11-16-88 Personnel & Finance and Utilities

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Joint Meeting of the Personnel and Finance and Utilities Committees 11-16-88 Page 3 place in 1995. The year 2001 is when the Lease-Purchase Agreement expires. A question was raised with regard to "taxes to City" in line item 394. It was also questioned why in 1988 there were no monies budgeted in this account, while in 1989 $7, 000 was requested. John Leszcynski stated that he believes "there is no legitimate way for such a charge. " He also noted that the City does the billing for Clay and that State law requires a separate set of books. This area with regard to the charge and the projection of $7, 000 would be further checked by the City administration. Line item 263 entitled "Other Supplies II" in the amount of $4, 000 represented a 288.3% increase. Mr. Agostino noted that this represents the printing of bills and that currently they are using old stock. South Bend/Clay Water Sinking Fund - page 8 - $64 ,738 - 0% increase. Mr. Agostino noted that this represents the payment per the schedule projected to run through the year 2001. This payment is at a 10.4% interest rate. Mayor Kernan then reviewed Bill No. 103-88 which is the sewage use and rate ordinance. Mayor Kernan noted that the best case situation would have been that the City's local match over a 14 year period would be 4.9 million dollars. With the help of Jack Dillon and John Leszczynski the various documents needed for EPA review and State approval were properly filed by the City. The City's local match will now total 9.5 million dollars and will be paid over a 20 year period. It was also noted that part of the monies for next year would be on a loan basis as oppossed to a grant basis through the EPA. He noted that South Bend was 105 on the list and moved up to 76 and ended up as 1 of 16 cities within Indiana to be selected for grant monies. Mayor Kernan noted that the grant was the result of cooperation between Senators and Representatives, Mr. Leszczynski and his staff and other City administrators. In July the average user rate projected was calculated at $12 .70 and now the average user rate is projected to be $13 . 09. If the total project would have to be funded by the City in the amount of 22 1/2 million dollars instead of a 26% increase the City would be looking at a 48% increase. It was noted that on October 1, 1988 the new permit was issued and the City has 3 years to bring the plan into compliance.