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Home My WebLink About57-25 2026 TRANSPO Budget Appropriation and Property Tax Levy County-City Building -- - Phone 311 inside City limits 227 W Jefferson Blvd Suite,1200 N ($-613.51--B�, Email 311@southbendin.gov South Bend,IN 46601 �� Website Southbendin.gov James Mueller,Mayor ,mod 77(1k w a PEACE Filed in Clerk's Office % 12/ 1865 City of South Bend Bianca Tirado City Clerk, South Bend, IN Department of Administration & Finance Division of Human Resources September 3,2025 Canneth Lee,President City of South Bend Common Council 227 W.Jefferson Boulevard,4th Floor South Bend, Indiana 46601 RE: 2026 TRANSPO Budget Appropriation and Property Tax Levy Dear Council President Lee: Attached, please find a bill for consideration by the Common Council of the City of South Bend appropriating,adopting and approving monies for the South Bend Public Transportation Corporation(Transpo)for the fiscal year commencing January 1,2026,and ending December 31, 2026. This bill is respectfully submitted for 1st reading filing with the Common Council for the council meeting on September 8th,2025,2nd reading and public hearing at the council meeting on September 22nd,2025,with 3rd reading and council vote at the council meeting on October 13t'', 2025. Per requirements of the Indiana Department of Local Government Finance("DLGF"),when this bill is voted upon,each Councilmember's vote must be reflected on the last page of Exhibit B ("DLGF Budget Form No.4"),and each Councilmember must sign this page of Exhibit B. I will be available to discuss this bill at the appropriate sessions of the Personnel and Finance Committee and other meetings of the South Bend Common Council. Employees of the South Bend Public Transportation Corporation will also be available at these meetings. Regards, yw,-L04._, Kyle Willis City Controller Filed in Clerk's Office BILL NO. 57-25 Bianca Tirado ORDINANCE NO. City Clerk, South Bend, IN AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,APPROPRIATING, ADOPTING AND APPROVING THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION'S 2026 BUDGET AND LEVYING THE TAX AND FIXING THE RATE OF THE TAXATION FOR THE PURPOSE OF RAISING REVENUE TO FUND THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION, SOUTH BEND, INDIANA, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2026 STATEMENT OF PURPOSE AND INTENT Pursuant to Indiana law, the South Bend Public Transportation Corporation is required to submit its proposed budget and tax levy to the Common Council of the City of South Bend for adoption. Specifically, Indiana Code § 6-1.1-17-20 requires that the South Bend Public Transportation Corporation, as a political subdivision governed by a majority of unelected officials, submit its proposed budget and property tax levy to the Common Council of the City of South Bend. Pursuant to Indiana Code § 6-1.1-17-20(e), the Common Council of the City of South Bend is required to review the South Bend Public Transportation Corporation's budget and proposed tax levy and adopt a final budget and tax levy for the South Bend Public Transportation Corporation. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: SECTION I. The South Bend Public Transportation Corporation's budget for the year ending December 31, 2026, in the sum of$13,532,365, as shown in the budget filed with the Common Council on September 3,2025, and attached to this Ordinance as Exhibit A, is appropriated, adopted, approved and ordered set apart out of the several funds herein named and for the purposes herein specified, subject to the laws governing the same. Such sums herein appropriated shall be held to include all expenditures authorized to be made during the year,unless otherwise expressly stipulated and provided for by law. By adoption of and consistent with this Ordinance, the State-mandated Budget Form No. 4 attached to this Ordinance as Exhibit B is hereby approved and adopted. SECTION II. For the purpose of raising revenue to meet the necessary expenses of the South Bend Public Transportation Corporation, there shall be levied a property tax upon each one hundred dollars of assessed valuation of taxable property within the City of South Bend, Indiana, for the fiscal year 2025 to be collected in the year 2026, as shown and described in Exhibit B. SECTION III. This Ordinance shall be in full force and effect from and after its passage by the Common Council of the City of South Bend and approved by the Mayor. Canneth J. Lee, Council President South Bend Common Council Attest: Bianca L. Tirado, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana on the day of , 2025, at o'clock .m. Bianca L. Tirado, City Clerk Office of the City Clerk Approved and signed by me on the day of , 2025, at o'clock .m. James Mueller, Mayor City of South Bend, Indiana Filed in Clerk's Office Bianca Tirado City Clerk,South Bend, IN Al& transpo south bend public transportation corporation 2026 FISCAL OPERATING & CAPITAL BUDGET January 1, 2026 through December 31, 2026 Prepared By South Bend Public Transportation Corporation SOUTH BEND PUBLIC TRANSPORTATION CORPORATION SOUTH BEND, INDIANA 2026 FISCAL YEAR BUDGET REQUEST TABLE OF CONTENTS BUDGET ESTIMATE FOR 2026 PROJECTIONS I ASSUMPTIONS 2026 Revenue Projection 1 2026 Expense Projection 2 2026 Appropriations 3 2026 Budget Assumptions 4 2026 Budget Policy Statements 6 2026 Budget Summaries by Category —All Accounts 7-14 SOUTH BEND PUBLIC TRANSPORTATION CORPORATION 2026 REVENUE PROJECTION %CHANGE-2024 BUDGET vs. ACTUAL 2023 2026 2025 2024 2025 2024 SOURCE BUDGET BUDGET ACTUAL BUDGET ACTUAL FAREBOX $ 1,494,777 $ 1,406,375 $ 1,422,834 6.29% 5.06% ADVERTISING $ 271,665 $ 262,493 $ 281,224 3.49% -3.40% LEASE REVENUE $ 15,318 $ 25,963 $ 14,566 -41.00% 5.16% CONCESSIONS AND MISCELLANEOUS $ 24,600 $ 24,600 $ 9,947 0.00% 147.31% INTEREST INCOME $ 2,704 $ 2.704 $ 43,950 0.00% -93.85% $ PROPERTY TAX $ 4,053,116 $ 4,065,115 $ 3,985,853 -0.30% 1.69% LICENSE EXCISE TAX $ 260,000 $ 260,000 $ 249,946 0.00% 4.02% $ - LOCAL INCOME TAX $ 739,168 $ 808,971 $ 764,444 -8.63% -3.31% STATE ASSISTANCE $ 2,080,062 $ 2,060,889 $ 2,080,062 0.93% 0.00% FEDERAL PREVENTATIVE MAINTENANCE $ 1,250,000 $ 1,250,000 $ 1,081,000 0% 15.63% FEDERAL ASSISTANCE $ 2,284,955 $ 1,934,955 $ 1,791,200 18% 27.57% LEASE PAYMENT FROM CITY $ - $ 145,205 $ 200,000 -20% -100.00% TOTAL $ 12,476,365 $ 12,247,942 $ 11,925,026 1.86% 4.62% 1 SOUTH BEND PUBLIC TRANSPORTATION CORPORATION 2026 EXPENSE PROJECTION %CHANGE-2025 BUDGET VS. ACTUAL 2024 2026 2025 2024 2025 2024 Expense Category BUDGET BUDGET ACTUAL BUDGET ACTUAL Salaries & Wages $ 6,888,585 $ 6,890,525 $ 6,371,680 -0.03% 8.11% Fringe Benefits ^ $ 2,626,015 $ 2,530,854 $ 2,130,046 3.76% 23.28% Services $ 872,952 $ 752,309 $ 985,210 i 16.04% -11.39% Materials & Supplies $ 906,228 $ 885,669 $ 873,272 2.32% 3.77% Utilities $ 427,000 $ 396,000 $ 337,335 7.83% 26.58% Insurance $ 643,285 $ 678,285 $ 546,125 -5.16% 17.79% Other Taxes Miscellaneous $ 112,300 $ 111,300 $ 90,377 0.90% 24.26% SUB-TOTAL $ 12,476,365 $12,244,943 $ 11,334,045 1.89% 10.08% Transfer- Capital Improvements I Reserve for Liability $ - TOTAL 1 $ 12,476,365 $12,244,942 $ 11,334,045 1.89% 10.08% 2 TRANSPO Budgeted Appropriations Operating Budget Capital Budget Total 2026 Category 2026 2025 2026 2025 Appropriations Personnel Services 9,514,600 9,421,379 9,514,600 Other Services and Charges 2,055,537 1,937,894 2,055,537 Supplies 906,228 885,669 906,228 Capital Outlays 54,860 268,000 1,001,140 1,340,000 1,056,000 Total Appropriations $12,531,225 $12,512,943 $ 1,001,140 $1,340,000 $ 13,532,365 r 3 Al& transpo 2026 OPERATING BUDGET ASSUMPTIONS REVENUES: Federal, State, and Local: Transpo continues to avail ourselves of annual federal capital formula grant funds for preventative maintenance and operating assistance. The application of such funds towards the operating budget assists with offsetting any increased expenses. In the past year, expenses have been increasing greater than revenues. This has increased the challenge of providing a balanced budget. Transpo will continue to pursue competitive grant opportunities to fund capital improvements and expenses. Ridership and Revenue: Transpo, like public transportation agencies across the country, continues to rebuild ridership following the COVID-19 Pandemic. The 2022 ridership was 72% pre-pandemic ridership and continued to increase into 2024 where ridership was 88% of pre covid numbers. In June of 2025, Transpo implemented the Connect Transit plan. It is still early in the implementation process to determine the effects it has on ridership and expenses. EXPENSES: Employee Wages and Benefits: For 2026, Transpo budgeted an increase in wages and employee benefits from the 2025 budget. Wage increases are dictated by Collective bargaining agreements. Health insurance premiums have remained unchanged, for the fifth year in a row, in the 2026 budget. Transfer — Capital Improvement Fund/Restricted Liability Reserve: The 2026 budget does not provide the opportunity to transfer funds into the capital account to fund capital purchases. If at the end of 2026, a budget surplus would occur, the surplus would be transferred to the capital account to fund 2027 capital purchases. UPON THE ADOPTION OF THE ANNUAL BUDGET BY THE SOUTH BEND PUBLIC TRANSPORTATION BOARD OF DIRECTORS, A MONTHLY BUDGET, BASED ON HISTORICAL AND FUTURE TRENDS, 4 WILL BE ESTABLISHED. THIS WILL HELP FACILITATE THE MONTHLY REVIEW OF FINANCIAL REPORTS BY BOARD MEMBERS AND INTERNAL MANAGEMENT. 5 transpo 2026 OPERATING BUDGET POLICY STATEMENTS FINANCIAL CAPACITY: 1. Management will continue to search for investment, grant and funding opportunities to maximize revenues. 2. Management will assure cash handling practices to safeguard funds in its protection and toward timely collection of funds owed. SERVICE POLICY: 3. Transpo, in partnership with MACOG, completed the CONNECT Transit Plan operational analysis in 2023. The Transpo Board of Directors approved both the Short-Term Network and Additional Funding Network. Transpo implemented the changes on June 2,2025. 4. Access service will be provided in accordance with all applicable FTA guidelines. MANAGEMENT: 5 A professional workforce will carry out our Mission Statement. Management will assure fairness, consistency, and effective Equal Employment Opportunity and Affirmative Action policies and practices. 6. Assumes continuation of team development, employee recognition, and increased opportunities for employee training. 7. Assumes continued pursuit of programs of wellness and accident prevention in an effort to stem, to whatever extent possible, rising insurance costs. 6 TRANSPO 2026 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Salaries &Wages Summary 2024 ACTUAL $ 6,371,680 2026 BUDGET REQUEST $ 6,888,585 2025 MONTHLY AVERAGE $ 524.044 2025 APPROVED BUDGET $ 6,890,524 2025 EST EXPENSE $ 6,288,525 BUDGET CHANGE $ (1,939) Account Title 2025 2026 Operations-Fixed Route $ 3,786,246 $ 3,800,163 Operations-ADA 749,596 775,748 Operations-Administration 457,903 383,424 Maintenance-Vehicles 1,071,181 1,080,662 Maintenance-Administration 142,751 145,996 Maintenance-Non-Revenue 114,751 118,414 General Administration 568,094 584,178 Total $ 6,890,524 $ 6,888,585 7 TRANSPO 2026 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Fringe Benefits Summary 2024 ACTUAL $ 2,130,046 2026 BUDGET REQUEST $ 2,626,015 2025 MONTHLY AVERAGE $ 210,892 2025 APPROVED BUDGET $ 2,530,854 2025 EST EXPENSE $ 2,530,710 BUDGET CHANGE $ 95,161 Account Title 2025 2026 Fringe Benefits-FICA $ 527,125 $ 526,977 Fringe Benefits-Pension Plan 352,176 348,295 Fringe Benefits-Medical Insurance 1,311,632 1,316,352 Fringe Benefits- Dental Insurance 51,093 54,000 Fringe Benefits--Life Insurance 57,728 57,294 Fringe Benefits-Short Term Disability 7,096 7,008 Fringe Benefits-Unemployment Insurance 11,032 10,818 Fringe Benefits-Workman's Compensation 160,462 253,421 Fringe Benefits-Uniforms 46,510 45,850 Fringe Benefits-Tool Allowance 6,000 6,000 Total $2,530,854 $ 2,626,015 8 TRANSPO 2026 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Services Summary 2024 ACTUAL $ 985,210 2026 BUDGET REQUEST $ 872,952 2025 MONTHLY AVERAGE $ 77,572 2025 APPROVED BUDGET $ 752,309 2025 EST EXPENSE $ 1,022,121 BUDGET CHANGE $ 120,643 Account Title 2025 2026 Professional & Technical 140,369 165,369 Board Travel/Training 2,000 2,000 Temporary Help 2,500 2,500 Contract Services Operations 54,850 58,850 Contract Services Maintenance 294,700 308,700 Contract Services Administration 164,800 198,800 Security Services 93,090 136;733 Physical Damage Repairs 20,000 20,000 Recoveries of Physical Damage Repairs (20,000) (20,000) Total $ 752,309 $ 872,952 9 TRANSPO 2026 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Materials& Supplies Summary 2024 ACTUAL $ 873,272 2026 BUDGET REQUEST $ 906,228 2025 MONTHLY AVERAGE $ 69,194 2025 APPROVED BUDGET $ 885,669 2025 EST EXPENSE $ 830,325 BUDGET CHANGE $ 20,559 Account Title 2025 2026 Fuel & Lubricants Operations $ 496,082 $ 469,004 Fuel & Lubricants Maintenance 16,027 13,364 Tires & Tubes Maintenance 2,560 2,560 Materials & Supplies Operations 10,000 10,000 Materials & Supplies Maintenance 320,000 370,000 Materials& Supplies Marketing 17,000 17,000 Other Materials& Supplies Operations 7,500 7,800 Other Materials & Supplies Maintenance 2,600 2,600 Other Materials & Supplies Administration 13,900 13,900 Total $ 885,669 $ 906,228 10 TRANSPO 2026 BUDGET SUBMISSION DEPARTMENT: Administration & Maintenance ACCOUNT TITLE: Utilities ACCOUNT NUMBER: 505-0x50-00 505-0x2x-00 2024 ACTUAL $ 337,335 2026 BUDGET REQUEST $ 427,000 2025 MONTHLY AVERAGE $ 38,646 2025 APPROVED BUDGET $ 396,000 2025 EST EXPENSE $ 463,753 BUDGET CHANGE $ 31,000 Account Title 2025 2026 Electricity $ 225,000 $ 240,000 Water & Sewage $ 18,000 $ 18,000 Trash Collection $ 6,000 $ 7,000 Telephone $ 47,000 $ 47,000 Natural Gas $ 100,000 $ 115,000 Totals $ 396,000 $ 427,000 11 TRANSPO 2026 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Insurance Summary 2024 ACTUAL $ 546,125 2026 BUDGET REQUEST $ 643,285 2025 MONTHLY AVERAGE $ 56,059 2025 APPROVED BUDGET $ 678,285 2025 EST EXPENSE $ 672,710 BUDGET CHANGE $ (35,000) Insurance - Liability & Physical Damage/Corporate Insurance $ 643,285 Other Corporate Insurance - Total $ 643,285 12 TRANSPO 2026 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Miscellaneous Summary 2024 ACTUAL $ 90,377 2026 BUDGET REQUEST $ 112,300 2025 MONTHLY AVERAGE $ 7,719 2025 APPROVED BUDGET $ 111,300 2025 EST EXPENSE $ 108,300 BUDGET CHANGE $ 1,000 Account Title 2025 2026 Dues & Subscriptions $ 17,300 $ 18,300 Travel & Meetings 12,500 12,500 Community Services 12,000 12,000 Promotion 14,000 14,000 Advertising Placements 45,500 45,500 Interest Expense on Tax Warrants/Loans 10,000 10,000 Total $ 111,300 $ 112,300 13 TRANS PO 2026 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Passenger Fares Summary ACCOUNT NUMBER: 413-0100-00 2024 ACTUAL: $ 1,422,834 2026 BUDGET REQUEST $ 1,494,777 2025 AVERAGE: $ 121,347 2025 APPROVED BUDGET $ 1,406,375 2025 ESTIMATED: $ 1,456,167 BUDGET CHANGE $ 88,402 Account Title 2025 2026 Passenger Revenue $ 652,962 $ 691,789 Access Passenger Revenue 39,892 39,194 Access Punch Card Revenue 73,302 72,632 Passport Revenue 262,851 287,883 Student Pass Revenue 1,680 - Tripper Revenue 227,065 236,114 Two Week Pass 63,042 65,589 One Day Pass 85,581 101,576 Student Summer Pass - - $ 1,406,375 $ 1,494,777 14