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Home My WebLink About11320-26 2027 TRANSPO Budget Appropriation and Property Tax Levy ORDINANCE No . 11320-26 Passed by the Common Council of the City of South Bend, Indiana October 12, 20 26 Attest: 4001 City Clerk Bianca L. Tirado Attest: _ ---r i ) President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 13, 20 26 City Clerk Bianca L. Tirado Approved and signed by me n jot I 20 26 1 Mayor ik-j SOU.T_H ',,, O"t' '‘;111,/: ,', .� /�' �'/%`mod ,,,4v. ,,-,:::,.......;, IV . '--%.77* •'.4470/ 1865 • SECOND SUBSTITUTE BILL NO. 68-26 ORDINANCE NO. 11320-26 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,APPROPRIATING, ADOPTING AND APPROVING THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION'S 2027 BUDGET AND LEVYING THE TAX AND FIXING THE RATE OF THE TAXATION FOR THE PURPOSE OF RAISING REVENUE TO FUND THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION, SOUTH BEND, INDIANA, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2027 STATEMENT OF PURPOSE AND INTENT Pursuant to Indiana law, the South Bend Public Transportation Corporation is required to submit its proposed budget and tax levy to the Common Council of the City of South Bend for adoption. Specifically, Indiana Code § 6-1.1-17-20 requires that the South Bend Public Transportation Corporation, as a political subdivision governed by a majority of unelected officials, submit its proposed budget and property tax levy to the Common Council of the City of South Bend. Pursuant to Indiana Code § 6-1.1-17-20(e), the Common Council of the City of South Bend is required to review the South Bend Public Transportation Corporation's budget and proposed tax levy and adopt a final budget and tax levy for the South Bend Public Transportation Corporation. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: SECTION I. The South Bend Public Transportation Corporation's budget for the year ending December 31,2027,the sums of money stated in the budget summary attached to this Ordinance as Exhibit A, is appropriated, adopted, approved and ordered set apart out of the several funds herein named and for the purposes herein specified, subject to the laws governing the same. Such sums herein appropriated shall be held to include all expenditures authorized to be made during the year, unless otherwise expressly stipulated and provided for by law. By adoption of and consistent with this Ordinance, the State- mandated Budget Form No. 4 attached to this Ordinance as Exhibit B is hereby approved and adopted. SECTION II. For the purpose of raising revenue to meet the necessary expenses of the South Bend Public Transportation Corporation, there shall be levied a property tax upon each one hundred dollars of assessed valuation of taxable property within the City of South Bend, Indiana, for the fiscal year 2026 to be collected in the year 2027, as shown and described in Exhibit B. SECTION III. This Ordinance shall be in full force and effect from and after its passage by the Common Council of the City of South Bend and approved by the Mayor. a‘,./ . Canneth J. Lee, Council President South Bend Common Council Attest: Bianca L. Tirado, ity rk Office of the City Clerk Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana on the 13th day of October , 2026, at 12 o'clock p.m. Bia ca L. Tirado, ' Clerk Office of the City erk f, Approved and signed by me on the )3 day of OA , 2026, at J o'clock / .m. Jame ueller, Mayor City f South Bend, Indiana 41■11\ g pv transpo south bend public transportation corporation 2027 FISCAL OPERATING & CAPITAL BUDGET January 1, 2027 through December 31, 2027 Prepared By South Bend Public Transportation Corporation SOUTH BEND PUBLIC TRANSPORTATION CORPORATION SOUTH BEND, INDIANA 2027 FISCAL YEAR BUDGET REQUEST TABLE OF CONTENTS BUDGET ESTIMATE FOR 2027 PROJECTIONS / ASSUMPTIONS 2027 Revenue Projection 1 2027 Expense Projection 2 2027 Appropriations 3 2027 Budget Assumptions 4 2027 Budget Policy Statements 6 2027 Budget Summaries by Category —All Accounts 7-15 SOUTH BEND PUBLIC TRANSPORTATION CORPORATION 2027 REVENUE PROJECTION %CHANGE-2026 BUDGET vs. ACTUAL 2025 2027 2026 2025 2026 2025 SOURCE BUDGET BUDGET ACTUAL BUDGET ACTUAL FAREBOX $ 1,470,916 $ 1,494,777 $ 1,353,574 -1.60% 8.67% ADVERTISING $ 310,954 $ 271,665 $ 296,342 14.46% 4.93% LEASE REVENUE $ 82,143 $ 27,158 $ (152,155) 202.46% -153.99% CONCESSIONS AND MISCELLANEOUS $ 24,600 $ 32,010 $ 49,574 -23.15% -50.38% INTEREST INCOME $ 26,103 $ 2,474 $ 30,023 955.09% -13.06% $ PROPERTY TAX $ 4,292,800 $ 4,053,116 $ 3,776,833 5.91% 13.66% LICENSE EXCISE TAX $ 250,000 $ 260,000 $ 246,788 -3.85% 1.30% $ LOCAL INCOME TAX $ 725,929 $ 739,168 $ 675,302 -1.79% 7.50% STATE ASSISTANCE $ 2,080,062 $ 2,080,062 $ 2,080,062 0.00% 0.00% FEDERAL PREVENTATIVE MAINTENANCE $ 1,250,000 $ 1,250,000 $ 1,410,723 0% -11.39% FEDERAL ASSISTANCE $ 2,183,026 $ 2,284,955 $ 2,062,469 -4% 5.85% LEASE REVENUE $ - $ 200,000 $ 200,000 -20% -100.00% TOTAL $ 12,696,534 $ 12,696,056 $ 12,029,535 0.00% 5.54% 1 SOUTH BEND PUBLIC TRANSPORTATION CORPORATION 2027 EXPENSE PROJECTION %CHANGE-2026 BUDGET VS. ACTUAL 2025 2027 2026 2025 2026 2025 Expense Category BUDGET BUDGET ACTUAL BUDGET ACTUAL Salaries & Wages $ 7,119,321 $ 6,930,592 $ 5,785,882 2.72% 23.05% Fringe Benefits $ 2,610,107 $ 2,626,016 $ 1,861,647 -0.61% 40.20% Services $ 903,292 $ 882,952 $ 728,421 2.30% 24.01% Materials & Supplies _ $ 906,228 $ 906,228 $ 1,100,705 0.00% -17.67% Utilities $ 452,000 $ 396,000 $ 319,768 14.14% 41.35% Insurance $ 593,285 $ 678,285 $ 442,569 -12.53% 34.05% Other Taxes Miscellaneous $ 112,300 $ 101,300 $ 137,979 10.86% -18.61% SUB-TOTAL —i$ 12,696,534 $12,521,373 $ 10,376,971 1.40% 22.35% Transfer- Capital Improvements/ Reserve for Liability $ - TOTAL r $ 12,696,534 $12,521,373 $ 10,376,971 1.40% 22.35% 2 TRANSPO Budgeted Appropriations Operating Budget Capital Budget Total 2027 Category 2027 2026 2027 2026 Appropriations Personnel Services 9,729,428 9,514,600 9,729,428 Other Services and Charges 2,060,877 2,055,537 2,060,877 Supplies 906,229 906,228 906,229 Capital Outlays 463,252 54,860 2,316,262 1,001,140 2,779,514 Total Appropriations $13,159,786 $12,531,225 $ 2,316,262 $1,001,140 $ 15,476,048 3 Ad& transpo 2027 OPERATING BUDGET ASSUMPTIONS REVENUES: Federal, State, and Local: Transpo continues to avail ourselves of annual federal capital formula grant funds for preventative maintenance and operating assistance. The application of such funds towards the operating budget assists with offsetting any increased expenses. In the past year, expenses have been increasing greater than revenues. This has increased the challenge of providing a balanced budget. Transpo will continue to pursue competitive grant opportunities to fund capital improvements and expenses. The effects of Senate Bill 1 will be reviewed to determine the final funding effects on future property tax revenues. Management will also begin reviewing the effects changes in Local Income Tax funding may have in future budget cycles. Ridership and Revenue: Overall ridership decreased by 124,712 rides from 2024. Management believes this was due to missed trips caused by issues with staffing levels for both the access and fixed route services. Transpo continues to review the paratransit/access program to increase efficiency of the service. EXPENSES: Employee Wages and Benefits: For 2027, Transpo budgeted an increase in wages and employee benefits from the 2026 budget. Wage increases are dictated by Collective bargaining agreements. Health insurance premiums will increase in 2027, due to increases in prescription drug costs. This will be the first time in six years premiums have increased. Transfer — Capital Improvement Fund/Restricted Liability Reserve: The 2027 budget does not provide the opportunity to transfer funds into the capital account to fund capital purchases. If at the end of 2027, a budget surplus would occur, the surplus would be transferred to the capital account to fund 2028 capital purchases. 4 UPON THE ADOPTION OF THE ANNUAL BUDGET BY THE SOUTH BEND PUBLIC TRANSPORTATION BOARD OF DIRECTORS, A MONTHLY BUDGET, BASED ON HISTORICAL AND FUTURE TRENDS, WILL BE ESTABLISHED. THIS WILL HELP FACILITATE THE MONTHLY REVIEW OF FINANCIAL REPORTS BY BOARD MEMBERS AND INTERNAL MANAGEMENT. transpo 2027 OPERATING BUDGET POLICY STATEMENTS FINANCIAL CAPACITY: 1. Management will continue to search for investment, grant and funding opportunities to maximize revenues. 2. Management will ensure cash handling practices to safeguard funds in its protection and toward timely collection of funds owed. SERVICE POLICY: 4 Management will review the effects of Senate Bill 1 and expected changes in future local income tax receipts expected in 2030. Management will then provide recommendations that may affect current services levels. 5. Access service will be provided in accordance with all applicable FTA guidelines. MANAGEMENT: 6 A professional workforce will carry out our Mission Statement. Management will assure fairness, consistency, and effective Equal Employment Opportunity and Affirmative Action policies and practices. 7 Assumes continuation of team development, employee recognition, and increased opportunities for employee training. 8 Assumes continued pursuit of programs of wellness and accident prevention in an effort to stem, to whatever extent possible, rising insurance costs. 6 TRANSPO 2027 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Salaries &Wages Summary 2025 ACTUAL $ 5,902,699 2027 BUDGET REQUEST $ 7,119,321 2026 MONTHLY AVERAGE $ 526,976 2026 APPROVED BUDGET $ 6,930,591 2026 EST EXPENSE $ 6,323,714 BUDGET CHANGE $ 188,730 Account Title 2026 2027 Operations-Fixed Route $ 3,800,163 $ 3,875,224 Operations-ADA 775,748 793,260 Operations-Administration 457,903 465,128 Maintenance-Vehicles 1,071,181 1,121,611 Maintenance-Administration 142,751 145,273 Maintenance-Non-Revenue 114,751 123,140 General Administration 568,094 595,686 Total $ 6,930,592 $ 7,119,321 7 TRANSPO 2027 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Fringe Benefits Summary 2025 ACTUAL $ 2,361,624 2027 BUDGET REQUEST $ 2,610,107 2026 MONTHLY AVERAGE $ 210,892 2026 APPROVED BUDGET $ 2,626,016 2026 EST EXPENSE $ 2,530,710 BUDGET CHANGE $ (15,909) Account Title 2026 2027 Fringe Benefits-FICA $ 526,977 $ 544,628 Fringe Benefits-Pension Plan 348,296 344,415 Fringe Benefits-Medical Insurance 1,316,352 1,284,972 Fringe Benefits- Dental Insurance 54,000 51,353 Fringe Benefits--Life Insurance 57,294 56,823 Fringe Benefits-Short Term Disability 7,008 6,921 Fringe Benefits-Unemployment Insurance 10,818 10,818 Fringe Benefits-Workman's Compensation 253,421 258,987 Fringe Benefits-Uniforms 45,850 45,190 Fringe Benefits-Tool Allowance 6,000 6,000 Total $2,626,016 $ 2,610,107 8 TRANS PO 2027 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Services Summary 2025 ACTUAL $ 935,625 2027 BUDGET REQUEST $ 903,292 2026 MONTHLY AVERAGE $ 91,795 2026 APPROVED BUDGET $ 882,952 2026 EST EXPENSE $ 1,028,616 BUDGET CHANGE $ 20,340 Account Title 2026 2027 Management Service Fees . Professional &Technical 175,369 175,369 Board Travel Training 2,000 2,000 Temporary Help 2,500 2,500 Contract Services Operations 58,850 68,850 Contract Services Maintenance 308,700 319,040 Contract Services Administration 198,800 198,800 Security Services 136,733 136,733 Physical Damage Repairs 20,000 20,000 Recoveries of Physical Damage Repairs (20,000) (20,000) Total $ 882,952 $ 903,292 9 TRANSPO 2027 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Materials & Supplies 2025 ACTUAL $ 873,272 2027 BUDGET REQUEST $ 906,228 2026 MONTHLY AVERAGE $ 69,194 2026 APPROVED BUDGET $ 906,228 2026 EST EXPENSE $ 830,325 BUDGET CHANGE $ 0 Account Title 2026 2027 Fuel & Lubricants Operations and CNG $ 469,004 $ 450,662 Fuel& Lubricants Maintenance 13,364 13,364 Tires&Tubes Maintenance 2,560 2,560 Materials &Supplies Operations 10,000 10,000 Materials &Supplies Maintenance 370,000 388,342 Materials & Supplies Marketing 17,000 17,000 Other Materials& Supplies OPERATORS 7,800 7,800 Other Materials& Supplies Maintenance 2,600 2,600 Other Materials&Supplies General Administration 13,900 13,900 Total $ 906,228 $ 906,228 10 2027 BUDGET SUBMISSION DEPARTMENT: Administration & Maintenance ACCOUNT TITLE: Utilities ACCOUNT NUMBER: 5050220..5050650 2025 ACTUAL $ 429,301 2027 BUDGET REQUEST $ 452,000 2026 MONTHLY AVERAGE $ 38,080 2026 APPROVED BUDGET $ 396,000 2026 EST EXPENSE $ 427,000 BUDGET CHANGE $ 56,000 Account Title 2026 2027 Electricity $ 223,000 $ 250,000 Water& Sewage $ 17,000 $ 18,000 Trash Collection $ 6,000 $ 7,000 Telephone $ 43,000 $ 47,000 Natural Gas $ 107,000 $ 130,000 Totals $ 396,000 $ 452,000 11 TRANSPO 2027 BUDGET SUBMISSION DEPARTMENT: General Administration ACCOUNT TITLE: Insurance - Liability& Physical Damage/Corporate Insurance ACCOUNT NUMBER: 506-0350 506-0320 2025 ACTUAL $ 555,300 2027 BUDGET REQUEST $ 593,285 2026 MONTHLY AVERAGE $ 51,101 2026 APPROVED BUDGET $ 678,285 2026 EST EXPENSE $ 583,065 BUDGET CHANGE $ (85,000) Liability Insurance Premiums (Includes Physical Damage) $ 350,000 Claims Payments (Under Deductible) $ 45,000 Reserve for claims incurred but not yet paid (Under Deductible) $ 25,000 Third-Party Administrator Fees and/or Management Fees $ 12,000 Fiduciary & Crime Liability $ 2,290 Commercial Property $ 48,500 General Liability $ 50,000 Cyber Insurance $ 60,000 Armed Security Guard & Terrorism $ 495 Total $ 593,285 12 TRANSPO 2027 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Miscellaneous Summary 2025 ACTUAL $ 62,996 2027 BUDGET REQUEST $ 112,300 2026 MONTHLY AVERAGE $ 8,209 2026 APPROVED BUDGET $ 101,300 2026 EST EXPENSE $ 111,248 BUDGET CHANGE $ 11,000 2026 2027 Account Title $ 17,300 $ 18,300 Dues & Subscriptions 12,500 12,500 Travel & Meetings 12,000 12,000 Community Services 14,000 14,000 Promotion 45,500 45,500 Advertising Placements 1 ,500 Interest Expense on Tax Warrants/Loans Total $$ 101,300 $ 112,300 13 TRANSPO 2027 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Capital Fund Requirements ACCOUNT NUMBER: 301-0101 2025 ACTUAL $ 3,706,636 2027 BUDGET REQUEST $ 2,316,262 2026 MONTHLY AVERAGE $ 173,785 2026 APPROVED BUDGET $ 1,120,000 2026 EST EXPENSE $ 2,085,425 BUDGET CHANGE $ 1,196,262 $$$ FTA/State Local Grant Number Available Funded Share IN-90-X883 $ 260,000 $ 208,000 $ 52,000 IN-90-X854 $ 1,200,000 $ 960,000 $ 240,000 2027- 5307/5339 -FTA Grant $ 5,724,076 $ 3,699,814 $ 2,024,262 Total $ 7,384,076 $ 4,867,814 $ 2,316,262 14 TRANSPO 2027 BUDGET SUBMISSION DEPARTMENT: All ACCOUNT TITLE: Passenger Fares Summary ACCOUNT NUMBER: 413-0100 2025 ACTUAL: $ 833,334 2027 BUDGET REQUEST $ 1,470,916 2026 Monthly AVERAGE: $ 72,946 2026 APPROVED BUDGET $ 1,494,777 2026 ESTIMATED: $ 875,347 BUDGET CHANGE: $ (23,861) Account Title 2026 2027 Passenger Revenue $ 691,789 $ 673,018 Access Passenger Revenue $ 39,194 $ 38,594 Access Punch Card Revenue $ 72,632 $ 69,921 Passport Revenue $ 287,883 $ 262,466 Student Pass Revenue $ - $ - Tripper Revenue $ 236,114 $ 251,829 Two Week Pass $ 65,589 $ 67,026 One Day Pass $ 101,576 $ 108,062 Student Summer Pass - $ - $ 1,494,777 $ 1,470,916 15 ORDINANCE OR RESOLUTION FOR APPROPRIATIONS AND TAX RATES State Form 55865(7-15) Budget Form No.4 Approved by the State Board of Accounts,2015 Generated 10/09/2026 09:50:30 AM Prescribed by the Department of Local Government Finance Ordinance/ Resolution Number: 68-26 Be it ordained/resolved by the SOUTH BEND CIVIL CITY that for the expenses of SOUTH BEND PUBLIC TRANSPORTATION , St.Joseph County for the year ending December 31, 2027 the sums herein specified are hereby appropriated and ordered set apart out of the several funds herein named and for the purposes herein specified, subject to the laws governing the same. Such sums herein appropriated shall be held to include all expenditures authorized to be made during the year, unless otherwise expressly stipulated and provided for by law. In addition, for the purposes of raising revenue to meet the necessary expenses of SOUTH BEND PUBLIC TRANSPORTATION, St. Joseph County, the property tax levies and property tax rates as herein specified are included herein. Budget Form 4-B for all funds must be completed and submitted in the manner prescribed by the Department of Local Government Finance. This ordinance/resolution shall be in full force and effect from and after its passage and approval by the SOUTH BEND CIVIL CITY. Name of Adopting Entity/Fiscal Body Type of Adopting Entity/Fiscal Body Date of Adoption South Bend Common Council Common Council 10/12/2026 Estimated Maximum Property Tax Levy The data below represents the current estimate of the maximum amount of property taxes that can be raised for funds that are subject to a maximum property tax levy. Property Tax Max Levy Type Estimated Maximum Total Property Tom`I St Property Tax Levy Levies 46,'' . ifiL _Airaiiiiiiiiiiiiit.., . Civil .- 6526438 $8,026,438 Over Max By:$1,500,000 Funds Fund Adopted Adopted Tax Adopted Tax Property Tax Max Levy Type Code Fund Name Budget Levy Rate Civil 8001 SPECIAL TRANSPORTATION GEN $12,716,534 $8,026,438 $0.1448 Civil 8090 SPECIAL TRANSPORTATION $1,056,000 $0 $0.0000 CUMULATIVE $13,772,534 $8,026,438 0.1448 Name Signature Canneth - ).....* •••••..,„..\ Aye Nay ❑ Abstain❑ i /ia o..:doe/ /r L Abstain❑ 'PIZ i kOa Ut ilk__A__,.. 14 Page 1 of 2 ORDINANCE OR RESOLUTION FOR APPROPRIATIONS AND TAX RATES State Form 55865(7-15) Budget Form No.4 Approved by the State Board of Accounts,2015 Generated 10/09/2026 09:50:30 AM Prescribed by the Department of Local Government Finance Sharon McBride Aye 1 '� Nay Abstain❑ 0 j/V 1/14/ / . Sherry Bolden-Simpson Aye iY/ Nay ❑��/I��18,12 — :Abstain❑ U L ht c Sheila Niezgodski AyeA Nay 0 rt.„/7 jet . i -eZI eA(C, Abstain❑ . Dr. s `j'vis Ay 41 Nay ❑ N , trAbstain 0 4 te Aye d]/-7 Nay ❑ C7L y ' �(:/., Abstain❑ � Rachel Tomas Morgan N AlNay ay ❑ i Abstain❑ rZ4 .�/V ` Hei eidinger Aye, 9�(/T� , - , Nay ❑ ee,, �/if�J ppG��j / Abstain❑ J -2 Name Title Signature Bianca Tirado City Clerk Name Signature Date i James Mueller Approve x rkAe\- VP Veto ❑ ' 0 1( In accordance with IC 6-1.1-17-16(k),we state our intent to isssue debt after December 1 and before January 1 Yes 0 No❑ In accordance with IC 6-1.1-17-16(k),we state our intent to file a shortfall appeal after December 1 and before Yes 0 No 0 December 31 Page 2 of 2