08-27-03 Personnel & Finance - Laserfiche WebLink

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• • Personnel and Finance Committee August 27, 2003 Page 8 They have used a lottery for weddings at the Basilica at Notre Dame and it was hoped that they could cash in by having their receptions scheduled at the Palais Royale Ballroom. This turned out to be a tactical error. Dr. Varner asked how big a wedding would have to be to be held in the Palais Royale. Mr. Andre said 100 would be acceptable,however 250 would be great. The figure to rent the Hall is $ 1,875, plus a minimum food charge. He noted that the caterer has invested$500,000. At this point in the meeting, Council Member Aranowski asked the Mayor for a summary of the budget guidelines and for an update on the storm damage. Mayor Luecke stated that this budget experience provides a great time for learning. The operating budget is in the black with surpluses. The proposed budget is $163 million which includes all general and bond funds and all of the utilities. A $3 million surplus in the general fund is projected. The challenges include drawing down on the resources due to the extraordinary investments in the Police Department, Fire Department and Public Works Department, as well as the Southeast Park. COIT revenues are projected to be down. Non-bargaining employees are to receive the same increase as Teamster employees, namely 4%. Police officers will receive 5.3% and the firefighters will receive 4.3%on average, noting that cash allowances are being shifted into the base. Overall personnel will reduce by eight (8) persons, city-wide. There have been 29 decreases made in the past two (2) years thru attrition. For example, the Trash Pilot Program has eliminated personnel and increased efficiency and the `Elephant" pot hole machine is another example. Mayor Luecke stated that Department heads were asked to have a 0%increase in services and a 0% increase in supplies. The budget will have a significant effect by the growing health care costs. Liability insurance is another challenge as well as pensions, with the police and fire pensions being in a deficit situation. DROP has been putting a stress on the system. Mayor Luecke noted that he is proud of the budget as proposed and the level of services being provided. The City has a strong bond rating. Mayor Luecke noted that for the first time the City will receive gaming revenue of $683,000, with the maximum allowable being 4.8% under the state's formula. Council Member Aranowski stated that the Committee would make a formal recommendation on September 22nd. Dr. Varner asked about the new budget formula. Mayor Luecke noted that the past six (6) years are indexed. Tom Skarbek noted that you are permitted to go over 5%, and Rick 011ett noted that you can go up to 6%. Council Member Kirists inquired whether a new fund would be created for the gaming revenue, noting that the City of Bremen recently created a new fund. Mayor Luecke stated that the gaming revenue would be receipted into the General Fund. Council President White inquired about information and technology challenges. Rick 011ett stated that a web designer will be added and that a consulting arrangement for the web is planned. Mayor Luecke stated that the storm damage is extraordinary and the amount of damage being the