09-11-00 Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 11.2000 of Public Hearing. Councilmember Kelly seconded the motion which carried by a voice vote of seven (7) ayes. Councilmember Aranowski noted that just the Public Hearing on these bills will be held today. The final vote will take place at the next Council meeting on September 25, 2000. Additionally, Councilmember Aranowski reported that the Personnel & Finance Committee met on these bills and sends them to the Council with a favorable recommendation. Mayor Stephen Luecke, 1400 County -City Building, South Bend, Indiana, made the presentation for this bill. Mayor Stephen Luecke thanked the Council forthe time they devoted to reviewing this budget. He also thanked all City department heads as well as City Controller Cathy Roemer and her staff. Mayor Luecke noted that these bills set the operating budget for City departments and also set the tax rates required to fund those operations. These operating budgets include financing costs of capital projects which were established in previous years. The capital budget will be submitted in 2001. Mayor Luecke noted that the City is budgeting for a five per cent (5 %) increase in property tax revenues to support the General Fund, Park Department, Police and Fire Pensions and the Cumulative Capital Development Fund. Additionally, revenue outside of the property taxes for the general fund is anticipated to increase by 5.3 %. There will also bean increase for the County EMS services that the City provides which is based on the City's increased costs due to the new contract that has been negotiated with the firefighters. A major portion of the dollars outside of property taxes would reflect anticipated increased revenue from the Morris Performing Arts Center. Increased personnel costs in 2001 include an average increase in the base salary of 6.6% for all police officers, 7.5% for firefighters, 3.5% for teamsters and 3.5% for non - bargaining. Mayor Luecke noted that police and fire pension funds continue to have funding shortfalls. Last year the City had to subsidize those funds in the amount of five hundred thousand dollars ($500,000.00) and this year it will be $1.5 dollars from'the general fund. The 2001 budget, for the first time, includes debt service payments on two (2) state revolving loan funds for both sewage works and water works and estimated debt service for the College Football Hall of Fame Redevelopment Bond which will be financed before the end of this year. There is not an operating budget for the Hall of Fame in 2001 because that operation will be covered by the National Football Foundation. The 2001 budget does include a debt service fund that reports the revenue to be collected on behalf of the Hall of Fame from hotel motel taxes and the professional sports development fund. These funds are then transferred to the National Football Foundation for specific use. Mayor Luecke noted that General Fund expenditures increased only six tenths of a per cent, excluding personnel costs, from the 2000 budget with a few exceptions. They expect the gasoline prices will be going up so department heads increased that line item by eighty -eight per cent (88 %). Also, the self insurance employee benefit fund also continues to experience sizable increase. The coverage plan for all teamsters and non - bargaining employees has helped to keep that increase down by encouraging participation in the preferred provider organization. Through the agreement with the firefighters the City is bringing another group of employees into that incentive program to use the preferred provider organization. The Liability Insurance Reserve Fund reflects an increase of ten per cent (10 %) from the prior year. The budget includes five (5) funds that are not balanced. They are the Motor Vehicle Highway Street Department, Police and Fire Pension Funds Solid Waste Fund and Sewer Repair Insurance Fund. These funds have been able to make up the deficiencies through cash reserves that they have maintained. The sixth fund is the parking garage fund that shows a budget deficiency with the General Fund supporting that fund through an inter -fund cash advance. Mayor Luecke noted that he is proud of this budget. It is one that is balanced and provides basic services to citizens. It funds increases for public safety personnel and covers the shortfall in the police and fire pensions. It covers anticipated increases in gasoline prices and maintains strong cash reserves. In conclusion, the Mayor asked for the Council's favorable consideration of this budget.