Laserfiche WebLink
REGULAR MEETING SEPTEMBER 13,2004 <br /> property taxes. Coincidentally, the negotiated raised for our Police Department, Fire <br /> Department and Teamsters equals about two and one-half million dollars. All that new <br /> money is going toward raises for those bargaining units. This means that other raises for <br /> other employees and increases in our service accounts, health care, etc., have to come out <br /> of existing dollars. This means that our capital budget will probably be squeezed for next <br /> year, but we think that will be all right. Mayor Luecke thanked the Council again for <br /> their emphasis on compensating the workforce and we want to make sure we are paying <br /> the employees of the City of South Bend fairly. The total budget as presented is one <br /> hundred sixty nine million dollars in revenues about one hundred and fifty five million <br /> dollars in operating budget which leaves approximately fourteen million dollars for <br /> capital budgeting early next year. That breaks down to sixty one million dollars for <br /> operating budget for the general fund, approximately eighteen million dollars for our <br /> special revenue funds, seventeen million dollars for our insurance funds and self-funded <br /> employee benefits, ten million dollars for our capital and debt service funds, ten million <br /> for our trust and agency funds and thirty eight million dollars for our enterprise funds. <br /> These dollars are appropriated so that we can provide the services that our residents, <br /> businesses and visitors expect of us. It is our goal through this budget to continue <br /> working on the City Wide goals and objectives, to improve South Bend's economy, to <br /> improve public safety, to improve South Bend's quality of life, to improve residents trust <br /> in City Government, to improve responsiveness, efficiency and effectiveness, to improve <br /> the City infrastructure, to improve the financial condition of City Government and to <br /> improve City Governments existing workforce and work environment. Mayor Luecke <br /> stated that he believes this budget does just that and he is proud of the budget that he is <br /> bringing before the Council at this time when many municipalities and other units of <br /> government are having to cut programs or having to provide zero % raises to their <br /> employees. The City of South Bend has been able to fully provide good raises for our <br /> employees, by good planning in the past, staying on target, good management by our <br /> department heads, and looking for more efficiency in government. Using new <br /> technology to be able to deliver services more effectively. This budget is solid, in the <br /> black and balanced. We are able to maintain reserves that are critical to the cash flow of <br /> our bond rating and emergencies. We are able to invest in on going initiatives to build a <br /> safe and clean city, to encourage smart growth and maximize the use of technology. <br /> There are still many challenges that remain ahead of us, our expenditures are now <br /> growing at a rate faster than our revenues. Primarily to salary increases and benefit <br /> increases. There is still uncertainty in the property tax reassessment program. The tax <br /> rate to date still has not been certified for 2004 much less 2005. Nevertheless,Mayor <br /> Luecke stated that he believes that he will be able to work through that. There are many <br /> property tax appeals that still need to be resolved also delinquencies in property taxes that <br /> are owed along with a reduced cap on the levy growth. This will present some <br /> challenges, but we pledge to continue to bring to you budgets that are balanced, budgets <br /> that make the most of the dollars that we have available to us, budgets that continue to <br /> provide the services that our residents expect. Mayor Luecke again, thanked the Council <br /> and asked for their favorable support. <br /> Rick 011ett, stated that he is the City Controller and he is pleased to work with each and <br /> every Councilmember. Mr. 011ett thanked the Council for their interest and participation <br /> in the City Budget Meetings. The 2005 Budget is balanced and fiscally responsible. We <br /> are fiscally sound and have growing revenues, we are not flush with resources to do <br /> everything we would like to do. We will have to prioritize our capital and operating <br /> costs. For the last four(4) weeks we have held budgets meetings with department heads <br /> and members of those departments to review their strategy and ask detailed questions. <br /> Mr. 011ett stated that being fiscally responsible is key to the budget, the City must be <br /> prepared for unexpected events must also be planned for and funds must be set aside for <br /> reserves. He emphasized the need for reserves and capital to be used wisely to keep <br /> operations running efficiently and effectively. This budget includes operating expenses <br /> and debt service, but does not include new capital appropriations. The proposed budget <br /> in the past has assumed a maximum allowable 5% increase in property tax revenue for <br /> civil city, however the recommendation from the Department of Local Government <br /> Finance (DLGF) is to use a 4.4 % increase for the 2005 estimates. The DLGF <br /> recommends this new percentage be used based upon new laws that have been passed and <br /> due to the uncertainty in the assessed valuation. The maximum new levy will be <br /> reviewed by the DLGF in October and an adjustment will be made to the general fund <br /> 10 <br />