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HomeMy WebLinkAbout2016 Fiscal DashboardCity of South Bend, Indiana Fiscal Stability Performance Indicators 2015 2016 Progress City Real & Personal Property Values (Net Assessed Value in Billions of $)$2.260 $2.277  Annual General Fund Expenditures per Capita $611 $630  General Fund Balance as % of Expenditures 49.53%53.24% Bond Rating (Standard & Poor’s)AA AA  Debt per Capita $2,487 $2,342  Debt as % of Net Assessed Valuation (NAV )11.13%10.40% Full Time Employees per 1,000 residents 10.5 10.7  Property Tax Revenue (All Funds)$70,914,835 $76,708,415  Local Option Income Tax Revenue $24,507,308 $31,463,185  Annual Governmental Fund Expenditures per Capita $1,707 $1,690  General and Local Income Tax Fund Expenditures per Capita $811 $823  Government-wide Expenses per Capita $2,236 $1,963  Ending Cash Balances (Millions)$228.8 $234.5  Average Interest Rate Earned 0.78%1.05% Performance Key: Improving Staying about the same Declining August 10, 2017 Department of Administration & Finance 1 City of South Bend, Indiana City Real & Personal Property Values Why is this important? One large source of revenue for the City of South Bend is property taxes which the residents pay each year. As taxable values change, so does the tax revenue. The tax revenue is essential to providing the services to the residents of the City of South Bend that they have come to know and expect. $4,560 $4,543 $5,009 $5,041 $5,387 $5,072 $4,992 $4,911 $5,091 $4,843 $4,837 $4,887 $2,819 $2,835 $3,022 $2,976 $2,669 $2,454 $2,324 $2,381 $2,371 $2,210 $2,260 $2,277 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016In MillionsGross Assessed Value Net Assessed Value August 10, 2017 Department of Administration & Finance 2 City of South Bend, Indiana General Fund Budget and Finances Year Status General Fund Revenue General Fund Expenditures Net Change in Fund Balance General Fund Ending Balance 2016 (3)Audited $67,108,809 $63,778,243 $3,330,566 $33,952,622 2015 (2)Audited $64,855,322 $61,820,671 $3,034,651 $30,622,056 2014 (1)Audited $66,512,478 $66,593,986 ($81,508)$27,587,405 2013 Audited $72,115,610 $73,241,780 ($1,126,170)$27,668,913 2012 Audited $75,234,013 $74,370,146 $863,867 $28,795,083 2011 Audited $73,049,860 $73,855,786 ($805,926)$27,931,216 2010 Audited $73,963,008 $69,844,321 $4,118,687 $28,737,142 2009 Audited $59,313,038 $62,111,167 ($2,798,129)$24,618,455 2008 Audited $69,247,990 $65,592,159 $3,655,831 $27,416,584 (1) Decrease in 2014 due to paying a portion of the police and fire salaries from PS LOIT Fund. (2) Decrease in 2015 due to the transfer of the Emergency Medical Services (EMS) from General Fund to a separately dedicated EMS Fund. (3) During 2016, property tax revenue increased and public safety expenditures increased, primarily due to liability insurance allocations that were not charged in 2015. August 10, 2017 Department of Administration & Finance 3 City of South Bend, Indiana Annual General Fund Expenditures per Capita * Decrease in 2014 due to paying a portion of the police and fire salaries from PS LOIT Fund. ** Decrease in 2015 due to the transfer of the Emergency Medical Services (EMS) from General Fund to a separately dedicated EMS Fund. *** Increase in public safety costs due to liability insurance allocation not charged in 2015 and other factors. Why is this important? Cost per resident is a measure of how much it costs to operate the City on a per-person basis. The City of South Bend continues to explore ways to provide high-quality services to residents at the lowest possible cost. $648 $614 $690 $730 $735 $724 $658 $611 $630 $500 $550 $600 $650 $700 $750 2008 2009 2010 2011 2012 2013 2014 2015 2016 General Fund Expenditures per Capita (Pop. 101,168) August 10, 2017 Department of Administration & Finance 4 City of South Bend, Indiana General Fund Balance % of Expenditures Why is this important? The financial health of the City is important to provide and maintain services. The General Fund Balance is one method of measuring financial health, and is a strong contributor to the credit rating of an organization. Note: Expenditures include transfers to other funds. Fund balance is defined as ending fund balance. 41.80%39.64%41.14%37.82%38.72%37.78% 41.43% 49.53% 53.24% 25.00% 30.00% 24.30% 18.20%16.50%19.70%20.10%21.80%22.80%24.50% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% 55.00% 60.00% 2008 2009 2010 2011 2012 2013 2014 2015 2016 General Fund Balance % of Expenditures Minimum Threshold per Board Policy National League of Cities Survey (2016 unavailable) August 10, 2017 Department of Administration & Finance 5 City of South Bend, Indiana Bond Rating Why is this important? The bond or credit rating is a measure of the City’s financial reputation. A good credit rating enables the City to borrow money for construction projects and other needs at the most competitive rates available. This saves thousands of taxpayer dollars in interest payments. 0 20 40 60 80 100 120 140 AAA AA+AA AA-A+A A-BBB+BBB BBB- Indiana Local Government Standard & Poor's Bond Ratings South Bend's S&P rating is AA State of Indiana’s S&P rating is AAA August 10, 2017 Department of Administration & Finance 6 City of South Bend, Indiana Debt per Capita Why is this important? The City of South Bend issues long-term debt for large capital projects, such as local water and sewer projects, economic development projects and capital leases. Its debt burden is computed as the outstanding principal balance at year end on this debt. During 2015, the City issued bonds for Park improvements, energy savings projects at the Century Center and the “Smart Streets” conversion of one-way to two-way streets to enhance economic development. $1,830 $2,053 $2,314 $2,239 $2,325 $2,363 $2,603 $2,488 $2,324 $2,487 $2,342 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Primary Government Debt Per Capita August 10, 2017 Department of Administration & Finance 7 City of South Bend, Indiana Debt as % of Net Assessed Value (NAV ) Why is this important? The lower the debt to Net Assessed Valuation ratio, the more financially healthy a community is. City borrowing in recent years includes revenue bonds for the Sewer Long-Term Control Plan that will be funded with higher sewer rates. New Sewer bonds were not issued during 2013 -2015. In 2015, the City issued bonds for parks improvements, energy savings projects at the Century Center and the “Smart Streets” conversion of one-way to two way streets to enhance economic activity. 6.74%7.07% 8.16%8.91%9.59%10.29%11.06%10.61%10.64%11.13%10.40% 0% 2% 4% 6% 8% 10% 12% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Primary Government Debt Debt as a % of Net Assessed Value Capita August 10, 2017 Department of Administration & Finance 8 Department of Administration & Finance City of South Bend, Indiana Full Time Number of Employees Why is this important? A measure of efficiency is the number of employees per 1,000 residents. The lower the ratio of employees per 1,000 residents, the more efficient the City is providing services to the community. Note: The change in full time employees vs. employees per 1,000 residents is due mainly to layoffs due to circuit breaker issues and the privatization of the zoo and the management of the convention center along with the transfer of 911 call center operations to Saint Joseph County. Full time employees determined at year-end. (2010 Census population of 101,168 used for calculation.) 1,288 1,230 1,213 1,116 1,132 1,133 1,122 1,131 1,098 1,060 1,079 12.7 12.2 12.0 11.0 11.2 11.2 11.1 11.2 10.9 10.5 10.7 9.5 10.0 10.5 11.0 11.5 12.0 12.5 13.0 13.5 14.0 0 200 400 600 800 1,000 1,200 1,400 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Primary Government Full Time Employees Primary Government Employees per 1,000 Residents August 10, 2017 9 City of South Bend, Indiana Property Tax Revenue –All Funds –Cash Basis Why is this important? Property tax revenue is the largest source of revenue for governmental operations such as police and fire protection. In 2008, the State of Indiana passed “Circuit Breaker” property tax reform which capped property tax rates and reduced revenue for local governmental units. During 2016, property tax revenue increased due to increased net assessed valuation and higher collection rates. $84.5 $74.3 $77.3 $73.0 $72.9 $70.0 $72.0 $70.9 $76.7 $60 $65 $70 $75 $80 $85 $90 2008 2009 2010 2011 2012 2013 2014 2015 2016In MillionsProperty Tax Revenue (in millions) August 10, 2017 Department of Administration & Finance 10 City of South Bend, Indiana Local Option Income Tax Revenue -Cash Basis Why is this important? Local option income taxes (COIT, CEDIT, PS LOIT) are an important source of revenue for governmental operations, including public safety and capital projects. Effective for fiscal year 2010, Local Option Income Tax rates were increased in response to State Legislation reducing property tax revenue. Local income taxes are charged on wages paid to employees. During 2016, regular local option income tax revenue increased by $1.4 million due to wage growth in an improving local economy. In addition, the State of Indiana paid a special local option income tax distribution of $5.6 million for road funding. $10.2 $12.1 $22.8 $19.7 $24.3 $21.9 $23.8 $24.5 $31.5 $0 $5 $10 $15 $20 $25 $30 $35 2008 2009 2010 2011 2012 2013 2014 2015 2016In MillionsLocal Option Income Tax Revenue (in millions) August 10, 2017 Department of Administration & Finance 11 City of South Bend, Indiana Governmental Funds Budget and Finances Governmental funds account for the general operations of the City (i.e. police and fire protection, road maintenance and economic development). Governmental funds receive property taxes, local income taxes, grants, interest income and other sources of revenue. Other sources include transfers from other funds, proceeds from debt issuance, debt refunding, claim settlements and other one-time items. Year Status Governmental Fund Revenues Governmental Fund Expenditures Other Sources and (Uses) Net Change in Fund Balance Governmental Fund Ending Balance 2016 Audited $152,669,418 $170,976,084 $9,221,150 ($9,085,516)$191,741,220 2015 Audited $142,719,826 $172,658,733 $36,278,971 $6,340,064 $200,826,736 2014 Audited $144,489,791 $154,300,097 $7,111,663 ($2,698,643)$194,486,672 2013 Audited $151,152,474 $152,860,750 $10,810,800 $9,102,524 $197,185,315 2012 Audited $147,379,084 $162,460,000 $6,929,631 ($8,151,258)$188,082,791 2011 Audited $152,877,172 $172,397,679 $7,552,867 ($11,967,640)$196,234,076 2010 Audited $158,342,276 $150,758,014 $4,567,041 $12,151,303 $208,201,716 2009 Audited $130,932,134 $142,962,710 $2,207,394 ($9,823,182)$196,050,413 2008 Audited $139,717,856 $138,022,795 $51,746,178 $53,441,239 $205,873,595 August 10, 2017 Department of Administration & Finance 12 City of South Bend, Indiana Annual Governmental Funds Expenditures per Capita Why is this important? Cost per resident is a measure of how much it costs to operate the City on a per-person basis. The City of South Bend continues to explore ways to provide high-quality services to residents at the lowest possible cost. The increase in per capita expenditures in 2015 and 2016 is due primarily to spending on capital projects using bond proceeds or cash reserves. $1,364 $1,413 $1,490 $1,704 $1,606 $1,511 $1,525 $1,707 $1,690 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 2008 2009 2010 2011 2012 2013 2014 2015 2016 Governmental Funds Expenditures per Capita (Pop. 101,168) August 10, 2017 Department of Administration & Finance 13 City of South Bend, Indiana General & Local Income Tax Funds Budget and Finances Year Status General & Local Income Tax Funds Revenues General &Local Income Tax Funds Expenditures Other Sources and (Uses) Net Change in Fund Balance General & Local Income Tax Funds Ending Balance 2016 Audited $89,653,742 $83,260,788 ($4,864,175)$1,528,779 $55,992,935 2015 Audited $86,414,320 $82,001,807 ($5,388,924)($976,411)$54,464,156 2014 Audited $86,650,588 $87,473,563 ($1,164,280)($1,987,255)$55,440,567 2013 Audited $83,120,786 $82,852,504 ($2,783,885)($2,515,603)$57,427,822 2012 Audited $88,482,061 $84,289,339 ($2,175,271)$2,017,451 $59,943,425 2011 Audited $87,039,700 $85,170,478 ($323,557)$1,545,665 $57,925,974 2010 Audited $92,166,343 $75,170,006 ($2,295,699)$14,700,638 $56,380,309 2009 Audited $71,401,298 $64,725,591 ($4,426,984)$2,248,723 $41,679,671 2008 Audited $79,453,180 $70,249,980 ($4,544,082)$4,659,118 $39,230,948 The General Fund and Local Income Tax Funds (COIT, EDIT and Public Safety LOIT) account for the general operations of the city including police and fire protection, economic development, code enforcement, debt service and capital. Due to circuit breaker tax caps, property tax revenue has declined while local income tax revenue has increased. Other sources and uses include transfers from other funds, proceeds from debt issuance, debt refunding, claim settlements and other one-time items. August 10, 2017 Department of Administration & Finance 14 City of South Bend, Indiana Annual General & Local Income Tax Funds Expenditures per Capita Why is this important? Cost per resident is a measure of how much it costs to operate the City on a per-person basis. The City of South Bend continues to explore ways to provide high-quality services to residents at the lowest possible cost. Property tax and local income tax revenue provide the majority of revenue for these funds. $694 $640 $743 $842 $833 $819 $865 $811 $823 $500 $550 $600 $650 $700 $750 $800 $850 $900 2008 2009 2010 2011 2012 2013 2014 2015 2016 General & Local Income Tax Funds Expenditures per Capita (Pop. 101,168) August 10, 2017 Department of Administration & Finance 15 City of South Bend, Indiana Government-wide Expenses Governmental activities include the General Fund, Parks & Recreation Fund, Motor Vehicle Highway Fund, Tax Increment Financing Funds, and other activities supported by taxes and fees. Business-type activities include the Water Utility, Wastewater Utility, Solid Waste, Century Center, and other activities that charge a fee for services. Expenses are net of interfund transfers, internal service funds, debt principle payments, trust funds, and include depreciation expense. August 10, 2017 Department of Administration & Finance 16 Year Status Government Business Type Total Government Business Type Total 2016 Audited $134,519,353 $64,067,328 $198,586,681 $1,330 $633 $1,963 2015 Audited $164,310,194 $61,899,676 $226,209,870 $1,624 $612 $2,236 2014 Audited $139,909,059 $55,879,605 $195,788,664 $1,383 $552 $1,935 2013 Audited $153,017,817 $54,949,283 $207,967,100 $1,513 $543 $2,056 2012 Audited $146,481,687 $48,559,092 $195,040,779 $1,448 $480 $1,928 2011 Audited $154,902,096 $46,323,473 $201,225,569 $1,531 $458 $1,989 2010 Audited $134,015,143 $45,486,515 $179,501,658 $1,325 $449 $1,774 2009 Audited $104,113,362 $51,623,898 $155,737,260 $1,029 $510 $1,539 2008 Audited $135,039,863 $48,780,128 $183,819,991 $1,335 $482 $1,817 Total Expenses Expenses per Capita Why is this important? Expenses per resident is a measure of how much it costs to operate the City on a per-person basis. The City of South Bend continues to explore ways to provide high-quality services to residents at the lowest possible cost. Government-wide expenses are net of interfund transactions, debt principle payments, and capital payments and include depreciation expense. August 10, 2017 Department of Administration & Finance 17 $1,817 $1,539 $1,774 $1,989 $1,928 $2,056 $1,935 $2,236 $1,963 $1,335 $1,029 $1,325 $1,531 $1,448 $1,513 $1,383 $1,624 $1,330 $482 $510 $449 $458 $480 $543 $552 $612 $633 $0 $500 $1,000 $1,500 $2,000 $2,500 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total Government-wide Exp per Capita Governmental Activities Exp Per Capita Business Type Activities Exp Per Capita City of South Bend, Indiana Government-wide Expenses per Capita City Per Capita Govnt- wide Expenses Ann Arbor,MI $2,106 Fishers, IN $1,253 Kalamazoo, MI $1,961 Lansing,MI $1,937 Mishawaka, IN $2,709 City of South Bend, Indiana Cash Balances and Investment Earnings Year Cash Balances (Dec 31st) Annual Investment Earnings Average Interest Rate Earned 2016 $234,529,325 $2,359,164 1.05% 2015 $228,782,505 $1,769,437 0.78% 2014 $239,808,095 $1,025,058 0.44% 2013 $247,349,777 $1,119,139 0.46% 2012 $255,285,203 $1,474,283 0.64% 2011 $231,747,445 $643,643 0.29% 2010 $227,739,252 $809,279 0.39% 2009 $188,453,001 $1,348,289 0.83% 2008 $140,621,862 $6,281,342 3.85% Cash balances are at December 31st. Trustee account cash balances and investment earnings are excluded from this analysis. Average interest rate earned is computed as the annual investment earnings divided by the average cash balance at December 31st of the prior year, and May 31st & December 31st of the current year. August 10, 2017 Department of Administration & Finance 18 Why is this important? The City of South Bend seeks to maintain healthy cash reserves for the following reasons: operating liquidity (property taxes are received two times during the year), unforeseen emergencies, capital projects, and to satisfy existing bond covenants. Cash balances are invested in fixed income instruments in accordance with Indiana state law. Interest rates declined significantly in 2009 due to the recession and have recently started to increase. August 10, 2017 Department of Administration & Finance 19 City of South Bend, Indiana Cash Balances and Investment Earnings $141 $188 $228 $232 $255 $247 $240 $229 $235 $6.3 $1.3 $0.8 $0.6 $1.5 $1.1 $1.0 $1.8 $2.4 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $0 $50 $100 $150 $200 $250 $300 2008 2009 2010 2011 2012 2013 2014 2015 2016Millions Cash Balances on Dec 31st (millions)Annual Investment Earnings (millions)