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<br />A6 E N D
<br />SEPTEMBER
<br />2008
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<br />Letter from the Mayor
<br />Dear Friends and Neighbors,
<br />South Bend faces its most challenging budget - planning year in my two decades of
<br />public life. Many ask: Why is the City closing our parks? Why is the City planning
<br />to lay off police and firefighters? The simple answer is that the State's property tax
<br />caps will cause South Bend to lose $21.3 million in revenue, so we need to make
<br />these cuts to meet our budget. For the past three years, I have worked with a bipar-
<br />tisan coalition of Indiana mayors to avert this crisis, proposing reforms to reduce
<br />our reliance on property taxes. Instead of the gradual approach to phase in change,
<br />the Governor's plan unilaterally capped property taxes and raised sales taxes. Local
<br />government does not receive any of the revenue from the new sales tax. And in
<br />many communities across the state, local income taxes are increasing to offset the
<br />revenue lost to the caps. House Enrolled Act 1001, while providing some property
<br />tax relief, is resulting in a tax shift — or a dramatic cut in services. The lost $21.3
<br />million in revenue, formerly supported by property taxes, is a cut of nearly 27 per-
<br />cent in the city's general fund. These taxes pay for important services.
<br />As with most cities, about 75 percent of South Bend's budget is devoted to public
<br />safety. But our local taxes also pay for parks and economic development, for streets
<br />and code enforcement. The Governor's plan to cut property tax revenue also cuts
<br />key services and personnel. Without replacement revenue, these tax caps will mean
<br />cutting muscle and bone from not only public- safety operations, but from all City
<br />departments. We project cutting more than 200 staff, including 40 police officers
<br />and 53 firefighters, eliminating paid school crossing guards and closing park facili-
<br />ties, city pools, after- school programs, summer playground sites and recreation
<br />centers.
<br />These proposed cuts are required to live within our budget. We've taken a multi -
<br />pronged approach to address revenue shortfalls — finding efficiencies and streamlin-
<br />ing operations before reducing services or staff. But these cuts are the true impact
<br />of losing nearly a third of our revenue. This is a difficult time for families as well as
<br />the City. High gas prices, the slumping national economy and housing concerns
<br />provide plenty to worry about. But there are many bright spots in South Bend's
<br />economy — the new research park and nanoelectronics initiative will bring good
<br />jobs and private investment. Record development at Eddy Street Commons and
<br />new projects downtown show that we can grow our economy, even during difficult
<br />times.
<br />I will continue to lobby the legislature, seeking authority for South Bend to choose
<br />the taxes that work best for us. Indianapolis, for example, has several local taxes —
<br />taxes on rental cars and at restaurants — aimed primarily at non- residents. To date,
<br />the only option that the State has provided to local governments is to raise local
<br />income taxes. St. Joseph County now has the 10ffi lowest local option income tax
<br />rate among the state's 92 counties. Neighboring Elkhart County is nearly twice our
<br />rate. For that reason, I will ask the South Bend Common Council to support a rea-
<br />sonable and responsible increase in our local income taxes.
<br />An increase will not replace the full amount of the revenue losses. But the city will
<br />make up the remaining amount through increased efficiencies, technological inno-
<br />vations and targeted cuts. South Bend will not only survive this crisis, this city will
<br />thrive.
<br />Sincerely,
<br />Mayor Steve
<br />THIS MONTH...
<br />Mayor's Letter
<br />Morris's Fall Schedule
<br />Fall Into Fun
<br />Safety Tips
<br />Homebuyer's Programs
<br />Vote Yes on November 4th!
<br />PERFORMING ARTS CENTER
<br />• 2008 FALL SCHEDULE •
<br />October
<br />• ♦ South Bend Symphony Masterworks, •
<br />Violin Fireworks!, 8 p.m., Saturday,
<br />• October 11 •
<br />• ♦ Tyler Perry's "The Marriage Coun- •
<br />selor ", 8 p.m., Tuesday, October 14
<br />• ♦ Backyardigans, 4:00 p.m. & 7:00 •
<br />• p.m., Thursday, October 16. ON •
<br />• SALE - Friday, August 22 •
<br />♦ Broadway Theater League presents
<br />• "Forever Tango," Friday at 8 p.m. & •
<br />• Saturday at 2 p.m. & 8 p.m., October •
<br />17'h & 18'h 0
<br />• ♦ South Bend Symphony Pops, Fats •
<br />• Waller Tribute, 8 p.m., Saturday, •
<br />• October 25h •
<br />November
<br />• ♦ South Bend Symphony Masterworks, •
<br />0 Scheherazade, 8 p.m., Saturday, No-
<br />0 vember 8h •
<br />• ♦ Third Day, Christian Rock Band •
<br />• Concert, Sunday, November 9. On •
<br />Sale Sept. 20
<br />• December •
<br />♦ South Bend Symphony Pops, Home •
<br />•
<br />• for the Holiday, 3 p.m., Sunday, De- •
<br />• cember 7h •
<br />♦ Broadway Theatre League presents
<br />• Jim Brickman Holiday Concert, 8 •
<br />• p.m., Monday, December 15 •
<br />For more information, please call the
<br />• Morris Box Office at 574- 235 -9190 or •
<br />• visit morriscenter.org •
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