09-14-99 Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 14. 1999 BILL NO. 73-99 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF THE DESIGNATED ENTERPRISE FUNDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2000, AND ENDING DECEMBER 31, 2000, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, AND FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT Mayor Stephen Luecke inquired of the Council if the above referenced three (3) bills could be combined for Public Hearing purposes. After discussion, and opinion by legal counsel City Attorney John Broden that the matter was up to the Council discretion, Councilmember Kelly made a motion to combine the above bills for the purpose of Public Hearing. Councilmember Sniadecki seconded the motion which carried by a voice vote of seven (7) ayes. Mayor Stephen Luecke made the presentation for these bills. Mayor Luecke stated that the three (3) bills presented today for consideration represent the operating budget for the City of South Bend for the year 2000. Mayor Luecke thanked City Controller and Department heads for their hard work on this budget as well as the Common Council for their attention to the details of the budget. He noted that the Council has already spent approximately seventeen (17) hours in committee meetings reviewing this budget. Mayor Luecke noted that this budget is an operating budget that shows expenditures of approximately one hundred nineteen million dollars ($119,000,000.00) for day to day operations as well as debt service. It does not include a new capital budget which will be presented early in February 2000. The proposed budget assumes the maximum allowable five per cent (5 %) increase in Property Tax revenue for the City. The funds receiving property tax revenue include the General Fund, Parks Department, Police Pension, Fire Pension and Cumulative Capital Development Fund. This levy will be reviewed in early October and an adjustment will be made to reflect the approved amount of total levy per state statutes. Property taxes fund seventy -six per cent (76 %) of the operation of the general fund but only forty -one per cent (41 %) of total expenditures. The budget reflects no growth in supplies with a two per cent (2 %) increase otherwise. Some of the unusual expenditures include an expenditure of one hundred thirty thousand dollars ($130,000.00) for the rehabilitation of the elevators in the County -City Building as the City's contribution, a ninety thousand dollars ($90,000.00) increase in operating costs for the Morris Performing Arts Conter which is scheduled to open in January 2000, and seventy -six thousand dollars ($76,000.00) for the Fire Department for additional personnel costs incurred as the result of contracts with various community medical providers. Mayor Luecke stated that the Self- Insurance Employee Benefit Fund had a very difficult year in 1998 with regards to claims expenditures. This high claim experience along with a "catch -up" period on behalf of the City's third party administrator during 1998 resulted in approximately $1.2 million dollars of health insurance claims paid in excess of the original $3.8 million dollar budget. Additionally, the City's Police and Fire Pension Funds continue to experience funding shortfalls as a result of the increasing number of retirees that are receiving pension benefits coupled with the base pay increased for the Police and Firefighters on which the pension payments are determined. Also, five (5) funds are not balanced for the year and these funds will need to rely on existing fund cash balances to support the projected 2000 deficiency. Those funds include the Motor Vehicle Highway, Street Department, Human Rights, HUD, Police and Fire Pension Funds and Project Releaf Fund.