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HomeMy WebLinkAbout08-15-12 Personnel & Finance f f Personnel and Finance Committee 2005 South Bend Common Council • The August 15,2005 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 Dieter, Pfeifer, Puzzello, Kelly, Varner, Kuspa, Kirsits, White, and Rouse; Fire Chief Luther Taylor, Assistant Fire Chief Richard Switalski, Police Chief Thomas Fautz, Division Chief Rick Kilgore, Director of Fiscal Management for the SB Police Department Donald Pinckert, Jack Dillon, Catherine Bruecker, Director of Public Works Gary Gilot, Tom Skarbek, Lyn Coleman, Mikki Dobski-Shidler, City Attorney Charles S. Leone, Mary Aim Myers, City Controller M. Catherine Fanello, Executive Director of the Department of Community and Economic Development Sharon Kendall, Morris Performing Arts Center Executive Director Dennis J. Andres, Linda Doshi, Margaret King, Marika Hegedus, Sara Ermeti, Judith Goodkin, Kathleen Cekanski-Farrand, Council Attorney, and Jeff Parrot of the South Bend Tribune. Council Member Kelly noted that the Committee Members present included Council Members Varner,Kuspa, and himself as Chairperson. Council Member Kelly noted that Mayor Luecke is running late in returning from a meeting in Indianapolis, and therefore would move ahead with presentations on the pension funds. FIRE PENSION FUND (FUN]#701) $5,661,160 Revenue $5,583,749 Expenditures Assistant Chief of Services of the South Bend Fire Department, Richard Switalski made the presentation. He provided a 16-page handout to the Committee entitled "South Bend Firefighters Pension Fund Proposed Budget 2006"(copy attached). Chief Switalski stated that this is a tentative budget in light of the ongoing fire negotiations. The Firefighter 1st Class was "plugged in" at 2% as a starting figure, and noted that the entire budget is summarized on the first page entitled "Summary of Major Changes from 2006". With the revenue from the General Fund there is an increase of 30.1%. Expenditures are up$657,597. Chief Switalski stated that 100 retired firefighters are under the 1937 pension program; and 36 retired firefighters are under the 1977 pension program. Schedule 2 sets forth those eligible or expected to retire 01/01/06 thru 12/31/06, noting that thirty-eight (38) firefighters are eligible to leave next year. Schedule 3 sets for the eighty-three (83)widows. The last page summarizes the firefighters who have elected to be under the DROP Program which indicates that there are two (2) firefighters in 2005; nine (9) firefighters in 2006 and twenty-seven (27) in 2007. DROP is currently set to expire on 12-31-07. The City pays up-front the costs related to DROP and then is reimbursed 50%of that amount the following year in two(2) equal payments. In response to a question from Council Member White, Chief Switalski noted that if there is any overage in the account that it remains in the pension fund account.. He further noted that the current reimbursement by the state of 50%is also to expire on 12-31-07. August 15,2005 Personnel and Finance Committee Meeing Minutes -page 1- POLICE PENSION FUND (FUND#702) $5,758,589 Revenue $5,685,439 Expenditures Director of Fiscal Management for the SB Police Department Donald Pinckert made the presentation and provided a multi-page handout entitled "South Bend Police 2006 Pension Budget" (copy attached). He noted that he is also the Pension Secretary. He noted that the draft budget calculated a 2 % increase on the base and if necessary it will be changed. The fund currently reflects an increase of$189,473 or 3.4%. Funding for the retired officers will increase by $80,000; and funding for widows will decrease by $62,000; noting that four(4) widows have passed away this year so far. Mr. Pinckert noted that there will be an increase in DROP of $191,500 in 2007 and that twenty-one (21) officers are in DROP in 2007 for a total of$306,400. Police Officers may still join the DROP program,and the City is reimbursed 50%of that amount from the state. All new police officers hired are part of the 1977 pension fund. If all of the eligible police officers retire in 2006 the financial impact will be$ 1.5 million. Council Member Kelly then asked Mr. Pinckert to review the proposed 2006 Police budget. POLICE DEPARTMENT(GENERAL FUND# 101-0801) 2006 Projected Expenditures $26,349,325 Percentage Increase 7.7 % Mr. Pinchert stated that he did not have a detailed handout like he usually has for the budget in light of the ongoing police negotiations, and that the proposed budget is tentative as a result. He stated that all civilian and sworn members were based on a 2%. There are no personnel changes proposed. $1.3 million of the $2.2 million proposed increase is a transfer to the pension fund. Without the pension transfer the increase is $553,000, with salary increase being $301,000 and overtime being increased by$49,000. Mr. Pinckert stated that $16,210 additional will be budget in the overtime account to cover the cost of the proposed 7th Notre Dame home football game next year for traffic control. Mr. Pinckert then highlight the items listed under the "Reimbursable Recall/OT" in the line-item budget, which reflects approximately$400,000 of overtime being reimbursable. In response to a question from Council President Pfeifer, Mr. Pinckert noted that money spent for officers to appear in court appears to have leveled off $116,000 is proposed to be budgeted in 2006, and in previous years that amount was higher. Police Chief Thomas Fautz stated that he has worked with County Prosecutor Michael Dvorak and that they will have an office in the Police Headquarters to help cut down the cost to the city. Council Member Kelly inquired whether there have been any discussions with the University of Notre Dame in light of the cost of over$16,000 per game August 15,2005 Personnel and Finance Committee Meeing Minutes -page 2- Chief Fautz stated that the projected cost to cover Notre Dame football game traffic control in 2006 is $113,000 to cover 3,267 hours. He noted that most police departments get reimbursed by the university for such detail based on a recent survey conducted by his department. Dr. Varner inquired whether anyone has asked Notre Dame this year. Council Member White stated that in light of a new President at Notre Dame that it would be beneficial to have the conversation now, noting that it was an excellent time to put this issue on the table. Division Chief Kilgore noted that County police, Mishawaka Police and State Police are also involved at football games. Council President Pfeifer inquired whether anyone from the University of Notre Dame asked the city if covered could be provided for an additional football game. Mr. Pinckert stated that he inquired of Sgt. Kraus who coordinates traffic detail and he confirmed that there would be a 7th game. Following discussion, Council Member White made a motion, seconded by Dr. Varner that Council Member Kelly, as Chairperson of the Personnel and Finance Committee, contact the administration of the University of Notre Dame so that discussions on covering the costs of traffic control for Notre Dame home football games by the University could take place. The motion passed. Council Member Kelly stated that he would follow-up and asked the Council Attorney to draft the initial correspondence to Notre Dame for his review. Council Member White asked if the projected cost for automobile gasoline was realistic. Mr. Pinkert stated that the figure is based on $1.75 per gallon. Tom Skarbek noted that Central Store purchases gasoline in bulk. Dr. Varner suggested that the amount be increased by $ .50 per gallon, noting that for 240,000 gallons that would be an increased cost of$120,000. Council Member Kirsits inquired about the reimbursable items and in particular which ones were reimbursed by the state and those reimbursed by the federal government. Mr. Pinckert noted that often grants come in after the budget process is completed and those are not listed for income/expense purposes; and then reviewed the line-item listing. Mr. Pinckert stated that the proposed budget reflects decreases in Special Duty pays and Critical Duty Pays; and noted that PERF is being increased by $72,000. He further noted that the largest increase of$507,000 is for health insurance. Supplies are proposed at"zero net", and that he too has reservations about the gasoline projected costs. Under other services the utilities for the remodeled Central Police Station will add an additional 15%. The electric bill for the month of July was $10,000, and there will be insufficient funds for gas and electric this year. A total of August 15,2005 Personnel and Finance Committee Meeing Minutes -page 3- • thirteen (13) accounts have been decreased for a reduction of$78,000, and he believes that he cannot"touch anything more". Mr. Pinkert stated that thru June, 2005 $55,000 has been collected for burglary alarm. He projects income for 2005 to be $110,000. The loud noise ordinance is projected to bring in $25,000. In light of these amount being dedicated by the Council they will be used for training. There will be a federally funded SRO program in the middle schools. Three (3) officers @ $125,000 per year for three (3) years is a summary of the program. The high school SRO program will continue at a cost of$100,000 being reimbursed by the South Bend Community School Corporation. E911 revenue is collected by the county and then they give the city$200,000 per year. Council President Pfeifer inquired under the instruction line-item which training is mandatory, noting that she was interested in the number of police officers for each type of instruction. Chief Fautz stated that he gives a report to the Board of Public Safety, noting that many are related to required certifications. He stated he would provide a copy to the Council President who in turn would give copies to the entire Council. Council Member Kelly then called for a presentation on the Communications proposed budget. COMMUNICATIONS CENTER (GENERAL FUND# 101-0802) 2006 Projected Expenditures $ 1,521,716 Percentage Increase 4 Mr. Pinckert noted that there are no personnel changes. A straight 2 % increase was used for the employees, with the largest percentage increase being for health insurance. Civilian PERF has increased from 4.25%to 4.5%. Council Member Dieter inquired whether there has been a resolution to the loud stereo situation. City Attorney Charles Leone stated that they are looking at 4-5 enforcement mechanisms and should have a draft ready in the next few weeks. Council Member Dieter stated that he believes that$100,000 could be generated. Council Member Kelly welcomed the Mayor to the meeting and invited him to provide a budget overview. 2006 BUDGET SUMMARY FOR THE CITY OF SOUTH BEND 2006 ANTICIPATED REVENUE $174,702,765 2006 OPERATING BUDGET $163,238,589 2006 OPERATING SURPLUS $ 11,464,176 2006 GENERAL FUND EXPENDITURES $ 65,410,143 August 15,2005 Personnel and Finance Committee Meeing Minutes -page 4- Mayor Stephen L. Luecke apologized for being late for the meeting, noting that he was in Indianapolis attending a Sub-Committee meeting of TACT for Local Government Financing. They are working to make the process more equitable for raising revenues and are working with consultants and reviewing procedures used in other states. They will be bringing a proposal to the General Assembly to help fix the property tax problem which places too heavy a burden on property tax payers. The Mayor complimented City Controller M. Catherine Fanello, Director of Budgeting & Financial Reporting Tom Skarbek, and all Department heads. He noted that guidelines were sent to department heads earlier this year to decrease supplies and keep service accounts even. A 2% figure was suggested to be used as a "plug figure" for salaries, noting that the Teamsters will receive 4%next year. The Mayor stated that with regard to the police and fire departments that the plugged 2% salary figure was "not meant in any way that it was an end place" and that he is not trying to take away or supersede the Council in this area. Mayor Luecke noted that the proposed budget is balanced and continues to provide for all services. It incorporates modes pay increases. There will be seven (7) positions decreased for 2006 by attrition and that since 2002 fifty-one(51)positions have been decreased. There were several assumptions utilized in the preparation of the proposed budget: • The full 3.9%increased growth will be utilized • Teamster salaries will reflect a 4% increase; non-bargaining will reflect a 2% increase and fire and police have"been plugged at 2%"increases • Transfers are necessary for the police and fire pensions • $1.2 million increases are reflected for health insurance • $1.2 million for health insurance reserves • $700,000 of Rainy Day Funds will be used if needed The proposed budget reflects no dollars for capital in 2007. Approximately $3 million for capital was budgeted in 2003 and in 2004; $2.2 million in 2005 and no dollars are being addressed in the 2006 budget for 2007. COIT revenue reflects a decrease of$1 million and auto excise is down $300,000. Merit bonus have been eliminated and will be replaced with an"Employee Incentive Program". The Mayor then provided a 2-page handout entitled "2006 Requested Salary Changes" and highlighted portions of the document(copy attached). Mayor Luecke stated that the new dollars generated will be $1.4 million and that $745,000 have already been collected of the $1.67 million total. Miscellaneous revenue is down by $280,000. He noted that these are challenging times,but that the city is doing very well when compared to other communities. Council Member Rouse inquired about the balance of the Rainy Day Fund after the proposed $700,000. The Mayor stated that balance would be$1.3 million. August 15,2005 Personnel and Finance Committee Meeing Minutes -page 5- Dr. Varner inquired about Health Care Resources and the city's possible recovery, and noted that a bond requirement might be considered. City Attorney Charles Leone stated that it is an asset bankruptcy. The amount to be collected on the dollar has not been determined as well as the timing. He further noted that the city now retains all dollars in their account and a bond requirement would not be necessary. The Mayor noted that rarely is reach department at full staffing. Council Member Puzzello suggested that the page in the line-item detail be cited in future meetings by the presenter. Council Member Kelly thanked that Mayor for the information and then called for a presentation on the Morris Performing Arts Center. MORRIS PERFORMING ARTS CENTER(FUND# 101-0404) 2006 TOTAL EXPENDITURES $856,407 2006 TOTAL REVENUE $648,000 Morris Performing Arts Center Executive Director Dennis J. Andres introduced Linda Doshi, Margaret King, Marika Hegedus, Sara Ermeti, and Judith Goodkin to the Committee; and Tom Skarbek provided a new Summary page for this cost center. Mr. Andres noted that they have fifteen (15) full-time employees and eight (8) part-time employees; as well as 60-80 stage hands and many ushers, etc. which are paid by promoters. He then reviewed a one-page handout entitled "Morris Performing Arts Center Organizational Flowchart-Leighton Theater&Palais Royale Ballroom"(copy attached). In response to a question from Council Member Dieter he noted that the cost of a "Center Marketing Specialist" which is split 60/40 would be $32,000. There are 95 scheduled events, 9 pending and 14 special events for a total ranging from 109 to 118 for calendar year 2005. The Center is ranked 37th among the top 100 internationally for venues of 2,500 seats or less; and 11th of 37 other venues. Mr. Andres then highlighted the many awards they have received and several new marketing items and provided the following documents to the committee: "2005 Events-Photos-Articles-the Morris Performing Arts Center-Palais Royale-The Morris Bistro", and a post card on the Palais Royale (copies attached). He noted that the dinner shows which guarantee seating in the 1st ten(10)rows have been sold out. Sara Ermeti, Assistant Director then highlighted such events as Friday by the Fountain, New Years Eve events, and BELLA. She noted that the Friday by the Fountain events are totally founded by the community and that revenue is spilt three-ways. The New Years Eve events have been sold out for the past three years. BELLA will be a bridal show to be held at the Palais Royale on September 20th from noon to 5 pm. Ms. Ermeit then provided copies to the committee of "The Morris Cyber Fan Club", the Moms Bistro punch card, The Morris Bistro dine in/carry out flyer, The Fall 2005 Moms flyer and the Legends Travel Planner (copies attached). She circulated other items on BELLA(copies not attached). August 15,2005 Personnel and Finance Committee Meeing Minutes -page 6- • In response to a question from Council Member Dieter, the pulstar ad cost was $1,600. In response to a question from Council Member Puzzello, Mr. Andres stated that advertising creates conversations. Mr. Andres noted that he has had talks representatives of the following venues [Century Center 40%, Palais 30% CFHF 20% and Regional Museum of Art 10%] in promoting their food services with the "We Shine Downtown" brochure (copy attached) resulting and several upcoming television ads. Center Plate contributed$15,000 of the $30,000 cost. Mr. Andres then passed out a multi-page handout on the Morris Marquee (copy attached) and noted that steel will be delivered for it on September 20th and that it will be unveiled on October 20th. The marquee should generate 20%more traffic. Mr. Andres stated that he has reduced the net loss each year since began in February of 2000, however he is unable to control the costs for utilities and insurance. The proposed budget is short $208,407; however other venues in Pennsylvania, Massachusetts, Connecticut, etc. have million dollar gaps. He believes that the economic impact to the downtown from the Morris is $3 million per year. This is the 3rd year of operation of the Palais Royale since it was renovated and re-opended. It is not at the level he would like however he is taking steps to make corrections in the sales area, food & beverage & marketing. They do not get hotel/motel revenue. In 2004,they believe that 1,000 rooms were booked at the Marriot as a result of events at the Palais Royale. He is also looking into small children theater events and more events on the Jon R. Hunt Plaza. Mr. Andres stated that the Morris, the Palais and the Bistro are one of the brightest stars which South Bend has. In response to a question from Council Member Kelly, Mr. Andres stated that they have looked into promoting events on their own but it is very chancy. He did speak with the State Board of Accounts and it would be permissible if there was a different promotion line created and if a % of the venue would be in the 416 Fund. He has not seen anything that would be worth the risk. The Mayor noted that discussions with the symphony and their board have been ongoing where they would be asked to move to St. Mary's or the DeBartolo Center for practices to give more flexibility to book more events. Mr. Andres noted that"more arts begets more art". Council President Pfeifer noted that the pictures he has presented in the various handouts reflects diversity of the community and she thanked him for those efforts. There being no further business to come before the Personnel and Finance Committee, Council Member Kelly adjourned the meeting at 5:27 p.m. Res ,dilly submitted, )Y Co er Rolan Kell Cha. erson Personnel and Finance Committee KCF:kmf Attachments August 15,2005 Personnel and Finance Committee Meeing Minutes -page 7-