Laserfiche WebLink
REGULAR MEETING JUNE 22, 2015 <br />Horvath replied, sure. Councilmember Oliver Davis stated then my question that I have, for <br />those who are not aware of that they will be cutting our local fees even more so. Over the next <br />five (5) years that was a report that one of the news networks just did, in which they will be <br />cutting more and more revenue from city budgets? What do you think will happen if every <br />department head came up to us in the middle of the year to say that our budget hasn't been raised <br />since a certain year, and now we want to raise? What do you think will happen to us? What if <br />every department did that? Eric Horvath replied this is an enterprise fund and so if you don't <br />continue to have a balanced budget on an enterprise fund you have to do something to change <br />that. You can't run in the negative it has to balance, it doesn't leave us with a lot of options. One <br />option would be is a revised program. It is a matter of providing a level of service that service <br />has cost associated with it. If you have a certain level of service it will cost something. If we are <br />at a point where we don't decide to do anything with rates, given the existing situation with <br />expenses and a declining balance which has gone from $1.2 million in 2012 to $913,000 to <br />$300,000 in 2014, based on the lease payments that we are making on equipment for new trucks, <br />then you have to change something to either not doing yard waste or doing solid waste every <br />other week or whatever you want to do to change the level of service in order to still be able to <br />do this and cut the expenses to meet existing revenues if we are not going to increase the <br />revenues. Councilmember Oliver Davis asked so when we look at the upcoming years with the <br />cuts that will come to our city, how is the Mayor guiding you in your department, did he say that <br />you need to continue to raise fees, do you need to cut back in your department, how are they <br />guiding you in making your decision? Eric Horvath responded we've had discussion on the <br />enterprise for a number of months. First discussion was when we had the budget, I provided <br />slides showing the declining rate balance. We had a discussion on the need for a revenue <br />increase. The budget that you passed included a revenue budget that had a 9% rate increase in it. <br />Councilmember Oliver Davis inquired so now you are asking for another 9% on top of the other <br />9% already given to you? Eric Horvath replied no this is that 9% that we were asking for. <br />Councilmember Oliver Davis replied so the budget was already passed to deal with that so why <br />are we here again tonight to deal with it? Eric Horvath responded the revenue budget was <br />passed, however you we still have to raise the rates through an ordinance for the fees to take <br />place. The expense budget gives us the ability to spend the money. The revenue budget is set on <br />the amount of revenue that you think will come in. To a certain degree we are always making <br />estimates on it, as you are never certain on how much revenue will come in. Councilmember <br />Oliver Davis, inquired what are you doing to make those estimates? Eric Horvath replied we <br />mostly use previous experience. Councilmember Oliver Davis responded so at the wish of the <br />Mayor, he is wanting to raise the rates to 9 %? Eric Horvath stated I have explained where we <br />are with the declining balance. Councilmember Oliver Davis replied I just want to make it clear <br />to the public that it is the Mayor that is wanting the rates to raise not the South Bend Common <br />Council. All these raising of fees tonight, with the Council raising fees, the Mayor looks great. I <br />want it to be said that when I walk to Kroger's and hear, "the Council keeps raising fees and the <br />Mayor is great." I want it to be clear that it is your boss, the Mayor that is asking for these fees <br />to be raised. Erik Horvath responded we are coming to the Council asking for the rates to be <br />increased. It is the Councils responsibility to raise the rates. (Oliver Davis interrupted whose <br />"we ? ") The administration. It is the Councils jurisdiction on whether or not we raise the rates. <br />Let's be clear about this if you don't raise them today then I have to figure out what I do with <br />trash and yard waste and that's what we will have to figure out. Oliver Davis then asked what <br />would be the options if we don't do this tonight. What are some of the things we can do? Tell <br />the people. Eric Horvath replied I'll sit down and have to figure it out. We can do a number of <br />things, we can go to every other week trash, and we can cut yard waste out. Councilmember <br />Oliver Davis explained the reason why I asked what is the rationale for us if we choose to not <br />vote on this, is to see what it cost the city of South Bend in terms of dollars? How much it cost <br />to have the rate for them to have trash pickup every week, what are the options if we don't do <br />this tonight what happens? Make it very clear so the people here can see it; so that Erin and <br />those writing this can put it clearly that if we don't pass this is what happens? Eric Horvath <br />stated I made it clear we will go back and figure out how we balance the budget. <br />Councilmember Oliver Davis responded that's not enough to take home, I can't share that with <br />the people when I'm asked why we didn't pass it, "oh so we can go back." I need some <br />specifics. Eric Horvath stated so are you asking us to cut the level of service that we currently <br />have? Councilmember Oliver Davis what I'm asking is if we don't pass this what will that cut <br />look like? I am seriously asking this as we have a lot of fees here tonight. My concern is that we <br />already passed the budget. Then in January we had another fees issue and I told everyone that <br />19 <br />