09-05-18 Personnel and Finance (#6)

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®CITY OF SOUTH BEND 1 OFFICE OF THE CLERK Enforcement as well as Zoo and Parks bond payments of roughly $702,000. We realized, today, that number is a little bit high so that will probably go down a bit before it comes to you for final approval. You will also see that when we come to talk to you about the Zoo bond in a few weeks. About $3 million is set aside for PSAP, or, the 911 Center. You'll see it all in the very detailed budget information. There is a deduction for about$200,000 and I just wanted to quickly state that is because the County deducts from our EDIT payments to make the debt service payments for PSAP. So we are just trying to be consistent with the way we show it. So$3 million is what it costs to run the PSAP Center and that is why you'll see it at about$2.8 million in the detail. Then there is about$2.1 million set aside for neighborhood engagement projects, which again, will be talked about in the DCI presentation. With all these items included as we project out in the coming years, we still have very strong cash reserves in this particular fund until 2022. When we look at our Funds,we look at them as General Plus Funds. You might hear us talk about it in that respect. Our General Plus Funds include COIT, EDIT, Public Safety LOIT as well as the General Fund. We look at those as one (1) big group. If one (1) Fund appears to be suffering a bit, we can transfer money between those four (4) Funds because all of that money is able to be spent on any legal purpose. She went on, The Liability Insurance Fund was touched on a little bit by Stephanie Steele and the Legal Department presentation. We oversee the entirety of the Fund. This is the first (1St) year in several years that we are fully charging all of the departments one hundred percent (100%) of the burden of that Fund. This is one (1) of those Funds where we always budget high with the hope that we will spend way less than what we budget for. That gives us the flexibility to continue to work and to continue to meet the needs of the City. When folks say our allocations increased, this is what they are talking about because several of the departments were kind of given a break on this as a way to balance the budget but this year, all of the burden is being allocated. This budget consists of Safety and Risk Management which includes personnel and training costs for the City. It includes our self-insured liability, so funding any claims against the City as well as personnel to manage those claims. Business insurance includes our business premiums as well as claims for catastrophic events. For instance if there is a hole in the roof at one (1) of our facilities and it is a smaller department that can't quite fund a whole new roof to be replaced but it still needs fixing, we go ahead and help them with that if insurance proceeds won't kick in. Also, worker's compensation. We fund the Worker's Compensation Fund. She continued, I believe earlier in August 2018, I sent out an email that really walked through all of the allocations line by line so I won't go into talking about that again but know if you have any questions,I am happy to answer them. We are showing a small deficit spend in this Fund for 2019. However, we have adequate reserves based on best practices and also all of our incurred but not reported claims. Those are things we have incurred but we haven't yet paid,we do have acceptable levels of reserves in that Fund. Our goal is to eventually get to a$5 million balance in that Fund because our Legal Department really feels is a good and strong balance in that Fund. We are working toward that and are not there yet. Should something catastrophic happen, we do have the Rainy Day Fund which I will talk about in just a minute. She went on, We also have our self-funded Employee Benefits Fund, which is Fund #711. That takes care of all the health insurance as well as life insurance. Anything related directly to our employees, we fund through Fund #711. Based on our reports from our third (3rd) party administrators, it costs about$16,900 per employee to fund our health insurance program we have through the City. We have always charged what our health insurance company has stated and that EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend.Indiana 466011 p 574.235.92211f1f574.235.9173111 D 574.235.55671 www.southbendin.gov 13