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5 0 U A6 E N D (' Octo bem 2008 �,/ts- i/ • f� 4141rrR SwpkFa 1. CtFe,4r ",V7 Letter from the Mayor Dear Friends and Neighbors, Regular readers of this newsletter are aware of critical issues facing South Bend — the potential loss of police and firefighters and closing of park facilities and recreation programs as a result of property tax caps. The City of South Bend is facing a loss of nearly 27 percent of its budget by 2010 because of new financial constraints imposed by House Enrolled Act 1001. We need to find cost savings wherever possible. THIS MONTH... Mayor's Letter Arts Cafe Indiana Access to Recovery Services Leaf Pickup Program Fall Yard Waste Free Leaf Bags There is a way South Bend residents can help the City cut spending, reduce bureaucracy and set fairer water rates for city residents while keeping decisions critical to South Bend's future growth in the hands of locally elected representatives rather than appointed bureaucrats in Indianapolis. How? Vote YES on Nov. 4 on the referendum to allow South Bend Utilities to opt out of redundant oversight by the Indiana Utility Regulatory Commission (IURC). Nearly 90 percent of Indiana's 388 cities and towns have already opted out form IURC review and their residents say the move is a good idea. Not one of these communities has elected to opt back in. Here are more reasons why you should vote YES: 1. Local control: Water rates already are approved by the South Bend Common Council, which is elected by city residents. Even without IURC oversight, there is a rigorous analysis to determine the cost of providing service. The IURC, appointed by the governor, is not accountable to South Bend residents. It has not made any major changes to rates set by our Council. The Council already sets wastewater rates without this additional review. 2. Reduced bureaucracy: The IURC provides valuable oversight for private utilities, which are not accountable to the public. However, as we work to streamline government in Indiana, this costly and redundant review isn't needed for municipal utilities, which are overseen by elected representatives. 3. Fairer water rates: The City's utilities exist for its residents. City customers are owners of the infrastructure. Customers outside the city limits should pay their fair share for operating, maintenance and depreciation costs of this equipment. The IURC has consistently challenged our 20 percent differential for customers outside of South Bend, even though a cost of service study supports a much higher surcharge. 4. Improved efficiency: It took the IURC more than 3'/z years to finally resolve South Bend's last rate case, yet it did not fully resolve issues of fairness and equity. Even fast cases take 8 months. These delays ultimately lead to larger rate hikes. 5. Save Thousand$: The last IURC proceeding cost you more than $687,000. The process requires hiring attorneys and consultants, many trips to Indianapolis — and still all the issues were not resolved. You will hear contrarian voices. Some believe that city residents should subsidize rates for customers outside the city. Others will say you can't trust government. But more government is not the answer. Unlike state- appointed officials, our local elected representatives are accountable to you, the residents of South Bend. If I felt that IURC review added value for our customers, I would not seek to opt out. But it does not add value. Instead, it adds sig- nificant costs and delays, without significant changes to rates already reviewed and approved by the City Council. Opting out will give us the flexibility for smaller, gradual rate increases when they are absolutely needed. Please vote on Nov. 4. There are many important races on the ballot. Please vote YES on the referendum to opt out from the IURC review. Sincerely,