07-16-03 Informal Meeting - Laserfiche WebLink

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'committee toort on tbt linformai Muting of tilt §outh Ventf Common Council Council President Karen L. White called the July 16, 2003 Informal Meeting of the South Bend Common Council to order at 4:00 p.m. In the Council's Informal Meeting Room. Persons in attendance included Council Members Varner,Kuspa, White and Kelly; City Controller Rick 011ett, Public Works Director Gary Gilot,and Council Attorney Kathleen Cekanski-Farrand. Council President White announced that this would be the last Informal Meeting held with the City Administration until October 2003, in light of the upcoming budget hearings. She noted that she met with Mayor Luecke last Friday and it was recommended that the City Controller provide an overview to the upcoming budget hearings. City Controller Rick 011ett stated that 2004 will be one of the most challenging years financially for the city. Revenue has decreased in several areas. For example, COIT and CEIT revenues are projected to be lower by 4%. Wheel tax proceeds are projected to be on the positive side, and gaming proceeds are to be on the positive side but right now the projections are too broad to be very specific. The wheel tax will bring in$ 1.6 million in revenue to assist MVH activities. Mr. 011ett noted that the cost of medical insurance continues to increase. In 2000, $4 million were spent; in 2001, $ 5.5 million were spent; in 2002, $ 6.1 million were spent; and for 2003 cost projections are at$ 7.5 with $ 9 million projected in 2004. Mr. 011ett stated that reserves covered the extra costs in calendar years 2001 and 2002; however this year General Fund dollars are being used. $ 5.1 million were budgeted for calendar year 2003 for medical insurance costs, however if expenses continue as they have for the 1st six(6) months$7.5 million will be this years cost. As a result, a charge has been given to all Department heads to generate savings from each of their operating budgets to cover such increased costs. Dr. Varner noted that some departments have bigger problems in this area than others, for example trash haulers. Mr. 011ett noted that Worker's Compensation would be involved, however the data is not showing any direct relationship in this area however there are trends. Council President White inquired into the responses received from the Department heads with regard to the directive to cut from their operating budget. Public Works Director Gary Gilot and Mr. 011ett noted that the response has been "tough", with the smaller departments being hit the hardest. They noted that there will be many tough choices made in the weeks ahead. Departments will have to be creative such as pulling resources, reviewing take home car policies, reviewing the number of cell phones, etc. Dr. Varner noted that the Police Department often talks of parity and the Fire Department often refers to parity. If the disparity is eliminated and if all employees are on the same health plans it may be more equitable across the board. Mr. 011ett noted that the premiums for the Teamsters have been raised but are not the same. The Council Attorney noted that to date the information requested at the last Personnel and Finance Committee meeting had not been received, namely the medical insurance comparison of several second class cities prepared by the Administration last year and the City Department comparison requested by Council Member Kirsits. Mr. 011ett noted that he would make sure that both documents are sent to the Council. Mr. 011ett stated that there are four(4)basic categories to the budget process: personnel, supplies,