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Home My WebLink About2011 Board of Finance Annual Investment ReportW PEACE a zzc;� � .A 1865 x City of South Bend Board of Finance Annual Investment Report For the year ended December 31, 2011 Report Date: January 18, 2012 Report Distribution: Mayor Chief of Staff Deputy Chief of Staff City Clerk South Bend Common Council Members Common Council Attorney City Attorney State Board of Accounts (local office) Submitted By: City Controller 1 City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2011 Investment Report Executive Summary Report of 2011 Investments Report of 2011 Interest Earnings Investment Summary detail I" Source Investments detail Report of Outstanding Loans City Recommendation Other Business Payroll Stale Dated Checks Disbursement Stale Dated Checks Investment Policy City of South Bend Policy Stale Dated Check Policy City of South Bend Policy Cash Reserve Policy City of South Bend Cash Reserve Policy Appendix 1 2 3 4 Table of Contents Page Action Requested 3 B of F review and acceptance of report 4 B of F review and acceptance of report 5 B of F review and acceptance of report 6 B of F review and acceptance of report 7 B of F review and acceptance of report 8 B of F review and acceptance of report 9 B of F approval of Controller recommendation 10 B of F approval of Controller recommendation 11 B of F approval of Controller recommendation 14 B of F approval of recommended 2012 policy 15 B of F approval of recommended 2012 policy 16 B of F approval of recommended 2012 policy Appendix 1 Investment Policy Appendix 2 Stale Dated Check Policy Appendix 3 Interest Earnings History Appendix 4 Cash Reserve Policy & Procedure K City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2011 Executive Summary On January 24, 2011, the Board of Finance of the City of South Bend, convened the annual meeting, elected Council Member Mr. Thomas LaFountain as President of the Board of Finance and Council Member Ms. Ann Puzzello as Board Secretary. At this meeting, the Board of Finance approved the 2011 City of South Bend Investment Policy and the 2011 City of South Bend Stale Dated Check Policy, At this meeting, the Board of Finance, reviewed, discussed and accepted the Annual Investment Report of the City of South Bend. The City of South Bend has in fiscal 2011 operated in compliance with the investment policy approved by the Board of Finance and with the stale dated check policy approved by the Board of Finance. The City of South Bend, during fiscal 2011, has operated with 151 Source Bank; a South Bend State of Indiana domiciled Commercial Bank. as its primary banking partner for depository and disbursement account activity. The City of South Bend, during fiscal 2011, has invested certain funds with other commercial banks in accordance with the investment provisions defined in the City of South Bend Investment Policy. On March 25, 2011, the City of South Bend entered into a pricing agreement with 151 Source Bank, with effective dates from April 1, 2011 thru March 31, 2013, whereby, 151 Source Bank will pay interest on a monthly basis on the higher of the two following interest rates: the average daily one month London Interbank Offered Rate (LIBOR01 M) as reported by Bloomberg Finance L.P. or the average daily Federal Funds Effective Rate as published in the Federal Reserve H.15 report plus 20 basis points (.20 %), on the average daily collected balance. Interest income earned by the city in fiscal 2011, (does not include accrued interest or changes in market value of assets) with comparison to prior periods is as follows: For 2012, interest earned on investments will likely increase as the new 15t Source investment account will be in operation for a full year. 3 Interest Earnings $ Change vs. prior year Effective Rate 2011 Interest Income 628,889 -22% 0.37% 2010 Interest Income 802,734 -40% 0.72% 2009 Interest Income 1,348,127 -79% 0.90% 2008 Interest Income 6,281,325 -10% 3.64% 2007 Interest Income 7,010,895 +36% 5.50% For 2012, interest earned on investments will likely increase as the new 15t Source investment account will be in operation for a full year. 3 City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2011 Report of 2011 Investments Cert of Deposit Cert of Deposit Cert of Deposit Cert of Deposit 1 S' Source Investment Acct Total Comment(s) Investment Maturity Funds Interest Financial Date Date Invested Rate Institution 10/28/2010 01/28/2011 174,125 0.20% Old National 12/23/2010 03/23/2011 4,514,267 0.44% Lake City 03/25/2011 03/24/2012 5,700,000 0.52% Fifth Third 08/12/2011 12/10/2011 900,000 0.30% Lake City 05/11/2011 N/A 150,000,000 Varies 1" Source 161.288,392 All investment instruments entered into during fiscal 2011 were /are in full compliance with the Board of Finance Investment Policy in effect during the time period. M City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2091 Report of 2011 Interest Earnings (Net of Investment fees) Instrument Depository Accounts Investment Instruments Other Instruments Total Interest Earned Comment(s) Interest $ Earned 268,720 343,506 16,663 628,889 Cash earned on depository accounts Cash earned on investments Econ Development loan interest earned Depository Accounts are the interest earned on cash balances held in the city depository accounts. Investment Instrument is the interest earned on Certificate of Deposit instruments maturing during the fiscal period and the 15' Source Investment account instrument which started in May of 2011. Other Instruments is the interest earned from economic development loans outstanding in the period. 5 n City of South Bend. Indiana 2011 Investment Summary Register Detail October 1, 2010 through December 31, 2011 Investment Maturity No. of Interest Fiscal Interest Days Per Fund Fund Financial Institution Date Date Days Rate Officer Principal Income Year Name Number Century Center Old National Bank 10/28110 1/28111 90 02000% Church 174,125 00 85.87 365 Century Center 670 Quotes No quotes solicited. Must be kept at Old National Bank as collateral for bank loan to Century Center until loan is paid off. This CD in the amount of $174,125.00 is a consolidated renewal of a $99.000 00 CD that matured 10/13/10 and a $75.125 00 CD that malurerd 10/14/10 After this renewal was made. Ilia City planned to amend 2010 Century Center budget and pay off the loan principle balance and pay off loan by 12/31/10 Sewacie Works Debt Service Reserve Lake City Bank 12123110 3123111 91 0 4400% Kurzhal 4,514,266 81 4.95209 365 Sewage Works Debt Service Reserve 653 Quotes Lake City Bank 12/23/10 3123111 91 0 4400 % Kurzhal 4,514,266.81 4,952.09 365 1sl Source Bank 12/23/10 3123111 91 02000% Kurzhal 4,514.266.81 2,250.95 365 Key Bank 12123/10 3123/11 91 02000% Kurzhal 4.514,266 81 2.25095 365 Horizon Bank 12123/10 3123111 91 01500% Kurzhal 4,514,266 81 1,68821 365 JP Morgan Chase 12/23/10 3123111 91 01000% Kurzhal 4,514,266 81 1.125.47 365 Fifth Third Bank 12/23110 3123111 91 No Reply Kurzhal 4.514.266 81 000 365 Old National Bank 12/23110 3123111 91 No Quote Kurzhal 4,514.26681 000 365 Teachers Credit Union 12/23/10 3123111 91 No Reply Kurzhal 4,514,266.81 0.00 365 Wells Fargo 12/23/10 3123111 91 No Reply Kurzhal 4.514,266.81 000 365 Sewage Works Debt Service Reserve Requirement CO investment at Lake City Bank Copy of CD provided to Bank of New York Mellon to include in their trustee statement Sewage Works Debt Service Reserve Fifth Third Bank 3125111 3124112 365 05200% Kurzhal 5.700.000 00 29.640 00 365 Sewage Works Debt Service Reserve 653 Quotes Fifth Third Bank 3/25/11 3/24/12 365 0.5200^/ Kurzhal 5,700.000 00 29,640.00 365 Lake City Bank 3/25111 3/24/12 365 05000% Kurzhal 5,700,000 00 28,500.00 365 JP Morgan Chase 3125111 3124112 365 0 1900 % Kurzhal 5.700,000 00 10.830.00 365 Wells Fargo 3125/11 3124112 365 0.0500% Kurzhal 5,700.000 00 2.850.00 365 1st Source Bank 3125/11 3124112 365 No Reply Kurzhal 5,700,000 00 000 365 Key Bank 3125111 3/24112 365 No Reply Kurzhal 5,700,000 -00 000 365 Horizon Bank 3125111 3124112 365 Pass Kurzhal 5,700.000 00 000 365 Old National Bank 3/25/11 3/24/12 365 Pass Kurzhal 5,700.000.00 000 365 Teachers Credit Union 3/25111 3124/12 365 No Reply Kurzhal 5,700.000 00 0.00 365 Sewage Works Debt Service Reserve Requirement CD investment al Fifth Third Bank Copy of CD provided to Bank of New York Mellon to include in (heir trustee statement Century Center Lake City Bank 8/12/11 12/10111 120 0 3000 % Church 900,000 00 88767 365 Century Center 670 Quotes Lake City Bank 8112/11 12/10/11 120 030001% Church 900.000.00 88767 365 1st Source Bank 8112111 12/10/11 120 01000% Church 900,000.00 59178 365 Key Bank 8112/11 12110/11 120 02000% Church 900,000 00 59178 365 JP Morgan Chase 811701 12/10111 120 01000% Church 900,000 00 295.89 365 Teachers Credit Union 8112/11 12/10/11 120 01000% Church 900,000.00 29589 365 Wells Fargo 8112111 12/10/11 120 00500% Church 900,000 00 14795 365 Horizon Bank 8/12/11 12/10/11 120 Pass Church 900.000.00 000 365 Old National Bank 8112/11 12/10/11 120 No Reply Church 900,000 00 0 00 365 Fifth Third Bank 8/12/11 12/10/11 120 No Reply Church 900.000.00 000 365 Invest Century Center Capital funds 1st Source Bank 5/11/11 N/A Various Various Zienlara 150.000.000.00 Varies Varies Various City Funds Corporate Investment Agency Agreement - signed 4/4/2011 - a separate investment report is provided monthly by 1st Source Bank v TYPE FEDERAL FARM CREDIT BANK FEDERAL FARM CREDIT BANK FEDERAL HOME LOAN BANK FEDERAL HOME LOAN BANK FEDERAL HOME LOAN BANK FEDERAL HOME LOAN BANK FEDERAL HOME LOAN BANK FEDERAL HOME LOAN MORTGAGE CORP FEDERAL HOME LOAN MORTGAGE CORP FEDERAL HOME LOAN MORTGAGE CORP FEDERAL HOME LOAN MORTGAGE CORP FEDERAL HOME LOAN MORTGAGE CORP FEDERAL HOME LOAN MORTGAGE CORP FEDERAL NATIONAL MORTGAGE ASSN FEDERAL NATIONAL MORTGAGE ASSN FEDERAL NATIONAL MORTGAGE ASSN FEDERAL NATIONAL MORTGAGE ASSN FEDERAL NATIONAL MORTGAGE ASSN FEDERAL NATIONAL MORTGAGE ASSN FEDERAL NATIONAL MORTGAGE ASSN FEDERAL NATIONAL MORTGAGE ASSN FEDERAL NATIONAL MORTGAGE ASSN FEDERAL NATIONAL MORTGAGE ASSN FEDERATED TREASURY OBLIGATIONS SS ALLY BANK CD AMERICAN EXPRESS CENTURION CD AURORA BANK FSB BMW BANK NORTH AMERICA CIT BANK CD COMPASS BANK CD DISCOVER BANK CD FIFTH THIRD BANK CD 4002- 0668294635 FIFTH THIRD BANK CD #002- 0668301516 GE CAPITAL FINANCIAL INC CD GE MONEY BANK CD GOLDMAN SACHS BANK USA CD LAKE CITY BANK CD MERRICK BANK CD SAFRA NATIONAL BANK SALLIE MAE BANK MURRAY UTAH CD INTEREST .84% DUE 04/04/2013 .48% DUE 04/18/2013 .60% DUE 06/13/2013 .6% DUE 06/28/2013 .50% DUE 02/02/2013 .65% DUE 08/09/2013 .7% DUE 08/23/2013 .75% DUE 12/28/2012 .55% DUE 09/30/2013 .6% DUE 10 /25/2013 .6% DUE 08/22/2013 .50% DUE 08/23/2013 .50% DUE 09/06/2013 0.75% DUE 02/26/2013 .6% DUE 09/12/2013 .60 % DUE 09/27/2013 .50% DUE 09/26/2013 06% DUE 10/24/2013 .625% DUE 10/25/2013 .625% DUE 11/25/2013 .65% DUE 11/29/2013 .75% DUE 12/06/2013 .75% DUE 12/18/2013 FUND #398 1.00% DUE 06/10/2013 .75% DUE 03/22/2013 .55% DUE 05/31/2012 .85% DUE 06/28/2013 .7% DUE 12/10/2012 .75% DUE 07/29/2013 .95% DUE 06/17/2013 1.12% DUE 05/12/2013 1.20% DUE 05/17/2013 .90% DUE 09/16/2013 1.00% DUE 06/10/2013 .90% DUE 09/23/2013 .68% DUE 06/19/2012 .60% DUE 03/20/2013 .8% DUE 12/16/2013 1.00% DUE 11/25/2013 City of South Bend, Indiana 1st Source Investments December 31, 2011 OTHER CALL 04 /04/2012 CALL 10/18/2011 CALLABLE 06/13/2012 CALL 12/28/2011 CALLABLE ON 11/8/2011 CALL 02 /09/2012 CALL 11 /23/2011 CALL 03 /30/2012 CALL 01 /25/2012 CALL02/22/2012 CALL 11 /23/2011 CALL 03 /06/2012 CALL 03/12/2012 CALL 03/26/2012 CALL 04/24/2012 CALLABLE 10/25/2012 CALL 05 /25/2012 CALL 05/29/2012 CALL 06 /06/2012 INTEREST SEMI- ANNUALLY INTEREST MONTHLY INTEREST MONTHLY INTEREST SEMI - ANNUALLY INTEREST SEMI - ANNUALLY INTEREST ANNUALLY MARKET VALUE UNITS HELD MARKET PRICE ON 12/31/11 "' $2,605,000.00 5,000,000.00 10,000,000.00 2,000,000.00 5,000,000.00 10,000,000.00 13,055,000,00 4,750,000.00 10,000,000.00 5,000,000.00 900,000.00 1,600,000.00 2,962,000.00 10,000,000.00 10,000,000.00 4,500,000.00 1,000,000.00 5,000,000.00 900,000.00 10,000,000.00 3,000,000.00 1,200,000.00 6,000,000.00 5,206,905.26 249,000.00 245,000.00 240,000.00 249,000.00 249,000 -00 240,000.00 243,000.00 5,033,384.02 7,050,086.24 245,000.00 249,000.00 245,000.00 5,000,000.00 245,000.00 249,000.00 249,000.00 $100.14 100.00 100.10 100.05 99.99 100.03 100.04 100.51 99.92 100.01 100.04 99.83 99.88 100.59 100.03 100.00 99.86 100.01 100.10 100.02 99.93 99.99 100.43 1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $2,608,751.20 5,000,050.00 10,009,800.00 2,000,960.00 4,999,500.00 10,002, 700.00 13,060,222.00 4,774,320.00 9,991,800.00 5,000,700.00 900,324.00 1,597,328.00 2,958,475.22 10,058,700.00 10,002,500.00 4,S00,090.00 998,570.00 5,000,400.00 900,873.00 10,002,100.00 2,997,780.00 1,199,820.00 6,025,860.00 5,206,905.26 249,000.00 245,000.00 240,000.00 249,000.00 249,000.00 240,000.00 243,000.00 5,033,384.02 7,050,086.24 245,000.00 249,000.00 245,000.00 5,000,000.00 245,000.00 249,000.00 ?44 nno nn "OTAL 150,078,998.94 1) - Market value on 12/31/11 does not include accrued interest. The accrued interest amount of $213,049.72 for December totaled with $150,078,998.94 equals 150,292,048.66, which is equivalent to the balance listed on the Controller's cash report. COST BASIS $2,611,851.15 4,998,750.00 10,000,000.00 2,000,000.00 5,000,000.00 10,000,000.00 13,058,152.50 4,772,857.00 10,000,000.00 4,999,000.00 901,350.00 1,600,000.00 2,962,000.00 10,047,400.00 10,006,000.00 4,500,000.00 1,000,000.00 5,000,000.00 900,000.00 10,000,000.00 3,000,000.00 1,200,000.00 6,039,672.00 5,206,905.26 249,000.00 245,000.00 240,000.00 249,000.00 249,000.00 240,000.00 243,000.00 5,033,384.02 7,050,086.24 245,000.00 249,000.00 245,000.00 5,000,000.00 245,000.00 249,000.00 249,000.00 150,084,408.17 City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2011 Report of Outstanding Loans Debtor Instrument Principal $ Interest Rate Term Outstanding Bosch IDFA Term Loan 620,135 3.0% March, 2021 Bosch State Sponsored Term Loan 1,154,812 4.0% September, 2020 Various CDBG — HIP Loan(s) 468,167 various Various Various UDAG — Business Loan(s) 6,550 various Various Anchor Realty Term Loan 100,000 1.25% December, 2014 BDC Term Loan 2,358,852 0% January, 2016 Total 4,708,516 City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2011 City Recommendations For fiscal 2012, the city will maximize investment earnings, to the extent possible, given available funds for investment and interest rate potentials within the current state of economic conditions. The city will affect all investments within the context of conditions as established by the City of South Bend Investment policy as defined and approved for execution by the Board of Finance. The City of South Bend will continue to monitor the effectiveness of its investment agreement with 151 Source Bank. E City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2011 Other Business — Payroll Stale Dated Checks The current policy, as defined and approved by the Board of Finance, has defined that payroll checks drawn on city accounts will have a two (2) year active life from the date of issuance as noted on the check. Un- cashed checks, beyond the two (2) year active life period, are no longer valid and shall be classified as a stale dated check. Such checks, defined as stale dated, will be reported to the Board of Finance, with a recommendation from the City Controller on the disposition of the stale dated checks. Therefore, following represents the list of Stale Dated Payroll Checks as of December 31, 2011. Ck # Name Date $ Amount Fund # Fund Name Payroll 338756 Veal, R 01/09/2009 .71 600 Building 339014 Summers, R 01/23/2009 8.63 203 Parks 339419 Hall, B G 02/06/2009 125.85 203 Recreation 340471 Labonte, R 03/06/2009 137.83 101 General 340957 Henry, A 03/20/2009 31.36 203 Recreation 346258 Ballard, W 08/07/2009 44.07 201 Parks 346359 Paeplow, M 08/07/2009 126.50 201 Parks 346860 Musgrave, S 08/21/2009 202.94 203 Recreation 346862 Niedbalski, M 08/21/2009 29.97 203 Recreation 346864 Paeplow, M 08/21/2009 333.83 201 Parks 348243 Summers, R 09/18/2009 8.63 203 Recreation 351375 Horvath, D 12/11/2009 135.94 101 General 351445 Mroczkiewicz, A 12/11/2009 135.94 101 General 351624 Summers, R 12/11/2009 8.63 203 Recreation Total 1,330.83 City Recommendation The city recommends that such payroll checks, classified by city policy as stale dated, to be approved by the Board of Finance for cancellation. Said checks, shall be voided within the city's payroll system and removed as a payroll liability of the City of South Bend. Indiana Statute, allowing cancellation and voidance of un- cashed payroll checks defined as stale dated, will remain subject to claim by the payee for a period of seven (7) years from date of issuance. The city will maintain record of these potential liabilities, in the event a claim is made by any payee. 10 City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2011 Other Business — Disbursement Stale Dated Checks The current policy, as defined and approved by the Board of Finance, has defined that disbursement checks drawn on city accounts will have a two (2) year active life from the date of issuance as noted on the check. Un- cashed checks, beyond the two (2) year active life period, are no longer valid and shall be classified as a stale dated check. Such checks, defined as stale dated, will be reported to the Board of Finance, with a recommendation from the City Controller on the disposition of the stale dated checks. Therefore, following represents the list of stale dated disbursement checks as of December 31, 2011. Name Date $ Amount Fund # Fund Name Hartford 05/03/2007 557.62 709 Payroll Liability Glassman, D 06/07/2007 20.00 620 Water ops Meek, J 06/07/2007 6.66 620 Water ops Hancz, T 06/07/2007 12.94 620 Water ops Fisette, S 06/07/2007 12.00 620 Water ops Faulkner, G 06107/2007 14.16 620 Water ops DMK Signature 06/07/2007 3.99 620 Water ops Wright, K 06/07/2007 40.00 620 Water ops Walker, T 06/07/2007 1.25 620 Water ops Christiansen, H 07/05/2007 110.13 620 Water ops Jones, B 07/05/2007 55.47 620 Water ops Trawick, O 07/05/2007 7.54 620 Water ops Lovely, J 07/05/2007 4.60 620 Water ops Marquez, X 07/05/2007 12.92 620 Water ops L P, Rev W 07/05/2007 12.00 620 Water ops Lang, T 07/05/2007 7.43 620 Water ops Ernsberger, B 07/05/2007 40.00 620 Water ops Ramirez, E 01/07/2009 7.71 620 Water ops RJ's Expresso 01/07/2009 40.00 620 Water ops Meredith, L 01/07/2009 9.66 620 Water ops Dawson, S 02/05/2009 4.73 620 Water ops Security Title Services 03104/2009 52.89 620 Water ops Fidelity National Title Ins 03/04/2009 43.16 620 Water ops Teicheira, D 03/04/2009 4.96 620 Water ops Voekler, S 03/16/2009 150.00 101 General Johnson, T 03/30/2009 9.30 203 Recreation Hall, T 04/03/2009 34.44 620 Water ops Coca Cola Enterprises 04/13/2009 2016.87 226 Liability Ins Cardoso. R 05/05/2009 16.46 620 Water ops 11 Jennings, S 05/11/2009 18.60 203 Recreation Lara, V 05/18/2009 42.00 101 General Zukowski, J 06/08/2009 6.04 620 Water ops Marketing Concepts 06/15/2009 446. 619 Blackthorn Tofthagen, N 06/29/2009 20.00 203 Recreation Castaneda, E 07/02/2009 12.92 620 Water ops Koski, L 07/02/2009 18.20 620 Water ops Curlee, D 07/02/2009 6.87 620 Water ops Holleman, A 07/02/2009 20.64 620 Water ops Gallegos, P 08/03/2009 40.00 101 General Vandersloot, D 08/04/2009 4.05 620 Water ops Pankow, J H 10/05/2009 46.87 620 Water ops Richardson, E 10/05/2009 3.56 620 Water ops Tippecanoe Place Restaurant 10/12/2009 500.00 212 CED Mata, T 10/12/2009 20.00 101 General Higginbotham, R 10/26/2009 2.00 101 General Investors Title Corp 11/03/2009 117.16 620 Water ops Investors Title Corp 11/03/2009 125.67 620 Water ops White, J 11/03/2009 66.61 620 Water ops Lara, J D J 11/03/2009 14.33 620 Water ops Steven Acoustics 11/09/2009 61.48 620 Water ops Associates Home Equity Sery 11/09/2009 38.28 620 Water ops Rachel & Bellakovich Besserra 11/09/2009 32.99 620 Water ops Camrex Corporation 11/09/2009 58.24 620 Water ops Moore, P 11/09/2009 50.96 620 Water ops Saylor, J 11/09/2009 37.10 620 Water ops Spychalski, K 11/09/2009 25.34 620 Water ops Taylor, C 11/09/2009 26.86 620 Water ops Adriel, J 11/09/2009 71.11 620 Water ops Davis, A 11/09/2009 65.58 620 Water ops Hoff, T 11/09/2009 54.19 620 Water ops Johnson, W Jr 11/09/2009 52.50 620 Water ops Alain Kareekezi & Catherine 11/09/2009 25.03 620 Water ops Kirund ke, J 11/09/2009 78.39 620 Water ops Mndalila, S 11/09/2009 105.97 620 Water ops Pritzel, S 11/09/2009 53.34 620 Water ops Skinner, D 11/09/2009 49.52 620 Water ops Traustason, L 11/09/2009 111.67 620 Water ops Ullery, K 11/09/2009 37.56 620 Water ops Voelker, D 11/09/2009 177.30 620 Water ops Select Health Network 11/23/2009 117.46 288 EMS /Fire Howard, D 11/30/2009 50.00 201 Parks Malecki, F 11/30/2009 7.15 222 Central Services Baker, J E 12/07/2009 13.81 620 Water ops Reese, J A 12/07/2009 4.03 620 Water ops Wachovia Capital Finance 12/07/2009 16.74 620 Water ops Capeles, J 12/14/2009 7.00 101 General Total 6,270.01 12 City Recommendation The city recommends that such disbursement checks, classified by city policy as stale dated, to be approved by the Board of Finance for cancellation. Said checks, shall be voided within the city's accounts payable disbursement system and removed as a liability of the City of South Bend. Indiana Statute, allowing cancellation and voidance of un- cashed disbursement checks defined as stale dated, will remain subject to claim by the payee for a period of seven (7) years from date of issuance. The city will maintain record of these potential liabilities, in the event a claim is made by any payee. 13 City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2011 Investment Policy The City of South Bend recommends the adoption of the attached Investment Policy: Refer to Appendix 1 Administration & Finance Policy 2.8 Investment Policy to be effective January 1, 2012, said policy recommended is unchanged from the policy in effect during fiscal 2011, Investment Officers The city recommends the following Investment Officers for fiscal 2012: Mark Neal City Controller John Murphy Director — City Finance 14 City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2011 Stale Dated Check Policy The City of South Bend recommends the adoption of the attached Stale Dated Check Policy: Refer to Appendix 2 Administration & Finance Policy 2.11 Stale Dated Check Policy to be effective January 1, 2012, said policy recommended is unchanged from the policy in effect during fiscal 2011. 15 City of South Bend Board of Finance (B of F) Annual Investment Report For the year ended December 31, 2011 Cash Reserve Policy The City of South Bend recommends the adoption of the attached Cash Reserve Policy: Refer to Appendix 4 Administration & Finance Policy 2.3 Cash Reserve Policy to be effective January 1, 2012, said policy recommended is unchanged from the policy in effect during fiscal 2011. City Administration will work with the Common Council to update the cash reserve policy during 2012. irf City of South Bend Administration & Finance Policy Manual Appendix 1 `4SO uj 2.8 Investment Policy Effective: January 1, 2011 Purpose: This policy defines the cash investment policy of the City of South Bend. Scope: This statement applies to all governmental units, enterprise operations, and operations of the City of South Bend. This policy shall be in accordance with the terms and limitations of I.C. 5 -13 -9, Deposit and Investment Powers, as amended from time to time. Responsibility: This policy is the responsibility of the Board of Finance of the City of South Bend. Changes or revisions to this policy are affected only with the consent and approval of the Board of Finance. Effective Date: This policy is effective upon approval and execution of the Board of Finance. The Board of Finance will review this policy on an annual basis coincident with the Annual Meeting of the Board of Finance, held after the 1" Monday in January and before January 31 s'. 1.0 Policy Statement The City of South Bend; Indiana shall make all investments, in both Deposit and Investment Accounts, in accordance with the terms and limitations of IC 5 -13 -9, Deposit and Investment Powers, as amended from time to time. 2.0 Deposit and Investment Options Eligible deposit accounts mean any of the following: 1. Any account subject to withdrawal by negotiable orders of withdrawal, unlimited as to amount or number, and without penalty, including NOW accounts 2. Passbook savings accounts 3. Certificates of Deposit 4. Money market deposit accounts 5. Any interest- bearing account that is authorized and offered by a financial institution in the course of its respective business Approved By: City Controller Approved By: Mayor Approved By: Council Board of Finance 2010 Board of Finance Annual Investment Report Appendix 1 AF Policy 2.8 Investment Policy Page 1 of 3 17 City of South Bend Administration & Finance Policy Manual Appendix 1 3.0 Eligible Investment Products: Each investment officer may invest or reinvest any funds that are held by the officer and available for investment in any of the following (IC 5- 13 -9): 3.1 Securities backed by the full faith and credit of the United States Treasury or fully guaranteed by the United States and issued by any of the following: 1. The United States Treasury 2. A federal agency 3. A federal instrumentality 4. A federal government sponsored enterprise 3.2 Discount notes issued by any of the following: 1. A federal agency 2. A federal instrumentality 3. A federal government sponsored enterprise 3.3 An investment officer shall annually obtain the approval of the Common Council before making investments in the following: 1. Money market mutual funds that are in the form of securities of or interests in an open -end, no- load, management -type investment company or investment trust registered under the provisions of the federal Investment Company Act of 1940, as amended. The portfolio of this type must be limited to the following: A. Direct obligations of the United States B. Obligations issued by any of the following: a. A federal agency b. A federal instrumentality C. A federal government sponsored enterprise C. Repurchase agreements fully collateralized by obligations described in both A and B above. 2. The money market mutual fund must be rated as one of the following: A. AAAm, or its equivalent, by Standard and Poor's Corporation B. Aaa, or its equivalent, by Moody's Investors Service, Inc. 3.4 The investment is considered to have a stated final maturity of one day, and shall be made through depositories designated by the state board of finance as depositories for state deposits under IC 5- 13 -9.5. Approved By: City Controller Approved By: Mayor Approved By: Council Board of Finance 2010 Board of Finance Annual Investment Report Appendix 1 AF Policy 2.8 Investment Policy Page 2 of 3 City of South Bend Administration & Finance Policy Manual Appendix 1 4.0 Terms of Repurchase Agreements Each investment officer may into into, with any funds that are held by the officer and available for investment, repurchase agreements with depositories designated by the State Board of Finance as depositories under IC 5- 13 -9.5; and involving the political subdivision's purchase and guaranteed resale of any interest - bearing obligations; A. issued; or B. fully insured or guaranteed by the United States, a United States Government Agency, an instrumentality of the United States, or a federal government sponsored enterprise. The depository shall determine daily that the amount of money in this type of agreement must be fully collateralized by interest - bearing obligations as determined by their current market value. The collateral is not subject to the two -year maturity limitation. Repurchase agreements may be entered into for a fixed term or arranged on an open or continuing basis as a continuing contract that: 1. operates like a series of overnight repurchase agreements (may be referred to as overnight sweep products), 2. is renewed each day with the repurchase rate and the amount of funds invested determined daily; and 3. for this purpose is considered to have a final maturity of one day. 5.0 Investment in Other Securities Each investing officer may invest or reinvest in obligations issued. assumed or guaranteed by the International Bank for Reconstruction and Redevelopment or the African Development Bank (IC 5 -13- 9.3.3) 6.0 Inter -local Cooperation Agreement IC 36 -1 -7 -1 authorizes and permits local units of government to enter into inter -local cooperation agreements, and thus to exercise a power jointly pursuant to a written agreement authorized by ordinance or resolution. MBIA provides through Invest Indiana, such an inter -local agreement. The investments of the joint structure are limited to all investments authorized by IC 5 -13. Approved By: Controller Approved By: Mayor 2010 Board of Finance Annual Investment Report Appendix 1 AF Policy 2.8 Investment Policy Page 3 of 3 19 City of South Bend Administration & Finance Policy Manual i l+/ y� naffs. 186 Appendix 2 2.11 Stale Dated Check Policy Effective: January 1, 2011 Purpose: This policy defines the practice and protocol for handling stale dated checks issued by the City of South Bend. Scope: This statement applies to all governmental units, enterprise operations, and operations of the City of South Bend- Responsibility: This policy is the responsibility of the Controller of the City of South Bend. Changes or revisions to this policy are affected only with the consent and approval of the Controller. Effective Date: This policy is effective January 1, 2011. 1.0 Policy Statement The City of South Bend has defined that payroll checks and account payable disbursement checks drawn on city accounts will have a two (2) year active life from the date of issuance as noted on the check. Un- cashed checks, beyond two (2) year active life period, are no longer valid and shall be classified as a stale dated check. 2.0 Responsibility Administration of the stale dated check policy is delegated by the Controller, to be the responsibility of the Director City Finance. The Director City Finance will identify the payroll and payable disbursement checks that are classified as stale dated checks, prepare such list and submit to the Controller for approval. Upon approval of the Controller, the stale dated check list will be presented to the City of South Bend Board of Finance, at the first annual Board of Finance Meeting during each calendar year, for Board of Finance vote on the stale dated check disposition recommendations as presented by the Controller. 3.0 Board of Finance Filing Requirements 3.1 The Controller shall file with the Board of Finance, documents as defined in paragraphs 3.1.1 and 3.1.2 and the Controller's recommendation, at least 72 hours prior to the first annual Board of Finance Meeting called for each calendar year: 3.1.1 Payroll Stale Dated Checks: Proposed list of all stale dated checks recommended to be written off, identifying the check number, employee name, date of check, amount of check, fund name, fund number, and any other information deemed necessary by the Controller. Approved By: City Controller Approved By: Mayor Approved By: Council Board of Finance 2010 Board of Finance Annual Investment Report Appendix 2 AF Policy 2.11 Stale Dated Check Policy Page 1 of 2 20 City of South Bend Administration & Finance Policy Manual Appendix 2 3.1.2 Account Payable Stale Dated Checks: Proposed list of all stale dated checks recommended to be written off, identifying the check number, vendor name, date of check, amount of check, fund name, fund number, and any other information deemed necessary by the Controller. 4.0 Board of Finance Requirements The Board of Finance shall be required to review all information filed by the Controller as referenced above and hear presentation and recommendation from the Controller or designee at the first annual Board of Finance meeting. The Board will motion, second, and vote on the recommendation as presented by the Controller with, majority in favor and supporting the recommendation of the Controller, the recommendation will be passed, and the Controller provided with the authority to execute the recommendation as approved. A copy of all guidelines shall be filed of record with the Office of the City Clerk and with the City Controller in the Department of Administration and Finance. 5.0 Other Matters Additional guidelines may be promulgated by the Board of Finance when deemed necessary. Approved By: City Controller Approved By: Mayor Approved By. Council Board of Finance 2010 Board of Finance Annual Investment Report Appendix 2 AF Policy 2.11 Stale Dated Check Policy Page 2 of 2 21 Fund Number Fund Name 2002 Actual 2003 Actual City of South Bend, Indiana Interest Earnings Summary - 2002 through 2011 December 31, 2011 Prepared - January 16, 2012 2004 2005 2006 Actual Actual Actual 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 101 General Fund $405.523 $217,817 $210.697 $792.662 $1,525.832 $2,456.361 $1.576.707 $129.872 $45.027 554,948 102 Rainy Day Fund 0 0 26.967 74.033 105.664 102,063 159,362 26,065 28.532 24,477 103 Excess Levy 0 0 0 13,820 10.148 0 742 285 395 261 201 Parks & Recreation 1.336 715 4,110 15.942 0 4.937 12.910 591 9,423 8,467 202 Motor Vehicle Highway 2.735 86 2.035 3.834 4.576 14 40.014 21,066 11,099 5.314 203 Recreation - Non Reverting 3.641 4.074 6.525 14.684 11.183 22.181 20.904 6.223 1,863 0 209 Studebaker /Oliver Grants 0 0 0 0 25,516 44.983 63.975 16.413 6.401 4.486 210 Econ Dev State Grants 4,745 0 0 2,457 33.945 262.672 136.850 103,213 89.744 12,614 211 CED Administration 0 0 0 0 0 0 0 0 0 1,625 212 Community & Economic Development 3.443 2,521 3.095 6.452 61,934 105.380 59.659 11.241 5,760 3.147 216 Slate Seized Drug Money 0 0 0 0 0 0 0 0 351 336 217 Gift. Donation, Bequest 0 0 0 0 0 0 0 0 102 112 218 SBPD Curfew Violations 0 0 0 0 0 0 0 0 29 28 220 Law Enforcement Cont. Education 0 0 0 0 3,698 6.601 9.941 5.930 3.174 0 222 Central Services 0 0 0 0 0 0 0 0 972 1.917 226 Liability Insurance 9,717 12.936 27,596 57.359 87.864 97,529 95,123 21.770 12,954 11.068 227 Loss Recovery Fund 0 0 0 0 0 0 0 22.187 16,057 12,545 249 Public Safely LOIT Fund 0 0 0 0 0 0 0 0 4.741 2,308 250 General Grant 0 0 0 0 0 0 1.160 319 15 0 251 Local Roads & Streets 16.344 6.649 19,300 52.910 52.077 43.249 83.884 23,395 8.710 6.031 252 Excess Welfare Distribution 0 0 0 0 0 0 0 0 17,808 6,545 258 Human Rights - Federal Grant 414 2,486 5.303 11.447 10,991 10.149 9,328 2.746 1,606 1,404 271 Eastrace Waterway 910 576 619 1,428 1.045 1,338 1,194 284 118 78 272 Special Events 910 576 72 284 210 0 0 0 0 0 273 Morris /Palais Marketing Fund 0 0 0 0 0 0 90 86 47 60 278 Police Take Home Liability 0 0 0 0 0 0 0 0 871 833 280 Police Block Grants 9.303 5.143 4.011 4,806 1,255 0 0 282 2,031 3.433 281 Economic Revenue Bond 0 0 0 0 0 0 0 0 88 76 288 EMS /Fire Dept. Capital 2.326 5.310 8.346 23.079 37.833 32.047 47,134 24,891 17.438 15.121 289 Hazmat 0 0 0 0 0 0 0 0 21 8 291 Indiana River Rescue 0 0 0 0 0 0 0 0 269 195 294 Regional Police Academy 0 0 1.074 2,678 1,560 1,352 1,351 481 285 231 295 COPS More Grant 0 0 0 0 0 0 0 0 418 323 299 Federal Drug Enforcement 0 0 0 0 2.638 8.187 14.177 2.856 981 724 305 SBCDA Bond Proceeds 2003 16.390 12.560 210,112 334.547 278,555 191.225 188.939 34.171 8,832 2.657 310 Studebaker Bond 0 0 0 3.685 0 0 0 0 0 0 312 Redevelopment Bond Wayne Street 11.615 8.247 8,473 2.700 0 0 0 0 0 0 313 Hall of Fame Debt Service 0 0 0 10.388 0 0 0 0 0 0 314 Redev Bond 1990 12.668 9.359 11,151 27,488 37,797 37.256 30,589 7,136 3.027 2,373 315 Redev Bond - Airport - Taxable 14.134 10.282 0 7.759 35,113 60.099 61,564 16.949 7.090 5.538 316 Redev Bond - Airport - Exempt 6.745 4.848 377 0 0 0 0 0 0 0 317 Coveleski Bond Debt Service Reserve 0 0 0 0 0 0 0 0 0 1.277 319 Blackthorn Debt Service 15,467 12,533 14,873 33,589 44,200 43.567 36.470 8,742 3.627 2,827 320 Edit Bond - Plaza Garage- Exempt 9.971 6.934 8,462 17,392 20.739 0 0 0 0 0 321 Edit Bond - Plaza Garage - Taxable 9.664 6.721 8.202 16.857 20,102 0 0 0 0 0 324 TIF Revenue - Airport 30,708 33.136 68.642 305,809 606.063 611,747 719.473 143.202 90.268 60.381 328 Redev Bond - Palais Royale 5,380 0 0 4.428 20,031 36,324 35.225 9.768 4.053 3.159 377 Professional Sports Development 7.531 4,225 5.540 15,702 21.241 23.706 17,892 4,878 3.669 3.415 401 Coveleski Stadium Capital 5.451 5.028 6.506 9.974 4.704 9.015 7.462 1.594 370 262 IX Dept. Administration /Finance 1118/2012 Pagel Dy fD a N• k W Fund Number Fund Name 2002 Actual 2003 Actual City of South Bend, Indiana Interest Earnings Summary - 2002 through 2011 December 31, 2011 Prepared - January 16, 2012 2004 2005 2006 Actual Actual Actual 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 403 Zoo Endowment 0 0 0 0 335 880 897 250 113 97 404 COIT 114,650 119.802 146.338 198,693 226.073 147,718 143.485 49,035 50.033 37,973 405 Park Nonreverting Capital 1.817 1,456 3.941 7.977 5.000 13.465 8.332 2.502 1.319 1.020 406 Cumulative Capital Development 16,436 12.971 18,158 49.285 70.351 65.648 37,124 7.373 3.267 1,769 407 Cumulative Capital Improvement 226 1,714 453 505 0 0 0 57 45 36 408 EDIT 33,039 26,721 20.597 21,945 33.450 53.971 32.231 9,600 18.952 22.135 410 UDAG 2.198 2,102 1,599 3,897 155,290 156,013 144.853 30,480 14,170 2.659 412 Major Moves Construction 0 0 0 0 63,519 744.851 463.752 113,908 36.180 77.860 414 TIF District - Sample /Ewing 4,983 4,582 5.292 5,833 8.191 12.163 5,876 0 0 0 416 Morris PAC Capital 581 677 1,475 4,402 7.318 10,049 8,811 2.385 1.434 1,503 420 TIF District - SBCDA General 32,618 14,221 27,672 94,991 131,554 109.284 126,073 13,569 15.002 9.217 422 TIF District - W. Washington 438 501 970 9.884 12.070 13.574 13,029 1.117 1.959 3.141 424 TIF SBCDA - Building Operations 0 0 0 0 1.514 0 0 0 0 0 425 TIF - Leighton Plaza 0 0 0 275 2,387 1,117 3.976 1.037 488 334 426 TIF - Cent. Med Sery Area 0 0 3,856 27,339 37,495 31,719 52,519 14.711 15,948 10.028 427 Redevelpment - TJX 0 6.587 0 0 0 0 0 0 0 0 428 Red Dist Capital - AEDA2003 0 0 126.419 194,558 177.528 48.069 10.213 2.725 1.202 0 429 Northeast Development Area TIF 0 0 0 0 0 0 233 376 345 1.040 430 Soulhside TIF Area #1 0 0 0 0 0 0 0 1.786 8,816 10.154 431 Southside TIF #2 - Eskine Commons 0 0 0 0 0 0 0 1,647 10.074 4.029 432 Soulhside TIF #3 - Eskine Village 0 0 0 0 0 0 0 2.238 11.905 13.192 433 Redevelopment Admin General 2.134 1,532 1.557 3,679 5,367 3.581 2,822 669 214 107 434 CREED 0 0 0 22,425 70.155 82,537 67,563 8,287 3,214 1.507 435 Douglas Road TIF 0 0 0 0 0 0 0 0 756 246 436 Nolheast Residential TIF 0 0 0 0 0 0 0 0 1.478 2.266 438 Coveleski Bond Construction 0 0 0 0 0 0 0 0 0 5.268 450 Palais Royale Historic Preservation 0 0 0 0 0 0 136 271 124 118 454 Airport Urban Enterprise Zone 0 0 0 0 0 0 0 0 741 473 600 Building Department 2.166 1,590 1.662 3.159 1,557 791 1,440 674 129 113 601 Parking Garages 0 0 0 0 0 99 0 0 1.207 2,112 610 Solid Waste Operations 0 3,420 9,917 13,562 6.024 2,313 1.347 0 2.854 3,363 611 Solid Waste Capital 4,720 6.900 5,654 2.527 0 0 0 0 234 210 620 Water Works Operations 0 0 4,199 16.705 0 24.504 66.840 19,115 6,735 4,545 621 WW SRLF Eq Repl Cost 0 1.492 1,030 0 0 0 0 0 0 0 622 Water Works Capital 6.028 19.015 12,121 4.728 0 18.885 13.230 4,240 1.977 1.909 623 WW 1997 Bond Capital 42.322 58.644 14.492 0 104.552 103,801 1.401 0 10.555 1.764 624 Water Works Customer Deposit 23.275 14.037 18.675 42,571 56,031 55.497 47.733 11,514 4.960 3.971 625 WW 1993 Sinking Fund 41,628 9.710 0 55.524 65.651 57,907 50.215 4,094 5.260 4,581 626 Water Works Bond Reserve 0 0 0 0 0 0 0 0 162 606 628 WW SRLF Rev Bd Reserve 28,516 0 0 0 0 0 0 0 0 0 629 WW Resv O &M Fund 28.712 17,524 22.441 51,489 70,518 71,887 60.947 15.165 8,691 7,206 640 Sewer Repair Insurance 851 1,187 1,004 1,529 145 5,967 6.164 2,314 1.710 2.179 641 Sewage Works Operations 0 0 8,743 41,178 68.139 221.041 282,825 68.581 24.711 19.879 642 Sewage Works Capital 41.628 9,710 0 55,524 80.013 75,937 5.673 2.687 1,577 13.101 643 Sewage Works Resv - O &M 50.135 33,892 43.577 93,871 124,089 140.000 118,399 27,752 10.034 8.429 644 Sewer Water Leak Ins. Fund 0 0 0 0 1,604 1.161 464 0 0 0 645 2004 -2006 Sewer Bonds 0 0 39.942 232,890 235.216 97,408 1,868 0 97 12 646 Sewage Rev Bond Reserve 20.593 12.058 14,714 0 0 0 0 0 0 0 647 2007 Sewer Bond 0 0 0 0 0 202,306 278,351 36.998 3.595 1,352 649 Sewage Works Bond Sinking 50.268 14,642 11.027 22.438 44,831 29.886 129 0 6,167 6,987 M W Dept. Administration /Finance 1/1812012 Page2 Y' rd r� (D N• x W N Dept. Administration /Finance 1/18/2012 Page3 ro ro m z a. x E City of South Bend, Indiana Interest Earnings Summary - 2002 through 2011 December 31, 2011 Prepared - January 16, 2012 Fund Fund 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Number Name Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual 650 Clay Sewage Works Operations 16.055 11.787 14.070 31.648 43,527 44.421 38,408 8.481 2 2 651 2007B Sewer Bond 0 0 0 0 0 0 469.876 142.314 30.308 2,989 653 Sewage Works Debt Service Reserve 0 0 0 0 0 0 0 0 14,267 4.901 655 Project Releaf 0 0 0 0 0 0 0 0 2,312 2.111 656 Sewage SRLF Rev BD Resv 37.669 22.055 26.915 0 0 0 0 0 0 0 657 Sewg SRLF EP Repl Cost Resv 39.391 29.869 38.028 83.441 11,580 0 0 0 0 0 658 2010 Sewer Bond 0 0 0 0 0 0 0 0 0 18.528 659 2011 Sewer Bond 0 0 0 0 0 0 0 0 0 8,738 670 Century Center 4.013 2,359 551 279 916 972 8,736 21,304 7.288 1.839 677 Hall of Fame Capital 0 0 0 0 0 22.317 24,403 6.277 4,024 2.910 701 Fire Pension 16.161 13,522 17.393 36.175 28,062 11.298 33,589 6,346 5,532 4.330 702 Police Pension 16.544 12.567 15.595 26.822 23.695 3.949 44,011 8.639 7,340 5.510 709 K -9 Unit 0 0 0 0 0 0 0 0 4 5 711 Self- Funded Employee Benefits 8.999 0 14.667 61,414 91,183 110137 169.758 50.616 34,807 27.732 730 City Cemetary Trust 545 360 465 1.106 828 1.690 1.474 357 150 199 Total Interest $1,296,410 $861,968 $1,357,297 $3,392,461 $5,132,272 $7,010,895 $6,281,325 $1,348.127 $802,734 $628.889 N Dept. Administration /Finance 1/18/2012 Page3 ro ro m z a. x E $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Appendix 3 Interest Earnings 2002 -2011 Interest Earnings 2002 Actual $1,296.410 2003 Actual 861,968 2004 Actual 1,357,297 2005 Actual 3,392,461 2006 Actual 5,132,272 2007 Actual 7,010,895 2008 Actual 6,281,325 2009 Actual 1,348,127 2010 Actual 802,734 2011 Actual 628,889 Total 2002 -2011 $28,112,378 The City of South Bend earns interest on checking account balances, certificates of deposit, repayment of loans on economic development projects and short-term investments. In May 11, 2011, the City opened a new investment account with 1 st Source Bank in the amount of $150,000,000. Investment earnings are reported net of fees. Investment earnings are recorded in the general ledger on a cash basis when realized and do not reflect changes in asset value and accrued interest until the investment is sold or matures. 25 F� F1 F�__ 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Interest Earnings 2002 Actual $1,296.410 2003 Actual 861,968 2004 Actual 1,357,297 2005 Actual 3,392,461 2006 Actual 5,132,272 2007 Actual 7,010,895 2008 Actual 6,281,325 2009 Actual 1,348,127 2010 Actual 802,734 2011 Actual 628,889 Total 2002 -2011 $28,112,378 The City of South Bend earns interest on checking account balances, certificates of deposit, repayment of loans on economic development projects and short-term investments. In May 11, 2011, the City opened a new investment account with 1 st Source Bank in the amount of $150,000,000. Investment earnings are reported net of fees. Investment earnings are recorded in the general ledger on a cash basis when realized and do not reflect changes in asset value and accrued interest until the investment is sold or matures. 25 City of South Bend Administration & Finance Policy Manual Appendix 4 `c,llUTye�... lIJ CJ y C W. n'ACF. y y f 1865 2.3 Cash Reserve Policy Effective: January 1, 2010 Purpose: This policy defines the cash reserve policy of the City of South Bend. Scope: This statement applies to all governmental units, enterprise operations, and operations of the City of South Bend. Responsibility: This policy is the responsibility of the Controller of the City of South Bend. Changes or revisions to this policy are affected only with the consent and approval of the Controller. Effective Date: This policy is effective January 1, 2010. 1.0 Policy Statement The City of South Bend will establish cash spending reserves in certain funds, as defined by the Mayor and the Controller, to hold cash reserves to serve as fiscal protection against the risk of revenue shortfalls, emergencies, unstable property tax collection, and other economic risks that may impact the City's ability to meet financial obligations and commitments. Such cash reserves, may also serve as a mechanism to maintain credit agency and bond ratings to ensure creditworthiness and borrowing capacities, in the event they are required, at the lowest cost. 1.1 The Mayor and the Controller, jointly, will have authority to define the cash reserve guidelines in effect for the City of South Bend. 1.2 Cash reserve guidelines, are targets, established for the intentions as stated in paragraph 1.0 of this policy, and may not be adhered to at all times due to unforeseen circumstances. 1.3 The city will review the cash reserve policy from time to time to determine if economic conditions and circumstances warrant consideration of revision to the in effect cash reserve procedures. Approved By: City Controller Approved By. Mayor AF Policy 2.3 Cash Reserve Policy Page 1 of 1 26 City of South Bend Administration & Finance Policy Manual SOUTH 6� Ur r fxes 2.3.1 Cash Reserve Procedure Appendix 4 Effective: January 1, 2010 Purpose: This procedure defines the cash reserve practices for the City of South Bend. Scope: This statement applies to all governmental units, enterprise operations, and operations of the City of South Bend. Responsibility: This policy is the responsibility of the Controller of the City of South Bend. Changes or revisions to this policy are affected only with the consent and approval of the Controller. Effective Date: This policy is effective January 1, 2010. 1.0 Procedure Statement The City of South Bend has established the following cash reserve guidelines: Fund 101 201 202 203 251 288 377 401 404 405 406 407 408 416 600 610/611 620 641 Fund Name General Fund Parks & Recreation General Motor Vehicle Highway Parks & Recreation Non Reverting Local Roads & Streets EMS / Fire Capital Professional Sports Development Coveleski Stadium Capital County Option Income Tax Parks Non Reverting Capital Cumulative Capital Development Cumulative Capital Improvement Economic Development Income Tax Morris Performing Arts Center Building Department Solid Waste Water Utility Sewage Works Cash Reserve Practice 20% of annual operating expenditures 15% of annual operating expenditures 10% of annual operating expenditures 15% of annual operating expenditures 10% of annual operating expenditures 15% of annual operating expenditures 10% of expenditures 10% of expenditures 20% of annual estimated revenue 10% of expenditures 10% of annual operating expenditures 10% of annual operating expenditures 10% of annual estimated revenue 5% of expenditures 10% of expenditures 5% of expenditures 2 months of operating expenditures 2 months of operating expenditures Approved By: City Controller Approved By: Mayor AF Policy 2.3.1 Cash Reserve Procedure Page 1 of 1 27