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COUNTY-CITY BUILDING _ PHONE 574-235-9216 <br /> 227 W BEND RN 46603 BOULEVARD � OU TIC$ FAX 574235-9928 <br /> t i <br /> CITY OF SOUTH BEND STEPHEN J.LUECKE,MAYOR <br /> OFFICE OF ADMINISTRATION& FINANCE <br /> GREGG D.ZIENTARA, CITY CONTROLLER <br /> November 23, 2011 <br /> Mr. Derek Dieter w\ l lo <br /> President, South Bend Common Council <br /> 4ffi Floor, County-City Building <br /> South Bend, IN 46601 <br /> Re.- Ordinance of the Common Council Transferring Monies from the Rainy Day Fund to Support <br /> Temporary Cash Flow Issue Negative Cash Balances in Certain City Funds <br /> Dear President Dieter; <br /> Effective January 1, 2011, the City of South Bend established the Unemployment Compensation <br /> Insurance Fund #713 (Ordinance No. 10059-10, adapted 1211312010) for the payment of unemployment <br /> insurance compensation claims in a single fund affecting an improved financial control over <br /> unemployment compensation claims required to be paid to former employees presented to the city by the <br /> Indiana Department of Workforce Development. <br /> Ordinance 10059-10 provided for the implementation of an "unemployment claim fee" to be charged to <br /> city operating departments to provide funding from departmental operations to the Unemployment <br /> Compensation Insurance Fund to affect payment of unemployment insurance claims. <br /> Due to a higher level of unemployment compensation insurance claims paid to former city employees <br /> than originally anticipated and projected, entirely the result of federal legislation extending the length in <br /> the months of benefit coverage, the Unemployment Compensation Insurance Fund is currently in a deficit <br /> balance. <br /> It is therefore necessary to temporarily transfer monies in the amount of $25,000 from the Rainy Day <br /> Fund 102 to the Unemployment Compensation Insurance Fund 713 to correct the deficit thereby meeting <br /> 2011 operational costs. <br /> The Rainy Day Fund has sufficient monies (in excess of $8.4 million) to accommodate this temporary <br /> cash transfer. <br /> I have attached a pro-forma cash flow schedule to this letter (not a part of the spending bill request) to <br /> provide Council with an improved understanding of the 2011 Unemployment Compensation Insurance <br /> Fund actual activity and a projection of forecasted 2012 cash flow activity. <br /> The pro-forma analysis demonstrates the high level of claim "payments", the result of extended federal <br /> benefit coverage, paid for by the City of South Bend versus the projection of claim payments indicated as <br /> "receipts"on the pro-forma schedule. <br />