08-27-02 Personnel & Finance - Laserfiche WebLink

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Personnel and Finance Committee August 27,2002 Page 2 3. General Fund revenues are expected to increased by$3 million or 5.4%;and the EMS fees are expected to decreased by $247,574 or 10.2% due to the loss of the St. Joseph Medical Center contract&the redistribution of the county contract proceeds between the General Fund and Central Services. 4. Personnel costs will reflect the following: 5.3% average for police(ranging from 4.7% to 5.6%) 2.8% average for fire(ranging from 2.15% to 4.05%) 4% for Teamsters and non-bargaining 5. Police and fire pensions will experience funding shortfalls, despite the catch-up funding received from the State of Indiana in December 2001 and the additional distribution from the Public Deposit Insurance Fund which will cover the city through 2003. 6. Full-time employees have declined by"29.3 FTEs"with Street/Traffic&Lighting down 5; Water Works down 8; Wastewater/Sewage down 4; Solid Waste down 7; Parks down 1; and Century Center down 1. All of these reductions were done by attrition. Police have experienced 2% voluntary resignations and 4% for voluntary resignations and retirements. A handout was provided entitled"Turnover Rates January 1,2001 thru July 31, 2002" (copy attached). 7. Local Roads and Streets (LRS) and the Street Department have had their capital expenditures decreased from$2 million to$1.3 million;and will continue to have less. 8. The Mayor's guidelines were 0 % increase in supplies and 1.5% increase for other services,except for"unusual circumstances". 9. The Self-Insurance Employee Benefit Fund will increase by 13% with $ 8 million in costs anticipated for 2003. 10. The Liability Insurance Reserve Fund is projected to increase by 20%; with property insurance increasing 85% or by $227,000 and workers compensation claims increasing by 25% or by $151,000. 11. Four (4) funds will not be balanced: motor vehicle highway (MVH), police & fire pension funds, and the Sewage/Wastewater Fund; with wastewater rates needing to be increased before the end of this year. Mr. 011ett stated that there are"significant risks"ahead since property tax collections may be lower due to the appeals process. Additionally the formula for property tax increases is changing to an "income-based growth rate"rather than the flat 5%. COIT and EDIT will not grow as much as the City projected with COIT being reduced by $656,470 or 9.3%. Health care nationally is increasing between 11-20 % per year. 1998 and 2001 were bad years for the City and so far this year the City is spending at the same rate as 2001. The budget hearings will enable the department heads to give facts, figures, programs and actions to"touch and improve our neighborhoods and lives". Dr. Varner inquired whether the formula would be the same, with Mr. 011ett confirming that it