise the taxes needed to meet these payments. that's the guarantee, not only to the purchaser of the long-term financing but the investor."

Woods was asked if that was a requirement.

"Yes, that's when the constitutional debt limitation comes in so that if need be, if we have to, we can increase our tax rate in order to make the payments and that's the state law," Woods said. " ... For next year we'll be at about a 55 percent debt limit so we would have 45 percent ability left to increase the tax rate if we needed to to meet our obligations. those are rough numbers, I won't know exactly until the end of the year."

"When we got our new rating that was part of the criteria," Muscato asked.

"Exactly," Woods said.

Discussion turned to the cuts Frey has made in many of the equipment and supplies lines, especially if there has been less spending on the lines in the past.

"The mayor looks at a lot, the past history," Curtin said. "So that happens a lot."

"I see equipment cuts and equipment cuts, supply cuts and supply cuts," Third Ward Councilwoman Rose Floramo said. "How are these people working without supplies."

"That's been one of my concerns, just because nothing happened two or three years prior. Three years of age has accumulated on the equipment," Muscato said.

Muldowney asked if needed money would come from a contingency account.

"That's what the contingency is for after you take whatever you can out of the department," Muscato said.

"Unfortunately, it is the only part of the budget you can really make changes to because over 80 percent of it is mandated," Curtin explained. "So that's what happens to those lines quite often."

Council members then turned to Curtin's department and its budget. Frey reduced Curtin's 2009 budget request by $7,000, from $188,600 to $181,600 but Curtin had only one major area of concern. That was for the contracted services line which Frey cut from $65,000 to $60,000.

"I'm going to live with it. It's going to be very tight and that is mainly where our auditing services come out of for Johnson and Mackowiak and industrial appraisal," Curtin said. "We should be OK with $60,000. We're just doing a little more training now for reconciling payroll. ... There will be more coming out for that and also the auditors usually start in November. It's going to be tight but I think we can handle it."

Curtin then reviewed the general services lines. The contingencies line is the big one here, with the mayor putting $225,271 in this line. Some $140,000 of that would come from his proposed $.50 per thousand of assessed valuation property tax increase. It was pointed out that if the council cuts back on or cuts out the proposed tax increase it would come from this contingencies line.

Eliminating a tax increase would leave the line with $85,271, an amount that is low, according to recommendations cited by Curtin.

"In theory, an auditor would tell you have 1 percent of your budget allotted in that contingencies line," Curtin said.

The other major area of concern is the city's medical benefit package payments after the current policy expires March 31, 2009. The mayor increased the allocation for this amount in each of the funds by 15 percent and the city will now have to wait for a final figure sometime in 2009 for this line, which Frey set at $1,353,965 in Fund I; $216,150 in Fund II and $223,150 in Fund III.

The next review session is set for Monday at 5:30 p.m. in the second floor conference room in city hall and is open to the public. City Attorney Dan Gard and City Clerk Bill Tuggle are scheduled to attend.

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