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HomeMy WebLinkAbout08-27-03 Personnel & Finance tommitta littport Vizrsot111ti au i final= tottunittu The August 27, 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 Varner, Kirsits, Coleman, Pfeifer, Kelly; King, Aranowski, White, Kuspa,Mayor Stephen Luecke, City Controller Rick 011ett, Director of Budgeting & Financial Reporting Tom Skarbek, Police Division Chief Richard R. Kilgore, Police Fiscal Officer Donald E. Pinckert, Personnel Director Janice Hall,Asst. Fire Chief Rick Switalski, Building Commissioner Don Fozo, Becky Neese, Morris Performing Arts Center Executive Director Dennis Andre, Marika Hegedus, and Kathleen Cekanski-Farrand, Council Attorney. Council Member Aranowski welcomed everyone to the Committee meeting on the proposed 2004 Civil City Budget. He noted that the agenda would be rearranged in light of the storm which canceled the first meeting. The Committee would be receiving information , hearing presentations on the proposed budgets and asking questions on areas of concern. No formal recommendation would be made on the proposed budget until all departmental presentations have been completed. Council Member Aranowski noted that City Controller Rick 011ett would be the clearinghouse for all questions which need additional information, with the Council Attorney sending copies of the official Committee records to the Controller. Council Member Aranowski then called for a presentation on the Police Department. 2004 South Bend Police Department 2003 Expenditures $ 22,455,551 General Fund # 101-0801 2004 Expenditures $ 22,826,309 Police Division Chief Richard R. Kilgore and Police Fiscal Officer Donald E. Pinckert made the presentation. Mr. Pinckert noted that Police Chief Tom Fautz was taking his son to college and would be unable to attend today's Committee meeting. Mr. Pinkert noted that the City Administration's request for reductions so that the health insurance increased cost of $905,493 could be addressed. This resulted in a tough and tedious process to accommodate such a request with the overall police budget increase being $1,549,258. He noted that the police wages reflect a 5.7% increase overall for sworn police personnel, with civilian personnel receiving a 4% increase. $677,000 is budgeted to pay for such increases. Mr. Pinckert then reviewed the personnel changes which are addressed in the footnotes on the summary page. He added that one (1) additional school crossing guard has been added, with the original request being for fifteen (15) new crossing guards. Meetings were held with safety of the children being the focus of such discussions. Mr. Pinckert stated that the gasoline line item has been reduced by $50,000, and the Uniform account line item by $20,000 which is a yearly reduction from that line item. PERF requires a 7% contribution for all officers covered by the 1977 Plan. There has been a large investment in the number of bullet proof vests which have a useful life of five (5) years. Overall reductions have resulted in$600,000 being located to help fund the insurance cost increases. There are SRO's in three (3) high schools with the South Bend Community School and the City splitting this cost on a 50/50 basis @ a cost of $85,000. There is a STOP grant with the Prosecutor's Office paying $35,000. E911 from the County is projected at $102,000, however nothing has been received as of this date for this year.The department receives $55,000 from the Personnel and Finance Committee August 27,2003 Page 2 Indiana Juvenile Incentive Block Grant Fund. Miscellaneous income is projected as follows: $30,0000 fees, $65,000 care repairs and $265,000 overtime reimbursement where the City pays the upfront costs and then receives reimbursement form Community and Economic Development, HUD, South Gateway, etc. Mr. Pinckert further noted that the Police Department budget will increase by $1,677,000 with $608,000 of that amount paying for all related costs dealing with salary increases,and$905,000 being the insurance increased cost. Council President White inquired about the percentage of the budget which was requested to be reduced by the Mayor. Asst. Chief Kilgore noted that the Mayor would be addressing that topic in his preliminary remarks on the budget later in the meeting Council Member Pfeifer inquired about the VIP's Program. It was noted that the program is funded from the Controller's budget, with gasoline for the six (6) vehicles and repairs for such vehicles coming from the Police Department. Council Member Pfeifer asked for a written update summarizing all of the costs for the VIP's Program since its inception Council Member Pfeifer inquired whether enough money has been budgeted for training. Asst. Chief Kilgore noted that $35,000 is in the education and training line-item with an additional $30,000 being budgeted elsewhere for a total of$65,000 for the Police Department. He also noted that other funds are drawn upon such as special crimes, family violence, asset forfeiture, etc. Council Member Pfeifer inquired about computers and training. Asst. Chief Kilgore noted that many training pr.qiects aUtilrze it uIer.with...tbeLda, a,heig cf„Caxed 1nr tuture.,use Council Member Pfeifer requested a written report on all types of training proposed for the Police Department for 2004. Mr. Pinckert noted that a report goes to the Board of Public Safety, with Captain Wanda Shock being in charge of training. Dr. Varner noted that $92,152 is being listed as the cost for 2,950 hours for"Notre Dame football traffic". He recalled from prior discussions that the University of Notre Dame only provides reimbursement for fuses or flares, and inquired why there is not a formal agreement to provide such service for the University. Mr. Pinckert stated that he is unaware of any discussion with the University of Notre Dame on this topic at his level, and that it was referred to the Mayor's office. It was noted that all of the hours worked are off-duty and thus effect is recall. Dr. Varner hoped that some day this topic would be resolved in a business-like decision. Council President White inquired whether the Police Department was at full strength. Mr. Pinckert noted that they are currently three(3) officers short, including being 19 officers short on the street. Ten(10) officers have some degree of training with three (3) in the Police Academy which is a 14- week program, and seven(7) officers in FTO. The 12-weeks of FTO now takes place before the Police Academy. It basically takes a half a year of training. Currently there is one officer serving in Iraq, one (1) on light duty and the rest on FML. Last year they were 20 officers down at this point in the year. Only two(2) weeks notice is needed to leave with the last officer retiring on May 2nd and seven(7) in the Spring. They have had 2-3 resignations this year. Council President White inquired if the Police Department budget is acting as a planning tool for Personnel and Finance Committee August 27,2003 Page 3 the department to meet their goals and objectives. She noted that she would like Chief Fautz to address the objectives and challenges they are seeking in light of their proposed 2004 Police Department budget. 2004 Communications Center 2003 Expenditures $ 1,207,880 General Fund # 101-0802 2004 Expenditures $ 1,410,896 Mr. Pinckert noted that they are asking for two (2) additional Communication Specialists, noting that they are currently operating at bear minimum. He added that all position must be filled. There is required training and certification is required. There is a cost of $31,000 to train off-duty, noting that all training is done locally. Training must be done every other year with training taking place in EMD, CPR and IDAC. Overtime is in the hole since now they are paying time and one- half for training time. With the additional of the two (2) additional Communication Specialists, some of the training can be done on duty time. They are requesting that Dispatchers be paid $750 over the 4% increase which would bring the salary to$28,000. It was noted that Mishawaka starts their Dispatchers at$28,000 whereas the City of South Bend starts their Dispatchers at$23,000. The Communications Center is experiencing a tremendous amount of turn over, high stress levels and pay issues. The overall increase request of$253,000 with $144,000 of this amount for salary increases and $83,900 for health insurance increases. The budget reflects decrease of$2,000 in supplies. He noted that most of the employees are female and that they are trying to keep their staff in place. Council President White inquired whether the Communications Center is reflective of the growing diversity of our community. Asst. Chief Kilgore noted that this is a problem. There is a need for individuals to speak Spanish and it has been difficult to recruit such individuals. Council President White inquired about potential liability issues of not have individuals who speak Spanish in the Communications Center. Asst. Chief Kilgore stated that they are working with the various universities and have offered Spanish classes in the past. Currently they utilize Ameritech which can patch calls into interpreters. Council Member Kirists asked about the number of personnel per shift and was advised that it is 25 Dispatchers. They would like to have a swing shift in addition to the current three(3) shifts. Asst. Chief Kilgore noted that they are pursuing Homeland Security grant monies for the Communications Center with the next grant application of$204,000 being applied for next week. He further noted that they are currently down one(1) Dispatcher. Council Member Pfeifer requested a copy of the written job description for a Dispatcher. The Council Attorney suggested that in light of the problem of getting individuals to work the night shift in the Communications Center that they may want to consider offering a shift differential. Council Member Pfeifer noted that shift differentials have worked effectively for years in other private industry positions. Personnel and Finance Committee August 27, 2003 Page 4 Council Member Aranowski speculated that such a concept might"open a pandora's box"for non- bargaining employees. 2004 Fire Pension Fund 2003 Expenditures $ 4,083,698 Fund # 701 2004 Expenditures $ 4,597,355 Asst. Fire Chief Rick Switalski provided a multi-page handout entitled "South Bend Firefighters Pension Fund Proposed Budget 2004" (copy attached). He noted that state law requires that Schedules 1,2 and 3 of the handout be given to the Council each year. He noted that there will be an increase in revenue of 6.3% or$243,916 for a total revenue amount for 2004 of $4,138,170 which sources of income being State Pension Relief Funds, general property taxes, auto excise taxes, commercial vehicle excise taxes, financial institution taxes, firefighters contributions, interest on Indiana's Public Deposit Insurance Fund and other miscellaneous revenue. Asst. Fire Chief Switalski noted that the firefighter 1st Class pension base will reflect a 5.17% increase; that insurance benefits will increase by $49,000 and the Deferred Retirement Option Plan (DROP) currently has four(4) persons in it who have opted to freeze their pension 12-36 months prior. The DROP program was created by Senate Bill No. 60. It requires a firefighter to have twenty (20) years of service and be at least 52 years of age to enter DROP. There are 66 firefighters who meet these requirements. By 2006, there will be 50 in the DROP program, with many waiting to see what the new firefighter's contract will be. DROP allows better budgeting. He noted that he has given Council President White a copy of the 2003 PERF figures. The South Bend Fire Department is listed as 56th in the state and if longevity is added the South Bend Fire Department is 70 of 107 cities and towns. Asst. Chief Switalski stated that the South Bend Fire Department is 2nd last of all of the 2nd class cities in Indiana. 2004 Police Pension Fund 2003 Expenditures $ 4,621,993 Fund # 702 2004 Expenditures $ 5,029,986 Mr. Pinckert noted that he is the new Police Pension Secretary. He provided a multi-page handout entitled "South Bend Police 2004 Pension Budget" (copy attached) which includes the required Schedules 1, 2 and 3. He noted that he has been on the Police Pension Board for the past five (5) years and will be replacing Paul Niezgodski. Mr. Pinckert stated that revenue for 2004 will go up by 7.3%or$284,257 with total revenue being $4,177,690 coming from State Pension Relief Funds, general property taxes, auto excise taxes, commercial vehicle excise taxes, financial institution taxes, Police officers contributions,interest of Indiana's Public Deposit Insurance Fund and miscellaneous revenue. Mr. Pinckert noted that 58 police officers are eligible to retire, with 13 being in the 1925 fund and the rest being in the 1977 fund. DROP has not been utilized as much in the Police Department as in the Fire Department. Those who have signed up all have 32 years or more of service. Many are waiting for the pension base to go up. Dr. Varner inquired if there is a shortfall in the accounts. Tom Skarbek stated that they are carrying the cash balance which covers the deficit. Rick 011ett noted that the State of Indiana provided a one-time infusion of extra monies. He does not Personnel and Finance Committee August 27, 2003 Page 5 anticipate that General Fund monies will be needed like the$800,000 which was need last year. 2004 Building Department 2003 Expenditures $ 1,177,565 Fund # 600 2004 Expenditures $ 1,277,893 2003 Revenue $ 1,096,815 2004 Revenue $ 1,320,103 Building Commissioner Don Fozo and Becky Neese joined the meeting to review the replacement pages detailing the Building Department budget for 2004. Mr. Fozo stated that they are in their 3rd year of paying off the office space agreement with St. Joseph County. The County has agreed to accept $10,000 for maintenance and utilities for next year. He noted that they have a vehicle rotation schedule which takes place every four(4) years. They plan to monitor permit fees with this area being "very poor"and showing a$70,000 deficit. Things have picked up the last two (2) months and if this trend continues should show a $2,500 profit by the end of the year. Mr. Fozo added that fee increase may be needed which he would take back to the home builders. Council Member Pfeifer inquired whether the Building Department has enough inspectors. Mr. Fozo stated that they do as they are currently structured. However, if he could add a position it would be as a result of the new zoning ordinance. Several duties would be shifted to the Building Department if the ordinance is passed as proposed. Mr. Fozo noted that during the Summer the staff is pushed to the limit. Mr. Fozo noted that the proposed zoning ordinance will put an extra burden ont he Building Department. Council Member Pfeifer inquired about apartment usage of properties which are zoned "A" Residential. Mr. Fozo stated that if they are notified of such usage, that they follow up since a permit is required. Council Member King noted that the proposed zoning code would be unveiled on September 18th to the Council, the Area Plan Commission and the Board of Zoning Appeals. He noted that it will require more to be done at the pre-planning stage. There are certain expectations which recognize that more state will be needed to review the designs. Council Member King stated that he is surprised that another person has not been added to the Building Department budget. He noted that the St. Joseph County zoning ordinance will be rewritten last year and will be similar to the one proposed for South Bend. Council Member King stated that"it is senseless to put a new ordinance in effect if there will not be enough staff to implement it". He continued that "we are fooling ourselves int believing that it can be done with current staffing levels, especially with the new County ordinance being proposed also". He noted that builders would like "wide-open development". Council Member King noted that to not plan for proper staff for implementation, makes absolutely no sense,noting that the budget should reflect what you are going to do. Tom Skarbek,Director of Budgeting&Financial Reporting, noted that if there are additional costs that you must find new forms of revenue to pay for such costs. He noted that fees will have to be increased or general fund money transfers will be necessary to address any additional costs. • Personnel and Finance Committee August 27,2003 Page 6 Mr. Fozo noted that he is aware that the Common Council has not been updated on a regular basis on the proposed zoning ordinance. As a result, he does not know if the Council will approve an ordinance that does not require a final site plan, and since he does not know where this is going he did not include additional staff positions in his budget. Council President White stated that it appears that the Building Department needs an additional staff person regardless of what action is taken on the proposed zoning ordinance. Council Member Aranowski asked Mr. Fozo to plan for a new person and reassess his proposed budget. Rick 011ett stated that he would talk with Mr. Fozo and get back to the Council with a revised Building Department budget based on today's discussions. Council Member Kelly stated that it would be best to prepare for more personnel. 2004 Morris Performing Arts Center 2003 Expenditures $ 798,136 General Fund # 600 2004 Expenditures $ 817,684 2003 Revenue $ 317,065 2004 Revenue $ 257,684 Mr. Dennis Andre, Executive Director of the Morris Performing Arts Center, made the presentation, along with Marika Hegedus provided financial support. Mr. Andre noted that they have developed a Policies and Procedures Operations Manual which were non-existent prior to these. He noted that the Moms has been featured on the front-page of Legends. Mr. Andre stated that last year the Council, and in particular Council Members Varner and King, charged them to"push the envelop",which they have taken to heart. This has resulted in: 140 shows in 2004 (projected goal) 130 shows in 2003 (projected goal) 132 shows scheduled to date in 2003 They are under budget in expenses and are presenting as "tight a budget as is possible". The Morris Bistro will bring in revenue between $15,000-$25,000 with no risk in operation to the City. There are 92 spaces for reservations. By adding $ .50 facility fee, they have b een able to generate between $60,000-$75,000, noting that Dr. Varner had previously suggested a seat tax. Liability insurance is being paid by the facility fee. They are being aggressive in concession sales: 2003 $3,250 x#of shows 2004$4,000 x#of shows with $635,000 being projected. They have calculated $190,000 of in-kind contributions for symphony practices. They are giving away income to not-for-profit operations with the Broadway Theatre League being profitable. Co-promotions were tried in 2002, but few are being done today. There will be a new Executive Director for the Broadway Theatre League as of this evening.. Mr. Andre stressed the need to put "bodies in seats to generate monies". They then reviewed personnel changes set forth in the footnotes on the summary page of the budget. Mr. Andre stated that his goal is to have 150 events filing the 2,500 seats. They are ranked 22nd among all theatres Personnel and Finance Committee August 27, 2003 Page 7 in the country having 5,000 or fewer seats, with Radio City being # 1, Fox in Detroit being # 2, and Fox in Atlanta being #3. He further noted that there are 16-18 promoters who regularly use the Morris. The website offers "Fan Club" which provides advance notice of upcoming shows and sell by a password. He further noted that they earn more money if a ticket is purchased over the internet than at the box office. There is a potential to earn more money in this manner, and therefore he will be talking with Bob Allen in the near future. Mr. Andre projected $560,000 in 2003 and $575,000 is the new projected figure for this year. In response to a question from Council Member King, Mr. Andre stated that there are eight (8) BTL productions, which are at risk if some else buys up that area like Clear Channel Net. If that would happen, he would then ask for a fee from BTL. Council Member Pfeifer inquired whether the new theatre at the University of Notre Dame would impact the Morris? Mr. Andre stated that it would not have a negative impact. The ND Concert Hall will have 900 seats with others having 250-300. He has met with their Director John Hains. Notre Dame plans to have three(3) shows at the Morris next year. He noted that their endowment must be spent. Mr. Andre sees competition form the Embassy Theatre and the Star Theatre, with the later having their Summer Programs moved to Navy Pier in Chicago. Council Member Kirsits inquired about the free use of the Morris by school children. Mr. Andre stated that this would not happen and the only thing that he is aware of is that the $1.00 surcharge would not be charged. Council Member Kirsits noted that he went to a Holy Cross Awards assembly at the Morris 3-4 years ago. He also noted that he recalled that school usage was based on availability with Penn also having the opportunity. Mayor Luecke noted that that policy may have been in effect prior to the renovation. Council Member Kirsits inquired whether there is any damage to the front of the Morris resulting from the skateboarding, etc. Mr. Andre noted that kids are in the front area and yes there is some damage which he will discuss with the Park and Police Departments. The gathering itself he finds as acceptable. He also noted that the Fridays by the Foundation have been very successful. 2004 Palais Royale Ballroom 2003 Expenditures $ 297,784 General Fund # 101-0405 2004 Expenditures $454,952 2003 Revenue 271,743 2004 Revenue $$ 410,000 Mr. Andre noted that they are trying to broaden their market base with 104 events being their goal for next year, and 52 events being their goal for 2003. He noted that the building was not done on the New Year's Eve celebration, with work continuing for the next six (6) weeks after that event. • • Personnel and Finance Committee August 27, 2003 Page 8 They have used a lottery for weddings at the Basilica at Notre Dame and it was hoped that they could cash in by having their receptions scheduled at the Palais Royale Ballroom. This turned out to be a tactical error. Dr. Varner asked how big a wedding would have to be to be held in the Palais Royale. Mr. Andre said 100 would be acceptable,however 250 would be great. The figure to rent the Hall is $ 1,875, plus a minimum food charge. He noted that the caterer has invested$500,000. At this point in the meeting, Council Member Aranowski asked the Mayor for a summary of the budget guidelines and for an update on the storm damage. Mayor Luecke stated that this budget experience provides a great time for learning. The operating budget is in the black with surpluses. The proposed budget is $163 million which includes all general and bond funds and all of the utilities. A $3 million surplus in the general fund is projected. The challenges include drawing down on the resources due to the extraordinary investments in the Police Department, Fire Department and Public Works Department, as well as the Southeast Park. COIT revenues are projected to be down. Non-bargaining employees are to receive the same increase as Teamster employees, namely 4%. Police officers will receive 5.3% and the firefighters will receive 4.3%on average, noting that cash allowances are being shifted into the base. Overall personnel will reduce by eight (8) persons, city-wide. There have been 29 decreases made in the past two (2) years thru attrition. For example, the Trash Pilot Program has eliminated personnel and increased efficiency and the `Elephant" pot hole machine is another example. Mayor Luecke stated that Department heads were asked to have a 0%increase in services and a 0% increase in supplies. The budget will have a significant effect by the growing health care costs. Liability insurance is another challenge as well as pensions, with the police and fire pensions being in a deficit situation. DROP has been putting a stress on the system. Mayor Luecke noted that he is proud of the budget as proposed and the level of services being provided. The City has a strong bond rating. Mayor Luecke noted that for the first time the City will receive gaming revenue of $683,000, with the maximum allowable being 4.8% under the state's formula. Council Member Aranowski stated that the Committee would make a formal recommendation on September 22nd. Dr. Varner asked about the new budget formula. Mayor Luecke noted that the past six (6) years are indexed. Tom Skarbek noted that you are permitted to go over 5%, and Rick 011ett noted that you can go up to 6%. Council Member Kirists inquired whether a new fund would be created for the gaming revenue, noting that the City of Bremen recently created a new fund. Mayor Luecke stated that the gaming revenue would be receipted into the General Fund. Council President White inquired about information and technology challenges. Rick 011ett stated that a web designer will be added and that a consulting arrangement for the web is planned. Mayor Luecke stated that the storm damage is extraordinary and the amount of damage being the Personnel and Finance Committee August 27, 2003 Page 9 worst ever. The area of damage was constrained to Sample to Chapin, Miami to SR 23. Crews are being extraordinary just to get the streets opened, with all being open except Main Street. 250 employees have been working. 185 City employees are at work and the City has hired 65 private firms and are utilizing 70 trucks. The City crews are working 12-hour days and this storm will have a budget impact. AEP is also hard at work, 80% of the lines were working by Thursday morning, however 5-6,000 outages will take much longer. There were 27 85' electrical poles snapped during the storm. Council Member Kelly noted that he road with Gary Gilot and Sam Hensley and could not believe the amount of damage he saw. He stated that we are very fortunate that there was no loss of life. Dr. Varner noted that many volunteers have also been hard at work especially in the 5th District where much of the damage took place. Mayor Luecke stated that they will be keeping Main Street closed through the weekend, and that there has been no recognizable increase in crime. Council Member Kirsits noted that it was eerie working during the storm, noting that there were two(2) suspicious fires. Rick 011ett then introduced the new City Personnel Director Janice Hall, noting that she once worked for the City, was a 1st Source Bank Vice-President and is an ordained minister. Council Member Aranowski stated that the next budget meeting will be on Thursday,August 28th at 3:30 pm. There being no further business to come before the Committee, Council Member Aranowski adjourned the meeting at 5:55 p.m. Respectfully submitted, Council Member James Aranowski, Chairperson Personnel and Finance Committee KCF:kmf Attachments