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Minutes of the 2007 Budget Meeting of
<br />The North Olmsted Parks and Recreation Commission
<br />February 19, 2007
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<br />Mr. Baxter asked Mr. DiSalvo another question about the expenses. He did not know exactly what
<br />happens when the Budget is approved, but according to what is being looked at, the Rec underspent
<br />the budget by at least $232,000, is that right? Mr. DiSalvo said that is a fair statement; however, the
<br />MUNIS Report has presented three different figures for year-end totals. This issue has been
<br />communicated to the Finance Director, and it’s not known at this point why this is happening. The
<br />Finance Department is looking into this issue. Technically, we saved almost $232,000, but that is not
<br />written in stone because every time John (Dailey) and the Commissioner received the reports, the
<br />figures changed, and they should not. Mr. Dailey said that it has to do with how the Finance
<br />Department is printing it; a change in one little keystroke or something. Mr. Baxter said there will be
<br />$200,000 under spending. Is someone going to nail you to the cross if you take $20,000 and buy the
<br />bleachers, because you are already underneath the budget. Mr. DiSalvo said that he said it at the last
<br />meeting: even though $232,000 was saved, shame on me for not spending it, because the
<br />Commissioner was short $80,000 in income. They are two totally different things. Any money we
<br />save goes back into the General Fund: it doesn’t go back to Rec, but back to the City’s General Fund.
<br />Even though the Rec is diligent in saving costs, because the Commissioner did not get the revenue
<br />projected, the money goes back to the City. In principal, what Mr. Baxter is saying is true, but in
<br />reality, they are two separate items. Ever since The Commissioner has been here, he’s thought he’s
<br />had a great year by saving money, the income puts The Rec in a bad place. The problem is that it’s
<br />not like the Commissioner knew he was going to save $200,000, because when the year closes and
<br />there are open POs, it takes two months for that to close out. If the Rec had known, then Mr.
<br />DiSalvo would have transferred money back into capital funds. That’s what is difficult about this.
<br />The biggest obstacle with the expense problem is that it takes two months for Finance to close out an
<br />account. That is what the issue is. That’s why up until the last day of our fiscal year, we are not
<br />spending anything, and then we find out what we have saved because the open accounts finally close
<br />out and you find out that you saved all that money.
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<br />Mr. Scarl said he was agreeing with Norm (Baxter): if you have a budget, and it’s been cut to bare
<br />bones, you still can still save money, why can’t the City give you some kind of rainy day fund to take
<br />care of some issues that come up? Mr. DiSalvo said that the only answer he could come up with is
<br />that with all the account lines, because they are so scattered, he cannot give a good answer. Mr. Scarl
<br />said they understands that; he understands that the City has given the Recreation Department a bare
<br />bones budget, just as it did in every Department in the City to save more money, but $232,000…and
<br />you’re only $80 some thousand short, that’s still $140,000 that the City got that they didn’t anticipate.
<br />Mr. DiSalvo said that he would say best case would be that we did save the $232,000; worse case
<br />would be $200,000. Mr. Baxter said that’s a lot of bleachers. Mr. Scarl said that’s money that they
<br />(the City) did not anticipate, and when it comes back to her and the Finance Office, she’s happy. Mr.
<br />DiSalvo said this is not Carrie’s call, because it’s by law that the money must go back into the City’s
<br />General Fund. Mr. Dailey said we must project our expenses, so any time we fall back on our
<br />revenues, we have to find a place to cut our expenses. Mr. Barker said that a meeting is being set up
<br />with Carrie Copfer. Mr. DiSalvo stated again that the Rec has averaged saving about $200,000 a year
<br />since he has been here, and it’s frustrating. Mr. Baxter said he knows the Commissioner is doing a
<br />good job of saving and being careful, and then there are some projects not being done because there is
<br />no money.
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