HomeMy WebLinkAbout09-14-09 Public reviews 2010 budget; Code restored to full time
Office of the Mayor
NEWS RELEASE
September 14, 2009
3:30 p.m.
Public reviews 2010 budget; Code restored to full time
Contact:
Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564
Neighborhood code enforcement inspectors will be restored to full-time in the City of
South Bend’s proposed 2010 budget that comes before a public hearing at tonight’s South
Bend Common Council meeting.
Inspectors in the Department of Code Enforcement originally had proposed cutting back
to 32-hour work weeks as a way to retain all staff. But Mayor Stephen J. Luecke said the
priority given to undiminished code enforcement during the Council’s summer budget
hearings led City officials to re-adjust other allocations in order to retain all Code
inspectors at full-time levels.
The public hearing takes place in the city council’s regular meeting at 7 p.m. in the fourth
floor Council Chambers of the County-City Building. Here are other highlights of the
proposed 2010 budget:
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GENERAL FUND BUDGET CUT 8%:
The City’s General Fund budget for 2010
of $61.954 million represents an 8 reduction due to revenues lost as a result of the
property tax cuts.
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PUBLIC SAFETY AT FULL STRENGTH:
Thanks to the Public Safety Local
Option Income Tax and federal stimulus funding, the Police and Fire departments are
budgeted at full strength for 2010. The Police department has funding for 260 sworn
officers, while the Fire department can sustain 248 sworn firefighters. While the
additional funding restores the on-street public safety presence, it allows no room for
new operations growth. Collective bargaining negotiations continue with
representatives of employees in both police and fire departments to make changes to
allow the fund restoration to work effectively to deliver services.
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PARKS FACILITIES AND PROGRAMS PRESERVED:
Local Option Income
Tax revenue enabled the City to keep several facilities open, including the East Race
Waterway, both city swimming pools, the Newman Recreation Center, Howard Park
Ice Rink, Potawatomi Zoo, and several recreation programs, including learn-to-swim
and summer activity and lunch programs.
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56 POSITIONS CUT FOR 2010:
The budget eliminates 56 positions from the
City’s payroll for 2010, on top of 25 position reductions this year. Since 2000, the
City has cut 206 positions or 15 percent of its workforce.
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NO SALARY INCREASES FOR 2 YEAR:
For the second consecutive year,
non-bargaining employees will not receive a pay increase. In 2009, the Mayor and all
Department Heads took a 5 percent salary cut. Collective bargaining employees
continue to receive previously negotiated increases.
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REDUCED HEALTH BENEFITS FOR EMPLOYEES:
The City will make
changes in the application of its health plan, eliminating a $500 contribution to a
flexible medical spending account for each City employee ($600,000 savings) and
going to an 80-20 health insurance plan ($1.3 million savings).
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FULL CUTS FOR MOST CITY DEPARTMENTS:
Despite new Local Option
Income Tax revenue which restored public safety and parks priorities, many City
departments, especially “general government” departments, will experience the full
impact of budget cuts originally anticipated before the LOIT.
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REVENUE LOST TO TAX CAPS:
Even with additional revenue anticipated from
the adoption of Local Option Income taxes, the 2010 budget projects a loss of more
than $6 million in property tax revenue – significantly less than the anticipated loss of
$22 million without the LOIT.
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NATIONAL TRENDS:
South Bend’s fiscal challenges, exacerbated by the state’s
property tax caps, are no different than other U.S. cities. According to the National
League of Cities report, “City Fiscal Conditions in 2009,” this is “the worst outlook
the report has detailed in 24 years” –
88 percent of cities say 2009 will be a difficult year in meeting fiscal needs.
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89 percent of cities say 2010 will be another difficult year.
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67 percent of cities are instituting hiring freezes or layoffs
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62 percent of cities are canceling capital infrastructure projects
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32 percent of cities are cutting services other than public safety
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The report also notes that 42 percent of cities are increasing fee rates, 25 percent are
creating new fees and 25 percent have increased property taxes.
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