08-16-10 Council to consider priorities for 2011 budget

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Office of the Mayor NEWS RELEASE August 16, 2010 3:30 p.m. Council to consider priorities for 2011 budget Contact: Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564 or Gregg Zientara, City Controller, 235-9216 The South Bend Common Council will discuss its priorities for the coming year as it begins a series of hearings today on the City’s proposed 2011 budget. Mayor Stephen J. Luecke and City Controller Gregg Zientara will present an overview of projected income and expenditures. The draft budget for the 2011 General Fund, which funds the City’s public safety and general government functions, shows a 0.5 percent (one-half of one percent) increase from $63 million in 2010 to $63.3 million in 2011. The overall City budget – which includes pensions, road projects and user-funded accounts like utilities – is proposed to be $226.1 million in 2011, down 12.7 percent from $259.1 million in 2010. In contrast to the previous two years, no staff reductions are anticipated, although several new initiatives will improve operating efficiencies and save taxpayer revenue. Income- based revenue sources, such as Local Option Income Taxes, are projected to be down 18 percent from 2010. . “While the 2009 recession is expected to reduce tax revenues based on income, our close tracking of revenue projections and conservative fiscal planning has helped us to live within our means,” Luecke said. “Our decision to set aside resources because of the uncertain impact of the property tax caps has strengthened our reserves. This gives us greater flexibility to address civic priorities.” The proposed 2011 budget will sustain public-safety operations at full strength – a goal accomplished during 2010 with support from a new Public Safety Local Option Income Tax and federal stimulus assistance. These resources will enable police to expand special