HomeMy WebLinkAbout08-14-2024 Mayor Budget Overview;,. 2024 Budget Hearing #1: a_ \ ·1tY ,~1 ..;,~uth fl~lld .... -\JHl/111$1/,lll,'I/ <':., frlltllJd 1 Budget Overview 2025 Budget August 14, 2024 Strong Neighborhoods --Safe Community for Everyone Robust, SUstainable Int.=•~ re Equitable. Aa:essto Qpportunity .. • . Youth and Workforce Development ,,.,.. 2 Filed in Clerk's Office AIJG 1 4 2024 Bianca Tirado City Clerk, South Bend, IN 8/14/2024 1
3 ~ Macroeconomy • Inflation has stabiiized, prices remain high • Continued growth, lower interest rates ahead • Competitive wages continue to climb faster than revenue growth ~ .. City nl Suuth Bt>nd ~ l\,l111111,~lr!lf11111 &l-wauc,· • Growing revenue, healthy reserves • Need to grow into existing budget, making additional cuts wherever possible • Structural deficit makes new, ongoing expenditures unsustainable • Budgeted deficit is not an actual deficit. Polley Outlook • New federal spending unlikely • State road funding formula • State tax reform proposals 4 Eliminate Budt:eted Deficit • Elimination of ARP and nontraditional services • Cuts to basic services or new revenue ~-. C1tv ol South Bt>ml ': • /\,lm111htrnt,,111&l-11111uc,: Increase Basic Services, Reduce ARP/Other Nontraditional Services • Elimination of ARP and nontraditional services • Prioritization of some basic services or • New revenue --New Proi:rams and Services • Cuts to basic and nontraditional services and • New revenue 8/14/2024 ?
> t't 5 Safe Community for Everyone • Expansion of Community Resource Officers and Strategic Focus Unit {full staffing level of 25 7 sworn officers) • Expansion of real time crime center operations and technology • Continued investments in homelessness strategy • Animal Resource Center • Upcoming fire negotiations Highlights Sih·hi-}IUl'"I • Continued funding above historic levels for Rebuilding Our Streets • Parks and neighborhood projects • Vibrant places grant • IGNITE grants • Neighborhood plan for Twyckenham Hills • MLK Dream Center operations • All-of-the-above housing strategy Good Government • latest best practices in Innovation & Technology • Cost of living adjustments to attract and retain talent, Teamsters negotiation • Climate Action Plan • Improved experience in public spaces 6 ~• C,tv ,,t South Bt•nJ \ • A,/1111111~tr11111111 & ,-,1ia11c,' Financial Overview Proposed 2025 Budget 8/14/2024 ~
8/14/2024 Cash Reserve Requirements Fund Category 12/31/2024 Projected cashResave Variance Re;erve Requirement Explanation cash Balance Requirement 2021 Actuals 2022 Actuals Property Taxes 55,516,953 58,019,715 2023~uals 2024 Amended Budget 2025 Proposed Budget 61,739,306 65,178,717 69,930,540 local Income Taxes 35,733,172 31,464,266 44,541,348 41,439,340 47,369,788 General Fund 100,899,175 54,411,751 46,487,424 !IP/o dam.el operating expenses Charges for Services 105,060,688 110,825,456 114,705,082 123,589,568 123,496,462 LOcal Income 30,078,645 11,094,983 18,983,662 Generally, 91'/o af amual operating Tax Funds-expenses Public safety & Economic Debt Proceeds 27,792,114 20,602,267 Donations 4,581,762 3,523,560 Fines, Forfeitures, and Fees 662,297 646,218 Interest Earnings 1,398,903 3,926,913 4,913,200 26,573,000 18,063,997 4,721,935 9,720,560 1,383,000 664,440 744,420 781,840 7,982,221 12,411,286 6,078,935 Development lntergov./ Grants 39,944,433 39,837,702 8,738,061 4,489,368 5,179,662 Special 62,629,836 3,268,692 59,361,144 Rainy Day Fund -~loaf IDtal City ReYenueFunds expenses lntergov./ Shared Revenues 25,595,557 25,298,818 Licenses & Permits 1,821,899 2,240,128 PILOT 6,154,321 6,079,325 27,529,359 30,670,188 29,156,740 2,348,304 1,930,707 2,588,372 6,095,594 6,024,186 5,765,661 cai-&Debt5ervice 17,818,646 5,270,338 12,548,308 Debt 5ervice Reserves Funds Other Income 5,316,366 6,178,396 lnterfund Transfers In 57,632,946 46,216,472 5,643,414 3,108,272 3,564,079 53,946,233 76,607,072 61,893,928 In1Ema15ervia!Funds 24,714,798 5,205,831 19,508,967 Resave requirement is for self-instredfunds lnterfund Allocation Reimb 25,124,917 25,996,674 Grand Total 392,336,327 380,855,910 26,659,591 30,402,622 32,722,479 370,228,088 -432,889,306 -407,975,483 -Ente,prise&Othe, 127,599,014 26,762,882 100,836,132 Funds ~\ C1tv ol South Bl•lld ~ • A,l1111111~trnt11m & f.1m111c,· 7 8 ~ A.
'" 9 Total Revenue (City): Total Expenditures (City): Net Surplus/(Deficit): Deficit Breakdown: General Plus Funds Deficit: $7,738,646 $407,975,483 ($423.414,212) ($16,527,231) Other Governmental Funds Surplus of $4,087,760 reduces total Governmental Fund Deficit to $3,650,886. Enterprise Funds Deficit: $12,876,345 (Spend down of Internal Service fund balances across various funds ($2.lm), and transfer of funds across Water and Sewer funds for capital and debt service expenditures, ($10.7m). ~-C11y o1 South B,•nJ ~ • A,lw111,~tr11twu & ~l111111c,• Nolt. E.uk.deJ Reck\·d09f'ienl Comrnrs-General Plus Fund Deficit: Subsidies for Streets Department capital and operational expenditures. Subsidize Parks operations Expenditures for the Real-Time Crime Center and cameras for the Fire Department and City Parks. Increased operating costs due to inflation and increased salaries and wages General Plus Fund History: General Plus Funds Budget 2022 2023 2024 6/30/2023 Budget Actual Budget Actual Budget Actual $6.3m $2.7m $13.lM $9.28M $16.lM $5.2M Deficit Surolus Deficit Surnlus Deficit Surolus • Actual revenues were higher than budgeted amounts • Cost savings (particularly in personnel and some departments spending roughly 70 -75% of their actual budgets. ) .. ~, •• C1tv ol S11uth B,•nd • /\,/1111111 .. trnl1tJ11&l-1111111c,· 10 8/14/2024 ,:;
01 Mayor's Office 02 City Clerk 03 Common Council 04 Administration & Finance 05 legal Department 06 Public Works 07 Innovation & Technology 08 Police Department 09 Fire Department 10 Dept of Community Investment 11 Venues, Parks & Arts and Total •~• C11v ot South Ex•nd "· A,/1111111--tml1<111&l-11111uc.· 11 2025 Proposed Budget 2024 Amended 2025 Proposed 2021 Actual 2022 Actual 2023 Actual Budget Bud~et 1.716.896 2.132.797 869.934 1,109.306 1.180.862 477.787 433.836 424.275 492.180 510.538 538.882 509.239 599.639 888.100 941.725 35,073.661 52.290.061 41.613.850 47.995.436 51,511.576 1.227.132 1.303.534 1.441.171 1.731.678 1.807.343 93.949.799 82.035.216 74.748.032 109.085.221 112.879.294 9.183.704 9.298.919 9.420.931 13.056.860 15.011.232 42.044.556 43.031.323 46.162.859 51.624.354 55.143.126 35.767.842 38.290.606 41.819.635 43.376.051 43,644.774 19.419.521 27.676.663 16.795.208 22.712.628 22.414.361 22.403.068 36.461.432 36.759.065 31.842.727 33.717.369 261,802,847 293,463,626 270,654,59 • Amounts do nae include ioter1und transfers • Non-bargaining persorv,el: 3.00% raise • City Residency Incentive: $2,000 • SWom Firefighters: TBD raise (per new contract) • Teamstas: TBD raise (per new contract) • City Residency Incentive: $2,000 SWom Police Officers: 4.25% raise (per rurrent contract) ~·• City t1I S,•ulh S.•nd -: • A,/111111htrflt1,m & /--11,auc,' 12 8/14/2024 ~
Format of Budget Hearings 2025 Budget ;.;; City ,1t Snuth 8,•11d ~ A,/1111111~/rnl1t•11 &J-11rn11C<' 13 Budget Hearing Schedule Date o,. Wednesday, August 21, 2024 Wednesday, August 28, 2024 Wednesday, September 4, 2024 Wednesday, September 11, 2024 Thursday, September 12, 2024 Wednesday, September 18, 2024 Wednesday, September 25, 2024 Thursday, September 26, 2024 Monday, September 30, 2024 Thursday, October 3, 2024 14 liliil 00 5:30 PM 5:30 PM 5:30 PM 5:30 PM 5:30 PM 5:30 PM 5:30 PM 5:30 PM 7 :00PM 5 :30PM Topic ae Budoet Qvo::>rvu:i Police Department & Fire Department Venues Parks & Arts Public Works Council Working Session # 1 Community Investments (DCI) Admin & Finance, Legal Department, and Innovation & Technology Mayor's Office, Diversity & Inclusion, City Clerk, Common Council Transpo, Budget Wrap-Up and Final Questions • -Public Hearing -City Budget Council Working Session # 2 8/14/2024 7
• Copy of each PowerPoint Presentation (submitted at least 24hrs before scheduled budget hearing) • Budget Summary Sheet • Summary of Spending • High-level summary of proposed personnel changes ~\ City ul St•uth Bt>1lll ~ • J\,lm1111~lr11l1,m & ~I/Ill/IC,' 15 8/14/2024 A