7pm, 4th Floor County-City Building, All Present

* UNANIMOUSLY PASSED - $ 1,675,589 9 Year TAX ABATEMENT
* UNANIMOUSLY PASSED - $ 7,271,433 ZOO ENTRANCE DEBT
* AGREED TO GIVE ZOO $12,150,000 over 15 years
(All other items on the Agenda also passed Unanimously)
NEW TAX LEVY RATES FOR 2019
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Bill # 18-53 National Distribution Centers, LLC TAX ABATEMENT
RESOLUTION for Phase ll of Lot 5 US 31 Industrial Park, 9 Year Abatement
* Wants to build a 232,000 sq ft warehouse on 20 acres of land
* They are a Food Transport company
* They have 9K Trailers and 4K Trucks
* Currently renting warehouse space from Lippert Components
* Says they planned to stay in the SB because of their workforce here and it would take a lot of effort to re-hire employees in a new location
* Inside River West TIF, but not receiving TIF dollars at this time
* Location is in Portage Pairie
* Pay $1M for Land, $13M for Building, $4M Machinery, $100K Other
* They plan to ask for a second Abatement on the $4M of Machinery
* Current Owner Stanz Cheese
* Land value $23,500 (Farm Land) 21.18 acres
* 1840 N. Commerce Drive, South Bend, 46628
* Year 1 - Abatement = 100% $ 311,431
* Year 2 - Abatement = 90% $255,067
* Year 3 - Abatement = 90% $255,067
* Year 4 - Abatement = 80% $198,702
* Year 5 - Abatement = 80% $198,702
* Year 6 - Abatement = 70% $142,337
* Year 7 - Abatement = 70% $142,337
* Year 8 - Abatement = 60% $ 85,973
* Year 9 - Abatement = 60% $ 85,973
TOTAL ABATEMENT = $ 1,675,589
Source: Council Meeting Packet information
Suggestions: Put Solar on the roof with Inovateous (local SB company that specializes in solar on warehouses), capture and use gray water and use native plantings.
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Bill #38-18 LEVING TAXES and FIXING PROPERTY TAX RATES for 2019
* General Fund Taxation Rate $3.6535 on each $100 of property
* Park and Recreation Fund Rate $0.8597 on each $100 of property
* Cummulative Capital Development Fund Rate $0.0385 on each $100 of property
* Park Bond Debt Service Fund $0.0833 on each $100 of property
Total Civil City Rate of $4.6350
SPECIAL NOTE: The "Substitute Bill" is not posted for the public to see online at this time. The numbers above were the ones posted in advance of the meeting. 
This one is continued to October 8th.
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Bill #39-18 APPROVING EXPENSES of Departments and Funds for the City
This sets up and moves funds from 201 to 751 for the coming year
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Bill #40-18 Appropriating for ENTERPRISE FUNDS
This sets up and moves funds from 287 to 672 for the coming year which include EMS, Building Fund, Parking Garages, Solid Waste, Waste Water, Water, Sewage
* Discussion was about adding $2/month to Residential Water Bills to assist with Stormwater/Flooding damages
* Eric Horvath, Director of Public Works, says this will not cover all the expenses, but help offset them.
* Councilwomen Jo Broden asked if $4/month might be more realistic
* Mr. Horvath responded the $4/month might be a burden on many, but that surrounding areas are at $5/month rates.
Water rates are regulated by the State and the City regulates Waste Water Rates, so adding the fee there would be easier.
* Further discussion on if rates would be based on ability to pay
* Mr. Horvath explained the Public Works currently has a list of "Top 10" backlog priorities that amount to about $1.2M
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Bill #41-18 TRANSPO Budget for 2019
* See Michiana Observer post on "How Much Does Transpo Cost?"
NOTE: They voted to accept it, but it violated the "10 Day Rule" so they will vote to accept it on October 8th
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Bill #42-18 September 2018 Appropriation Ordinance - Civil City Funds
* $672,857 FROM ECONOMIC DEVELOPMENT STATE GRANT (#210), 
* $1,000,000 FROM DCI GRANT FUND (#212), 
* $5,000 FROM GIFT/DONATION/BEQUEST FUND (#217), 
* $699,700 FROM LIABILITY INSURANCE PREMIUM RESERVE (#226), 
* ($960,000) FROM LOIT 2016 SPECIAL DISTRIBUTION (#257), 
* ($337,632) FROM LOCAL ROAD & BRIDGE GRANT (#265), 
* $28,100 FROM ECONOMIC REVENUE BOND (#281), 
* ($55,000) FROM COVELESKI STADIUM CAPITAL (#401),
* ($124,050) FROM UDAG (#410), 
* $28,100 FROM REDEVELOPMENT GENERAL (#433),
* $650 FROM SMART STREETS DEBT SERVICE (#756).
NOTE: Numbers inside a bracket ( ) are negative numbers. The number at the end is the FUND #. These are copied from the handout and they type them in ALL CAPS.
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Bill #43-18 September TRANSFER ORDINANCE
* Move $210,000 from one Century Center account to another
* Miscellaneous charges in the Golf Division of the Parks Dept
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Bill #44-18 ISSUE BOND FOR THE ZOO ENTRANCE
* Mayor got the Council to vote unanimously to issue $4,205,000 of debt to build a new entrance to the Zoo that will have a party room for kids and ADA bathrooms.
* $2.2 M of this is to repair the Zoo so it can meet AZA (Association of Zoos and Aquariums) certification in June. There are rusted cages, aligator decking issues, roof repair, fencing, etc.
* $1.5M will go towards a bigger gift shop, a party/education area, bus loading area
* South Bend Tribune anounced this $3.7M commitment well before the vote, so they held a ground breaking ceremony. 
(Rubberstamping by the Council was a given)
* Funds are also needed so the Zoo can buy and bring in a Griaffe to make more money. (A giraffe feeding station brings in added money.)
* Debt on the bond will be paid off February 1, 2039, (It will take 21 YEARS to pay off $4.2M)
* Bond Interest Rate not to exceed 6% annually 
* Crowe will do the Debt Offering and Barnes & Thornburg will do the legal setup of it.
* Payment will be out of EDIT Revenues
* City also signed an agreement with the Zoo agreeing to pay them $810,000 a year for the next 15 years on top of this Bond = $12,150,000 
NOTE: With AA2 Bond Rating, it should be at 2%, but Eddy Street Commons ll came in at 5%
REAL COST OF THIS BOND: (Approximately) for borrowing $4,205,000
Payments of $363,836.60 per year (final pmt slightly lower). Total payments over 20 years = $7,271,433.00. Total Interest over 20 years = $3,071,731.96. 
(This could be higher if there is Capitalized Interest and additional fees.)
City has cost the taxpayers an extra $3M in interest instead of paying directly.
TAXPAYER COMMITMENT = $4,205,000 Principal + $3,071,732 in Interest + $12,150,000 Assistance = $19,426,732 to the Zoo (As close as we could approximate)
NOTE: By making this a Bond it cost taxpayers 73% MORE and meant less for other vital community needs
CITIZEN COMMENTS: 
* Advised the Council they need to revisit their priorities for things like the $8M needed to repair 80 lane miles of roads
* Animal Advocate groups think the Zoo needs to close, not be further funded
* Parks was given millions of dollars already, putting the City in substantial debt. The Zoo needs to be funded out of that debt instead of taking on new debt.
* Residents have other priorites
* City does not need to take on debt and interest for this project. Zoo was supposed to be self-sustaining and separated from the City.
* It was suggested the Council limit the length of the bond to 10 years and 3%. This was rejected. If they had limited to these parameters it would have been:
(Approximately) $693,466 in interest instead of $3,071,732, a SAVINGS of $2,378,266.
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Bill #36-18 1939 and 1947 CHARLES STREET ZONING
* Business needs to expand their parking area 
* Plans to add additional fencing to keep business activity from disturbing the surrounding homes
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Bill #37-18 CHANGING THE FLOOD PLAN, Chapter 21, Article 14
* Change in Lot Design Standards so instead of following standard designs like defined street widths, street surfaces, how far apart houses and buildling can be from each other, the Board gets to decide without regulation or public input.
* They can decide on any curb or street specifications they want. (2) All streets shall be surfaced and improved in the manner determined by the Board and shall conform to the latest standards adopted by the Board."
* Changes how far away sidewalks need to be
* Lets them determine how trees are planted
* Alleys shall be at the discretion of the Board
* Minimum right-of-way widths of all streets are at the discretion of the Board
* Removes, "If the subdivision is to be located in a flood hazard area, the subdivider's registered land surveyor shall forward pertinent plans and materials to the Department of Natural Resources for review and comment."
* SECTION XI. Chapter 21, Zoning, of the South Bend Municipal Code, Article 14, Subdivisions, Section 21 -14.06(c)(1)
Removes "If the subdivision replat falls within a designated flood hazard area, the subdivision replat shall be reviewed by the Department of Natural Resources in accordance with section 21-14.03(G)(1) of this article:"
NOTE: In summary, they get to decide whatever they choose, not follow prescribed parameters and not have to report developments in floodplain areas.
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FIRST READINGS FOR:
Bill #45-18 Mayor's Salary Budget $110,885 for the Mayor
Bill #46-18 Common Council Member's Salary Budget $19,799 for Each Council Member
Bill #47-18 City Clerk's Salary Budget $72,318 for the Clerk
Bill #48-18 Teamster Budget (Negotiated)
Bill #49-18 Police Department Salary and Fringe Benefit Budget (Negotiated)
Bill #50-18 Fire Department Salary and Fringe Benefit Budget (Negotiated)
Bill #51-18 Non-bargaining Employees Wages 
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Bill #52-18 DRONES - Adding Article 15, Sections 14.157 to and including 14.159 of Chapter 14 on the operation of UAS (Unmanned Aircraft Systems) 
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Bill #53-18 Setting up 131 E. Tutt Street as a WINTER AMNESTY LOCATION FOR THE HOMELESS
* Change Zoning to "Group Resident" in a Mixed Use District Under Chapter 21 - 09.02(d)
* Chosen because it is near other Homeless Resources
* Owner Mathews 121 Tutt LLC
* Contact: David Vanderveen, Executive Director, HOPE Ministries, 574-235-4150
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Bill #18-55 ZONING APPEAL for 1715 S. Dale and 1717 S. Dale
* Owner David Njoroge, 2010 Investment Group LLC, 3131 Springbrook Drive, SB
* Plans to build two family Duplex Townhouse on these two lots
* 68' x 80' lot size
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Bill #18-56 ZONING APPEAL for 340 E. Colfax Avenue
* Lot #1 of the plat of "Seitz Park Minor Subdivision, 1.75 acres
* University of ND hydro-dam electric utility facility

PRIVILEGE OF THE FLOOR:
Sue Kesim suggested creating a program for Seniors on fixed income living in their own homes in high crime areas be given home alarms like "SimpiSafe". Those who qualify could be identified through Real Services. The Fire Department could help install them like they do for the smoke detectors. 
She felt this would help Seniors feel safer in their homes.
#MichianaObserver #CivicMedia

2017 - $10,357,759
2018 - $10,662,269 (Estimated)
2019 - $10,617,606 (Requested)
They currently have 117 Employees and they have a collective bargaining contract that ends in November of 2019
49 Fixed Route Buses
17 Paratransit Vans give about 65,000 rides per year and that is expected to increase 10%
A new scheduling software is expected to increase accuracy of pickup and dropoff times.
K -12 Ridership is up to 27,571
More Bus Shelters are going up this year
Revenues Expected in 2019:
Local Taxes 36%
State Assistance 19%
Federal Operating Assistance 14%
Passenger Fares 13%
"Passenger Revenue / Ridership continues to trend down with a strong economy / low unemployment"
Lease Revenue 2%
Advertising 1%
Expenses Expected in 2019:
Wages 52%
Benefits 23%
Materials/Supplies 9%
Fuel Expense 7%
Services 4%
Utilities/Insurance 3%
Misc Expenses 2%
Buses for Notre Dame games are sponsored, so they do not cost the taxpayer.
#MichianaObserver #CivicMedia

SOUTH BEND COMMON COUNCIL MEETING on Monday is to request 11 TAX ABATEMENTS and take out a NEW BOND for $4.2M for a Zoo Entrance.

NOTE: In the past 7 years there have been $117M in TAX ABATEMENTS given. The Mayor granted TAX ABATEMENTS of
$36M in 2017
$25.6M in 2016
$19M in 2015
$15.4M in 2014
$18.4M in 2013.
There were 64 $0 / 10 year Abatements up to 2018, which means they pay ZERO taxes for a decade, so the impact will be for a long time.

COMMUNITY INVESTMENT - Councilman Gavin Ferlic, Chairperson, James Mueller, Community Investment Director
1. Bill # 18-42 Modifying and Reconfirming Resolution for Historic JMS Building - 8 New Jobs, 10 YEAR TAX ABATEMENT
2. Bill # 18-43 Modifying and Reconfirming Resolution for JSK Development (Ireland
Hospitality/Holiday Inn Express) - 17 New Jobs Got 2 YEAR TAX ABATEMENT and now wants 6 more YEARS TAX ABATEMENT
3. Bill No# 18-44 Modifying and Reconfirming Resolution for JSK Development (Southhold/Courtyard
Marriott Downtown) - 38 New Jobs, 9 YEAR TAX ABATEMENT and now wants an ADDITIONAL 3 YEAR TAX ABATEMENT
4. Bill # 18-45 Modifying and Reconfirming Resolution for JSK Development (Southhold/Hall of
Fame) - 2 Year VACANT BUILDING ABATEMENT - (HALL OF FAME BUILDING) 
5. Bill # 18-46 Modifying and Reconfirming Resolution for RDistrict One (Studebaker Building 84) - 19 New Jobs, 10 YEAR TAX ABATEMENT and now wants 2 MORE YEARS TAX ABATEMENT
6. Bill # 18-47 Modifying and Reconfirming Resolution for Imagineering Enterprises (Personal
Property) - 5 YEAR TAX ABATEMENT
7. Bill # 18-48 Modifying and Reconfirming Resolution for Imagineering Enterprises (Real Property) - 25 New jobs, 6 YEAR TAX ABATEMENT
8. Bill #. 18-49 Modifying and Reconfirming Resolution for Tower at Washington (Hotel) - 45 New Jobs, 10 YEAR TAX ABATEMENT
9. Bill # 18-50 Modifying and Reconfirming Resolution for Tower at Washington (Parking Garage) - Jobs ?, 10 YEAR TAX ABATEMENT
10. Bill # 18-51 Modifying and Reconfirming Resolution for Tower at Washington (Retail) - Jobs ?, 10 YEAR TAX ABATEMENT
11. Bill # 18-52 Modifying and Reconfirming Resolution for Tower at Washington - Jobs ?, 10 YEAR TAX ABATEMENT

The Assessor's process is to have all Form 11 Assessment requests by January 1st. If they submit the request after that date, they Assessment will be for the following year. These companies did not file their Form 11's on time and now want exceptions and 6 to 10 year Tax Abatements.

NOTE: ROI (Return on Investment) Reports were NOT included in the meeting packets and NO DOLLAR AMOUNTS stating the tax decrease impact were included in the packet which would inform the Council and Citizens on the financial impact. 
Also, under Section 2-84-14(h) the company is to repay the abated taxes if they do not meet the agreed upon goals within 90 days after being notified.
After careful research, we found many companies did not produce over 10 jobs and 140 Abatements given created NO NEW JOBS at all. We do not know if the City has used this "claw back" clause to get back the taxes owed to the Citizens.
It is "best practice" to give Abatements - OR - TIF (Tax Incremental Financing) where the developer gets millions of tax dollars to rehab an area, not both. When TIF monies have been given the Taxpayer has already given and the taxes is where they get their return.
TIF Funds are currently showing DEFICIT AMOUNTS. If TIF is not payable, the secondary source of repayment is Property Taxes.
You can see the analysis and copies of the original City reports at: www.michianaobserver.com/abatement-reports.html

Bill #42-18 Appropriating Additional Funds
Bill #43-18 Department Budget Transfers

Bill # 44-18 The City wants to issue a Bond for a Debt amount of $4,205,000 to put a new entrance at the Zoo. The Zoo is now a seperate 501(c)3.
NOTE: PARKS recently received millions in funding in 2017 and now want to add another Bond.

OTHER NEWS:
At this time the Mayor has informed the NRC, Neighborhood Resources Connection, Funding will be cut in half to $50K leaving NRC to cut back on its programs for the neighborhoods.

The real cost of "Smart Streets" is $34M when you add in the interest and annual payments of $1.7M until 2037. $21M was what was available after the bond was issued. There was an additional $1,429,996 charged in Capitalized Interest since the City did not pay on the Bond for 2.5 years, which reduced the amount available to use on the project down from $25M.
For a complete report: http://www.michianaobserver.com/debt-service-smart-streets.html

A winter amnesty program for the Homeless has not been finalized, but there have been several community meetings.

TUESDAY there will be a **SPECIAL** Council meeting to discuss City debt, Cash Reserve decreases ($87M in 3 years) and the $60M+ Deficits. County-City Building 4th Floor at 5 pm.

LEARN MORE ABOUT THE CITY BUDGETS AND THE DEFICITS:

The City spent $441,274,160 last year and ended up with a $62,590,868 DEFICIT in 2017 and is headed for $63,028,220+ DEFICIT for 2018! Yes, DEFICITS OVER $60 MILLION two years in a row.
Cash Reserves are DOWN by $87,242,991 That is $87 MILLION. They had to pay $43,010,498 just on Debt Service (Prin + Interest). Unlike the Federal govenment, the City cannot print money.
Source: Page 51 of the 2018 City of South Bend Adopted Budget Book  http://docs.southbendin.gov/WebLink/0/edoc/118091/0.%202018%20Budget%20Book.pdf  
They are currently deciding on the 2019 Budget.
If you are concerned, contact the Mayor and your Council Members.

What did they spend the $ on? See the third column.
http://www.michianaobserver.com/cash-and-investments-2017.html
Source: Indiana State Gateway

Curious about all the ways the City of South Bend brings in Revenue? 
http://www.michianaobserver.com/detailed-receipts-2017.html 
Source: Indiana State Gateway

What Debt did the City owe on Bonds/Leases in 2017?
http://www.michianaobserver.com/debt-report-2017.html
Source: Indiana State Gateway

Mayor's Office Budget: http://www.michianaobserver.com/mayor-budget.html

City Clerk's Office Budget: http://www.michianaobserver.com/clerk-budget.html

Common Council's Budget: http://www.michianaobserver.com/common-council-budget.html

Learn more about the CIRCUIT BREAKER coming up: https://www.in.gov/dlgf/9644.htm
NOTE: Look for "South Bend Civil City" and further down, the Circuit Breaker on the Libraries.

Find out the real cost of "Smart Streets": http://www.michianaobserver.com/debt-service-smart-streets.html
Taxpayers will be paying on it until 2037.

Summary for 7 years of Tax Abatements: http://www.michianaobserver.com/abatement-reports.html
The Mayor granted over $117 MILLION in Tax Abatements. He granted $36 MILLION just last year.
$36,093,201 to 88 companies in 2017. Although Abatements are supposed to create jobs, many created less than 10 and 140 created NO NEW JOBS at all. 64 companies got $0 / 10 Year Abatements which means they pay ZERO taxes for a decade.

Questions in the NOTES Section are from the 6 Citizen Budget Committee Members. We encourage you to come in person to the Budget Meetings to be part of the process.
As the committee reviews the Budget presentations, more will be put up on the website. http://www.michianaobserver.com/budget-links.html

The City spent $441,274,160 last year and ended up with a $62,590,868 DEFICIT in 2017 and is headed for $63,028,220+ DEFICIT for 2018! Yes, DEFICITS OVER $60 MILLION two years in a row.
Cash Reserves are DOWN by $87,242,991 That is $87 MILLION. They had to pay $43,010,498 just on Debt Service (Prin + Interest). Unlike the Federal govenment, the City cannot print money.
Source: Page 51 of the 2018 City of South Bend Adopted Budget Book
http://docs.southbendin.gov/…/118091/0.%202018%20Budget%20B…
They are currently deciding on the 2019 Budget.
If you are concerned, contact the Mayor and your Council Members.
What did they spend the $ on? See the third column.
http://www.michianaobserver.com/cash-and-investments-2017.h…
Source: Indiana State Gateway
Curious about all the ways the City of South Bend brings in Revenue? 
http://www.michianaobserver.com/detailed-receipts-2017.html 
Source: Indiana State Gateway
What Debt did the City owe on Bonds/Leases in 2017?
http://www.michianaobserver.com/debt-report-2017.html
Source: Indiana State Gateway
Mayor's Office Budget: http://www.michianaobserver.com/mayor-budget.html
City Clerk's Office Budget: http://www.michianaobserver.com/clerk-budget.html
Common Council's Budget: http://www.michianaobserver.com/common-council-budget.html
Learn more about the CIRCUIT BREAKER coming up: 
https://www.in.gov/dlgf/9644.htm
NOTE: Look for "South Bend Civil City" and further down, the Circuit Breaker on the Libraries.
Find out the real cost of "Smart Streets": 
Taxpayers will be paying on it until 2037.
http://www.michianaobserver.com/debt-service-smart-streets.…
Summary for 7 years of Tax Abatements: 
The Mayor granted over $117 MILLION in Tax Abatements. He granted $36 MILLION just last year.
$36,093,201 to 88 companies in 2017. Although Abatements are supposed to create jobs, many created less than 10 and 140 created NO NEW JOBS at all. 64 companies got $0 / 10 Year Abatements which means they pay ZERO taxes for a decade.
http://www.michianaobserver.com/abatement-reports.html
Questions in the NOTES Section are from the 6 Citizen Budget Committee Members. We encourage you to come in person to the Budget Meetings to be part of the process.
As the committee reviews the Budget presentations, more will be put up on the website. http://www.michianaobserver.com/budget-links.html