09-26-11 Public input on proposed 2012 budget

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The City's property tax revenues for 2012 are projected to be the same as 2011 —$49.6 million. The total, however, only remains level because it includes new sources of tax revenues from the termination of the Tax Increment Financing district serving Erskine Commons and a one-year release of revenue from another southside TIE district serving Erskine Village. City officials are projecting assessed values of property within the city to remain flat after declines of 10 percent, 9 percent and 5 percent for the past three years. Local income-based tax revenues—including the County Option Income Tax, the Economic Development Income Tax and the Public Safety Local Option Income Tax—are also expected to remain flat. The revenues received in 2012 would have been collected as the nation passed the low point of the economic recession. Within the City's annual operating budget, proposed public safety expenditures of$53.2 million represent nearly 83 percent of the General Fund budget,up from 80 percent in 2011. Staffing funded by the 2012 budget is projected to have a net increase of seven full-time personnel citywide, reaching a total of 1,185 full-time employees. Within the total City budget, sewer revenue is projected to increase 12 percent as a result of a rate increase to fund the federally mandated combined sewer overflow long-term control plan. The water utility also is projecting a 3 percent revenue increase. Bond issues in 2012 will fund capital projects to continue to improve sewer and water infrastructure. In July, both Fitch Ratings and Standard& Poor's rating agencies gave stable rating outlooks to bonds held by the City of South Bend: Fitch at AA+ and Standard & Poor's at AA. "The city's strong finances, evidenced by extremely healthy reserve levels, have helped the city weather the economic recession and state-enacted changes to the property tax system," Fitch reported. "In anticipation of the negative impact of state property tax reform, and through proactive and conservative fiscal practices, city management made strategic expenditure cuts and increased local income taxes to replace a portion of lost property tax revenue, which has diversified revenues and put the city's finances on firmer ground." "The stable outlook reflects the city's very strong level of reserves and currently balanced financial operations and, as such, we do not expect the rating to change in the two-year horizon of the outlook," according to Standard & Poor's. Mikki Dobski,Dir. "VIN, Communications and Special Projects 1400 County-City Bldg So.Bend,IN 46601 574-235-5855 w 574-876-1564 c 574-235-9892 fax mdobski((Dsouthbendl N.00v