It was hard to tell who was supporting who during Monday’s New Albany City Council work session regarding a $2 million funding request for the public safety departments.

While Mayor Doug England pleaded with the council to shift salary related expenses from the fire and police budgets to the Economic Development Income Tax account for 2010, he said unions are going to have to concede on some of their demands or face layoffs.

Most of his warnings were directed at the fire union, as the majority of the requested EDIT appropriation would go to the department. More than $1 million would be used to keep current fire department staffing levels including ambulance personnel.

There’s not enough money budgeted to cover the fire department’s estimated payroll for this year.

That’s taking into account limiting employees at the Market Street fire station when overtime pay would be required to staff it, a move that’s already been made.

“Bottom line is that’s not making up $1 million,” Fire Chief Matt Juliot said. “I don’t know where the union could come up with $1 million to give back.”

One of the sticking points between the administration, council and union is the policy dictated by the fire contract that up to four firefighters can be off each shift.

Robert Mann, president of the New Albany fire union, said lowering the total to three firefighters off a shift would only save about $100,000 a year in overtime costs and would still leave the department under funded.

“We’ve always been willing to sit-down with you,” Mann said to England.

The fire department has already taken its second ambulance off line to limit overtime costs, leaving it with just one ambulance to serve New Albany. There are private companies that pick up the extra ambulance runs, but Juliot said not all are staffed with first responders that are highly trained and qualified.

Neither Juliot or New Albany Police Chief Greg Crabtree control the contracts between their departments and the city. They are decided by the mayor and the union heads.

England said that the city is running out of money to staff the fire department and concessions will have to be made by the union or layoffs will have to occur.

Juliot said between 15 and 20 firefighters would have to be let go if the EDIT appropriation is not granted by the council. While England painted a depressing picture of what lack of cooperation between the union, administration and council could bring, he defended the public safety wings for asking for help.

“They’re not coming down here for more money, they’re here to maintain service levels,” he said.

According to Mann, New Albany already operates short of National Fire Protection Association standards that call for each truck to be staffed with four firefighters.

New Albany’s contract only requires three firefighters per truck, which is basically a safety risk and already a concession, Mann said.

The police department is asking for $500,000 for five new officers and $100,000 for overtime costs this year.

The council approved the new officers last year, but the EDIT funding was used to help cover the general fund budget shortfall.

The police presentation was much shorter than the fire department’s with the council asking few questions of Crabtree.

But there were plenty of eyebrows raised by the council concerning the 2010 budget and how it’s been impacted by year’s past.

According to administration figures, problems began in 2003 when the city borrowed $2 million from the sewer utility for the general fund. It allowed the fund to end with a surplus in 2003, but it incurred debt the following year and has ever since.

The city also received more money from the state fire pension fund in 2003 than usual, but in 2004 there was less money to work with and the $2 million had to be paid back to the sewer utility.

City Controller Kay Garry said getting money back from the state later than usual has also contributed to the shortfall in the general fund.

The city was awarded about $532,000 in a levy appeal from the Department of Local Government Finance last month. The appeal was based on an error by the city in calculating its maximum levy, and the $532,000 will go to the general fund.

That could create a surplus in the budget this year and the council should use it to pay off some of the deficit, England said.

“The bleeding was there and we’ve got to stop it,” he said.

But Councilman Bob Caesar said the administration has to get reliable figures to the body each month before it can take care of the red ink.

“When we ever get numbers we know we can rely on, we’ll make sure [the general fund] is balanced,” he said.

The city has a little less than $4 million in unencumbered EDIT funds available for 2010. Combined with rainy day and river boat funds, the EDIT amount gives the city about $8.3 million in discretionary funds.

If it went his way, EDIT could help fund police and fire for two years until annexation expands the city’s property tax base, England said.

The council is likely to take the third and final reading on the EDIT request at its Feb. 18 meeting.