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HomeMy WebLinkAbout02-04-08 Personnel and Finance Standing Committee~ .,_~ ._ ~_ - ~'~ ' - Personnel and Finance Standing Committee ,~ I .~, '~ ~ ~ 2008 South Bend Common Council The February 4, 2008 meeting of the Personnel and Finance Committee of the South Bend Common Council was called to order by its Chairperson, Council Member Thomas LaFountain at 5:05 p.m. the Council's Informal Meeting Room. Persons in attendance included Council Members Dieter, LaFountain, Varner, White, Kirsits, Rouse, and Oliver Davis; Mayor Stephen J. Luecke, Public Works Director Gary Gilot, Tom Price of the Mayor's Office, City Attorney Charles Leone, Jerry Niezgodski, members of the news media and Kathleen Cekanski-Farrand, Council Attorney. Council Member LaFountain noted that the Committee Members include Dr. Varner, who serves as Vice-Chairperson, Council Members Oliver Davis, AI "Buddy" Kirsits and himself, who serves as Chairperson. Council Member LaFoutain stated that the meeting was called to receive a presentation from Mayor Luecke on the Kernan/Shepard Report addressing the "Streamlining Local Government". Kernan/Shepard Report "Streamling Local Government: House Bill No. 1001: Mayor Luecke began his remarks by summarizing a seven (7) page handout entiled "Local Government Reform" (copy attached). Key items highlighted included: • HB 1001 can be accessed at www.citiesandtowns.ora • Nine (9) "key issues which relate to cities" in the Kernan/Shepard Report, namely items 5, 6, 15, 16, 17, 19, 21, 22 and 24 • Other key issues related to HB 1001 involve - Levy and Spending Limits - Circuit Breaker - Control Boards - Public Safety Local Option Income Tax - State Intercept of Funds • Reviewed what property taxes pay for • Reviewed who receives property tax revenue • Reviewed the projected results if the property tax caps are enacted as proposed, some examples: St. Joe County would have a loss of $9.6 million, South Bend would have a Loss of $26.8 million, Mishawaka would have a loss of $6.8 million, etc. • Reviewed what key services may be lost if HB 1001 is enacted as proposed • Reviewed increasing the local income tax option to replace lost revenues Personnel and Finance Committee February 4, 2008 Page 2 • Noted that HB 1001 does not cut fat, that it cuts deep into bone and muscle • Reviewed the five (5) IACT suggested amendments to HB 1001 addressing levy and spending limits, circuit breaker, control boards, public safety local option tax (LOIT), and state intercept In response to questions raised by Dr. Varner, Mayor Luecke stated that HB 1001 would the "death to TI F". In response to questions caised by Council Member Oliver Davis, Mayor Luecke stated that there was not a fiscal analysis on costs savings if HB 1001 would be implemented as proposed, noting that a few years ago the state Chamber of Commerce noted that potential savings at that time were approximately 2°to. He noted that he did not see the proposed 1-person county executive as weakening county operations. Council President Rouse stated that some of the Kernan/Shepard proposals would require constitutional amendments, and that others need ballot approval. Some have voiced concern about the public input involved. Mayor Luecke noted that Umbaugh of Indianapolis has provided some additional background information and provided a copy (copy attached) The Mayor noted that Jim Wensits did an article last year comparing Elkhart and St. Joseph Counties. Dr. Varner stated that the state does an assessment each year, and that he would like to see a comparison which they have done. Mayor Luecke stated that he would get a copy of the state's assessment and share it with the Council. In response to a question from Dr. Varner he did not believe that the Umbaugh review looked at the number of not-for-profits in each county and what impact that created. The Mayor stated that in the short legislative session, phased in caps are being discussed. He noted that basically the bill is a tax shift. The Mayor stated that he has an excel template and would have it mailed to the Council. Dr. Varner noted that the City must look at tax abatement going forward, noting that Lake County was growing when the mills were operating, but without true growth it would be difficult to maintain. Tourism also needs to be carefully reviewed. Council Member Kirsits stated that hotel/motel needs to be reviewed. Personnel and Finance Committee February 4, 2008 Page 3 In response to questions from Council Member Kirsits, Mayor Luecke stated that Goshen and the City of Elkhart will be negatively impact more than Elkhart County. That county has had CAGIT in place. In response to questions raised by Council Member White, Mayor Luecke stated that there have been some preliminary discussions downstate regarding the tightening of the definition of not-for-profits. Dr. Varner noted that assessment reductions might be considered since the not-for- profits need police and fire services. He voiced .concern with regard to the broad interpretations being given the use of TIF monies. Council Member White noted that older neighborhoods often need more services than other parts of the city. She noted that not all Districts should be stated the same and that discussions for such services needs to take place. In response to questions from Council Member Kirsits, Mayor Luecke stated that SB 114 and others address annexation and will need to be monitored. One bill would require 100% agreement of the property owners in order to go forward with an annexation, noting that programs in Fishers and Carmel have been the source of many of these bills. Jerry Niezgodski noted that he has done an analysis of various Indiana cities and believes that the number of personnel may need to be studied. He stated that the number of full-time city employees for Indianapolis is 5 per 1000; in Fort Wayne it is 6.73 per 1000 and in South Bend it is 12.27 per 1000. Mayor Luecke stated that the city will continue to review "how we do things". He stated that cities do things differently and provide a different level of services. Comparing personnel and population may not necessarily be reflective. Council Member LaFountain thanked Mayor Luecke for his report. He then adjourned the committee meeting at 6:15 pm. ~"ounct~lerThomas LaFountain, Chairperson Personnel and Finance Committee Attachments