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Home My WebLink About09-28-2026 2027 Budget Presentation 65-26 - FILEDCity of South Bend Indiana City of South Bend Indiana City of South Bend 2027 Budget: Public Hearing September 28, 2026 City of South Bend Indiana 2027 Budget Process •9 public meetings –7 have been completed, tonight is the 8th. Date Time Topic Wednesday, September 2, 2026 5:30 PM 2027 City-Wide Budget Overview Thursday, September 3, 2026 5:30 PM Innovation & Technology Wednesday, September 9, 2026 5:30 PM Police & Fire Departments Tuesday, September 15, 2026 5:30 PM Department of Community & Investments (DCI) Wednesday, September 16, 2026 5:30 PM Department of Public Works Thursday, September 22, 2026 5:30 PM Venue, Parks, and Arts (VPA) Wednesday, September 23, 2026 5:30 PM Legal –Human Rights –Admin & Finance -Transpo Monday, September 28, 2026 7:00 PM Public Hearing on 2027 Budget (Council Meeting) Wednesday, September 30, 2026 5:30 PM Mayor's Office –Diversity and Inclusion –Community Police Review Board –City Clerk –Common Council Tuesday, October 6, 2026 5:30 PM Council Working Session, Budget Wrap-up / Final Questions Monday, October 12, 2026 7:00 PM Vote on 2027 Budget (Council Meeting) City of South Bend Indiana City of South Bend Indiana How did residents participate? •Visit a tabling event for budget trivia, prizes, and the Envelope Wall •Complete the online survey at southbendin.gov/budgetsurvey •Call 311 to leave budget comments How did the Envelope Wall work? •Each participant receives $100 in five $20 bills •They allocate it across 20 budget categories •New this year:participants must withdraw $5 from a category they funded (budget cuts) In-Person Event Schedule Completed · 8 events Aug 4 National Night Out Aug 7 Meet the Mayor at First Friday Aug 8 Linden Ave Farmers Market Aug 15 Art Beat Sep 4 First Friday Sep 12 Linden Ave Farmers Market Sep 26 Fusion Fest, Day 1 Sep 27 Fusion Fest, Day 2 Now in its sixth year, Build the Budget invited residents to help shape the 2027 City budget. Resident feedback is summarized in a report to be delivered October 5th! 2027 Build the Budget overview City of South Bend Indiana Residents voiced their top priorities Preliminary results as of Sept 28, 2026 Top 10 Categories Share of resident dollars Total allocations across in-person activities sum to $141,560 from ~1,418 respondents Homeless housing & support Affordable housing Youth programs Road repair & resurfacing Violence prevention Parks & trails Small business support Animal welfare & SBARC Sidewalks & streetlights Police services 13.7% 10.6% 8.4% 8.3% 6.8% 4.9% 4.9% 4.7% 4.7% 4.4% 128 Online Survey Responses 137 311 Voicemails 1,418 In-person Envelope Wall Participants 1,683 Total pieces of resident feedback City of South Bend Indiana 2027 Proposed Budget City of South Bend Indiana Strategic Priorities Strong Neighborhoods Safe Community for Everyone Robust, Sustainable Infrastructure Equitable Access to Opportunity Youth and Workforce Development City of South Bend Indiana Budget Context City of South Bend Administration & Finance Macroeconomy •Inflation has stabilized mostly, prices remain high •Continued growth, higher interest rates ahead •Competitive wages continue to climb faster than revenue growth City Financial Position •Stable revenue, healthy reserves •Need to grow into existing budget, making additional cuts wherever possible •Structural deficit makes new, ongoing expenditures unsustainable •Budgeted deficit is not an actual deficit. Policy Outlook •New federal spending unlikely •State tax reform proposals City of South Bend Indiana 2027 Projected Revenues Note: Excludes Redevelopment Commission 2023 Actuals 2024 Actuals 2025 Actuals 2026 Budget 2027 Proposed Budget YOY % Chg Property Taxes 61,739,306$ 70,811,554$ 71,288,923$ 68,831,319$ 72,322,511$ 4.8% Local Income Taxes 44,541,348 47,813,768 42,279,600 44,390,313 42,083,242 -5.5% Charges for Services 114,804,134 120,278,577 125,200,541 125,580,221 124,191,132 -1.1% Debt Proceeds 6,949,500 66,468,752 7,424,128 28,987,383 17,572,830 -65.0% Donations 8,194,935 13,468,067 5,320,000 9,039,000 2,749,757 -228.7% Fines, Forfeitures, and Fees 823,566 977,036 853,526 559,850 768,624 27.2% Interest Earnings 8,034,662 12,999,543 14,073,572 7,356,271 6,460,601 -13.9% Intergov./ Grants 9,891,829 7,099,488 6,007,247 5,006,082 5,937,125 15.7% Intergov./ Shared Revenues 28,070,886 31,550,362 29,781,213 31,005,443 28,636,812 -8.3% Licenses & Permits 2,348,304 4,163,304 3,560,667 3,647,422 3,370,266 -8.2% PILOT 6,095,594 6,024,186 5,765,661 5,975,482 6,434,494 7.1% Other Income 6,325,915 6,801,599 11,751,953 3,799,967 3,880,534 2.1% Interfund Transfers In 82,720,199 73,963,102 80,816,613 89,045,152 107,938,227 17.5% Grand Total 380,540,179$ 462,419,339$ 404,123,644$ 423,223,905$ 422,346,155$ -0.2% City of South Bend Indiana 2027 Proposed Department Budgets Note: Excludes Redevelopment Commission 2023 Actuals 2024 Actuals 2025 Actuals 2026 Budget 2027 Proposed Budget YOY % Chg 01 Mayor's Office 869,934 1,109,306 1,046,021 1,170,660 1,157,657 -1.11% 02 City Clerk 424,275 492,180 449,310 493,413 511,473 3.66% 03 Common Council 599,639 888,100 701,918 776,989 763,206 -1.77% 04 Administration & Finance 46,836,365 55,798,469 59,709,309 53,316,751 59,415,039 11.44% 05 Legal Department $1,445,389 $1,531,717 $1,621,566 $1,813,884 $1,826,191 0.68% 06 Public Works $82,280,001 $88,549,407 $97,698,800 $131,758,355 $110,223,095 -16.34% 07 Innovation & Technology $9,543,871 $12,509,542 $14,820,189 $15,005,358 $14,957,021 -0.32% 08 Police Department $49,532,949 $50,298,212 $52,287,879 $56,177,823 $56,236,711 0.10% 09 Fire Department $41,897,506 $41,864,481 $48,710,823 $46,593,626 $47,168,285 1.23% 10 Dept of Community Investment $22,632,189 $22,280,005 $26,509,138 $20,490,142 $19,450,242 -5.08% 11 Venues, Parks & Arts $40,730,787 $36,475,964 $45,146,211 $28,532,019 $26,928,051 -5.62% Interfund Transfers Out 74,118,042 65,637,710 66,990,253 $74,327,107 $100,287,893 34.93% Grand Total 370,910,948 377,435,094 415,691,418 430,456,127 438,924,865 1.97% City of South Bend Indiana Cash Reserve Requirements City of South Bend Administration & Finance Fund Category 12/31/2027 Projected Cash Balance Cash Reserve Requirement Variance Reserve Requirement Explanation General Fund 68,484,989 54,623,550 13,861,439 50% of annual operating expenses Local Income Tax Funds – Public Safety & Economic Development 18,015,011 10,507,505 7,507,506 Local Income Tax – Public Safety (No Reserve Requirement) Local Income Tax – Economic Development (50% of Annual Expenditures) Special Revenue Funds 42,920,600 9,986,986 2,475,291 Rainy Day Fund -3%of total City expenses Capital &Debt Service Funds 25,538,339 11,501,734 14,036,605 Debt Service Reserves Internal Service Funds 20,373,280 5,155,630 15,217,650 Reserve requirement is for self- insured funds Enterprise & Other Funds 97,856,093 31,903,264 65,952,830 City of South Bend Indiana Cash Reserve Requirements City of South Bend Administration & Finance 2027 Proposed Budget Total Revenue (City): $422,346,155 Total Expenditures (City): ($438,924,865) Net Surplus/(Deficit): ($16,578,710) •Deficit Breakdown: •General Plus Funds Deficit: ($8,566,820) •Net Deficit across all other funds: ($8,011,890) •General Plus Funds deficit increased due to projected increase in Police salary increases for FY27 labor contract. Fire Labor Contract negotiations still to be determined. Projected decrease in property tax revenue due to property tax credits (Homestead credits & Circuit Breaker). City of South Bend Administration &Finance City of South Bend Indiana 2026 Budget •General Plus Fund History: General Plus Funds Budget 2024 2025 (Unaudited)2026 Budget Actual Budget Actual Budget 6/30/206 Actual $13.1 Million Deficit $4.7Million Deficit $13.4 Million Deficit $20.6 Million Deficit $10.3 Million Deficit $2.74 Million Deficit •2025 actual deficit spending due to continued spend down of ARP dollars and Raclin Encore Center project costs (approx. $6M paid from the General Fund). •General Plus Fund Deficit (Governmental Funds): •Subsidies for Streets Department capital and operational expenditures. •Subsidize Parks operations, and Community Investment Operations •Increased operating costs due to inflation and increased salaries and wages City of South Bend Indiana 2027 Proposed Budget QUESTIONS???