12-12-11 Common Council Meeting Minutes

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REGULAR MEETING DECEMBER 12, 2011 BILL NO. 76-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, TRANSFERRING $25,000 FROM THE RAINY DAY FUND NO. 102 TO THE UNEMPLOYMENT COMPENSATION INSURANCE FUND 713 WITHIN THE CITY OF SOUTH BEND Councilmember LaFountain, Chairperson, Personnel and Finance Committee, reported that this committee met this afternoon on this bill and voted to send it to the full Council with a favorable recommendation. th Gregg Zientara, City Controller, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mr. Zientara advised that effective January 1, 2011, the City of South Bend, established the Unemployment Compensation Insurance Fund #713 (Ordinance No. 10059-10, adopted 12/13/2010) for the payment of unemployment insurance compensation claims in a single fund affecting an improved financial control over unemployment compensation claims required to be paid to former employees presented to the city by the Indiana Department of Workforce Development. Ordinance No. 10059-10 provided for the implementation of an “unemployment claim fee” to be charged to city operating departments to provide funding from departmental operations to the Unemployment Compensation Insurance Fund to affect payment of unemployment insurance claims. Due to a higher level of unemployment compensation insurance claims paid to former city employees than originally anticipated and projected, entirely the result of federal legislation extending the length in the months of benefit coverage, the Unemployment Compensation Insurance Fund is currently in a deficit balance. It is therefore necessary to temporarily transfer monies in the amount of $25,000 from the Rainy Day Fund No. 102 to the Unemployment Compensation Insurance Fund 713 to correct the deficit thereby meeting 2011 operational costs. The Rainy Day Fund has sufficient monies (in excess of $8.4 million) to accommodate this temporary cash transfer. Mr. Zientara stated that the Unemployment compensation Insurance Fund will reimburse the Rainy Day Fund prior to June 30, 2012. He noted that the Office of the City Controller will continue to review the activity in this fund and the activity of unemployment claims in fiscal 2012 and determine and effect any required adjustments in “unemployment claim fees” charged to City operating Departments and funds. Mr. Zientara further noted that the Office of the City Controller, through the Human Resource Department, will discuss and investigate wit the Indiana Department of Workforce Development, potential strategy and approach to affect an improved control, if possible, of unemployment insurance claims. 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 Puzzello seconded the motion which carried by a voice vote of nine (9) ayes. BILL NO. 77-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FOR BUDGET TRANSFERS FOR VARIOUS DEPARTMENTS WITHIN THE CITY OF SOUTH BEND, INDIANA FOR THE YEAR 2011 Councilmember Puzzello made a motion to consider the substitute version of this bill. Councilmember White seconded the motion which carried by a voice vote of nine (9) ayes. 14