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Home My WebLink About0 2020 Budget Overview - Council Budget Hearing 1CITY OF SOUTH BEND, IN 2020 Budget Overview Opening Budget Discussion July 31, 2019 1 CITY OF SOUTH BEND, IN Context for 2020 Budget Fiscal Curb •2020 Fiscal Curb is here •Projected $1.4 million decrease in property tax revenue Continuation of Strategic Priorities •Investment in Neighborhoods and Community remains paramount. Planning for Long- term Financial Stability •Budgets in 2020 are lower on significant capital spending, higher on maintenance costs and ongoing strategic initiatives. 2 CITY OF SOUTH BEND, IN City of South Bend Strategic Priorities We Deliver Services that Empower Everyone to Thrive MAKE THE BASICS EASY DELIVER GOOD GOVERNMENT INVEST IN PEOPLE & PLACES Safe Community for Everyone Well-Governed & Administered City Strong, Inclusive Economy Robust & Well- Planned Infrastructure Thriving Public Spaces & Culture Vibrant, Welcoming Neighborhoods 3 CITY OF SOUTH BEND, IN Resource Allocation follows Strategic Priorities Note: Excludes interfund transfers and costs of health insurance, parts, and IT that are directly charged back to departments. 4 CITY OF SOUTH BEND, IN What’s included in the 2020 Budget? •Safe Community for Everyone •Council Request:Various programs and initiatives to combat violence and foster sense of community: •In 2020, the Administration is proposing the creation of “Community Initiatives” Department under the Mayor’s Office to house Group Violence Initiative (GVI), the S.A.V.E. team, and other violence prevention initiatives. •Council Request:Full funding for South Bend Police Department sworn officers •Council Request:Expansion of Fire Department’s Community Paramedicine Program •Council Request:Additional inspectors for Code Enforcement’s Rental Safety Verification Program (RSVP). We Deliver Services that Empower Everyone to Thrive MAKE THE BASICS EASY DELIVER GOOD GOVERNMENT INVEST IN PEOPLE & PLACES Safe Community for Everyone Well-Governed & Administered City Strong, Inclusive Economy Robust & Well- Planned Infrastructure Thriving Public Spaces & Culture Vibrant, Welcoming Neighborhoods 5 CITY OF SOUTH BEND, IN What’s included in the 2020 Budget? •Robust & Well-Planned Infrastructure •Council Request:Additional funding for streets •The 2020 proposed budget includes an increase in income tax subsidy for street maintenance and paving, and aims to maintain or increase number of lane miles paved from 2019 original budget. •Council Request:Continue funding for traffic calming •2020 proposed budget includes $250,000 specifically for traffic calming •Council Request:Continue funding for Light Up South Bend •$200,000 specifically set aside for Light Up South Bend •Continue investment in Water Works and Wastewater capital, including storm drainage projects. We Deliver Services that Empower Everyone to Thrive MAKE THE BASICS EASY DELIVER GOOD GOVERNMENT INVEST IN PEOPLE & PLACES Safe Community for Everyone Well-Governed & Administered City Strong, Inclusive Economy Robust & Well- Planned Infrastructure Thriving Public Spaces & Culture Vibrant, Welcoming Neighborhoods 6 CITY OF SOUTH BEND, IN What’s included in the 2020 Budget? •Strong, Inclusive Economy •Council Request:Additional resources are included in the 2020 proposed budget for Diversity & Inclusion. •Including resources to provide diversity training for outside organizations. •Continued work with Community Development Block Grant (CDBG) and funding for Housing Financing Gap Assistance •Continued funding for small business development & workforce development programs •Funding for innovative financing options, including microlending We Deliver Services that Empower Everyone to Thrive MAKE THE BASICS EASY DELIVER GOOD GOVERNMENT INVEST IN PEOPLE & PLACES Safe Community for Everyone Well-Governed & Administered City Strong, Inclusive Economy Robust & Well- Planned Infrastructure Thriving Public Spaces & Culture Vibrant, Welcoming Neighborhoods 7 CITY OF SOUTH BEND, IN What’s included in the 2020 Budget? •Thriving Public Spaces & Culture •Completion of the MySB Parks & Trails Initiative •Continued funding of Parking Garage improvements. •Funding for resurfacing tennis & basketball courts in the community. •Beginning of campaign to fund improvements at the Morris Performing Arts Center. We Deliver Services that Empower Everyone to Thrive MAKE THE BASICS EASY DELIVER GOOD GOVERNMENT INVEST IN PEOPLE & PLACES Safe Community for Everyone Well-Governed & Administered City Strong, Inclusive Economy Robust & Well- Planned Infrastructure Thriving Public Spaces & Culture Vibrant, Welcoming Neighborhoods 8 CITY OF SOUTH BEND, IN What’s included in the 2020 Budget? •Vibrant, Welcoming Neighborhoods •Council Request: Continued funding for Curbs & Sidewalks and Home Repair program •2020 proposed budget includes significant funding for both initiatives. •Council Request: Continued funding for neighborhood organization support •Significant funding for neighborhood planning and neighborhood empowerment grants through the Department of Community Investment (DCI). We Deliver Services that Empower Everyone to Thrive MAKE THE BASICS EASY DELIVER GOOD GOVERNMENT INVEST IN PEOPLE & PLACES Safe Community for Everyone Well-Governed & Administered City Strong, Inclusive Economy Robust & Well- Planned Infrastructure Thriving Public Spaces & Culture Vibrant, Welcoming Neighborhoods 9 CITY OF SOUTH BEND, IN What’s included in the 2020 Budget? •Well-Governed & Administered City •Continuing to promote transparency with new data tools & continued responsiveness to Access to Public Records Act (APRA) requests. •Continuing to fund parental leave and volunteer time off policies. •Completion of the implementation of the City’s new financial software system and continued implementation of enterprise-wide Cityworks solution. •Continued funding for employee recognition and employee wellness initiatives, including continuing investment in the Activate Wellness Clinic. We Deliver Services that Empower Everyone to Thrive MAKE THE BASICS EASY DELIVER GOOD GOVERNMENT INVEST IN PEOPLE & PLACES Safe Community for Everyone Well-Governed & Administered City Strong, Inclusive Economy Robust & Well- Planned Infrastructure Thriving Public Spaces & Culture Vibrant, Welcoming Neighborhoods 10 CITY OF SOUTH BEND, IN 2020 Budget -Financial Overview 11 CITY OF SOUTH BEND, IN City-Wide Proposed 2020 Budget 2017 Actual 2018 Actual 2019 Budget (Original) 2020 Proposed Budget Year Over Year Variance ($) Year Over Year Variance (%) Revenue Property Taxes 77,136,347 80,788,795 78,885,295 77,482,325 (1,402,970) -1.8% Local Income Taxes 28,360,244 32,712,559 32,412,051 33,222,352 810,301 2.5% Charges for Services 77,094,535 79,460,035 81,355,309 84,685,972 3,330,663 4.1% Other Revenue 67,487,633 75,322,124 65,319,117 65,426,377 107,260 0.2% Interest Earnings 1,960,479 4,352,557 2,262,558 3,076,475 813,917 36.0% Transfers In 48,664,234 45,853,517 51,370,795 54,816,101 3,445,306 6.7% Interfund Allocation Reimb 14,957,009 16,053,826 22,427,153 21,029,141 (1,398,012) -6.2% Debt Proceeds 43,629,978 23,645,347 2,034,625 4,329,076 2,294,451 112.8% Total Revenue 359,290,460 358,188,759 336,066,903 344,067,819 8,000,916 2.4% Expenditures Salaries & Wages 79,045,143 82,510,428 88,137,692 89,010,336 872,644 1.0% Fringe Benefits 27,552,466 28,527,829 26,695,090 28,277,776 1,582,686 5.9% Professional Services 16,328,642 14,764,511 16,841,403 15,495,672 (1,345,731) -8.0% Repairs & Maintenance 13,437,922 14,297,924 14,772,466 14,984,145 211,679 1.4% Supplies 9,974,500 11,069,566 13,476,721 15,366,969 1,890,248 14.0% Debt Service 47,876,394 32,269,040 33,654,877 33,759,108 104,231 0.3% Other Expenses 40,855,764 47,484,074 49,954,071 49,959,148 5,077 0.0% Transfers Out 36,923,732 45,853,457 51,370,795 54,816,101 3,445,306 6.7% Other Interfund Allocations 15,014,496 16,042,071 22,468,191 21,045,077 (1,423,114) -6.3% Operating Expenditures 287,009,058 292,818,900 317,371,306 322,714,332 5,343,026 1.7% Operating Income 72,281,402 65,369,859 18,695,597 21,353,487 Capital 39,372,501 45,213,437 50,856,403 31,782,255 (19,074,148) -37.5% Rev in Excess of Exp 32,908,901 20,156,422 (32,160,806) (10,428,768) Total Proposed Expenditures: $354 million 12 CITY OF SOUTH BEND, IN 2020 Budget •2020 Budget is balanced in General Fund, Economic Development Income Tax Fund (EDIT), and County Option Income Tax Fund (COIT). •Overall budget has ~$10.4 million deficit. This deficit is driven largely by: •The City is continuing its move toward long-term sustainability with this budget, which is designed to make use of current reserves but also plan for the future. Capital spend from reserves in Wastewater $3.4 million Targeted spend down of reserves in internal service funds (liability ins., health ins., & IT)$4.3 million Spend down of reserves in street maintenance funds $1.4 million Solid Waste Operations $640,000 13 CITY OF SOUTH BEND, IN 2020 Budget –General-Plus Funds 2017 Actual 2018 Actual 2019 Budget (Original) 2020 Proposed Budget Year Over Year Variance ($) Year Over Year Variance (%) Revenue Property Taxes 39,568,076 40,719,333 41,142,970 39,697,892 (1,445,078) -3.5% Local Income Taxes 20,892,626 24,225,223 23,781,140 24,375,668 594,528 2.5% Charges for Services 1,609,152 1,379,733 1,538,477 5,171,177 3,632,700 236.1% Other Revenue 7,840,516 8,992,303 8,369,380 8,374,459 5,079 0.1% Interest Earnings 398,872 919,709 535,000 735,000 200,000 37.4% Transfers In 6,943,572 7,085,069 7,290,990 9,481,802 2,190,812 30.0% Interfund Allocation Reimb 4,976,976 5,428,374 7,460,048 8,523,017 1,062,969 14.2% Debt Proceeds - - - - - 0.0% Total Revenue 82,229,791 88,749,744 90,118,005 96,359,015 6,241,010 6.9% Expenditures Salaries & Wages 32,875,236 35,265,084 36,663,554 41,206,913 4,543,359 12.4% Fringe Benefits 12,764,266 13,256,488 12,476,713 14,111,227 1,634,514 13.1% Professional Services 5,768,409 3,717,812 5,490,054 5,564,970 74,916 1.4% Repairs & Maintenance 3,643,029 2,994,613 2,851,760 3,266,643 414,883 14.5% Supplies 1,969,701 1,884,097 2,044,122 2,577,728 533,606 26.1% Debt Service 1,893,156 1,831,683 2,134,064 2,224,217 90,153 4.2% Other Expenses 5,322,122 6,226,903 8,673,935 7,302,590 (1,371,345) -15.8% Transfers Out 10,110,074 9,360,651 11,153,902 12,963,596 1,809,694 16.2% Other Interfund Allocations 5,960,244 5,753,246 7,635,883 6,975,831 (660,052) -8.6% Operating Expenditures 80,306,236 80,290,578 89,123,987 96,193,715 7,069,728 7.9% Operating Income 1,923,555 8,459,167 994,018 165,300 Capital 264,572 191,962 945,000 165,300 (779,700) -82.5% Rev in Excess of Exp 1,658,983 8,267,205 49,018 0 14 The General-Plus Funds include: General Fund (101) COIT (404) EDIT (408) CITY OF SOUTH BEND, IN Format of 2020 Budget Presentations •2020 Departmental Goals & Challenges •2020 Proposed Budget Overview •Operational Budget Changes •Personnel changes (including requested promotions, new positions, etc.), significant increase/decrease in spending on a particular initiative, etc. •Capital Projects •Significant one-time, non-operational requests •Note: per guidance from DLGF, the City will begin appropriating capital projects one time, then carrying forward the appropriation to future years if needed. •Special Initiatives (if applicable) •Questions 15 CITY OF SOUTH BEND, IN Format of 2020 Budget Packets •Copy of each PowerPoint Presentation •Budget Summary Sheets •Summary of Spending by Fund •Staffing Summary •High level full-time staffing summary, including changes from 2019 •More information will be presented at the Salary Ordinance Budget meeting on September 16. •Line Level Budget Detail 16 CITY OF SOUTH BEND, IN Order of 2020 Budget Presentations 17 CITY OF SOUTH BEND, IN Questions? 18