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The May 26,2004 meeting of the Personnel and Finance Committee was called to order
by its Chairperson,Council Member Derek D. Dieter at 4:58 p.m. in the Council Informal
Meeting Room.
Persons in attendance included Council Members Dieter,Pfeifer,Kelly,Puzzello,
Varner,Kuspa,Coleman,White and Kirsits;Mayor Stephen Luecke,City Clerk John Voorde,
City Controller Rick 011ett,Community&Economic Development Executive Director Sharon
Kendall,Police Chief Thomas Fautz,representatives of the South Bend Fire Department,Gladys
Kopola,and Kathleen Cekanski-Farrand,Council Attorney.
Council Member Dieter noted that the Committee is composed of Council Members
Kelly,Puzzello,Varner and himself.
Council Member Dieter stated that the first item on the agenda was to review 2nd
Substitute Bill No. 26-04 which would establish a new fund to be called a"Rainy Day Fund,
Fund# 102". He noted that this Bill had its initial presentation at the May 10th Committee
meeting.
City Controller,Rick 011ett,made the presentation. He noted that the 2nd substitute Bill
incorporates many of the items requested by the Council and that its primary purpose is to
receive surplus COIT and CEDTT monies which were being held by the county. Monies in this
fund would go through the same appropriation process. Interest earned on monies in the fund
would remain with the fund. Mr. 011ett noted that since 1985 the city has had sound economic
practices in place including reserve funds in major departments.
Council Member Dieter thanked him for replying to his memorandum requesting
additional information.
Dr. Varner inquired about the reserves which the city currently maintains and asked
where they are reported in the Controller's monthly statement. Mr. 011ett noted that cash
reserves are within the cash balance of the general fund,with those funds acting as a cushion.
Dr. Varner noted that such reserves have no real accounting currently and inquired
whether they could be specifically addressed at month-end,noting that that information would
be helpful. Mr. 011ett noted that that could be done,but that he believes that it would be
misleading.
Mayor Luecke stated that the funds are accounted for during the budget process. He
further noted that he would be against a separate fund since the funds would then have to be
appropriated twice.
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The Council Attorney noted that in light of the concerns raised at the last Committee
meeting in particular by Council Member Pfeifer that she addressed and set forth the Indiana
Code references in a memo to the Council dated May 13,2004.
Following further discussion,Council Member Kelly made a motion, seconded by Dr.
Varner that 2nd Substitute Bill No. 26-04 be recommended favorably to Council. The motion
passed.
Council Member Dieter then called for a presentation on Substitute Bill No. 33-04 which
would amend Section 2-210(a)of Article 18 of Chapter 2 of the South Bend Municipal Code in
order to establish fees for vehicle inspections.
Police Chief Thomas Fautz made the presentation. He noted that the South Bend Police
Department is the only police department in the area that does not charge for vehicle inspections.
He stated that this is a demand on the department resources especially when dealers ask for 10 to
15 cars at a time to have their VIN numbers checked.
The Council Attorney inquired whether there would be a separate ordinance to transfer
the monies currently in the fund to the police training fund. Mayor Luecke stated that that would
take place at a later time.
Following discussion,Dr. Varner made a motion,seconded by Council Member Puzzello
that Substitute Bill No. 33-04 be recommended favorably to Council. The motion passed.
Council Member Dieter then asked for a presentation on Substitute Bill No. 34-04 which
would authorize the Mayor and/or Controller to make temporary loans to meet current running
expenses of various funds in anticipation of and not in excess of current taxes levied in year
2003 and collectable in 2004,and would further authorize the issuance of temporary loan tax
anticipation time warrants to evidence such loans and the sale of such warrants and
appropriating and pledging the taxes to be received in such funds to the payment of such
warrants including any interest.
City Controller Rick 011ett made the presentation. He noted that the substitute bill
includes the dollar amounts. He provided a one-page handout dated March 23, 2004 from
County Auditor Michael C. Eby(copy attached)which notes that the first installment may be
distributed at the end of September, and again in December. Mr. 011ett further noted that the
total amount included in the substitute bill would be if the city had to borrow money through the
end of the year.
Council Member Puzzello stated that the Council will be hearing from constituents in
light of taxes being due in September and again in November.
Personnel and Finance Committee Meeting of May 24,2004 Page 2
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Following further discussion,Dr. Varner made a motion, seconded by Council Member
Kelly that Substitute Bill No. 34-04 be recommended favorably to Council. The motion passed.
Under miscellaneous business, Council Member Kirsits noted that two(2) South Bend
Firefighters did training classes on WMD in April for the police department and have not been
paid. He stated that it is like the Bermuda Triangle to get someone to address why payment has
not been made. The firefighters think they have been abandoned by the city.
Chief Fautz stated that he would look into this.
Council Member Dieter inquired about the status of the police beat restructuring. Chief
Fautz noted that it would be in less than three months.
Mayor Luecke noted that the City Administration have prepared comments with regard to
Bill 32-04 addressing various budgeting and reporting matters which they would like to share
with the Council.
Dr. Varner stated that a joint committee meeting will be held on Wednesday,June 2nd at
4 pm of the Personnel and Finance Committee and the Public Works and Property Vacation
Committee.
It was also noted that Ron Glon's mother passed away.
There being no further business to come before the Committee,Council Member Dieter
adjourned the meeting at 5:20 p.m.
Respectfully submitted,
Council Member Derek D. Dieter,Chairperson
Personnel and Finance Committee
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Attachments
Personnel and Finance Committee Meeting of May 24,2004 Page 3