12-11-08 Common Council Minutes - Laserfiche WebLink

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SPECIAL MEETING DECEMBER 11, 2008 reference to their jobs. He stated that because of the growth of the City of South Bend and its residents, it is very important to have a functional fire department. Mr. Marks noted that a city just 300 miles from here had one of their emergency vehicles break down on the way to a call. He stated that he doesn’t want to see that happen here in South Bend. He stated that these bills are a necessary evil. He stated that anytime anyone introduces a new tax it is a very difficult decision. Mr. Marks stated that he lives in South Bend and cares very deeply about the City. He is also concerned for his fellow stth co-workers safety. He stated that a 21 Century City needs to function not with 19 Century equipment. He understands that this new tax will upset folks and make them angry for having to pay another tax. Mr. Marks stated that when he first heard of this new tax he looked at what the City is trying to accomplish. He stated that it is services. Every man, woman, child in this City rely on public safety officers being able to do their jobs. He stated that these are tough times and commend the Council for making the difficult decisions. He urged the Council to vote in favor of these bills. Mayor Luecke read into the record a letter from Scott Ruszkowski, President, FOP #36. The letter reads: It is imperative to keep the staffing level of officers at its currently capacity. He asked that training and equipment at currently capacity. With obvious economic changes in the Country, State and City, crime escalation is inevitable. The need to keep officers is more than apparent and losing just one officer to cut backs is not only a disservice to the citizens but to the fellow officers representing the City of South Bend. He urged the Council to vote favorably and to keep public safety a top priority. Mayor Luecke advised that both Ken and Scott’s remarks point to the importance of public safety in this Community, it has always been top priority for this Council and this Administration and show it in the budget where 75% of the general fund budget is dedicated to public safety. If there are not replacement revenues for the dollars lost to the property tax caps, there will need to be cuts in public safety. That is not a scare tactics, it’s just being honest to the Council and the public in terms of what is forthcoming. The State provided a tool to support the public safety in a means of a .25% public safety local option income tax and ask that be enacted tonight. He reminded the Council that these are not new additional dollars; they are replacement dollars to replace dollars that are being lost to the property tax caps. He stated that the State also said that in order to enact a public safety local option income tax, they need to enact a property tax relief income tax as well in the amount equal to at least to the public safety tax. So in order to enact the .25% public safety tax they would have to enact at least a .25% property relief tax as well. He stated that he proposes that in the substitute resolution is to enact that property replacement tax credit at .05% rather than the .25% level to sustain parks, other services of local government as they move forward. Enacted this tax won’t replace all of the dollars that they will be losing to the property tax caps, but it does allow the City to sustain the critical services that they provide for the community and to still hold before us that challenge to streamline government. Mayor Luecke stated that the questioned was raised about the general property tax relief credit as opposed to a homestead credit or residential credit. He stated that the relief to the City of South Bend in terms of revenue is greatest by applying the general property tax relief credit. Mayor Luecke stated that it is his belief that homestead owners are receiving significant additional relief through the supplemental standard deduction that is part of the HEA 1001 as well. The home owners in the City of South Bend are receiving significant relief through that supplemental standard deduction in addition to the property tax caps and in additional to the homestead credits that they already provide through the county option income tax. He stated that the question is why now to ask for these taxes? He stated that as we all know the local taxes both property taxes and local income taxes pay for important services such as schools, libraries, police, fire, judicial system, as well as economic development efforts. Mayor Luecke stated that he is proud of the level of services that they have been able to provide in South Bend, but have become to reliant on property taxes and need to spread the cost of these vital government services over several revenue streams. The legislature has refused to give County’s the authority to level local sales taxes, local food and beverage taxes, local auto rental taxes, additional local lodging taxes, or other tools which could effectively spread the cost of service among many revenue streams, preferring instead to enact the circuit breaker through property tax caps. In other states, circuit breaker relief is means tested, that is the beneficiaries of those circuit breakers need to be below a 6