12-14-09 Capital budget to increase, yet stay below historic levels

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Office of the Mayor NEWS RELEASE December 14, 2009 4:15 p.m. Capital budget to increase, yet stay below historic levels Contact: Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564 or City Controller Gregg Zientara, 235-9216 The City of South Bend is requesting $9.9 million in 2010 for capital expenditures. Upon approval of the Common Council, $8.6 million will be used to replace and or maintain existing assets of city operations. The balance of the requested capital, $1.3 million, will be used to fund certain re- engineering or efficiency-related projects, including the recently announced energy office. The capital budget of $9.9 million requested for 2010 compares with investment levels of more than $18 million annually in 2007 and 2008. Spending in 2009 is $3.1 million, a dramatic reduction from prior years in light of the uncertainty with property tax revenues. The 2010 capital expenditure budget, introduced today to the South Bend Common Council, includes road work, new police vehicles, fire equipment and needed maintenance for city-owned facilities. It seeks to replace City infrastructure and operating equipment to maintain efficient and cost-effective service to taxpayers. There are new investments, such as connecting Northside Trail with the Mishawaka Riverwalk and providing an operating budget for a new Energy Office, as well as significant renovations to key facilities, including the Newman Center and Fire House No. 5. Nearly 62 percent of the total spending, however, is for maintenance and replacement costs. About 4 percent of the proposed budget is focused on projects that will re-engineer operations or produce new efficiency in government operations. Revenue sources for the capital budget are varied, with about one-third each coming from capital funds and special revenue sources. Property taxes provide only 14 percent of revenue for capital expenditures.