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410 CITY OF SOUTH BEND OFFICE OF THE CLERK we expect local income taxes of about 33.3 million dollars, and we would pay about 3 million dollars for PSAP for our assessment. So,then that would be right around 30.3 million dollars.With the proposed redistribution we don't have any PSAP direct payment because they are going to take it out of the income tax, but our income tax does decrease by right around 3 million dollars. So, South Bend essentially comes out even. We essentially break even and come out a little bit ahead. I want to point out that some of you may have seen an analysis that shows us a little bit behind. The County re-ran some numbers and pushed us a little bit positive, but essentially South Bend breaks even under this redistribution. Mishawaka you can see on here, and at the end of the day the redistribution would improve Mishawaka's net position by about five (5) hundred thousand dollars, and improve the County's net position by about 1.3 million dollars in terms of taking their decrease in income tax net of the PSAP payment that they would no longer have to make in 2020. Mr. Parker went on to say, Down at the bottom of the presentation,but the remaining taxing units, town, townships, airport etcetera would have a net decrease of about 1.6 million dollars in their income taxes. So, that would impact all of the remaining taxing units with the exception of the schools. The schools do not receive the expenditure rate income tax to date so they would not see an impact, but all remaining taxing units would. As I said the County Council will consider this proposal in September. It is the County's responsibility to communicate the change for affected units which they did through their public notice that they just sent out today. The City of South Bend had not seen the proposed amendment to the local enterprise ordinance, but that is not actually true as of an hour ago. We did see what the County Council will be considering on September 10,2019. The Executive Board Committee are allowing us to review that before it will be considered by the Councils. We have not had an opportunity to respond to them as of yet because I just found out that they will be having a meeting on September 5, 2019. If that proposed modification is passed, the next step is that it would have to be passed by two (2) of the entities. So, the County, Mishawaka and the City of South Bend. Two (2)of those councils would have to pass this proposed modification and then it would become effective in 2020. I would suggest that the City insist on a reopening of negotiations regarding the interlocal agreement. Ensure that some of the new provisions that this modification in funding will generate,make sure that we renegotiate that with the County and with Mishawaka to make sure that our interests are protected. Some of the things to consider is what happens when income tax goes up or down? So, if income tax goes down how does PSAP continue to be funded if the amount of their direct assessment is no longer able to cover their operations? We want to make sure that we have the ability to monitor any operation of PSAP even without directly funding it. How does that Executive Board work given the change in the budget source? These are some of the things that have not yet been discussed with the County or Mishawaka, but it would probably need to be considered if the proposed funding mechanism were to be passed. Councilmember Dr. Oliver Davis stated, Are you suggesting that as a part of the passage that statement should be included in there? Mr. Parker replied, It is not in the proposed ordinance as it stands today. What I am suggesting is that if the County and Mishawaka or the City of South Bend passes this, and it is going to be effective we should work with the County and Mishawaka to make sure that we an can renegotiate the interlocal agreement. I think that the interlocal agreement is structured in a way that assumes that the funding mechanism is the assessment as it stands today, and if that's not going to be the goal for the assumption on the funding mechanism, we need to change the interlocal agreement to reflect that. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend.Indiana 46601 p574.235.9221 f574.235.9173 TTD574.235.5567 www.southbendin.gov 4