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HomeMy WebLinkAbout02-18-82 Personnel & Finance atnnunttt r itrpnrf coJn the (gammon aiounr1l of tilt (fittg of Onu#ft wrnd: PERSONNEL AND FINANCE COMMITTEE The February 18, 1982 meeting of the Personnel and Finance Committee was called to order by its Chairman, Councilman Beverly D. Crone at 2 : 00 p .m. in the Council meeting room. . Persons in attendance included Councilmen: Voorde, Crone, McGann and Szymkowiak, John Leszczynski, Joe Kernan, Paula Freeman and Kathleen Cekanski-Farrand. The purpose of the meeting was to review four Bills referred to the Committee at the last Common Council meeting. City Controller Kernan then highlighted Bill 13-82 . This Bill would appropriate $808, 549.00 from the Water Works General Fund to various other line-item accounts . Mr . Kernan explained that the purpose of the Bill was to restore all the accounts to the budget amounts which were passed by the Council last fall . He noted that when the entire budget book was presented to the Tax Commissioners , they cut back $808, 549 .00 from the Water Works budgets even though they had no legal authority to do so . He further noted that the deficit amount should become smaller beginning with the month end report for February. He further noted that the deficit showing for several of the corporation general accounts were due to delinquent taxes and thus 1982 monies would have to be used to pay 1981 bills . He speculated that approximately $200 , 000 . 00 was delinquent in the General Fund, and $300 , 000 . 00 overall. Mr. Kernan then reviewed Bill No 16-82 which is an Ordinance transferring $1*, 472 .47 from the Redevelopment District Fund to the Urban Redevelopment Bond Redemption Fund. He stated that property tax benefits are received from the Treasurer on June 30th and December 30th, plus upon written request can be disbursed weekly so long as the amount is not exceeding 95% of total monies received. Following further discussion by the Committee Councilman McGann made a motion to recommend bills 13-83 and 16-82 favorably to the Council . Councilman Voorde seconded the motion. It carried 3-0 . Mr. Kernan reviewed Bill 15-82 which would appropriate $75 , 666 . 00 from the accumulative Improvement Fund for other materials . He mentioned that the State Board of Tax Commissioners cut this account $75 , 666 . 00 ; however they did not take into account the fact that $200,000 . 00 would be received in revenues from the School Corporation representing bond payments on Century Center, and revenue from St. Joseph County. Following further discussion Councilman McGann made a motion to recommend the bill favorably, seconded by Councilman Voorde. The motion passed 3-0 . ►w[[ ►w[[[ .PU LI[HIH6 CO. Councilman McGann questioned the balance in Account No. 88 for the E.M. S . He thought it was relatively low. Mr. Kernan said he would check into the matter and report back. The Council then reviewed Bill 18-82 which would combine the Parking Meter Fund with the Parking Garage Fund. Mr.Kernan stated that $arking fines go into the Parking Meter Fund; and thatin 1981 89, 723. 00 was collected in parking ticket fines . The Parking Garage Fund receives fees from city flat lots , garages , Century Center. contractual fees and miscellaneous revenue such as that received from the largest garage sale. The Parking Garage Fund pays salaries and utilities , and revenues did increase over 1980.Mr. Kernan passed out a hand out (attached) on the lease payment arrangement . The Parking Meter Fund is primarily used for the operation of the gargars , flat lots , and payment of the bonds . Councilman Crone questioned whether the combining of these two accounts would eliminate the flexibility of the use of such funds as set forth in Municipal Code Section 20-58. Mr. Kernan believed that it would cut back on the flexibility, and that he merely submitted the bill for housekeeping purposes . Councilman Crone was relucant to combine the funds . Following discussion by the Committee Councilman McGann made a motion seconded by Councilman Szymkowiak that the bill be amended to allow transferance of $120,446. 89 only. He noted that by such a transfer the account would balance at the end of the year and that the two funds would remain separate. The Committee voted 4-0 in favor of the motion. Mr. Kernan was directed to prepare a substitute bill incorporating this amendment . Councilman Szymkowiak questioned the E.M. S . account. He noted that one full-time employee had been used for the sole purpose of collection. However, recently she had been assigned to do typing for the Fire Chief and thus was not giving the collection work her full attention. Councilman Szymkowiak suggested that she be returned to full time collection duties rather than employing a collection agency to do such work. Mr. Kernan stated that he would look into the matter and report back. Councilman Voorde made a motion to adjourn seconded by Councilman Szymkowiak. Meeting was adjourned at 3: 40 p.m. Respectfully Submitted, Beverly D. Crone, Chairman LEASE AGREEMENT BETWEEN THE CITY OF SOUTH BEND AND PARKING FACILITIES OF SOUTH BEND, INC. In connection with the refinancing of bonds, the City of South Bend (City) sold the parking garage facilities as of June 1, 1978 to Parking Facilities of South Bend, Inc. , an Indiana not-for-profit corporation, (Corporation) and entered into an agreement to lease the facilities back. The lease runs through November, 2007 , at which time the outstanding bonds will be completely satisfied and the title will revert back to the City by gift of the Corporation. Throughout the term of the lease the City will have exclusive possession and control and will be responsible for maintaining and operating the parking facilities . The debt outstanding in the Corporation as of December 31, 1980 consists of two 1978 series and the original 1969 series . The 1978 series proceeds are invested in trust and will fully pay principal and interest on the Series 1969 Project bonds with a balance of $3, 100, 000 at December 31, 1980. 1978 series special obligation bonds outstanding of $750, 000 will be paid from trust investment interest earnings . The other 1978 series with a balance of $3 , 630, 000 will be serviced by the lease payments . The lease requires monthly rent payments to the trustee, St. Joseph Bank and Trust Company, for the account of the Corporation sufficient to service the 1978 series debt described above. The Trustee has projected that the City will be required to make payments in future years as follows : Annual Year Payment 1981 $ 217 ,456 1982 231, 563 1983 237 , 734 1984 238, 556 1985 241 , 595 1986 242 , 591 1987 - 1991 1 , 257 , 689 1992 - 1996 1 ,404, 815 1997 - 2001 1, 632, 296 2002 - 2007 None The payment schedule will be reviewed annually by the trustee and revised, if necessary.