HomeMy WebLinkAbout10059-10 Creating- Unemployment Compensation Insurance Fund (#713)ORDINANCE No. ~s,a
Passed by the Common Council of the City of South Bend, Indiana
December 13,
Attest:
Attest:
Presented by me to the Mayor of the City of South Bend, Indiana
December 14,
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Approved and signed by me ~-~- ~ .~ 20 ~ ~
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City Clerk
~esident of Common Council
City Clerk
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ORDINANCE NO. ~ ~ ~~ ~~~ 0
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, CREATING AN UNEMPLOYMENT COMPENSATION INSURANCE
FUND (#713)
STATEMENT OF PURPOSE AND INTENT
The employees of the City of South Bend are covered under federal and state
unemployment insurance laws. As with most local units of government, the City of South Bend
is a "reimbursing employer" and repays the Indiana Department of Workforce Development
monthly for actual unemployment claims paid to eligible former employees. These costs are
currently paid from departmental operating budgets and the amount of unemployment claims
paid in a year can be difficult to estimate and budget accurately. Thus, it is in the best interest of
the City to establish a new Unemployment Compensation Insurance Fund (#713), which will
account for the payment of unemployment claims in a single fund and will charge an allocation
to user departments to cover the estimated costs of claims. The Unemployment Compensation
Insurance Fund will be classified in the annual financial report as an internal service fund
because it benefits other City departments. The new Fund 713 will be anon-reverting fund and
will earn interest on cash balances. The Fund will be subject to appropriation by the City of
South Bend Common Council. The 2011 budget for Fund 713 was passed by the Common
Council on October 25, 2010.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA as follows:
SECTION I . An Unemployment Compensation Insurance Fund (#713) is created to
account for the payment of unemployment claims in a single Fund and to charge an allocation to
user departments to cover the estimated costs of claims. This Fund shall be non-reverting and
shall earn interest on cash balances. The Fund will be subject to appropriation by the City of
South Bend Common Council.
SECTION II. The Unemployment Compensation Insurance Fund (#713) will be
established effective January 1, 2011.
SECTION III. This ordinance shall be in full force and effect from and after its passage
by the Common Council and approval by the Mayor.
Member, South Bend Common Council
Presented by me to the Mayor o>: the City of South Bend, Indiana on the l `~(, day of
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Approved and signed by me on the lS day of , 2~® ,
at !o o'clock, ~..m.
Mayor, ity of th Bend, Indiana
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TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
76-10 A BILL OF THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, CREATING AN
UNEMPLOYMENT COMPENSATION INSURANCE FUND
(#713)
Respectfully report that they have examined the matter and that in their opinion,
this bill is being recommended to the full Council with a favorable
recommendation.
Ann Puzzello
Chairperson, Committee of the Whole
COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, IN 46601
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CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
OFFICE OF ADMINISTRATION & FINANCE
GREGG D. ZIENTARA, CITY CONTROLLER
November 17, 2010
Mr. Derek Dieter
President, South Bend Common Council
4th Floor, County-City Building
South Bend, IN 46601
PHONE 574-235-9216
FAx 574-235-9928
Re: Ordinance of the Common Council Creating a new Fund to Account for unemployment
Compensation Expenditures
Dear President Dieter:
The employees of the City of South Bend are covered under federal and state unemployment insurance
laws. As with most local units of government, the City of South Bend is a "reimbursing employer" and
repays the Indiana Department of Workforce Development monthly for actual unemployment claims paid
to eligible former employees.
Unemployment compensation costs are currently paid from departmental operating budgets and the
amount of unemployment claims paid has proven to be difficult, at best, to estimate and budget
accurately. Establishment of a dedicated Fund, managed by the Office of the Controller, will enable
greater efficiency and financial control of unemployment funds expended.
Thus, it is in the best interest of the City to establish a new Unemployment Compensation Insurance Fund
(#713), which will account for the payment of unemployment claims in a single Fund and will charge an
allocation to user departments to cover the estimated costs of claims. The Unemployment Compensation
Insurance Fund will be classified in the annual financial report as an internal service Fund because it
benefits other City departments. The new Fund 713 will be anon-reverting Fund and will earn interest on
cash balances. This Fund will be subject to appropriation by the City of South Bend Common Council.
The 2011 budget for Fund 713 was passed by the Common Council on October 25, 2010.
I will present this Bill to the Common Council at the appropriate Council Committee meeting, public
hearing, and at the Council meeting. 1 am available to discuss any matters concerning this Bill at the
convenience of the Council.
Regar ,
Gregg, ie tara
cc: Stephen J. Luecke, Mayor of the City of South Bend
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