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HomeMy WebLinkAbout03-02-81 Personnel & Finance Oi itmndfn anion gII tip ontin un QIotuu 1 of thr ettg Df Duufl s,nd: Personnel and Finance Committee The March 2, 1981 meeting of the Personnel and Finance Committee was called to order at 5:25 p.m. by its Chariman, Councilman Crone in the Council meeting room. Persons in attendance included: Councilmen Serge, Szymkowiak, Kopczynski, Dombrowski, Crone, Beck and McGann; City Controller Joseph Kernan, Fire Chief Tim Brassell, Marchmont Kovas of the Tribune, and Kathleen Cekanski-Farrand, Council Attorney. , The purpose of the meeting was to discuss Bill No. 16-81 which the • Common Council sent to Committee for review and recommendation. Councilman Crone then passed out a revised version which she had the Council Attorney prepare. Councilman Crone reviewed the purposes of the dedicated fund. She stressed that since no funds have been set aside to begin a systematic replacement of fire department vehicles and needed building repairs, that now may be the best time to do so. Councilman McGann then reviewed the proposed user fee schedule. He calcaulated that at 3500 billable runs per year, at a 65% collection rate, would result in $144, 000 per year in the fund. He believed that the fees proposed would reflect approximately 20% of the direct cost. Councilman McGann emphasized the need to reduce the "down time" , and believed that by establishing a dedicated fund the Council would be '!forcing the issue" to establish a standardized vehicle replacement program in the Fire Department. Councilman McGann noted that itemized rates rather than a flat rate were recommended since Medicare and Medicaid standards require itemized rates in the approved categories. He speculated that the average bill would total $68. 75 representing: .$55. 00 base fee; 3 miles at $1. 25 for a total of $3. 75; and $10. 00 emergency fee. Presently Medicare/Medicaid will pay $50. 00 on the base fee; $1. 00 per mile; $10. 00 for the emergency fee; and $10. 00 for the oxygen fee. These amounts will be adjusted in July of 1981. Councilman McGann noted that the private ambulance companies were between 10 to 14% higher in their fees. Councilman Kopczynski questioned whether the subscription method had been considered. • Councilman McGann responded by stating that such a method was primarily used in smaller estern cities; but that the costs • FR[[ FRp[ PUILI[NINO CO. 11 would outweigh the gains in a city the size of South Bend. City Controller Joseph Kernan stated that he was in agreement with the concept of a dedicated fund, however in light of the property tax freeze he desired more flexibility as to the use of such moves. He noted that $50, 000 had been included in this year' s budget as miscellaneous revenue. Therefore he preferred that if a dedicated fund would be created that it begin on January 1, 1981, in light of the budgeted miscellaneous revenue. Councilman Crone stated that her Committee was already reviewing the user fees and license fees, and noted that many have not been adjusted since 1962. Some of the loss could be gained by these rates being adjusted. Councilman McGann suggested that the dedicated fund be started on September 1, 1981, thereby giving the Administration the fees collected from April 1st through August 31st at the higher rates. Councilman McGann reinterated that the Council sees an "urgent need" to replace $600, 000 worth of fire equipment, therfore the importance of creating such a dedicated fund to address such a need cannot be underestimated. Councilman McGann noted that he saw the creation of a dedicated fund in the Fire Department as Phase I in the area of Fiscal responsibility.He saw:. Phase II as being the realistic adjustment of other City user fees and licenses. Council Szymkowiak summarized that the Council was putting "half a loaf where it belongs. " Councilman McGann made a motion to recommend favorably the substitute bill as amended to the Council. Councilman Szymkowiak seconded the motion. The motion passed unaminously. Councilman Crone requested the Council Attorney to prepare the necessary amendments so that she and the City Controller could review them later in the week. Councilman McGann made a motion to adjourn the meeting, seconded by Councilman Szymkowiak. The meeting was adjourned at 6 :20 p.m. Respectfully submitted, Beverly D. Crone Chairman