HomeMy WebLinkAbout2018 Mayor's Annual Address to CouncilExcellence | Accountability | Innovation | Inclusion | EmpowermentMayor’s Annual AddressSouth Bend Common CouncilFebruary 11, 2019
2South Bend At a GlanceExcellence | Accountability | Innovation | Inclusion | EmpowermentPopulation Median Household IncomePer Capita Income Poverty Rate
3Agenda•2018 Key Initiatives•Financial Position•2019 Key Initiatives•Preparation for 2020 Fiscal CurbExcellence | Accountability | Innovation | Inclusion | Empowerment
Excellence | Accountability | Innovation | Inclusion | Empowerment2018 Key Initiatives
52018 Key Initiatives•Streets & Sidewalks•Light Up South BendRobust & Well-Planned Infrastructure•Investment in Development Projects•Inclusive Economy InitiativesEconomic Development & Neighborhoods•My SB Parks & TrailsThriving Public Spaces & Culture•Vacation Donation & Volunteer Time Off•City-Wide Performance EvaluationsWell Governed & Administrated CityExcellence | Accountability | Innovation | Inclusion | Empowerment
6Road FundingExcellence | Accountability | Innovation | Inclusion | EmpowermentFund Type 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 BudgetRevenue $ 9,895,950 $ 9,663,579 $ 10,356,311 $ 11,128,058 $ 10,506,103 Expense $ 8,630,943 $ 8,671,202 $ 9,369,849 $ 10,237,548 $ 14,345,9480 $2 M $4 M $6 M $8 M $10 M $12 M2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 BudgetMotor Vehicle Highway FundRevenueExpenseTotal Mileage Paved in 2018: 29.3 milesCity crews: 20.30 lane milesContracted: 8.09 lane milesAdditional: 0.91 milesFilled 22,100 potholes in 20182018 Curb & Sidewalks NumbersTotal Amount of New Curbs: 22,389 LFTTotal Amount of New Sidewalks: 30,329 LFT
7Road Funding (continued)Excellence | Accountability | Innovation | Inclusion | Empowerment
8Light Up South BendExcellence | Accountability | Innovation | Inclusion | Empowerment•Street Light Program–In May 2018, Indiana Michigan Power crews completed the 2017 round, installing 70 lights in the Near Northwest and River Park neighborhoods. –The 2018 program was installed in December 2018 in Council Districts 3 and 6. •Lamppost Lighting Program –Solar Lampposts Offered–For 2018, the City selected two target areasbased on income, number of vacant lots, and need for lighting in the neighborhood.–Cost share:•90/10 ($40 for residents) for two target areas. 50/50 ($200 for residents) for outside target areas.. –88 lampposts installed (74 of those within the target areas)•Up from just 10 applicants in 2017
9Economic DevelopmentExcellence | Accountability | Innovation | Inclusion | Empowerment
10Creating an Inclusive Economy–Office of Diversity & Inclusion •The City of South Bend Office of Diversity and Inclusion (ODI) partnered with South Bend Housing Authority to collect workforce skill data from Housing Authority residents, creating a usable list of availableSection 3 skilled workers for City projects and added Section 3 Businesses to the list of potential vendors and contractorsthe City can engage to bid on procurement and contracting opportunities.•ODI finalized online toolkits for new and existing small, emerging, local, MBE, WBE, VBE, LGBTE, DOBE, DVBE, DBE and partnered with Buildingto update registration forms to include inclusive business certifications designations.Excellence | Accountability | Innovation | Inclusion | Empowerment
11My SB Parks & TrailsExcellence | Accountability | Innovation | Inclusion | Empowerment
12My SB Parks & TrailsExcellence | Accountability | Innovation | Inclusion | Empowerment
13My SB Parks & TrailsExcellence | Accountability | Innovation | Inclusion | Empowerment
Excellence | Accountability | Innovation | Inclusion | EmpowermentCity of South Bend Financial Position
15Financial PositionExcellence | Accountability | Innovation | Inclusion | EmpowermentLiquidityDebtCapital AssetsOperations (Revenue & Expenditures)
16Financial PositionExcellence | Accountability | Innovation | Inclusion | EmpowermentLiquidityDebtCapital AssetsOperations (Revenue & Expenditures)
17Ending Cash BalanceExcellence | Accountability | Innovation | Inclusion | Empowerment
18Cash BenchmarkingExcellence | Accountability | Innovation | Inclusion | EmpowermentSecond Class City refers to Cities with population in excess of 35,000 residents and a City Council of 9 members.Cash and InvestmentsIndiana Second Class CitiesLatest data available via the Indiana Department of Local Government FinanceCityCash & InvestmentsAnnual ExpendituresCash as a % of ExpendituresElkhart $144,451,624 $116,092,204 124.43%Bloomington $174,579,084 $143,574,677 121.59%Noblesville $112,756,010 $108,194,230 104.22%Kokomo $81,069,648 $86,615,284 93.60%Jeffersonville $91,554,536 $100,177,984 91.39%South Bend $288,674,723 $338,032,337 85.40%Lafayette $122,151,234 $147,282,280 82.94%Westfield $45,621,172 $59,545,788 76.62%Columbus $95,992,054 $125,395,141 76.55%Evansville $251,521,334 $344,454,116 73.02%Fort Wayne $407,036,470 $566,425,128 71.86%Fishers $135,584,159 $189,666,210 71.49%New Albany $53,981,387 $84,910,803 63.57%Mishawaka $115,499,328 $187,162,178 61.71%Anderson $118,794,380 $215,441,081 55.14%Richmond $82,210,193 $163,423,864 50.30%Merrillville $20,909,183 $46,091,178 45.36%Hammond $123,262,003 $278,894,402 44.20%Portage $37,734,290 $95,545,983 39.49%Terre Haute $39,157,473 $128,929,999 30.37%Carmel $66,499,479 $220,204,425 30.20%
19Financial PositionExcellence | Accountability | Innovation | Inclusion | EmpowermentLiquidityDebtCapital AssetsOperations (Revenue & Expenditures)
20Debt ProfileExcellence | Accountability | Innovation | Inclusion | Empowerment
21Debt per CapitaExcellence | Accountability | Innovation | Inclusion | Empowerment
22Debt per CapitaExcellence | Accountability | Innovation | Inclusion | EmpowermentDebt per CapitaIndiana Second Class CitiesLatest data available via the Indiana Department of Local Government FinanceCity Debt Outstanding Population Debt per Capita Terre Haute $ 28,298,813 60,956 $ 464.25 Elkhart $ 52,940,230 51,421 $ 1,029.54 Merrillville $ 40,214,008 35,450 $ 1,134.39 Kokomo $ 75,247,991 57,085 $ 1,318.17 Richmond $ 61,741,262 36,159 $ 1,707.49 Hammond $ 138,917,224 78,384 $ 1,772.27 Portage $ 89,646,263 36,760 $ 2,438.69 South Bend $ 254,935,846 102,245 $ 2,493.38 Columbus $ 116,562,715 46,124 $ 2,527.16 Anderson $ 143,251,462 55,455 $ 2,583.20 Mishawaka $ 130,572,465 48,174 $ 2,710.43 Bloomington $ 233,605,754 83,322 $ 2,803.65 New Albany $ 114,358,235 36,589 $ 3,125.48 Jeffersonville $ 169,278,292 46,440 $ 3,645.10 Lafayette $ 279,601,497 70,654 $ 3,957.33 Westfield $ 141,450,572 35,297 $ 4,007.44 Fort Wayne $ 1,126,531,745 258,522 $ 4,357.59 Noblesville $ 274,460,375 57,584 $ 4,766.26 Fishers $ 423,391,546 86,325 $ 4,904.62 Evansville $ 1,031,545,191 120,346 $ 8,571.50 Carmel $ 1,329,505,051 86,682 $ 15,337.73 Second Class City refers to Cities with population in excess of 35,000 residents and a City Council of 9 members.
23Debt Principal/Interest PaymentsExcellence | Accountability | Innovation | Inclusion | EmpowermentDebt PaymentsIndiana Second Class CitiesLatest data available via the Indiana Department of Local Government FinanceCityAnnual Principal / InterestTotal Annual ExpendituresDebt Payments as a % of totalPortage $2,115,870 $95,545,983 2.21%Richmond $5,404,851 $163,423,864 3.31%Elkhart $4,098,328 $116,092,204 3.53%Kokomo $4,192,706 $86,615,284 4.84%Mishawaka $10,439,947 $187,162,178 5.58%Anderson $15,955,309 $215,441,081 7.41%Hammond $22,073,126 $278,894,402 7.91%Columbus $10,285,845 $125,395,141 8.20%South Bend $32,562,437 $368,227,709 8.84%New Albany $8,349,692 $84,910,803 9.83%Fishers $20,286,128 $189,666,210 10.70%Lafayette $16,609,600 $147,282,280 11.28%Merrillville $5,229,390 $46,091,178 11.35%Bloomington $16,865,196 $143,574,677 11.75%Jeffersonville $12,942,152 $100,177,984 12.92%Evansville $46,808,076 $344,454,116 13.59%Fort Wayne $86,777,799 $566,425,128 15.32%Terre Haute $20,321,193 $128,929,999 15.76%Noblesville $23,691,832 $108,194,230 21.90%Carmel $59,371,290 $220,204,425 26.96%Westfield $32,720,287 $59,545,788 54.95%
24Bond RatingExcellence | Accountability | Innovation | Inclusion | EmpowermentSecond Class City refers to Cities with population in excess of 35,000 residents and a City Council of 9 members.Bond ratings are important to the City as the high rating allows the City to issue bonds at the lowest possible rate, therefore, saving valuable tax dollars.Note: No public ratings of General Obligation debt for Gary, Greenwood, Mishawaka or Muncie.S&P General Obligation RatingsIndiana Second Class CitiesAs of January 22, 2019Obligor RatingFishers AAASouth Bend AACarmel AANoblesville AABloomington AA-Columbus AA-Elkhart AA-Evansville AA-Fort Wayne AA-Jeffersonville AA-Lafayette AA-Anderson A+New Albany A+Richmond A+Merrillville APortage AHammond BBB-Terre Haute BB
25Financial PositionExcellence | Accountability | Innovation | Inclusion | EmpowermentLiquidityDebtCapital AssetsOperations (Revenue & Expenditures)
26Capital Asset ProfileExcellence | Accountability | Innovation | Inclusion | EmpowermentTotal Purchase / Construction Cost$1,046,257,835Net Book Value$468,705,878Average Useful Life Remaining17.3 years
27Capital Assets Useful LifeExcellence | Accountability | Innovation | Inclusion | Empowerment
28Financial PositionExcellence | Accountability | Innovation | Inclusion | EmpowermentLiquidityDebtCapital AssetsOperations (Revenue & Expenditures)
29Operations SummaryExcellence | Accountability | Innovation | Inclusion | Empowerment2014Actual2015Actual2016Actual2017Actual2018Actual(Unaudited)RevenuesGeneral Fund55,106,223 53,719,617 56,474,525 59,227,689 62,157,359 Special Revenue Funds55,527,522 58,056,013 67,801,179 82,757,545 77,075,271 Capital & Debt Service Funds2,990,005 3,781,829 4,926,841 50,449,061 32,036,542 Enterprise Funds81,994,452 94,852,365 94,282,102 95,965,344 96,960,989 Internal Service Funds23,646,013 23,608,505 28,766,463 34,044,917 37,003,212 Trust Funds11,250,795 11,427,272 16,901,523 11,151,297 11,191,707 Tax Increment Financing Funds28,311,909 35,281,242 30,052,570 31,156,387 35,057,997 Redevelopment Funds2,878,464 195,118 23,583 266,247 656,559 Debt Service Funds 9,306 18,912 29,942 8,911,856 6,125,823 Total Revenue261,714,689 280,940,873 299,258,728 373,930,342 358,265,459 ExpendituresGeneral Fund54,686,374 51,988,226 52,482,273 57,324,663 59,453,854 Special Revenue Funds58,525,465 64,812,979 61,963,073 66,478,880 70,782,788 Capital & Debt Service Funds7,580,704 5,511,960 4,472,162 23,916,457 31,158,128 Enterprise Funds90,470,162 95,696,921 99,861,764 96,538,657 91,621,757 Internal Service Funds24,682,209 24,334,214 26,190,507 29,475,099 34,802,795 Trust Funds12,156,033 11,547,460 11,557,934 10,762,728 10,820,521 Tax Increment Financing Funds19,106,018 36,572,461 30,660,319 29,572,822 34,072,522 Redevelopment Funds1,568,169 3,023,509 143,242 1,801,133 29,994 Debt Service Funds 9,477 18,002 22,200 10,511,121 5,289,977 Total Expenditures268,784,611 293,505,732 287,353,474 326,381,559 338,032,337 Net(7,069,922) (12,564,859) 11,905,254 47,548,783 20,233,122
30Property Tax RevenueExcellence | Accountability | Innovation | Inclusion | Empowerment Type 2011/pay2012 2012/pay2013 2013/pay2014 2014/pay2015 2015/pay2016 2016/pay2017 2017/pay2018 2018/pay2019 Civil City Funds 48,843,403 45,189,966 45,002,931 46,171,932 49,067,533 49,858,701 51,877,631 52,336,614 TIF Funds 24,061,128 24,790,322 27,031,090 24,742,902 27,640,883 27,277,646 28,911,164 26,548,678 Total Property Tax Collections 72,904,531$ 69,980,288$ 72,034,021$ 70,914,835$ 76,708,416$ 77,136,347$ 80,788,795$ 78,885,292$ 0 $10 M $20 M $30 M $40 M $50 M $60 M $70 M $80 M $90 MProperty Tax Collections TIF Funds Civil City Funds
31Local Income Tax RevenueExcellence | Accountability | Innovation | Inclusion | Empowerment 2012 Actual2013 Actual2014 Actual2015 Actual2016 Actual2017 Actual2018 Actual2019 EstimateCEDIT 9,068,785 8,177,352 8,796,821 9,181,206 9,594,602 10,600,122 10,992,076 11,703,202 COIT 8,610,742 7,846,939 8,645,811 8,859,912 9,454,023 10,459,265 11,430,876 12,148,294 PS LOIT 6,605,601 5,892,386 6,380,029 6,466,190 6,791,160 7,467,618 7,851,541 8,560,555 Total 24,285,128$ 21,916,677$ 23,822,661$ 24,507,308$ 25,839,785$ 28,527,005$ 30,274,493$ 32,412,051$ 0 $5 M $10 M $15 M $20 M $25 M $30 M $35 M2012Actual2013Actual2014Actual2015Actual2016Actual2017Actual2018Actual2019EstimateLocal Income TaxesPS LOITCOITCEDIT
32Full Time EmployeesDecember 31, 2018Excellence | Accountability | Innovation | Inclusion | EmpowermentTotal Full Time Employees Dec 31, 20181,096
33Full Time Employee TrendExcellence | Accountability | Innovation | Inclusion | Empowerment
34Employee Health Insurance TrendExcellence | Accountability | Innovation | Inclusion | Empowerment2010 - 201453.4% increase2014 - 201811.6% increase
Excellence | Accountability | Innovation | Inclusion | Empowerment2019 Initiatives
362019 Key InitiativesExcellence | Accountability | Innovation | Inclusion | EmpowermentSafe Community for Everyone•Paramedicine Program•Shotspotter•Traffic Calming•Lead Abatement ProgramRobust & Well-Planned Infrastructure •Curb & Sidewalk•Water & Wastewater Capital Projects•Light Up South Bend (including solar lamp post pilot)Well-Governed & Administered City•Increase in Employee training, including harassment awareness training•Diversity & Disparity StudyStrong, Inclusive Economy•Innovative Financing Suite to accelerate business start-ups•Bloomberg Workforce Transportation ProgramThriving Public Spaces & Culture•My SB Parks & Trails Continues•Coal Line Trail ProjectVibrant, Welcoming Neighborhoods•Neighborhood Cleanups•Home Repair Program
Excellence | Accountability | Innovation | Inclusion | Empowerment2020 Fiscal Curb
Projected Property Tax Levies Due to State Circuit Breaker Tax Credits*Excellence | Accountability | Innovation | Inclusion | Empowerment*Note: This chart includes only Civil City property taxes (GF, Parks, and CCD) and does not include TIF revenue38
Revenue & Expenditures Scenario (Business As Usual)General, COIT, EDIT, and Public Safety LOIT FundsExcellence | Accountability | Innovation | Inclusion | Empowerment$6.3M$8.2M$9.6M$6.6M39
401. Continue to find innovative ways to save on health care costs through collaborative arrangements with analysts, near site health clinic and others. Health costs continue to rise nationwide, however, the City is working to keep costs reasonable while providing excellent benefits to our employees.2. Continue to work with the County to ensure property taxes accurately reflect market conditions and everyone is paying their fair share.3. Implement soft hiring freeze on City positions (a 2.5% decrease would reduce the workforce by 18 positions and would save about $1.5 million annually). This can be done by reviewing positions as they become vacant with the Mayor’s office to ensure we are only replacing essential positions which help us meet the needs of the City.4. Continue organization refinements and work to maximize efficiencies in City operations. A 1% cut in General fund alone would yield roughly $600,000 in savings.5. Optimize purchasing process and capital budgeting process.6. Pursue new revenue opportunities7. Consider additional Public-Private Partnerships where possible.Measures in 2019-2020 to Address Fiscal CurbExcellence | Accountability | Innovation | Inclusion | Empowerment
Additional Information Available Online at:https://southbendin.gov/department/administration-finance/(“View publicly-available city budgets and finance records” section)