09-21-95 Personnel & Finance - Laserfiche WebLink

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Commttttt It$port: Personnel and Finance Committee 'go tijt COMM COUItutl Of tljt attti Of mouth Otittl: The September 21, 1995 meeting of the Personnel and Finance Committee was reconvened by Council Member Steve Luecke, Chairperson at 4:10 P.M. in the Council informal meeting room. Persons in attendance included Council Members: Duda, Zakrzewski, Ladewski, Coleman,and Luecke; Citizen Member Cathy Roemer,Bernie Kish,Terry Coleman,Brian Hedman, Isabel Gonzalez, Chief Luther Taylor, Assistant Chief Rick Switalski, Bernard Redwin,Tom Scarbek,Kevin Horton, Cleo Hickey, and Kathleen Cekanski-Farrand. Fire and Police Pensions: Chief Taylor gave background information in the area. Assistant Chief Switalski noted that he would present both the Fire Pension information, and Police Pension information since Jeff Koras is unavailable. He then reviewed the handout materials (copy attached). Chief Taylor provided a handout from the Summer 1995 edition of the Indiana Professional Firefighter entitled"Who Will Pay Their Pensions?" (copy attached). Chief Taylor noted that the City of South Bend has an approximately$110 million dollars as an unfunded pension liability for both departments. Assistant Chief Switalski noted that the police and fire departments pension liability for 1996 is approximately$6.9 million dollars of which the City receives approximately$4 million dollars in pension relief. Thus approximately$2 million dollars will be levied. Kevin Horton noted that pension costs are one of the key items which he and the Council Attorney factor in when preparing for public safety wage and benefit negotiations. Mr. Horton further noted that the City budgets for all officers which we know will retire and place in reserve an amount for all officers who are eligible to retire. Pension relief monies are received by the City in May and October. The City funds at 21% of the salary of the 1st Class Patrol Officer and 1st Class Firefighter. Mr. Horton noted that he would provide projections by Monday in this area, in light of the fact that costs to the City are increasing while pension relief monies are decreasing. It was also noted that 112 of the 216 people in the Fire Department would be eligible to retire, with 59 being able to receive benefits in light of the 55 year old age requirement. The Police Department is in a similar situation with regard to those officers eligible to retire. Chief Taylor noted that the Board of Public Safety should be swearing in eight (8) firefighters on October 4th, with six (6)being new and two (2) filling vacancies. Council Member Luecke thanked Chief Taylor and Assistant Chief Switalski for their update and fine services to the City. Morris Civic: 1995 = $ 237,132 1996 = $278,6566(requested)