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Home My WebLink About09-23-2024 Budget Public Hearing PresentationCity of South Bend 2024 Budget: Public Hearing September 23, 2024 • City of South Bend Indiana • 11 public meetings Wednesday, August 14, 2024 Wednesday, August 21, 2024 Wednesday, August 28, 2024 Wednesday, September 4, 2024 Thursday, September 12, 2024 Wednesday, September 18, 2024 Monday, September 23, 2024 Wednesday, September 25, 2024 Thursday, September 26, 2024 Thursday, October 3, 2024 Monday, October 14, 2024 .. Indiana 6 have been completed, tonight is the 7th . 5:30 PM 5:30 PM 5:30 PM 5:30 PM 5:30 PM 5:30 PM 7:00 PM 5:30 PM 5:30 PM 5:30 PM 7:00 PM 2025 City-Wide Budget Overview Police Department & Fire Department Venues Parks & Arts Public Works Department of Community Investment Administrative Departments (Admin & Finance, Legal Dept., Innovation & Technology) Public Hearing on 2025 Budget (Council Meeting) Mayor's Office, Diversity & Inclusion, City Clerk, Common Council Transpo, Budget Wrap-up and Final Questions Council Working Session Vote on 2025 Budget (Council Meeting) Filed in Clerk's Office 5-:p 2 4 2024 Bianca Tirado City Clerk, South Bend, IN BUILD THE BUDGET • 4th year running Build the Budget • Engagement ran July 30 -September 15 • Online and voicemail engagement was down compared to last year, but overall feedback was up because of high in- person engagement across 9 events • 1,155 (BtB 2024) < 1,546 (BtB 2025) • 29% increase, highest number yet I& Twill be distributing and publishing the report this Wednesday 9 /25! City of South Bend -.. ' Indiana • ' 70 Online Survey Responses 161 311 Voicemails 1,315 In-person Envelope Wall Participants 1,546 Total pieces of resident feedback Top priorities across engagement methods 5 Major Themes: 1. Resurfacing & repairs for roads and streets 2. Improvements to neighborhood infrastructure 3. Safe, non-violent communities 4. Housing availability, accessibility, and affordability 5. Continued investment in City parks & trails _ ·-: City of So uth Bend ' .. _, Indiana Additional analysis available in the Budget Feedback Report. 2025 Proposed Budget • ·, •. , City of South Bend ... • Indiana Strong Neighborhoods City of South Bend .. Indiana Macroeconomy • Inflation has stabilized, prices remain high • Continued growth, lower interest rates ahead • Competitive wages continue to climb faster than revenue growth Ci.y of South Bend ~ !ndia:t::: Safe Community for Everyone Robust, Sustainable Infrastructure Youth and Workforce Development City Financial Position • 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. Policy Outlook • New federal spending unlikely • State road funding formula • State tax reform proposals 2022 Actuals 2023 Actuals 2024 Amended Budget 2025 Proposed Budget VOV % Chg Property Taxes 58,019,715 61,739,306 Local Income Taxes 31,464,266 44,541,348 Charges for Services 110,825,456 114,705,082 Debt Proceeds 20,602,267 4,913,200 Donations 3,523,560 4,721,935 Fines, Forfeitures, and Fees 646,218 664,440 Interest Earnings 3,926,913 7,982,221 lntergov./ Grants 39,837,702 8,738,061 lntergov./ Shared Revenues 25,298,818 27,529,359 Licenses & Permits 2,240,128 2,348,304 PILOT 6,079,325 6,095,594 Other Income 6,178,396 5,643,414 lnterfund Transfers In 46,216,472 53,946,233 lnterfund Allocation Reimb 25 996 674 26 659 591 65,178,717 41,439,340 123,589,568 26,573,000 9,720,560 744,420 12,411,286 4,489,368 30,670,188 1,930,707 6,024,186 3,108,272 76,607,072 30 402 622 67,911,165 43,460,144 122,732,256 18,063,997 1,383,000 781,840 6,078,935 5,179,662 30,411,793 2,588,372 5,765,661 3,575,579 61,042,656 32 782 959 4.2% 4.9% -0.7% -32.0% -85.8% 5.0% -51.0% 15.4% -0.8% 34.1% -4.3% 15.0% -20.3% 7.8% GrandTotal 380,855,910 370,228,088 432,889,306 401,758,019 -7.2% City of South Bend Indiana Mayor's Office City Clerk Common Council Administration & Finance Legal Department Public Works Innovation & Technology Police Department Fire Department Dept of Community Investment Venues, Parks & Arts l1nterfund Transfers $ Note: Excludes Redevelopment Commission 2024 Ad t d i ~ YOY % 2022 Actual I 2023 Actual Bud et I Bud et Chan e 2,132,797 $ 869,934 $ 1,109,306 $ 1,180,862 6.45% 433,836 424,275 492,180 510,538 3.73% 509,239 599,639 888,100 941,725 6.04% 52,290,061 41,613,850 47,995,436 51,742,415 7.81% 1,303,534 1,441,171 1,731,678 1,807,343 4.37% 82,035,216 74,748,032 109,085,221 113,300,084 3.86% 9,298,919 9,420,931 13,046,360 15,011,232 15.06% 43,031,323 46,162,859 51,624,354 54,276,559 5.14% 38,290,606 41,819,635 43,376,051 42,778,207 -1.38% 27,676,663 16,795,208 22,712,628 22,056,642 -2.89% 36,461,432 36,759,065 31,651,661 32,543,473 2.82% 75.226,513 I 55,791.011 I 83,421.056 I 85,691,953 I 2.71% Grand Total '$ 368,690 139 $ 326,445,616 $ 407,128 031 421841 032 3.61% City of South Bend Indiana Note: Excludes Redevelopment Commission General Fund 85,359,323 local Income 43,777,330 Tax Funds- Public Safety & Economic Development Special 52,474,069 Revenue Funds Capital & Debt Service 19,418,335 Funds Internal Service Funds 21,370,045 Enterprise & Other 118,396,080 Funds Total Revenue (City): Total Expenditures (City): Net Surplus/(Deficit): • Deficit Breakdown: 53,663,670 31,695,653 10,554,983 33,222,347 9,711,029 42,763,040 5,146,903 14,271,432 5,205,831 16,164,214 25,525,932 92,870,148 $401,758,019 ($421,841,032) ($20,083,013) • General Plus Funds Deficit: $10,859,787 • Enterprise Funds Deficit: $12,700,579 • Other funds surplus: $3,477,353 31>/o of annual operating expenses Generally, 50% of annual operating expenses Rainy Day Fund -J>/oof total City expenses Debt Service Reserves Reserve requirement is for self- insured funds • General Plus Funds deficit increased due to decrease in projected property tax revenue and local income tax revenues per DLGF data. . City of South Bend " Ad111i11islmtio11 & Fi11n11ce Note: Excludes Redevelopment Commission ... • General Plus Fund Deficit (Governmental Funds): • 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 Budget Actual Budget Actual Budget 6/30/2024 Actual $6.3 Mil/ion $2.7 Million $13.1 Million $9.28 Million $16.1 Million $5.2 Million Deficit Surplus Deficit Surplus Deficit Surplus • Stronger than expected revenue • Cost savings {particularly in personnel and some departments spending roughly 70-75% of their actual budgets.) City of South Bend Indiana Safe Community for Everyone • Expansion of Community Resource Officers and Strategic Focus Unit (full staffing level of 257 sworn officers) • Expansion of real time crime center operations and technology • Continued investments in homelessness strategy • Animal Resource Center • Upcoming fire negotiations Strong Neighborhoods and Infrastructure • 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 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