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CITY OF SOUTH BEND OFFICE OF THE CLERK <br /> Committeemember Broden asked, Are there any anticipated changes being looked at in the <br /> Legislature now? <br /> Mr. Parker answered, I am not aware of anything now. Our team can certainly look into it as we <br /> are not aware of anything at the moment. In the original 2017 law, it did allow for up to a one (1) <br /> cent per gallon per year increase. So, that will presumably continue. <br /> He went on, The last revenue issue that I want to mention is local income tax. As you can see <br /> (referencing the presentation), our projections right now are that Local Income Tax revenue will <br /> increase over the next four(4) to five(5) years. The reason I wanted to highlight this is because if <br /> there is a change in economic circumstances such as a national recession or a local economic issue, <br /> this projection could change significantly and could really have an impact on our financials. <br /> Currently, we use Local Income Tax revenue to close a lot of the holes that were created in the <br /> property tax cap that we saw. So, the amount that we receive in Local Income Tax revenue, while <br /> it doesn't give us the full amount of our property taxes back it, it's fairly close to the amount of <br /> the property tax cap losses that we see. But if there is a change in economic conditions, the Local <br /> Income Tax revenue could be impacted. I throw that up there to say even with a fairly consistent <br /> growth projection of Local Income Tax revenue we still had a revenue shortfall. It's yet another <br /> condition for the change that could be exacerbated. <br /> Committeemember Broden asked, What is that growth projection? <br /> Mr. Parker answered, It's roughly two percent(2%) a year. <br /> Committeemember John Voorde asked, When it comes to distribution, how the does the State <br /> account for working somewhere else?When you live in Indiana but work in another County in the <br /> State? <br /> Mr. Parker answered, I am not sure I know the answer to that question. Now, the local employees <br /> that live in St. Joseph County and work in Michigan, there might be a different system in place. <br /> Councilmember Davis stated, I think the taxes come back here. Because mine didn't go to Berrien <br /> County when I worked in Michigan it stayed here. <br /> Committee Chair White asked, Can we just double check on that? <br /> Mr. Parker answered, We'll clarify and send out a response to all Council Members. <br /> Mr. Parker continued, I wanted to bring this back up to say, all of those different factors that we <br /> discussed, Medicaid and the gasoline tax, there is one (1) that we didn't talk about which is river <br /> boat gaming revenue ($600,000). South Bend will no longer receive that as of 2021. <br /> Councilmember Davis asked, Do you see that being a short-term situation or will that be more of <br /> a long-term situation? <br /> Mr. Parker answered, The State legislature specifically changed their distribution formula to <br /> exclude South Bend from those proceeds because of the casino. So, that I imagine it would <br /> continue permanently. That was roughly$600,000 a year. <br /> EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT <br /> 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 466011p 574.235.9221 f 574.235.9173111D574.235.5567 Iwww.southbendin.gov <br /> 7 <br />