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HomeMy WebLinkAbout08-07-87 Personnel & Finance Oh,mmtncr Road Y' t PERSONNEL AND FINANCE U!r the Qlrmmon Council of the 014 of Doutli I41eub: The August 7 , 1987 meeting of the Personnel and Finance Committee was called to order by its Chairman, Councilman Beverlie J. Beck, at 1 : 50 p.m. in the Council informal meeting room. Persons in attendance .included : Councilmen Taylor , Beck, Barcome and Puzzello; Michael Vance , Carol Sanders , Eugenia Schwartz, Ted Latkowski, Steve White, John Leszczynski, members of the news media and Kathleen Cekanski-Farrand . Carol Sanders noted that she prepared a revised schedule of meetings listing the specific pages of the proposed budget for the Committee's review (copy attached). Also highlighted was a copy of the August 5 , 1987 letter to Council President Serge briefly outlining an overview of the budget prepared by Michael • Vance (copy attached) . She further indicated that one cent ($ .01) equals forty-three thousand eight hundred dollars ($43 , 800.00) . • Mr. Michael Vance then gave an overview of the budget process. He indicated that Carol Sanders did the majority of the work with regard to the preparation of the proposed budget. He. then reviewed a series of charts with the Committee members, . which charts are as follows: 1988 Revenue Increases : Property taxes $ 1 , 361 , 000. 00 Park fees 65 ,000.00 Pension relief 313 ,000. 00 Intangible and excise taxes 569 , 000.00 Case in lieu of taxes 43 ,000.00 Cash out of balance 458 , 000. 00 Total $ 2 , 809 ,000 .00 Losses : Barrett Law $( 80, 000 . 00 -) Interest i 150,000.00 -) Total $ 230, 000.00 Net Revenue Increase $ 2 , 579, 000.00 Excluding MVH and CCDF Personnel & Finance Minutes/August 7, 1987 Page 2 1988 Increased Expenses 1. Police and Fire Retirement Pay (old) $ 297,000.00 2 . City-Police and Fire Retirement Contribution (new) 200,000.00 3 . Increased Health Insurance Costs 188 ,000.00 4. 1988 Wage Settlements A . Base (salary) (all within tax supported City employees) 220, 000.00 B . Bonus 283,000. 00 5. Additional Benefit Costs A. Police 87 ,000.00 B . Fire 171 ,000.00 C. Other Personnel 388 , 000.00 6 . 200' s and 300' s Accounts (3%) 407 ,000.00 7. Capital Improvements 320,000.00 Total Increases $ 2,561 , 000.00 Mr. Vance indicated that local taxes will raise between $27 million and $28 million dollars for 1988. He also noted that the sick leave buy back program in the Fire Department is working since now there is an average of one (1) firefighter off per day where the average was three (3) firefighters off per day prior to the plan. He also indicated that the City chose not to go to the maximum levy last year. Again this year , only a 5% increase is being requested; however, the increase could go to 6.2%. Councilman Beck noted that this should be stressed since there are many increases which are totally separate and distinct, those being of the school corporation. Councilman Barcome stated that a thirty-two cent ($.32) increase is a lot of money and he further emphasized that he never supported increases when he was the City Controller for four (4) years. The Committee then reviewed each of the individualized budgets which are as follows : MAYOR Page 1 .A.001 - requested 1988 budget $133 , 843 , 000 representing a 2.2% increase. Personnel & Finance Minutes/August 7 , 1987 Page 3 It was noted that the increase is in the salary positions with all other line items remaining the same as in 1987. CONTROLLER Page 1.A.002 - requested 1988 budget $2, 889 , 277 representing a 20% increase over the 1987 budget. Mr. Vance indicated that there is a need for new positions in his department due of the computerization and the addition of the Water Works and the computer aided dispatch system. He indicated that he is requesting the following new positions: one (1) Director E.D.P. for an annual salary of $32 ,500 ; one (1) programmer/analyst for an annual salary of $23 , 400 ; one ( 1) computer operator for an annual salary of $ 17 ,016 ; one (1) personnel specialist for an annual salary of $16,000. He also indicated that the administrative assistant presently budgeted at $28 , 879 was deleted from his budget for 1988. He further indicated elimination of certain positions, namely the account check IV currently budgeted at $15,820. Councilman Puzzello asked for an update with regard to when the computers in the Department of Code Enforcement would be networked with the other departments. Carol Sanders indicated that networking is coming; however, it is not ready and she could not project a specific date when it would be complete. BARRETT LAW Page 1 .A.007 - requested 1988 budget $25 , 916 representing a 1 . 1% increase. It was noted that the overall budget remained the same as 1987 with the only increase being in the salaried positions . DISCOVERY HALL Page 15 .A.001 - requested 1988 budget $206 , 940 representing a 25 .4% decrease . Mr. Vance indicated that the Discovery Hall and the Studebaker collection were being operated by a not-for-profit corporation. The overall budget reflected in line item 399 , Other Contractuals , a decrease from the current amount of $165 ,000 to a proposed amount of $137 ,055 . Personnel & Finance Minutes/August 7 , 1987 Page 4 ART ASSOCIATION Page 1.A.029 - requested 1988 budget of $36 ,000. Mr. Vance indicated that the $36 ,000 per year is a pass through of their rent costs at Century Center. He indicated that the lease would become due in either 1988 or 1989. Councilman Beck stated her belief that a more reasonable sum closer to their actual fair share of incurred costs at the Century Center should be collected. BOARD OF SAFETY Page 1 .A.009 - requested 1988 budget of $10, 200. Mr. Vance indicated that the contractual payments were to pay for the salaries of the three (3) Board members who make up the Board of Safety . YOUTH SERVICES BUREAU Page 1 .A.027 - requested 1988 budget of $50, 000 . Mr. Vance indicated that the City is currently under a contractual agreement with the Youth Services Bureau which is now a not-for-profit agency. The current funding for the Youth Services Bureau is $68, 000 which will be reduced in 1988 to $50 , 000 representing a 26 .4% decrease . PARKING GARAGES Page 14.A.001 - requested 1988 budget of $547 ,362 representing a 2 . 7% increase. Mr. Ted Latkowski then reviewed the parking garage budget. He noted that the last three (3) months were the best in the history of the parking garages. Revenues have increased, but the overall deficit per year is averaging between $150,000-$160,000. Mr. Vance noted that there will be a 7% increase in bond payments in 1988 . CUMULATIVE CAPITAL DEVELOPMENT FUND Page 11 .A . 001 - requested 1988 budget of $187 , 604. Mr. Vance noted that the current eight cents ($.08) will be increased to twelve cents ($. 12) in 1988. This will be used to help budget the Street Department and general improvements . Personnel & Finance Minutes/August 7 , 1987 Page 5 ECONOMIC DEVELOPMENT REVENUE BONDS Page 7.A.001 - requested 1988 budget of $15 , 535 . Mr. Vance indicated that this is the budgeting of the various fees collected which average approximately $15,000 per year. He noted that the amount budgeted is identical to the current calendar year. T.I.F. DEBT SERVICE Page 13.A.001 - requested 1988 budget of $468, 764 representing a 39. 4% increase. Mr. Vance indicated that this account does not have to be in the proposed budget as it is controlled directly by the Redevelopment Commission and not by the Common Council . LIABILITY INSURANCE PREMIUMS Page 4.A.001 - requested 1988 budget of $1 , 344 , 000 representing a 25 . 9% decrease . Mr. Vance indicated that the City is now self insured on most areas , mainly auto and general liability. Eugenia Schwartz noted that two (2) new positions would be created , namely : one ( 1) investigator/adjustor at a proposed annual salary of $21 , 500 ; and one (1 ) secretary IV position proposed at an annual salary of $15,286. She noted that both of these individuals would work directly with Bob Rosenfeld. Mr. Vance indicated that the City became self insured as of the 15th of this year. An individual who has considerable experience in the claims field has been hired in the investor/adjustor position. It was also indicated that , pursuant to State law, the maximum amount of possible liability is $5 million per occurrence. He also indicated that there is a $300, 000 cap per person pursuant to State law. Mr. Vance stated that the parking garages , Century Center , and Coveleski Stadium are not covered by self insurance . PARK DISTRICT BOND Page 9.A.001 - requested 1988 budget of $799 , 800 representing a 5 . 4% decrease. Personnel & Finance Minutes/August 7 , 1987 Page 6 Mr. Vance noted that there are no general obligation bonds currently outstanding and that they were paid off in 1986. The park district bond represents payments on the East Race and the zoo . PARK DISTRICT BOND - COVELESKI STADIUM Page 9.A.002 - requested 1988 budget of $1 , 007 , 708. Mr. Vance noted that the budget sets forth the lease purchase payments which would be due in 1988. The amount budgeted represents the worst possible payment situation under the current lease purchase agreement. He further indicated that the payment could be as low as $800,000 in 1988. He also noted that approximately $200, 000 from cable television revenue and $50,000 from the franchise agreement would be used in paying off the lease purchase agreement. URBAN REDEVELOPMENT BOND Page 10.A.001 - requested 1988 budget of $234, 500 representing a 3.8% decrease. Mr. Vance noted that this amount was to pay off the R-66 debt . CITY ENGINEER Page 1 .A.010 - requested 1988 budget of $299 ,418 representing a 3 . 1% increase. Mr. John Leszczynski , City Engineer, and Mr. Mike Meetz , Director of Engineering , then reviewed the proposed budget for that department. Mr. Leszczynski noted that the overall budget increase represented approximately $9,000 over the current budget. BOARD OF WORKS Page 1 .A.008 - requested 1988 budget of $1,605, 116 representing a 0. 1% decrease. Mr. Leszczynski indicated that the overall budget was approximately $2,000 less than last year. He also noted that electric current was being budgeted at the same amount as last year and that telephone and telegraph was also being budgeted at the same amount for 1988 . STREET DEPARTMENT Page 3.A.001 - requested 1988 budget of $2 , 716 , 674 representing a 5.7% decrease. Personnel & Finance Minutes/August 7 , 1987 Page 7 Mr . Leszczynski noted that the decrease represents approximately $165 ,000 less than the current budget . Councilman Barcome questioned where the monies would be placed due to the savings afforded by salt and overtime considering the mild winter last year. Mr. Leszczynski noted that the salt is currently in the sanitation budget and not within the budget for the street department. Councilman Beck questioned the progress of the alley paving program. Mr. Leszczynski noted that LRSA funds would be used to fund this project for next year. He indicated that high traffic alleys were the only ones being addressed but that holes in other alleys were being filled. Councilman Puzzello asked where the paving is currently going on, and Mr. Leszczynski noted that he is preparing a report for the Council . Councilman Barcome and Councilman Taylor requested that a letter be placed in the file to the next City Engineer that Miami be paved in 1988. Councilman Taylor then questioned how much money was available in uncommitted Revenue Sharing funds for 1988. Mr. Vance noted that approximately $300,000 would be placed into the Street Department account and that this must be done by October of 1987. Mr. Vance further indicated that there will be approxi- mately $240, 000 in Revenue Sharing available to the City next year and $187 ,000 in CCDF funds. Councilman Beck noted that we are now able to do other priority items within the budget process as we were able to get the salaries in line as well as benefits for City employees. Councilman Serge noted that "Mr. Rudy paid for himself" in the way he handled the salary negotiations last year . BUREAU OF TRAFFIC AND LIGHTING Page 1.A.021 - requested 1988 budget of $469 , 839 representing a 2% increase . Mr . Leszczynski noted that the overall budget was approximately the same as the current year, the only difference being the increases for salaries . Personnel & Finance Minutes/August 7 , 1987 Page 8 BUREAU OF BUILDING MAINTENANCE Page 1.A.032 - requested 1988 budget of $496, 764 representing a 126% increase. Mr. Leszczynski noted that $250, 000 was needed to improve the ventilation system at the MSF garage. He further noted that OSHA and the Indiana Department of Health will be closing the garage down if these major repairs to the ventilation system are not made. EQUIPMENT SERVICES Page 1.A.030 - requested 1988 budget of $1 ,481 , 249 representing a 6. 9% decrease. Mr. Leszczynski noted that the vehicle maintenance department is a full service department to all department vehicles . CUMULATIVE CAPITAL IMPROVEMENT FUND Page 12 .A.002 - requested 1988 budget of $558, 000 representing a 13.5% decrease . Mr . Vance noted that the following funds are received : Hotel/Motel taxes - $150,000 (lease agreement) School Corporation - $50 ,000 cigarette taxes - $256 , 000 Councilman Beck noted that the Common Council should be aware of the Century Center's budgeting procedure since the hotel/motel taxes are still involved . Mr. Vance noted that in 1989 , the lease purchase payments for the use of the County-City Building will total $102 , 000. Carol Sanders noted , however, that maintenance costs alone are being budgeted at $205,000 for the City's portion of the County- City Building for 1987 . BUREAU OF COMMUNICATIONS Page 1 .A.024 - requested 1988 budget of $154, 135 representing a 1 . 6% increase. Mr. Vance noted that the overall increase reflected just the salary increases which were approved. Personnel & Finance Minutes/August 7 , 1987 Page 9 MISCELLANEOUS Mr. Vance noted that, in light of the new State law, TRANSPO must deal with a problem of the necessity for increased revenue with decreased ridership. Mr. Leszczynski is the chairman of the finance committee for TRANSPO. If action is to be taken for the South Bend-Mishawaka area, State law would require specific action being taken only by the South Bend Common Council . A majority of the Council members present indicated that before they would take action in this area , they would request a resolution from the Mishawaka Common Council in support of the increase. Councilman Taylor noted that he would also want the Mayor ' s support on this issue. There being no further business to come before the Committee , the meeting was adjourned at 3 : 40 p.m. Respectfully submitted , Councilman Beverlie J. Beck, Chairman Personnel and Finance Committee