2004 Comprehensive Annual Financial Report

Home Browse Search

Debt Administration. At December 31, 2004, the City had a number of debt issues outstanding. These issues included $935,000 of general obligation bonds, $82,135,000 of revenue bonds ayable from governmental funds, 39,815 000 of revenue bonds payable from enterprise funds, 29,525,289 oTfirst mortgage bonds payable from governmental funds and $1,058,415 of first mortgage bonds payable trom enterprise Tunas. unaer the inaiana t-onstitution ana 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 of one - -third of cost less depreciation, its general obligation debt limitation is one of the most conservative in the United States. The City debt increased by $3.6 million from the prior year. This increase was due to the issuance of bond for various capital upgrades to the Wastewater facility. A detailed listing of this debt can be found in the Notes to the Basic Financial Statements (Note III G). A calculation of the City's legal debt limitation can be found in the statistical section of this document. Economic Factors and Next Year's Budgets and Rates As noted earlier, property taxes are the City's largest source of revenue. Under current legislation all Indiana cities assessed values are based on market values. Under this method some properties are still being re- assessed to reflect the changes in values. This process as well as the overwhelming amount of appeals is still affecting the amount of property taxes received by the City. Due to these current changes, the percentage increase the City is anticipating in 2005 will be less than in previous years. The new sewer rate was enacted in 2004 as well as a new water rate in 2005. The overall Water revenue enhancement with this rate increase will be 15 percent. These rates will continue to be revised to assure that the municipal water and sewer system has sufficient revenue to cover operating and capital expenses. Many major capital projects are slated for construction in 2005. Part of the list would include downtown development which includes a new garage and office project. South side development, water and sewer infrastructure upgrades and the continuation of major road enhancements. Requests for Information This financial report is designed to provide a general overview of the City of South Bend's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or request for additional financial information should be addressed to the Controller's Office, 227 W. Jefferson, 14 fl, South Bend, IN 46601. 12