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HomeMy WebLinkAbout09-22-03 Personnel & Finance +tommtttue *port Slizrzonnti anti finauct Qommttt e The September 22, 2003 meeting of the Personnel and Finance Committee was called to order by its Chairperson, Council Member James Aranowski at 3:30 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Aranowski, Varner, Coleman, King, Pfeifer, and Kuspa, Mayor Stephen Luecke, City Controller Rick 011ett, Director of Budgeting&Financial Reporting Tom Skarbek, Director of Public Works Gary Gilot, Director of the Division of Community Development Pam Meyer, City Attorney Charles Leone, Assistant City Attorney Aladean DeRose, Building Commissioner Don Fozo, Police Chief Thomas Fautz, Fire Chief Luther Taylor, Park Superintendent Phil St. Clair, Morris Performing Arts Center Executive Director Dennis Andre, Manager of Secretarial Services Mary Ann Myers, Mike Balsan, Margaret Hartsough,Benefits Manager Susan Wallace,Tim Williams of Redevelopment,Director of Human Resources Janice Hall and Kathleen Cekanski-Farrand, Council Attorney. Council Member Aranowski noted that for the past several weeks the Personnel and Finance Committee has been meeting with Department Heads to receive their presentations on the proposed 2004 Civil City Budget. He noted that the public portion of the public hearings were held on September 8, 2003. Council Member Aranowski then called for a budget summary remarks on Substitute Bill No. 64 03 which would levy taxes and fix the rate of taxation for the purpose of raising revenue to meet the necessary expenses of the civil City of South Bend for the fiscal year ending December 31, 2004 (copy attached); Bill No. 65-03 which would appropriate monies for the purpose of defraying the expenses of the designated enterprise funds of the City of South Bend, Indiana, for the fiscal year beginning January 1, 2004, and ending December 31, 2004, including all outstanding claims and obligations, and fixing a time when the same shall take effect (copy attached); and Bill No. 66-03 which would appropriate monies for the purpose of defraying the expenses of several departments of the civil City of South Bend, Indiana for the fiscal year beginning January 1, 2004, and ending December 31, 2004, including all outstanding claims and obligations,and fixing a time when the same shall take effect(copy attached). Mayor Stephen Luecke thanked the Committee and the entire Council for their review of the budget with the department heads. He noted that at the September 8th meeting he inadvertently read the rates from Bill No. 64-03, and should have read the rates from Substitute Bill No. 64-03 which calls for a total civil city rate of $3.8283 and a total redevelopment rate of $0.1285. He was recommended that the Council would call upon the Mayor this evening to clarify those rates. Mayor Luecke then requested that the Council act favorably on each of the three(3) bills. Following discussion, Council Member King made a motion, seconded by Dr. Varner that Substitute Bill No. 64-03 be recommended favorably to Council. The motion passed. Council Member King then made a motion, seconded by Council Member Aranowski that Bill No. 65-03 be recommended favorably to Council. The motion passed by a vote of 2-1, with Dr. Varner in the minority. Dr. Varner then made a motion, seconded by Council Member King that Bill No. 66-03 be recommended favorably to Council. The motion passed. Council Member Aranowski that Mayor Luecke and all of the department and bureau heads for Personnel and Finance Committee September 22, 2003 Page 2 their input and assistance with regard to the budget. 11 Council Member Aranowski then called for a presentation on Bill No. 69-03 which would amend lik Chapter 20, Article 1, Section 20-18 of the South Bend Municipal Code by increasing overtime I parking fines. Tim Williams of Redevelopment made the presentation. He noted that the overtime parking fine would be raised from $5.00 to $10.00 and after fourteen (14) days if not paid would be raised ihr from $15.00 to $20.00;with all rates effective January 1, 2004. He added that they have checked 14 the rates in the cities of Bloomington, Evansville, and Fort Wayne and the new rates would be 1 similar to those in effect in those cities. I i Mayor Luecke noted that several areas in the downtown have been changed form one hour to two low hour at the request of merchants. An ongoing parking study is assessing the needs with the ilk Administration making changes where warranted. !l Following discussion, Dr. Varner made a motion, seconded by Council Member King that Bill II No. 69-03 be recommended favorably to Council. The motion passed. i 41/ Council Member Aranowski then called for a presentation on Health Care Costs. o City Controller Rick 011ett noted that this will be the 4th update given to the Council on health care 111 costs. A series of recommendations have been discussed with the Mayor. He noted that Mike I ?* Balsan, Margaret Hartsough, and Susan Wallace would also be a part of this presentation. I It They noted that they met with the Mayor and outlined several significant issues. Mr. Balsan in his power point presentation noted that it would build on what was given originally to the Council. He then reviewed several slides (copy attached), and noted among other things that$140,000 is spent per week on the average for paid claims. The average prescription claim is $32 and the average medical claim in$312.00. Mayor Luecke noted that the costs reflect two (2) primary things, first that a few number of employees have incurred significant costs and 2nd,that there are more claims. A series of potential recommendations were then reviewed (copy attached). Ms. Hartsough stated that the recommendations would be phased in over four (4) years, with the Police Department, Crossing Guards and Non-Bargaining employees having their rates adjusted January 1, 2004;Fire in 2005;and Teamsters in 2007. Ms. Wallace noted that phased in changes to insurance were made in 1998 and 1999; however there is limited ability to impose all of the changes with regard to health care in light of current bargaining agreements in effect with the various unions. Ms Wallace added that having all city employees on one plan results in savings to the city. Mr. 011ett stated that the Teamster contract has a ninety (90) day notice provision. He noted that some of the recommendations may affect decision-making of employees. For example, if an employee substitutes using the emergency room instead of a doctor's office, having a deductible for such an ER visit may result in a behavioral change. He noted that the City pays 90% of $9,094,8432. • Personnel and Finance Committee September 22, 2003 Page 3 In response to a question of parity often raised by members of the Police and Fire Departments, Mayor Luecke stated that the City would propose future contract language which provides the City offering an insurance plan and that the city employees may participate in the plan. Mayor Luecke noted in response to a question from Council Member Pfeifer that the City may not have the full- fledged ability to make changes for all city employees at one time. Mr. Balsan stated that 86% of the plan cost is paid by the City, with 14% of the costs being paid ,E by the employees. it Mayor Luecke noted that the city has been very fair with regard to the percentage of wage increases ir it has proposed for its employees, especially when compared to other governmental employees.. He added that the City also provides good medical coverage, however for those who use it and need it will be helping to carry more of the cost in the future. Council Member King thanked the Administration and their consultants for all the work put into this topic, which he believes was well worth it. He noted that the proposed modifications are "right on target"and may result in nudging behavioral changes. He added that he does not believe that the city should be apologetic,since he pay more for less benefits on a private plan. Council Member Aranowski agreed with Council Member King, noting that the city has a very good plan. He further noted that the quicker the implementation,the more savings would result. In response to a question from Council Member Coleman, Mayor Luecke stated that the phased in changes would begin with an education program beginning October 1st, with the changes taking effect January 1,2004. Dr. Varner suggested the phase in take place in the shortest amount of time as Po e ssibl . Council Member Aranowski thanked everyone for the health care cost update and also thanked the department heads for sitting thru the presentation. He then adjourned the meeting at 4:08 p.m. Respectfully submitted, Council Member James Aranowski, Chairperson Personnel and Finance Committee KCF:kmf Attachments