09-09-02 Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 9, 2002 General Fund expenditures including personnel costs, supplies, and other services and costs increased .7% or less than 1 %. When the pension costs are removed from consideration, the General Fund expenses increased 3.2 %. The self insurance employee benefit fund has a sizable increase of 13% in health care expenditures. While these are in line with national trends, the City's health care bill in 2003 is estimated to approach $8 million even with cost containment changes in the program. The liability insurance reserve fund is projected to increase 20% from this years budget. Property insurance alone has increased 85% or $227,000.00. Workers Compensation claims have increased 25% or $151,000.00. The 2003 budget includes four (4) funds that are not able to balance expenditures and revenues and they will need to rely on some form of fund balance. These include the Motor Vehicle Highway Fund, the Police and Fire Pension Funds and the Sewage Wastewater Fund. The Motor Vehicle Highway Fund does not have the fund balance to cover this deficit and ways will be looked for to cover their shortage. The Sewage Wastewater Fund does not have adequate revenues to cover its operating costs and will need to increase rates before year end. Mr. 011ett noted that property tax is usually very predictable but won't be as predicable next year because of property tax reassessment and tax restructuring which adds additional risk to the tax revenue estimates. Based on the state budget agency reduction of certified distributions for 2003, COIT will decrease about $650,000 or just over 9 %. It was additionally noted that one of the largest risks outside of wages is healthcare. It is felt that healthcare is extremely important. However, the City experienced two (2) bad years in 1998 and 2001. It was hoped to see some improvement but to date the City has not seen that kind of lower expense from last year. Pensions are another large cost. The City's plan is a true pension plan and not just a 401K plan. True pension plans have costs that the City will provide. He noted that there are many resources to do the City's work and the administration will continue to invest in people as it becomes more efficient. Throughout this budget process not only facts and figures have been presented, but the Council has heard from the programs and actions that the Mayor, through his Departments and every City employee, will perform to touch and improve neighborhoods and lives. Mr. 011ett asked for the Council's favorable consideration of these bills. This being the time heretofore set for the Public Hearing on the above bills, proponents and opponents were given an opportunity to be heard. Council Vice - President White advised that the Public Hearing portion is now closed. There were no questions from the Council at this time. Councilmember Coleman made a motion that Bill No. 63 -02 be continued, in the Council portion of the Public Hearing, until the meeting of September 23, 2002 and be set for Third Reading at that time in addition to sending it to the Personnel and Finance Committee. Councilmember Aranowski seconded the motion which carried by a voice vote of seven (7) ayes. Additionally, Councilmember Coleman made a motion that Bill No. 64 -02 be continued, in the Council portion of the Public Hearing, and be set for Third Reading and final disposition at the September 23, 2002 and be sent to the Personnel and Finance Committee. Councilmember Varner seconded the motion which carried by a voice vote of seven (7) ayes. Finally, Councilmember Coleman made a motion that Bill No. 65 -02 be continued, in the Council portion of the Public Hearing until the meeting of September 23, 2002 and be set for third reading at that meeting as well and be sent to the Personnel and Finance Committee for their consideration. Councilmember Aranowski seconded the motion which carried by a voice vote of seven (7) ayes. BILL NO. 66 -02 PUBLIC HEARING ON A BILL FIXING MAXIMUM SALARIES AND WAGES OF APPOINTED OFFICERS AND NON - BARGAINING EMPLOYEES OF THE CITY OF SOUTH BEND, INDIANA, FOR THE CALENDAR YEAR 2003 -10-