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Home My WebLink About01. 2017 Opening Budget Presentation to Council2017 Opening Budget Presentation August 15, 2016 Context for the 2017 City Budget • Growth and strength – South Bend’s economy and population continue to grow; civic energy is high, and financial reserves remain healthy. • Fiscal challenges ahead– Despite economic growth, property tax revenues are flat while personnel costs are rising. Fiscal curb in 2020will tighten city finances as programmed tax cut goes into effect. State gas revenues continue to fall farther behind as inflation and fuel economy increase. • Major initiatives on track – e.g. GVI, Digital Inclusion, Workforce Development, Vacant and Abandoned Properties, and Quality of Place improvements including Smart Streets and BluewaysProject. Core Values 4 5 South Bend Common Council’sPriorities • Diversity in the Workforce (especially in Public Safety) • Increase Community Policing • Light Up South Bend Program • Improve City Infrastructure • Infill of Vacant Lots • Code Enforcement Efficiency & Staffing • Curb and Sidewalk Programs • Expand Shot Spotter Program • Continue Programs to Combat Illegal Dumping & Graffiti • Speed Control in Neighborhoods • Grass Cutting Program • Stronger neighborhood plans and development from the Department of Community Investment • Increase technology access for the public to utilize city services, such as PC terminals for online payment • City ID Program 20162017 7 2017 Budget Priorities  Safe Community for Everyone  Strong, Inclusive Economy  Thriving Public Spaces  Vibrant, Welcoming Neighborhoods  Robust and Well ‐Planned Infrastructure  All Residents Empowered with Education, Mobility and Technology 2017 Budget Highlights  Safe Community for Everyone • Approximately $70 million budgeted for Police and Fire, 20% of overall City budget, 82% of the General+ funds • SBPD currently reorganizing for efficiencies, effectiveness, and community ‐ oriented policing efforts • $992,000 investments in water capital projects and $4,442,000 in wastewater projects • $1,512,000 in EMS and Fire Capital investments  Strong, Inclusive Economy • $63 million (inclusive of TIF and Enterprise Funds) for Community Investment • $320,000 for workforce development programing • $246,000 on Made Youth Mentoring Program • Extended Access to free wireless providing & education and training to underrepresented population  Thriving Public Spaces • Major upgrades planned for Charles Black Center using 2015 EDIT Park Bond Funds. • New Howard Park Ice Rink budgeted with funding from the TIF. • A new department, Venues, Parks and Arts, is being established to better and more efficiently serve the community and will encompass the Morris, Palais, Century Center and Parks. • Currently reimagining our entire system of riverfront parks and trails ‐‐ funded in part from a recent $5 million Regional Cities Grant. 2017 Budget Highlights (cont.)  Vibrant, Welcoming Neighborhoods • $200,000 on Light Up South Bend • $221,000 in Grants & Subsidies for neighborhood improvement opportunities • $625,000 to address Vacant & Abandoned Properties  Robust, Well ‐Planned Infrastructure • $4,800,000 for Paving, Curb & Sidewalk Program • $3,620,000 in federal reimbursements anticipated • $1,000,000 to be used for road improvements from the Special LOIT Distribution received in 2016.  All Residents Empowered with Education, Mobility and Technology• Wireless downtown and in neighborhood centers • Partnerships with the Schools and Community for Technology Education • $659,000 budgeted for School Resource Officers (50% reimbursement expected from the SBCSC) • $125,000 budgeted for School Crossing Guards • $180,000 to be spent on bus shelters/bike share program throughout the community 2017 Budget Highlights (cont.)  Great Employer with Great Employees • Raising minimum wage for city employees to $10.10 over three years. For 2017, minimum wage is set at $9.15 for all positions • Addressing largest salary disparities with market to retain and attract talent • Accommodating an 8% increase in health insurance charged to all departments  Enduring Financial Strength • Balanced budget for General Fund, PS LOIT, EDIT, and COIT • Keeping other funds on track for long term balance  Excellent Services and Efficient Processes • Funding for Business Analysts to improve processes and technology to improve services and efficiency  Modeling our Values (Excellence, Accountability, Innovation, Inclusion and Empowerment) • Employee Recognition Program • Employee Performance Management Based on Values • Implementation of Diversity and Inclusion Plan  Robust Physical and Technological Capital Assets • Approx. $1 million budget for assets which will allow us to continue to keep up with technological changes  Reliable Compliance with Regulations and Well ‐Managed Risk • Budgeting for full allocations for potential liability claims while maintaining a fiscally responsible budget • Proactive claims investigation and evaluation leading to lower claims being paid out by the City • 48 hour average turn around time for APRA requests in 2016  Effective, Responsive Leadership and Communication • Continuing to promote transparent and responsiveness with residents and business owners • Further integrating improvements based on 311 data • Simpler, easier‐to ‐navigate digital interfaces Flat Projected Property Tax RevenuesDue to State Circuit Breakers Tax Cut (General Fund and Parks Only) 30,000 35,000 40,000 45,000 50,000 55,000 60,000 Thousands $3.05 million estimated property tax reduction in 2020 2009 Actual2010 Actual2011 Actual2012 Actual2013 Actual2014 Actual2015 Actual 2016 Estimated 2017 Estimated 2018 Estimated 2019 Estimated 2020 Estimated Net Levy55,869,000 50,333,000 48,076,000 46,791,000 44,831,000 45,274,000 44,897,000 46,156,000 46,753,000 47,644,000 48,548,000 45,469,000 Percent YearCEDITCOITPS LOITTotalChange 2010$ 9,090,415 $ 7,648,824 $ 6,078,454 $ 22,817,693 ‐‐‐‐ 20117,300,866 7,097,462 5,293,619 19,691,947 ‐13.70% 20129,068,785 8,610,742 6,605,601 24,285,128 23.33% 20138,177,352 7,846,939 5,892,386 21,916,677 ‐9.75% 20148,796,821 8,645,811 6,380,029 23,822,661 8.70% 2015 9,181,206 8,859,912 6,466,190 24,507,308 2.87% 2016 Estimate9,594,602 9,454,023 6,791,160 25,839,785 5.44% 2017 Estimate9,619,2399,643,1036,926,00026,188,3421.35% 29 $ ‐ $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 20102011201220 13201420152016Estimate 2017 Estimate Thousands Local Income Tax Revenue ‐ 2010 to 2017 CEDIT COIT PS LOIT General Fund, Innovation/Technology/311, PS LOIT, COIT & EDIT 2017 Proposed Expenditures By Department 530,000 1,240,000 1,550,000 1,800,000 1,880,000 3,980,000 4,670,000 58,890,000 Mayor, Clerk and Council* Innovation & Technology* Admin, Finance, Legal & General Operations* 311 Customer Service* 17,390,000 VenuesDebt ServiceEngineering* Public SafetyEconomic Development & Neighborhoods *Inclusive of costs for Parks and enterprise funds 2017 Budgeted ExpendituresAcross All Funds G&A, 3% Public Safety, 23% Economic Development, 24% Utilities23%Neighborhoods, 17% Internal Service Funds, 10% 20172017 ProposedPercent of Expenditures by Activity BudgetTotal Economic Development$ 87,650,000 24%Public Safety85,130,000 23%Utilities84,340,000 23%Neighborhoods63,300,000 17%Internal Service Funds35,340,000 10%General & Administrative (G&A)12,830,000 3%Other Costs10,000 0%Total Expenditures by Activity$ 368,600,000 100% 2017 Proposed ExpendituresGeneral Fund $0 $10$20$30$40$50$60$70 ActualAmendedProposed201520162017 Millions EconomicDevelopmentGeneral & AdministrativePublic Safety 2015201620172017 ActualAmendedProposedPercent ofExpendituresBudgetBudgetTotal Public Safety $ 44,400,000 $ 46,100,000 $ 52,000,000 85%General & Administrative6,100,000 6,800,000 7,100,000 12%Economic Development1,400,000 1,600,000 1,800,000 3%Total Expenditures$ 51,900,000 $ 54,500,000 $ 60,900,000 100% Budgeted Full ‐ Time Positions 1,164 1,160 1,161 1,096 1,110 1,121 8008509009501,0001,0501,1001,1501,200 2012 Budget2013 Budget2014 Budget2015 Budget2016 Budget2017 ProposedBudget 2017 Budgeted Full-Time Headcount Summary 297 264 107 101 301Public WorksPoliceFire/EMSVenues, Arts & Parks General Government and Other Code Enforcement /Animal Control Dept. of Community Investment 28 23 City of South Bend 2017 Proposed Budget Concluding Thoughts • Working diligently to get ahead of the 2020 tax cut/fiscal curb • Overall City budget of $368 million – reduced overall expenditure from 2015 due to lower capital spend – expenditures higher than revenue mostly due to timing of bond proceed usage for infrastructure investments • General Fund, EDIT and COIT budget of $85.5 million is currently a balanced overall budget • Moving towards long ‐ term balance while relying on modest reserves in certain other funds to sustain key expenditures • City budget maintains our city’s comeback through: – continued investment in our neighborhoods, city center, and people – use of technology and efficiency to drive results – maintaining resources needed to keep high levels of service – measuring our performance for continuous improvement • We respectfully ask Council to approve our 2017 budget request Appendix Projected Property Tax Levies Due to State Circuit Breaker Tax Credits General Fund $0 $5,000 $10,000$15,000$20,000$25,000$30,000$35,000$40,000$45,000$50,000 Thousands 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Estimated 2017 Estimated 2018 Estimated 2019 Estimated 2020 Estimated Net Levy (in thousands)$46,551 $43,441 $42,066 $42,160 $38,369 $38,715 $38,619 $38,089 $38,589 $39,332 $40,082 $37,543 $2.54 million estimated property tax reduction in 2020 20 Projected Property Tax Levies Due to State Circuit Breaker Tax Credits Parks & Recreation Fund $0 $1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000$9,000 $10,000Thousands 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Estimated 2017 Estimated 2018 Estimated 2019 Estimated 2020 Estimated Net Levy (in thousands)$8,606 $8,483 $8,313 $8,375 $7,624 $7,761 $7,742 $7,636 $7,736 $7,884 $8,036 $7,526 $510,000 estimated property tax reduction in 2020 21 Projected Property Tax Levies Due to State Circuit Breaker Tax Credits TIF Funds $0 $5,000 $10,000$15,000$20,000$25,000$30,000$35,000 Thousands 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Estimated 2017 Estimated 2018 Estimated 2019 Estimated 2020 Estimated Net Levy (in thousands)$25,418 $28,248 $31,296 $27,673 $29,772 $28,469 $27,091 $27,486 $27,615 $27,784 $28,007 $24,184 $3.8 million estimated property tax reduction in 2020 22 Flat Projected Property Tax RevenuesDue to State Circuit Breakers 23 Flat Projected Property Tax RevenuesDue to State Circuit BreakersLevies for TIF