2-19-13 News Release - Financial Ratings

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Common 1 South Y + i NEWS RELEASE Date: Tuesday, February 19, 2013, 9 aa.m. From: Council Member Karen L. Whig; mittee of Whole Chairperson Contact: 235-5985 Council Vice-President Oliver J. Dav4s Contact: 876-6938 Council President Derek D. Dieter Contact: 532-2200 "South Bend's Strong Financial Ratings Sought and Maintained For Many Years" At last Monday's Common Council meeting, the Mayor delivered the Annual Address to the City Council as required by the City Code. The 12-slide power-point presentation summarized key financial information which set forth the "statement of finances and a general condition of the City" as required. As Officers of the Council, we believe that additional financial facts should be shared with the public: 1. The City of South Bend has been awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA) each year for the past twenty-second (22) consecutive years. This award recognizes that our city government has published an "easily readable and efficiently organized comprehensive annual finance report which satisfies generally accepted accounting principles and applicable legal requirements". [See: Comprehensive Annual Financial Report Fiscal Year Ending December 31, 2010,p. 31 which noted that it was the 201h year for this"prestigious award"being awarded to the City of South Bend] 2. In 2010, both Moody's and Fitch increased the City's bond rating, citing "prudent fiscal management, sufficient cash reserves and spending reductions as well as diverse and stable revenue sources" [Source: Comprehensive Annual Financial Report Fiscal Year Ending December 31, 2010,p. 15 attached] As Council Officers, we acknowledge that the strong economic position which the City has worked hard to achieve and maintain, reflects the collaborative efforts of many. Since 2007, the past City Council and past City Administration worked together in anticipating the negative impact of the State of Indiana's proposed property tax reforms. "Strategic cuts in expenditures" were made which "did not dilute essential services". Many public hearings were held so that the taxpayers would have input. This resulted in the City of South Bend reducing spending in the City's General Fund by $10.9 million or 15.5%. [See: Comprehensive Annual Financial Report Fiscal Year Ending December 31, 2010,pp13-14 attached] We appreciate that the Mayor, the Department of Administration and Finance, and other City departments and bureaus have continued to work with the Common Council in order to maintain a strong financial status, while continuing to deliver key City services. The dedication of our past and current City employees is unmatched, especially during challenging fiscal times. The South Bend Common Council is dedicated to continue to diligently carry out its state law duties to be not only the legislative body of the City, but also the City's fiscal body. By working together, efficient and transparent financial mechanism will be publicly shared and openly discussed.