HomeMy WebLinkAbout08-18-05 Personnel & Finance Personnel and Finance Committee
2005 South Bend Common Council
The August 18,2005 meeting of the Personnel and Finance Committee was called to order by its
Vice-Chairperson,Council Member David Varner at 3:30 p.m. in the Council Informal Meeting
Room.
Persons in attendance included Council Members Pfeifer, Puzzello, Varner, Kuspa and Kirsits;
Mayor Stephen Luecke, Tom Skarbek, City Controller M. Catherine Fanello, Executive Director
of the Department of Community and Economic Development Sharon Kendall, Elizabeth
Leonard, Don Inks, Pam Meyer, Kathleen Cekanski-Farrand, Council Attorney, and Jeff Parrot
of the South Bend Tribune.
Dr. Varner called for a presentation on the proposed budget for the parking garages.
PARKING GARAGES FUND (FUND#601) Revenue $793,352
Revenue Increase $ 16,298
Percent Increase 2.1%
Expenditures $575,940
Expenditure Increase $ 8,656
Percent Increase 1.5%
Don Inks reviewed a 1-page handout with the committee (copy attached). In response to a
question from Dr. Varner he noted that the garage located at Wayne & Monroe is owned by
Redevelopment and is therefore covered by a separate fund. Dr. Varner suggested having all
three(3)garages covered in one(1)fund.
Tom Skarbek noted that the Council Attorney's suggestion to sell the garage to the city for a $1
with a deed being transferred, resulting in all three (3) garages in one fund is a possibility;
however they would also have to check with bond counsel since it is governed by a
Redevelopment Authority bond issue. TIF is currently making the debt service payments.
CUMULATIVE CAPITAL DEVELOPMENT FUND (FUND# 406)
Revenue $1,175,200 ($27,336) -2.3%
Expenditures_$ 449,950
City Controller M. Catherine Fanello made the presentation. She noted that the tax rate of$0.5
per $100 net assessed valuation will remain the same. Reimbursements of $61,775 is for
computer maintenance agreements. It was further noted that a fifteen percent (15%) reserve is
being maintained in the fund.
CUMULATIVE CAPITAL IMPROVEMENT FUND (FUND#407)
Revenue $ 575,106 ($30,181) -5.0%
Expenditures_$ 591,883
Revenue under$ (16,777)
August 18,2005 Personnel and Finance Committee Meeing Minutes -page 1-
,
City Controller M. Catherine Fanello made the presentation. She noted that the city has lost
$30,000 in cigarette taxes. There is enough to cover the projected deficit.
Tom Skarbek provided a one-page handout entitled "Schedule of Outstanding Debt" (copy
attached).
ECONOMIC DEVELOPMENT INCOME TAX FUND (FUND#408)
Revenue $3,661,794 $47,642 1.3% increase
Expenditures_$3,322,893
Revenue over $ 338,901
City Controller M. Catherine Fanello made the presentation. She noted that revenues are
projected to be up approximately 1% for next year This fund has a fifteen percent (15%)
reserve.
Council Member Kirsits inquired about the common area fees. These fees from Memorial
Health Systems are in lieu of property taxes and are projected to be $138,000 in 2006, up
$13,000.
Council Member Kuspa inquired about Fire Station #10. It was noted that it is subject to a
lease/purchase agreement.
Council President Pfeifer requested more background information on the hotel/motel tax,
especially in light of Dennis Andres comments that his operations do not receive such funding.
Dr. Varner noted that hotel/motel taxes help pay for the Century Center's operational expenses.
COUNTY OPTION INCOME TAX FUND (FUND# 404)
Revenue $5,665,120 $54,902 1.0%
Expenditures $3,095,081
Revenue over $2,570,039
City Controller M. Catherine Fanello made the presentation. She stated that a transfer of
$280,000 to MVH is involved. This fund has a twenty percent(20%)reserve or$1,133,024.
In response to a question from Dr. Varner,Ms. Fannello stated noted that in 2004, in light of the
homestead credit the state takes revenue from the top resulting in a reduction to the
homeowner's bill [2004 revenue=$7,001,198 and 2005 revenue= $5,490,218].
Council President Pfeifer inquired whether the roof at the King Center is no longer leaking and
requested an email update.
REDEVELOPMENT COMMISSION- STUDEBAKER BOND (FUND#310)
Revenue $ 620,732 ($86,057) -12.2%
Expenditures $ 330,660
Revenue over $ 290,072
August 18,2005 Personnel and Finance Committee Meeing Minutes _page 2-
City Controller M. Catherine Fanello made the presentation, noting that this bond will be paid
off next year.
Tom Skarbek stated that he does not believe that there will be any cash balance remaining.
REDEVELOPMENT COMMISSION- FOOTBALL HALL OF FAME BOND
(FUND#313)
Revenue $1,418,483
Expenditures $1,406,900
Revenue over $ 11,583
City Controller M. Catherine Fanello made the presentation. She noted that the bond's maturity
date is 2018, and that the bond had been refinanced.
In response to a question from Dr. Varner, Tom Skarbek stated he would double-check on the
flexible rate.
COMMUNITY&ECONOMIC DEVELOPMENT-TOTAL DEPARTMENT (FUND#212)
Revenue $2,780,240 ($3,250) -0.1%
Expenditures_$2,780,243
Revenue under$ (3)
Sharon Kendall, Executive Director of the Department of Community & Economic
Development made the presentation. She began by presenting an updated organizational chart.
She then briefly summarized a handout which included an explanation of programs/projects;
summary of the Division of Community Development; goals & activities of the Division of
Economic Development; and a summary of the Division of Financial & Program Management
(copy attached). Ms. Kendall stated that the salaries have been calculated on the city's guideline
of a 2%increase.
Elizabeth Leonard noted that CDBG may have a small reduction of the block grant funds,but not
as much of a reduction as previously anticipated.
In response to a question raised by Council President Pfeifer, Pam Meyer noted that the Urban
Enterprise program is secure; however in light of changes in the law that the anticipated revenue
is uncertain. Zone residents may participate in employment programs, child care, training and
transportation programs, however they do not have to work within the zone. Judy Smith recruits
people to live in the zone. The incubator program is doing very well.
Council President Pfeifer requested a summary of last year's numbers of zone residents
addressing gender,race,who referred them,etc.
In response to a question from Dr. Varner, Tom Skarbek confirmed that the three (3) Divisions
receive a total of$978,00 of General Fund monies.
August 18,2005 Personnel and Finance Committee Meeing Minutes
-page 3-
Mayor Luecke noted that the baseline of support was related to the payment used to pay UDAG
bonds. The Mayor further noted that Downtown South Bend is addressed thru the capital
budget.
The Mayor requested that the Hall of Fame budget be postponed in light of Rick Walls being on
vacation following the recent Hall Enshrinement activities.
The Hall of Fame budget was reset to Tuesday,August 23,2005 at 5:30 p.m.
Council Member Puzzello noted that she will soon be setting of meeting of her committee to
hear a proposal from Downtown South Bend.
There being no further business to come before the Committee, Dr. Varner adjourned the
meeting at 4:31 p.m.
Respectfully submitted,
Council Member David Varner, Vice-Chairperson
Personnel and Finance Committee
KCF:kmf
Attachments
August 18,2005 Personnel and Finance Committee Meeing Minutes
-page 4-