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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – November 24, 2025 <br /> <br />Page | 13 <br /> <br />of Local Government Finance (DLGF) by December 1. The state provides <br />little guidance on what the plan should include, so we use a model format <br />developed by Barnes & Thornburg, which is the same as last year. <br /> <br />The resolution you’ll vote on does three things: <br />1. Approves the spending plan included in your packet. <br />2. Directs staff to file the report with DLGF. <br />3. Allow staff to adjust if needed. <br /> <br />Key Points: <br />• The plan focuses on revenues from TIF districts. <br />• Revenue estimates for 2026 are based on 2025 projections, <br />increased by 3% for conservative growth. <br />• Fund balances remain strong, with significant growth in River West <br />and River East areas. <br />• Spending categories for 2026 include: <br />o Debt service: $13.1M <br />o Property acquisition/improvements: $11.8M <br />o Infrastructure: Roads, sewers, etc.: $6M <br />o Professional expenses: Design, engineering, legal services <br />(e.g., YMCA demolition): $9M <br />Overall, TIF areas are performing well, enabling continued reinvestment <br />and redevelopment. <br /> <br />Secretary Wax asked are the funds we’ve saved invested, or just sitting <br />in a bank account? Do they earn interest? Mr. Bauer stated that public <br />funds have strict investment limits, so they may be in approved <br />instruments, but those typically earn very low interest in Indiana. <br /> <br />It would be useful to compare: <br />• Our annual return on reserves <br />• The interest we pay on debt <br />For example, if we have $90 million earning 0.7% while paying 2.3% on <br />debt, it might make sense to consider paying down debt or adjusting our <br />borrowing strategy—while still keeping healthy reserves for future <br />opportunities. Mr. Bauer explained we’ll run those numbers. Note that <br />some debt is developer-backed and self-financed, meaning the interest is <br />paid from the project itself and carries no risk or obligation for the city. <br />Those will be analyzed separately. <br /> <br />Caleb Bauer also wanted to clarify, the Capital Expenditures – Real <br />Property Improvements and Acquisitions category: <br />This category includes property acquisitions and improvements to real <br />property. We are not planning to spend $11.8 million solely on property <br />purchases. Most of this amount will go toward real property