HomeMy WebLinkAbout5C1 Annual Report to RDC1200N COUNTY-CITY BUILDING PHONE 574.235.9216
227 W. JEFFERSON BLVD. FAX 574.235.9928
SOUTH BEND, INDIANA 46601-1830
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CITY OF SOUTH BEND JAMES MUELLER, MAYOR
DEPARTMENT OF ADMINISTRATION AND FINANCE
April 3, 2020
Dear Commissioners,
In accordance with Indiana Code § 36-7-14-8(b), in my capacity as the Treasurer of the South Bend
Redevelopment Commission, I am providing you with this annual report on the Commission’s finances.
Financial Reports
The attached report contains a summary of the financial position and operations of the Commission-
controlled funds for 2019, as well as a link to the City’s document library, which contains monthly
financial reports for all City funds, including those controlled by the Commission.
Discussion & Analysis of Financial Position
The use of tax increment financing to fund major capital and economic development projects continues to
be a foundation for the realization of the City’s strategic priorities.
TIF property tax revenue of $28,228,570 in 2019 was 6.3% higher than the 2019 original budget, which
has put the Commission in a strong financial position going into FY2020. However, 2020 promises to
be a much more challenging year from a revenue perspective as the full impact of the circuit breaker
property tax credits comes into effect. Indeed, the City is projecting a year-over-year reduction in TIF
revenue of 4.7% in 2020. Additionally, as the full impacts of the economic slowdown resulting from the
COVID-19 pandemic continue to be felt, TIF property tax revenue could continue to decrease in future
years. This revenue decrease, if realized, has the potential to harm the City’s ability to accomplish strategic
priorities, especially those involving large-scale capital projects. The City will continue to monitor
these financial projections.
Financial Processes Update
I would also like to take this opportunity to preview a conversation that my department will be having with
the Commission in the upcoming months. On May 1, 2020, the City will be launching a new Enterprise
Resource Planning system called Microsoft Dynamics 365 for Finance and Operations (which the City is
calling “DFO”). The implementation of DFO to manage the City’s financials will have many benefits and
opportunities to gain efficiencies, most relevantly in the areas of reporting, project tracking, claims
approval, and budgeting. Shortly after the implementation of the system, we will plan to discuss these
benefits and changes with the Commission and look forward to hearing your feedback.
Please do not hesitate to reach out if you have any questions or concerns on any of this information.
With gratitude,
Dan Parker
City Controller
South Bend Redevelopment Commission
Financial Summary 2019
01/01/2019 12/31/2019 Outstanding Available
Redevelopment Commission Controlled Funds Cash Balance Receipts Disbursements Cash Balance Encumbrances Cash Balance
Tax Increment Financing Funds
324 TIF RIVER WEST 31,738,300 19,805,973 20,664,295 30,879,977 7,834,836 23,045,142
422 TIF DISTRICT - WEST WASHINGTON 1,801,466 317,073 1,089,137 1,029,402 342,165 687,238
429 TIF RIVER EAST DEV (NE)10,994,678 2,943,424 5,741,954 8,196,149 4,543,278 3,652,871
430 TIF SOUTHSIDE DEVELOPMENT AREA #1 9,455,102 1,963,177 1,833,015 9,585,265 234,951 9,350,314
435 TIF DOUGLAS ROAD 204,331 4,609 21,575 187,366 87,225 100,141
436 TIF RIVER EAST RES (NE RE) 2,990,020 4,972,014 4,263,831 3,698,203 - 3,698,203
Total Tax Increment Financing Funds 57,183,898 30,006,271 33,613,806 53,576,363 13,042,454 40,533,909
Redevelopment Funds
425 REDEVELOPMENT RETAIL AREA 8,388 204 8,592 0 - 0
433 REDEVELOPMENT ADMINISTRATION GENERAL 615,795 1,279,856 422,200 1,473,451 389,636 1,083,815
439 CERTIFIED TECHNOLOGY PARK 624,204 10,929 624,194 10,939 752 10,187
452 2018 TIF PARK BOND CAPITAL 10,429,340 183,188 6,536,438 4,076,090 3,889,707 186,383
454 AIRPORT URBAN ENTERPRISE ZONE 393,651 9,152 - 402,803 - 402,803
Total Redevelopment Funds 12,062,990 1,483,125 7,582,832 5,963,283 4,280,095 1,683,188
Debt Service Funds
315 AIRPORT 2003 DEBT RESERVE 1,040,462 23,962 23,962 1,040,462 - 1,040,462
317 COVELESKI BOND DEBT RESERVE 526,587 930 527,517 - - -
328 SBCDA 2003 DEBT RESERVE 1,739,495 40,061 40,061 1,739,495 - 1,739,495
351 2018 TIF PARK BOND DEBT SERVICE RESERVE 993,495 23,099 - 1,016,594 - 1,016,594
756 SMARTS STREETS DEBT SERVICE 1,726,790 1,720,129 1,712,019 1,734,901 - 1,734,901
Total Debt Service Funds 6,026,829 1,808,181 2,303,558 5,531,452 - 5,531,452
Total Redevelopment Commission Funds 75,273,717 33,297,577 43,500,196 65,071,098 17,322,549 47,748,549
For more detailed information, please see individual monthly fund reports, which can be found online at the following website: http://docs.southbendin.gov/WebLink/Browse.aspx?startid=1214