12-11-08 Common Council Minutes - Laserfiche WebLink

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SPECIAL MEETING DECEMBER 11, 2008 maintained for the residents and businesses, and especially important as they look to capitalize on the economic growth opportunities afforded by nano-electronic institute and Innovation Park. He stated that from his perspective the only thing worse than enacting local income taxes at this time is not enacting local income taxes at this time that are needed to sustain the community. th Catherine Fanello, City Controller, 12 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, stated that 100% of this information was handed out earlier this summer. She reiterated that it was the businesses and those in the 2% category who received the greatest credits. She stated that she has had several months to look over the information and have given the Council numerous communications about the City fiduciary responsibility. She stated that as Controller, she stated that these numbers are real, they are true, they are accurate, if it is decided not to implement an income tax tonight, there will be some very, very, very serious decisions to make about the priorities are for the City of South Bend. There will still have to be some tough decisions that will have to be made even if an income tax is adopted. She stated that she is aware of how difficult a decision this is to make. She stated that the City of South Bend spends 75% of property tax revenues on public safety. Ms. Fanello stated that she was asked by Councilmember Oliver Davis if South Bend compares to any other City in Indiana. She stated that South Bend is comparable to Evansville in size and population. Ft. Wayne is double the size of South Bend and spends quite a bit more for their public safety departments. She stated that it makes sense to cut the budget in the areas where most of the money is spent. However, if the Council decides that the priorities should change and cuts need to be made elsewhere, she is willing to sit down and discuss those options. She stated that this is a lot of difficult material, it is very complex, and it is complicated. She stated that she doesn’t think that the legislature did the local governments any favors in the way that they structured this. She stated that it could have been structured better to help residents that were at lower incomes, it benefits businesses and other properties more than it does the residents. She stated that unfortunately, that is where the legislature failed. A Public Hearing was held on the Resolutions at this time. The following individuals spoke in favor of these bills. nd Mr. Peter Mullen, St. Joseph County Auditor, 2 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, residing at 210 S. Coquillard, South Bend, Indiana, advised that he doesn’t think it would be stretch to say that there are many other places that he or the Council would rather be that sitting here tonight. He thanked the Council for making some very difficult decisions. He stated that the Council has sifted the facts; study them to find out what is best for the community. He stated that there are no easy answers. He stated the question is do we cut revenues or do we cut services or find mid- way between both of them. He stated that if services are cut there will be cuts in costs. Either way in this economy and this environment, the Council will leave a legacy tonight, to the community. Over the last eighteen months the County Council along with the County Commissioners have cut the operating budget of St. Joseph County’s General Fund by 4.1 million dollars. With this reduction in place the County is still faced with a negative operating balance for 2009 without any additional revenue, they must reduce an additional 4.3 million dollars. He has discussed this with the Council President Raphael Morton and stated that if this fails on Tuesday morning they will begin to cut 4.3 million dollars. With almost 90% of the general fund in St. Joseph County in personnel, the quickest and easiest knee jerk on this would be to lay-off 155 people. Even with additional revenues from whatever sources, more budget cuts will have to be made to the general fund. Mr. Mullen stated that they hope every month that the vehicles that they have in service can make it just one more year or the police cars could make it another 5,000 miles. He stated that there are 92 counties in the state, 81 of them have a local option income tax. He stated that they need revenue enhancement, but are faced with just the opposite revenue shrinkage. He stated that they will have an overall property tax loss just because of foreclosures. They won’t receive 100% of revenue from the .08% legacy LOIT. The State Legislature and the State Government have given the local governments tools to implement, local option income tax and of the 81 counties, all but 10 counties in 8