Loading...
HomeMy WebLinkAbout29. 2016 Budget Hearing Third Public Input MeetingCity of South Bend 2016 Budget Presentation -&. Q:9-"qv;ia � - - --MMESEW Community Forum Charles Black Center October 1, 2015 p� SpUTH B�C� O City Budget P rocess/Com pone 9 � a{ x. 1865 • Proposed annual City budget presented by Mayor to Common Council on August 17, 2015 • City budget is divided into seven (7) categories of activity (103 funds): • General Fund (1 fund; 13 active departments) • Special Revenue Funds (34 funds) • Debt Service & Capital Funds (12 funds) • Enterprise Funds (27 funds) • Internal Service Funds (7 funds) • Trust & Agency Funds (5 funds) • Redevelopment Funds (approved by the Redevelopment Commission) (17 funds) • Common Council holds budget hearings to review budget submissions • Common Council approval required for each Civil City Fund • State DLGF approval required for certain "controlled funds" (i.e. General Fund) 2016 Key Budget Dates • May 28 — Budget Kick Off Meeting at Century Center • July 13 through 21 — Mayor's review of Departmental Budgets • August 17 — Budget Overview Presentation to Council • August 17 through October 12 — Personnel & Finance Committee Public Budget Meetings • September 1 — Submission of Budget to County for Non - Binding Review • September 14 — Deadline to Advertise Budget in Gateway System • September 28 — Public Hearing on Budget • October 12 — Budget Adoption Public Meeting • October 26 — Backup Date for Budget Adoption Public Meeting • November 2 — Deadline to Adopt 2016 Budget • February 15 — Deadline for the DLGF to Certify 2016 Budget O� SpUTH 8��-0 �L 1865 o�soUT118., 0 u - o PEACE 1865 One of only two cities in the State of Indiana to currently receive such an award! Review 2015 Budget Book at: http: / /docs.southbendin. gov/weblink8/0/doc/573 06 /Electronic.aspx 140 0 Bond Rating Comparison Indiana Local Government Standard & Poor's Bond Ratings July 2014 South Bend's S &P rating is AA State of Indiana's S &P rating is AAA W AAA AA- Whv is this imaortant? A+ 0 BBB+ 01SOUTBB& d u 9EACE � ar 1865 0 BBB BBB- The bond or credit rating is a measure of the City's financial reputation. A good credit rating enables the City to borrow money for construction projects and other needs at the most competitive rates available. This saves thousands of taxpayer dollars in interest payments. O SpUT11 *,, ,y O Context for the 2016 City Budget 1865 • Growth and strength — South Bend's economy and population are growing & civic energy is high, while financial reserves remain healthy • Fiscal limitations — despite economic growth, property tax revenues are flat while personnel costs are rising • Major initiatives on track —major initiatives like Group Violence Intervention (GVI), Vacant and Abandoned (V &A) Properties, and Smart Streets are proceeding with funding from 2013 -2015 FS°IJTII* 0 0 Vision Principles for 2016 Budget � ar 1865 Continuing our Comeback • Inclusion — ensure everyone shares in progress on jobs, safety, and quality of life • Innovation — use updated practices and technologies to deliver better services more cost - effectively • Sustainability — manage costs and investments to sustain long -term fiscal stability O� SpUTH *,, 2016 O Budget Kickoff Council Priorities 9 � { a 1865 ❑ Economic Development & Job Training ❑ Public Safety, Neighborhood Patrols & Shot Spotter Program ❑ Investment in Parks ❑ Neighborhood Infrastructure (Curbs, Sidewalks, Light Up South Bend Program) ❑ City Corridors (Western Avenue & Lincoln Way) ❑ In -Fill of Lots for Vacant & Abandoned Housing ❑ Code Enforcement (Illegal Dumping, Graffiti & Grass Program) ❑ Diversity in City Workforce at All Levels e t Highlights °�S °UTHB� " 2 016 Bud g 9F ACE` �.Ci � ar 1865 ➢ Economic development, jobs and workforce development • $14 million to support continued job growth and investment and additional $9.6 million for infrastructure to support growth • $70,000 for SMART workforce training program with Work One and Ivy Tech • $95,000 for Recruitment, Retention and Skills Training • $32,000 for Bridges Out of Poverty Employee Resource Network (2015 dollars) • Project Lead the Way (2nd of 3 year roll -out to all Public Schools in the City) • New dual- credit firefighter training program with the SBCSC and Ivy Tech ➢ Investing in neighborhoods • $1,027,791 in Property Management (mowing, trees, acquisition of vacant parcels) • $1,088,750 on Vacant to Value (grants, tool libraries, legal assistance) • $1,500,000 of Southeast Area Plan Streetscape Improvements • $900,000 on Cemetery /West Washington Area Streetscape Improvements • $200,000 on Light Up South Bend • $750,000 on Curbs and Sidewalks • $228,000 (net of $192,000 matching grant from State) on Safe Routes to School 2016 Budget Highlights (cont.) ➢ Public safety • $76,365,255 for Police and Fire, 25% of overall City budget • $165,000 for Shot Spotter • New Senior Human Resources Generalist to focus on Public Safety Human Resource needs and issues • New Hazardous Materials Response vehicle to replace aging truck over 25 years ➢ Parks & recreation for quality of life • $188,000 on Made Men Youth Mentoring Program • Major upgrades planned for Howard Park Ice Rink and Charles Black Center using 2015 EDIT Park Bond Funds. ➢ Appropriate compensation • Raising minimum wage for all full -time city employees to $10.10 over three years • Using efficiency gains to enable a 2% increase to salary caps for all non - bargaining employee groups • Accommodating a 20% increase in health insurance charged to all departments • Consolidating temporary, part -time positions to create 5 full -time solid waste pickers O� SOUTH B�C� 0 9F ACE` �.Ci � ar 1865 2016 Budget Highlights (cont.) ➢ Diversity, inclusion, and opportunity • New Diversity Inclusion Officer to drive strategic initiatives across the Administration and perform duties of former Diversity Compliance Officer • Municipal IDs available to every City of South Bend resident ➢ Sustainable fiscal path • Balanced budget for General Fund • Budgeted Revenues = Budgeted Expenditures • Keeping other funds on track for long term balance ➢ Better, more efficient services through innovation • $3.2 million for Office of Innovation and Information Technology • Innovative financing to leverage minimal taxpayer dollars to unlock $5M of energy efficiency renovations at Century Center O� SOUTH B�C� 0 9F ACE` �.Ci � ar 1865 °�s °uTH,Flat Projected Property Tax Revenues d � PEACE Due to State Circuit Breakers 1865 •a` 60,000 55,000 50,000 c 45,000 0 t H 40,000 35,000 30,000 ■ 2009 2016 2017 2018 2019 2020 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual Estimated Estimated Estimated Estimated Estimated Net Levy in thousands) $55,869 $50,333 $48,076 $46,791 $44,831 $45,274 $44,897 $46,156 $46,753 $47,644 $48,548 $45,469 Residential Commercial Personal Industrial Agricultural Exempt Utility Who Pays Property Taxes In Saint Joseph County? 5146 SMOM.1 OD 544.466.166 566.666.164 58x. 466.146 5164.466.146 Pay Year M 2014 2013 p� SpUTH B�C� 0 9F ACE` �.Ci � a{ 1865 O� SoUTII *,, O Who Pays Property Taxes 9a= In Saint Count ? Jose h (Cont.) 1865 p y Source 2014 %Total 2013 %Total Residential $112,946,802 43.5 %$113,662,077 42.8% Commercial $70,963,543 27.3% $74,175,207 28.0% Personal $41,439,358 16.0% $40,356,484 15.2% Industrial $22,599,297 8.7% $24,458,078 9.2% Agricultural $101434,019 4.0% $10,0517573 3.8% Exempt $9897693 0.4% $2,4811122 0.9% Utility $1487116 0.1% $1501991 0.1% Source: Indiana Gateway Public Access Portal. https: / /gateway.if.online.org Who Receives Property Taxes In Saint Joseph County? $120,000,000- $100,000,000- $80,000,000 - $60,000,000 - $40,000,000 - $20.000.000 - $0- City/Town 28.4% School 26.1% TIF Districts 19.5% County 14.5% Library 5.4% Township 4.11% Special 2.0% o�soUT118., d u PEACE 1865 k Who Receives Property Taxes SOUTH B,, " In Saint Joseph County? (Cont.) 1865 Source 2014 % Total Cities /Towns $104,103,828 28.4% School $9557955539 26.1% TI F $71,453,892 19.5% County $53,035,210 14.5% Library $19,751,724 5.4% Township $14,951,460 4.1% Special Districts $7,339,594 2.0% Source: Indiana Gateway Public Access Portal. https: / /gateway.if.online.org $25 $20 y $15 c 0 2 $10 $5 $0 Local Option Income Tax (LOIT) Revenue Trends 2010-2016 2010 2011 2012 2013 2014 2015 Est. Year CEDIT COIT PS LOIT Total 2010 9,090,415 7,648,824 6,078,454 22,817,693 2011 7,300,866 7,097,462 5,293,619 19,691,947 2012 9,068,785 8,610,742 6,605,601 24,285,128 2013 8,177,352 7,846,939 5,892,386 21,916,677 2014 8,796,821 8,645,811 6,380,029 23,822,661 2015 Est. 9,181,206 8,859,912 6,466,190 24,507,308 2016 Est. 9,364,830 9,037,110 6,595,514 24,997,454 2016 Est. O� SOUTH 8,4 d u - o PEACE 1865 PS LOIT ■ COIT ■ CEDIT Definitions: CEDIT = County Economic Development Income Tax COIT = County Option Income Tax PS LOIT = Public Safety Local Option Income Tax Ps of IF All Other Income 2016 Budgeted Revenues Across All Funds V/0 Revenue Type 'roperty Taxes _ocal Income Taxes Dther Taxes 3rants/ Intergovernmental 'harges for Services nterfund Allocations 'ayment in Lieu of Taxes =fines & Forfeitures Donations Dther Income Transfers In Total Revenues p� SpUTH B�C� 0 9F ACE` �.Ci � a{ 1865 2016 2016 Proposed Percent of Budget Total $ 71,976,981 26% 24,997,453 9% 13,908,136 5% 15,574,381 6% 99,842,135 36% 8,614,659 3% 5,711,801 2% 992,760 0% 378,640 0% 9,467,105 4% 23,367,211 9% $ 274,831,262 100% 2016 Budgeted Expenditures By Activity p� SpUTH B�C� 0 9F ACE` �.Ci � a{ 1865 2016 2016 Proposed Percent of Expenditures by Activity Budget Total General & Administrative (G &A) $ 17,496,953 6% Public Safety 76,365,255 25% Economic Development 56,161,558 18% Utilities 85,705,062 28% Neighborhoods 39,892,953 13% Internal Service Funds 29,314,878 10% Other Costs 20,000 0% Total Expenditures by Activity $ 304,956,659 100% Per Capita General Government Expenditures $250 $200 $150 $100 $50 $0 A, a, ae,, a°` leo 1a A' b° L � yaaa , ` a e° i �, a, Q %Sl \ate �o < •`.ca ��p �i� Sao `ao �i`�.¢° ho Per Capita Percent of City Gen Govt Exp. Total Govt Exp. Green Bay, WI $75 5% South Bend, IN 79 5% Fort Wayne, IN 89 10% Kalamazoo, MI 89 9% Toledo, OH 99 8% Mishawaka, IN 107 15% Ann Arbor, MI 126 11% Peoria, IL 139 7% Cedar Rapids, IA 145 7% Lansing, MI 184 15% Canton, OH 217 19% Springfield, IL 225 17% Mean $131 Source: 2014 Comprehensive Annual Financial Reports 'std �L 9EACE � a{ 1865 Trust & Fu 4 2016 Budgeted Expenditures By Fund Type L /O Expenditures by Fund General Fund Special Revenue Funds Capital & Debt Service Funds Enterprise Funds Internal Service Funds Trust & Pension Funds Redevelopment Commission Total Expenditures by Fund p� SpUTH B�C� 0 9F ACE` �.Ci � a{ 1865 2016 2016 Proposed Percent of Budget Total $ 53,852,368 18% 63,229,777 21% 4,926,512 2% 103,275,813 34% 29,314,878 9% 12,610,902 4% 37,746,409 12% $ 304,956,659 100% Payment ii Lieu of Tam 2% Grants & Sub 2% 2016 Budgeted Expenditures By Type utinves Interfund Allocations 3% 3% Repairs & Maintenance 4% p� SpUTH B�C� 0 A 9F ACE` �.Ci � a{ 1865 2016 2016 Proposed Percent of Expenditures by Type Budget Total Salaries & Wages $ 79,915,437 26% Fringe Benefits 29,344,625 10% Supplies 11,867,831 4% Professional Services 12,057,977 4% Printing & Advertising 414,535 0% Utilities 9,119,278 3% Education & Training 640,827 0% Travel 454,469 0% Repairs & Maintenance 10,999,031 4% Interfund Allocations 8,614,659 3% Debt Service 32,238,364 11% Grants & Subsidies 5,334,883 2% Payment in Lieu of Taxes 5,711,801 2% Transfers Out 23,367,211 8% Capital 42,729,621 14% Other 32,146,109 9% Total Expenditures by Type $ 304,956,658 100% $400 $350 $300 $250 c 0 $200 $150 $100 $50 2016 Proposed Expenditures Across All Funds 41 City of South Bend - Expenditures 29 51 103 104 $o Actual Amended 2014 2015 29 Ai Proposed 2016 SOUTH 16,40 .ice �v � a 1865 Internal Service Funds • Neighborhoods • Utilities Economic Development • Public Safety • General & Administrative Note: Overall City Budget for 2016 is $304,956,659 Budgeted Full -Time Positions 1,200 1,150 1,100 1,050 1,000 1,164 950 M 850 1,160 1,161 — 1,096 1,100 'IOU TU BFPO � rL � a 1865 x 800 ' 2012 Budget 2013 Budget 2014 Budget 2015 Budget 2016 Proposed Budget 2016 Budgeted Full -Time Headcount Summary ►mmunity ent, 25 'std 9EACE � ar 1865 120,000 100,000 Unemployment & Private Investment Summary Unemployment & Population w 40,000 20,000 0 , • 2011 2012 2013 2014 2015 illlllllllllllllllllllllliTotal Population -m Labor Force Population Unemployed Populations Unemployment Rate 14.0 $250,000,000 12.0 $200,000,000 10.0 8.0 $150,000,000 $100,000,000 4.0 $50,000,000 311 Private Investment 0� SpUTH BED U 9 A $- 2012 2013 2014 2015* thru July ■ Combined ■ County ■ City o �R R.uaN� � Lmn aHUa' v 7lPCd^ B $ E E _ SYecd� ✓+ 11uv� Hwn 22 m � GoM°n z� RIVER WEST DEVELOPMENT AREA LAY RIVER EAST DEVELOPMENT AREA WEST WASHINGTiN CHAPIN AREA SOUTH SIDE DEVELOPMENT AREA DOUGHLAS ROAD DEVELOPMENtAREA K.* s I Development Projects, 2014-2015 _ w.a^ 4,:F x rpnm lclta � Muney eNd,1 . � � Ddb. Neva lyr Vr 5 u S.aary a. i r R >c ROUdGe / �� Wdawe. iww Ge,w.ima UnOe r �01 £ ��,ElT+LrNf JA � � 44 Gana �•• Rerk,° 6 `CayY a FF s� H� RRqq a •j Pw � 1. - 6 sa~o o sa.n. z., v �GS.mali Wbrp.r N �_` Pv..wnw a°.del c � 3 lucid • Rnu � � r � � }+ e � am JT Mllb °9 i Y 'M11 �� CaNe.l 4g A11WA E � � BM O [♦ S d � � . 8 � i a.WO f ¢ a AvaM D �3 9 S 0°b'w El°+.nN F0 PeraiW k � Q Blackthorn Golf Course © Chase Plastics © Colfax Ave. Streetscape OCollege Football Hall of Fame Resuse © Corporate Wings Q Downtown 2 Way Street Conversion QEmporium Infrastructure QEast Bank CSO Phase 5 & Transpo Infrastructure 0 FedEx r . Fellows St. Improvement Project �1 Heraeus Kulzer © Hill St. Infrastructure Hill & Cofax Mixed Use Hoffman Hotel Hubbell Raco Ignition Park Infrastructure Phase 2 QD Ignition Park Multi- Tenant Building QD LaSalle Hotel Rehab QDLincolnway West Restriping Lippert Components MasterBuilt ® Marion & Madison 2 Way ® MTI Expansion Nello Corporation Noble America Norress Renaissance District Schafer Gear South Bend Chemical Spec Building @ Ameriplex Success Academy ® South East Master Plan ® Thermolite iD City Cemeter Plan Yummy Cupcakes QD Western Ave. Streetscape 2016 Proposed Budget °�S °UTHB� " � 9F ACE` �.Ci Concluding Thoughts a{ 1865 • Overall City budget of $304.9 million. — reduced overall expenditure from 2015 due to lower capital spending. — expenditures higher than revenue mostly due to timing of bond proceed usage for infrastructure investments. • General Fund budget of $53.8 million is balanced. • Reliance on COIT and EDIT to sustain key expenditures, while moving toward long -term balance. • City budget maintains our city's comeback through: — 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 • We respectfully ask Council to approve our 2016 budget request. Keeping in Touch and On Track During the Year: Reports Available on the Web http: / /docs. southbendin. gov /weblink8 /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 31St 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