Goshen's 2023 budget approved on first reading

Sep. 21—GOSHEN — The city's 2023 budget has been approved on first reading, with a second, final reading of the budget expected in October.

A total of $60.9 million in budget requests from across all funds were presented to the Goshen City Council for review Monday, a notable drop from the $69.8 million approved for the city's 2022 budget.

A breakdown of the budget's top funds, known as the "Big Four," as compared to the 2022 budget is as follows:

—General Fund: $28.8 million, down from the $30.5 million approved for 2022

—Motor Vehicle Highway: $4.4 million, up from the $3.1 million approved for 2022

—Parks and Recreation: $3.4 million, up from the $3 million approved for 2022

—Public Safety LOIT: $2.4 million, up from the $2.2 million approved for 2022

According to accounting firm Baker Tilly, which handles budgetary oversight for the city, the 2023 budget's "Big Four" account for approximately 92% of the city's payroll and benefits, 77% of supplies purchased for the city, 62% of services and charges, and 49% of the city's capital budget.

RETURN TO NORMAL

According to Goshen Mayor Jeremy Stutsman, the city's nearly $70 million budget for 2022 was the largest in Goshen's history, while the 2023 budget sees the city beginning to return to a budget size more typical of the recent past, which on average has fallen between $55 million and $60 million.

When referencing 2022's larger than average budget, Stutsman noted that it had always been his intention for that significant funding jump to be a temporary thing, as the city in 2021 found itself in the unique position of having the largest cash balances Goshen had seen in decades. That in turn left him to approach the 2022 budget with the belief that it was time for the city to start spending more of that money in order to help bring some of those balances back down.

Stutsman also explained that the state of Indiana and the city's financial advisers recommend that communities keep between two and six months — or 15% to 50% — of cash reserves on hand from year to year. However, he noted that in 2021 the city was sitting on cash reserves of 135%, or just over 16 months.

"Our cash balances had increased well beyond the 50% mark and we needed to spend those down in order to make sure our community members were seeing the benefits of those tax dollars," Stutsman said in his 2023 budget letter to council members. "The cash balances rose so significantly since we pulled back on spending during 2020. This was done since we did not know what would happen with the economy. In 2021, employee shortages began and we experienced prices of goods and services quickly increase due to inflation. The 2022 budget was designed to help us get caught up on projects delayed or postponed.

"We are responsible for millions of tax dollars each year. We must continue to be fiscally responsible and keep our community in a position where we are prepared for hard times," he added. "At the same time, we do not want to save too many of the tax dollars. I believe it is also irresponsible to continue building on cash balances during times we are already well prepared for the bad times."

LOOKING AHEAD

Speaking to the development of the 2023 budget, Stutsman noted that the budget as proposed continues the strategic use of the city's cash balances implemented with the 2022 budget to help reach into areas that have not seen much action in recent years.

"We will be looking at more projects of repaving interior neighborhood streets, upgrading current neighborhood parks by adding new features, looking at new ways to rebuild from blight caused by slumlords, creative ideas to bring new housing to Goshen, and ways to save on current expenses through new programs — i.e. trash pickup and recycling," Stutsman said.

He noted that the budget also includes plans to build on the city's wayfinding system, ensure public safety is operating with the needed equipment upgrades, improve communications with the city's businesses and residents, improve the city website, track the city's assets better and look into new ideas to build a better Goshen.

"It will be important as we move down this path that we keep an eye to our cash balances, protecting that 50% — six month — line, not of each fund but as we look at all funds," Stutsman added. "We may from time to time dip below 50%, but only when we have a plan to rebuild it within a reasonable amount of time. By doing so, we will help to manage our risks and build an even stronger and more efficient budget that our community can continue to rely on through the next decade and beyond."

THE BUDGET

According to Stutsman, a majority of the proposed funding increases included in the 2023 budget are due to raises and other employee expenses, as the budget includes a proposed 3.5% raise for all city staff.

Some of the other proposed changes highlighted by Stutsman include: adding $90,000 to the council's budget to cover the expected costs of the 2023 local election; shifting the wages for the city's Community Relations Commission director position out of the mayor's budget and into the CRC budget; adding additional dollars to the clerk-treasurer's budget to help with file storage as well as the 3.5% raise for employees; new dollars added to the cemeteries budget to hire a third full-time staff member; a modest increase to the Central Garage's budget; and additional funding for the Environmental Resilience department to allow for moving one part-time staff member to a full-time position.

"As we look forward, my administration will work to keep up with the needs of our departments and our community," Stutsman said in concluding his comments on the proposed budget. "We will continue to find ways to maintain our infrastructure, utilities and parks within our allotted budgets. We will continue our work in bettering our carbon footprint and finding ways to improve our environment. We are continuing to work to understand how storms affect us and how to predict and hopefully mitigate our flooding. This will all take continued teamwork of my administration, city staff, elected officials and our community.

"We will watch the tax dollars to ensure they are not being wasted," he added. "We will continue our work to ensure Goshen is a prosperous community that thrives on its diversity and works toward equality so that we continue to build a safe and inclusive community for all."

Stutsman encouraged all council members who have questions, concerns or suggested changes to the proposed budget to contact him in the days prior to the second reading — currently scheduled for Oct. 10 — in order to ensure all voices are heard and issues addressed prior to the final vote.

"This budget will continue to push us even though we are cutting back significantly from 2022," Stutsman said. "I will always remain vigilant in watching the dollars and to ensure we are not doing anything that will put us in a bad financial position.

"As we have time and time again, when things get tight we will assess the situation and make real-time changes to ensure the protection of our city funds," he added. "Our position is strong because of how we have respected the community's tax dollars."

John Kline can be reached at john.kline@goshennews.com or 574-533-2151, ext. 240315. Follow John on Twitter @jkline_TGN.