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The 1925 and 193 7 Pension plans are funded through a combination of property taxes levied by the
<br />City and distributions from the State of Indiana Pension Relief Fund. As a result of State statutes
<br />that created these funds, the City is legally prevented from funding them in any other way than a
<br />"pay, as-you-go" basis. As of January of 2005, the City received an actuarial survey on these funds to
<br />pprovide the proper disclosures required by generally accepted accounting principles. At December
<br />31, 2006, the net assets in the 1925 Police Officer's Pension and 1937 Firefighter's Pension funds
<br />were $1,188,997 and $1,624,421, respectively.
<br />Notes to the financial statements. The notes to the financial statements provide additional
<br />information that is essential to have a full understanding of the data provided in the government-wide
<br />and fund financial statements.
<br />Other information. In addition to the basic financial statements and accompanying notes, this
<br />report presents certain supplementary information. The combining statements referred to earlier in
<br />connection with non-ma or governmental, enterprise, internal service and fiduciary funds are
<br />presented immediately a~er the basic financial statements.
<br />Government-wide Financial Analvsis
<br />The financial analysis will focus on the net assets (Table 1) and changes in net assets (Table 2) of the
<br />City's governmental and business-type activities.
<br />As noted earlier, net assets may serve over time as a useful indicator of a government's financial
<br />position. At December 31, 2006, the City's assets exceeded liabilities by $366,010,498, an increase
<br />of $7,691,643 from 2005. The maj ority of this increase can be attributed to an increase in Water and
<br />Sewer rates during 2006 which helped increase the net assets from business-type activities. by
<br />$5,846,999. The largest portion of the City's net assets, $306,180,110 or 84%, reflect its investment
<br />in capital assets (e.g. land, roads, storm sewers, water and sewer systems, buildings and equipment),
<br />less any related debt used to acquire those assets that is still outstanding. Capital assets are used to
<br />provide services to citizens, and they are not available for future spending. Although the investment
<br />in capital assets is reported net of related debt, it should be noted that the resources needed to repay
<br />this debt must be provided from other sources, since the capital assets themselves cannot be used to
<br />liquidate these liabilities.
<br />City of South Bend
<br />Net Assets
<br />Table 1
<br /> Governmental Business-Type
<br /> Activities Activities Total
<br /> 2005 2006 2005 2006 2005 2006
<br />Current and other assets $146,134,848 $163,711,075 $31,884,533 $38,455,791 $178,019,381 $202,166,866
<br />Capital assets (net) 292,361,379 281,074,888 152,993,751 160,195,768 445,355,130 441,270,656
<br />Total assets .438,496,227 444,785,963 184,878,284 198,651,559 623,374,511 643,437,522
<br />Long-term liabilities
<br />outstanding 180,566,351 181,691,782 55,792,377 62,446,829 236,358,728 244,138,611
<br />Other liabilities 21,139,265 24,458,926 7,557,663 8,829,487 28,696,928 33,288,413
<br />Total liabilities 201,705,616 206,150,708 63,350,040 71,276,316 265,055,656 277,427,024
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