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Budget Study Session May 18. 2005 as easily write the grant him or herself. Mr. Ollendorff said many groups in University City could benefit from this kind of service as well. The fire grant is the next one to be written. Ms. Welsch asked Ms. Colquitt if a grant writer was paid prior to receiving the grant and was advised no. The writer is paid only if the grant is received. Ms. Brungardt said the grant writer she met earned $800,000 for her city and received ten per cent of that for her salary. Mr. Ollendorff said he could give her "three a year." He said he would love to have someone willing to do it on percentage basis. The next item is C-84. The first line, contingency $361,000, will be replaced in the final budget by a "zero." Some needs have not been budgeted, and through the budget process, there are items the Council will want to add. For example, $60,000 for hiring expenses in the "transition process" for the succession is one. Another is funding the fire department's equipment reserve. There are several other items, too, and three main needs have not yet been defined: 1) the two pension funds' reserves, and 2) some major construction project costs; and 3) the additional expenditures added by the Council. Mr. Ollendorff provided examples and details of these points: $1,000,000 to complete the recreation facility, $400,000 for City Hall, the fire station on North and South which may need additional funds, which will be know after receipt of bids on June 7'h. Total needs will be close to one and a half million dollars. The sum of $600,000 may be borrowed from the capital improvements sales tax. He said he was providing a general scope now and that Councilmembers would receive details later. Budgeting cannot occur until grant money is received. By the time the budgeting process is completed, the City Manager will show Councilmembers how to find the money in the event the grant is not received. Ms. Welsch asked for confirmation of the figure available for the fire station, $1,800,000, and was advised that the expenditure is currently unknown and that this figure is the estimated cost. She asked if the figure Mr. Ollendorff cited should be $3,000,000 and was told the City has the sum for the fire station, $1,800,000 and were awaiting the bids. The "short-fall" could be larger than anticipated. Mr. Ollendorff said it is possible that part of the $361,000 will be used for one or another of these projects, but his intention is to achieve "zero" by the end of the budget process, on the contingency line. Ms. Brot said she thought money would have to be borrowed, and Mr. Ollendorff said the City would borrow another $600,000 in June towards these costs, and the expense of the additional borrowing is the next two lines: debt repayment: principle and interest. Mr. Norfleet corrected Mr. Ollendorff by pointing out that "new borrowing" was on page C-90, principle and interest next year on the borrowing to take place in June 2005. Mr. Ollendorff announced posting of the meeting for Monday, May 23, 2005 for 5:30 for executive session on personnel all related to budget personnel issues. There will be a Study Session following the Regular Meeting of the Council on that same date, if needed, to discuss the revenue section of the budget. If the budget study is not completed, another meeting will be set. The budget needs to be adopted by mid-June Page 13