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HomeMy WebLinkAbout2016 Continuing Disclosure - Water WorksCity of South Bend, Indiana $8,300,000 Waterworks Revenue Bonds of 2012 CUSIP Base 836632 (Dated June 21, 2012) $3,300,000 Waterworks Refunding Revenue Bonds of 2016 CUSIP Base 836632 (Dated December 27, 2016) $5,380,000 Indiana Bond Bank Special Program Bonds, Series 2009C-1 CUSIP Base 454624 (Dated November 19, 2009) Annual Information for Compliance with SEC Rule 15(c)2-12 ANNUAL WATERWORKS FLOW DATA 2012 2013 2014 2015 2016 Capacity (MGD) 60 60 60 60 53.70 Average Daily Flow (MGD)16.60 15.33 14.66 14.35 14.60 Peak Flow (MGD) 36.60 27.14 22.75 24.25 26.49 Source: City of South Bend Municipal Waterworks NUMBER OF WATERWORKS CUSTOMERS Total Number Percentage Year of Customers Increase 2012 42,491 0.77% 2013 42,784 0.69% 2014 42,886 0.24% 2015 43,484 1.39% 2016 43,643 0.37% Source: City of South Bend Municipal Waterworks LARGEST WATERWORKS CUSTOMERS Billed Customer Type of Business Usage Revenue % (100 Cu. Ft.) South Bend Community School Corporation Public education 85,855 $99,699 0.99 Memorial Hospital of South Bend Health care 105,981 95,161 0.95 Irish Hills Apartments Apartments 58,931 68,865 0.69 Honeywell Aerospace Co Mfg. aircraft and automotive parts 66,790 62,865 0.63 St. Joseph County Maintenance Department Government 47,923 41,930 0.42 Castle Point Apartments Apartments 42,986 40,994 0.41 Indiana University South Bend Higher education 37,780 39,765 0.40 Aramark Uniform Services Uniform supplier 50,154 39,186 0.39 Laurnenz Place LLC Apartments 47,820 37,550 0.37 Holy Cross Care Services Inc Nursing care and rehab services 35,512 37,395 0.37 Total for Ten Largest Customers 579,732 $563,410 5.62 Total Operating Revenues of the Utility $10,024,092 Source: City of South Bend Municipal Waterworks 1 CITY OF SOUTH BEND The following is a list of the ten largest users of the water utility, according to the utility records. Total billed revenue for the twelve months ended December 31, 2016 was $10,024,092. The ten largest users as presented below accounted for approximately 5.62 percent of billed revenue. Twelve Months Ended 12/31/2015 SCHEDULE OF WATER PRESENT RATES AND CHARGES Present Monthly Consumption Per Month (Rate Per 100 Cubic Feet) (2)Rates (1) First 500 cubic feet $1.716 Next 1,500 cubic feet 1.490 Next 5,500 cubic feet 1.310 Next 22,500 cubic feet 1.153 Next 90,000 cubic feet 0.905 Over 120,000 cubic feet 0.701 Minimum Monthly Charge Based on Meter Size (2) 5/8 inch meter $7.76 3/4 inch meter 11.19 1 inch meter 19.90 1 1/2 inch meter 44.72 2 inch meter 79.54 3 inch meter 178.96 4 inch meter 318.16 6 inch meter 716.02 8 inch meter 1,272.95 10 inch meter 1,988.53 12 inch meter 2,863.10 Fire Protection Monthly Public Fire Protection Charge (2) 5/8 inch connection $2.25 3/4 inch connection 2.25 1 inch connection 5.77 1 1/2 inch connection 12.98 2 inch connection 23.06 3 inch connection 51.90 4 inch connection 92.28 6 inch connection 207.62 8 inch connection 369.08 10 inch connection 576.70 Private Fire Protection Service - Automatic Sprinkler, per annum (2) 1 inch connection $35.62 2 inch connection 71.77 3 inch connection 143.53 4 inch connection 286.80 6 inch connection 355.56 8 inch connection 610.60 10 inch connection 954.38 12 inch connection 1,375.98 Temporary Service (2) Minimum Monthly Charge $29.00 Water Service Fund (2) Monthly Charge $2.00 CITY OF SOUTH BEND (1) Present rates approved by the Indiana Utility Regulatory Commission on February 8, 2006. (2) Customers with water service outside the City limits shall incur an added surcharge of twenty percent (20%) on all the rates and charges. 2 (Approved by the Indiana Utility Regulatory Commission on February 8, 2006) Total Principal $5,380,000 Security and Lien Net Revenues of the Water Utility ("Net Revenues" is defined as gross revenues of the Water Utility after deduction only for the payment of the reasonable expenses of operation, repair and maintenance, excluding any rates or charges in lieu of taxes made and collected by the Water Utility and transferred to the City of South Bend.) Repayment Schedule Annual principal payments commencing January 1, 2013 and terminating January 1, 2030. Interest Payments Semiannual principal payments commencing January 1, 2010 and each January 1 and July 1 thereafter. Debt Service Reserve Maximum principal and interest to be funded by a five (5) year build up of Net Revenues. CITY OF SOUTH BEND DESCRIPTION OF PROJECT 3 Proceeds of the Series 2009 C-1 Qualified Obligations were used for upgrades, expansion, additions, replacements, extensions and improvement to the Water Utility, including (a) the repair and replacement of a roof on a 5.5 million gallon reservoir; (b) the repair of an under drain and replacement of the filter media at a filtration plant; (c) the replacement of four main line valves; (d) the installation of a water main extension south of the intersection of Ireland Road and Ironwood Drive; (e) the design and installation of a pumping station at the Ireland Road Tank site; (f) the installation of a water main extension from Carroll Street and Johnson Road to Lucinda Street to U.S. 31, and from Lilac Road to Armstrong Drive along Kern Road; (g) the purchase of two tandem axle dump trucks and one backhoe; (h) the purchase of residential water meters; (i) making any and all additional improvements related to the foregoing; and (j) the costs of issuance associated therewith. DESCRIPTION OF THE SERIES 2009 C-1 QUALIFIED OBLIGATIONS CERTAIN GENERAL ECONOMIC AND DEMOGRAPHIC INFORMATION The City of South Bend (the "City") is located in St. Joseph County approximately 140 miles north of Indianapolis and 90 miles east of Chicago, Illinois. The City is serviced by I-80 and I-90, U.S. 31 and State Road 23. The City's economy is a mix of education, healthcare and manufacturing. The City's population in the 2010 Census was 101,168. SCHEDULE OF INDEBTEDNESS Original Final Outstanding Direct Debt Par Amount Maturity Amount Self-Supporting Revenue Debt (1) Waterworks Refunding Revenue Bonds of 2016 $3,300,000 01/01/27 $3,300,000 Waterworks Revenue Bonds of 2012 8,300,000 01/01/33 6,925,000 Waterworks Refunding Revenue Bonds of 2012B 3,785,000 01/01/23 2,380,000 Waterworks Revenue Bonds of 2009, Series A (SRF) 427,332 01/01/30 332,562 Waterworks Revenue Bonds of 2009, Series B 5,380,000 01/01/30 4,325,000 Sewage Works Refunding Revenue Bonds of 2015 27,440,000 12/01/25 24,965,000 Sewage Works Refunding Revenue Bonds, Series 2013A 14,765,000 12/01/24 8,050,000 Sewage Works Revenue Bonds of 2012 25,000,000 12/01/32 20,890,000 Sewage Works Revenue Bonds of 2011 21,500,000 12/01/31 17,295,000 Sewage Works Revenue Bonds of 2010 9,345,000 12/01/30 7,145,000 Sewage Works Revenue Bonds of 2009 (SRF) 3,297,000 12/01/28 2,249,643 Waterworks and Sewage Works Leases 3,325,737 Subtotal 101,182,942 Tax Supported Debt Economic Development Income Tax Bonds of 2015 $5,605,000 08/01/35 $5,295,000 Century Center Energy Conservation Bonds of 2015 (QECB) 4,167,897 05/01/31 4,145,311 Redevelopment Authority Lease Rental Revenue Bonds, Series 2015 25,000,000 02/01/37 25,000,000 Lease Rental Revenue Refunding Bonds of 2015 31,450,000 02/15/33 29,420,000 Lease Rental Revenue Refunding Bonds, Series 2013 3,990,000 05/01/26 3,175,000 Taxable Lease Rental Revenue Refunding Bonds, Series 2011A 7,580,000 02/01/18 1,230,000 Lease Rental Revenue Refunding Bonds, Series 2011B 2,980,000 02/01/18 485,000 Special Program Refunding Bonds, Series 2011A (Downtown Central Development Area) 18,030,000 08/01/24 11,850,000 Special Program Refunding Bonds, Series 2011A (Airport Development Area) 10,435,000 08/01/24 6,755,000 (Continued on next page) 4 The following schedule shows the outstanding indebtedness of the City and the taxing units within and overlapping its jurisdiction as of February 15, 2017, as reported by the respective taxing units. The City anticipates making substantial improvements to the Sewage Works over the next 20 years as part of its Long Term Control Plan and a Consent Decree entered into between the City and the U.S. Department of Justice and USEPA. The cost estimate for the Consent Decree is approximately $600 million. The exact costs and timing of these improvements are still to be determined. (1) CITY OF SOUTH BEND Original Final Outstanding Par Amount Maturity Amount Tax Supported Debt (Cont'd.) Redevelopment District Special Taxing District Refunding Bonds of 2014 $3,440,000 01/01/22 $2,210,000 Taxable Revenue Bonds, Series 2010 4,980,000 01/15/19 1,340,000 City of South Bend Building Corporation First Mortgage Revenue Bonds, Series 2013 5,580,000 02/01/33 4,920,000 First Mortgage Revenue Refunding Bonds, Series 2012 13,595,000 02/01/23 8,265,000 County Option Income Tax Lease Rental Revenue Refunding Bonds of 2010 6,075,000 02/01/21 2,470,000 Leases and Loans 13,048,082 Subtotal 119,608,393 Total Direct Debt $220,791,335 Percent Amount Allocable to Allocable to Overlapping Debt Total Debt City (2)City Tax Supported Debt $30,465,000 28.17% $8,581,991 114,089,291 52.85% 60,296,190 36,675,073 2.68% 982,892 Mishawaka-Penn-Harris Public Library 2,475,000 2.19% 54,203 St. Joseph County Public Library 4,015,000 49.51% 1,987,827 12,080,000 28.17% 3,402,936 Tax Supported Debt 75,306,039 Self-Supporting Revenue Debt 875,000 62.41% 546,088 Self-Supporting Revenue Debt 546,088 Total Overlapping Debt $75,852,127 5 Based upon the 2016 payable 2017 net assessed valuation of the respective taxing units.(2) St. Joseph County (3) (3)On December 30, 2014, the City of South Bend's Mayor, as the executive of the City, designated a portion of the City's distributive share of County Economic Development Income Tax to St. Joseph County (the "County"), pursuant to IC 6-3.5-7-15, in such amount as necessary to pay the annual debt service of 29.03% of the County's Economic Development Income Tax Revenue Bonds of 2014 ("County Bonds"), as long as these County Bonds remain outstanding. The principal balance outstanding attributable to the City was $2,386,508 as of December 31, 2016, as the City prepaid some of the outstanding principal amount. The schedule presented above is based on information furnished by the obligors or other sources and is deemed reliable. The City makes no representation or warranty as to its accuracy or completeness. CITY OF SOUTH BEND South Bend Public Transportation South Bend Community School Corporation SCHEDULE OF INDEBTEDNESS (Cont'd) Penn-Harris-Madison School Corporation St. Joseph County Airport Authority Certified Net Assessed Valuation - 2016 Payable 2017 $2,317,096,240 2% of One-Third Thereof 15,447,308 Less Bonds subject to limitation: Economic Development Income Tax Bonds of 2015 (5,295,000) Issuance Margin $10,152,308 Population - 2010 101,168 Certified Net Assessed Valuation - 2016 Payable 2017 $2,317,096,240 Ratio of Debt Per Debt/Assessed Description Amount Capita Valuation Total Direct Debt and Lease Obligations $220,791,335 $2,182.42 9.53% Total Overlapping and Underlying Direct Debt and Lease Obligations 75,852,127 749.76 3.27% Totals $296,643,462 $2,932.18 12.80% CITY OF SOUTH BEND 6 The City is limited to the issuance of direct general obligation debt in an amount not to exceed 2% of one-third of the assessed valuation. PER CAPITA AND DEBT RATIO ANALYSIS DIRECT DEBT ISSUANCE LIMITATION (CITY OF SOUTH BEND) Issue Original Final Title Date Amount Maturity Outstanding Economic Development Income Tax Bonds of 2015 2015 $5,605,000 08/01/35 $5,295,000 St. Joseph County Economic Development Income Tax Revenue Bonds of 2014 2014 2,657,697 12/31/34 2,386,508 (1) Total $7,681,508 (1) Issue Original Final Title Date Amount Maturity Outstanding County Option Income Tax Lease Rental Revenue Refunding Bonds of 2010 2010 $6,075,000 02/01/21 $2,470,000 Taxable Revenue Bonds, Series 2010 2010 4,980,000 01/15/19 1,340,000 First Mortgage Revenue Refunding Bonds, Series 2012 2012 13,595,000 02/01/23 8,265,000 Total $12,075,000 Issue Original Final Title Date Amount Maturity Outstanding Lease Rental Revenue Refunding Bonds, Series 2013 2013 $3,990,000 05/01/26 $3,175,000 Century Center Energy Conservation Bonds of 2015 (QECB) 2015 4,167,897 05/01/31 4,145,311 Total $7,320,311 CITY OF SOUTH BEND These Bonds are payable solely from the City's share of the St. Joseph County Economic Development Income Tax and do not constitute a claim against the base property taxes collected or other income of the City. COUNTY OPTION INCOME TAX LEASE RENTAL REVENUE BONDS (As of February 15, 2017) These Bonds are payable solely from the City's share of the St. Joseph County Option Income Tax and do not constitute a claim against the base property taxes collected or other income of the City. 7 (Continued on next page) HOTEL-MOTEL TAX REVENUE DEBT (As of February 15, 2017) CITY ECONOMIC DEVELOPMENT INCOME TAX REVENUE BONDS (As of February 15, 2017) On December 30, 2014, the City of South Bend's Mayor, as the executive of the City, designated a portion of the City's distributive share of County Economic Development Income Tax to St. Joseph County (the "County"), pursuant to IC 6- 3.5-7-15, in such amount as necessary to pay the annual debt service of 29.03% of the County's Economic Development Income Tax Revenue Bonds of 2014 ("County Bonds"), as long as these County Bonds remain outstanding. The principal balance outstanding attributable to the City was $2,386,508 as of December 31, 2016, as the City prepaid some of the outstanding principal amount. (Cont'd) Issue Original Final Title Date Amount Maturity Outstanding Lease Rental Revenue Bonds, Series 2015 2015 $25,000,000 02/01/37 $25,000,000 Lease Rental Revenue Refunding Bonds of 2015 2015 31,450,000 02/15/33 29,420,000 (1) Special Taxing District Refunding Bonds of 2014 2014 3,440,000 01/01/22 2,210,000 (1) Special Program Refunding Bonds, Series 2011A 2011 18,030,000 08/01/24 11,850,000 (Downtown Central Development Area) Special Program Refunding Bonds, Series 2011A 2011 10,435,000 08/01/24 6,755,000 (Airport Development Area) Total $75,235,000 Final Title Maturity Outstanding Waterworks Refunding Revenue Bonds of 2016 01/01/27 $3,300,000 Waterworks Revenue Bonds of 2012 01/01/33 6,925,000 Waterworks Refunding Revenue Bonds of 2012B 01/01/23 2,380,000 Waterworks Revenue Bonds of 2009, Series A (SRF) 01/01/30 332,562 Waterworks Revenue Bonds of 2009, Series B 01/01/30 4,325,000 Sewage Works Refunding Revenue Bonds of 2015 12/01/25 24,965,000 Sewage Works Refunding Revenue Bonds, Series 2013A 12/01/24 8,050,000 Sewage Works Revenue Bonds of 2012 12/01/32 20,890,000 Sewage Works Revenue Bonds of 2011 12/01/31 17,295,000 Sewage Works Revenue Bonds of 2010 12/01/30 7,145,000 Sewage Works Revenue Bonds of 2009 (SRF) 12/01/28 2,249,643 Waterworks and Sewage Works Leases 3,325,737 (1) The Bonds are payable from a Special Ad Valorem Tax; however, it is the intent of the City to pay from Tax Increment Revenues. 8 The City of South Bend owns and operates the municipal waterworks and municipal sewage works (the "Utilities") which have heretofore issued and have outstanding the following revenue bonds. All such revenue bonds constitute a lien on the revenue of the utilities and are not, pursuant to Indiana statures, direct obligations of the City. Revenue bonds issued of the Utilities and outstanding as of February 15, 2017, were as follows: STATEMENT OF CITY UTILITY REVENUE DEBT TAX INCREMENT FINANCING (TIF) REVENUE DEBT (As of February 15, 2017) Year City of South Bend St. Joseph County 2013 $2,336,906,810 $7,671,151,787 2014 2,181,510,508 7,514,198,242 2015 2,230,375,068 7,864,008,472 2016 2,257,279,248 7,906,760,026 2017 2,317,096,240 8,201,203,024 2013 3.4% 2014 3.4% 2015 3.3% 2016 3.3% 2017 3.23% Cigarettes: Gasoline: Per 20 Cigarette Pack Per Gallon 2013 $0.995 $0.18 2014 0.995 0.18 2015 0.995 0.18 2016 0.995 0.18 2017 0.995 0.18 9 7% tangible personal property except food and prescription drugs. Excise tax in lieu of personal property tax, based on initial retail price and age of vehicle. Additional 6% sales tax on any overnight stay in St. Joseph County. INNKEEPERS TAX INDIVIDUAL ADJUSTED GROSS INCOME EXCISE TAX AUTOMOBILE TAX Personal Exemptions: $1,000 annual exemption allowed for taxpayer and $1,500 for each dependent child. 0.25% of adjusted gross income of St. Joseph County resident taxpayers and certain non- resident St. Joseph County taxpayers. 0.4% of adjusted gross income of St. Joseph County resident taxpayers and certain non- resident St. Joseph County taxpayers. 0.4996% of adjusted gross income of St. Joseph County resident taxpayers and certain non- resident St. Joseph County taxpayers. COUNTY OPTION INCOME TAX LOCAL OPTION INCOME TAX 0.6004% of adjusted gross income of St. Joseph County resident taxpayers and certain non- resident St. Joseph County taxpayers. LOCAL OPTION INCOME TAX PUBLIC SAFETY CITY OF SOUTH BEND CERTIFIED ASSESSED VALUATION SALE & USE TAX COUNTY ECONOMIC DEVELOPMENT INCOME TAX St. Joseph County Year Personal Total Total Payable Real Estate Utilities Property Taxable Value Taxable Value 2013 $1,858,213,181 $100,832,450 $412,042,066 $2,371,087,697 $7,753,967,187 2014 1,687,672,152 90,252,180 431,802,340 2,209,726,672 7,612,534,622 2015 1,753,122,893 86,924,710 420,221,715 2,260,269,318 7,894,770,717 2016 1,737,036,616 83,786,930 456,346,197 2,277,169,743 7,993,696,892 2017 1,758,787,301 105,036,200 463,676,740 2,327,500,241 8,262,636,370 Note: See footnote (a) at the end of this report. CITY OF SOUTH BEND SCHEDULE OF HISTORICAL NET ASSESSED VALUATION (As Provided by the St. Joseph County Auditor's Office) City of South Bend 10 TOTAL CERTIFIED TAX RATES City of South Bend - Portage Township Per $100 of Net Assessed Valuation Year Taxes Payable 2013 2014 2015 2016 2017 County $0.6731 $0.7058 $0.6866 $0.6974 $0.6950 Portage Township 0.0453 0.0505 0.0500 0.0512 0.0527 Schools 1.3493 1.3577 1.2940 1.2682 1.2049 Library 0.3227 0.3309 0.3207 0.3549 0.3372 Corporation General 2.5678 2.7977 2.8313 2.8703 2.8382 Park & Recreation 0.5102 0.5608 0.5676 0.5754 0.6473 Cumulative Cap Development 0.0328 0.0328 0.0325 0.0321 0.0313 Total Corporation 3.1108 3.3913 3.4314 3.4778 3.5168 Redevelopment General 0.0599 0.0379 0.0687 0.0648 0.0376 Airport 0.0330 0.0345 0.0338 0.0423 0.0285 Transportation 0.1042 0.1125 0.1100 0.1153 0.1161 Total Tax Rate $5.6983 $6.0211 $5.9952 $6.0719 $5.9888 Total District Certified Tax Rate (1) South Bend - Centre Twp. $5.6530 $5.9804 $5.9591 $6.0315 $5.9361 South Bend - Clay Twp. $5.6653 $6.0039 $5.9762 $6.0517 $5.9686 South Bend - German Twp. $5.6659 $5.9839 $5.9591 $6.0342 $5.9486 South Bend - Portage Twp. $5.6983 $6.0211 $5.9952 $6.0719 $5.9888 South Bend - Penn Twp. $5.3092 $5.7143 $5.5980 $5.6233 $5.5146 South Bend - Warren Twp. $5.6938 $6.0117 $5.9861 $6.0630 $5.9753 (1) Includes certified tax rates of overlapping taxing units. Source: DLGF Certified Budget Orders for the City. 11 CITY OF SOUTH BEND PROPERTY TAXES LEVIED AND COLLECTED Certified Taxes Levied Certified Net of Collected as Collected as Collection Taxes Circuit Breaker Circuit Breaker Taxes Percent of Percent of Year Levied Tax Credit Tax Credit Collected Gross Levy Net Levy (1) 2012 $70,756,844 ($23,965,911) $46,790,933 $47,728,794 67.45% 102.00% 2013 72,696,497 (27,863,156) 44,833,341 43,943,006 60.45% 98.01% 2014 73,981,565 (28,708,050) 45,273,515 44,540,371 60.20% 98.38% 2015 76,533,090 (31,636,141) 44,896,949 45,265,669 59.15% 100.82% 2016 78,503,658 (32,421,068) 46,082,590 47,766,833 60.85% 103.65% Source: The St. Joseph County Auditor's Office and the DLGF Certified Budget Orders for the City. CITY OF SOUTH BEND 12 (1) Circuit Breaker Tax Credits allocable to the City per the DLGF. Note: See footnote (b) at the end of this report. LARGE TAXPAYERS Percent of 2016/2017 Total Net Assessed Net Assessed Name Type of Business Valuation Valuation (1) Indiana Michigan Power Company (2) Electric utility $50,290,160 2.16% University of Notre Dame (2) Higher education 43,287,836 1.86% Edward Rose of Indiana (2) Apartment complexes 37,011,700 1.59% Honeywell International, Inc./ Bendix Corp. (2) Mfg. auto and aircraft parts 35,957,771 1.54% Steel Warehouse Co., Inc./ Lock Joint Tube LLC (2) Steel processing 33,327,984 1.43% Indiana Bell Telephone Co, Inc./ AT&T Telecommunications utility 33,185,910 1.43% Services, Inc. (2) JVE Investments LLC/ The Tire Rack, Inc. (2) Tire sales 24,703,590 1.06% Federal-Mogul Powertrain Systems Mfg. automotive parts 23,751,180 1.02% Northern Indiana Public Service Company (2) Gas & electric utility 22,260,990 0.96% Eddy Property Development, Inc./ South Bend Healthcare clinic 21,728,410 0.93% Clinic LLP (2) Totals $325,505,531 13.98% (1) (2) 13 CITY OF SOUTH BEND The total net assessed valuation of the City is $2,327,500,241 for taxes payable in 2017, according to the St. Joseph County Auditor's office. The following is a list of the ten largest taxpayers located within the City. Source: County Auditor's office and the DLGF. Individual parcel data is submitted by the County Auditor to the DLGF once a year for preparation of the county abstract. Located in a tax increment allocation area; therefore, all or a portion of the taxes are captured as TIF and not distributed to individual taxing units.