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Home My WebLink About08-17-05 Personnel & Finance Personnel and Rnance Committee 2005 South Bend Common Council The August 17,2005 meeting of the Personnel and Finance Committee was called to order by its Chairperson, Council Member Roland Kelly at 3:30 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Puzzello, Varner, Kuspa, and Kelly; Mayor Stephen Luecke,Mikki Dobski Schidler, Susan R. Visser,Bonnie Strycker, John Farrell, Charles Leone, Susan Wallace, Tom Skarbek, Sharon McBride, Margaret Hartsaugh, Anthony Douglas, Brian Hedman, Tom Davis, City Controller M. Catherine Fanello and Kathleen Cekanski-Farrand, Council Attorney. The Council Attorney noted that Vice-President White will be unable to attend today's Committee meeting due to her duties at IU South Bend. Council Member Kelly called for a presentation on the proposed 2006 Youth Service Bureau budget. Youth Service Bureau General Fund# 101-0407 2006 Expenditures $ 75,000 Bonnie Strycker, Director of the Youth Service Bureau made the presentation. She provided a one-page summary of her operations to the Committee; a one-page summary of"Local Funding Support and Service Levels"; a 3-page handout addressing"Street Outreach" which detailed the Street Outreach locations in South Bend, Mishawaka, and St. Joseph County; a summary of the July 2004-2005 Youth Needs as Referral Requests; and a summary of the linking of youth to written materials, health product materials, food & drink, etc., and a 4-page paper-copy of a power point presentation focusing on Youth Service's vision,youth development programs, Safe Place, Safe Place Outreach, Street Outreach, Youth & Family Crisis Line, Safe Station, Young Mom Self-Sufficiency Program, Youth Development Services, Community Service/Life Skills for Suspended Youth,the use of city funds and requests for 2006 (copies attached). Mrs. Strycker noted that the Bureau's total budget is $1,270,305. From 1972-1985 the Youth Service Bureau was part of South Bend City Government. Thereafter it was separated. In response to a question from Council Member Puzzello,Mrs. Strycker stated that persons who need psychological help are referred to other agencies in the community. Council Member Kelly noted that the Bureau's work in the community is a "labor of love" and he admired Mrs. Strycker and her staff for all of the services they provide. South Bend Regional Museum of Art General Fund# 101-0408 2006 Expenditures $ 65,000 August 17,2005 Personnel and Finance Committee Meeing Minutes -page 1- Susan R. Visser, Executive Director of the South Bend Regional Museum of Art made the presentation. She provided a summary of activities on their operations and gave several handouts to the Committee which she highlighted. The handouts included tickets to the last"Meet Me on the Island" for August 26, 2005; postcard on"Off the Wall" event for September 29th; SBRMA Fall Class Schedule 2005; Flora handout from March 5th-May 8th; one-page summary of "Beyond Tomorrow"from Jason Lahr, Curator of Exhibitions; 3-page copy of website on Art for Teens Only Fall Classes; and 3-page copy of website on SBRMA E-Newsletter(copies attached). Ms. Visser noted that in late 2004 and early 2005 they had many rough spots and faced deficit situations, resulting in the closing of the Museum Shop. She noted that they have had discussions with Peggy Soderberg at the Studebaker Museum about the possibility of partnering in this area. She noted that she has a vibrant staff of 9 full-time employees, 11 part-time employees, and over 200 volunteers including 50 touring guards. Council Member Kelly thanked Ms. Visser for her many services to the community. Studebaker Museum General Fund# 101-0409 2006 Expenses $206,179 2006 Grants/subsidies$ 189,000 John Farrell, the treasurer of the Studebaker Museum made the presentation. He noted that Becky Bonham is in the State of Washington at an International Studebaker Drivers Meeting. He stated that these are exciting times with October 28-30, 2005 being the Grand Opening for the museum. The museum receives $172,000 per year from the city plus $17,000 for next year to assist in the unknown utility costs and new expenses. In response to a question from Council Member Kelly, Mr. Farrell stated that $750,000 in contributions were received in 2000; and $200,000 in pledges were made from 2000-2004. They are challenging all members to give $68 each as part of a 5-year giving plan and they would get a coin. He noted that this would result in$340 each x 10,000 members. They are also selling bricks. In 2007,the International Studebaker Drivers meeting will be held in South Bend and should have about 5,000 attending. They anticipate a need of $1 million for endowment purposes.. They are working well with the Center for History. In response to a question from Council Member Puzzello, Mr. Farrell stated that science/dinosaur tours are not expected in the future, however they are trying to develop other educational alternatives. Mayor Luecke stated that in their 5-year business plan it was noted that additional monies may be needed in 2006. Dr. Varner requested copies of their Form 990's and annual report since they have provided this information in the past and since they are a 501C3 operation. He noted that the $750,000 pledge of the Drivers Club was never fulfilled, noting that the $750,000 came from MACOG. He wished them the best but voiced concern over false expectations. He noted that a request is before the Board of Public Works for$419,000. August 17,2005 Personnel and Finance Committee Meeing Minutes -page 2- i T Mr. Farrell stated that the former Jelly's Bar would involve a local grant and 80% federal funds. He further noted that an endowment of $5 million is needed which would generate $250,000 annually. Council Member Kelly thanked Mr. Farrell for his presentation and then called for a presentation on Internal Service Funds. Internal Service Fund-Liability Insurance Reserve (Fund#226) 2006 Revenues $2,342,460 2006 Increase $ 49,306 2.2% 2006 Expenditures $2,342,320 2006 Increase $ 65,067 2.9% Internal Service Fund- Self-Funded Employee Benefits (Fund#711) 2006 Revenues $13,193,374 2006 Increase $ 1,397,391 11.8% 2006 Expenditures $13,189,851 2006 Increase $ 1,606,742 13.9% Tom Skarbek, Director of Budgeting & Financial Reporting reviewed the budget summary pages, addressing workers compensation, self-insurance claims, etc. Sharon McBride then provided a powerpoint presentation to the Committee and provided a paper copy of the"2005 Trends&2006 Budget" (copy attached). City Controller M. Catherine Fanello provided a 2-page "Liability Insurance Cost Allocation Summary-2006" (Copy Attached)and summarized it with the committee. In response to a question from Council Member Kuspa,Mr. Leone noted that each police officer pays an amount per pay check to cover a portion of the liability costs for their take home car. The Controller noted that$59,800 is the total collected annually from the officers. Susan Wallace and Margaret Hartsaugh, a representative of Gibson Insurance, noted that the figures in Fund# 711 are conservative. One persons has been lasered out at $350,000; and two others may possibly each have expenses of $200,000. The underwriters will reassess the situation by the end of the year. The 3rd party administrator (TPA) fee is $244,000. North American Administrators was the lowest of four(4)bids at 5%. They noted that Indiana has the 4th highest cancer rate in the nation. Life insurance is up 10% and includes fire and police pensioners. In response to a question from Council Member Puzzello, Ms. Wallace stated that she would contact SBCS about their insurance program. The city's cafeteria plan is funded at $565,000 with$525,000 of that amount being used. It was noted that at the end of the 3rd quarter the city will have updated data in this area and that another presentation would be given to the Council. August 17,2005 Personnel and Finance Committee Meeing Minutes -page 3- Council Member Kelly thanked everyone for their information on Internal Services Funds and then called for a presentation on the Century Center. Century Center Fund#670 2006 Revenue $3,099,035 2006 Increase $ 27,982 0.9% 2006 Expenditures $3,070,617 2006 Decrease -$ 113,654 -3.6% Anthony Douglas, President of the Century Center Board of Managers; Brian Hedman, Executive Director of the Century Center; and Tom Davis, Director of Finance made the presentation. They noted that this has been the hardest budget to prepare and they continue to crunch numbers. They struggled with salaries and benefits and eliminated some positions- one full-time and "slashed deep" into the personnel part-time help. They are in challenging times and are continuing discussions with the CFHF and matching fees and expenses. They are in desperate need of capital monies for carpeting, the boiler system, etc., and the Century Center Board of Managers will vote on August 24th. In response to questions from Dr. Varner, it was noted that $121,000 was cut from part-time personnel which include several highly skilled employees. A"fresh look"must be given in order to remain competitive such as purchasing 300 new quality stacking chairs,etc. It was also noted that they have looked at sponsorships in the past which resulted in the Bendix Theatre. Mr. Hedman noted that on November 1, 2005 there will be a 28th anniversary celebration of the Century Center entitled"Celebration of Vision",noting that the Century Center opened in 1977. Council Member Kelly thanked Brian,Anthony and Tom for their service and their presentations and then adjourned the meeting at 6:00 p.m. Res 1 ` ubmti ed, Council Member Roland Kelly,Chairperson Personnel and Finance Committee KCF:kmf Attachments August 17,2005 Personnel and Finance Committee Meeing Minutes -page 4-