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Home My WebLink About10 Public Hearing of 2020 BudgetCITY OF SOUTH BEND, IN 2020 Budget Presentation & Public Hearing September 23, 2019 CITY OF SOUTH BEND, IN Setting the Stage for the 2020 Budget Fiscal Curb •2020 Fiscal Curb is here Refocus on Neighborhoods •Even in the face of declining revenue, the City is increasing or maintaining investment in the City’s neighborhoods. Planning for Long- term Financial Stability •Budgets in 2020 are lower on significant capital spending, higher on sustainable, consistent investment CITY OF SOUTH BEND, IN Goals for Today •We’ve been through 8 budget hearings, with 2 more left. •Almost all department budgets have been presented. •The goals for today are as follows: •Provide a framework to conceptualize the 2020 budget as a whole •Understand how and to what extent the proposed 2020 budget invests in the City’s neighborhoods. CITY OF SOUTH BEND, IN 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 33,314,769 902,718 2.8% Charges for Services 77,094,535 79,460,035 81,355,309 90,591,969 9,236,660 11.4% Other Revenue 67,562,616 75,413,593 65,319,117 62,837,833 (2,481,284) -3.8% Interest Earnings 1,960,479 4,352,557 2,262,558 3,076,388 813,830 36.0% Transfers In 48,664,234 45,853,517 51,370,795 55,031,097 3,660,302 7.1% Interfund Allocation Reimb 15,235,026 16,446,236 22,427,153 20,920,632 (1,506,521) -6.7% Debt Proceeds 43,629,978 23,645,347 2,034,625 4,329,076 2,294,451 112.8% Total Revenue 359,643,459 358,672,638 336,066,903 347,584,089 11,517,186 3.4% Expenditures Salaries & Wages 79,045,143 82,510,428 88,137,692 89,025,706 888,014 1.0% Fringe Benefits 27,552,466 28,527,829 26,695,090 28,259,024 1,563,934 5.9% Professional Services 16,328,642 14,764,511 16,841,403 16,033,314 (808,089) -4.8% Repairs & Maintenance 13,437,922 14,297,924 14,772,466 14,957,395 184,929 1.3% Supplies 9,974,500 11,069,566 13,476,721 18,391,793 4,915,072 36.5% Debt Service 47,876,394 32,269,040 33,654,877 33,927,982 273,105 0.8% Other Expenses 40,855,764 47,484,074 49,954,071 50,013,362 59,291 0.1% Transfers Out 36,923,732 45,853,457 51,370,795 55,031,097 3,660,302 7.1% Other Interfund Allocations 15,014,496 16,042,071 22,468,191 20,936,568 (1,531,623) -6.8% Operating Expenditures 287,009,058 292,818,900 317,371,306 326,576,241 9,204,935 2.9% Operating Income 72,634,401 65,853,738 18,695,597 21,007,848 Capital 39,372,501 45,213,437 50,856,403 31,782,255 (19,074,148) -37.5% Rev in Excess of Exp 33,261,900 20,640,302 (32,160,806) (10,774,407) Total Proposed Expenditures: $358 million CITY OF SOUTH BEND, IN 2020 Budget Breakdown Total Budget ($358 million) Baseline Spending Strategic Spending Strategic Operations Strategic Initiatives CITY OF SOUTH BEND, IN *Includes Common Council, Clerk’s Office, Mayor’s Office, Admin & Finance, Human Resources, Legal, Innovation & Technology, and Engineering Interfund Transfers 15% Debt Service 10% Essential Services 49% Maintenance of Current Capital 6% Self- Insurance 6% Strategic Spending 14%Essential Services Police $ 45,464,077 $ 44,936,295 Fire/EMS $ 38,240,877 $ 36,486,420 Water $ 17,974,252 $ 17,641,512 Wastewater $ 31,467,317 $ 32,138,111 Solid Waste $ 4,381,290 $ 4,825,365 Streets $ 8,914,720 $ 8,971,962 Park Maintenance $ 8,386,446 $ 8,005,812 Neighborhood Code Enforcement $ 5,181,489 $ 5,111,469 Administration*$ 16,270,303 $ 16,810,992 Building Dept $ 1,295,696 $ 1,682,541 Maintenance of Current Capital Fleet Replacement $ 2,079,625 $ 4,329,076 Fleet & Building Maintenance $ 11,464,029 $ 15,596,503 Self-Insurance Health Insurance $ 16,622,400 $ 18,482,713 Liability Insurance $ 3,992,783 $ 4,059,232 Debt Service $ 33,654,877 $ 33,928,732 2019 Adopted 2020 Proposed Interfund Transfers $ 33,654,877 $ 33,928,732 Total Baseline Spending $ 307,987,832 CITY OF SOUTH BEND, IN *Includes Common Council, Clerk’s Office, Mayor’s Office, Admin & Finance, Human Resources, Legal, Innovation & Technology, and Engineering Essential Services Police $ 45,464,077 $ 44,936,295 Fire/EMS $ 38,240,877 $ 36,486,420 Water $ 17,974,252 $ 17,641,512 Wastewater $ 31,467,317 $ 32,138,111 Solid Waste $ 4,381,290 $ 4,825,365 Streets $ 8,914,720 $ 8,971,962 Park Maintenance $ 8,386,446 $ 8,005,812 Neighborhood Code Enforcement $ 5,181,489 $ 5,111,469 Administration*$ 16,270,303 $ 16,810,992 Building Dept $ 1,295,696 $ 1,682,541 Maintenance of Current Capital Fleet Replacement $ 2,079,625 $ 4,329,076 Fleet & Building Maintenance $ 11,464,029 $ 15,596,503 Self-Insurance Health Insurance $ 16,622,400 $ 18,482,713 Liability Insurance $ 3,992,783 $ 4,059,232 Debt Service $ 33,654,877 $ 33,928,732 2019 Adopted 2020 Proposed Interfund Transfers $ 33,654,877 $ 33,928,732 Total Baseline Spending $ 307,987,832 CITY OF SOUTH BEND, IN 2020 Budget Breakdown Total Budget ($358 million) Baseline Spending ($308 Million) Strategic Spending ($50 Million) Strategic Operations Strategic Initiatives CITY OF SOUTH BEND, IN Strategic Spending •Focus of Strategic Spending in 2020: •How much of this $50 million is focused specifically on neighborhoods? •Defined as investments specifically in the following areas: Affordable Housing Economic Development Neighborhood Infrastructure Public Safety & Wellness Youth Engagement & Employment CITY OF SOUTH BEND, IN 2020 Budget Breakdown Total Budget ($358 million) Baseline Spending ($308 Million) Strategic Spending ($50 Million) Strategic Operations Strategic Initiatives CITY OF SOUTH BEND, IN Strategic Operations 2019 2020 Adopted Proposed Tax-Funded Departments Office of Inclusion, Diversity, Equity, and Access $ 841,201 $ 1,048,516 Office of Sustainability $ 278,815 $ 377,393 Dept of Community Investment Operations $ 3,150,666 $ 3,232,000 Additional Code Enforcement Operations Animal Resource Center $ 929,300 $ 1,010,138 Rental Safety Verification Program $ 158,616 $ 345,826 Neighborhood Enforcement Action Team (NEAT)$ 563,891 $ 544,092 Additional Venues Parks & Arts Operations Morris PAC & Palais Royale $ 2,155,089 $ 1,985,523 Recreation Division $ 3,037,627 $ 2,897,693 Experience Division $ 1,214,568 $ 1,266,763 Self-Sustaining Operations Century Center $ 4,430,061 $ 4,923,776 Golf Courses $ 1,266,567 $ 1,476,201 Parking Garages $ 1,871,794 $ 1,180,495 Total -Strategic Operations $ 19,898,195 $ 20,288,416 How much investment in neighborhoods? $5.1 million CITY OF SOUTH BEND, IN 2020 Budget Breakdown Total Budget ($358 million) Baseline Spending ($308 Million) Strategic Spending ($50 Million) Strategic Operations ($20 million) Strategic Initiatives ($30 million) City-Wide Initiatives Specific Initiatives CITY OF SOUTH BEND, IN Strategic Initiatives: City-Wide Strategic Initiatives Affordable Housing $2.8 million How much investment in neighborhoods? CITY OF SOUTH BEND, IN Strategic Initiatives: City-Wide Strategic Initiatives Affordable Housing $2.8 million Economic Development $2.8 million How much investment in neighborhoods? CITY OF SOUTH BEND, IN Strategic Initiatives: City-Wide Strategic Initiatives Affordable Housing $2.8 million Economic Development $2.8 million Neighborhood Infrastructure $7.1 million How much investment in neighborhoods? CITY OF SOUTH BEND, IN Strategic Initiatives: City-Wide Strategic Initiatives Affordable Housing $2.8 million Economic Development $2.8 million Neighborhood Infrastructure $7.1 million Public Safety & Wellness $ 900,000 How much investment in neighborhoods? CITY OF SOUTH BEND, IN Strategic Initiatives: City-Wide Strategic Initiatives Affordable Housing $2.8 million Economic Development $2.8 million Neighborhood Infrastructure $7.1 million Public Safety & Wellness $ 900,000 Youth Engagement & Employment $ 870,000 Total Investment $14.5 million How much investment in neighborhoods? CITY OF SOUTH BEND, IN 2020 Budget Breakdown Total Budget ($358 million) Baseline Spending ($308 Million) Strategic Spending ($50 Million) Strategic Operations ($20 million) Strategic Initiatives ($30 million) City-Wide Initiatives Specific Initiatives CITY OF SOUTH BEND, IN Portage / Elwood Plan Implementation ($845k) Cleveland Road & US 31 Pavement Replacement ($1.6 M) Bendix Drive Pavement Replacement ($2.5 M) West Side Main Streets ($2 M) Implementation of Southeast Master Plan ($2.8 M) Early Child Care –New United Way Community Center ($1 million) City Cemetery Improvements ($550k) Corby / Ironwood / Rockne Improvements ($1.2 M) Olive Street Reconstruction ($2.5 M) Sheridan & Sample Intersection Improvement ($477k) Note: This is not meant to be a comprehensive look at all programs & initiatives, but rather it is meant to represent a sample of major investments in specific neighborhoods. CITY OF SOUTH BEND, IN Investment in Neighborhoods Summary Total Baseline Spending $ 307,987,832 Total Strategic Spending 50,094,914 Strategic Investment in Neighborhoods Strategic Operations 5,170,434 Strategic Initiatives –City Wide 14,557,105 Strategic Initiatives -Specific 12,295,000 Total Investment $ 32,022,434 Percent of Strategic Spending Invested Directly into Neighborhoods: 32,022,434 50,094,914 63.9% CITY OF SOUTH BEND, IN 2020 Budget Takeaways •The City’s proposed 2020 budget sets up the City for financial stability in the face of revenue challenges now and in the future. •The City’s proposed 2020 budget focuses on improving City services through “baseline spending”, driving efficiency and improving the health, safety and well-being of all residents. •The City’s proposed 2020 budget focuses strategic spending on neighborhoods through consistent, sustainable investment, which can be repeated year after year to build the foundation for success for all residents.