2006 Performance Based Budget - Laserfiche WebLink

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elizninated in this year's budget. Traditionally, the City prepares a conservative budget which igcludes the assumption that all persom~el positions are filled for the entire year. This is an important assumption to note since perso~el costs {salary and benefits) represent 50.6% of the tota12006 Operating & Capital Budget. The remaining portion of this summary identifies significant items and/or highlights that are worth noting when reviewing the City's 2006 Budget. These commerrts are intended to help the reader better understand the opportunities and challenges faced by the City Administration when developing this budget. • This year's revenue budget reflects a 3.9 percent property tax levy increase for the civil city fiords. Starting in 2003, assessed valuations for all cities state wide converted their assessed values from 33 percent to 100 percent or market value. This conversion will have no effect 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 $1,126,021 {7.9%). Payment in Lieu of Taxes (which is paid by South Bend Water Works and Sewage Works to the General Fund) reflects an increase of $248,612 or 9.6%. Fees collected from the County for EMS services {recorded as revenue) have increased b3' $35,520 (2%) refleetiIIg the increased cost for that service. Revernie from the Palais Royale Ballroom Center is projected to be $450,240, this is an increase of $5,240 (1.2%). The Ballroom expenses decreased by $24,034 (-4.3%). The Balhoozn's operational deficit is budgeted to be $80,232 ~ 2006. This operational subsvdy is funded by the General Fund. • Increased personnel casts ~ 2006 include an overall average increase in base salary of 2.5% for all Police Officers {first of a three year contract), an average increase of 2% for all Firefighters (first of three year contract). Both Police and Fire contracts were negotiated in 2005. A 4.3% base pay increase for the Teamsters (fourth year of four year contract) and salary increases for non-bargaining employees of 2.0°10 {with some exceptions identified in the salary ordinance). • The number of full-time equivalent (FTE) employees has decreased by 6 FTEs from last year's budget. In the recent budgets the City has tried to cut expenditures by consolidating positions where appropriate. The City has made these changes through attrition. • The Mayor's 21}06 general budget guidel~es for expenditures included no increase for supplies and 5% reduction in other services unless unusual circumstances existed within a specific department or fund For any increases the Mayor has asked every depanmeot to try to cover these expenses within fund or departnaerrt by decreasing expenses, other than personnel and unusual. circumstances. The Self-Insurance Employee Benefit Fund continues to experience sizeable increases in health insurance claim expenditures. in the 2006 budget the City increased the "the employer" portion by 17.1% for Non Bargaining and Teamsters and 26.4% for Police and Fire charged to each City department. This aggressive increase along with City wide Bag