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Home My WebLink AboutZ2. 2014 Budget Presentation to Council and Hearing Meeting 09-23-13i� TYJ Rd ISN: MACE �1 2r. City of South Bend 2014 Budget Presentation and Public Hearing September 24, 2013 o�soUT118., 0 u - o PEACE 1865 We're coming back... Changing the way South Bend does business 1t"OVATi IgnitionPark O &SDUTR,& 0 MACX �d What South Bend must be Our goal is to ensure South Bend is a strong and open city for everyone, where: • The basics are easy for residents • Government services are first -rate • Everyone can thrive O� SpUTH *,, O 9F ACE` �.Ci � ar 1865 Our strategy to get there Strategy — Key guide posts to frame long and short -term planning efforts: 1. Measure how well we deliver and make decisions based on good information 2. Streamline city processes for citizens /customers 3. Break down bureaucratic walls to deal with complex issues 4. Welcome innovation and question habit 5. Form connections and partnerships for economic growth, education, public safety and quality of life 6. Attract, row, retain, and engage excellent employees in an excellent work environment o�soUT118., u PEACE 1865 2014 Administration Priorities 1. Economic Development /Jobs 2. Smart Streets 3. Vacant &Abandoned Housing 4. Information Technology Strategy 5. Customer Service (311) /Performance Management 6. Anti Violence Initiative 7. Workforce Development 8. Corridors 9. Parks & Recreation 10. Code Enforcement p� SpUTH B�C� 0 9F ACE` �.Ci � ar 1865 2014 Council Priorities °�S °uTHB�� u o PEACE 1. Economic Development 1865 2. Public Safety 3. Parks & Recreation 4. Infrastructure (Curbs, Sidewalks & Streets) 5. City Corridors 6. Vacant &Abandoned Housing 7. Code Enforcement 8. Quality of Life City of South Bend 2014 Proposed Budget City Budget Process /Components • Proposed annual City budget presented by Mayor to Common Council • City budget is divided into six (6) categories of activity (over 90 Funds): • General Fund • Special Revenue Funds • Debt Service & Capital Funds • Enterprise Funds • Internal Service Funds • Trust & Agency Funds • Common Council holds budget hearings to review budget submission • Common Council approval required for e Civil Fund O� SOUTH B�C� O 9F ACE` �.Ci � ar 1865 City of South Bend S °�TB* 2014 Proposed Budget Budget Summary 1865 Key Assumptions: Fund Administration & Council priorities Balance budget for General Fund Invest in City infrastructure /quality of life (Smarter Streets, Parks, Downtown) Continue to leverage and invest in technology for improved delivery of City services Fully fund Public Safety (Police and Fire) personnel Focus on efficiency with no increase in City full -time personnel levels and provide a 2% pay increase civil city employees, other pay adjustments based on salary benchmarking and negotiated increases for City bargaining groups Investment Ready Places • Proposed 2014 Investments • $32.Om for investment ready places and people • $11.4m for Smart Streets • KPIs • 210 jobs created in 2013 • $623,000 public investment leveraged $23.4m in private investment so far in 2013 • We must create the kind of places where people want to live and business want to invest. o�soUT118., 0 u PEACE 1865 Vacant and Abandoned Housing • Proposed 2014 Investments • $2m for repair and demolitions • $300,000 for deconstruction (12 jobs) • 2013 KPIs • 45 houses repaired • 19 houses demolished o�soUT118., 0 u PEACE 1865 • Increasing the value and improving the quality of life in our neighborhoods is critical. Information Technology • Proposed 2014 Investments • $5.0m in employee, services, and capital is KPIs is 9,483 service calls to IT (target of 6,000) is Future measure: Our IT Technology IQ is Strategy provides clarity to our services, our partnerships, our integration with other government entities and our community engagement. o�soUT118., 0 u PEACE 1865 Customer Service/ °,S °UTHB° � L. 9FACE Performance Management a{ 1865 • Proposed 2014 Investments • $480,000 of internal funds for 311 expansion • 7 employees for 311 (currently 4.5) • KPIs • -60% of calls answered within 30 seconds (target is 65 %; best practice 80 %) • 69,149 calls taken to date (50,000 goal for 2013) • Residents expect and deserve exceptional customer service. Executive Branch Organizational Structure Citizens of South Bend O� SOUTB BF, 9EACE � ar 1865 • To be effective and efficient, we need an organization and compensation structure that further professional izes city government. Full -Time Positions 01SoUTg6& U C� v 1865 r 1,400 1.200 19164 1,160 1.000 300 10,100 400 - 200 0 2012 Amended Budget 2013 2014 Amended Proposed Budget Budget 01SoUTg6& U C� v 1865 r $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Property Tax Collection Trends June 30, 2013 T 2012 /Pay 2013 2011 /Pay 2012 2010 /Pay 2011 2009 /Pay 2010 2008 /Pay 2009 2007 /Pay 2008 ■ Civil City Funds ■ TIF Funds p� SpUTH B�C� 0 9F ACE` �.Ci � a{ 1865 Type 2012 /Pay 2013 2011 /Pay 2012 2010 /Pay 2011 2009 /Pay 2010 2008 /Pay 2009 2007 /Pay 2008 2006 1Pay 2007 Civil City Funds TIF Funds Total Property Tax Collections 24,741,156.50 48,843,402.52 48,218,717.52 49,710,528.83 52,033,758.46 65,200,047.00 62,038,415.00 13,672,366.71 24,061,128.01 24,743,454.97 27,578,275.26 22,256,715.51 19,286,939.15 15,384,452.31 38,413,523.21 72,904,530.53 72,962,172.49 77,288,804.09 74,290,473.97 84,486,986.15 77,422,867.31 2014 Proposed Budget Assessed Value /Income Projections O� SOUTH 8., d u - o PEACE 'r ar 1865 Notes: Civil City Funds: General Fund (101), Parks & Recreation Fund (201), Cumulative Capital Development (406), and Hall of Fame Debt Service Fund (313). 1 2013 State -wide Growth Quotient - 2.6% 2013 -2014 2009 2010 2011 2012 2013 2014 Percent $ Millions Actual Actual Actual Actual Estimated Budgeted Change Assessed $2,668,887.4 $2,453,505.6 $2,324,451.9 $2,380,874.1 $2,371,087.1 $2,371,087.1 0% Value $(000) -10% -8% -5% 2% -0.4% 0% Tax Rate 2.2460% 2.7951% 3.0268% 3.0748% 3.1707% 3.2053% 1.1% (cert) $ Tax Levy $ $66.0 $68.6 $70.3 $72.0 $74.1 $76.0 2.6% Circuit ($8.0) ($14.7) ($18.1) ($20.0) ($26.3) ($27.2) 3.4% Breaker Net Tax $ $58.0 $53.9 $52.2 $52.0 $47.8 $48.8 2.1% Collection 89.7% 92.3% 92.3% 93.8% 95.0% 95.0% 0.0% Rate Collected $ $52.0 $49.7 $48.2 $48.8 $45.4 $46.4 2.2% Notes: Civil City Funds: General Fund (101), Parks & Recreation Fund (201), Cumulative Capital Development (406), and Hall of Fame Debt Service Fund (313). 1 2013 State -wide Growth Quotient - 2.6% Revenue & Expenditure °�S °UTHBt�o. _ 4 9F ACE` .Ci Summary 2008 to 2014 (ii65 Fund Fund Name 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Amended Budget 2014 Proposed Budget 2013 -2014 Percent Change Revenues 35,253,141 56,823,840 53,543,871 52,176,078 66,691,962 63,356,247 -5.0% Total Capital & Debt Service Funds General Fund 33, 930, 404 96, 281, 658 61,449, 946 60, 911, 669 63, 585, 275 63, 932, 287 55,453, 616 -13.3% Total Special Revenue Funds 44, 925, 597 49, 411, 366 60, 382, 796 53, 315, 524 55, 684, 376 65, 423, 003 54, 742, 767 -16.3% Total Capital & Debt Service Funds 6,861,960 9,189, 365 7,972,851 7,592,782 7,757,647 7,489,776 7,162, 033 -4.4% Enterprise Funds 64, 521, 513 72, 074, 502 74, 292, 685 103,169, 961 113, 687,196 98, 788, 596 102, 304, 531 3.6% Internal Service Funds 20, 512, 587 18, 200, 236 15, 865, 625 17, 999, 349 21,154,131 23, 615, 529 24, 524, 572 3.8% Trust Funds 7,821,320 14,193,476 11,011,500 12,021,517 13,207,579 10,914,226 11,701,582 7.2% Total Revenue 178,573,381 259,350,603 230,975,403 255,010,802 275,076,204 270,163,417 255,889,101 -5. Expenditures General Fund 66, 503, 546 61, 327, 868 59, 241,185 61, 438, 862 63, 399, 284 65, 091, 572 55,453, 430 -14.8% Total Special Revenue Funds 41,204,024 35,253,141 56,823,840 53,543,871 52,176,078 66,691,962 63,356,247 -5.0% Total Capital & Debt Service Funds 7,377,491 10,333,632 8,765,807 7,355,824 9,669,642 19,244,268 11,466,274 -40.4% Enterprise Funds 74, 460, 068 75, 348, 774 74,145, 059 86, 579, 570 89,188, 333 128, 225, 778 126, 521, 534 -1.3% Internal Service Funds 15, 461, 269 16, 099, 353 15, 876, 382 16, 864, 543 21, 636, 374 24, 615,132 25, 389, 231 3.1% Trust Funds 11, 593, 997 11, 647, 851 11, 799, 890 12, 323, 516 12, 215, 209 12, 844,161 13,106, 386 2.0% Total Expenditures 216,600,395 210,010,619 226,652,163 238,106,186 248,284,920 316,712,873 295,293,102 -6.8 Net (38, 027, 014) 49, 339, 984 4,323,240 16, 904, 616 26, 791, 284 (46, 549, 456) (39, 404, 001) -15.4 - Transfers In/ Transfers Out $24,660,252 for the 2014 Proposed Budget. - Excludes Redevelopment Funds Five -Year Capital Improvement Plan Summary p� SpUTH B�C� 0 9F ACE` �.Ci � a{ 1865 2014 2015 2016 2017 2018 Sumary by Type Budget Projection Projection Projection Projection Vehicles Computer Equipment Machinery & Equipment Office Equipment Furniture & Fixtures Building & Building Improvements Land & Land Improvements Water & Wastewater Systems Other Tota I - Excludes Redevelopment Funds 4,268,150 710,390 1,553,827 39,400 49,000 3,181, 974 12, 854, 500 37,127, 580 250,000 $ 60, 034, 821 3,709,599 1,451,481 1,134, 406 10,000 4,805,000 4,103, 500 31, 677, 869 275,000 $ 47,166, 855 4,656,005 1,067,000 1,101,950 100,000 3,275,000 1,489,400 25, 217, 500 275,000 $ 37,181, 855 5,281,365 1,000,000 811,265 15,000 3,843,400 1,428,500 24, 952, 350 275,000 $ 37, 606, 880 4,344,800 1,000,000 521,000 1,070,000 1,458,500 24, 695, 000 275,000 $ 33, 364, 300 City of South Bend - UPDATE 2014 Proposed Budget Final Thoughts • Overall City budget of $295.3 million — deficit of $ 39.4 million is primarily timing of spending of bond proceeds for CSO sewer projects and investments in City infrastructure • General Fund budget of $55.5 million is balanced • City budget reflects: — investing in our City infrastructure to create investment ready places — improving our neighborhoods — leveraging technology — responding more effectively to citizen needs /questions — measuring our performance O�"OUTH,&t 9F ACE` �.Ci � ar 1865 • We respectively ask for the Council to approve the budget request o� soUTA 8., 0 t] PEACE` Y a{ 1865 We're coming back... Changing the way South Bend does business �y