02-10-14 Common Council Meeting Minutes

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REGULAR MEETING FEBRUARY 10, 2014 Mayor Pete Buttigieg presented his annual address to the City Council pursuant to Section 2 -3.1 of the South Bend Municipal Code. City address will be held on Wednesday of this week. First thing to show was run down of where they stand financially and where to draw your attention to: as predicted the General Fund was announced the numbers were the actual numbers from 2013: made $40,000 of revenue and expenditures were able to keep the targeted balance, Overall revenues come in at 2% below expenditures and largely responsible for enterprise funds in capital spending reserves spent on capital purposes largely on utility related issues. The enterprise fund revenues were lower than expenditures by about 15 million due to the fact that a revenue bond was not issued in the past year where in previous years was did not decline the feed base revenue. 8:30 time Redevelopment revenues were $8million over expenditures with technical revenue declining because we saw redevelopment and partner community investment operating under budget levels that creates room for new growth in the future to an overall positive thing, includes parks and recreations, motor vehicle highway, and lost recovery among other funds. Gave an overview of how the neighbor categories evolve over time, as he mentioned last year in 2013 what happened to general fund in 2008 and 2009 one irregularity where taxes were distributed to get a sense of the overall value of those two years you would want to split the difference of the average. General fund is slightly off from 2013 compared to 2012 partly as a consequence of corporations at a set value but broadly consistent. You see the enterprise fund drop off from 12 to 15, primarily driven by waste water revenue bond was not issued in 2013. Also see redevelopment steady, spike in 2010 as it was just a fact that property taxes were collected so you see a fairly steady progression from year to year in all major categories Only thing as we go to the expenditure side that this year pattern holds that we are in the market we higher rated expenditures than enterprise funds as compared to where we were 3 years ago that's a result of the long term control plan kicking in so that a trend that you can expect to continue unless there are measures that drive down the regular expenditures that are required of us in the long term control plan for our obligations on waste water. You can also see an uptick in debt capital projects a lot of that is the fire department station go live this past year, not quite ready to cut ribbon on the Luther Taylor fire training center is near completion as we look to those funds from last year the number will be a little bit higher than we are used to seeing Showed a chart overtime showing how overall revenues can stack up, part of this can be a little misleading because if you think of this just as a flow or keeping up more than we take in than you would leave out the numbers when you do issue a bond, that's part of what you're seeing here, If you measure the space between the blue line and the red line that's the creation of extra funding during the bond issue that's what happened in 2012 that's what makes it possible to be under the incoming revenue in 2013, just want to bear in mind the blue dot represents the revenue under the red dot represents the expenditures the general fund was not that balanced when it came to 2013. This is a closer view on the general funds in particular, the property taxes receipts throws off 2008 and 2009 the bottom line the finance team has done a good job in working with the council and anticipating the budget process how the revenue expenditures are going to fall out and that's allowing us to keep those dots as close together as possible. Some revenues you might be surprised to learn from where most of all the revenue comes from: Would like to highlight the breakdown of revenue comes from charges and services: sewer and water bills are the single biggest source of dollars that would be fees related to waste water, water, solid waste; we also get parks revenue, followed by property taxes which comes from the general fund, parks as well as the hall of fame and tip funds, intergovernmental funds doesn't capture internal transfers covers funds that come from the state branch like federal government and pension release, transfers in you can think of as an accounting artifact, this is how they account for the dollars that move around their department. Local income tax includes both public safety and county option income tax, bond proceeds lower number this year then you might be used to seeing just as a result of the waste water bond. In terms of where the dollars are going public safety accounts for the biggest account followed by water and sewer, so when you add those two together they serve the majority of what the city expenditures go to are basic services like life support making sure the basics are easy for citizens, Highlighted this slither on the chart, as the general government category as the overhead which includes administration and finance team, legal team, and all of us city council and mayor's office budgets in this category. Vast majority general fund dollars goes to public safety this is one of the reasons for the supported property tax in our budgets, careful to make sure there is predictability and adequacy in the amount of taxes 2