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HomeMy WebLinkAbout09-02-2026 2027 Budget Overview - Council Hearing #1 FILED2027 Budget Hearing #1: A, City of South Bend W Administration & Finance Budget Overview FY2027 Budget September 2nd, 2026 Fi\ed in C\erk's Ott\ce SEP O 2 2026 Bianca Tirado City Cterk1 South Bend, IN 9/2/2026 1 <.O N 0 N -N -O') r·"'"''1 •.,., r J. ''Z'.·l\\), N 3 Macroeconomy • Inflation has stabilized mostly, prices remain high • Continued growth, lower interest rates ahead • Competitive wages continue to climb faster than revenue growth City of Sou th Bend .,:.: / Administration &· Finance • 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 tax reform proposals 9/2/2026 ~ /~\ City of Sou th Bend i,,_""": _.; Administration & Finance 4 Financial Overview Proposed 2027 Budget 9/2/2026 ,1 Fund Category General Fund Local Inmme Tax Funds-Public Safety & Economic Development Special Revenue Funds capital & Debt Service Funds I Internal Service Funds Enterprise & Other Funds 5 Cash Reserve Requirements 12/31/2027Projected cash Balance 71,897,819 18,015,011 42,920,600 2s,s3s,339 I 20,373,280 97,856,093 cash Reserve Requirement 54,168,800 10,507,505 9,986,986 11,so1,134 I 5,155,630 31,903,264 Variance 17,729,019 7,507,506 2,475,291 14,036,605 15,217,650 65,952,830 Reserve Requirement Explanation 91>/o of annual operating expenses Local Inmme Tax-Public Safety (No Reserve Requirement) Local Inmme Tax -Economic Development (50% of Annual Expendib.lres) Rainy Day Fund -:J>/oof total City expenses Debt Service Reserves Reserve requirement is for self-insured funds 9/2/2026 ~ 6 ,1-..1i,4c,. ~-""''t i ;, '..it _; $140.0M $120.0M $100.0M $BO.OM $60.0M $40.0M $20.0M $.OM 2016 2017 City of Sou th Bend Administration & Finance 2018 9/2/2026 Total Cash on Hand -General Plus Funds $1294M $1.26 7M $179 7M / 2019 2020 2021 2022 2023 2024 2025 2026 2027 Projected Projected ~ 9/2/2026 2027 Projected Revenues 2023 Actuals 2024 Actua Is 2025 Actuals 2027 Proposed 2026 Budget Budget YOY % Chg Property Taxes 61,739,306 70,811,554 71,288,923 68,831,319 74,848,860 8.0% Local Income Taxes 44,541,348 47,813,768 42,279,600 44,390,313 42,083,242 -5.5% Charges for Services 114,804,134 120,278,577 125,200,541 125,580,221 124,191,132 -1.1% Debt Proceeds 6,949,500 66,468,752 7,424,128 28,987,383 18,668,830 -55.3% Donations 8,194,935 13,468,067 5,320,000 9,039,000 2,749,757 -228.7% Fines, Forfeitures, and Fees 823,566 977,036 853,526 559,850 768,624 27.2% Interest Earnings 8,034,662 12,999,543 14,073,572 7,356,271 5,654,158 -30.1% lntergov./ Grants 9,891,829 7,099,488 6,007,247 5,006,082 5,891,125 15.0% lntergov./ Shared Revenues 28,070,886 31,550,362 29,781,213 31,005,443 28,636,812 -8.3% Licenses & Permits 2,348,304 4,163,304 3,560,667 3,647,422 3,370,266 -8.2% PILOT 6,095,594 6,024,186 5,765,661 5,975,482 6,434,494 7.1% Other Income 6,325,915 6,801,599 11,751,953 3,799,967 3,880,534 2.1% lnterfund Transfers In 82,720,199 73,963,102 80,816,613 89,045,152 105,093,831 15.3% Grand Total 380,540,179 462,419,339 404,123,644 423,223,905 422,271,665 -0.2% §'~~ City of Sou th Bend 1\,-... ./'· Administration & Finance 7 7 8 Total Revenue (City): Total Expenditures (City): Net Surplus/(Deficit): • Deficit Breakdown: • General Plus Funds Deficit: ($6,889,289) $422,271,665 ($433,757,721) ($11,486,056) • Net Deficit across all Other funds: ($4,596,767) s,;:\ City of Sou th Bend t<: / Administration & Finance 9/2/2026 Note: Excludes Redevelopment Commission Q 9 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 lnterfund Transfers Out 2027 Proposed 2023 Actuals 2024 Actuals 2025 Actuals 2026 Budget Budget YOY % Chg 869,934 424,275 599,639 46,836,365 $1,445,389 $82,280,001 $9,543,871 $49,532,949 $41,897,506 $22,632,189 $40,730,787 74,118,042 1,109,306 492,180 888,100 55,798,469 $1,531,717 $88,549,407 $12,509,542 $50,298,212 $41,864,481 $22,280,005 $36,475,964 65,637,710 1,046,021 I 449,310 701,918 59,709,309 $1,621,566 $97,698,800 $14,820,189 $52,287,879 $48,710,823 $26,509,138 $45,146,211 66,990,253 1,170,660 1,164,474 -0.53% 493,413 511,473 3.66% 776,989 763,206 -1.77% 53,316,751 56,396,664 5.78% $1,813,884 $1,826,191 0.68% $131,758,355 $111,137,985 -15.65% $15,005,358 $14,982,593 -0.15% $56,569,979 $55,701,911 -1.53% $46,593,626 $47,617,670 2.20% $20,490,142 $19,450,242 -5.08% $27,659,019 $26,800,401 -3.10% $74,327,107 $97,404,910 31.05% Grand Total 370,910,948 377,435,094 415,691,418 429,975,283 433,757,721 0.88% {~¾~ City ~f _Sou t~ Ben~. ~\.j .. "' Admznistratzon & Fznance 9/2/2026 a 10 • NonBargaining Personnel: 3.0% raise • City Residency Incentive: $2,000 • Sworn Firefighters: TBD raise (per new contract) • Teamsters: 3.0%raise (per current contract) • City Residency Incentive: $2,000 • Sworn Police Officers: TBD raise (per new contract) l~\ City of Sou th Bend i_, ... _; Administration & Finance 9/2/2026 1 () 11 Format of Budget Hearings 2026Budget s,~\ .. City of Sou th Bend i, .. :~. / Ad·ministration & Finance 9/2/2026 1 1 12 Date Time Topic Wednesday, September 2, 2026 Thursday, September 3, 2026 Wednesday, September 9, 2026 Tuesday, September 15, 2026 Wednesday, September 16, 2026 Tuesday, September 22, 2026 5:30 PM 2026 City-Wide Budget Overview 5:30 PM Innovation & Technology 5:30 PM Police & Fire Departments 5:30 PM Department of Community & Investments (DCI) 5:30 PM Public Works 5:30 PM Venue, Parks, and Arts (VPA) Wednesday, September 23, 2026 5:30 PM Legal -Human Rights-Admin & Finance -Transpo Tuesday, September 30, 2026 Tuesday,October6,2026 Monday, October 12, 2026 {~\ City ~f_Sout~ Ben~. • ..... " Ad111uustrat10n & Fmance S:30 PM Mayor's Office -Diversity and Inclusion -Community Police Review Board -City Clerk -Common Council 5:30PM Council Working Session, Budget Wrap-up and Final Questions 7:00 PM Vote on 2027 Budget 9/2/2026 1 ') , 13 • Copy of each PowerPoint Presentation • Budget Summary Sheet • Summary of Spending • High-level summary of proposed personnel changes /~i City of Sou th Bend r-,_~, .1 Administration & Finance 9/2/2026 1~