I worked for a County Public Works agency for approx. 9-years and left to go into the private sector 6-years ago.

Last summer I found myself downsized out of that position due to the Economic downturn.  I accepted a position to get back to work while I continued to look not knowing how long I could have ended up out of work.  The fit has not been great and came with a 36% pay reduction from my previous job.

Now, a position has opened up with the Public Works agency again, my old job.  2-guys have now left and a 3rd (their Chief Inspector is on Medical Leave for 4-6 or more weeks).
They have not advertised or hired anyone to replace one that left a year ago, nor have they replaced 2-Engineers that have left (1-retired, another got married and moved out of state).

Any tips on how to handle the Interview and compensation questions?

The starting pay range extends to above what I currently make, yet just below the rate when I left.  The total range extends to $2.40/hr over what I made in my last position.