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As noted earlier, net assets may serve over time as a useful indicator of a government's financial
<br />position. At December 31, 2004, the City's assets exceeded liabilities by $194,241,292, a decrease
<br />from 2003 by $2.2 million. The majority of this decrease can be attributed to a reduction of property
<br />taxes. For property taxes colleted for 2003, Indiana changed its method of property tax allocation to
<br />a market value for assessing property taxes. A County wide reassessment along with major increases
<br />in delinquent taxes received had a favorable effect on this revenue. This reassessment caused
<br />property taxes received in 2003 to be larger than predicted. This result increased available cash
<br />balances. In 2004, after appeals and re- adjustment for tax rates, property tax levels decreased. By far
<br />the largest portion of the City's net assets (52 percent) reflects its investment in capital assets (e.g.
<br />land, roads, storm sewers, water and sewer systems, buildings and equipment), less any related debt
<br />used to acquire those assets that is still outstanding. Capital assets are used to provide services to
<br />citizens, and they are not available for future spending. Although the investment in capital assets are
<br />reported net of related debt, it should be noted that the resources needed to repay this debt must be
<br />provided from other sources, since the capital assets themselves cannot be used to liquidate these
<br />liabilities.
<br />Governmental
<br />Activities
<br />2003
<br />City of South Bend's Net Assets
<br />Table 1
<br />Business -Type
<br />Activities
<br />2004
<br />2003
<br />2004
<br />Total
<br />2003 2004
<br />Current and other assets $165,297,545 $135,859,344 $31,239,361 $35,393,136 $196,536,906 171,252,480
<br />Capital assets (net)
<br />Total assets
<br />Long -teen liabilities
<br />outstanding
<br />Other liabilities
<br />Total liabilities
<br />Net assets:
<br />Invested in capital
<br />assets, net of related
<br />debt
<br />Restricted
<br />Unrestricted
<br />96,911,501
<br />112,635,198
<br />157,102,338
<br />157,790,563
<br />254,013,839
<br />270,425,761
<br />262,209,046
<br />248,494,542
<br />188,341,699
<br />193,183,699
<br />450,550,745
<br />441,678,241
<br />164,196,443
<br />163,133,137
<br />51,869,211
<br />62,695,870
<br />216,065,654
<br />225,829,007
<br />29,281,402
<br />16,760,834
<br />6,711,844
<br />4,847,108
<br />35,993,246
<br />21,607,942
<br />193,477,845
<br />179,893,971
<br />58,581,055
<br />67,542,978
<br />252,058,900
<br />247,436,949
<br />31,254,629
<br />7,383,902
<br />102,466,792
<br />93,370,899
<br />133,721,421
<br />6,381,082
<br />1,966,388
<br />14,456,725
<br />13,254,447
<br />20,837,807
<br />31,095,490
<br />59,250,281
<br />12,837,127
<br />19,015,375
<br />43,932,617
<br />100,754,801
<br />15,220,835
<br />78,265,656
<br />Total net assets $68,731,201 $68,600,571 $129,760,644 $125,640,721 $198,491,845 $194,241,292
<br />At the end of the current fiscal year the City is able to report positive balances in all three
<br />categories of net assets, both for the government as a whole, as well as for its separate
<br />governmental and business -type activities.
<br />7
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