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HomeMy WebLinkAbout09-09-04 Personnel & Finance nn ,//�� ( ommittez cJ?42o'Lt of the . 4tIonnef and 9inanaz eommitt of dz. eSoutk BEnd i?ommon Conner The September 9, 2004, 2004 meeting of the Personnel and Finance Committee was called to order by its Vice-Chairperson, Council. Member David Varner at 6:00 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members White, Varner, Kuspa, Puzzello and Pfeifer; , Frederick B. 011ett III, Director of Budgeting & Financial Reporting Tom Skarbek, Community & Economic Development Executive Director Sharon Kendall, City Clerk John Voorde, Kathleen Cekanski-Farrand,Council Attorney; and members of the news media. Dr. Varner noted that since no one was present from the Mayor's Office, Community Affairs, or the City Attorney's Office he called for a presentation of the Common Council budget. Common Council Fund# 101-0301 2005 Proposed$343,269 30.8% decrease from'04 Council President Karen L. White made the presentation and gave copies of the 2004 Council President's Report to the Committee (copy attached). She noted that the report addresses among other things the goals and objectives of the Council which are consistent with their mission statement. President White stated that her key objective both in 2003 and this year was to improve communication among Council Members, with citizens and with the Administration. She stated that she would like to improve participation of citizen members on the Council's Standing Committees,noting that only seven(7) individuals current serve. Council President White stated that one of the methods she used to help improve communication was by instituting a"Council Update" under the Special Business portion of the regular Council meetings beginning with the District Council Members. She stated that this process has been very informative and well-received. At the next regular Council meeting, Council.Members who serve on other boards or commissions such as Area Plan, MACOG, etc. will give updates under"Unfinished Business". Council President White noted that on May 12,2004,the Council held their first Council Retreat which provided an opportunity for extensive and in depth discussions or priority items. At approximately this point in the meeting, Mayor Stephen J. Luecke, City Attorney Charles Leone, Assistant City Attorney Aladean DeRose, Manager of Secretarial Services Mary Ann Myers, City Controller Frederick B. 011ett III, and Director of Communications & Special Projects Mikki Dobski Shidler. Council President White then summarized information on the proposed 2005 Council budget referenced on Page 5 of her report, noting that at the request of the Council a part-time support person was included which is proposed at 20 hours a week at $15.00 per hour. Additional legal services has been increased by $12, 892 noting that there will be two (2) labor negotiations next year involving the Council,namely negotiations with both the police and fire Personnel and Finance Committee Meeting of September 9,2004 Page 1 C.;.nn n p OmmittE cAlkort of ti2E 1PE'L�Oria2F- once 9inancE e0mmitth€ of tp E S outp BE nc( n o mmori eouneG unions. Council President White stated that this calendar year the Council Members received no salary increase. Next year the proposed budget reflects a 1.75% increase of$281 new dollars. She added that the 4-year salary ordinance calls for a 1.75% increase in 2006 and a 1.75% increase in 2007. Council Member Dieter joined the meeting and inquired about the election expenses which were included in last year's budget. He noted that he was in contact with the County Auditor for more detail,however limited information was received. He suggested that there be a follow-up contact made to the County Auditor for more line-item detail on the city's share of the election expenses,since the expense is included in the year of the general election and the year thereafter. Council President White then called upon the Council Attorney to give her annual report. Kathleen Cekanski-Farrand presented a 9-page Council Attorney Annual Report(copy attached). She noted that she has been providing such a report since 1995 when the city began using a performance based budget format. She noted that pages 3-6 summarize the various resolutions and ordinances which have been requested by the various Council Members this year. Page 6 of the report summarizes the various number of Committee and special meetings held this year. She then focused her attention on challenges for 2005. As a companion item to Council President White's emphasis on communication, she suggested that a system of better monitoring rules and regulations established by Council ordinances be implemented. She noted that there is an educational process to become familiar with ordinance provisions as well as monitoring enforcement. Mrs. Cekanski-Farrand also suggested that the Council should be more pro-active in developing brochures which could be of assistance to beat officers, neighborhood centers, the City Clerk's Office, etc. She noted that a multi-page brochure addressing tax abatement procedures; a separate brochure for vacations of public ways; and a separate brochure for rezoning requests could prove very beneficial. She concluded her remarks by stating that at the rate she is currently working, she will have 1,425 hours logged by the end of this month. She welcomed input from the Council in better meeting their needs in carrying out their Council duties. Council President White then presented draft copies of the 2004 Council brochure (copy attached). Dr. Varner noted that he was in Fort Wayne yesterday along with Council Members Puzzello & Kirsits and the Council Attorney and they saw where Fort Wayne has an office called"Council Research Office". Council Member Dieter then called for a presentation on the Mayor's budget. Personnel and Finance Committee Meeting of September 9,2004 Page 2 eommittEE cfeEfio't of traz n r p /� (� / /j /� . E'LSOrznz an 9inanaz C omtnittz,c of the 'outI BEnc &mown &Linai Mayor Fund# 101-0101 2005 Proposed $770,292 3.3% increase Mayor Luecke stated that his front-line person,Mary Aim Myers,Manager of Secretarial Services, would make the presentation. She noted that there are 7 FT employees in the office which includes three Mayoral Assistants,and also student interns. The proposed salary increases are consistent with the guidelines. An adjustment for dues and memberships is requested since that line-item has not increased for many years,and the membership fees are increasing. In response to a question from Dr. Varner, Tom Skarbek noted that each cost center will also reflect increases to reflect the fact that there will be twenty-seven(27)payrolls in 2005. Director of Communications & Special Projects Mikki Dobski Shidler requested to review her cost center's budget at this time. It was noted that the position of "Director of Community Affairs" is in the Mayor's budget which is the former title she held. The Mayor's budget also includes two (2) Managers'of Special Projects at $33,835 each. They also use interns from Notre Dame who earn credit for their service. They are trying to beef-up their e-list to stakeholders throughout the community. Ms. Dobski Shidler then provided a draft of a proposed new publication to be called "Mid Year Report" (copy attached) which may be called a"Progress Report". She noted that it is currently 24 pages. She is using media briefings instead of formal news conferences. They are also working on a public access tv program, but do not have adequate funding at this time. The are therefore looking at partnering with the Chamber for paid advertising possibilities. Potential political business ventures at the airport could also be used as a marketing tool. 1999 was the last customer service survey and she suggested that this also be a priority in the future. They are considering quarterly reports in the South Bend Tribune, and other ways to be creative and proactive. Dr. Varner noted that the Mid Year Report states that the city has a budget of $460 million. Ms. Dobski Shidler requested any other comments or suggestions about the draft be directed to her. Dr. Varner inquired about all of the Notre Dame flags and lighted shamrocks downtown. Ms. Dobski Shidler stated that they were purchased by Downtown South Bend, Inc. and would remain up during the football season. Costs of the flags and lighted shamrocks were requested. Council President White thanked the Administration for their email updates. Council Member Pfeifer noted how helpful and pleasant the Mayor's office has been this year. Council Member Deiter then called for an update from the City Attorney's Office. Personnel and Finance Committee Meeting of September 9,2004 Page 3 ComYr2ittEz J,to't of tL E,u.onne- and 9inaneE CommittEz of t cSoutg BEnci common 2ounad Legal Department Fund# 101-0501 2005 Proposed $866,991 3.6% increase Charles S. Leone, City Attorney, noted that the proposed budget for the Legal Department is similar to last years. There are nine (9) attorneys, one (1)paralegal, one (1) office manager, one (1) collection specialist, one (1) claims investigator, and two (2) secretaries. Mr. Leone stated that when an additional attorney was added in 2002, it was hoped that the costs for this position would be reimbursed from TIF revenues. ,I'lr' revenues from the airport and downtown do reimburse but not at the full rate. The claims investigator is in the liability self-insurance budget. Mr. Leone is requesting that the four(4)Assistant City Attorneys receive a 7.5% increase next year which would be equal to individual raises of$8,952. He proposes that this be funded from the library budget which can handle the additional cost. Mr. Leone then passed out a multi-document handout (copy attached). He stated that recent changes have been made to the sheets indicating "Attorney Assignments" and that Ann-Carol Nash is now the attorney for the Century Center Board of Managers and that Jeff Jankowski is the attorney for the Board of Zoning Appeals. He noted that under $300,000 has been apid out in liability claims. In response to a question from Dr. Varner, Mr. Leone noted that in 2000, $408,603.19 was paid out which included damages resulting from the gun show. Legal fees may be required to pay related the Kitty Kat Lounge lawsuit which could be in the low six-figure range. Dr. Varner inquired where the redevelopment judgments are reflected and a summary of them. Mr. Skarbek thought they were reflected in Fund# 226. Mr. Leone stated that he would check on redevelopment judgments. Council Member Pfeifer inquired whether the city seeks monetary damages in businesses that are operated as a nuisance, and cited the Bulleyes liquor store which was ultimately shut down. She noted that police are sent to such nuisance operations and it effects security in other parts of the city. She also noted that nuisance operations of this type usually have litter and trash problems also. Mr. Leone stated that he would check into the Code to see if monetary damages could be sought against such nuisance operations. He noted however that trying to recoup costs for police overtime would be difficult. Council Member Pfeifer then cited an operation at the corner of Lincoln Way and Adams and stated that the problems relate to the hours of operation. She also stated that drug-type paraphernalia is being sold which she believes again constitutes a nuisance. Personnel and Finance Committee Meeting of September 9,2004 Page 4 CommittEz cR4zott of az 3 zz.sonnzi and 9 t i z a n G,E C o m m i z z o f tf7.E Sou,t2 Ewa Common &anai1. Mr. Leone stated that he would explore this area. Mr. Leone then summarized some of the new items which are taking place in the Legal Department such as training sessions for taxi cab drivers and a municipal law seminar. He then referenced the handout entitled "South Bend Local Government Academy" (copy attached). 26 people registered with the first class being held last night. Mayor Luecke noted that several public works vehicles were on display. Questions were across the board. Council Member Deiter inquired about the in car cameras and its effect on cutting down claims in the police department. Mr. Leone stated that that is one factor which helped cut down claims in addition to having won a few cases. Council Member Deiter inquired about the status of the Always Open. Mr. Leone stated that there are still eleven (11) claimants who have claims against the city, but there are no criminal claims pending. Assistant City Attorney Aladean DeRose stated that the city is getting good value for their services with the hourly rate averaging $46 per hour compared to private rates of$200 or more per hour. The attorneys in Legal Department are specialized. Approximately$190,000 has been collected this year. Contingency fees of 33% are charged and they are looking into this area for more possibilities. Council Member Deiter inquired what is the success rate of collection from the City Clerk's Office through the Ordinance Violations Bureau, as well as by types of city ordinance violations. Mr. Leone stated he would calculate this information. He also added that Small Claims Court will go from$3,000 to $6,000 next year City Clerk John Voorde inquired whether the amount which can be collected by the Ordinance Violations Bureau will be increased from its current amount of $100 per violation. County Option Income Tax(COLT) Fund#404 2005 Projected$2,608,229 City Controller Rick 011ett stated that this account will receive $1,101,276 less in revenue which is related to the homestead credit regulations recently enacted. Dr. Varner inquired about the $2,889,388 which is listed as the projected COIT funds available for capital projects. Mayor Luecke stated that this money is part of the capital budget in 2005. Tom Skarbek stated that the 10% reserve amount of$610,841 would be the balance in the fund at the end of 2004. Personnel and Finance Committee Meeting of September 9,2004 Page 5 Commilizz cAlko't of t . Ezlonne.1 and 9inanea eomanittez. of tf2E SoutI BeAci eommon &twa t Cumulative Capital Development Fund(CCDF)Fund#406 $1,202,536 revenue projection Mr. 011ett stated that this fund has revenue form general property taxes of$1,047,825, with the remaining funds being from auto excise taxes, commercial vehicle excise taxes, financial institution taxes, reimbursements, and interests on investments. Expenditures include payments due on outstanding leases for computer maintenance. Cumulative Capital Improvement Fund(CCIF)Fund#407 $605,287 revenue projections Mr. 011ett stated that revenue is from cigarette tax distribution, and hotel/motel lease payments. There is a small amount from the South Bend School Corporation which is basically a pass through. Economic Development Income Tax(EDIT)Fund#408$3,732,215 revenue projections Mr. 011ett stated that the state gives the number and they plug it in for EDIT. Mayor Luecke noted that Project Future is paid$1 10,000 from this fund. Administrative costs for Community&Economic Development are also paid from this account in the amount of $497,496. Dr. Varner inquired about all funds which are paid to Downtown South Bend, Inc., and requested a summary of all funds and sources listed for them. Dr. Varner also asked for a copy of their operating statement, which he believes should be sent to the Council on an annual basis. Council Member Kuspa inquired about the capital lease payment for Fire Station # 10. Mr. Skarbek stated it would be paid off in 2006 College Hall of Fame Fund#313 and Fund#377 It was then noted that at the last Committee meeting discussion on the funds related to the College Football Hall of Fame would have further discussions. Mayor Luecke stated that Bernie Kish is unable to be at today's meeting in light of a big event at the College Football Hall of Fame. The Mayor stated that he thought questions would be provided to the Administration. Dr. Varner stated that he would get questions to the Mayor and suggested that those questions could be addressed after the Building Department budget is reviewed on September 15th with the Committee meeting beginning at 4:30 p.m. Personnel and Finance Committee Meeting of September 9,2004 Page 6 eomnzitt c.REflott of tfiz„ zzlOnne.L and 9inana eOmmittE of thE S outp BEn (Common. eoune / Mayor Luecke then gave a brief summary of the events leading up to the Hall of Fame being located in South Bend. He stated that the NFF was looking for a new location. South Bend gave a proposal where they believed that they could get corporate sponsorships and that attendance and special events would generate adequate money. The city was wrong on both. He noted that corporate sponsorships changed from marketing to philanthropy. Attendance projections were optimistic but not realistic. Mayor Luecke noted two (2) new sources of revenue were pursued namely: hotel/motel @ 1% on top of the 5%; and the professional sports development fund which collects money which would otherwise go to the state. The boundaries for the development fund include the Cove,Morris,Palais and the Century Center. Fund# 313 is the financing which is on the property rolls. It covers bond payments of $ 1,421,619, with bond payments being required through 2018. The agreement has been amended which gives the operations over to the NFF. $350,000 from hotel/motel and $150,000 from the Professional Sports Development Fund. Dr. Varner asked if the Common Council was a signatory to the agreement where the city guaranteed payments. Mayor Luecke stated it was not, and added that there is no cap put on the amount. Mayor Luecke stated that he sequestered 1% because when the agreement was signed the rate was 5%. The Mayor noted that 2005 is the end of the amended agreement. The Mayor's goal is to put caps on both funds and have them decrease in amounts due over time. He noted that Fund # 377 is a pass through of monies. Mayor Luecke stated that the College Football Hall of Fame is an asset to the city. Council Member Puzzello asked if the city has ever fallen short in its payments,to which the Mayor stated it has not. He added that Bernie Kish is an employee of the Hall and not of the city. Dr. Varner stated that he believes the agreement should be re-negotiated, noting that what"the city won and what the city got are two different things". It was noted that the NFF is a not-for-profit corporation. Dr. Varner suggested that the city would save monies if it paid for the scholarships instead. He noted that Mr. Fallon stated it was our problem and that he has no intention to participate. Dr. Varner stated that in the redevelopment budget he sees that the $500,000 as a contractual obligation, but that the $335,000 is a supplemental appropriation. If the $335,000 is not provided then the NFF would have to lower its expenses or raise revenues. Dr. Varner stated that he is pleased that Mr. Kish will show up at the next Committee meeting. He believes that it is prudent the the amount does not go higher,and that the NFF should come back to the table. Personnel and Finance Committee Meeting of September 9,2004 Page 7 eommittE.E.ca/iota of t .1 Etionna and 9inanec eommittez of t Be.nct?ornmon & and Council Member Puzzello stated that it is a beautiful facility and that since they are in the business they should really try to make it work. Mayor Luecke stated that the NFF is working very hard, and that they are not in the business. He noted that Bernie Kish and is staff are doing a fine job. Dr. Varner acknowledged the Play It Smart Program and the scholarships as positive works of the NFF. He noted that it took two(2)years for the interim agreement to be negotiated. We have had the facility for ten (10)years and the city needs to ratchet down the discretionary funding request. Mayor Luecke disagreed. Dr. Varner stated he would fax his questions to the Mayor before next week's meeting. There being no further business to come before the Committee, Council Member Deiter adjourned the Committee meeting at 7:55 p.m. Respectfully submitted, Council Member Derek D. Deiter,Chairperson Personnel and Finance Committee Council Member David Varner,Vice-Chairperson Personnel and Finance Committee KCF:kmf Attachments Personnel and Finance Committee Meeting of September 9,2004 Page 8