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Home My WebLink About09-13-2023 Budget Meeting Personnel & Finance - Department of Community Investment .: SOUTH g •.... 18651 OFFICE OF THE CITY CLERK DAWN M.JONES, CITY CLERK PERSONNEL & FINANCE September 13, 2023 5:30 P.M. Committee Members Present: Sheila Niezgodski, Rachel Tomas Morgan*, Eli Wax Canneth Lee Committee Members Absent: Other Council Present: Eli Wax, Henry Davis, Jr.* Lori Hamann, Karen L. White Other Council Absent: Troy Warner, Sharon McBride Others Present: Dawn Jones, Bob Palmer, Victoria Trujillo, Bianca Tirado Presenters: Caleb Bauer, Executive Director of Community Investment Agenda: Department of Community Investment Budget Hearing I Personnel & Finance Committee Meeting Please note, a full recording of the Budget Hearing can be found here: http://do cs southbendin.gov/W ebLink/0,0,0,0/fo l/3 65 8 67/Row 1.asp Sheila Niezgodski provided information regarding the 2024 Budget Overview process. Additional questions pertaining to this meeting, or the budget hearing can be emailed to the Personnel and Finance Committee Chair, Sheila Niezgodski, at sniezgodski(&,,southbendin.gov and they will be directed to the appropriate department. The Final Budget Hearing is scheduled for October 9,2023. Caleb Bauer—Executive Director of Community Investment with offices on the 14th floor of the County City Building presented the Department of Community Investment Mission, Organizational Structure, Accomplishments,Proposed 2024 Expenditures,Overview of Redevelopment Funds,and 2024 Goals. Some of the 2023 accomplishments include Strong Neighborhoods, Robust and Sustainable Infrastructure, Equitable Access to Opportunity,Youth and Workforce Development,and a Safe Community for Everyone. Mr.Bauer went on to discuss KPI measures from 2022 Actual and Year to Date that included jobs announced from projects supported by the city,private investments committed from projects supported by the city,RSVP inspections,housing counseling,homebuyers' assistance(CHC),environmental violations,and SBARC EXCELLENCE I ACCOUNTABILITY INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend.Indiana 46601 p 574.235.9221 f574.235.9173 I I U574.235.5567'www.southbendin.gov CITY OF SOUTH BEND OFFICE OF THE CLERK adoptions. Mr. Bauer presented the American Rescue Plan Implementation that is controlled by the Department of Community Investment including the amounts allocated in the 2022 budget process and what has been spent. All other ARP funds are controlled by the Department of Administration and Finance. Expenditures on the line items included in the presentation are as follows:Home Repair Assistance Programs ($6,419.96), Housing Finance ($1,924,778), Home Buying Assistance Program ($55.45), City-Wide Comprehensive Program ($305,464.35), Plan Implementation ($280,650), Land Bank Start Up Costs ($47,300), Demolitions (Vacant & Abandoned/Commercial) ($4,070,948.62), Neighborhood Development Assistance ($0), Vacant Development Financing ($1,500,00), Neighborhood Recovery Grants ($80,000), Neighborhood Main Streets (Bike Racks, Trash Cans, Etc.) ($68,511.06), Green Infrastructure Greener Homes ($0), Green Infrastructure Solarize, Switch, and Save ($297,000), Green Infrastructure Commercial Recycling Partnerships for CBD's($594.27),Green Infrastructure EV Plan and Deployment($88,279),Green Infrastructure Distributed Solar Storage ($1,000,000), Small Business Assistance ($60,876), Opportunity Fund($117,839.10),Immigration Support($100,000),and Workforce Development($214,430.25). Mr. Bauer continued his presentation with the 2024 Proposed Expenditures, 2024 Proposed: Building Department, 2024 Proposed: Community Investment (Legacy), 2024 Proposed: Department of Neighborhoods,and 2024 Proposed Strategic Initiatives.The summary of DCI Capital Expenditures includes 2 SUV w/CNG or Hybrid for the Building Department at the cost of$100,000,one(1)NEAT Crew Loader at the cost of$120,000, and 1 NEAT Crew Dump Truck at the cost of$180,000. These capital expenditures total$400,000. DCI proposed to increase the Homelessness Strategy Implementation funds.The increase would be to fund a commitment by the Administration for a low-barrier intake center at the cost of approximately $500,000 annually over a five-year period. Although the intake center may not be in operation next year, DCI would like to begin implementation of the funds towards capital expenditures. Additionally, $335,000-$350,000 would be allocated towards the Weather Amnesty Program and bus pass services to the homeless. DCI has made commensurate decreases in other spending to accommodate increases in other areas.DCI is proposing to removal of expenses in Complete Streets Transportation projects and Commercial Recycling Partnerships for CBD's. DCI also proposed cuts in expenditures to Neighborhood Engagement and Organization Support by -40%, Workforce Development by -$37.50, Neighborhood Planning by 62.50%, and Small Business Assistance by-20%. Committee Chair Sheila Niezgodski opened the floor to Committee Members for questions. Committee Chair Niezgodski asked about the new RSVP inspectors and if the delay is due to the shortage of vehicles. Mr. Bauer confirmed they are experiencing delays to hiring the inspectors is due to the shortage in vehicles. Committee Chair Niezgodski asked what the balance and timeline is for spending the affordable housing dollars. Mr. Bauer indicated he would get back to Committee Chair Niezgodski regarding her question. Councilmember Wax asked the reason behind purchasing SUVs for the department versus other types of vehicles. Mr. Bauer responded that they have experienced more wear and tear on sedans due to driving down alley ways and higher elevated vehicles have proven to be the better option for inspectors including their storage of equipment capacity. Councilmember White asked for the number of Code Inspectors employed withing DCI. Mr. Bauer EXCELLENCE ACCOUNTABILITY ! INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221!f 574.235.9173 I 11)574.235.5567 www.southbendin.gov 2 •CITY OF SOUTH BEND OFFICE OF THE CLERK responded there are 12-13 code inspectors total with (1) Chief Building Inspector—(8) Inspectors (Neighborhood and Enforcement Services Team), (4) RSVP Inspectors. Councilmember Whtie asked whether the inspectors are complaint driven or if they are out in the neighborhoods.Mr. Bauer responded that the inspectors are responsible for a specific geographic area. If the inspector receives a complaint, the inspector is responsible for the investigation in their designated area. Councilmember White inquired about the number of Code Enforcement citations that have been issued and the number of hearings that have taken place to date. Mr. Bauer responded there has been 9,839 environmental violations YTD, 393-Housing Violations (unsafe building law-254 and securing a building that is exposed-139) for a total YTD issuance of citations at slightly over$10,000. Councilmember Canneth Lee and Caleb Bauer discussed the funds that had been allotted to certain initiatives, such the Home Repair Program, but had not yet been used, as well as the schedule for spending them.There was more discussion about how DCI intends to work with contractors to recruit them to manage the Home Repair Program's capacity and resident interest. Councilmember Lee asked how DCI is engaging minority contractors and assisting them with some of the upfront costs of materials for the Home Repair Program. Mr. Bauer responded they are limited to how they can scope programming around race; however, they have noticed an opportunity for growth in small contracting businesses. There was dialogue between Councilmember Tomas Morgan and Caleb Bauer about the price of demolitions and what DCI was doing to make property owners accountable for their negligence. Councilmember Hamann and Caleb Bauer had a discussion on the conditions of the Weather Amnesty Program. There was also dialogue on the crossover roles of employees from VPA to Code Enforcement and their assistance with the maintenance of vacant lots. Mr. Bauer continued his presentation with the New Neighborhood Housing Plan. The goal is to use a comprehensive strategy to reduce appraisal gap citywide and spur new housing development on vacant lots.There is continued focus on vacancy reduction and supporting the Housing Authority of South Bend. The Choice Neighborhoods Initiative grant application is planned in 2024. This is a HUD grant program that has been modified for the renewal and rehabilitation of housing. DCI has goals to submit applications for grants to use towards securing more affordable housing development.Mr.Bauer indicated DCI intends to use ARP funds to scale home repair programming that is focused on life-safety repairs and those that preserve the current housing stock,with focus on Census tracts with the highest poverty rates. DCI would like to start first with the targeted investments in neighborhoods that have significant repairs and then take a broader look and making sure there is access city wide for smaller repairs that are still necessary to preserve the vibrancy of city neighborhoods. The underlying goal is to preserve the housing stock that exists within the city's historic neighborhoods. Mr. Bauer discussed the Vibrant Places and they DCI does not have an annual budget request for this program in the 2024 budget. Funding for this program has already been appropriated through ARP Small Business Assistance. There is the potential to revisit the Council in 2025 to match past EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld South Bend,Indiana 46601!p 574.235.9221 f 574.235.9173 TTD574.235.5567 www.southbendin.gov 3 iCITY OF SOUTH BEND OFFICE OF THE CLERK budget requests for the Neighborhood Corridors grant. Mr. Bauer went on to present on the vacant building credit enhancement, the South Bend 2045 Plan, and neighborhood plans. Councilmember Lee questioned whether those who had already applied for the Vibrant Places Grant would have to do so again. Mr. Bauer responded yes if they were to reapply, and the process is faster. Mr. Bauer continued with the Community Investment Budget (Civil City Funds, Capital/Trustee/Debt Service Funds, Redevelopment Funds), Redevelopment Funds, and TIF Revenues. Mr. Bauer discussed upcoming and ongoing projects that include more than a$1M match to support 2 IHCDA Low Income Housing Tax Credit Applications for Advantix Development Corp. and KCH Companies (awards announced in November). There is $4.5 M for the Rebuilding Our Streets initiative(new 3-year cycle).The$34 M Neighborhood Improvement Bond Projects will help fund projects that included the Walker Field Improvements, MLK Park Improvements, Southeast Park, LaSalle Ave. Streetscape, Kennedy Park, Mishawaka Ave. Streetscape, Portage- Elwood, Coquillard Park, River Bridge Connector, and Hill Street Trail, Linden Ave. Streetscape, and SB Avenue Streetscape. Additional Projects include $2M for LaSalle Park Upgrades, $500k to support Pure Green Farms Phase II, $500k for scattered site Permanent Supportive Housing match, and$3.5 M for Fire Station No. 8 renovation. New opportunities discussed in the presentation include READI 2.0, Hotel/Motel, PSCDA, and Federal Opportunities. Mr. Bauer closed his presentation with the Department of Community Investments 2024 goals. Committee Chair Niezgodski opened the floor to Councilmembers for final questions and remarks regarding the presentation. Councilmembers provided closing remarks and thanked Mr. Bauer and his team on their work in Community Investment. Councilmember Tomas Morgan voiced her concerns related to staff capacity to pursue federal funding that includes once in a lifetime opportunity such as the historic federal funding to cities through the infrastructure, investment JOBS Act and the Inflation Reduction Act. Mr. Bauer indicated the Department of Technology has assisted DCI on grant opportunities. Mr. Bauer responded they are strategic in the grant opportunities they pursue to ensure they meet their priorities, and they work with consultants to supplement their staff. Mr. Bauer thanked his team and Directors for their leadership and commitment. Committee Chair Niezgodski opened the floor to the Public for questions or comments. There was no one from the public audience with The meeting was adjourned at 8:01 P.M. EXCELLENCE I ACCOUNTABILITY I INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend.Indiana 46601 p 574.235.9221 f 574.235.9173 I I D574.235.5567 www.southbendin.gov 4 CITY OF SOUTH BEND OFFICE OF THE CLERK Respectfully Submitted, it;frdigh. Sheila Niezgodski, Committee Chair EXCELLENCE ACCOUNTABILITY INNOVATION ! INCLUSION EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend.Indiana 46601 p 574.235.9221 f574.235.9173'I I D574.235.5567 www.southbendin.gov 5