07-13-09 Personnel & Finance Committee

Home Browse Search

,~, 1____ PERSONNEL & FINANCE COMMITTEE Vice-Chairperson Karen White called the July 13, 2009 meeting of the Personnel and Finance Committee to order at 4:00 p.m. The following Committee Members were present: Oliver Davis; Ann Puzzello Other Councilmember's Present: Derek Dieter; David Varner; Henry Davis; Timothy A. Rouse; Al "Buddy" Kirsits Other's Present: Mayor Luecke; Gary Gilot; Rita Kopala; Jeff Parrot; Kathleen Cekanski-Farrand Agenda: Bill No. 09-49 -Property Tax Relief LOIT .5% Bill No. 09-50 -Public Safety LOIT .25% Bill No. 09-51-CEDIT .2% In Chairman LaFountain's absence, Vice-Chair Karen White outlined procedures for the Committee hearing as well as those for the public hearing during the 7:00 p.m. meeting. First, Chairperson White asked for a motion that for purposes of discussion all three bills be discussed jointly at both meetings. Secondly, she asked the committee to accept a motion to send the bills to Council without recommendation. Motions to that affect were made by Councilmember Oliver Davis, and seconded by Councilmember Varner. All were in agreement. Procedures for Public Hearing (see attached) Chairperson White turned to the Mayor for a financial state of affairs picture. Noting this financial crisis resulting from the passage of HEA 1001-08, leaves the city with $22 million less in property tax revenue in 2010, possibly more in 2011. While everyone agrees property tax relief is a good thing the consequence of underfunded local government services needs to be addressed. The Association of Cities and Towns crafted a financial "home rule" response, but the state legislature rejected the concept. The state left only one remedy, the (LOIT) Local Option Income Tax. Recognizing its responsibility to streamline, the city cut 121 FTE's since 2001. 26 of those in 2009. Other efficiencies include reducing the number of take home cars, consolidating mowing, cutting a $500 city contribution to employee flex plans, 5% pay cuts, and 80/20 employee insurance restrictions among others. In as much as these don't come close to making up for the $22 million loss, the LOIT's and CEDIT tax increases are advocated. Together, they would provide $16 million, leaving a loss of $6 million to be made up. Council President Derek Dieter asked how much the cuts already proposed represented in dollars. The Mayor said they were hard to quantify.