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Home My WebLink About08-04-08 Personnel & Finance~, ~~ ` , r'`~" Personnel and Finance Committee 2008 South Bend Common Council The August 4, 2008 meeting of the Personnel and Finance Committee of the South Bend Common Council was called to order by its Chairperson, Council Member Thomas LaFountain at 3:30 p.m. in the Council's Informal Meeting Room. Council Member Davis made a motion, seconded by Dr. Varner that the meeting be recessed and reconvened in the Council Chambers. The motion passed. Council Member LaFountain reconvened the Personnel and Finance Committee meeting at 3:33 pm. Persons in attendance included Council Members Varner, Rouse, White, Henry Davis, and Oliver Davis; Citizen Member Roger Hamburg, Mayor Stephen Luecke, City Controller M. Catherine Fanello, City Attorney Charles Leone, Tom Price, Jim Weinberg, Chris Baker, Mrs. Kopola, members of the news media and Kathleen Cekanski-Farrand, Council Attorney. Council Member LaFountain noted that this was the 4th meeting on the proposed 2009 civil city budget held to date by the Personnel and Finance Committee. He then invited the City Administration to make their presentations. Controller's Update on DLGF Executive Order: City Controller M. Catherine Fanello announced that the Department of Local Government Finance (DLGF) issued an Executive Order last Friday that changes the deadline for the passage of the budget from September 30, 2008 to December 1, 2008. She recommended that the Council consider passage of the budget by November 1, 2008. She added that the salary deadlines continue to be September 30, 2008. Dr. Varner noted that the City Administration has proposed two (2) budgets for 2009, and inquired which budget will they be asking that the Council take action on later this Fall. City Controller Fanello stated that they will be recommend the "normal budget" be passed which would permit the city to levy property taxes to the maximum for 2009. She added that the City Administration will later file with the City Controller a reduction of appropriation ordinance for 2009 so that the Administration may then implement their proposed spending plan for 2009. Mayor Luecke noted that he is requesting that a "base line budget" be passed. Dr. Varner inquired about the capital funds. The City Controller stated that there are a few proposed small expenditures for capital which are outside of the General Fund which have been included. Ms. Fanello further Personnel and Finance Committee Meeting Minutes of August 4, 2008 Page 2 stated that by next Wednesday she hopes to have summaries, charts and graphs prepared on the 2009 budget for the Council. 2009 Proposed Budget for County Option Income Tax, Fund # 303: Expenditure by Cost Center $4,103,975 Expenditure by Classification $4,103,975 Funding Sources Total $5,950,000 Revenue over expenditures for 2009 $1,846,025 The City Controller noted that the majority of the COIT proposed expenditures are for debt. She then highlighted the detail in the budget summary (copy attached) See footnote # 5 which sets for the 2009 capital lease payments for the Leighton Plaza Lease -Transpo; Public Works Center; Police/Fire renovation; Main Street/Colfax Garage Lease -Transpo; Anchor Project; Frederickson Park; Stamping Plant Lease -Transpo; Frederickson Park - 2"d loan; and payment of agent fees. Ms. Fanello then highlighted footnote # 2 addressing various grants and subsideies (Weed & Seed Grant Matches, NNRO; and capital expenditures of $500,000 for the vacant housing initiative. She then highlighted the information in footnote # 6 which is the proposed 2009 "Spending Plan" which would shift $987,177 currently funded in the General Fund to be funded by COIT. These would include COIT funding for the Studebaker Management contract, Weights & Measures, the contractual agreement for the Code Enforcement Hearing Officer, Code Substandard demolitions, Community & Economic Development operating expenses, and the South Bend Museum of Art. In response to a question from Council Member LaFountain, Ms. Fanello staed that the commitment to fund these items required them to be shifted to a different funding source. Dr. Varner stated that he hoped that costs for police, fire and public works in the various TIF Districts would be looked into so that those costs could be funded. Ms. Fanello stated that she would look into that recommendation further. She also noted that in footnote # 1 the year should be corrected to read "2009". There was no one from the public to speak in favor or in opposition to this fund. 2009 Proposed Budget for Cumulative Capital Improvement, Fund # 407: Expenditure by Cost Center $594,000 Expenditure by Classification $594,000 Funding Sources Total $544,925 Revenue (under) expenditures for 2009 ($49,075) Personnel and Finance Committee Meeting Minutes of August 4, 2008 Page 3 The City Controller noted that the funding is based on a formula established by the State Auditor for distribution of the cigarette tax distribution which is proposed to be cut by 9%. She added that she will check into the payment schedule for the Century Center. There was no one from the public to speak in favor or in opposition to this fund. 2009 Proposed Budget for Cumulative Capital Development, Fund # 406: Expenditure by Cost Center $1,312,239 Expenditure by Classification $1,312,239 Funding Sources Total $1,380,426 Revenue over expenditures for 2009 $ 68,187 The City Controller noted that that this fund is utilized to fund the various equipment leases which are each of 5-year durations. She stated that there would be no new leases until one falls off. Currently computer maintenance agreements are under review with a 12% reduction being proposed. She is looking into outsourcing payroll and will provide the Council with a list of all maintenance agreements. She also believes that city email accounts should be reviewed. There was no one from the public to speak in favor or in opposition to this fund. 2009 Proposed Budget for Economic Development Income Tax, Fund # 408: Expenditure by Cost Center $3,541,207 Expenditure by Classification $3,541,207 Funding Sources Total $1,380,426 Revenue over expenditures for 2009 $ 336,260 The City Controller noted that based on her conversation with Don Inks, that $236,360 may be funded from TIF monies for HUD § 108 bonds. Dr.Varner inquired about the $110,000 proposed payment for Project Future. City Controller Fanello stated that the EDIT monies may now be used for anything since 2006 legislation changes. In response to a question from Council Member White, Ms. Fanello noted that footnote # 5 sets forth $650,000 of priority projects identified by the Mayor which include proposed funding for Project Future, Chamber of Commerce (BRE), DTSB, Inc., Real Services, Building Blocks, Near NW operating, Neighborhood Resource Corporation, Rebuilding Together, and Historic Preservation. Personnel and Finance Committee Meeting Minutes of August 4, 2008 Page 4 Council Member Oliver J. Davis suggested that a separate meeting be called for presentations for each of these proposed projects. There was no one from the public to speak in favor or in opposition to this fund. 2009 Proposed Budget for College Football Hall of Fame Debt Service, Fund # 313: Expenditure by Cost Center $1,406,000 Expenditure by Classification $1,406,000 Funding Sources Total $1,663,136 Revenue over expenditures for 2009 $ 257,136 The City Controller noted that principal and interest is proposed to be $1,406,000, which has been set high for tax rate purposes, with DLGF making the final determination. There was no one from the public to speak in favor or in opposition to this fund. 2009 Proposed Budget for Professional Sports Development, Fund # 377: Expenditure by Cost Center $889,620 Expenditure by Classification $850,000 Funding Sources Total $928,658 Revenue over expenditures for 2009 $ 78,658 The City Controller noted that the Common Council designated monies from sales tax in the professional sports development area which are used to fund expenditures. Eligible activities would be for the Cove, Palais Royale, Morris, Center Center, and the CFHF. In response to a question from Council Member Oliver J. Davis, Ms. Fanello stated that she would check into why the Hall of Fame capital reserve fund increased and report back to the Council. Mayor Luecke noted that one (1) hotel was over assessed and that the hotel/motel tax assessment in 2008 will be reduced to address that issue. In response to a question from Council Member Oliver J. Davis, it was noted that the new downtown hotel is to be operational in 2010. Ms. Fanello noted that Professional Sports Development monies would be used for any shortfalls, and directed the Council to footnote # 2. In response to questions from Citizen Member Roger Hamburg Mayor Luecke noted that state legislation enabled the Council to pass legislation in this area by the fact that South Personnel and Finance Committee Meeting Minutes of August 4, 2008 Page 5 Bend has a professional minor league baseball team. Sales tax and employment tax is collected .from the entities located within the professional sports development area which become the funding source. The goal is to build a $1 million capital fund. Council President Rouse stated that keeping the Silver Hawks and the Cove have tremendous value, and that the public should be educated on the return which the city is receiving. There was no one from the public to speak in favor or in opposition to this fund. 2009 Proposed Budget for Self Funded Employee Benefits, Fund # 711: Expenditure by Cost Center $13,854,707 Expenditure by Classification $13,857,734 Funding Sources Total $14,160,297 Revenue over expenditures for 2009 $ 302,563 The City Controller noted that workers compensation charges have increased. She highlighted the information in footnote # 3 noting that by changing to Anthem which was effective on January 1, 2007, has resulted in a "considerable cost savings which providing good benefits to City employees. 2009 Departmental budgets have decreased by a total of $1.4 million from the 2008 adopted budget". Ms. Fanello noted that additional information is set forth on pages 24 and 25 which were not in the packet of information provided to the Council. Ms. Fanello stated that she would make sure that the Council receives copies of those pages. Dr. Varner requested that the City Administration provide a summary listing which identifies all proposed employee positions which have been moved from the General Fund to other funds; as well as a listing of all positions which have multiple funding sources. There was no one from the public to speak in favor or in opposition to this fund. 2009 Proposed Buduet for Common Council: Expenditure by Cost Center $236,501 Expenditure by Classification $434,466 Funding Sources Total $434,466 Ms. Fanello noted that the 2009 estimate for total expenditures by Cost Center should be amended from "434,466" to "$236,501 ", in light of no election expenses which were previously budgeted at $.188,019 in the current budget. Personnel and Finance Committee Meeting Minutes of August 4, 2008 Page 6 President Rouse noted that the proposed Council budget contains a proposed expenditure of $28,000 for recording equipment, in lieu of contracting for this service, for the recording of the Council meetings. President Rouse stated that he looks forward to talking with the Council in more detail about the proposed budget. There was no one from the public to speak in favor or in opposition to this fund. Council Member LaFountain thanked every one for the information shared at the meeting. He noted that the next Personnel and Finance Committee meeting will be on Wednesday, August 6, 2008 at 3:30 p.m. which the Morris, Palais Royale, Police Department and Fire Department budgets will be presented. Council Member LaFountain then adjourned the committee meeting at 6:29 p.m. Resp sub It ; _---- e' % e r homas LaFountain, Chairperson Personnel and Finance Committee Attachments