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COUNTY-CITY BUILDING <br />227 W. JEFFERSON BOULEVARD <br />SOUTH BEND, IN 46601 <br />V <br />�] <br />PEA <br />F+y <br />�F <br />1965 <br />CITY OF SOUTH BEND STEPHEN J. LuEC€CE, MAYOR <br />OFFICE OF ADMINISTRATION & FINANCE <br />GREGG D. ZIENTARA, CITY CONTROLLER <br />November 17, 2010 <br />Mr. Derek Dieter <br />President, South Bend Common Council <br />4" Floor, County -City Building <br />South Send, IN 46601 <br />PHONE 574- 235 -9216 <br />FAX 574 - 235 -9926 <br />Re: Ordinance of the Common Council Creating a new Fund to Account for unemployment <br />Compensation Expenditures <br />Dear President Dieter: <br />The employees of the City of South Bend are covered under federal and state unemployment insurance <br />laws. As with most local units of government, the City of South Bend is a "reimbursing employer" and <br />repays the Indiana Department of Workforce Development monthly for actual unemployment claims paid <br />to eligible former employees. <br />Unemployment compensation costs are currently paid from departmental operating budgets and the <br />amount of unemployment claims paid has proven to be difficult, at best, to estimate and budget <br />accurately. Establishment of a dedicated Fund, managed by the Office of the Controller, will enable <br />greater efficiency and financial control of unemployment funds expended. <br />Thus, it is in the best interest of the City to establish a new Unemployment Compensation Insurance Fund <br />( #713), which will account for the payment of unemployment claims in a single Fund and will charge an <br />allocation to user departments to cover the estimated costs of claims. The Unemployment Compensation <br />insurance Fund will be classified in the annual financial report as an internal service Fund because it <br />benefits other City departments. The new Fund 713 will be a non - reverting Fund and will earn interest on <br />cash balances. This Fund will be subject to appropriation by the City of South Bend Common Council. <br />The 2011 budget for Fund 713 was passed by the Common Council on October 25, 2010. <br />I will present this Bill to the Common Council at the appropriate Council Committee meeting, public <br />hearing, and at the Council meeting. I am available to discuss any matters concerning this Bill at the <br />convenience of the Council. <br />Luecke, Mayor of the City of South Bend <br />