08-30-99 Personnel & Finance - Laserfiche WebLink

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-"s Personnel and Finance Committee August 30, 1999 Page 2 Mayor Luecke noted that the proposed budgeted revenue is in excess of the operating expenses for a total of $ 11.7 million representing an increase of $ 1.2 million from the 1999 operating budget. Five (5) funds will not be balanced and include: MVHlStreets, Human Rights-HUD, Police and Fire Pension Funds, and Project Releaf. The Parking Garage fund also will not have sufficient cash balances to absorb the project deficiency. He also noted that an additional $ 150,000 over the current monies will be proposed for the Football Hall of Fame. The City will continue to negotiate a new agreement with the NFF. Mayor Luecke noted the he and the department heads appreciate the time spent with the Council during the budget review process. Mayor Luecke noted that the interaction between the Council and Administration is a positive approach to the overall budget process. Council Member Varner noted that fourteen (14) new positions have been proposed. He inquired whether any positions have been eliminated. Cathy Roemer stated that many have been restructured and some have been eliminated with the net resulting in five (5) new positions. Cathy Roemer noted in response to Dr. Varner's question on the parking garages that the sinking fund exists until the debt is retire;and that currently a$ 1.6 million deficit exists. Council Member King asked whether there were any issues or concerns relative to the proposed budget. Mayor Luecke stated the year 2000 will be fine, however he voiced concern regarding the effects of the public safety pension expenses in the future. Cathy Roemer voiced concern over liability insurance and the risks in areas which are out of persons direct control. Council Member King inquired whether the compensation is sufficient for the level of employees and the quality of services demanded of our employees. Mayor Luecke noted that the City continues to struggle with the bargaining units, department head positions and skilled labor positions. He noted that the City is not as competitive as he would like and that this is a concern. Cathy Roemer noted that many employees stay with the City for more than the salary offered. She noted that there is a risk that all of the Information Management employees could leave. In response to Council Member King's question whether the City was within a reasonable range for compensation, the Mayor noted that most positions were. Council Member Varner noted that St. Joseph County has the second (2d) highest property tax rate in the state. He inquired whether the homestead credit would be reinstated. Mayor Luecke stated that the local homestead credit remains in effect however the state level has been lowered. There will be an 8 %homestead credit for the year 2000, with the County Income Tax Council having the authority in this area. Council Member Aranowski thanked the Mayor and Controller for their overview of the budget. He noted that good management starts from the top. This portion of the meeting ended at 3:40 p.m.