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HomeMy WebLinkAbout10-05-88 Personnel & Finance and Residential Neighborhood Qtnmmttttt Report JOINT COMMITTEE OF THE PERSONNEL AND FINANCE AND RESIDENTIAL NEIGHBORHOOD COMMITTEES Wu the Mom= Qinnnctl of ire Olt* of Stud: The October 5, 1988 Joint Committee of the Personnel and Finance and Residential Neighborhood Committees, was called to order by Residential Neighborhood Committees Chairman Councilman Loretta Duda at 4:00 p.m. in the Council informal meeting room. Persons in attendance included Councilmen Luecke, Niezgodski, Soderberg, Puzzello, Slavinskas, Zakrzewski, Coleman, Duda, and Voorde; John Leisenring, James Wensits, Richard Miller, Max Moore, Tom Doyle, members of the public, members of the news media, and Kathleen Cekanski-Farrand. Councilman Duda noted that the purpose of ,the meeting was to continue to discussion regarding Bill No. 82-88 which would create a non-reverting maintenance fund. Councilman Lee Slavinskas then passed out a Substitute Version of Bill No. 82-88 - Version 1 (copy attached) . He then highlighted the basic changes from the original version namely that a maximum of $20,000.00 would be placed in the fund each year by July 1st, that the fund would accumulate to a maximum of $100, 000. 00 with all interest earned thereafter being placed in the General Fund, that the monies would be used to fund short or long term external maintenance needs and could be loaned to restore non- essential amentities when houses under the acquisition of existing housing program are sold, and that such expenditures or loans must be approved by appropriate Ordinance of the Common Council. Councilman Slavinskas then reviewed a chart with the Committees explaining the reasoning behind the non-reverting housing maintenance fund concept. The chart basically showed the following: 1st year $20,000 4th year $ '20, 000 Carry-over balance $20, 000 Carry-over balance $ 64, 298 2d year $20,000 Interest $ 4,500 Interest $ 1,400 $ 88,798 $41,400 3rd year $20,000 5th year $ 4,987 Carry-over balance $41,400 Carry-over balance $ 88,798 Interest $ 2,898 Interest $ 6,215 $64,298 $100, 000 6th year $100, 000 Interest $ 7, 000 (to General Fund) Joint Committee of the Personnel and Finance Residential Neighborhood Committees 10-5-88 Page 2 Councilman Slavinskas noted that based on current statistics, between $18,000 and $20,000 per year would still be going to the General Fund at the City of South Bend from payments made in lieu of taxes by the South Bend Housing Authority. In a response to Councilman Voorde, Councilman Slavinskas noted that payments by the South Bend Housing Authority had been slow in the past but currently they are paid up to date. The Council Attorney was called upon to explain whether the South Bend Housing Authority is required to make such payments. She cited the state law namely Indiana Code Section 36-7-18-25 (copy attached) which provides that a Housing Authority is exempt from all taxes and special assessments, however, in lieu of taxes or special assessments, an authority may agree to make payments to any political subdivision for services. Mr. John Leisenring noted that that was current and that the City is currently looking for the written agreement between the City and the South Bend Housing Authority. He noted that his department does not have such an agreement, however, the Legal Department is researching and looking for such a copy. He also noted that September 30 is the end of the fiscal year for the South Bend Housing Authority. Councilman Duda noted that she had contacted the County Auditor, Beverly Crone, and had requested copies of payments made by the South Bend Housing Authority. She noted that payments had been made directly to the County until 1984. She stated that Mishawaka Housing Authority pays directly to the County but in the City of South Bend's situation, payments since 1984 had been paid directly to the City of South Bend. She also stated that she would like to know how such payments are calculated in amount. In a response to a questions raised by Councilman Soderberg, it was noted that the South Bend Housing Authority had not paid for several years, however, it had made a lump sum payment for those years and is current. It was also noted that services include police, fire, streets, etc. Councilman Puzzello stated that in the Fourth District there are several scattered site homes. She stated that she believes that such an account, if established, should address all such rental units since they are all important and not just those which are a part of the "acquisition of existing housing program". She reemphasized that Mayor Kernan had promised that such homes would not fall into disrepair and that his promise alone should be sufficient. She stated that she resents that 50 homes are more important than others. Joint Committee of the Personnel and Finance Residential Neighborhood Committees 10-5-88 Page 3 Councilman Duda stated that she believes that the fund approach is reasonable at this time. Councilman Niezgodski stated that he believes that the City Council would be jumping the gun if they would establish such a fund. He noted that 64% of public housing is located in the second district. He noted that he has 537 units within his district. He stated that he believed that other services are in need of such monies as oppossed to putting it into a non-reverting fund. John Leisenring stated that the anticpated amount was credited to the miscellaneous revenue for the 1989 budget and would be used as part of the cash balance. If such a fund would be created it would reduce the cash reserve for the General Fund. Councilman Soderberg questioned whether the language in Section 2-169 (c) could be amended to expand the units which would be qualified for such assistance. He was advised that this could be done. Councilman Coleman stated that he believes that the Council should try to reach a concensus. He questioned whether a sunset provision could be incorporated into the Bill. He noted that maintenance typically runs 3% and that he would see the City of South Bend being the "fourth line of defense" in such maintenance areas. He stated that the City should be prepared to give "security", however, he believed that a cap on the dollars with regard to replenishment should also be discussed as well as the sunset provision. Councilman Niezgodski stated that he would like to know how much money or percentage is required for maintenance each year by the South Bend Housing Authority. The Council Attorney stated that she would contact Mr. Timothy Hartzer for the South Bend Housing Authority with regard to this question. Councilman Luecke stated that he believed that the establishment of such a fund would not make other units less important. He stated that this would be one means to assist the program in order for it to be successful. He saw it as an "insurance policy" as Councilman Voorde had suggested in a previous meeting. Councilman Duda stated that she believed the committee's should work toward finding out whether there was a consensus at this time. Following discussion it was noted that Councilman Niezgodski was not a member of either committee and therefore could not vote on any motions. Following discussions Councilman Soderberg made a motion seconded by Joint Committee of the Personnel and Finance Residential Neighborhood Committees 10-5-88 Page 4 Councilman Luecke that the committees recommend that a non- reverting housing maintenance fund be established. Before vote on the motion, Councilman Voorde stated that he did not believe that any fund should be established whatsoever. He stated that the word and the intent of the Council as well as the Mayor should be enough. Councilman Duda questioned Councilman Zakrzewski and he indicated that 23 of 28 homes in the sixth district are currently boarded up. Mr. Thomas Doyle a resident on York Road was concerned about the project. He referenced the press conference where several council members were present along with the Mayor. He stated that non-essential amentities are a point of concern as well as the effect on surrounding homes. He voiced favorable comments with regard to the creation of a non-reverting fund. A resident from 1918 E. Ewing questioned how many council members would be oppossed to such a creation if a scattered site home would be in their neighborhood. He voiced favorable comments with regard to the creation of a non-reverting fund. Councilman Niezgodski stated that he is not against making the funds available but would be against the creation of a non-reverting fund. Councilman Puzzello stated that she has not had a complaint in five years from scattered site homes in the fourth district. Following further discussion, the committees then voted 5-2 in favor of the creation of a non-reverting fund. Councilman Voorde and Councilman Puzzello were in the minority and Councilman Zakrzewski abstained from the vote. Following further discussion, Councilman Voorde made a motion seconded by Councilman Puzzello that Bill No. 82-88 be continued until the Council meeting of October 24, 1988. The motion passed. Councilman Coleman then made a motion seconded by Councilman Luecke that the Personnal and Finance Committee meeting be adjourned. The Personnal and Finance Committee meeting was adjourned at 5:20 p.m. The Residential Neighborhood Committee then continued in session and heard Mr. Richard Miller state that he and other concerned members of the community are continuing there campaign against leaf burning. He wore a "ban the burn" t- shirt and stated that there goal is to raise at least $33, 000 to buy one piece of equipment to assist in leaf pick-up. He stated that this was a "us" issue and not a "me Joint Committee of the Personnel and Finance Residential Neighborhood Committees 10-5-88 Page 5 vs. them" issue. He specifically requested the help of Councilman Puzzello in this fight. It was suggested that at the next joint committee meeting where the creation of a non-reverting housing maintenance fund would be discussed that Mr. Timothy Hartzer or a representative of the South Bend Housing Authority be invited to attend. Following further discussion by the committee members the meeting of the Residential Neighborhood Committee was adjourned at 5: 30 p.m. Respectfully submitted, Council Member Ann Puzzello, Chair Person Personnel and Finance Committee Councilman Loretta Duda, Chairman Residential Neighborhood Committee AP:srk Attachments