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Home My WebLink About09-16-2026 Department of Public Works Budget - Council Presentation FILEDPPPPUUUBBBBBLLICCCC WWWWOOOORRRRRKKKKKSSSSS MMMMMMISSSSSSSSSSIOOOOONNN WE BUILD THE FOUNDATION FOR A THRIVING CITY Providing essential household services Developing sustainable assets and infrastructure Streets &Pavement Resurfacing, pavement repair, and pothole repairs. 1 Sidewalks &ADA Access Sidewalk, curb, ADA accessibility, and alley improvements. 2 Safety &Traffic Calming Traffic calming, speeding controls, and pedestrian safety. 3 Street Lighting Street lighting upgrades. 4 Stormwater Drainage Stormwater drainage improvements. 5 Water &Sewer Water and sewer infrastructure investments. 6 Council Priorities for PW 2027 Budget Takeaways $117.2M 14.8%below 2026 Proposed 2027 total vs. $137.5M adopted in 2026. O P E R A T I N G B U D G E T S H O L D S T E A D Y Slightly Declining across every Division Solid Waste down 1.7%, Water down 1.4%, Streets down 1.5%, Engineering down 9.2%; Wastewater down 1%(Water & Wastewater net of PILOT change). C A P I T A L T I M I N G D R I V E S C H A N G E Water capital steps down from $33.1M to $8.9M after the 2026 peak, while wastewater capital rises 54.9% to $17.5M for headworks and digester work. L E A D &C O P P E R R U L E R E Q U I R E M E N T S Principal policy decision is whether to invest in the internal potholing crew to meet the lead-service-line workload more economically SOLID WASTE Solid Waste operations hold flat: $7.23M, down 1.7% (610) Expenses 2026 Adopted Budget 2027 Proposed Variance Salaries & Wages $1,504,929 $1,546,241 2.7% Fringe Benefits $712,359 $643,060 -9.7% Supplies $539,671 $610,795 13.2% Education & Training $15,000 $12,000 -20.0% Other Services & Charges $1,385,500 $1,445,500 4.3% Repairs & Maintenance $1,527,000 $1,475,000 -3.4% Travel $7,500 $6,000 -20.0% Bad Debt $150,000 $150,000 0.0% Debt Service Interest & Fees $139,308 $111,891 -19.7% Debt Service Principal $1,365,562 $1,225,752 -10.2% Printing & Advertising $5,615 $5,000 -11.0% TOTAL $7,352,444 $7,231,239 -1.7% Solid Waste capital steps down 7.4% to $1.26M (611) Expenses 2026 Adopted Budget 2027 Proposed Variance Capital $1,360,250 $1,259,276 -7.4% Capital Includes: Two ASL Dedicated CNG Units (@ $545,125 each) One PickUp truck (@ $60,000) WATER UTILITY Lead & Copper Rule Improvements Requires a complete inventory of service lines Demands accurate identification of service line materials Must be completed by 2037 34,830 lines need to be verified in 10 years Why Potholing is the Best Solution Verifies service line material and exact location Prevents damage to existing infrastructure Improves accuracy of inventory data Supports compliance and documentation Reduces delays and unexpected costs for replacement Internal Potholing Crew Cost efficiency over time Internal potholing crews reduce long-term financial exposure compared to escalating contractor costs Operational Control and Flexibility An internal crew offers greater scheduling flexibility and responsiveness to project needs than external vendors Risk Management and Safety Internal teams align better with organizational safety standards, reducing risk during potholing operations Contractor Cost Analysis Contractor costs for potholing have risen from $472/pothole in 2023 to $675/pothole in 2026 Mobilization, urgency and limited availability premiums add significant cost to contractor pricing Rising and unstable costs highlight the need for alternative approaches offering better cost predictability. 2027 Request Cost savings of over $10 Million over 10 years with internal potholing crew Equipment Needed Hydro Excavation Truck Mini Dump Truck 4 full-time Teamster employees with benefits Water operations hold flat: $19.0M, down 1.1% (620, 624, 625, 626, 629) Expenses 2026 Adopted Budget 2027 Proposed Variance Salaries & Wages $4,446,799 $4,552,530 2.4% Fringe Benefits $1,657,344 $1,738,753 4.9% Supplies $2,007,303 $1,807,500 -10.0% Education & Training $34,626 $48,800 40.9% Other Services & Charges $3,595,017 $3,571,000 -0.7% Professional Services $1,668,030 $1,584,100 -5.0% Repairs & Maintenance $681,297 $697,000 2.3% Travel $10,000 $9,000 -10.0% Utilities $959,097 $1,226,050 27.8% Bad Debt $300,000 $300,000 0.0% Debt Service Interest & Fees $661,162 $544,517 -17.6% Debt Service Principal $1,622,829 $1,305,181 -19.6% Printing & Advertising $22,500 $21,225 -5.7% PILOT $1,575,974 $1,626,750 3.2% TOTAL $19,241,978 $19,032,406 -1.1% Water capital steps down 73.2% to $8.9M (622) Expenses 2026 Adopted Budget 2027 Proposed Variance Capital $33,121,550 $8,880,000 -73.2% Capital Includes: Pinhook PFAS Design Cleveland South Improvements Erskine Plant Improvements Carriage Hills Wells Annual Water Main Replacement Hydrant/Valve Replacement Fellows Booster Motor Equipment & Meters Vehicles Personnel Changes Type of Request Current Position Title Proposed Position Title #of Employees 2027 Proposed New FTE Construction & Maintenance II 4 $25.21/hr WASTEWATER UTILITY Wastewater Operations spending holds flat: $34.73M, up 0.2% (640, 641, 643, 649, 653, 654) Expenses 2026 Adopted Budget 2027 Proposed Variance Salaries & Wages $6,675,052 $6,955,754 4.2% Fringe Benefits $2,825,845 $2,565,282 -9.2% Supplies $4,175,654 $4,141,883 -0.8% Education & Training $58,720 $55,000 -6.3% Other Services & Charges $4,318,661 $4,252,250 -1.5% Professional Services $254,927 $225,000 -11.7% Repairs & Maintenance $4,055,764 $3,851,787 -5.0% Travel $40,000 $34,000 -15.0% Utilities $1,798,005 $1,809,200 0.6% Bad Debt $431,500 $391,500 -9.3% Debt Service Interest & Fees $1,513,113 $1,389,380 -8.2% Debt Service Principal $4,116,000 $4,249,000 3.2% Printing & Advertising $6,470 $4,850 -25.0% PILOT $4,399,508 $4,807,744 9.3% TOTAL $34,669,219 $34,732,630 0.2% Wastewater capital rises 54.9% to $17.5M (642) Expenses 2026 Adopted Budget 2027 Proposed Variance Capital $11,320,000 $17,540,000 54.9% Capital Includes: Headworks Rehab & Primary Rehab Anaerobic Digester Edison Lift Station & Geyer Ditch Chemical Feed, 27th Street Lift Station CSO Diversion and Outfall Structures Vehicles STREETS, SEWERS, TRAFFIC & LIGHTING Streets operations hold flat: $17.4M, down 1.5% Expenses 2026 Adopted Budget 2027 Proposed Variance Salaries & Wages $4,723,329 $4,850,221 2.7% Fringe Benefits $2,010,852 $1,800,505 -10.5% Supplies $2,986,654 $3,037,975 1.7% Education & Training $20,000 $12,000 -40.0% Other Services & Charges $155,940 $155,550 -0.3% Professional Services $1,650,000 $1,050,000 -36.4% Repairs & Maintenance $1,736,518 $2,151,855 23.9% Travel $15,000 $12,000 -20.0% Utilities $1,455,000 $1,465,000 0.7% Debt Service Interest & Fees $326,325 $274,078 -16.0% Debt Service Principal $2,578,136 $2,587,069 0.3% Printing & Advertising $2,000 $1,500 -25.0% TOTAL $17,659,754 $17,397,753 -1.5% Expenses 2026 Adopted Budget 2027 Proposed Variance Capital $3,600,000 $2,410,000 -33.1% Leaf Pickup transfers edge up to $140,520, up 4.0% (655) Expenses 2026 Adopted Budget 2027 Proposed Variance Salaries & Wages $114,312 $117,776 3.0% Fringe Benefits $8,745 $9,101 4.1% Supplies $5,500 $5,500 0.0% Bad Debt $6,500 $8,143 25.3% TOTAL $135,057 $140,520 4.0% ENGINEERING Engineering Operations budget falls to $6.78M in 2027, down 9.2% (101, 251, 265) Expenses 2026 Adopted Budget 2027 Proposed Variance Salaries & Wages $2,590,784 $2,654,294 2.5% Fringe Benefits $940,687 $857,537 -8.8% Supplies $99,009 $48,009 -51.5% Education & Training $21,420 $20,000 -6.6% Other Services & Charges $71,190 $67,020 -5.9% Professional Services $245,000 $235,000 -4.1% Repairs & Maintenance $3,479,100 $2,878,600 -17.3% Travel $15,555 $15,555 0.0% Printing & Advertising $8,000 $8,000 0.0% TOTAL $7,470,745 $6,784,015 -9.2% Expenses 2026 Adopted Budget 2027 Proposed Variance Capital $240,000 $450,000 87.5% Stormwater totals $1.38M in 2027, up 1.7%(667) Expenses 2026 Adopted Budget 2027 Proposed Variance Salaries & Wages $58,350 $63,106 8.2% Fringe Benefits $26,492 $24,499 -7.5% Professional Services - $260,000 N/A Capital $1,240,000 $1,000,000 -19.4% Bad Debt $28,000 $28,000 0.0% TOTAL $1,352,842 $1,375,605 1.7% Budget Highlights Program 2026 Adopted 2027 Proposed Fund Variance Outsourced Paving $250,000 $250,000 266 0% Community Crossings $3,000,000 $2,500,000 265 -16.7% TOTAL $3,250,000 $2,750,000 -15.4% PAVING River West Development Area $2,500,000 River East Development Area $1,000,000 South Side Development Area $1,000,000 TIF Fund Paving: Budget Highlights Program 2026 Adopted 2027 Proposed Fund Variance Light Up South Bend $80,000 $30,000 101 -62.5% Lamppost Reimbursement $50,000 $50,000 101 0% TOTAL $130,000 $80,000 -38.5% STREET LIGHTING Program 2026 Adopted 2027 Proposed Fund Variance Traffic Calming $200,000 $200,000 251 0% Guardrail $0 $250,000 251 N/A Traffic Signal Upgrades $470,000 $370,000 251 -21.3% TOTAL $670,000 $820,000 22.4% TRAFFIC CALMING,GUARDRAIL,SIGNALS Budget Highlights Program 2026 Adopted 2027 Proposed Fund Variance Curb & Sidewalk Contracted $1,600,000 $1,000,000 202 -37.5% Curb & Sidewalk Reimbursement $150,000 $150,000 202 0% TOTAL $1,750,000 $1,150,000 -34.3% CURB &SIDEWALK Department-wide budget falls 14.8% to $117.2M in 2027 Expenses 2026 Adopted Budget 2027 Proposed Budget Variance Solid Waste Operations $7,352,444 $7,231,239 -1.7% Solid Waste Capital $1,360,250 $1,259,276 -7.4% Water Operations $19,241,978 $19,032,406 -1.1% Water Capital $33,121,550 $8,880,000 -73.2% Wastewater Operations $34,669,219 $34,732,630 0.2% Wastewater Capital $11,320,000 $17,540,000 54.9% Streets Operations $17,659,754 $17,397,753 -1.5% Streets Capital $3,600,000 $2,410,000 -33.1% Leaf Pickup Operations $135,057 $140,520 4.0% Engineering Operations $7,470,745 $6,784,015 -9.2% Engineering Capital $240,000 $450,000 87.5% Stormwater Ops & Cap $1,352,842 $1,375,605 1.7% TOTAL $137,523,839 $117,233,444 -14.8%