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HomeMy WebLinkAbout08-30-99 Personnel & Finance • eMititt tt4 tVA Personnel and Finance Committee So die tonittitat (UMW of tie tit3 of it uth WO: The August 30, 1999 meeting of the Personnel and Finance Committee was called to order by Council Member James Aranowski at 3:10 p.m. in the Council informal meeting room. Persons in attendance included Council Members: Coleman, Ujdak, Varner, Aranowski, Kelly, and King; Mayor Stephen Luecke, Cathy Roemer, Tom Skarbek, Acting Police Chief Brent R. Hemmerlein, Division Chief Richard R. Kilgore, Fiscal Officer Don Pinckert,Terry Bland,and Kathleen Cekanski-Farrand. Council Member Aranowski welcomed everyone to the beginning session of the review of the City of South Bend 2000 Operating Budget. He recommended that the Committee follow the committee meeting schedule as much as possible. Tom Skarbek provided copies of the one-page handout entitled "Citywide Goals and Objectives"to the Council Members present. Council Member Aranowski welcomed Mayor Luecke to provide a city-wide overview of the 2000 Operating Budget. General Fund 2000 Anticipated Revenue: $ 49,607,243 2000 Operating Budget $ 49,076,129 2000 Operating Surplus $ 531,114 All Funds 2000 Anticipated Revenue: $130,766,378 2000 Operating Budget $119,066,421 2000 Operating Surplus $ 11,699,957 Mayor Luecke thanked Cathy Roemer, City Controller, Tom Skarbek and all of the department heads for preparing a positive budget for the Council to review. The proposed budget is balanced and provides a surplus. He noted that the general guidelines provided to the departments included that no supply line-items would be increased and that other service line-items would be capped an a 2%increase or below. Mayor Luecke noted that the proposed budget addresses all operating and debt service expenses, with new capital requests being addressed in February of 2000. The budget assumes the maximum allowable 5 % increase in property tax revenue. He noted that the state has provided information which indicates that COIT would decrease, but that EDIT would remain the same. Mayor Luecke then noted various items from the "2000 Budget-Significant Issues/Highlights"pages of the budget book, including but not limited to special challenges presented by the police and fire pension funds and self-insurance. Proposed increase in personnel would affect Code Enforcement, Animal Control, Streets, Zoo, Moms Performing Arts Center and two(2)new positions in GIS. • • -"s Personnel and Finance Committee August 30, 1999 Page 2 Mayor Luecke noted that the proposed budgeted revenue is in excess of the operating expenses for a total of $ 11.7 million representing an increase of $ 1.2 million from the 1999 operating budget. Five (5) funds will not be balanced and include: MVHlStreets, Human Rights-HUD, Police and Fire Pension Funds, and Project Releaf. The Parking Garage fund also will not have sufficient cash balances to absorb the project deficiency. He also noted that an additional $ 150,000 over the current monies will be proposed for the Football Hall of Fame. The City will continue to negotiate a new agreement with the NFF. Mayor Luecke noted the he and the department heads appreciate the time spent with the Council during the budget review process. Mayor Luecke noted that the interaction between the Council and Administration is a positive approach to the overall budget process. Council Member Varner noted that fourteen (14) new positions have been proposed. He inquired whether any positions have been eliminated. Cathy Roemer stated that many have been restructured and some have been eliminated with the net resulting in five (5) new positions. Cathy Roemer noted in response to Dr. Varner's question on the parking garages that the sinking fund exists until the debt is retire;and that currently a$ 1.6 million deficit exists. Council Member King asked whether there were any issues or concerns relative to the proposed budget. Mayor Luecke stated the year 2000 will be fine, however he voiced concern regarding the effects of the public safety pension expenses in the future. Cathy Roemer voiced concern over liability insurance and the risks in areas which are out of persons direct control. Council Member King inquired whether the compensation is sufficient for the level of employees and the quality of services demanded of our employees. Mayor Luecke noted that the City continues to struggle with the bargaining units, department head positions and skilled labor positions. He noted that the City is not as competitive as he would like and that this is a concern. Cathy Roemer noted that many employees stay with the City for more than the salary offered. She noted that there is a risk that all of the Information Management employees could leave. In response to Council Member King's question whether the City was within a reasonable range for compensation, the Mayor noted that most positions were. Council Member Varner noted that St. Joseph County has the second (2d) highest property tax rate in the state. He inquired whether the homestead credit would be reinstated. Mayor Luecke stated that the local homestead credit remains in effect however the state level has been lowered. There will be an 8 %homestead credit for the year 2000, with the County Income Tax Council having the authority in this area. Council Member Aranowski thanked the Mayor and Controller for their overview of the budget. He noted that good management starts from the top. This portion of the meeting ended at 3:40 p.m. Personnel and Finance Committee August 30, 1999 Page 3 Police Department (General Fund 101-0801) Proposed 2000 Budget $ 19,629,066 1999 Budget $ 18,585,543 Acting Police Chief Brent R. Hemmerlein, Division Chief Richard R. Kilgore, and Fiscal Officer Don Pinkert then presented the Police budget. They noted that the new "logic model format"information has been included in their handouts. Don Pinckert noted that they are budgeting for 257 sworn officers, 48 civilians, 28 crossing guards, 5 crossing guard substitutes, and 2 part-time secretaries. He noted that they have attempted to provide as much comprehensive information in the handouts on all of their programs as possible. The overall increase proposed is $ 1,346,377 or 7.2%, however $ 500,000 of this increase is a fund transfer to the Police Department for police pensions. Thus the total new dollar increase is$ 846,377 to the base operating budget for a 4.6 % increase. Mr. Pinckert noted that there are several areas which provide monies to the department including SRO(1 officer in each of the 4 high schools) with the school corporation paying $ 85,000 and the federal government paying $80,000; $ 56,000 from the school corporation for the Director of Security; $75,000 form the St. Joseph County Prosecutor's Office funding 3 officers from the STOP grant;$80,000 from E911 monies; $ 1,2 million grant from the Indiana Law Enforcement Assistance Fund; $ 166,000 from other grant sources; $26,000 fees;and $ 40,000 from CED. Thus when you take into consideration all of these additional funding sources, the proposed 2000 Police Department budget reflects a$237,711 or a 1.3 % increase. Mr. Pinckert noted that PERF will increase by $ 144,000 and will continue to increase since all new officers are in this fund at a rate of 21% of the First Class Patrol Officer base salary. Health insurance also reflects a$ 100,000 increase. In the other service line-items the Council will find the numbers decreasing. "Account Stabilization"reflecting the same line items for the same uses. Increases are also reflected in the auto repair account. Council Member Varner inquired about the E911 funds noting that the Mayor had written to the County Commissioners about the distribution formula. Cathy Roemer noted that the City has not made progress in this area with the City receiving $ 80,000, but believes it should be receiving$ 120,000 additional. Council Member Varner inquired whether cell phones reflect E911 charges. No one had an answer to this question. Dr. Varner then inquired about the use of body armor. Acting Chief Hemmerlein noted that this has been a topic of discussion by Police management as well as at the Labor/Management meetings. Compliance rate is approximately 50-55 %. Most officers who work the 3rd, 5th and 1st shifts wear their vests however the day shift officers typically do not. Chief Hemmerlein, Division Chief Kilgore and Mr. Pinckert welcomed further questions from the Council once they had the opportunity to review all of their handouts.