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HomeMy WebLinkAbout08-21-00 Personnel & Finance Committee Wit: Vas-matt an cincture committee The August 21, 2000 meeting of the Personnel and Finance Committee was called to order by its Chairperson,Council Member James Aranowski at 3:00 pm in the Council Informal Meeting room. Persons in attendance included Council Members Aranowski, Varner, Kelly, Pfeifer, King, Coleman and White; Citizen Member Isabelle Gonzalez, Mayor Stephen J. Luecke, City Controller M. Catherine Roemer, Director of Finance Tom Skarbek, Assistant Chiefs Robert Quinn III,Richard Switalski, Randy Magdalinski and Bert Prawat of the Fire Department;Director of Public Works Gary, Gilot, City Engineer Carl Littrell, Director of Environmental Services John J. Dillon,Terry Bland of the OUt tub, trribunt and Kathleen Cekanski-Farrand, Council Attorney. Council Member Aranowski welcomed everyone to the first of several Personnel and Finance Committee meetings called to review the proposed 2001 civil city budget. He then called upon Mayor Luecke to provide a City-Wide Overview. Mayor Stephen J. Luecke detailed significant issues and highlighted many items of the proposed 2001 budget(see"Summary Overview"tab of the 2001 Preliminary Operating Budget). Mayor Luecke noted that the proposed budget addresses all "operating" expenses and debt service accounts with new capital requests being addressed in February of 2001. The budget assume the maximum 5 % increase in property tax revenue. The 2001 anticipated revenue for the General Fund is $ 52,161,310. The total anticipated revenue including the General Fund,Internal Service Funds, Capital/Debt Service Funds, Trust/Agency Funds, and Enterprise Funds is $ 13,677,350 with$ 127,491,511 projected for the operating budget leaving a proposed surplus of$ 10,185,839 for 2001. Expenditures for 2001 will include 55.6% for personnel services, 33.2% for other services, 6.7 % for other services and 4.5 % for supplies. The Mayor noted that the proposed budget reflects the general budget guidelines for expenditures,namely: 1. Salary increases for Union employees will reflect the ratified increases,and non- bargaining employees will receive 3.5 % increases with exceptions being identified in the proposed salary ordinance. 2. 1.5% increases would be permitted for supplies. 3. 2.5% increase would be permitted for other services. Exceptions to these general guidelines are included and reflected in the footnotes provided on the summary pages immediately prior to the line-item detail of each proposed budget. For example, gasoline will be budgeted at $ 1.50 per gallon for the entire year; increases in self-insurance employee benefit funds;and increases in the City's liability insurance reserve fund. Mayor Luecke noted that there are five (5) unbalanced funds where existing fund cash balances will be used to support the projected 2001 deficiencies. These funds include: Motor Vehicle Highway/Street Department, Police and Fire Pension funds, Solid Waste Fund, and the Sewer Repair/Insurance Fund. He noted that a sixth (6th) fund,namely the Parking Garage Fund Personnel and Finance Committee August 21,2000 Page 2 will also show a budget deficiency for 2001 and that this fund does not have sufficient cash balances to absorb the projected deficiency. General Fund monies are proposed to support this fund through interfund cash advances. Mayor Luecke stressed that good management and good budgeting has resulted in the City's solid financial status. He intends to maintain the City's fine bond rating and treat all City employees fairly. The minimum salary increase will be S 750 and the minimum hourly rate reflected is$9.00 for limited entry level positions. Mayor Luecke thanked the City Controller and her staff for the preparation of all of the budget documents and thanked the Council for its anticipated thorough review of the proposed budget over the next several weeks. Council Member King inquired as to what criteria were used in setting salaries. Cathy Roemer noted that several salaries for technical positions have been proposed with salary adjustments in order to better compete with the marketplace. These include positions are primarily in the information technology area and the engineering area. Council Member King inquired about the City's policy for in house versus out-sourcing services, noting in particular the high usage of engineering consultants currently. Mayor Luecke noted that basic design should be done in house and that Mr. Gilot would provide more detailed information when he presents the Public Works proposed budget. Council Member Aranowski thanked the Mayor for his overview and then called upon the Fire Department Administration to review their proposed 2001 budget. FIRE DEPARTMENT (GENERAL�FUND # 101-09011 2000 Total Expense Projection: $14,604,368 2001 Total Expense Projection: $15,833,431 $1,229,063 reflecting a 8.4 % increase Revenue Received in the GENERAL FUND from various Fire Department Services: 2000 Projected Revenue: $ 2,265,877 2001 Projected Revenue: $ 2,342,024 Assistant Chief Richard Switalski in charge of Services, Asst. Chief Randy Magdalinski in charge of EMS Operations, Asst. Chief Robert Quinn III in charge of Operations, and Asst. Chief Bert Prawat in charge of Inspection & Prevention then reviewed the proposed Fire Department budget in the absence of Fire Chief Luther Taylor who was unable to be in attendance in light of personal reasons. Asst. Chief Switalski thanked the Council and the Administration for all of their efforts in dealing fairly with the firefighters during this year's wage and fringe benefit negotiations with representatives of Local #362. He noted that the Union approved the 4-year tentative agreements reached between the respective bargaining teams by 66%. Asst. Chief Switalski then reviewed the "Summary of Major Changes" sheet. He noted that 96% of the increases are a direct result of the wage and benefit negotiations. The proposed budget also incorporates the $ 1.50 per gallon guideline from the Administration. Increased utility Personnel and Finance Committee August 21,2000 Page 3 numbers have been included for services provided to old fire station # 10 which is now # 13 as well as new fire station # 10. He noted that he will be meeting later this week with the County Commissioners regarding the St. Joseph County EMS contract which has a projected revenue amount to the General Fund of$ 1,577,724 for 2000 as opposed to the $ 1,471,828 listed on the summary sheet. $400,000 will be transferred to the Pension Fund to cover a projected deficiency in 2001. The proposed research and development position may be proposed if the Fire Bill in Congress is passed, or the department may use outside services for the grant writing proposal. If the bill becomes law, fire departments will have the opportunity to submit for grant funds. The fire department will be attending meetings in Fort Wayne on September 23rd and 24th on this topic and will keep the Council updated on the status of the Fire Bill. Such federal funds may be used for the proposed training facility, training and equipment. Council Member Aranowski noted that $ 12,000 is budgeted for furniture and small equipment needs in each of the fire stations. He noted that the amount represents $ 50 being budgeted for each firefighter. Inequities are evident since single houses get$450 whereas Central gets$3,000;however the Local#362 wage team were not receptive to changing current policy. Council Member Aranowski suggested that the thermal imagers be phased in with further discussions taking place when the capital budget is discussed. Council Member Kelly stated that he wants a first-class fire training center for the department. He noted that this would be further addressed in the capital budget, but believes that it must again be stressed now. Council Member Kelly inquired what the projected cost would be. Asst. Chief Switalski stated the 1997 Cole Associates study projected a cost of$ 1.2 millon dollars without the land cost being factored. Council President Pfeifer agreed with Council Member Kelly that the City should set the Fire Department Training Center as a top priority. She requested regular updates from the fire department on this project so that the Council could have ongoing input. Asst. Chief Switalski further noted that they have been working with John Schalliol for the South Bend Regional Airport regarding land which is adjacent to the US 31 Bypass near Blackthorn. Asst. Chief Quinn noted that they are working with the FAA and are pursuing access off of Mayflower Road. It was noted that water, smoke and noise concerns in light of the type of training facility which is need must all be properly addressed. It was also noted that the Fire Department is working with Bob Case of Community Development on a total of three (3) current sites. Council Member Kelly requested a summary of the efforts made to date on the proposed Fire Department Training Center as well as the proposed schedule of activities for the rest of this year, so that the Council will be prepared when it reviews the capital budget early next year. Citizen Member Isabelle Gonzalez suggested that perhaps such a training center could be shared with the Public Works Department since such training as confined space is needed for both departments. Asst. Chief Switalski stated that it is the department's hope that the training center would be regional in nature. Council President Pfeifer inquired as to the amount of space which would be necessary for both fire and police to properly administrate all of their various Personnel and Finance Committee August 21,2000 Page 4 activities. She requested the pros and cons of having the Fire and Police Departments together for administrative purposes, as well as the concerns regarding Communications. She noted that other cities have them together, while many have them separated. She suggested that the City should have a plan and that the Administration and the Council should work together to have the best possible public safety facilities. The consequences of each alternative should be known and discussed before final decisions are made. Cathy Roemer noted that the first step will be the Public Works facility with demolition in the brownfield area taken place later this Fall,with construction to begin in the Spring of 2001. Council Member King inquired about the costing for outside services to such entities as the hospitals and Notre Dame. Cathy Roemer responded that the county EMS program costed 21 firefighters. Asst. Chief Switalski noted that three (3) firefighters have been costed with all benefits plus administrative costs for the hospitals. He further noted that the two contracts with the University of Notre Dame are all done with off-duty firefighters. Asst. Chief Switalski noted that the City has had the same ambulance rates for the last seven (7) years, and that the City may want to review these rates in the future. In response to a question from Citizen Member Isabelle Gonzalez, it was noted that $ 117,800 has been budgeted for various types of physicals which include haz-mat physicals,annual physicals, pension physicals and treadmill testing. Asst. Chief Switalski noted that the annual physicals were stated when Ms. Gonzalez was the Safety and Risk Officer for the City and have proved extremely beneficial. He also noted that the problem with the treadmill testing was positive addressed during wage negotiations this year with new contract language being agreed to by the Union and the City which will eliminate many problems. Ms. Gonzalez inquired as to how many lives had been saved as a result of the physicals. Asst. Chief Switalski noted that the program began in 1994. Three(3) of 223 firefighters failed to pass the test all due to cardiac conditions. The department works closely with Dr. Edwards in this area. He further noted that in 1990,the City lost a firefighter due to a cardiac condition. Ms. Gonzalez noted that the liability insurance is proposed to be increased from $ 153,168 to $ 162,802 and inquired why and what was covered. Cathy Roemer responded that three (3) basic types of coverage are provided for property, workers comp, and self-insurance claims being used as a catch-all. Ms. Gonzalez inquired about education and training noting that the City of Indianapolis works closely with the Hispanic coalition with regard to communication concerns and enhancing public safety in light of the changing demographics. Asst Chief Switalski stated that all medics have had two(2) hours of in service Spanish training. Asst. Chief Magdalinski noted that there are sixty-four (64) individuals who work on the various ambulances and that training requires funding for registration fees as well as overtime expenses, otherwise rigs will be forced out of service. It was also noted that recent FLSA guidelines may require overtime even when off-duty training is given and when firefighters volunteer. • Personnel and Finance Committee August 21,2000 Page 5 Council President Pfeifer agreed with the concerns raised by Ms. Gonzalez and suggested that the Fire Department look into budgeting for 2001 the necessary funds for instruction in light of the changing demographics of the City. • She noted that the cost to the City for not having it may prove to be much higher. Council Member King suggested that there are many quality self-study courses which the firefighters may be able to use on duty. He suggested that both tapes and computer programs be considered in light of the concerns raised. Council Member Aranowski suggested that perhaps language programs could be phased in with the Fire Department initially focusing on those fire stations that respond to areas of the city where there may be language concerns. He noted that when he road last night with the Police Department that a translator was needed and that this is a real concern. The Council Attorney inquired as to where funds were budgeted for ongoing drug/alcohol testing for management personnel in light of the threshold levels being changed as a result of contract negotiations. Asst. Chief Switalski stated that they would work with Madison Center and did not believe that additional funds would be needed for such ongoing training. He noted that the new drug levels with be consistent with DOT regulations which he believes are in the best interest of the department and public safety in general. Council President Pfeifer noted that so often wonderful ideas and suggestions are proposed during the budget review process but that the Council often times receives no formal update on them. She suggested that a written report be provided. Asst. Chief Switalski stated that the Fire Department would be happy to update the Council on a regular basis. Council Member Aranowski thanked the Assistant Chiefs for their presentation. E.M.S. CAPITAL (FUND # 288) 2000 Total Expense Projection: $1,191,169 2001 Total Expense Projection: TBD in Feb. 2001 Projected Revenue: $952,500 2001 Projected Revenue:$961,500 Assistant Chief Richard Switalski stated that various lease purchases are covered by this fund. Quint 7 will be done later this December then Quint 6 will be sent. In 2001 the Fire Department is looking at purchasing a pumper for Station # 9. In 2002 the Fire Department is looking at purchasing an aerial truck which is needed in light of the 1981 snorkel which is in reserve. In February the thermal imagers will be discussed; currently the department has two (2). They are currently reviewing hand-held vs. helmet type thermal imagers. In response to a question from Dr. Varner, it was noted that EMS has a collection rate of 73%. Asst. Chief Switalski noted that the department is closely following Elkhart and their EMS rate proposals in light of the changing Medicare regulations regarding "approved rates". Forty percent(40%)of the charges are Medicare related. Asst. Chief Switalski noted that there have been changes in the hiring procedures as noted Personnel and Finance Committee August 21,2000 Page 6 earlier to the Council. 294 applications were provided and 258 were returned. On August 12th the tutoring session took place and then testing for one day with 126 taking the test. Test results will be available next Friday. Asst. Chief Switalski stated that old Nuner School will be used from September 1st thru November 30th for the CPAT testing; then the oral interviews will be conducted. He concluded that with the testing being written,oral and then CPAT that the overall testing procedures are much more job-related. He provided a summary of the 2000 Applicants (copy attached) showing the following breakdown of the 258 applicants: 222 Caucasian; 23 Black; 8 Hispanic; 2 Oriental; 2 Indian and 1 multi-racial. FIRE PENSION (FUND # 701) 2000 Total Projected Revenue: $ 2,761,282 2001 Total Projected Revenue: $3,212,757 2000 Total Projected Expenditures: 3,124,710 2001 Total Projected Expenditures: $3,664,975 Projected Expenditures Over Revenue:-$452,218 Asst. Chief Switalski noted that there is a projected increase in expenditures of$ 520,097 POLICE PENSION (FUND # 702) 2000 Total Projected Revenue: $3,397,704 2001 Total Projected Revenue: $4,039,265 2000 Total Projected Expenditures: $3,650,641 2001 Total Projected Expenditures: $4,150,828 Projected Expenditures Over Revenue: $111,563 Sgt. Paul Niezgodski reviewed the proposed budget. He noted that there is a projected increase in expenditures of $415,645. City Controller Cathy Roemer noted that revenue is not keeping up with expenditures and that in 2000 there will be $ 550,000 less received by the City in pension relief. She then provided five(5) pages of handouts(copies attached) showing various projections for the pension funds. Asst. Chief Switalski noted that IACT and Mishawaka Mayor Robert Beutter pushed in the past for over one(1) billion dollars to be receipted into the public safety pension funds. He noted that all second class cities must make annual filings to the state in February. Council Member Aranowski suggested that funding of public safety pension funds be a topic specifically discussed with the State Representatives and State Senators and that perhaps Mayor Beutter be invited to review his proposal. Dr. Varner noted that there are many variables which must be taken into consideration and that projections beyond a 2-3 year basis would be close to impossible. He agreed with Council Member Aranowski that increased state support is necessary since this is an issue affecting all second class cities. Council Member King inquired about how the amount of pension relief is determined. It Personnel and Finance Committee August 21,2000 Page 7 was noted that the formula is set forth in state law. Cathy Roemer stated that she would make available to the Council the projections for public safety pensions of other Indiana cities. Council Member Aranowski thanked all in attendance for their presentations. There being no further business to come before the Committee, Council Member Aranowski adjourned the meeting at 5:00 p.m. Respectfully submitted, Council Member James Aranowski, Chairperson Personnel and Finance Committee KCF:kmf Attachments