09-10-01 Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 10, 2001 Mayor Luecke presented a $150 million dollar operating budget total revenue for all funds. The operating budget expenses are $136.5 million dollars with $13.5 million dollars available for capital expenditures in February. Of the $136.5 million dollars, $55 million is for the general fund. Seventy -four per cent (74 %) remains for public safety expenditures, $20.5 million for special revenue funds, $12.5 million for internal services funds, $17 million for capital and debt service, $8.3 million for the pension funds and $36 million for the enterprise funds. It also includes debt service from previous approved capital expenditures but does not include the capital budget which will be presented in February. The City is proposing budgeting for the maximum allowable five per cent (5 %) increase in property tax revenue. The general fund revenue excluding property taxes is anticipated to increase by eight hundred forty -five thousand dollars ($845,000.00). A sizable portion of that is made up by payment in lieu of taxes by South Bend Water Works and Sewage Works to the general fund. The utilities do pay to support the other operations in the general fund budget. There has also been an increase in the EMS service provided to the County which will be offset by an increase in expenditures as well. It is anticipated that revenue will be generated from the Palais Royale Ballroom but there will also be costs associated for the first year of operation. The police and fire pension funds will continue to see shortfalls in their revenues that will be supplemented with investments from the general fund. The Street Department Local Roads and Streets and Motor Vehicle Highways funds continue to be underfunded. This year the state did not appropriate any additional dollars for the street work and next year there will be no new dollars. Mayor Luecke noted that salaries are already set for teamsters, firefighters and police officers. Personnel costs take up seventy -two per cent (72 %) of the general fund. Department heads were told to keep increases at 1.5% for supplies and 2.5% for other services. The City faces challenges from the self insurance fund and employee health benefits are expected to increase by approximately twenty per cent (20 %) next year. The liability insurance reserve fund would increase 9.5% from the prior year. There are three (3) funds in this budget which are not balanced that will continue to rely on existing cash balances to support their deficiency. They are the Motor Vehicles Highway and Street Department Fund, Century Center and the Sewer Repair Insurance Fund. Because cash reserves have been built up, the City is able to sustain that deficiency for this year but those are areas that will continue to require attention. The total revenue is $13.5 million dollars more than the budgeted expenses in the operating funds. That $13 million dollars will be put toward the capital budget. There continues to be significant and extraordinary expenditures ahead that will be required to be funded through not only the $13 million dollars next year but millions of dollars in future years as well. Some costs are associated with the Oliver Plow Works Project, repairs to dam at Century Center, major renovation at 701 West Sample Street for the Police and Fire Departments, the two (2) oldest parking garages are in need of significant structural repairs and aesthetic improvement and the south east neighborhood is in need of a park. Streets and alleys continue to be an ongoing source of needed funding. Studebaker Museum is in need of funding and funds are needed to clean -up of Frederick Park. Also, there is an ongoing need for equipment at the Police and Fire Departments. The EMS fund is very tight and additional funding sources will be needed for capital to assist the Fire Department in upgrading equipment, creation of new facilities and a new home for Fire Station #9. In conclusion, the Mayor stated that he is proud of this budget. It is a budget that serves the citizens of this community well. This being the time heretofore set for the Public Hearing on the above bills, proponents and opponents were given an opportunity to be heard. Mr. Jim Cierzniak, 1156 East Victoria Street, South Bend, Indiana, stated that he would like to see better reporting to the public on the budget. He noted that the Mayor just read off a large number of figures and it is difficult to be a good citizen when it comes to the budget. He noted that the