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HomeMy WebLinkAbout02-2008 Newsletter0 TH U �b:li � ���T e� �Y��p EN D i FEBRUARY 2008 13t,"14", , 1 Mayor? STFphry J. LcFckf Letter from the Mayor Dear Friends and Neighbors, There has been much discussion recently about prop- erty taxes. These funds pay for important services: police and fire protection, parks, libraries and schools. Economic develop- ment and street repairs are also supported by property taxes, but we have become too reliant on them. We need a broader, flexi- ble funding stream for local government which is stable, ac- countable and equitable. It must ensure an adequate source of revenue to support key services — and any change to the current system should be revenue neutral so there is no windfall gain, nor catastrophic loss of revenue. For three years I have been an advocate for Hometown Matters, a proposal that would allow cities and towns to create a mix of local taxes, including sales and income, reducing reliance on property taxes yet still meeting communities' needs. I believe that it is still the best option to fix our property tax mess. How- ever, as I write this letter primary attention is focused on HB1001, the Governor's plan for tax caps. This plan is really a tax shift, not a tax cut. It imposes an additional 1% sales cap statewide and will force local governments to impose an income tax to replace lost revenue. The tax caps of 1% for homeowners, 2% for other resi- dential property and 3% for business property would cause the taxing units in St. Joseph County to lose $64.5 million per year. County government would lose $9.5M, Mishawaka would lose almost $7M, PHM Schools - $2.5M, South Bend Schools - $9.4M, Transpo - $1.5M, St. Joseph County Library - $2.6M. Revenue for the City of South Bend would shrink by $26.8M! That is over 1/3 of our property tax revenue! These dollars sup- port critical services in our city. The chart on this page shows Expenditures Funded By Property Taxes 2008 Budget Other General Gov't Serv. Code (Animal Control 4 %� 2 /o _2% Engr I Traf. & Lighting 7% Parks & Reco SI LISTED NO ENTIENDE INGLES Y NECESITA AYUOA PARA TRADUCIR :ESTE DOCLI MENTO, O Sl TIENE ALGUNA PREGLINTA, POR FAVOR LLAME AL TED (574) 235 -5858 X IOOO. how property taxes are used in South Bend. If these lost revenues are not replaced, we face dire consequences. We would lose al- most 50% of the funds we use for economic development, funds that have helped to bring over $1/2 billion of private investment and thousands of new jobs to South Bend. We would be in default on three bonds. Other property tax funds would be cut by over 25 %. That would result in: • 17 fewer employees in general government • 65 fewer police officers, and 15 fewer civilians in PD • 7 fewer personnel in our 911 communications cen ter • 62 fewer Firefighters, and 2 fewer office support personnel • That's a total loss of 152 total public safety per - sonel would mean closing our zoo and greenhouse • 7 fewer staff for Code Enforcement and Animal Control • 16 fewer personnel for the Street Department/ Traffic & Lighting • 4 fewer engineers and support staff, losing the cost savings of doing work in -house • 30 fewer Parks and Recreation employees - most likely this would mean closing our zoo and green house (cont'd on next page) S'sAkcadylPlawl_� g South Bend is committed to reducing costs while providing the services that residents and businesses require in a cost - effective and efficient manner. > Reduced city workforce by 95 positions since 2000. > Last year, many city employees received no raise. > Using technology to reduce costs and be more effective: • Replacing incandescent bulbs in our traffic signals with LED lights saving $2.5 million over 10 years. • New street sweepers and pothole patchers allow fewer staff to perform the same or more work. • Use of methane generated at the Wastewater Treat- ment Plant saves $250,000/yr in energy costs. • Consolidation of mowing operations in the City. • Sharing several governmental functions with the County. Police 11 /o Public Safety -.,—Total 53% Com m. & Econ Develop. 21% SI LISTED NO ENTIENDE INGLES Y NECESITA AYUOA PARA TRADUCIR :ESTE DOCLI MENTO, O Sl TIENE ALGUNA PREGLINTA, POR FAVOR LLAME AL TED (574) 235 -5858 X IOOO. how property taxes are used in South Bend. If these lost revenues are not replaced, we face dire consequences. We would lose al- most 50% of the funds we use for economic development, funds that have helped to bring over $1/2 billion of private investment and thousands of new jobs to South Bend. We would be in default on three bonds. Other property tax funds would be cut by over 25 %. That would result in: • 17 fewer employees in general government • 65 fewer police officers, and 15 fewer civilians in PD • 7 fewer personnel in our 911 communications cen ter • 62 fewer Firefighters, and 2 fewer office support personnel • That's a total loss of 152 total public safety per - sonel would mean closing our zoo and greenhouse • 7 fewer staff for Code Enforcement and Animal Control • 16 fewer personnel for the Street Department/ Traffic & Lighting • 4 fewer engineers and support staff, losing the cost savings of doing work in -house • 30 fewer Parks and Recreation employees - most likely this would mean closing our zoo and green house (cont'd on next page) S'sAkcadylPlawl_� g South Bend is committed to reducing costs while providing the services that residents and businesses require in a cost - effective and efficient manner. > Reduced city workforce by 95 positions since 2000. > Last year, many city employees received no raise. > Using technology to reduce costs and be more effective: • Replacing incandescent bulbs in our traffic signals with LED lights saving $2.5 million over 10 years. • New street sweepers and pothole patchers allow fewer staff to perform the same or more work. • Use of methane generated at the Wastewater Treat- ment Plant saves $250,000/yr in energy costs. • Consolidation of mowing operations in the City. • Sharing several governmental functions with the County. [Mayor's Letter cont'd from previous page) St. Paddy's Day improvements: up to $2,000 for mid -block lots, and up to $4,000 for Tent Party & If we tried to minimize the impact on public safety and we com- , pletely eliminated Parks, our capital fund for equipment, and our support for !l► Pub Tour the Morris Performing Arts Center & Palais Ballroom, we would still need schedules and completes the work. to make 10% cuts in the other areas — 26 fewer police officers, 25 fewer ■ Friday, March 14th firefighters, 10 fewer support personnel for public safety (including 3 in the 5:00 -11:00 PM Communications Center), 18 fewer general government or street department ■ LaSalle Hotel Parking staff. Similar cuts would be needed by the County and Mishawaka, by our Lot (237 N. Michigan St.) downtown South schools and libraries. This scenario is unacceptable. We have worked hard ■ Bend. to provide efficient and effective services for our taxpayers. A box on this Kick off your St. Patirck's Day weekend page lists some of the cost savings we have achieved. We cannot cut over ■ with the downtown South Bend Tent Party and 33% of our levy and continue to provide essential services. Replacement Pub Tour! Join Stillshot and Mack Pherson and funds are necessary to provide the basic services that our community de- ■ the Struts as they rock the night away in down - mands. ■ town! The tent party is just the beginning, HB 1001 does provide for a Local Option Income Tax to replace Transpo Trolleys will give partygoers free trans - revenue lost to the property tax caps. In St. Joseph County, it would take ■ portation on a pub tour experience like no other... 1.2% additional income tax to replace lost property taxes for all units of For more information, please contact Jitin government. If the State does not replace the revenues lost to the property ■ gain at 574- 282 -1110. www.t)addvt)artv.com tax caps, we will need to enact this local tax to support public safety, parks, ■ economic development and quality of life in South Bend and throughout St. Joseph County. I strongly support property tax reform that provides a fair, ■ understandable way of funding basic services and that does not strangle our ■ community. The current crisis is the result of several actions: the initial 7�7 court- ordered reassessment which shifted taxes from business to residential, ■ the implementation of trending to better reflect market value and the aboli- tion of the inventory tax. These were well- intentioned efforts that had unex- ■ pected results. We need to make sure that the current rush to fix property 12th Annual taxes does not have unintended consequences that further harm our commu- ■ River Bank Clean -Up nities. Sincerely, ■ The Friends of the St, Joe River will host the river bank clean up on Saturday, March 29, ■ 2008, from 9 A.M. until 1 :00 P.M. The stretch to be cleaned this year will be from the Logan Mayor Steve ■ Street bridge downstream to Howard Park. Check ■■■■■■■■■■■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■� in station will be at Veterans Memorial Park near ■ I.U. S.B. Trash bags and drinking water will be CURB & SIDEWALK PROGRAM ■ provided. Volunteers should dress appropriately The 15th annual, Good Neighbors/ Good Neighborhoods Curb and with long sleeve shirts, work clothes, and gloves. Sidewalk Program will help to replace damaged curbs and sidewalks to ■ For more information call Mike Hay at build a Safe City! : 574- 271 -0973. The program, open to all residential, commercial, institutional and ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ rental properties within City limits, offers several options: Sidewalk Only, Curb Only, or Combination Sidewalk & Curb. The City will pro- • You determine whether the Cost Proposal is vide up to 50% (Loan Program) or 60% (Cash Option) of the cost of acceptable and notify the Dept. of your deci- improvements: up to $2,000 for mid -block lots, and up to $4,000 for sion to proceed. corner lots, if work is done on both sides. 100% of needed wheelchair • Upon receiving your commitment, we send accessibility ramps, corner radii and alley approaches will be covered by your information to our contractor, who the City, for work done on your property. Contractors are chosen schedules and completes the work. through the public bid process to ensure the lowest cost, and scheduling Applications are available by calling the priority will be given for more than five (5) adjacent properties in a Div. of Engineering at 235 -9251, and are ac- block participating in the program. Several payment options are avail- cepted year- round. If we are unable to com- able, and Visa and MasterCard are accepted! plete your property by the end of the program Getting your curb and sidewalk replaced is easy! on October 3, 2008, we will be happy to put • Request and submit an application to the Division of Engineering. you on the list for 2009. • Applications processed in the order received. Join the 3,426 property owners who have • Inspector comes to your property and measures the work shared in nearly $7.7 million worth of improve - to be done. ments since the program began, and help us • The Division of Engineering sends you a Cost Proposal. build a safe, clean and attractive 21st Century City! hisit Our Website at www SoutliBendIN.gov!