09-26-16 - Laserfiche WebLink

Home Browse Search

REGULAR MEETING SEPTEMBER 26, 2016 The budget process began in February with a Priority Based Budgeting kickoff meeting. It has been a beneficial and interesting process to do the Priority Based Budgeting model. On June 7th we had the budget kickoff meeting and on August 15" the Mayor gave a budget overview to Council. We have had a number of budget hearings within the Personnel and Finance Committee. October 10th, 2016 is the proposed budget adoption meeting and our due date is November 1St, 2016. The DLGF will set our property tax rates by February 15th 2017. Next year they are accelerating that so they will get it done by December 31St of the year which is good because you'd like to have your property tax rates known before you start the new year. Mr. Murphy gave a breakdown of the 2017 budget priorities which include: Safe community for everyone, a strong and inclusive economy, thriving public spaces, vibrant and welcoming neighborhoods, robust and well planned infrastructure, and that all residents are empowered with education, mobility and technology. Mr. Murphy presented the slides that have a breakdown of where money is being allocated under those specific priorities. He suggested the Council and public have a good look at them because a lot of well - funded programs are spelled out. Police and fire protection is a high priority for the City and approximately $70 million is budgeted which is approximately twenty percent (20 %) of the budget. A new department titled Venues, Parks and Arts is being proposed in this budget to better and more efficiently serve the community and will encompass the Morris, Palais, Century Center and Parks. In order to provide vibrant neighborhoods, $200,000 is budgeted for Light Up South Bend. That is funded out of the COIT Fund. There is $625,000 to address Vacant & Abandoned Properties. This budget has $1.5 million dedicated to curbs and sidewalks that does not include an estimated $3,620,000 in federal reimbursements anticipated as well. The City's minimum wage is in a three (3) prong step and is scheduled to increase to $9.15 in 2017. That is about a $61,000 impact which is primarily from the Park's budget. The overall budget is $316,540,989 in revenue which is up eight percent (8 %) from last year. We have added some trustee funds that we have never included in our budget before and that alters the numbers slightly. For the first time in City history, we have every fund that is in our reporting entity in the budget. The expenditures are $366,840,595 which is down one percent (1 %) from last year. Due to the circuit breaker we are expecting a $3.05 million drop off in property taxes in 2020. We are estimating an approximate ten percent (10 %) increase in the local income tax revenue over last year. That is based on a DLGF estimate from July, we are waiting till the end of September for a certified amount. This is very helpful for our 2017 budget. Mr. Murphy presented a breakdown of the budgeted revenue and expenditures by activity. He then gave a chart that provides a benchmark of other similar sized cities compared to South Bend and analyzes per capita general government expenditures which are typically called "overhead" or administrative costs. South Bend is at five percent (5 %) which fairs comparable to other cities like Springfield Illinois which is at seventeen (17 %). We feel like our general governmental expenses are in line with our peer cities. A chart was presented that had the breakdown of budgeted expenditures by funds and another by type. The budget calls for 1,121 full -time positions in 2017 which is a net increase of eleven (11) full - time employees. That number has police at two hundred and ninety -seven (297), Fire/EMS at two - hundred and sixty -four (264), and Public Works at three - hundred and one (301). Those are the three (3) big departments in the City. The City has won the Distinguished Budget Presentation Award two (2) years in a row and the team is really proud of that. South Bend has a double A bond rating with Standard & Poor. That is very good for a City of our size and situation but we are working to get to triple A. The 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, and measuring our performance for continuous improvement. The City continues to budget responsibly as we look towards the 2020