HomeMy WebLinkAbout03-22-04 Personnel & Finance South Bend Common Council Personnel and Finance Committee
Minutes from Meeting of March 22,2004
The March 22,2004 meeting of the Common Council's Personnel and Finance.Committee
was called to order by its Chairperson, Council Member Derek Dieter, at 3:55 p.m. in the Council
Informal Meeting Room.
Persons in attendance included Council Members Dieter, Pfeifer, Kelly, Puzzello,Varner,
Kuspa, Coleman, Kirsits and White. Among those also present were Bill Carleton (Parks and
Recreation Department), Mayor Stephen J. Luecke, City Clerk John Voorde, Jim.Frick (South
Gateway Association),Terry Bland(South Bend Tribune),and Aladean M.DeRose substituting for
Kathleen Cekanski-Farrand, Council Attorney.
A full quorum of the Committee existed in that all members were present,namely Council
Members Dieter, Varner,Kelly, and Puzzello.
A. Bill.No. 16-04 - Amendment of South. Bend,Municipal Code to Increase
Insurance Requirements for an Arborist License
Parks and Recreation Fiscal Officer,Bill Carleton,made the presentation to the Committee
regarding this Bill. He stated that the current public liability insurance limits for an arborist are
$25,000 per person,$50,000 per accident and$5,000 for property damage,none of which have kept
pace with inflation or with the usual and customary liability rates for similar activity. The amended
ordinance will increase an arborist's insurance rates to$100,000 for property damage;$300,000 for
bodily injury including death; and $1,000,000 maximum per occurrence. This is consistent with
insurance policy limits for similar risks.
Committee Chair Dieter asked about the customary insurance rates for such coverage and
whether it would be cost prohibitive for many applicants. Mr.Carleton stated that most applicants
(95%)carried policy limits equal to the new proposed rates and that one accident could result in a
$1,000,000 loss. A discussion ensued as to whether the City itself would be exposed to claims if the
arborist insurance was insufficient. Aladean DeRose stated that the City could well be exposed to
liability claims if injury was caused by an arborist selected by the City, i.e. if a tree or limb being
trimmed struck an individual. Board Member Varner suggested that the ordinance be amended to
include a duty by the arborist to notify the Controller in the event the arborist's insurance provider
changed or if the arborist's policy limits changed during the period of license. Council Member
Varner stated that it would be unfortunate for an arborist to be licensed and have insurance coverage
at the time the license is issued,but for that coverage to be dropped or altered later during the year
of licensing.
Because the new ordinance shall not take effect until December 31,2004,it was moved and
seconded that Bill No. 16-04 be amended per Council Member Varner's suggestion and that it be
heard at the Council's meeting on April 12, 2004. The Committee voted unanimously to approve
this motion.
B. Bill No 04-37 To Increase the Percentage Credit Allowed for Homesteads in
St. Joseph County.
Mayor Stephen Luecke made the presentation to the Committee and stated that through this
Resolution the Common Council would cast all of the City's votes on the St. Joseph County Tax
Council in favor of increasing the Homestead Property Tax Credit in St. Joseph County. Mayor
Luecke explained that the previous maximum amount permitted by law was 8%but due to changes
in the formula for calculation,the effective rate dropped to about 5%. The ordinance proposed by
the St. Joseph County Tax Council moved the exemption tax credit back to an effective rate of 8%.
The cost to the City in terms of loss of local tax dollars is about$1,000,000, but it will have the
effect of decreasing by about 61/2%the property tax of individual homeowners on their total tax bill.
The Mayor cited some examples as follows:
A home valued at$150,000 would save the homeowner about$215/year in property tax;
A home valued at$113;000 would save the homeowner about$144/year in property tax;
A home valued at$63,000 would save the homeowner about$48/year in property tax; and
A home valued at$50,000 would save the homeowner about$23/year in property tax.
The revised rate would be automatic for anyone presently receiving homestead credit.
Council Member Coleman asked when the new rates would take effect and the Mayor replied
that it would be for 2004 taxes payable in 2005. Council Member Coleman also indicated that
landlords will probably be present to voice their concern that this Bill does not offer any tax relief
to them. The Mayor confirmed that an increase of the homestead tax credit would not affect
landlords. However,their taxes will not be increased as a result ofhomestead credit to homeowners.
Council Member Coleman asked whether anything was being done to give property tax relief to
landlords. The Mayor responded that the Administration is reviewing other tools for tax relief
There is a rehabilitation tax abatement that does not require Council approval and this is something
which might be of interest or help to landlords. Council Member White suggested that the Mayor
address the issue of landlord tax relief at the time of his evening presentation to the Common
Council.
City.Clerk John Voorde asked whether the Administration knows whether tax bills to
homeowners who have appealed reassessment will be issued by the May 10, 2004 deadline. The
Mayor stated that he had no firsthand knowledge,but doubted that the deadline would be met.
Committee Member Varner moved to send Bill No.04-37 to the full Council with a favorable
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recommendation. The motion was seconded by Board Member Puzzello and approved unanimously
by the Committee.
C. Miscellaneous Matters
In reference to the Council's resolution commending Chief Taylor for his service, Council
Member Varner asked whether the City has any written policy in of sabbatical leave. Mayor
Luecke responded that state statute covers the grant of sabbatical leave and requires that most
sabbaticals be approved by the Board of Safety. However,the Fire Department Chiefs request for
sabbatical leave must be approved by the Mayor. Member Varner questioned whether the leave
involved compensation. The Mayor responded that Chief Taylor's leave is not compensated but that
Chief Taylor can remain within the City medical plan conditioned upon payment of rate premiums
and he can remain in the pension fund provided he pays his PERT premiums.
There being no further business to come before the Committee,the meeting was adjourned
at 4:12 p.m.
Respectfully submitted,
Council Member Derek Dieter, Chairperson
Personnel and Finance Committee
AMD/cw
Attachments
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