HomeMy WebLinkAbout2022 Board of Finance Investment ReportANNUAL INVESTMENT REPORT
to the
CITY OF SOUTH BEND BOARD OF FINANCE
For the Year Ended December 31, 2022
Report Date:
Report Distribution:
Submitted By:
January 31, 2023
South Bend Common Council Members
Mayor
Chief of Staff
Deputy Chief of Staff
City Clerk
Common Council Attorney
Corporation Counsel
State Board of Accounts (local office)
Interim City Controller (pursuant to I.C. 5-13-7-7)
TABLE OF CONTENTS
Investment Officers, Advisors, Authorized Investments ............................................................ 3
Investment Review Meetings ........................................................................................................... 4
Investment Report (12/31/22) ............................................................................................... 5 – 13
Year-End Cash Report (12/31/22 – preliminary) .............................................................. 14 – 16
2022 Interest Earnings Summary .......................................................................................... 17 – 23
Cash Management & Investment Policies ........................................................................... 24 – 32
1st Source Investment Advisor Profiles ................................................................................ 33 – 35
INVESTMENT OFFICERS
Interim City Controller: Benjamin J. Dougherty, JD
Director of Treasury: Amanda N. Pietsch, CPA
INVESTMENT ADVISORS (1ST SOURCE BANK)
Paul W. Gifford, Jr., CFA
Senior Vice President & Chief Investment Officer
Erik Clapsaddle, CFA, CFP ®
Vice President & Sr. Fixed Income Portfolio Manager
Delia Salazar Nicholls
Trust Officer
AUTHORIZED INVESTMENT AMOUNT
Portfolio of $200 million in investments with 1st Source Bank
3
INVESTMENT REVIEW MEETINGS
QUARTER DATE TIME
1ST Quarter 04/19/2023 10:00 A.M.
2ND Quarter 07/19/2023 10:00 A.M.
3RD Quarter 10/18/2023 10:00 A.M.
4TH Quarter 01/17/2024 10:00 A.M.
Investment Review Meetings will be held virtually via Microsoft Teams until further notice.
4
INVESTMENT REPORT (12/31/2022)
5
Investment Presentation for
City of South Bend Corporate Agency
Prepared by Paul W Gifford, CFA
6
Account Summary as of 12/31/2022
City of South Bend Corporate Agency
Account Statistics
Total Market Value $193,251,197.11
Total Unrealized Gain/Loss -$6,477,192.94
Estimated Annual Income $2,654,906.70
Estimated Portfolio Yield 1.37%
YTD Long Term Gain/Loss $0.00
YTD Short Term Gain/Loss $0.00
Policy Account Income
Minor Account Type AGENCY
Investment Officer PAUL GIFFORD
Administrative Officer DELIA SALAZAR NICHOLLS
Asset Allocation
% TotalMarket ValueAsset Category
1.8 3,411,809.67Cash
98.2 189,839,387.44Fixed Income
100.0%$193,251,197.11Total
Top 5 Holdings (Cash Excluded)
Asset Units Price Tax Cost Market Value YieldEst. IncomeGain/Loss % Total
U.S. Treasury Notes 1.375%
6/30/23
5.13 1.39 137,500.00-149,108.91 9,911,729.83 10,060,838.74 98.43 10,000,000
FHLMC MTN 0.250% 5/19/23 3.57 0.25 17,500.00-108,978.33 6,891,021.67 7,000,000.00 98.41 7,000,000
FNMA 0.250% 7/10/23 2.68 0.26 13,262.50-123,136.45 5,186,897.44 5,310,033.89 97.66 5,305,000
Wells Fargo Bank CD 4.800%
5/28/24
2.59 4.79 240,000.00 14,830.14 5,014,830.14 5,000,000.00 100.24 5,000,000
U.S. Treasury Notes 1.625%
5/31/23
2.56 1.64 81,250.00-87,816.73 4,948,342.86 5,036,159.59 98.82 5,000,000
$32,407,032.22 $31,952,821.94 -$454,210.28 $489,512.50 1.53%Total 16.53%
Market values include accruals.
December 31, 2022 7
Holdings Detail as of 12/31/2022
City of South Bend Corporate Agency
Asset CUSIP Quantity Tax Cost YieldEst. IncomeGain/LossMarket Value
Cash
Taxable Money Market Funds
Federated Hermes Govt Obl 608919718 3,403,766 3,403,766.13 3,411,809.67 8,043.54 119,843.20 3.51%
$3,403,766.13 $3,411,809.67 $8,043.54 $119,843.20 3.51%Total Cash
Fixed Income
Time Deposits
Ally Bank CD 4.700% 12/23/24 02007GH55 250,000 250,000.00 250,646.92 646.92 11,750.00 4.69%
American Expr Bk CD 3.300% 7/01/24 02589AD41 250,000 250,000.00 245,320.31 -4,679.69 8,250.00 3.36%
Bankunited CD 0.150% 2/21/23 066519QF9 250,000 250,000.00 248,624.18 -1,375.82 375.00 0.15%
Bankwell Bank CD 0.400% 7/06/23 06654BCH2 250,000 250,000.00 245,540.41 -4,459.59 1,000.00 0.41%
Bmo Harris Bank CD 0.500% 3/28/25 05600XAY6 1,000,000 1,000,000.00 913,224.79 -86,775.21 5,000.00 0.55%
Bmo Harris Bank CD 0.700% 4/28/25 05600XCV0 3,000,000 3,000,000.00 2,747,119.73 -252,880.27 21,000.00 0.76%
Bmo Harris Bk CD 0.500% 2/27/25 05600XAV2 1,000,000 1,000,000.00 916,579.45 -83,420.55 5,000.00 0.55%
BMW Bank CD 0.300% 7/31/23 05580AB94 250,000 250,000.00 244,460.99 -5,539.01 750.00 0.31%
Capital One Bank CD 3.300% 7/01/24 14042THC4 250,000 250,000.00 245,320.31 -4,679.69 8,250.00 3.36%
Capital One CD 3.300% 7/01/24 14042RSH5 250,000 250,000.00 245,320.31 -4,679.69 8,250.00 3.36%
City Natl Bank CD 4.900% 11/24/25 178180GS8 199,000 199,000.00 201,759.26 2,759.26 9,751.00 4.83%
First Internet CD 4.450% 6/16/25 32056GDS6 150,000 150,000.00 149,809.60 -190.40 6,675.00 4.46%
Flagstar Bank CD 0.200% 6/16/23 33847E4N4 5,000,000 5,000,000.00 4,907,838.36 -92,161.64 10,000.00 0.20%
Flagstar Bank CD 0.250% 6/30/23 33847E4R5 3,000,000 3,000,000.00 2,940,521.10 -59,478.90 7,500.00 0.26%
Flagstar Bank CD 0.300% 7/17/23 33847E4T1 4,000,000 4,000,000.00 3,918,876.16 -81,123.84 12,000.00 0.31%
Flagstar Bank CD 0.400% 9/30/24 33847E4E4 1,000,000 1,000,000.00 931,019.18 -68,980.82 4,000.00 0.43%
Flagstar Bank CD 0.500% 7/31/24 33847E3X3 1,000,000 1,000,000.00 939,749.59 -60,250.41 5,000.00 0.53%
Goldman Sachs Bk CD 3.350% 7/08/24 38150VDH9 250,000 250,000.00 245,946.58 -4,053.42 8,375.00 3.41%
Homestreet Bank CD 0.150% 2/22/23 43785QPR8 250,000 250,000.00 248,585.27 -1,414.73 375.00 0.15%
Investors Bank CD 0.200% 6/30/23 46176PNG6 250,000 250,000.00 244,982.74 -5,017.26 500.00 0.20%
Mainstreet Bank CD 0.250% 3/31/23 56065GAN8 250,000 250,000.00 247,637.29 -2,362.71 625.00 0.25%
Manuf & Traders CD 4.900% 12/09/24 564759RJ9 250,000 250,000.00 252,204.04 2,204.04 12,250.00 4.86%
NY Community Bank CD 0.200% 7/03/23 649447VA4 250,000 250,000.00 244,887.74 -5,112.26 500.00 0.20%
December 31, 2022 8
Holdings Detail as of 12/31/2022
City of South Bend Corporate Agency
Asset CUSIP Quantity Tax Cost YieldEst. IncomeGain/LossMarket Value
Fixed Income
Time Deposits (continued)
Oceanfirst Bank CD 3.250% 7/01/24 67523TBE2 250,000 250,000.00 245,139.28 -4,860.72 8,125.00 3.31%
Parkway Bank CD 0.150% 2/27/23 70153RKQ0 250,000 250,000.00 248,555.03 -1,444.97 375.00 0.15%
Popular Bank CD 4.300% 12/11/25 73317ABH4 250,000 250,000.00 248,632.64 -1,367.36 10,750.00 4.32%
Sallie Mae Bank CD 0.300% 7/28/23 795451AE3 250,000 250,000.00 244,560.10 -5,439.90 750.00 0.31%
Sallie Mae Bk CD 4.900% 12/08/25 795451CL5 250,000 250,000.00 253,036.54 3,036.54 12,250.00 4.84%
Southern Bank CD 4.650% 12/09/24 843383CG3 250,000 250,000.00 250,955.03 955.03 11,625.00 4.63%
Southern Sts Bank CD 0.500% 6/12/24 843879DC8 250,000 250,000.00 235,623.49 -14,376.51 1,250.00 0.53%
Synchrony Bank CD 0.400% 10/10/23 87164WD21 250,000 250,000.00 242,340.38 -7,659.62 1,000.00 0.41%
Third Fed Svgs CD 0.150% 2/23/23 88413QCX4 250,000 250,000.00 248,657.09 -1,342.91 375.00 0.15%
Webbank CD 0.250% 5/01/23 947547MU6 250,000 250,000.00 246,850.38 -3,149.62 625.00 0.25%
Wells Fargo Bank CD 1.900% 1/17/23 949495AQ8 1,000,000 1,000,000.00 999,730.82 -269.18 19,000.00 1.90%
Wells Fargo Bank CD 2.850% 3/13/23 949763YK6 500,000 500,000.00 499,491.78 -508.22 14,250.00 2.85%
Wells Fargo Bank CD 2.950% 3/27/24 949763YW0 1,000,000 1,000,000.00 980,154.11 -19,845.89 29,500.00 3.01%
Wells Fargo Bank CD 4.750% 12/16/24 9497634M5 1,750,000 1,750,000.00 1,758,964.32 8,964.32 83,125.00 4.73%
Wells Fargo Bank CD 4.800% 5/28/24 9497633V6 5,000,000 5,000,000.00 5,014,830.14 14,830.14 240,000.00 4.79%
US Treasury
U.S. Treasury Notes 1.375% 6/30/23 912828S35 10,000,000 10,060,838.74 9,911,729.83 -149,108.91 137,500.00 1.39%
U.S. Treasury Notes 1.625% 5/31/23 912828R69 5,000,000 5,036,159.59 4,948,342.86 -87,816.73 81,250.00 1.64%
U.S. Treasury Notes 2.125% 3/31/24 912828W71 5,000,000 4,977,353.34 4,870,896.29 -106,457.05 106,250.00 2.18%
U.S. Treasury Notes 2.125% 7/31/24 9128282N9 5,000,000 4,927,306.10 4,853,663.32 -73,642.78 106,250.00 2.19%
U.S. Treasury Notes 2.250% 1/31/24 912828V80 4,000,000 4,080,418.63 3,932,183.04 -148,235.59 90,000.00 2.29%
U.S. Treasury Notes 2.250% 12/31/24 9128283P3 5,000,000 4,901,296.89 4,848,360.77 -52,936.12 112,500.00 2.32%
U.S. Treasury Notes 2.375% 8/15/24 912828D56 5,000,000 4,941,486.58 4,869,053.94 -72,432.64 118,750.00 2.44%
U.S. Treasury Notes 2.750% 2/15/24 912828B66 5,000,000 5,044,301.26 4,943,736.14 -100,565.12 137,500.00 2.78%
U.S. Treasury Notes 2.875% 5/31/25 9128284R8 5,000,000 4,993,750.00 4,846,437.36 -147,312.64 143,750.00 2.97%
Government Agency
FFCB 0.190% 9/22/23 3133EMLE0 5,000,000 5,000,000.00 4,830,812.50 -169,187.50 9,500.00 0.20%
FFCB 0.210% 12/28/23 3133EMLT7 3,000,000 3,000,000.00 2,861,482.50 -138,517.50 6,300.00 0.22%
December 31, 2022 9
Holdings Detail as of 12/31/2022
City of South Bend Corporate Agency
Asset CUSIP Quantity Tax Cost YieldEst. IncomeGain/LossMarket Value
Fixed Income
Government Agency (continued)
FFCB 0.330% 6/03/24 3133EME40 3,000,000 3,000,000.00 2,817,080.00 -182,920.00 9,900.00 0.35%
FFCB 0.340% 4/22/24 3133EMXB3 5,000,000 4,999,250.00 4,712,608.33 -286,641.67 17,000.00 0.36%
FFCB 0.420% 9/09/24 3133EL6E9 2,000,000 2,000,000.00 1,860,193.33 -139,806.67 8,400.00 0.45%
FFCB 0.600% 6/16/25 3133EMH47 2,000,000 2,000,000.00 1,818,940.00 -181,060.00 12,000.00 0.66%
FFCB 0.900% 6/15/26 3133EMH21 1,000,000 1,000,000.00 888,230.00 -111,770.00 9,000.00 1.01%
FFCB 1.670% 3/08/24 3133ENQX1 3,000,000 3,000,000.00 2,901,335.83 -98,664.17 50,100.00 1.73%
FFCB 2.190% 3/21/25 3133ENSK7 1,000,000 1,000,000.00 953,443.33 -46,556.67 21,900.00 2.30%
FHLB 0.180% 4/28/23 3130AM5P3 5,000,000 5,000,125.16 4,932,625.00 -67,500.16 9,000.00 0.18%
FHLB 0.220% 12/28/23 3130AKKE5 5,000,000 4,999,250.00 4,765,041.67 -234,208.33 11,000.00 0.23%
FHLB 0.370% 3/13/24 3130ANSW1 3,000,000 3,000,000.00 2,841,030.00 -158,970.00 11,100.00 0.39%
FHLB 0.500% 11/24/23 3130APM77 5,000,000 5,000,000.00 4,801,319.44 -198,680.56 25,000.00 0.52%
FHLB 0.650% 11/28/23 3130APW27 4,000,000 4,000,000.00 3,844,663.33 -155,336.67 26,000.00 0.68%
FHLB 0.750% 12/29/23 3130AQ5T6 3,000,000 3,000,000.00 2,877,755.00 -122,245.00 22,500.00 0.78%
FHLB 1.000% 11/15/24 3130APRF4 500,000 477,658.30 467,933.89 -9,724.41 5,000.00 1.07%
FHLB 1.000% 8/12/26 3130ANET3 5,000,000 5,000,000.00 4,445,555.56 -554,444.44 50,000.00 1.12%
FHLB 1.610% 9/04/24 3130AQV26 3,000,000 2,926,443.36 2,864,857.50 -61,585.86 48,300.00 1.69%
FHLB 2.000% 3/28/24 3130ARE31 900,000 900,000.00 873,447.00 -26,553.00 18,000.00 2.06%
FHLB 3.000% 5/17/24 3130ARV65 2,000,000 2,000,000.00 1,963,893.33 -36,106.67 60,000.00 3.06%
FHLB 4.500% 12/12/25 3130ATUC9 1,750,000 1,771,350.00 1,771,070.00 -280.00 78,750.00 4.45%
FHLB 5.000% 12/12/24 3130ATXG7 1,500,000 1,500,000.00 1,503,328.33 3,328.33 75,000.00 4.99%
FHLMC MTN 0.250% 5/19/23 3134GXCB8 7,000,000 7,000,000.00 6,891,021.67 -108,978.33 17,500.00 0.25%
FHLMC MTN 0.300% 11/13/23 3134GXAY0 1,125,000 1,124,741.25 1,081,867.50 -42,873.75 3,375.00 0.31%
FHLMC MTN 0.320% 11/02/23 3134GW6E1 5,000,000 5,000,000.00 4,819,772.22 -180,227.78 16,000.00 0.33%
FHLMC MTN 0.320% 11/24/23 3134GXCA0 3,000,000 3,000,000.00 2,878,676.67 -121,323.33 9,600.00 0.33%
FHLMC MTN 0.375% 4/20/23 3137EAEQ8 5,000,000 5,005,210.83 4,941,047.92 -64,162.91 18,750.00 0.38%
FHLMC MTN 0.450% 9/11/24 3134GWN44 5,000,000 5,000,000.00 4,656,075.00 -343,925.00 22,500.00 0.48%
FHLMC MTN 1.850% 3/22/24 3134GXMM3 3,000,000 3,000,000.00 2,903,872.50 -96,127.50 55,500.00 1.91%
December 31, 2022 10
Holdings Detail as of 12/31/2022
City of South Bend Corporate Agency
Asset CUSIP Quantity Tax Cost YieldEst. IncomeGain/LossMarket Value
Fixed Income
Government Agency (continued)
FHLMC MTN 2.850% 6/21/24 3134GXWD2 5,000,000 4,999,150.00 4,874,358.33 -124,791.67 142,500.00 2.92%
FNMA 0.250% 7/10/23 3135G05G4 5,305,000 5,310,033.89 5,186,897.44 -123,136.45 13,262.50 0.26%
FNMA 0.350% 8/18/23 3135G05T6 5,000,000 5,000,000.00 4,868,515.28 -131,484.72 17,500.00 0.36%
FNMA 0.420% 11/18/24 3135G06E8 2,000,000 1,999,500.00 1,841,243.33 -158,256.67 8,400.00 0.46%
FNMA 0.625% 12/30/25 3135GABA8 2,000,000 2,000,000.00 1,781,494.72 -218,505.28 12,500.00 0.70%
$196,324,623.92 $189,839,387.44 $-6,485,236.48 $2,535,063.50 1.34%Total Fixed Income
Total Portfolio $199,728,390.05 $193,251,197.11 $-6,477,192.94 $2,654,906.70 1.37%
* Market values include accruals.
December 31, 2022 11
Fixed Income Summary as of 12/31/2022
City of South Bend Corporate Agency
Maturity Summary
Maturity (Years)Market Value
% Bond
Holdings
0 - 1 90,663,710.65 47.8%
1 - 3 92,060,396.51 48.5%
3 - 5 7,115,280.28 3.7%
Total $189,839,387.44 100.0%
Asset Class Allocation
Subclass Market Value
% Bond
Holdings
Time Deposits 33,493,495.44 17.6%
US Treasury 48,024,403.55 25.3%
Government
Agency
108,321,488.45 57.1%
Total $189,839,387.44 100.0%
Bond Rating Summary
Credit Rating Market Value
% Bond
Holdings
AAA 156,345,892.00 82.4%
NR 33,493,495.44 17.6%
Total $189,839,387.44 100.0%
Duration Summary
Duration (Years)Market Value
% Bond
Holdings
Less than 1.00 90,914,357.57 47.9%
1.00 - 3.00 93,591,244.31 49.3%
3.00 - 5.00 5,333,785.56 2.8%
Total $189,839,387.44 100.0%
* Market values include accruals.
December 31, 2022 12
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Q3 2025
Q4 2025
All Others
Maturity Ladder as of 12/31/2022
City of South Bend Corporate Agency
Par Value of Maturing Assets Over Time
Par Value of Maturing Assets Per Period
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
0 0 0 0 0 0All Others
2,750,000 8,500,000 5,000,000 250,000 1,000,000 5,250,000Time Deposits
0 15,000,000 0 0 14,000,000 0US Treasury
0 17,000,000 15,305,000 29,125,000 9,900,000 15,000,000Government Agency
2,750,000 40,500,000 20,305,000 29,375,000 24,900,000 20,250,000
Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
0 0 0 0 0 0All Others
3,250,000 2,500,000 2,000,000 3,150,000 0 699,000Time Deposits
10,000,000 5,000,000 0 5,000,000 0 0US Treasury
10,000,000 4,000,000 1,000,000 2,000,000 0 3,750,000Government Agency
23,250,000 11,500,000 3,000,000 10,150,000 0 4,449,000
December 31, 2022 13
12/31/2022 CASH REPORT
14
City of South Bend
Report of Changes in Cash Balance
January 1, 2022 through December 31, 2022
Beginning 2022 2022 Plus/(Minus)Ending Variance
Cash Balance Year to Date Year to Date Accrual Surplus Cash Balance Cash Reserve Above/(Below)
1/1/2022 Revenue Expenditures Adjustments (Deficit) 12/31/2022 Requirement Reserve Req.
City Controlled Funds
101 General Fund 54,208,073 49,257,256 72,880,424 60,529,720 36,906,552 91,114,625 39,954,018 51,160,608
Special Revenue Funds
102 Rainy Day 10,910,077 135,496 - (19,455) 116,041 11,026,118 8,717,131 2,308,987
201 Parks & Recreation 5,865,858 11,788,419 15,530,061 3,016,388 (725,253) 5,140,604 4,955,940 184,665
202 Motor Vehicle Highway 4,772,416 8,676,343 7,976,772 (2,175,310) (1,475,738) 3,296,677 2,963,963 332,714
209 Studebaker-Oliver Revitalizing Grants 692,248 8,454 41,621 (1,221) (34,388) 657,860 - -
210 Economic Development State Grants 26,876 126,873 220,637 (9,015) (102,778) (75,903) - -
211 Dept of Community Investment Operating 394,125 3,409,761 3,512,638 (315,087) (417,963) (23,838) - -
212 Dept of Community Investment Grants 409,818 1,513,528 2,299,431 169,759 (616,143) (206,326) - -
216 Police State Seizures 173,825 22,358 - 2,906 25,265 199,090 11,125 187,965
217 Gift, Donation, Bequest 978,522 259,132 251,930 (90,967) (83,765) 894,757 - -
218 Police Curfew Violations 13,880 178 14,059 - (13,880) - - -
219 Unsafe Building 764,981 78,317 16,910 (4,097) 57,310 822,291 - -
220 Law Enforcement Continuing Education 378,981 845,257 511,556 5,061 338,762 717,743 137,142 580,601
221 Rental Units Regulation 87,416 113,260 74,998 (2,151) 36,110 123,526 - -
227 Loss Recovery 414,099 5,143 - (738) 4,404 418,504 - -
230 Code Enforcement 497,492 3,235,321 3,382,262 (844,907) (991,847) (494,355) - -
249 Local Income Tax - Public Safety 3,844,465 8,467,392 10,248,840 722,985 (1,058,464) 2,786,001 - -
251 Local Road & Street 2,349,376 2,020,548 1,870,111 (119,728) 30,709 2,380,085 - -
257 LOIT Special Distribution 245,630 3,051 - (438) 2,613 248,243 - -
258 Human Rights Federal Grants 426,544 7,835 178,304 59,448 (111,021) 315,523 - -
263 American Rescue Plan 29,536,642 30,079,070 2,312,701 (46,423,551) (18,657,182) 10,879,460 - -
264 COVID-19 Response - 447,892 472,081 (54,964) (79,153) (79,153) - -
265 Local Road & Bridge Grant 704,875 2,370,149 594,751 (3,219) 1,772,179 2,477,054 - -
266 MVH Restricted 2,042,332 3,789,847 3,753,972 (811,046) (775,171) 1,267,161 - -
273 Morris PAC / Palais Royale Marketing 74,809 43 74,852 - (74,809) - - -
274 Morris PAC Self-Promotion 264,010 150 264,160 - (264,010) - - -
280 Police Block Grants 4,162 2 4,165 - (4,162) - - -
289 Haz-Mat 28,102 3,353 200 (50) 3,104 31,206 2,500 28,706
291 Indiana River Rescue 360,311 130,210 83,975 (16,975) 29,261 389,572 27,340 362,232
292 Police Grants 26,716 - 26,716 - (26,716) - - -
294 Regional Police Academy 146,328 83 146,411 - (146,328) - - -
295 COPS MORE Grant 45,349 30 24,566 - (24,536) 20,813 - -
299 Police Federal Drug Enforcement 60,237 118,043 59,979 (90,569) (32,505) 27,732 19,625 8,107
404 Local Income Tax - Certified Shares 18,631,245 11,382,162 13,034,712 (2,044,989) (3,697,539) 14,933,706 8,798,204 6,135,502
408 Local Income Tax - Economic Development 24,795,353 12,097,921 13,152,252 179,804 (874,528) 23,920,825 14,972,339 8,948,487
410 Urban Development Action Grant 27,182 389,037 18,000 (701) 370,335 397,517 - -
655 Project ReLeaf 282,057 457,791 358,744 21,962 121,008 403,065 112,427 290,638
705 Police K-9 Unit 2,435 1 2,436 - (2,435) - - -
730 City Cemetery 30,218 375 - (54) 321 30,540 - -
731 Bowman Cemetery 475,369 5,904 - (848) 5,056 480,425 400,000 80,425
754 Industrial Revolving Fund 3,700,843 5,355,357 3,598,247 (6,004,757) (4,247,647) (546,805) - -
Total Special Revenue Funds 114,485,206 107,344,089 84,113,050 (54,856,525) (31,625,486) 82,859,719 41,117,735 19,449,029
Debt Service Funds
312 2017 Parks Bond Debt Service 184,163 664,820 1,169,365 516,954 12,409 196,572 - -
350 2018 Fire Station #9 Bond Debt Service - 344,156 344,156 - - - - -
672 Century Center Energy Conservation Debt Svc 196,702 383,046 402,367 (50,885) (70,206) 126,496 - -
752 South Bend Redevelopment Authority 242,425 3,057,619 3,040,677 (259,367) (242,425) - - -
755 South Bend Building Corporation 224,375 2,737,077 2,749,716 (211,796) (224,435) (60) (60) -
756 2015 Smart Streets Bond Debt Service 1,742,699 1,715,084 1,711,344 (1,746,439) (1,742,699) - - -
757 2015 Parks Bond Debt Service 587,763 343,179 372,556 (558,386) (587,763) - - -
760 2017 Eddy Street Commons Bond Debt Service 3,668,611 1,926,548 1,926,375 (3,668,784) (3,668,611) - 2,500,000 (2,500,000)
Total Debt Service Funds 6,846,739 11,171,530 11,716,557 (5,978,704) (6,523,731) 323,008 2,499,940 (2,500,000)
Capital Funds
287 Fire Department Capital 2,758,339 3,219,969 2,282,888 (1,581,006) (643,925) 2,114,414 - -
401 Coveleski Stadium Capital 814 21,196 17,784 (0) 3,412 4,226 - -
406 Cumulative Capital Development 286,746 288,004 487,547 225,721 26,178 312,924 - -
407 Cumulative Capital Improvement 651,096 102,759 445,567 90,622 (252,186) 398,910 - -
412 Major Moves Construction 1,889,193 550,947 1,047,902 180,062 (316,893) 1,572,300 - -
413 Professional Sports Convention Development Area 775,632 1,788,381 1,117,850 20,139 690,670 1,466,302 - -
416 Morris Performing Arts Center Capital 1,912,926 6,510,003 6,895,366 (6,302,300) (6,687,663) (4,774,737) - -
450 Palais Royale Historic Preservation 93,481 15,485 - (181) 15,305 108,786 - -
451 2018 Fire Station #9 Bond Capital 316,090 3,926 - (564) 3,362 319,452 - -
453 Zoo Bond Capital - 5,891,985 806,213 (5,085,771) - - - -
455 2021 Infrastructure Bond Capital 3,836,482 33,923 1,550,366 (18,028) (1,534,471) 2,302,010 - -
471 2017 Parks Bond Capital 4,259,726 41,749 1,608,708 (104,855) (1,671,814) 2,587,911 - -
750 Equipment/Vehicle Leasing 347,697 - 347,697 - (347,697) - - -
759 2017 Eddy Street Commons Bond Capital 25,763 25,565 - (51,328) (25,763) - - -
Total Capital Funds 17,153,985 18,493,891 16,607,889 (12,627,489) (10,741,487) 6,412,498 - -
15
City of South Bend
Report of Changes in Cash Balance
January 1, 2022 through December 31, 2022
Beginning 2022 2022 Plus/(Minus)Ending Variance
Cash Balance Year to Date Year to Date Accrual Surplus Cash Balance Cash Reserve Above/(Below)
1/1/2022 Revenue Expenditures Adjustments (Deficit) 12/31/2022 Requirement Reserve Req.
Enterprise Funds
600 Consolidated Building 2,102,372 1,750,614 1,692,941 (48,441) 9,232 2,111,604 511,713 1,599,890
601 Parking Garages 907,380 757,374 845,694 29,642 (58,678) 848,702 353,374 495,328
602 Morris Performing Arts Center Operations - 1,601,025 1,023,295 (142,251) 435,479 435,479 168,358 267,121
610 Solid Waste Operations 906,471 6,717,856 7,360,466 43,838 (598,772) 307,699 710,676 (402,978)
611 Solid Waste Capital 779,163 2,530,214 1,739,934 (1,580,949) (790,670) (11,507) - -
620 Water Works Operations 6,550,457 19,370,989 20,843,316 770,522 (701,805) 5,848,652 1,265,680 4,582,972
622 Water Works Capital 9,672,979 3,720,571 2,409,390 (573,509) 737,672 10,410,650 - -
624 Water Works Customer Deposit 1,279,314 10,755 - 25,442 36,197 1,315,511 1,315,511 -
625 Water Works Sinking (Debt Service)- 2,233,625 195,723 (3,039) 2,034,863 2,034,863 - -
626 Water Works Bond Reserve 1,422,804 11,674 - (36,496) (24,821) 1,397,982 1,397,982 -
629 Water Works Operations & Maintenance Reserve 2,912,652 39,322 - (5,199) 34,123 2,946,775 3,111,318 (164,543)
640 Sewer Repair Insurance 2,003,861 716,299 760,337 (7,860) (51,898) 1,951,963 248,267 1,703,696
641 Sewage Works Operations 13,825,371 38,104,703 37,243,708 1,596,568 2,457,564 16,282,935 2,325,575 13,957,360
642 Sewage Works Capital 14,359,708 3,564,013 3,298,067 (36,339) 229,607 14,589,315 - -
643 Sewage Works Operations & Maintenance Reserve 5,550,801 45,549 - (9,857) 35,692 5,586,493 5,290,960 295,534
649 Sewage Sinking (Debt Service)- 9,311,673 7,513,373 (13,000) 1,785,300 1,785,300 - -
653 Sewage Debt Service Reserve 3,749,760 30,770 - (6,659) 24,111 3,773,871 3,773,871 -
654 Sewage Works Customer Deposit 903,840 9,135 - 272,466 281,601 1,185,442 1,185,442 -
667 Storm Sewer 1,604,154 1,057,530 1,356,570 (19,421) (318,461) 1,285,693 - -
670 Century Center Operations 194,350 4,660,916 3,676,799 (2,930,233) (1,946,115) (1,751,765) 1,023,739 (2,775,504)
671 Century Center Capital 983,710 3,258 - (67) 3,191 986,901 800,000 186,901
Total Enterprise Funds 69,709,146 96,247,866 89,959,612 (2,674,842) 3,613,411 73,322,558 23,482,468 73,322,558
Internal Service Funds
222 Central Services 658,666 8,650,518 8,970,553 (32,853) (352,887) 305,778 887,373 (581,595)
226 Liability Insurance 6,100,867 2,914,259 4,411,791 451,604 (1,045,928) 5,054,939 3,251,539 1,803,400
278 Police Take Home Vehicle 698,546 49,472 - 2,460 51,931 750,477 750,000 477
279 IT / Innovation / 311 Call Center 3,482,865 8,537,778 8,349,852 962,002 1,149,929 4,632,794 - -
711 Self-Funded Employee Benefits 10,786,414 15,734,141 15,274,008 (537,985) (77,851) 10,708,563 4,599,966 6,108,597
713 Unemployment Compensation - 77,256 24,444 25,066 77,878 77,878 20,000 57,878
714 Parental Leave 226,711 239,031 74,240 19,016 183,807 410,517 20,308 390,210
Total Internal Service Funds 21,954,068 36,202,455 37,104,887 889,310 (13,121) 21,940,947 9,529,185 7,778,967
Fiduciary Funds
701 Fire Pension 420,180 4,072,807 3,785,909 (347,000) (60,102) 360,078 459,189 (99,111)
702 Police Pension 560,923 6,020,254 5,475,824 (488,838) 55,592 616,515 605,774 10,741
718 State Tax Withholding Fund 795,612 - - (416,906) (416,906) 378,707 378,707 -
725 Morris / Palais Box Office 791,599 - - (2,132,064) (2,132,064) (1,340,466) (1,340,466) -
726 Police Distributions Payable 1,641,403 - - (1,641,403) (1,641,403) - - -
Total Fiduciary Funds 4,209,716 10,093,061 9,261,733 (5,026,210) (4,194,883) 14,833 103,204 (88,370)
Total City Controlled Funds 288,566,933 328,810,148 321,644,152 (19,744,741) (12,578,744) 275,988,189 116,686,550 149,122,792
Redevelopment Commission Controlled Funds
Tax Increment Financing Funds
324 TIF - River West Development Area 33,713,041 10,725,346 15,699,947 6,412,295 1,437,694 35,150,735 - -
422 TIF - West Washington 1,235,031 167,352 105,690 147,047 208,709 1,443,740 - -
429 TIF - River East Development Area (NE Dev)9,506,445 2,574,648 1,160,054 978,875 2,393,469 11,899,914 - -
430 TIF - Southside Development Area #1 14,473,182 1,693,859 1,968,593 964,284 689,550 15,162,732 - -
435 TIF - Douglas Road 257,579 197,127 210,455 113,682 100,355 357,934 - -
436 TIF - River East Residential Area (NE Res)5,429,968 3,595,145 4,902,703 2,716,364 1,408,806 6,838,775 - -
Total Tax Increment Financing Funds 64,615,246 18,953,477 24,047,441 11,332,547 6,238,583 70,853,829 - -
Redevelopment Funds
433 Redevelopment General 3,187,994 1,412,799 791,917 (54,646) 566,236 3,754,230 347,821 3,406,410
439 Certified Technology Park 11,145 138 - (20) 119 11,264 - -
452 2018 TIF Park Bond Capital 2,433,236 30,016 23,208 (137,193) (130,385) 2,302,851 - -
454 Airport Urban Enterprise Zone 410,393 5,097 - (732) 4,365 414,758 - -
Total Redevelopment Funds 6,042,769 1,448,050 815,125 (192,591) 440,335 6,483,103 347,821 3,406,410
Debt Service Funds
315 Airport 2003 Debt Reserve 1,040,462 8,538 - (1,848) 6,690 1,047,153 1,047,153 -
328 SBCDA 2003 Debt Reserve 1,739,495 14,274 - (3,089) 11,185 1,750,680 1,750,680 -
351 2018 TIF Park Bond Debt Service 1,035,750 12,863 - (1,847) 11,016 1,046,766 1,046,766 -
352 2019 South Shore Double Tracking Debt Service 9,443 1,035,003 1,029,750 (14,696) (9,443) - - -
353 2020 TIF Library Bond Debt Service Reserve 326,944 15 16 (326,943) (326,944) - - -
Total Debt Service Funds 4,152,094 1,070,693 1,029,766 (348,422) (307,495) 3,844,599 3,844,599 -
Total Redevelopment Commission Funds 74,810,109 21,472,220 25,892,332 10,791,534 6,371,423 81,181,531 4,192,419 3,406,410
Grand Total 363,377,042 350,282,368 347,536,484 (8,953,206) (6,207,321) 357,169,720 120,878,969 152,529,202
16
INTEREST EARNINGS SUMMARY
17
City of South Bend, Indiana
Interest Earnings Summary
Fiscal Year Ended December 31, 2022
1st Source 1st Source
Month Month Investment Checking Other Bank Cash with Total
Earned Received Interest Interest Accounts (1) Fiscal Agent (2) Interest Received
Dec 2021 Jan 2022 $160,442.70 $33,528.24 $52.92 $62.83 $194,086.69
Jan 2022 Feb 2022 29,517.93 36,226.16 52.06 148.23 65,944.38
Feb 2022 Mar 2022 63,705.96 29,471.53 49.33 64.51 93,291.33
Mar 2022 Apr 2022 43,574.09 43,288.65 32.99 127.93 87,023.66
Apr 2022 May 2022 25,347.01 53,252.19 220.31 25,734.37 104,553.88
May 2022 June 2022 284,554.78 93,789.52 661.65 231.42 379,237.37
June 2022 July 2022 38,002.28 169,966.90 1,961.41 357.36 210,287.95
July 2022 Aug 2022 275,225.77 668,962.01 3,934.89 1,285.76 949,408.43
Aug 2022 Sep 2022 436,009.11 377,896.79 11,522.27 1,373.53 826,801.70
Sep 2022 Oct 2022 17,154.39 442,687.84 9,963.62 552.45 470,358.30
Oct 2022 Nov 2022 147,062.93 479,439.67 11,042.37 1,036.44 638,581.41
Nov 2022 Dec 2022 292,606.16 548,341.27 - - 840,947.43
$1,813,203.11 $2,976,850.77 $39,493.82 $30,974.83 $4,860,522.53
(1) Interest earned on cash held at various banks including Centier Bank, Key Bank, and other.
(2) Interest earned on cash held in escrow accounts at Bank of New York Mellon and US Bank, and other.
18
Year Earnings
% Change
Year to Year
2018 Actual 4,868,861 ------
2019 Actual 6,643,916 36.5%
2020 Actual 3,578,226 -46.1%
2021 Actual 1,727,224 -51.7%
2022 Actual 4,860,523 181.4%
Notes to Interest Earnings Summary:
The City of South Bend earns interest on checking account balances, certificates of deposit,
repayment of loans on economic development projects, advances from the Major Moves Fund to
the Northeast Residential and Douglas Road TIF Funds, and short-term investments.
Investment and interest earnings are reported net of fees.
Total par value of investment portfolio at 1st Source Bank:
May 11, 2011 – Investment account opened $150,000,000
January, 2013 175,000,000
January, 2017 185,000,000
April, 2021 200,000,000
The increase in 2022 interest income is related to investments with lower yields maturing allowing
for re-investment in higher yield securities.
In 2022 the accounting methodology for investments was changed to accrue interest in the month it
is earned rather than in the month of receipt. This change allows financial reports to better reflect
the value of interest earned in relation to the cash and investment balances of the period.
$0.0 M
$1.0 M
$2.0 M
$3.0 M
$4.0 M
$5.0 M
$6.0 M
$7.0 M
2018 Actual 2019 Actual 2020 Actual 2021 Actual 2022 Actual
Interest Earnings 2018-2022
19
City of South Bend, Indiana
Interest Earnings Summary
Fiscal Years 2018 through 2022
December 31, 2022
FUND
#
FUND NAME 2018
ACTUAL
2019
ACTUAL
2020
ACTUAL
2021
ACTUAL
2022
ACTUAL
101 General Fund $487,006 $724,748 $492,302 $290,597 $576,610
102 Rainy Day 186,733 246,194 137,687 64,091 151,774
201 Parks & Recreation 84,863 126,119 21,738 20,758 37,000
202 Motor Vehicle Highway 139,982 146,469 59,007 23,518 52,030
203 Recreation Nonreverting 15,514 - - - -
209 Studebaker-Oliver Revitalizing
Grants
16,482 21,005 10,808 4,318 9,389
210 Economic Development State
Grants
11,863 7,773 749 160 51
211 Dept of Community Investment
Operating
14,360 13,570 12,986 6,023 3,006
212 Dept of Community Investment
Grants
1,163 2,852 - - -
216 Police State Seizures 3,755 5,396 2,862 993 2,551
217 Gift, Donation, Bequest 2,527 12,695 11,424 6,884 13,750
218 Police Curfew Violations 236 306 167 82 8
219 Unsafe Building 6,040 14,604 11,167 4,812 11,010
220 Law Enforcement Continuing
Education
10,040 9,307 5,560 2,229 8,766
221 Rental Units Regulation 140 279 645 728 1,596
222 Central Services 10,934 16,454 16,118 6,268 7,009
224 Central Services Capital 2,780 3,129 139 40 -
226 Liability Insurance 71,401 97,578 74,635 36,491 79,266
227 Loss Recovery 13,044 14,210 7,534 2,515 5,761
230 Code Enforcement Fund - - 2,492 941 1,438
249 Local Income Tax - Public Safety 22,716 65,117 46,805 25,015 30,151
251 Local Road & Street 71,117 111,308 65,026 18,850 34,259
257 LOIT Special Distribution 38,179 10,229 1,950 1,469 3,417
258 Human Rights Federal Grant 8,987 10,376 3,655 2,417 4,033
263 American Rescue Plan - - - 81,618 707,757
265 Local Road & Bridge Grant 6,373 8,641 9,466 4,832 23,684
266 MVH Restricted Fund -12,367 15,230 9,704 23,918
273 Morris PAC / Palais Royale
Marketing
1,041 1,506 945 453 43
20
274 Morris PAC Self-Promotion 814 3,175 2,576 1,355 150
278 Police Take Home Vehicle 13,630 17,664 8,942 4,038 10,132
279 IT / Innovation / 311 Call Center 31,487 54,428 34,050 14,598 53,385
280 Police Block Grants 71 94 53 24 2
281 Economic Develop Commission-
Revenue Bonds
259 - - - -
287 Fire Department Capital 81,118 71,960 17,117 8,474 25,168
288 Emergency Medical Services
Operating
49,138 49,036 20,548 - -
289 Haz-Mat 456 608 355 165 403
291 Indiana River Rescue 2,777 5,807 4,146 1,993 5,011
294 Regional Police Academy 1,739 2,588 1,587 819 83
295 COPS MORE Grant 2,334 4,036 1,281 432 30
299 Police Federal Drug Enforcement 2,654 3,131 723 192 1,002
312 2017 Parks Bond Debt Service 763 565 603 500 253
313 Football Hall of Fame Debt Service 141 27 - - -
315 Airport 2003 Debt Reserve 18,760 24,249 13,309 6,133 10,084
317 Coveleski Debt Service Reserve 9,396 1,076 - - -
324 TIF - River West Development
Area
498,346 622,691 321,099 153,650 431,088
328 SBCDA 2003 Debt Reserve 31,363 40,541 22,251 10,253 16,859
351 2018 TIF Park Bond Debt Service -23,374 13,071 6,085 14,409
352 2019 South Shore Double Tracking
Debt Service
- - 13 3 3
353 2020 TIF Library Bond Debt
Service Reserve
- - 2 16 15
377 Professional Sports Development 37 1,201 - - -
401 Coveleski Stadium Capital 1,074 718 249 58 25
404 Local Income Tax - Certified
Shares
186,016 296,751 162,840 87,126 205,239
405 Park Nonreverting Capital 1,200 - - - -
406 Cumulative Capital Development 8,622 8,944 1,673 928 2,505
407 Cumulative Capital Improvement 5,687 11,646 8,167 3,682 7,039
408 Local Income Tax - Economic
Development
264,870 393,399 234,476 128,951 353,542
410 Urban Development Action Grant 6,352 625 580 172 4,046
412 Major Moves Construction 168,342 161,549 26,326 9,556 26,999
413 Professional Sports Convention
Development Area
- - - 218 14,387
416 Morris Performing Arts Center
Capital
7,250 9,243 5,695 1,057 8,113
422 TIF - West Washington 38,510 37,241 13,049 7,164 18,135
425 Redevelopment Retail Area
(Leighton Plaza)
2,729 206 - - -
429 TIF - River East Development Area
(NE Dev)
161,666 216,095 95,624 39,992 146,645
21
430 TIF - Southside Development Area
#1
150,223 210,559 128,384 75,461 200,851
433 Redevelopment General 2,969 18,819 17,823 13,014 44,323
435 TIF - Douglas Road 3,533 4,666 1,916 687 3,018
436 TIF - River East Residential Area
(NE Res)
5,385 39,283 30,109 19,471 56,636
439 Certified Technology Park 11,138 11,102 141 65 155
450 Palais Royale Historic Preservation 2,143 2,523 1,055 493 1,417
451 2018 Fire Station #9 Bond Capital 56,076 40,384 4,604 1,857 4,397
452 2018 TIF Park Bond Capital -186,070 45,452 15,033 33,275
453 2018 Zoo Bond Capital -22,489 293 -184
454 Airport Urban Enterprise Zone 7,024 9,261 5,179 2,411 5,709
455 2021 Infrastructure Bond Capital - - - 21,221 37,031
471 2017 Parks Bond Capital 189,838 260,532 108,955 31,461 45,200
600 Consolidated Building Fund 47,231 45,340 27,060 12,194 28,301
601 Parking Garages 23,414 26,939 13,473 4,803 11,309
602 Morris Performing Arts Center - - - - 9,447
610 Solid Waste Operations 9,887 10,429 4,185 781 3,406
611 Solid Waste Capital 1,666 5,160 1,210 34 1,510
620 Water Works Operations 53,391 72,870 46,545 28,409 95,051
622 Water Works Capital 36,395 73,538 68,626 50,372 153,064
624 Water Works Customer Deposit 27,299 34,493 16,448 7,493 12,668
625 Water Works Sinking (Debt
Service)
15,871 25,708 10,069 2,818 18,171
626 Water Works Bond Reserve 25,805 33,355 18,099 8,191 13,738
629 Water Works Operations &
Maintenance Reserve
47,942 66,676 37,210 17,168 28,377
640 Sewer Repair Insurance 34,679 48,681 27,444 12,053 27,093
641 Sewage Works Operations 238,326 325,226 143,362 69,545 247,071
642 Sewage Works Capital 153,406 244,500 175,995 87,851 201,511
643 Sewage Works Operations &
Maintenance Reserve
96,204 128,822 71,004 32,719 53,797
649 Sewage Sinking (Debt Service) 87,659 115,049 46,414 19,986 47,494
653 Sewage Debt Service Reserve 65,897 87,669 20,901 271 36,341
654 Sewage Works Customer Deposit -1,430 6,318 4,446 10,905
655 Project ReLeaf 14,362 13,753 5,792 2,322 4,980
659 Sewer Bond 2011 1 - - - -
661 Sewer Bond 2012 3,229 - - - -
667 Storm Sewer Fund -836 5,336 7,492 22,740
670 Century Center Operations -6 25 54 426
671 Century Center Capital 2,026 12,966 1,931 98 5,748
672 Century Center Energy 110,118 108,178 3,117 1,574 2,773
22
Conservation Debt Service
677 Football Hall of Fame Capital 7,804 2,311 - - -
701 Fire Pension 7,526 7,304 3,571 1,809 6,207
702 Police Pension 15,005 14,180 5,961 2,305 9,558
705 Police K-9 Unit 52 55 31 14 1
711 Self-Funded Employee Benefits 212,822 251,340 127,164 62,791 153,013
713 Unemployment Compensation 3,874 4,479 1,922 69 899
714 Parental Leave Fund 481 805 883 1,125 4,817
730 City Cemetery Trust 517 682 380 178 420
731 Bowman Cemetery -10,724 5,981 2,793 6,613
750 Equipment/Vehicle Leasing 31,473 16,775 690 17 -
751 2015 Parks Bond Capital 4,813 840 - - -
752 South Bend Redevelopment
Authority
4,699 6,383 2,351 71 2,119
753 2015 Smart Streets Bond Capital 1,060 124 - - -
754 Industrial Revolving Fund 206,484 263,452 -380 37,988
755 South Bend Building Corporation 10,314 15,243 3,478 58 1,077
756 2015 Smart Streets Bond Debt
Service
4,588 4,629 869 91 84
757 2015 Parks Bond Debt Service 2,787 3,527 807 47 846
759 2017 Eddy Street Commons Bond
Capital
121 65 306,537 1 25,565
760 2017 Eddy Street Commons Bond
Debt Service
6,428 8,792 1,623 184 173
Total Interest $4,868,861 $6,643,916 $3,578,226 $1,727,224 $4,860,523
23
CASH MANAGEMENT &
INVESTMENT POLICIES
24
ADMINISTRATION & FINANCE POLICIES
City of South Bend Cash Management and Investments Policy
Section 1. Authority
The City Controller (the “Controller”) of the City of South Bend, Indiana (the “City”) adopts this statement
of policy (this “Policy”) pursuant to the Controller’s authority as the head of the Administration and
Finance Department (the “Department”) under South Bend Municipal Code Section 2-21(b).
Section 2. Background and Purposes
The purpose of this Policy and the accompanying supplements is to set forth policies and procedures related
to the City’s management of cash and investments. The City is permitted to invest funds in accordance with
Indiana Code 5-13-9.
Maintaining adequate access to liquid assets (cash and investments) is of paramount importance to the City.
The City’s liquidity is a major component of its overall fiscal health. The ability to access adequate cash
reserves when needed is important for maintaining service levels during periods of lowered tax revenue or
for ensuring that non-discretionary expenses (such as debt service) are adequately funded. Additionally,
maintaining strong cash reserves is one of the foundations of the City’s General Obligation Bond Rating,
which is currently one of the highest in the state.
In addition to the importance of maintaining strong liquidity, it is important that the City strive to increase
its investment and interest income, within the confines of Indiana law and prudent financial management.
Indiana law strictly limits the types of investments that the City is permitted to hold, which constrains
income opportunity but also reduces risk of investment loss. This Policy will define the City’s investment
philosophy and procedures designed to ensure compliance with all applicable laws and regulations.
The City recognizes that cash management procedures (including receipt, deposit, and reconciliation) carry
inherent risk that must be mitigated with appropriate internal control procedures. This Policy will outline
these internal controls that must be followed to protect employees and ensure that the City remains a good
steward of taxpayer dollars.
The City’s financial system is Microsoft Dynamics 365 for Finance and Operations (“DFO”). DFO serves
as the sole record of cash balances, cash receipts, and cash payments in the City. Any cash receipts that are
initially recorded in a separate system must also be recorded in DFO. See the City of South Bend Revenue
Recognition Policy for more information.
Section 3. Roles and Responsibilities
Controller
The Controller is responsible for the overall cash management and investment strategy for the City. It is the
Controller’s responsibility to define acceptable cash reserve requirements and enforce corrective actions (as
prescribed in this Policy) when cash reserve requirements are not met. Additionally, it is the Controller’s
responsibility to oversee the City’s investments, including hiring and providing oversight to outside
investment management consultants. Finally, the Controller is responsible for designing cash management
procedures (including cash receipt and reconciliation) that mitigate inherent risks of cash handling through
strong internal control. In fulfilling the Controller’s responsibilities under this Policy, the Controller is
assisted by the Deputy City Controller and may delegate all appropriate authority to the Deputy City
Controller to achieve the purposes of this Policy.
25
Director of Treasury
Under the direction of the Controller, the City’s Director of Treasury is responsible for the day-to-day
management of the City’s cash and investment portfolio. This includes performing all bank reconciliations
and resolving discrepancies, as well as serving as the point of contact for City employees, bank
representatives, or investment management professionals on matters of cash handling, cash management, or
investment management. The Director of Treasury is also responsible for ensuring that correct cash
handling procedures are followed.
Directors of Department Finance
Directors of Department Finance are responsible for ensuring that cash receipts are correctly entered into
DFO as they are received by various members of their assigned departments. Additionally, Directors of
Department Finance work with the Director of Treasury to ensure that proper cash handling procedures are
followed in each department and to identify cash receipts that are received by the Director of Treasury
(especially those received via wire transfer or automated clearing house (ACH)).
Section 4. Establishment of Procedures
Except as otherwise provided, it is the Controller’s responsibility to establish, direct, modify, and otherwise
maintain, from time to time as the Controller may determine in the Controller’s discretion, the procedures
for carrying out the administrative and financial activities associated with the subject matter of this
Policy. Due to the fundamental importance of maintaining strong cash reserves and the inherent risks
associated with handling cash reserves, the Controller has established, both within and without DFO,
certain rules and procedures for all divisions of the City to protect the City’s financial position and safeguard
the City’s assets, including appropriate internal control measures in accordance with the City of South Bend
Internal Control Policy and its supplemental materials. Those rules and procedures are included as
supplements to this Policy and may be amended, supplemented, or eliminated from time to time as the
Controller may deem appropriate, without the need for further approval of the Mayor or amendment to this
Policy.
Section 5. Effective Date and Approval
This Policy is effective on May 1, 2021, and supersedes all prior policies addressing the same subject matter.
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ADMINISTRATION & FINANCE POLICIES
Supplement 202 – Investments
The City shall invest excess cash in various investment vehicles as allowed by Indiana law. The City shall
make all investments, in both Deposit and Investment Accounts, in accordance with the terms and
limitations of Indiana Code 5-13-9. The current authorization for the City to engage in these investment
activities comes from Ordinance No. 10909-22. The City's practice is to obtain this authorization via an
ordinance on an annual basis, so as to maintain the maximum investment flexibility under Indiana Code 5-
13-9.
Board of Finance
The local Board of Finance (as defined in Indiana Code 5-13-7) will review the investment policy and will
receive an investment report on an annual basis coincident with the Annual Meeting of the Board of
Finance, held after the 1st Monday in January and before January 31st.
Valuation of Investments
Currently, the total amount invested is $200 million. On a monthly basis, the City’s investment custodian
(currently 1st Source) transfers any gain in market value over $200 million or direct dividends paid from
investments into the City’s depository bank account. This investment income is allocated using the
procedures described in Supplement 203.
The City will not track the current fair market value of investments on a monthly basis in DFO. Rather, the
City's books will be adjusted for FMV of investments on an annual basis only.
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ADMINISTRATION & FINANCE POLICIES
Supplement 208 - Cash Reserve Requirements
The City of South Bend has established the following cash reserve guidelines to ensure adequate liquidity.
Cash reserves are defined as cash balances on hand less outstanding encumbrances. “Annual expenditures”
in each fund do not include capital expenditures.
Fund Fund Name Cash Reserve Policy
101 General Fund 50% of annual expenditures
102 Rainy Day 3% of prior year operational expenditures in Civil City
funds, excluding interfund transfers
201 Parks & Recreation 25% of annual expenditures
202 Motor Vehicle Highway 25% of annual expenditures
209 Studebaker/Oliver Reverting Grants No reserve requirement - Grant fund - spend down to zero
210 Department of Community Investment
State Grants No reserve requirement - Grant fund - spend down to zero
211 Department of Community Investment
Operating No reserve requirement
212 Department of Community
Investment Grants No reserve requirement - Grant fund - spend down to zero
216 Police State Seizures 25% of annual expenditures
217 Gift, Donation, Bequest No reserve requirement
219 Unsafe Building No reserve requirement
220 Law Enforcement Continuing
Education 25% of annual expenditures
221 Rental Units Regulation No reserve requirement
222 Central Services No reserve requirement
226 Liability Insurance 50% of annual expenditures
227 Loss Recovery No reserve requirement
230 Code Enforcement No reserve requirement
249 Local Income Tax - Public Safety No reserve requirement
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Fund Fund Name Cash Reserve Policy
251 Local Road & Street 25% of annual expenditures
257 LOIT 2016 Special Distribution No reserve requirement
258 Human Rights Federal Grants No reserve requirement - Grant fund - spend down to zero
263 American Rescue Plan No reserve requirement - Grant fund - spend down to zero
264 COVID-19 Response No reserve requirement
265 Local Road & Bridge Matching Grant No reserve requirement - Grant fund - spend down to zero
266 MVH Restricted No reserve requirement
278 Police Take Home Vehicle $750,000 minimum
279 IT / Innovation / 311 Call Center No reserve requirement
287 Fire Department Capital No reserve requirement - Capital fund - spend down to zero
289 Haz-Mat 25% of annual expenditures
291 Indiana River Rescue 25% of annual expenditures
299 Police Federal Drug Enforcement 25% of annual expenditures
312 2017 Parks Bond Debt Service No reserve requirement
315 Airport 2003 Debt Reserve 100% of debt service reserve per bond covenants
324 TIF - River West Development Area No reserve requirement
328 SBCDA 2003 Debt Reserve 100% debt service reserve per bond covenants
350 2018 Fire Station #9 Bond Debt
Service No reserve requirement
351 2018 TIF Parks Bond Debt Service 100% debt service reserve per bond covenants
352 2019 South Shore Double Tracking
Debt Service No reserve requirement
353 2020 TIF Library Bond Debt Service
Reserve 100% debt service reserve per bond covenants
401 Coveleski Stadium Capital No reserve requirement - Capital fund - spend down to zero
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Fund Fund Name Cash Reserve Policy
404 Local Income Tax - Certified Shares 50% of annual expenditures
406 Cumulative Capital Development No reserve requirement - Capital fund - spend down to zero
407 Cumulative Capital Improvement No reserve requirement - Capital fund - spend down to zero
408 Local Income Tax - Economic
Development 50% of annual expenditures
410 Urban Development Action Grant
(UDAG) No reserve requirement - Grant fund - spend down to zero
412 Major Moves Construction No reserve requirement - Capital fund - spend down to zero
413 Professional Sports Convention
Development Area (PSCDA) No reserve requirement - Capital fund - spend down to zero
416 Morris Performing Arts Center Capital No reserve requirement - Capital fund - spend down to zero
422 TIF - West Washington No reserve requirement
429 TIF - River East Development Area
(NE Dev) No reserve requirement
430 TIF - Southside Development Area #1 No reserve requirement
433 Redevelopment General 25% of annual expenditures
435 TIF - Douglas Road No reserve requirement
436 TIF - River East Residential (NE Res) No reserve requirement
439 Certified Technology Park No reserve requirement
450 Palais Royale Historic Preservation No reserve requirement
451 2018 Fire Station #9 Bond Capital No reserve requirement - Bond capital fund - spend down
to zero
452 2018 TIF Parks Bond Capital No reserve requirement - Bond capital fund - spend down
to zero
453 Zoo Bond Capital No reserve requirement - Bond capital fund - spend down
to zero
454 Airport Urban Enterprise Zone No reserve requirement
455 2021 Infrastructure Bond Capital No reserve requirement - Bond capital fund - spend down
to zero
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Fund Fund Name Cash Reserve Policy
471 2017 Parks Bond Capital No reserve requirement - Bond capital fund - spend down
to zero
600 Consolidated Building Department 25% of annual expenditures
601 Parking Garages 25% of annual expenditures
602 Morris Performing Arts Center
Operations 10% of annual expenditures
610 Solid Waste Operations 10% of annual expenditures
611 Solid Waste Capital No reserve requirement - Capital fund - spend down to zero
620 Water Works Operations 5% of annual expenditures
622 Water Works Capital No reserve requirement - Capital fund - spend down to zero
624 Water Works Customer Deposit 100% cash reserves for customer deposits
625 Water Works Sinking (Debt Service) No reserve requirement
626 Water Works Bond Reserve 100% cash reserves per bond covenants
629 Water Works Operations &
Maintenance Reserve
16.67% of annual operating expenses in fund 620, net of
transfers
640 Sewer Repair Insurance 25% of annual expenditures
641 Sewage Works Operations 5% of annual expenditures
642 Sewage Works Capital No reserve requirement - Capital fund - spend down to zero
643 Sewage Works Operations &
Maintenance Reserve
16.67% of annual operating expenses in fund 641, net of
transfers
649 Sewage Works Sinking (Debt Service) No reserve requirement
653 Sewage Works Debt Service Reserve 100% cash reserves per bond covenants
654 Sewage Works Customer Deposit 100% cash reserves for customer deposits
655 Project ReLeaf (Leaf Pickup and
Removal) 25% of annual expenditures
667 Storm Sewer No reserve requirement - Capital fund - spend down to zero
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Fund Fund Name Cash Reserve Policy
670 Century Center Operations 25% of annual expenditures
671 Century Center Capital $800,000 minimum
672 Century Center Energy Conservation
Bond No reserve requirement
701 Firefighters Pension 10% of annual expenditures
702 Police Pension 10% of annual expenditures
709 Payroll Clearing No reserve requirement – clearing fund
711 Self-Funded Employee Benefits 25% of annual expenditures
713 Unemployment Compensation 25% of annual expenditures
714 Parental Leave 8% of annual expenditures – 1 month of expenditures
718 State Tax Withholding Fund 100% cash reserves
725 Morris / Palais Box Office 100% cash reserves
726 Police Distributions Payable 100% cash reserves
730 City Cemetery 25% of annual expenditures
731 Bowman Cemetery $400,000 minimum
750 Equipment/Vehicle Leasing No reserve requirement - Capital lease fund - spend down
to zero
752 South Bend Redevelopment Authority 100% cash reserves per bond covenants
754 Industrial Revolving Fund No City reserve requirement; there are program
requirements
755 South Bend Building Corporation 100% cash reserves per bond covenants
756 2015 Smart Streets Bond Debt Service 100% cash reserves per bond covenants
757 2015 Parks Bond Debt Service 100% cash reserves per bond covenants
759 2017 Eddy Street Commons Bond
Capital
No reserve requirement - Bond capital fund - spend down
to zero
760 2017 Eddy Street Commons
Bond Debt Service $2,500,000 minimum per bond covenant
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Paul W. Gifford, Jr., CFA
office: 574 235-2751
mobile: 574 274-2246
GiffordP@1stsource.com
Title:Senior Vice President and
Chief Investment Officer
Education: B.S. Finance (magna cum laude)
University of Minnesota - Mankato
Mankato, Minnesota
Background: Paul joined the Investment
Management Group in 2000 as the Senior Fixed
Income Manager and in 2008 became the Chief
Investment Officer. He leads the team’s strategy,
construction and implementation of client portfolios.
Prior to joining 1st Source, he worked for Bremer
Trust, N.A in Minnesota. Since beginning his
investment career in 1998, Paul has gained experience
in trading, portfolio management, sales and product
development.
Organizations: Paul is a member of the CFA
Institute, Christ the King Lutheran Church and South
Bend Medical Foundation.
Our Mission is to help our clients achieve security, build wealth and realize their dreams.
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Title: Vice President and Senior Fixed
Income Portfolio Manager
Education: B.S. Marketing, Finance minor
York College
York, Pennsylvania
Background: Erik joined 1st Source in 2015 after
working with Comerica in Detroit as a Senior Fixed
Income Analyst & Strategist for seven years, and prior
as a Closely-Held Investment Analyst for two years.
He worked as a manager of fixed income analytics and
worked closely with the capital markets and investment
banking businesses. His work has focused on credit
analytics, valuation, interest rate strategies, and macro-
strategy. Erik has developed and implemented tailored
portfolio asset allocation strategies, which were focused
on fixed income, for a wide array of clients with a large
range of financial instruments.
Organizations: Erik is active coaching local youth
sports teams. He earned a B.S. in Marketing with Minors
in Finance and Music Industry from York College of
Pennsylvania.
Our Mission is to help our clients achieve security, build wealth and realize their dreams.
Erik Clapsaddle, CFA, CFP®
office: 574 235-2754
mobile: 248 808-4281
ClapsaddleE@1stsource.com
Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL
PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes
use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.34
Not Insured by FDIC or Any Other Government Agency Not Bank Guaranteed Not Bank Deposits or Obligations May Lose Value
Delia Salazar
Trust Officer
office: 574-235-2465
nichollsd@1stsource.com
Delia joined the 1st Source family in 2022 first
working in our Personal Trust Tax group where she
gained valuable insight into trusts and estates. With
her past experience working alongside attorneys in a
legal setting, Personal Trust Administration appealed
to her and she joined that team serving clients more
directly. Delia earned her B.S. in Communication
at the University of Indianapolis in 2004, a B.S.
in Psychology from The University of Michigan-
Flint in 2012 and attended law school. This unique
combination of education, paired with years of
customer service experience allows Delia to truly
understand and provide clients with the utmost care.
As a Plymouth native, Delia is looking forward to
developing relationships with clients and reconnecting
with the northern Indiana community. Delia is
currently working toward her Certified Trust and
Financial Advisor (CTFA) certification.
GENERATION to GENERATION
—Since 1863 —
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