|
REGULAR MEETING
<br />SEPTEMBER 10, 2007
<br />health insurance costs have continued to rise. Mayor Luecke stated that the budget
<br />includes several capital requests such as funding to replace 46 police cars, Potawatomi
<br />Zoo repairs, and major street and sewer improvements on places such as Miami Road and
<br />Ewing Street.
<br />Catherine Fanello, City Controller, 12th Floor County-City Building, South Bend,
<br />Indiana, reiterated that this is a responsible budget. She noted that she is glad that the
<br />city is not experiencing some of the current financial issues that other local governments
<br />are facing today, but it does require a thought process for the future when the Circuit
<br />Breaker hits. She noted that each department was instructed to prioritize and find ways to
<br />measure the results of their departments. The departments were asked to use budgeting
<br />for outcomes. Budgeting for outcomes philosophy focuses on core mission, measuring
<br />where dollars go and what they are used for. She noted that the must continue to find
<br />ways to measure results and that budget are public policy and numbers alone do not tell a
<br />story, results matter. Ms. Fanello advised that property taxes and levy growth is
<br />calculated by the Department of Local Government Finance (DLGF) and reiterated that
<br />the levy growth for 2008 is 3.7 %. She noted that the project tax rate for 2007 is $2.1046
<br />which is a -3.4% growth as a percent over prior years and the inflation rate is 2.5% (thru
<br />June) She noted that the 2007 estimated Levy in the General Fund is $51,224,462; Park
<br />Fund $8,694,590; Police Pension $1,451,127; Fire Pension $1,615,405; Cumulative
<br />Capital Development $1,040,430; for a total $64,026,014. The 2008 project levy in the
<br />General Fund if $52,245,227; Park Fund $8,816,382; Police Pension $1,449,805; Fire
<br />Pension $1,632,663; Cumulative Capital Development $1,162,456 for atotal
<br />$65,306,533. For an increase in 2008 in the General Fund of $1,020,765; Park Fund
<br />$121,792; Police Pension $1,322; Fire Pension $17,258; Cumulative Capital
<br />Development $122,026 for a total of $1,280,519 or 2%. Total Tax Collections as a % of
<br />Current Tax Levy in 2006101.03% collected with an outstanding delinquent tax of
<br />$5,495,442; in 2005 96.08% with an outstanding delinquent tax of $8,093,237; in 2004
<br />98.45% collected $6,189,942 and in 2003 97.13% with an outstanding delinquent tax of
<br />$6,203,521. Ms. Fanello noted that property taxes are still not finalized for 2007 for the
<br />county, neither is there an estimate of assessed value for 2008. Therefore, these numbers
<br />are only estimates and are subject to change. Tax rates are advertised much higher as a
<br />safeguard and a rule of thumb. Revenue sources are a reduction in gasoline taxes of
<br />$163,000 that will affect the motor vehicle highway fund and local road & street fund.
<br />The General Fund total revenue increased less than 1% and no increases projected in
<br />income tax revenue. She noted that total revenue sources from budgeted funds are
<br />projected to increase $2.7 million (1.46%) over 2007 estimated revenue. The largest
<br />portion is from Sewer Fund increases of approximately $2.31 million, the remaining is
<br />mainly user fees and administrative and self insurance increases to city funds. The 2008
<br />Revenue Source General Fund $69,045,926 or 36%; Enterprise Funds $48,320,745 or
<br />26%; Special Revenue Funds $23,219,626 or 12%; Internal Service Funds $20,377,799
<br />or 11%; CapitaUDebt Service Funds $16,066,485 or 9% and Trust Agency Funds
<br />$10,388,145 or 6%. Ms. Fanello noted that some revenue examples include Enterprise
<br />Fund dollars consist of Utilities, Building Department Fees, Century Center Revenue,
<br />Parking Garage Revenue. Special Revenue Funds consist of Park Department, Motor
<br />Vehicle Highway and Local Road & Street Dollars. TrustlAgency dollars are pension
<br />funds for Police and Fire. Capital and Debt Funds consist mainly of Hall of Fame Bond,
<br />Professional Sports Development, County Option Income Tax Economic Development
<br />Income Tax, Emergency Medical Services, Capital Development and Improvement
<br />funds, Coveleski Stadium. She noted that money comes from various funding sources
<br />such as charges for services, $54,329,438 or 29%; Fines $429,884 or 0%;
<br />Intergovernmental Grants $19,843,678 or 11%; Licenses & Permits $1,640,375 or 1%;
<br />Miscellaneous $4,635,347 or 2%; Operating Revenues $1,928,348 or 1%; Other
<br />Financing Sources $18, 830,537 or 10%; Reimbursements & Refunds $3,549,597 or 2%;
<br />Property Taxes $65,306,533 or 35%; Income Taxes $9,402,467 or 5% and HoteUMotel
<br />$2,087,010.00 or 1%. She reminded that budgets will have to be drastically adjusted in
<br />2009 to prepare for the $7 million dollar loss in property taxes due to the Circuit Breaker.
<br />This amount may change up or down depending on trending. She noted that expenditures
<br />in the General Fund Budget dropped $1.7 million (2.5%) decrease and that the total City
<br />budgeted funds increased only 1.85% overall compared to the 2007 budget. She advised
<br />that this excludes capital funds. Capital fund costs are unique from year to year and do
<br />
|