07-13-09 Common Council Minutes - Laserfiche WebLink

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REGULAR MEETING JULY 13, 2009 said it makes him wonder if the city is at all serious about making any kind of cuts. He urged the Council to not increase the local option tax. Mr. Brandon Baumbaugh, 12032 Timberline Trace N., Granger, Indiana, questioned why when taxes go down, there always seems to be a shift to get those dollars back from some other pocket. Ms. Joan Strozewski, 51330 Prescott Avenue, South Bend, Indiana, she stated that there is a lot of wasteful spending on projects like relocating the South Shore Station to the airport and now she understands that they want to relocate it again. She stated that there have been too many new libraries built since the announcement of HEA 1001. She stated that the libraries could have sufficed knowing that the budgets were going to be short. She stated that TRANSPO does not need a new garage at this time. She stated that another way that the city can save money is to stop giving tax abatements. She urged the Council not to increase the local option tax. Ms. Rita Kopala, 66559 Ivy Road, Lakeville, Indiana, stated that she attends these meetings all the time and when she saw all these people here tonight she said to them that everyone is going to sit through all this misery and the Council will have their mind made up and pass the tax anyway. She stated that the City needs to release some of the TIF money. She stated that she believes the nation is in a depression not just a recession. She stated that the economy is in really bad shape and cannot believe that the local government in St. Joseph County and the City of South Bend want to raise local option income tax, when people cannot afford to make ends meet the way it is. She urged the Council to vote against increasing the local option income tax. In Rebuttal, Mayor Luecke stated he wanted to make some clarifications to some of the comments that were made tonight. He stated that the population of the City of South Bend is on the incline. He stated that from 1990 to 2000 there was a decrease, but the figures that have come from the Census Bureau have shown an increase. He stated that St. Joseph County and Lake County are not exempt from the tax caps. He stated that there is a small additional amount taken out the 1%, 2% and 3% caps next year that is added because of the debt service that is included in those two counties. He stated that for those who feel that they are paying more in property tax, he suggested check to make sure that the exemptions, such as homestead or mortgage has been filed for and offered to help check that. He stated that what he is talking about is a property tax shift. He stated that he is asking to find a sustainable way to provide services to the city’s residents and businesses. He stated that the tax increase is to sustain quality of life in the community, so that they can recruit people for businesses, colleges and universities so that they can draw people into the neighborhoods and downtown. He believes that the tax shift that has been proposed is right and he knows that it is a difficult decision. But it is better for low income individuals and fixed income individuals rather than property tax because it is a smaller percentage of their income. Those who are not working will not be taxed by this and know that there are tough times for people, but the city needs to keep investing in quality of life issue for the community and to continue to invest in important services. He stated that for those who have suggested that it only means laying off police and fire personnel that is not true, the Council approved cutting $3 million dollars in the 2009 budget, that’s more than twice of what Mishawaka recently cut and received great kudos for and the City of South Bend will continue to cut additional positions in City government and will continue to find additional efficiencies. He stated that they cannot find $22 million dollars worth. He asked for the Council’s favorable consideration on these bills tonight. He stated that he understands that it is a difficult decision and that if these taxes are not enacted the City faces even more difficult decisions. Councilmember Puzzello stated that the Council has worked hard to make cuts for example the curb and sidewalk program, take home cars, lost valuable employees for the City of South Bend, 5% percent cuts in administers salaries, but when $22 million dollars has been cut out, those kinds of cuts just don’t make up that kind of loss of revenue. She stated that even after passing these bills there will still be the need to make cuts. She 27