HomeMy WebLinkAbout12-14-09 Capital budget to increase, yet stay below historic levels
Office of the Mayor
NEWS RELEASE
December 14, 2009
4:15 p.m.
Capital budget to increase, yet stay below historic levels
Contact:
Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564
or City Controller Gregg Zientara, 235-9216
The City of South Bend is requesting $9.9 million in 2010 for capital expenditures. Upon
approval of the Common Council, $8.6 million will be used to replace and or maintain
existing assets of city operations.
The balance of the requested capital, $1.3 million, will be used to fund certain re-
engineering or efficiency-related projects, including the recently announced energy
office.
The capital budget of $9.9 million requested for 2010 compares with investment levels of
more than $18 million annually in 2007 and 2008. Spending in 2009 is $3.1 million, a
dramatic reduction from prior years in light of the uncertainty with property tax revenues.
The 2010 capital expenditure budget, introduced today to the South Bend Common
Council, includes road work, new police vehicles, fire equipment and needed
maintenance for city-owned facilities. It seeks to replace City infrastructure and operating
equipment to maintain efficient and cost-effective service to taxpayers.
There are new investments, such as connecting Northside Trail with the Mishawaka
Riverwalk and providing an operating budget for a new Energy Office, as well as
significant renovations to key facilities, including the Newman Center and Fire House
No. 5. Nearly 62 percent of the total spending, however, is for maintenance and
replacement costs. About 4 percent of the proposed budget is focused on projects that
will re-engineer operations or produce new efficiency in government operations.
Revenue sources for the capital budget are varied, with about one-third each coming from
capital funds and special revenue sources. Property taxes provide only 14 percent of
revenue for capital expenditures.
“It is important for the City to invest in capital projects to keep our equipment and
facilities safe and efficient, preventing much larger expenses later on. Tight budget
constraints have hampered our ability to fully fund capital expenditures on par with our
annual depreciation level of $21.2 million,” said City Controller Gregg Zientara. “When
the Common Council approved an increase in the economic development local option
income tax, that provided an additional resource for capital, and Mayor Luecke requested
that we set those resources aside for reinvestment in City equipment, facilities and
infrastructure.”
Engineering improvements account for the largest portion, 19 percent, of the $9,898,803
in expenditures, followed by investments in the Fire and Police departments, about 12
percent each, respectively.
The largest single engineering project, $635,000, will widen and improve Cotter Street
from Prairie Avenue to Kendall Street to serve Ignition Park. It is being paid primarily by
federal dollars and the project will be let by the Indiana Department of Transportation.
Traffic signals will be modernized along Mishawaka Avenue and Western Avenue with
the City’s 20 percent share supporting a federal investment of $1.6 million.
The Northside Trail will be extended from Indiana University South Bend to connect
with the western terminus of Mishawaka’s Riverwalk. Federal aid will cover $1.5 million
of the project. Next year will see the first of three years’ worth of improvements to Ewing
Avenue from Meade Street to Michigan Street. The annual project cost of $4 million is
supplemented by $600,000 from the City to complete design work.
On the west side, the intersection of Western Avenue and Olive Street will be improved
with the addition of a protected turn lane as part of a $400,000 project. The city’s GIS
system also will receive a $100,000 investment for maintenance and upgrades. (The
Street Department also requested a capital allocation of $893,050 – $300,000 devoted to
concrete repairs and the balance for replacement or maintenance of equipment.)
The Fire Department’s largest single expenditure is $181,164 over five years to purchase
a new quintuple combination pumper to replace a 1986 unit. The “quint” serves the dual
purpose of an engine and a ladder truck, providing five functions: pump, water tank, fire
hose, aerial device and ground ladders. Fire also has requested:
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$125,000 for renovation and expansion of Fire Station No. 5, 2221 Prairie Ave.,
the city’s second oldest fire station, built in 1954. An additional $100,000 is
allocated for maintenance at all of the City’s 11 fire stations.
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$124,000 for a new firefighter escape system, life safety equipment that has not
been provided by grants.
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$140,746 for the first of two years toward purchasing a new rescue and
ambulance unit.
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$375,000 for a new pumper to replace a 1991 pumper (which, in turn, would
replace a 1973 reserve pumper).
The Police Department will continue scheduled replacement of 35 patrol cars in 2010 at a
cost of $770,000 including five hybrid cars for use by administrators or detectives. It also
will spend $50,000 to replace Tasers and $8,000 to replace radios.
The Parks and Recreation Department has the largest number from any department.
Significant projects among its $1,385,540 in proposed expenditures for 2010 include:
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$100,000 for renovation to the Newman Center and more than $150,000 in repair
and maintenance work at other facilities.
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$75,000 to heat the conservatory
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$60,000 in paving work at Potawatomi Zoo along with $76,500 to renovate
exhibit space.
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$75,000 for new equipment at the O’Brien Fitness Center.
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$50,000 in upgrades to the Belleville Softball Complex.
The capital expenditure budget also includes requests for:
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$410,000 for acquisition and demolition of eight public housing units in the
Northeast Neighborhood in conjunction with the development of new housing in a
triangle-shaped area north of Ind. 23 and east of Eddy Street.
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More than $663,000 in computer-related costs citywide.
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$200,000 to extend water mains throughout the city.
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$80,000 to pave the LaSalle Park parking lot.
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$150,000 to fund operations for the City’s new Energy Office, which is projected
to save the City more than $2 million annually through improved efficiency.
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$100,000 for maintenance of Century Center through the Professional Sports
Development Tax. An additional $552,450 in capital expenses includes more than
$200,000 to replace chairs and dollars and another $50,000 for exterior
landscaping.
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