03-04-19 Personnel and Finance (Tax Caps/Impact)

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•CITY OF SOUTH BEND I OFFICE OF THE CLERK Mr. Parker answered, As these one (1) time revenues come along, we'll include that in there and there will be a one (1) time bump, but as a projection, we use a base line projection assumption to say those are other types of fines, fees, licenses or permits. Mr. Parker continued, I do want to move on the second (2°d) bucket, which is operating expenditures. Again, I wanted to throw this up there to show that operating expenditures, particularly in the General Fund Plus Funds, are expected to increase fairly significantly. Again, as I said earlier, this is salary and wages as well, particularly benefits and health insurance that is driving a lot of that increase. Interestingly,if you look across the entire City,you don't see as much of an increase year over year. This is all operating expenditures, so, this takes out of capital expenditures. This is all operating expenditures. This Budget 2020 is right here at $22 million dollars and over the next several years we have stayed within that budget range. There have been some efforts in the projection which has been developed as part of 2019 Budget to offset some of the increases that we see in the General Fund Plus with decreases in operating expenditures and in the other funds. The operating expenditures isn't as much of the issue as the revenue because we expect those to be fairly flat. Mr. Parker stated (Referencing the presentation available in the City Clerk's Office), This is operating expenditure by department for 2016, 2017, 2018, 2019 and projected out to 2023 and you can see something in here. One (1) thing I did want to mention is that Innovation and Technology,you'll see a pretty large increase over time. That's as we centralize more IT resources into our Innovation and Technology Department,it looks we are spending more in IT. It's because we're taking those expenditures from the other departments and centralizing them into the IT Department. One (1) more thing I wanted to highlight, from our 2019 Budget, our top total operating expenditures are fairly constant at around $220 million dollars in 2020. Councilmember Davis stated, In the past, we have looked at our budget in terms of increases and talked about instead of just giving everyone just two percent (2%) across the board, we would categorize them so certain levels get so much gross to try to make it more equitable. Do you think you could put something like that together early so that we can have that ready to go? And would this add more to the budget or can we craft something that is within the same financial constraints? Mr. Parker answered, I am more than willing to have the conversation early to see what that looks like. One (1) of the things I'll get to is, if you look at operating expenditures, over fifty percent (50%)of these expenditures are salaries and benefits. So,there are a variety of things that we could put in place and I am open to any suggestions on how we can do creative things like that to help with that issue. Councilmember Davis followed up, If you did see this, in the slide from earlier, it did show that more people are using the wellness initiative. Mr. Parker replied, The wellness initiatives have been great in making sure that our health insurance expenditures aren't increasing as quickly as they have been. The goal is to continue that and see how we can do other kinds of things to make that rate of change even less. Councilmember Davis asked, Do you see employees using the wellness plan individually or do you see their entire families getting on it? Would that make it better? EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld South Bend.Indiana46601 p 574.235.9221 f574.235.9173ITTD574.235.5567;www.southbendin.gov 9