02-11-85 Council Meeting Minutes

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REGULAR MEETING FEBRUARY 11, 1985 He indicated that local units of government are now guaranteed a minimum of 5% annual increase in property taxes and can raise additional taxes as necessary to cover increases in police and fire pension costs and utility bills that exceed 10% of the previous year. He indicated they are also empowered to levy additional property taxes to finance new cumulative capital improvement accounts. He indicated that South Bend apparently feels that the local option tax should be adopted, while the County and Mishawaka have indicated they are not ready to support such a tax at this time. He indicated that Mishawaka has over $1 million in surplus in general funds. He indicated that common sense planning on the part of the City of Mishawaka would appear to remove any need for option income tax funds. He indicated that a review of the financial needs and resources of the County would support the conclusion that citizens of the County are being well served by County leaders with no pressing need for option income tax funds. He indicated that with the decision not to press for the $3.8 million bond issue, over a $1 million was cut from the budget, primarily by the elimination of 33 staff positions of which 11 are in the fire department and 8 in the police department. He indicated the Mayor has been quoted as stating that this reduction may delay response from the police and fire departments. He indicated that the positions to be eliminated were already vacant, and at the same time a review of the performance of the departments shows clearly that the incident of crime and fires is significantly reduced from past years when the police and fire had more personnel. He questioned the parking garage deficit; purchase of vacant land on Hydraulic; and the Palais Royale Lease. Council Member Voorde indicated that local option tax is the only significant source of funds available. He indicated that the homestead credit should be put on an escalating. basis. He indicated he had a problem with the homestead credit. He indicated the option ranges from giving no homestead credit to 8 %, in addition to the 4% provided by the State. He indicated if we are going to put the revenue on an escalator, we should put the credit on an escalator. He indicated the Council should adopt the local option tax, and amend the homestead credit on page 2 to read: 1986 -2 %, 1087 -3 %, 1988 -4 %, 1989 -5 %. He made a motion to amend resolution 9C. He indicated that there was a possibility that the County and Mishawaka were not going to accept the 2% homestead credit. Council Member Crone asked if unemployment compensation was taxed. Michael Vance, City Controller, indicated it would be taxed, however, a single person would have to have income in excess of $18,000, and a married couple $25,000, before unemployment is taxable. Council Member Crone indicated she would support the homestead credit, but would not support the local option tax. Council Member Beck indicated she found that difficult to understand because without local option tax there was no homestead credit. Council Member Taylor indicated that in a very short time all the people in the State will be under this tax. He indicated that no community in the State has adopted over a 2% homestead credit. Council Member Crone seconded Council Member Voorde's motion. Council Member Crone asked if the County Income Tax Council had the right to rescind the local option tax during the next four years. Michael Vance indicated they had that right. He indicated State statutes do not say specifically that the homestead credit can be decreased. Council Member Crone indicated that under the local option bill we have also have the right to establish a cumulative capital improvement fund. She asked if that was going to be filed again this year. Michael Vance, Controller, indicated they intended to file it again for 1986. The motion failed on a roll call vote of two ayes (Council Members Crone and Voorde) and seven nays. Council Member Taylor made a motion to adopt Resolution No. 1258 -85, seconded by Council Member Puzzello. The resolution was adopted by a roll call vote of eight ayes and one nay (Council Member Voorde.) Council Member Taylor made a motion to adopt Resolution No. 1259 -84, seconded by Council Member Serge. The Resolution was adopted by a roll call vote of eight ayes and one nay (Council Member Crone.) Council Member Taylor made a motion to recess, seconded by Council Member Voorde. The motion carried and the meeting was recessed at 9:00 p.m., and reconvened at 9:12 p.m. RESOLUTION NO. 1260 -85 WHEREAS, on 1243 -84, which our area by the A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, RECOMMENDING THAT HANSEL NEIGHBORHOOD SERVICE CENTER, INC. BE DESIGNATED AS THE AGENCY TO RECEIVE FUNDS FROM THE DEPARTMENT OF AGING AND COMMUNITY SERVICES BEGINNING MARCH 1, 1985. December 17, 1984, the South Bend Common Council adopted Resolution addressed the need for continued funding of neighborhood centers in Department of Aging and Community Services; and WHEREAS, Hansel Neighborhood Service Center, Inc is desirous of being named as the recipient of such state funds so that neighborhood centers in Fulton, Marshall and St. Joseph Counties can continue; WHEREAS, Hansel Center would also be interested in serving Kosciusko and Elkhart Counties if requested by these counties; and WHEREAS, the Common Council believes that Hansel Neighborhood Service Center, Inc. would be an excellent choice as the local agency to receive funds from the Department of Aging and Community Services beginning March 1, 1985. NOW, THEREFORE BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: