09-05-18 Personnel and Finance (#6)

Home Browse Search

CITY OF SOUTH BEND I OFFICE OF THE CLERK has actually allowed us to have very strong cash reserves in our Fund. So that, along with the fact that we have our Health and Wellness Clinic, has done great things for the City. I think our employees are healthier and I can't speak for everyone but I think it is doing a great job. With the use of the Clinic and the continual monitoring of that and looking at different programs and wellness ideas, we've actually come out ahead every year in that Fund. Last year alone I think we ended the year with$3 million as about what we charged all of our departments. So with that,this year, we are going to tap into that a little bit and eat down some of our reserves because we have so much. We don't want stock pile funds for ever and ever and never use them. So part of what we are doing this year is spending down that Fund just a little bit knowing our cash reserves stay very strong in that Fund through 2023. We will also be holding our Employee Contribution Study with no increase for 2019,which is a bonus. I think typically that has increased about two percent(2%), so nothing huge, and we still have a great and affordable program. It is one (1) of the most affordable in the area when we look at all of the plans that our insurance provider handles. We are very competitive and very low with a really great plan. That is really good news for our employees. In 2020 we do expect plan redesigns. That doesn't mean that our contributions are going to double or anything like that, we are just working very closely with our insurance company to redefine what the plan is and how that looks. HR will talk more about that. She continued, So, within our Fund #711, not only are we including the actual cost of health insurance but also the harassment awareness training that Council has requested. We have that budgeted for. Wellness programs including O'Brien Fitness Center and other City fitness centers, employees can be members there, we pay back Parks for their memberships at the different facilities. And also TRANSPO bus passes. If an employee needs a way to work, we will go ahead and fund a pass for them. Then our General Fund, again, our Administration and Finance budget is within the General Fund. We will have a much larger conversation about this on September 20, 2018 and likely before then as well but just so you know, the General Fund is projecting a one percent (1%) increase in property tax revenue. I think that is very conservative but it depends on who you talk to. We are going to go ahead and stick with the one percent (1%) revenue and we will have reports to share with you soon but know that is where we stand on our General Fund revenue. She went on, So those were our major ones. Those are the really large dollar amounts you will see on your overview in your packets. We do look at other Funds that we have our fingers in and we make sure we are managing those very closely.The Rainy Day Fund I just spoke of,we have about $10 million in cash reserves as of July 2018 in that Fund. It is very, very strong. It had been asked when the last time was that we touched that Fund. I researched that and 2008 was the last time we dipped into that Fund. I believe what had happened was that the County was delayed in giving us our property tax receipts, so we actually took out and put back the same amount of money in the same year. So I am not aware of the last time we took money out and didn't replenish it. It is there for an emergency and we hope to never use it. It is one (1) of those things that the bond rating agency always goes back to. We have such strong cash reserves in our Rainy Day Fund and we hope to keep it that way. She continued, Councilmember Scott, you were just asking about Fund #217. Here you go. We also manage the Gift, Donation and Bequest Fund. You can donate to it, yes. There is no cash reserve requirement for that because it is donations coming in and then we spend them. Sometimes it is in the same year and sometimes it is the following year. The Lost Recovery Fund #227 is actually a Fund we manage but Water Works spends the money. Revenues are derived from EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 46601 I p574235.92211 f574.235.9173 I TTD 574.235.5567 I www.southbendin.gov 14