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HomeMy WebLinkAbout08-31-95 Personnel & Finance ti COMMITTEE REPORT: PERSONNEL AND FINANCE COMMITTEE TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: The August 31, 1995, meeting of the Personnel and Finance Committee was called to order by its Chairperson, Council Member Steve Luecke at 4:10 p.m. in the Council informal meeting room. Persons in attendance included Council Members Steve Luecke, Roland Kelly, Ann Puzzello, Tom Zakrzewski, and Sean Coleman. Also present were Mayor Joseph E. Kernan, City Controller Kevin Horton, Deputy City Controller Jeff Rinard and citizen member Cathy Roemer. Chairperson Luecke turned the meeting over to Mayor Kernan who advised that the budget review process will be the same as in the past but the substance will be different in that the City will be utilizing a performance based budget format. Mayor Kernan stated that there will be yardsticks in the budget that we have not had in the past. These yardsticks will measure performance as well as quality. He noted that this is the City' s first attempt at this format and the additional information will help make better decisions. Mayor Kernan noted that as in the past, the budget emphasis this year will be on public safety. There will be more revenue than expenditures and there will be significant capital projections. It is the administrations goal to spend money that they know they have as opposed to spending money on projections. He noted that they would rather be conservative than running the risk of spending money they may not have. Mayor Kernan also stated that it is hoped that the City will be able to put money back into the neighborhoods. The Mayor further informed the Committee that the yardsticks that will be utilized need further refinement. Comparisons with other cities of similar sizes will be utilized. The Mayor asked that the Council begin digesting some of the information that will be provided to them and asked for their advise and counsel. Mayor Kernan advised that the City's financial report has, in the past, been recognized for its excellence and it is hoped that it will again be recognized for the fifth year in a row. City Controller Kevin Horton informed the Committee that the 1996 budget will be the worst budget in this new format. The budget will contain performance indicators that may not be used next year. The benchmark will be next year's budget, it will be a benchmark against ourselves and a benchmark against other communities. Mr. Horton indicated that the City may want to look at putting together a benchmarking team. Mr. Horton distributed a booklet entitled "SOSP Leadership Group Meeting. " He mentioned that the SOSP Technical Advisory Committee came up with eighty-eight (88) growth objectives and ten (10) growth objectives are contained in the booklet. He noted that they may change as the committee has not finished its work. The goals include the following: the community's economy, the community's public safety and civility, the community's quality of life, trust in City government, the City's responsiveness, efficiency, and effectiveness, the City' s infrastructure, the City' s financial condition and the City's workforce. Mr. Horton noted that the budget will contain the department's individual growth objectives. Next year they will be more definable. Mr. Horton stated that the budget will include financial policies. Departments will be expected to maintain minimum balances in all funds, each department will submit a surplus budget and the City will not spend last years reserve for capital expenditures. The budget submitted will not contain capital expenditures. In January the Council will be presented with a Capital Improvements Plan that the City would adopt. The administration will look at resources and appropriate capital dollars. In January/February there will be a second appropriation. Reserves from 1995 for expenditures in 1996 will include computer equipment. The City will have to budget reserves. It is hoped to build some discipline into the process. Mr. Horton noted that the policy information is not yet ready and they will ask the Council to review and provide feedback to what is being handed out today. Mr. Jeff Kinard, Deputy City Controller distributed a handout entitled "Section II - Executive Summary Chart" which contains eighty (80) objectives. The priority ranking for these objectives is number one (1) being the highest and three (3) being the lowest. Mr. Rinard also handed out a document entitled "City of South Bend Strategic Plan - A Recognized Model City by the year 2000! - A framework of goals, growth objectives and strategies (draft) . " Mr. Horton noted that these notes are from a brainstorming session that was conducted. Mr. Rinard handed out a "Budget Comparison-Expenditure 1995/1996. " He noted that the budget to be submitted is substantially correct. Capital for cash purchases in the coming year will not be included. Mr. Rinard briefly went over any line item that council members had questions regarding. He noted that there was an increase in the Controller' s budget due to the proposed request for a long range plan or study to be conducted concerning the addition of a MIS Bureau. Mr. Rinard also noted that Project Future has been eliminated from the budget as they will receive funding from the new CEDIT tax. Also, part of the City's dollars to Economic Development will come from CEDIT funds. Mayor Kernan noted that the dollars in the general fund that the EDIT dollars are replacing will be used for capital improvements and the City therefore has gained more latitude with those dollars. It was noted that the City expects to receive approximately $1.4 million dollars in CEDIT revenue. Distributed to members was a tentative agenda for Council budget review. It was noted that there are a number of smaller budgets that are not included in the timeframe. It was agreed that the inclusion of these departments will be discussed on September 5, 1995. It was also noted that because the TACT conference begins on September 17th, that will have to be taken into consideration when it comes to scheduling more budget meetings. There being no further business to come before the Committee, Mr. Luecke announced that the Committee will reconvene at 4:00 p.m. September 5, 1995. The meeting adjourned at 5:20 p.m. Respectfully submitted, Council Member Steve Luecke Chairperson, Personnel and Finance Committee Attachments