09-23-2024 Common Council Meeting Minutes (2)

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REGULAR MEETING September 23, 2024 50-24 PUBLIC HEARING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, LEVYING TAXES AND FIXING THE RATE OF TAXATION FOR THE PURPOSE OF RAISING REVENUE TO MEET THE NECESSARY EXPENSES OF THE CIVIL CITY OF SOUTH BEND FOR THE FISCAL YEAR ENDING DECEMBER 31, 2025, AND APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF THE CITY OF SOUTH BEND, INDIANA FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2025 AND ENDING DECEMBER 31, 2025, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, AND FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT (PUBLIC HEARING ONLY) Clerk Tirado read the bill to the Council for its second (2"d)reading. After the second (2"d) reading, Councilmember Lee requested the committee report. Council Vice President Niezgodski stated that Bill No. 50-24 went before the Personnel and Finance Committee and comes with no recommendation. Councilmember Lee requested that the petitioner(s) state their name and address and share key points before the Council. James Mueller, Mayor with offices on the 14th floor of the County-City Building, highlighted the changes in the 2025 budget since the August 14,2024,budget overview. Mayor Mueller stated that this is the seventh(7th)budget presentation out of eleven(11). Due to state statutes, the budget has to be passed by November 1, 2024. The Build the Budget campaign received public input at community events such as Fusion Fest. This is the fourth (4th) year of the Build the Budget campaign. This year the City has seen record engagement from the public in the budget process via three-one-three (311) voicemails, online survey responses, and in-person Envelope Wall participants. In 2024,just over one thousand five hundred (1,500)people participated in the Build the Budget campaign.The annual Innovation&Technology(I&T) Build the Budget report will be distributed on September 25, 2024. The five (5) top priorities of the City are resurfacing and repairing roads, improvements to neighborhood infrastructure, safe and non-violent neighborhoods, ample affordable housing, and continued investment in the City's parks and trails. Mayor Mueller stated that inflation and prices have stabilized following the COVID-19 pandemic. The Federal Reserve has lowered interest rates following the historic increases over the past four (4) years. Competitive wages continue to climb faster than revenue growth as property taxes and income taxes lag behind income growth. Mayor Mueller stated that the City has grown its reserves in the last four (4) years. The state road formula may change in 2025, which would benefit the City. Mayor Mueller stated that there has been a reduction in projected revenue for property taxes and income taxes for 2025 based on the Department of Local Government Finances (DLGF) estimates. The City expects four million dollars ($4,000,000) to six million dollars ($6,000,000) more revenue than the DLGF estimates. The Mayor's Office budget is increasing by more than three percent(3%) due to increased fringe benefits and salaries. The I&T budget is increasing due to the continued installation and management of City cameras as a part of the Real Time Crime Center(RTCC). Negotiations with the Fire Department are ongoing,the salaries of firefighters are expected to increase. The City's cash reserves are more than the required fifty percent (50%) of the General Fund annual operating expenses. Mayor Mueller stated that the 2024 cash reserves are nearly double the 2020 amount. The projected General Fund deficit for 2025 is ten million eight Hundred thousand dollars ($10,800,000). Mayor Mueller stated that the City will receive more revenue than is budgeted, and the departments will not spend their total budgets. This should get the overall deficit close to zero(0). In 2022, the budgeted deficit was six million and three hundred thousand dollars($6,300,000),and the City had a surplus in 2022 of two million and seven hundred thousand dollars($2,700,000). In 2023, the budgeted deficit was thirteen million and one hundred 7