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HomeMy WebLinkAbout2024 Board of Finance Annual Investment ReportANNUAL INVESTMENT REPORT to the CITY OF SOUTH BEND BOARD OF FINANCE For the Year Ended December 31, 2024 Report Date: Report Distribution: Submitted By: January 27, 2025 South Bend Common Council Members Mayor Deputy Chief of Staff City Clerk Common Council Attorney Corporation Counsel State Board of Accounts (local office) 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 (12/31/24) ................................................................................................5 – 20 Year-End Cash Report (12/31/24 – preliminary) .............................................................. 21 – 23 Cash Management & Investment Policies ........................................................................... 24 – 32 INVESTMENT OFFICERS City Controller: Director of Treasury: Kyle J. Willis 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 1st Source Bank 3 INVESTMENT REVIEW MEETINGS QUARTER DATE TIME 1ST Quarter 10:00 A.M. 2ND Quarter 10:00 A.M. 3RD Quarter 10:00 A.M. 4TH Quarter 04/15/2025 07/15/2025 10/15/2025 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) 5 Investment Presentation for City of South Bend Corporate AgencyPrepared by Paul Gifford . The Consumer & Manufacturing Data as of: January 10, 2024 . Labor & Economic Growth Data as of: January 10, 2024 Source: Bureau of Labor Statistics •Third quarter GDP grew by 3.1% in the U.S. and above the original forecast of 2.9%. The increase of 3.1% marked the ninth consecutive quarter of positive economic growth since the first two quarters of negative output in 2022. •Personal Consumption increased 3.7% over the previous quarter, ahead of the 3.3% forecast, and consumption accounted for 80% of total economic growth. Motor vehicles were a positive contributor to GDP for the second consecutive quarter but had been negative every quarter since 1Q2023. •We always highlight intellectual property and its importance in the U.S. economy. Economic output coming from intellectual property increased by 4.1% over the past year and steadily rose to $1.51 TLN in Real GDP dollars for the three-month period ending September 30, 2024. Annualized growth over the past five years has been 8%. •The largest detractor in the quarter was net exports and has detracted for three consecutive quarters. Imports detracted 144 basis points of growth in the quarter while exports added 101. . Interest Rates & Inflation Data as of: January 10, 2024 Account SummaryCity of South Bend Corporate Agency (619062011)Report as of December 31, 2024Asset AllocationTop Holdings % ofMarket ValueMkt ValCash$123,232,67261.0%Fixed Income$78,803,87039.0%Total$202,036,542100.0%UnrealizedAnnual% ofPriceTotal CostMarket ValueAccrualGain/LossIncomeMkt ValFederated Hermes Government Obligations Fund1.00012,823,677.8912,823,677.8932,503.60.00583,605.586.4United States Treasury Note/Bond 2.875% 31 May 20299.4216,975,244.336,959,470.0017,692.29-15,774.33201,250.003.5Wells Fargo Bank NA 4.8% 02 May 2025100.1706,500,000.006,511,050.0025,643.8711,050.00312,000.003.2United States Treasury Note/Bond 4.5% 15 Nov 2025100.1865,991,669.176,011,160.0035,055.2419,490.83270,000.003.0United States Treasury Bill Zero 23 Jan 202599.7525,871,333.335,985,120.00.00113,786.67.003.0United States Treasury Note/Bond 4.625% 30 Sep 202100.9355,067,578.135,046,750.0059,083.10-20,828.13231,250.002.5United States Treasury Note/Bond 5% 31 Aug 2025100.4834,989,062.505,024,150.0084,944.7535,087.50250,000.002.5United States Treasury Note/Bond 4.625% 28 Feb 202100.4054,991,015.635,020,250.0078,573.9029,234.37231,250.002.5Bank of America NA 5.45% 01 May 2025100.3735,000,000.005,018,650.0045,541.1018,650.00272,500.002.5United States Treasury Note/Bond 4.375% 15 Dec 202100.2275,015,221.185,011,350.0010,216.35-3,871.18218,750.002.5JPMorgan Chase Bank NA 4.6% 10 Dec 2026100.0855,000,000.005,004,250.0013,863.004,250.00230,000.002.5All Others132,198,843.81132,473,538.49744,008.27274,694.684,361,243.0065.9Total200,423,645.97200,889,416.381,147,125.47465,770.417,161,848.58100.0 Activity SummaryCity of South Bend Corporate AgencyReport as of December 31, 2024Annual Ending Market ValuesHistory of Asset GrowthMarket Value ReconciliationYearto Date(1 Year)1 Year2 Years3 YearsBeginning Portfolio Value198,874,676.88198,874,676.88193,128,084.84199,106,069.43 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 Earned7,064,958.007,064,958.0011,376,037.4913,277,273.80 Market Appreciation3,170,752.233,170,752.238,204,194.811,758,066.98Ending Portfolio Value202,036,541.85202,036,541.85202,036,541.85202,036,541.85 Holdings DetailCity of South Bend Corporate Agency (619062011)Report as of December 31, 2024UnrealizedAnnualCurrent% ofUnitsTotal CostMarket ValueAccrualGain/LossIncome YieldMkt ValCash Money Market Federated Hermes Government 12,823,677.89012,823,677.8912,823,677.8932,503.60.00583,605.584.5516.4Obligations FundTotal: Money Market12,823,677.8912,823,677.8932,503.60.00583,605.584.5516.4Treasury Bills United States Treasury Bill Zero 5,000,000.0004,871,741.395,000,000.00.00128,258.61.00.0002.502 Jan 2025United States Treasury Bill Zero 5,000,000.0004,904,654.174,979,500.00.0074,845.83.00.0002.506 Feb 2025United States Treasury Bill Zero 5,000,000.0004,889,227.444,963,400.00.0074,172.56.00.0002.506 Mar 2025United States Treasury Bill Zero 5,000,000.0004,892,141.604,923,550.00.0031,408.40.00.0002.515 May 2025United States Treasury Bill Zero 6,000,000.0005,871,333.335,985,120.00.00113,786.67.00.0003.023 Jan 2025United States of Amer Treas Bills 5,000,000.0004,894,014.444,946,600.00.0052,585.56.00.0002.50% T-Bill 03 AprTotal: Treasury Bills30,323,112.3730,798,170.00.00475,057.63.00.00015.5Short Term and CDs American Commercial Bank & 250,000.000250,000.00253,780.00127.403,780.0011,625.004.581.1Trust National AssociatBMO Bank NA .5% 27 Feb 20251,000,000.0001,000,000.00993,900.00479.45-6,100.005,000.00.503.5BMO Bank NA .5% 28 Mar 20251,000,000.0001,000,000.00990,910.0054.79-9,090.005,000.00.505.5BMO Bank NA .7% 28 Apr 20253,000,000.0003,000,000.002,965,290.003,739.74-34,710.0021,000.00.7081.5BMO Bank NA 4.85% 22 Aug 2,000,000.0002,000,000.002,007,720.0035,079.467,720.0097,000.004.8311.02025BMO Bank NA 4.85% 27 May 2,000,000.0002,000,000.002,004,980.0010,098.644,980.0097,000.004.8381.02025 Holdings DetailCity of South Bend Corporate Agency (619062011)Report as of December 31, 2024UnrealizedAnnualCurrent% ofUnitsTotal CostMarket ValueAccrualGain/LossIncome YieldMkt ValBMO Bank NA 4.9% 23 Jun 20252,000,000.0002,000,000.002,006,800.002,953.426,800.0098,000.004.8831.0BMO Bank NA 5% 14 Jul 20252,500,000.0002,500,000.002,509,600.0058,561.659,600.00125,000.004.9811.2BMO Bank NA 5.2% 24 Nov 20251,000,000.0001,000,000.001,009,790.005,698.639,790.0052,000.005.150.5BMW Bank North America 5.15% 250,000.000250,000.00253,555.001,587.333,555.0012,875.005.078.118 May 202026Bank of America NA 4.1% 02 Jul 1,000,000.0001,000,000.00999,450.00.00-550.0041,000.004.102.52025Bank of America NA 4.45% 07 750,000.000750,000.00754,162.5013,441.444,162.5033,375.004.425.4Aug 2026Bank of America NA 4.6% 09 Feb 1,000,000.0001,000,000.001,005,240.0018,526.035,240.0046,000.004.576.52026Bank of America NA 4.8% 06 Apr 2,000,000.0002,000,000.002,017,200.0023,408.2217,200.0096,000.004.7591.02026Bank of America NA 4.85% 30 1,000,000.0001,000,000.001,009,060.0012,623.299,060.0048,500.004.806.5Mar 2026Bank of America NA 5% 15 Sep 1,500,000.0001,500,000.001,509,435.0022,397.279,435.0075,000.004.969.82025Bank of America NA 5.05% 08 4,000,000.0004,000,000.004,054,040.0014,389.0454,040.00202,000.004.9832.0Jun 2026Bank of America NA 5.05% 22 3,000,000.0003,000,000.003,041,820.004,980.8141,820.00151,500.004.9811.5Jun 2026Bank of America NA 5.3% 24 Nov 892,000.000892,000.00901,517.645,180.939,517.6447,276.005.244.42025Bank of America NA 5.4% 22 May 1,254,000.0001,254,000.001,259,454.907,420.935,454.9067,716.005.377.62025Bank of America NA 5.45% 01 5,000,000.0005,000,000.005,018,650.0045,541.1018,650.00272,500.005.4302.5May 2025City National Bank Los Angeles 250,000.000250,000.00250,610.004,767.12610.0010,875.004.339.1California CertificCity Natl Bk Los Angeles Calif 199,000.000199,000.00200,422.851,041.891,422.859,751.004.865.14.9% 24 Nov 2025 Holdings DetailCity of South Bend Corporate Agency (619062011)Report as of December 31, 2024UnrealizedAnnualCurrent% ofUnitsTotal CostMarket ValueAccrualGain/LossIncome YieldMkt ValFirst Federal Savings 260,000.000260,000.00262,225.60785.342,225.6013,650.005.205.1Bank/Huntington IN 5.25% 14First Internet Bank of Indiana 150,000.000150,000.00150,160.50292.60160.506,675.004.445.14.45% 16 Jun 2025Flagstar Bank NA 4.6% 09 Feb 2,000,000.0002,000,000.002,010,480.0036,800.0010,480.0092,000.004.5761.02026Flagstar Bank NA 4.8% 30 Jun 2,000,000.0002,000,000.002,006,200.001,052.066,200.0096,000.004.7851.02025Flagstar Bank NA 5% 28 Aug 20253,000,000.0003,000,000.003,014,820.0051,780.8114,820.00150,000.004.9751.5Flagstar Bank Na 4.4% 20 Oct 2,000,000.0002,000,000.002,003,480.0025,073.983,480.0088,000.004.3921.02025JPMorgan Chase Bank NA 4.5% 250,000.000250,000.00249,945.002,342.47-55.0011,250.004.501.116 Oct 2026JPMorgan Chase Bank NA 4.6% 5,000,000.0005,000,000.005,004,250.0013,863.004,250.00230,000.004.5962.510 Dec 2026JPMorgan Chase Bank NA 4.6% 2,000,000.0002,000,000.002,001,380.0012,350.681,380.0092,000.004.5971.013 Nov 2026KeyBank NA/Cleveland OH 2,000,000.0002,000,000.002,006,960.00.006,960.00105,000.005.2321.05.25% 23 May 2025Medallion Bank/Salt Lake City UT 250,000.000250,000.00254,337.50357.884,337.5011,875.004.669.14.75% 21 Jun 2027Morgan Stanley Bank NA 4.85% 250,000.000250,000.00254,422.503,089.384,422.5012,125.004.766.130 Mar 2027Morgan Stanley Private Bank NA 250,000.000250,000.00254,422.503,089.384,422.5012,125.004.766.14.85% 30 Mar 2027Popular Bank 4.3% 11 Dec 2025250,000.000250,000.00250,440.00530.14440.0010,750.004.292.1Sallie Mae Bank 4.9% 08 Dec 250,000.000250,000.00251,805.00839.041,805.0012,250.004.865.12025TriState Capital Bank 5% 30 Mar 250,000.000250,000.00252,712.503,184.932,712.5012,500.004.946.12026UBS Bank USA 4.35% 20 Jan 250,000.000250,000.00250,612.50387.33612.5010,875.004.339.12026 Holdings DetailCity of South Bend Corporate Agency (619062011) Report as of December 31, 2024Unrealized Annual Current % ofUnits Total Cost Market Value Accrual Gain/Loss Income Yield Mkt ValUnited 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 1.0Dec 2026United 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 .3Mar 2027United 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 1.2Jul 2025United 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 1.0Nov 2025Valley National Bank/Wayne NJ 250,000.000 250,000.00 254,625.00 394.52 4,625.00 12,000.00 4.713 .14.8% 21 Jun 2027Wells 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 .5Jan 2025Wells 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 3.2May 2025Wells 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 .3May 2025Wells 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 .2Jan 2025Wells 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 1.5Jan 2025Wells 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 1.0Nov 2025Wells 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 .32025Total: Short Term and CDs78,730,000.00 79,076,438.49 501,882.10 346,438.49 3,657,593.00 4.625 38.9Total: Cash121,876,790.26 122,698,286.38 534,385.70 821,496.12 4,241,198.58 3.457 60.8Fixed IncomeUS Treasury & Agencies Holdings DetailCity of South Bend Corporate Agency (619062011)Report as of December 31, 2024UnrealizedAnnualCurrent% ofUnitsTotal CostMarket ValueAccrualGain/LossIncome YieldMkt ValFederal Farm Credit Banks 2,000,000.0002,000,000.001,965,540.00500.00-34,460.0012,000.00.6111.0Funding Corp .6% 16 JunFederal Farm Credit Banks 1,000,000.0001,000,000.00951,480.00400.00-48,520.009,000.00.946.5Funding Corp .9% 15 JunFederal Farm Credit Banks 1,000,000.0001,000,000.00995,060.006,083.33-4,940.0021,900.002.201.5Funding Corp 2.19% 21 MaFederal Home Loan Banks 1% 12 5,000,000.0005,000,000.004,741,350.0019,305.55-258,650.0050,000.001.0552.4Aug 2026Federal Home Loan Banks 2,000,000.0002,030,520.001,990,440.0025,437.50-40,080.0082,500.004.1451.04.125% 10 Sep 2027Federal Home Loan Banks 4.5% 1,750,000.0001,757,429.131,753,815.004,156.25-3,614.1378,750.004.490.912 Dec 2025Federal Home Loan Banks 5% 20 500,000.000500,000.00499,380.007,013.89-620.0025,000.005.006.2Mar 2029Federal Home Loan Banks 5.05% 2,500,000.0002,500,000.002,492,975.009,118.05-7,025.00126,250.005.0641.205 Dec 2029Federal Home Loan Mortgage 3,000,000.0003,000,000.003,001,110.0016,800.001,110.00144,000.004.7981.5Corp 4.8% 19 Nov 2026Federal National Mortgage 2,000,000.0002,000,000.001,928,500.0034.72-71,500.0012,500.00.6481.0Association .625% 30 DecUnited States Treasury Note/Bond 5,000,000.0004,809,999.994,798,300.0042,493.20-11,699.99112,500.002.3452.42.25% 15 Feb 2027United States Treasury Note/Bond 7,000,000.0006,975,244.336,959,470.0017,692.29-15,774.33201,250.002.8923.52.875% 31 May 202United States Treasury Note/Bond 5,000,000.0004,966,387.934,998,850.0086,311.1532,462.07206,250.004.1262.54.125% 31 Jan 202United States Treasury Note/Bond 5,000,000.0004,997,656.244,998,700.0063,397.801,043.76212,500.004.2512.54.25% 15 Mar 2027United States Treasury Note/Bond 5,000,000.0004,958,196.485,001,250.0045,535.7043,053.52212,500.004.2492.54.25% 15 Oct 2025United States Treasury Note/Bond 5,000,000.0004,996,875.005,001,250.00587.004,375.00212,500.004.2492.54.25% 31 Dec 2025 Holdings DetailCity of South Bend Corporate Agency (619062011)Report as of December 31, 2024UnrealizedAnnualCurrent% ofUnitsTotal CostMarket ValueAccrualGain/LossIncome YieldMkt ValUnited States Treasury Note/Bond 5,000,000.0005,015,221.185,011,350.0010,216.35-3,871.18218,750.004.3652.54.375% 15 Dec 202United States Treasury Note/Bond 6,000,000.0005,991,669.176,011,160.0035,055.2419,490.83270,000.004.4923.04.5% 15 Nov 2025United States Treasury Note/Bond 5,000,000.0004,991,015.635,020,250.0078,573.9029,234.37231,250.004.6062.54.625% 28 Feb 202United States Treasury Note/Bond 5,000,000.0005,067,578.135,046,750.0059,083.10-20,828.13231,250.004.5822.54.625% 30 Sep 202United States Treasury Note/Bond 5,000,000.0004,989,062.505,024,150.0084,944.7535,087.50250,000.004.9762.55% 31 Aug 2025Total: US Treasury & Agencies78,546,855.7178,191,130.00612,739.77-355,725.712,920,650.003.73539.1Total: Fixed Income78,546,855.7178,191,130.00612,739.77-355,725.712,920,650.003.73539.1 Total200,423,645.97200,889,416.381,147,125.47465,770.417,161,848.583.565100.0 ACR Performance Summary Total NetCity of South Bend Corporate Agency (619062011) Report as of December 31, 2024Return DetailsYearto DateMarket Value (1 Year) 1 Year 3 Years 5 YearsTotal Fd Net Fee202,036,542 5.15 5.15 2.46 1.71Cash123,232,672 5.45 5.45 2.98 2.20Fixed Income78,803,870 4.88 4.88 2.33 1.65Total Managed202,036,542 5.24 5.24 2.55 1.80 Benchmark BOA Treasury 1-3 year4.08 4.08 1.50 1.40 .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:May Lose ValueNot Bank Deposits or Other ObligationsNot Bank GuaranteedNot Insured by FDIC or Any Other Government AgencyDisclosure 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 2024 YTD 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 $107,120,006.68 $109,949,854.86 ($51,570.10)($2,881,418.28)$90,817,124.49 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 3,291,001.47 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 652,478.70 26,294.41 39,367.50 -(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 4,844,975.32 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 Recovery 2,174,241.93 1,099,625.79 150,000.00 -949,625.79 3,123,867.72 - - 230 Code Enforcement (18,293.73)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)65,733.94 - - 258 Human Rights Federal Grants 155,013.85 319,423.04 231,051.44 -88,371.60 243,385.45 - - 263 American Rescue Plan 10,144,293.00 187,278.88 9,321,898.00 (28,892.00)(9,163,511.12)980,781.88 - - 264 COVID-19 Response (79,650.24)197,788.64 118,138.40 -79,650.24 -- - 265 Local Road & Bridge Grant 428,020.10 1,139,734.33 1,229,349.67 -(89,615.34)338,404.76 - - 266 MVH Restricted 848,707.45 3,241,616.35 2,936,090.55 46,080.00 351,605.80 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 99,611.66 563,005.85 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 2,042,780.87 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 33,164,846.77 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 1,276.51 --1,276.51 32,783.58 - - 731 Bowman Cemetery 495,643.34 20,080.80 --20,080.80 515,724.14 400,000.00 115,724.14 754 Industrial Revolving Fund 3,050,364.19 2,026,652.78 81,138.84 (64,428.75)1,881,085.19 4,931,449.38 - - Total Special Revenue Funds $89,029,142.64 $100,087,403.33 $102,800,604.57 $3,915,084.80 $1,201,883.56 $90,231,026.20 Debt Service Funds 312 2017 Parks Bond Debt Service 153,345.77 1,194,472.93 1,177,990.00 -16,482.93 169,828.70 - 169,828.70 350 2018 Fire Station #9 Debt Service --341,331.28 -(341,331.28)(341,331.28)341,331.28 (682,662.56) 672 Century Center Energy Conservation Debt Service 32,955.57 512,505.89 393,387.54 -119,118.35 152,073.92 - 152,073.92 752 South Bend Redevelopment Authority 447,521.12 9,405,858.72 5,992,431.26 -3,413,427.46 3,860,948.58 3,860,948.58 - 755 South Bend Building Corporation 231,284.99 1,442,640.28 1,424,542.50 -18,097.78 249,382.77 249,382.77 - 756 2015 Smart Streets Bond Debt Service Reserve 1,751,219.17 1,712,584.27 1,706,393.76 -6,190.51 1,757,409.68 1,757,409.68 - 757 2015 Parks Bond Debt Service 558,162.18 341,364.29 368,381.26 -(27,016.97)531,145.21 531,145.21 - 760 2017 Eddy Street Commons Bond Debt Service 3,668,986.50 172.47 --172.47 3,669,158.97 2,500,000.00 1,169,158.97 Total Debt Service Funds $6,843,475.30 $14,609,598.85 $11,404,457.60 -$3,205,141.25 $10,048,616.55 Capital Funds 287 Fire Department Capital 1,568,458.12 4,885,121.44 3,060,817.54 (345,314.00)1,478,989.90 3,047,448.02 - - 401 Coveleski Stadium Capital 2,799.38 24.11 21,613.26 -(21,589.15)(18,789.77)- - 406 Cumulative Capital Development 199,512.12 713,314.62 548,540.63 -164,773.99 364,286.11 - - 407 Cumulative Capital Improvement 279,499.44 178,147.11 75,000.00 -103,147.11 382,646.55 - - 412 Major Moves Construction 1,602,252.09 208,273.63 884,900.13 -(676,626.50)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 160,803.97 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 329,570.79 13,352.46 --13,352.46 342,923.25 - - 453 Zoo Bond Capital 0.01 -0.01 -(0.01)-- - 455 2021 Infrastructure Bond Capital 922,516.37 27,841.91 276,766.85 -(248,924.94)673,591.43 - - 458 2024 RDA Bond Proceeds (Four Winds)-46,114,179.74 2,027,334.24 -44,086,845.50 44,086,845.50 - - 471 2017 Parks Bond Capital 1,370,919.60 41,823.56 558,335.57 -(516,512.01)854,407.59 - - 759 2017 Eddy Street Commons Bond Capital 25,765.55 1.20 --1.20 25,766.75 - - Total Capital Funds $6,842,877.20 $66,394,109.49 $13,114,406.74 ($676,507.32)$52,603,195.43 $59,446,072.63 Enterprise Funds600 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 (55,582.21)(507,293.45)139,502.13 152,093.07 (12,590.94)610 Solid Waste Operations 766,956.77 8,213,121.47 7,679,398.26 (22,771.24)510,951.97 1,277,908.74 767,939.83 509,968.91 611 Solid Waste Capital 2,734,870.62 3,167,656.88 3,670,445.28 -(502,788.40)2,232,082.22 - - 620 Water Works Operations 7,853,449.64 22,684,347.65 17,674,441.47 9,501.66 5,019,407.84 12,872,857.48 883,722.07 11,989,135.41622 Water Works Capital 6,652,330.24 11,326,147.31 2,432,585.04 (26,000.31)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 - 625 Water Works Sinking (Debt Service)3,665,884.17 150,467.68 175,718.05 (1,222,993.99)(1,248,244.36)2,417,639.81 - 2,417,639.81 626 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 3,040,119.52 123,169.37 --123,169.37 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 (12,327.29)(223,879.39)1,580,380.89 248,735.53 1,331,645.36 641 Sewage Works Operations 19,586,869.93 44,734,039.52 28,690,819.78 199,570.10 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 (12,175.03)(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 4,782,759.66 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 - 5,229,110.26653 Sewage Debt Service Reserve 3,893,415.08 593,351.10 5,354.00 -587,997.10 4,481,412.18 4,481,412.18 - 654 Sewage Works Customer Deposit 1,360,670.15 57,810.46 -128,334.82 186,145.28 1,546,815.43 1,546,815.43 - 655 Project Releaf 461,511.00 476,616.48 397,704.48 2,027.27 80,939.27 542,450.27 99,426.12 443,024.15667 Storm Sewer 2,163,419.99 1,292,495.78 1,601,474.92 (174,055.72)(483,034.86)1,680,385.13 - 1,680,385.13 670 Century Center 838,463.57 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) 671 Century Center Capital 1,102,114.72 174,706.49 223,629.20 -(48,922.71)1,053,192.01 800,000.00 253,192.01 Total Enterprise Funds $86,570,171.94 $104,924,979.28 $77,389,031.46 ($1,970,990.40)$25,564,957.42 $112,135,129.36 Internal Service Funds222 Central Services (680,622.37)10,332,771.22 11,050,761.78 35,561.04 (682,429.52)(1,363,051.89)1,105,076.18 (2,468,128.07) 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 5,848,312.32 278 Take Home Vehicle Police 833,591.47 107,505.21 --107,505.21 941,096.68 750,000.00 191,096.68279 IT / Innovation / 311 Call Center 5,506,547.10 13,456,828.51 12,508,709.97 (54,090.18)894,028.36 6,400,575.46 - - 711 Self-Funded Employee Benefits 9,628,439.54 18,994,008.10 18,734,663.46 (31,020.70)228,323.94 9,856,763.48 4,683,665.87 5,173,097.62 713 Unemployment Compensation 45,823.64 9,297.82 77,729.37 -(68,431.55)(22,607.91)19,432.34 (42,040.25)714 Parental Leave 626,913.42 329,305.02 78,020.76 -251,284.26 878,197.68 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)$1,639,229.01 $24,088,448.05 Fiduciary Funds 701 Fire Pension 392,781.21 3,934,778.41 3,985,174.16 -(50,395.75)342,385.46 398,517.42 (56,131.96) 702 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) 709 Payroll Clearing (29,611.67)--(10,979.94)(10,979.94)(40,591.61)- - 718 State Tax Withholding Fund 322,126.98 --811,550.09 811,550.09 1,133,677.07 1,133,677.07 - 726 Police Distributions Payable 983,965.52 --(155,131.35)(155,131.35)828,834.17 828,834.17 - Total Fiduciary Funds $2,176,034.24 $10,019,140.99 $10,038,344.64 $645,438.80 $626,235.15 $2,802,269.39 Total City Controlled Funds $307,609,463.13 $450,379,538.90 $370,244,909.68 $1,824,594.32 $81,959,223.54 $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 (222,901.46)(9,055,894.97)25,032,559.41 - - 422 TIF - West Washington 1,883,190.20 671,770.71 1,208,356.79 -(536,586.08)1,346,604.12 - - 429 TIF - River East Development Area (NE Dev)14,630,845.93 11,316,089.92 4,392,535.73 933,402.16 7,856,956.35 22,487,802.28 - - 430 TIF - Southside Development Area #1 12,834,453.38 3,827,261.45 8,034,036.39 (7,285.00)(4,214,059.94)8,620,393.44 - - 435 TIF - Douglas Road 604,408.35 376,128.68 --376,128.68 980,537.03 - - 436 TIF - River East Residential Area (NE Res)9,025,377.39 8,126,147.35 6,992,824.48 (27,072.65)1,106,250.22 10,131,627.61 - - 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 3,248,345.97 2,489,603.13 2,312,002.47 19,117.45 196,718.11 3,445,064.08 578,000.62 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)23,248,508.99 457 Series B of the Rental Revenue Bonds -24,509,842.74 7,114,380.36 14,570.00 17,410,032.38 17,410,032.38 - - Total Redevelopment Funds $34,596,386.91 $28,030,504.63 $23,447,401.28 $5,554,184.58 $10,137,287.93 $44,733,674.84 Debt Service Funds 315 Airport 2003 Debt Reserve 1,080,322.84 43,768.90 --43,768.90 1,124,091.74 1,124,091.74 - 328 SBCDA 2003 Debt Reserve 1,806,135.73 73,174.96 --73,174.96 1,879,310.69 1,879,310.69 - 351 2018 TIF Park Bond Debt Service Reserve 1,079,924.27 43,752.77 --43,752.77 1,123,677.04 1,123,677.04 - 352 2019 South Shore Double Tracking Debt Service 20,073.96 1,039,003.28 1,033,625.00 -5,378.28 25,452.24 - 25,452.24 353 2020 TIF Library Bond Debt Service Reserve 326,952.45 15.05 --15.05 326,967.50 326,967.50 - Total Debt Service Funds $4,313,409.25 $1,199,714.96 $1,033,625.00 -$166,089.96 $4,479,499.21 Total Redevelopment Commission Funds $111,976,525.79 $83,238,428.74 $83,632,584.22 $6,215,757.63 $5,836,172.15 $117,812,697.94 Grand Total $419,585,988.92 $533,617,967.64 $453,877,493.90 $8,040,351.95 $87,795,395.69 $507,381,384.61 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. 26 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 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. 27 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 28 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 29 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 30 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 31 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 32