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Home My WebLink About25-44 Resolution Calling for Relief from the Devastating Impact of Senate Enrolled Act 1 on the City of South Bend and Other Local Governmental Entities Within the State of Indiana ** City of South Bend * Common Council * i Iall • 2I.) S. \Limit Ludic' kit1ti.Jr. III\(I. Sotiil, lucli:u,a Ififilll October 22, 2025 Cal11101I .CC I'rc�ulc ul Filed in Clerk's Office Rachel"I c,„ia; South Bend Common Council Oct 22, 2025 \'ic•c I'rr,icicut 227 W. Jefferson Blvd I�c,nru I ir,i l rug 1�arucr (. i Irk �uuiIi Il n 1. I Cl,airl,crscm, Cnniuuittcc South Bend, IN 46601 ul We \\'ltolc Re A RESOLUTION OF THE COMMON COUNCIL OF THE CITY Cannot' l.cc OF SOUTH BEND, INDIANA, CALLING FOR RELIEF FROM THE First District DEVASTATING IMPACT OF SENATE ENROLLED ACT 1 ON THE (:<> >c ICI i ll �ltirr CITY OF SOUTH BEND AND OTHER LOCAL GOVERNMENTAL .1c c c,t,(l District ENTITIES WITHIN THE STATE OF INDIANA Sliaru„ I.. Nlclindk. Dear Council Members: Third l)iarirt We are seeing the devastation Senate Enrolled Act 1 is having on local government \\artier units as demonstrated by substantial cuts to the 2026 budget proposed to the Fcmrtl, 1)1.11.1(.1 Common Council. It is projects that such cuts are not just a one-time adjustment but will also be required in the future unless local governmental entities impose Sl,crr� li„Icicn-Sn„I» „ additional local income taxes on their residents. Filth I)i;ui(.t This proposed resolution calls for relief from the devasting impact of Senate Sheila Ntc, cl,k, Enrolled Act 1 though a replacement state revenue stream which does not negatively SimI, l)i't,iet impact South Bend's ability to continue to meet the needs and expectations of its residents now and into the future. 1)1.. c >In cr U:,"' Please schedule this proposed resolution for Committee hearing on October 27, \I l'"'14`. 2025,and place it on the full Council agenda later that night. We are asking that the Itac l,cl I nua� ‘I r,i,i resolution be assigned to the Zoning and Annexation Committee because it does not fit neatly within any other committee, Thank you for your consideration. karcu I.. Wink: �l I.u4c. Sincerely yours, /4„.-4111Pf- Dr. Oliver Davis, At-Large, South Bend Common Council Sherry Bolden-Simpson, Fifth District, South Bend Common Council I,i71) 235-1;t`)1• Fax 15711135-917:1 •'11)1) (37 1) 2:15-3.iG7 • hup: /w w'.soutI1hcudiu.gm Filed in Clerk's Office Oct 22, 2025 BILL NO. 25-44 Bianca Tirado City Clerk, South Bend, EN RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CALLING FOR RELIEF FROM THE DEVASTATING IMPACT OF SENATE ENROLLED ACT 1 ON THE CITY OF SOUTH BEND AND OTHER LOCAL GOVERNMENTAL ENTITIES WITHIN THE STATE OF INDIANA WHEREAS, the Indiana legislature passed legislation in 2025, most notably Senate Enrolled Act 1 (SEA 1), which facially reduces residential property tax bills for homeowners and changes how tax liabilities are calculated; and WHEREAS, homeowners deserve affordable property tax bills as well as adequate public safety and services; and WHEREAS, the legislation does not provide replacement state funding for adequate public safety and city services which will soon be showing devasting negative impacts; and WHEREAS, the legislation will also stifle economic development opportunities in South Bend, negatively impacting continued future growth; and WHEREAS,the economic impact on municipal taxing units has been estimated to exceed $2 Billion; and WHEREAS, the legislation provides an option for additional local income taxes of a maximum of 1.2% for municipal services, plus a maximum of 1.2% for county services, plus an additional income tax up to 0.05% for a possible local income tax rate of 2.9%; and WHEREAS,the ability to adopt a local income tax option provided in the legislation could be a helpful tool for municipal units who are given such authority, it is not adequate to replace the magnitude of the funding being eliminated,thereby making the local income tax option a necessity, rather than a true option; and WHEREAS the local income tax option amounts to a mandated local income tax increase on both homeowners and those who do not own their own homes; and WHEREAS, the negative impact of the legislation is currently being seen through the slashed budget proposals submitted for Common Council approval; and WHEREAS, the legislation will likely impact public safety through the effects on contracts recently negotiated between the City and South Bend police officers and firefighters;and WHEREAS,replacement state funding is needed to maintain the level of public safety and services that residents of South Bend expect and deserve. NOW,THEREFORE,BE IT RESOLVED,by the Common Council of the City of South Bend, Indiana, as follows: SECTION I.The Common Council of the City of South Bend,Indiana calls for relief from the devastating impact of Senate Enrolled Act 1 on South Bend and other local governmental entities throughout the state. SECTION II. More specifically, the Common Council calls for a replacement revenue stream implemented by the State of Indiana which does not negatively impact South Bend's ability to continue to meet the needs and expectations of its residents now and into the future. SECTION III.This resolution shall become effective upon the date of passage. Dated this 27th day of October 2025. 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