HomeMy WebLinkAbout2016 Continuing Disclosure - City of South BendCity of South Bend, Indiana
$5,605,000 Economic Development Income Tax Bonds of 2015
CUSIP Base 836518
(Dated August 4, 2015)
City of South Bend Building Corporation
$6,075,000 County Option Income Tax Lease Rental Revenue Refunding Bonds of 2010
CUSIP Base 836482
(Dated February 24, 2010)
$13,595,000 First Mortgage Revenue Refunding Bonds, Series 2012
CUSIP Base 836480
(Dated September 27, 2012)
$5,580,000 First Mortgage Revenue Bonds, Series 2013
CUSIP Base 836480
(Dated November 7, 2013)
South Bend Redevelopment District
$4,980,000 Taxable Revenue Bonds, Series 2010
(Recovery Zone Economic Development Bonds)
CUSIP Base 836565
(Dated December 30, 2010)
$3,440,000 Special Taxing District Refunding Bonds of 2014
CUSIP Base 836568
(Dated June 3, 2014)
South Bend Redevelopment Authority
$7,580,000 Taxable Lease Rental Revenue Refunding Bonds, Series 2011A
(College Football Hall of Fame Project)
CUSIP Base 836562
(Dated August 16, 2011)
$2,980,000 Lease Rental Revenue Refunding Bonds, Series 2011B (Century Center Project)
CUSIP Base 836562
(Dated August 16, 2011)
$3,990,000 Lease Rental Revenue Refunding Bonds, Series 2013 (Century Center Project)
CUSIP Base 836562
(Dated December 5, 2013)
$25,000,000 Lease Rental Revenue Bonds of 2015
CUSIP Base 836562
(Dated April 9, 2015)
$31,450,000 Lease Rental Revenue Refunding Bonds of 2015 (Eddy Street Commons Project)
CUSIP Base 836562
(Dated September 10, 2015)
Annual Information
for Compliance with
SEC Rule 15(c)2-12
SCHEDULE OF INDEBTEDNESS
Original Final Outstanding
Direct Debt Par Amount Maturity Amount
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
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
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.
CITY OF SOUTH BEND
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Original Final Outstanding
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
Total Direct Debt $220,791,335
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
Penn-Harris-Madison School Corporation
St. Joseph County Airport Authority
(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.
2
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.
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)
Based upon the 2016 payable 2017 net assessed valuation of the respective taxing units.(2)
St. Joseph County (3)
CITY OF SOUTH BEND
South Bend Public Transportation
South Bend Community School Corporation
SCHEDULE OF INDEBTEDNESS
(Cont'd)
DIRECT DEBT ISSUANCE LIMITTATION (CITY OF SOUTH BEND)
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
DIRECT DEBT ISSUANCE LIMITTATION (SOUTH BEND REDEVELOPMENT DISTRICT)
Certified Net Assessed Valuation - 2016 Payable 2017 $2,317,096,240
2% of One-Third Thereof 15,447,308
Less Bonds subject to limitation:
Special Taxing District Refunding Bonds of 2014 (2,210,000)
Taxable Revenue Bonds, Series 2010 (1,340,000)
Issuance Margin $11,897,308
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
The District is limited to the issuance of direct general obligation debt in an amount not to exceed 2% of one-third of the
assessed valuation.
3
The District 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
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
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
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STATEMENT OF CITY UTILITY REVENUE DEBT
TAX INCREMENT FINANCING (TIF) REVENUE DEBT
(As of February 15, 2017 )
CITY OF SOUTH BEND
HOTEL-MOTEL TAX REVENUE DEBT
(As of February 15, 2017 )
(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.
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:
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
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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
CITY OF SOUTH BEND
SCHEDULE OF HISTORICAL NET ASSESSED VALUATION
(As Provided by the St. Joseph County Auditor's Office)
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Assessed 2016 for Taxes Payable in 2017(As Provided by the St. Joseph County Auditor's Office)South Bend - South Bend - South Bend - South Bend - South Bend - South Bend - Centre Twp.Clay Twp.German Twp.Portage Twp.Penn Twp.Warren Twp.TotalGross Value of Land $116,494,800 $26,382,600 $74,498,800 $389,449,000 $16,598,800 $788,900 $624,212,900Gross Value of Improvements 479,182,300 121,064,600 426,207,800 2,549,596,800 90,602,400 26,465,600 3,693,119,500Total Gross Value of Real Estate 595,677,100 147,447,200 500,706,600 2,939,045,800 107,201,200 27,254,500 4,317,332,400Less: Mortgage Exemptions, Veterans, Blind Age 65 & Other Exemptions (235,691,261) (34,330,396) (100,875,591) (949,551,196) (31,747,228) (1,352,195,672)Tax Exempt Property (50,992,150) (8,680,106) (28,912,020) (364,752,352) (9,355,400) (462,692,028)TIF (55,202,224) (9,133,628) (261,653,100) (390,413,947) (27,254,500) (743,657,399)Net Assessed Value of Real Estate 253,791,465 95,303,070 109,265,889 1,234,328,305 66,098,572 0 1,758,787,301Business Personal Property 30,220,620 9,116,950 184,526,500 405,138,080 3,095,390 6,604,470 638,702,010Less: Deductions (4,052,152) (173,130) (19,522,443) (149,766,135) (1,511,410) (175,025,270)Net Assessed Value of Personal Property 26,168,468 8,943,820 165,004,057 255,371,945 1,583,980 6,604,470 463,676,740Net Assessed Value of Utility Property10,358,690 4,197,050 15,198,720 73,623,370 1,345,760 312,610 105,036,200Total Net Assessed Value $290,318,623 $108,443,940 $289,468,666 $1,563,323,620 $69,028,312 $6,917,080 $2,327,500,2417DETAIL OF NET ASSESSED VALUATIONCITY OF SOUTH BEND
TOTAL CERTIFIED TAX RATES
City of South Bend - Portage Township
Per $100 of Net Assessed Valuation
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.
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Year Taxes Payable
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
9
(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)
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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.
PROJECTED CITY OF SOUTH BEND COIT REVENUES
Projected Projected Projected
Year of County COIT COIT
Collection Distribution Ratio (1)Revenues
2017 $31,321,416 32.78% $10,267,284
2018 31,321,416 32.78% 10,267,284
2019 31,321,416 32.78% 10,267,284
2020 31,321,416 32.78% 10,267,284
2021 31,321,416 32.78% 10,267,284
2022 31,321,416 32.78% 10,267,284
(1) Actual Certified Shares
Note: See footnotes (c) and (d) at the end of this report.
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(0.4996% COIT Tax Rate)
CITY OF SOUTH BEND
First Mortgage
County Option Revenue
Income Tax South Bend Refunding
Lease Rental Redevelopment Bonds,
Estimated Revenue District Series 2012
Year of City COIT Refunding Taxable Revenue Lease Rental Estimated Estimated
Collection Revenues (1)Bonds of 2010 Bonds, Series 2010 Payments Excess Funds Coverage
2017 $10,267,284 $675,000 $720,905 $1,570,000 $7,301,379 3.46
2018 10,267,284 675,000 706,650 1,564,000 7,321,634 3.49
2019 10,267,284 673,000 1,562,000 8,032,284 4.59
2020 10,267,284 678,000 1,567,000 8,022,284 4.57
2021 10,267,284 1,567,000 8,700,284 6.55
2022 10,267,284 1,563,000 8,704,284 6.57
Totals $61,603,704 $2,701,000 $1,427,555 $9,393,000 $48,082,149
(1) COIT Revenues based on 2017 certified distribution and held constant throughout the life of the 2012 Bonds.
Note: See footnotes (c) and (d) at the end of this report.
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STATEMENT OF ESTIAMTED COIT CASH FLOW AND DEBT SERVICE COVERAGE
CITY OF SOUTH BEND
CITY OF SOUTH BEND
STATEMENT OF RECEIPTS AND DISBURSEMENTS
(Unaudited)
Beginning Ending
Balance Balance
1/1/2016 Receipts Disbursements 12/31/2016
General Fund $30,399,044 $56,446,383 $52,482,276 $34,363,151
Rainy Day Fund 8,678,882 1,487,609 10,166,491
Excess Levy 3,660 13 3,673 0
Parks & Recreation 3,913,925 11,355,394 10,778,878 4,490,441
Motor Vehicle Highway 5,210,952 9,582,759 8,671,204 6,122,507
Recreation - Nonreverting 821,640 942,047 954,996 808,692
Studebaker/Oliver Revitaliz Grants 1,105,516 283,085 535,017 853,584
Dept. Community Investment State Grants 160,350 1,895,275 1,705,246 350,379
Dept. of Community Investment Operating 1,120,584 2,623,192 2,383,619 1,360,157
Dept. of Community Investment Grants 552,313 3,143,687 3,454,687 241,313
Police State Seizures 199,434 33,900 16,110 217,224
Gift Donation Bequest 64,775 148,794 97,000 116,569
Police Curfew Violations 12,219 322 12,541
Unsafe Building Fund 0 1,142,474 770,740 371,735
Law Enforcement Continuing Education 909,540 298,482 371,885 836,137
Landlord Registration 0 1,225 1,225
Central Services 1,329,793 7,478,312 7,388,697 1,419,407
Central Services Capital 186,635 131,519 206,190 111,965
Liability Insurance 4,519,282 2,275,663 2,195,740 4,599,205
Loss Recovery 991,738 8,759 31,636 968,861
Emergency Telephone System 33,671 33,671
Public Safety LOIT 640,958 6,797,474 6,499,635 938,797
Local Road & Street 2,723,225 1,641,327 1,539,488 2,825,065
Excess Welfare Distribution 8 8
LOIT 2016 Special Distribution 0 4,347,943 322,876 4,025,066
Human Rights Grant 424,866 240,183 185,689 479,360
Eastrace Waterway 1,333 12 1,345
Morris PAC/Palais Royale Marketing 30,306 20,911 4,212 47,005
Take Home Police Vehicle 640,497 118,119 7,086 751,530
311 Call Center 0 487,897 487,897 0
Police Block Grants 3,844 34 3,879
Economic Development Revenue Bonds 27,320 244 27,564
Hazmat Fund 32,014 3,675 8,962 26,727
Indiana River Rescue 95,300 111,818 65,346 141,771
Police Grants 121,196 44,568 76,628
Regional Police Academy 70,112 22,366 16,536 75,941
Cops More Grant 121,372 308,993 193,358 237,007
Police Federal Drug Enforcement 252,752 26,720 53,413 226,058
Hall Of Fame Capital 11,396 1,548,831 1,271,000 289,227
Airport Debt Service Reserve 1,035,975 9,225 8,312 1,036,888
Subtotals $66,446,424 $114,964,665 $102,755,969 $78,655,121
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The following schedule contains limited and unaudited financial information which is presented solely for the purpose of conveying a
statement of cash and investment balances for the City of South Bend. Consequently, this schedule does not include all disclosures
required by generally accepted accounting principles. Current reports are available at https://gateway.ifionline.org/report_builder/
(Continued on next page)
CITY OF SOUTH BEND
(Cont'd)
STATEMENT OF RECEIPTS AND DISBURSEMENTS
(Unaudited)
Beginning Ending
Balance Balance
1/1/2016 Receipts Disbursements 12/31/2016
Subtotals carried forward $66,446,424 $114,964,665 $102,755,969 $78,655,121
Coveleski Bond Debt Service Reserve 507,047 4,520 511,567
TIF-River West Development Area 32,678,602 19,964,899 20,190,461 32,453,040
SBCDA 2003 Debt Reserve 1,730,946 15,414 13,888 1,732,472
Professional Sports Development 426,724 807,908 838,051 396,580
Coveleski Stadium Capital 82,428 41,422 33,475 90,376
Zoo Endowment 49,370 440 49,811
County Option Income Tax 12,066,548 10,472,570 13,603,511 8,935,608
Park Nonreverting Capital 469,009 8,683 167,529 310,163
Cumulative Capital Development 571,090 534,943 526,737 579,295
Cumulative Capital Improvement 310,758 435,073 368,250 377,581
Economic Development Income Tax 9,859,022 10,190,554 8,914,375 11,135,200
Urban Development Action Grant 629,441 200,168 238,173 591,437
Major Moves 2,153,707 1,376,030 1,169,799 2,359,939
Morris Performing Arts Capital 515,940 106,387 33,530 588,797
TIF District - West Washington 1,504,532 467,166 14,082 1,957,615
TIF District - Leighton Plaza 208,565 135,426 157,473 186,518
TIF-River East Development Area 7,549,627 2,485,527 2,173,333 7,861,822
TIF District - Southside Development 6,086,105 2,452,568 3,924,900 4,613,772
TIF District - Erskine Village 5,294,328 44,908 489,503 4,849,734
Redevelopment Administration General 8,689 78 329 8,438
CRED Fund 2,404 635 3,039 0
TIF District - Douglas Road 151,435 346,312 341,288 156,458
TIF-River East Residential 1,617,553 4,143,870 3,369,278 2,392,145
Certified Technology Park 2,269,848 19,712 142,913 2,146,647
Palais Royale Historic Preservation 76,297 16,450 92,747
Airport Urban Enterprise Zone 379,043 3,379 382,423
Project Releaf 920,836 447,931 497,194 871,573
Hall Of Fame Depreciation 502,111 53,211 60,752 494,570
1937 Firefighter's Pension 471,586 4,875,832 5,180,140 167,278
1925 Police Pension 1,155,658 6,013,297 6,377,793 791,162
Police K-9 Unit 3,863 34 1,044 2,853
Payroll Fund 0 101,226,646 101,226,646 0
Self-Funded Health Insurance 4,362,460 18,187,045 15,830,459 6,719,046
Unemployment Compensation 268,873 91,613 74,436 286,049
State Tax Deduction 412,690 3,407,857 3,399,662 420,885
Morris / Palais Box Office 1,504,458 3,305,191 3,116,874 1,692,774
Police Distributions Payable 835,108 23,924 41,916 817,116
City Cemetery Trust 28,498 254 28,752
EMS Capital 2,568,327 2,494,417 1,433,210 3,629,534
EMS Operating 2,210,747 6,235,846 6,691,045 1,755,548
Parking Garages 639,642 999,875 670,990 968,528
Solid Waste Operations 318,912 5,523,801 5,649,709 193,005
Solid Waste Capital 442 1,225,559 890,145 335,856
Sewer Repair Insurance 1,647,834 640,812 535,716 1,752,931
Subtotals $171,497,527 $323,992,854 $311,147,614 $184,342,767
14
(Continued on next page)
CITY OF SOUTH BEND
(Cont'd)
STATEMENT OF RECEIPTS AND DISBURSEMENTS
(Unaudited)
Beginning Ending
Balance Balance
1/1/2016 Receipts Disbursements 12/31/2016
Subtotals carried forward $171,497,527 $323,992,854 $311,147,614 $184,342,767
Sewage Works Operations 8,996,120 38,147,195 33,853,444 13,289,872
Sewage Works Capital 8,723,058 2,558,758 4,077,475 7,204,341
Sewage Works Reserve O&M 3,668,277 994,910 35,808 4,627,379
Sewage Works Bond Sinking 804,674 9,197,427 9,187,871 814,230
Sewage Works Ds Reserve 4,105,624 6,009 4,111,633
2011 Sewer Bond 231,542 2,214 182,169 51,587
2012 Sewer Bond 13,888,878 96,136 11,103,726 2,881,288
2013A Sewer Refunding Bonds 4,499 39 4,538 0
2015 Sewer Bond Issuance 58,067 114 58,182 0
Water Works Operations 3,889,248 15,369,520 15,457,295 3,801,473
Water Works Capital 2,876,026 25,273 318,327 2,582,972
Water Works Customer Deposit 1,509,816 43,835 12,228 1,541,423
Water Works Sinking 4,398 2,053,269 2,007,598 50,069
Water Works Bond Reserve 1,637,116 344,777 556,979 1,424,915
Water Works Reserve O&M 2,228,964 248,447 19,461 2,457,950
Century Center 1,096,892 4,506,665 4,223,406 1,380,151
Century Center Capital 1,002,072 932 137,018 865,986
Cent Ctr Energy Conservation Bond 50,032 243,362 236,243 57,152
Consolidated Building Fund 1,891,132 3,948,556 3,225,899 2,613,789
Totals $228,163,964 $401,780,293 $395,845,279 $234,098,978
15
The required City of South Bend's Balance Sheets and Statements of Income are
provided in the City's Comprehensive Annual Financial Report for the fiscal year
ending on December 31, 2016. This report is filed with the Municipal Securities
Rulemaking Board through its Electronic Municipal Market Access System.
16
(a) "Net Assessed Value" or "Taxable Value" represents the "Gross Assessed Value" less certain deductions for mortgages,
veterans, the aged, the blind, economic revitalization areas, resource recovery systems, rehabilitated residential property,
solar energy systems, wind power devices, hydroelectric systems, geothermal devices and tax-exempt property. The "Net
Assessed Value" or "Taxable Value" is the assessed value used to determine tax rates.
Pursuant to State law, personal property is assessed at its actual historical cost less depreciation, in accordance with 50 IAC
4.2, the DLGF's Rules for the Assessment of Tangible Personal Property. Effective January 1, 2016, state law annually
exempts from property taxation new tangible business personal property with an acquisition cost of less than $20,000.
Pursuant to State law, real property is valued for assessment purposes at its "true tax value" as defined in the Real Property
Assessment Rule, 50 IAC 2.4, the 2011 Real Property Assessment Manual ("Manual"), as incorporated into 50 IAC 2.4 and
the 2011 Real Property Assessment Guidelines, Version A ("Guidelines"), as adopted by the DLGF. P.L. 204-2016, SEC.
3, enacted in 2016, retroactive to January 1, 2016, amends State law to provide that "true tax value" for real property does
not mean the value of the property to the user and that true tax value shall be determined under the rules of the DLGF. As a
result of P.L. 204-2016, the DLGF has begun the process of amending the Manual. In the case of agricultural land, true tax
value shall be the value determined in accordance with the Guidelines and IC 6-1.1-4, as amended by P.L. 180-2016.
P.L. 180-2016 revises the factors used to calculate the assessed value of agricultural land. This legislation is retroactive to
the January 1, 2016 assessment date and applies to each assessment date thereafter. The revised factors enacted in the
legislation may reduce the total assessed value of agricultural land, which could shift property tax liability from agricultural
property owners to other property owners. In addition, the reduction in the assessed value of agricultural land may result in
a reduction of the total assessed value. Lower assessed values may result in higher tax rates in order for a unit to receive its
approved property tax levy.
Except for agricultural land, the Manual permits assessing officials in each county to choose any acceptable mass appraisal
method to determine true tax value, taking into consideration the ease of administration and the uniformity of the
assessments produced by that method. The Guidelines were adopted to provide assessing officials with an acceptable
appraisal method, although the Manual makes it clear that assessing officials are free to select from any number of
appraisal methods, provided that they produce "accurate and uniform values throughout the jurisdiction and across all
classes of property". The Manual specifies the standards for accuracy and validation that the DLGF uses to determine the
acceptability of any alternative appraisal method.
(b) Indiana Code 6-1.1-20.6 provides taxpayers with a tax credit for all property taxes in an amount that exceeds the gross
assessed value of real and personal property eligible for the credit (“Circuit Breaker Tax Credit”).
Property taxes for residential homesteads are limited to 1% of the gross assessed value of the homestead; property taxes for
agricultural, other residential property and long term care facilities are limited to 2% of their gross assessed value; and
property taxes for all other real and personal property are limited to 3% of gross assessed value. Additional property tax
limits have been made available to certain senior citizens.
Since July 1, 2012, property tax revenue subject to reduction by the Circuit Breaker Tax Credit under Indiana Code 6-1.1-
20.6-9.8 is classified as either "protected taxes" or "unprotected taxes." "Protected Taxes" include taxes levied to pay debt
service or lease rental on obligations payable from ad valorem property taxes. A debt service fund containing Protected
Taxes is funded first by the taxing unit before property taxes are deposited into any other funds.
The Constitutional Provision excludes from the application of the Circuit Breaker Tax Credit property taxes first due and
payable in 2012, and thereafter, that are imposed after being approved by the voters in a referendum. The Statute codifies
this exception, providing that, with respect to property taxes first due and payable in 2012 and thereafter, property taxes
imposed after being approved by the voters in a referendum will not be considered for purposes of calculating the limits to
property tax liability under the provisions of the Statute.
In accordance with the Constitutional Provision, the General Assembly has, in the Statute, designated Lake County and St.
Joseph County as "eligible counties" and has provided that property taxes imposed in these eligible counties to pay debt
service and make lease rental payments for bonds or leases issued or entered into before July 1, 2008 or on bonds issued or
leases entered into after June 30, 2008 to refund those bonds or leases, will not be considered for purposes of calculating
the limits to property tax liability under the provisions of the Statute, through and including December 31, 2019.
(c) In 2015, the Indiana General Assembly (“General Assembly”) enacted P.L. 243-2015, as amended by P.L. 197-2016, to
consolidate the various local income tax laws, including the County Adjusted Gross Income Tax (“CAGIT”), County
Option Income Tax (“COIT”) and Economic Development Income Tax (“EDIT”) into a uniform law and to transition each
county from the “former county income taxes,” to a single local income tax (“LIT”) under Indiana Code § 6-3.6 (the “LIT
Statute”). Effective January 1, 2017, the LIT Statute repealed statutes which authorized the former county income taxes.
However, except to the extent that tax rates associated with the former county income taxes are increased, decreased, or
rescinded, the total tax rate imposed by a county under the former county income taxes then in effect continues after May 1,
2016 and is treated as if the former taxes were imposed under the LIT Statute.
CITY OF SOUTH BEND
FOOTNOTES
17
(Continued on next page)
(Cont'd)
The LIT Statute states that the pledge of a unit's distributive share of revenues ("LIT Revenues") generated as one of the
former county income taxes to the payment of debt service on bonds shall be treated as a pledge of the related tax
authorized under the LIT Statute and is binding and enforceable and remains in full force and effect as long as the debt
service on any bonds remains unpaid. Those rights, duties, obligations, proceedings, or liabilities continue and will be
imposed and enforced as if the LIT Statute had not been enacted and the statutes authorizing the former county income
taxes had not been repealed.
If there are bonds or leases outstanding that are payable from a former county income taxes, the adopting body may not
reduce the tax below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual
outstanding debt service plus the highest annual lease rental payments plus any amount required to be deposited in a sinking
fund or reserve ("Coverage Requirement") unless the adopting body, or a city, town or county pledges all or a part of its
share of certain available LIT Revenues for the life of the bonds or the term of the lease, in an amount that is sufficient that
when combined with the amount pledged by the city, town or county that issued the bonds, to produce the Coverage
Requirement.
All income tax revenues imposed under the former county income taxes have been categorized by the DLGF into the
appropriate rate or rates to provide revenue for all the same purposes for which revenue under a former county income tax
was used in 2016. The LIT Statute combines the previous income taxes into a single income tax with three components
which are a (a) special purpose rate (rate established by special legislation to fund special projects); (b) property tax relief
rate (max rate 1.25%); and (c) expenditure rate (max rate 2.50% except Marion Co. - 2.75%)("Expenditure Rate").
Distributions under the Expenditure Rate must be categorized and are allocated into one or a combination of (a) certified
shares (which may be used for any purposes of the civil taxing unit)("Certified Shares"); (b) public safety; and (c) economic
development (may be used for same purposes as EDIT).
The LIT Statute provides that the adopting body must, before July 1 of each year, allocate revenues from the Expenditure
Rate to either: (i) public safety purposes; (ii) economic developmentpurposes; or (iii) certified shares, and provides that the
allocation must be based on percentages among the civil taxing units in the county. The ordinance first applies in the
following year adoption and then thereafter until it is rescinded or modified. For a county in which COIT was imposed, the
adopting body is the local income tax council, which is structured in the same way as the COIT Council under the statute
authorizing this former county income tax. LIT Revenues are received monthly from the county auditor.
LIT Revenues, which are for economic development and have been generated by the former county income tax known as
EDIT, have been categorized as economic development revenue of the expenditure rate. LIT Revenues for economic
development are also received monthly from the county auditor.
The adopting body may not reduce the proportional allocation among these uses if the reduction would allocate less to the
payment of bonds or leases for which the Expenditure Rate has been pledged in accordance with law than the amount
pledged and payable in that year or required under the agreements for the bonds or leases to be deposited in a sinking fund
or other reserve in that year. If no portion of the Expenditure Rate is actually pledged to bonds or leases, the adopting body
is not restricted in the allocation of additional revenue among the three purposes for the Expenditure Rate from year to year.
Special legislation passed by the General Assembly for a specific county to enable the county to levy an income tax for a
specific purpose at a specified special rate is also consolidated under the LIT Statute. The LIT Statute allows for a county
to continue to levy the tax at the same rate to be used for the same purpose as under the applicable statute authorizing this
former income tax.
LIT Revenues are collected by the Indiana Department of State Revenue ("DOR"). Annually before August 2, the State of
Indiana Budget Agency ("Budget Agency") provides the DLGF and the county auditor with an estimate of the LIT
Revenues which are based on the actual income tax returns filed and processed from July 1 of the prior year through June
30 of the current year, adjusted for any refunds. Not later than fifteen days after receiving an estimate of the certified
distribution, the DLGF shall determine for each taxing unit and notify the county auditor of the estimated amount of
property tax credits, school distributions, public safety revenue, economic development revenue, certified shares, and
special purpose revenue that will be distributed to the taxing unit, and the county auditor has thirty days after receiving the
DLGF's estimate to notify each taxing unit of its estimated amount. Before of October 1 of each year, the Budget Agency
shall certify to the county auditor and the DLGF the amount of the county's certified distribution. Not later than 15 days
from receipt of the Budget Agency's certified distribution for the DLGF shall notify the county auditor of the certified
amount of property tax credits, school distributions, public safety revenue, economic development revenue, certified shares
and special purpose revenue that will be distributed to each taxing unit which receives LIT Revenues.
CITY OF SOUTH BEND
FOOTNOTES
(Continued on next page)
18
(Cont'd)
(d) In April 2012, the Budget Agency announced that the State had uncovered approximately $206 million in underpayments to
local units of government based upon new information from DOR regarding local option income tax collections for 2009
and 2010. The new information provided to the State Budget Agency materially affected the certified distributions for 2011
and 2012 and the State Budget Agency recertified the distributions for those years. The Indiana General Assembly enacted
legislation requiring distributions to be reduced to replenish the shortfall. The State Budget Agency indicated that, effective
with certified income tax distributions for 2012, the income tax distributions would generally be frozen at the 2011 certified
amounts for the coming years as long as the county's income tax trust balance ("County Trust Balance") was negative. In
2016, the General Assembly enacted legislation providing for a supplemental distribution of local income taxes when the
balance in a county's local income tax trust account exceeds 15% (rather than 50%, under prior law) of the certified
distributions to be made to the county.
The County Trust Balance represents the income taxes held by the State, which are to be distributed to all applicable units
(cities, towns, townships, libraries and county units) in the County. The Trust Balance History Report published by the
State Budget Agency in September 2016 indicates that the actual COIT balance for all taxing units in St. Joseph County at
the end of 2014 was $11,833,819. The estimated balance for 2015 (as of September 2016) is $17,236,438.
19
CITY OF SOUTH BEND
FOOTNOTES