2004 Performance Based Budget - Laserfiche WebLink

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The remaining portion of this summary identifies significant items and/or highlights that aze worth noting when reviewing the City's 2004 Budget. These comments aze intended to help the reader better understand the opportunities and challenges faced by the City Administration when developing this budget. This yeaz's revenue budget reflects the full five percent property tax levy increase for the civil city funds that has been discussed eazlier in this document. Starting in 2003, assessed valuations for all cities state wide converted their assessed values from 33 '/Z percent to 100 percent or mazket vahxe. This conversion will have no affect on total dollars. Assessed values will increase and tax rates will decrease. The purpose of this conversion is to have assessed values equal true tax value. General Fund revenue, when excluding property taxes, is anticipated to increase by $955,691 (6.9%). Payment in Lieu of Taxes (which is paid by South Bend Water Works and Sewage Works to the General Fund) reflects an increase of ($67,665 or 2.5%). Fees collected from the County for EMS services (recorded as revenue) have increased by $116,342 (7.5%) reflecting the increased cost for that service. Revenue from the newly renovated Palais Royale Ballroom Center, which opened December 31, 2002, is projected to be $410,000, this is an increase of $138,257 (50.9%). Expenses increased $195,918 (66%). These increases aze due to a better understanding of the revenues and expenses attnbutable to Ballroom after a full yeaz of operation. However, the Palais' operational deficit is budgeted to be $83,702 in 2004. This operational subsidy is funded by the General Fund. Increased personnel costs in 2004 include an overall average increase in base salary of 5.7% for all Police Officers (second yeaz of a four-yeaz contract), an average increase of 4.1 % for all Firefighters (fourth yeaz of a four-yeaz contract which includes base salary increases ranging from 2.9% to 5.2% in 2004), a 4.0% base pay increase for the Teamsters (second yeaz of a four-year Teamster contract) and salary increases for non- bazgaining employees of 4.0% (with some exceptions identified in the salary ordinance). The number of full-time equivalent (FTE) employees has decreased by 5 FTEs from last yeaz's budget. In the recent budgets the City has tried to cut expenditures by consolidating positions where appropriate. The City has made these changes thru attrition. The Mayor's 2004 general budget guidelines for expenditures included no increase for supplies and no increase for other services unless unusual circumstances existed within a specific department or fund. The dramatic changes aze due to the increase in self- insurance cost, approximately 76%. The Mayor has asked every department to try to cover these expenses within fund or department by decreasing expenses, other than personal and unusual circumstances. The Self-Insurance Employee Benefit Fund continues to experience sizeable increases in health insurance claim expenditures. Although there have been changes to the City's health coverage plan for all employees, it was still necessary to increase the "employer" portion of each employee's cost for this health insurance by approximately 76% in 2004 for all Teamsters and non-bazgaining employees. Simi]ar changes to the health coverage plan have been negotiated with the Firefighters' and Police Union (affecting both active B-9