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Economic Position
<br /> The City has long maintained and
<br /> continues to maintain a healthy city General Fund and Parks&Recreation Fund Expenditures
<br /> economic philosophy, whereby, it is
<br /> incumbent upon the City to possess the $90,000,000
<br /> necessary financial resources to provide $80,000,000
<br /> essential services to taxpayers and $,0,000,000
<br /> stakeholders, at all times, regardless of $60,000,000
<br /> the economic climate existing in the $50,000,000 1
<br /> community.
<br /> $40,000,000 i
<br /> The City is financially strong, with strong $30,000,000
<br /> reserves that has assisted the City to $20,000,000
<br /> weather the economic recession and the °� of e� e &�
<br /> mP ,tP P P oP ■Parks&Recreation Fund
<br /> state enacted changes to the property tax l '1P ti'9 p General Fund
<br /> system. The strong economic position Year
<br /> enabled the City to weather the storm
<br /> and to reinvest in facilities and economic development initiatives that continues to set the stage for
<br /> economic growth and expansion.
<br /> Commencing in fiscal 2007, the City anticipated the negative impact of state proposed property tax
<br /> reform, later to be enacted, which would negatively impact upon the property tax revenues available to
<br /> the City for essential services, namely, public safety, parks & recreation, and general government. As
<br /> such, the City made strategic cuts in expenditures that did not dilute essential services. The City held
<br /> public hearings to better understand taxpayer and stakeholder priorities. As a result, the City increased
<br /> local income taxes, in co-operation with St. Joseph County, to replace a portion of the property tax
<br /> revenue projected to be lost due to the state enacted property tax reforms. The income tax increase was
<br /> intended to allow achievement of taxpayer and stakeholder priorities, namely, public safety staffing at full
<br /> levels, sustaining parks and recreation facility operations, and to enable continued investment in
<br /> economic development initiatives.
<br /> The following chart and graphic display above, identifies the expenditure reductions that were achieved
<br /> by the City in the General Fund and in the Parks and Recreation General Fund in response to the state
<br /> enacted property tax reform legislation which reduced property tax revenues available to fund City
<br /> services.
<br /> General Fund Expenditures and Park General Fund Expenditures
<br /> Year General Parks & Rec Total Change from % Change
<br /> $ Fund Fund Expenditure Prior Year
<br /> 2006 actual 70,125,801 11,213,771 81,339,572
<br /> 2007 actual 70,450,793 11,037,897 81,488,690 149,118 0.2%
<br /> 2008 actual 66,503,546 12,424,641 78,928,187 (2,560,503) (3.1)%
<br /> 2009 actual 61,324,718 10,709,907 72,034,625 (6,893,562) (8.7)%
<br /> 2010 actual 59,241,185 11,034,333 70,275,518 (1,759,107) (2.4)%
<br /> 2010 vs 2006 (10,884,616) (179,438) (11,064,054) (11,064,054) (13.6)%
<br /> % change (15.5)% (1.6)% (13.6)%
<br /> Data source:City of South Bend cash basis accounting records
<br /> The City reduced spending in the General Fund by $10.9 million or 15.5°/x, and in Parks and Recreation
<br /> General Fund by $.2 million or 1.6%, for a total decrease of$11.1 million or 13.6% versus the baseline in
<br /> fiscal 2006, a period prior to state enacted property tax reform.
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