05-23-11 Common Council Meeting Minutes

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REGULAR MEETING MAY 23, 2011 Mr. Dennis Andres, Executive Director, Morris Performing Arts Center, 211 N. Michigan Street, South Bend, Indiana, made the presentation for this bill. Mr. Andres advised that this bill would allow for the appropriation of $3,100 within the Morris Performing Arts Center and Palais Royale Market Fund #273. Revenues from this fund are generated from the solicitation of funding for commercial promotion sponsorships and Morris marquee sponsorships. Mr. Andres advised that pursuant to Ordinance No. 9768-07, the Morris Performing Arts Center has solicited and secured the necessary funding to cover the cost of manufacturing and printing 50,000 Morris Box Office Ticket Envelopes. He stated that they are requesting the required funds be released from Fund #273 for the purchase of said ticket envelopes. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill. Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 26-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CREATING A MORRIS PERFORMING ARTS CENTER/PALAIS ROYALE BALLROOM BOX OFFICE AGENCY FUND (#725) Councilmember Puzzello, Chairperson, PARC Committee, reported that this committee held a Public Hearing on this bill this afternoon and sends it to the full Council with a favorable recommendation. Mr. Dennis Andres, Executive Director, Morris Performing Arts Center, 211 N. Michigan Street, South Bend, Indiana, made the presentation for this bill. Mr. Andres advised that the Morris Performing Arts Center and Palais Royale Ballroom collect certain revenue payments and deposits in advance of events at the facility. From these receipts, certain event expenses are paid to promoters and other vendors. Upon completion of the event, an event accounting settlement is prepared and the new revenue or profit is realized by the City and transferred to the General Fund or other appropriate City fund. During the recent audit of the City by the State Board of Accounts, it was discussed with City Administration that it may be beneficial to set up a separate “agency” fund to account for these transactions. An agency fund is a common governmental fund type that is used to account for monies that are collected for and remitted to other entities (i.e. payroll tax withholding). An agency fund does not record revenue and expenditures and, thus, is not subject to annual appropriation. An agency fund records only cash and liability transactions. Mr. Andres stated that it is in the best interest of the City of South Bend to establish a Morris Performing Arts Center/Palais Royale Ballroom Box Office Agency Fund 725. The new fund 725 will be a non-reverting fund and may earn interest on outstanding cash balances which will be used to offset bank charges, with any remaining amounts distributed to the General Fund or other appropriate City fund. Fund #725 will not be subject to appropriation by the City of South Bend Common Council but will be reported in the City Controller’s Cash Report, the City and Town Annual Report and other similar accounting reports. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill. Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. 8