11-13-72 Council Meeting Minutes

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REGULAR MEETING RESOLUTION NO. 341 -72 (CONTINUED) Councilman Kopczynski read the following letter into the record: NOVEMBER 13, 1972 " November 9, 1972" Civic Planning Association 403 Lincolnway West South Bend, Indiana Gentlemen: I am critical of the recommendation that Miss Guthrie and the Civic Planning Association made to cut ll� from the Motor Vehicle Highway Fund, that is the Street Department. We have a critical alley problem; we have a critical street problem, and old equipment that needs replacement. This should be the last area to cut taxes. There must be some other non -vital area in which taxes may be cut. The taxpayer gets little in direct services now; I think it is very appalling indeed to cut more direct services from the taxpayers. I am sure cuts in non - essential, non - service programs can be made. With the kind of recommendation that the Civic Plan- ning Association makes, it is hard to believe that they are truly the taxpayer's friendly representatives. The members of the Council should take care of the taxpayers' needs and services and not cut them. Other areas should be considered for tax reductions, but not the Street Department Fund. This Department had 12 men cut already in the 1973 budget. We can't cut here and provide even the minimal service needed. Revenue sharing was meant to supplement local funds and not replace them. We have many major repairs that were needed through the years, but we could never get to them without raising taxes, so consequently those necessary repair programs were laying dormant. The revenue sharing funds should be used for that kind of program. Sincerely, Walter T. Kopczynski Sixth District Councilman IE IE Councilman Kopczynski then said he would ask the Council to table this resolution. He said he does not feel the Council should act hastily on cloudy issues. Councilman Miller asked how you would determine what non -vital money would be cut. Councilman Kopczynski said he felt the budget should be cut when it was being considered but did not get any support. He said streets and alleys have been let go in the last eight years and now there is much work to be done. He said he does not want to be identified with an administration that is not doing the job. Councilman Parent said that he would like to point out that Revenue Sharing is an experiment and is called so by the Federal Government. They will be watching to see how we spend the funds. He said that using approximately $270,000 out of 1.8 million dollars to effect an immediate and direct cut in the tax rate is a wise move, and not exorbitant. Councilman Parent then moved that the resolution be amended as follows: In Section 1, line 3, add after the words Motor Vehicle Highway Fund ", unless said elimination would reduce the amount of revenue sharing funds payable to the City of South Bend. ". Councilman Taylor seconded the amendment and said that he did not feel this was a cut in services but an elimination of 11,� from the property tax rate. The question was called on the motion to amend and the motion carried, Councilman Kopczynski casting a nay vote. Councilman Taylor made a motion that the resolution be adopted as amended, seconded by Councilman Miller. The resolution was adopted by a roll call vote of eight ayes (Councilmen Serge, Szymkowiak, Miller, Parent, Taylor, Horvath, Newburn and Nemeth), one nay (Councilman Kopczynski). ORDINANCES, FIRST READING ORDINANCE NO. 5458 -72 AN ORDINANCE AUTHORIZING THE EXECUTION OF A LEASE AND TRUST - INDENTURE AND ECONOMIC DEVELOPMENT REVENUE BONDS AND THE FORM AND TERMS OF THE LEASE AND TRUST INDENTURE AND BONDS AND THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS PERTAINING TO HOFFMAN BROS. SALES AND SERVICE AND /OR AUTO ELECTRIC WAREHOUSING, INC. This ordinance had first reading. Councilman Parent made a motion to suspend the rules and hold the public hearing and second reading at this time. Councilman Taylor seconded the motion and it carried unanimously. Mr. Kenneth Fedder, Attorney for the Economic Development Commission, said that this ordinance is for an issue of economic development revenue bonds for Hoffman Bros. for construction of an addition to their facility at 1110 E. Madison Street to provide additional warehouse space. It will involve up to 10 new employees. They are the distributors of auto- mobile accessories and parts. The construction will be of brick and steel and will be an improve. ment to the surrounding neighborhood. There will be an increased payroll, an increase in the tax base, and it will in no way become a tax liability for the City of South Bend. The ordinance had second reading. Councilman Parent made a motion for passage of the ordinance, seconded by Councilman Taylor. The ordinance passed by a roll call vote of nine ayes (Councilmen Serge, Szymkowiak, Miller, Parent, Taylor, Kopczynski, Horvath, Newburn and Nemeth). ORDINANCE NO. 5459 -72 AN ORDINANCE TO APPROPRIATE $25,000.00 FROM THE LOCAL ROAD AND STREET FUND TO THE ACCOUNT "SERVICES CONTRACTUAL" WITHIN THE LOCAL ROAD AND STREET FUND FOR USE IN ACQUIRING RIGHT - OF -WAY FOR PROJECT R & S 47. This ordinance had first reading. Councilman Parent made a motion that the rules be suspended