Fort Wayne city departments anticipating a 4% or higher budget increase for 2020 will be asked to appear before the City Council next month to justify their spending, Councilman Russ Jehl said Tuesday.

Speaking after a budget presentation from City Controller Garry Morr, Jehl – who is the council's Finance Committee chair – outlined the budget discussion process for the coming month. Budget discussions will begin Tuesday, and final passage of the budget is expected Oct. 22.

Under state law, the City Council can only make cuts to a proposed city budget before granting its final approval.

During his presentation, Morr told the council that the city expects to bring in $183.9 million in revenue, with planned expenses totaling $180.8 million. That includes a 3% raise for all city employees, Morr said.

Morr estimated the cash balance going into 2020 will be about $25 million.

About 75% of the city's expenses are for personnel, Morr said, leaving 3.8% for supplies, 16.6% for services, 0.1% for capital and 4.6% for infrastructure.

By division, public safety will account for the lion's share of expenses in 2020 at 69.3% of the total budget. The parks department will receive 10.7% and Public Works will receive 7.5%. Community Development will receive about 3.3% of the total budget, and general government expenses will account for about 9.2%.

At the behest of Councilman Tom Didier, R-3rd, Morr also discussed the city's bonding status, noting that the city is paying its debts.

“In this budget, the debt reduction, the principal reduction is just over $20 million,” Morr said.

Morr said future budgets will benefit as bonds are paid off, because more funds will be available for pay-as-you-go projects.

According to the debt service portion of the city's 2020 budget book, several bonds are expected to be paid off before 2023. That includes two redevelopment revenue bonds, which are expected to be paid off by 2022.

Additionally, 2005 mortgage bonds for two fire stations, the 2007 Harrison Square parking garage lease and a 2015 equipment lease are all expected to be paid off by 2021. Bonds for the Public Safety Academy and Citizens Square will be paid off by 2023.

Although the city is focusing more on pay-as-you-go, the bond market is very attractive if officials choose to go that route, Morr said.

“The bonding rates, the borrowing rates, some of them are between 1% or 2%,” Morr said. “It is a very attractive market if we're so inclined to borrow, but we haven't had to.”

Overall, Morr said the city has planned well and is positioned to weather any kind of economic downturn that might be on the horizon.

Morr reiterated that the city's 2020 tax rate will decrease by about 2%. That doesn't necessarily mean residents' overall tax bills will decrease, but the city's portion of it will drop a little. Property tax bills consist of taxes by city, county, library, schools, townships and other taxing units.

“I can't say what the schools are going to do, or the other governmental units I mentioned, but the city's share will be going down,” Morr said.

In other business, the City Council tabled a proposed professional services contract with Houseal Lavigne Associates for development of the Allen County/Fort Wayne Comprehensive Plan.

The $667,060 contract, which the city would split with the county, would redevelop and update the comprehensive plan, which was last updated in 2007.

According to documents filed with the City Council, the Governing Board of the Fort Wayne and Allen County Joint Land Use Department determined that elements of the 2007 plan were outdated or have been accomplished.

Speaking to council, Director of Community Development Cindy Joyner said the 2007 plan lacked a clear implementation plan. The new comprehensive plan will include provisions for implementation, she said.

Passage of the contract was postponed until Oct. 8 in order to give council and city officials time to work out the best way to pay for Fort Wayne's $333,530 share.

dgong@jg.net