HomeMy WebLinkAbout2015 Comprehensive Annual Financial Report - Executive SummaryCITY OF SOUTH BEND
CITY OF SOUTH BEND, INDIANA
Pete Buttigieg, Mayor
John Murphy, City Controller
Jennifer Hockenhull, Deputy City Controller
REPORT PREPARED BY THE CITY OF SOUTH BEND DEPARTMENT OF ADMINISTRATION AND FINANCE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
EXECUTIVE SUMMARY
FISCAL YEAR ENDING ON DECEMBER 31, 2015
This Page Intentionally Left Blank
City of South Bend, Indiana
Comprehensive Annual Financial Report – Executive Summary
For The Year Ending December 31, 2015
Table of Contents
Purpose & Summaries
Purpose of the Executive Summary .......................................................................................... 1
Quick Facts about South Bend .................................................................................................. 2
Charts and Graphs .............................................................................................................. 3–10
Introduction
Controller’s Letter of Transmittal ........................................................ ……..………………11–22
Independent Auditor's Report on Financial Statements .................................................... 23–25
Management’s Discussion and Analysis ........................................................................... 26–50
Government-Wide Financial Statements:
Statement of Net Position .................................................................................................. 51–52
Statement of Activities ....................................................................................................... 53–54
Fund Financial Statements:
Balance Sheet – Governmental Funds ............................................................................. 55–56
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds ................................................................................ 57–58
Statement of Net Position – Proprietary Funds ................................................................. 59–60
Statement of Revenues, Expenses and Changes in
Net Position – Proprietary Funds ...................................................................................... 61
Statement of Fiduciary Net Position – Fiduciary Funds .......................................................... 62
Statement of Changes in Fiduciary Net Position – Fiduciary Funds ....................................... 63
Financial Trends
Net Position by Component – Last Ten Years ........................................................................ 64
Changes in Net Position – Last Ten Years ....................................................................... 65–66
Fund Balances, Governmental Funds – Last Ten Years ........................................................ 67
Changes in Fund Balances, Governmental Funds – Last Ten Years ..................................... 68
Revenue Capacity
Property Tax Levies and Collections – Last Ten Years .......................................................... 69
Direct and Overlapping Property Tax Rates – Last Ten Years ............................................... 70
Assessed Value and Actual Value of Taxable Property – Last Ten Years ............................. 71
Property Tax Collections – Cash Basis – 2006 to 2015 .......................................................... 72
Debt Capacity
Computation of Legal Debt Margin – December 31, 2015 ...................................................... 73
Ratios of Outstanding Debt by Type – Last Ten Years ........................................................... 74
Computation of Direct and Overlapping Debt – December 31, 2015 ...................................... 75
Demographic and Economic Information
Demographic Statistics – Last Ten Years ............................................................................... 76
Operating and Other Information
Full-Time City Government Employees by Department – Last Ten Years ............................. 77
Grant Compliance
Schedule of Expenditures of Federal Awards ......................................................................... 78
City of South Bend, Indiana
2015 CAFR Executive Summary
Purpose of the Executive Summary
The City of South Bend has prepared a Comprehensive Annual Financial Report (CAFR) for the
year ending December 31, 2015. The 2015 CAFR totals 289 pages and meets all of the
requirements set forth by the Government Finance Officers Association for its Certificate of
Achievement for Excellence in Financial Reporting program. If the award is received for 2015,
this will be the twenty-sixth consecutive year that the City of South Bend has received this
prestigious award.
The purpose of this Executive Summary is to present the most essential schedules and
summaries from the 2015 CAFR, as determined by the City, to allow more ready access to them
by the reader. The schedules and summaries are presented in their original format and the
order of presentation is the same as in the full 2015 CAFR. In addition, the CAFR Executive
Summary includes summary charts and graphs not featured in the 2015 CAFR. The Executive
Summary totals 78 pages.
The full CAFR is available at the following link:
http://docs.southbendin.gov/weblink8/0/doc/96978/Electronic.aspx
The CAFR Executive Summary is available here:
or by contacting:
John H. Murphy, City Controller
City of South Bend
Department of Administration & Finance
227 W. Jefferson Boulevard
South Bend, Indiana 46601
Telephone – (574) 235-7678
Fax – (574) 235-9928
On the cover:
View overlooking the Century Center and the East Race during the SB150 Celebration.
Purpose of the Executive Summary 1
Quick Facts about South Bend
Year of Incorporation ............................................................................................................ 1865
Mayor ..................................................................................................................... Pete Buttigieg
Number of Council Members ...................................................................................................... 9
Population (2010 census) ................................................................................................. 101,168
Full-time Employees (12/31/15) ........................................................................................... 1,060
2015 Governmental Activities Expenses ............................................................... $ 164,310,194
2015 Business-type Activities Expenses ................................................................. $ 61,899,676
2015 Government-Wide Expenses ......................................................................... $ 226,209,870
Net Position (12/31/15) ........................................................................................... $ 335,671,308
Largest Employers .................................................................................. Beacon Health System
(6,913 employees)
............................................................................................................. University of Notre Dame
(5,590 employees)
Gross Assessed Property Tax Value ................................................................... $ 4,837,489,612
Local Colleges:
The University of Notre Dame
Indiana University - South Bend
Bethel College
Saint Mary’s College
Holy Cross College
Trine University - South Bend
Brown Mackie College - South Bend
Ivy Tech Community College - South Bend
Attractions:
Morris Performing Arts Center
Century Center
South Bend Cubs
East Race Waterway
Potawatomi Zoo
Palais Royale
Blackthorn Golf Course
Quick Facts 2
2006200720082009201020112012201320142015
Total Governmental Activities Net Position
238,635,255253,155,810246,041,948274,186,457292,151,758287,891,667282,822,829289,554,049158,417,249140,859,895
Total Business Type Activities Net Position
127,375,243136,261,490142,545,786146,280,120154,691,254162,134,622169,411,367170,680,174185,698,840194,811,413
Total Primary Government Net Position
366,010,498
$ 389,417,300$ 388,587,734$ 420,466,577$ 446,843,012$ 450,026,289$ 452,234,196$ 460,234,223$ 344,116,089$ 335,671,308$
Business Type Activities include departments that charge a user fee for services like the water utility, wastewater department and sanitation.Note: 2014 and 2015 have been restated for implementation of GASB statement No. 68 on pension reporting.Governmental Activities
include General Government, Police Services, Fire Protection, Street Maintenance, and Parks that are supported by property tax revenue, local income tax revenue and other
revenue.
City of South Bend, Indiana
Net Position by ComponentLast Ten Fiscal Years
$0
$100,000,000$200,000,000$300,000,000$400,000,000$500,000,000
Charts & Graphs 3
Total Revenue218,946,053$
City of South Bend, IndianaGovernment-Wide RevenueFiscal Year 2015
GovernmentalActivities
$143,906,425 66%
Business TypeActivities
$75,039,628 34%
Charges for Services
$69,997,286
Capital Grants$4,683,424
Investment Earnings$358,918
Other Revenue$11,214,442
Investment Earnings
$1,322,674
Unrestricted Grants$25,487,112
Charges for Services$6,529,359
Property Tax$72,032,049Operating Grants$2,813,481Other Tax
$24,507,308
Charts & Graphs 4
Total Expenses226,209,870$
City of South Bend, Indiana
Government-Wide ExpensesFiscal Year 2015
GovernmentalActivities
$164,310,194 73%
Business TypeActivities
$61,899,676 27%
Water Utility
$13,609,378Waste Water Utility$25,737,867
Century Center$4,854,747Building
Department$3,552,347Parking
$2,139,182Solid Waste$5,243,972Blackthorn Golf Course
$165,977
Emergency Medical Services
$6,596,206
Bond Issuance Costs
$372,432
Interest on Long-Term Debt
$4,762,714 Economic
Development$40,727,612Culture & Recreation$20,300,768
Highways & Streets$20,045,444
General
Government
$21,572,776Public Safety$56,528,448
Charts & Graphs 5
2006200720082009201020112012201320142015
Total Governmental Activities Expenses
135,371,383124,932,023135,039,863104,113,362134,015,143154,902,096146,481,687152,746,550139,909,059164,310,194
Total Business Type Activities Expenses
40,608,00543,266,85048,780,12851,623,89845,486,51546,323,47348,559,09254,949,28355,879,60561,899,676
Total Primary Government Expenses
175,979,388
$ 168,198,873$ 183,819,991$ 155,737,260$ 179,501,658$ 201,225,569$ 195,040,779$ 207,695,833$ 195,788,664$ 226,209,870$
Note: 2015 Governmental Activities Expense includes
adjustments for GASB statement No. 68 on pensions.City of South Bend, Indiana
Government-Wide ExpensesLast Ten Fiscal Years
$0$50,000,000
$100,000,000$150,000,000$200,000,000$250,000,000
Charts & Graphs 6
2006200720082009201020112012201320142015
General Fund
25,851,29523,760,75327,416,58424,618,45528,737,14227,931,21628,795,08327,668,91327,587,40530,622,056
Other Governmental Funds
114,039,617128,671,603179,839,300171,431,958179,464,574168,302,860158,137,059169,516,402163,448,514170,204,680
Total Govermental Funds Net Position
122,001,560
$ 139,890,912$ 152,432,356$ 207,255,884$ 196,050,413$ 208,201,716$ 196,234,076$ 197,185,315$ 191,035,919$ 200,826,736$
Fund Balances, Governmental FundsCity of South Bend, IndianaLast Ten Fiscal Years
$0$50,000,000
$100,000,000$150,000,000$200,000,000$250,000,000
Charts & Graphs 7
Property Taxes
$
71,525,988
50.1%
Public Safety
$
61,889,405
35.80%
Intergovernmental 30,216,059
21.2%
Capital Outlay46,553,570
27.00%
Charge for Services 5,794,168
4.1%
Debt Service18,711,690
10.80%
Economic Develop. Income Tax 9,181,206
6.4%
Culture & Recreation12,855,704
7.40%
County Option Income Tax 8,859,912
6.2%
Highways & Streets12,787,641
7.40%
Public Safety Local Option Income Tax 6,466,190
4.5%
Economic Development11,068,013
6.40%
Interest Income 1,253,242
0.9%
General Government8,420,278
4.90%
Professional Sports Develop. Tax
626,192
0.4%
Bond Issuance Costs
372,432
0.30%
Fines and Forfeitures
454,327
0.3%
Total Expenditures
$
172,658,733
100.0%
Licenses and Permits
151,923
0.1%
Other Rev
enues
8,190,619
5.8%
Total Revenue
$
142,719,826
100.0%
Governmental Funds Expenditures 2015
Governmental Funds Revenue 2015Property Taxes 50.1%
Intergovernmental 21.2%
Charge for
Services 4.1%Economic Develop. Income Tax 6.4%
County Option Income Tax 6.2%
Public Safety Local Option Income Tax 4.5%Interest Income 0.9%
Professional Sports Develop. Tax 0.4%
Fines and
Forfeitures 0.3%
Licenses and Permits 0.1%
Other Revenues 5.8%
Public Safety 35.8%Capital Outlay 27%
Debt Service 10.8%
Culture & Recreation 7.4%
Highways & Streets 7.4%Economic
Development 6.4%
General Government 4.9%
Bond Issuance Costs 0.3%
Charts & Graphs 8
City of South Bend, Indiana
Governmental Funds Revenues and ExpendituresLast Ten Fiscal Years
2006200720082009201020112012201320142015
Revenues
141,065,245
137,826,642 139,717,856 130,932,134 158,342,276 152,877,172 147,379,084 151,152,474 144,489,791 142,719,826
Expenditures
129,527,536
128,209,220 138,022,795 142,962,710 150,758,014 172,397,679 162,460,000 152,860,750 154,300,097 172,658,733
Does not include Other Financing Sources/Uses. Spending on one-time capital items may result in expenditures exceeding revenue during the year.Notes: $100,000,000 $110,000,000 $120,000,000 $130,000,000 $140,000,000 $150,000,000 $160,000,000 $170,000,000 $180,000,000
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Charts & Graphs 9
Department
Full-Time
Positions
Administration and Finance 18
Engineering 16
Legal Department 12
Common Council (elected officials, part-time)9
Mayor's Office 7
311 Call Center 7
Human Rights 6
City Clerk's Office 5
Safety and Risk 2
Police Department 300
Fire Department 259
Parks and Recreation 88
Morris PAC/Palais Royale 14
Economic Development Department of Community Investment 25
Highways and Streets Street Department 53
Water Works 67
Wastewater 43
Sewer 30
Code Enforcement 23
Solid Waste 21
Building Department 13
Organic Resources 6
Internal Service Fund Central Services 36
1,060Total FTE as of December 31, 2015
Enterprise Funds
City of South Bend, Indiana
Full-Time City Employees by Category as of December 31, 2015
General Government
Public Safety
Culture and Recreation
Public Safety
53%
Enterprise
Funds
19%
Culture &
Recreation
10%
General
Government
8%
Highways & Streets
5%
Internal Service
Fund
3%
Economic
Development
2%
1,288
1,230 1,213
1,116 1,132 1,133 1,122 1,131
1,098
1,060
1,050
1,100
1,150
1,200
1,250
1,300
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total Full-Time Positions 10 Year Trend
Charts & Graphs 10
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
DEPARTMENT OF ADMINISTRATION AND FINANCE
June 30, 2016
The Honorable Pete Buttigieg, Mayor of the City of South Bend
Members of the City of South Bend Common Council
Residents of the City of South Bend:
The comprehensive annual financial report of the City of South Bend, Indiana (the "City") for
the year ended December 31, 2015 is hereby submitted. Responsibility for both the accuracy of
the data and the completeness and fairness of the presentation, including all disclosures, rests
with management. To the best of our knowledge and belief, the enclosed data is accurate in all
material respects and is reported in a manner designed to present fairly the financial position and
results of operations of the various funds of the City. All disclosures necessary to enable the
reader to gain an understanding of the government’s financial activities are included.
Generally Accepted Accounting Principles (GAAP) requires that management provide a
narrative introduction, overview and analysis to accompany the basic financial statements in the
form of the Management’s Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The City of
South Bend’s MD&A can be found immediately following the independent auditors’ report.
The Comprehensive Annual Financial Report is presented in four sections: introductory
information, financial information, statistical information and federal compliance information.
The introductory section includes this transmittal letter, the City’s organizational chart, a list of
principal City officials and the Certificate of Achievement for Excellence in Financial Reporting
awarded to the City of South Bend for the year ending December 31, 2014. The financial
section begins with the independent auditors’ report on the City’s financial statements and
schedules, the City managements’ discussion and analysis report, followed by the City’s basic
financial statements and accompanying notes. The remaining portion of this section includes the
combining and individual fund and other financial statements and schedules. The statistical
section includes selected financial and demographic information generally presented on a multi-
year basis, which has been provided to give the reader a broader understanding of the City. The
federal awards compliance section, which includes the results of the supplemental audit of
the City’s federal awards and the internal controls necessary for compliance, is included in
a separate report.
Controller's Letter of Transmittal 11
The City is required to undergo an annual single audit in conformity with the provisions of the
U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments
and Non-Profit Organizations, the provisions of Indiana Code section 5-11-1-9 and the
requirements of the Indiana State Board of Accounts. Information related to the single audit,
including the schedule of federal financial assistance, findings and recommendations, and the
auditors’ reports on the internal control structure and compliance with applicable laws and
regulations, is included in a separate report.
The following pages of this transmittal letter begin with a general overview of South Bend and
the surrounding area. Also summarized are the key financial, budgetary and property tax
controls with which the City is required to comply. The remainder includes a discussion of the
prior year’s financial challenges and accomplishments, the City’s goals and objectives for this
year and beyond and other key issues the City is facing along with the impact they may have on
current and future budgets.
GENERAL INFORMATION
The City of South Bend is the county seat of St. Joseph County, Indiana, and is the fourth largest
city in the state. The City of South Bend’s 2010 U.S. Bureau of the Census population was
101,168. Accordingly, South Bend is classified as a “City of the Second Class” under Indiana
statutes (cities with a population of 35,000 to 250,000). The City of South Bend operates with a
mayor as chief executive and a nine-member City Common Council composed of six members
elected from districts and three members elected at-large.
The City provides a full range of traditional general governmental services to its citizens. These
services include police and fire protection; sanitation services; the construction and maintenance
of highways, streets and infrastructure; recreational activities and cultural events. In addition to
general governmental activities, the City exercises oversight over the South Bend Water Works,
the South Bend Wastewater Treatment Facility, the Century Center Convention Center, the
Morris Performing Arts Center, the Studebaker National Museum, the City of South Bend
Redevelopment Commission and Authority, and several downtown parking facilities.
Location
St. Joseph County lies within the heartland of the manufacturing belt and metropolitan regions of
the Upper Midwest and Canada. The City of South Bend is located in the north central part of
Indiana, ten miles south of the Michigan state line, and is commonly known to be within the
“Michiana” area. The Michiana area is a vibrant and diverse area with a strong economy based
on a mix of health care, agricultural, service, manufacturing, education and other commercial
and tourism industries. This diverse economic mix creates varied employment opportunities for
the area’s residents while providing insulation via diversification from future economic
downturns.
Controller's Letter of Transmittal 12
The city is approximately 90 miles east of Chicago and 140 miles north of Indianapolis.
Accessibility to transportation, including Interstate 80/90, an international airport (which is the
second busiest in the State of Indiana) and the South Shore Line has supported economic growth
within the community. Proximity to Chicago, the largest rail and intermodal
(rail/truck/ocean/inland waterway) transfer point in the country, is a significant advantage to the
City of South Bend as is proximity to the University of Notre Dame with its scenic campus
located adjacent to the city limits.
St. Joseph County / South Bend - Economic Conditions and Outlook
St. Joseph County, with its 2010 U.S. Bureau of the Census population of 266,931, boasts a
strong history of manufacturing which continues today. The service industry and retail trade
have also flourished, creating a balance that serves the community well. The County
experienced a net growth in population of 28,317 (11.8% increase) between 1960 and 2010.
After experiencing a reduction of 2.6% during 1969 to 1983, at which time the entire Midwest
was at the depth of its economic restructuring and recess, the County’s population increased
4.0% between 1983 and 1990 and another 7.5% between 1990 and 2000. The population of St.
Joseph County is expected to have experienced a modest increase to an estimated 268,441 in
2015.
The estimated labor force in St. Joseph County is 130,912 workers (Indiana Department of
Workforce Development 2015). The workers are typical of the Midwest: well-trained with a
strong work ethic. Approximately 88.4% of the area’s adult population (25 and older) are high
school graduates or higher (as compared to the national average of 88.4%) with an estimated
27.2% with a Bachelor’s Degree or higher. There are eleven colleges, universities and technical
schools within South Bend and the surrounding area including the University of Notre Dame,
Indiana University South Bend, Bethel College, Saint Mary’s College, Purdue University
College of Technology at South Bend, Holy Cross College, American National University, Trine
University South Bend, Brown Mackie College, ITT Technical Institute and Ivy Tech
Community College. At the high school level, there are school-to-work transition programs. For
2015, St. Joseph County experienced an average unemployment rate of 4.9%, near average when
compared to its surrounding counties—Elkhart (3.5%), LaPorte (5.9%), and Marshall (3.9%) in
Indiana and Cass (4.3%) and Berrien (4.6%) in Michigan. Indiana’s unemployment rate
averaged 5.4% in 2015.
The employment profile for St. Joseph County provides a good overview of the economic make-
up of this community. Employment estimates for the County’s major economic sectors are as
follows (US Census Bureau 2010-2014 American Community Survey 5-Year Estimates Civilian
Employed Population):
Controller's Letter of Transmittal 13
Economic Sector Number Employed % of Total
Educational Services, Healthcare, Social Assistance 33,971 27.8%
Manufacturing 20,359 16.7%
Retail Trade 14,010 11.5%
Arts, Entertainment, Recreation, Accommodation, 11,677 9.6%
Food Services
Professional, Scientific, Management, Administrative, 9,906 8.1%
Waste Management Services
Finance and Insurance, Real Estate, Rentals, Leasing 6,417 5.3%
Other Services, except Public Administration 5,735 4.7%
Construction 5,655 4.6%
Transportation and Warehousing, and Utilities 4,909 4.0%
Public Administration 3,618 3.0%
Wholesale Trade 3,560 2.9%
Information 1,757 1.4%
Agriculture, Forestry, Fishing, Hunting, Mining 500 0.4%
Total 122,074 100.0%
St. Joseph County presently has an estimated 101,759 households with an average per capita
personal income of $24,039, which compares to the State of Indiana average per capita income
of $24,058 and the United States per capita income of $28,051. The per capita income in St.
Joseph County compares favorably with most of its surrounding counties—Elkhart ($21,866), La
Porte ($23,278), and Marshall ($22,580) in Indiana and Cass ($23,045) and Berrien ($24,304) in
Michigan.
Health and education lead the employment statistics for St. Joseph County. The largest
employers in St. Joseph County as of December 2015 were as follows: Beacon Health Systems
(6,913), University of Notre Dame (5,590), South Bend Community School Corporation (2,880),
AM General (2,858), Trinity Health/St. Joseph Regional Medical Center (2,597), Honeywell
Aerospace (1,499), Indiana University – South Bend (1,445), Schurz Communication, Inc.
(1,000), St. Joseph County (1,064), and The City of South Bend (1,098).
Controller's Letter of Transmittal 14
The Following Provides a Profile of the Residents of St. Joseph County (Census Estimates
for July 2014 – Latest Information Available):
Gender %, male/female: 48.5% male; 51.5% female
Age: 24.0% under 18
11.1% 18-24 years of age
24.9% 25-44 years of age
25.7% 45-64 years of age
14.3% 65 years of age and older
Race: 73.0% White
13.2% Black/African American
8.2% Hispanic/Latino
2.3% Asian
3.3% Other
Home Ownership: 68.4% own; 31.6% rent/other
The cost of living continues to be one of the greatest advantages of living in this community. The
housing costs in South Bend are well below the national and regional averages. Per a report
compiled by the National Association of Realtors in the first quarter of 2016, the median sales
price for a single family home in the South Bend-Mishawaka Statistical Area was $99,800 as
compared to a median sales price of $208,600 in Chicago, $149,800 in Grand Rapids, $115,300
in Ft. Wayne and $146,900 in Indianapolis. The Midwest median sales price is $167,900.
Between January 2015 and June 2016 the City of South Bend has seen approximately
$192,148,376 in private investment and the announcement of roughly 939 jobs. By providing
state of the art innovative infrastructure and, in some cases, offering targeted assistance the City
can stimulate private investment, creating business opportunities and jobs. The City has had
many significant economic development projects to include new downtown residential housing,
mixed use developments, downtown hotels, and high tech industrial projects. A highlight of 2016
is the implementation of the Smart Streets project with downtown streets undergoing
construction. City investments like these encourage new start-up businesses, strengthen existing
business, attract new jobs, increase assessed value and emphasize direct investment in hard-to-
develop areas. Efforts have been and will continue to focus on implementing the comprehensive
plans for our neighborhood and downtown areas.
The South Bend Community School Corporation serves the entire City and some of the
surrounding area and has a current enrollment of approximately 18,680 students in grades pre-
kindergarten through 12. An estimated 5,367 students attend private or parochial schools within
the City. The ten institutions of higher education and technical training located within the South
Bend area have a total enrollment of approximately 31,000. Over the years, the University of
Notre Dame has provided a stabilizing influence on the economy with a very significant positive
economic impact upon the community.
Controller's Letter of Transmittal 15
South Bend History and Amenities
In 1820, Pierre Navarre of the American Fur Trading Company was the first settler in the area to
become later known as South Bend. South Bend has continued to progress in its growth since
1842 when Father Edward Sorin named his rustic log chapel “Notre Dame du Lac” and began to
teach the local Indians. Today the chapel has grown into the University of Notre Dame. In
1852, H.C. Studebaker started the industry of making wagons and horse-drawn buggies that
evolved into the manufacturing of the Studebaker automobile. The name Studebaker became
synonymous with the area of South Bend and the company was its major employer until its
closure in 1963.
Another industrial firm that would later become the area’s largest began in 1923 when Vincent
Bendix began manufacturing automotive brakes. In 1929, the company became the Bendix
Aviation Corporation, and now, as Honeywell (formerly AlliedSignal Inc.), is a leading
manufacturer of automotive, aerospace and household products. The Singer Sewing Company,
Birdsell Manufacturing and the Oliver Chilled Plow Works were other important companies
during the early history of South Bend.
Special attractions within the South Bend area include the Olympic-class East Race Waterway
and the East Bank area, the renovated Morris Performing Arts Center, which provides for the
Broadway Theater League, the South Bend Symphony Orchestra and the Southold Dance
Theater and Patchwork Dance Company, the award-winning South Bend Civic Theater, the
Studebaker National Museum, the South Bend Museum of Art, the Snite Museum of Art at Notre
Dame, the Northern Indiana Center for History and the Oliver family Mansion, Copshaholm,
Century Center, Potawatomi Zoo, the Morris Conservatory/Muessel-Ellison Tropical Gardens,
Healthworks! Kids Museum, the Farmers’ Market, and the St. Clair (Belleville) Softball
Complex.
The Four Winds Field Baseball Stadium is a 5,600-seat facility which opened in 1987 and is
rated among the best in minor league baseball. Until recently, the stadium was home to the
South Bend Silver Hawks, a Single-A minor league team in the Midwest League affiliated with
the Arizona Diamondbacks. In January 2011, the Silver Hawks were sold to Chicago
businessman Andrew Berlin, who has forged a strong partnership with the City and plans to keep
the team in South Bend for many years to come. In September 2014, a four-year player contract
was reached with the Chicago Cubs and the team became the South Bend Cubs. Total
attendance in 2015 of 347,000 was up approximately 34% over 2014. The South Bend Cubs
received the John H. Johnson Award recognizing its record setting 2015 season and its rise to
become one of Minor League Baseball's most outstanding franchises.
Additional miscellaneous information about the City of South Bend can be found in the
statistical section of this report.
Controller's Letter of Transmittal 16
Financial, Budgetary and Property Tax Controls
The City’s management team is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the government are protected from loss, theft or
misuse and to ensure that adequate accounting data is compiled to allow for the preparation of
financial statements in conformity with generally accepted accounting principles. The internal
control structure is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits
requires estimates and judgments by management.
Single Audit. As a recipient of federal and state financial assistance, the City is also responsible
for ensuring that an adequate internal control structure is in place to ensure compliance with
applicable laws and regulations related to those programs. This internal control structure is
subject to periodic evaluation by management of the City. As part of the City’s single audit
described earlier, tests are performed to determine the adequacy of the internal control structure,
including that portion related to federal financial assistance programs, as well as to determine
that the City has complied with applicable laws and regulations. The results of the City’s single
audit for the year ended December 31, 2015 are included in a separate report.
Budgetary Controls. In accordance with Indiana statutes, the City maintains budgetary controls
integrated within the accounting system. The objective of these budgetary controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget (prepared on a
cash basis) which is adopted by the Common Council or Redevelopment Commission
(depending on the fund) and then reviewed and approved by the State of Indiana Department of
Local Government and Finance (DLGF). Activities of the general fund, special revenue funds,
capital project funds, enterprise funds, internal service funds, pension trust funds and debt
service funds are included in the annual budget. The level of budgetary control (that is, the level
at which expenditures cannot legally exceed the appropriated amount) is established by major
budget classification within funds. The Mayor and Common Council may transfer
appropriations from one major budget classification to another within a department by ordinance
as long as the total appropriations for that fund are not exceeded. Additional appropriations in
excess of the original budget must be approved by the Mayor and Common Council and are also
submitted to the DLGF for either approval or acknowledgement (depending on the fund).
Additional appropriations for funds approved by the Redevelopment Commission do not require
DLGF approval. Beginning in budget year 2009, the City must also submit its annual budget to
the St. Joseph County Common Council for a non-binding review and recommendation. The
deadline for adoption of the annual budget is November 1. The city’s fiscal year begins on
January 1.
The City maintains an encumbrance accounting system as one technique of accomplishing
budgetary control. Encumbered amounts do not lapse at year end and are carried over to the
following year as a part of the subsequent year’s budget.
Controller's Letter of Transmittal 17
Financial, Budgetary and Property Tax Controls
The City’s management team is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the government are protected from loss, theft or
misuse and to ensure that adequate accounting data is compiled to allow for the preparation of
financial statements in conformity with generally accepted accounting principles. The internal
control structure is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits
requires estimates and judgments by management.
Single Audit. As a recipient of federal and state financial assistance, the City is also responsible
for ensuring that an adequate internal control structure is in place to ensure compliance with
applicable laws and regulations related to those programs. This internal control structure is
subject to periodic evaluation by management of the City. As part of the City’s single audit
described earlier, tests are performed to determine the adequacy of the internal control structure,
including that portion related to federal financial assistance programs, as well as to determine
that the City has complied with applicable laws and regulations. The results of the City’s single
audit for the year ended December 31, 2015 are included in a separate report.
Budgetary Controls. In accordance with Indiana statutes, the City maintains budgetary controls
integrated within the accounting system. The objective of these budgetary controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget (prepared on a
cash basis) which is adopted by the Common Council or Redevelopment Commission
(depending on the fund) and then reviewed and approved by the State of Indiana Department of
Local Government and Finance (DLGF). Activities of the general fund, special revenue funds,
capital project funds, enterprise funds, internal service funds, pension trust funds and debt
service funds are included in the annual budget. The level of budgetary control (that is, the level
at which expenditures cannot legally exceed the appropriated amount) is established by major
budget classification within funds. The Mayor and Common Council may transfer
appropriations from one major budget classification to another within a department by ordinance
as long as the total appropriations for that fund are not exceeded. Additional appropriations in
excess of the original budget must be approved by the Mayor and Common Council and are also
submitted to the DLGF for either approval or acknowledgement (depending on the fund).
Additional appropriations for funds approved by the Redevelopment Commission do not require
DLGF approval. Beginning in budget year 2009, the City must also submit its annual budget to
the St. Joseph County Common Council for a non-binding review and recommendation. The
deadline for adoption of the annual budget is November 1. The city’s fiscal year begins on
January 1.
The City maintains an encumbrance accounting system as one technique of accomplishing
budgetary control. Encumbered amounts do not lapse at year end and are carried over to the
following year as a part of the subsequent year’s budget.
Controller's Letter of Transmittal 18
Property Tax Controls. In addition to budgetary and other controls established by Indiana
statute, the City must operate within specific and rigid controls governing the amount of property
tax it may levy. The property tax control program, which began in 1973, limits the amount of
property tax that may be levied by each unit of government in its legally budgeted funds. The
total amount of property tax levied by the unit may increase by the six year average annual
growth in Indiana personal non-farm income, as calculated by the U.S. Bureau of Economic
Analysis, with a 6% maximum.
During March 2008, the State of Indiana General Assembly enacted property tax reform
legislation which made significant changes in the property tax system by capping the amount of
property taxes at 1% of grossed assessed value for residential homesteads, 2% for
agricultural/rental properties and 3% for all other real and personal property. This legislation
was phased in over a two year period beginning in 2009. The loss of revenue to the City due to
this legislation was significant (estimated to be over $31 million dollars) but this revenue loss
has been offset by cost savings and the adoption of local option income taxes in order to continue
providing essential City services, including police and fire protection.
A historical view of the City’s tax rate and its net assessed valuation has been included in the
statistical section of this document.
Mayoral Leadership
Mayor Pete Buttigieg, a Harvard University graduate and Rhodes scholar, assumed office on
January 1, 2012, bringing with him a group of leaders with new ideas and energy to implement
transformational reform to city government. Elected at age 29, Mayor Buttigieg is the youngest
chief executive of a municipality exceeding 100,000 residents in the United States. During his
first term, Mayor Buttigieg has launched seven initiatives to improve city government:
1.New Economic Partnerships – to lay out a new economic vision for our community as
well as to agree on a smarter division of labor among various groups involved in
economic development.
2.High Ethical Standards – on his first day in office the Mayor issued an executive order
introducing a new ethics code for City employees.
3.Customer Service Mentality – design ways that City employees can track and resolve
citizens’ issues efficiently by using more advanced technology. This effort led to the
creation of a “311 Call Center” for non-emergency municipal telephone calls during
2012. The Call Center has taken more than 300,000 calls through June 2016 and
continues to add departments to be a central call center for most areas of City
government.
4.Strong Partnerships with Schools – the Mayor has improved dialogue with the South
Bend School Corporation and other stakeholders to ensure a strong educational system in
the City. The Mayor has begun programs to double the number of public school mentors
and curb youth and gun violence.
Controller's Letter of Transmittal 19
5.Transparency and Accessibility – choosing not to serve from behind his desk, Mayor
Buttigieg has conducted a series of monthly “Mayor’s Night Out” and “Mayor’s Night
In” events around town to allow citizens to speak to him and his department heads
directly about concerns and ideas. The City website has been re-designed and additional
financial and operational reports are being made available online.
6.Vacant and Abandoned Buildings – as with many large cities, the City of South Bend
has an issue with vacant and abandoned buildings. The city has taken on this issue with
the appointment of a blue-ribbon task force that developed new strategies and initiated an
aggressive three-year program—1,000 buildings in 1,000 days—to reduce the number of
vacant and abandoned buildings. As of June 2016, more than 1,000 buildings have been
addressed. In the second phase of the project, the City is beginning to handle the new
vacant lots which resulted from the demolition of many buildings.
7.Smart Streets – an effort to improve the role of streets within South Bend. Projects
within this initiative utilize the “Complete Streets” philosophy which advocates for the
design of streets to enable safe access for all users, including pedestrians, bicyclists,
motorists and transit riders of all ages and abilities. During 2015, the City issued a bond
for $25 million to move the project of two-way street conversions and other Smart Street
initiatives forward.
8.South Bend Group Violence Intervention (SBGVI) – unites community leaders around
a common goal: to stop gun violence and keep South Bend’s highest risk citizens alive
and out of prison. SBGVI is a partnership among 30 community leaders from law
enforcement, government, education, civil service, health-care and faith-based agencies.
Administration Vision
The administration of Mayor Buttigieg has a single, overarching mission—we deliver services
that empower everyone to thrive. In support of this vision, the Mayor has established three
main pillars of administration policy:
1.Make the basics easy – Provide residents high quality services at the greatest value to the
taxpayer, maintaining widespread confidence that the fundamentals are managed well.
2.Deliver Good government – Put residents first always, leading by example, gathering
input, and transparently communicating our intentions, decisions, and actions.
3.Invest in people and places – Support residents with design, policy, and programming for
a strong and inclusive economy, vibrant culture, and great public spaces.
Controller's Letter of Transmittal 20
Values
The five core values of the City administration are:
1.Excellence – For each major area of service delivery, establish South Bend as the best in
the state, and/or in the top 25% nationally, measuring and reporting progress.
2.Accountability – Put residents first always, offering services at the greatest value to the
taxpayer, with clear and transparent indications of how the government is using public
resources.
3.Innovation – Deliver better services more efficiently by introducing creative approaches
to government operations, questioning habit and using evidence to continually improve.
4.Inclusion – Ensure the City administration, as an employer and as a purchaser, reflects
the community it serves and includes diverse voices in our decision-making and actions.
5.Empowerment – Establish a work environment that enables employees to contribute
richly to the administration and the community, taking pride and ownership in our work.
Community and Governance Results
During 2016, the City administration has initiated a Priority Based Budgeting program and has
developed the following Community and Governance desired outcomes:
Community Results
1.Safe Community for Everyone
2.Strong, Inclusive Economy
3.Thriving Public Spaces and Culture
4.Vibrant, Welcoming Neighborhoods
5.Robust and Well-Planned Infrastructure
6.Physically and Digitally Connected Community
Governance Results
1.Great Employer with Great Employees
2.Enduring Financial Strength
3.Excellent Services and Efficient Processes
4.Modeling our Values (Excellence, Accountability, Innovation, Inclusion and
Empowerment)
5.Robust Physical and Technological Capital Assets
6.Reliable Compliance with Regulations and Well-Managed Risk
7.Effective, Responsive Leadership and Communication
Controller's Letter of Transmittal 21
Awards
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of South
Bend for its comprehensive annual financial report for the fiscal year ended December 31, 2014.
This was the 25th consecutive year that the City has achieved this prestigious award. In order to
be awarded a Certificate of Achievement for Excellence in Financial Reporting, a government
unit must publish an easily readable and efficiently organized Comprehensive Annual Financial
Report. This report must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for
another certificate.
Acknowledgments
The preparation of the Comprehensive Annual Financial Report (CAFR) was made possible by
the dedicated service of the City’s departmental fiscal officers and the staff of the Department of
Administration and Finance. Each fiscal officer and member of the Administration and Finance
Department has our sincere appreciation for the contributions made in the preparation of this
report. We would especially like to acknowledge the efforts of the core CAFR preparation team
of Rahman Johnson, Cecil Eastman and Plante Moran, PLLC. In addition, we would like to
thank the Field Examiners of the Indiana State Board of Accounts (led by Martha Harper, Alex
Flores and Bruce Snyder) for their hard work and dedication in this effort.
In closing, without the leadership and support of Mayor Pete Buttigieg, City Department Heads,
City Fiscal Officers and members of the City of South Bend Common Council, preparation of
this report would not have been possible.
Sincerely,
John H. Murphy, MPA Jennifer Hockenhull, CPA
City Controller Deputy City Controller
Controller's Letter of Transmittal 22
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Independent Auditor's Report on Financial Statements 23
INDEPENDENT AUDITOR'S REPORT
(Continued)
Emphasis of Matter
As discussed in Note 25 to the financial statements, the City adopted new accounting guidance,
GASB Statement 68 Accounting and Financial Reporting for Pensions. Our opinion is not modified with
respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, Schedules of Investment Returns, Schedules of Proportionate Share
of the Net Pension Liability, Schedules of Contributions, Schedules of Changes in City Net Pension Liability
and Related Ratios, Schedules of Funding Progress, Budgetary Comparison Schedules, and Budget/GAAP
Reconciliation, as listed in the Table of Contents, be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit
of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City basic financial statements. The accompanying Combining Balance Sheet,
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances, Schedules of Revenue,
Expenditures, and Changes in Fund Balances - Budget and Actual, other Budgetary Comparison Schedules,
Combining Statements of Net Position, Combining Statements of Revenue, Expenses, and Changes in Net
Position, Combining Statements of Cash Flows, Statement of Asset and Liabilities, Combining Statement of
Changes in Fiduciary Net Position, and Statement of Changes in Assets and Liabilities, and the Introductory
and Statistical Sections are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
The Combining Balance Sheet, Combining Statement of Revenue, Expenditures, and Changes in
Fund Balances, Schedules of Revenue, Expenditures, and Changes in Fund Balances - Budget and Actual,
other Budgetary Comparison Schedules, Combining Statements of Net Position, Combining Statements of
Revenue, Expenses, and Changes in Net Position, Combining Statements of Cash Flows, Statement of Asset
and Liabilities, Combining Statement of Changes in Fiduciary Net Position, and Statement of Changes in
Assets and Liabilities are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the combining and individual fund financial state-
ments, and other budgetary comparison schedules are fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
Independent Auditor's Report on Financial Statements 24
INDEPENDENT AUDITOR'S REPORT
(Continued)
The Introductory and Statistical Sections, have not been subjected to the auditing procedures applied
in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 15,
2016, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering City's internal control over financial reporting and compliance.
Paul D. Joyce, CPA
State Examiner
June 15, 2016
Independent Auditor's Report on Financial Statements 25
City of South Bend, Indiana
Management’s Discussion and Analysis
The management of the City of South Bend, Indiana (the “City”) provides herewith this
Management’s Discussion and Analysis (MD&A) of the financial activities and condition of the
City of South Bend, Indiana for the fiscal year ended December 31, 2015.
Readers of the information contained within this Management’s Discussion and Analysis, and any
opinion derived therein, should be considered as a part of the greater whole of the financial
statements, notes to the financial statements, supplemental information and letter of transmittal,
as contained within this Comprehensive Annual Financial Report (CAFR).
The City of South Bend is the county seat of St. Joseph County, Indiana, and is the fourth largest
city in the state of Indiana. St. Joseph County is located within the heartland of the manufacturing
and metropolitan regions of the Upper Midwest. The City of South Bend is located in the north
central region of the state of Indiana, five (5) miles south of the Indiana / Michigan state boundary
line. The City is approximately ninety (90) miles east of the city of Chicago and one hundred
forty (140) miles north of the city of Indianapolis.
The 2010 U.S. Bureau of the Census population for the City of South Bend was reported as
101,168 and the 2010 Census population for St. Joseph County was reported as 266,931.
Accordingly, South Bend is classified as a “Second Class City” under State of Indiana statutes,
defined as cities with a population between 35,000 and 600,000 residents.
South Bend and St. Joseph County is a vibrant and diverse area with a strong local economy
based on a mix of agricultural, manufacturing and service, higher education, health care and
other commercial and tourism based industries. The diverse economic mix creates varied
employment opportunities for residents while providing insulation from economic downturns
through diversification. South Bend is home to the University of Notre Dame.
The City of South Bend provides a full range of general governmental services to its citizens.
Services include general government, public safety, street construction and maintenance,
infrastructure construction and maintenance, parks and recreation services, arts and culture, and
sanitation services. In addition, the City provides Water Utility and Wastewater Utility services
to commercial and residential properties within the city. City operations also include the
Century Center convention venue, Morris Performing Arts Center, Palais Royale Ballroom,
Studebaker National Museum, South Bend Redevelopment Authority and Public Parking Garages
within the city footprint.
The City of South Bend governmental structure includes elected officials as follows with defined
management and legislative authority in compliance with Indiana statute.
Mayor Chief Executive Officer 4-year term
Common Council 9 member legislative body
6 from defined districts within the City
3 at-large members
4-year term
City Clerk Secretary of the Common Council 4-year term
2015 CAFR MD&A 26
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
The current terms of office for Common Council members, Mayor and City Clerk expire on
December 31, 2019.
The City of South Bend was incorporated in 1865, is compliant with Indiana statutes, and
remains as such through the period covered by this Management’s Discussion and Analysis
report. In 2015, the City celebrated its 150th birthday and a year-long series of community
activities was held for “SB 150”.
Financial Highlights
Governmental Business-type Government-wide
Activities Activities Activities
2015 2014*2015 2014*2015 2014*
Assets/deferred outfl ows $ 516,636,797 $ 498,965,722 $ 317,443,817 $ 302,099,795 $ 834,080,614 $ 801,065,517
Liabilities/deferred inflows 375,776,902 205,520,938 122,632,404 125,032,205 498,409,306 330,553,143
Net position
Net investment in capital assets 157,604,691 168,275,521 141,998,384 136,685,811 299,603,075 304,961,332
Restricted 9,137,552 8,723,878 28,397,290 26,587,012 37,534,842 35,310,890
Unrestric ted-25,882,348 116,445,385 24,415,739 13,794,767-1,466,609 130,240,152
Total net position 140,859,895 293,444,784 194,811,413 177,067,590 335,671,308 470,512,374
Ch ange v s. prior yea r (152,584,889)3,890,735 17,743,823 6,387,416 (134,841,066)10,278,151
Expenses 164,310,194 139,909,059 61,899,676 55,879,605 226,209,870 195,788,664
Revenues 143,906,425 144,482,843 75,039,628 61,583,972 218,946,053 206,066,815
*For this presentation, 2014 column balances were not restated for prior period adjustments due to lack of
information and management’s desire to maintain comparability with prior reports.
•Government-wide net position was $335,671,308 as of December 31, 2015.
•Government-wide net position decreased by $134,841,066 or 28.7% during fiscal 2015.
Governmental activity net position decreased by $152,584,889 or 52.0% and business-
type activity net position increased by $17,743,823 or 10% during fiscal 2015. On an
overall basis, the City is worse off financially at December 31, 2015 than it was at
December 31, 2014 on a government-wide financial basis. The primary reason is the
implementation of the new pension accounting rules which were posted as a prior period
adjustment. The above table for 2014 has not been adjusted for these prior period
adjustments.
•Total assets and deferred outflows of resources as of December 31, 2015 of
$834,080,614 increased by $33,015,097 or 4.1% as compared to total assets and
deferred outflows of resources as of December 31, 2014.
•Total liabilities and deferred inflows of resources as of December 31, 2015 of
$498,409,306 increased by $167,856,163 or 50.8% as compared to total liabilities and
deferred inflows of resources as of December 31, 2014.
2015 CAFR MD&A 27
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
•As of December 31, 2015, the government-wide net position of $335,671,308 has
$299,603,075 invested in capital assets (net of debt) which is not available for spending,
$37,534,842 classified as restricted for debt service; capital outlay; and other; and a
negative ($1,466,609) classified as unrestricted.
•Government-wide revenue received in fiscal 2015 totaled $218,946,053, an increase of
$12,879,238 or 6.25% versus government-wide revenue received in fiscal 2014.
Governmental activity revenue decreased by $576,418 or .4%, whereas business-type
activity revenue increased by $13,455,656 or 21.8%.
•Government-wide expenses in 2015 totaled $226,209,870, an increase of $30,421,206
or 15.5% compared to expenses of $195,788,664 in 2014. Government activity
expenses increased by $24,401,135 or 17.4% and business-type activity expenses
increased by $6,020,071 or 10.8% compared to fiscal 2014.
•Explanatory commentary concerning the changes in assets, liabilities, revenue and
expenditures can be found in later sections of this MD&A.
Overview of the Financial Statements
The City of South Bend’s financial statements are comprised of three components: (1)
government-wide financial statements, (2) fund financial statements, and (3) notes to the
financial statements. This report also includes other supplementary information in addition to the
basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the City of South Bend’s finances using “accrual-based accounting,” a method of
accounting used by private sector businesses.
•Statement of Net Position
This statement reports all assets, deferred outflows of resources, liabilities, and deferred
inflows of resources of the City of South Bend as of December 31, 2015. The difference
between total assets and deferred outflows of resources less total liabilities and deferred
inflows of resources is reported as “net position,” and can generally be thought of as the
net worth of the City. Increases in net position generally indicate an improvement in
financial position while decreases in net position may indicate a deterioration of financial
position.
2015 CAFR MD&A 28
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
•Statement of Activities
This statement serves the purpose of the traditional income statement. It provides
consolidated reporting of the results of all activities of the City of South Bend for the year
ended December 31, 2015. Changes in net position are recorded in the period in which
the underlying event takes place, which may differ from the period in which cash is
received or disbursed. The statement of activities displays the expense of the City’s
various programs net of the related revenues, as well as a separate presentation of
revenue available for general purposes including property and county option income
taxes, fees for services and other revenue sources.
The government-wide financial statements distinguish between functions of the City that are
principally supported by taxes and intergovernmental revenue (governmental activities) and
other functions that are intended to recover all or a significant portion of their costs through
user fees and charges (business-type activities). The major governmental activities of the City of
South Bend include general government, public safety, street construction and maintenance,
infrastructure construction and maintenance, parks and recreation services, and arts and culture.
The major business-type activities of the City include the water utility, wastewater utility, solid
waste sanitation services, Century Center convention center, building department, emergency
medical services and the downtown parking garages.
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the City of South Bend can be divided into three
categories: governmental funds, proprietary funds and fiduciary funds. Each fund has its own
cash balance which must be maintained according to the City’s cash reserve policy.
Governmental Funds
Governmental funds are used to account for the same functions reported as governmental
activities in the government-wide financial statements. However, unlike government-wide
financial statements, governmental fund financial statements focus on short-term inflows and
outflows of spendable resources, as well as on balances of spendable resources available at the
end of the fiscal year. Such information may be useful in evaluating a government's short-term
financing requirements. Governmental funds use the modified accrual accounting method. The
City maintains seven (7) major governmental funds (General, Parks and Recreation, Public Safety
Local Option Income Tax (LOIT), County Option Income Tax, Economic Development Income
Tax, River West TIF and Redevelopment Authority Debt Service) and sixty-seven (67) non major
governmental funds.
2015 CAFR MD&A 29
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Proprietary Funds
The City of South Bend maintains two types of proprietary funds: enterprise and internal
service.
•Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City maintains eight (8)
enterprise funds. Information is presented separately in the proprietary statement of net
position and the proprietary statement of revenues, expenses and changes in fund net
position for the Water utility, Wastewater utility and Century Center, which are considered
major enterprise funds. Data from the other five (5) nonmajor enterprise funds
(Consolidated Building Department, Parking Garage, Solid Waste, Blackthorn Golf Course
and Emergency Medical Services) are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor enterprise funds is provided in the form of
combining statements elsewhere in this report.
•Internal service funds are used to accumulate and allocate costs internally among the City's
various functions and funds. The City maintains five (5) internal service funds. The City of
South Bend uses internal service funds to account for its self-funded liability insurance
program, self-funded employee health benefits program, unemployment compensation
claims, police take-home vehicle program and central services unit (a department that
accounts for expenses related to fuel, vehicle repairs, printing and other services provided to
City departments on a cost-reimbursement basis). Because these services predominantly
benefit governmental rather than business-type functions, they have been included within
governmental activities in the government-wide financial statements but are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual fund
data for the internal service funds is provided in the form of combining statements elsewhere
in the report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City
government. Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to support City programs. The City
maintains six (6) fiduciary funds, which consist of two (2) pension trust funds (1925 Police
Pension and 1937 Firefighters’ Pension), three (3) agency funds (Payroll, Police Distributions
Payable and Morris/Palais Royale Box Office), and one (1) private-purpose trust fund (City
Cemetery).
2015 CAFR MD&A 30
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Pension Trust Fund Operations
City employees are covered by the Public Employees Retirement Fund (PERF) and the 1977
Police Officers' and Firefighters' Pension Fund, both of which are administered by the State of
Indiana. However, certain police officers and firefighters hired before May 1, 1977 (who did not
opt into the 1977 fund) continue to be members of the 1925 Police Officers’ Pension Fund or
the 1937 Firefighters' Pension Fund. These two funds are administered by the City. The number
of police officers and firefighters in the City-managed pension trust funds will continue to decline
in the future as current participants pass away. The State makes certain contributions toward
the funding of the 1925 Police Officers’ and 1937 Firefighters’ pension plans.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential in order to
have a full understanding of the data provided in the government-wide and fund financial
statements.
Other Information
In addition to the basic financial statements and accompanying notes and disclosures, this CAFR
presents supplementary information (“Required Supplementary Information” or “RSI”)
immediately following the basic financial statements. Other supplementary information is found
in the Statistical Section. The combining statements referred to earlier in connection with non-
major governmental, non-major enterprise, internal service and fiduciary funds are presented
immediately after the Required Supplementary Information within the financial statement section
of the CAFR.
2015 CAFR MD&A 31
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Government-wide Financial Statements
The following financial analysis will focus on the statement of net position and statement of
changes in net position of the City’s governmental and business-type activities.
Statement of Net Position
Governmental Business-type Government-wide
Activities Activities Activities
2015 2014*2015 2014*2015 2014*
Assets
Cur rent and other $ 226,795,797 $ 214,391,686 $ 74,526,365 $ 64,664,042 $ 301,322,162 $ 279,055,728
Capital assets (net) 265,386,820 284,574,036 240,503,593 236,196,523 505,890,413 520,770,559
Total Assets 492,182,617 498,965,722 315,029,958 300,860,565 807,212,575 799,826,287
Deferred Outflows 24,454,180 -2,413,859 1,239,230 26,868,039 1,239,230
Liabilities
Cur rent 30,617,734 30,496,632 15,584,204 14,315,178 46,201,938 44,811,810
L ong ter m 324,909,155 174,715,186 106,707,120 110,277,807 431,616,275 284,992,993
Total Liabilities 355,526,889 205,211,818 122,291,324 124,592,985 477,818,213 329,804,803
Deferred Inflows 20,250,013 309,120 341,080 439,220 20,591,093 748,340
Net Position
Net investment in capital assets 157,604,691 168,275,521 141,998,384 136,685,811 299,603,075 304,961,332
Restricted 9,137,552 8,723,878 28,397,290 26,587,012 37,534,842 35,310,890
Unrestricted (25,882,348) 116,445,385 24,415,739 13,794,767 (1,466,609) 130,240,152
Total Net Position $ 140,859,895 $ 293,444,784 $ 194,811,413 $ 177,067,590 $ 335,671,308 $ 470,512,374
*For this presentation, 2014 column balances were not restated for prior period adjustments due to lack of
information and management’s desire to maintain comparability with prior reports.
•As of December 31, 2015, total assets and deferred outflows exceeded liabilities and
deferred inflows by $335,671,308, a decrease of $134,841,066, or 28.7%, from the net
position level as of December 31, 2014.
•Governmental activities net position of $140,859,895 decreased by $152,584,889, or 52.0%,
from December 31, 2014.
•Business-type net position of $194,811,413 increased by $17,743,823, or 10.0%, from
December 31, 2014. The increase in business-type net position was due primarily to a 5%
increase in sewer rates which will be used to support long-term capital projects of the
Wastewater utility and the reclassification of the Emergency Medical Services operations
from a governmental activity to a business-type activity during 2015 based on an ordinance
approved by the South Bend Common Council.
•Government-wide assets and deferred outflows increased by $33,015,097, or 4.1%, as
compared to amounts as of December 31, 2014 primarily due to the recording of deferred
outflows with respect to pensions under GASB Statement No. 68 at December 31, 2015.
2015 CAFR MD&A 32
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
•Government-wide liabilities and deferred inflows increased by $167,856,163, or 50.8%, as
compared to amounts as of December 31, 2014. The increase is due primarily to the
implementation of new accounting requirements for recording pension liabilities under GASB
Statement No. 68 at December 31, 2015.
Statement of Changes in Net Position
Governmental Business-type Government-wide
Activities Activities Activities
2015 2014*2015 2014*2015 2014*
Revenue
Program revenue:
Charge for services $ 6,529,359 $ 11,473,867 $ 69,997,286 $ 59,858,306 $ 76,526,645 $ 71,332,173
Operating grants 2,813,481 3,203,805 - - 2,813,481 3,203,805
Capital grants- - 4,683,424 95,834 4,683,424 95,834
General revenue:
Taxes
Property tax 72,032,049 69,221,468 - - 72,032,049 69,221,468
Other tax 24,507,308 23,822,661 - - 24,507,308 23,822,661
Unrestricted grants 25,487,112 29,061,942 - - 25,487,112 29,061,942
Investment earnings 1,322,674 951,901 358,918 128,168 1,681,592 1,080,069
Other revenue 11,214,442 6,747,199 -1,501,664 11,214,442 8,248,863
Total Revenue 143,906,425 144,482,843 75,039,628 61,583,972 218,946,053 206,066,815
Expenses
General government 21,572,776 19,013,453 - - 21,572,776 19,013,453
Public safety 56,528,448 68,783,155 - - 56,528,448 68,783,155
Highways and streets 20,045,444 13,031,500 - - 20,045,444 13,031,500
Culture and recreation 20,300,768 16,802,311 - - 20,300,768 16,802,311
Economic development 40,727,612 19,780,791 - - 40,727,612 19,780,791
Bond issuance costs 372,432 - - - 372,432 -
Interest on long-term debt 4,762,714 2,497,849 - - 4,762,714 2,497,849
Water utility- - 13,609,378 13,020,610 13,609,378 13,020,610
Wastewater utility- - 25,737,867 25,521,753 25,737,867 25,521,753
Civic center- - 4,854,747 4,747,838 4,854,747 4,747,838
Building department- - 3,552,347 3,242,320 3,552,347 3,242,320
Parking- - 2,139,182 1,660,596 2,139,182 1,660,596
Solid waste- - 5,243,972 5,811,526 5,243,972 5,811,526
Golf course- - 165,977 1,874,962 165,977 1,874,962
Emergency medical services- - 6,596,206 -6,596,206-
Total Expenses 164,310,194 139,909,059 61,899,676 55,879,605 226,209,870 195,788,664
Change in net position
Before transfers (20,403,769) 4,573,784 13,139,952 5,704,367 (7,263,817) 10,278,151
Special items - Disposal of operations- - (1,180,964)-(1,180,964)-
Transfers 2,846,415 (683,049) (2,846,415) 683,049 - -
Change in net position (17,557,354) 3,890,735 9,112,573 6,387,416 (8,444,781) 10,278,151
Beginning net position 158,417,249 289,554,049 185,698,840 170,680,174 344,116,089 460,234,223
(restated)
Ending net position $ 140,859,895 $ 293,444,784 $ 194,811,413 $ 177,067,590 $ 335,671,308 $ 470,512,374
*For this presentation, 2014 column balances were not restated for prior period adjustments due to lack of
information and management’s desire to maintain comparability with prior reports.
2015 CAFR MD&A 33
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Governmental Activities
Net position for governmental activities decreased by $17,557,354 during fiscal 2015, a decrease
of 11.1% from the restated balance of Net Position at December 31, 2014. Revenue of
$143,906,425 decreased by $576,418, or .4%. Expenses were $164,310,194 during 2015, an
increase of $24,401,135, or 17.4% as compared to fiscal 2014.
The governmental activities revenue decreases were due primarily to lower grant revenue for
community and economic development projects and the reclassification of Emergency Medical
Services to a business-type activity during 2015. Governmental activities expenses increased
significantly in highway and streets economic development due to higher spending on capital
projects including the smart streets two-way conversion of downtown streets, the Ignition Park
turbo project and the LaSalle Hotel renovation.
Business-type Activities
Net position from business-type activities increased by $9,112,573 during fiscal 2015, an
increase of 4.9% from the restated balance of Net Position at December 31, 2014. During
2015, business-type activities revenue of $75,039,628 increased by $13,455,656, or 21.8%, over
fiscal 2014. During 2015, business-type activities expenses of $61,899,676 increased by
$6,020,071, or 10.8%, when compared to fiscal 2014.
Revenue increased primarily in the Wastewater utility as a result of a 5% rate increase that was
approved by the South Bend Common Council along with the classification of Emergency
Medical Services (EMS) as a business-type activity in 2015. Expenses for EMS were also classified
as business-type activities during 2015.
Financial Analysis of Government Funds
The City of South Bend uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. Funds of the City are divided into three categories:
governmental funds, proprietary funds and fiduciary funds.
2015 CAFR MD&A 34
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Condensed Balance Sheet, Statement of Revenue, Expenditures, and Changes in Fund Balance As of December 31, 2015
Redevelopment
Authority Debt
General Park & Rec PS LOIT COIT EDIT River West TIF Service Other Total
Total assets $ 31,461,006 $ 3,977,754 $ 641,982 $ 13,852,167 $ 10,294,695 $ 44,549,416 $ 1,217,412 $ 110,565,226 $ 216,559,658
Total liabilities 838,950 157,272 88,715 792,557 65,472 2,806,268 -10,983,688 15,732,922
Fund Balances:
Nonspendable 491,665 45,197 -1,764,770 270,001 11,011,644 -13,950,624 27,533,901
Restricted -3,775,285 553,267 - - 30,731,504 1,217,412 76,727,038 113,004,506
Committed- - - - - - - 2,238,475 2,238,475
Assigned 466,088 - - 11,294,840 9,959,222 - - 10,883,997 32,604,147
Unassigned 29,664,303 - - - - - - (4,218,596) 25,445,707
Total fund balance 30,622,056 3,820,482 553,267 13,059,610 10,229,223 41,743,148 1,217,412 99,581,538 200,826,736
Liabilities and fund balance 31,461,006 3,977,754 641,982 13,852,167 10,294,695 44,549,416 1,217,412 110,565,226 216,559,658
Revenues 60,573,110 10,142,497 6,471,567 9,476,845 9,892,798 17,241,931 11,117 28,909,961 142,719,826
Expenditures 61,754,032 10,527,677 6,926,864 10,434,756 2,886,155 26,673,997 5,229,973 48,225,279 172,658,733
Net surplus (deficit) (1,180,922) (385,180) (455,297) (957,911) 7,006,643 (9,432,066) (5,218,856) (19,315,318) (29,938,907)
Other sources (uses) 4,215,573 922,515 - (2,499,361) (7,105,136) 9,810,004 2,296,854 32,089,275 39,729,724
Net change in fund
balances 3,034,651 537,335 (455,297) (3,457,272) (98,493) 377,938 (2,922,002) 12,773,957 9,790,817
Beginning fund balances 27,587,405 3,283,147 1,008,564 16,516,882 10,327,716 41,365,210 4,139,414 86,807,581 191,035,919
Ending fund balances 30,622,056$ 3,820,482$ 553,267$ 13,059,610$ 10,229,223$ 41,743,148$ 1,217,412$ 99,581,538$ 200,826,736$
As of December 31, 2015, the City governmental funds reported a combined ending fund
balance of $200,826,736.
The nonspendable fund balance of $27,533,901 is sequestered for property held for resale,
inventory, and long-term receivables and is, therefore, not available for new spending. The
restricted fund balance of $113,004,506 consists of monies in debt service funds or other funds
such as road and tax increment financing funds that are limited by external parties as to their
use. The committed fund balance of $2,238,475 is designated by the South Bend Common
Council or South Bend Redevelopment Commission to be used for certain purposes such as for
economic development projects. The assigned fund balance of $32,604,147 includes balances in
local option income tax funds that have not been committed to certain projects and are available
for spending by the City. The remaining unassigned fund balance of $25,445,707 consists of
money primarily in the General Fund that has not been obligated in any manner by the City less
deficits in certain nonmajor governmental funds due primarily to interfund advance transactions
to finance economic development projects that will be paid back over time.
The General Fund is the primary operating fund for City operations including general
government, public safety, certain culture and recreation expenses, and certain debt service
obligations.
As of December 31, 2015, the General Fund balance of $30,622,056 represents an increase of
$3,034,651, or 11.0% from the balance as of December 31, 2014. The increase was due
primarily to higher property tax revenue during 2015 than expected and lower spending for
public safety and administration than anticipated.
2015 CAFR MD&A 35
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
As of December 31, 2015, the General Fund had an unassigned fund balance of $29,664,303
which is equal to 48.0% of 2015 General Fund expenditures.
The General Fund unassigned fund balance has traditionally been used by the City to fund certain
capital projects and emergency contingencies. In addition, the City used the unassigned fund
balance in 2015 as a cash flow bridge to the receipt of property tax revenues from the County
collection authority which distributes property tax revenue twice per year (June and December).
The General Fund unassigned balance provided sufficient cash to cover City operating
obligations without incurring tax anticipation notes and resultant borrowing costs during fiscal
2015.
As discussed in Governmental Accounting, Auditing, and Financial Reporting (GAAFR), a General
Fund unassigned fund balance should be either 1) no less than 5 to 15 percent of regular General
Fund operating revenues, or 2) no less than one to two months of regular General Fund
operating expenditures. An unassigned fund balance may be higher if circumstances dictate, such
as a delay in collection of a major revenue source. The City has a policy to maintain fund
reserves equal to at least 30% of annual expenditures and exceeded this target at December 31,
2015.
The Parks and Recreation Fund balance increased $537,335 during fiscal 2015, due primarily
to a combination of higher property and tax revenue and transfers in and lower expenditures. As
of December 31, 2015, the fund balance in the Parks and Recreation Fund was $3,820,482, or
36.3% of 2015 expenditures. The City has a policy to maintain fund reserves equal to at least
25% of annual expenditures and exceeded this target at December 31, 2015.
The Public Safety Local Option Income Tax Fund (Public Safety LOIT) was created in
October 2009, with the local legislative passage of an increase in local option income taxes of
0.95%, a part of which (0.25%) tax increase was established to fund public safety expenditures.
The City has established the Public Safety LOIT Fund as a major governmental fund, due solely
to its purpose of creating a funding source to sustain public safety staffing levels, which were
compromised by state implementation of property tax reform that has reduced property tax
revenues, which historically are the source of public safety funding. Public Safety LOIT funds are
used to cover the personnel costs of police officers and firefighters. Receipts of Public Safety
LOIT tax revenue commenced in January 2010. Revenue in fiscal 2015 of $6,471,567 increased
by $85,726 or 1.3% compared to 2014. The decrease in fund balance in the amount of
$455,297 during 2015 was planned and is the result of increased costs for police and fire
personnel. The ending fund balance was $553,267, or 8.0% of annual expenditures, and meets
the City’s cash reserve policy goal of 8%.
The County Option Income Tax Fund (COIT) and Economic Development Income Tax
Fund (EDIT) funds are used to fund major capital and construction projects, economic
development initiatives, certain subsidies and support to organizations and units that benefit city
economic development and cultural venues, certain city-wide expenditures such as telephone
and information technology costs, and certain debt service payments.
2015 CAFR MD&A 36
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
The COIT fund balance decreased by $3,457,272 during 2015, due to higher expenditures for
the curb and sidewalk program and information technology. The City has operationally
sequestered COIT funds for use in major capital and construction funding initiatives, certain
subsidies and support to organizations and units that benefit city economic development and
cultural venues, information technology costs, city-wide expenditures like telephone and
electricity for street lights, and certain debt service payments.
As of December 31, 2015, the COIT Fund balance was $13,059,610, or 100% of 2015
expenditures and transfers out. This level of fund reserves is significantly higher than the City
policy target of 50%.
The EDIT Fund balance decreased by $98,493 during 2015 due to expenses related to initiatives
of the highest priority such as the commitment of demolition of vacant and abandoned buildings
and operating transfers to the Code Enforcement and Animal Care & Control Departments. The
City has operationally sequestered EDIT funds for use in major economic development
initiatives, certain subsidies and support to organizations and units that benefit city economic
development and cultural venues, operational costs of the street, code enforcement and
community investment departments and certain debt service payments.
As of December 31, 2015, the EDIT fund balance was $10,229,223, or 102% of 2015
expenditures and transfers out. The City policy target is 50%.
The fund balance in the River West TIF Fund (formerly known as the TIF Airport Fund)
increased by $377,938 during 2015. This change was the result of transfers in from other funds
of $10,763,908 resulting from TIF consolidation offset by higher expenditures for economic
development projects in the allocation area. The area of the River West TIF Fund was expanded
in 2015 to include a portion of the downtown central business district.
As of December 31, 2015, the River West TIF Fund balance of $41,743,148 included
$11,011,644 nonspendable fund balances (primarily property held for resale) and $30,731,504 in
restricted fund balances. This fund continues to be a major success for the City of South Bend
and has generated in excess of $645 million in private investment since its inception.
The Redevelopment Authority Debt Service Fund is a new major fund for 2015. The fund
accounts for lease rental payments from the City and the payment of debt service to
bondholders through trust agreements with financial institutions. During 2015, the 2008 Eddy
Street Commons Revenue bonds were refunded in this fund. The fund balance was $1,217,412
at December 31, 2015. The fund does not have a City reserve target and is not a budgeted fund.
During 2015, the fund balances in Nonmajor Governmental funds increased by $12,773,957
due primarily to bond proceeds on new debt issuance including the Century Center Energy
Conservation Bond ($4.17 million), Smart Streets Bond ($25.0 million) and the Parks/EDIT Bond
($5.6 million). A substantial portion of these bond proceeds were not spent at December 31,
2015.
2015 CAFR MD&A 37
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
The total balance in Nonmajor Governmental Funds was $99,581,538 at December 31, 2015.
These fund balances provide the necessary resources that the City requires to meet future
capital construction needs, ongoing debt service obligations, and economic development project
initiatives in order to fuel community growth within the City.
Individual fund data for each of the nonmajor governmental funds is provided in the form of the
combining statements immediately following the Required Supplemental Information within the
Financial Section of the CAFR.
Governmental Fund Revenue
The following schedule presents a summary of governmental fund revenue for the year ended
December 31, 2015 with comparison to the prior year:
2015% of 2014% of
Actual Total Actual Total
Tax Based
General property $ 71,525,988 50.1% $ 69,221,468 47.9%
County option income 15,326,102 10.7%15,025,840 10.4%
County economic development 9,181,206 6.4%8,796,821 6.1%
Professional sports development 626,192 0.5%588,054 0.4%
Total Tax 96,659,488 67.7%93,632,183 64.8%
Non-Tax Based
Licenses and permits 151,923 0.1%141,565 0.1%
Intergovernmental 30,216,059 21.2%30,663,505 21.1%
Charge for services 5,794,168 4.1%10,628,976 7.4%
Fines and forfeitures 454,327 0.3%563,999 0.4%
Interest income 1,253,242 0.9%955,376 0.7%
Other 8,190,619 5.7%7,904,187 5.5%
Total Non-Tax Based 46,060,338 32.3%50,857,608 35.2%
Total Revenue $ 142,719,826 100.0% $ 144,489,791 100.0%
Tax revenue continues to represent the most significant source of revenue required to support
services provided by the City. Property tax revenue is the primary source of funding for
governmental expenditures. Property tax revenue is based on a relationship between two
variables. The first variable is the assessed property valuation of industrial, commercial and
residential parcels for both real and personal property. The second variable is the application of
a tax rate to arrive at the total tax levy. Taxable property is assessed at 100% of the true tax
value. The amount of property tax levied (billed to property owners) is further restricted by
State of Indiana-enacted property tax legislative reform, the so-called “circuit breaker” property
tax caps in 2009, to no more than 1.0% (homestead), 2.0% (other residential/rental) or 3.0%
(commercial/industrial) of gross assessed valuation. Property tax revenue includes taxes
collected on behalf of the following funds: General Fund, Parks and Recreation Fund, Cumulative
Capital Development Fund, Redevelopment Commission Tax Incremental Financing (TIF) Funds,
Excess Levy Fund, and a special levy to cover debt service at the former College Football Hall of
Fame building.
2015 CAFR MD&A 38
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
The City recognizes the need to further diversify the revenue stream and to reduce its
dependency on general property taxes to ensure that a broad base of users of city services,
including nonresidents who work in the City, share in the funding of basic City services. As a
result of the need to diversify the revenue stream, the City of South Bend Common Council and
Saint Joseph County Council adopted an additional local option income tax of 0.95% during
2009, increasing the tax rate from 0.8% to 1.75%. The local option income tax increase
consisted of three components: 0.2% increase in the economic development income tax, a
0.25% public safety local option income tax and a 0.5% property tax relief local option income
tax. The property tax relief local option income tax does not result in any direct revenue to the
City but helps to reduce circuit breaker property tax losses.
The City continues to seek diversified sources of revenue that will reduce its reliance on
property and income taxes. The City has supported efforts of the Indiana Association of Cities
and Towns (IACT) “Hometown Matters” to lobby the state legislature to enable alternative
revenue sources that best fit the needs of the community. One viable source of revenue is from
user fees and/or charges for services currently being performed. City-performed services are
priced at levels representing the full cost of service, taking into consideration fees charged by
providers of similar services. The City performs ongoing reviews of user fee costs incurred and
revises service fee prices as required.
Total tax revenue was $96,659,488 during 2015 and increased by $3,027,305, or 3.23%, from
2014. This increase was due primarily to an improving local economic and housing market that
has increased local income taxes and general property taxes. Total non-tax based revenue was
$46,060,338 and decreased $4,797,270, or 9.4%, from 2014. This decrease was due primarily
to the classification of the Emergency Medical Services Fund from a governmental fund to an
enterprise Fund during 2015.
Governmental Fund Expenditures
The City accounts for government fund expenditures in seven functional categories as follows:
(1)general government, (2) public safety, (3) highways and streets, (4) community and economic
development, (5) culture and recreation, (6) bond issuance costs (7) debt service, and (8) capital
outlay.
2015 CAFR MD&A 39
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
The following schedule presents a summary of governmental fund expenditures for the year
ended December 31, 2015 with comparison to fiscal year 2014.
2015% of 2014% of
Actual Total Actual Total
General government $8,420,278 4.9% $8,022,688 5.2%
Public safety 61,889,405 35.9%66,927,250 43.4%
Highways and streets 12,787,641 7.4%10,441,957 6.8%
Community and economic development 11,068,013 6.4%7,309,130 4.7%
Culture and recreation 12,855,704 7.4%13,948,089 9.0%
Bond issuance costs 372,432 0.2%-0.0%
Debt service 18,711,690 10.8%18,243,049 11.8%
Capital outlay 46,553,570 27.0%29,407,934 19.1%
Total Expenditures $ 172,658,733 100.0% $ 154,300,097 100.0%
Government fund expenditures in fiscal 2015 of $172,658,733 increased by $18,358,636, or
11.9%, in comparison to government fund expenditures in fiscal 2014.
Capital outlay expenditures increased by $17,145,636, or 58.3%, during 2015 due primarily to
increased spending in tax increment financing funds, the County Option Income Tax Fund, the
Major Moves Fund, and other capital projects funds for important project like smarts streets,
information technology, Ignition Park and downtown residential and hotel infrastructure
development. The accumulation of fund reserves in these funds has occurred in prior years and
2015 was a year that many of the projects came to fruition.
Public Safety expenditures decreased by $5,037,845, or 7.5%, due to the classification of the
Emergency Medical Services Fund as an enterprise fund in 2015.
Public Safety expenditures continue to be the primary use of government fund resources with
35.9% of expenditures used for this purpose in fiscal 2015. Public safety spending is followed by
capital outlay expenditures (27.0%), debt service (10.8%), community and economic
development (6.4%), culture and recreation (7.4%), highways and streets (7.4%), general
government (4.9%) and bond issuance (.2%). General government spending is comprised of the
executive offices of the Mayor, Common Council, City Clerk, City Attorney, Controller,
Engineering and other administrative functions. General government expenditures of less than
5% is lower than the average of other comparable municipal governments based on a study
conducted by the Department of Administration and Finance in 2015.
2015 CAFR MD&A 40
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Proprietary funds
Condensed Statement of Net Position Revenue, Expenses, and Changes in Fund Net Position
As of December 31, 2015
Total assets $ 72,814,076 $ 192,580,050 $ 21,760,848 $ 27,891,590 $ 315,046,564 $ 13,756,528
Total deferred outflows 18,812 2,395,047 - - 2,413,859 -
Total liabilities 20,927,456 91,957,468 293,150 9,129,856 122,307,930 3,278,488
Total deferred inflows- - 335,417 5,663 341,080 -
Net position:
Net investment in capital assets 40,782,405 74,650,027 19,463,920 7,102,032 141,998,384 1,294,520
Restricted for:
Depreciation fund 2,876,026 8,723,058 - - 11,599,084 -
Debt service fund 4,398 804,674 - - 809,072 -
Customer repair and deposit fund 1,509,816 1,647,834 - - 3,157,650 -
Cash with fiscal agent 32,120 77,071 -112,361 221,552 -
Bond reserve fund 1,604,996 4,105,623 - -5,710,619 -
Operating reserve fund 2,228,964 3,668,277 5,897,241 -
Capital outlay- - 1,002,072 -1,002,072-
Unrestricted 2,866,707 9,341,065 666,289 11,541,678 24,415,739 9,183,520
Total net position 51,905,432 103,017,629 21,132,281 18,756,071 194,811,413 10,478,040
Operating revenues 14,204,285 36,635,501 2,817,114 14,868,943 68,525,843 23,251,875
Operating expenses 12,618,661 20,008,518 4,854,747 16,655,967 54,137,893 23,698,855
Operating income (loss) 1,585,624 16,626,983 (2,037,633)(1,787,024)14,387,950 (446,980)
Nonoperating rev (exp)(913,191)(5,484,681)1,386,259 (919,809)(5,931,422)49,254
Income (loss) before contributions and
transfers 672,433 11,142,302 (651,374)(2,706,833)8,456,528 (397,726)
Capital contributions- - 4,683,424 -4,683,424 -
Disposal of property- - - (1,180,964)(1,180,964)-
Transfers in- - - 2,663,144 2,663,144 -
Transfers out (1,942,608)(3,497,207)(50,000)(19,744)(5,509,559)-
Change in net position (1,270,175)7,645,095 3,982,050 (1,244,397)9,112,573 (397,726)
Total net position – beginning 53,175,607 95,372,534 17,150,231 20,000,468 185,698,840 10,875,766
Total net position – ending $ 51,905,432 $ 103,017,629 $ 21,132,281 $ 18,756,071 $ 194,811,413 $ 10,478,040
Internal ServiceWater Utility
Wastewater
Utility Century Center Other Total Enterprise
The City of South Bend maintains two types of proprietary funds: enterprise and internal
service.
The City maintains eight (8) enterprise funds. Information is presented separately in the
Proprietary Statement of Net Position, the Proprietary Statement of Revenues and
Expenditures, and Changes in Fund Net Position for the Water Utility, Wastewater Utility and
Century Center, which are considered major enterprise funds. Data from the other five (5)
non-major enterprise funds (Consolidated Building Department, Parking Garage, Solid Waste,
Blackthorn Golf Course, and Emergency Medical Services) are combined into a single,
aggregated presentation.
2015 CAFR MD&A 41
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
The City maintains five internal service funds. The City of South Bend uses internal service funds
to account for its business insurance and self-funded liability insurance program, self-funded
employee health benefits program, police take-home vehicle program, unemployment
compensation claims and central services unit (a department that accounts for expenses related
to fuel, vehicle repairs, printing and other services provided to City departments on a cost-
reimbursement basis). The internal service funds have been combined into a single, aggregated
presentation.
As of December 31, 2015, City enterprise funds reported a net position of $194,811,413, an
increase of $9,112,573, or 4.9%, from the restated net position at December 31, 2014.
At December 31, 2015, net position includes net investment in capital assets of $141,998,384,
restricted net position of $28,397,290 and unrestricted net position of $24,415,739.
During 2015, the Water utility experienced a decrease in net position of $1,270,175 and the
Wastewater utility experienced an increase in net position of $7,645,095. The Water utility
experienced decreased operating revenues of $168,891 while the Wastewater utility
experienced an increase in operating revenue of $2,626,384. The Wastewater utility had the
benefit of a 5% rate increase during 2015 but the Water utility had no rate increase. Through a
series of sewer rate increases approved by the South Bend Common Council, the Wastewater
utility continues to build its fund balances in order to pay for the mandated Long Term Control
Plan, a multi-year program being built by the City to control wastewater overflow events. The
City is currently studying the viability of a rate increase for the Water utility but no decision has
been made on this issue.
During 2015, Century Center experienced an increase in net position of $3,982,050, primarily
as the result of capital contributions for improvements made at the facility from the Century
Center Energy Conservation bond (a governmental fund) and the Saint Joseph County
Hotel/Motel Tax Fund.
Nonmajor Enterprise Funds experienced a decrease in net position of $1,244,397 during
2015. The Parking Garage Fund reported a decrease in net position of $1,164,054 primarily as
the result of the amortization of sales/leaseback charges on the original acquisition and higher
operating and capital costs. The Blackthorn Golf Course Fund was sold to a private developer
for $1,472,130 in March 2015 and the fund was closed out. The Consolidated Building Fund
reported an increase in net position of $1,155,744 during 2015 as the result of underspending
budgeted monies. The Solid Waste Fund reported an increase in net position of $123,198 but
continues to accumulate capital lease debt to finance new trash trucks. A solid waste fee
increase of 9.1% was approved for 2016 to help shore up the finances of the fund.
2015 CAFR MD&A 42
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
As of December 31, 2015, City’s internal service funds reported net position of $10,478,040, a
decrease of $397,726, or 3.66%, compared to restated net position at December 31, 2014. The
Liability Insurance Fund decreased its net position by $962,346 in 2015 as the result of high
claims paid and estimates for future claims. The Central Services Fund increased its net position
by $122,416. The Self-Funded Employee Benefits Fund had an increase in its net position of
$282,596 due to a 20% employer rate increase and more modest growth in medical insurance
claims. In January 2016, the City opened the Activate Health and Wellness Center for the benefit
of employees and their families and to control future health care cost increases.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. The City maintains six fiduciary funds, which consist of two pension trust funds
(1925 Police Pension and 1937 Firefighters’ Pension), one private-purpose trust fund
(Cemetery) and three agency funds (Payroll, Police Distributions Payable and Morris/Palais
Royale Box Office).
Pension Trust Private Purpose Trust Agency
Total assets $1,629,896 $28,543 $2,752,256
Total liabilities 428 -2,752,256
Total net position 1,629,468 28,543 -
Total additions 11,427,164 164 -
Total deductions 11,547,520 - -
Changes in net position(120,356)164 -
Effective in fiscal 2009, with the passage of State legislation, the State of Indiana began making
contributions to the 1925 Police and 1937 Firefighters’ Pension Funds. These funds no
longer receive property tax revenue distributions beyond fiscal 2009. The administration of the
pension plans is the responsibility of the City.
The decline in the net asset position of the pension trust is the result of timing differences in the
payment of pension benefits and the contributions received from the State of Indiana (the State
reimburses in June and September for expenses paid in the previous calendar year), as well as
the cost of healthcare benefits to pension members which are not covered by State
contributions. In 2016, the regular Fire Department budget will pay retiree health care costs
while this change will occur in 2017 for the Police Department. In other words, the 1925 Police
and 1937 Firefighters’ pension funds will no longer pay retiree health insurance costs. Rather,
these costs will be paid from the regular police and fire operating budgets.
2015 CAFR MD&A 43
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
General Fund Budgetary Highlights
The City prepares an annual budget for General Fund expenditures, which is subject to City of
South Bend Common Council approval for adoption, before November 1 of the year preceding
the budget period, according to state statute concerning the annual budget of second class cities
and towns. The Common Council adopted the 2015 budget at its meeting held in October
2014.
The General Fund budget applicable for fiscal 2015 is reported as follows:
Actual Budgetary
Original Final Basis Variance
Revenue $ 52,642,236 $ 54,344,268 $53,719,617 $(624,651)
Expenditures 52,642,236 53,379,131 52,454,314 924,817
Surplus (deficit)-965,137 1,265,303 300,166
General Fund revenue/transfers in was originally budgeted at $52,642,236 for fiscal 2015. During
the year, the General Fund revenue/transfers in budget was increased by $1,702,032 to
$54,344,268. The budget may be increased or decreased at any time based on updated revenue
projections. By closely aligning the budget with actual results, more meaningful analysis is made
possible. The revenue/transfers in budget was increased primarily due to an increase in the
property tax and intergovernmental revenue estimate because of higher collections than
anticipated.
During 2015, the General Fund collected $53,719,617 in revenue/transfers in on a budgetary
basis, which was $1,077,381 higher than the original budget. The primary reason for the revenue
pickup was a change in property tax collections that were higher than budgeted and additional
intergovernmental revenue.
General Fund expenditures/transfers out were originally budgeted at $52,642,236 for fiscal
2015. During the year, the General Fund expenditure/transfers out budget were increased
$736,895 to $53,379,131. Additional appropriations were passed for Fire Department overtime
and other purposes. Carryforward of unspent encumbrances from 2014 also increased the 2015
amended budget.
General Fund spending is reviewed on a monthly basis under the direction of the City Controller
to ensure spending remains within budgetary constraints. Monthly reviews are conducted as
required with General Fund department management to review spending projections to ensure
that annual expenditures remain within the budgetary levels. Budget amendments for cost-
neutral redistribution between expense categories (i.e., personnel, supplies, services, capital)
were submitted to Common Council four times during 2015, as required to adjust the budget to
prevent any budget overruns in any expenditure category.
2015 CAFR MD&A 44
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Additional appropriations for projects, initiatives, or unbudgeted spending requirements within
the General Fund are presented to the Common Council for adoption as deemed necessary by
the Mayor.
General Fund expenditures/transfers out incurred on a budgetary basis, including cash expended
and outstanding encumbrances as of year-end December 31, 2015, amounted to $52,454,314.
The expenditures/transfers out and commitments as of year-end December 31, 2015 are less
than the 2015 amended General Fund budget by $924,817 or 1.7%. The largest savings were in
the police, legal and administration/finance department budgets as personnel and other costs
spent were less than budgeted due to position vacancies and other factors. In addition, a
budgeted transfer of $500,000 from the General Fund to the Emergency Medical Services (EMS)
Fund for capital was not made due to special Medicaid collections received in the EMS Fund.
Capital Assets and Debt Administration
Statement of Capital Assets
Governmental Business type Government-wide
Activities Activities Activities
2015 2014 (restated)2015 2014 (restated)2015 2014 (restated)
Assets not depreciated
L and $ 15,106,806 $ 15,106,806 $ 2,614,016 $ 3,773,864 $ 17,720,822 $ 18,880,670
Construction in progress 5,339,423 3,698,336 16,644,050 17,242,386 21,983,473 20,940,722
Total 20,446,229 18,805,142 19,258,066 21,016,250 39,704,295 39,821,392
Assets depreciated
Buildings 128,082,279 128,065,629 85,178,794 87,683,548 213,261,073 215,749,177
Non-buildi ng improvements 16,616,553 16,616,553 28,186,217 29,427,578 44,802,770 46,044,131
Machinery and equipment 45,543,924 46,700,042 40,171,610 36,453,578 85,715,534 83,153,620
Roads and Infrastructure 434,344,887 431,536,099 199,721,525 197,923,650 634,066,412 629,459,749
Total Cost 624,587,643 622,918,323 353,258,146 351,488,354 977,845,789 974,406,677
Accumulated depreciation
Buildings 47,274,258 43,717,720 34,631,698 35,773,700 81,905,956 79,491,420
Non-buildi ng improvements 9,242,882 8,708,806 6,193,452 6,982,898 15,436,334 15,691,704
Machinery and equipment 30,808,402 29,554,115 22,524,631 23,957,630 53,333,033 53,511,745
Roads 292,321,510 280,745,718 68,662,837 64,016,923 360,984,347 344,762,641
Total 379,647,052 362,726,359 132,012,618 130,731,151 511,659,670 493,457,510
Net Depreciated Assets 244,940,591 260,191,964 221,245,528 220,757,203 466,186,119 480,949,167
$ 520,770,559 Net Capital Assets $ 265,386,820 $ 278,997,106 $ 240,503,594 $ 241,773,453 $ 505,890,414
The investment in capital assets includes land and land improvements, buildings and building
improvements, vehicles, information technology equipment, machinery and equipment, and
construction in progress. A detailed explanation of these capital assets can be found in the Notes
to the Basic Financial Statements.
Under the category of roads and infrastructure, the current cost amount of $634,066,412
includes estimated costs derived primarily from the City’s 2006 implementation of GASB
Statement No. 34, which required the retroactive reporting of infrastructure capital assets. All
other assets are recorded at historical cost.
2015 CAFR MD&A 45
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Major Capital Asset Project Spending in 2015
Included in capital asset additions for 2015 were the following projects:
•Century Center - $4.9 million – specialty lighting, HVAC upgrades and other
improvements financed by a bond, county hotel/motel tax and other sources.
•Infrastructure - $2.8 million – street improvements on Lincoln Way, Madison, Marion and
Fellows/Ireland Road finance by TIF and bond sources.
•Police Department - $1.6 million – for replacement vehicles and equipment financed by
capital leases and other sources.
•Wastewater - $5.7 million – for wastewater plant and sewer improvements financed by
bond proceeds and other sources.
Capital Assets Analysis
As of December 31, 2015, government-wide capital assets were valued at $505,890,414, net of
accumulated depreciation, a decrease of $14,880,145, or 2.85%, since December 31, 2014.
Construction in Progress increased by $1,042,751, and capitalized assets in land, buildings,
improvements, machinery and equipment, and roads decreased by $15,922,896, net of
depreciation, since December 31, 2014. On January 1, 2013, the City instituted a new
capitalization policy that included significantly higher thresholds for expenditures to qualify as
capital assets. Consequently, many purchases formerly considered as capital assets no longer
qualify as such. The asset decrease is the result of fewer assets being added to the register as
those assets that remain continue to depreciate.
At December 31, 2015, the cost of Roads & Infrastructure ($634,066,412) was the major asset
class followed by Buildings ($213,261,073) and Machinery & Equipment ($85,715,534).
Total depreciation expense was $30,426,526 for 2015, as compared to $29,930,159 for 2014.
Depreciation expense was $19,905,882 for governmental activities and $10,520,644 for
business-type activities for 2015.
Additional information on capital assets can be found in the notes to the financial statements in
Note 6.
2015 CAFR MD&A 46
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Debt Administration
Outstanding debt principal as of December 31, 2015 was $251,637.449, an increase of
$16,551,579, or 7.0%, from 2014. City outstanding debt includes revenue bonds, mortgage
bonds, notes and loans payable and capital leases.
Type Beginning Additions Retirements Ending
Revenue bonds 196,072,386$ 89,495,000$ (74,879,575)$ 210,687,811$
Mortgage bonds 21,812,152 - (2,055,614) 19,756,538
Notes and loans 5,412,155 4,167,897 (1,289,401) 8,290,651
Capital leases 11,789,177 4,860,622 (3,747,350) 12,902,449
Total Debt 235,085,870$ 98,523,519$ (81,971,940)$ 251,637,449$
During 2015, the City entered into several new bond financing agreements to finance various
improvements for street infrastructure, parks and at Century Center. The City of South Bend
Redevelopment Commission issued $25 million dollars in revenue bonds for the “smart streets”
downtown two-way conversion project. The City of South Bend Building Corporation issued
$5.6 million dollars in EDIT bonds to finance parks improvements. The City issued an Energy
Conservation loan in the amount of $4.17 million to finance improvements at the Century
Center, with the backing of a future funding pledge from the Saint Joseph County Hotel/Motel
Tax Board and an interest rebate program with the federal government. In addition, during
2015, the City issued 2015 Eddy Street Commons bonds ($31.5 million dollars) and 2015 Sewer
Bonds ($27.4 million dollars) to refund existing debt and realize net present value savings and
lower future debt service costs.
During 2015, the City entered into capital lease agreements in the amount of $4.86 million to
purchase certain vehicles, copiers, and equipment. The lease terms are typically for five years
with semi-annual debt service paid from the operating budgets of the user departments. Capital
lease financing is used to acquire police vehicles, public works vehicles, computer replacements,
copiers and other vehicles and equipment. The City solicits competitive financing proposals for
lease financing from local and national companies and the interest rate achieved during 2015 was
on average less than 2% for these leases.
Under the Indiana Constitution and State statute, the City's general obligation bonded debt and
certain other debt is subject to a legal limitation based upon 2% of total assessed value of real
and personal property. The City had no general obligation bonded debt outstanding at
December 31, 2015 and none of the above debt issuance amounts are subject to this debt
limitation. A calculation of the City’s legal debt limitation can be found in the statistical debt
capacity section of this document.
Additional information on debt can be found in the Notes to Financial Statements in Note 8 -
Leases and Note 9 - Long-term Debt.
2015 CAFR MD&A 47
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Significant Subsequent Events
On November 24, 2014, the City of South Bend submitted documents to participate in the
Municipalities Continuing Disclosure Cooperation Initiative (MCDC) with the United States
Securities and Exchange Commission. Effective January 1, 2015, the City adopted a new bond
continuing disclosure procedure. In May 2016, the City was contacted by the Security and
Exchange Commission and is in the process of negotiating a settlement agreement of this matter
which involves no monetary penalty.
In April 2016, the City of South Bend entered into Intergovernmental Agreements with the
Pokagon Band of the Potawatomi Indians for the development of the Pokagon Band’s 166-acre
site on the City’s southwest side that is expected to be the home of the Tribal Village and Four
Winds Casino, pending approval from the Bureau of Indian Affairs. The City may receive certain
revenue from this agreement but the amount has yet to be determined.
In 2016, the Indiana General Assembly authorized a special distribution of county option income
taxes to local governments in the State. The City of South Bend’s share, which was received in
May 2016, was $5,623,399 and was allocated $4,217,549 (75%) for road projects and
$1,405,850 (25%) in the Rainy Day Fund consistent with allowable State guidelines.
Economic Factors and 2016 Budget
Economic Factors
Property tax revenue, historically and at present, is the principal source of revenue for funding of
governmental activities within the City of South Bend.
The State of Indiana General Assembly enacted property tax reform legislation in March 2008.
Known as the “Circuit Breaker”, House Enrolled Act 1001 (HEA 1001) limits property taxes
paid to 1% of gross assessed value for residential homesteads, 2% for agricultural/rental
properties, and 3% for all other real and personal property.
Under current legislation, all Indiana localities assess properties based on market values. Each
year properties are “trended”, which involves comparing property values to sales activity in the
neighborhood and adjusting the current assessed values up or down according to the trended
data.
The Circuit Breaker legislation was phased in commencing in fiscal 2009 and has led to significant
reductions in property tax revenues available to fund city governmental operations since then. In
2015, the primary funds supported by property taxes (General Fund, Parks and Recreation
Fund, and Cumulative Capital Development Fund) lost approximately $31.6 million in taxable
property tax levy due to the circuit breaker caps (Indiana Legislative Services Agency, Circuit
Breaker Report, December 2015).
2015 CAFR MD&A 48
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
As a consequence of the state enacted legislation in 2008, the City enacted a 0.95% local option
income tax increase to partially offset the property tax revenue loss. The local option tax
increase became effective in October 2009, and has resulted in an increase in local income taxes
available to the City to fund ongoing governmental operations of public safety, parks and
recreation, highways and streets and general government.
Management of the City of South Bend will continue to oversee the financial affairs from a
posture of fiscal conservatism similar to the management practices engaged in during fiscal 2015.
Special attention will be given to maintaining adequate fund reserves in the General Fund and the
income tax funds as they are very important to the continued financial strength of the City.
City Management believes that the national economic recovery will continue according to the
predictions of governmental economists, with low to zero inflation over the next fiscal period. In
addition, job creation is the primary engine to drive economic recovery, as the Congressional
Budget Office (CBO) predicts a growth in Gross Domestic Product (GDP) of 4.4% for 2016.
Unemployment rates in the South Bend-Mishawaka Metropolitan Area continue to improve and
were 5.3% in March 2016 as compared to a high of 13.0% in January 2010 (Bureau of Labor
Statistics).
2016 Budget and Beyond
The City will engage to ensure effective delivery of required services to taxpayers and citizens
within the constraints of available financial resources. The City will continue to provide required
services within the constraints of a balanced General Fund budget. For 2016 and 2017, the City
has enacted a “zero growth” budget expenditure target goal for all funds supported by property
and income tax revenue. In addition, the City has engaged in a process of program budgeting
with the Center for Priority Based Budgeting for the 2017 budget. This program budgeting will
be in addition to the state-required fund and account budgeting through the Indiana Department
of Local Government Finance.
Preliminary projections of circuit breaker property tax losses indicate a potential decline of
property tax revenue of $2.54 million dollar in the General Fund, $510 thousand dollars in the
Parks & Recreation Fund and $3.8 million dollars in the Tax Increment Financing funds in fiscal
year 2020 due to the expiration of some special credits to local governments in Saint Joseph
County and Lake County. City Management is aware of this fiscal situation and is developing
strategies to address this matter. One strategy is to maintain a well-financed Rainy Day Fund.
This fund received a special distribution of county option income tax funds of $1.4 million dollars
in May 2016 and had cash reserves of $10.2 million dollars at May 31, 2016. No spending is
currently planned for this fund.
2015 CAFR MD&A 49
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Through its Office of Innovation, the City continues to pursue reengineering programs targeted
to create efficiency and cost improvements within City operations. These include purchasing
process reengineering, back-office process improvements for human resources, performance
management and other customer service operations. These initiatives, upon successful
deployment completion, will achieve the desired results to create efficiency gains in the delivery
of services to taxpayers.
The City is committed to creating a budget for fiscal 2017 that will remain fiscally responsible to
the effective delivery of required services to city citizens and stakeholders within the existing
revenue constraints. Specific concerns for the 2017 budget include the continuing impact of
circuit breaker property tax reform on City revenue, high health and pension costs and other
stagnant or declining revenue sources such as gasoline, wheel and auto excise taxes.
Requests for Information
This Management’s Discussion and Analysis, as contained within the City of South Bend
Comprehensive Annual Financial Report, is intended to provide readers with a general overview
of the financial condition of the City of South Bend as of December 31, 2015. Questions
concerning any of the information provided in this report, or requests for additional information,
should be addressed to:
John H. Murphy, City Controller
City of South Bend
Department of Administration and Finance
227 W. Jefferson Boulevard, 12th Floor
South Bend, Indiana 46601
Telephone 574-235-7678
Facsimile 574-235-9928
Email jmurphy@southbendin.gov
City of South Bend
June 30, 2016
2015 CAFR MD&A 50
City of South Bend, Indiana
Statement of Net Position
December 31, 2015
Primary Government
Governmental
Activities
Business-type
Activities Total
Assets
Cash and cash equivalents$66,065,948$4,691,879$70,757,827
Investments 127,318,854 16,959,261 144,278,115
Receivables:
Taxes 1,014,875-1,014,875
Accounts 1,071,313 8,220,214 9,291,527
Interest 253,448 92,362 345,810
Intergovernmental 2,736,675-2,736,675
Loans 6,644,346-6,644,346
Allowance for doubtful accounts-(130,000)(130,000)
Internal balances(19,368)19,368-
Inventory 896,684 532,596 1,429,280
Prepaid expenses 412,533 69,034 481,567
Restricted assets 60,300 44,071,651 44,131,951
Property held for resale 15,019,163-15,019,163
Net pension asset 5,321,026-5,321,026
Capital assets:
Assets not subject to depreciation 20,446,229 19,258,063 39,704,292
Assets subject to depreciation 244,940,591 221,245,530 466,186,121
Total assets 492,182,617 315,029,958 807,212,575
Deferred Outflows of Resources
Unamortized loss on refunding 2,520,464 2,413,859 4,934,323
Deferred outflows related to pensions 21,933,716-21,933,716
Total deferred outflows of resources 24,454,180 2,413,859 26,868,039
Liabilities
Accounts payable 7,609,656 2,573,023 10,182,679
Due to other governmental units-160,098 160,098
Performance deposits payable 82,138 37,437 119,575
Accrued liabilities and other:
Accrued payroll payable 859,468 297,135 1,156,603
Accrued interest payable 142,241 281,553 423,794
Taxes payable 1,628-1,628
Customer deposits payable-1,635,376 1,635,376
Other current payables 11,465 118,173 129,638
Noncurrent liabilities:
Due within one year -
Accrued interest payable from restricted assets 1,696,265-1,696,265
Compensated absences 4,604,779 595,102 5,199,881
Notes and loans payable 184,371 345,456 529,827
Mortgage bonds payable 1,691,120 288,880 1,980,000
Claims payable 2,574,044-2,574,044
Capital leases 2,565,559 1,381,971 3,947,530
Revenue bonds payable 8,595,000 7,870,000 16,465,000
Government-Wide Financial Statements 51
City of South Bend, Indiana
Statement of Net Position (Continued)
December 31, 2015
Primary Government
Governmental
Activities
Business-type
Activities Total
Liabilities (Continued)
Noncurrent liabilities (Continued) -
Due in more than one year:
Notes and loans payable$4,647,381$3,113,443$7,760,824
Mortgage bonds payable 12,213,853 5,562,685 17,776,538
Capital leases 5,925,848 3,029,071 8,954,919
Net OPEB obligation 11,660,935-11,660,935
Net pension liability 191,240,248-191,240,248
Revenue bonds payable 99,220,890 95,001,921 194,222,811
Total liabilities 355,526,889 122,291,324 477,818,213
Deferred Inflows of Resources
Unamortized service agreement-335,417 335,417
Unamortized gain on sale/leaseback-5,663 5,663
Deferred inflows related to pensions 20,250,013-20,250,013
Total deferred inflows of resources 20,250,013 341,080 20,591,093
Net Position
Net investment in capital assets 157,604,691 141,998,384 299,603,075
Restricted for:
Debt service 5,858,374 809,072 6,667,446
Depreciation fund-11,599,084 11,599,084
Customer repair and deposit fund-3,157,650 3,157,650
Cash with fiscal agent-221,552 221,552
Bond reserve fund 3,279,178 5,710,619 8,989,797
Operating reserve fund-5,897,241 5,897,241
Capital outlay-1,002,072 1,002,072
Unrestricted(25,882,348)24,415,739(1,466,609)
Total net position$140,859,895$194,811,413$335,671,308
Government-Wide Financial Statements 52
City of South Bend, Indiana
Program Revenues
Expenses
Charges for
Services
Operating Grants
and
Contributions
Capital Grants
and
Contributions
Functions/Programs
Primary government:
Governmental activities:
General government$21,572,776$1,188,531$485,764$-
Public safety 56,528,448 529,386 2,545-
Highways and streets 20,045,444 676,429--
Community and economic development 40,727,612 408,654 1,698,980-
Culture and recreation 20,300,768 3,726,359 626,192-
Bond issuance costs 372,432---
Interest on long-term debt 4,762,714---
Total governmental activities 164,310,194 6,529,359 2,813,481-
Business-type activities:
Water Utility 13,609,378 14,204,285--
Wastewater Utility 25,737,867 36,638,804--
Century Center 4,854,747 4,202,564-4,683,424
Consolidated Building 3,552,347 2,037,950--
Parking Garage 2,139,182 968,417--
Solid Waste 5,243,972 5,364,871--
Blackthorn Golf Course 165,977 109,949--
Emergency Medical Services 6,596,206 6,470,446--
Total business-type activities 61,899,676 69,997,286-4,683,424
Total primary government$226,209,870$76,526,645$2,813,481$4,683,424
General revenues:
Property taxes
Income taxes
Grants and contributions not restricted to specific programs
Investment income
Other miscellaneous income
Gain on sale of fixed assets
Total general revenues
Special Item- Disposal of operations
Transfers
Change in Net Position
Net Position- Beginning of year (as restated)(Note 25)
Net Position- End of year
Government-Wide Financial Statements 53
Statement of Activities
Year Ended December 31, 2015
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental
Activities
Business-type
Activities Total
$(19,898,481)$-$(19,898,481)
(55,996,517)-(55,996,517)
(19,369,015)-(19,369,015)
(38,619,978)-(38,619,978)
(15,948,217)-(15,948,217)
(372,432)-(372,432)
(4,762,714)-(4,762,714)
(154,967,354)-(154,967,354)
-594,907 594,907
-10,900,937 10,900,937
-4,031,241 4,031,241
-(1,514,397)(1,514,397)
-(1,170,765)(1,170,765)
-120,899 120,899
-(56,028)(56,028)
-(125,760)(125,760)
-12,781,034 12,781,034
(154,967,354)12,781,034(142,186,320)
72,032,049-72,032,049
24,507,308-24,507,308
25,487,112-25,487,112
1,322,674 358,918 1,681,592
9,978,698-9,978,698
1,235,744-1,235,744
134,563,585 358,918 134,922,503
-(1,180,964)(1,180,964)
2,846,415(2,846,415)-
(17,557,354)9,112,573(8,444,781)
158,417,249 185,698,840 344,116,089
$140,859,895$194,811,413$335,671,308
Government-Wide Financial Statements 54
City of South Bend, Indiana
General Fund
Parks and
Recreation
Public Safety
LOIT COIT EDIT
Assets
Cash and cash equivalents$5,899,634$793,970$130,023$2,447,792$1,999,978
Investments 24,517,570 3,119,955 510,935 9,618,756 7,859,043
Receivables:
Taxes-----
Accounts 466,784 3,421-1,457 150,000
Interest 48,584 6,154 1,024 19,210 15,673
Intergovernmental-----
Loans-----
Due from other funds 36,769 9,057-182-
Advances to other funds 491,665--1,589,771-
Inventory-45,197---
Property held for resale---174,999 270,001
Restricted assets-----
Total assets$31,461,006$3,977,754$641,982$13,852,167$10,294,695
Liabilities
Accounts payable$159,795$71,705$-$788,267$65,387
Due to other funds 20,202 6,506--85
Advances from other funds-----
Performance deposits payable 78,906----
Accrued liabilities and other:
Accrued payroll payable 579,249 76,870 88,715 4,290-
Taxes payable 798 830---
Other current payables-1,361---
Total liabilities 838,950 157,272 88,715 792,557 65,472
Fund Balances
Nonspendable 491,665 45,197-1,764,770 270,001
Restricted-3,775,285 553,267--
Committed-----
Assigned 466,088--11,294,840 9,959,222
Unassigned 29,664,303----
Total fund balances 30,622,056 3,820,482 553,267 13,059,610 10,229,223
Total liabilities and fund
balances$31,461,006$3,977,754$641,982$13,852,167$10,294,695
Fund Financial Statements 55
Governmental Funds
Balance Sheet
December 31, 2015
River West TIF
Redevelopment
Authority Debt
Service Nonmajor Funds Total
$6,629,106$1,217,412$44,632,291$63,750,206
26,049,496-46,650,201 118,325,956
531,011-483,864 1,014,875
--405,288 1,026,950
51,868-92,947 235,460
--2,736,675 2,736,675
403,714-6,240,632 6,644,346
--1,373 47,381
--5,571,713 7,653,149
---45,197
10,884,221-3,689,942 15,019,163
--60,300 60,300
$44,549,416$1,217,412$110,565,226$216,559,658
$2,303,036$-$3,704,218$7,092,408
--39,255 66,048
500,000-7,153,149 7,653,149
3,232--82,138
--77,085 826,209
---1,628
--9,981 11,342
2,806,268-10,983,688 15,732,922
11,011,644-13,950,624 27,533,901
30,731,504 1,217,412 76,727,038 113,004,506
--2,238,475 2,238,475
--10,883,997 32,604,147
--(4,218,596)25,445,707
41,743,148 1,217,412 99,581,538 200,826,736
$44,549,416$1,217,412$110,565,226$216,559,658
Fund Financial Statements 56
City of South Bend, Indiana
General Fund
Parks and
Recreation
Public Safety
LOIT COIT EDIT
Revenue
Property taxes$37,278,746$7,480,452$-$-$-
Income taxes--6,466,190 8,859,912 9,181,206
Licenses and permits 151,923----
Professional sports development taxes-----
Intergovernmental 16,008,619 666,224---
Charges for services 999,899 1,686,201-531,926 300,082
Fines and forfeitures 14,081---354,660
Investment income 106,976 8,636 5,377 85,007 56,850
Rental income-----
Other revenue 6,012,866 300,984---
Total revenue 60,573,110 10,142,497 6,471,567 9,476,845 9,892,798
Expenditures
Current:
General government 5,221,067---73,674
Public safety 54,211,836-6,926,864--
Highways and streets 887,568----
Community and economic
development-----
Culture and recreation 1,414,639 10,193,689---
Bond issuance costs-----
Capital outlay-34,130-9,097,739 1,460,937
Debt service:
Principal 15,968 292,172-1,180,924 1,101,284
Interest on long-term debt 2,954 7,686-156,093 250,260
Total expenditures 61,754,032 10,527,677 6,926,864 10,434,756 2,886,155
Excess of Revenue (Under) Over
Expenditures(1,180,922)(385,180)(455,297)(957,911)7,006,643
Other Financing Sources (Uses)
Debt proceeds-34,130-110,620-
Premium on refunding debt-----
Proceeds from sale of capital assets-----
Transfers in 4,282,212 888,385---
Transfers out(66,639)--(2,609,981)(7,105,136)
Payment to bond refunding escrow
agent-----
Total other financing
sources (uses)4,215,573 922,515-(2,499,361)(7,105,136)
Net Change in Fund Balances 3,034,651 537,335(455,297)(3,457,272)(98,493)
Fund Balances- Beginning of year 27,587,405 3,283,147 1,008,564 16,516,882 10,327,716
Fund Balances - End of year$30,622,056$3,820,482$553,267$13,059,610$10,229,223
Fund Financial Statements 57
Governmental Funds
Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2015
River West TIF
Redevelopment
Authority Debt
Service Nonmajor Funds Total
$16,288,169$-$10,478,621$71,525,988
---24,507,308
---151,923
--626,192 626,192
492,000-13,049,216 30,216,059
14,061-2,261,999 5,794,168
--85,586 454,327
213,455 11,117 765,824 1,253,242
95,414-73,335 168,749
138,832-1,569,188 8,021,870
17,241,931 11,117 28,909,961 142,719,826
--3,125,537 8,420,278
--750,705 61,889,405
--11,900,073 12,787,641
--11,068,013 11,068,013
-2,002 1,245,374 12,855,704
-372,432-372,432
22,356,677-13,604,087 46,553,570
3,006,371 2,769,874 4,952,799 13,319,392
1,310,949 2,085,665 1,578,691 5,392,298
26,673,997 5,229,973 48,225,279 172,658,733
(9,432,066)(5,218,856)(19,315,318)(29,938,907)
-31,450,000 37,831,843 69,426,593
-1,682,169 237,618 1,919,787
1,202,858-32,886 1,235,744
10,763,908 4,863,500 10,700,676 31,498,681
(2,156,762)-(16,713,748)(28,652,266)
-(35,698,815)-(35,698,815)
9,810,004 2,296,854 32,089,275 39,729,724
377,938(2,922,002)12,773,957 9,790,817
41,365,210 4,139,414 86,807,581 191,035,919
$41,743,148$1,217,412$99,581,538$200,826,736
Fund Financial Statements 58
City of South Bend, Indiana
Proprietary Funds
Statement of Net Position
December 31, 2015
Enterprise Funds
Governmental
Activities
Water Utility
Wastewater
Utility Century Center
Nonmajor
Enterprise Total
Proprietary
Internal Service
Fund
Assets
Current assets:
Cash and cash equivalents$788,964$1,218,393$1,096,892$1,587,630$4,691,879$2,315,742
Investments 3,100,284 7,777,728-6,081,249 16,959,261 8,992,898
Receivables:
Accounts 844,999 2,509,351 140,012 4,725,852 8,220,214 44,363
Interest 19,378 60,815-12,169 92,362 17,988
Allowance for doubtful accounts(50,000)(80,000)--(130,000)-
Due from other funds 20,959 3,786 10,059 1,170 35,974 4,172
Inventory 278,446 216,724 37,426-532,596 851,487
Prepaid expenses 24,087 34,480 10,467-69,034 209,653
Total current assets 5,027,117 11,741,277 1,294,856 12,408,070 30,471,320 12,436,303
Noncurrent assets:
Restricted assets 8,256,321 33,425,359 1,002,072 1,387,899 44,071,651-
Capital assets:
Assets not subject to depreciation 376,951 17,008,258 713,434 1,159,420 19,258,063-
Assets subject to depreciation 59,153,687 130,405,156 18,750,486 12,936,201 221,245,530 1,320,225
Total noncurrent assets 67,786,959 180,838,773 20,465,992 15,483,520 284,575,244 1,320,225
Total assets 72,814,076 192,580,050 21,760,848 27,891,590 315,046,564 13,756,528
Deferred Outflows of Resources-
Unamortized loss on refunding 18,812 2,395,047--2,413,859-
Liabilities
Current liabilities:
Accounts payable 309,496 1,887,037 67,832 308,658 2,573,023 517,248
Due to other governmental units---160,098 160,098-
Due to other funds 3,786 2,077-10,743 16,606 4,873
Performance deposits payable---37,437 37,437-
Accrued liabilities and other:
Accrued payroll payable 62,310 85,218 46,166 103,441 297,135 33,259
Accrued interest payable 528 189,945-91,080 281,553 124
Customer deposits payable 1,514,085-121,291-1,635,376-
Other current payables 60,312-57,861-118,173-
Compensated absences 209,894 235,936-149,272 595,102 123,235
Notes and loans payable 187,424 158,032--345,456-
Mortgage bonds payable-68,880-220,000 288,880-
Claims payable-----2,574,044
Capital leases 17,577 464,592-899,802 1,381,971 5,275
Revenue bonds payable 1,165,000 6,705,000--7,870,000-
Total current liabilities 3,530,412 9,796,717 293,150 1,980,531 15,600,810 3,258,058
Noncurrent liabilities:
Notes and loans payable 863,800 2,249,643--3,113,443-
Mortgage bonds payable-343,016-5,219,669 5,562,685-
Capital leases 57,812 1,041,603-1,929,656 3,029,071 20,430
Revenue bonds payable 16,475,432 78,526,489--95,001,921-
Total noncurrent liabilities 17,397,044 82,160,751-7,149,325 106,707,120 20,430
Total liabilities 20,927,456 91,957,468 293,150 9,129,856 122,307,930 3,278,488
Deferred Inflows of Resources
Unamortized service agreement--335,417-335,417-
Unamortized gain on sale/leaseback---5,663 5,663-
Total deferred inflows of
resources--335,417 5,663 341,080-
Fund Financial Statements 59
City of South Bend, Indiana
Proprietary Funds
Statement of Net Position (Continued)
December 31, 2015
Enterprise Funds
Governmental
Activities
Water Utility
Wastewater
Utility Century Center
Nonmajor
Enterprise Total
Proprietary
Internal Service
Fund
Net Position
Net investment in capital assets$40,782,405$74,650,027$19,463,920$7,102,032$141,998,384$1,294,520
Restricted:
Depreciation fund 2,876,026 8,723,058--11,599,084-
Debt service fund 4,398 804,674--809,072-
Customer repair and deposit fund 1,509,816 1,647,834--3,157,650-
Cash with fiscal agent 32,120 77,071-112,361 221,552-
Bond reserve fund 1,604,996 4,105,623--5,710,619-
Operating reserve fund 2,228,964 3,668,277--5,897,241-
Capital outlay fund--1,002,072-1,002,072-
Unrestricted 2,866,707 9,341,065 666,289 11,541,678 24,415,739 9,183,520
Total net position$51,905,432$103,017,629$21,132,281$18,756,071$194,811,413$10,478,040
Fund Financial Statements 60
City of South Bend, Indiana
Proprietary Funds
Statement of Revenue, Expenses, and Changes in Net Position
Year Ended December 31, 2015
Enterprise Funds
Governmental
Activities
Water Utility
Wastewater
Utility Century Center
Non major
Enterprise Total
Proprietary
Internal Service
Fund
Operating Revenue
Metered revenue$9,477,512$35,471,904$-$-$44,949,416$-
Convention fees--2,701,564-2,701,564-
Fire protection revenue 1,988,234---1,988,234-
Licenses and permits-3,500-1,839,150 1,842,650-
Interest and penalty charges 111,049---111,049-
Parking fees--115,550 968,397 1,083,947-
Solid waste fees---4,859,903 4,859,903-
Employee/Employer contributions-----15,771,041
Charges for sales and services-185,069-6,470,435 6,655,504 7,364,529
Water leak insurance revenue 959,779---959,779-
Golf course fees---109,949 109,949-
Charges to other funds 1,166,640 92,955--1,259,595-
Other 501,071 882,073-621,109 2,004,253 116,305
Total operating revenue 14,204,285 36,635,501 2,817,114 14,868,943 68,525,843 23,251,875
Operating Expenses
Cost of water 5,903,635---5,903,635-
Cost of sewage treatment-11,451,460--11,451,460-
Other operation and maintenance---13,578,480 13,578,480 6,888,584
General and administration 2,030,862 2,106,138 4,039,630 1,790,220 9,966,850 1,346,631
Insurance claims and premiums-----15,334,772
Plumbing contractors 980,149---980,149-
Customer service 1,736,675---1,736,675-
Depreciation 1,967,340 6,450,920 815,117 1,287,267 10,520,644 128,868
Total operating expenses 12,618,661 20,008,518 4,854,747 16,655,967 54,137,893 23,698,855
Operating Income (Loss)1,585,624 16,626,983(2,037,633)(1,787,024)14,387,950(446,980)
Nonoperating Revenue (Expenses)
Investment income 77,526 241,354 809 39,229 358,918 69,432
Hotel/Motel tax revenue--1,313,450-1,313,450-
Interest expense(863,067)(3,419,351)-(394,313)(4,676,731)-
Other nonoperating expenses-(1,474,728)--(1,474,728)-
(Loss) gain on sale of assets(127,650)(835,259)-(87,057)(1,049,966)(19,833)
Debt service charge-----(345)
Other nonoperating revenue (expenses) -
Charges-3,303 72,000(477,668)(402,365)-
Total nonoperating
(expenses) revenue(913,191)(5,484,681)1,386,259(919,809)(5,931,422)49,254
Income (Loss) - Before contributions 672,433 11,142,302(651,374)(2,706,833)8,456,528(397,726)
Capital Contributions -Other capital
contributions--4,683,424-4,683,424-
Special Item- Disposal of operations ---(1,180,964)(1,180,964)-
Transfers In---2,663,144 2,663,144-
Transfers Out(1,942,608)(3,497,207)(50,000)(19,744)(5,509,559)-
Change in Net Position(1,270,175)7,645,095 3,982,050(1,244,397)9,112,573(397,726)
Net Position- Beginning of year(restated)53,175,607 95,372,534 17,150,231 20,000,468 185,698,840 10,875,766
Net Position - End of year$51,905,432$103,017,629$21,132,281$18,756,071$194,811,413$10,478,040
Fund Financial Statements 61
City of South Bend, Indiana
Fiduciary Funds
Statement of Fiduciary Net Position
December 31, 2015
Pension Trust
Funds
Private-
Purpose Trust
Fund Agency Funds
Assets
Cash and cash equivalents$330,099$5,781$2,752,256
Investments 1,297,145 22,717-
Receivables - Interest 2,652 45-
Total assets 1,629,896 28,543$2,752,256
Liabilities
Accounts payable 180-$-
Accrued liabilities and other 248-412,690
Customer deposits payable--1,504,458
Police distribution payable--835,108
Total liabilities 428-$2,752,256
Net Position for Pension Benefits and Other
Purposes$1,629,468$28,543
Fund Financial Statements 62
City of South Bend, Indiana
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
Year Ended December 31, 2015
Pension Trust
Funds
Private-
Purpose Trust
Fund
Additions
Investment income - Interest and dividends$7,051$164
Contributions:
On behalf 11,417,384-
Other 2,729-
Total contributions 11,420,113-
Total additions 11,427,164 164
Deductions
Benefit payments 11,520,804-
Administrative expenses 26,716-
Total deductions 11,547,520-
Net (Decrease) Increase in Net Position(120,356)164
Net Position- Beginning of year 1,749,824 28,379
Net Position- End of year$1,629,468$28,543
Fund Financial Statements 63
City of South Bend
Statistical Section
Net Position by Component
Last Ten Fiscal Years
2006 (1)2007 2008 2009 2010 2011 2012 2013 2014 (2)2015 (2)
Governmental activities
Invested in capital assets, net of related debt 208,509,577$ 200,634,954$ 178,178,047$ 178,483,535$ 186,771,216$ 196,265,413$ 202,779,954$ 192,190,446$ 168,275,521$ 157,604,691$
Restricted 5,225,642 5,370,627 11,077,687 12,825,227 8,840,610 9,354,772 8,050,418 7,990,172 8,723,878 9,137,552
Unrestricted 24,900,036 47,150,229 56,786,214 82,877,695 96,539,932 82,271,482 71,992,457 86,413,227 (18,581,970) (25,882,348)
Total governmental activities net position 238,635,255$ 253,155,810$ 246,041,948$ 274,186,457$ 292,151,758$ 287,891,667$ 282,822,829$ 286,593,845$ 158,417,429$ 140,859,895$
Business-type activities
Invested in capital assets, net of related debt 97,670,533$ 112,194,451$ 124,705,327$ 119,607,643$ 122,108,095$ 103,463,004$ 113,193,929$ 114,506,252$ 136,685,811$ 141,998,384$
Restricted 22,535,858 8,273,257 8,630,542 14,075,339 13,320,967 12,937,988 29,259,933 48,267,664 26,587,012 28,397,290
Unrestricted 7,168,852 15,793,782 9,209,917 12,597,138 19,262,192 45,733,630 26,957,505 7,906,258 22,426,017 24,415,739
Total business-type activities net position 127,375,243$ 136,261,490$ 142,545,786$ 146,280,120$ 154,691,254$ 162,134,622$ 169,411,367$ 170,680,174$ 185,698,840$ 194,811,413$
Primary government
Invested in capital assets, net of related debt 306,180,110$ 312,829,405$ 302,883,374$ 298,091,178$ 308,879,311$ 299,728,417$ 315,973,883$ 306,696,698$ 304,961,332$ 299,603,075$
Restricted 27,761,500 13,643,884 19,708,229 26,900,566 22,161,577 22,292,760 37,310,351 56,257,836 35,310,890 37,534,842
Unrestricted 32,068,888 62,944,011 65,996,131 95,474,833 115,802,124 128,005,112 98,949,962 94,319,485 3,844,047 (1,466,609)
Total primary government net position 366,010,498$ 389,417,300$ 388,587,734$ 420,466,577$ 446,843,012$ 450,026,289$ 452,234,196$ 457,274,019$ 344,116,269$ 335,671,308$
Sour ce - City o f S outh Be nd Comprehensive Annual Fi nancial Reports (inclu des pr ior pe riod adjustments)
(1) Th e C i ty imp l emented th e retro a ctive r ep orting o f inf ra s tructur e assets requir ed b y GASB S ta tement N o. 34 during 2 0 06.
(2) Th e City imp lemented th e reporting of net pension liability through GASB 68 duri ng 2015. 2014 w as restated.
Net positio n is defi ned a s the dif ference betwee n t otal a ss et s and defer r ed o utfl ows of res our ces l ess total l i ab ilities a nd d eferred i nflows of resourc es and can general l y be th ough t of a s the net wo r th o f t he City of So uth Bend.
Financial
Trends
64
City of South Bend
Statistical Section
Changes in Net Position
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Expenses
Governmental activities:
General Government(17,194,920)$ (13,680,203)$ (10,253,389)$ (7,903,378)$ (8,261,861)$ (16,783,351)$ (13,788,310)$ (13,200,898)$ (19,013,453)$ (21,572,776)$
Public Safety(56,600,175)(52,751,974)(49,728,256)(50,800,573)(62,106,991)(73,530,442)(69,977,237)(76,023,819)(68,783,155)(56,528,448)
Highways and Streets(21,813,189)(17,904,129)(22,292,012)(15,042,344)(9,526,537)(7,574,003)(14,639,158)(20,915,815)(13,031,500)(20,045,444)
Health and Welfare(114,131)(75,000)(75,000)- - - - - - -
Community and Economic Development(18,813,636)(18,206,948)(27,299,233)(4,335,618)(30,744,012)(34,648,975)(20,217,987)(10,069,690)(19,780,791)(40,727,612)
Culture and Recreation(14,994,300)(16,454,667)(18,311,807)(17,981,839)(16,036,194)(15,566,794)(21,724,589)(26,846,471)(16,802,311)(20,300,768)
Bond Issuance Costs- - - - - - - - - (372,432)
Interest on Long-Term Debt(5,841,032)(5,859,102)(7,080,166)(8,049,610)(7,339,548)(6,798,531)(6,134,406)(5,961,124)(2,497,849)(4,762,714)
Total governmental activities expenses(135,371,383)$ (124,932,023)$ (135,039,863)$ (104,113,362)$ (134,015,143)$ (154,902,096)$ (146,481,687)$ (153,017,817)$ (139,909,059)$ (164,310,194)$
Business-type activities:
Water(11,916,504)$ (13,061,750)$ (13,492,744)$ (12,584,679)$ (12,525,246)$ (11,972,840)$ (12,228,014)$ (15,221,865)$ (13,020,610)$ (13,609,378)$
Wastewater(16,972,401)(18,295,813)(23,020,991)(27,047,143)(21,403,663)(22,260,005)(23,809,975)(26,390,790)(25,521,753)(25,737,867)
Century Center(3,355,531)(3,490,103)(3,562,285)(3,488,266)(2,989,586)(3,100,484)(2,929,268)(4,330,656)(4,747,838)(4,854,747)
Conso lidated Building Department (1)(1,102,164)(1,090,327)(1,108,940)(1,113,867)(930,120)(871,299)(909,376)(1,131,815)(3,242,320)(3,552,347)
Parking Garage(1,261,942)(1,444,146)(1,466,200)(1,471,960)(1,438,288)(1,467,646)(1,721,655)(1,285,056)(1,660,596)(2,139,182)
Solid Waste(4,187,706)(4,072,910)(4,299,846)(4,036,001)(4,204,056)(4,962,157)(5,118,806)(5,091,588)(5,811,526)(5,243,972)
Blackthorn Golf Course(1,811,757)(1,811,801)(1,829,122)(1,881,982)(1,995,556)(1,689,042)(1,841,998)(1,497,513)(1,874,962)(165,977)
Emergency Medical Services (2)- - - - - - - - - (6,596,206)
Total business-type activities net expenses(40,608,005)(43,266,850)(48,780,128)(51,623,898)(45,486,515)(46,323,473)(48,559,092)(54,949,283)(55,879,605)(61,899,676)
Total primary gove rnme nt net position(175,979,388)$ (168,198,873)$ (183,819,991)$ (155,737,260)$ (179,501,658)$ (201,225,569)$ (195,040,779)$ (207,967,100)$ (195,788,664)$ (226,209,870)$
Governmental activities:
Charges for services:
General Government 6,883,104$ 6,553,121$ 6,647,223$ 6,855,830$ 6,964,269$ 1,165,018$ 2,100,103$ 1,939,865$ 1,451,438$ 1,188,531$
Public Safety 5,132,285 4,228,405 5,035,433 5,051,827 4,916,958 4,096,566 5,079,182 5,210,272 4,992,228 529,386
Highways and Streets 44,250- - 5,152 28,110 227,000 291,840 451,363 728,343 676,429
Community and Economic Development 562,807 604,873 636,722 332,454 283,420 683,503 271,366 444,839 485,938 408,654
Culture and Recreation 4,940,629 5,057,076 5,300,818 5,063,896 4,995,049 4,681,536 5,224,543 5,112,019 3,815,920 3,726,359
Operating Grants and Contributions 12,452,463 15,628,287 11,356,682 12,199,444 29,467,573 32,091,246 24,937,596 21,466,622 3,203,805 2,813,481
Capital Grants and Contributions 13,793,363 960,502 1,176,783 780,137 1,472,233 2,328,468 2,468,120 1,867,213- -
Total governmental activities program revenue 43,808,901$ 33,032,264$ 30,153,661$ 30,288,740$ 48,127,612$ 45,273,337$ 40,372,750$ 36,492,193$ 14,677,672$ 9,342,840$
Business-type activities:
Charges for services:
Water 14,757,819$ 15,336,891$ 14,926,833$ 14,151,289$ 14,194,442$ 14,080,592$ 15,409,171$ 15,102,462$ 14,373,176$ 14,204,285$
Wastewater 18,725,903 21,349,401 23,567,973 25,012,163 26,001,156 29,407,263 30,657,698 32,474,743 34,009,117 36,638,804
Century Center 3,113,264 3,371,553 3,370,802 2,873,966 2,869,010 2,894,913 2,680,076 3,463,813 2,227,171 4,202,564
Consolidated Building Department 1,039,405 1,078,258 1,169,788 977,050 875,481 899,397 1,000,381 967,667 1,387,571 2,037,950
Parking Garage 799,350 861,307 1,003,889 1,070,519 1,047,784 1,071,078 921,044 968,868 1,017,218 968,417
Solid Waste 4,177,897 4,187,821 4,343,120 4,759,530 4,745,547 4,830,342 5,081,991 5,399,044 5,295,712 5,364,871
Blackthorn Golf Course 1,565,649 1,512,150 1,493,519 1,557,951 1,479,415 1,392,999 1,669,372 1,530,402 1,548,341 109,949
Emergency Medical Services- - - - - - - - - 6,470,446
Operating Grants and Contributions- - - - - - - - - -
Capital Grants and Contributions 1,413,861 1,253,332 1,209,380 4,038,412 1,889,165 4,291,731 2,010,253 697,916 95,834 4,683,424
Total business-type activities program revenues 45,593,148 48,950,713 51,085,304 54,440,880 53,102,000 58,868,315 59,429,986 60,604,915 59,954,140 74,680,710
Total primary government program revenues 89,402,049$ 81,982,977$ 81,238,965$ 84,729,620$ 101,229,612$ 104,141,652$ 99,802,736$ 97,097,108$ 74,631,812$ 84,023,550$
Financial
Trends
65
City of South Bend
Statistical Section
Changes in Net Position (Continued)
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net (Expense)/Revenue
Governmental activities(81,123,122)$ (102,007,599)$ (73,959,701)$ (103,726,403)$ (106,774,484)$ 45,273,337$ (106,108,937)$ (116,525,624)$ (125,231,387)$ (154,967,354)$
Business-type activities 2,326,298 170,585(538,594)8,954,365 6,778,527 58,868,315 10,870,894 5,655,632 4,074,535 12,781,034
Total primary government net expense(78,796,824)$ (101,837,014)$ (74,498,295)$ (94,772,038)$ (99,995,957)$ 104,141,652$ (95,238,043)$ (110,869,992)$ (121,156,852)$ (142,186,320)$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Pro perty taxes 68,256,602$ 77,120,683$ 76,109,499$ 73,882,128$ 77,315,641$ 76,445,349$ 71,775,415$ 72,018,650$ 69,221,468$ 72,032,049$
County Option Income Tax 6,410,405 8,072,623 5,813,846 10,270,179 11,502,052 13,219,723 13,748,824 13,739,325 15,025,840 14,847,338
Economic Development Income Tax 4,013,475 4,681,134 3,788,754 4,536,245 7,335,113 8,044,773 8,324,878 8,177,352 8,796,821 9,031,709
Professional Sports Development Tax 336,281 435,791 453,268 522,788 597,406 558,268 633,904 649,996 588,054 628,261
Community Revitalization District Tax 1,000,000 1,000,000 955,315 605,623 416,149 733,100 653,185 244,623-
Unrestricted Grants and Contributions 5,063,541 4,032,300 5,664,011 7,597,883 4,883,081 3,964,336 3,891,810 5,893,924 28,473,888 25,487,112
Unrestricted Investment earnings 4,762,484 6,247,113 4,961,410 859,135 868,023 1,050,768 1,317,443 762,270 951,901 1,322,674
Other 3,520,138 5,016,902 2,007,821 2,781,368 2,627,341 3,483,054 6,623,313 14,285,314 6,747,199 11,214,442
Transfers 44,200 3,735 34,970(645,992)(648,823)3,041,176 3,879,721 4,525,187(683,049)2,846,415
Total governme ntal activities 93,407,126$ 106,610,281$ 99,788,894$ 100,409,357$ 104,895,983$ 110,540,547$ 110,848,493$ 120,296,641$ 129,122,122$ 137,410,000$
Business-type activities:
Unrestricted Investment earnings 906,056$ 1,301,348$ 1,514,287$ 271,360$ 146,826$ 206,409$ 285,572$ 138,362$ 128,168$ 358,918$
Other- - - - - - - - 1,501,664-
Transfers(44,200)(3,735)(34,970)645,992 648,823(3,041,176)(3,879,721)(4,525,187)683,049(2,846,415)
Total business-type activities 861,856 1,297,613 1,479,317 917,352 795,649(2,834,767)(3,594,149)(4,386,825)2,312,881(2,487,497)
Total primary government 94,268,982$ 107,907,894$ 101,268,211$ 101,326,709$ 105,691,632$ 107,705,780$ 107,254,344$ 115,909,816$ 131,435,003$ 134,922,503$
Special Item (Governmental activities):
Well field contamination settleme nt-$ -$ 4,462,214$ -$ -$ -$ -$ -$ -$ -$
Disposal of operations- - - - - - - - - (1,180,964)
Change in Net Position
Governmental activities(8,600,473)32,650,580 524,705(6,365,127)150,169,320 911,788 4,739,556 3,771,016 3,890,735(17,557,354)
Business-type activities 1,032,441 759,019 10,433,682 7,695,879 59,663,964 9,710,075 7,276,745 1,268,807 6,387,416 9,112,573
Total primary government(7,568,032)$ 33,409,599$ 10,958,387$ 1,330,752$ 209,833,284$ 10,621,863$ 12,016,301$ 5,039,823$ 10,278,151$ (8,444,781)$
Excludes prior period adjustments
Source : City of South Bend Comprehensive Annual Financial Reports
Changes in net assets is defined as the incremental difference between total assets and total liabilities as a result of operations during the fiscal year.
(1) In 2014, Code Enforcement and Animal Care and Control were consolidated with the Building Department to build efficiencies. Prior to 2014, these expenses were included in the general government activities.
(2) In 2015, Emergency Medical Services was reclassified to an enterprise fund.
Financial
Trends
66
City of South Bend
Statistical Section
Fund Balances - Governmental Funds
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 (1)2012 2013 2014 2015
General fund
Reserved 4,162,853$ 2,213,970$ 3,245,271$ 1,516,159$ 1,824,454$ -$ -$ -$ -$ -$
Unreserved 21,688,442 21,546,783 24,171,313 23,102,296 26,912,688- - - - -
Nonspendable- - - - - 1,115,025 958,341 656,848 558,304 491,665
Restricted- - - - - 327,267 - - - -
Committed- - - - - -- - - -
Assigned - - - - - 255,287 165,389 516,506 - 466,088
Unassigned- - - - - 26,233,637 27,671,353 26,495,559 27,029,101 29,664,303
Total - General Fund 25,851,295$ 23,760,753$ 27,416,584$ 24,618,455$ 28,737,142$ 27,931,216$ 28,795,083$ 27,668,913$ 27,587,405$ 30,622,056$
Other Governmental Funds
Reserved 34,251,520$ 36,374,517$ 60,213,915$ 56,819,802$ 62,230,229$ -$ -$ -$ -$ -$
Unreserved, reported in:
Special revenue funds 19,348,846 25,703,180 32,054,329 36,398,024 31,996,398 - - - - -
Capital projects funds 60,447,079 66,593,906 87,571,056 78,214,132 85,237,947 - - - - -
Debt service funds(7,828) - - - - - - - - -
Nonspendable- - - - - 37,036,839 37,706,861 22,828,476 20,537,450 27,042,236
Restricted- - - - - 44,754,037 78,326,567 95,387,879 100,501,274 113,004,506
Committed- - - - - 11,829,074 11,142,045 20,697,026 12,962,745 2,238,475
Assigned- - - - - 77,460,284 35,180,652 35,455,190 35,147,874 32,138,059
Unassigned- - - - - (2,777,374) (4,219,066) (4,852,169) (5,700,829) (4,218,596)
Total - Other Governmental Funds 114,039,617 128,671,603 179,839,300 171,431,958 179,464,574 168,302,860 158,137,059 169,516,402 163,448,514 170,204,680
Grand Total - Governmental Funds 139,890,912$ 152,432,356$ 207,255,884$ 196,050,413$ 208,201,716$ 196,234,076$ 186,932,142$ 197,185,315$ 191,035,919$ 200,826,736$
(1) - The City of South Bend adopted Statement No. 54 of the Governmental Accounting Standa rds Board requiring new classifications for Fund Balance reporting for fisca l year 2011.
Sour ce: City of S outh B end Comprehensive Annual Financ ial Reports
Financial
Trends
67
City of South Bend
Statistical Section
Changes in Fund Balances - Governmental Funds
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenues
Taxes 84,049,414$ 88,695,023$ 96,930,953$ 89,139,585$ 101,785,765$ 99,001,213$ 95,136,206$ 94,829,947$ 93,632,183$ 96,033,296$
Licenses, fees and permits 186,470 173,604 177,329 206,594 192,397 190,943 189,714 177,019 141,565 151,923
Fines and forfeits 444,861 437,732 412,707 423,981 409,775 636,749 334,767 660,841 563,999 454,327
Charges for services 16,931,744 15,832,139 17,030,160 16,678,584 16,585,634 13,990,267 12,442,553 12,320,498 10,628,976 5,794,168
Intergovernmental 31,275,541 21,400,166 18,196,118 20,577,464 35,822,886 34,419,714 31,297,526 29,227,759 30,663,505 30,216,059
Investment earnings 4,762,484 6,248,605 4,962,768 859,135 868,023 1,050,768 1,317,443 762,270 955,376 1,253,242
Other revenues 3,414,731 5,039,373 2,007,821 3,046,791 2,677,796 3,587,518 6,660,875 13,174,140 7,904,187 8,816,811
Total revenues 141,065,245 137,826,642 139,717,856 130,932,134 158,342,276 152,877,172 147,379,084 151,152,474 144,489,791 142,719,826
Expenditures
General government 11,244,734 9,611,354 6,902,426 5,969,141 5,214,424 6,680,855 6,390,585 7,154,965 8,022,688 8,420,278
Public Safety 51,050,640 53,203,005 50,413,055 48,790,068 62,586,177 69,612,754 67,138,414 64,041,549 66,927,250 61,889,405
Highways and Streets 13,583,761 13,257,781 13,369,611 11,716,810 10,702,555 5,079,041 9,288,682 9,769,942 10,441,957 12,787,641
Health and Welfare 75,000 75,000 75,000- - - - - - -
Community and Economic Development 9,752,254 7,710,242 9,726,718 8,938,134 17,408,376 9,698,611 3,543,180 8,068,458 7,309,130 11,068,013
Culture and Recreation 13,849,622 13,469,798 14,542,481 12,733,094 12,841,596 13,816,699 18,557,986 13,956,025 13,948,089 12,855,704
Capital Outlay 16,391,192 17,293,302 26,695,208 37,485,105 21,952,522 46,691,030 39,984,127 30,748,663 29,407,934 46,553,570
Bond Issuance Costs- - - - - - - - - 372,432
Debt Service
Interest and Fiscal Charges 6,144,611 5,718,572 7,258,201 8,053,995 7,499,683 7,186,494 6,734,305 6,113,043 5,360,219 5,392,298
Principal 7,435,722 7,870,166 9,040,095 9,276,363 12,552,681 13,632,195 10,822,721 13,008,105 12,882,830 13,319,392
Total expenditures 129,527,536 128,209,220 138,022,795 142,962,710 150,758,014 172,397,679 162,460,000 152,860,750 154,300,097 172,658,733
Excess of revenues
over (under) expenditures 11,537,709 9,617,422 1,695,061(12,030,576)7,584,262(19,520,507)(15,080,916)(1,708,276)(9,810,306)(29,938,907)
Other Financing Sources (Uses)
Proceeds from debt issuance 14,050,557 2,920,287 45,622,808 1,771,318 5,280,314 3,478,239 5,660,897 7,801,455 8,436,905 69,426,593
Premium (discount) on debt issuance- - 1,626,186 80,950 146,030 26,877 1,236,364 21,576 171,851 1,919,787
Proceeds from refunding- - - 7,210,000 5,327,775 38,307,431 13,595,000 3,990,000- -
Payments to refunded bond escrow agent(8,371,711)- - (7,591,171)(5,538,255)(37,300,856)(14,613,147)(4,376,769)(3,482,205)(35,698,815)
Transfers in 8,928,540 7,872,575 10,574,625 8,687,172 16,314,577 22,483,564 25,368,413 26,365,239 18,478,925 31,498,681
Transfers out(8,884,340)(7,868,840)(10,539,655)(9,333,164)(16,963,400)(19,442,388)(21,488,692)(21,840,052)(16,522,289)(28,652,266)
Other- - - - - - - - 28,476 1,235,744
Total other financing
sources (uses)5,723,046 2,924,022 47,283,964 825,105 4,567,041 7,552,867 9,758,835 11,961,449 7,111,663 39,729,724
Special Item:
Well field contamination settlement- - - 4,462,214- - - - - -
Net change in fund balances 17,260,755$ 12,541,444$ 48,979,025$ (6,743,257)$ 12,151,303$ (11,967,640)$ (5,322,081)$ 10,253,173$ (2,698,643)$ 9,790,817$
Debt service as a percentage of
noncapital expenditures (1)10.8%11.4%12.1%17.6%15.4%13.8%12.9%13.4%13.5%11.6%
Excludes prior period adjustments
(1) Formula = Deb service payments (principal and interest) / (Total Governmental Fund expenditures - Governmental Fund capital outlay per reconciliation)
Source: City of South Bend Comprehensive Annual Financial Reports
Financial
Trends
68
City of South Bend
Statistical Section
Property Taxes Levies and Collections
Last Ten Fiscal Years
Estimated Adjusted Current Tax Total Tax(1)Outstanding
Per DLGF Circuit Breaker Current Tax Collections Delinquent Collections as Outstanding Delinquent Taxes
Tax Year/Current Levy Levy Current Tax as a Percent of Tax Total Tax a Percent of Delinquent as a Percent of
Collection Year Tax Levy Reduction(County Abstract)Collections Adjusted Tax Levy Collections Collections Adjusted Tax Levy Taxes Adjusted Tax Levy
2005/2006 62,058,519$ -$ 62,058,519$ 58,849,337$ 94.83%3,847,872$ 62,697,209$ 101.03%5,495,442$ 8.86%
2006/2007 62,723,113 - 62,723,113 57,979,187 92.44%2,289,138 60,268,325 96.09%7,411,505 11.82%
2007/2008 65,534,282 - 65,534,282 59,589,537 90.93%4,113,095 63,702,632 97.21%2,831,650 4.32%
2008/2009 64,546,050 7,863,846 56,682,204 47,497,697 83.80%3,355,161 50,852,858 89.72%5,810,503 10.25%
2009/2010 66,929,179 14,346,110 52,583,069 41,813,442 79.52%6,380,600 48,194,042 91.65%10,026,236 19.07%
2010/2011 68,662,101 17,692,787 50,969,314 40,876,844 80.20%5,791,920 46,668,764 91.56%8,165,775 16.02%
2011/2012 70,756,844 23,965,911 46,790,933 42,598,817 91.04%5,111,380 47,710,197 101.96%9,550,891 20.41%
2012/2013 72,696,497 27,863,156 44,833,341 38,721,788 86.37%5,200,000 43,921,788 97.97%11,146,473 24.86%
2013/2014 73,981,565 27,051,751 46,929,814 41,370,637 88.15%3,134,526 44,505,163 94.83%8,745,941 18.64%
2014/2015 76,533,090 29,728,412 46,804,678 42,097,072 89.94%3,168,597 45,265,669 96.71%8,200,000 17.52%
Source - St. Jos e ph County Auditor's S e ttlement Works heets and Abstract. City of South Bend budget forms approved by the Department of Loc al Government Finance (DLGF).
Data provided for General Fund, Parks & Recreation, Cumulative Capital Development, Fire Pension and Police Pension Funds. Excludes College Football Hall of Fame and Tax Increment Financing Funds.
Delinquent tax collections are not broken out by individual taxing unit. A calculation of South Bend's share of delinquent taxes has been made based on proportionate tax rates.
Total collections may exceed 100% of adjusted tax levy as prior year collections are not broken out separately by the St. Joseph County Auditor.
(1) Outstanding Delinquent Taxes are reported in the aggregate as of the end of each year and are not cumulative. Estimated for 2014/2015.
Revenue
Capacity
69
City of South Bend
Statistical Section
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Net Assessed Value)
Overlapping Rates (3)
Cumulative
Tax Year/General Parks/Firefighters'Police Capital Total St. Joseph Schools Total Grand
Collection Year Fund Recreation Pension Pension Development Direct County Districts Township Library Othe r (1)Overlapping Total
2005/2006 1.7386 0.2981 0.0554 0.0498 0.0376 2.1795 0.9899 1.6033 0.0269 0.2027 0.1501 2.9729 5.1524
2006/2007 1.6838 0.2858 0.0531 0.0477 0.0342 2.1046 0.8711 1.5419 0.0285 0.1957 0.1737 2.8109 4.9155
2007/2008 1.7924 0.2979 0.0579 0.0572 0.0342 2.2396 0.7576 1.5417 0.0482 0.2216 0.1944 2.7635 5.0031
2008/2009 1.9777 0.3656 0.0117 0.0189 0.0342 2.4081 0.5693 1.0297 0.0537 0.2257 0.1733 2.0517 4.4598
2009/2010(2)2.2536 0.4401- - 0.0342 2.7279 0.5866 1.0728 0.0406 0.2657 0.1835 2.1492 4.8771
2010/2011 2.4381 0.4818- - 0.0342 2.9541 0.5424 1.2211 0.0438 0.3027 0.1958 2.3058 5.2599
2011/2012 2.4954 0.4957- - 0.0328 3.0239 0.6212 1.1931 0.0464 0.2941 0.1817 2.3365 5.3604
2012/2013 2.5678 0.5102- - 0.0328 3.1108 0.6731 1.3493 0.0453 0.3227 0.1971 2.5875 5.6983
2013/2014 2.7977 0.5608- - 0.0328 3.3913 0.7058 1.3577 0.0505 0.3309 0.1849 2.6298 6.0211
2014/2015 2.8313 0.5676- - 0.0325 3.4314 0.6866 1.2940 0.0500 0.3207 0.2125 2.5638 5.9952
Source: St. Joseph County Auditor's Office - Certified Tax Rate Schedules - Rates presented for Portage Township in South Bend
(1) Include s State of Indiana, Redevelopment Comm issio n (H all of Fame), South Bend Transportation and South Bend Regional Airport.
(2) Firefighters' Pension and Police Pension no longer tax burden for the City of South Bend as the State of Indiana has assumed responsibility for funding these programs.
(3) Informatio n provided for Portage Township in the City of South Bend. Property tax rates applied to net assessed valuation. Property tax billings
are also subject to "circuit breaker" property tax caps on grossed assessed valuation of 1% (homestead residential property), 2% (other residential/rental property),
and 3% ( nonresidential real and personal property). Therefore, an increase in stated property tax rates will not result in higher property taxes paid for many
taxpayers who have reached their cap.
City Direct Rates
Revenue
Capacity
70
City of South Bend
Statistical Section
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
(2)
Gross Assessed Values Less:Total Net City
Tax Year/Real Personal Utilities Total Non-Taxed Taxable Tax%
Collection Year Property Property Property Value Property (1)Value Rate Taxable
2005/2006$3,789,447,190$655,066,401$98,165,420$4,542,679,011$1,707,413,121$2,835,265,890 2.1795 62.41%
2006/2007 4,374,431,415 544,460,152 90,443,780 5,009,335,347 1,986,978,200 3,022,357,147 2.1046 60.33%
2007/2008 4,420,513,240 527,383,785 92,736,090 5,040,633,115 2,064,552,317 2,976,080,798 2.2396 59.04%
2008/2009 4,698,989,240 592,538,950 95,891,770 5,387,419,960 2,718,532,541 2,668,887,419 2.4081 49.54%
2009/2010 4,368,497,000 604,951,450 98,433,750 5,071,882,200 2,618,376,627 2,453,505,573 2.7279 48.37%
2010/2011 4,339,037,300 551,819,290 101,009,760 4,991,866,350 2,667,414,488 2,324,451,862 2.9541 46.56%
2011/2012 4,255,238,900 560,331,660 95,165,650 4,910,736,210 2,529,861,602 2,380,874,608 3.0239 48.48%
2012/2013 4,452,887,970 537,500,490 100,832,450 5,091,220,910 2,720,133,213 2,371,087,697 3.1108 46.57%
2013/2014 4,199,757,500 552,872,520 90,252,180 4,842,882,200 2,633,155,528 2,209,726,672 3.3913 45.63%
2014/2015 4,192,804,920 557,759,982 86,924,710 4,837,489,612 2,577,220,294 2,260,269,318 3.4314 46.72%
(1)Non-taxed property includes adjustments for deductions and exemptions, tax exempt property, tax increment financing property, and
tax abatements.
(2)Excludes Redevelopment Commission (Hall of Fame) tax rate.
Source: St. Joseph County Auditor's Office
Revenue
Capacity
71
City of South Bend
Statistical Section
Property Tax Collections - Cash Basis
2006 - 2015
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fund Name Actual Actual Actual (2)Actual (3)Actual Actual Actual Actual Actual Actual
General Fund$48,768,150$48,720,726$14,574,480$79,162,937$38,780,847$38,514,550$39,368,431$36,251,397$36,708,989$37,349,387
Excess Levy- - - - - - - - 3,648-
Parks & Recreation 8,363,955 8,271,741 2,461,101 13,919,096 7,591,932 7,613,760 7,824,056 7,207,060 7,365,388 7,487,554
Redevelopment Bonds Studebaker Corridor- 11,590- - - - - - - -
College Football Hall of Fame Debt Service 899,472 1,127,140 360,682 2,362,057 1,488,453 1,549,954 1,133,205 1,268,179 497,768 906,263
River West TIF District (1)7,515,744 8,851,077 33,400 10,808,912 21,508,430 11,187,768 11,631,287 13,340,354 14,284,734 16,293,240
Cumulative Capital Development 1,054,963 989,824 291,600 1,420,833 587,063 540,454 517,710 463,331 430,786 428,727
Sample-Ewing TIF District (1)732,356 778,093- - - - - - - -
South Bend Central Development Area TIF (1) 3,283,075 3,276,169 12,696 3,870,188 7,336,117 3,633,473 3,671,478 2,590,808 4,309,727-
West Washington Street TIF District 255,510 287,095 1,785 358,844 860,049 431,085 422,715 493,608 580,987 402,911
Central Medical Service Area TIF District (1)333,585 928,113 2,793 919,174 3,524,962 1,704,238 1,606,915 1,221,676 851,211-
River East (Northeast) TIF District- 13,468- 22,191 195,400 715,063 1,351,048 841,627 1,568,240 2,421,308
Southside Development Area TIF District 28,565 457,985 1,756 355,596 4,094,135 1,808,952 2,466,203 2,404,416 2,379,212 2,205,822
Erskine Commons TIF District (5)2,585 2,891 10 1,240,184 5,978,592 784,373- - - -
Erskine Village TIF District 305,399 775,622 2,713 1,531,403 3,759,287 1,603,182- 1,311,129 9,175 19,183
Douglas Road TIF District- 13,941- 125,294 460,760 306,053 285,713 323,939 321,895 270,758
River East (Northeast) Residential TIF- -- -1,815,829 2,446,103 2,514,048 2,262,765 2,725,909 3,129,681
Airport Urban Enterprise- -- -301,430 123,165 111,721- - -
Fire Department Employees Pension (4)1,554,387 1,536,839 462,375 1,437,539(5,867)- - - - -
Police Department Employees Pension (4)1,397,265 1,380,555 425,760 1,609,905(9,479)- - - - -
Total$74,495,011$77,422,869$18,631,151$119,144,153$98,267,940$72,962,173$72,904,530$69,980,289$72,037,669$70,914,834
Source - City Accounting System
(1) Fund 414 closed out during 2008 into Fund 324. Name changed in 2015 from TIF Airport to River West TIF due to consolidation of Central Development Area and Central Medical TIFs.
(2) Delays in sending out property tax bills until December 19, 2008 (with an on-time due date of February 20, 2009) resulted in interfund borrowing in the General Fund (101), Parks
and Recreation Fund (201) and the College Football Hall of Fame Debt Service Fund (313) at year end. The remainder of property tax revenue was received during the first half of
2009 with final settlement with the St. Joseph County Auditor in July, 2009
(3) Includes collections of 2008 taxes as noted above. Tax Increment Financing (TIF) 2009 property tax collections were received from the County Auditor on January 21, 2010.
(4) Property tax levy for Police and Fire pension plans eliminated. Funding provided by the State of Indiana.
(5) Erskine Commons TIF District funds were released and outstanding bonds were paid off.
Revenue
Capacity
72
City of South Bend
Statistical Section
Computation of Legal Debt Margin
December 31, 2015
Civil City
Net Assessed Valuation (2014 pay 2015) of Taxable Property in South Bend$2,260,269,318
Debt limit: 2% of one third thereof 15,068,462
Less Bonds subject to limitation:
County Economic Development Income Tax Refunding
Revenue Bonds, Series 2006 A(860,000)
County Economic Development Income Tax Refunding
Revenue Bonds, Series 2006 B(805,000)
Economic Development Income Tax Bonds of 2015
(Parks Bond)(5,605,000)
Issuance Margin$7,798,462
Percentage of Debt to Debt Limit 48.25%
Redevelopment District
Net Assessed Valuation (2014 pay 2015) of Taxable Property in South Bend$2,260,269,318
Debt limit: 2% of one third thereof 15,068,462
Less Bonds subject to limitation:
Special Taxing District Bonds of 2014(2,615,000)
Issuance Margin$12,453,462
Percentage of Debt to Debt Limit 17.35%
A 2%debt limit is established by the Constitution of the State of Indiana.This limit is established for general
obligation bonds,Economic Development Income Tax revenue bonds,tax revenue notes and other types of
indebtedness.This limitation does not include revenue bonds payable from governmental funds(excluding
EDIT bonds)shown in the general long term debt account group.Indiana law allows the creation of separate
municipal corporations to provide vital governmental functions.Each of these municipal corporations
(including the Redevelopment Authority and Redevelopment Commission)has its own 2%debt limit,even if
they have the same or similar boundaries.
Debt Capacity 73
City of South Bend
Statistical Section
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
So uth Be nd South Be nd
General Total De bt Es tim ated Debt
Fisc al Obl igation Rev enu e M ortgage Note s/Lo an s Capital Revenue M ortgage No tes/Loans C ap it al Pr imary Es t imate d Per Perso na l Percent of
Year B ond s B ond s Bon ds Pay able Lease s Bonds Bon ds Payable Leases Gove rnm ent P opul atio n Ca pita In co me In co me
2006-$ 8 2,445,0 00$ 27,337,12 4$ 11,758,552$ 3,533,1 87$ 44,345,00 0$ 97 2,315$ 19,258,433$ 1,5 23,594$ 1 91,173,205$ 104,457 1,830$ 3,45 0,632,538$ 5.54%
2007- 7 8,570,0 00 25,957,83 9 7,9 00,658 7,695,4 87 73,145,000 92 6,805 18,380,491 1,1 27,394 2 13,703,674 104,069 2,053 3,51 1,183,991 6.09%
2008- 11 5,240,0 00 24,534,46 4 9,5 43,790 7,388,4 43 67,535,000 87 8,835 17,031,649 6 28,427 2 42,780,608 104,905 2,314 3,70 9,126,085 6.55%
2009- 113,975,0 00 23,061,14 8 8,4 70,308 6,21 4,206 68,225,000 82 9,020 16,145,358 893,233 2 37,813,273 106,192 2,239 3,67 9,658,9 92 6.46%
2010- 111,510,0 00 21,117,29 5 6,3 23,199 5,29 9,341 72,655,000 717,705 16,755,369 799,402 2 35,177,311 101,168 2,325 3,50 5,572,3 68 6.71%
2011- 101,472,4 31 19,724,490 4,4 31,871 7,51 0,749 88,655,000 660,510 15,542,372 1,077,642 239,075,065 101,168 2,3 63 3,37 1,120,0 96 7.09%
2 012- 96,41 0,000 17,883,530 4,9 53,639 8,33 6,120 1 17,650,000 601,470 13,848,901 3,641,3 62 263,325,022 101,168 2,6 03 3,371,120,0 96 7.81%
2 013- 90,17 2,826 23,079,781 3,0 30,554 8,77 7,238 1 18,121,963 546,973 4,121,010 3,831,9 33 251,682,278 101,168 2,4 88 3,371,120,0 96 7.47%
2 014- 84,86 2,512 21,331,548 1,617,491 8,48 1,375 1 11,209,874 480,604 3,794,664 3,307,8 02 235,085,870 101,168 2,3 24 3,371,120,0 96 6.97%
2 015- 107,81 5,890 13,904,973 4,831,752 8,491,4 07 102,871,921 5,85 1,565 3,458,899 4,4 11,042 2 51,637,449 101,168 2,487 4,03 7,513,712 6.23%
Perc ent o f Total Debt 0.0 0%42.85%5.53%1.92%3.37%40.88%2.33%1.3 7%1.75%100.0 0%
So urc es: City o f S outh B end Comp r ehe ns i ve A nnu al F i na ncial R ep ort s
Po pu l at ion s ta ti stics o btai ned from the U.S. C ensus Bu re au.
C i ty of South Bend es tima ted pe rsonal i ncome is comp uted as e stimated City popul at ion x 2 014 South Be nd M et ro Area Per Cap it a I ncome (see De mographic Statistics)
Governmental Activ ities B usine s s-Ty pe Activities
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20 06 20 07 2008 2009 20 10 2011 2012 20 13 20 14 2015
Governmental Activities Debt
Capit a l L eases
Notes/Lo ans Pay able
M o rtgage Bonds
Reven ue Bo nds
General O bliga ti on B on ds
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20 06 2007 20 08 2009 2 010 20 11 2012 20 13 2014 20 15
Business-Type Activities Debt
Capita l L eases
Notes/Loa ns Pa yable
Mo rtgage Bon ds
Reven ue Bon ds
Debt
Capacity
74
City of South Bend
Statistical Section
Computation of Direct and Overlapping Debt
December 31, 2015
Percentage Amount Ratio of Debt/Ratio of Debt/
Gross Applicable to Applicable to Debt Per Net Assessed Personal
Debt South Bend South Bend Capita Value Income
Direct Debt:
City of South Bend
General Obligation Bonds
Revenue Bonds - Governmental Activities 107,815,890$ 100.00%107,815,890$
Mortgage Bonds - Governmental Activities 13,904,973 100.00 13,904,973
Notes Payable - Governmental Activities 4,831,752 100.00 4,831,752
Capital Leases - Governmental Activities 8,491,407 100.00 8,491,407
Total Direct Debt and Lease Obligation Debt 135,044,022$ 1,335$ 5.97 %3.34 %
Overlapping Debt (1)
South Bend Community School Corporation 153,498,692$ 53.34%81,876,202$
St. Joseph County Public Library 6,925,000 50.03 3,464,578
St. Joseph County Airport Authority 11,770,000 28.63 3,369,751
St. Joseph County 14,535,000 28.63 4,161,371
Penn-Harris-Madison School Corporation 49,730,365 2.71 1,347,693
Mishawaka-Penn-Harris Public Library 2,425,000 2.18 52,865
German Township 340,000 60.58 205,972
Penn Township 645,000 3.29 21,221
Total Overlapping and Underlying Direct Debt and Lease Obligations 94,499,652$ 934$ 4.18 %2.34 %
Total Direct Debt and Lease Obligation Debt and Overlapping and 229,543,674$ 2,269$ 10.16 %5.69 %
Underlying Direct Debt and Lease Obligations
Ratio Factors
Net Assessed Valuation (2014 payable 2015)2,260,269,318
Population - 2010 US Census Bureau 101,168(2)
South Bend Metropolitan Area 2014 Per Capita Income 39,909(3)
Estimated South Bend Total Personal Income (2 x 3)4,037,513,712
(1)Overlapping debt percentages are based on the net assessed value of South Bend properties in proportion to the total net assessed value.
(2)Population statistics obtained from the U.S. Census Bureau (http://factfinder.census/gov/servlet).
(3)South Bend-Mishawaka, IN Metropolitan Area Profile (www.bea.gov). Lastest information available.
Debt
Capacity
75
City of South Bend
Statistical Section
Demographic Statistics
Last Ten Years
South Bend South Bend
Metropolitan Metro Area South Bend City of
City of Percent Area Percent Total Personal Percent Metro Area Percent City of South Bend Percent
South Bend Increase/Median Family Increase/Income (3)Increase/Per Capita Increase/South Bend Public School Increase/
Year Population (1)(Decrease)Income (4)(Decrease)(Millions)(Decrease)Income (3)(Decrease)Median Age (4)Enrollment (2)(Decrease)
2006 104,457-1.2%39,046$ 2.8%8,958$ 4.6%33,034$ 2.2%34.6 21,926-0.8%
2007 104,069-0.4%44,400 13.7%8,978 0.2%33,739 2.1%34.6 21,715-1.0%
2008 104,905 0.8%40,684-8.4%9,396 4.7%35,357 4.8%34.6 20,800-4.2%
2009 106,192 1.2%43,403 6.7%9,466 0.7%34,651-2.0%32.3 20,451-1.7%
2010 101,168-4.7%40,789-6.0%9,289-1.9%34,286-1.1%33.4 20,066-1.9%
2011 101,168 0.0%40,873 0.2%9,768 5.2%33,322-2.8%33.3 19,467-3.0%
2012 101,168 0.0%40,873 0.0%9,768 0.0%33,322 0.0%33.3 18,982-2.5%
2013 101,168 0.0%40,873 0.0%10,162 4.0%38,152 14.5%33.3 19,680 3.7%
2014 101,168 0.0%34,656-15.2%12,740 25.4%39,909 4.6%33.9 19,308-1.9%
2015 101,168 0.0%34,656 0.0%12,740 0.0%39,909 0.0%34.0 18,680-3.3%
Sources:
Population statistics are obtained from the U.S. Census Bureau population estimate table.
Effective Buying Income statistics come from "Survey of Buying Power", Sales and Marketing Management, Annual editions, 1992-2003.
Unemployment and labor force statistics are estimated figures obtained from the Work force Development Services. These are based on
South Bend being a Metropolitan Statistical Area. This is defined as a county or group of contiguous counties with a total
population of at least 100,000. The area must also contain at least one city with a population of 50,000 or more.
(4)U.S. Census Bureau (http://factfinder2.census.gov). 2015 information not available for Median Family Income.
(3)South Bend-Mishawaka, IN_MI Metropolitan Area Profile (www.bea.gov/). 2015 information not available.
(2)South Bend Community School Corporation Administration office for enrollment on October 1, 2015.
(1)U.S. Census Bureau 2010 Census information (http://factfinder2.census.gov). No 2015 information available.
Demographic
and
Economic
Information
76
City of South Bend
Statistical Section
Full-Time Equivalent City Government Employees by Department
Last Ten Fiscal Years
Department 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General Government
Mayor's Office 10.00 10.00 9.00 8.00 7.00 7.00 6.00 6.00 7.00 7.00
City Clerk's Office 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Common Council (elected officials, part-time)9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00
Administration and Finance 32.00 31.00 29.00 26.00 26.00 27.00 22.00 20.00 21.00 18.00
Legal Department 15.00 15.00 15.00 9.00 9.00 9.00 9.00 10.00 10.00 12.00
Engineering 19.00 18.50 18.50 16.00 19.00 17.00 15.00 13.00 14.00 16.00
311 Call Center
- - - - - - - 5.00 7.00 7.00
Safety and Risk
- - - - - - 3.00 3.00 3.00 2.00
Human Rights
- - - - - - 6.00 6.00 6.00 6.00
Public Safety
Police Department 317.00 320.00 317.00 279.00 293.00 293.00 291.00 291.00 295.00 300.00
Communication Center 31.00 30.00 30.00 37.00 38.00 35.00 35.00 33.00 34.00 0.00
Fire Department 255.00 254.00 254.00 246.00 255.00 258.00 249.00 255.00 257.00 259.00
Building Maintenance 7.00 7.00 7.00 4.00 3.00 3.00
- - - -
Culture and Recreation
Parks and Recreation (2)122.00 122.00 121.00 111.00 113.00 114.00 114.00 113.00 87.00 88.00
Convention and Events Management (1)49.00 16.00 15.00 13.00 13.00 14.00 14.00 14.00 14.00 14.00
Economic Development
Department of Community Investment 42.00 35.00 33.00 26.00 26.00 25.00 24.00 26.00 25.00 25.00
Highways and Streets
Street Department 66.00 54.00 54.00 51.00 52.00 56.00 52.00 60.00 59.00 53.00
Traffic & Lighting 11.00 11.00 11.00 6.00 0.00 0.00 0.00 0.00 0.00 0.00
Enterprise Funds
Water Works 86.00 86.00 80.00 82.00 75.00 74.00 73.00 70.00 68.00 67.00
Wastewater 53.00 54.50 56.50 48.00 51.00 49.00 46.00 45.00 42.00 43.00
Organic Resources (formerly in Wastewater)
- - - - - - 6.00 6.00 6.00 6.00
Sewer 29.00 28.00 28.00 33.00 35.00 36.00 39.00 34.00 33.00 30.00
Solid Waste 31.00 26.00 26.00 26.00 26.00 23.00 24.00 26.00 22.00 21.00
Building Department 22.00 22.00 22.00 15.00 13.00 13.00 13.00 14.00 13.00 13.00
Code Enforcement (formerly General Gov't)28.00 27.00 27.00 27.00 23.00 25.00 25.00 24.00 23.00 23.00
Internal Service Fund
Central Services 49.00 49.00 46.00 39.00 41.00 41.00 42.00 43.00 38.00 36.00
Total Positions 1,288.00 1,230.00 1,213.00 1,116.00 1,132.00 1,133.00 1,122.00 1,131.00 1,098.00 1,060.00
Operating
& Other Information
77
Federal Direct or Award /2015
Grantor/Project Title CFDA Number Pass Through Identifying Number Expenditures
Department of Commerce
Economic Adjustment Assistance 11.307 Direct 06-19-01251 5,226,379
Dept of Housing and Urban Development
Community Development Block Grants/Entitlement Grants
Neighborhood Stabilization Grant 2008 14.218 Direct B08-MN-18-0011 586,584
Neighborhood Stabilization Grant 2011 14.218 Direct B11-MN-18-0011 66,593
Block Grant 2014 14.218 Direct B14-MC-18-0011 1,004,743
Block Grant 2015 14.218 Direct B15-MC-18-0011 804,228
Emergency Solutions Grant Program
Hearth Emergency Shelter Grant 2013 14.231 Direct E13-MC-18-0011 15,537
Hearth Emergency Shelter Grant 2014 14.231 Direct E14-MC-18-0011 70,535
Hearth Emergency Shelter Grant 2015 14.231 Direct E15-MC-18-0011 88,893
Continuum of Care Program 14.267 Direct IN0009L5H001306 181,352
14.267 Direct IN0012L5H001306 19,000
14.267 Direct IN0012L5H001407 50,078
Education and Outreach Initiatives 14.401 Direct FF205K155014 59,868
Fair Housing Assitance Program - State and Local
Department of Justice
Violent Gang/Gun Crime Reduction 16.609 Direct 2014-GP-BX-0002 8,543
JAG Program Cluster 16.738 Direct 12DJBX0955 46,418
Edward Byrne Memorial Justice Assistance Grant Program 16.738 Direct 14DJBX0690 19,189
Equitable Sharing Program (asset forfeiture)16.922 Direct 164,079
Department of Transportation
Federal Highway Administration 20.205 Pass-through A249-14-320311 126,534
Highway Planning and Construction 20.205 Pass-through A249-15-320123A 145,435
20.205 Pass-through A249-15-320124 95,704
20.205 Pass-through A249-15-320126A 98,798
20.205 Pass-through A249-15-320127A 74,310
Equal Employment Opportunity Commission
Employment Discrimination 30.002 Direct EECCN130031 93,639
State and Local Fair Employment Practices Agency Contracts
Environmental Protection Agency
Brownfield Assessment Grant 66.818 Direct BF00E01371 108,597
Total Federal Awards Expended 9,155,036$
Sent to SBOA 2 Mar 2015
City of South Bend, Indiana
Schedule of Expenditures of Federal Awards
December 31, 2015
Grant Compliance 78
UNEMPLOYMENT DROPPED
A 29% REDUCTION
5.5%
IN DEC ‘15
7.7%
IN JAN ’15
City Legal updated South Bend’s contracting policy
to expand protections for all community members of
every race, gender, or sexual orientation and identity
PROTECTIONS FOR ALL COMMUNITY MEMBERS
Smart Sewers prevented 500 million gallons
of sewage entering the river in 2015
70% REDUCTION
$178,793,982
INVESTED IN SOUTH BEND CONSTRUCTION IN 2015 an 112%
INCREASE OVER 2014 Placing South Bend in the
TOP 5 Indiana Second Class
cities for fiscal strength
BOND RATINGAA
$5,600,000
BOND REFINANCING
WILL SAVE TAX PAYERS
SOUTH BEND’S POPULATION
EXPERIENCED ITS LARGEST 1-YEAR EXPANSION IN 20 YEARS
Invested in the City’s west side, in addition to $500,000 of
public and private investment for 14 west side projects
selected under the façade matching grant program
$4.3 MSOUTH BEND’S SMART STREETS
South Bend has ended the crisis of
collapsing houses, now we look
to new opportunities to reuse and
redevelop some of our vacant land
ABANDONED HOUSES
1,122 TOOK ACTION ON
INCLUDING 433 HOUSES REPAIRED
$164 M OF PRIVATE
INVESTMENT
WILL CREATE 900 JOBS
DOWNTOWN WILL SEE THE ADDITION OF OVER 300 NEW RESIDENTIAL UNITS,
INCLUDING 300 NEW HOTEL ROOMS IN 2016
The Former College Football
Hall of Fame will become
a Courtyard by Marriott
MAKEOVERS FOR TWO OF SOUTH BEND’S MOST ICONIC BUILDINGS:
The Former Chase Tower
will become an Aloft
hotel and residences &
took
142,313
calls in 2015
The City’s resident service line is on track
to receive its 500,000 in June
In 2015, South Bend neighborhoods saw
34,019
NEW linear ft of sidewalk
13,927
NEW linear f of curb &
The City passed an ordinance in 2015
that added food trucks to the list of
allowable businesses—and a real-time
food truck tracker bit.ly/sbftt
BROUGHT STREET LIGHTS TO PARTS OF
THE CITY WITHOUT ADEQUATE COVERAGE
LIGHT UP SOUTH BEND
in Riley High School area
bringing the program total to 14670 NEW LIGHTS
SOUTH BEND BY THE NUMBERS
COMPREHENSIVE ANNUAL FINANCIAL REPORT | FISCAL YEAR ENDING ON DECEMBER 31, 2015