08-26-74 Council Meeting Minutes

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REGULAR MEETING AUGUST 26, 1974 COMMITTEE ON FINANCE MEETING (CONTINUED) Peter J. Nemeth, President August 21, 1974 South Bend Common Council County -City Complex. South Bend, Indiana 46601 Re: Tax Rate Increase Dear Pete: You requested an opinion from me by Thursday, August 22nd regarding whether the tax rate may be increased to include amounts for the lease payments and for the election expenses. As you know, under the present budget proposal, the lease payments have been included under the (1) Board of Works Budget $90,000 for maintenance (2) Capital Improvement Fund $105,000 These combined figures adequately cover the lease payments. The election expense of approximately $170,000 has been included under the category of "Other Contractuals ". Our department contacted Walt Lantz, Rick Hunt, and Joe Nagy on this topic, and the proper procedure to increase the tax rate is outlined in the attached Burns Section 6- 3.5 -1- It appears that the best route would be to appeal the present tax rate immediately after the Local Tax Adjustment Board hearing to be held on September 10th. This would mean that the Common Council would have to adopt a resolution which would accompany the appeal by the City Administration. The appeal itself is to the State Board of Tax Commissioners which may then in turn seek the recommendation of the local government tax control board. The deadline on this procedure is September 30th. Thus, it appears that the tax rate may be increased by the amount of the lease pay- ments pursuant to Burns Section 6- 3.5- 1- 3(b)(2) which allows such an amount if the lease is at least over a five -year period and was executed on or before July 1, 1973. The lease agreement in question satisfies these criteria. Regarding the election expense amount, I have found no Indiana law which addresses itself to this specific issue. Therefore, seeing no legal restrictions, it would seem to be permissible. I hope this adequately covers your inquiry, and please feel free to contact our office further. Sincerely, s/ James A. Roemer City Attorney Chairman Kopczynski stated that the Council President would propose the amendments to each department's or bureau's budget. Then comments and questions would be heard from the floor followed by discussion by the Council members. MAYOR Council President Nemeth indicated that the Council proposed no recommended reductions in the Mayor's budget. There were no comments. CONTROLLER Council President Nemeth proposed the following reductions: Delete position of Accounting Clerk III at $7,370. Reduce Account 212, Postage, to $10,500. Reduce Account 260, Other Contractuals, to $10,200. Reduce Account 362, Stationery and Printing, to $13,000. Reduce Account 363, Other Office Supplies, to $13,000. Reduce Account 725, Office Equipment, to $2,000. Mr. Gene Evans, Executive Secretary of the Civic Planning Association, referred to the tabulation prepared by the Civic Planning Association. He questioned the 21% increase in the Printing Technician's salary. Mr. Walter Lantz, Chief Deputy Controller, stated that this person has been receiving a supplemental income of $800 from the 701 Planning Grant. Monies are no longer availak under this grant and the city was assuming the full cost of the salary. Mr. Lantz talked about the position of Accounting Clerk III which the Council had proposed be reduced to zero. He asked that this position remain, and he added that this was not an additional position. Mr. James Barcc City Controller, asked if the budgets would be acted upon immediately, and Chairman Kopczynski indicated that there would be a recess taken and adequate time for discussion and debate before final action was taken on any of the proposed amendments. CITY CLERK Council President Nemeth proposed the following reductions: A