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Home My WebLink About2019 Mayor's Annual Address to Council PresentationExcellence | Accountability | Innovation | Inclusion | Empowerment Mayor’s Annual Address South Bend Common Council February 11, 2019 2 South Bend At a Glance Excellence | Accountability | Innovation | Inclusion | Empowerment Population Median Household Income Per Capita Income Poverty Rate 3 Agenda •2018 Key Initiatives •Financial Position •2019 Key Initiatives •Preparation for 2020 Fiscal Curb Excellence | Accountability | Innovation | Inclusion | Empowerment Excellence | Accountability | Innovation | Inclusion | Empowerment 2018 Key Initiatives 5 2018 Key Initiatives •Streets & Sidewalks •Light Up South Bend Robust & Well- Planned Infrastructure •Investment in Development Projects •Inclusive Economy Initiatives Economic Development & Neighborhoods •My SB Parks & TrailsThriving Public Spaces & Culture •Vacation Donation & Volunteer Time Off •City -Wide Performance Evaluations Well Governed & Administrated City Excellence | Accountability | Innovation | Inclusion | Empowerment 6 Road Funding Excellence | Accountability | Innovation | Inclusion | Empowerment Fund Type 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Budget Revenue $ 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 $ 14,345,948 0 $2 M $4 M $6 M $8 M $10 M $12 M 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Budget Motor Vehicle Highway Fund Revenue Expense Total Mileage Paved in 2018: 29.3 miles City crews: 20.30 lane miles Contracted: 8.09 lane miles Additional: 0.91 miles Filled 22,100 potholes in 2018 2018 Curb & Sidewalks Numbers Total Amount of New Curbs: 22,389 LFT Total Amount of New Sidewalks: 30,329 LFT 7 Road Funding (continued) Excellence | Accountability | Innovation | Inclusion | Empowerment 8 Light Up South Bend Excellence | 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 areas based 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 9 Economic Development Excellence | Accountability | Innovation | Inclusion | Empowerment 10 Creating 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 available Section 3 skilled workers for City projects and added Section 3 Businesses to the list of potential vendors and contractors the 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 Building to update registration forms to include inclusive business certifications designations. Excellence | Accountability | Innovation | Inclusion | Empowerment 11 My SB Parks & Trails Excellence | Accountability | Innovation | Inclusion | Empowerment 12 My SB Parks & Trails Excellence | Accountability | Innovation | Inclusion | Empowerment 13 My SB Parks & Trails Excellence | Accountability | Innovation | Inclusion | Empowerment Excellence | Accountability | Innovation | Inclusion | Empowerment City of South Bend Financial Position 15 Financial Position Excellence | Accountability | Innovation | Inclusion | Empowerment Liquidity Debt Capital Assets Operations (Revenue & Expenditures) 16 Financial Position Excellence | Accountability | Innovation | Inclusion | Empowerment Liquidity Debt Capital Assets Operations (Revenue & Expenditures) 17 Ending Cash Balance Excellence | Accountability | Innovation | Inclusion | Empowerment 18 Cash Benchmarking Excellence | Accountability | Innovation | Inclusion | Empowerment Second Class City refers to Cities with population in excess of 35,000 residents and a City Council of 9 members. Cash and Investments Indiana Second Class Cities Latest data available via the Indiana Department of Local Government Finance City Cash & Investments Annual Expenditures Cash as a % of Expenditures Elkhart $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 $220,204,425 30.20% 19 Financial Position Excellence | Accountability | Innovation | Inclusion | Empowerment Liquidity Debt Capital Assets Operations (Revenue & Expenditures) 20 Debt Profile Excellence | Accountability | Innovation | Inclusion | Empowerment Governmental Business-Type Economic Development 80,784,591 Wastewater 68,215,746 Highways & Streets 35,242,234 Water Works 15,731,543 Culture & Recreation 27,200,758 Emergency Medical Services 11,371,735 Public Safety 15,030,586 Solid Waste 2,995,244 General Government 1,399,528 Bldg Dept/Code Enforce 425,559 159,657,697$ 98,739,826$ Major Projects include: Smart Streets initiative, the Corridors initiative, the Long Term Control Plan (for CSO), and Park projects. 12/31/2018 Principal Balance Total 12/31/18 Principal Balance = $258,397,523 Economic Development 51% Culture & Recreation 22% Highways & Streets 17% Public Safety 9% General Government 1% Business-Type 38% Governmental 62% Wastewater 69% Water Works 16% Emergency Medical Services 12% Solid Waste 3% Bldg Dept/Code Enforce 0% 21 Debt per Capita Excellence | Accountability | Innovation | Inclusion | Empowerment 22 Debt per Capita Excellence | Accountability | Innovation | Inclusion | Empowerment Debt per Capita Indiana Second Class Cities Latest data available via the Indiana Department of Local Government Finance City 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. 23 Debt Principal/Interest Payments Excellence | Accountability | Innovation | Inclusion | Empowerment Debt Payments Indiana Second Class Cities Latest data available via the Indiana Department of Local Government Finance City Annual Principal / Interest Total Annual Expenditures Debt Payments as a % of total Portage $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% 24 Bond Rating Excellence | Accountability | Innovation | Inclusion | Empowerment Second 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 Ratings Indiana Second Class Cities As of January 22, 2019 Obligor Rating Fishers AAA South Bend AA Carmel AA Noblesville AA Bloomington AA- Columbus AA- Elkhart AA- Evansville AA- Fort Wayne AA- Jeffersonville AA- Lafayette AA- Anderson A+ New Albany A+ Richmond A+ Merrillville A Portage A Hammond BBB- Terre Haute BB 25 Financial Position Excellence | Accountability | Innovation | Inclusion | Empowerment Liquidity Debt Capital Assets Operations (Revenue & Expenditures) 26 Capital Asset Profile Excellence | Accountability | Innovation | Inclusion | Empowerment Total Purchase / Construction Cost $1,046,257,835 Net Book Value $468,705,878 Average Useful Life Remaining 17.3 years 27 Capital Assets Useful Life Excellence | Accountability | Innovation | Inclusion | Empowerment 28 Financial Position Excellence | Accountability | Innovation | Inclusion | Empowerment Liquidity Debt Capital Assets Operations (Revenue & Expenditures) 29 Operations Summary Excellence | Accountability | Innovation | Inclusion | Empowerment 2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actual (Unaudited) Revenues General Fund 55,106,223 53,719,617 56,474,525 59,227,689 62,157,359 Special Revenue Funds 55,527,522 58,056,013 67,801,179 82,757,545 77,075,271 Capital & Debt Service Funds 2,990,005 3,781,829 4,926,841 50,449,061 32,036,542 Enterprise Funds 81,994,452 94,852,365 94,282,102 95,965,344 96,960,989 Internal Service Funds 23,646,013 23,608,505 28,766,463 34,044,917 37,003,212 Trust Funds 11,250,795 11,427,272 16,901,523 11,151,297 11,191,707 Tax Increment Financing Funds 28,311,909 35,281,242 30,052,570 31,156,387 35,057,997 Redevelopment Funds 2,878,464 195,118 23,583 266,247 656,559 Debt Service Funds 9,306 18,912 29,942 8,911,856 6,125,823 Total Revenue 261,714,689 280,940,873 299,258,728 373,930,342 358,265,459 Expenditures General Fund 54,686,374 51,988,226 52,482,273 57,324,663 59,453,854 Special Revenue Funds 58,525,465 64,812,979 61,963,073 66,478,880 70,782,788 Capital & Debt Service Funds 7,580,704 5,511,960 4,472,162 23,916,457 31,158,128 Enterprise Funds 90,470,162 95,696,921 99,861,764 96,538,657 91,621,757 Internal Service Funds 24,682,209 24,334,214 26,190,507 29,475,099 34,802,795 Trust Funds 12,156,033 11,547,460 11,557,934 10,762,728 10,820,521 Tax Increment Financing Funds 19,106,018 36,572,461 30,660,319 29,572,822 34,072,522 Redevelopment Funds 1,568,169 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 Expenditures 268,784,611 293,505,732 287,353,474 326,381,559 338,032,337 Net (7,069,922)(12,564,859)11,905,254 47,548,783 20,233,122 30 Property Tax Revenue Excellence | 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 $90 M Property Tax Collections TIF Funds Civil City Funds 31 Local Income Tax Revenue Excellence | Accountability | Innovation | Inclusion | Empowerment 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Estimate CEDIT 9,068,785 8,177,352 8,796,821 9,181,206 9,594,602 10,600,122 10,992,076 11,703,202 COIT 8,610,742 7,846,939 8,645,811 8,859,912 9,454,023 10,459,265 11,430,876 12,148,294 PS LOIT 6,605,601 5,892,386 6,380,029 6,466,190 6,791,160 7,467,618 7,851,541 8,560,555 Total 24,285,128$ 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 M 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Estimate Local Income Taxes PS LOIT COIT CEDIT 32 Full Time Employees December 31, 2018 Excellence | Accountability | Innovation | Inclusion | Empowerment Total Full Time Employees Dec 31, 2018 1,096 33 Full Time Employee Trend Excellence | Accountability | Innovation | Inclusion | Empowerment 34 Employee Health Insurance Trend Excellence | Accountability | Innovation | Inclusion | Empowerment 2010 -2014 53.4% increase 2014 -2018 11.6% increase Excellence | Accountability | Innovation | Inclusion | Empowerment 2019 Initiatives 36 2019 Key Initiatives Excellence | Accountability | Innovation | Inclusion | Empowerment Safe Community for Everyone •Paramedicine Program •Shotspotter •Traffic Calming •Lead Abatement Program Robust & 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 Study Strong, Inclusive Economy •Innovative Financing Suite to accelerate business start-ups •Bloomberg Workforce Transportation Program Thriving Public Spaces & Culture •My SB Parks & Trails Continues •Coal Line Trail Project Vibrant, Welcoming Neighborhoods •Neighborhood Cleanups •Home Repair Program Excellence | Accountability | Innovation | Inclusion | Empowerment 2020 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 revenue 38 Revenue & Expenditures Scenario (Business As Usual) General, COIT, EDIT, and Public Safety LOIT Funds Excellence | Accountability | Innovation | Inclusion | Empowerment $6.3M $8.2M $9.6M $6.6M 39 40 1.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 opportunities 7.Consider additional Public-Private Partnerships where possible. Measures in 2019-2020 to Address Fiscal Curb Excellence | Accountability | Innovation | Inclusion | Empowerment Additional Information Available Online at: https://southbendin.gov/department/administration-finance/ (“View publicly -available city budgets and finance records” section)