08-15-12 Personnel & Finance - Laserfiche WebLink

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Mayor Stephen L. Luecke apologized for being late for the meeting, noting that he was in Indianapolis attending a Sub-Committee meeting of TACT for Local Government Financing. They are working to make the process more equitable for raising revenues and are working with consultants and reviewing procedures used in other states. They will be bringing a proposal to the General Assembly to help fix the property tax problem which places too heavy a burden on property tax payers. The Mayor complimented City Controller M. Catherine Fanello, Director of Budgeting & Financial Reporting Tom Skarbek, and all Department heads. He noted that guidelines were sent to department heads earlier this year to decrease supplies and keep service accounts even. A 2% figure was suggested to be used as a "plug figure" for salaries, noting that the Teamsters will receive 4%next year. The Mayor stated that with regard to the police and fire departments that the plugged 2% salary figure was "not meant in any way that it was an end place" and that he is not trying to take away or supersede the Council in this area. Mayor Luecke noted that the proposed budget is balanced and continues to provide for all services. It incorporates modes pay increases. There will be seven (7) positions decreased for 2006 by attrition and that since 2002 fifty-one(51)positions have been decreased. There were several assumptions utilized in the preparation of the proposed budget: • The full 3.9%increased growth will be utilized • Teamster salaries will reflect a 4% increase; non-bargaining will reflect a 2% increase and fire and police have"been plugged at 2%"increases • Transfers are necessary for the police and fire pensions • $1.2 million increases are reflected for health insurance • $1.2 million for health insurance reserves • $700,000 of Rainy Day Funds will be used if needed The proposed budget reflects no dollars for capital in 2007. Approximately $3 million for capital was budgeted in 2003 and in 2004; $2.2 million in 2005 and no dollars are being addressed in the 2006 budget for 2007. COIT revenue reflects a decrease of$1 million and auto excise is down $300,000. Merit bonus have been eliminated and will be replaced with an"Employee Incentive Program". The Mayor then provided a 2-page handout entitled "2006 Requested Salary Changes" and highlighted portions of the document(copy attached). Mayor Luecke stated that the new dollars generated will be $1.4 million and that $745,000 have already been collected of the $1.67 million total. Miscellaneous revenue is down by $280,000. He noted that these are challenging times,but that the city is doing very well when compared to other communities. Council Member Rouse inquired about the balance of the Rainy Day Fund after the proposed $700,000. The Mayor stated that balance would be$1.3 million. August 15,2005 Personnel and Finance Committee Meeing Minutes -page 5-