2001 Comprehensive Annual Financial Report

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Board of Tax Commissioners} for each issuance of general obli ation indebtedness or - g ~ lease purchase} entered into by a taxing unit. In addition, all indebtedness incurred after 1983 no longer receives the 20% state property tax replacement funds mentioned above. A historical view of the City's tax rate and its net assessed valuation has been included ' in the statistical section of this document. Ma`or Financial Accom lishments for 2041 VVe are pleased to announce that we have underspent the 2001 General Fund Ex enditure P Budget by $2,873,044 while General Fund Revenue has exceeded the 2001 Bud et b . g y $1,466,440. This good news rs a direct result of the hard work and never-endin focus on . g expense control by the City s department heads, managers and employees. The additional revenue is a result of increased collections for services provided and improved cash mana ement g procedures, which resulted in more than doubling the budgeted income received on investments. This net $3.9 million excess over budget has provided additional funds for the Ci 's 2002 tY Capital Budget as well as increased cash reserves. The 2001 results are a continuation of past successes. Last year the City was able to announce that it had underspent the 2000 General Fund Expenditure Budget by $2,868,000 while General Fund Revenue exceeded the 2000 Budget by $1,505,000. In 1999, General Fund Expenditure Budget was unspent by $2,890,000 and revenue was exceeded by $2,283,000. In 1998, the General Fund Budget was underspent by $2,625,000, and revenues came in at $1,783,000 more than originally anticipated. This provides evidence that the City's budgets have been prepared on a conservative basis, and they have provided adequate resources to fund services provided. All cities have limited resources and, thus, limited number of programs and services that can be provided. VVe are proud to say that we have done well in terms of maintaining a solid, financially sound organization by spending within our means. The City of South Bend's overall financial stability continues to remain very strong. Grace again the City's "AA" credit rating from Standard & Poor's and Fitch IBCA was reaffirmed when the City issued new debt for a new Public works Service Center. The City also refunded two bonds in 2001, a Sewage Utility and Redevelopment Authority Revenue Bond. Fitch's press release stated that "the rating reflects the City of South Bend's solid financial position, sound and diversified economic base, and low direct debt levels.. The City's financial performance is consistently strong, with conservative budgeting and operating surpluses supporting the long record of sizable undesignated general fund balances." Standard and Poor's credit profile identified the City's strengths to include "a diverse local economy" and a "history of strong liquidity and goad f nancial management." Moody's Investor Services alsa reaffirmed its previous rating of A2, which is a rating that the City is pleased with; however, the City's goal is to improve this rating in the near future. The City continues to maintain adequate cash reserves not only in its General Fund which remained at 18% of the current year's operating expenditure budget as of the start of this year after setting aside funds for the 2002 Capital Budget} but also in its Special Revenue and X11