2006 Performance Based Budget - Laserfiche WebLink

Home Browse Search

Section C of this book defines and quantifies more than 100 programs citywide, and all of these programs list indicators of performance. Those indicators need to be continually refined and modified on an ongoing basis to reflect the areas that are truly meaningful in evaluating an area of service. Costing programs, developing indicators and setting performance goals are important. However, the frequency with which we measure results and how we use the information with labor units and management is more critical. In order for an organization to be successful in implementing this concept, it must be ingrained in day to day operations and decision making. South Bend has done a great job to date on implementation; however, we are only a short way along the total evolutionary curve. We are committed to continue on that path to improve what we do, every day, in order to make a difference for our community. Accomplishments for the Year 2005 We are pleased to announce that we have underspent the 2005 General Fund Expenditure Budget by $7,315,302 while General Fund Revenue has exceeded the 2005 Budget by $3,428,650. This good news is a direct result of the hard work and never-ending focus on expense control by the City's department heads, managers and employees. The additional revenue is a result of increased collections for services provided and improved cash management procedures, which resulted in more than doubling the budgeted income received on investments. This net $10.7 million excess over budget has provided additional funds for the City's 200b Capital Budget as well as increased cash reserves. The 2005 results are a continuation of past successes. Last year the City was able to announce that it had underspent the 2004 General Fund Expenditure Budget by $2,371,471 while General Fund Revenue exceeded the 2004 Budget by $491,912. In 2003, General Fund Expenditure Budget was unspent by $1,722,401 and revenue was exceeded by $3,319,755. In 2002, the General Fund Budget was underspent by $ 3,932,000, and revenues came in at $920,949 more than originally anticipated. This provides evidence that the City's budgets have been prepared on a conservative basis, and they have provided adequate resources to fund services provided. All cities have limited resources and, thus, limited number of programs and services that can be provided. We are proud to say that we have done well in terms of maintaining a solid, financially sound organization by spending within our means. The City of South Bend's overall financial stability continues to remain very strong. Once again the City's "AA" credit rating from Standard & I'oor's and Fitch 1BCA was reaffirmed in 2005. The City also issued one bond in 2005, City of South Bend Building Corporation First Mortgage Bond. Fitch's press release stated that "the rating reflects the City of South Bend's solid financial position, sound and diversified economic base, and low direct debt levels. The City's financial performance is consistently strong, with conservative budgeting and operating surpluses supporting the long record of sizable undesignated general fund balances." Standard and Poor's credit profile identified the City's strengths to include "a diverse local economy" and a "history of strong liquidity and good financial management." Moody's Investor Services also reaffirmed its previous rating of A2 which is a rating that the City is pleased with, however, the City's goal is to improve this rating in the near future. The City continues to maintain adequate cash reserves not only in its General Fund (which remained at 20% of the current year's operating expenditure budget as of the start of this year ix