HomeMy WebLinkAbout09-04-01 Personnel & Finance s �
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The September 4, 2001 meeting of the Personnel and Finance Committee was called to order by
its Chairperson, Council Member James Aranowski at 3:00 p.m. in the Council Informal Meeting
Room.
Persons in attendance included Council Members Aranowski, Pfeifer, Kelly, Coleman and Varner;
Mayor Stephen J. Luecke, Director of Budgeting & Financial Reporting Tom Skarbek, South
Bend Regional Museum of Art's Executive Director Susan R. Visser, Youth Services Director
Bonnie C. Strycker, City Attorney Charles Leone, Assistant City Attorney Aladean DeRose,
Studebaker Museum Interim Director Rebecca Bonham, Dave Sypniewski, and Kathleen
Cekanski-Farrand, Council Attorney.
Council Member Aranowski welcomed everyone to the budget meetings.
2002 Youth Services Bureau (Fund # 101-0407)
2001 Budget: $ 65,00
2002 Budget: $ 75,00
Bonnie C. Strycker, Executive Director of the Youth Services Bureau, presented a folder
containing a summary of information to the Committee. She noted that the mission of theYouth
Services Bureau is to "provide help to children and youth during critical times in their lives and at
particular times ofv,,�,i; i '
Ms. Strycker then highlighted some of the major programs run by the Youth Services Bureau.
"Safe Station"located at 1322 Lincolnway East is a voluntary emergency shelter for youth between
the ages of 12 to 17 who have runaway from home, who are in crisis or who are victims of about
and/or neglect. Some of the many goals include placement in residential or hospital settings.
The "CASA Program" (Court Appointed Special Advocate) is located at 1000 S. Michigan and
provides a voice for children and youth involved in juvenile court proceedings as a result of abuse
or neglect.
"Youth as Resources"is located at 2222 Lincolnway West and offers young persons opportunities
for leadership development and community service.
"Young Mom's Self-Sufficiency Program" is also located at 2222 Lincolnway West and is aimed
at increasing mothers' self-sufficiency and decreasing the potential for abuse and neglect.
"Youth Development Services" (YDS) is located at 1330 Lincolnway East and offers counseling
and social development for youth ages 5 to 12 through selected schools and community
organizations.
Ms. Strycker noted that the goals of the Youth Services Bureau for 2002 are to:
1. Receive increased funding from $65,000 to$75,000
2. Expand Safe Station with the use of federal fundings
3. Establish"Youth Links" which identifies what is available for youth in the area
Personnel and Finance Committee
September 4, 2001
Page 2
of volunteer service programs. They are working with the University of Notre Dame to gather
information and disseminate information.
4. Emphasis "Youth as Resources" which is aimed at bringing youth and adults
together(40 youth to 10 adults). They would like to host a conference in St. Joseph County.
Ms. Strycker noted that special event fund raising would continue to go forth.
The Council Attorney inquired whether Youth Services has its own website. Ms. Strycker noted
that they are developing a website which should be available in the next several weeks on Michiana
Free Net.
Council President Pfeifer inquired about the Youth Development Commission and the Health
Communities Initiatives. Ms. Strycker stated that the Youth Development Commission is more
educational. She is attempting to bring all agencies together who provide services for youth
together to discuss issues. Ms. Strycker agreed with the Council President that there needs to be a
better coordination of services.
Council President Pfeifer noted that she has "heard terrible things at Madison Hospital", and she
encouraged coordination in light of the duplication of services and bad services being provided by
some organizations.
Ms. Strycker noted that a lot of "turfism" is going on but she is hopeful that youth system
advocacy can be developed. She remains hopeful that dialogue can take place.
Council President Pfeifer inquired why the Youth Services Bureau was no longer a part of city
government. Ms. Strycker that Mayor Parent terminated the city relationship in 1985, however
agreed to provide some financial support with the remainder of such support being provided by a
variety of public and private funding sources. Ms. Strycker noted it was difficult at first but they
have continued to grow and meet the needs of youth because of dedicated staff.
2002 South Bend Regional Museum of Art (Fund # 101-0408)
2001 Budget: $ 125,00
2002 Budget: $ 125,00
South Bend Regional Museum of Art's Executive Director Susan R. Visser presented three (3)
handouts to the Committee,namely:
1. South Bend Regional Museum of Art Selected Youth Programs,2001
A 2-page handout highlighting seven(7) programs,namely five(5) new
programs being"Youth Studio Residency Program","Art Exposure",
"Totem Pole 2001","Art Junkie/Juvenile Justice Center Day Programming",
and"Shake Your Bon Bon";and two(2) on ongoing programs being
"Art Chunk"and"Art and Artifacts"(copy attached)
2. SBRMA Fall 2001 Brochure
A 23-page brochure highlighting a calendar of events,registration and membership.
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Personnel and Finance Committee
September 4, 2001
Page 3
3. Witness &Legacy-Contemporary Art About the Holocaust and in Unison
A multi-page document focusing on the collaborative community programs
of witness &legacy from March 4th through May 13th which brought twenty-one
(21) organizations together for the sponsorship of this program.
Ms. Visser noted that the Witness &Legacy-Contemporary Art About the Holocaust and in Union
brought our community together. She also noted that this summer many Youth Camps were
sponsored.
Council Member Kelly stated that the Holocaust exhibit was "truly mind-boggling and reminds
each of this that it could happen again".
Council President Pfeifer noted that the Holocaust exhibit was excellent and a true collaboration of
bringing many groups together with different voices.
Ms. Visser noted that the Regional Museum of Art received$70,000 of Build Indiana Funds.
Mayor Luecke commended the programming and outreach to the many different parts of the
community for art, music and culture; noting that Ms. Visser has spearheaded a"wonderful gift to
our community".
2002 Studebaker Museum (Fund # 101-0409)
2001 Budget: $ 197,733
2002 Budget: $ 214,688
Rebecca Bonham, Interim Director of the Studebaker Museum, then presented a file folder filled
with information for the committee (copy attached). This information included a brochure on the
Studebaker National Museum, a brochure on the 1929-1933 Studebaker Presidents on display, a
2-page letter dated August 7, 2001 from Andrew Ujdak, Chairman of the Board of Trustees of the
Studebaker National Museum,a Summer 2001 New Release on new galleries and exhibits, special
exhibit schedule for 2001-2004 and an attendance summary for 1995 through the present.
Ms. Bonham noted that they are focusing on marketing and realigning their mission. 2002 will
mark the 150th anniversary of the Studebaker industry. WVPE will have a "Meet Me at the
Museum" in the Spring and Fall. They are partnering with other artifacts such as South Bend Toy
in their exhibits. Currently the museum is running 2 1/2 people short.
Ms. Bonham stated that the achieves is an unknown community resource which can become a
profit center. They are turning a store room into offices.
Council Member Kelly inquired about a new site for the museum. It was noted that 2-3 locations
are being considered, however they are scaling back from 100,000 square feet to 50-60,000 square
feet for a total of$ 10 million.
Council President Pfeifer inquired about whether the current location is still in the running. Ms.
Bonham noted that it is, despite being in "pretty rough shape". The fact that the building is a
former dealership, Ms. Bonham noted that she is"growing fond of the building".
Personnel and Finance Committee
September 4, 2001
Page 4
Council President Pfeifer noted that the cost of relocation would be expensive and is an additional
factor to consider.
Ms. Bonham noted that the first floor has 33,000 square feet with common areas, plus the storage
space on Lafayette Boulevard.
Dr. Varner noted that the Auburn museum utilizes old buildings and includes old proto-types as
part of their exhibits.
The Council Attorney inquired about whether the museum pursues grant monies. Ms. Bonham
stated that because the museum has lost its accreditation, it limits the grants for which it can apply.
She did not however that the museum has received Build Indiana funds and other funds at the state
and federal levels in the past.
2002 Internal Service Fund-Liability Insurance Reserve (Fund # 226)
2001 Budget: $ 1,770,774 Expenditure increase: 9.5 %
2002 Budget: $ 1,938,436 Total expenditure increase: $ 167,692
Tom Skarbek provided a handout addressing the cost of preventive maintenance which was asked
when the Police budget was reviewed.
Safety & Risk Specialist Keegan Rauen made the budget presentation. Keegan will continue to
spend more time in the fields. He noted that Gibson Insurance is under contract pursuant to a
consulting contract.
Council Member Coleman requested a breakdown of worker compensation claims
by department. Mr. Rauen noted that Solid Waste had the greatest number of claims with 45
being filed last year.
Council Member Aranowski noted that an additional $ 18,000 has been proposed for consultant
fees & loss control fees; with this line item going from $ 89,000 to $ 107,000. Mr. Rauen noted
that Gibson is involved with many legal areas and air sample monitoring.
Dr. Varner questioned how the $ 107,000 fee amount was developed and how the
additional $ 18,000 was calculated since it appears to be a 20 % increase in one
year. He noted that he believes that Gibson receives additional consulting fees
beyond the workers compensation consulting fees.
Mr. Skarbek stated that he would check into the Gibson consulting contracts and
report back to the committee.
Mayor Luecke commended Keegan Rauen for keeping the City focused on safety, especially in
light of the tragedy of two years ago.
2002 Internal Service Fund-Self-Funded Employee Benefits (Fund # 711)
2001 Budget: $ 7,408,950 Expenditure increase: 18.9 %
2002 Budget: $ 7,867,522 Total expenditure increase: $ 1,248,754
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Personnel and Finance Committee
September 4, 2001
Page 5
Tom Skarbek made the presentation,noting that Susan Wallace was on vacation. He noted that the
police department retirees have always been paid out of this fund in the past, along with cash
reserves.
Kevin Webber of the Gibson Insurance Company joined the meeting at this point. He noted that
the proposed self-funded employee benefit budget assumes 1,330 employees which represents a
four percent (4 %) vacate fate for the 1,385 budgeted number of employees. 1,146 participate in
the City's self-insurance health program.
In light of the police negotiations and agreement not been reached on insurance for next year, the
continuation of the current contract will take place. Mr. Webber stated that the city will experience
an$81,000 shortfall to maintain those insurance benefits for calendar year 2002. It was noted that
the following premiums are in effect:
Fire single employee $ 15 Teamster single employee $ 11
Fire family coverage $ 43.50 Teamster family coverage $ 33.50
Mr. Webber noted that employees typically pay 10-25% which is standard in the insurance
industry.
Council Member Kelly inquired about the overall expenditures and how we compare to other cities.
Mr. Webber stated that the amount is in relation to the employment base which is sex and age
driven. There is a 28-33 % increase in health care community-wide.
Mr. Webber noted that $ 3.5 million in claims have been paid with $ 1.5 million being paid for
eighteen(18)people representing 42%.
In response to a question from Dr. Varner, Mr. Webber talked about"lasering" where items could
be excluded from the City's specific stop loss insurance policy.
2002 Cumulative Capital Development Fund (Fund # 406)
2001 Budget: $ 1,033,436
2002 Budget: $ 1,092,462
Tom Skarbek noted that the tax rate will remain at$0.15 per$ 100 net assessed value,with the net
assessed value being reduced as a result of the commercial vehicle excise tax assessment.
2002 Cumulative Capital Improvement Fund (Fund # 407)
2001 Budget: $ 751,000
2002 Budget: $ 594,000
Tom Skarbek stated that the rates went down because less people are smoking. The year end
encumbrance need for February 1,2002 Century Center debt service payment is$297,000.
Mayor Luecke noted, in response to a question from Dr. Varner, that a portion of this fund's
revenue would be used for capital and addressed next February.
Personnel and Finance Committee
September 4, 2001
Page 6
2002 County Option Income Tax (Fund # 404)
2001 Budget: $ 7,559,928
2002 Budget: $ 6,726,296
Tom Skarbek stated that COIT reflects the city's portion of a county-wide tax which is shared by
cities and towns within the county based on the tax levy for homestead valuation. This years
amount includes a"catch-up"as a result of last year's conservative estimates.
Council Member Coleman noted that if the economy continues to stall the COIT dollars may
continue to decrease.
Dr. Varner inquired whether COIT could be used for salaries and capital expenses, since the Mayor
has indicated that additional revenue sources would be needed for the 4th year of the police
contract.
Mayor Luecke noted that COIT could be used for those expenses, however he was considering
hydrant rental fees for police and fire operations as a possible funding source.
Council President Pfeifer inquired about tree trimming and was advised that it would be addressed
as part of the Park Department budget review.
2002 Economic Development Income Tax (Fund # 408)
2001 Budget: $ 5,206,284
2002 Budget: $ 3,157,679
Tom Skarbek noted that this fund is based on a county-wide tax which is shared by cities and
towns within St. Joseph County and is based upon the tax levy. The actual final budget will be
determined by the State Tax Board this Fall.
2002 Redevelopment Commission-Studebaker Bond (Fund # 310)
2001 Budget: $ 663,330
2002 Budget: $ 659,278
Tom Skarbek made the presentation.
2002 Redevelopment Commission-Football Hall of Fame Bond (Fund # 313)
2001 Budget: $ 704,000
2002 Budget: $1,408,900
Tom Skarbek made the presentation.
Dr. Varner inquired by auto excise and commercial vehicle excise tax are
included as part of this budget. Mr. Skarbek noted that this is the same as the
Studebaker bond, but agreed to check on it further.
Personnel and Finance Committee
September 4, 2001
Page 7
2002 College Football Hall of Fame (Fund # 377)
2001 Budget: $ 612,376
2002 Budget: $ 783,185
Tom Skarbek noted that the amount to be received from the Hotel/Motel Tax Board represents one
percent(1 %)of the six percent(6%) of the total hotel/motel tax collected county-wide.
The Mayor noted that the city can ask for receipts for capital expenses.
Dr. Varner expressed concern that there is no cap on such expenses per the agreement. He was
advised that the city is obligated to distribute the one percent (1 %), however an additional
appropriation would be required if it would be proposed to go beyond the budgeted numbers.
Dr. Varner expressed concern that the Nl± would be entitled to keep personal property items
pursuant to the agreement. Mayor Luecke noted that they could take what is not fixed to the
building. Mayor Luecke hopes that a new sinking fund would be created so that monies could be
placed in reserve for major items such as the roof, heating, air conditioning,etc.
Dr. Varner suggested that monies should be part of an overall endowment if limited exhibit items
do not need to be purchased.
There being no further no further business to come before the Committee, Council Member
Aranowski adjourned the meeting at 4:50 p.m.
Respectfully submitted,
Council Member James Aranowski, Chairperson
Personnel and Finance Committee
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