09-30-10 Special Meeting Minutes

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SPECIAL MEETING SEPTEMBER 30, 2010 Councilmember’s to raise the local option income tax. He stated that according to the Mayor these increases were so destitute and dire that the City would have to drastically cut public safety. Primarily Police and Fire Protection and this scare tactic must have worked because we got the tax increase. Now the Mayor wants to use a portion of these tax increases to give raises to a few select employees. Some of the raises were at 5% and fortunately the Mayor was vague in his presentation and the Council balked at that and he commended those Councilmember’s who did so. He stated that the Police, Fire and Teamsters have not gotten significant raises in the last few years and questioned why non-bargaining employees would be considered for such a large increase. He stated that he would like to see who was slated to receive these pay increases. He stated that he would bet that they were not the people working in the office who serve the public everyday in their jobs; however 2011 is an election year what a coincidence. He stated that he sees a pattern here and he doesn’t like it. He stated that he sees an administration that is running this city and uses any means to further their agenda with little regard to the long range effect on the city, the residents of the city or the county. The Mayor along with Pat Bauer and a few other state people have lobbied hard for INDOT to put in the most expensive route for the U.S. 31 limited access highway right through the heart of South Bend and it will directly cut off the south side of the County access to the City. The administration has conned the City and County Council into supporting this reckless spending repeatedly and have left a legacy of higher taxes, bloated budget, increased violent crimes, increased vacant lots and housing stock, a 5% higher allowable property tax cap than the other 90 counties in the state. A school corporation on the verge of being taken over by the State for lack on non-performance and a city that couldn’t keep its only non-profit television and radio stations in South Bend. He likened it to Chicago politics at its finest and urged the Council to vote no against this bill and to begin to take steps necessary to repeal the local option income tax and the wheel tax. He asked for the Council to put a moratorium on non profit business expansion and tax abatements until we have a substantial tax base expansion. There is not going to be any growth economically in the city with the way things have been done for the past 15 years. He asked the Council to do the hard things that are necessary to get things turned around so we can be like we used to be. In Rebuttal, Mr. Zientara declined any rebuttal. Councilmember Henry Davis asked Mr. Zientara to define Economic Value. Mr. Zientara stated that it is like a monetary value. One can place a monetary value on the elements of a transaction. Mr. Davis asked if it was like a measurable outcome. Mr. Zientara stated that he does not define it as a measurable outcome. He stated that he defines that as something different. Councilmember Henry Davis asked how did we get to this point and give raises to the employees of the City of South Bend. Mr. Zientara stated that it was his recollection, that back in 2008 when the State was debating on passing property tax reform, he assumed that the City Administration and the Council were in discussion, he stated that was before his time with the City, and debating what the financial impact that this state legislation would have on the City. It was not easily determined because the formula was constantly changing but there was discussion going on and this discussion led the city and council in making its way and respond to its reduction in revenue. He stated that one action was reducing its workforce another action was to look at the budget and find where reductions could be made. Looking for efficiencies and looking at wages between Police, Fire and Teamsters that already had three year agreements in place. He stated that when it came to non-bargaining employees their wages were essentially frozen or voluntarily given back in 2009 and 2010 as a measure to try to reduce costs of city operations. Furthermore, the same group of people including department heads and other members that took a voluntary 5% reduction in their compensation as a way to help the city determine what its short-term financial 7