Posted Tuesday, November 17, 2009 --- 10 p.m.

Tuesday night they held a special session to look at the solutions available to them.

Every department in the Village of McFarland, including the police department, was facing cuts if the village board and the unions couldn't come to terms.

Luckily, they did and that has a lot people resting easier.

No one's been spared in this difficult economic climate. This year the Village of McFarland has seen significant reductions in investment income and increases in spending.

"There's a combination of factors that have affected this year. Most significantly has been a decrease in revenue coming to the village."

Village President Mike Harried says last year they also lost 15% in shared revenue from the state.

Tuesday night, the board held a special session to talk about what comes next...layoffs or pay cuts for everyone, including the police department.

Harried says, "We have proposed that they forego their scheduled 3% increase in 2010. They will still receive their step increases and in lieu of not getting the 3% increase we will guarantee no employee hour reductions."

But many felt that layoffs would be worse than pay cuts.

Police Chief Greg Leck says, "Being a small agency there's not any excess personnel to be able to absorb openings. In fact anytime we've had a vacancy in the past it has caused us to accumulate a lot of overtime and hours and things like that to scramble to fill the shifts. "

Luckily layoffs won't be needed. Tuesday night during a closed session the Village Board and the police union, along with one other union, came to terms.

The announcement has some, like Jim Reiter, a Monona Police Officer and Village of McFarland resident resting a little easier.

"It feels good. It feels likes it a win-win situation for the board, the community."

So what all of this means is that the Village of McFarland won't lose any services but its employees will be taking a pay cut.