09-27-10 Common Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 27, 2010 Services, City business & liability insurance, employee benefits, unemployment compensation. The funds are internal city funds and are self sustaining with no city specific fund taxpayer support. Revenues are derived from fees for services to internal city operations. There are three (3) Trust & Agency Funds including Firefighters Pension, Police Pension and City Cemetery Trust. The funds are trust funds and self sustaining with no city specific fund taxpayer support. Revenues (fire & police pension) are derived from State supported money and City Cemetery revenues from private donations. Mr. Zientara stated that they had discussions early in 2010 with the St. Joseph County Assessor to get estimated assessed values for 2011. Mr. Zientara reviewed key revenue highlights noting that assessed property value 2010 pay 2011 projected down 5% (on heels of 2008 -2%, 2009 -10%, 2010 -9%) The collection rate of 2010 pay 2011 taxes set at 95% (2008 96%; 2009 90% and 2010 94% projection.) Total Property Tax Revenue ’10 pay ’11 down $.2 million. COIT Revenue down $2.2 million (18% from base, 2009 level. EDIT Revenue down $2.2 million (18% from base) and Public Safety LOIT Revenue down $1.1 million (18% from base.) General revenue down 0.7% or $.5 million; Parks & Recreation business revenue down 3%; Sewer Revenue up 19% due to rate increase for CSO capital funding and water utility business revenue down 4% due to pumping volume declines. Mr. Zientara discussed assessed value, property tax revenue status & projections on a spreadsheet on pages seventeen (17) and eighteen (18) of the power point presentation. Mr. Zientara advised that the City Administration has proposed a continued fiscal responsible budget despite continued property tax & other tax revenue declines and business revenue stagnation. He reiterated a balanced Genera Fund budget with water & sewer bonds spent down $10.7 million of prior year bond proceeds, police grant spent down $1.0 million of prior year grant proceeds, police and fire pension spent down $1.2 million of prior period proceeds and water utility business loss $.6 million, $600,000 due to loss of revenue. Mr. Zientara noted on page 20 of the power point presentation is a 2011 Proposed Budget Expenditures with comparison. Mr. Zientara closed stating that the City Administration’s proposed budget has been available to the public in documents filed in the Office of the City Clerk and on the City’s Website since the August 16, 2010 meeting with the Council. He noted that the City Administration has been engaged with the Common Council in Committee Meetings (7 sessions, approximately 14 hours) with respect to the proposed budget since the initial th meeting on August 16. He stated that the City Administration looks forward to finalization and adoption of the budget by the Common Council. Mayor Luecke thanked the Council for all the time that they have put into the Budget Hearings. He stated that the city’s budget is a complicated document that requires a lot of study and the time that the Council has spent with department heads has been very fruitful and appreciates the suggestions and is aware of additional adjustments that have been requested and would certainly like to look at. Mayor Luecke made one clarification of Mr. Zientara in that the Public Safety LOIT funds both the Police and Fire Departments. Mayor Luecke stated that he believes that this is a responsible budget, lives within the City’s means even with the further decreases in revenue sources and builds a stronger foundation from the previous cuts that were made last year from efficiencies that were developed. It allows the City to maintain the quality of life that the residents of South Bend expect and deserve and we continue to find better ways to do our work and grow our economy. He stated that they look forward to final passage of the budget in the next couple of weeks and would happy to answer any questions that the Council may have. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Councilmember Henry Davis, Jr., thanked City Controller Gregg Zientara for giving a very detailed account of the budget. He stated that he would like to make some comments on some of the projects regarding economic development that were noted in the budget presentations that were made at the hearings before the Personnel & Finance Committee. He noted Portage Prairie, Eddy Street Commons, Hall of Fame, Coveleski, Century Center, but did not hear LaSalle Square mentioned at all. He stated that he had an opportunity to talk with a gentleman obviously a developer who is working with the City and with the Chamber of Commerce for over a year and half and is nowhere near 6