HomeMy WebLinkAbout2019 Opening Budget Presentation to Council2019 Opening Budget PresentationAugust 1, 20181
Context for the 2019 City Budget•Fiscal challenges ahead–Fiscal curb in 2020 will tighten city finances as programmed tax cut goes into effect. Property taxes are increasing slightly and the net assessed value is increasing at a modest rate (3.82% in 2017). •Growth and strength –South Bend’s economy and population continue to grow; civic energy is high, and financial reserves remain healthy. Unemployment rate is at 3.6% as of May 2018, which is slightly higher than in May 2017 (3.1%) but remains very low.•Major initiatives on track –e.g. Quality of Place enhancements including streets and sidewalks, MY SB Parks and Trails, Inclusive Economic Growth and Development, Neighborhood Planning, and Diversity, Human Capital and Inclusion Efforts.2
Core Values3
4
2018 South Bend Common Council’s PrioritiesAnd Overall 2018 Budget Wins•Quality of Life & Neighborhoods•Stronger Residential Development from Community Investment (Specifically in the most challenging Districts) and Affordable Housing •Funding for Housing Repair initiative – pilot launched in July 2018•Expansion of “Light Up South Bend” Initiative•Light Up South Bend funding•Code Enforcement•Funding rental inspection program, including 2 additional code inspectors, in Code Enforcement•Code Enforcement ‐onboarded with 311 in April 20185
2018 South Bend Common Council’s PrioritiesAnd Overall 2018 Budget Wins•Quality of Life & Neighborhoods (continued)•Vacant and Abandoned Housing Phase Development Phase II•Funding to address vacant & abandoned houses in addition to vacant and abandoned housing grants•Economic Development, Job Training•Funding for Small Business and Workforce Development (including Pathways Program, WorkOneprograms, Lincoln Way Business Center and training & workshops on doing business within the City)•Funding for South Shore Relocation Feasibility Study•Funding of Façade Improvement Grants6
2018 South Bend Common Council’s PrioritiesAnd Overall 2018 Budget Wins•Infrastructure/City Corridors (Curbs, Sidewalks, Streets, CSO) •Funding for median channelization devices for railway Quiet Zones •Funding for Lincoln Way/Charles Martin Streetscape Project•Funding for Curbs & Sidewalk Program •Funding for potential Energy Savings Contracts, including solar, at various City facilities •Monroe and Studebaker Safe Routes to School program – 8,400 ft of Sidewalk, 5,800 ft of Curb and 545 Curb Ramps installed•Neighborhood Drainage projects funded•Traffic Calming pilot projects funded•Continue funding for water and wastewater operations and capital improvement through user fees 7
2018 South Bend Common Council’s PrioritiesAnd Overall 2018 Budget Wins•Public Safety & Traffic Patrols•Funding for Goodwill Group Violence Intervention (GVI) Team•Full Funding for Police Officers and related programs•Community Policing efforts funded (bike patrols, athletic league programs, etc.)•School lead testing and other lead related projects•Parks & Recreation•Major investment in MY SB Parks & Trails plan, including $24.3 million of bonds and $5 million Regional Cities grant (including many restroom and other park updates)•Charles Black Center improvements to be completed in August 2018•Continued work on the Cemetery and related projects 8
2018 South Bend Common Council’s PrioritiesAnd Overall 2018 Budget Wins•Diversity in the Workforce•Continuing to fund diversity efforts for City workforce through various recruitment efforts, training for staff, and Diversity & Inclusion Intern program •Other Budget Wins in 2018•Parental Leave Program has proven to be a benefit to several employees so far in 2018 (over 20 employees YTD)•With the help of Council, the City now offers an additional PERF benefit (MyChoice Plan) which allows for additional retirement benefit options to new employees•Launch of new user‐friendly website, that prioritizes most‐used services and information, in July 2018•Permanent Supportive Housing (Oliver Apartments, 32 Units)•Disparity Study Progress –full report anticipated to be released near 2ndquarter of 20199
2019 Council Budget GoalsPutting neighborhoods first, by creating a better quality of life for all communities!More Resources for the Lead issueResources for Code EnforcementExpansion of “Light Up South Bend” InitiativeShot Spotters in neighborhoods that have experienced an increase of criminal activitiesPublic Safety & Traffic PatrolsStronger Community Investment in the most challenging districtsExpansion of Traffic Calming efforts in other neighborhoodsIncrease in resources for curbs and sidewalksJob CreationResources for Drainage issuesInfrastructure (Streets, CSO)Diversity in the workforce, city programs and planning initiatives
2019 Resident Budget GoalsWe have heard the following items as important goals for residents through Budget Meetings and Surveys:Care of Sidewalks and Alleys Maintenance of neighborhood parks and restroom facilitiesMaintenance of Street LightsTraffic Calming in NeighborhoodsDrainage issuesCode Enforcement in specific areas of the City
2019 Budget PrioritiesSafe Community for EveryoneStrong, Inclusive EconomyThriving Public SpacesVibrant, Welcoming NeighborhoodsRobust and Well‐Planned InfrastructureAll Residents Empowered with Education, Mobility and Technology 12
2019 Budget HighlightsNew Budget Items for 2019Funding for lead, potentially leveraged with pending HUD grant, in addition to AmeriCorp program which has the potential to assist with lead related projectsFire Department – Community Paramedicine program to be developed in 2019Storm Water Funding Requests – New fees to assist with future drainage projectsIncrease of Housing Repair funds in 201913
2019 Budget HighlightsSignificant Departmental Reorganizations Propose to establish City Plan Commission and integrate land use and development functions within the same department, i.e. Building, Planning and DevelopmentEfficiencies and strategic implementation of City planning effortsCounty GIS proposal to fold into City’s Innovation Team in 201914
2019 Budget HighlightsPersonnel Additions for ConsiderationNOTE: Actual requests will be made during specific departmental budget hearings and on September 19thNeeds exist in various departments to execute the following:Project ManagementCommunity EngagementZoning Reform Engineering and Inspection Processes (relating to Parks and TIF Projects)Community Paramedicine Program StaffGIS ServicesCivilian Responsibilities at Police Concrete and PavingParks Maintenance Administrative Responsibilities for new and existing programs15
2019 Budget HighlightsSafe Community for EveryoneCouncil Request: Funding of Public Safety & Traffic Patrols (including ShotSpotter); Resources for the Lead Issue; Resources for Code Enforcement; Expansion of “Light Up South Bend’What is included in the 2019 Budget:South Bend Police DepartmentFull funding for Sworn Police OfficersFunding for ShotSpotter16
2019 Budget HighlightsSafe Community for Everyone (continued)What is included in the 2019 Budget:South Bend Fire DepartmentFull funding for Sworn Firefighters Funding to develop and maintain a Community Paramedicine ProgramFunding for lead, potentially leveraged with pending HUD grant, in addition to AmeriCorp program which has the potential to assist with lead related projectsCode Enforcement includes funding Rental Unit inspection program Light Up South Bend Program continues to be fundedThe County and the City continue to work together to fund the 911 Center (PSAP)17
2019 Budget HighlightsStrong, Inclusive EconomyCouncil Request: Funding for Job Creation and Diversity in the Workforce, City Programs and Planning Initiatives What is included in the 2019 Budget:Funding for Small Business and Workforce Development (including Pathways Program, WorkOne programs, and training & workshops on doing business within the City)Funding of Façade Improvement Grants Housing Financing Gap Assistance and Community Development Financial Institutions (CDFI) fundingFunding for Small Business Microlending 18
2019 Budget HighlightsThriving Public SpacesWhat is included in the 2019 Budget:Continued efforts on major park improvements through My SB Parks & Trails (http://sbvpa.org/mysbparksandtrails/) Continued work on the Cemetery and related projectsFunding for Zoo Bond related to a new entry way into the Zoo and various improvements to be issued in late 2018 Parking Garage Elevator Upgrades and other improvements 19
2019 Budget HighlightsVibrant, Welcoming NeighborhoodsCouncil Requests: Funding for Quality of Life & Neighborhoods including stronger community investment in most challenging districts and traffic calmingWhat is included in the 2019 Budget:Funding for New Housing Construction initiative and Housing Repair initiativesIncreased funding for Traffic Calming Funding to address Vacant & Abandoned houses and related grants Substantial TIF investment in neighborhood plans20
2019 Budget HighlightsRobust and Well‐Planned InfrastructureCouncil Request: Funding for Curbs & Sidewalks and Streets/City CorridorsWhat is included in the 2019 Budget:Complete Streets project on Bendix Drive – matching grant to be received to assist with funding on this projectFunding for median channelization devices for railway Quiet Zones Significant funding for Curbs & Sidewalks as well as a reimbursement program for homeownersContinue funding for water and wastewater operations and capital improvement through user fees 21
2019 Budget HighlightsAll Residents Empowered with Education, Mobility and Technology Funding for Fire Department High School Dual Credit program (self‐funding program through payments from High Schools)Funding of MetroNet Build Out Funding of expanded Free WifiFunding for new City Wide Financial (ERP) system to allow for even greater transparency for the Administration, Council and City ResidentsWorkforce Transportation Barriers Pilot Program – Bloomberg grant potential for this project in 201922
2019 Budget HighlightsGreat Employer with Great Employees–What is included in the 2019 Budget:•Funding for TRANSPO bus passes for employees •Continuing to fund diversity efforts for City workforce through various recruitment efforts, training for staff, and paid intern programs•Continued funding for Employee Recognition and Employee Resource Groups •Parental Leave Program for all full‐time employees will be funded •Education for all employees around harassment and other related topics •SB Academy – various training options for employees regarding technology, leadership, and other important topics•Health & Wellness Center and access to community centers continue to save the City costs on medical expenses for employees and their families Excellent Services and Efficient Processes•Working towards the acceptance of credit cards in all departments by the end of 2019Modeling our Values (Excellence, Accountability, Innovation, Inclusion and Empowerment)•Including funding in the 2019 budget for paid intern positions across all City departments•Working towards paid internship policy for all City departments to follow in 201923
2019 Budget HighlightsRobust Physical and Technological Capital Assets•Funding for the replacement of the City’s outdated Financial (ERP) System which should be implemented by 1Q2020Reliable Compliance with Regulations and Well‐Managed Risk•Proactive claims investigation and evaluation leading to lower claims being paid out by the City•24‐48 hour average turn around time for APRA requests in 2018Effective, Responsive Leadership and Communication•Continuing to promote transparency and responsiveness with residents and business owners•Further integrating improvements based on 311 dataEnduring Financial Strength•Working to balance the budget for General Fund, PS LOIT, EDIT, and COIT•Keeping other funds on track for long term balance24
Flat Projected Property Tax RevenuesDue to State Circuit Breakers Tax Cut (General Fund, CCD and Parks Only)2009Actual2010Actual2011Actual2012Actual2013Actual2014Actual2015Actual2016Actual2017Actual2018Estimated2019Estimated2020EstimatedNet Levy55,869,00 50,333,00 48,076,00 46,791,00 44,831,00 45,274,00 44,897,0047,640,00 49,067,00 48,574,00 49,110,00 46,702,00$30,000$35,000$40,000$45,000$50,000$55,000$60,000Thousands$2.41 million estimated property tax reduction in 202025
2020 Fiscal Curb Discussions26To get ahead of the 2020 Fiscal Curb (where we are estimating a loss in property tax revenues of roughly $2.41 million in the General, Cumulative Capital, and Parks Funds) we are looking at the some of the following options:Ongoing Organizational Refinements Hiring Freeze in 2019 – all positions being filled will be required to go through a rigorous process to determine need prior to the ability to refill any vacancy Public Private Partnerships where possibleInvestigate additional funding sources (i.e. grants, opportunity zones)Looking internally at the budget as a two‐year budget
City of South Bend2019 Proposed BudgetConcluding Thoughts•Working diligently to get ahead of the 2020 tax cut/fiscal curb•Overall City budget of approximately $388 million•Aiming for a balanced budget in the General Fund, Public Safety LOIT, EDIT and COIT 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 growth 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 look forward to working with Council on the 2019 budget request27