2011 CAFR Executive Summary - Laserfiche WebLink

Home Browse Search

Management Discussion & Analysis value for residential homesteads, 2% for agricultural/rental properties, and 3% for all other real and personal property. Under current legislation, all Indiana localities assess properties based on market values. Each year properties are trended. This process involves comparing property values to sales activity in the neighborhood and adjusting the current assessed values up or down according to the trended data. This legislation (known as "circuit breaker' legislation) was phased in commencing in fiscal 2009 and has lead to significant reductions in property tax revenues available to fund city governmental operations over the period From 2009 to the present. In 2011, the primary funds supported by property taxes (General Fund, Parks and Recreation Fund, and Cumulative Capital Development Fund) lost approximately $11.5 million dollars due to the circuit breaker caps. As a consequence of the state enacted legislation in 2008, the City enacted a .95% local option income tax increase to partially offset the property tax revenue loss. The local option tax increase became effective in October, 2009, and has resulted in an increase in local income taxes available to the City to fund ongoing governmental operations of public safety, parks & recreation, code enforcement and general government. Management of the City of South Bend will continue to manage the financial affairs from a posture of fiscal conservatism similar to the management practices engaged during fiscal 2011. City Management believes that the national economic recovery will continue according to the predictions of governmental economists, with low to no inflation over the next fiscal period. In addition,job creation is the primary engine to drive economic recovery. 2013 Budget The City will engage to ensure effective delivery of required services to taxpayers and citizens within the constraints of available financial resources. The City will continue to provide required services within the constraints of a balanced general fund budget. The City has completed certain reengineering projects during f scat 2011 targeted to create efficiency and cost improvements within City operations. Completed projects include payroll system reengineering, water utility customer service improvements, information technology server virtualization efforts and substantial implementation of a new telephone system. The City continues to pursue reengineering programs targeted to create efficiency and cost improvements within City operations. These include purchasing process reengineering, back office process improvements for human resources and other customer service operations, and state of the art customer service functionality with a centralized 311 telephone call center. These initiatives, upon successful deployment completion, will achieve the desired results to create efficiency gains in the delivery of services to taxpayers. The City is committed to creating a budget for fiscal 2013 that will remain fiscally responsible to the effective delivery of required services to city citizens and stakeholders within the revenue constraints available. 34