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HomeMy WebLinkAbout09-16-2026 Personnel & Finance Budget Meeting Minutes (approved)OFFICE OF THE CITY CLERK BIANCA L. TIRADO, CIT Y CLERK PERSONNEL & FINANCE Committee Members Present: Committee Members Absent: Councilmembers Present: Others Present: Presenters: Agenda: SEPTEMBER 16, 2026, 5:30 P.M. Sheila Niezgodski, Karen L. White, Ophelia Gooden-Rodgers, Rachel Tomas Morgan, Caz Margenau None Canneth Lee, Dr. Heidi Beidinger, Sharon McBride* Bianca Tirado, Matthew Neal, Veronica Pitt- Payne, Bob Palmer Eric Horvath 2027 Department of Public Works 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=413707 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 Public Works Budget Overview Eric Horvath, Director of Public Works, with offices on the fourth ( 4th) floor of City Hall, South Bend, IN 46601 , presented the 2027 Public Works budget. He gave an overview of the department's five (5) divisions: Engineering, Streets, Wastewater, Water, and Solid Waste. Engineering is supported by the General Fund, Streets is primarily funded through gas and wheel tax, and Wastewater, Water, and Solid Waste are enterprise funds sustained by utility revenue. Jasmine Jackson OilEF D EPUfY OTY Q ERK I OilEF OF STAFF INTEGRITY I SERVICE I ACCESSIBILITY Mallhe"· N cal D EPUfY O TY Q ERK I DIRECTOR OF POLICY Veronica Pill-Payne DIRECTOR OF SPEGAL PROJECTS 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 I f. 574.235.9173 1 www.southbendin.gov CITY OF SOUTI-I BEND I OFFICE OF THE CITY CLERK Eric Horvath presented the overall budget summary. The proposed 2027 Public Works budget is one hundred seventeen-point-two million dollars ($117,200,000), down approximately fifteen percent (15%) from 2026, with most of that reduction driven by the timing of major capital projects. He noted a one-to-two percent ( 1-2%) decrease in most division operating budgets, with a nine percent (9%) decrease for Engineering. All salary increases were set at a standard three percent (3%). Fringe benefit costs decreased across all divisions due to the City-wide decrease in health insurance costs. Eric Horvath presented the 2027 Solid Waste budget, which includes a one-point-seven percent ( 1. 7%) overall reduction. Supplies increased thirteen percent ( 13 % ) to cover replacement of trash and yard waste totes. Dumping fees increased four percent (4%). Capital expenditures in 2027 include two (2) compressed natural gas (CNG) automated side-loaders and one (1) pickup truck. He noted that the City's solid waste fleet runs almost entirely on fuel derived from digested biosolids at the wastewater treatment plant, which is provided at no cost and generates renewable energy credits. Eric Horvath presented the Water utility budget. He explained that the U.S. Environmental Protection Agency (EPA)'s Lead and Copper Rule requires the City to take a complete inventory of its thirty-five thousand (35,000) service lines over the next ten (10) years. The department is proposing four ( 4) new full-time equivalent (FTE) roles to fulfill this regulatory requirement. He said completing the work with a four ( 4 )-person potholing crew would save the City ten-million dollars ($10,000,000) compared to contracting out. He noted a two-point-four percent (2.4%) increase in salaries, an increase in fringe benefits due to an under-budgeted PERF contribution in 2026, and an increase in utilities due to natural gas prices and wastewater fee corrections. Capital expenditures declined significantly from thirty-three million dollars ($33,000,000) in 2026 to eight-point-nine million dollars ($8 ,900,000) in 2027, reflecting the completion of major projects. Upcoming projects include finishing the South Well Field ammonia improvements, improvements to the Edison Street plant, and ongoing per-and polyfluoroalkyl substance (PFAS) removal projects at North Station and Pinhook. Eric Horvath then presented the Wastewater utility budget, with a proposed increase of zero-point- two percent (0.2%) overall. Salaries increased four-point-two percent ( 4.2%) to correct an under- budgeted standby allowance in 2026. The PILOT line increased as a result of new assets, including an equalization basin, added to the plant's depreciated book value. Wastewater capital increased fifty-four percent (54%), to a total of seventeen-point-five million dollars ($17,500,000). The largest project is a five-point-six million dollar ($5,600,000) rehabilitation of a backup anaerobic digester. Additional capital projects include lift station work, force main repairs, and vehicle replacements. Eric Horvath then presented Streets division budget. He noted that this budget encompasses streets, sewers, traffic, and lighting. The overall operating budget declined by one-point-five percent (1.5%), with salaries down two-point-seven percent (2.7%) and fringe benefits down ten- point-five percent (10.5%). The six-hundred-thousand dollar ($600,000) decrease in professional services reflects a reduction of the curb and sidewalk Council allocation budget from one-point- six million dollars ($1,600,000) to one million dollars ($1,000,000). Repairs and maintenance EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall J 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 increased significantly due to aging vehicles and higher Central Services maintenance costs. Capital for vehicles is budgeted at two-point-four million dollars ($2,400,000), a thirty-three percent (33%) decrease from 2026. Eric Horvath then presented the Engineering budget, noting that salaries increased by two-point- five percent (2.5%) while all other categories declined. Supplies declined by fifty thousand dollars ($50,000), reflecting a reduction in the Light Up South Bend program since most lighting coverage gaps have now been addressed. Repairs and maintenance declined by five hundred thousand dollars ($500,000) due to a reduction in the Community Crossings matching grant from the state. Traffic signal upgrades were also reduced by one hundred thousand dollars($ 100,000). The Engineering operating budget decreased by nine-point-two percent (9.2%), while capital increased by eighty-six-point-five percent (86.5%) due to the allocation of two-hundred-fifty thousand dollars ($250,000) for guardrail replacement. One (1) higher-than-standard salary increase of eight-point-two percent (8.2%) reflects a mid-year position upgrade that was not captured in the original 2026 budget. Eric Horvath closed with 2027 budget highlights. The total paving budget is projected at eight- point-two-five million dollars ($8,250,000), including two-hundred-fifty-thousand dollars ($250,000) in outsourced paving, two-point-five million dollars ($2,500,000) through Community Crossings, one million dollars ($1 ,000 ,000) in internal paving, and four-point-five million dollars ($4,500,000) in tax increment financing (TIF) requests from the Redevelopment Commission. The Bendix Road reconstruction is an additional eight-point-five million dollar ($8,500,000) federally funded standalone project set to bid in January 2027. The lamppost cost- share reimbursement program remains at fifty-thousand dollars ($50,000), and traffic calming was held at two-hundred-thousand dollars ($200,000), which will fund approximately twelve (12) speed humps at six (6) locations. Guardrail replacement is proposed at two-hundred-fifty- thousand dollars ($250,000) and traffic signal upgrades at three-hundred-seventy-thousand dollars ($370,000). For the curb and sidewalk Council allocation, the reduction to one million dollars ($1 ,000,000) results in an allocation of one-thousand (1 ,000) feet of sidewalk and six- hundred (600) feet of curb, or one-thousand-four-hundred (1 ,400) feet of sidewalk without curb, per Councilmember. Committee Chair Niezgodski asked if there is any flexibility to right-size the curb and sidewalk Council allocation budget to one-point-two to one-point-three million dollars ($1 ,200,000- 1,300,000). She noted that this is the actual amount spent most years before encumbrances, and the program is critically important for residents in her district. Eric Horvath acknowledged the value and impact of the program. He explained that gas and wheel tax revenues have not grown for many years, making it difficult to sustain the Streets budget. He said curb and sidewalk allocation was one (1) of the few available places to reduce capital rather than cutting personnel or services. Committee Chair Niezgodski asked whether the department is still backlogged in receiving trucks that have already been budgeted. 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 r----------------------------------------··· ---·---· -- CITY OF SOUTH BEND I OFFICE OF THE CITY CLERK Eric Horvath said delivery times have improved significantly following a backlog around the pandemic. He said eight-to-nine (8-9) month delays are typical, and the department starts communicating with vendors as soon as the budget is approved so that orders can be placed at the start of the new year. Committee Member Rachel Tomas Morgan asked if the predictive model indicates certain areas of the City where lead service lines are more common. Eric Horvath replied that lead services lines are found throughout the City in homes built before they were banned. He said there are approximately twenty-two thousand (22,000) service lines with an eighty percent (80%) probability of being lead, according to the predictive model. Committee Vice Chair Karen L. White asked how many residents are still on the waitlist for the curb and sidewalk Council allocation program. She asked if Councilmembers should continue to submit names. Eric Horvath confirmed that his staff will provide each Councilmember with a full accounting of their list status via the City 's geographic information system (GIS) platform. Committee Vice Chair White noted that as an At-Large Councilmember, she typically shares her allocation with District Councilmembers. Committee Member Ophelia Gooden-Rodgers asked about the status of the proposed roundabout near Frankie's and whether it is included in the 2027 budget. Eric Horvath confirmed that design funding is in place, but construction funding has not yet been allocated. He said they will seek TIF funds from the Redevelopment Commission for construction. Committee Member Gooden-Rodgers expressed concern about the number of residents on her curb and sidewalk allocation waitlist carried over from previous terms. She spoke about the significance of the program for residents. Eric Horvath confirmed that Councilmembers will receive a full accounting of their waitlists. Citizen Member Caz Margenau asked if the Wastewater capital increase will result in a utility rate increase. Eric Horvath stated that no rate increase is currently planned, but increases are needed on a regular basis to fund necessary capital projects. He said the utility's operating revenue exceeds costs by approximately ten million dollars ($10,000,000) annually, providing some cash on hand. For very large projects such as the equalization basin, the department typically uses bond financing, timed carefully to manage the debt load. Citizen Member Margenau encouraged the department to proactively educate residents about major capital projects and utility infrastructure upgrades. She said residents may attribute future rate increases to data center development if they are uninformed. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall I215 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 OFFICE OF THE CITY CLERK Eric Horvath acknowledged the possibility of that misconception. He elaborated on the challenges with the existing infrastructure, which is both aging and overbuilt. He said the department prioritizes upgrades that are needed for public health and regulatory compliance. Council President Canneth Lee asked about the reason for reducing the curb and sidewalk Council allocation budget. Eric Horvath explained that reducing the Streets operational budget would directly impact essential services such as snow plowing and paving. For this reason, they focused on reducing the Streets capital budget. Council President Lee noted that traffic calming infrastructure has helped reduce drive-by shootings. He asked for confirmation that the 2027 budget includes speed humps at six (6) locations. Eric Horvath confirmed that there will be twelve (12) speed humps, likely installed in pairs at six ( 6) locations. Councilmember Dr. Heidi Beidinger asked how the department intends to educate residents about the lead service line inventory program and other in-home lead risks. Eric Horvath explained the City 's annual lead education campaign which includes direct mailings to residents about their specific service lines, free water testing kits available, and information on mitigation options including pitcher filters and under-sink systems. He noted that service line replacements at daycares and schools have been completed with grant funding. Councilmember Dr. Beidinger asked how many lane miles of paving are planned for 2027. Eric Horvath said approximately thirty-five (3 5) lane miles are planned, with several full reconstructions. Councilmember Dr. Beidinger asked if there are fewer miles planned than previous years due to a budget decrease or an increase in construction complexity. Eric Horvath acknowledged both factors. He said the 2027 paving budget is eight-point-two-five million dollars ($8 ,250,000), down from nine-point-four million dollars ($9,400,000) in 2026. He noted that this does not include the separate Bendix Road reconstruction, which is budgeted at eight-point-five million dollars ($8,500,000). Councilmember Sharon McBride asked if the department could provide a public-facing list distinguishing City streets from those maintained by the county or state. Committee Member Gooden-Rodgers asked if there are certain areas in the City where lead exposure poses a higher risk. Eric Horvath confirmed that certain census tracts show higher incidence of lead poisoning in children, primarily due to deteriorating lead paint in older homes rather than service lines. He said these tracts correlate with lower-income areas where residents are less able to afford home 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 ~--------------------------------------·---· ·------·------- CHY OF SOUI1-I BEND I OFFICE OF THE CITY CLERK improvements. He encouraged continued outreach on the City's lead abatement grant program, which provides funding for remediation, particularly in homes with children. Committee Vice Chair White asked what areas are being targeted for the remaining Light Up South Bend funds and whether parks are being considered. Eric Horvath invited Councilmembers to communicate their priority areas. He said the department can work with Venues Parks and Arts to deploy additional park lighting in a way that is aligned with intended park use and hours. Committee Chair Niezgodski opened the public hearing. Sue Kesim, 4022 Kennedy Drive, South Bend, IN 46614, shared sustainability-related comments addressing light pollution, PFAS , recycling practices, the ecological impact of river lights, self- healing pothole materials, and the impact of climate change on flood patterns. She asked how many sewer lift stations there are in the City and how old they are. She asked if there are procedures in place to maintain electric power to water utility infrastructure in an emergency. Eric Horvath responded that the City has forty-two ( 42) sewer lift stations, with three (3) scheduled for upgrade in 2027. He also stated that both Water and Wastewater utilities have backup generators at critical facilities , most of which are automated. He noted that climate change and watershed flooding is a broader-than-city issue and described the City's efforts to secure grants and partnerships for watershed studies. He said the City has collaborated on self-healing pothole material research, and the technology is not there yet. On street lighting, he said all City lights are dark sky compliant and directed downward. On recycling, he clarified that curbside recycling is managed by the St. Joseph County Solid Waste Management District, not the City, and he could not speak to the recycling rate. He acknowledged the concerns about PFAS and river lighting. Committee Chair Niezgodski closed the public hearing. With no further business, Committee Chair Niezgodski adjourned the Personnel and Finance Committee meeting at 7:01 P.M. Respectfully Submitted, Sheila Niezgodski, Committee Chair EXCELLE NC E 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