05-26-04 Personnel & Finance - Laserfiche WebLink

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£ommitL 4,ott of tizz .E'z4onnEL and auf a aE (1ommi£ The May 26,2004 meeting of the Personnel and Finance Committee was called to order by its Chairperson,Council Member Derek D. Dieter at 4:58 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Dieter,Pfeifer,Kelly,Puzzello, Varner,Kuspa,Coleman,White and Kirsits;Mayor Stephen Luecke,City Clerk John Voorde, City Controller Rick 011ett,Community&Economic Development Executive Director Sharon Kendall,Police Chief Thomas Fautz,representatives of the South Bend Fire Department,Gladys Kopola,and Kathleen Cekanski-Farrand,Council Attorney. Council Member Dieter noted that the Committee is composed of Council Members Kelly,Puzzello,Varner and himself. Council Member Dieter stated that the first item on the agenda was to review 2nd Substitute Bill No. 26-04 which would establish a new fund to be called a"Rainy Day Fund, Fund# 102". He noted that this Bill had its initial presentation at the May 10th Committee meeting. City Controller,Rick 011ett,made the presentation. He noted that the 2nd substitute Bill incorporates many of the items requested by the Council and that its primary purpose is to receive surplus COIT and CEDTT monies which were being held by the county. Monies in this fund would go through the same appropriation process. Interest earned on monies in the fund would remain with the fund. Mr. 011ett noted that since 1985 the city has had sound economic practices in place including reserve funds in major departments. Council Member Dieter thanked him for replying to his memorandum requesting additional information. Dr. Varner inquired about the reserves which the city currently maintains and asked where they are reported in the Controller's monthly statement. Mr. 011ett noted that cash reserves are within the cash balance of the general fund,with those funds acting as a cushion. Dr. Varner noted that such reserves have no real accounting currently and inquired whether they could be specifically addressed at month-end,noting that that information would be helpful. Mr. 011ett noted that that could be done,but that he believes that it would be misleading. Mayor Luecke stated that the funds are accounted for during the budget process. He further noted that he would be against a separate fund since the funds would then have to be appropriated twice.