The city of South Bend has a surplus of $1.7 million after 2015, but Mayor Pete Buttigieg is already looking at potential budget issues in 2020.

A state property tax restriction that will take effect in 2020 will cause the city is expecting to lose $2.54 million in revenue, according to the mayor’s office.

Buttigieg is urging the South Bend Common Council to start preparing for that loss in 2016 to soften the blow on the city’s funds.

The city spent $293 million in 2015, with most of the money going to public safety, infrastructure and and utilities. The city also employs 64 fewer people than it did when Buttigieg took office in January 2012 because of changes at the Potawatomi Zoo and the city’s 911 center.

Buttigieg is scheduled to join Jon Zimney live in studio on 95.3 MNC at 7:10 a.m. Thursday.