2001 Comprehensive Annual Financial Report

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distinct activities accounted for in both Enterprise and Internal Service funds The Enterprise Fund operations include the fallowing; the City's downtown parking ara es, .. .. g g water utility services, wastewater ut~l~ty services, sold waste services, the Century Center, the consolidated St. Joseph CountylSouth Bend Building Department and, Blackthorn Golf Course. The Internal Service Fund operations include the City's self funded liability insurance ro am, P ~ the City's self-funded employee benefits program, and Central Services ~a department that accounts for the expenses related to fuel, vehicle repairs and various other services and supplies provided to City departments on acost-reimbursement basis}. Fiduciar Funds. The City's fiduciary duties are accounted for in both Trust and Agency Funds. The primary trust funds are the Police and Fire Pension Funds explained below}. The Agency Fund is for payroll and related employee deductions. Pension Trust Fund ~ erations. Most City employees are covered by the Public Employees Retirement Fund and the 1977 Police Officers' and Firefighters' Pension Fund, both administered by the State of Indiana. However, certain police officers and firefighters hired before May 1, 1977, who did not opt into the 1977 fund, continue to be members of the 1925 Police Pension Fund and the 1937 Firefighters' Pension Fund. These two funds are administered by the City. This group of police officers and f refighters will continue to decline in the future both as a total number and as a percentage of total payroll of both the police and fire departments and of the City a~s a whole. The 1925 and 1937 Plans are funded through a combination of property taxes levied by the City and distributions from the State Pension Relief Fund. As a result of the requirements of the state statute that created these funds, the City is legally prevented from funding them in any other way than a "pay-as-you-go"basis. For December 31, 2001, the City received an actuarial survey on these funds to provide the proper disclosures required by generally accepted accounting principles, This information is included in the following section. Debt Administration. At December 31, 2001, the City had a number of debt issues outstanding. These issues included $2,620,000 of general obligation bonds, $69,800,000 of revenue bonds payable from governmental funds, $53,657,537 of revenue bonds payable from enterprise funds and $1,791,353 of first mortgage bonds payable from governmental funds. Under the Indiana Constitution and state statute, the City's general obligation bonded debt issuances are subject to a legal limitation based upon 2% of total assessed value of real and personal property. Since Indiana's assessment statutes call for an assessed valuation ofone-third of cost less depreciation, its general obligation debt limitation is one ofthe most conservative in the United States. A detailed listing of this debt can be found in the Notes to the General Purpose Financial Statements. A calculation of the City's legal debt limitation can be found in the statistical section of this document. Cash Management. In accordance with state statute, cash temporarily idle during the year is invested in demand de osits, certificates of deposit, obligations of the U.S. Treasury and P xxiii