Build the Budget with the City of South Bend! View 2023 budget materials Thank you for submitting your feedback for this year’s City budget process! View 2023 budget (coming soon!) Read 2023 Build the Budget Report (pdf) See 2023 budget files gET INVOLVED Every year, Build the Budget invites South Bend residents to share their thoughts on next year’s City budget. The Mayor, Common Council, City departments, and residents work together to craft a plan for city spending. What do you care about? Streets? Public safety? Parks? Your voice matters. Build the Budget! Take the budget survey Leave a 311 voicemail Attend budget hearings & events Budget resources A special thank you to the Common Council for their contribution to the budget process each year! About the budget Watch budget intro videoRead budget FAQsRead 2022 City budget report financial transparency resources Document repositoryFinancial dashboardFinancial open data2023 Budget documents INTRODUCTION TO THE CITY BUDGET Learn about the City budget process in this introduction video! Attend meetings and events community events Come talk with City staff at these community events to learn more about this year’s budget process! Thu 8/18/22 (3 to 6pm) – Francis Branch LibrarySat 8/20/22 (11 to 3pm) – Art BeatThu 8/25/22 (11am to 6pm) – Western Branch LibrarySat 8/27/22 (11am to 5pm) – LaSalle Branch Library Thu 9/1/22 (11am to 5pm) – Centre Branch LibraryThu 9/1/22 (6pm to 7:30pm) – City 2045 Plan Kick-Off at the Technology Resource CenterFri 9/2/22 (6pm to 8pm) – First Fridays in Downtown South BendSaturday 9/3/22 (11am to 5pm) – River Park Branch LibrarySaturday 9/10/22 (11am to 5pm) – Tutt Branch LibrarySaturday 9/17/22 (11am to 5pm) – German Branch Library Saturday 9/24/22 (11am to 5pm) – Main or Community Learning Center mayor’s office events Come talk with the Mayor’s Office to learn more about this year’s budget process! Tue 8/9/22 (6 to 8pm) – Meet the Mayor at Indiana University Grill, 1700 E Mishawaka Avenue, South Bend, IN 46634Thu 9/22/22 (6 to 7:30pm) – Build the Budget Community Advisory Group (CAG) Meeting at the Martin Luther King Jr. Community Center, 1522 Linden Ave, South Bend, IN 46628 Budget HEARINGS During public budget hearings, the Mayor, the City Controller, and department heads will present department budgets to the Common Council. Loading view. There were no results found. 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There are no events on this day. There are no events on this day. There are no events on this day. There are no events on this day. There are no events on this day. View Calendar Frequently Asked Questions (FAQs) About the budget What is the City’s budget and why is it important? The City’s annual budget outlines how the City will spend public funds. Residents, the South Bend Common Council, and the Mayor set strategic priorities for these funds. The budget isn’t a mandate to spend, so the City can spend less than the budgeted amount. It establishes the legal highest amount the City can spend on various priorities. In other words, the City cannot exceed its spending budget. The City organizes the budget into services such as fire response, police patrol, or trash pickup. When does the budget process start and end? The budget process usually starts in May and ends in October. In October, Common Council passes a budget ordinance for the following year. May, June, July The City develops drafts of the budget. August, September, October The City organizes events for residents to share input on the budget. City administration also presents the budget to Common Council during public hearings. October Common Council passes a budget ordinance for the following year. How does the City categorize spending in the budget? The City categorizes spending in the budget into Baseline Spending and Strategic Spending. These categories ensure investments in the budget follow City strategic priorities Baseline Spending Baseline Spending funds essential operations at the City to keep residents safe and healthy. It also includes spending that the City already committed to. Examples are servicing debt or maintaining current capital assets. Around 85% of the City’s budget is Baseline Spending. During the budget process, the City doesn’t question if these expenditures are necessary. Instead, the City determines the most efficient funding structure for these expenditures. Strategic Spending Around 15% of the City’s budget is Strategic Spending, which supplements essential operations. Strategic Spending helps our residents not only survive but thrive in the City. The City determines Strategic Spending by aligning investments with City priorities. This is in contrast to Baseline Spending, which focuses on essential services. How does the City fund its operations? The City generates revenue to support expenditures through tax revenue and charges for service Tax Revenue Property taxes make up about 25% of all City revenue and primarily fund most core government operations. Core operations include Police, Fire, Parks, and administrative departments. Income taxes make up about 11% of City revenues. Income taxes primarily fund other government operations. Other operations include those from Neighborhood Services and Enforcement, Community Investment, and other departments. Smaller tax revenues, such as gasoline tax, wheel tax, and liquor excise tax, support road repair and other priorities. Charges for Services Charges for Services make up about 30% of the City’s total budget. Services include water and wastewater utilities, solid waste (trash collection), the City’s Century Center convention center, and Morris Performing Arts Center. Does the City have a “balanced budget”? The City is committed to the passage of a balanced budget. A balanced budget promotes good fiscal management and ensures adequate cash on hand. Revenue (amount the City generates) is equal to or greater than estimated expenditures (amount the City spends) in a balanced budget. This definition excludes non-operating revenues and expenditures. For example, these may be large, one-time capital expenditures funded with debt. Common Council and the Mayor may pass a budget amendment to rebalance the budget after it gets adopted. This happens when estimated revenue decreases (City generates less than expected) or estimated expenditures increase (City spends more than expected). How many employees does the City have? As of the end of 2019, the City had 1,099 full-time employees. Roughly half of City employees are police officers or firefighters. What are “funds” and why does the City have them? The City maintains over 100 funds for various purposes. You can think of funds as separate accounts that account for specific functions. The City has funds because the City receives different sources of revenue. Many of these sources have restrictions on how the City can use them. Funds ensure the City complies with these restrictions. For example, the law requires the City to use gasoline tax revenue for street and road repair. The City will account for it apart from other revenue sources. Funds ensure expenditures of gasoline tax revenue comply with the restrictions. How much debt does the City have? The City is committed to maintaining a manageable debt level. Debt financing of large-scale capital projects and ongoing capital maintenance is vital to accomplishing the City’s strategic priorities. Large-scale capital project example – Rebuilding Howard Park Ongoing capital maintenance example – Replacing City vehicles and equipment The City uses debt to help accomplish large-scale projects. This is one of the most critical ways that the City reinvests in the community and community priorities. However, the City recognizes that debt must be managed responsibly. Before issuing new debt, the City analyzes existing reserves and expected future revenue that can cover debt service payments. These analyses help maintain the City’s AA bond rating, one of the highest in Indiana. The City’s bond rating measure our credit-worthiness, like a person’s credit score. A high bond rating helps the City can get affordable rates to finance large purchases. As of 12/31/2019, the City had roughly $215 million in outstanding debt. Annual debt service payments in 2020 total about $33 million (about 9.4% of all expenditures in the City’s budget). How much does the City have in cash reserves? As of 12/31/2019, the City had around $290 million in cash on hand. About $45 million was in the City’s General Fund, which accounts for most core governmental operations. Cash reserves ensure the City can respond when there’s a temporary revenue shortage. An example is during recessions when tax revenue decreases. Get involved How can I be involved in the City’s budget process? Your voice matters! The City’s budget depends on understanding what matters to you as a resident. Take the budget survey at southbendin.gov/budgetsurvey2023 See and attend upcoming budget meetings during August, September, and October at XX View past budgets Where can I get a copy of the City’s budget? View past City budgets in the City’s online document repository at http://docs.southbendin.gov/WebLink/0/fol/6604/Row1.aspx View past feedback Where can I find the results of the budget surveys? Read the 2022 City budget report on the City website at https://southbendin.gov/wp-content/uploads/2021/09/Final-2022-Budget-Report-9.27.21.pdf Thank you to all the residents who participated in Build the Budget last year! 2022 was our largest budget feedback collection effort to date.