07-28-09 Council to consider priorities to retain in 2010 budget

Home Browse Search

Office of the Mayor NEWS RELEASE July 28, 2009 5 p.m. Council to consider priorities to retain in 2010 budget Contact: Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564 The South Bend Common Council begins a series of hearings today on the City’s proposed 2010 budget, facing the challenge of continuing existing services with a projected decline of $6 million to $8 million in revenue. With the recent adoption of an increase to St. Joseph County’s Local Option Income Tax, the projected revenue loss isn’t as steep as the $22 million to $24 million cut that would have taken effect as a result of the state’s cap on property taxes (fully implemented in 2010). Increases in the county’s Economic Development Income Tax, along with imposition of new property tax replacement credits and a public safety tax, will raise a projected $16 million in revenue. First, Mayor Stephen J. Luecke has instructed City departments, with three exceptions, to submit budgets that reflect the more dramatic cuts proposed before passage of the Local Option Income Tax. This will enable the Council and the City administration to select which services to restore with the additional revenue anticipated from the increased county taxes. City Controller Catherine Fanello said the proposed cuts announced for 2010 represented a decrease of nearly $12 million when compared with the 2009 budget. Leaders of the Police, Fire and Parks & Recreation departments were instructed to make recommendations for restoring some of the cuts originally proposed for their services and programs. Based on projected increased revenue from the new public safety tax, the Police Department will add $2 million back into its proposed budget, while the Fire Department will restore $3 million. In anticipation of additional revenue in the Parks General Fund, the Parks & Recreation Department will restore about $900,000 in funds. The Common Council will review proposed budgets for those departments at 3:30 p.m. Wednesday, July 29.Other departmental budgets before the Council, however, will reflect the full impact of what originally was to be a 27 percent cut in revenues citywide.