08-29-18 Personnel and Finance (#5)

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0CITY OF SOUTH BEND I OFFICE OF THE CLERK She went on, Briefly touching on property taxes, we are only anticipating property tax revenue to increase only about one percent(1%) for next,year. We are working very closely with the DLGF. They are a great organization but it is difficult to get straight information from them. This year they have been kind enough to provide us projections for every revenue that the State sends us. We are questioning some of those numbers so we are trying to understand where some of the projections are coming in from. We are trying to pin those numbers down. Thirteen percent(13%) of our revenue is actually from our transfers in and out and I will talk a little bit more about that later. Local Income Taxes are about nine percent (9%) and then everything else is the balance. You've seen this slide a million times but it is always a good reminder. We are looking at about a $2.41 million reduction in our property taxes in 2020. We do have a contract with Umbaugh to update this number. This is just a projection but they will work to make sure that projection is still what it will look like. Councilmember Jake Teshka arrived at the meeting at 5:06 p.m. Ms. Hockenhull continued, We do have good news. Our Local Income Taxes are projected to see about a ten point four percent (10.4%) increase in 2019. This is great news but we never want to actually assume that growth will last forever as Local Income Tax is the most volatile of all the revenues we get. As soon as the economy takes a turn, this is what will be affected first(1St). That is why we don't use these funds for all of our operations. Then our budgeted expenditures across all funds right now is about$384 million. That will change between now and when we present the final budget. Likely,the changes that will come will be in Health Insurance. We just had a meeting today with our Health Insurance Company to make sure we are charging departments accordingly. As you can see, our Enterprise Funds make up about thirty percent(30%) of our expenditures, so, those are where we are charging for services. They are not property-tax funded. You'll see parks, motor vehicle highways and a lot of our streets are paid for out of the Special Revenue Fund. About sixteen percent (16%) is the General Fund, where you will see Police and Fire paid out of. They account for about eighty percent (80%) of the General Fund. Internal Service Funds are the Health Insurance and the Central Services Funds. She went on, We did promise to come back and speak to the overall Administration's priorities. So if you'll look at the pie chart here (referencing a slide in the presentation), we are spending about twenty-three percent (23%) to keep our community safe. The interesting part about all of these different funds and programs is that it is really hard to pinpoint just one (1) of the priorities that the money goes toward. Although the Police provide a safe community for everyone, you could also make the argument that they are also helping us have thriving spaces and vibrant neighborhoods and those kinds of things. We do have a spreadsheet we will refer to in a moment so you can see every bucket the money goes into. We deliberated in our office to see which value each budget item corresponds with and we could all probably make a different determination on that but you will be able to see that graph and where we determined those items to be. She continued, We know the 2020 Fiscal Curb is coming. We are planning and preparing for it. Many of our departments have talked about ongoing organizational refinements. We talked about the soft hiring freeze. If someone in my office retires tomorrow,we will talk to the Mayor's Office and ask if we think this position would need to be refilled,why, or why not. That is the process we will go through so it won't be an automatic one (1) for one (1). That will help as people, though they are our greatest asset,they are also the most costly asset for the City. We are also identifying other public-private partnerships that we could invest in. We are investing in additional sources EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 1 TTD 574.235.5567 I www.southbendin.gov 2