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REGULAR MEETING October 10, 2016 U.S. Secretary of Transportation has recognized the City of South Bend by granting the City the Secretary's Award for Overall Success. This is the first time in recent memory that a U.S. Cabinet Secretary has recognized South Bend and it was largely based on our work with Smart Streets. We are not saying mission accomplished because we have a long way to go on this project but it is nice to see that validation for the approach that the Administration has pressed and the Council has approved. The First Lady of the U.S. also took time to single out South Bend for the work the City has been doing with her "Let's Move" initiative. That is a credit to a lot of people, largely in the County, on reducing obesity and encouraging child nutrition, wellness, and exercise. He stated his appreciation for the leadership and engagement of the Council on the question of community and police relations. It continues to be the top topic in public discussion for Mayors of diverse cities around the country and certainly that is true here. There continue to be a number of conversations both public and quieter private conversations which we expect to continue in the weeks and months to follow. He thanked the Council again for the dialogue that has been very much open so far. Mayor Buttigieg stated he would like to offer a couple of framing remarks around the budget and salary ordinances that are before the Council tonight and in two (2) weeks. The overall story, as he presented a few weeks backs when the budget was first brought to the Council, is that we are working with tight resources but finding ways to get ahead of future structural issues while maintaining the bond rating that has South Bend as one (1) of the best in our class fiscally. In particular there will be reorganization that has been asked of the Council and will be seen in the salary ordinances. Particularly consolidating the Parks and City venues into the Department of Venues, Parks, and Arts which we think will bring our place making to the next level. Forming the new Department of Innovation and Technology solidifies the gains we have made in terms of our ability to have a forward looking IT department. The Police Department is also undergoing a lot of structural and organizational work which bears on current and future salary ordinances. When it comes to the salary ordinance itself, the Council will see some fluctuations in headcount. There are a number of new positions, but six (6) of those in the Fire Department are intended to more than pay for themselves due to reduced overtime. There are also some reductions due to efficiencies like our Administration and Finance Department and a reduced caseload in the Human Rights Commission. Mayor Buttigieg wanted to state officially that the Administration heard the Council's interest in moving faster than originally planned on the migration to $10.10 as the wage floor for City employees. This was originally scheduled to be the second of three (3) years on a path to $10.10 but due to favorable news on income taxes and other adjustments that were made we were able to be receptive to the Council and make that part of the budget this year. We really are trying to adjust salaries throughout the City to maintain competitive from the bottom to the top. There will be interest in some of the salaries at the department head level, but we are always guided by trying to make sure our positions are competitive with our peer cities. Three (3) positions that are likely to get attention are department head level positions. Hopefully everybody will probably understand that the new position for the consolidated Department of Venues, Parks, and Arts has greater responsibility than the current director position has. Also, the Controller and Corporation Counsel positions have both demonstrated seven (7) figure value in terms of what the City can do when those departments are going well. Millions of dollars in refunding savings have come from the bond side in the Controller's Office and a tremendous amount of avoided litigation when it comes to the good work done by our Legal team. Those may attract some attention because their salaries are higher than the Mayor salary but that is appropriate given the market. Mayor Buttigieg stated he wanted to stress the philosophical point about salaries that what goes before the Council in the ordinance is not about any salary for any individual. Rather it is about the salary that is appropriate for the position. Decisions about an individual based on qualifications, experience, and performance are made with regard to what the Council passes as the cap. An individual may make that amount or an amount that is less than the cap. It is in that decision where the qualifications and success of the individual are considered. What we ask the 3