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HomeMy WebLinkAbout09-10-03 Personnel & Finance : e ommittte *port room/lel aittf finance Qtommttt r The September 10, 2003 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 Varner, Kelly, Kirsits, 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 Financial & Program Management for the Department of Community &Economic Development Beth Leonard, Director of the Division of Community Development Pam Meyer, Director of the Division of Economic Development Don Inks, Greg Frankhauser, Tim Williams, Century Center Executive Director Brian Hedman, Century Center Financial Director Tom Davis, President of the Century Center Board of Directors Anthony Douglas, and Kathleen Cekanski-Farrand, Council Attorney. Dr. Varner noted that in the absence of the Chairperson, Council Member Aranowski, he would chair the meeting as Vice-Chairperson of the Committee. Dr. Varner noted that Mr. Gilot was asked to return to the Committee with any follow-up items, Mr. Gilot noted that he would be sending his notes from yesterday's meeting and would have each Bureau Head reduce their"talking notes" and get them to the Council Attorney. Mr. Gilot noted that additional information was requested on the curb& sidewalk program, moving trash out of the alleys to the front curb by Council Member Pfeifer, and being more pro-active on alley maintenance. He noted that Council Member Kirsits has requested a written update on where the hydrant revenues are going, noting that when the fund was created that the City Administration identified a commitment of such funds for two (2) years to roads. Dr. Varner noted that in theory $1.2 million would be involved. Dr. Varner suggested that Council Member Kirsits consider holding a Utilities Committee meeting to formally receive a detailed update on hydrant revenues. Council Member Kirsits noted that years ago the Fire Department had to rent the usage of fire hydrants, and noting the implementation of the leak insurance program in the Water Works Bureau. Mr. Gilot noted that a transition for trash containers at $45 each times $38,000 would be a substantial expense. Council Member Kirsits noted that many neighborhood groups have approached him with regard to replacing the fiberglass light poles with the "new old style" light poles. He also noted that residents near Memorial Hospital would like lights like those installed in Leeper Park. Mr. Gilot noted that$150,000 was spent on three (3) blocks in the Sunnymede area for lights that look like those on Wayne Street. They are earmarking $70,000 to $75,000 per year in each of the Historic Areas for a 7-8 year period for this project. They are also working with AEP to see if they would implement a tariff so that the city would not have to front the entire cost; suggesting that it be a pilot program in the city. The IURC would have to approve such a program. Mr. Gilot suggested that Council Member Kirsits have such neighborhood groups contact Carl Littrell or himself with regard to light pole requests. , r Personnel and Finance Committee September 10, 2003 Page 2 Dr. Varner stated that he would like assistance on "lights which are historically dark" located on Miami Street between Ewing to Oakside in particular. and Miami to Ridgedale. Mr. Gilot stated that there may be underground wiring problems in the area. Council Member Kirsits noted that there is a broken sewer lid on Twyckenham with "SBC" markings on it. Mr. Gilot stated that it would be a phone company problem, but stated that it should be called in so that a safety cone could be placed in the area. 2004 Parking Garages 2003 Expenditures $519,479 Fund # 601 2004 Expenditures $644,910 Main/Colfax, St. Joseph/Jefferson & Leighton Garages Greg Frankhauser and Tim Williams made the presentation. They noted that the figures reflect a fee structure change in 2003. The cash balance is projected to be a negative $1,494,385 by the end of 2004. They noted that overall revenue has increased, and that when Special Events are held that they charge a"Special Event Rate". They are also utilizing temporary labor for Special Events so that FICA and other expenses are not incurred by such contractual employees. The budget is on target for on-street enforcement, with one additional person being added five (5) days per week. The proposed budget is based on current rates in effect. The Council Attorney noted that a proposed ordinance is pending before the Council which addresses parking fines and is scheduled for public hearing on September 22nd. She noted that the City Clerk's Office have voiced concern that they have not had input, noting that such fines are paid through the Ordinance Violations Bureau. Dr. Varner inquired what would be done with the extra revenues. Mr. 011ett stated that they would be able to handle contingencies and maintenance. There is an ongoing study on spaces which are currently taped-off. Mr. 011ett stated that he would review the current status of the pending parking fine ordinance and get back to the Council. 2004 Community & Economic Development 2003 Expenditures $2,605,972 Fund # 212 2004 Expenditures $2,628,408 2003 Revenue $2,606,071 2004 Revenue $2,628,409 Beth Leonard noted that two (2) contracts will not be renewed for 2004, namely the Americorps federal program grant in the amount of $40,000 and the UDAG federal program grant in the amount of$130,000. As a result of the shortfall in revenue they will eliminate two (2) positions, both of which are vacant. One position was to be used for housing expansion and the other was to be used to help monitor the new tax abatement ordinance. They have also cut out interns and have made other miscellaneous adjustments. It was noted that Congress cut Americorps funding in light of education awards not being properly Personnel and Finance Committee September 10, 2003 Page 3 funded;and that there should not be an effect on overseeing the tax abatement programs for several years with the proposed cuts. In response to a question from Dr. Varner,it was noted that Community&Economic Development provides staff for running meetings, accounting services, verification services, work on contracts, originate loans, close loans, deal with insurance. Dr. Varner requested a list of all not-for-profits which receive such assistance from the Department. Ms. Leonard stated that all of the 501C3 are under staff contracts. Dr. Varner inquired about how the fees are negotiated. Mr. Inks stated that they reflect the cost of services in order to recover all costs&it is done in arrears. Council Member Pfeifer inquired about the various partnership centers and the impact in light of the loss of two positions. Ms. Leonard stated that the UDAG $130,000 was "just a stream of money for which they were not providing any additional work". Mr. Inks added that in light of the current economy, tax abatement requests have been down, and that the new tax abatement ordinance will not affect residential tax abatements. If the economy rebounds and there are many new filings, they may be back to the Council for more staff. In response to a question from Council Member Pfeifer, it was noted that they would seek interns on a non-paid basis to help provide service. Pam Meyer noted that they had hoped to expand housing initiatives, but never got to the point where she was comfortable with regard to the position, especially since they do not have a strategic plan. Much will come out of the City Plan and reconfigurations can be made at a later stage. Council Member Pfeifer asked if there are enough planners and whether the city is properly divided, especially if some areas get more involved. She noted that there are neighborhoods who want and need services. We have had excellent planners and she believes that we should maintain a good level of service to all areas which request assistance. Pam Meyer stated that there are six (6) planners and all are assigned to neighborhoods. Marco Mariani was a planner in the Southeast Neighborhood before his promotion to be a Manager. Ms. Meyer stated that she would have to think about Council Member Pfeifer's question and report back. Dr. Varner noted that generally the older areas of the city are inner city neighborhoods, and that it should be the "Near Southeast". He further noted that he talked with Jon Hunt early this year about the old business area along Miami and that the city should be more aggressive about areas that are in a transition stage. Council Member Kelly noted that Dr. Varner raises a good point, but that often times the problem is about creating interest so that there is an ongoing working relationship with the residents. Council Member Pfeifer noted that at a meeting last evening one of the questions raised was"What is the role of government?" She noted that it should be that government acts when others either cannot or do not,and therefore helps to prevent a neighborhood to slide Council Member Pfeifer Personnel and Finance Committee September 10, 2003 Page 4 stated that government should be there until the job is done and emphasized that this is part of the city's responsibility. Pam Meyer noted that the Partnership Program has been successful and that they are trying to get in on commercial areas. It was also noted that the "but for" assessment is still utilized during the loan program. Don Inks noted that there are 125 loans which remain a pretty constant number. He agreed to provide a report to the Council on the loan program. In response to a question from Council Member Kirsits, it was noted that the Neighborhood Partnership homes are not put on the market as quickly as they had envisioned. Council Member Kirsits voiced concern that some of the in-fill houses coming in for tax abatement may be counter-productive to our overall mission in light of their size of 700-800 square feet. The Council Attorney suggested that the City may wish to include a square foot minimum for such residential tax abatement requests. Ms. Leonard stated that these topics could also be addressed as part of City Plan. 2004 Century Center 2003 Expenditures $2,973,410 Fund # 670 2004 Expenditures $3,049,107 2003 Revenue $2,966,771 2004 Revenue $2,628,409 Brian Hedman, Tom Davis and Anthony Douglas made the presentation on the proposed 2004 Century Center budget. They noted that the budget is driven by anticipated business. A couple of years ago they took a hit of approximately$250,000 less from hotel/motel income, and the Century Center Board of Managers approved a 2nd budget. Mr. Davis noted that they are projected $62,336 in increased revenue, with a 3% increase from hotel/motel revenues anticipated. Insurance costs are up $88,000 and this area has become a "touchy issue", since they do not get property tax dollars for their operations. They are double hit since they do not have capital allocations like the other departments who are dipping into those funds to pay for the insurance increases. Mr. Hedman noted that the Century Center is 27 years old and has old boilers, noting that they are under maintenance agreements. Mr. Douglas stated that he would be calling a meeting of the Century Center Board of Managers to address the discrepancies in the budget which now reflect a deficit of$80,412. Dr. Varner suggested that the Board may wish to look at the$32,000 which is budgeted for merit bonus as a possible area to address the shortfall. Mr. Douglas noted that the merit bonuses are distributed by the Board and it may be seen as a penalty if the funding source was removed. Personnel and Finance Committee September 10, 2003 Page 5 Dr. Varner noted that the city owns the building for the College Football Hall of Fame. He questioned by no catering revenues for events held in that building are not captured by the Century Center. He asked that the Board of Managers look into this further. Mr. Douglas noted that they have projected that the Century Center experiences a loss of$70,000 to$80,000 annually by not having the College Football Hall of Fame catering revenues. Mayor Luecke stated that there is in effect a 5-year concessions agreement which ends in 2005. He added that the Century Center presents a "unique set of challenges by the very way that it is set up". He added that insurance costs are a true cost. A possible other option to cover the shortfall would be to use city revenues for short-term help. On the capital side $600,000 is paid each year on the bond. He voiced appreciation that the Board of Managers would be reviewing this further. Mr. Hedman noted that he does not like to present an unbalanced budget, but he stressed that the Century Center is"unique not better"and that these are difficult times for them. Council Member Kelly stated that with a $58 million budget, that he does not see how a $80,000 shortfall provides a major stumbling block,especially since they anticipate a better year in 2004. It was noted that they are working toward the Conventions and Visitor Center helping to assist in getting at least six (6) conventions at the Century Center in 2004, since it is a matter of accountability. He noted that South Bend is a"wonderful destination site". People do not want to stay on Grape Road for their hotel rooms. Hotel space is a real problem in the downtown area, with more rooms helping the Century Center bookings. In response to a question from the Council Attorney, Mr. Hedman stated that addressing the need for more hotels in downtown South Bend should be a part of City Plan, noting that downtown hotels and the Century Center go hand in hand. Council Member Kirsits inquired about security for the Century Center. Mr. Hedman stated that they solicit bids for such services, noting that inside and outside security fluctuates depending on the type of event scheduled. Dr. Varner requested that the Century Center officials keep the Council updated once the Board of Managers have met to discuss their budget further. There being no further business to come before the Committee, Dr. Varner adjourned the meeting at 5:25 p.m. Respectfully submitted, Council Member David Varner, Vice-Chairperson Personnel and Finance Committee KCF:kmf Attachments