HomeMy WebLinkAbout2024 - Annual Investment Report to the City of South Bend Board of Finance crOtTH B Filed in Clerk's Office
, , JAN 2 7 �:5
ei Bianca Tirado
• :•••� `- City Clerk,South Bend,IN
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ANNUAL INVESTMENT REPORT
to the
CITY OF SOUTH BEND BOARD OF FINANCE
For the Year Ended December 31, 2024
Report Date: January 27, 2025
Report Distribution: South Bend Common Council Members
Mayor
Deputy Chief of Staff
City Clerk
Common Council Attorney Corporation
Counsel
State Board of Accounts (local office)
Submitted By: City Controller (pursuant to I.C. 5-13-7-7)
1110
TABLE OF CONTENTS
Investment Officers, Advisors, Authorized Investments 3
Investment Review Meetings 4
Investment Report (12/31/24) .5 —20
Year-End Cash Report (12/31/24—preliminary) 21 — 23
Cash Management & Investment Policies 24— 32
INVESTMENT OFFICERS
City Controller: Kyle J. Willis
Director of Treasury: Jonathan MacGown
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 15t Source Bank
3
INVESTMENT REVIEW MEETINGS
QUARTER DA 1'h TIME
1ST Quarter 04/15/2025 10:00 A.M.
2ND Quarter 07/15/2025 10:00 A.M.
3RD Quarter 10/15/2025 10:00 A.M.
4TH Quarter 01/15/2026 10:00 A.M.
Investment Review Meetings will be held virtually via Microsoft Teams until further notice.
4
INVESTMENT REPORT (12/31/2024)
IN Source®
mai Bank
Investment Presentation for
City of South Bend Corporate Agency
Prepared by Paul Gifford
ie
The Consumer & Manufacturing Source
Bank
1,359.4 1410 ISM Manufacturing& Services
70
30
1,200
65
25
1,000
2060
800
15 55
10 ,.� 600
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-Personal Savings Rate -Credit Card Debt(BLNs) -iSM Manutacuturing Index -SM Services Index -Growth>50>Contraction
Confidence Home Supply in months
no 160
13.0 (based on current sales&inventory)
140
105
11.0
120
100 9.0
too
7.0
a5
au
5.0
9U
60
3.0
85 �T 40
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5 5
—Small Business —Consumer Confidence '+ r` ^�
Data as of:January 10, 2024
Labor & Economic Growth , Source
Bank
lt;„ Total Unemployed -Job Openings
14.772% :O,OOu
14% 17 51h,
Unemployment Rate
12% 15,00o
12,500
10?,:
10,000
R% a= 7,500
2
6% 3 5,000
4.086%
2,500
4%
0
\-3.449% 2% 2,500
0% 5,000
0 O O O ', ', ', ^. N N 'Y N ^f 'h ' of P P P P 7,500
N N N N N N N N N N N N N N N N N N N N
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Source:Bureau of Labor Statistics
GDP Growth(QoQ) • Third quarter GDP grew by 3.1%in the U.S.and above the
6.0 Contributions to GDP original forecast of 2.9%. The increase of 3.1% marked the ninth
s.o consecutive quarter of positive economic growth since the first
3.0 3.1 two quarters of negative output in 2022.
4.0
3.0 4.4 wit U • Personal Consumption increased 3.7%over the previous quarter,
ahead of the 3.3%forecast,and consumption accounted for 80%of
2.0 3.2
total economic growth. Motor vehicles were a positive contributor to
1.0 2.4 _ GDP for the second consecutive quarter but had been negative every
o.o
r 101.6 quarter since 1Q2023.
iimi-1.0 `_ • We always highlight intellectual property and its importance in the
U.S.economy. Economic output coming from intellectual property
2 0 increased by 4.1%over the past year and steadily rose to$1.51 TLN
-3.0 in Real GDP dollars for the three-month period ending September 30,
6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 2024. Annualized growth over the past five years has been 8%.
4s Personal Consumption n.�.Residential _. Business Fined Inv. mom Govt Consumption
-.rntorycr,ange Net Exports ��GDP CtoO • The largest detractor in the quarter was net exports and has detracted
for three consecutive quarters. Imports detracted 144 basis points of
Data as of:January 10, 2024 growth in the quarter while exports added 101.
Interest Rates & Inflation , Source,
Bank
U.S. Treasury Yields 1as Earnings Yield vs.Bond Yield
5.01 4.94
u 4.82 4.55 4.66 4.74 9D
1111
21 4.36 4.37 445 4.20
4.00 4.03 125 1490700.
1-Year 2-Year 3-Year 5-Year 7-Year 10-Year 20-Year 30-Yeai tio��•ti0��`� ~ ���0�i o\ vo� tio���yo ,oe tofP�49' copy ,..›doe ,,,.y��o� 45_,tio ,, e
■10/2/2020 ■1/10/2024 ■1/10/2025 -S&P 500 Earnings Yield -10-Year U.S.Treasury Yield
—PCE Core —Fed Inflation Target 3.5
30 Real Yield
2s vywitti44)\
> . 2.0
I
0 . J
> 1.5
0 1.0
z
2 Federal Reserve's Inflation Target 0.5
z.
E 0.0
1.0 -0.5
-1.0
0.0
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Data as of:January 10, 2024
Account Summary , Source.
City of South Bend Corporate Agency (619062011) Report as of December 31, 2024 Bank
Asset Allocation
%of
Market Value Mkt Val
• Cash $ 123,232,672 61.0%
• Fixed Income $ 78,803,870 39.0%
Total $ 202,036,542 100.0%
$202.0M
Top Holdings
Unrealized Annual % of
Price Total Cost Market Value Accrual Gain/Loss Income Mkt Val
Federated Hermes Government Obligations Fund 1.000 12,823,677.89 12,823,677.89 32,503.60 .00 583,605.58 6.4
United States Treasury Note/Bond 2.875% 31 May 202 99.421 6,975,244.33 6,959,470.00 17,692.29 -15,774.33 201,250.00 3.5
Wells Fargo Bank NA 4.8%02 May 2025 100.170 6,500,000.00 6,511,050.00 25,643.87 11,050.00 312,000.00 3.2
United States Treasury Note/Bond 4.5% 15 Nov 2025 100.186 5,991,669.17 6,011,160.00 35,055.24 19,490.83 270,000.00 3.0
United States Treasury Bill Zero 23 Jan 2025 99.752 5,871,333.33 5,985,120.00 .00 113,786.67 .00 3.0
United States Treasury Note/Bond 4.625% 30 Sep 202 100.935 5,067,578.13 5,046,750.00 59,083.10 -20,828.13 231,250.00 2.5
United States Treasury Note/Bond 5% 31 Aug 2025 100.483 4,989,062.50 5,024,150.00 84,944.75 35,087.50 250,000.00 2.5
United States Treasury Note/Bond 4.625%28 Feb 202 100.405 4,991,015.63 5,020,250.00 78,573.90 29,234.37 231,250.00 2.5
Bank of America NA 5.45%01 May 2025 100.373 5,000,000.00 5,018,650.00 45,541.10 18,650.00 272,500.00 2.5
United States Treasury Note/Bond 4.375% 15 Dec 202 100.227 5,015,221.18 5,011,350.00 10,216.35 -3,871.18 218,750.00 2.5
JPMorgan Chase Bank NA 4.6% 10 Dec 2026 100.085 5,000,000.00 5,004,250.00 13,863.00 4,250.00 230,000.00 2.5
All Others 132,198,843.81 132,473,538.49 744,008.27 274,694.68 4.361.243.00 65.9
Total 200,423,645.97 200,889,416.38 1,147,125.47 465,770.41 7,161,848.58 100.0
Activity Summary , Source®
City of South Bend Corporate Agency Report as of December 31, 2024 Bank
Annual Ending Market Values History of Asset Growth
$ $ ■ Total Managed-Calc • Beg. Market+Net Investment
215M 215M
210M 210M
205M 205M
200M 200M
195M
195M
190M
190M 185M
185M 180M
180M 175M
175M 170M
2020 2021 2022 2023 2024 Ng, gyp") ��0 �� �,�`l.^�^�����o^�(�^�L 6'3 ro � ^ti \ � �0 ��0 ^ti p� �o a� \�L
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Market Value Reconciliation
Year
to Date
(1 Year) 1 Year 2 Years 3 Years
Beginning Portfolio Value 198,874,676.88 198,874,676.88 193,128,084.84 199,106,069.43
Net Contributions/Withdrawals -6,893,886.13 -6,893,886.13 -10,316,514.68 -11,574,428.40
Fees Deducted -179,959.13 -179,959.13 -355,260.61 -530,439.96
Income Earned 7,064,958.00 7,064,958.00 11,376,037.49 13,277,273.80
Market Appreciation 3,170,752.23 3,170,752.23 8,204,194.81 1,758,066.98
Ending Portfolio Value 202,036,541.85 202,036,541.85 202,036,541.85 202,036,541.85
Holdings Detail Source.
,
City of South Bend Corporate Agency (619062011) Report as of December 31, 2024 Bank
Unrealized Annual Current %of
Units Total Cost Market Value Accrual Gain/Loss Income Yield Mkt Val
Cash
Money Market
Federated Hermes Government 12,823,677.890 12,823,677.89 12,823,677.89 32,503.60 .00 583,605.58 4.551 6.4
Obligations Fund
Total: Money Market 12,823,677.89 12,823,677.89 32,503.60 .00 583,605.58 4.551 6.4
Treasury Bills
United States Treasury Bill Zero 5,000,000.000 4,871,741.39 5,000,000.00 .00 128,258.61 .00 .000 2.5
02 Jan 2025
United States Treasury Bill Zero 5,000,000.000 4,904,654.17 4,979,500.00 .00 74,845.83 .00 .000 2.5
06 Feb 2025
United States Treasury Bill Zero 5,000,000.000 4,889,227.44 4,963,400.00 .00 74,172.56 .00 .000 2.5
06 Mar 2025
United States Treasury Bill Zero 5,000,000.000 4,892,141.60 4,923,550.00 .00 31,408.40 .00 .000 2.5
15 May 2025
United States Treasury Bill Zero 6,000,000.000 5,871,333.33 5,985,120.00 .00 113,786.67 .00 .000 3.0
23 Jan 2025
United States of Amer Treas Bills 5,000,000.000 4,894,014.44 4,946,600.00 .00 52,585.56 .00 .000 2.5
0%T-Bill 03 Apr
Total:Treasury Bills 30,323,112.37 30,798,170.00 .00 475,057.63 .00 .000 15.5
Short Term and CDs
American Commercial Bank& 250,000.000 250,000.00 253,780.00 127.40 3,780.00 11,625.00 4.581 .1
Trust National Associat
BMO Bank NA .5%27 Feb 2025 1,000,000.000 1,000,000.00 993,900.00 479.45 -6,100.00 5,000.00 .503 .5
BMO Bank NA.5%28 Mar 2025 1,000,000.000 1,000,000.00 990,910.00 54.79 -9,090.00 5,000.00 .505 .5
BMO Bank NA.7%28 Apr 2025 3,000,000.000 3,000,000.00 2,965,290.00 3,739.74 -34,710.00 21,000.00 .708 1.5
BMO Bank NA 4.85%22 Aug 2,000,000.000 2,000,000.00 2,007,720.00 35,079.46 7,720.00 97,000.00 4.831 1.0
2025
BMO Bank NA 4.85%27 May 2,000,000.000 2,000,000.00 2,004,980.00 10,098.64 4,980.00 97,000.00 4.838 1.0
2025
Holdings Detail Source®
,
City of South Bend Corporate Agency (619062011) Report as of December 31, 2024 Bank
Unrealized Annual Current %of
Units Total Cost Market Value Accrual Gain/Loss Income Yield Mkt Val
BMO Bank NA 4.9%23 Jun 2025 2,000,000.000 2,000,000.00 2,006,800.00 2,953.42 6,800.00 98,000.00 4.883 1.0
BMO Bank NA 5% 14 Jul 2025 2,500,000.000 2,500,000.00 2,509,600.00 58,561.65 9,600.00 125,000.00 4.981 1.2
BMO Bank NA 5.2%24 Nov 2025 1,000,000.000 1,000,000.00 1,009,790.00 5,698.63 9,790.00 52,000.00 5.150 .5
BMW Bank North America 5.15% 250,000.000 250,000.00 253,555.00 1,587.33 3,555.00 12,875.00 5.078 .1
18 May 202026
Bank of America NA 4.1%02 Jul 1,000,000.000 1,000,000.00 999,450.00 .00 -550.00 41,000.00 4.102 .5
2025
Bank of America NA 4.45%07 750,000.000 750,000.00 754,162.50 13,441.44 4,162.50 33,375.00 4.425 .4
Aug 2026
Bank of America NA 4.6%09 Feb 1,000,000.000 1,000,000.00 1,005,240.00 18,526.03 5,240.00 46,000.00 4.576 .5
2026
Bank of America NA 4.8%06 Apr 2,000,000.000 2,000,000.00 2,017,200.00 23,408.22 17,200.00 96,000.00 4.759 1.0
2026
Bank of America NA 4.85%30 1,000,000.000 1,000,000.00 1,009,060.00 12,623.29 9,060.00 48,500.00 4.806 .5
Mar 2026
Bank of America NA 5% 15 Sep 1,500,000.000 1,500,000.00 1,509,435.00 22,397.27 9,435.00 75,000.00 4.969 .8
2025
Bank of America NA 5.05%08 4,000,000.000 4,000,000.00 4,054,040.00 14,389.04 54,040.00 202,000.00 4.983 2.0
Jun 2026
Bank of America NA 5.05%22 3,000,000.000 3,000,000.00 3,041,820.00 4,980.81 41,820.00 151,500.00 4.981 1.5
Jun 2026
Bank of America NA 5.3%24 Nov 892,000.000 892,000.00 901,517.64 5,180.93 9,517.64 47,276.00 5.244 .4
2025
Bank of America NA 5.4%22 May 1,254,000.000 1,254,000.00 1,259,454.90 7,420.93 5,454.90 67,716.00 5.377 .6
2025
Bank of America NA 5.45%01 5,000,000.000 5,000,000.00 5,018,650.00 45,541.10 18,650.00 272,500.00 5.430 2.5
May 2025
City National Bank Los Angeles 250,000.000 250,000.00 250,610.00 4,767.12 610.00 10,875.00 4.339 .1
California Certific
City Natl Bk Los Angeles Calif 199,000.000 199,000.00 200,422.85 1,041.89 1,422.85 9,751.00 4.865 .1
4.9%24 Nov 2025
Holdings Detail Source.
,
City of South Bend Corporate Agency (619062011) Report as of December 31, 2024 Bank
Unrealized Annual Current %of
Units Total Cost Market Value Accrual Gain/Loss Income Yield Mkt Val
First Federal Savings 260,000.000 260,000.00 262,225.60 785.34 2,225.60 13,650.00 5.205 .1
Bank/Huntington IN 5.25% 14
First Internet Bank of Indiana 150,000.000 150,000.00 150,160.50 292.60 160.50 6,675.00 4.445 .1
4.45% 16 Jun 2025
Flagstar Bank NA 4.6%09 Feb 2,000,000.000 2,000,000.00 2,010,480.00 36,800.00 10,480.00 92,000.00 4.576 1.0
2026
Flagstar Bank NA 4.8%30 Jun 2,000,000.000 2,000,000.00 2,006,200.00 1,052.06 6,200.00 96,000.00 4.785 1.0
2025
Flagstar Bank NA 5%28 Aug 2025 3,000,000.000 3,000,000.00 3,014,820.00 51,780.81 14,820.00 150,000.00 4.975 1.5
Flagstar Bank Na 4.4%20 Oct 2,000,000.000 2,000,000.00 2,003,480.00 25,073.98 3,480.00 88,000.00 4.392 1.0
2025
JPMorgan Chase Bank NA 4.5% 250,000.000 250,000.00 249,945.00 2,342.47 -55.00 11,250.00 4.501 .1
16 Oct 2026
JPMorgan Chase Bank NA 4.6% 5,000,000.000 5,000,000.00 5,004,250.00 13,863.00 4,250.00 230,000.00 4.596 2.5
10 Dec 2026
JPMorgan Chase Bank NA 4.6% 2,000,000.000 2,000,000.00 2,001,380.00 12,350.68 1,380.00 92,000.00 4.597 1.0
13 Nov 2026
KeyBank NA/Cleveland OH 2,000,000.000 2,000,000.00 2,006,960.00 .00 6,960.00 105,000.00 5.232 1.0
5.25%23 May 2025
Medallion Bank/Salt Lake City UT 250,000.000 250,000.00 254,337.50 357.88 4,337.50 11,875.00 4.669 .1
4.75%21 Jun 2027
Morgan Stanley Bank NA 4.85% 250,000.000 250,000.00 254,422.50 3,089.38 4,422.50 12,125.00 4.766 .1
30 Mar 2027
Morgan Stanley Private Bank NA 250,000.000 250,000.00 254,422.50 3,089.38 4,422.50 12,125.00 4.766 .1
4.85%30 Mar 2027
Popular Bank 4.3% 11 Dec 2025 250,000.000 250,000.00 250,440.00 530.14 440.00 10,750.00 4.292 .1
Sallie Mae Bank 4.9%08 Dec 250,000.000 250,000.00 251,805.00 839.04 1,805.00 12,250.00 4.865 .1
2025
TriState Capital Bank 5%30 Mar 250,000.000 250,000.00 252,712.50 3,184.93 2,712.50 12,500.00 4.946 .1
2026
UBS Bank USA 4.35%20 Jan 250,000.000 250,000.00 250,612.50 387.33 612.50 10,875.00 4.339 .1
2026
Holdings Detail Source®
City of South Bend Corporate Agency (619062011) Report as of December 31, 2024 ' Bank
Unrealized Annual Current %of
Units Total Cost Market Value Accrual Gain/Loss Income Yield Mkt Val
United Fidelity Bank FSB 4.6%29 2,000,000.000 2,000,000.00 2,022,220.00 756.16 22,220.00 92,000.00 4.549 1.0
Dec 2026
United Fidelity Bank FSB 4.9%30 500,000.000 500,000.00 509,495.00 134.25 9,495.00 24,500.00 4.809 .3
Mar 2027
United Fidelity Bank FSB 5% 14 2,500,000.000 2,500,000.00 2,510,775.00 6,164.38 10,775.00 125,000.00 4.979 1.2
Jul 2025
United Fidelity Bank FSB 5.2% 17 2,000,000.000 2,000,000.00 2,018,300.00 4,273.98 18,300.00 104,000.00 5.153 1.0
Nov 2025
Valley National Bank/Wayne NJ 250,000.000 250,000.00 254,625.00 394.52 4,625.00 12,000.00 4.713 .1
4.8%21 Jun 2027
Wells Fargo Bank NA 4.4%27 1,000,000.000 1,000,000.00 1,000,070.00 843.84 70.00 44,000.00 4.400 .5
Jan 2025
Wells Fargo Bank NA 4.8%02 6,500,000.000 6,500,000.00 6,511,050.00 25,643.87 11,050.00 312,000.00 4.792 3.2
May 2025
Wells Fargo Bank NA 4.9%23 625,000.000 625,000.00 626,575.00 755.14 1,575.00 30,625.00 4.888 .3
May 2025
Wells Fargo Bank NA 5.2%06 500,000.000 500,000.00 500,075.00 1,923.29 75.00 26,000.00 5.199 .2
Jan 2025
Wells Fargo Bank NA 5.2%21 3,000,000.000 3,000,000.00 3,001,560.00 5,983.56 1,560.00 156,000.00 5.197 1.5
Jan 2025
Wells Fargo Bank NA 5.3% 14 2,000,000.000 2,000,000.00 2,019,820.00 5,227.40 19,820.00 106,000.00 5.248 1.0
Nov 2025
Wells Fargo Bank NA 5.4% 14 Oct 600,000.000 600,000.00 605,832.00 1,864.11 5,832.00 32,400.00 5.348 .3
2025
Total: Short Term and CDs 78,730,000.00 79,076,438.49 501,882.10 346,438.49 3,657,593.00 4.625 38.9
Total: Cash 121,876,790.26 122,698,286.38 534,385.70 821,496.12 4,241,198.58 3.457 60.8
Fixed Income
US Treasury&Agencies
Holdings Detail Source.
,
City of South Bend Corporate Agency (619062011) Report as of December 31, 2024 Bank
Unrealized Annual Current %of
Units Total Cost Market Value Accrual Gain/Loss Income Yield Mkt Val
Federal Farm Credit Banks 2,000,000.000 2,000,000.00 1,965,540.00 500.00 -34,460.00 12,000.00 .611 1.0
Funding Corp.6% 16 Jun
Federal Farm Credit Banks 1,000,000.000 1,000,000.00 951,480.00 400.00 -48,520.00 9,000.00 .946 .5
Funding Corp .9% 15 Jun
Federal Farm Credit Banks 1,000,000.000 1,000,000.00 995,060.00 6,083.33 -4,940.00 21,900.00 2.201 .5
Funding Corp 2.19%21 Ma
Federal Home Loan Banks 1% 12 5,000,000.000 5,000,000.00 4,741,350.00 19,305.55 -258,650.00 50,000.00 1.055 2.4
Aug 2026
Federal Home Loan Banks 2,000,000.000 2,030,520.00 1,990,440.00 25,437.50 -40,080.00 82,500.00 4.145 1.0
4.125% 10 Sep 2027
Federal Home Loan Banks 4.5% 1,750,000.000 1,757,429.13 1,753,815.00 4,156.25 -3,614.13 78,750.00 4.490 .9
12 Dec 2025
Federal Home Loan Banks 5%20 500,000.000 500,000.00 499,380.00 7,013.89 -620.00 25,000.00 5.006 .2
Mar 2029
Federal Home Loan Banks 5.05% 2,500,000.000 2,500,000.00 2,492,975.00 9,118.05 -7,025.00 126,250.00 5.064 1.2
05 Dec 2029
Federal Home Loan Mortgage 3,000,000.000 3,000,000.00 3,001,110.00 16,800.00 1,110.00 144,000.00 4.798 1.5
Corp 4.8% 19 Nov 2026
Federal National Mortgage 2,000,000.000 2,000,000.00 1,928,500.00 34.72 -71,500.00 12,500.00 .648 1.0
Association .625% 30 Dec
United States Treasury Note/Bond 5,000,000.000 4,809,999.99 4,798,300.00 42,493.20 -11,699.99 112,500.00 2.345 2.4
2.25% 15 Feb 2027
United States Treasury Note/Bond 7,000,000.000 6,975,244.33 6,959,470.00 17,692.29 -15,774.33 201,250.00 2.892 3.5
2.875%31 May 202
United States Treasury Note/Bond 5,000,000.000 4,966,387.93 4,998,850.00 86,311.15 32,462.07 206,250.00 4.126 2.5
4.125%31 Jan 202
United States Treasury Note/Bond 5,000,000.000 4,997,656.24 4,998,700.00 63,397.80 1,043.76 212,500.00 4.251 2.5
4.25% 15 Mar 2027
United States Treasury Note/Bond 5,000,000.000 4,958,196.48 5,001,250.00 45,535.70 43,053.52 212,500.00 4.249 2.5
4.25% 15 Oct 2025
United States Treasury Note/Bond 5,000,000.000 4,996,875.00 5,001,250.00 587.00 4,375.00 212,500.00 4.249 2.5
4.25%31 Dec 2025
Holdings Detail Source.
City of South Bend Corporate Agency (619062011) Report as of December 31, 2024 ' Bank
Unrealized Annual Current %of
Units Total Cost Market Value Accrual Gain/Loss Income Yield Mkt Val
United States Treasury Note/Bond 5,000,000.000 5,015,221.18 5,011,350.00 10,216.35 -3,871.18 218,750.00 4.365 2.5
4.375% 15 Dec 202
United States Treasury Note/Bond 6,000,000.000 5,991,669.17 6,011,160.00 35,055.24 19,490.83 270,000.00 4.492 3.0
4.5% 15 Nov 2025
United States Treasury Note/Bond 5,000,000.000 4,991,015.63 5,020,250.00 78,573.90 29,234.37 231,250.00 4.606 2.5
4.625%28 Feb 202
United States Treasury Note/Bond 5,000,000.000 5,067,578.13 5,046,750.00 59,083.10 -20,828.13 231,250.00 4.582 2.5
4.625%30 Sep 202
United States Treasury Note/Bond 5,000,000.000 4,989,062.50 5,024,150.00 84,944.75 35,087.50 250,000.00 4.976 2.5
5%31 Aug 2025
Total: US Treasury&Agencies 78,546,855.71 78,191,130.00 612,739.77 -355,725.71 2,920,650.00 3.735 39.1
Total: Fixed Income 78,546,855.71 78,191,130.00 612,739.77 -355,725.71 2,920,650.00 3.735 39.1
Total 200,423,645.97 200,889,416.38 1,147,125.47 465,770.41 7,161,848.58 3.565 100.0
ACR Performance Summary Total Net 5' ' urce'.'urce
City of South Bend Corporate Agency (619062011) Report as of December 31, 2024 ® il
" ank
Return Details
Year
to Date
Market Value (1 Year) 1 Year 3 Years 5 Years
Total Fd Net Fee 202,036,542 5.15 5.15 2.46 1.71
Cash 123,232,672 5.45 5.45 2.98 2.20
Fixed Income 78,803,870 4.88 4.88 2.33 1.65
Total Managed 202,036,542 5.24 5.24 2.55 1.80
Benchmark BOA Treasury 1-3 year 4 OR -1 OH 1 () 1.4U
Disclosure , Source.
Bank
Although the statements of facts in this report have been obtained from and are based upon sources the
Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be
incomplete and condensed. All opinions and estimates included in this report constitute the Firm's
judgment as of the date of this report and are subject to change without notice.
Past performance is not a guarantee of future results. Investments are:
Not Insured by FDIC or Any Other Not Bank Guaranteed Not Bank Deposits or Other May Lose
Government Agency Obligations Value
12/31/2024 CASH REPORT
14
Report of Changes in Cash Balance
For the Twelve Months Ending Tuesday,
December 31,2024
Report generated 1/24/2025,6:03 PM
Plus/(Minus) Ending Variance
1/1 Beginning 2024 YTD 20241TD Accrual Surplus Cash Balance Cash Reserve Above/(Below)
Cash Balance Revenue Expenditures Adjustments (Deficit) 12/31/2024 Requirement Reserve Req.
City Controlled Funds
101 General Fund $93,698,542.77 4107,120,006.68 S109,949,854.86 ($51,570.10) ($2,881,418.28) S90,817,124.49 54,974,927.43 35,842,197.06
Special Revenue Funds
102 Rainy Day 11,375,389.29 460,869.87 - - 460,869.87 11,836,259.16 3,298,496 8,537,764
201 Parks&Recreation 8,884,669.82 24,308,126.48 22,715,589.68 1,698,464.67 3291,001.47 12,175,671 29 5,678,897 6,496.774
202 Motor Vehicle Highway 6,272,149.84 13,829,268.18 14,679,641.29 242,091 79 (608,281.32) 5,663,868.52 3.669,910 1,993,958
209 Studebaker-Oliver Revitalizing Grants 652,478.'0 26,294.41 39,36".50 - (13,073.09) 639.405.61 - -
210 Economic Development State Grants (134.600.58) 67,698.00 - - 67,698.00 (66,902.58) - -
211 Dept of Community Investment Operating 396,172.21 4,441,599.00 4,844,9'5.32 7,948.05 (395.428.27) 743.94 - -
212 Dept of Community Investment Grants 1,212,370.44 1,495,478.73 2,859,881 76 (79,158.88) (1,443,561.91) (231,191.47) - -
216 Police State Seizures 257,000.51 49,470.73 - - 49,470.73 306,471.24 - -
217 Gift.Donation,Bequest 4,416,666.10 3,747,784.04 5,339,969.98 - (1,592.185.94) 2,824,480.16 - -
219 Unsafe Building 900,258.14 132,211.55 24,780.00 - 107,431.55 1,007,689.69 - -
220 Law Enforcement Continuing Education 999,052.36 659 752.94 904,620.14 (18,460.86) (263,328.06) 735,724.30 226,155.04 509,569.27
221 Rental Units Regulation 210,000.72 313,536.82 152,870.04 (69,662.07) 91,004.71 301,005.43 - -
227 Loss Recover' 2,174,241.93 1,099,625.79 150,000.00 - 949,625.79 3,123,867.72 . -
230 Code Enforcement (18,293"3) 4,257,136.52 4,252,944.19 (2,856.73) 1,335.60 (16,958.13, - -
249 Local Income Tax-Public Safety 6,163,397.21 14,163,964.70 13,856,680.76 - 307,283.94 6,470,681.15 - -
251 Local Road&Street 1,388,435.30 2,438,421.86 3,269,691.45 (78,650.28) (909,919.87) 478,515.43 817,422.86 (338,907.43)
257 LOIT Special Distribution 67,475.48 2,572.93 - (4,314.47) (1,741.54) 65,-33.94 - -
258 Human Rights Federal Grants 155,013.85 319,423.04 231,051.44 - 88,371.60 243,385.45 - -
263 American Rescue Plan 10,144,293.00 18'278.88 9,321,898.00 (28,892.00) (9,163,511.12) 980,781.88 - -
264 COVID-19 Response ("9,650.24) 197 788.64 118,138.40 - 79,650.24 - - -
265 Local Road&Bridge Grant 428,020.10 1,139-34.33 1,229,349.67 - (89,615.34) 338,404,76 - -
266 MVH Restricted 848,707.45 3,241,616.35 2,936,090.55 44,080.00 351,605.80 1,200,313.25 - -
289 Haz-Mat 32,194.26 26,461.11 - (16,465.00) 9,996.11 42,190.37 - -
291 Indiana River Rescue 463,394.19 154,146.28 60,934.62 6,400.00 99,611.66 563,005.135 15,233.66 547,772.20
295 COPS MORE Grant 20,876.46 - - - - 20,876.46 - -
299 Police Federal Drug Enforcement 201,295.73 92,600.09 - (18,830.96) 73,769.13 275,064.86 - 275,064.86
404 Local Income Tax-Certified Shares 2,042,700.87 55,182.69 1,297,124.24 (14,000.00) (1.255.941.55) 786,839.32 - -
408 Local Income Tax-Economic Development 26,620,482.89 21,128,549.14 14,433,866.70 (150,318.56) 6,544,363.88 33,164,846."7 7,216,933.35 25,947,913.42
410 Urban Development Action Grant 69,114.04 2,800.14 - - 2,800.14 71,914.18 - -
725 Morris;Palais Box Office (711,758.30) - - 2,460,138.85 2,460,138.85 1,748,380.55 - -
730 City Cemetery 31,507.07 1,2-651 - - 1,276.51 32,78358 - -
731 Bowman Cemetery 495,643.34 20,080,80 - - 20,080.80 515,724.14 400.000.00 115,724.14
"54 Industrial Revoking Fund 3,050,364.19 2,026,632.'8 81,138.84 .64.1!8-5( 1,881,085.19 4,931,449.38 - -
Total Special Revenue Funds 889,029,142.64 $100,087,403.33 $102,800,604.57 $3,915,084.80 61,201,883.56 $90,231,026.20
Debt Service Fonda
112 201'Parks Bond Debt Service 153,345.77 1,194,472.93 1.1",990.00 16,482-93 169,828.70 - 169,828.70
350 2018 Fire Station#9 Debt Service - - 341,331.28 - (341,33128) (341,331.281 341,331.28 (682.662.56)
6-2 Century Center Energy Conservation Debt Service 32,955.57 512,505.89 393,387.54 - 119,118.35 152,073.92 - 152,073.92
- oudt Bend Redevelopment Authority 447,521.12 9,405,858.72 5,992,431.26 - 3,413,427.46 3,860,94858 3,860,948.58 -
-55 Smith Bend Building Corporation 231,284.99 1,442,640.28 1,424,542.50 - 18,097.78 249,382.'7 249.382.77 -
756 2015 Smart Streets Bond Debt Service Reserve 1,751,219.17 1,712,584.27 1,706,393.76 - 6,190.51 1,"5',409.68 1,757,409.68 -
'57 2015 Parks Bond Debt Service 558,162.18 341,364.29 368,381.26 - (2'.016.9T 531,145 21 531,145.21 -
-60 201-Eddy Street Commons Bond Debt Service 3,668,986.50 172.47 - 1-2.4 3669,158.9" 2,500,000.00 1,169,158.97
Total Debt Service Funds $6,843,47530 $14,609,598.85 311,404,457.60 - $3,205,141.25 $10,048,616.55
Capital Fonds
287 Fire Department Capital 1,368,458.12 4,885,121.44 3,060,817.54 (345314.00) 1,478,989.90 3,047,448.02 - -
401 Coveleski Stadium Capital 2,799.38 24.11 21,613.26 - (21,589 151 (18,789.'") - -
406 Cumulative Capital Development 199,512.12 713,314.62 548,540.63 - 164.7-3.99 364,286.11 - -
407 Cumulative Capital Improvement 279,499.44 178,147.11 75,000.00 - 103,147.11 382.646.55 - -
412 Major Moves Construction 1,602,252_09 208,2273.63 884,900.13 - (6-6,626.50) 925,625.59 - -
413 Professional Sports Convention Development Area 252,674.97 6,489,300.22 4,167,772.03 - 2,321,528.19 2,574,203.16 - -
416 Morris Performing Arts Center Capital 160,803.9' 7,700,257.54 1,493,326,48 (330,179.34) 5,876,751.72 6,037,555.69 - -
450 Palais Royale Historic Preservation 128,104.79 22,471.95 - (1.013.98) 21,457.97 149,562.76 - -
451 2018 Fire Station#9 Bond Capital 329,570.'9 13,352_46 - - 13,352.46 342,923.25 - -
453 Zoo Bond Capital 0.01 - 0.01 - (0.01) - - -
455 2021 Infrastnunre Bond Capital 922,516.37 27,841.91 276,'66.85 - (248,924.94) 673,591.43 - -
458 2024 RDA Bond Proceeds(Four Winds) - 44,114,179.74 2,027,334.24 - 44,086,845.50 44,086,84550 - -
4'1 201'Parks Bond Capital 1,370,919,60 41,823.56 358,335.57 - (516,51201) 854,407.59 - -
-59 2017 Eddy Street Commons Bond Capital 25,765.55 1.20 1.20 25,766.75 - -
Total Capital Funds .44.y $6,842,877.20 $66,394,109.49 $13,114,406.74 ($676,507.32) $52,603,195.43 $59,446,072.63
Enterprise Funds
600 Consolidated Building 2,087,954.34 3,998,248.12 2,273,632.86 - 1,724,615.26 3,812,569.60 568,408.22 3,244,161.39
601 Parking Garages 553,931.93 309,450.96 469,232.66 (27,873.83) (187,655.53) 366,276.40 117,308.17 248,968.24
602 Morris Performing Arts Center Operations 646,795.58 1,069,219.41 1,520,930.65 (55,5822I) (50-293.45) 139,502.13 152,093.07 (12,590941
610 Solid Waste Operations -66,956." 8,213,121.47 7,679,398.26 (22,77124) 510,951.97 1,277,908.74 767,939.83 509,968.91
611 Solid Waste Capital 2,-34,870.62 3,167,656.88 3,670,445.28 - (502_788.40) 2232,08222 -620 Water Works Operations 7,853,449.64 22,684,347.65 17,674,441.47 9,501.66 5,019,407.84 12,872,857.48 883,72207 11,989,135.41
622 Water Works Capital 6,652,330.24 11,326,147.31 2,432,585.04 ( ,000.31) 8,867,561.96 15,519,892.20 - -
624 Water Works Customer Deposit 1,349,629.84 54,661.16 . (2,474.06) 52,187.10 1,401,816.94 1,401,816.94 -
I625 Water Works Sinking(Debt Service) 3,665,884.17 150,467.68 175,718.05 (1222,993.99) (1,24824436) 2,417,639.81 - 2,4I',639.81
626 Water Works Bond Reserve 1.478,046.49 124,271.73 - - 124,271.73 1,602,318.22 1,602,318.22 629 Water Works Operations&Maintenance Reserve 3,040,119.52 123,16937 - - 123,16937 3,163,288.89 2,946,329.39 216,959.50
640 Sewer Repair Insurance 1,804,260.28 783,390.01 994,942.11 !12327 99) (223,879.39) 1,5E0,180.89 248,735.53 1,331,645.36
641 Sewage Works Operations 19,586,869.93 44,734,039.52 28,690,819.-8 199,570.10 16,242,789.84 35,829,659.77 1,434,540.99 34,395,118.78
642 Sewage Works Capital 12,732,726.58 979,582.46 4,317,807.41 (12,175.05) (3,350,399.98) 9,382,326.60 - 9,382,326.60
643 Sewage Works Operations&Maintenance Reserve 5,763,455.13 233,504.36 - - 233,504.36 5,996,959.49 4,782759.66 1,214,199.83
649 Sewage Sinking(Debt Service) 6,033,296.37 127,600.26 484,370.37 (447,416.00) (804,186.11) 5,229,110.26 - 5,229,110.26
653 Sewage Debt Service Reserve 3,893,415.08 593,351.10 5,354.00 - 587,997.10 4,481,41218 4,481,41218 654 Sewage Works Customer Deposit 1,360,670.15 57,810.46 - 128,334.82 186,14528 1,516,815.43 1,546,815.43 -
655 Project Releal 461,511.00 476,616.48 397,704.48 2.027.27 80,939.27 542,450.27 99,426.12 443,024.15
667 Storm Sewer 2,163,419.99 1,292,495 78 1,601,474.92 (174,055.72) (483,034.86) 1,680,3135.13 - 1,680385.13
670 Century Center 838,463',- 4,251,120.62 4,776,544.92 (306,754.57) (832,178.87) 6,284.70 1,194,136.23 (1,187,851.53)
6-1 Cennuv Center Capital 1,102,114.-' 1-4,-06.49 223,629.20 - .443922.-1, 1,053,192.01 800,000.00 253,19201
Total Enterprise Funds 686,570,171.94 $104,924,979.28 677,389,031.46 (S1,970,990.40) 625,564,957.42 5112,135,129.36
Internal Service Funds
222 Central Services (680,62237) 10,332,771.22 11,050,761.78 35,561.04 (682,429.52) (1,363,051.89) 1,105,076.18 12,468,128.07)
226 Liability Insurance 6,488,526.24 3,994,584.40 3,098,324.47 12,688.38 908,948.31 7,397,474.55 1,549,162.24 5,848,312.32
2'8 Take Home Vehicle Police 833,591.47 107,505.21 - - 107,505.21 941,096.68 750,000.00 191,096.68
279 IT%Innovation;311 Call Center 5,506,547.10 13,456,828.51 12,508,709.97 (54,09018) 894,028.36 6,400,575.46
-11 Self-Funded Employee Benefits 9,628,439.54 18,994,008.10 18,-34,663.46 (31,020.'01 228,323.94 9,856,763.48 4,683,685.87 5,173,097.62
-1:Unemployment Compensation 45.823.64 9,29-.82 - -'°. - (68,431.55) (22607.91) 19.432.34 (42.040.25)
14 Parental Leave 626,913.42 329,305.02 , ,, v - 251,284.26 878,19-1.68 6.241.66 871,956.02
Total Internal Service Funds $22,449,219.04 $47,224,300.28 $45,548,209.81 ($36,861.46) S1,639,229.01 $24,068,448.05
Fiduciary Funds
"01 Fire Pension 392,781.21 3,934,7'8.41 3,985,11 to - (50395.75) 342385.46 398,517.42 (56,131.96)
-02 Police Pension 506,772_20 6,084,362.58 6,053,170 48 - 31,192.10 537,964.30 605.317.05 (67.352.75)
-09 Payroll Clearing (29,611.67) - - (10,9'9.94) (10,979.94) (40,591.61 i
-18 State Tax Withholding Fund 322,126.98 811,550.09 811,550.09 1,133,677.0- 1,133,677.07 -
-26 Police Disnibntions Payable 933,965.52 1_4.131.351 i 155,131. 5, 328,85'4.1- 828,834.17
Total Fidaaciaey Funds $2,176,034.24 $10,019,140.99 610,038,344.64 6645,438.80 1616,115.15 $980 39
Total City Controlled Funds 5307,609,463.13 5450,379,538.90 6370,244,909.68 $1,824,594.32 681,959,223.54$389,568,686.67
Redevelopment Commission Controlled Funds
Tax Increment Financing Funds
324 TIF-River West Development Area 34,088,454.38 29,690,811.04 38,523,804.55 (222901.46) (9,055,894.9') 25,032,559.41 422 TIF-West Washington 1,883,190.20 671,770.'1 1,208,356.'9 - (536,586,08) 1,346,604.12
429 TIF-River East Development Area(NE Der) 14,630,845.93 11,316,089.92 4,392,535.-3 933,402.16 7,856,956.35 22,487,80228
430 TIF-Sondtside Development Area#1 12,834,453.38 3,827,261.45 8,034,036.39 (7285.00) (4,214,059.94) 8,6_20393.44 -
435 TIF-Douglas Road 604,408.35 376,128.68 - - 376,128.68 980,537.03 -
436 TIF-River East Residential Area(NE Res) 9,025,3-7.39 8.126,14-.35 6,992,824.48 (2".0'2.651 1,106,250.22 10,131,62-.61 -
Total Tax Increment Financing Funds $73,066,729.63 $54,008,209.15 $59,151,557.94 $676,143.05 ($4,467,205.74) $68,599,523.89
Redevelopment Funds
433 Redevelopment General 3248345.97 2,489,603.13 2,312,002.4- 19,117.45 196,718.11 3,445,064.08 578,000.82 2,867,063.46
439 Certified Technology Park 11,620.57 470.78 - - 470.78 12,091.35 - 12,091.35
452 2018 TIF Park Bond Capital 2,368,201.82 43,299.69 2,238,755.85 - (2,195,456.16) 172,745.66 - 172,745.66
454 Airport Urban Enterprise Zone 427,896.32 17,336.06 - - 17,336.06 445,232.38 - 445.232.38
456 2023 South Bend Redevelopment Authority Lease Rental Revenue Bond 28,540,322.23 969,952.23 11,782,262.60 5,520,497.13 (5 291,813.24) 23,248,508.99
45-Series B of the Rental Revenue Bonds - 24.509,842.74 7,114,380.36 14,5'0.00 1',410,032.38 1-,410,037 38 - -
Total Redevelopment Funds S34,596,386.91 $26,030,504.63 $23,447,40L28 $5,554,184.58 010,137,787.93 $44,733,674.84
Debt Service Funds
315 Airport 2003 Debt Reserve 1,080,522_84 43,768.90 - - 43,68.90 1,124,091.74 1,124,091.74
328 SBCDA 2003 Debt Reserve 1,806,135.73 73,174.96 - - -3,1'4.96 1,879,310.69 1,879,310.69 -
351 2018 TIF Park Bond Debt Service Reserve 1,079,924.2- 43,75277 - - 43,752_77 1,123,677.04 1,123,677.04 -
352 2019 South Shore Double Tracking Debt Service 20,0-3.96 1,039,003.28 1,033,625.00 - 5378.28 25,452.24 - 25,452.24
353 2020 TIF Lbtare Bond Debt Service Reserve 326.952.45 15.05 - 15.05 326,96-.50 326,967.50 Total Debt Service Funds $4,313,409.255 $1,199,714.96 $1,0 3,625.00 - S166,089.96 S4,479,499.21
['Total Redevelopment Commission Funds 6111,976,525.79 683,238,428.74 $83,632,584.22 $6,215,757.63 $5,836,172.15 $117,812697.941
Grand Total 5419,585,988.92 $533,617,967.64 5453,877,493.90 58,040351.95 $87,795,395.69 $507,381,384.61
CASH MANAGEMENT &
INVESTMENT POLICIES
24
't"'y
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.
Established pursuant to South Bend Municipal Code Sec.2 21(b):
Daniel Parker,City Controller
Date: May 10,2021
Approved pursuant to South Bend Municipal Code Sec.2-21(c):
)a es Mueller,Mayor
Date: May 10,2021
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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. 10993-23.The City's practice is to obtain 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 1"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 Police
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
Department of Community Investment
210 State Grants No reserve requirement-Grant fund-spend down to zero
Department of Community Investment
211 Operating No reserve requirement
212 Department of Community No reserve requirement-Grant fund-spend down to zero
Investment Grants
216 Police State Seizures 25%of annual expenditures
217 Gift,Donation,Bequest No reserve requirement
219 Unsafe Building No reserve requirement
Law Enforcement Continuing
220 Education 25%of annual expenditures
221 Rental Units Regulation No reserve requirement
222 Central Services I 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 I 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 No reserve requirement
Service
351 2018 TIF Parks Bond Debt Service 100%debt service reserve per bond covenants
352 2019 South Shore Double Tracking No reserve requirement
Debt Service
353 2020 TIF Library Bond Debt Service 100%debt service reserve per bond covenants
Reserve
401 Coveleski Stadium CapitalNo 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 ' 50%of annual expenditures
Development
410 Urban Development Action Grant 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 No reserve requirement-Capital fund-spend down to zero
Development Area(PSCDA)
416 Morris Performing Arts Center Capital No reserve requirement-Capital fund- spend down to zero
422 TIF-West Washington No reserve requirement
TIF-River East Development Area
429 (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 10%of annual expenditures
Operations
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& 16.67%of annual operating expenses in fund 620,net of
Maintenance Reserve 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& 16.67%of annual operating expenses in fund 641,net of
Maintenance Reserve 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 25%of annual expenditures
Removal)
667 Storm Sewer No reserve requirement-Capital fund-spend down to zero
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Fund Fund Name Cash Resent! Polk)
670 Century Center Operations 25%of annual expenditures
671 Century Center Capital $800,000 minimum
672 Century Center Energy Conservation No reserve requirement
Bond
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 No reserve requirement-Bond capital fund-spend down
Capital to zero
760 2017 Eddy Street Commons $2,500,000 minimum per bond covenant
Bond Debt Service
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