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Home My WebLink About2022-08-17 - 2023 Budget Hearing #1 OverviewCITY OF SOUTH BEND, IN 2023 Budget Hearing #1: Budget Overview August 17, 2022 CITY OF SOUTH BEND, IN Strategic Context CITY OF SOUTH BEND, IN South Bend Economic Recovery 3 South Bend MSA GDP and employment projections by scenario CITY OF SOUTH BEND, IN Federal and State Initiatives (2021 Outlook) Endless Frontier Act TBD RDC READI 1:1 with state 1:3 private Tax abatement and RDC Innskeepers Tax and PSCDA NA NA Jobs Plan- Physical Infrastructure TBD/likely 1:4 to 1:2 RDC Rescue Plan NA NA Families Plan- Social Infrastructure TBD Property or Income Tax or Rescue Plan Initiative Local Match Requirement Local Match Primary Source Innovation and Entrepreneurship Quality of Place Sustainability Access to Opportunity and Equity Growth CITY OF SOUTH BEND, IN Federal and State Initiatives (Current Outlook) Endless Frontier Act TBD RDC READI 1:1 with state 1:3 private Tax abatement and RDC Jobs Plan- Infrastructure Bill TBD/likely 1:4 to 1:2 RDC Rescue Plan NA NA Inflation Reduction Act TBD General+, Rescue Plan, RDC Initiative Local Match Requirement Local Match Primary Source Innovation and Entrepreneurship Quality of Place Sustainability Access to Opportunity and Equity Growth CITY OF SOUTH BEND, IN READI Memorial Tower Expansion and Beacon Lifestyle District $300+ million/$140 million Morris 100 $30+ million Dream Center $18+ million Career Center $25 million Housing Authority $35 million Major Project Estimated Cost Innovation and Entrepreneurship Quality of Place Access to Opportunity and Equity Growth South Bend applicants submitted requests totaling over $40 million in READI funds CITY OF SOUTH BEND, IN American Rescue Plan Total Budget Spent / Encumbered Committed Capital Projects Total Spent / Committed Strong Neighborhoods 18,170,000 2,445,702 3,855,719 6,301,421 Home Repair Assistance Programs 2,500,000 --- Housing Financing 2,500,000 --- Home Buying Assistance 1,000,000 --- Additional Neighborhood Infrastructure 2,500,000 691,059 -691,059 City-wide Comprehensive Plan 500,000 209,537 -209,537 Plan Implementation 300,000 --- Land Bank Startup Costs 250,000 --- Demolitions (Vacant & Abandoned / Commercial)4,170,000 800,825 3,000,000 3,800,825 Neighborhood Development Assistance 150,000 --- Vacant Building Development Financing 2,000,000 --- Neighborhood Recovery Grants 200,000 --- Neighborhood Main Streets (Bike Racks, Trash Cans, etc.)500,000 --- Athletic Court Repair 1,600,000 744,281 855,719 1,600,000 Safe Community for Everyone 13,410,000 4.366.611 5,800,000 10,166,611 Homelessness Strategy Implementation 200,000 --- County Partnerships on Homelessness & Mental Health 5,800,000 -5,800,000 5,800,000 Gun Violence Intervention 500,000 --- Public Safety Technology Upgrades 1,500,000 2,223 -2,223 COVID Response 1,500,000 1,448,093 -1,448,093 COVID Facilities Upgrades 2,000,000 1,026,635 -1,026,635 ARP Premium Pay 1,910,000 1,889,660 -1,889,660 Robust, Sustainable Infrastructure 1,625,000 461,453 -461,453 Green Infrastructure -Greener Homes 100,000 --- Green Infrastructure -Solarize, Switch & Save 300,000 297,000 -297,000 Green Infrastructure -Commercial Recycling Partnership for CBD’s 75,000 --- Green Infrastructure -EV Plan & Deployment 150,000 14,453 -14,453 Green Infrastructure -Distributed Solar/Storage 1,000,000 150,000 -150,000 Equitable Access to Opportunity 8,950,000 4,904,460 -4,904,460 Small Business Assistance 1,750,000 --- Utility Relief 5,500,000 4,631,794 -4,631,794 Streamlined Assistance 600,000 221,317 -221,317 Opportunity Fund 1,000,000 --- Immigration Support 100,000 51,348 -51,348 Youth and Workforce Development 15,850,000 1,664,162 14,154,038 15,818,200 Workforce Development 250,000 218,200 -218,200 Dream Center 11,100,000 1,383,970 9,716,030 11,100,000 Pre-K Centers 4,500,000 61,992 4,438,008 4,500,000 Grand Total 58,005,000 13,842,388 23,809,757 37,652,145 Total Award: $58,910,047 Total Budgeted (unrelated to this bill): $58,005,000 Total Spent or Committed (as of 8/4/2022): $37,652,145 (~64% of total award) CITY OF SOUTH BEND, IN Neighborhood Plans Recently Developed Plans •West Side Main Streets •SE Neighborhood Master Plan •NNN •Near West Side Plans for 2023 •LaSalle Park •River Park •Comprehensive Plan Plans in Progress •Rum Village •NE •Kennedy Park •Monroe Park CITY OF SOUTH BEND, IN Strategic Context Takeaways •Historic opportunities for transformation •Continued need to be bold and aggressive •Upcoming work with Redevelopment Commission and Council on major financing package for READI and neighborhood projects CITY OF SOUTH BEND, IN Strategic Priorities Strong Neighborhoods Safe Community for Everyone Robust, Sustainable Infrastructure Equitable Access to Opportunity Youth and Workforce Development CITY OF SOUTH BEND, IN Strategic Priorities –Council Neighborhood Infrastructure •Street Paving •Curbs & Sidewalks •Lighting (including expansion of Light Up South Bend) •Traffic Calming •Wi-Fi expansion to neighborhoods that lack access •Green infrastructure Parks, Green Spaces & Community Centers •Creation of new City parks in areas where they don’t exist (especially 5th district) •Increase funding for tree trimming, tree management, and tree removal •Continued investment in community centers and upgrades to parks •Rum Village Community Center Neighborhood Revitalization •Residential Neighborhood Planning Completion •Land Bank •Update and Address Quality of Life Ordinances •Better management of vacant lots •More funding for repair and resurfacing of alleys. •Demolition of vacant buildings (esp. Drewry’s) Affordable Housing •Plan for safe and affordable housing •Access to the Home Repair Program •Home Repair Energy Savings Grants & Credits •Incentivize new housing construction in distressed neighborhoods •Mixed income housing development •Access to lead abatement program Strong Neighborhoods CITY OF SOUTH BEND, IN Strategic Priorities –Council Violence & Crime Reduction •Proactive policing, such as real-time crime center, and drug enforcement •Park Safety •Police Technology upgrades Recruiting & Retention •Provide any possible assistance to SBPD to assist in recruiting and retention •Increase the numbers of officers and recruits for SBPD Protecting the Vulnerable •Address Mental Health, including crisis response. •Continue to proactively address homelessness Safe Community for Everyone CITY OF SOUTH BEND, IN Strategic Priorities –Council Youth and Workforce Development •Create more jobs and manufacturing •Review Youth Employment Program •Job development & training •Create incentives for hiring/training South Bend high school graduates for high paying jobs. •Identify permanent funding for the Youth Council Program Inclusivity •Facilitate opportunity for minority and women owned businesses •Access to minority contractors getting city contracts. •Access to capital for minority businesses •Expand digital inclusion across the city Business Support •Economic development of businesses in challenging neighborhoods •Make South Bend a place for business •Investing in infrastructure to generate good paying jobs to spur economic growth and post-Covid economic recovery Economic Development CITY OF SOUTH BEND, IN Strategic Priorities –Council Leading City Team Better Customer Service Retain and attract top talent Increased engagement for 2023 Budget Process CITY OF SOUTH BEND, IN CITY OF SOUTH BEND, IN •Online Feedback Survey:https://southbendin.gov/budget/ •Call 311:Leave a voicemail with your budget priorities! •In-Person Meetings: •Coming Soon! CITY OF SOUTH BEND, IN Spending Highlights 2023 Budget CITY OF SOUTH BEND, IN Structural Budget Highlights •Full staffing level of officers (+8 from 2022) •Real time crime center operations (new crime analysts) •Rebuilding Our Streets plan fully funded •$300k for mental health (in addition to ~$1.3M in 2023, ~$1.3M in 2024 from ARP for crisis response center) •New neighborhood plans for LaSalle Park and River Park •Additional alley maintenance capacity (2 new positions and grading machine) •Tree planting matching fund initiative ($50k) •Doubling of traffic calming funding in structural budget ($800k in 2023) •Major water and sewer capital projects discussed during rates •Completion of athletic court repairs ($600k in addition to $1.6M in ARP) •$2M net ($6M total) for Dream Center in addition to $11.1M in ARP •Funding for Ethnic Fest ($300k) •New inspectors to boost RSVP, code programs •Continued investments in Climate Action Plan •Revamped VPA structure, emphasizing community programming and new arts equity position •Targeted wage increases for hard to recruit positions CITY OF SOUTH BEND, IN Budget Takeaways •Inflation complicates budgeting. •Competitive wages are climbing fast. •Healthy reserves provide flexibility in navigating uncertainty. •Budgeted debt is not actual debt. •Structural deficit makes new, ongoing expenditures unsustainable. CITY OF SOUTH BEND, IN Financial Overview - Structural 2023 Budget CITY OF SOUTH BEND, IN Step 1: Cash Reserve Requirements Fund Category 12/31/2022 Projected Cash Balance Cash Reserve Requirement Variance Reserve Requirement Explanation General Plus Funds 82,860,184 57,904,158 24,956,026 50% of annual operating expenses Other Operating Funds 21,212,176 15,648,381 5,563,795 Generally, 25% of annual operating expenses Other Special Revenue Funds 20,183,565 14,127,529 6,056,036 Rainy Day Fund -3% of total City expenses Capital & Debt Service Funds 39,164,079 25,621,185 13,542,894 Debt service reserves Internal Service Funds 16,186,090 8,486,914 7,699,176 Reserve requirement is for self-insured funds All Other Funds 53,608,015 4,292,777 49,315,238 Grand Total 233,214,109 126,080,944 107,133,165 CITY OF SOUTH BEND, IN Step 2: Revenue Projections (Structural)2019 Actual 2020 Actual 2021 Structural 2022 Structural 2023 Proposed Property Taxes 54,376,009 51,748,694 55,516,953 57,130,137 61,612,480 Local Income Taxes 34,559,628 36,873,820 35,733,172 30,064,713 32,377,457 Intergov./ Shared Revenues 26,357,577 24,774,012 25,595,557 27,290,333 27,704,386 Intergov./ Grants 7,505,897 10,037,177 10,489,409 4,977,855 4,387,255 Charges for Services 101,564,467 101,247,133 105,060,688 108,438,864 114,546,555 Fines, Forfeitures, and Fees 1,084,943 1,073,088 662,297 725,075 733,550 Licenses & Permits 1,994,397 1,619,205 1,821,899 1,920,025 1,881,225 Donations 3,939,038 3,177,302 3,169,885 2,419,000 6,603,000 Other Income 11,209,323 6,087,040 5,316,366 3,559,605 3,157,407 Interest Earnings 5,539,401 2,048,960 1,296,168 1,246,994 2,383,737 Debt Proceeds 1,472,985 11,899,923 27,792,114 7,556,000 57,111,500 PILOT 6,340,990 6,221,791 6,154,321 6,079,325 6,095,594 Interfund Allocation Reimb 22,440,553 20,960,750 25,124,917 26,096,665 26,659,591 Interfund Transfers In 45,229,210 53,051,701 59,548,925 49,395,810 61,104,395 Grand Total 323,614,417 330,820,594 363,282,670 326,900,401 406,358,132 CITY OF SOUTH BEND, IN Step 2: Revenue Projections Property Taxes CITY OF SOUTH BEND, IN Step 2: Revenue Projections Income Taxes CITY OF SOUTH BEND, IN Step 2: Revenue Projections (Structural)2019 Actual 2020 Actual 2021 Structural 2022 Structural 2023 Proposed Property Taxes 54,376,009 51,748,694 55,516,953 57,130,137 61,612,480 Local Income Taxes 34,559,628 36,873,820 35,733,172 30,064,713 32,377,457 Intergov./ Shared Revenues 26,357,577 24,774,012 25,595,557 27,290,333 27,704,386 Intergov./ Grants 7,505,897 10,037,177 10,489,409 4,977,855 4,387,255 Charges for Services 101,564,467 101,247,133 105,060,688 108,438,864 114,546,555 Fines, Forfeitures, and Fees 1,084,943 1,073,088 662,297 725,075 733,550 Licenses & Permits 1,994,397 1,619,205 1,821,899 1,920,025 1,881,225 Donations 3,939,038 3,177,302 3,169,885 2,419,000 6,603,000 Other Income 11,209,323 6,087,040 5,316,366 3,559,605 3,157,407 Interest Earnings 5,539,401 2,048,960 1,296,168 1,246,994 2,383,737 Debt Proceeds 1,472,985 11,899,923 27,792,114 7,556,000 57,111,500 PILOT 6,340,990 6,221,791 6,154,321 6,079,325 6,095,594 Interfund Allocation Reimb 22,440,553 20,960,750 25,124,917 26,096,665 26,659,591 Interfund Transfers In 45,229,210 53,051,701 59,548,925 49,395,810 61,104,395 Grand Total 323,614,417 330,820,594 363,282,670 326,900,401 406,358,132 CITY OF SOUTH BEND, IN Gasoline Tax and Wheel Tax CITY OF SOUTH BEND, IN Step 2: Revenue Projections (Structural)2019 Actual 2020 Actual 2021 Structural 2022 Structural 2023 Proposed Property Taxes 54,376,009 51,748,694 55,516,953 57,130,137 61,612,480 Local Income Taxes 34,559,628 36,873,820 35,733,172 30,064,713 32,377,457 Intergov./ Shared Revenues 26,357,577 24,774,012 25,595,557 27,290,333 27,704,386 Intergov./ Grants 7,505,897 10,037,177 10,489,409 4,977,855 4,387,255 Charges for Services 101,564,467 101,247,133 105,060,688 108,438,864 114,546,555 Fines, Forfeitures, and Fees 1,084,943 1,073,088 662,297 725,075 733,550 Licenses & Permits 1,994,397 1,619,205 1,821,899 1,920,025 1,881,225 Donations 3,939,038 3,177,302 3,169,885 2,419,000 6,603,000 Other Income 11,209,323 6,087,040 5,316,366 3,559,605 3,157,407 Interest Earnings 5,539,401 2,048,960 1,296,168 1,246,994 2,383,737 Debt Proceeds 1,472,985 11,899,923 27,792,114 7,556,000 57,111,500 PILOT 6,340,990 6,221,791 6,154,321 6,079,325 6,095,594 Interfund Allocation Reimb 22,440,553 20,960,750 25,124,917 26,096,665 26,659,591 Interfund Transfers In 45,229,210 53,051,701 59,548,925 49,395,810 61,104,395 Grand Total 323,614,417 330,820,594 363,282,670 326,900,401 406,358,132 CITY OF SOUTH BEND, IN 2023 Proposed Budget 2020 Adopted 2021 Adopted 2022 (Structural) 2023 Proposed YOY Variance Baseline Spending 292,070,873 290,635,789 302,563,116 316,468,374 4.6% Interfund Transfers 74,248,130 74,248,130 76,722,622 80,052,361 4.3% Debt Service 33,665,369 34,579,042 33,109,625 30,820,330 -6.9% Essential Operations 137,370,753 137,492,408 141,240,447 151,850,394 7.5% Administration 15,362,985 16,831,229 18,037,212 19,130,903 6.1% Building Dept 1,278,742 1,172,833 1,342,430 1,407,930 4.9% Police 37,124,735 36,229,403 38,238,868 40,157,936 5.0% Fire/EMS 32,309,512 32,375,440 33,970,949 35,922,093 5.7% Parks 5,793,147 5,775,801 5,948,905 6,985,940 17.4% PSAP 2,799,865 2,849,226 -- Solid Waste 3,146,387 3,290,449 3,671,802 3,877,421 5.6% Streets 8,161,137 8,392,652 8,904,634 9,858,218 10.7% Wastewater 17,724,823 17,184,277 17,577,918 19,172,548 9.1% Water 13,669,420 13,391,098 13,547,729 15,337,405 13.2% Maintenance of Current Capital 24,235,133 21,375,707 28,352,591 30,338,737 7.0% Self-Insurance 22,551,488 22,940,502 23,137,831 23,406,552 1.2% Strategic Spending 49,806,304 44,098,479 62,629,998 108,914,970 73.9% Strategic Operations 22,179,928 20,283,081 22,822,964 25,363,921 11.1% Community Investment 7,818,079 6,983,221 8,164,512 8,621,322 5.6% Venues Parks & Arts 12,748,002 11,564,143 12,672,225 14,704,878 16.0% Other Strategic Departments 1,613,847 1,735,717 1,986,227 2,037,721 2.6% Strategic Initiatives 27,626,376 23,815,398 39,807,034 83,551,049 109.9% Strong Neighborhoods 9,351,771 8,221,459 11,636,413 18,057,798 55.2% Safe Community for Everyone 1,159,077 1,407,172 1,208,335 1,708,335 41.4% Robust, Sustainable Infrastructure 16,065,500 12,460,701 25,272,500 62,457,636 147.1% Equitable Access to Opportunity 550,028 1,226,066 1,209,786 847,280 -30.0% Youth and Workforce Development 500,000 500,000 480,000 480,000 0.0% Grand Total 341,877,177 334,734,268 365,193,114 425,383,344 16.5% Note: Excludes Redevelopment Commission CITY OF SOUTH BEND, IN 2023 Proposed Budget Row Labels 2020 Adopted 2021 Adopted 2022 (Structural) 2023 Proposed YOY Variance Mayor's Office 1,640,947 1,946,866 2,312,207 1,194,678 -48.3% Clerk's Office 556,675 665,083 694,547 641,826 -7.6% Common Council 696,412 693,909 724,311 658,033 -9.2% Administration & Finance 62,306,426 64,641,693 51,191,541 57,036,684 11.4% Diversity & Inclusion 1,083,237 1,266,724 1,328,668 1,366,060 2.8% Legal Department 1,455,633 1,572,866 1,710,716 1,740,630 1.7% Public Works 123,764,342 114,801,708 142,090,184 177,917,174 25.2% Innovation & Technology 7,726,248 9,519,908 10,101,555 10,079,020 -0.2% Police Department 48,885,552 48,133,578 48,705,885 50,710,170 4.1% Fire Department 38,654,282 38,185,194 43,087,885 44,200,959 2.6% Community Investment 26,524,457 26,087,135 32,644,056 33,522,868 2.7% Venues Parks & Arts 28,582,966 27,219,604 30,601,559 46,315,242 51.3% Grand Total 341,877,177 334,734,268 365,193,114 425,383,344 16.5% Note: Excludes Redevelopment Commission CITY OF SOUTH BEND, IN 2023 Proposed Budget Total Revenue (City): 406,358,132 Total Expenditures (City):(425,383,344) Net Surplus/(Deficit)(18,898,432) •Deficit driven by: •Internal Service Funds Spend-Down:$ 2.3 million •Streets Funds Spend-Down $ 3.5 million •General Plus Fund Deficit: $13.2 million Note: Excludes Redevelopment Commission CITY OF SOUTH BEND, IN 2023 Proposed Budget •General Plus Fund Deficit: $13.2 million •Capital, one-time Spending: •$2 million (net): Dream Center •$5.5 million: Strategic Capital for streets •$1 million: Zoo Capital (per agreement) •$500,000: Additional asphalt court repair •Increased costs, particularly in chemicals and fuel •General Plus Fund History: •Stronger than expected revenue •Cost savings (particularly in personnel) General Plus Funds Budget 2020 2021 2022 Budget Actual Budget Actual Budget 6/30/2022 Actual Balanced $13.3 Million Surplus $5.0 Million Deficit $9.9 Million Surplus $6.3 Million Deficit $2.7 Million Surplus CITY OF SOUTH BEND, IN Personnel Assumptions •Non-bargaining personnel: 3.00% raise •City Residency Incentive: $1,000 →$2,000 •Sworn Firefighters:2.50% raise (per contract) •Teamsters: 2.00% raise (per contract) •City Residency Incentive: $1,000 →$2,000 •Sworn Police Officers: •Contract negotiations are ongoing. •In the meantime, the numbers in the budget currently are based on a 2.0% raise, which is meant to present a neutral position. •We expect these numbers to change based on the results of the contract negotiation. CITY OF SOUTH BEND, IN Format of Budget Hearings 2023 Budget CITY OF SOUTH BEND, IN Budget Hearing Schedule Date Time Topic Wednesday, August 17, 2022 5:00 PM 2023 City-Wide Budget Overview Wednesday, August 24, 2022 5:00 PM Police Department & Fire Department Wednesday, August 31, 2022 5:00 PM Venues Parks & Arts Tuesday, September 6, 2022 5:00 PM Council Working Session #1 Wednesday, September 7, 2022 5:00 PM Public Works Wednesday, September 14, 2022 5:00 PM Department of Community Investment Tuesday, September 20, 2022 5:00 PM Council Working Session #2 Wednesday, September 21, 2022 5:00 PM Admin & Finance, Innovation & Technology, and Diversity & Inclusion Monday, September 26, 2022 7:00 PM Public Hearing on 2023 Budget (@ 7:00 pm Council Meeting) Wednesday, September 28, 2022 5:00 PM Mayor’s Office, Legal Department, Clerk & Council Thursday, October 6, 2022 5:00 PM Transpo, Budget Wrap-up, and Final Questions CITY OF SOUTH BEND, IN Format of 2023 Budget Packets •Copy of each PowerPoint Presentation •Budget Summary Sheet •Summary of Spending •Personnel Summary •Summary of high-level personnel counts, including changes from 2022 •Personnel Detail •Complete listing of personnel in each area, including changes from 2022 •Line-Level Budget Detail