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HomeMy WebLinkAbout16. 2016 Budget Hearing Second Public Input Meeting (Spanish)Ciudad de South Bend Presentacion de Presupuesto de 2016 Foro de la Comunidad Notre Dame Center for Arts & Culture 21 de septiembre de 2015 WAR NO GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award nracrrcn To City of South Bend Indiana r,. n. I;xd i � Ikpinn�ryl January 1, 2015 ' yt Una de s6lo dos ciudades en el estado de Indiana que actualmente han recibido este premio! Para revisar libro de presupuesto de 2015: http: / /docs.southbendin. gov/weblink8/0/doc/573 06 /Electronic.aspx 9/21/2015 1 Comparacion de Calificacion de Bonos Gobierno Municipal de Indiana Standard & Poor's Calificacion de Bonos Julio 2014 tzo too Calificacion de S & P de la ciudad de so South Bend es AA. 60 ao Calificacion de S & P del estado de Indiana es AAA. 20 0 � - AAA AA- AA AA- A- A A- BBB+ BBB BBB - POr 4UE 251rllOOrtafl[e? Los bonos o calificacion de credito es una medida de la reputacion financiera de la ciudad. Una buena calificacidn de credito permite a la ciudad a pedir prestado dinero para proyectos de construccion y otro tipo de necesidad a los precios mas competitivos disponibl es. Esto ahorra miles de contribuyentes dolares en pagos de intereses. i yil eq f Contexto pars el presupuesto de la ciudad de 2016 • Crecimiento y Fuerza — la economia y poblacion de South Bend esta creciendo y la energia civica es alta, mientras que las reservas financieras permanecen sanas • Limitaciones Fiscales — a pesar de crecimiento economico, los ingresos de impuestos sobre la propiedad son planos mientras que estan aumentando los costos de personal • Iniciativas Principales en camino — iniciativas principales como Intervencion de Violencia del Grupo (GVI), Propiedades Vacantes y Abandonadas (V &A), y Smart Streets siguen con el financiar -I lento de 2013 -2015 9/21/2015 2 i Vision Principios del Presupuesto de 2016 Continuando nuestra reaparicion • Inclusion — asegurar que todos comparten en el progreso de empleos, seguridad y calidad de vida • Innovaci6n — utilizar actualizaciones de practicas y tecnologias para ofrecer mejores servicios mas rentablemente • Sostenibilidad — administrar los costos y las inversiones para mantener estabilidad fiscal a largo plazo 2016 Presupuesto - Prioridades del Consejo ❑ Desarrollo Econ6mico y Capacitaci6n Laboral ❑ Seguridad Publica, Patrullas Vecinales y el programa de Shot Spotter ❑ Inversion en Parques ❑ Infraestructura del Vecindario (Bordillos, Aceras, el programa de Iluminar South Bend) ❑ Corredores de la ciudad (Western Avenue y Lincoln Way) ❑ Relleno de lotes vacantes y viviendas abandonadas ❑ El Departamento de la aplicaci6n del c6digo (desecho ilegal, grafiti y programas de zacate) ❑ Diversidad en la fuerza laboral de la ciudad en todos los niveles 9/21/2015 3 �.N ea of 1l z Ilk Aspectos del Presupuesto 2016 ➢ Desarrollo econ6mico, trabajos y desarrollo laboral •_ • $14 million para apoyar la inversion y el crecimiento continuo de trabajo y adicional $9.6 million para infraestructura para apoyar crecimiento • $70,000 para SMART programa de entrenamiento de la fuerza laboral con Work One e Ivy Tech • $95,000 Para la contrataci6n, la retenci6n y la capacitacion • $32,000 para Bridges Out of Poverty sistema de recursos empleados (2015 d6lares) • Project Lead the Way (2a de 3 aho introducci6n a todas las escuelas publicas de la Ciudad) • Nuevo programa de capacitacion del bombero del credito dual con SBCSC e Ivy Tech ➢ Investing in neighborhoods • $1,027,791 en gesti6n de la propiedad (segar, arboles y adquisici6n de parcelas vacantes) • $1,088,750 de Vacante a Valor (becas, bibliotecas de herramienta y asistencia legal) • $1,500,000 de plan del area del sudeste mejoras de Streetscape • $900,000 en cementerio /oeste area de Washington mejoras de Streetscape • $200,000 en el programa de Iluminar South Bend • $750,000 an Bordillos y Aceras • $228,000 (neto de $192,000 donaci6n de contrapartida delestado) en Rutas Seguras a la escuela c Aspectos del Presupuesto 2016 (cont.) ➢ Public safety • $76,365,255 para la policia y los bomberos, 25% de presupuesto general de la ciudad • $165,000 para Shot Spotter • Nuevo Senior de Recursos Humanos Generalista para concentrarse en los problemas y necesidades de recursos humanos de seguridad publica • Nuevo vehiculo de Respuesta de Materiales peligrosos para sustituir un cami6n envejecido mas de 25 anos ➢ Parques & reconstrucci6n Para calidad de vida • $188,000 en Made Men Youth Mentoring Program • Mejoras principales planeadas para Howard Park Ice Rink and Charles Black Center usando 2015 EDIT Park Bond Funds. ➢ Compensaci6n apropiada • Aumento del salario minimo para todos los empleados de la ciudad a $10.10 a traves de tres anos • Utilizando eficiencia gana para permitir un aumento de 2% a tapas de salario para todos los grupos de empleados sin negociaci6n • Acomodaci6n a un aumento de 20% a seguro medico cargado a todos los departamentos • Consolidar posiciones temporales a tiempo parcial para crear 5 tiempo completo s6lida recolectores de basura L. 9/21/2015 N Aspectos del Presupuesto 2016 (cont.) ➢ Diversidad, inclusion y oportunidad • Nuevo Oficial de Inclusion de Diversidad Para conducir iniciativas estrategicas de la Administraci6n y realice deberes de ex- oficial de cumplimiento de Diversidad • Municipal IDs disponible a cada residente de la Ciudad de South Bend ➢ Camino fiscal sostenible • Presupuesto Equilibrado Para Fondo General • Ingresos presupuestados = Gastos presupuestados • Mantener otros fondos en pista Para el equilibrio de largo plazo ➢ Mejores y mas eficientes servicios a traves de la innovaci6n • $3.2 millones Para la Oficina de Innovaci6n y Tecnologia de la informaci6n • Financiaci6n innovadora Para apalancar minimo d6lares de contribuyentes Para abrir $5 millones de renovaciones de eficiencia energetica en el Century Center „fit �H i Flat Projected Property Tax Revenues Due to State Circuit Breakers. 60,000 55.000 50.000 45.000 40.000 35,000 30,000 Ne[Levy (in thousands) 2009 2016 2017 2018 2019 2020 Actual 2030 AC[ua12011 Actual 2012 Actual 2013 Actual 2034 Actual 2015 Actual Estimated Estimated Estimated Estimated Estimated $55,869 $50,333 $48,076 $46,791 $44,831 $45,274 $44,897 $46,156 $46,753 $47 9/21/2015 5 ,644 $48,548 $45,469 9/21/2015 5 General Fund, PS LOIT, COIT & CEDIT Local Option Income Tax (LOIT) 2016 Proposed Expenditures By Department:_ 'W+ Mayor, Clerk and Council Admin, Finance, Legal & 2% General Operations Revenue Trends 1% Information Technology & Office of Innovation 2010-2016 Public Safety $25 65% 2016 $20 Preliminary Budget Mayor, Clerk and Council w $15 Admin, Finance, Legal & General Operations 6,691,006 Engineering 1,120,334 _o 3,196,056 Public Safety 54,151,958 • PS LOIT f Econcomic Development & Neighborhoods 12,888,442 • COIT $10 • CEDIT $5 Definitions $0 CEDIT = County 2010 2011 2012 2013 2014 2015 Est. 2016 Est. Economic Year CEDIT COIT PS LOIT Total Development Income 2010 9,090,415 7,648,824 6,078,454 22,817,693 TeX 2011 2012 7,300,866 7,097,462 5,293,619 9,068,785 8,610,742 6,605,601 19,691,947 24,285,128 COIT = County 2013 8,177,352 7,846,939 5,892,386 21,916,677 Option Income Tax 2014 8,796,821 8,645,811 6,380,029 23,822,661 PS LOIT = Public 2015 Est. 9,181,206 8,859,912 6,466,190 24,507,308 Safety Local Option 2016 Est. 9,364,830 9,037,110 6,595,514 24,997,454 Income Tax General Fund, PS LOIT, COIT & CEDIT �"' " "F�a 2016 Proposed Expenditures By Department:_ 'W+ Mayor, Clerk and Council Admin, Finance, Legal & 2% General Operations 8% Engineering 1% Information Technology & Office of Innovation Debt Service 4% 4% Public Safety 65% 2016 Preliminary Budget Mayor, Clerk and Council $ 1,704,890 Admin, Finance, Legal & General Operations 6,691,006 Engineering 1,120,334 Information Technology & Office of Innovation 3,196,056 Public Safety 54,151,958 Debt Service 3,281,837 Econcomic Development & Neighborhoods 12,888,442 $83,034,523 9/21/2015 C1 2016 Budgeted Expenditures Across All Funds General & Administrative, 6% Internal Service Funds, Mbi 10% Neighborhoods, 13% Public Safety, 25% Utilities, 28% Economic Development, 18 General &Administrative Public Safety Economic Development Utilities Neighborhoods Internal Service Funds Other Costs Total Expenditures 2016 2016 Proposed Percent of Budget Total $17,496,953 6% 76,365,255 25% 56,161,558 18% 85,705,062 28% 39,892,953 13% 29,314,878 10% 20,000 0% $304,956,659 100% 9/21/2015 7 2016 Proposed Expenditures Across All Funds r>v =� City of South Bend - Expenditures E . . 1 ■ Internal Service Funds _`o ■ Neighborhoods ■ Utilities ■ Economic Development ■ Public Safety ■ General &Administrative Note: Overall City Budget for Proposed 2016 is $304,956,659 9/21/2015 7 . . 1 9/21/2015 7 yV R � 2016 Budgeted Full -Time Headcount Summary General Government and Other, 101 Code Enforcement /Animal Control, 28 Dept. of Community Investment, 25 9/21/2015 i Budgeted Full -Time Positions � N 1.200 1,150 1,100 1,050 1,000 160 1,161 950 1,096 1,100 900 850 800 2012 Budget 2013 Budget 2014 Budget 2015 Budget 2016 Proposed Budget yV R � 2016 Budgeted Full -Time Headcount Summary General Government and Other, 101 Code Enforcement /Animal Control, 28 Dept. of Community Investment, 25 9/21/2015 i Community Investment 2015 Accomplishments Unemployment & Population 120,000 — 14.0 100,000 _ 12.0 10.0 80,000 — 8.0 60,000 6.0 40,000 — 4.0 20,000 — 2.0 0 0.0 2011 2012 2013 2014 2015 iiiiiiiiiiiiiTotal Population Labor Force Population IIIIIIIIIIIIIlUnemployed Population-* Unemployment Rate Private Investment $250,000,000 $200,000,000 2"," $150,000,000 $100,000,000 $50,000,000 $- 2012 2013 2014 2015'thru July ■ Combined ■ County ■ City --- • 1 1 1 O Blacklhom Golf Course 1 I 014-2015 © Chase Plestics © Colfax Are. Streelxepe 0 College Football Hell of Fame Refuse Calforete Wings Downtown 2 Way Street Conversion O Emporium Infrastructure f East Bank C50 phase 5 & Trenspo Inhastructure J J ( \ Ij ! �` Q Fed Ex i, Fellows SL Improvement Protect Heraeus RUlfer Hill St. Infrastrmcture Hill & Cofax Mixed Use n Hoffman Hotel I 0 Hubbell Raw Ignition perk Infresbucture Phase 2 f C-) J IJ (sue �j` _ J I QD Igndion Perk MultfTenanl Building I I I} / J t. i () R ' LaSalle Hotel Rehab J ®lmcanwrry Weft Ramping S UppeH Components Ma)[erBulll Meuo. & sledlson 2 Way NSTI Expansion Nell. Corporation Noble America Nouns Renaissance Dntrip Schafer Geai ��ae ytstaw,arsefnrrei. _ ��' South Bond Chemical r oaacssrm owevrw _ _f _ — I` j �. Spec Building- Ameriplex rsresewn�row.rncr I _ ,� Success Academy -j _ South East Mester plan _� mwsss.wsarwev�w. IDmmolHe Gry Cemeter plan } I J I I Yummy Cupcakes lT7 Westem A.P. Streetscape 9/21/2015 ri Ciudad de South Bend 2016 Propuesta Presupuesto _ Concluyendo Pensamientos • Presupuesto general de la ciudad de $306.7 million — Reduce los gastos generales de 2015 debido a los menores gastos de capital — Los gastos superiores a los ingresos generalmente debido a tiempo permitido de usar ganancias de bonos para inversiones en infraestructura • General Fund budget of $53.8 million is balanced (slight surplus) • Reliance on COIT and CEDIT to sustain key expenditures, while moving toward long -term balance • City budaet maintains our citv's comeback throuah: continued investment in our neighborhoods, city center, and people use of technology and efficiency to drive results maintaining resources needed to keep high levels of service measuring our performance for continuous improvement Keeping in Touch and On Track During the Year: Reports Available on the Web http: / /docs. southbendin .gov /webIink8 /Browse.aspx ?startid= 1214 &dbid =0 • Annual Reports Budget Documents - available throughout the budget process, typically beginning in mid - August — Annual Comprehensive Annual Financial Reports (CAFR) - available by July 31 st of the following year Fiscal Dashboard - will be available around March of the following year • Monthly Reports — Controller's Monthly Cash Report - available by the 10th of the following month — Departmental Financial Report - available by the 20th of the month — Financial Report - available by the 20th of the month — Cash Reserves Report - available by the 15th of the month 9/21/2015 10 A p- 9/21/2015 11 Glossary Activity BUjget(s): Cost centers or specific and commonly recognized service functions within a fund or department to which specific expenses are to be allocated. Ad Valorem: Imposed at a rate percent of the value as stated IN DETERMINING PROPERTY TAXES. Appropriation: An expenditure authorization made by the COMMON Council, which permits charges against specified funding sources. Appropriations are usually made for fixed amounts and are typically approved for the entire fiscal year unless otherwise amended by the City Council. Approved/ Adopted Budge: The City's budget & expenditure authority as adopted by the COMMON Council in a vote conducted after a City Charter - required public hearing to collect public input on the Proposed Budget. Assessed Valuation: The estimated value placed upon real and personal property by the COUNTY Assessor. Assets: Property owned by the City, which has monetary value. Audit: A systematic examination of resource utilization concluding in a written report. It is a rest of management's internal controls and is intended to: • Ascertain whether financial statements fairly present financial positions and results of operations; • Test whether transactions have been legally performed; • Identify areas for possible improvements in accounting practices and procedures; • Ascertain whether transactions have been recorded accurately and consistently; • Ascertain the stewardship of officials responsible for governmental resources. • Certain audited funds related to trustee accounts, bonding and capital leases are not budgeted or included in this document. Balanced Budget: The budgeted revenues (plus available cash reserves) are equal or more than the budgeted expenditures. Base Budget: The budget predicated on maintaining the existing level of service. 12 Bond (Debt Instrument): A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long -term debt to pay for specific capital improvements. Budget Amendment: Adjustments made to the budget or approved expenditure authority during the fiscal year by the Common Council to properly account for unanticipated changes, which occur either in revenues or expenditures or for programs or policy objectives initially approved for the fiscal year. Budget (Operating): A plan of financial operations embodying an estimate of proposed expenditures for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates). The term is also sometimes used to denote the officially approved expenditure ceiling under which the City and its departments operate. Budget Basis: The basis by which a city determines its budget. The budget basis may be cash, accrual, modified accrual or some other basis. The city of South Bend uses the cash basis for budgeting. Budget Calendar: The schedule of key dates or milestones that the City follows in the prepararuon and adoption of the budget. Budgetary Control: The level at which expenditures cannot legally exceed the appropriated amount~. Budgeted Funds: Funds that are planned for certain uses. The budget document that is submitted for Common Council approval is composed of budgeted funds. Budget Message: Initially, a general discussion of the proposed budget document presented in writing as a supplement to the budget document. The budget message explains principle budget issues against the background of financial experience in recent years and presents recommendations. Capital Expenditures: The expenditures for the acquisition of capital assets; whether major assets with long -term useful life spans or shorter -term operational capital needs such as office equipment, small tools & machinery. The expenditures are financed by either capital debt or cash - pay-as- you -go. Generally, equipment with a cost of $10,000 or more and a useful life of at least one year is considered a capital expenditure. 13 Cash Management: The management of cash necessary to pay for government services while investing temporarily idle cash in order to earn interest. Cash management refers to the activities of forecasting the inflows and outflows of cash, mobilizing cash to improve its availability for investment, establishing and maintaining banking relationships, and investing funds safely in order to achieve the highest interest on temporary cash balances. CIP: Abbreviation for Capital Improvement Program. COIT: Abbreviation for County Option Income Tax. COIT is based on wages paid in the county. ContingencX: An estimated amount of funds needed for deficiency or emergency purposes. An annual appropriation to cover short falls in revenue and /or underestimation of expenditures. Contractual Services: Items of expenditure from services that the City receives from an outside company. HVAC, maintenance, custodial services, Building, Mechanical, and Plumbing Inspectors are examples of contractual services. CPI: Abbreviation for Consumer Price Index. Dcbt Service: the City's obligation to pay the principal and interest of all bonds and other debt instruments according to a pre- determined payment schedule. Department: A major activity of the City, which indicates overall management responsibility for an operation of a group of related operations within a functional area. Depreciation: That portion of the cost of a capital asset, used during the year to provide service. DLGF: Abbreviation for the Indiana Department of Local Government Finance. The DLGF is a state agency that approves the budgets and property tax rates. EDIT: Abbreviation for Economic Development Income Tax. EDIT is based on wages paid in the county. Enterprise Fund: A governmental accounting fund in which the services provided are financed and operated similarly to those of a private business. The rate schedules for these services are established to ensure that revenues are adequate to meet all necessary expenses. Enterprise funds are established for services such as water and sewer utilities. Estimated Revenue: ThC amount of projected revenue to be collected during the fiscal year. 14 Fund: An independent fiscal and accounting entity with a self - balancing set of accounts for the purpose of carrying on specific activities or attaining certain objectives. Expenditure: The cost of Governmental Fund goods delivered and services rendered, whether paid or unpaid. Fund Balance: For financial reporting, fund balance is the difference between assets and liabilities in a governmental fund. Fund balance is required to be reported in two components — reserved and unreserved. When fund balance is reserved, it either means that the resources are in a form that cannot be appropriated and spent or that the resources are legally limited to being used for a particular purpose. For instance, grant monies from the federal government that may be used only for a road project would be reported as reserved fund balance in a street fund. Likewise, the City's cemetery trust funds in the General Fund are nonexpendable resources that can be invested but not spent —as reserved fund balance. The portion of fund balance that is not reserved is fittingly called unreserved fund balance. For budgeting, fund balance is equal to cash balance as the city utilizes the cash basis of budgeting. GAAP: Abbreviation for Generally Accepted Accounting Principles. GASB: The Governmental Accounting Standards Board, which provides direction in accounting and reporting requirements for units of government. General Fund: The largest fund within the City, the General Fund accounts for most of the financial resources of the government that may be used for any lawful purpose. General Fund revenues include property taxes, licenses and permits, service charges, and other types of revenue. This fund usually includes most of the basic operating services, such as police protection, finance, public services and general administration. General Obligation Bonds: When the City pledges its full faith and credit to the repayment of the bonds it issues, those bonds are General Obligation (G.0) bonds. GFOA: Abbreviation for Government Finance Officers Association. Investment: Securities purchased and held for the production of income in the form of interest. KPI: Abbreviation for Key Performance Indicator. Also known as performance measure. Liabilities: Debt or other legal obligations arising out of transactions in the past, which must be liquidated, renewed or refunded at some future date. The term does not include encumbrances. 15 Long Term Debt: Debt with a maturity of more than one year. Maturities: The date on which the principal or stated values of investments or debt obligation mature and may be reclaimed. Net Debt: All City Debt net of special assessment, transportation fund and revenue bond debt. Per Capita basis: Per unit of population. Revenue: An addition to the assets of a fund, which does not increase a liability, does not represent the recovery of an expenditure, does not represent the cancellation of a liability without a corresponding increase in any other liability or a decrease in assets, and does not represent a contribution of fund capital in an enterprise. SBOA: Abbreviation for the Indiana State Board of Accounts. The SBOA is a state agency that performs the function of private accounting firms in other states. Surplus Funds: Liquid or Non - Liquid Funds not immediately needed to pay demands against vendors and other claimants as determined by management. Structurally Balanced Budget: A budget that is sustainable for multiple years into the future. Tax Base: The total value of taxable property in the City. TIF: Abbreviation for Tax Increment Financing. A fund that captures the increase in net assessed value on properties in an area to provide property tax revenue for economic development projects. Transfers- IN /OUT: A legally authorized funding transfer between funds in which one fund is responsible for the initial receipt and the other fund is responsible for the actual disbursement. Trust and Agency Fund: Trust and Agency funds are used to account for assets held by the city in a trustee capacity or as an agent for individuals, organizations, other governments, or other funds. Utilities Fund: This enterprise fund is used to account for the provision of water, SEWER and SOLID WASTE services to the customer financed primarily by user charges. Working Capital: Working Capital is generally defined as current assets less current liabilities; however, this is to some extent, an abstract concept. If all of the current assets were converted to cash at their book value and all the current liabilities paid, then working capital would be the amount of cash remaining. For the City's Utilities Fund, current assets are comprised of cash and cash 16 equivalents, receivables and inventory; and current liabilities are comprised of accounts payables, accrued liabilities and the current portion of next fiscal year's long -term debt. 17