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HomeMy WebLinkAbout5B1 2024 Fiscal Report for RDC - Signed South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana TO: South Bend Redevelopment Commission FROM: Kyle Willis, Controller, City of South Bend DATE: March 27, 2025 RE: Annual Fiscal Report (IC 36-7-14-8) 2024 Fiscal Report A. Overview Under Indiana Code (“IC”) 36-7-14-8(b), the treasurer1 of the South Bend Redevelopment Commission (the “Commission”) is required to report annually to the Commission. The report below provides an overview of the Tax Increment Financing (TIF) activity for fiscal year 2024, including revenues and expenses, as well as 2025 anticipated property tax increment revenues for each allocation area. B. 2024 Revenue For all allocation areas (TIF districts), incremental property tax revenue increased $4.23 million (11.5%) in 2024 compared to 2023. As shown in the table below, there was a positive change in incremental property tax revenue for every TIF district from the prior year. The table also provides projected 2025 revenues, which is assumed to be a 2% increase over 2024 revenues. TIF District FY25 Projected FY24 Actuals FY23 Actuals YoY Change River West TIF District $ 20,930,769 $ 20,520,362 $ 19,559,921 4.9% West Washington TIF District 622,319 610,117 490,344 24.4% River East 1 (Northeast) TIF District 8,386,270 8,221,833 6,216,898 32.2% Southside TIF District #1 3,514,176 3,445,271 2,986,918 15.3% Douglas Road TIF District 353,015 346,093 233,288 48.4% River East 2 (Northeast Residential) TIF District 7,954,585 7,798,613 7,228,216 7.9% Total Property Tax Revenue $ 41,761,134 $ 40,942,289 $ 36,715,585 11.5% 1 Per IC 36-7-14-8(b), the “treasurer” of the Commission is defined as the “fiscal officer of the unit establishing a redevelopment commission.” The Controller is the “fiscal officer” for the City of South Bend. South Bend Redevelopment Commission 2 C. 2024 Expenses The table below summarizes total expenditures in 2024 for each TIF district with a net increase of approximately $22.68 million (59.7%) in comparison to 2023. The majority of expenditures in 2024 are for public improvements. However, $13.53 million was attributed to debt service and approximately $565,000 was attributed to legal, engineering, and administrative service costs. Expenditures in 2024 include the costs incurred for the purchase of the Leighton Healthplex building ($4.00 million) and the Main/Wayne parking garage ($2.70 million). The two expenses are associated with the “Madison Lifestyle District” development, a project for which the City will be reimbursed $11.78 million through a READI grant. The City was reimbursed $556,700 by READI in 2024 and has been reimbursed about $4.86 million so far in 2025. TIF District FY24 Actuals FY23 Actuals YoY Change River West TIF District $ 39,245,605 $ 22,354,045 75.6% West Washington TIF District 1,208,357 99,745 1111.4% River East 1 (Northeast) TIF District 5,176,736 3,834,024 35.0% Southside TIF District #1 8,034,036 6,447,977 24.6% Douglas Road TIF District - - 0.0% River East 2 (Northeast Residential) TIF District 6,992,824 5,236,835 33.5% Total Expenditure $ 60,657,558 $ 37,972,627 59.7% D. Debt Service In 2024, total debt service was approximately $13.53 million and included two revenue bonds reaching maturity—the 2011 Airport Development Area TIF Bond (Refunding 2003) and the 2011 South Bend Downtown Central Development TIF Bond (Refunding 2003). The Commission also issued a $24 million bond in March 2024 for the development of the “Madison Lifestyle District” with payments set to begin in January 2025. TIF District FY24 Debt Service Payments River West TIF District $ 8,195,425 River East 1 (Northeast) TIF District 784,200 River East 2 (Northeast Residential) TIF District 4,554,889 Grand Total $ 13,534,514 E. Year-End Fund Balance TIF District FY24 Actuals FY23 Actuals YoY Change River West TIF District $ 28,107,758 $ 34,088,454 -17.5% West Washington TIF District 1,346,604 1,883,190 -28.5% River East 1 (Northeast) TIF District 21,696,392 14,630,846 48.3% Southside TIF District #1 8,620,393 12,834,453 -32.8% Douglas Road TIF District 980,537 604,408 62.2% River East 2 (Northeast Residential) TIF District 10,131,628 9,025,377 12.3% Grand Total $ 70,883,312 $ 73,066,730 -3.0% Date: 3.27.25_______________________