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

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CITY OF SOUTH BEND I OFFICE OF THE CLERK environmental actions from previous years. There is not a lot of money coming in and we've had a reserve in that Fund for a while. This year Water Works is going to spend some of that. There is more detail in your packet. We have the Cumulative Capital Development Fund and that is property tax funded. It is used to pay for Police Vehicle Capital leases. I think that was briefly mentioned in the Police Department Budget presentation last week. We are getting fifteen (15) new hybrid vehicles that are budgeted for in 2019 but we lease them and pay for them over five (5) years. Then the Cumulative Capital Improvement Fund actually has an expected decrease in property tax revenue in 2019. That is cigarette tax that goes into that Fund. We did call the Department of Local Government Finance (DLGF) to ask them why they were projecting decreases in the revenues and they said that they are just collecting less revenue which means they are selling less cigarettes which is a good thing although it sounds like perhaps vaping has taken its place so I did ask if they would start taxing the vaping stuff and they weren't quite sure on that. As of right now that Fund is expected to decrease and in 2019 we are expected to spend some of those funds on the My SB Parks & Trails Program. She went on, We also manage the Unemployment Compensation Fund. We've had quite hefty reserves in that Fund over the years. Our unemployment claims continue to be very low so we don't actually charge departments for that right now. We are self-funded so if someone claims unemployment against us, we pay it out. We don't pay into a Fund at the State level like most employers do. Since we are a municipality,we don't have to do that.We are using the cash reserves in that Fund for 2019. We expect we maybe need to start charging departments again in 2020 so they are factoring that into their budgets but as of right now, it has got very healthy cash reserves. The Parental Leave Fund #714 is a new benefit established in 2018. Many employees have taken advantage of this Fund and Kyra Clark will talk about that shortly when she talks about Human Resources. It is funded through a departmental allocation of a quarter percent (0.25%) for full- time wages. The cash reserves need to be evaluated. It is a new Fund and we are still trying to hit that sweet spot. We aren't sure who is and isn't going to use it so we just continue to monitor that. She continued,We also have Debt Funds that we manage.I am going to breeze through these since we have an entire hour to talk about debt next week so I won't belabor this too much here. We oversee the Debt Service Payments for the Parks Bond. The Hall of Fame has gone away and that levy has now been transferred up to that Parks Bond. We've got the TIF, Park Bond,Debt Service reserve and the Parks Bond Debt Service reserve. All that is basically just a savings account for that final debt payment that happens at the very end of the bond. There is also the Professional Sports Development Fund,the final payment will be made in 2019 and that relates to the Coveleski Stadium.This is a great example of the debt service reserve because we've got$525,000 that you'll see as a transfer into that Fund and that is that debt service reserve that was set aside many years ago when that bond was originally taken out and now we are going to use that to go ahead and pay off the bond in 2019. She went on, We have an Equipment and Leasing Fund #750. That is basically like a trust fund. We take out a capital lease for all of the department's budgets for their capital needs within their Fund. So you've got your trucks, cars and everything you can imagine people need and then are budgeted for. We then go out, request a lease from a bank, those funds, if they're not held by the bank, go into this fund so that they are segregated from everything else. We can see everything that is paid out of them. This is more of just an in and an out. The proceeds come in from the bank and they go out to the various vendors we are buying the equipment from. It allows us to very easily manage that whole process. You will also see the Building Corp Fund which is included in EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W Jefferson Bvld l South Bend,Indiana 466011p 574.235.92211f 574.235.91731 TTD 574.235.5567 I vww.southbendin.gov 15