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HomeMy WebLinkAbout11-06-08 Personnel and Finance Committee/- `^~~ .I ~x.J' J ~ ~~ Personnel and Finance Committee 2008 South Bend Common Council The November 6, 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 5:10 p.m. in the Council's Informa{ Meeting Room Persons in attendance included Council Members Varner, Rouse, White, Henry Davis, La Fountain, Puzzello, Dieter and Oliver Davis; City Controller M. Catherine Fanello, Public Works Director Gary Gilot, Assistant Fire Chief Mark Nowicki, Police Chief Boykins, Director of Fiscal Management for the Police Department Don Plnckert, City Attorney Charles Leone, Building Commissioner Charles Bulot, Building Department Fiscal Officer Rebecca K. Neese, Morris Performing Arts Center Accounting Manager Marika Hegedus, Tom Price, Lynn Coleman, MaryAnn Myers, Mlkki Dobski, members of the news media and Kathleen Cekanski-Farrand, Council Attorney. Council Member LaFountain noted that this Committee meeting was called so that the Council Members could ask more questions about the proposed 2009 baseline civil city budget. Council Member Henry Davis, Jr., noted that he is interested in learning more about the streamlining efforts taken by the various departments. He noted that he has talked with Mr. Gilot on many of the services which are outsourced by his department. Council Member Davis stated that he is not saying that departments are not being efficient but rather he wants each department to address how they can be better. City Controller M. Catherine Fanello stated that in her twelve (12) years in government, she has used consultants. Often, government cannot afford to keep such persons on staff, due to lag times and payroll. ~ She noted that she is looking at outsourcing more in the Administration Finance, and in particular she is looking at payroll and IT. She noted that training for Information and Technology is ongoing and expensive. Public Works Director Gary Gilot stated that his department is "doing a lot more with less". He noted that since 2000, his department has reduced staff from 400 to 350. He now has five (5) professional engineers on staff, with two of those individuals being "engineers in training". The department does use outside "project engineers" on more complex, multi- disciplinary designs so that the city would not be exposed to potential liability. He would be interested in adding engineers to his staff over time. Council President Rouse stated that he too has similar concerns as Council Member Davis with some constituents believing that there may be double-dipping going on. He noted that Jerry Niezgodski has inquired on several occasions about this and also noted that there is a perception that per capita South Bend is not in line with other communities based on information with the DLGF. Personnel and Finance Committee Meeting Minutes of November 6, 2008 Page 2 Mr. Gilot stated that the city has kept costs down and are very competitive on capital projects. He then reviewed a 4-page handout entitled "Public Works 2009 Budget Savings" (copy attached). Council President Rouse stated that Mr. Gilot has set the standard that he would like each department to model. Council Member Puzzello noted that she would be interested in knowing the savings realized to date by each department, noting that she made this request earlier to the City Controller. In response to inquires from Council Member Henry Davis, Mr. Gilot noted that the City cannot afford to provide a 1" overlay curb to curb on city streets, and that often only . portions of the street are addressed, with others having crack sealing ,infra red spot repairs, etc. as a band-aid approach. In response to questions from Council Member Dieter, Mr. Gilot noted that the next time that the city petitions to remove itself from IURC jurisdiction for its water rates that it must do a better job of providing information to the public on the benefits of having the rates set locally by the Common Council. Mr. Gilot stated that approximately $700,000 for the study required for the last rate increase which took 3'/ years to review by the IURC. Dr. Varner noted that the vast majority of the cost incurred for the last water rate increase was related to the 20% surcharge justification for charges to those receiving water services outside of the city limits. Approximately $200,000 additional revenue is received based on that surcharge, accordingly to Mr. Gilot. Council Member White noted that at the October 27th hearing on the budget a number of issues were raised. She stated that planning as a Common Council key priorities for individual departments is essential. She and Dr. Varner stressed that the City needs to know what the 2008 tax rates will be. Priority spending cannot be done unless the relevant information is known. Council President Rouse stated that more information on LOIT will be known in the very near future. He noted in response to a question from Council Member Oliver Davis that to date there has been general discussion on this topic with county officials and Mishawaka officials, noting that there was a preference to wait until after the General Election. City Controller M. Catherine Fanello stated that after discussions with Dr. Varner, the Mayor has agreed that TIF monies can be used to pay for some of the capital costs for the Fire Department and Police Department stations. Dr. Varner noted that the Redevelopment Commission approved in his absence expenses for professional services for MIND at their last meeting. He stated that clarification in the Personnel and Finance Committee Meeting Minutes of November 6, 2008 Page 3 legislation needs to be made, especially now that the interpretation of capital outlay has been expanded by the local commission. Dr. Varner also noted that he believes that there needs to have an "absolute accounting of the money available" in order to solve the fiscal challenges facing the city. He noted that the .2% was established by local ordinance; and that every budget has a % left over at the end of each calendar year. City Controller Fanello stated that she too believes that the state legislation addressing TIF needs to be clarified. She stated that she is required to sign checks and has the authority to decline signing if she does not believe expenditures are legal. Council President Rouse questioned the role of the City Controller in this regard, noting that he did not believe that she was the "final decision maker". Ms. Fanello stated that she has the "power to audit" such expenditures. Jeff Gibney, the Interim Director of the Department of Redevelopment noted that at all of the meetings of -the Redevelopment Commission either an attorney from the City Attorney's Office is present of Richard Nussbaum is present to provide legal advice. He noted that by comparison the City of Chicago has 161 TIF Districts, and that each of South Bend's has been done legally. He then summarized the timeline from the creation of the downtown TIF Distrit, the West Washington TIF District, etc. and the public process which took place in each instance by the commission. He stated that without TIF these areas would be worse today. He cited that expansion of the Airport TIF to include LaSalle Square. He stated that the Redevelopment Department is 1.48% of the civil city budget. He further stated that discussion about TIF is "well-worth having". He cautioned however that tax abatement and TIF is "not a nice marriage". Seven (7) years ago the NE Neighborhood was 50% vacant, and with TIF a $200 million development is now in the works for that area. He noted that TIF monies cannot be used for general operating expenses. Council Member White stated that she believes that there needs to be further public discussion on the use of TIF monies and clarification and TIF and of the Rainy Day Fund monies is needed also. She stated that the "best use" of such funds should be the point of discussion which becomes a philosophical issue.. City Controller Fanello stated that she believes that the TIF state law is vague and that city policies should be developed on how TIF monies should be used since other communities interpreting the same state law have varying interpretations. Mr. Gibney stated that he disagrees with the City Controller on this issue. Personnel and Finance Committee Meeting Minutes of November 6, 2008 Page 4 Dr. Varner stated that often there is "spare cash in various TIF Districts". Uses for that extra money needs to be discussed now, more than ever, especially in light of the police and fire services being provided to each of the TIF Districts. "Porting" is permitted in the state of Illinois, in reference to the Chicago TIF Districts. Dr. Varner further noted that by using TIF monies for capital, such as police and fire capital, it frees up other monies for operating expenses. Council President Rouse stated that he recently attended a workshop and that the information provided by Baker Daniels of TIF differs from the information provided by Mr. Gibney. He stated that in this post 1001 era, a different paradigm is needed. Council Member Puzzello voiced concern that no one from Century Center was present for the meeting. She stated that she has several questions on their proposed budget, actual income, projected income, projects, etc. City Controller Fanello stated that she too has several questions for Century Center, noting that this has been a "bad year" for them. She will follow-up with them. Ms. Fanello stated that she has asked all departments, in response to questions raised earlier by Council Member Puzzello, to prepare a listing of any "cost savings measures" which they have implemented. Council Member LaFountain suggested that all of that information to sent to the Council by next Monday before the Common Council meeting. Ms. Fanello stated that more meetings between the City Administration and the Common Council over the next 4-6 months will be necessary. The baseline budget which the Council will act upon next Monday, wil! preserve the tax levy. She stated that on January 1, 2009, the City will basically be looking at their check book without any money in it. Thoughtful discussion needs to take place. She again noted that the assessed value went down from $3,042,193,955 to $2,970,810,930. Council Member Puzzello also suggested further discussion on the Professional Sports Development Fund, noting that that fund can be used for the zoo. Council Member LaFountain thanked everyone present for their input, and then adjourned the meeting at 6:25 p.m. ~Cour~l MemlSer`Thomas LaFountain, Chairperson Personnel and Finance Committee Attachments