2005 Performance Based Budget - Laserfiche WebLink

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services it currently provides as well as a few programs that have been modestly expanded. No services have been eliminated in this year's budget. Traditionally, the City prepares a conservative budget which includes the assumption that all personnel positions are tilled far the entire year. This is an important assumption to note since personnel costs (salary and benefits} represent 47.7% of the tota12005 Operating & Capital Budget. The remaining portion of this summary identifies significant items and/or highlights that are worth noting when reviewing the City's 2005 Budget. These comments 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 the foil five percent property tax levy increase far the civil city funds that has been discussed earlier in this document. Starting in 2003, assessed valuations for all cities state wide converted their assessed values from 33 2 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 puzpose of this conversion is to have assessed values equal true tax value. General Fund revenue, when excluding property taxes, is anticipated to increase by $73$,428 (5.0%}. Payment in Lieu of Taxes (which is paid by South Bend Water Works and Sewage Works to the General Fund) reflects a decrease of ($219,420 or -7.8%}. Fees collected from the County for EMS services (recorded as revenue} have increased by $107,88$ (6.5%} reflecting the increased cost far that service. Revenue from the newly renovated Palais Royale Ballroom Center, which opened December 31, 2002, is projected to be $445,000, this is an increase of $35,000 {$.5%). The Ballroom expenses increased $60,804 (12%}. The Ballroom's operational deficit is budgeted to be $109,506 in 2005. This operational subsidy is funded by the General Fund. Increased personnel costs in 2005 include an overall average increase in base salary of 5.9% for all Police Officers (fourth year of a four-year contract), an average increase of 12.92% for all Firefighters (one year contract) both Police and Firefighters salary contracts will be negotiated in 2005. A 4.0% base pay increase far the Teamsters {third year of a four-year Teamster contract} and salary increases for non-bargaining employees of 4.0% (with some exceptions identified in the salary ordinance}. The number of fizll-time equivalent {FTE} employees has decreased by 4 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 2005 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. For any increases the Mayar has asked every department to try to cover these expenses within fund or department by decreasing expenses, other than personnel and unusual circumstances. B-9