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HomeMy WebLinkAbout09-03-2026 Personnel & Finance Budget Meeting Minutes (approved)OFFICE OF THE CITY CLERK BIANCA L. T'IRA DO, CIT'Y CLERK PERSONNEL & FINANCE Committee Members Present: Committee Members Absent: Councilmembers Present: Others Present: Presenters: Agenda: SEPTEMBER 3, 2026, 5:30 P.M. Sheila Niezgodski, Karen L. White, Ophelia Gooden-Rodgers, Rachel Tomas Morgan, Caz Margenau None Sharon McBride*, Canneth Lee, Heidi Beidinger, Sherry Bolden-Simpson Bianca Tirado, Jasmine Jackson, Lari ' onna Green, Veronica Pitt-Payne, Bob Palmer Madi Rogers, Kyle Willis, David Finley 2027 Department of Innovation & Technology Budget Overview Members marked with an asterisk (*) are in virtual attendance via Microsoft Teams. Please note the attached link for the meeting recording: https://docs.southbendin.gov/WebLink/Browse.aspx?dbid=0&repo=sbend&mediaid=413356 Please note the attached link for the meeting presentations: https://docs.southbendin.gov/WebLink/Browse.aspx?id=412347&dbid=0&repo=sbend Committee Chair Sheila Niezgodski called to order the Personnel and Finance Committee meeting at 5 :30 P.M. 2027 Department of Innovation & Technology Budget Overview Madi Rogers, Chief Innovation Officer, with offices at the Technology Resource Center, 1165 Franklin Street, South Bend, IN 46601 , presented the 2027 Department of Innovation & Technology (I&T) Budget Overview. She noted that I&T is a centralized allocation department, meaning all of its services are charged out to the departments it serves. She provided an overview of the department's organizational structure and the budget line items included in the I&T portfolio. She noted that Repairs & Maintenance encompasses nearly half of the department's budget, and the majority of this eight-million-dollar ($8,000,000) line item comes from software Jasmine Jac kson 0-UEF D EPUfY OTY 0.ERK / 0-UEF OF STAFF INTEGRITY I SERVICE I ACCESSIBILITY MatthcH" cal D EPUfY OTY 0.ERK / D IRECTOR OF Pou CY Veronica Pitt-Payne D IRECTOR OF SPEGAL PROJECTS EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall 1215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 57 4.235.9221 If 57 4.235.9173 J www.southbendin.gov CITY OF SOUTH BEND I OFFICE OF THE CrfY CLERK and hardware. The Debt Service Principal and Interest line items represent the City's leased Dell computers, which cost approximately six hundred thousand dollars ($600,000) annually. Major software costs within the Repairs & Maintenance line item include UKG and Microsoft licenses at approximately four hundred thousand dollars ($400,000) each, and the Aunalytics platform at approximately seven hundred thousand dollars ($700,000). Madi Rogers went on to highlight some of the department's 2026 activities and achievements. She described I&T's cybersecurity and digital infrastructure portfolio. She said that for every one (1) email that reaches a City inbox, two (2) more are intercepted by the City's security systems, and the City's risk profile with its cybersecurity insurance provider has dropped by nearly eighty percent (80%) in the past year. She stated that three-one-one (311) has connected residents with nearly sixty thousand dollars ($60,000) in social assistance this year, and the Flow Forward program provided over nine thousand dollars ($9,000) in matched bills. She spoke about the department's work to streamline resident digital experiences and comply with new federal accessibility guidelines. She also highlighted I&T's effort to bring more development in-house rather than procuring software from external vendors. As an example, she said the Commuters Trust application was quoted at seventy-five thousand dollars ($75 ,000) through an outside vendor but was built internally for approximately ten thousand dollars ($10,000) per year. She spoke about the work of the Civic Innovation team and noted that this year, the City of South Bend was one (1) of only twenty-five (25) cities worldwide to receive a one-million dollar ($1 ,000,000) Bloomberg Mayor's Challenge grant. She provided preliminary results from the Build the Budget resident engagement activity and noted the final report will be delivered to Council before the October 12 vote. Madi Rogers then presented the budget numbers and proposed changes for 2027. She reiterated that I&T is a centralized allocation department, and its budget is made up of all other departments' technology costs. This model allows the City to consolidate licenses, achieve better pricing, and maintain governance across all technology needs, with costs then charged back to departments using allocation factors based on usage. She described strategies used to keep the budget flat despite typical annual technology cost increases of five-to-fifteen percent (5-15%), including right-sizing operational expenses, cleaning up license distribution, bringing more development work in-house, and negotiating with vendors. She noted that the three-one-one (311) budget stayed flat from 2026 to 2027 following a significant increase from 2025 to 2026 driven by the move to City Hall. Across the combined I&T budget, Professional Services decreased by approximately four-hundred-thousand dollars ($400,000), while Repairs & Maintenance increased by a similar amount due to rising software costs. The overall proposed I&T budget is essentially flat, at negative zero-point-three-two percent (-0.32% ). Madi Rogers concluded with the department's personnel change requests. The first (1 st) request is to convert a current contracted enFocus cybersecurity specialist into a full-time City employee, adding one (1) new full-time equivalent (FTE). This move shifts the cost of the position from the Professional Services budget line to Salaries & Wages. The second (2nd) request is to create a new senior product manager position, with no new FTE, by promoting an existing employee into that role. She explained that this would leave the product manager position vacant, and the department EXCELLENCE I ACCOUNTABILITY ! INNOVATION ! INCLUSION I EMPOWERMENT 300 City Hall I215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 I p 57 4 235.9221 I f. 574.235.9173 J www.southbendin.gov f~ CITY OF SOlITH BEND j OFFICE OF THE CITY CLERK proposes filling it by moving a current contracted enF ocus digital communications fellow into that role. She stated that this would add one (1) new FTE and similarly shift the cost from Professional Services to Salaries & Wages. The final request is to create a new customer service liaison three (3) position within the three-one-one (311 team), with no new FTE, to formalize job duties that are currently being performed informally by certain individuals in the customer service liaison two (2) role. She added that this position would also create a pipeline to move staff into resident success case manager roles as the Bloomberg Mayor's Challenge program expands. In total, the proposed changes result in three (3) new position titles and two (2) new FTEs, with the overall budget remaining flat. Committee Member Rachel Tomas Morgan asked if dedicated cybersecurity specialist positions exist in other cities this size. Madi Rogers stated that these positions are not common in cities this size, but South Bend "punches above its weight" as a city. She said establishing a dedicated cybersecurity specialist role would put the City on the cutting edge. Committee Member Tomas Morgan asked if the cybersecurity role would oversee digital security for waterworks and other infrastructure. Madi Rogers clarified that the City's water infrastructure is not connected to the internet, so the City does not face the same cybersecurity risks that other municipalities may face in that regard. However, she said the cybersecurity specialist would oversee the business continuity plan for the waterworks team, ensuring that if a cybersecurity incident were to occur, the City has a prepared and documented response. She noted the department has already created business continuity plans for several City systems and plans to expand those in the coming year. Committee Member Tomas Morgan asked for confirmation that the personnel changes result in a net total of two (2) new FTEs. Madi Rogers confirmed that is correct, noting that there are three (3) new position titles. Committee Member Ophelia Gooden-Rodgers asked for clarification on whether the department is adding positions that did not previously exist or moving current employees into different roles. Madi Rogers re-explained the four ( 4) changes: The cybersecurity specialist position is a new title, which will convert an existing contract role into one (1) new FTE. The senior product manager position is a new title, which will promote an existing employee. The product manager position is an existing title, which will be filled by converting an existing contract role into one (1) new FTE. Customer service liaison three (3) will be added as a new title with no new FTE. Committee Chair Niezgodski asked if adding two (2) new FTEs for the existing contract roles is budget-neutral. Madi Rogers confirmed that is correct. She noted that the two (2) positions combined are approximately two hundred thousand dollars ($200,000), and the reduction from the Professional Services budget will offset the increase in Salaries & Wages. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall I215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov CITY OF somr1 BEND I OFFICE OF THE CITY CLERK Citizen Member Caz Margenau asked why fringe benefits are decreasing while salaries are . . mcreasmg. Kyle Willis, City Controller, with offices on the second (2 nd) floor of City Hall, South Bend, IN 46601 , responded. He said this pattern will be visible across all departments this year. He explained that the amount previously budgeted for health insurance was higher than it should have been, and the correction results in a more realistic budget figure. He confirmed that this budget decrease does not reflect an actual reduction in employee benefits. Citizen Member Margenau asked Madi Rogers where she would personally withdraw five dollars ($5) from in the Build the Budget exercise. Madi Rogers said she could not speak to a particular category she would withdraw from but noted that the message this budget season is not about reduction, it is about being smart with fewer resources. The framing for residents is that they have ninety-five dollars ($95) this year instead of one hundred dollars ($100), and the exercise guides them through making thoughtful choices with that amount. Committee Member Gooden-Rodgers shared that she and Committee Member Karen L. White White participated in the Build the Budget exercise this year. She noted that in her experience, residents chose to take money away from three-one-one (311 ). Councilmember Sherry Bolden-Simpson asked if the new APRA software has already been implemented. Madi Rogers stated that the new software has not yet been implemented and is budgeted for 2027. She said I&T is currently working with the Legal Department to understand their needs so they can move quickly to procure and deploy the software in the new year. Councilmember Dr. Heidi Beidinger asked if Build the Budget data has been compared against the City's actual budget to show how it aligns with resident priorities. David Finley, Director of Data and Performance, Technology Resource Center, 1165 Franklin Street, South Bend, IN 46601 , responded. He stated that the final report will include a more comprehensive analysis of that kind. He noted that the bulk of resident engagement responses come in at Fusion Fest at the end of September. He encouraged Councilmembers to reach out directly to the team with any specific questions or data comparisons they would like prepared. Committee Chair Niezgodski noted that this year's preliminary results may differ, but her experience has been that roads and affordable housing tend to remain the top priorities year after year. Committee Member Tomas Morgan agreed that the top three (3) priorities typically remain the same. Councilmember Dr. Beidinger asked about the decrease in the street pavement analysis budget. Madi Rogers clarified that this is not a reduction in services but a change in vendors. She explained that City currently pays approximately one-hundred-forty-four thousand dollars EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall I 215 S. Or. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov ® CITY OF SOUTH BEND I OFFICEOFTHECITYCLERK ($144,000) for a biannual street pavement analysis, and I&T has identified software solutions that produce comparable results for approximately fifty thousand dollars ($50,000). Committee Chair Niezgodski asked if I&T will have any remaining contract roles once the two (2) enFocus contractors are converted to FTE. Madi Rogers confirmed that I&T will continue to have other enF ocus contractors, with a typical contract length of three (3) years. She stated that two (2) existing contracts are ending this year since both were hired around the same time. Committee Chair asked for confirmation that the personnel changes are budget-neutral. Madi Rogers confirmed that is correct. Committee Chair Niezgodski asked Madi Rogers to explain how the I&T allocation model works. Madi Rogers explained that I&T charges its services to each department, meaning that when a department presents its budget, it will not show individual line items for technology costs. Instead, after the budget process, that department receives a single I&T allocation line item that encompasses all of their technology costs. She cited the South Bend Police Department (SBPD) as an example, noting that they will speak about the Drone as First Responder program in their own presentation, but the associated technology cost will appear in the I&T budget. Committee Chair Niezgodski asked about the one-thousand-five-hundred percent (1500%) increase in the Other Services line item. Madi Rogers explained that this increase is not a real cost increase but rather a correction of how certain charges were associated with accounts. She stated that this correction makes the total line item net neutral. Committee Chair Niezgodski opened the public hearing. Murray Miller, 23698 State Road 2, South Bend, IN 46619, expressed confusion about the I&T allocation model. He asked if paying I&T allocations puts department over budget, since technology expenses are captured in the I&T budget. Kyle Willis responded. He explained that technology expenses for each department are captured in the I&T budget because I&T manages all City technology licenses centrally. Each department's technology costs are consolidated into a single I&T allocation line item in their budget, and those expenses fund the overall I&T budget. Sue Kesim, 4022 Kennedy Drive, South Bend, IN 46614, noted that there was no mention of artificial intelligence (AI) in the presentation. She asked about the City's approach to AI and whether it is reflected in the budget. Madi Rogers stated that AI-related costs are captured within the Maintenance and Professional Services line items, since I&T treats AI-driven solutions the same as any other software procurement. She noted the City does have internal AI tools available, including Microsoft Copilot licenses offered free to all City employees, with_ internal trainings available. She said EXCELLENCE I ACCOUNTABILI TY ! INNOVATION ! INCLUSION I EMPOWERMENT 300 City Hall I 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov CITY OF SOUTH BEND I OFFICE OF THE CITY CLERK Copilot is not viewed as an enterprise-wide productivity tool but as a resource that can improve individual performance. Committee Chair Niezgodski closed the public hearing. With no further business, Committee Chair Niezgodski adjourned the Personnel and Finance Committee meeting at 7:37 P.M. Respectfully Submitted, Sheila Niezgodski, Committee Chair EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall I 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 I p. 57 4.235.9221 If. 57 4.235.9173 1 www.southbendin.gov