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