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CITY OF SOUTH BEND OFFICE OF THE CLERK
<br /> Mr. Dunn then asked, who is ultimately responsible for repaying bills with a TIF that doesn't come
<br /> through as planned?
<br /> Mr. Parker replied, So the Redevelopment Commission is the entity that holds those bonds, and
<br /> you'll see in a minute when we talk about different taxing districts and their debt limits, that the
<br /> redevelopment district has its own debt limits that is separate from the Civil City's debt limit.
<br /> Committeemember Voorde stated, I went and asked the Assessor recently about the net assessed
<br /> value of the entire County and she said that as long as she has been there, the net assessed value
<br /> has gone up every year since then.
<br /> Mr. Parker replied, Yeah, I know for the past few years it has. There was back in 2008, 2009, I
<br /> know it did go down a few years back then, but it's gone up every year for a few years now.
<br /> He continued, Gettingto total debt outstanding, this (referencinga slide in the presentation) is
<br /> g�
<br /> from December 31St, 2018, as of December 31St, we had right around $255 million in debt
<br /> outstanding. On a per capita basis, for every resident of South Bend, that is right around $2,500
<br /> per capita. I did want to point out on the left-hand side here the type of debt that is outstanding.
<br /> So, you can see, as I mention earlier, the vast majority of our debt outstanding are revenue bonds.
<br /> From a dollar's perspective, general obligation bonds or those full-faith credit bonds are a fairly
<br /> small component, and you'll see why in a minute here. And then capital leases represent a small
<br /> component from a dollar's perspective, but much more frequent in terms of us issuing capital
<br /> leases. They happen more frequently than any other kind of bond issuance. We usually do
<br /> anywhere between one(1) and three(3) capital lease issuances a year. On the right-hand side here,
<br /> from a debt repayment source perspective, again,these are the funds that are dedicated to repaying
<br /> the debt that we've issued. Again,the General Plus Funds,the General EDIT and COIT,represents
<br /> a fairly small component of our total debt repayment. TIF funds is a fairly large component. The
<br /> other large component on there is Public Works. Again, that is largely waste water revenue, also
<br /> water revenue in there as well,but largely waste water.
<br /> Committee Chair White opened the floor to questions. There were none.
<br /> Mr. Parker went on,All right. So,this is how we stand,just like we looked at cash,relative to other
<br /> cities in Indiana. Here's (referencing a slide in the presentation) where we stand on total debt
<br /> outstanding. Again, just like with cash, I would say this puts us kind of right in the sweet spot,
<br /> right where I'd kind of want to be. Towards the bottom of the list we have a relatively lower debt
<br /> outstanding than others, on a debt-per-capita basis. This last column here is debt-per-capita for
<br /> each resident of each City. Relatively lower, we are in the bottom half, but just like we wouldn't
<br /> want to be at the top of the cash, we wouldn't want to be at the bottom of the debt, because what
<br /> that means is you are actually taking advantage of the leverage that you have. You are not using
<br /> your ability to issue debt to invest in enough projects in the community. So, you don't want to be
<br /> at the bottom, you certainly don't want to be at the top of this list. Right in the middle is about
<br /> right.
<br /> Committeemember Voorde stated, Carmel must have taken on an awful lot!
<br /> EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
<br /> 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www.southbendin.gov
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