HomeMy WebLinkAbout07-13-09 Common Council Minutes
REGULAR MEETING JULY 13, 2009
Be it remembered that the Common Council of the City of South Bend, Indiana met in
the Council Chambers of the County-City Building on Monday, July 13, 2009 at 7:00
p.m. The meeting was called to order by Council President Dieter and the Invocation and
Pledge to the Flag were given.
ROLL CALL
COUNCILMEMBERS:
Present: Derek D. Dieter 1st District, President
Henry Davis, Jr. 2nd District
Ann Puzzello 4th District, Chairperson Committee of the Whole
David Varner 5th District
Oliver Davis 6th District, Vice-President
Al “Buddy” Kirsits At-Large
Timothy Rouse At-Large
Karen L. White At-Large
Absent: Thomas LaFountain 3rd District
OTHERS PRESENT:
John Voorde City Clerk
Janice I. Talboom Deputy City Clerk
Kathleen Cekanski-Farrand Council Attorney
Mary Beth Wisniewski Chief Deputy
REPORT FROM THE SUB-COMMITTEE ON MINUTES
To the Common Council of the City of South Bend: The sub-committee has inspected
the minutes of the June 22, 2009 meetings of the Council and found them to be correct.
Therefore, we recommend the same be approved.
s/Derek D. Dieter
s/David Varner
Councilmember White made a motion that the minutes of the June 22, 2009 meetings of
the Council be accepted and placed on file. Councilmember Puzzello seconded the
motion which carried by a voice vote of eight (8) ayes.
SPECIAL BUSINESS
ANNOUNCEMENT OF OPENING ON TRANSPO BOARD
Council President Dieter made an announcement that there is an opening on the Transpo
Board of Directors. The applicant must be a registered Democrat. He stated that the
Council will be accepting applications until Friday, July 24, 2009. Applications may be
obtained either on-line at the city’s website www.southbendin.gov or in the Office of the
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City Clerk, 4 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana.
RESOLVE INTO THE COMMITTEE OF THE WHOLE
At 7:03 p.m. Councilmember Oliver Davis made a motion to resolve into the Committee
of the Whole. Councilmember Varner seconded the motion which carried by a voice
vote of eight (8) ayes. Councilmember Puzzello, Chairperson, presiding.
Councilmember Puzzello explained the procedures to be followed for tonight’s meeting
in accordance with Article 1, Section 2-11 of the South Bend Municipal Code.
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REGULAR MEETING JULY 13, 2009
Councilmember Puzzello stated that a brochure may be found on the railing in the
Council Chambers explaining those procedures.
PUBLIC HEARINGS
BILL NO. 46-09 PUBLIC HEARING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA APPROPRIATING $955,315.00
OF INDIANA COMMUNITY REVITALIZATION
ENHANCEMENT DISTRICT INCREMENT
FUNDS WITHIN THE INDUSTRIAL
DEVELOPMENT FUND, FUND 434, FOR THE
PURPOSE OF DEVELOPMENT AND
REDEVELOPMENT WITHIN THE CITY OF
SOUTH BEND STUDEBAKER/OLIVER
COMMUNITY REVITALIZATION
ENHANCEMENT DISTRICT
Councilmember Rouse, Chairperson, Community and Economic Development
Committee, reported that this committee held a Public Hearing on this bill this afternoon
and sends it to the full Council with a favorable recommendation.
Ms. Beth Leonard, Director, Financial & Program Management, Community &
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Economic Development, 12 Floor County-City Building, 227 W. Jefferson Blvd., South
Bend, Indiana, made the presentation for this bill.
Ms. Leonard advised that this bill would appropriate $955,315 from the Industrial
Development Fund, Fund 434, for repayment of the Section 108 Loan for the
Studebaker/Oliver Project. She stated that pursuant to Indiana Code the Advisory
Commission on Industrial Development met on November 8, 2005 and approved
Resolution No. 3-2005 pledging all available CRED Revenues for the repayment of the
Section 108 Loan for the Studebaker/Oliver Project.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak to the Council either in favor of or in
opposition to this bill, Councilmember Dieter made a motion for favorable
recommendation to full Council concerning this bill. Councilmember Kirsits seconded
the motion which carried by a voice vote of eight (8) ayes.
BILL NO. 47-09 PUBLIC HEARING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, AMENDING CHAPTER 17,
ARTICLE 1, SECTION 17-4 OF THE SOUTH
BEND MUNICIPAL CODE CONCERNING
INFLOW TO THE CITY’S SANITARY SEWER
SYSTEM
Councilmember Oliver Davis, Chairperson, Utilities Committee, reported that this
committee held a Public Hearing on this bill this afternoon and voted to send it to the full
Council with a favorable recommendation.
Mr. Jack Dillon, Director, Environmental Service, 3113 Riverside Drive, South Bend,
Indiana, made the presentation for this bill.
Mr. Dillon advised that this bill would allow for the revision of Chapter 17, Article 1,
Section 17-4 that relates to the requirement in the City of South Bend’s National
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REGULAR MEETING JULY 13, 2009
Pollutant Discharge Elimination System permit that deals with clear water inputs into the
City of South Bend’s sewer system.
This being the time heretofore set for the Public Hearing on the above bill, proponents
and opponents were given an opportunity to be heard.
There being no one present wishing to speak to the Council either in favor of or in
opposition to this bill, Councilmember Dieter made a motion for favorable
recommendation to full Council concerning this bill. Councilmember Oliver Davis
seconded the motion which carried by a voice vote of eight (8) ayes.
RISE AND REPORT
Councilmember Oliver Davis made a motion to rise and report to the full Council.
Councilmember Dieter seconded the motion which carried by a voice vote of eight (8)
ayes.
ATTEST: ATTEST:
_________________________ _________________________
John Voorde, City Clerk Ann Puzzello, Chairperson
Committee of the Whole
REGULAR MEETING RECONVENED
Be it remembered that the Common Council of the City of South Bend reconvened in the
Council Chambers on the fourth floor of the County-City Building at 7:16 p.m. President
Derek D. Dieter presided with eight (8) members present.
BILLS – THIRD READING
ORDINANCE NO. 9943-09 AN ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA
APPROPRIATING $955,315.00 OF INDIANA
COMMUNITY REVITALIZATION
ENHANCEMENT DISTRICT INCREMENT
FUNDS WITHIN THE INDUSTRIAL
DEVELOPMENT FUND, FUND 434, FOR THE
PURPOSE OF DEVELOPMENT AND
REDEVELOPMENT WITHIN THE CITY OF
SOUTH BEND STUDEBAKER/OLIVER
COMMUNITY REVITALIZATION
ENHANCEMENT DISTRICT
This bill had third reading. Councilmember White made a motion to pass this bill.
Councilmember Oliver Davis seconded the motion which carried. The bill passed by a
roll call vote of eight (8) ayes.
ORDINANCE NO. 9944-09 AN ORDINANCE OF THE COMMON COUNCIL
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REGULAR MEETING JULY 13, 2009
OF THE CITY OF SOUTH BEND, INDIANA,
AMENDING CHAPTER 17, ARTICLE 1,
SECTION 17-4 OF THE SOUTH BEND
MUNICIPAL CODE CONCERNING
INFLOW TO THE CITY’S SANITARY SEWER
SYSTEM
This bill had third reading. Councilmember Rouse made a motion to pass this bill.
Councilmember Oliver Davis seconded the motion which carried. The bill passed by a
roll call vote of eight (8) ayes.
RESOLUTIONS
BILL NO. 09-48 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND
DESIGNATING CERTAIN AREAS WITHIN THE
CITY OF SOUTH BEND, INDIANA,
COMMONLY KNOWN AS PORTAGE PRAIRIE
DEVELOPMENT, LOT 2 AN ECONOMIC
REVITALIZATION AREA FOR PURPOSES OF
A NINE-YEAR REAL PROPERTY TAX
ABATEMENT FOR WAGGONER FARM
DEVELOPMENT, L.P. (ONTARIO PARTNERS,
L.P.)
Councilmember Varner made a motion to continue this bill until the July 27, 2009
meeting of the Council at the request of the petitioner. Councilmember Henry Davis
seconded the motion which carried by a voice vote of eight (8) ayes.
BILL NO. 09-49 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA
PROPOSING AND VOTING IN FAVOR OF AN
ORDINANCE OF THE ST. JOSEPH COUNTY
INCOME TAX COUNCIL IMPOSING A
PROPERTY TAX RELIEF LOCAL OPTION
INCOME TAX
BILL NO. 09-50 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA
PROPOSING AND VOTING IN FAVOR OF AN
ORDINANCE OF THE ST. JOSEPH COUNTY
INCOME TAX COUNCIL IMPOSING A PUBLIC
SAFETY LOCAL OPTION INCOME TAX
BILL NO. 09-51 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA
PROPOSING AND VOTING IN FAVOR OF AN
ORDINANCE OF THE ST. JOSEPH COUNTY
INCOME TAX COUNCIL INCREASING THE
COUNTY ECONOMIC DEVELOPMENT
INCOME TAX (CEDIT)
Councilmember Varner made a motion to combine these bills for purposes of Public
Hearing. Councilmember Rouse seconded the motion which carried by a voice vote of
eight (8) ayes.
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REGULAR MEETING JULY 13, 2009
Councilmember White, Vice-Chairperson, Personnel and Finance Committee, reported
that this committee met this afternoon and voted to send Bill Nos. 09-49; 09-50 and 09-
51 to the full Council with no recommendation.
Councilmember Kirsits disclosed that he is a Member of the South Bend Fire
Department. He stated that he has on file a Uniform Conflict of Interest form with the
City Clerk, County Clerk and the State of Indiana. He stated that upon discussion with
Council Attorney Kathleen Cekanski-Farrand it was determined that there is no conflict
of interest.
Councilmember Dieter disclosed that he is a Member of the South Bend Police
Department. He stated that he has on file a Uniform Conflict of Interest form with the
City Clerk, County Clerk and the State of Indiana. He stated that upon discussion with
Council Attorney Kathleen Cekanski-Farrand it was determined that there is no conflict
of interest.
RESOLUTION NO. 3979-09 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA
PROPOSING AND VOTING IN FAVOR OF AN
ORDINANCE OF THE ST. JOSEPH COUNTY
INCOME TAX COUNCIL IMPOSING A
PROPERTY TAX RELIEF LOCAL OPTION
INCOME TAX
WHEREAS, the Common Council of the City of South Bend, Indiana recognizes that
property tax relief is in the public interest of the City of South Bend, Indiana; and
WHEREAS, the Indiana General Assembly recently authorized local
governments to impose a property tax relief local option income tax for the purpose of
providing local property tax replacement credits at a uniform rate to all taxpayers in the
City of South Bend, St. Joseph County, Indiana (I.C. § 6-3.5-6-32(f)(1)); and
WHEREAS, it is in the best interest of the City of South Bend to adopt a property
tax relief local option income tax for the purpose of providing local property tax relief
credits at a uniform rate to all taxpayers in the City of South Bend, St. Joseph County,
Indiana.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA, as follows:
SECTION I. The Common Council of the City of South Bend, Indiana, proposes
and casts its 40.59 votes in favor of the following Ordinance of the St. Joseph County
Income Tax Council:
AN ORDINANCE OF THE INCOME TAX COUNCIL
OF ST. JOSEPH COUNTY, INDIANA IMPOSING A
PROPERTY TAX RELIEF LOCAL OPTION
INCOME TAX IN ST. JOSEPH COUNTY, INDIANA
STATEMENT OF PURPOSE AND INTENT
The St. Joseph County Income Tax Council
(Council) acknowledges that property tax relief is in the
public interest of St. Joseph County, Indiana citizens. The
Indiana legislature in 2007 provided a mechanism under
Ind. Code § 6-3.5-6-32 (amended in 2008) to grant property
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REGULAR MEETING JULY 13, 2009
tax relief by imposing an income tax, the revenue from
which is available for local property tax replacement credits
at a uniform rate to all taxpayers in the County. The
Council also acknowledges that some taxpayers in St.
Joseph County, Indiana who do not pay the tax rate
imposed by this ordinance will receive a property tax
replacement credit that is funded with tax revenue from the
tax rate under this Section. Nonetheless, the effect of this
ordinance is beneficial to all St. Joseph County citizens
who will have overall reduced property taxes.
The St. Joseph County Tax Council determines the
best estimate of the property tax credits to be provided to
all property taxpayers as a result of this ordinance is as
follows:
Homesteads: $11,517,000.00
Other residential property: $3,465,000.00
Industrial property: $1,803,000.00
Agricultural property: $320,000.00
Commercial property: $6,102,000.00
NOW, THEREFORE, BE IT ORDAINED BY THE ST.
JOSEPH COUNTY, INDIANA INCOME TAX
COUNCIL, as follows:
SECTION I. The St. Joseph County Indiana
Income Tax Council hereby imposes a property tax relief
local option income tax (LOIT) at the rate of One Half
Percent (0.5%) pursuant to Ind. Code § 6-3.5-6-32 for the
purpose of providing local property tax replacement credits
at a uniform rate to all taxpayers in St. Joseph County,
Indiana, as provided by I.C. 6-3.5-6-32(f)(1).
SECTION II. The St. Joseph County Indiana
Income Tax Council also acknowledges that some
taxpayers in St. Joseph County who do not pay the tax rate
imposed by this ordinance will receive a property tax
replacement credit that is funded with tax revenue from the
tax rate under this Section.
SECTION III. If any portion of this Ordinance is
declared to be unconstitutional or invalid for any reason,
such determination shall not affect the remaining portions
of this Ordinance.
SECTION IV. This Ordinance shall be in full force
and effect from and after October 1, 2009 upon its passage
by the St. Joseph County, Indiana, Income Tax Council.
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SECTION II. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approval by the Mayor.
s/Derek D. Dieter
Member of the Common Council
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REGULAR MEETING JULY 13, 2009
RESOLUTION NO. 3980-09 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA
PROPOSING AND VOTING IN FAVOR OF AN
ORDINANCE OF THE ST. JOSEPH COUNTY
INCOME TAX COUNCIL IMPOSING A PUBLIC
SAFETY LOCAL OPTION INCOME TAX
WHEREAS, the Common Council of the City of South Bend, Indiana recognizes public
safety as a priority for citizens of South Bend, and acknowledges the need to maintain
effective public safety despite expected loss of property tax revenue; and
WHEREAS, the Indiana General Assembly recently authorized local
governments to impose a public safety local option income tax (Public Safety LOIT)
provided certain conditions are met, which authority is codified at Ind. Code § 6-3.5-6-
31; and
WHEREAS, there is a financial need to provide a Public Safety LOIT pursuant to
I.C. 6-3.5-6-31.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA, as follows:
SECTION I. The Common Council of the City of South Bend, Indiana, proposes
and casts its 40.59 votes in favor of the following Ordinance of the St. Joseph County
Income Tax Council:
ORDINANCE NO.
AN ORDINANCE OF THE INCOME TAX COUNCIL
OF ST. JOSEPH COUNTY, INDIANA IMPOSING A
PUBLIC SAFETY LOCAL OPTION INCOME TAX
IN
ST. JOSEPH COUNTY, INDIANA
STATEMENT OF PURPOSE AND INTENT
The St. Joseph County Income Tax Council
recognizes that maintaining public safety is a local
government priority. The severe loss in property tax
revenues resulting from HEA 1001 threatens to
compromise and challenge local government's ability to
provide high quality public safety to citizens of St. Joseph
County, Indiana.
By enacting Indiana Code 6-3.5-6-31, the Indiana
legislature has provided a means for local government to
help maintain quality public safety through imposition of a
public safety local option income tax (Public Safety LOIT).
Pursuant to Indiana Code 6-3.5-6-31, the members of the
St. Joseph County Income Tax Council hereby adopt and
impose such a tax in St. Joseph County effective October 1,
2009.
Imposition of the Public Safety LOIT in St. Joseph
County meets all requirements of I.C. 6-3.5-6-31(b) and
(c), in that St. Joseph County recently imposed a property
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REGULAR MEETING JULY 13, 2009
tax relief Local Option Income Tax (LOIT) of at least One
Quarter Percent (0.25%), and the public safety tax to be
imposed does not exceed 0.25%.
NOW, THEREFORE, BE IT ORDAINED BY THE
ST. JOSEPH COUNTY, INDIANA INCOME TAX
COUNCIL, as follows:
SECTION I. The St. Joseph County, Indiana
Income Tax Council imposes the public safety local option
income tax (Public Safety LOIT) on the taxpayers of St.
Joseph County, Indiana at a rate of 0.25% effective October
1, 2009.
SECTION II. This ordinance meets all
requirements of Ind. Code § 6-3.5-6-31(b).
SECTION III. If any portion of this Ordinance is
declared to be unconstitutional or invalid for any reason,
such determination shall not affect the remaining portions
of this Ordinance.
SECTION IV. This Ordinance shall be in full force
and effect from and after October 1, 2009 upon its passage
by the St. Joseph County, Indiana, Income Tax Council.
SECTION II. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approval by the Mayor.
s/Derek D. Dieter
Member of the Common Council
RESOLUTION NO. 3981-09 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA
PROPOSING AND VOTING IN FAVOR OF AN
ORDINANCE OF THE ST. JOSEPH COUNTY
INCOME TAX COUNCIL INCREASING THE
COUNTY ECONOMIC DEVELOPMENT
INCOME TAX (CEDIT)
WHEREAS, the St. Joseph County Income Tax Council imposed the County Economic
Development Income Tax (CEDIT) on the taxpayers of St. Joseph County, Indiana
effective July 1, 1997 at a rate of Two-Tenths of One Percent (0.2%); and
WHEREAS, State law would authorize a further CEDIT increase of 0.2% which
is necessary to continue providing essential services to the public of South Bend and St.
Joseph County, Indiana.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA as follows:
SECTION I. The Common Council of the City of South Bend, Indiana, proposes
and casts its 40.59 votes in favor of the following Ordinance of the St. Joseph County
Income Tax Council:
AN ORDINANCE OF THE INCOME TAX COUNCIL
OF ST. JOSEPH COUNTY, INDIANA INCREASING
THE COUNTY ECONOMIC DEVELOPMENT
INCOME TAX IN ST. JOSEPH COUNTY, INDIANA
(CEDIT)
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REGULAR MEETING JULY 13, 2009
STATEMENT OF PURPOSE AND INTENT
The St. Joseph County Income Tax Council
(Council) acknowledges that a County Economic
Development Income Tax (CEDIT) was initially imposed
on the taxpayers of St. Joseph County, Indiana effective
July 1, 1997 at a rate of Two-Tenths of One Percent
(0.2%). The County Economic Development Income Tax
may be increased by the St. Joseph County Tax Council
pursuant to Ind. Code § 6-3.5-7-5(d). At this time, an
increase in CEDIT by an additional Two-Tenths of One
Percent 0.2% (or an effective rate of Four-Tenths Percent
(0.4%) is necessary to maintain services essential services
for the citizens of St. Joseph County as a result of
significant revenue loss due to the Indiana legislature's
2008 cap on property tax rates throughout the State.
NOW, THEREFORE, BE IT ORDAINED BY THE
ST. JOSEPH COUNTY, INDIANA INCOME TAX
COUNCIL, OF ST. JOSEPH COUNTY, INDIANA as
follows:
SECTION I. Effective October 1, 2009, the St.
Joseph County Indiana Income Tax Council increases by an
additional Two-Tenths of One Percent (0.2%) the County
Economic Development Income Tax (CEDIT) imposed
upon the taxpayers of St. Joseph County, Indiana, for an
effective CEDIT rate of Four-Tenths Percent (0.4%).
SECTION II. If any portion of this Ordinance is
declared to be unconstitutional or invalid for any reason,
such determination shall not affect the remaining portions
of this Ordinance.
SECTION III. This Ordinance shall be in full force
and effect from and after October 1, 2009 upon its passage
by the St. Joseph County, Indiana, Income Tax Council.
******
SECTION II. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approval by the Mayor.
s/Derek D. Dieter
Member of the Common Council
Council President Dieter read into the record the following procedures for this evening’s
meeting:
South Bend Common Council Public Hearing Procedures for Bill Nos. 09-49, 09-50 and
09-51
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Council President Dieter will ask for a motion to combine Bill Nos. 09-49, 09-50
and 09-51 for purposes of public hearing
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Upon the passage of the above motion, City Clerk John Voorde will read the titles
of each Bill
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REGULAR MEETING JULY 13, 2009
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A Committee Report will be given by the Council Member who chaired the
committee to which they were referred for advisory reviews and
recommendations
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Conflict of interest disclosures by any Council Members will be made of record
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Formal presentation on the Bills will be made, which is not subject to a time limit
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Any member of the public may speak for a period of no more than five (5)
minutes per individual. Persons speaking in favor will speak first, and the persons
speaking in opposition speak at the close of those who spoke in favor. The
following procedures apply to all members of the public wishing to address the
Common Council:
Each person must PRINT their name and address on the sign in sheet near the
podium
Each person must say their name and address into the microphone for the record
Each person may speak for no more than five (5) minutes
No person may impugn the motive of another or make personal attacks
All remarks must be relevant to the subject matter of the Bills under
consideration
Public comments shall not be repetitive of information previously given to
the Council
All persons must observe the highest standards of dignity, propriety,
courtesy, respect & decorum
No person may approach the Council beyond the podium area without
permission of the Chair
No member of the public may speak twice without proper vote of the Council
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The Council President, as the presiding officer, shall preserve order and decorum;
and when necessary may seek the assistance of the Sergeant-at-Arms in the
enforcement of the Council’s procedures
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The public portion in opposition is limited to the amount of time spent in favor or
30 minutes, whichever is greater
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Five (5) minute rebuttal period for the formal presenter of the Bills follows those
who spoke in opposition
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Public hearing is then closed and the Council Portion begins where the Council
Members discuss and debate the Bills
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Motions by the Council followed by Roll Call votes
Council President Dieter thanked everyone in attendance tonight. He stated that this is a
very important issue and there are no easy solutions for the residents of South Bend or the
members of this Council.
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Mayor Stephen Luecke, 14 Floor County-City Building, 227 W. Jefferson Blvd., South
Bend, Indiana, made the presentation for these bills.
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REGULAR MEETING JULY 13, 2009
Mayor Luecke advised that the City of South Bend faces a sever revenue shortfall in
2010 due to the effect of the property tax caps enacted under HEA 1001. Additionally,
during the 2009 budget meetings it was learned that the impact would be devastating and
that all departments would be affected. He stated that significant reductions to budgets
have been made already, including $3 million dollars in 2009 and a savings of almost $4
million in 2008. He stated that the city will continue to make further cuts and find more
efficiencies, but will not get to a $22 million reduction without decimating key services
and reducing the quality of life in the community. Mayor Luecke noted that the State
provided local government with one option to replace revenues lost to the caps and enact
local option income taxes. He stated that the two LOIT taxes sought to be adopted
consist of a public safety tax of 0.25% and a property tax relief tax of 0.5%. By statute,
the revenue derived from the public safety LOIT must be deposited into a separate fund
and must be appropriated “only for public safety purposes.” The largest cost component
of South Bend’s general fund budget is for public safety, so adoption of this LOIT will
prevent drastic reductions in sworn officers in the police and fire departments. The
property tax relief LOIT will be used to provide property tax credits uniformly to all
types of property in the county. He noted that in order to enact the 0.25% public safety
LOIT, State law requires that a property tax relief LOIT of at least 0.25% be enacted.
The third measure would adopt the 0.2% County Economic Development Income Tax
which remains available in St. Joseph County. The CEDIT funds can now be used for
general operations of government and are n longer restricted to economic development or
capital purposes. In total, these three taxes would provide about $16 million relief to the
revenue lost to the caps. The combined rate would be 0.95% and these taxes would then
provide relief for schools, parks and libraries, as well as for city and county government.
He stated that they will still need to find savings and efficiencies of approximately $6
million for 2010. In addition to developing additional efficiencies and savings in the
delivery of services, they will continue to attract new jobs and investment to South Bend
and look for opportunities to partner with other units of government and the private
sector. Mayor Luecke stated that resolving these revenue shortfalls will take many multi-
pronged initiatives, including developing new revenue streams. He stated that the
alternative is to drastically reduce key services that the residents and businesses of South
Bend demand. He noted that the survey that was taken showed that the residents of
South Bend demand keeping current services at the level they are now and even
challenged South Bend with doing more. He stated that he believes that it is in the City’s
best interest to implement these local income taxes. He noted that these taxes would stay
local and not go to the State. He wanted to remind the Council of the many initiatives
already in place to streamline local government. They have been engaged in these efforts
for a number of years and since the year 2000 have reduced the City of South Bend’s full
time employment staffing by 121 positions. That is about 9½ percent of the workforce at
that time. They have reduced take home cars, code inspectors now drop their cars off at
the former Bureau of Housing lot, and they pick them up when they come in driving their
personal cars, drive the city car for their inspections, drop them off and go home in their
personal cars. Mayor Luecke stated that he and other department heads have turned in
their city owned vehicles. He stated that they are re-evaluating other take home cars in
the City of South Bend and will continue to reduce the number of take home cars in the
fleet. He stated that they have looked at various initiatives to consolidate operations in
the City of South Bend for instance the Park Department does now most of the city’s
mowing. They do not only mowing of the parks but also mowing for Code Enforcement
and the Redevelopment Commission. They have used technology to enable the city to
reduce staffing and to be able to reduce cost and improve efficiency in the delivery of
services. He stated that as they look to the benefits of City employees, they have cut the
merit bonus program which had been in effect to reward extraordinary work practices by
employees. In 2010, they will be eliminating the City’s contribution to the flexible
spending plan, this was a $500 per employee contribution that helped to pay for medical
costs, dental, eye and child care costs. He stated that they wished that they could
continue to do that but the budget is such that that will not be the case. There were no
raises for non-bargaining employees in 2009. He stated that he along with department
heads have taken a 5% salary deduction for 2009. In 2010 they will be moving to an
80/20 insurance program for all employees, the 90/10 option will no longer be available
to the City of South Bend Employees. They have had to eliminate a number of City
initiatives that have been good for the community, but are not core city services. The
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REGULAR MEETING JULY 13, 2009
shared cost curb and sidewalk program; the commercial corridor program that have made
significant improvement to the entrances to the City of South Bend; the after school
support that the City had provided; support for some of the social services group in town,
those have all gone by the wayside. In addition, they continue to look toward technology
for energy savings and for efficiencies in the delivery of service. He stated that they have
changed all the traffic signals to LED lighting, saving approximately $200,000 in energy
costs. They have looked to a more efficient method of using methane at the Waste Water
Treatment Plant, again a significant amount of energy savings there. The grid computing
system in partnership with the University of Notre Dame is helping to reduce heating cost
at greenhouse and conservatories. He stated that they expect to technology in their
combined sewers and they meet the long term control plan needs to reduce cost long term
for the rate payers in that regard. So there are many initiatives that have been undertaken,
earlier this year, the Council approved the reduction in 2009 Budget of approximately 3
million dollars, in 2008, with fine oversight by department heads they under spent the
budget by 4 million dollars which gave some reserves to be able to carry into this year to
help meet the significant lose of revenue for this year as well. He stated that he
understands that this is a difficult decision in difficult times for many families in St.
Joseph County, certainly in the larger region and throughout the nation. Nevertheless,
from his perspective the only things worst than enacted a local income tax tonight would
be no enacting a local income tax tonight because of the dire cuts in services that would
need to be done to live within the budget of the 22 million dollars of lost revenue. He
urged the Council to vote favorably.
Councilmember Henry Davis asked if cuts have been made for ten (10) years, how long
has this circuit breaker HEA 1001 been enacted.
Mayor Luecke stated that HEA 1001 was enacted in 2008, so the significant loss of
revenue do to the property tax caps were understood in 2007 with some discussion about
property tax in 2008 when it became official and in 2009 and 2010 are when the full
impact of the caps will take place.
Councilmember Henry Davis asked if the cuts that were made from 2000 to 2007, are as
significant as what is being experienced now?
Mayor Luecke stated certainly. If they had not made those cuts the city would have been
in a much direr situation than they are. He pointed out that his administration and
department heads have looked to find efficiencies in the delivery of services for a number
of years, not driven just by the HEA 1001, but driven by the City’s desire to provide the
best services at the best costs for the residents.
Councilmember Rouse asked if the total cuts would equal around 200 people being cut
form the workforce.
Mayor Luecke stated that if there is no new revenue, the projection is that the city would
have to cut about 200 full time employees from the payroll.
Councilmember Rouse asked the Mayor to reiterate those services, facilities, good and
services that would also have to be cut.
Mayor Luecke stated that this is not a final list of cuts because the Council will need to
review and act on the 2010 budget and there will be further discussion with regard to that.
The cuts are across the board, all departments will participate. The Mayor’s Office will
have a 30% cut; as well as Legal; Code; Administration & Finance; Police, Fire and
Parks, with Police Fire and Parks being the largest departments that the City has in the
property tax supported funds. He stated that it has been projected in the Police
Department they would have to have nineteen (19) fewer police officers and well as
eliminating twelve (12) civilian positions. The Fire Department would have forty-five
(45) fewer fire fighters. Parks and Recreation would look at twenty-seven (27) fewer
employees, and see some facility closings as well. The attempt was to look at the budget
for 2010 and be able to keep year round facilities open, seasonal facilities would be the
ones that would suffer the brunt such as city pool would close at Potawatomi along with
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REGULAR MEETING JULY 13, 2009
the Kennedy Water Playground. The East Race Water Way would close, lighted tennis
and basketball courts would close, the greenhouse and conservatories would potentially
be closed, the Howard Park Ice Rink, Newman Recreation Center, and restroom facilities
at the parks. Mayor Luecke stated that one of the options is that if they did not want to
impact those facilities some would be to look at the zoo. The budget as he anticipates it
at this point would contemplate keeping the zoo open, but again there are trade-offs when
they begin to look at how they can live within the budget. Some of the programming at
the recreation centers would decrease and lose some staffing there. They would eliminate
the learn to swim programs that are currently open, reduce hours at the recreations
centers, eliminate the summer recreation and lunch programs. In the Department of
Public Works most of the divisions are supported by user fees, but what has been done
with Public Works is where there are positions in the general fund that are actually
supporting Public Works activities to pick up some of those salary costs out of Public
Works. At the Morris Performing Arts Center fortunately the staff there has done an
excellent job there of coming close to breaking even, so they expect to continue to be
open and to operate but would have to not rely on a subsidy of tax dollars any longer.
These are some examples of the dire decisions that await the city.
Councilmember Rouse asked Mayor Luecke what those cuts and reductions would do to
the future growth and economic development in the City of South Bend.
Mayor Luecke stated that it would be an anchor. It would make it much more difficult as
they look to attract new investment to the community. He stated that is one of the
frustrations because there is so many great things going on in South Bend with
Innovation Park; Ignition Park coming on line; Eddy Street Commons; development
Downtown and to have to reduce services to this level would make it very difficult to
maintain that momentum. He stated that the quality of life for individuals would be
diminished. Mayor Luecke stated that they held Town Hall Meetings and the
overwhelming response from the Residents was that they wanted the City of South Bend
to continue services and the same or increased level of service.
Councilmember Dieter asked Mayor Luecke to state that the reason for the income tax as
opposed to a Hotel-Motel or Food & Beverage tax.
Mayor Luecke advised that he has lobbied the State Legislature, what seems to him like
continuously for the last three (3) years to allow local government a variety of taxes that
would be able to help draw money from the many visitors that come to St. Joseph County
each year and the one tool that the legislature has provided to local government is to
increase only local income taxes. That is why this initiative is brought forth tonight.
Councilmember White asked the Mayor to respond to the many allegations that the cuts
and reductions are only scare tactics. She also asked about using TIF monies and the
Rainy Day Fund.
Mayor Luecke advised that there have been numerous allegations that these cuts and
reductions are scare tactics. He stated that it is real that the City of South Bend is going
to lose $22 million dollars of property tax revenue next year because of the caps. He
stated that he is well aware that they have become too reliant on property taxes. He
stated that he doesn’t dispute that, however, it would have been helpful if the city would
have been allowed more time to phase into the cuts and given more options for revenue
streams to replace some of those dollars that the city is going to be losing to the caps. He
stated that the City of South Bend has had studies done by Umbaugh & Associates an
accounting firm that has a strong reputation around the state. Crowe, Horwath & Assoc.,
had done a study for St. Joseph County, along with the Legislative Service Agency (LSA)
giving projections and all three of them are similar in terms of the loss of revenue that
they project. He stated that it is not just himself making these numbers up; these are
numbers that have been verified by accounting firms and by the LSA. In terms of the
proposal to live within those means, it costs money for the services that the city provides,
whether it’s police, fire and parks or whether it’s an engineer who design a sewer lateral
so that they don’t have to pay an outside firm to do that work, or an attorney who does
collection work for the city, code enforcement officials, all those cost money and what
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REGULAR MEETING JULY 13, 2009
the city is proposing in the cuts that have been mentioned is how the city feels that they
can live within that budget. He stated that as much as he would like, he cannot leave any
department untouched, because each department will be impacted by the loss of revenue.
He stated that to look at a reality check, just look at the City of Muncie, where the Mayor
there had to lay off forty (40) firefighters because of the caps and loss of revenue to those
caps for the City of Muncie. He stated that he has met with Mayor’s all across the State,
and all are looking at reductions in force, laying employees off and finding ways to deal
with the significant lost of revenue in their budgets. In terms of the TIF Districts, they
generate dollars that the city captures to spur economic development in the community.
He stated that they have had great success with that such as downtown, and in the airport
industrial area. He stated that by expanding the airport area, they are now able to do
some additional investment on the Westside in LaSalle Square; Studebaker Corridor; and
Ignition Park. The dollars generated there are meant to reinvest in those areas, to bring
jobs and to bring growth to the community. He stated that they intend to continue to do
that because they think that is a big part of how ultimately long term the city can solve
this $22 million dollar shortfall that the city will be experiencing. He stated that the City
has allocated $1.2 million dollars from the Airport TIF to pay on the bond issue to pay for
the new headquarters for the police and fire departments. Those are dollars that now do
not have to be taken out of the general fund or out of COIT or EDIT’s existing dollars
and freeze up dollars to help the city maintain staffing in general fund positions and park
& recreation positions. TIF Districts themselves are suffering a loss of revenue because
of the property tax caps so as all those are factored into play, the TIF’s are contributing to
resolving the issue before the City, but there are important investments that the City
needs to continue to make in those TIF Districts to attract new jobs to the community.
He stated that in terms of the Rainy Day Fund and the reserves that have been built up are
good business practice. It is important to have reserves, it’s critical for cash flow issues.
He stated that as the Council is well aware in a good year, the City sees the property tax
distributions twice a year, once in spring and once in fall, and needs to make payroll in
between those times those reserves allow the city to meet it’s ongoing cash flow needs.
Rainy Day funds are set aside for specific purpose and that is to be able to be available in
the case of an emergency. Such as if a Tornado should strike the City of South Bend or if
there were to be some horrific outbreak in the city and would have some extraordinary
costs, the city would have the dollars available to do that. The Rainy Day Fund has been
used because of the particularly late distributions of property tax and economic
development taxes and other taxes that support the city’s revenues. Mayor Luecke stated
that he is not really proposing those monies be used to reduce the $22 million dollar
shortfall.
Councilmember Oliver Davis asked if the City has looked into privatizing some services?
Mayor Luecke stated that he had looked at privatizing as an opportunity and explore on a
case by case basis, then make what he feels is the best decision for the customers. In
some instances they have privatized services, with the management of Century Center; a
private firm was hired to run Century Center. In terms of Solid Waste Collection it was
decided years ago to provide that service and still believes that the value that the
customer and the City received from hiring their own employees and using City
equipment is a much better value for the customers as opposed to bidding out for those
services. He stated that the City of Mishawaka just bid out their trash service and South
Bend’s rates are very competitive with those.
Councilmember Oliver Davis asked Mayor Luecke about take homes and how does that
benefit the City?
Mayor Luecke stated that the cars that were owned were sold, some cars were leased and
were moved down the fleet and replaced an older aging vehicle that would have needed a
new lease. Basically, the City is reducing the number of vehicles in its inventory. He
stated that there is more work to be done in this area. He stated that they are continuing
to look at whittling down the numbers in the fleet and will make progress over the next
year.
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REGULAR MEETING JULY 13, 2009
Councilmember Oliver Davis asked if there was any more feedback into getting sponsors
for the Parks?
Mayor Luecke stated that the Parks Department is actively considering the creation of a
Parks Foundation. Which would supplement revenues for parks, and are in the process of
requesting an interview with a number of people throughout the community to get
feedback on that, but as they looked to other communities, they see that there are some
Park Foundations that are able to raise money privately and initiate some of those
discussions on sponsorship more readily than a governmental unit can.
Councilmember Rouse stated that one of the criticisms that they hear about South Bend is
that it has a disproportionate number of not-for-profits.
Mayor Luecke stated that as a county seat, generally all county seats have a higher
percentage of governmental usage. He stated that South Bend is fortunate enough to
have two wonderful medical facilities that are not-for-profit in this community that
provide great healthcare for the residents. He stated that South Bend has great
educational institutions that provide a great service and are know nationally for this area.
Not-for-profits are given that status for a reason, because they provide some benefit to the
community. It is really a decision at the State Level to give that not-for-profit status, they
do provide those services to the community and if they had to pay for with tax dollars
would certainly cost a great deal of money. Mayor Luecke stated that as they are shifting
from a primarily reliance on property taxes to a balanced reliance between property taxes
and local income taxes, the not-for-profits actually end up paying more of their own way,
because obviously the employees that they hire will be paying those local income taxes
just as everyone else does. If fact, some of the not-for-profits, some of the educational
institutions and the health care institutions pay some pretty good salaries, so there will be
contributions made in that regard. He stated that it is certainly a challenge for South
Bend and acknowledged that the voluntary contribution recently made by the University
of Notre Dame to the City of South Bend, St. Joseph County, Mishawaka and Roseland.
He stated that it was a thoughtful and generous contribution on their part. He stated that
the City appreciates the assistance although it does not come anywhere near meeting the
$22 million dollar shortfall, but he certainly appreciates the contribution. He stated that
some of the other not-for-profits have in fact entered into an agreement as there has been
new development to either pay taxes that had been paid on the property before they
acquired it so that there is not a loss of revenue, or to make some payments similar to
what their taxes would be in recognition of the services that they receive. He stated that
he has had discussions with some of those not-for-profits that have the capacity he
believes to help carry some of the costs of providing services to the residents of South
Bend.
Councilmember Henry Davis asked what departments have been asked to reduce their
number of take home cars?
Mayor Luecke stated that they are looking at all departments, but for instances in Public
Works, the City may have similar major pieces of equipment owned by two different
divisions and as it is analyzed they will look to see if that piece of equipment can be
shared. In particular for vehicles that have only a few hundred dollars of operational use
a year, so that is one of the areas that is being looked at. He stated that they will review
the police take home cars, when they initiated that program in his first year in office as
Mayor, he believed that they actually believed there to be a cost savings from the take
home program, because the other way to do it is that you are running cars 24 hours a day,
and wear them out pretty quickly, and have to buy them more frequently. They will re-
analyze that to see if they are still correct. He stated that it is his expectation that the
costs will be pretty much the same versus running cars 24 hours, if that’s the case, then
the obviously the side benefits of the take home program would indicate to the City in
keeping that program.
Councilmember Henry Davis stated that he appreciates the contribution that Notre Dame
is giving to the City of South Bend, but wanted to remind everyone that they tried to pass
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REGULAR MEETING JULY 13, 2009
legislation to make private institution pay for services for when dignitaries and other
officials come to town and use police, fire and other city services, but it just did not pass.
Councilmember Puzzello asked if a person works in South Bend and lives in Granger
would the City of South Bend benefit from this by enacting LOIT.
Mayor Luecke stated that the taxes that are proposed are countywide taxes, so that
everyone who lives in St. Joseph County would pay those taxes, it is not paid by where
you work but by where you live. So the taxes would be collected on a countywide basis
and distributed by formula by the various units of government. He stated that in public
safety it is split amongst those units of government that actually have police or fire
departments, not every unit of government will receive public safety LOIT distributions.
The property tax relief will be distributed county wide and benefit on percentage of tax
levy.
Councilmember Varner advised that it is true that the not-for-profit pay good salaries and
it is true that many of them work in South Bend, but if in fact that person lives in Granger
yes it is collected county wide but the distribution formula from the State back to the
County is based on where they live rather than where they work.
Mayor Luecke stated that the distribution is really based upon percentage of levy by each
unit of government. South Bend’s levy compared to St. Joseph County levy compared to
Mishawaka’s levy is how the full amount is collected county wide ends up being
distributed. So it’s really neither by where you live or where you work it’s by percentage
of cost of government.
Councilmember Varner asked if there is a net gain to the city?
Mayor Luecke stated that he believes there is.
Councilmember Varner stated that it will be in dollars, but we just don’t know the
formula yet.
Councilmember Rouse asked if a person works in St. Joseph County, specifically South
Bend, and lives in Elkhart, will they have to pay the tax?
Mayor Luecke stated that they will not pay the tax. On the other hand if they live in St.
Joseph County and work in Elkhart, they do pay the tax.
Councilmember Kirsits ask the Mayor to speak to some of the area Counties that have
Local Option Income Tax.
Mayor Luecke stated that Elkhart County has 1 ½ % LOIT; they enacted their CAGET
when it was first available so they actually had a LOIT twenty (20) years longer than
South Bend, providing property tax relief as well as additional dollars for government.
He stated that in comparison as a range of income taxes with the state for instance:
Pulaski County is the highest local income tax with a rate of 3.13%; Jasper 3.05%;
Wabash 2.9%; Morgan 2.72%; Parke 2.55%; Jay 2.45%; Fayette 2.37%; Benton at
2.29%; Brown 2.2%; Warren 2.12%; Walls 2.1%; Montgomery 2.1%. He stated that
there are a variety of counties that range at between 2% and 1 ½ %. He noted that
LaPorte County is at .95%; and Starke County is at 1.06%.
Councilmember Kirsits stated that by no means is St. Joseph County going to be the
highest county for a local option income tax.
The Mayor stated that is correct.
Mayor Luecke stated that South Bend has the same property tax caps as every other
county in the State, so 1 ½ % for homeowners this year, 1% next year, however, the debt
service in the County will be added on top of that for property tax payers. He stated that
he does not know exactly what that will be, he stated that he would guess around .1 or .2
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REGULAR MEETING JULY 13, 2009
percentage additional. However, the City of South Bend is not contributing to that; the
City of South Bend has no property tax based bonds out. He stated that the
Redevelopment Commission does have one property tax based bond that is contributing
minimally at 2% of the total indebtedness in St. Joseph County is due to either South
Bend or the Redevelopment Commission in terms of property tax bonds.
Council President Dieter asked what the average tax payer; homeowner; employed
person would pay?
Mayor Luecke stated that they did four (4) examples of how the .95% additional local
option income tax would affect different tax payers. For a single elderly retiree over 65
years with $17,700 in income, $10,860 from Social Security which is not taxed by either
the State of Indiana or Local Option Income Taxes it would mean an additional $42.00
per year. For a single mother $13,624 income, filing as head of house hold with one
child, it would mean an additional $97.00 dollars per year. For a median income family
making $41, 565; one working parent; filing jointly with two children an additional
$329.00 per year. For a two income family of $64,656.00 filing jointly with three
children would be an additional $524.00 per year. He stated that any of those taxpayers
who are also homeowners would already be receiving property tax breaks both from the
property tax LOIT as well as HEA 1001.
Council President Dieter asked that if passed would it take effect October 1, 2009.
Mayor Luecke reiterated that if passed before the end of July, the tax would take effect
st
October 1, they would start collecting, and the State indicated that they would start
making distributions to St. Joseph County in January 2010.
Councilmember Oliver Davis asked how stimulus dollars from the federal government
play into this whole situation.
Mayor Luecke stated that first stimulus dollars don’t really play a part in this, however,
they are going to receive some dollars that would be available for road work, vacant and
abandoned housing, and there are some stimulus dollars that are going to help with
unemployment compensation benefits and some health care benefits for low-income
individuals. He stated that City is applying for stimulus dollars for energy conservation,
but again it’s not for general operation of government. He stated that it is the City’s hope
to use some of those energy dollars to find ways to save energy costs in City facilities
that will help the budget long-term, but the stimulus dollars themselves cannot
supplement the City’s revenue. He stated that the City is applying for stimulus dollars for
other neighborhood development initiatives and hopeful to get stimulus dollars to put
hydro-electric power plant at the dam in downtown South Bend, that again would provide
some long-term energy savings for the City but nothing that really applies to the $22
million dollar revenue shortfall that the City sees for next year.
Councilmember Varner stated that he wasn’t sure where the numbers came from
Umbaugh, but the numbers that were reported in the South Bend Tribune because of the
additional 1% increase in sales tax, people are paying an additional $177 a family in sales
tax per year.
Mayor Luecke stated that he did not think it was fair to add the state’s tax increase to this
issue.
Councilmember Varner clarified what he was comparing was that most people won’t
think that .95 is a large number, it’s the aggregate burden that people face overall. He
stated that he wasn’t trying to comparing the two, but wanted to give an example.
Mayor Luecke stated that when he looks at his taxes and he invited everyone to do the
same. He stated that his local taxes, combined property taxes plus local income taxes are
about ½ of the state taxes that he pays and about 10% of the federal taxes that he pays
and he thinks that the best bargain that he gets for his money are the local income taxes
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REGULAR MEETING JULY 13, 2009
and local property taxes because they support the schools, libraries, parks, public safety,
economic development, quality of life initiatives that touch lives everyday.
A Public Hearing was held on these Resolutions at this time.
The following individuals spoke in favor:
Mr. Dale Gipson, 220 Wakewa, South Bend, Indiana, stated that he would hate to see the
day that he would have to apologize to his family, friends and visitors that come to South
Bend because the City had to close the zoo, parks and other municipal facilities. He
urged the Council to vote in favor of these bills.
Mr. Keith Branham, 1918 E. Colfax Avenue and works at 220, Dean John Blvd., South
Bend, Indiana, Vice-Chancellor Ivy Tech Community College. He stated that he is
speaking on behalf of the college this evening. He advised that the College endorses the
Mayor’s recommendation for the local option income tax. He stated that the college
believes that it will encourage economic development; enhance the prosperity of the
community; maintain infrastructure and necessary services to sustain a safe, healthy,
attractive community and provide the recreational, education and cultural opportunities
that enrich lives. On behalf of the college and himself, he urged the Council’s favorable
consideration.
Mr. Roger Birdsell, 341 W. Northshore, South Bend, Indiana, commended the Council
and the Mayor for a very thorough study of this issue. He stated that the legislature tried
to do a good thing with the property tax caps, however, they just passed the buck to the
local elected officials to make the very tough decisions of how to manage and cope with
the extremely large deficit and loss of funds from the property tax caps. He stated that
this is a hard decision that has to be made but supports the local option income tax.
Marguerite Taylor, 714 E. Corby Blvd., South Bend, Indiana, urged the Council to pass
the local option income tax. She stated that it would be a tragedy to close the water
parks; zoo and other municipal facilities.
Mr. Marty Wolfson, 809 Park Avenue, South Bend, Indiana, stated that he speaking on
behalf of himself and not an organization. He stated that Mayor Luecke has just giving
testimony on the State of the City. He stated that the State Legislature has given local
government no other option to make up the deficit from the loss in property taxes from
HEA 1001 other than enacted and raising the local option income tax. He stated that
there will be speakers tonight who say now is not the time in this struggling economy.
He stated that the economy is in a very serious recession and people are losing both their
homes and jobs. He stated that he believes those speakers are just as right as well. He
stated what to do? Mr. Wolfson gave four reasons for siding with raising local option
income taxes. First, cutting back on police & fire protection, libraries, parks and other
needed services dramatically undermines the quality of life and makes us all poorer.
Second, making these cuts results in lost jobs, lost wages, and lost benefits that can be
devastating to the families affected. Third, the local option income tax is the only source
of revenue available to the City to prevent these cuts. Fourth, it remains the possibility
and only a possibility that other sources of revenue like an increase in the hotel-motel tax
or an event ticket tax might be allowed by the State Legislature in the future and in that
case they might be able to roll back the income tax increases. He stated that this is a very
difficult decision that needs to be made and respects both sides of the issue. He urged the
Council’s favorable consideration of these bills.
Ms. Becky Williams, 724 W. Washington, South Bend, Indiana, stated that she is a recent
graduate of John Adams High School and has lived in South Bend her entire life. She
stated that she was a member of the Youth Advisory Council under the sponsorship of
Councilmember Karen White. She stated that during her time on the Youth Council she
learned to become involved in local government. Since then HEA 1001 has been enacted
by the State Legislature, and will reduce funding for the SBCSC in the amount of $5
million dollars by 2011. She stated that this is a tremendous loss of revenue for the South
Bend Community School Corporation and will impact the future education of the youth
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REGULAR MEETING JULY 13, 2009
of South Bend. She stated what impacted her the most was her high school graduation
and the number of students who made it through all four years of high school. She stated
that the drop out rate for high school in the SBCSC has been reported as high as 50%.
She stated that is was also reported that 46% of these students are African American. She
stated that the loss of funding for the SBCSC will create a greater drop out rate,
something South Bend cannot afford. Funding cannot change the heart and minds of the
students, but it can give them books to read, teachers that care, programs that help and
support to move forward. She asked the Council to vote favorably on the local option
income tax to maintain and improve the education system.
Mr. Donald Napoli, 304 S. Main Street, South Bend, Indiana, stated that he is the
Director of the St. Joseph County Public Library. He stated that the library knows and
understands what it means to lose a substantial part of operating income. He stated that
they have been preparing for the last 18 months to cope with a nearly $900,000 that is
expected to be lost to the property tax caps this year, and $1.5 million slated to be lost in
2010. He stated that it is impossible to provide the same kinds of services that they have
provided in the past with these kinds of losses of revenue. He stated that they have
reduced 40 positions at the library, a $300,000 reduction in the purchase of new
materials, which can never be recovered, and a 12% reduction in the hours of service. In
the fall of 2009, it is anticipated that the library will reduce their hours of service further.
Overall there will be a 25% reduction at a time when they are busier and more needed
than ever before. He stated that people are waiting in line at the front door before they
are even open. He stated that the library is just one service provided in this county. He
stated that they depend on the essential services provided by the police and fire
departments. He stated that they are grateful for the bike and foot patrol services
provided at the downtown location. He stated that this is not an issue of a City trying to
live within its means it’s an issue of a City trying to survive. He encouraged the Council
to pass the local option income tax.
Mr. David Jarrett, 320/330 E. Jefferson Blvd., South Bend, Indiana, Crowe/Horwath &
Associates, stated that they recruit employees from all over the country and it is
extremely important to the company to have a very vibrant community so that they can
continue to attract people who would want to relocate to the area. He stated that they
support the Mayor and urged the Council for vote in favor of the local option income tax.
Ms. Michelle Beatty, 1251 Oak Ridge Drive, South Bend, Indiana, urged the Council to
pass the local option income tax. She stated that she was born and raised in California
and has lived in South Bend for the past nine years. She stated that in 1978 the citizens
of California passed the infamous “Proposition 13” which reduced property taxes by
millions of dollars. In the short term it seemed like a good idea. Yet, the Cities were hit
hard and basic public services such as public schools, parks, libraries, public beaches and
public transportation have been devastated by the lack of state funding. She stated
growing up she rode her bike to the library which was open five days a week, she stated
that in school she played sports and her best friend was in the band, at the beach there
were life guards every four blocks giving her and her parents and extra sense of safety,
and she rode the school bus everyday, and this was all possible because it was paid for by
property taxes. Since the passing of “Proposition 13” those services have been cut
dramatically. The library is only open two afternoons a week; there is absolutely no
money to purchase new material or computers. Lifeguard services have been cut way
back, fees to public parks have skyrocketed limiting access for many people. She stated
that public schools have cut band, orchestra, and art programs and to play sports can cost
up to $400 to participate. The school buses no longer exist, too expensive. She stated
that South Bend has so much to offer with its zoo, parks, ice rink, libraries, good public
schools, busing, and recreation centers are what make this community great. She stated
that when her friends from California come to visit they envy the public services that
South Bend has to offer. She urged the Council to learn from California’s mistakes and
pass the local option income tax to ensure the residents of South Bend a good quality of
life and safe environment. She stated that it takes courage in this political climate to
stand up and say yes to this much needed tax.
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REGULAR MEETING JULY 13, 2009
Mr. Ivan Blount, 1148 W. Jefferson Blvd., South Bend, Indiana, he stated that as a young
black male growing up in South Bend, he faced many challenges. He stated that with the
significant loss of revenue that the school corporation is going to face in the next couple
of years it is going to make those challenges even more difficult. He stated that the
challenge before the Council is a very difficult one, but must be made and taken very
seriously. He urged the Council favorable consideration.
Mr. Jerry Niezgodski, 2930 Bonds, South Bend, Indiana, stated that he is speaking in
favor of these bills although he is somewhat reluctant for the simple reason that he does
not have sufficient information to determine if the tax increases are enough or too much.
He stated that a business would not be successful going to a bank and asking for capital
investment without providing income statements and proof of profitability. He stated that
while the government is not meant to run at a profit, it is meant to provide efficient
outcomes. But without measure of accountability in departments the public has no way of
knowing where the money is going and what outcomes they are getting for their tax
dollars spent. He stated that he is aware of the need to cut costs and services, but he does
not and cannot accept that the City has fully reviewed neither staffing levels nor how the
city departments actually operate. He stated that much of the reason for this decision
tonight is because of HEA 1001, however the City has wasted two years in which reviews
could have been conducted of every city department and introduced accountability to city
government which is pretty much non-existent. As long the City refuses to set goals,
progress be measured and spending be justified, the city is condoning unaccountable
practices they may be wasting tax payers money. Mr. Niezgodski commending those in
attendance at the town hall meetings that were conducted by the City Administration and
Council, however, he questioned where everyone was when the Council was holding
meeting after meeting after meeting about the budget. He asked why were they not in
attendance and speaking out during the last six or seven months. He stated that while he
is disappointed that the Council and administration may have not done as good a job as
he thinks they could have done in applying the budgeting for outcomes process, he stated
that he is even more disappointed in the citizens of South Bend who only complain and
never get involved, never ask questions and never offer solutions. He stated that he
offers two simple challenges: First to the Common Council and the City Administration
he strongly urged to begin a true application of the budgeting for outcomes process
immediately after the outcome of the meeting tonight. Focus on accountability requires a
huge step to finally introduce accountability to the function of local government. His
final challenge is to the citizens of South Bend, what ever outcome tonight and tomorrow
night at the County Council meeting, do not let this be the last time you attend a meeting.
He stated that failure on the citizen’s part to ask questions and offer comments and
solutions will only guarantee the continuation of same practices in local government, he
urged the citizens of South Bend to demand accountability of local government. He
urged the Council’s support of this tax.
Ms. Ann Powell, 117 Napoleon, South Bend, Indiana stated that she is urging the
Council’s favorable consideration of the local option income tax. She stated that she is a
citizen that stands for community sense. She stated that one of South Bend’s greatest
assets is its higher learning institutions. She stated that with the loss of revenue for the
School Corporation and public services at the libraries, it is going to make it even harder
for the youth of the community to attend any of these fine institutions. She also noted
that failure to adopt the tax will cause a decline in the government’s ability to provide the
kind of services that citizens want from their government. The competitiveness of trying
to attract fine faculty for these fine institutions of higher education as well as other
industries that the City is trying to attract here will be greatly diminished by not having
the services available. She urged the Council to stand up for all the citizens of South
Bend and invest in South Bend by passing these bills tonight.
Ms. Charlotte Pfeifer, 1013 W. Washington, South Bend, Indiana, stated that she
understands how difficult a task this decision is for the Council. She reminded the
Council that they were elected to be good stewards for the City and make these kinds of
tough decisions. She stated that she hoped the Council would not be swayed by theatrics
or hysteria tonight. She stated that it is unfortunate but simply the City needs more
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money. She stated that the Council has the facts to make this decision. She noted that
when a business experiences hard times, they lay people off, trim expenditures and cut
costs wherever they can. The City has done that and has been doing that and will
continue to do it with Council support. She stated that families cut expenses by not
eating out, and not buying things they don’t need, she stated that she has done that too.
Ms. Pfeifer stated that some families get additional jobs, also as an alternative. She stated
that she knows several moms that would love to be stay at home moms, but have chosen
to work outside home and make those kinds of sacrifices. She stated that the City has
made sacrifices and cut fat, but clearly the City is down to the bone, and you cannot cut
bone. She stated that she has talked to many citizens both in the city and in the county
and it was the consensus that the residents want the same amount of services or more, but
they don’t want to pay any additional cost for it. She stated that she remembered how gut
wrenching it was when she was on Council and had to make the tough decisions on
whether to keep or cut a certain program. She remembered when the residents on the
west side complained that they did not have a pool or water outlet and they brainstormed
together to get the Kennedy Water Park opened. She stated that some say it’s a silly little
water park, but there are families there everyday during the summer enjoying that
facility. She stated that it would be gut wrenching and heart breaking to close that
facility that they fought so hard to get. She stated that she remembers all the years of
neglect at LaSalle Park and now there is a walking path around it. The director at LaSalle
Park Gail Brody has established a wonderful working relationship with the South Bend
Police Department. She urged the Council to form a committee to study, learn and look
at various positions in the City before any cuts are made. She stated that when resident
need help the first people they call are the police and fire and they expect them to show
up immediately to help them. She stated that because the City had money in its rainy day
fund, when the ice storm came last winter, it was that money that made the clean up of
that disaster possible. She asked the Council to bite the bullet, step up and do the right
thing and pass the increase to the LOIT taxes so the residents of South Bend can continue
to have a wonderful city.
rd
Ms. Barbara Wade, 1122 S. 23 Street, South Bend, Indiana, stated that she is a resident
of River Park and has lived in the community for over 30 years. She stated that she
admits that she has never gotten involved in politics or government and would like to tell
Mr. Niezgodski that she has many reasons, but no excuses. She stated that the reason she
is here tonight is that some convictions have surfaced with this tax issue. She stated that
when her mother was going to vote for an increase in a school tax that were being
proposed, her mother stated that she realizes that she no longer has any children in
school, but there are other children coming up in the school system and those children are
the future. Ms. Wade also commented on a discussion she had with her mother-in-law
regarding the local option income tax. She stated that her mother-in-law wanted no part
of any kind of tax increase, however, that the city needed to do something about the
property taxes because they are a mess. She stated that as they continued to talk it was
realized that an educational process could happen here. They talked about the City
having a choice and she stated that what is so ironic about coming and speaking here
tonight for the very first time is that opting to be in favor of an action which puts the city
$2 million dollars in the hole instead of $6 million dollars in the hole, there is something
ironic about that, someone said earlier it’s the lesser of two evils. She stated that at a
River Park Neighborhood Association Meeting residents were complaining of trash in
alleys and that it was taking a long period of time before Code Enforcement came out and
sighted the property owner and cleaned up the debris. After discussion it was realized
that city services were not going increasing and that it was the association’s responsibility
to education their residents on keeping up on code issues. She stated that she understands
that the Council has a difficult decision tonight and encouraged them to vote for the tax
increase. She stated that she wants to be a part of a community that she considers to be a
“we” community rather than a “me” community.
Mr. Joe Nycum, 53157 Cedar Lake, Granger, Indiana, stated that he lives in St. Joseph
County and works in South Bend. He stated that he is proud to tell people where he is
from and that South Bend puts us on the map. He stated that there are many great and
wonderful things that this city provides for its citizens, not only to the city, but St. Joseph
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REGULAR MEETING JULY 13, 2009
County as well. He stated that this tax is a shift not an increase. He urged the Council’s
favorable consideration.
Mr. John Roos, 1730 Oak Park Drive, South Bend, Indiana, gave kudos to the Council for
being transparent and having open and clear discussions on issues just like this. When an
issue of this magnitude comes up, the Council schedules meetings to discuss the issues
and options. He stated that he has read the reports from Umbaugh, Crowe, Horwath &
Associates and has a copy of the Legislative Research Agency estimate of what the effect
is going to be. $45 million dollars is the total amount going to be cut from all units of
government in St. Joseph County. He stated that it’s not the City of South Bend, St.
Joseph County’s or the citizens fault, the State of Indiana decided that they were going to
cut $45 million dollars out of all the budgets in St. Joseph County and now the local
government officials are going to have to deal with the deficit. Lake, St. Joseph and
Delware Counties are the most effected by this change. He stated that 11 ½ percent in
Lake County; 9 % in Delaware County and 8% in St. Joseph County. Elkhart, LaPorte
and other surrounding counties are down 1 % or 2%. He stated that as the Mayor stated
earlier St. Joseph County is in the bottom 10 out of 92 counties for percentage of option
income tax. He advised that by cutting city services and laying off police and fire, the
city won’t be able to compete for the high tech jobs, the new industry jobs and so on. He
stated that the Council got dealt a bad hand and he hopes that the Council will face it
head on and pass this additional option tax.
Mr. Scott Ruszkowski, 25740 Henning Road, South Bend, Indiana, President, Fraternal
Order of Police #36, stated that he has a few “bullet point” that he would like to highlight
tonight. He stated that as President of the FOP #36 he is here tonight in full support of
this tax. He stated that it’s quite simple because neither the police department nor the
residents of South Bend can afford to lose one officer let alone nineteen. He stated that
was his statement as the President of FOP #36, as Scott Ruszkowski, tax paying citizen
with a family of five, has no idea of how he is going to manage another increase in debt.
However, he will figure it out; he has before, and will do it again. Also, Scott
Ruszkowski with a family of five also looks to the bright side if there is a bright side if
there is a good thing to all of this tax is that the money stays here, it stays in the
community. It is not going to the State of Indiana, who in his personal opinion feels they
are fully responsible for this mess. Certainly, not to the Federal Government, who with
all their spending of tax dollars, GOD only knows where that money has gone, into some
kind of abyss. The bottom line is that the tax money stays here in the community where
it is deserved and earned the most. He asked the Council for their favorable
consideration on these bills.
Mr. Jay Freel Landry, 1749 N. Adams, South Bend, Indiana, stated that he is speaking on
behalf of himself and his family. They support the increase in the local option income
tax for many of the reasons that have already been given. They do not see it as a tax
increase, they see it as a tax shift, and they believe that the community is in trouble,
specifically education. They participate and enjoy the libraries, which they think are
wonderful, the public services such as swimming lessons at the pools, summer and winter
sports, Silver Hawks, parades, and picnics that make South Bend wonderful. He stated
that his family’s greatest concern is public safety. He stated that they live on the
northwest side of South Bend in the Marquette Park Area, which is quite diverse. Middle
income to low income and in the summer of 2001 there were approximately 50-60 non
violent if there is such a thing break-ins in the area. A couple of drug addicts who were
looking for cash or assets that could be pawned for cash so they could get a quick fix.
The police officers and patrol were very present; they did not use bullets or guns, only
their presence to find the perpetrators and did this by building relationships. He stated
that in the last nine months there have been approximately 15 break-ins in the area, one
of which was his home, on March 25, 2009 at approximately 11:00 – 11:30, he believes
someone was watching his home and robbed his home after they had left. He stated that
they lost some property, some assets, and the greatest thing that was lost was trust. Trust
cannot be brought back to his family by cutting police officers. He stated that in 2000
when his family moved in there were many active businesses on Lincoln Way West, now
if you drive down the street there are approximately 20 businesses that have closed.
Many homes are abandoned and boarded up, the community is eroding, and this is what
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is causing lost jobs and taxes. Sam the owner of the grocery store down the street was
murdered in a senseless robbery. He said that someone who spoke prior said that many
see raising taxes as a great evil, but yet what kind of sacrifices are the citizens of South
Bend willing to make. We need to make the sacrifice to make the community better.
Mr. Tom Fujimura, 9163 W. 700 N, Culver, Indiana, stated that he is speaking as a
representative of the South Bend Community School Corporation. He stated that the
SBCSC supports Mayor Luecke’s proposed local option income tax increases. With
millions of dollars cut from the budget will directly impact the SBCSC’s way of doing
business. They are convinced that the cuts that are proposed will negatively affect the
quality of life of the students, their parents and the school community and have an
adverse effect on the SBCSC ability to recruit and hire good teachers, staff, other support
service personnel. The many services offered by the City and County significantly
supports as well as enhances the educational programs of the South Bend Schools. He
stated that the Rum Village Nature Center helps teachers make science assignments come
alive. He stated that children need activities during the summer when they are not in
school. He stated that the City of South Bend Parks & Recreation Department provides
so many wonderful activities all year long for students for either no cost or a very
minimal cost. He stated that many students take part in the after school programs, those
programs help students who otherwise would go to an empty home and spend their
afternoons unsupervised.
Mr. Richard Williams, 724 W. Washington, South Bend, Indiana, stated that the Council
is going to hear shortly from members of the public who will be claiming economic hard
time and all the waste and inefficiency in local government and how the City can cut it’s
budget so that there is no need to raise the local option income taxes. He stated that the
main reason for this discussion tonight to raise the local option income tax is because the
State of Indiana decided to cut the $20 million dollars that the city used to get from
property taxes. He stated that during hard times such as the economic hard times that the
nation is going through now he would rather have a tax based on income as opposed to
th
property tax. He stated that St. Joseph County ranks 6 amongst the seven largest
counties in the State for per capita taxes, only Lake County has lower per capita taxes.
He stated that local option income tax is the only means that the State Legislature has
given to local governments to make up the deficit left by no longer being able to rely on
property taxes. He stated that he does not want to live in a community that does not have
sufficient police and fire protection or adequate services.
Ms. Catherine Pittman, 2628 Summit Ridge Drive, South Bend, Indiana, stated that no
one wants to have their taxes raised. She stated that everyone knows that the services
that they receive in their community are not free. She stated that it costs money to pick
up the garbage, clear the streets of snow and debris, provide recreational programs, and
make the parks beautiful. She stated that she is willing to pay more in income taxes since
getting relief on her property taxes and because she does not want to see the city
deteriorate. She believes that income taxes are a more fair tax than property taxes, they
are based on what they earn and not what on the basis of what they own. This is easier
on the elderly, people on fixed incomes, when people are unemployed or making less
money as is happening with many of the citizens in the community they are taxed less.
She reiterated what was mentioned about the local option income taxes staying in the
community to help pay for police and fire protection and the local schools. She stated
that she is happy to see her tax dollars making a difference in the community. So when
she pays her taxes she knows that they are going into her local community and benefiting
her neighbors and her neighborhood and is very willing to contribute to her community.
She stated that everyone should take responsibility for contributing to the community and
that’s what community is all about. She stated that she will support the Council as they
support this increase in the local option income tax.
Ms. Noreen Dean-Moran, 716 W. Colfax, South Bend, Indiana, urged the Council to pass
the local option income tax. She stated that she has been a resident of South Bend for
forty-five years; however, she was born and brought up in New York City. She likes
cities and likes to live downtown. She stated that she like all the services that the City of
South Bend offers and would dislike it very much when there is nothing available. She
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REGULAR MEETING JULY 13, 2009
stated that she wants to keep the quality of life that she has now, along with public safety,
schools, parks, and all the services that she has become accustomed to having. She stated
that local option income tax needs to be passed for the sole, body, whole cultural and
community.
Mr. Doug Markell, 1622 Oak Park Drive, South Bend, Indiana, stated that he was a
resident of California and the one thing that drew him and his wife here was the
Potawatomi Zoo. He stated that they volunteer almost every weekend. He stated that he
doesn’t want to lose the zoo. He stated that he enjoys giving back to the community by
volunteering his time and educating people on animals. He stated that he works in the
RV industry and has not had a pay increase in the last two years and doesn’t see one in
for foreseeable future, yet he is in favor of raising the local option income tax. He urged
the Council to pass these bills so that the residents of the community don’t lose the
services that they have been accustomed to having. He doesn’t want to feel unsafe in his
home or lose the precious Potawatomi Zoo and doesn’t think anyone else wants to either.
Ms. Rosalinda Leyva, 1148 W. Jefferson Blvd., South Bend, Indiana, stated that she is a
mother of three and a life long resident of South Bend. She stated that she read in the
paper the other day that the fountain in front of the Morris Performing Arts is struggling
to keep operating, because of lack of funding for maintenance and cost to run. She stated
that she and her family ride their bikes downtown and her daughter loves to put her feet
in the fountain. She stated that those are cherished memories that she will have forever
and does not want to see the fountain close or be torn down because of lack of funding
for repair and maintenance. She stated that her children play sports with the South Bend
Parks and Recreation Summer Programs at LaSalle Park and cannot imagine not having
those services available. She urged the Council to pass these bills tonight for the children
and all residents of South Bend and St. Joseph County.
Mr. Todd Skwarcan, 2401 S. Gertrude, South Bend, Indiana, Member of the South Bend
Fire Department,(SBFD) stated that he has been with the Fire Department for 15 years
and the theme has always been patience. He stated that when the members of the SBFD
were paid less than the neighboring county of Elkhart, they were counseled patience’s.
He stated that they have had patience’s during these tough economic times, but what the
City is asking the SBFD to do now goes way beyond patience’s, they cannot take the
kinds of cuts that are being advocated. Ten years ago the city conducted a survey that
said they needed two more fire stations to be built as the city began to grow, once again
they were told to be patient. He stated that the SBFD needs for the Council to be there
and vote in favor of the increase in the local option income tax. He stated that he doesn’t
have a cleaver pun like Mr. Ruszkowski stated earlier, but don’t let the SBFD get hosed.
The following individuals spoke in opposition to the Resolutions:
Mr. John Voll, 1410 E. Wayne, South Bend, Indiana, stated that he realizes that the city is
in some hard economic times. He stated that he felt that he could be in favor of this tax
increase if he knew things in city government were going to change. He stated that there
needs to be more economic growth in the city to help expand the tax base. He stated that
he doesn’t support this tax increase because he believes that the city will only increase
the taxes each and every time without bringing in new business and economic growth and
not curtailing the capital expenditure purchases.
Mr. S. J. Szabo, 1355 Mishawka Avenue, South Bend, Indiana, stated that he believes
that the City of South Bend has not shown the magnitude of the need of these increase in
taxes. The dooms day scenario that has been painted by the city administration doesn’t
come with any figures and doesn’t demonstrate that any department has taken a cut in its
budget. He stated that the alternatives need to be investigated. He stated that the Council
should investigate the budget further before passing the tax at .95%. He suggested
passing a quarter of that amount. He stated that it will demonstrate a willing to negotiate
and to find solutions. Then go back to the budgeting process and reevaluate and see what
other alternatives can be found.
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REGULAR MEETING JULY 13, 2009
Mr. Greg Burkowski, 20155 Roosevelt Road, South Bend, Indiana, stated that St. Joseph
County’s population has been declining since the 1960’s. He stated that no one wants to
live here because there is no economic growth or jobs. He stated that South Bend once
had manufacturing jobs and has since lost those jobs to other areas. He stated that the
abandoned housing problem in South Bend has skyrocketed in the last few years. He
stated that the crime rate is astronomical. He stated that the city has not done enough to
entice businesses to locate in South Bend. He stated that this tax needs to be reevaluated
because he cannot support taking away money from a single parent, the elderly or the
unemployed. He stated that maybe not taxing the first $35,000 of income could be a start
and go on from there to fine tune this tax. He stated that otherwise he cannot condone
this kind of tax.
Mr. Stephen Leykauf, 52396 Liberty Mills Ct., Granger, Indiana, stated that he debated
coming to the meeting tonight because he had heard that the South Bend Common
Council usually has their minds made up before hearing from the public. He stated that
the City spends money on things like round abouts; a facade for a not-for-profit
televisions studio; tearing down the Gates Building for the Joseph E. Kernan Memorial
Parking Lot; and contributing to Century Center who has not operated in the black for
several years. He stated that the City lacks competitive bidding and that represents
hundreds of thousands of dollars and that’s hard to quantify something like that. He
stated that the city over uses consultants. He stated that the city blames the state for
cutting property taxes. He believes that the State tried to help the taxpayers of St. Joseph
County and the City of South Bend by curtailing the senseless spending.
Carol Kelly Havens, 12032 Timberline Trace, Granger, Indiana, questioned why the
taxpayers were only given a 10 day notification of this public hearing. She stated that
there was a holiday included in that 10 day window and residents are just now becoming
aware of this meeting. She stated that these bills would double the amount that the
residents are already paying in option taxes, almost 1% of everything that they make and
the Council only gives them 10 days to try to respond. She said that to her family 1% of
their family budget means giving up the family vacation. She stated that her family has
experienced some tough times this year with their health which has meant a loss of
income and large medical bills and now the elected officials of this community want to
take more money out of her family’s pockets and enact an increase in the local option
income tax. She stated that there are other alternative revenue sources and those should
be explored.
Mr. Myer Blatt, 813 Berlin, Mishawka, Indiana, stated that at one time he was a resident
of South Bend resident and kind of happy that he is no longer. He stated that he
understands that the city has some tough decision to make, but everyone has hard
decision to make in their lives also. He stated that he doesn’t have a lot of money and
what that means is that he doesn’t spend it either. He stated that if this tax would have
passed last year, it would have meant everything that he considers disposable income,
gasoline to and from appointments, going out for dinner and upkeep on his house. He
stated that he heard Mayor Luecke compare South Bend to Muncie. He would like to
compare South Bend to Mishawaka where a couple of decades of administration that
resulted in a budget that seems to be running nicely in the black and don’t seem to have
the deficit spending. He stated that Mishawaka’s Mayor stated that he is going to make
those difficult cuts to keep the city functional, keep them within a budget, and keep them
within their means. He urged the Council to defeat this tax increase.
Ms. Amy Eisenhour, 520 W. Jefferson Blvd., South Bend, Indiana, stated that she only
makes $10,000 a year and this tax increase would mean $100.00 coming out of her
income. She stated that $100.00 is two and half weeks of groceries or two weeks of
gasoline. She stated that her options would be walking to work, however she lives in
South Bend and works in Elkhart or she could not buy groceries for two and half weeks.
She stated that this tax puts and unfair squeeze on her and she already feels squeezed.
She urged the Council to vote against the tax.
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REGULAR MEETING JULY 13, 2009
Mr. Jesse Davis, 1333 E. Calvert, South Bend, Indiana, stated that he drove around the
City of South Bend and was astonished by what he saw. He drove down city streets and
there were blocks of vacant land where homes had been torn down, grass was as tall as
his shoulders. He stated the thing that bothered him the most was the vacant city block
with tall grass right across from an elementary school. He stated that he is paying more
in property tax and does not see the 1% caps, so he questioned where the $22 million
dollars of lost revenue is.
Mr. Jay Kata, 2024 Johnson, South Bend, Indiana, stated that he wanted to talk this
evening about wants and needs. He stated that tonight he heard the Mayor talk about a
single mother with one dependent having to pay $97.00 more a year. A single mother
making less than $13,000.00 a year doesn’t have any more to give in taxes. He stated
that it is just insane to expect people in that income bracket to pay anything. He stated
that it comes down to the wants and needs such as water parks. Yes, they are fun, but
they are not a necessity to keep this city functioning. He stated that the city doesn’t need
new sidewalks outside of burnt out buildings. He stated that he has heard people state
that these cuts are scare tactics; to him they are just irresponsible words of leadership
from the City of South Bend. He stated that St. Joseph County spends more per capita on
the public school system and yet the drop out rate is at an all time high. He stated that it
is obvious that the money is not being spent wisely. He stated that the city needs to start
looking at quality not quantity. When times are tough the citizens of South Bend and St.
Joseph County are going to have to tighten their belts and make the tough choices and
makes sacrifices, which those who were elected to office in the county and city are not
doing and need to start. The County Council and City Council need to listen to their
voters and not enact this tax.
Mr. Jeffrey Kepschull, 21050 Quiet Ridge Ct, South Bend, Indiana, stated this country
has survived three recessions and during those recessions taxes were cut to survive. He
stated that this is what needs to happen now. He urged the Council to consider a
referendum on any tax increase. He stated that it should be the taxpayer’s decision.
Mr. Charlie Gray, 2340 Cranston Street, South Bend, Indiana, thanked the men and
women of the police and fire departments and would not like to see any jobs cut in the
public safety sector. He stated that what he would like to see is some fiscal responsibility
from the County and City governments. He stated that he sees unnecessary things like
round-abouts in corn fields, new sidewalks being built in front of burnt abandoned
buildings. He stated that he sees a lot of waste and doesn’t see any responsibility for the
careless and senseless spending. He recommended closing various city offices and
services one day a week. He urged the Council to reconsider increasing the local option
income tax.
Mr. Thomas Burnett, 18907 Cleveland Road, South Bend, Indiana, urged the Council not
to vote for this tax increase.
Mr. Barry Baumbaugh, 12032 Timberline Trace N., Granger, Indiana, asked the City’s
Legal Department to look at the Federal Hatch Act and questioned on whether or not the
two members of the South Bend Common Council can actually vote on a tax when they
both disclosed that they are members of the South Bend Police Department and South
Bend Fire Department. He stated that the State did not put us in this situation; the local
elected officials put the taxpayers in this situation by spending frivolously on projects.
He stated that the budgets that have been passed the last fifteen years go way beyond
inflation. He stated that with the population so stagnant he doesn’t understand how it can
be justified. He stated that the State of Indiana did not put the taxpayers in this situation,
the State did what the voters wanted and that was because they were tired of over sized
bloated government in Indiana at local levels and all levels. The State put these
restrictions in place to try to control some of that. He stated that he heard the phrase “cut
to the bone,” how you can say something like that when the city is allowing TIF money
to be spent on facades for not-for-profit organizations or parking lots for Coveleski
Stadium, this is not cutting to the bone. But it was said that if the tax is not passed the
city would have to cut fire fighters but give money to the Hall of Fame or cut police
officers and give millions of dollars of TIF to WNIT for a façade and jumbo tron. He
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REGULAR MEETING JULY 13, 2009
said it makes him wonder if the city is at all serious about making any kind of cuts. He
urged the Council to not increase the local option tax.
Mr. Brandon Baumbaugh, 12032 Timberline Trace N., Granger, Indiana, questioned why
when taxes go down, there always seems to be a shift to get those dollars back from some
other pocket.
Ms. Joan Strozewski, 51330 Prescott Avenue, South Bend, Indiana, she stated that there
is a lot of wasteful spending on projects like relocating the South Shore Station to the
airport and now she understands that they want to relocate it again. She stated that there
have been too many new libraries built since the announcement of HEA 1001. She stated
that the libraries could have sufficed knowing that the budgets were going to be short.
She stated that TRANSPO does not need a new garage at this time. She stated that
another way that the city can save money is to stop giving tax abatements. She urged the
Council not to increase the local option tax.
Ms. Rita Kopala, 66559 Ivy Road, Lakeville, Indiana, stated that she attends these
meetings all the time and when she saw all these people here tonight she said to them that
everyone is going to sit through all this misery and the Council will have their mind made
up and pass the tax anyway. She stated that the City needs to release some of the TIF
money. She stated that she believes the nation is in a depression not just a recession. She
stated that the economy is in really bad shape and cannot believe that the local
government in St. Joseph County and the City of South Bend want to raise local option
income tax, when people cannot afford to make ends meet the way it is. She urged the
Council to vote against increasing the local option income tax.
In Rebuttal,
Mayor Luecke stated he wanted to make some clarifications to some of the comments
that were made tonight. He stated that the population of the City of South Bend is on the
incline. He stated that from 1990 to 2000 there was a decrease, but the figures that have
come from the Census Bureau have shown an increase. He stated that St. Joseph County
and Lake County are not exempt from the tax caps. He stated that there is a small
additional amount taken out the 1%, 2% and 3% caps next year that is added because of
the debt service that is included in those two counties. He stated that for those who feel
that they are paying more in property tax, he suggested check to make sure that the
exemptions, such as homestead or mortgage has been filed for and offered to help check
that. He stated that what he is talking about is a property tax shift. He stated that he is
asking to find a sustainable way to provide services to the city’s residents and businesses.
He stated that the tax increase is to sustain quality of life in the community, so that they
can recruit people for businesses, colleges and universities so that they can draw people
into the neighborhoods and downtown. He believes that the tax shift that has been
proposed is right and he knows that it is a difficult decision. But it is better for low
income individuals and fixed income individuals rather than property tax because it is a
smaller percentage of their income. Those who are not working will not be taxed by this
and know that there are tough times for people, but the city needs to keep investing in
quality of life issue for the community and to continue to invest in important services.
He stated that for those who have suggested that it only means laying off police and fire
personnel that is not true, the Council approved cutting $3 million dollars in the 2009
budget, that’s more than twice of what Mishawaka recently cut and received great kudos
for and the City of South Bend will continue to cut additional positions in City
government and will continue to find additional efficiencies. He stated that they cannot
find $22 million dollars worth. He asked for the Council’s favorable consideration on
these bills tonight. He stated that he understands that it is a difficult decision and that if
these taxes are not enacted the City faces even more difficult decisions.
Councilmember Puzzello stated that the Council has worked hard to make cuts for
example the curb and sidewalk program, take home cars, lost valuable employees for the
City of South Bend, 5% percent cuts in administers salaries, but when $22 million dollars
has been cut out, those kinds of cuts just don’t make up that kind of loss of revenue. She
stated that even after passing these bills there will still be the need to make cuts. She
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REGULAR MEETING JULY 13, 2009
stated that by not passing these bills tonight, drastic cuts will have to be made. She stated
that the Council serves the citizens of South Bend; she stated that very large cuts would
hurt the citizens very badly. Public Safety, Parks, Code Enforcement and all the other
departments that work together to make this a fine city will be diminished if that amount
of money would have to be cut. She stated that is something that she cannot stand to see.
th
She stated that she was elected by the residents of the 4 District of the City of South
Bend to represent them on the City Council. She stated that on some issues that means
listening to those residents and listening to what their wants are for their neighborhood.
But on other issues there are some complicated issues that need to be worked out and
that’s what she feels she is elected to do and believes that she does the very best that she
can. She stated that what she has heard tonight is that people rightly don’t really
understand where the money comes from and which is tax money and which is not tax
money and that type of thing and that is why she was elected by the residents of her
district to know and handle. She stated that she feels that she is working for the people of
her district by voting in favor of the taxes. She stated that she is Chairperson of the
PARC Committee for the City Council. She stated that the parks don’t keep us safe, they
don’t improve the streets or keep the neighborhoods neat or pick up the trash and maybe
for that reason it always seems that the Parks and Recreation Department are the first to
have their budget cut. However, what they do is to make lives livable, educate residents,
help residents stay healthy, make residents happy unless it’s a bad day on the golf course,
and once those facilities are gone, they cannot be recovered. So between not wanting to
lose public safety employees and not wanting to lose the parks that she so dearly loves
and not being able to call code enforcement on a problem going on in a neighborhood
because their staff has been cut so severely that they cannot help right away and the
situation will have to wait. She stated that it those reasons that she will be voting in favor
of increasing the option income tax and that they will continue to find better ways to
serve people and serve them in a more economical way.
Councilmember Rouse asked about the Hatch Act and it’s appropriateness and having the
two members on the Council representing public safety being able to vote on these bills.
Kathleen Cekanski-Farrand, Council Attorney, stated that both Councilmember Dieter
and Councilmember Kirsits have filed a detailed Uniform Conflict of Interest Form with
the State of Indiana and a copy goes to the Circuit Court of St. Joseph County, and the
City Clerk’s Office. The form was sent down in January of this year and been reviewed.
She stated that based on case law that is relevant; the Hatch Act is not before the Council
this evening. She stated that based on the State Law both Councilmember’s have fully
complied with all of the regulations as far as disclosure of their sources of income, and
believes that is proper for them to participate in the discussion and also to cast a vote.
Councilmember Kirsits stated that you can easily go to the IAFF website and see the
hundreds and hundreds of professional firefighters that are elected to state legislatures,
city council, and water district boards, throughout the United States and there are quite a
few beside himself and Councilmember Dieter throughout the State of Indiana that are
elected to town boards, city councils, and the state legislature within this state. He stated
that the most recent interpretation of possible use of the Hatch Act was because federal
dollars were involved in a Mayoral race in Terre Haute, Indiana and that has yet to be
decided that if that applies to it.
Councilmember Henry Davis commended everyone who came out tonight to speak on
both sides of the issue of local option income tax. He stated that this is not an easy
decision but is a necessary one. He stated that he wished that the Council Chambers were
full with citizens every meeting, sometimes he feels like they are talking to walls. He
stated that a vote in favor of the tax makes it look like they are pro public safety and
parks and a vote in opposition looks like an anti public safety and parks, so it’s a no win
situation. He stated that he believes that it is his duty as the Council representative for
nd
the cash strapped residents of the City of South Bend and more specifically the 2
District get more of a return on their investment as taxpayers. He stated that as a citizen
and an elected official he understands that the citizens of South Bend should not pay
more money to city hall until city hall makes good on its promises. He stated for that
reason he will not be supporting these bills.
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REGULAR MEETING JULY 13, 2009
Councilmember White thanked everyone for coming. She stated that this is a tough
decision not only for the Council but for the citizens of the City of South Bend. She
stated that the Council has been having discussions on the property tax caps for over two
years. They have had a number of meetings through budget hearing process, and this
year at the Council Summit’s to talk about the reducing revenues and to determine the
core services that the City wants to have for the community. She stated that she believes
that it is critical that as elected official they are obligated to insure that the City of South
Bend is a safe, clean, healthy community and that the quality of life would not be
impacted. She stated that the only sources of additional revenue that the State would
allow are the three resolutions before the Council tonight. She stated that they have been
listening for quite some time, but ultimately this Council has got to make the decisions in
regard to what is the best method and ways for the City to continue the quality of life for
the community, the quality of life for the services that the citizens not only demand but
need to have. She stated that as the Council moves forward she would encourage each
and every citizen to continue to work with the Council. She stated that their door is
always open, and that the meetings are open to public. She stated that some may not like
what the Council is going to do or what she as a Councilmember At Large is going to do,
however, she encourage everyone to attend the Council Meetings and encouraged
everyone to work with the Council and encourage everyone to not walk away from this
community, but walk to this community. She stated that South Bend is a great
community and it will take each and everyone working collectively to ensure that they
will continue to have the community not only for ourselves, but for the children. She
stated that she will be supporting the resolutions tonight.
Councilmember Oliver Davis stated that he has had the pleasure of representing the
Council on the TRANSPO Board of Directors. He stated that he heard tonight someone
say that the new garage is not necessary. He stated that money came from the Federal
Stimulus Program. He stated that most of the monies for the new facility have come
from the federal government. He stated that it did not come from us here. He stated that
TRANSPO is basically paid out of federal dollars. He stated that a lot of those federal
dollars and state dollars that have come in to help with the facility and thanked
Congressman Joe Donnelly, Senator Bayh and Senator Lugar who helped to get those
federal dollars. He stated that he lives near Rum Village Park and he truly loves going
there to watch all the little critters and enjoys the nature center. He stated that it is a
wonderful asset to the neighborhood and would be greatly disappointed if it were to be
closed. He stated that he heard some people say tonight that the Council already has
made up their mind on how they are going to vote even before they hold the public
hearing. He replied that he believes one of the reasons for that is because
Councilmember’s attend neighborhood meetings to learn the facts and hear the concerns
of the residents of the neighborhood. He stated that he talks to his constituents before the
meeting to find out the facts. He said that the Council does come into the meeting with
some insight because of the fact that they took the time to go and talk to the residents of
the neighborhood and to people on both sides of the issue. He thanked those who came
out on both sides of the tax issue. He urged those opposed to work with the Council to
give new insight on ways to continue cutting the budget and finding new revenue streams
to allow for the continuation of quality of life that the residents of the City of South Bend
want and deserve. He stated that he will be supporting the resolutions tonight.
Councilmember Rouse stated that as he was sitting pondering these resolutions, he was
having a major problem, and the problem was having this meeting before the County
Council was to hold their public hearing on these same tax increases. He stated that it
raised uneasiness with him because of what happened last December. He stated that after
hearing everyone talk tonight it dawned on him that this City is carrying the whole
County. The county residents use the goods and services of the parks, streets and in some
cases the city provides water, ambulance, and police protection for those who are not
incorporated. He stated that he is proudly going to stand up for the City of South Bend
and for those County resident’s whose quality of life has been added to because of this
great city. He stated that he has heard tonight that some people are leaving the city and
moving into the county since 1960, well the County has been growing, this area has been
growing, they may have left South Bend, but their quality of life has not diminished. He
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REGULAR MEETING JULY 13, 2009
stated that many have been riding on the back of this city for decades. He stated that
there is a report out called the Hojnacki Report “Paying for Public Services in St. Joseph
County: Benefit vs. Burden” that verifies that. He reiterated that he proudly steps up for
those people in the County and will vote in favor of passing these bills boldly. He stated
the residents don’t know what they are taking about when they diminish this city, they are
diminishing their own quality of life, because again many of the county residents take
advantage of the amenities that the city has to offer and are not charged anymore for
those services. He stated that they use those City services and then turn around and cry
about what is going on in the county. He reiterated that he is boldly sitting here tonight
to vote in favor of all three resolutions.
Councilmember Kirsits stated that this day may have come quickly, but they knew this
day was coming. He actually saw this day coming when the man from East Chicago filed
the lawsuit and ran it through the court system stating that they way the State of Indiana
Assessed Property Values was unconstitutional. The State of Indiana then in turn came
up with the property assessment shift from commercial to residential, thus putting the
burden on residential home owners to make up for that shift. He stated that the City of
South Bend did not enact local option income tax for a number of years and relied on
property taxes to pay the bills. He stated that the Council has gone over the budget for
several months and thanked everyone who came out to those town hall meetings and
everyone here in attendance tonight. He stated that it is clear to him that everyone on
both sides pro and con need a little better idea of how government works, maybe attend
more meetings and learn what kind of funds are out there and how they work and what
they can be spent on. He stated that when people complain about the river walks they
need to realize that is federal money and the federal government is paying for 90% of the
project and that it increases the property values in this entire community by taking
advantage of that. He stated that he receive a letter from a gentleman who had some
ideas that sounded good but just were unrealistic like making people who want to build in
Granger pay $5,000 for a building permit so they would want to build in South Bend.
There were some other ideas that he mentioned but would require a change in State Law.
He stated that the State Legislature has given local government the option to replace this
lost revenue and allow a little bit more of a property tax breaks by enacted a local option
income tax. He stated that he doesn’t like to raise taxes at this time but he stated that he
is a South Bend boy, born and raised here, went to grade school, high school and only left
when he went to college, came back and became a firefighter, not for the pay, but
because that is what he wanted to do. He stated that he could have gone into real estate,
but chose to serve in the public safety sector for this community. He stated that he cares
about this community and doesn’t want to write off areas of the town. He stated that he
wants to see the City of South Bend grow. He stated that he has butted heads with the
Mayor, but gives him credit for bringing down more of the old dinosaur infrastructure
from Studebaker which left in 1963 and prepared the city for the next step in technology
for this community. He stated that everyone hopes that it will work and we are on the
threshold of that kind of technology. He stated that this city is at a crossroads, he loves
the diversity of it, he loves the make-up of it, he loves living close to town, but if the tax
is not enacted tonight the cuts that will have to be made both on the public safety side and
on the other side, parks, recreation, and other vital city services, this city is going to die.
He stated that he would like South Bend to be like Ft. Wayne; however, Ft. Wayne was
able to annex and expand their city where South Bend was not allowed. He stated that he
is voting in favor of the tax increase because he wants to see this city to continue to
survive.
Councilmember Varner stated that the tax law changes and it changed for a variety of
reasons. The assessment law changed first at the result of the court decision. In the
ensuring period of 10 years it became increasingly obvious that the property tax shift
from commercial to residential home owners was becoming a burden to people in
community throughout the state. The legislature acted because they felt that they
understood that and acted to alleviate that burden. When the State enacted the legislation
only 3 out of 89 counties were affected: Lake, Delaware and St. Joseph Counties. This
means that the 89 counties spending per capita were below the 1% cap on property tax.
He stated that brings to mind the rhetorical questions that they don’t seem to have the
answers to but some need to be considers and they need to be considered going forward.
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REGULAR MEETING JULY 13, 2009
What is it about those 89 counties that allow them to operate their governments without
reaching their property tax caps? In some cases it was a high local option income tax, in
others it may have been the way they ran their government in the county, do they have
less spending per capita, what is it in those other 89 counties to have enough growth in
development whether it is business or residential to keep their caps below the 1%. He
doesn’t believe they have all the answer to those questions. He questioned whether the
City of South Bend has too many not-for-profits? He questioned whether the City of
South Bend’s TIF Districts are too large? He stated that 40% of the square area of the
city is in some sort of a TIF District. He stated that he is completely in favor of using
TIF District for good economic development purposes, but some of the dollars that have
been thrown at projects in TIF districts leave him concerned, because when you don’t
have that money from the TIF District in the general fund it comes up short. He stated
that if the city continues to do the same thing that it has done for the last 20 years there
are not going to be a lot of changes. He stated that he wanted to clear up that the State
only is allowing for local option income taxes to make up for the loss in revenue,
however, there is another alternative. The legislature provided a Distressed Unit Appeals
Board. It has been kind of given a bad name by one particular county who utilized it and
now has far more problems than St. Joseph County has. He stated that St. Joseph County
is not like them other than we have a shortfall in revenue because of the property tax
caps. He stated that he believes using the Distressed Unit Appeals Board is the way to
go. He stated that the economy goes up and down and we will come out of this
economic recession/depression in the next five or ten years and income for people will
grow. He stated that the shortfall is $22 million dollars, nobody disputes or denies that
figure that is the difference between what the property tax caps did. The Mayor set the
bar at $16.5 million dollars, and the City can allow property taxes to reduce at a slower
rate over the next five or ten years and allow the economy to grow to fill in the gap. It
won’t happen fast and it isn’t easy, but it allows that $16.5 million dollar short fall if it is
granted by the Distressed Unit Appeal Board to cut the losses, let the county go and to
rethink some things and the most important thing about this is that once this tax is
adopted tonight it is highly unlikely that it will ever be lowered, rescinded or decreased.
He stated that if the City took the Distressed Unit Appeals Board they would come up
with a plan every year, present it, and one of the best things is that there is a third party
who would look at it and has no reason to make a judgment other than does it make
sense. As the economy grows then the City is back to where it was. He stated that is
unpredictable, but by letting a third party look at it and if that third party looks at it and
thinks that this is good or suggest that is a bad decision, it would alleviate some of the
distrust that has been associated in government. He stated that this would be a good
procedure to have in place to hold the government’s feet to the fire and be accountable.
He stated that in his fifteen years in office, every five years they revisit the tax issue
because there doesn’t seem to be enough money. He stated that the Distressed Unit
Appeals Board won’t make taxes any less, but it allows the City to grow out of it in an
organized fashion rather than one $16.5 million dollar swoop. He stated that the City
needs the $16.5 million dollars and he feels that it can be done through the Distressed
Unit Appeals Board.
Councilmember Rouse stated that he feels Councilmember Varner has brought up some
points that deserve some discussions. He stated that if the Council would go to a
Distressed Unit Appeals Board, there is some question of lowering the City’s Bond rating
and credit. It’s like going and saying that the City cannot manage our City. He stated
that he believes they can address that right now tonight, with the passage of a resolution
that mandates the very same thing that Councilmember Varner is talking about along
with one other point. He believes that Graham Richards has presented to the State of
Indiana the High Performance Government (HPG) Network that says that we need to be
more business like in how the City does business. He stated that with those caveats as
well as the three resolutions that are relative to the South Bend Common Council and
separate from the resolutions that the St. Joseph County Council has to pass, he thinks
that those issues can be addressed tonight. Guaranteeing that the citizens of the City of
South Bend should the economy turn around, that they have the mechanisms as well as
by using the HPG Network mandated by this Council they can guarantee that they will be
looking at ways to make it more efficient. He stated that they would actually be
accomplishing two issues by addresses the issue that Councilmember Varner made
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REGULAR MEETING JULY 13, 2009
without hurting the City’s credit rating and would also put into place an existing network
proven and already in existence by six Indiana cities and networking with the High
Performance Government Network to bring down any inefficiencies in the government.
He stated that he could support that, but just to go the other way would be problematic for
him.
Councilmember Varner reiterated that allowing a third party an opportunity to look and
see what is happening and how it is happening would go a long way in eliminating some
of the distrust in government.
Councilmember Henry Davis questioned whether the Council has the authority to enter
into an agreement with the High Performance Government Network without the
administration’s approval.
Councilmember Rouse stated that is would have to be an agreement and inclusive of the
Resolution.
Council President Dieter stated that he disagrees with Councilmember Varner’s
suggestion of allowing a Distressed Unit Appeal Boards. He stated that the reasons are
complicated and did not want to get into a lengthy discussion and debate. He reiterated
that the proposal of Councilmember Varner would not benefit the City of South Bend in
the short term or the long term. He stated that he was not going to pontificate any further
of his views on this issues which are well documented.
Councilmember Oliver Davis wanted clarification and interpretation on what
Councilmember Rouse stated by including both his recommendations and those of
Councilmember Varner.
Kathleen Cekanski-Farrand stated that unfortunately she missed the presentation from the
High Performance Government Network. She stated that the resolution that was
originally proposed by Councilmember White at the Personnel and Finance Committee
should include in the statement of purpose and intent, depending upon what you would
want to put in it, that the Council would revisit at least on an annual basis whether certain
thresholds would be met and again revisit the issue. She also stated that Councilmember
Rouse was also suggesting that it be incorporated to include the HPG Network as well the
Distressed Unit Appeal Boards. She stated that the concept can at least be further
discussed but at a separate meeting.
Councilmember Puzzello made a motion to adopt Bill No. 09-49. Councilmember Kirsits
seconded the motion which carried. The Resolution was adopted by a roll call vote of six
(6) ayes and two (2) nays (Councilmember Varner; Henry Davis)
Councilmember Puzzello made a motion to adopt Bill No. 09-50. Councilmember Oliver
Davis seconded the motion which carried. The Resolution was adopted by a roll call vote
of six (6) ayes and two (2) nays (Councilmember Varner; Henry Davis)
Councilmember Puzzello made a motion to adopt Bill No. 09-51. Councilmember Kirsits
seconded the motion which carried. The Resolution was adopted by a roll call vote of six
(6) ayes and two (2) nays (Councilmember Varner; Henry Davis)
BILLS – FIRST READING
BILL NO. 48-09 FIRST READING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, AMENDING CHAPTER 20
OF THE SOUTH BEND MUNICIPAL CODE BY
THE INCLUSION OF NEW ARTICLE 13
ENTITLED REGULATIONS ON THE USE OF
HAND-HELD MOBILE TELEPHONES, MOBILE
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REGULAR MEETING JULY 13, 2009
COMMUNICATION DEVICES AND
TELECOMMUNICATIONS DEVICES IN
SCHOOL ZONES; AMENDING SECTION 2-213
ENTITLED SCHEDULE OF ORDINANCE AND
CODE VIOLATIONS AND SECTION 20-98
ENTITLED OBEDIENCE TO SCHOOL
CROSSING GUARD REQUIRED OF THE
SOUTH BEND MUNICIPAL CODE
This bill had first reading. Councilmember Varner made a motion to refer this bill to the
Health and Public Safety Committee and set it for Public Hearing and Third Reading on
July 27, 2009. Councilmember Oliver Davis seconded the motion which carried by a
voice vote of eight (8) ayes.
BILL NO. 49-09 FIRST READING ON A BILL AMENDING THE
ZONING ORDINANCE FOR PROPERTY
LOCATED AT 2729 SOUTH MAIN STREET,
COUNCILMANIC DISTRICT 5, IN THE CITY
OF SOUTH BEND, INDIANA
This bill had first reading. Councilmember Puzzello made a motion to refer this bill to
the Area Plan Commission. Councilmember White seconded the motion which carried
by a voice vote of eight (8) ayes.
BILL NO. 50-09 FIRST READING ON A BILL AMENDING THE
ZONING ORDINANCE FOR PROPERTY
LOCATED AT EDDY STREET AND ANGELA
BOULEVARD/EDISON ROAD,
COUNCILMANIC DISTRICT FOUR (4) IN THE
CITY OF SOUTH BEND, INDIANA
This bill had first reading. Councilmember Puzzello made a motion to refer this bill to
the Area Plan Commission. Councilmember White seconded the motion which carried
by a voice vote of eight (8) ayes.
BILL NO. 51-09 FIRST READING ON A BILL OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, APPROPRIATING $38,000
FROM GENERAL FUND (#101) FOR
EXPENSES OF SOUTH BEND’S “ALL
AMERICAN CITY” BID
This bill had first reading. Councilmember Rouse made a motion to refer this bill to the
Personnel and Finance Committee and set it for Public Hearing and Third Reading on
July 27, 2009. Councilmember Oliver Davis seconded the motion which carried by a
voice vote of eight (8) ayes.
BILL NO. 52-09 FIRST READING ON A BILL TO VACATE THE
FOLLOWING DESCRIBED PROPERTY: THE
STREET TO BE VACATED IS SUMMERTIME
LANE FROM JACKSON ROAD TO HIDDEN
CREEK DRIVE FOR A DISTANCE 272.59 FEET
AND A WIDTH OF 50 FEET
This bill had first reading. Councilmember Varner made a motion to refer this bill to the
Public Works and Property Vacation Committee and set it for Public Hearing and Third
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REGULAR MEETING JULY 13, 2009
Reading on July 27, 2009. Councilmember Oliver Davis seconded the motion which
carried by a voice vote of eight (8) ayes.
UNFINISHED BUSINESS
REPORTS FROM THE BOARD OF ZONING APPEALS
BILL NO. 09-52 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
APPROVING A PETITION OF THE SOUTH
BEND BOARD OF ZONING APPEALS FOR
THE PROPERTY LOCATED AT 527 ½
RIVERSIDE DRIVE
BILL NO. 09-53 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
APPROVING A PETITION OF THE SOUTH
BEND BOARD OF ZONING APPEALS FOR
THE PROPERTY LOCATED AT 220 S. TAYLOR
STREET, SOUTH BEND, INDIANA
BILL NO. 09-54 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
APPROVING A PETITION OF THE SOUTH
BEND BOARD OF ZONING APPEALS FOR
THE PROPERTY LOCATED AT 3423 SOUTH
MICHIGAN STREET WITH CONTIGUOUS
VACANT LAND
Councilmember Puzzello made a motion to refer Bill Nos. 09-52; 09-53 and 09-54 to the
Zoning and Annexation Committee and set them for Public Hearing and Third Reading
on July 27, 2009. Councilmember Oliver Davis seconded the motion which carried by a
voice vote of eight (8) ayes.
NEW BUSINESS
Councilmember Henry Davis stated that he attend the 2009 Gospel Expo on Friday, July
10, 2009 at the Blue Herron at Blackthorn. He stated there was good fellowship between
the African American Community and the event was well attended. St. Joseph County
Democratic Chairman Butch Morgan was the welcoming speaker. He stated that
everyone had a great time. He also stated that he attending the opening of the "Lincoln
the man you did not know." exhibit at the Studebaker Museum, on Tuesday, June 30,
2009. He stated that there was a presentation from Jan Shupert-Arick (Lincoln Highway
Committee), Andrew Beckman Archivist, Becky Bonham, Executive Director,
Studebaker Museum. He stated that it was truly awesome, period costumes were worn
and songs were sung from the 1800’s, by Jill Van Lew. He stated that Richard Murdock,
Indiana State Treasurer was in attendance and the keynote speaker. Mark McDonald was
the master of ceremony and he is the president of the Board of Trustees. He encouraged
everyone to stop by the museum and view the exhibit.
PRIVILEGE OF THE FLOOR
There was no one present wishing to speak to the Council at this time.
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REGULAR MEETING JULY 13, 2009
ADJOURNMENT
There being no further business to come before the President Derek D. Dieter adjourned
the meeting at 10:58 p.m.
ATTEST: ATTEST:
____________________________ ____________________________
John Voorde, City Clerk Derek D. Dieter, President
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