05-11-09 Common Council Minutes - Laserfiche WebLink

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REGULAR MEETING MAY 11, 2009 Councilmember Dieter advised that he is a member of the South Bend Police Department and has filed his disclosure form with the Office of the City Clerk. He stated that after discussion with Council Attorney Kathleen Cekanski-Farrand it was determined that there is no conflict of interest. Councilmember Kirsits advised that he is a member of the South Bend Fire Department and has filed his disclosure form with the Office of the City Clerk. He stated that after discussion with Council Attorney Kathleen Cekanski-Farrand it was determined that there is no conflict of interest. Councilmember Dieter made a motion to hear the substitute version of this bill. Councilmember LaFountain seconded the motion which carried by a voice vote of eight (8) ayes. Councilmember LaFountain, Chairperson, Personnel and Finance Committee, reported nd that this committee held a Public Hearing on this 2 substitute bill this afternoon and voted to send it to the full Council with a favorable recommendation. th Catherine Fannello, City Controller, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Ms. Fannello advised that on November 10, 2008, the South Bend Common Council approved the City’s 2009 operating budget as Ordinance No. 9874-08. At that time, it was likely, but not certain, that 2009, tax revenues would not be sufficient to fund the approved appropriations at 100% due to the impact of HEA 1001 which provides various tax caps. Because of the now certain lost revenue effect of this recent legislation, and the inability of South Bend to recover the loss in 2009 through other measures, the appropriations from General Fund (No. 101) and Parks and Recreation Fund (No. 201) must be reduced from the sums approved in Ordinance No. 9874-08. She noted that all salary levels were frozen at the 2008 levels except for Police, Fire, and Teamster contract salaries. All Department Heads and various Directors or other high-level positions took a 5% pay cut. Employees were transferred to other funds if it could be substantiated that the employees are a direct cost of another fund. In several cases, the costs are shared between two funds. Various supply and service accounts reduced where possible in order to cut costs. Other items such as the annual subsidy to the Art Museum and the Code Hearing Officer were transferred to the Local Option Income Tax Fund 404 for the remainder of 2009. Ms. Fanello stated that it will be necessary to watch the budget closely over the next few months to ensure departments are able to adhere to the commitments made to reduce the budget. She noted that these changes are large and would expect that there might be errors or oversights. She stated that it is critical that steps be taken to completely conform to the new revenue estimates that are upon the city in 2010. She advised that without doing so, the City’s cash will be in a detrimental situation during 2010. She stated that additional ordinances may be filed over the next few weeks to further reduce or correct 2009’s budget. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Dieter made a motion for favorable recommendation to full Council concerning this bill as substituted. Councilmember LaFountain seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 31-09 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, TO REDUCE 2009 BUDGET APPROPRIATIONS IN MOTOR VEHICLE HIGHWAY FUND (#202) 10