HomeMy WebLinkAbout08-31-04 Personnel & Finance 1
?omnaitLEE Ab-O'Lt of iI n p j �7 n (�
!P oYznEL and 9inane£ eomtnitt of t12z South End common (:ouneiL
The August 31, 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,Kelly,Kuspa,Coleman
and Pfeifer;Mayor Stephen J. Luecke,Frederick B. 011ett III,Director of Budgeting &Financial
Reporting Tom Skarbek, Assistant to the Mayor Federico Thon, Community & Economic
Development Executive Director Sharon Kendall, Director of the Division of Economic
Development Don Inks, Director of Financial & Program Management Beth Leonard, Director
of Community Development Pam Meyer, City Clerk John Voorde and Kathleen
Cekanski-Farrand,Council Attorney.
Dr. Varner welcomed everyone to the Committee meeting and noted that the Committee
is composed of Council Members Kelly,Puzzello,Varner and himself. He further noted that the
Chairperson Council Member Derek Dieter will be late for the meeting, and that Council
Member Charlotte D. Pfeifer is on her way to the meeting.
Parking Garages (Fund#601) 2005 Revenue: $777,054 2005 Expenditures: $567,284.
Director of the Division of Economic Development Don Inks made the presentation. He
provided a one-page summary addressing the Parking Garage Budgets detailing information on
its description, revenues, expenditures and comments (copy attached) which he then
summarized. He also noted that AMPCO is also providing security services in addition to
running the garages at Main Street,Colfax Avenue, and the Leighton Plaza garage.
Council President White inquired about the parking needs in the downtown. Mr. Inks
stated that the city attempts to provide on-street parking every where it is possible. Parking in
the downtown is in tight supply, and that existing parking will not be enough to address the
demand.
In response to a question from Dr. Varner, Mr. Inks stated that the account balance for
the Jefferson and Colfax garages was paid off in 2003.
Community&Economic Development (Fund#212)
2005 Revenue: $2,783,490 2005 Expenditures: $2,752,666
Executive Director Sharon Kendall thanked the Council for this opportunity to provide
background information and an overview of the department as it relates to the proposed budget.
She noted that she has been in charge of the Department, four (4) months tomorrow. She then
provided copies of the brochure on City Plan entitled "Envision South Bend 2025" and a
spiral-bound brochure entitled "Department of Community & Economic Development Budget
Presentation" (copy attached). Ms. Kendall noted that you cannot separate community from
economic development because the quality of life is dependent on both. There is a challenge of
Personnel and Finance Committee Meeting of August 31, ,2004 Page 1
eornmit t z eRE,20''Lt of LizE [� /� ( n n (�
E'L�OnIZEL and inanaE eOmmittEE of LI �OutI BEn C.�0mozon (..�OLtYLG*LL
having the administrative offices in this building and the community development staff across
the street, which she hopes to address "down the road but not in 2005". She stressed the need
for interaction which includes identification of the needs of the city, develop an evaluation plan,
leverage monies, redevelop areas, market, create jobs, enhance neighborhoods, address
educational needs, and be able to adapt efforts to changing demands. One must plan and
execute.
She noted the positive elements of business retreats, noting that programs should be
expanded and partnerships should be enhanced with the Chamber and Project Future. Each staff
member is being evaluated. She plans to have increased training and cross-training; more
outreach, etc. City Plan is close completing the analysis phase. There is now an emphasis of
returning the investment of money,time and staff to the community; as well as determining how
and where the city can be more effective.
A program performance-based budget utilizes a cost/benefit analysis and proper
accounting. One of their goals is levering more dollars in the next three (3)years. They are also
evaluating the tax abatement program which will include reviewing fees and the actual costs
related to them. Efficiencies will be questioned and reorganization will take place where
deemed needed. Ms. Kendall noted that this city provides numerous services which are not
provided by other cities.
Ms. Kendall noted that overall the proposed budget reflects a 4.7% increase. She noted
that the department will experience a loss of $20,000 of state funds and a loss of$50,000 in
CDBG funds. A review of the personnel changes was then made.
Council Member Kelly inquired whether the city is paying enough, noting that there have
been several people leaving in the past six(6)months. Ms. Kendall stated that this area is tough,
even at the state level. She noted that organizations are often flat. She suggested that the city
needs to look at working more closely with businesses.
She suggested that "we need to do better" in housing, distribution, information
technologies and life sciences for example. Advanced manufacturing is using new processes and
technology. Ms. Kendall stated that Warsaw is just one(1)hour away and suggested that the city
partner with them as well as develop better relations with the University of Notre Dame.
Agri-Sciences and the use of agricultural products is also an area of interest.
Council Member Kelly then inquired about the city's tax abatement program, noting that
a considerable amount of time was spent by the Council and Administration in developing the
current regulations.
Ms. Kendall stated that we must use this tool wisely and evaluate the kind of return
which the city is receiving. She stated that she believes it is a balanced system at this point.
Personnel and Finance Committee Meeting of August 31,,2004 Page 2
C.ornmitt,E cRE/2ott of ti2,E/j p
Ets.onnif and 9i zane (.;OnZh2GttEE of tI .,and C,.:.Ommon eouna'LL
Having the claw-back provisions in the ordinance sends a message that there is an evaluation
system in place.
Council President White then asked Ms. Kendall to name her top priorities for 2005.
Ms. Kendall stated that the first priority is to retain a good staff and pursue salary
increases, more training& education, and pursue more monies for conference experiences since
turnover is costly. Her second priority is to implement better coordination of community &
economic development. This includes being mindful of confidentiality but letting partners know
about information once the confidentiality concerns have been addressed. The third priority is
the internal project management system which has been developed by Cheryl Phipps.
Council Member Pfeifer inquired about the policies addressing consultants. In particular
she inquired whether the city was getting a return for their investment; what are the goals
expected of consultants and does the city know in advance what they are getting.
Ms. Kendall stated that consultants are a "necessary evil", and that they are able to step
back and look at a picture. They provide an opportunity to learn about different perspectives and
methods. She noted that there may be times where the city does not see the return for years to
come. Consultants also provide areas of expertise which the department may not have. She
added that the project management report will assist in monitoring. Ms. Kendall stated that she
is able to recognize when a consultant attempts to use a cookie cutter approach.
Don Inks added that often a clear scope of services are provided by a consultant which
may only be needed for a six(6) week period. He stated that consultants are not paid until their
department is satisfied.
Council Member Pfeifer stated that she likes the emphasis on training and education
which is being proposed since she believes this is essential.
Ms. Kendall then pointed out the remaining materials in her handout which contained the
South Bend Development Area map, the CD Neighborhoods map, and the Urban Enterprise
Zone map. A listing of grants, their projects, their current status and date of submittal/approval
were also included.
Dr. Varner stated that he likes the proposed approach of working more closely with
existing business and focusing on their home bases which are in South Bend.
There were no questions or formal presentation on Account# 101-1001.
Personnel and Finance Committee Meeting of August 31,,2004 Page 3
eO►r21YLGtfEE cRe,faott of 4 p
E'L�OnnEL and 9i ianaE C.?Om ittEE of tiZE BEnci eommon Council
Redevelopment Commission-Studebaker Bond (Fund#310)
2005 Revenue: $706,789 2005 Expenditures: $667,346
It was noted that the bond will be paid off in 2006.
Redevelopment Commission-Football Hall of Fame Bond (Fund#310)
2005 Revenue: $1,511,065 2005 Expenditures:. $1,405.900
It was noted that the bond will be paid off in 2018.
College Football Hall of Fame (Fund#377)
2005 Revenue: $829,320 2005 Expenditures: $831,425
It was noted that hotel/motel tax revenue of $474,820 and Professional Sports Development
Fund Receipts of $350,000 basically transfer through this account and pay the CFI-IF debt
service.
Dr. Varner noted that he and Council Member Deiter have a series of questions in this
area and would like to have another meeting where they would be addressed. Dr. Varner
suggested that such a meeting be held on September 9, 2004 following the end of the scheduled
budget hearings.
Council President White suggested that the primary questions be set forth in a letter and
sent to the Administration.
There being no further business to come before the Committee,Dr. Varner adjourned the
Committee meeting at 6:57 p.m.
Respectfully submitted,
Council Member David Varner,Vice-Chairperson
Personnel and Finance Committee
KCF:kmf
Attachments
Personnel and Finance Committee Meeting of August 31, 2004 Page 3