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Home My WebLink About2013 Comprehensive Annual Financial Reportfiscal year ending on December 31, 2013 CITY OF SOUTH BEND, IN I MAYOR PETE BUTTIGIEG Prepared by: Department of Administration and Finance —,john Murply, City Controller O� SpU T11,& � C U W PEACE a 1865 Comprehensive Annual Finance Report City of South Bend, Indiana For the year ending December 31, 2013 Prepared by: Department of Administration & Finance John H. Murphy, City Controller Jennifer C. Hockenhull, Deputy City Controller U U PEACE 1865 Introductory Section City of South Bend, Indiana Comprehensive Annual Financial Report For The Year Ending December 31, 2013 Table of Contents INTRODUCTORY SECTION Tableof Contents ..................................................................................... ............................... P1 -P3 CityOfficials ................................................................................... ..............................1 Controller's Letter of Transmittal ................................................................. ...........................2 -14 Certificate of Achievement for Excellence in Financial Reporting ..................... .............................15 OrganizationChart ............................................................................................. .............................16 FINANCIAL SECTION Independent Auditor's Report on Financial Statements and Supplementary Schedule of Expenditures of Federal Awards .................. ..........................18 -19 Management's Discussion and Analysis ............................. ..........................20 -38 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position ................................................................... ..........................39 -40 Statement of Activities .......................................................................... .............................41 Fund Financial Statements: Balance Sheet — Governmental Funds ............................................... ..........................42 -43 Statement of Revenues, Expenditures and Other Changes in Fund Balances — Governmental Funds ................................................... .............................44 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................45 Statement of Net Position — Proprietary Funds .................................. ..........................46 -47 Statement of Revenues, Expenses and Other Changes in Fund Net Position — Proprietary Funds ........................................ ..........................48 -49 Statement of Cash Flows — Proprietary Funds. ... ............ .................. 50-51 Statement of Fiduciary Net Position — Fiduciary Funds ........................ .............................52 Statement of Changes in Fiduciary Net Position — Fiduciary Funds... ............................... 53 Notes to Financial Statements .................................................................. ..........................54 -93 Required Sunolementary Information: Schedules of Funding Progress .................................................................. .............................94 Schedules of Contributions from the Employer and Other Contributing Entities .....................95 Budgetary Comparison Schedules — General Fund & Major Special Revenue Funds ..... 96 -103 Budget/GAAP Reconciliation ...................................... ............................... ............................104 Notes to Required Supplementary Information ............................................. ................. 105 -106 III Governmental Funds: Combining and Individual Fund Statements and Schedules: Description — Nonmajor Governmental Funds ..................... ............................... Combining Balance Sheet — Nonmajor Governmental Funds ............................ Combining Statement of Revenues, Expenditures and Other Changes in Fund Balances — Nonmajor Governmental Funds ................. ............................... Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual ....................................... ............................... P1 108 -113 114 -126 127 -139 .........140 -196 City of South Bend, Indiana Comprehensive Annual Financial Report For The Year Ending December 31, 2013 Table of Contents FINANCIAL SECTION (Continued) IV Nonmajor Enterprise Funds: Combininq and Individual Fund Statements and Schedules: Description...................................................................... ............................... Combining Statement of Net Position ............................. ............................... Combining Statement of Revenues, Expenses and Other Changes in FundNet Position ..................................................... ............................... Combining Statement of Cash Flows .............................. ............................... V Internal Service Funds: Combinina and Individual Fund Statements and Schedules: Description.................................................. ............................... Combining Statement of Net Position ......... ............................... Combining Statement of Revenues, Expenses and Changes in FundNet Position ................................. ............................... Combining Statement of Cash Flows .......... ............................... .......198 199 -200 .......201 202 -203 ................... 205 ................... 206 207 208 VI Fiduciary Funds: Combining and Individual Fund Statements and Schedules: Description.................................................................. ............................... ............................210 Combining Statement of Fiduciary Net Position — Pension Trust Funds ... ............................211 Combining Statement of Changes in Fiduciary Net Position — Pension Trust Funds ............212 Statement of Changes in Assets and Liabilities — Agency Funds .............. ............................213 VII STATISTICAL SECTION FinancialTrends ..................................................... ............................... Net Position by Component — Last Ten Years .... ............................... Changes in Net Position — Last Ten Years ......... ............................... Fund Balances, Governmental Funds — Last Ten Years ................... Changes in Fund Balances, Governmental Funds — Last Ten Years RevenueCapacity ................................................................. ............................... Property Tax Levies and Collections — Last Ten Years ... ............................... Direct and Overlapping Property Tax Rates — Last Ten Years ....................... Detail of Net Assessed Valuation — For Year 2012 Payable 2013 .................. Assessed Value and Actual Value of Taxable Property — Last Ten Years ..... Net Assessed Value of Taxable Property — Last Ten Years ........................... Property Tax Collections — Cash Basis — 2004 to 2013 .... ..... ... — ................... Principal Property Taxpayers — Current and Nine Years Ago ......................... Local Option Income Tax Revenue — Last Ten Years (CEDIT) ...................... Local Option Income Tax Revenue — Last Ten Years (COIT) ........................ Local Option Income Tax Revenue — Last Ten Years (PS LOIT) ................... Total County Option Income Tax Distributions by Taxing Unit — 2004 - 2013 Ten Largest Water Customers — December 31, 2013 ..... ............................... Ten Largest Sewage Works Customers — December 31, 2013 ..................... Gasoline Tax Collections — Cash Basis — Last Ten Years .............................. Wheel and Excise Surtax Collections — Cash Basis — 2004 to 2013 .............. Hotel / Motel Tax Revenue — Last Ten Years .................. ............................... Professional Sports Development Tax — Cash Basis — Last Ten Years......... Cable Television Franchise Fee Collections — Cash Basis — Last Ten Years 'I .........215 .........216 ..217 -219 .........220 .........221 ............222 ............223 ............224 ..225 .. 226 ..227 ..228 ..229 ..230 ..231 ..232 ..233 ..234 ..235 ..236 ..237 ..238 ..239 ..240 City of South Bend, Indiana Comprehensive Annual Financial Report For The Year Ending December 31, 2013 Table of Contents STATISTICAL SECTION (Continued) Debt Capacity .................................................................................. ............................... Computation of Legal Debt Margin — December 31, 2013 ..... ............................... Legal Debt Margin Information — Last Ten Years ..................... ............................... Ratios of Outstanding Debt by Type — Last Ten Years ................ ............................... Computation of Direct and Overlapping Debt — December 31, 2013 .......................... Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures — Last Ten Years .............................. Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita — Last Ten Years ................................................. ............................... Schedule of Revenue Bond Coverage — Water Utility Bonds — Last Ten Years......... Schedule of Revenue Bond Coverage — Wastewater Utility Bonds — Last Ten Years Annual Wastewater Flow Data and Number of Customers ......... ............................... Statement of City -Owned Utility Debt ........................................... ............................... Estimated Debt Service Coverage Calculation of Sewage Works .............................. Estimated Debt Service Coverage Calculation of Water Utility .... ............................... Projected COIT Revenues ........................................................... ............................... Statement of Estimated Cash Flow and Debt Service Coverage ............................... Estimated Tax Increment Revenue — Erskine Village Project ..... ............................... Demographic and Economic Information ....................... ............................... Demographic Statistics — Last Ten Years ..................... ............................... Comparison of Growth Rates in Personal Income for St. Joseph County, The State of Indiana and U.S. Personal Income .... ............................... Principal Employers — Current and Nine Years Ago — December 31, 2013. ..........241 .........242 ..........243 ..........244 ..........245 246 247 248 249 250 251 252 253 254 255 256 ...................... 257 ...............258 -259 ....................... 260 .......................261 Operating and Other Information ..................................................... ............................... Operating Indicators by Function /Program — Last Ten Fiscal Years ........................... Capital Asset and Infrastructure Statistics by Function /Program — Last Ten Years .... New Construction — Number of Permits and Property Values — Last Ten Years......... Full -Time Equivalent City Government Employees by Department — Last Ten Years. Salary Rate Comparison — 1990 to 2013 ....................................... ............................... Insurance Coverage — 2013 .......................................................... ............................... Miscellaneous Statistics — December 31, 2013 ............................ ............................... P3 .......262 .......263 .......264 .......265 266 -267 .......268 .......269 270 -271 CITY OFFICIALS Office Official Term Mayor Pete Buttigieg 01 -01 -12 to 12 -31 -15 Controller Mark Neal 01 -01 -12 to 01 -02 -14 John Murphy 01 -03 -14 to 12 -31 -15 City Clerk John Voorde 01 -01 -12 to 12 -31 -15 President of the Board of Public Works Gary A. Gilot 01 -01 -12 to 12 -31 -13 Common Council Members 16t District Tim Scott 01 -01 -12 to 12 -31 -15 2nd District Henry Davis, Jr. 01 -01 -12 to 12 -31 -15 3`d District Valerie Schey 01 -01 -12 to 12 -31 -15 4th District Fred Ferlic 01 -01 -12 to 12 -31 -15 5th District David Varner 01 -01 -12 to 12 -31 -15 6th District Oliver J. Davis, Jr. 01 -01 -12 to 12 -31 -15 At Large Karen L. White 01 -01 -12 to 12 -31 -15 At Large Derek D. Dieter 01 -01 -12 to 12 -31 -15 At Large Gavin Ferlic 01 -01 -12 to 12 -31 -15 1 120ON COUNTY -CITY BUILDING 227 W. JEFFERSON BLVD. SOUTH BEND, INDIANA 46601 -1830 �F 1 if r�. ' �i' x +, CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR PHONE 574/ 235 -7678 FAX 574/ 235 -9928 DEPARTMENT OF ADMINISTRATION AND FINANCE June 17, 2014 The Honorable Pete Buttigieg, Mayor of the City of South Bend Members of the City of South Bend Common Council Residents of the City of South Bend: The comprehensive annual financial report of the City of South Bend, Indiana (the "City ") for the year ended December 31, 2013 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the government's financial activities are included. Generally Accepted Accounting Principles (GAAP) requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of the Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to complement the MD &A and should be read in conjunction with it. The City of South Bend's MD &A can be found immediately following the independent auditors report. The comprehensive annual financial report is presented in four sections: introductory information, financial information, statistical information and federal compliance information. The introductory section includes this transmittal letter, the City's organizational chart, a list of principal City officials and the Certificate of Achievement for Excellence in Financial Reporting awarded to the City of South Bend for the year ending December 31, 2012. The financial section begins with the independent auditors' report on the City's financial statements and schedules, the City managements' discussion and analysis report, followed by the City's basic financial statements and accompanying notes. The remaining portion of this section includes the combining and individual fund and other financial statements and schedules. The statistical section includes selected financial and demographic information generally presented on a multi -year basis, which has been provided to give the reader a broader understanding of the City. The federal awards compliance section, which includes the results of the supplemental audit of the City's federal awards and the internal controls necessary for compliance, is included in a separate report. The City is required to undergo an annual single audit in conformity with the provisions of the U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments and Non - Profit Organizations, the provisions of Indiana Code section 5- 11 -1 -9 and the requirements of the 9 Indiana State Board of Accounts. Information related to the single audit, including the schedule of federal financial assistance, findings and recommendations, and the auditors' reports on the internal control structure and compliance with applicable laws and regulations, is included in a separate report. The following pages of this transmittal letter begin with a general overview of South Bend and the surrounding area. Also summarized are the key financial, budgetary and property tax controls with which the City is required to comply. The remainder includes a discussion of the prior year's financial challenges and accomplishments, the City's goals and objectives for this year and beyond and other key issues the City is facing along with the impact they may have on current and future budgets. GENERAL INFORMATION The City of South Bend is the county seat of St. Joseph County, Indiana, and is the fourth largest city in the state. The City of South Bend's 2010 U.S. Bureau of the Census population was 101,168. Accordingly, South Bend is classified as a "City of the Second Class" under Indiana statutes (cities with a population of 35,000 to 250,000). The City of South Bend operates with a mayor as chief executive and a nine - member City Common Council composed of six members elected from districts and three members elected at- large. The City provides a full range of traditional general governmental services to its citizens. These services include police and fire protection; sanitation services; the construction and maintenance of highways, streets and infrastructure; recreational activities and cultural events. In addition to general governmental activities, the City exercises oversight over the South Bend Water Works, the South Bend Wastewater Treatment Facility, the Century Center Convention Center, the Morris Performing Arts Center, the Studebaker National Museum, the City of South Bend Redevelopment Commission and Authority, and several downtown parking facilities. Location St. Joseph County lies within the heartland of the manufacturing belt and metropolitan regions of the Upper Midwest and Canada. The City of South Bend is located in the north central part of Indiana, ten miles south of the Michigan state line, and is commonly known to be within the " Michiana" area. The Michiana area is a vibrant and diverse area with a strong economy based on a mix of health care, agricultural, service, manufacturing, education and other commercial and tourism industries. This diverse economic mix creates varied employment opportunities for the area's residents while providing insulation via diversification from future economic downturns. The city is approximately 90 miles east of Chicago and 140 miles north of Indianapolis. Accessibility to transportation, including Interstate 80/90, an international airport (which is the second busiest in the State of Indiana) and the South Shore Line has supported economic growth within the community. Proximity to Chicago, the largest rail and intennodal (rail/truck/ocean/inland waterway) transfer point in the country, is a significant advantage to the City of South Bend as is proximity to the University of Notre Dame with its scenic campus located adjacent to the city limits. 3 St. Joseph County / South Bend - Economic Conditions and Outlook St. Joseph County, with its 2010 U.S. Bureau of the Census population of 266,931, boasts a strong history of manufacturing which continues today. The service industry and retail trade have also flourished, creating a balance that serves the community well. The County experienced a net growth in population of 28,317 (11.8% increase) between 1960 and 2010. After experiencing a reduction of 2.6% during 1969 to 1983, at which time the entire Midwest was at the depth of its economic restructuring and recess, the County's population increased 4.0% between 1983 and 1990 and another 7.5% between 1990 and 2000. The population of St. Joseph County has remained fairly flat during the past decade increasing by only 1,372 residents from 2000 to 2010. The estimated labor force in St. Joseph County is 135,516 workers (US Census Bureau 2007 -2011 Survey 5 -Year Estimates). The workers are typical of the Midwest: well- trained with a strong work ethic. Approximately 87.5% of the area's adult population are high school graduates or higher (as compared to the national average of 75 %) with an estimated 26.2% with a Bachelor's Degree or higher. There are ten colleges, universities and technical schools within South Bend and the surrounding area including the University of Notre Dame; Indiana University South Bend; Bethel College; Saint Mary's College; Purdue University College of Technology at South Bend; Holy Cross College; Trine University South Bend; Brown Mackie College; ITT Technical Institute; and Ivy Tech Community College. At the high school level, there are school -to -work transition programs. As of April 2014, St. Joseph County is experiencing an unemployment rate of 6.6 %, which is higher than the State of Indiana unemployment rate of 5.5 %. The unemployment rate in St. Joseph County is somewhat higher than some of its surrounding counties — Elkhart (5.0 %), LaPorte (7.3 %), and Marshall (5.5 %) in Indiana and Cass (5.9 %) and Berrien (6.8 %) in Michigan (as of April 2014). The employment profile for St. Joseph County provides a good overview of the economic make -up of this community. Employment estimates for the County's major economic sectors are as follows (US Census Bureau 2007 -2011 Survey 5 -Year Estimates Civilian Employed Population): Economic Sector Number Employed % of Total Educational Services, Healthcare, Social Assistance 32,442 26.7% Manufacturing 20,204 16.6% Retail Trade 14,014 11.5% Arts, Entertainment, Recreation, Accommodation, 11,120 9.1% Food Services Professional, Scientific, Management, Administrative, 9,858 8.1% Waste Management Services Finance and Insurance, Real Estate, Rentals, Leasing 6,956 5.7% Construction 6,168 5.1% Transportation and Warehousing, and Utilities 5,644 4.6% Other Services, except Public Administration 5,530 4.5% Wholesale Trade 3,824 3.1% Public Administration 3,334 2.7% Information 2,105 1.7% Agriculture, Forestry, Fishing, Hunting, Mining 514 0.4% Total 121,713 100.00% 4 St. Joseph County presently has an estimated 101,071 households with an average per capita personal income of $23,420, which compares to the State of Indiana average per capita income of $24,497 and the United States per capita income of $27,915. The per capita income in St. Joseph County compares favorably with many of its surrounding counties — Elkhart ($21,879), La Porte ($22,968), and Marshall ($22,376) in Indiana and Cass ($23,045) and Berrien ($24,490) in Michigan. Health and education lead the employment statistics for St. Joseph County. The largest employers in St. Joseph County as of December 2013 were as follows: University of Notre Dame (5,590); Beacon Health Systems (3,450); South Bend Community School Corporation (2,880); AM General (2,858); Trinity Health/Saint Joseph Regional Medical Center (2,597); Martin's Super Market (1,555); Meijer, Inc. (1,450); Indiana University– South Bend (1,445); The City of South Bend (1,130); and Wal -Mart (1,245). The following provides a profile of the residents of St. Joseph County (2010 Census Information)• Gender: 48.5% male; 51.5% female Age: 36.2% 0 -24 years of age; 25.3% 25 -44 years of age; 25.3% 45 -64 years of age; and 13.2% 65 years of age and older. Race: 76.0% White; 12.4% Black/African American; 7.1 % Hispanic /Latino; 1.7% Asian; and 2.8% Other Marital Status: 46.1% Married; 53.9% Single /Widowed/Divorced/Other Home Ownership: 70.7% own; 29.3% rent/other The cost of living continues to be one of the greatest advantages of living in this community. The housing costs in South Bend are well below the national and regional averages. Per a report compiled by the National Association of Realtors in the first quarter of 2014, the median sales price for a single family home in the South Bend - Mishawaka Statistical Area was $85,700 as compared to a median sales price of $176,900 in Chicago and $132,900 in Indianapolis. The national median sales price is $191,600. The City of South Bend continues to place high emphasis on a growing and diversified local economy. It has been active in developing ten industrial parks, offering itself as a low -cost alternative to the Chicago metropolitan area to companies engaged in light manufacturing, distribution and services. More than 240 businesses operate in South Bend's industrial parks, including companies engaged in metalworking, plastics, warehousing and distribution, and professional services. In recent years, the City has developed Innovation and Ignition parks, the first dual -site, state - certified technology park in the State of Indiana. i The South Bend Community School Corporation serves the entire City and some of the surrounding area and has a current enrollment of approximately 19,014 students in grades kindergarten through high school. An estimated 5,438 students attend private or parochial schools within the City. The nine institutions of higher education and technical training located within the South Bend area have a total enrollment of approximately 33,500. Over the years, the University of Notre Dame has provided a stabilizing influence on the economy with a very significant positive economic impact upon the community. South Bend History and Amenities In 1820, Pierre Navarre of the American Fur Trading Company was the first settler in the area to become later known as South Bend. South Bend has continued to progress in its growth since 1842 when Father Edward Sorin named his rustic log chapel "Notre Dame du Lac" and began to teach the local Indians. Today the chapel has grown into the University of Notre Dame. In 1852,14.C. Studebaker started the industry of making wagons and horse -drawn buggies that evolved into the manufacturing of the Studebaker automobile. It made the name Studebaker synonymous with the area of South Bend and its major employer until its closure in 1963. Another industrial firm that would later become the area's largest began in 1923 when Vincent Bendix began manufacturing automotive brakes. In 1929, the company became the Bendix Aviation Corporation, and now, as Honeywell (formerly AlliedSignal Inc.), is a leading manufacturer of automotive and aerospace products. The Singer Sewing Company and the Oliver Chilled Plow Works were other important companies during the early history of South Bend. Special attractions within the South Bend area include the Olympic -class East Race Waterway and the East Bank area; the renovated Morris Performing Arts Center, which provides for the Broadway Theater League, the South Bend Symphony Orchestra with the Chamber and Pops Orchestras, and the Southold Dance Theater and Patchwork Dance Company; the award - winning South Bend Civic Theater; the Studebaker National Museum; the South Bend Museum of Art; the Snite Museum of Art at Notre Dame; the Northern Indiana Center for History; Copshaholm/The Oliver Mansion; Century Center; Potawatomi Zoo; the Morris Conservatory /Muessel- Ellison Tropical Gardens; Healthworks! Kids Museum; the Farmers' Market; and the Belleville Softball Complex. The Four Winds Field Baseball Stadium is a 5,600 -seat facility which opened in 1987 and is rated among the best in minor league baseball. The stadium is home to the South Bend Silver Hawks, a minor league team affiliated with the Arizona Diamondbacks. During 2011, the Silver Hawks were sold to Chicago businessman, Andrew Berlin, who has forged a strong partnership with the City and plans to keep the team in South Bend for many years to come. Total attendance of approximately 237,000 for 2013 was up 25% from 2012's total attendance of 189,575 and doubled since 2011's season total attendance of 112,795. Additional miscellaneous inforination about the City of South Bend can be found in the statistical section of this report. i Financial, Budgetary and Property Tax Controls The City's management team is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit. As a recipient of federal and state financial assistance, the City also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management of the City. As part of the City's single audit described earlier, tests are performed to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. The results of the City's single audit for the year ended December 31, 2013 are included in a separate report. Budgetary Controls. In accordance with Indiana statutes, the City maintains budgetary controls integrated within the accounting system. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget (prepared on a cash basis) which is adopted by the City Common Council or Redevelopment Commission (depending on the fund) and then reviewed and approved by the State of Indiana Department of Local Government and Finance (DLGF). Activities of the general fund, special revenue funds, capital project funds, enterprise funds, internal service funds, pension trust funds and debt service funds are included in the annual budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by major budget classification within funds. The Mayor and Common Council may transfer appropriations from one major budget classification to another within a department by ordinance as long as the total appropriations for that fund are not exceeded. Additional appropriations in excess of the original budget must be approved by the Mayor and Common Council and are also submitted to the DLGF for either approval or acknowledgement (depending on the fund). Additional appropriations for funds approved by the Redevelopment Commission do not require DLGF approval. Beginning in budget year 2009, the City must also submit its annual budget to the St. Joseph County Common Council for a non - binding review and recommendation. The deadline for adoption of the annual budget is November 1. The city's fiscal year begins on January 1. The City maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts do not lapse at year end and are carried over to the following year as a part of the subsequent year's budget. 7 Property Tax Controls. In addition to budgetary and other controls established by Indiana statute, the City must operate within specific and rigid controls governing the amount of property tax it may levy. The property tax control program, which began in 1973, limits the amount of property tax that may be levied by each unit of government in its legally budgeted funds. The total amount of property tax levied by the unit may increase by the six year average annual growth in Indiana personal non -farm income, as calculated by the U.S. Bureau of Economic Analysis, with a 6% maximum. During March 2008, the State of Indiana General Assembly enacted property tax . reform legislation which made significant changes in the property tax system by capping the amount of property taxes at 1 % of grossed assessed value for residential homesteads, 2% for agricultural /rental properties and 3% for all other real and personal property. This legislation was phased in over a two year period beginning in 2009. The loss of revenue to the City due to this legislation was significant but has been overcome by cost savings and the adoption of local option income taxes to in order to continue providing essential City services, including police and fire protection. A historical view of the City's tax rate and its net assessed valuation has been included in the statistical section of this document. Citywide Goals and Objectives for 2014 and Beyond The City has developed eight broad goals that focus on the following areas: economy, safety, quality of life, trust, responsiveness, infrastructure, finance and workforce. The City has identified various objectives that are tied directly to these goals which, if achieved, will result in the attainment of these goals. The eight goals are listed below. GOAL ONE: The Community's Economv Improve South Bend's economy to ensure a vigorous local business climate; ample employment, business and investment opportunities for all our customers; and a tax base that is sufficient to meet the needs of the City, its residents and other customers. GOAL TWO: The Community's Public Safety and Civility Improve South Bend's public safety and civility to ensure that every resident and other customers can live, work, play, run a business and raise a family in a humane, pleasant and safe environment; have adequate, affordable and timely access to all forms of emergency services; and can contribute and participate in a community where people of different backgrounds live in mutual respect and harmony. i GOAL THREE: The Community's Quality of Life Improve South Bend's quality of life to ensure that every resident and every family can earn an adequate income; secure adequate housing; live in a safe, pleasant and humane neighborhood; enjoy a wide range of social, cultural and recreational opportunities; and have access to quality educational and medical services within an excellent natural and manmade environment. GOAL FOUR: Trust in City Government Improve residents' trust in City government to ensure that South Bend has a broad base of consensus and support on which to build the future, a strong foundation for collaborative action and community partnerships; and an increase in resident and customer participation in the daily public life of the community. GOAL FIVE: The City's Responsiveness, Efficiency, and Effectiveness Improve the responsiveness, efficiency, and effectiveness of City government to ensure that the City's customers get the value they expect and deserve. GOAL SIX: The City's Infrastructure Improve the City's infrastructure to ensure that South Bend can support physical growth and economic development; and offer an excellent quality of life to all of its residents and other customers. GOAL SEVEN: The City's Financial Condition Improve the financial condition of City government to ensure that South Bend has the financial resources necessary to achieve all of its goals during the next five years, while maintaining its strong credit rating. GOAL EIGHT: The City's Workforce Improve the City government's existing workforce, work environment and human development systems to ensure that South Bend has the human resources necessary to achieve all its goals during the next five years. City Mission Statement and Department Purpose Statements The City provides services to its customers through thirteen administrative departments. These departments have unique purposes that are intended to support the citywide mission statement which is "to be recognized as a model city." Each department has developed a purpose statement which identifies their specific role. 9 Mayor's Office: Leading the community to become a model city through formulating policy, directing operations and responding to customer concerns. Common Council: Making certain that our City government is always responsive to the needs of our residents and that the betterment of South Bend is always our highest priority. City Clerk's Office: Preserving all City Ordinances and Council meeting minutes for generations yet to be, and providing fair and consistent treatment of our Ordinance Violations Bureau customers. Administration and Finance: Providing financial and organizational stability for the City through sound financial and human resources management while ensuring the existence of a safe work environment, quality employee benefits and equal treatment for all City employees. Legal Department: Providing superior, professional and ethical legal services for our client, the City of South Bend. Police Department: Protecting the life, property and personal liberties of all individuals; improving the overall quality of life by deterring criminal activity and respecting cultural diversity; delivering fair and impartial law enforcement services to all residents. Fire Department: Providing the highest level of fire protection and emergency medical services possible to all of our customers, saving lives and property, and striving to become a model Fire Department for other cities in an efficient and cost - effective manner. Code Enforcement: Maintaining and improving the physical quality of life in our neighborhoods. Parks and Recreation: Offering all residents and guests of South Bend the highest quality of recreational and leisure activities, while providing well- managed parks and recreational facilities with updated programming and friendly productive service. Community Investment (Econ Dev): Creating and expanding opportunities through partnerships in neighborhood revitalization, commercial and industrial development and community enhancement. Public Works: Providing leadership in the development and delivery of engineering, fleet, 10 transportation, sanitation, wastewater, water and other services as called upon by our customers. Building Department: Serving our customers by inspecting, informing and ensuring a safe place to work, play and live. Century Center: Providing a state -of -the -art convention facility with excellent services to customers while generating maximum economic benefit to our community. Buildinp- South Bend in 2014 and beyond The City Administration's theme for the past several years has been "We're Building South Bend." That theme has had a major influence on the development of the 2014 budget. There are five areas of concentration that became or remained budget priorities for 2014. • We're Building Neighborhoods - The City continues with its strong commitment to neighborhoods. The City will make a significant investment to fund or leverage state and federal funding for housing assistance, development and home ownership programs, neighborhood public works and parks, neighborhood development for social services and organizations, and public safety initiatives. Committing these resources will help us maintain, improve and support strong neighborhood development. • We're Building a Safe City - Public safety is the foundation of all the City's efforts to build South Bend. Through the targeted and creative use of available resources, the City is working to provide quality police, fire and ambulance services for the community. The crime rate has decreased in several significant categories over the past year. The City's Fire Departments is rated one of the best in the State. A key initiative will focus on community policing, group violence, and placing more emphasis on training and recruitment for the Police and Fire Departments. • We're Building an Attractive City - We are working to enhance the natural and man -made beauty of our city through effective City programs. The City has taken steps through its Department of Code Enforcement and a Mayoral Task force to address the issue of vacant and abandoned properties. The City is funding major programs to renovate the former Studebaker Corridor area and other parts of the City. The City has been recognized as a Bicycle Friendly Community by the League of American Bicyclists and has established over 60 miles of bicycle routes to date. • We're Building Opportunity - A key issue for any city is education and opportunity for young people. The City is committed to keeping schools open in our neighborhoods and to maximizing their use by the community. We are building partnerships with the South Bend School Corporation and other key stakeholders that will create new strategies for enhancing our formal educational systems. Working together with families, student groups, school officials, neighborhoods, the faith community and civic organizations, we can support our local schools and improve the level of individual student performance. 11 We're Building a Strong Economy - Local government plays a key role in economic development. By providing adequate infrastructure and offering targeted assistance, the City can stimulate private investment, creating business opportunities and jobs. The City's policies encourage new start-up businesses, strengthen existing business, attract new jobs, increase assessed value and emphasize direct investment in hard -to- develop areas. Efforts have been and will continue to focus on implementing the comprehensive plans for the areas around the East Bank and the downtown areas. The City.has had many significant economic development projects including Eddy Street Commons, a $220 million dollar mixed -use development south of Notre Dame, with more than 20 stores and restaurants, office space and hundreds of town homes, apartments and condominiums. In addition, the City has created Indiana's first dual -site, state - certified technology park site known as Innovation Park and Ignition Park. Mayoral Leadership Mayor Pete Buttigieg, a Harvard University graduate and Rhodes scholar, assumed office on January 1, 2012, bringing with him a group of leaders with new ideas and energy to implement transformational reform to city government. Elected at age 29, Mayor Buttigieg is the youngest chief executive of a municipality exceeding 100,000 residents in the United States. During 2012, Mayor Buttigieg launched eight new initiatives to improve city government: 1. New Economic Partnerships —to layout anew economic vision for our community as well as to agree on a smarter division of labor among various groups involved in economic development. 2. High Ethical Standards — on his first day in office the Mayor issued an executive order introducing a new ethics code for City employees. 3. Customer Service Mentality — design ways that City employees can track and resolve citizens' issues efficiently by using more advanced technology. This effort led to the creation of a "311 Call Center" for non - emergency municipal telephone calls during 2012. 4. Strong Partnerships with Schools —the Mayor has improved dialogue with the South Bend School Corporation and other stakeholders to ensure a strong educational system in the City. The Mayor has begun programs to double the number of public school mentors and curb youth and gun violence. 5. Transparency and Accessibility — choosing not to serve from behind his desk, Mayor Buttigieg has conducted a series of monthly "Mayor's Night Out" and "Mayor's Night In" events around town to allow citizens to speak to him and his department heads directly about concerns and ideas. Also, efforts to implement a first -class performance management system have been initiated and departmental performance measures are being monitored on a monthly basis. The City website has been re- designed and additional financial and operational reports are being made available online. 12 6. Vacant and Abandoned Buildings – as with many large cities, the City of South Bend has an issue with vacant and abandoned buildings. The city has taken on this issue with the appointment of a blue- ribbon task force that developed new strategies and initiated an aggressive three -year program -1,000 buildings in 1,000 days —to reduce the number of vacant and abandoned buildings. Funding for demolition and remediation has increased significantly and is over $2.0 million dollars in the 2014 budget. 7. Smart Streets – an effort to improve the role of streets within South Bend. Projects within this initiative utilize the "Complete Streets" philosophy which advocates for the design of streets to enable safe access for all users, including pedestrians, bicyclists, motorists and transit riders of all ages and abilities. 8. South Bend Group Violence Intervention ( SBGVI) – unites community leaders around a common goal: to stop gun violence and keep South Bend's highest risk citizens alive and out of prison. SBGVI is a partnership among 30 community leaders from law enforcement, government, education, civil service, health -care and faith -based agencies. Administration Vision The administration of Mayor Buttigieg has a single, overarching vision —a safe, inclusive and well - connected South Bend. In support of this vision, the Mayor has established three main pillars of administration policy: 1. Basics are easy – it is essential to provide City residents basic services so seamlessly that they take them for granted and are able to focus on their own families and daily challenges. 2. Good government – make government more accessible and accountable to those it serves by adopting a people- focused approach, trading partisanship for partnership and using technology to better serve all residents. 3. Create Jobs – focus on economic growth and make much needed investments in the future. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of South Bend for its comprehensive annual financial report for the fiscal year ended December 31, 2012. This was the 23rd consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. 13 Acknowledgments The preparation of the comprehensive annual financial report (CAFR) was made possible by the dedicated service of the City's departmental fiscal officers and the staff of the Department of Administration and Finance. Each fiscal officer and member of the Administration and Finance Department has our sincere appreciation for the contributions made in the preparation of this report. We would especially like to acknowledge the efforts of the core CAFR preparation team of Rahman Johnson, Cecil Eastman and Danny Cocanower. In addition, we would like to thank the Field Examiners of the Indiana State Board of Accounts (led by Doug Wiese, Bruce Snyder and Alex Flores) for their hard work and dedication in this effort. In closing, without the leadership and support of Mayor Pete Buttigieg, Deputy Mayor Mark Neal, City Department Heads, and members of the City of South Bend Common Council, preparation of this report would not have been possible. Sincerely, JoYin H. Murphy, MPA Jennifer Hockenhull, CPA City Controller Deputy City Controller 14 I � Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of South Bend Indiana For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2012 Executive Director /CEO 15 —4 C) Board of Public Safety (1) Police Department I I Fire Department (Chief) (Chief) City of South Bend, Indiana Organizational Chart City Council r.............................. Board of Parks & Recreation (1) Parks & Recreation (Superintendent) -Technical Services Division -Fire Prevention - Park Administration Division - Investigative Division - Administrative Services Division - Park Maintenance Division - Uniform Patrol - Firefighting Operations Division - Recreation Division Community Relations Division . EMS Division Potawatomi Zoo Division - Golf Division Citizens of South Bend Mayor .... ---------------- Board of Public Works (1) Public Works (Director) Engineering Division Streets Division - Water Works Division Sewage Division - Central Services Division - Solid Waste Division - Energy Office City Clerk ---------------- t ----------- ---- Century Center Board of Managers (2) Century Center (Director) Morris Entertainment Board (3) Morris Performing Arts Center (Director) Redevelopment Authority/ Commission (4) Economic Development Economic Development Community Development - General Administration Legal Department (City Attorney) Code Enforcement (Director) Consolidated Building Department Administration & Finance (City Controller) - Hearing Officer - City Finance & Budgeting - Neighborhood Code Enforcement - Human Resources - Abandoned Vehicles - Benefits Management - Unsafe Building - Information Technology - Animal Control - Safety & Risk Management - Bureau of Weights and Measures - Human Rights - Purchasing (1) Board Members include Mayoral Appointments (2) Board Members include Mayoral and Council Appointments (3) Board Members include Citizen Appointments (4) Board Members include Mayoral and Council Appointments for Redevelopment Commission, Mayoral Appointment for Redevelopment Authority Effective as of January 1, 2011 T U b PEACE 865 II Financial Section 17 STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET -mot ROOM E418 INDIANAPOLIS, INDIANA 46204 -2769 Telephone: (317) 232 -2513 Fax: (317) 232 -4711 Web Site: w-ww.in.gov /sboa INDEPENDENT AUDITOR'S REPORT TO: THE OFFICIALS OF THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City of South Bend (City), as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We con- ducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to ob- tain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assess- ment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the cir- cumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal con- trol. Accordingly, we express no such opinion. An audit includes evaluating the appropriateness of account- ing policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City, as of December 31, 2013, and the respective changes in financial position and cash flows, where applicable, thereof and for the year then ended, in accordance with accounting principles generally accepted in the United States of America. 18 INDEPENDENT AUDITOR'S REPORT (Continued) Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedules of Funding Progress, Schedules of Contributions From the Employer and Other Contributing Entities, and Budgetary Comparison Schedules, as listed in the Table of Contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who con- siders it to be an essential part of financial reporting for placing the basic financial statements in an appro- priate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City basic financial statements. The accompanying introductory section, combining and individual fund financial statements, other budgetary comparison schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and other budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining fund financial statements and other budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and statistical schedules have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 17, 2014, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City's internal control over financial reporting and compliance. June 17, 2014 19 Paul D. Joyce, CPA State Examiner Management Discussion & Analysis The Management of the City of South Bend, Indiana ( "City ") provides herewith this Management Discussion & Analysis ( "MD &A ") of the financial activities and condition of the City of South Bend, Indiana for the fiscal year ended December 31, 2013. Readers of the information contained within this Management Discussion & Analysis, and any opinion derived therein, should be considered as a part of the greater whole of the financial statements, notes to the financial statements, supplemental information and letter of transmittal, as contained within this Comprehensive Annual Financial Report ( "CAFR "). The City of South Bend is the county seat of St. Joseph County, Indiana, and is the fourth largest city in the State of Indiana. St. Joseph County is located within the heartland of the manufacturing and metropolitan regions of the Upper Midwest. The City of South Bend is located in the north central region of the State of Indiana, five (5) miles south of the Indiana /Michigan State boundary line. The City is approximately ninety (90) miles east of the city of Chicago and one hundred forty (140) miles north of the city of Indianapolis. The 2010 U.S. Bureau of the Census population for the City of South Bend was reported as 101,168 and the 2010 Census population for St. Joseph County was reported as 266,931. Accordingly, South Bend is classified as a "Second Class City" under State of Indiana statutes, defined as cities with a population between 35,000 and 600,000 residents. South Bend and St. Joseph County is a vibrant and diverse area with a strong local economy based on a mix of agricultural, manufacturing and service, higher education and other commercial and tourism based industries. The diverse economic mix creates varied employment opportunities for residents while providing insulation via diversification from economic downturns. The City of South Bend provides a full range of general governmental services to citizens. Services include general government, public safety, street construction and maintenance, infrastructure con- struction and maintenance, parks and recreation services, arts and culture, and sanitation services. In addition, the City provides Water Utility and Wastewater Utility services to commercial and residential properties within the City. City operations also include the Century Center convention venue, Morris Performing Arts Center, Palais Royale Ballroom, Studebaker Museum, South Bend Redevelopment Authority, and Public Parking Garages within the city footprint. The City of South Bend governmental structure includes elected officials as follows with defined management and legislative authority in compliance with. Indiana Statute. Mayor Chief Executive Officer 4 year term Common Council 9 member legislative body 4 year term 6 from defined districts within the City 3 at large members City Clerk Secretary of the Common Council 4 year term All elected official current terms of office expire on December 31, 2015. The City of South Bend was incorporated in 1865, compliant to Indiana Statute, and remains as such through the period covered by this Management Discussion & Analysis report. I Financial Highlights Management Discussion & Analysis Governmental Business -type Government-wide Activities Activities Activities 2012 2012 2013 (Restated) 2013 2012 2013 (Restated) Assets /deferred outflows 502,405,650 507,008,554 304,776,403 311,488,235 807,182,053 818,496,789 Liabilities /deferred inflows 215,811,805 221,879,951 134,096,229 142,075,868 349,908,034 363,956,819 Net position Capital net of debt 192,190,446 202,779,954 114,506,252 113,193,929 306,696,698 315,973,883 Restricted 7,990,172 8,050,418 48,267,664 29,259,933 56,257,836 37,310,351 Unrestricted 86,413,227 71,992,457 7,906,258 26,957,505 94,319,485 98,949,962 Total net position 286,593,845 282,822,829 170,680,174 169,411,367 457,274,019 452,234,196 Change vs. prior year 3,771,016 4,739,556 1,268,807 7,276,745 5,039,823 12,016,301 Expenses 153,017,817 153,984,307 54,949,283 48,559,092 207,967,100 202,543,399 Revenues 152,263,646 147,341,522 60,743,277 59,715,558 213,006,923 207,057,080 • Government -wide net position was $457,274,019 as of December 31, 2013. • Government -wide net position increased by $5,039,823 or 1.1 percent during fiscal 2013. Governmental activity net position increased by $3,771,016 or 1.3 percent and business -type activity net position increased by $1,268,807 or 0.7 percent during fiscal 2013. • Total assets and deferred outflows of resources as of December 31, 2013, of $807,182,053 decreased by $11,314,736 or -1.4 percent as compared to total assets and deferred outflows of resources as of December 31, 2012. • Total liabilities and deferred inflows of resources as of December 31, 2013, of $349,908,034 decreased by $14,048,785 or -3.9 percent as compared to total liabilities and deferred inflows of resources as of December 31, 2012. • As of December 31, 2013, the government -wide net position of $457,274,019 has $306,696,698 invested in capital assets (net of debt) which is not available for spending, $56,257,836 classified as restricted for debt service and capital outlay, and $94,319,485 classified as unrestricted and may be used to meet ongoing obligations to creditors. • Government -wide revenue received in fiscal 2013 totaled $213,006,923, an increase of $5,949,843 or 2.9 percent versus government -wide revenues received in fiscal 2012. Governmental activity revenue increased by $4,922,124 or 3.3 percent, whereas business -type activity revenue increased by $1,027,719 or 1.7 percent. • Government -wide expenses in 2013 totaled $207,967,100, an increase of $5,423,701 or 2.7 percent compared to expenses of $202,543,399 in 2012. Government activity expenses decreased by $966.,490 or -0.6 percent and business -type activity expenses increased by $6,390,191 or 13.2 percent compared to fiscal 2012. • Explanatory commentary concerning the changes in assets, liabilities, revenue, and expenditures can be found in later sections of this MD&A. 21 Management Discussion & Analysis Overview of the Financial Statements The City of South Bend's financial statements are comprised of three components: (1) government - wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also includes other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements The government -wide financial statements are designed to provide readers with a broad overview of the City of South Bend's finances using "accrual based accounting," a method of accounting used by private- sector businesses. • Statement of Net Position This statement reports all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the City of South Bend as of December 31, 2013. The difference between total assets and deferred outflows of resources less total liabilities and deferred inflows of resources is reported as "net position," and can generally be thought of as the net worth of the City. Increases in net position generally indicate an improvement in financial position while decreases in net position may indicate a deterioration of financial position. • Statement of Activities This statement serves the purpose of the traditional income statement. It provides con- solidated reporting of the results of all activities of the City of South Bend for the year ended December 31, 2013. Changes in net position are recorded in the period in which the underlying event takes place, which may differ from the period in which cash is received or disbursed. The Statement of Activities displays the expense of the City's various programs net of the related revenues, as well as a separate presentation of revenue available for general purposes including property and county option income taxes, fees for services and other revenue sources. The government -wide financial statements distinguish between functions of the City that are prin- cipally supported by taxes and intergovernmental revenue (governmental activities) and other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The major governmental activities of the City of South Bend include general government, public safety, street construction and maintenance, infrastructure con- struction and maintenance, parks and recreation services, and arts and culture. The major business - type activities of the City include the water utility, wastewater utility, solid waste sanitation services, Century Center convention center, and Blackthorn golf course operations. Fund Financial Statements A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the City of South Bend can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 22 Management Discussion & Analysis Governmental funds Governmental funds are used to account for the same functions reported as governmental activities in the government -wide financial statements. However, unlike government -wide financial statements, governmental fund financial statements focus on short-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's short-term financing requirements. Governmental funds use the modified accrual accounting method. The City maintains six (6) major governmental funds (General, Parks and Recreation, Public Safety Local Option Income Tax, County Option Income Tax, Economic Development income Tax, and Airport TIF) and sixty -two (62) non - major governmental funds. Proprietary Funds The City of South Bend maintains two types of proprietary funds: enterprise and internal service. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City maintains seven (7) enterprise funds. Information is presented separately in the proprietary statement of net position and the proprietary Statement of Revenues, Expenses, and Changes in Fund Net Position for the Water Utility, Wastewater utility and Century Center Convention Center, which are considered major enterprise funds. Data from the other four (4) non - major enterprise funds (Consolidated St. Joseph County /South Bend Building Department, Parking Garage, Solid Waste and Blackthorn Golf Course) are combined into a single, aggregated presentation. Individual fund data for each of these non -major enterprise funds is provided in the form of combining statements elsewhere in this report. Internal service funds are used to accumulate and allocate costs internally among the City's various functions and funds. The City maintains five (5) internal service funds. The City of South Bend uses internal service funds to account for its self- funded liability insurance program, self- funded employee health benefits program, unemployment compensation claims, police take -home vehicle program .and central services unit (a department that accounts for expenses related to fuel, vehicle repairs, printing, and other services provided to City departments on a cost - reimbursement basis). Because these services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements but are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in the report. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the City government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support City programs. The City maintains five (5) fiduciary funds, which consist of two (2) pension trust funds (1925 Police Pension and 1937 Firefighter's Pension), two (2) agency funds (Payroll and Morris /Palais Royale Box Office), and one (1) private - purpose trust fund (City Cemetery). Pension Trust Fund Operations City employees are covered by the Public Employees Retirement Fund ( "PERF ") and the 1977 Police Officers' and Firefighters' Pension Fund, both of which are administered by the State of Indiana. However, certain police officers and firefighters hired before May 1, 1977, (who did not opt into the 1977 fund) continue to be members of the 1925 Police Officers' Pension Fund or the 1937 Firefighters' Pension Fund. These two funds are administered by the City. The number of police officers and firefighters in the City- managed pension trust funds will continue to decline in the future as current participants pass away. 23 Management Discussion & Analysis Effective in fiscal 2009 with the passage of State legislation, funding responsibility for the 1925 Police and 1937 Firefighter's Pension Funds was assumed by the State of Indiana. These funds no longer receive property tax revenue distributions beyond fiscal 2009. The transfer of pension responsibility to the State of Indiana is on a reimbursement basis and will not provide additional revenue to the City for use in other property tax funded areas. The administration of the pension plans remains the responsibility of the City. Notes to the Financial Statements The notes to the financial statements provide additional information that is essential in order to have a full understanding of the data provided in the government -wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes and disclosures, this CAFR report presents supplementary information. The combining statements referred to earlier in connec- tion with nonmajor governmental, enterprise, internal service, and fiduciary funds are presented immediately after the basic financial statements within the financial statement section of the CAFR report. Government -wide Financial Statements The following financial analysis will focus on the Statement of Net Position and Statement of Changes in Net Position of the City's governmental and business -type activities. Statement of Net Position Governmental Business type Government -wide Activities Activities Activities 2012 2012 2013 (Restated) 2013 2012 2013 (Restated) Assets Current & other 218,030,938 212,405,426 71,410,179 87,285,352 289,441,117 299,690,778 Capital assets (net) 284,374,712 294,607,604 231,494,566 222,492,214 515,869,278 517,099,818 Total Assets 502,405,650 507,013,030 302,904,745 309,777,566 805,310,395 816,790,596 Deferred Outflows - - 1,871,658 1,710,669 1,871,658 1,710,669 Liabilities Current 30,589,281 33,851,096 15,240,917 14,244,876 45,830,198 48,095,972 Longterm 184,657,140 187,369,257 118,317,952 127,793,032 302,975,092 315,162,289 Total Liabilities 215,246,421 221,220,353 133,558,869 142,037,908 348,805,290 363,258,261 Deferred Inflows 565,384 659,598 537,360 38,960 1,102,744 698,558 Net position Capital net of debt 192,190,446 202,779,954 114,506,252 113,193,929 306,696,698 315,973,883 Restricted 7,990,172 8,050,418 48,267,664 29,259,933 56,257,836 37,310,351 Unrestricted 86,413,227 71,992,457 7,906,258 26,957,505 94,319,485 98,949,962 Total net position 286,593,845 282,822,829 170,680,174 169 ,411,367 457,274,019 452,234,196 • As of December 31, 2013, total assets and deferred outflows exceeded liabilities and deferred inflows by $457,274,019, an increase of $5,039,823, or 1.1 percent, from the net position level as of December 31, 2012. • Governmental activities net position of $286,593,845 increased by $3,771,016 from December 31, 2012, an increase of 1.3 percent. 24 Management Discussion & Analysis Business -type net position of $170,680,174 increased by $1,268,807 over December 31, 2012, an increase of 0.7 percent. The increase in business -type net position was due primarily to a 9 percent increase in sewer rates which will be used to support long -term capital projects of the Wastewater utility. • Government -wide assets and deferred outflows decreased $11,319,212 or -1.4 percent. as compared to amounts as of December 31, 2012, mainly due to a decrease in govern- mental capital assets as a result of a capitalization policy change. • Government -wide liabilities and deferred inflows decreased by $14,048,785 or -3.9 percent as compared to amounts as of December 31, 2012. The decrease is due mainly to the City's decision to not seek new debt financing for the Wastewater Utility in 2013, unlike the previous 2 years in which the Utility issued bonds of $20 million or more. Statement of Changes in Net Position Governmental Business type Government -wide Activities Activities Activities 2012 2012 2013 (Restated) 2013 2012 2013 (Restated) Revenue Program Revenue Charge for services 13,158,358 12,967,034 59,906,998 57,419,733 73,065,356 70;386,767 Operating grants 21,466,622 24,937,596 - 21,466,622 24,937,596 Capital grants 1,867,213 2,468,120 697,917 2,010,253 2,565,130 4,478,373 General Revenue Taxes General government 13,200,898 16,102,189 Property tax 72,018,650 71,775,415 72,018,650 71,775,415 Othertax 22,811,296 23,360,791 - - 22,811,296 23,360,791 Unrestricted grants 5,893,924 3,891,810 - 5,893,924 3,891,810 Investment earnings 762,269 1,317,443 138,362 285,572 900,631 1,603,015 Other revenue 14,285,314 6,623,313 14,285,314 6,623,313 Total Revenue 152,263,646 147,341,522 60,743,277 59,715,558 213,006,923 207,057,080 Expense General government 13,200,898 16,102,189 - - 13,200,898 16,102,189 Public safety 76,023,819 69,977,237 - 76,023,819 69,977,237 Highways &streets 20,915,815 15,198,102 - 20,915,815 15,198,102 Culture & recreation 26,846,471 21,724,589 26,846,471 21,724,589 Economic development 10,069,690 27,158,034 10,069,690 27,158,034 Interest on long term debt 5,961,124 6,134,406 5,961,124 6,134,406 Water utility - - 15,221,865 12,228,014 15,221,865 12,228,014 Wastewater utility - - 26,390,790 23,809,975 26,390,790 23,809,975 Civic center - - 4,330,656 2,929,268 4,330,656 2,929,268 Building department - 1,131,815 909,376 1,131,815 909,376 Parking - - 1,285,056 1,721,655 1,285,056 1,721,655 Solid waste - 5,091,588 5,118,806 5,091,588 5,118,806 Golf course - - 1,497,513 1,841,998 1,497,513 1,841,998 Total Expense 153,017,817 156,294,557 54,949,283 48,559,092 207,967,100 204,853,649 Change in net position Before transfers /special (754,171) (8,953,035) 5,793,994 11,156,466 5,039,823 2,203,431 Transfers 4,525,187 3,879,721 (4,525,187) (3,879,721) - - Change in net position 3,771,016 (5,073,314) 1,268,807 7,276,745 5,039,823 2,203,431 Beginning net position 282,822,829 287,896,143 169,411,367 162,134,622 452,234,196 450,030,765 (restated) Ending net position 286,593,845 282,822,829 170,680,174 169 ,411,367 457,274,019 462,234,196 25 Management Discussion & Analysis Governmental Activities Net position for government -wide activities increased by $5,039,823 during fiscal 2013. Revenue of $213,006,923 increased by $5,949,843, or 2.9 percent. Expenses were $207,967,100 during 2013, an increase of $3,113,451, or 1.5 percent as compared to fiscal 2012. The revenue increase was due primarily to one -time payments for legal settlements, most notably from the Studebaker - Oliver Brownfield ($3.8 million) and Bosch ($2.0 million). Economic Development expenditures decreased significantly due to the continued phase -out of ARRA but increases in other areas resulted in the minimal net decrease of expenditures noted above. Interest on long -term debt of $5,961,124 decreased by $173,282 from 2012, as the City continued to take advantage of favorable financing rates by either retiring older, higher -rate instruments, or re- financing instruments at better terms. Transfers in the amount of $4,525,187 for 2013 represent payment in lieu of taxes (PILOT) paid by the Wastewater and Water Utilities to the General Fund, Parks and Recreation Fund and other funds that receive property taxes. The transfer amount increased by $645,466 from 2012. Business -Type Activities Net position from business -type activities increased by $1,268,807 during fiscal 2013. During 2013, revenue of $60,743,277 increased by $1,027,719 or 1.7 percent over fiscal 2012. During 2013, expenses of $54,949,283 increased by $6,390,191 or 13.2 percent when compared to fiscal 2012. Revenue increased primarily in the Water and Wastewater Utilities as a result of rate increases which were again offset by lower grant revenues. Financial Analysis of Government Funds The City of South Bend uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Funds of the City are divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Condensed Balance Sheet, Statement of Revenue, Expenditures, and Changes in Fund Balance As of December 31, 2013 General Totalassets 29,689,725 Total liabilities 2,020,812 Park &Rec PS LOIT COIT EDIT TI Airport Other Total 4,388,261 2,030,864 17,495,359 11,284,910 36,673,858 111,348,345 212,911,322 302,843 235,645 696,591 119,988 658,839 11,691,289 15,726,007 Fund Balances: 60,034,428 10,927,283 5,895,440 Non - spendable 656,848 84,308 - 2,597,472 449,831 10,498,432 9,198,433 23,485,324 Restricted - 4,001,110 1,795,219 - - 25,516,587 64,074,963 95,387,879 Committed - - - - - - 20,697,026 20,697,026 Assigned 531,959 - - 14,201,296 10,715,091 - 10,538,803 35,987,149 Unassigned 26,480,106 (4,852,169) 21,627,937 Total fund balance 27,668,913 4,085,418 1,795,219 16,798,768 11,164,922 36,015,019 99,657,056 197,185,315 Liability &fund balance 29,689,725 4,388,261 2,030,864 17,495,359 11,284,910 36,673,858 111,348,345 212,911,322 Revenues 60,034,428 10,927,283 5,895,440 8,421,470 8,769,448 16,908,969 40,195,436- 151,152,474 Expenditures 72,497,416 12,057,938 235,645 7,599,409 2,520,034 6,486,862 51,463,446 152,860,750 Net surplus (deficit) (12,462,988) (1,130,655) 5,659,795 822,061 6,249,414 10,422,107 (11,268,010) (1,708,276) Other sources (uses) 11,336,818 502,315 (6,857,086) (1,807,098) (5,456,519) (1,021,953) 15,264,972 11,961,449 Net change in fund balances (1,126,170) (628,340) (1,197,291) (985,037) 792,895 9,400,154 3,996,962 10,253,173 Beginningfund balances 28,795,083 4,713,758 2,992,510 17,783,805 10,372,027 26,614,865 95,660,094 186,932,142 - restated Endingfund balances 27,668,913 4,085,418 1,795,219 16,798,768 11,164,922 36,015,019 99,657,056 197,185,315 26 Management Discussion & Analysis As of December 31, 2013, the City governmental funds reported a combined ending fund balance of $197,185,315. The Nonspendable fund balance of $23,485,324 is sequestered for property held for resale, inventory, non - current loans receivable and advances to other funds and is, therefore, not available for new spending. The Restricted fund balance of $95,387,879 consists of monies in debt service funds or other funds such as Road funds that are limited by external parties as to their use. The Committed fund balance of $20,697,026 is designated by the South Bend Common Council to be used for certain purposes such as for environmental projects. The Assigned fund balance of $35,987,149 includes balances in local option income tax funds that have not been committed to certain projects and are available for spending by the City. The remaining Unassigned fund balance of $21,627,937 consists of money primarily in the General Fund that has not been obligated in any manner by the City. The General Fund is the primary operating fund for City operations including general government, public safety, code enforcement, certain culture and recreation expenses, and certain debt service obligations. As of December 31, 2013, the General Fund balance of $27,668,913 represents a decrease of $1,126,170 or -3.9 percent from the balance as of December 31, 2012. The decrease was due primarily to degrading tax revenues that continue to challenge City operations. As of December 31, 2013, the General Fund had an unassigned fund balance of $26,480,106 which is equal to 44.1 percent of 2013 General Fund Revenue. The General Fund unassigned fund balance has traditionally been used by the City to fund certain capital projects and emergency contingencies. In addition, the City will use the unassigned fund balance in 2014 as a cash flow bridge to the receipt of property tax revenues from the County collec- tion authority which distributes property tax revenue two times per year (June and December). General Fund unassigned balance will provide sufficient cash to cover City operating obligations without incurring tax anticipation notes and resultant borrowing costs during fiscal 2014. As discussed in Governmental Accounting, Auditing, and Financial Reporting (GAAFR), a general fund unassigned fund balance should be either (1) no less than 5 to 15 percent of regular general fund operating revenues, or (2) no less than one to two months of regular general fund operating expenditures. An unassigned fund balance may be lower if circumstances dictate, such as a delay in collection of a major revenue source. The Parks and Recreation Fund balance decreased $628,340 during fiscal 2013, due primarily to a combination of flat revenues and increased service costs. As of December 31, 2013, the fund balance in the Parks and Recreation Fund was $4,085,418, or 37.4 percent of 2013 revenue. The Public Safety Local Option Income Tax Fund ( "Public Safety LOIT) was created in October 2009, with the local legislative passage of an increase in local option income taxes of 0.95 percent, a part of which (0.25 percent) tax increase was established to fund public safety expenditures. The City has established the Public Safety LOIT Fund as a major governmental fund, due solely to its purpose of creating a funding source to sustain public safety staffing levels, which were compromised by state implementation of property tax reform that has reduced property tax revenues, which historically are the source of public safety funding. Operating transfers are made quarterly from the Public Safety LOIT Fund to the General Fund to cover the personnel costs of police officers and firefighters. Receipts of Public Safety WIT tax revenue commenced in January 2010. The revenue collected in fiscal 2013 of $5,895,440 decreased by $169,660 or -2.8 percent compared to 2012. The decrease in fund balance in the amount of $1,197,291 during 2013 is the result of increased costs for police and fire personnel. 27 Management Discussion & Analysis The County Option Income Tax Fund ( "COIT ") and Economic Development Income Tax Fund ( "EDIT ") funds are used to fund major capital and construction projects, economic development initiatives, certain subsidies and support to organizations and units that benefit city economic de- velopment and cultural venues, certain city -wide expenditures such as telephone costs, and certain debt service payments. The COIT fund decreased by $985,037 during 2013, due to higher expenditures in the areas of public safety, economic development, and general government. The City has operationally sequestered COIT funds for use in major capital and construction funding initiatives, certain subsidies and support to organizations and units that benefit city economic development and cultural venues, information technology costs, city -wide expenditures like telephone costs, and certain debt service payments. As of December 31, 2013, the COIT fund balance of $16,798,768 included assigned fund balance of $14,201,296 and non - spendable fund balance of $2,597,472, primarily for property held for resale and advances to other funds. The EDIT fund increased by $792,895 during 2013 due to higher income tax receipts than originally estimated and conservative commitment of expenses to initiatives of the highest priority. The City has operationally sequestered EDIT funds for use in major economic development initiatives, certain subsidies and support to organizations and units that benefit city economic development and cultural venues, operational costs of the street department, and certain debt service payments. As of December 31, 2013, the EDIT Fund balance of $11,164,922 included assigned fund balance of $10,715,091 and non - spendable fund balance of $449,831, consisting of property held for resale. The fund balance in the TIF Airport Fund increased by $9,400,154 during 2013. Revenue increased by $5,023,905 due to increased tax collection and a one -time payment of $2 million from Bosch in fulfillment of their lease termination agreement. Actual expenditures dropped by $9,440,000 due to continuation of projects into 2014, and thus the fund's restricted balance for encumbrances increased proportionately. As of December 31, 2013, the TIF Airport Fund balance of $36,015,019 included $10,498,432 in property held for resale and advances to other funds, and $25,516,587 in restricted fund balance reserves. The TIF Airport Fund continues to be a major success for the City of South Bend and has generated in excess of $500 million dollars in private investment since its inception. During 2013, the fund balances in Other Governmental funds increased by $3,996,962 due pri- marily to a one -time litigation settlement of $3.5 million for the Studebaker - Oliver Brownfield rehabil- itation. These fund balances provide the necessary resources that the City requires to meet future capital construction needs, ongoing debt service obligations, and economic development project initiatives in order to fuel community growth within its boundaries. Individual fund data for each of the non -major governmental funds is provided in the form of the combining statements in the Supplemental Information section of the CAM report. 28 Management Discussion & Analysis Governmental Fund Revenue The following schedule presents a summary of governmental fund revenue for the year ended December 31, 2013, with comparison to the prior year: 2013 % of 2012 % of Actual Total Actual Total Tax Based General property 72,018,651 47.6% 71,775,415 48.7% County option income 13,739,325 9.1% 13,748,824 9.3% County economic development 8,177,352 5.4% 8,324,878 5.7% Professional sports development 649,996 0.4% 633,904 0.4% Community revitalization district 244,623 0.2% 653,185 0.5% Total Tax 94,829,947 62.7% 95,136,206 6466% Non Tax Based Licenses and permits 177,019 0.1% 189,714 0.1% Intergovemmental 29,227,759 19.3% 31,297,526 21.3% Charge for services 12,320,498 8.2% 12,442,553 8.4% Fines and forfeitures 660,841 0.4% 334,767 0.2% Interest income 762,270 0.5% 1,317,443 0.9% Donations 367,825 0.2% 324,266 0.2% Other 12,806,315 8.5% 6,336,609 4.3% Total Non -Tax Based 56,322,527 37.3% 52,242,878 35.4% Total Revenue 151,152,474 100.0% 147,379,084 100.0% Tax revenue continues to represent the most significant source of revenue required to support services provided by the City. Property tax revenue is the primary source of funding for govern- mental expenditures. Property tax revenue is based on a relationship between two variables. The first variable is the assessed property valuation of industrial, commercial and residential parcels for both real and personal property. The second variable is the application of a tax rate to arrive at the total tax levy. Taxable property is assessed at 100 percent of the true tax value. The amount of property tax levied (billed to property owners) is further restricted by State of Indiana - enacted property tax legislative reform, or so- called "circuit breaker" property tax caps in 2009 of 1.0 percent (homestead), 2.0 percent (other residential /rental) and 3.0 percent (commercial /industrial) of gross assessed valuation. Property tax revenue includes taxes collected on behalf of the following funds: General Fund, Parks and Recreation Fund, Cumulative Capital Development Fund, Redevelopment Tax Incremental Financing ( "TIF ") Funds, and a special levy to cover debt service of the College Football Hall of Fame. The City recognizes the need to further diversify the revenue stream, and to reduce its dependency on general property taxes to ensure that a broad base of users of city services, including non- residents who work in the City, share in the funding of basic City services. As a result of the need to diversify the revenue stream, the City of South Bend Common Council and Saint Joseph County Council adopted an additional local option income tax of 0.95 percent during 2009, increasing the tax rate from 0.8 percent to 1.75 percent. The local option income tax increase consisted of three com- ponents: 0.2 percent increase in the economic development income tax, a new 0.25 percent public safety local option income tax, and a new 0.5 percent property tax relief local option income tax. 29 Management Discussion & Analysis The City continues to seek diversified sources of revenue that will reduce its reliance on property and income taxes. The City has supported efforts of the Indiana Association of Cities and Towns ( "IACT) "Hometown Matters" to lobby the state legislature to legislatively enable alternative revenue sources that best fit the needs of the community. A viable source of revenue is from user fees and /or charges for services currently being performed. City - performed services are priced based at levels represent- ing the full cost of service, taking into consideration fees charged by providers of similar services. The City performs ongoing reviews of user fee costs incurred and revises service fee prices as required. Governmental Fund Expenditures The City accounts for government fund expenditures in seven categories as follows: (1) general government, (2) public safety, (3) highways and streets, (4) economic development, (5) culture and recreation, (6) debt service, and (7) capital outlay. The following schedule presents a summary of governmental fund expenditures for the year ended December 31, 2013, with comparison to the prior year. General government Public safety Highways & streets Economic development Culture & recreation Debt service Capital outlay 2013 % of 2012 % of Actua I Tota I Actual Tota 1 7,154,965 4.7% 6,390,585 3.9% 64,041,549 41.9% 67,138,414 41.3% 9,769,942 6.4% 9,288,682 5.7% 8,068,458 5.3% 3,543,180 2.2% 13,956,025 9.1% 18,557,986 11.4% 19,121,148 12.5% 17,557,026 10.9% 30,748,663 20.1% 39,984,127 24.6% Total Expenditures 152,860,750 100.0% 162,460,000 100.0% Government fund expenditures in fiscal 2013 of $152,860,750 decreased by $9,599,250 or -5.9 percent in comparison to government fund expenditures in fiscal 2012. Capital outlay expenditures decreased by $9,235,464 during 2013 due primarily to a change in categorization of economic development projects from tax increment financing (TIF) funds. In addition, there was less spending on general government capital projects from the EDIT fund. Public Safety expenditures decreased $3,096,865 or-4.6 percent as less grant funding was available for police and fire programs. Highways and Street expenditures increased by $481,260 as the curb and sidewalk program was expanded and additional work on street maintenance was performed. Economic development spending increased $4,525,278 as a counter - balance to the decreased capital outlay spending noted above, due to a higher qualification threshold for capital expenditure. Public Safety expenditure continues to be the primary use of government fund resources with 41.9 percent of expenditures used for this purpose in fiscal 2013. Public safety spending is followed by capital outlay expenditures (20.1 percent), debt service (12.5 percent), culture and recreation (9.1 percent), highways and streets (6.4 percent), economic development operating (5.3 percent), and general government (4.7 percent). General government spending is comprised of the executive offices of the Mayor, Common Council, City Clerk, City Attorney, Controller, Engineering, and other administrative offices. 30 Management Discussion & Analysis Proprietary funds Condensed Statement of Net Position Revenue, Expenses, and Changes in Fund Net Position As of December 31, 2013 Water Utility Wastem Utility ter Century Center Other Total Enterprise Internal Service Total assets 76,986,961 195,232,020 18,922,414 13,524,160 3041665,555 15,298,896 Total deferred outflows 132,668 613,689 - 1,125,301 1,871,658 - Total liabilities 23,722,037 106,123,750 332,759 5,141,133 135,319,679 4,889,811 Total deferred inflows - - 527,083 10,277 537,360 - Het position Capital assets (netof debt) 41,813,616 40,925,619 16,175,602 15,591,415 114.506,252 1,367,470 Restrictedfor. Debtservice 3,596,396 11,070,930 - - 14,667,326 - Capital outlay 4,181,496 27,454,651 1,757,697 206,494 33,600,338 - Dnrestrided 3,806,084 10,270,759 129,273 (6,299,858) 7,906,258 9,041,615 Total net position 53,397,592 89,721,959 18,062,572 9,498,051 170,680,174 10,409,085 Operating revenues 13,783,701 31,926,078 2,034,509 8,865,981 56,610,259 22,432,997 Operating expenses 14,244,940 17,793,476 4,330,437 8,394,227 44,763,080 22,095,310 Operatingincome(loss) (461,239) 14,132,602 (27295,928) 471,754 11,847,189 337,687 Non - operating rev(exp) 369,043 (7,944,865) 1,432,479 (607,774) (6,751,112) 30,086 Income(loss)before (92191) 6,187,737 (863,449) (136,020) 5,096,077 367,773 contributions 6 transfers Capital contributions - - 697,917 - 697,917 - Transfers in - - - - - Transfers out (1.541,755) (2,775,553) - (207,879) (4,525,187) Change in net position (1,633,946) 3,412,184 (165,532) (343,899) 1,268,807 367,773 Total net position— beginning 55,031,538 86,309,775 18,228,104 9,841,950 169,411,367 10,041312 Total net position — ending 53,397,592 89,721,959 18,062,572 9,498,051 170,680,174 10,409,085 The City of South Bend maintains two types of proprietary funds; enterprise and internal service. The City maintains seven enterprise funds. Information is presented separately in the Proprietary Statement of Net Position, the Proprietary Statement of Revenues and Expenditures, and Changes in Fund Net Position for the Water Utility, Wastewater Utility, and Century Center, which are considered major enterprise funds. Data from the other four non -major enterprise funds (Consolidated St. Joseph County /South Bend Building Department, Parking Garage, Solid Waste, and Blackthorn Golf Course) are combined into a single, aggregated presentation. 31 Management Discussion & Analysis The City maintains five internal service funds. The City of South Bend uses internal service funds to account for its business insurance and self- funded liability insurance program, self- funded employee health benefits program, police take home vehicle program, unemployment compensation claims, and central services unit (a department that accounts for expenses related to fuel, vehicle repairs, printing and other services provided to City departments on a cost - reimbursement basis). The internal service funds have been combined into a single, aggregated presentation. As of December 31, 2013, City enterprise funds reported a net position of $170,680,174, an increase of $1,268,807 or 0.7 percent from December 31, 2012. At December 31, 2013, net position includes capital assets, net of related debt of $114,506,252, restricted for debt service and capital outlay of $48,267,664, and unrestricted of $7,906,258. During 2013, the Water Works experienced a decrease in net position of $1,633,946 while the Wastewater Utility experienced an increase of $3,412,184. The Water Utility experienced decreased revenues of $406,542 while transmission and distribution /pumping expense rose by $1,732,197. The Wastewater Utility experienced an increase in revenue of $962,595 as operating expense dropped by $930,244. The Wastewater Utility continues to build its fund balances in order to pay for the man- dated Long Term Control Plan, a multi -year program being built by the City to control wastewater overflow events. During 2013, Century Center experienced a decrease in net position of $165,532 as the facility transitioned to a new management company, SMG. SMG also contributed $575,000 to the facility to provide some much - needed equipment upgrades. The transition occurred on July 1, 2013, and the capital contribution will be amortized to revenue over the course of the initial contract which expires June 30, 2016. Other Enterprise Funds experienced a decrease in net position of $343,899 during 2013. The Parking Garage Fund reported a decrease in net position of $315,057 primarily as the result of the amortization of sales /leaseback charges on the original acquisition. The Blackthorn Golf Course Fund reported an operating gain of $50,982 as the result of improved golf fee revenue. As of December 31, 2013, City internal service funds reported a net position of $10,409,085, an increase of $367,773 or 3.7 percent compared to 2012. The Liability Insurance fund increased its net position by $2,746,670 in 2013 as the result of the Bosch payment from the lease agreement noted above. The Central Services fund decreased its net position by $339,497. The Self- Funded Employee Benefits fund had a decrease its net position of $2,276,893 due to continually climbing health insurance claims. The City has initiated changes in its health insurance plan design and has an ongoing, active employee wellness program to help control future health insurance costs. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City maintains five fiduciary funds, which consist of two pension trust funds (1925 Police Pension and 1937 Firefighters' Pension), one private- purpose trust fund (Cemetery) and two agency funds (Payroll and Morris /Palais Royale Box Office). 32 Pension Trust Private Purpose Trust Agency Total assets 2,645,067 36,910 1,638,295 Total liabilities 12,620 - 1,638,295 Total net position 2,632,447 36,910 - Total Additions 10,908,243 78 - Total Deductions 11,934,649 4,315 - Changes in net position (1,026,406) (4,237) - 32 Management Discussion & Analysis The net position in the pension trust funds decreased by $1,026,406 during 2013. The net position in the private purpose trust fund (Cemetery) decreased by $4,237 as the City initiated a refurbishment program. Effective in fiscal 2009, with the passage of State legislation, funding responsibility for the 1925 Police and 1937 Firefighters' Pension Funds was assumed by the State of Indiana. These funds no longer receive property tax revenue distributions beyond fiscal 2009. The transfer of pension responsibility to the State of Indiana is on a reimbursement basis and will not provide additional revenue to the City for use in other property tax funded areas. The administration of the pension plans remains the responsibility of the City. The State of Indiana reimbursement is on a year delayed basis, thus reimbursement in fiscal 2013 from the State of Indiana included reimbursement for pension benefits paid by the City in fiscal 2012. In addition, state reimbursement excludes healthcare benefit coverage to pension plan members, which is covered under the City of South Bend pension benefit program and which is paid from the pension trust funds. The decline in the net asset position of the pension trust is the result of timing differences in the pay- ment of pension benefits and the reimbursement of same from the State of Indiana, as well as the cost of healthcare benefits to pension members, not covered by the state reimbursement program. General Fund Budgetary .Highlights The City prepares an annual budget for General fund expenditures, which is subject to City of South Bend Common Council approval for adoption, before November 15t of the year preceding, the budget period, according to state statute concerning the annual budget of second class cities and towns. The Common Council adopted the 2013 budget at its meeting held in October 2012. The General Fund budget applicable for fiscal 2013 is reported as follows: Actual Budgetary Original Final Basis Variance Revenue 64,269,461 63,932,287 61,684,651 (2,247,636) Expenditures 64,223,178 65,091,572 62,469,125 2,622,447 Surplus (deficit) 46,283 (1,159,285) (784,474) 374,811 General Fund revenue was originally budgeted at $64,269,461 for fiscal 2013. During the year, the General Fund revenue budget was decreased by $337,174 to $63,932,287. The revenue budget may be increased or decreased at any time based on updated revenue projections. By closely align- ing the budget revenue with actual, more meaningful analysis is made possible. During 2013, the General Fund collected $61,684,651 in revenue, a deficiency from the final budget level of $2,247,636. The primary reasons for the revenue shortfall were property tax collections, intergovernmental grants and charges for services revenue that were lower than budgeted. General Fund expenditures were originally budgeted at $64,223,178 for fiscal 2013. During the year, the General Fund expenditure budget was increased $868,394 to $65,091,572. 33 Management Discussion & Analysis General Fund spending is reviewed on a monthly basis under the direction of the City Controller to ensure spending remains within budgetary constraints. Quarterly reviews are conducted as required with General fund department management to review spending projections to ensure that annual expenditures remain within the budgetary levels. Budget amendments for cost neutral redistribution between expense categories (i.e. personnel, supplies, services, capital) are submitted to Common Council at mid -year and year -end, as required to adjust the budget as necessary to prevent any bud- get overruns in any expense category. Additional appropriations for projects, initiatives, or unbudgeted spending requirements within the General fund are presented to the Common Council for adoption as deemed necessary by the Mayor. General Fund expenditures incurred on a budgetary basis, including cash expended and outstanding encumbrances as of year -end December 31, 2013, amounted to $62,469,125. The expenditures and commitments as of year -end December 31, 2013, are less than the 2013 General Fund expenditure budget by $2,622,447 or 4.0 percent. The largest savings were in the police, fire, city attorney, and administration /finance department budgets as personnel and other costs spent were less than budgeted due to position vacancies and other factors. Capital Assets and Debt Administration Statement of Capital Assets Governmental Business type Government -wide Activities Activities Activities 2013 2012 2013 2012 2013 2012 Assets not depreciated Land 15,883,485 15,921,386 3,024,582 3,024,562 18,908,067 18,945,968 Construction in progress - - 13,925,011 6,647,833 13,925,011 6,647,833 Total 15,883,485 15,921,386 16,949,593 9,672,415 32,833,078 25,593,801 Assets depreciated Buildings 130,068,334 127,656,887 82,972,550 82,297,980 213,040,683 209,954,867 Non - building improvements 16,281,242 16,038,868 26,380,406 23,987,898 42,661,648 40,026,766 Machinery & equipment 46,353,978 50,304,539 30,211,994 29,235,757 76,565,972 79,540,296 Roads & Infrastructure 421,539,956 420,291,533 195,443,128 190,938,764 616,983,084 611,230,297 Total Cost 614,243,509 614,291,827 335,008,078 326,460,399 949,251,587 940,752,226 Accumulated depreciation Buildings 40,365,200 36,735,257 33,316,084 31,348,151 73,681,284 68,083,408 Non - building improvements 8,031,397 7,370,754 5,728,277 4,659,688 13,759,674 12,030,442 Machinery & equipment 28,077,898 33,647,007 21,578,145 22,162,990 49,656,043 55,809,997 Roads 269,277,787 257,852,591 59,840,599 55,469,771 329,118,386 313,322,362 Total 345,752,282 335,605,609 120,463,105 113,640,600 466,215,387 449,246,209 Net Depreciated Assets 268,491,227 278,686,218 214,544,973 212,819,799 483,036,200 491,506,017 Net Capital Assets 284,374,712 294,607,604 231,494,566 222,492,214 515,869,278 517,099,818 The investment in capital assets includes land and land improvements, buildings and building im- provements, vehicles, information technology equipment, machinery and equipment, and construc- tion in progress. A detailed explanation of these capital assets can be found in the Notes to the Basic Financial Statements. Under the category of roads and infrastructure, the current cost amount of $616,983,084 includes estimated costs derived primarily from the City's 2006 implementation of GASB Statement No. 34, which required the retroactive reporting of infrastructure capital assets. All other assets are recorded at historical cost. 34 Management Discussion & Analysis Major Capital Asset Project Spending in 2013 Improvements Water utility improvements East Bank Sewer Separation, Phases 3 & 4 M &E Chloride feed system Wastewater primary clarifier Other Sewer separation projects Wastewater M &E Capital Assets Analysis 2,107,867 Continued project 3,197,954 Continued project 23,520 Continued project 3,047,919 Continued project 5,126,741 Continued project 421,010 New projects As of December 31, 2013, Government -wide capital assets were valued at $515,869,279, net of accumulated depreciation, a decrease of $1,230,540 or -0.2 percent since December 31, 2012. Construction In Progress increased by $7,277,178, and capitalized assets in land, buildings, improve- ments, machinery and equipment, and roads decreased by $8,507,718, net of depreciation, since December 31, 2012. On January 1, 2013, the City instituted a new capitalization policy that included significantly higher thresholds for expenditures to qualify as capital assets. Consequently, many purchases formerly considered as capital assets no longer qualify as such. The asset decrease, therefore, was the result of fewer assets being added to the register as those assets that remain continue to depreciate. At December 31, 2013, the cost of Roads & Infrastructure ($616,983,084) was the major asset class followed by Buildings ($213,040,883). Major new acquisitions include completed sewer separation projects ($4.1 million) and the newly- rebuilt Fire Station #5 ($1.1 million). Total depreciation expense for 2013 was $29,559,898, compared to $25,827,428 for 2012. Additional information on capital assets can be found in the notes to the financial statements in Statement Note I.D.6, Capital Asset Capitalization Policy, Statement Note I I I.C, Capital Asset Activity, and Statement Note III.D, Construction Commitments. Debt Administration Outstanding debt principal as of December 31, 2013, was $248,694,531, a decrease of $14,630,491 or -5.6 percent. City outstanding debt includes revenue bonds, mortgage bonds, notes and loans payable, and capital leases. Type Beginning Revenue bonds 214,060,000 Mortgage bonds 18,485,000 Notes & loans 18,802,540 Capital leases 11,977,482 Additions Retirements Ending 18,755,000 (26,210,000) 206,605,000 5,580,000 (1,735,000) 22,330,000 34,302 (11,685,278) 7,151,564 3,292,737 (2,662,252) 12,607,967 Total Debt 263,325,022 27,662,039 (42,292,530) 248,694,531 During 2013, the City issued the 2013A Sewage Works Revenue Bond in the amount of $14,765,000 for the purpose of refunding a bond issuance in order to take advantage of a more favorable interest rate environment and lower future debt service payments. This bond is a twenty (20) year issue with maturity in 2033 with debt service coverage from the Sewage Works Bond Sinking fund. The bond issue refunded one revenue bond for $7,980,000 and one note for $9,445,000 that financed capital improvements addressing combined sewer overflow issues improving sewage discharge into the St. Joseph River, in compliance with the Environmental Protection Agency ( "EPA ") consent decree. It was part of a twenty year long -term control plan which will require additional bonding and sewer rate increases. 35 Management Discussion & Analysis During 2013, the City refunded a bond issuance in order to take advantage of a more favorable interest rate environment and lower future debt service payments. The City issued bonds in the amount of $3,990,000 to refinance a 2008 revenue bond for Century Center, saving the City approx- imately $1.02 million over the remaining term of the bond. The City also issued the 2013 Building Corporation EMS Fire Station/Tower Bonds in the amount of $5,580,000 to finance the new fire department training facility. During 2013, the City entered into capital lease agreements in the amount of $3,292,737 to purchase certain vehicles, copiers, and equipment. The lease terms are typically for five years with semi- annual debt service paid from the operating budgets of the user departments. Of the $3.292 million, $3.196 million were to acquire police cars and other vehicles needed by various City departments; the remaining $81,806 was used to lease office equipment such as copiers. The City solicits com- petitive financing proposals for lease financing from local and national companies. Under the Indiana Constitution and State statute, the City's general obligation bonded debt and certain other debt is subject to a legal limitation based upon 2 percent of total assessed value of real and personal property. The City had no general obligation bonded debt outstanding at December 31, 2013, and none of the above debt issuance amounts are subject to this debt limitation. In 2014, the City anticipates issuing additional debt for sewer improvement and fire department pro- jects and plans to continue issuing refunding bonds as appropriate to take advantage of lower interest rates. In April 2014, the City approved issuance of refunding bonds in an amount not to exceed $3,700,000 to refinance its 2002 Redevelopment Special Taxing District bonds for the re- maining 8 years of their original 20 -year lives.. Additional information on debt can be found in the notes to the financial statements in Statement Note I.D.8, Long -Term Obligations, Statement Note III.F.2, Capital Lease Obligations, Statement Note III.G.5, Long -Term Liabilities, and Statement Note IV.C, Conduit Debt. A calculation of the City's legal debt limitation can be found in the statistical debt capacity section of this document. Economic Factors and 2015 Budaet Economic Factors Property tax revenue, historically and at present, is the principal source of revenue for funding of gov- ernmental activities within the City of South Bend. The State of Indiana General Assembly enacted property tax reform legislation in March of 2008. House Enrolled Act 1001 (HEA 1001) which limits property taxes paid to 1 percent of gross assessed value for residential homesteads, 2 percent for agricultural /rental properties, and 3 percent for all other real and personal property. Under current legislation, all Indiana localities assess properties based on market values. Each year properties are trended. This process involves comparing property values to sales activity in the neighborhood and adjusting the current assessed values up or down according to the trended data. This legislation (known as "circuit breaker" legislation) was phased in commencing in fiscal 2009 and has led to significant reductions in property tax revenues available to fund city governmental opera- tions since 2009. In 2013, the primary funds supported by property taxes (General Fund, Parks and Recreation Fund, and Cumulative Capital Development Fund) lost approximately $26 million dollars in taxable property tax levy due to the circuit breaker caps. 36 Management Discussion & Analysis As a consequence of the state enacted legislation in 2008, the City enacted a 0.95 percent local option income tax increase to partially offset the property tax revenue loss. The local option tax in- crease became effective in October 2009, and has resulted in an increase in local income taxes available to the City to fund ongoing governmental operations of public safety, parks and recreation, code enforcement, highways and streets, and general government. Management of the City of South Bend will continue to manage the financial affairs from a posture of fiscal conservatism similar to the management practices engaged during fiscal 2013. City Management believes that the national economic recovery will continue according to the predic- tions of,govern mental economists, with low to no inflation over the next fiscal period. In addition, job creation is the primary engine to drive economic recovery. 2015 Budget The City will engage to ensure effective delivery of required services to taxpayers and citizens within the constraints of available financial resources. The City will continue to provide required services within the constraints of a balanced General fund budget. The City continues to pursue reengineering programs targeted to create efficiency and cost im- provements within City operations. These include purchasing process reengineering, back office process improvements for human resources, and other customer service operations. These initiatives, upon successful deployment completion, will achieve the desired results to create efficiency gains in the delivery of services to taxpayers. The City is committed to creating a budget for fiscal 2015 that will remain fiscally responsible to the effective delivery of required services to City citizens and stakeholders within the existing revenue constraints. Specific concerns for the 2015 Budget include the continuing impact of circuit breaker property tax reform on City revenue, high health and pension costs and other stagnant or declining revenue sources such as gasoline, wheel, and auto excise taxes. Current Economic Development Projects Executive management of the City of South Bend continues to pursue economic development and public works opportunities that will have long -term favorable impact on the economic prospects for the community as a whole. These projects include: • Ignition Park -Along with Innovation Park at Notre Dame, these two sites are Indiana's first dual -site, state - certified technology park. Transpo, the county's public transportation authority, was the first tenant in Ignition Park and dedicated its new facility in early 2010. The second tenant in Ignition Park, Data Realty, is a 50,000 square foot colocation, cloud services data center, with disaster recovery solutions and a managed analytics platform. Data Realty employs over 20 employees and committed over $15 million in private investment. • Renaissance District/Ivy Tower - Rehabilitation of an 800,000 square foot industrial space near downtown to create an expected 400 new jobs through a mixed use space to include data centers, high tech office space, and research facilities. The owner of this property has committed $10 million in private investment over a 10 year period. • Triangle Development - Planned construction of 55 new single family residential properties in the Triangle area adjacent to the existing new Eddy Street Commons commercial development, creating a diverse new neighborhood in the City's northeast sector. Eleven new homes are underway, with many more in the planning stages. 70 percent of the lots are being sold at market rate and 30 percent are reserved for income - eligible buyers. Six million dollars in private investment will transform this neighborhood. 37 Management Discussion & Analysis • Western Ave. /Lincolnway West Business Corridors - The Department of Community Investment is working with citizens and stakeholders in the design and implementation of new streetscapes along these streets with the intention of attracting new business development to the west side of the City. • 2 -Way Streets - The City will be undertaking the reversion of some of its downtown streets from 1 -way to 2 -way over the course of the next couple of years. This type of activity has proven to be very successful in other cities at attracting business and residential growth in city centers. • Workforce Strategy - The Department of Community Investment is preparing a work- force training initiative to coordinate those who offer workforce training into a single council. This council will focus its training efforts in areas of greatest need and growth, and will include measurable goals and assessment factors. The council has identified and implemented a program to offertraining in "deconstruction" -the process of recover- ing useful materials from buildings slated for demolition. • Existing Business Expansions - The City continues to work with private sector business concerns to enable expansion of their business operations in the City, adding new employment opportunities and tax base to the City. Tax abatements in 2012 are expected to result in $41,411,500 of new investment and add 83 jobs with an annual payroll of $4,921,000. Requests for Information This Management Discussion & Analysis as contained within the City of South Bend Comprehensive Annual Financial Report is intended to provide readers with a general overview of the financial con- dition of the City of South Bend as of December 31, 2013. Questions concerning any of the informa- tion provided in this report, or requests for additional information, should be addressed to: John H. Murphy, City Controller City of South Bend Department of Administration and Finance 227 W. Jefferson Boulevard, 12th Floor South Bend, Indiana 46601 Telephone 574 - 235 -9216 Facsimile 574 -235 -9928 Email imurphy cDsouthbendin.gov City of South Bend May 8, 2014 38 W co CITY OF SOUTH BEND STATEMENT OF NET POSITION December 31, 2013 Assets Cash and cash equivalents Cash with fiscal agent Investments Receivables (net of allowances for uncollectibles): Interest Taxes Accounts Intergovernmental Loans Internal balances Inventories Prepaid expense Restricted assets: Cash and cash equivalents Cash with fiscal agent Investments Interest receivable Taxes Property held for resale Capital assets: Land and construction in progress Other capital assets, net of depreciation Total assets _ Primary Government Governmental Business -Type Activities Activities Totals $ 46,756,222 $ 4,766,303 $ 51,522,525 50,162 - 50,162 126,656,262 9,426,151 136,082,433 189,677 16,422 206,099 3,806,157 - 3,806,157 948,234 3,626,627 4,574,861 802,771 - 802,771 7,694,684 - 7,694,684 1,725,261 (1,725,261) - 943,844 342,916 •1,286,760 347,271 66,594 413,865 6,158,300 20,661,402 26,819,702 - 628,472 628,472 2,967,526 33,550,935 36,518,461 4,118 49,618 53,736 6,349 - 6,349 18,974,080 - 18,974,080 15,883,485 16,949,593 32,833,078 268,491,227 214,544,973 463,036,200 502,405,650 302,904,745 805,310,395 Deferred outflows of resources: Unamortized loss on refunding 746,357 746,357 . Unamortized loss on salelleaseback 1,125,301 1,125,301 Total deferred outflows of resources 1,871,658 1,671,658 The notes to the financial statements are an integral part of this statement. (Continued on next page) O CITY OF SOUTH BEND STATEMENT OF NET POSITION December 31, 2013 (Continued) Liabilities Accounts payable Accrued payroll payable Unearned revenue Taxes payable Customer deposits Accrued interest payable Estimate of unfiled claims Other current payables Payable from restricted assets: Accounts payable Contmets payable Customer deposits Accrued Interest payable Noncurrent liabilities: Due within one year: Mortgage bonds payable Compensated absences Revenue bonds payable Capital lease obligations Notes and loans payable Due in more than one year Mortgage bonds payable (net of discounts or premiums) Compensated absences Revenue bonds payable (net of discounts or premiums) Capital lease obligations Notes and loans payable Net other postemployment benefits obligation Net pension obligation Total liabilities Deferred inflows of resources: Unamortized gain on refunding Unamortized Service Agreement Unamoritzed gain on salelleaseback Total deferred inflows of resources Net Position Primary Government Governmental Business -Type Activities Activities Totals 5,912,699 929,559 6,842,258 2,372,712 560,351 2,933,063 - 8,241 8,241 2,678 43,398 46,076 247,198 182,522 429,720 839,166 - 839,166 2,891,134 - 2,891,134 18,172 - 18,172 - 2,374,695. 2,374,695 474,016 474,016 - 1,452,855 1,452,855 1,158,368 295,469 1,453,837 1,580,425 64,575 1,645,000 3,892,726 615,884 4,508,612 7,950,000 6,910,000 14,860,000 2,115,937 1,003,006 3,118,943 1,608,064 326,346 1,934,410 21,499,356 487,027 21,986,383 1,292,184 - 1,292,184 82,222,826 111,206,539 193,431,365 6,661,301 2,827,722 9,489,023 1,422,490 3,794,664. 5,217,154 8,300,677 - 8,300,677 63,258,306 - 63,25.8,306 215,246,421 133,558,869 348,805,290 565,384 - 565,384 527,083 527,083 10,277 10,277 565,384 537,360 1,102,744 Investment in capital assets 192,190,446 114,506,252 306,696,698 Restricted for: Debt service 7,990,172 14,667,326 22,657,498 Capital outlay - 33,690,338 33,600,338 Unrestricted 86,413,227 7,906,258 94,319,485 Total net position $ 286,593,845 $ 170,680,174 $ 457,274,019 The notes to the financial statements are an integral part of this statement �t CITY OF SOUTH BEND STATEMENT OF ACTIVITIES For the Year Ended December 31, 2013 General revenues: Property taxes County option income tax Economic development income tax Professional sports development tax Community revitaflxation enhancement district tax Grants and contributions not restricted to specific programs Unrestricted investment earnings Other Transfers Total general revenues and transfers 72,018,650 72,018,650 13,739,325 Program Revenues Net (Expense) Revenue and Changes in Net Position 8,177,352 649,996 _ Operating Cap tai 5,893,924 - Primary Government 762,269 1313,362 900,631 Charges for Grants and Grants and Governmental Business -Type Functions /Programs Expenses Services Contributions Contributions Activities Activities Totals Primary government: Governmental activities: General government $ 13,200,898 $ 1,939,865 $ 146,650 $ 1,452,802 $ (9,661,581) $ $ (9,661,581) Public safely 76,023,819 5.21D,272 11,209,299 (59,604,248) (59,604,248) Highways and streets 20,915,815 451,363 4,924,283 - (15,540,169) (15,540,169) Economic development 26,846,471 444,839 4,566,550 398,500 (21,436,582) (21,436,582) Culture and recreation 10,069,690 5,112,D19 619,84D 15,911 (4,321,920) (4,321,920) Interest on long -tern debt 5,961,124 (5,961,124) (5,961,124) Total governmental activities 153,017,817 13,15B,358 21,466,622 1,867,213 (116,525,624) (116,525,624) Business -type activities: Water 15,221,865 15,102,461 - - (119,404) (119,404) Wastewater 26,390,790 32,474,743 - 6,083,953 6,083,953 Civic center 4,330,656 3,463,813 697,917 (168,926) (168,926) Building department 1,131,815 967,667 (164,148) (164,148) Parking 1,285,056 968,858 - - - (316,188) (316,188) Solidwaste 5,091,588 5,399,044 307,456 $07,456 Golf course 1,497,513 1,530,402 32,889 32,889 Total business -type activities 54,949,283 59,906,998 697,917 5,655,632 5,655,632 Total primary government $ 207,967,100 $ 73,065,356 $ 21,466,622 $ 2,565,130 (116,525,624) 5,655,632 (110,869,992) General revenues: Property taxes County option income tax Economic development income tax Professional sports development tax Community revitaflxation enhancement district tax Grants and contributions not restricted to specific programs Unrestricted investment earnings Other Transfers Total general revenues and transfers 72,018,650 72,018,650 13,739,325 13,739,325 8,177,352 8,177,352 649,996 649,996 244,623 244,623 5,893,924 - 5,893,924 762,269 1313,362 900,631 14,285,314 - 14,285,314 4,525,187 (4,525,187) 120,296,640 (4,386,825) 115,909,815 Change in net position 3,771,016 1,266,807 5,039,823 Net position- beginning (restated) 282,822,829 169,411,367 452,234,196 Netposition - ending $ 286,593,845 $ 17D,680,174 $ 457,274,019 The notes to the financial statements are an integral part of this statement Assets Cash and cash equivalents Cash with fiscal agent Investments Receivables (net of allowances for uncollectibles): Interest Taxes Accounts Intergovernmental Loans Interfund receivable: Interfund services provided and used Inventories Advances to other funds Property held for resale Total assets Liabilities and Fund Balances -P N Liabilities: Accounts payable Accrued payroll payable Interfund payable: Interfund'services provided and used Taxes payable Performance deposits payable Other current payables Advances from other funds Total liabilities Fund balances: Nonspendable Inventory Property held for resale Advances to other funds Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balances CITY OF SOUTH BEND BALANCE SHEET - GOVERNMENTAL FUNDS December 31, 2013 L29,689,725 $ 4,388,261 $ 2,030,864 L 17,495,359 $ 11,284,910 L36.673,868 $ 111,348,345 $ 212,911,322 $ 309,592 $ 68,957 $ - $ 696,591 $ 119,988 $ 102,797 Other 4,142,084 1,494,589 227,793 235,645 - - - Nonmajor 2,171,211 18,310 Park and Public Safety - - 5,008 Governmental 47,006 General Recreation LOIT COIT EDIT TIF Airport Funds Totals $ 7,088,418 $ 1,084,386 $ 517,885 $ 3,798,556 $ 2,763,011 $ 6,376,137 $ 27,947,211 $ 49,575,604 - - - - - - 50,162 50,162 21,222,360 3,163,455 1,510,814 11,081,441 8,060,469 18,600,958 56,319,954 119,959,451 30,330 4,519 2,165 15,970 11,599 26,767 88,517 179,867 200,045 35,531 - - - 1,171,564 2,405,366 3,812,506 475,847 4,284 - 1,920 - - 426,700 .908,751 - - - - - - 802,771 802,771 - - 2,027,973 _ _ - 7,694,684 7,694,684 15,877 11,778 - - - - 1,710 29,365 - 84,308 - - - - - 84,308 656,848 - 14,201,296 2,027,973 - 1,742,115 6,412,837 10,839,773 _ _ 569,499 449,831 8,756,317 9,198,433 18,974,080 L29,689,725 $ 4,388,261 $ 2,030,864 L 17,495,359 $ 11,284,910 L36.673,868 $ 111,348,345 $ 212,911,322 $ 309,592 $ 68,957 $ - $ 696,591 $ 119,988 $ 102,797 $ 2,844,159 $ 4,142,084 1,494,589 227,793 235,645 - - - 213,164 2,171,211 18,310 3,265 - - - 5,008 20,423 47,006 407 2,271 - - - - - 2,678 196,164 - - - - 51,034 - 247,198 1,750 557 - - - - 15,865 18,172 500,000 8,597,658 9,097,658 2,020,812 302,843 235,645 696,591 119,988 658,839 11,691,289 15,726,007 - 84,308 - - - - - 84,308 - - - 569,499 449,831 8,756,317 9,198,433 18,974,080 656,846 - - 2,027,973 - 1,742,115 - 4,426,936 4,001,110 1,795,219 - - 25,516,587 64,074,963 95,387,879 _ _ - - - - 20,697,026 20,697,026 531,959 - - 14,201,296 10,715,091 - 10,538,803 35,987,149 26,480,106 - (4,852,169) 21,627,937 27,668,913 4,085,418 1,795,219 16,798,768 11,164,922 36,015,019 99,657,056 197,185,315 $ 29,689,725 L4,388.261 L2,030.864 $ 17,495,359 L11,284,910 L36,673,858 $ 111,348,345 The notes to the financial statements are an integral part of this statement. (Continued on next page) -P W CITY OF SOUTH BEND BALANCE SHEET - GOVERNMENTALFUNDS December.31, 2013 (Continued) Totals Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 282,995,172 Prepaid expenses are not available to pay for current period expenditures and, therefore are deferred in the funds. 347,271 Internal service funds are used by management to charge the costs of certain services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. 10,409,085 Long -term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds: Compensated absences payable (1,292,184) Deferred charge on refunding (to be amortized as interest expense) (565,384) Bonds payable (110,585,645) Less: Issuance discount or (premium) (to be amortized as interest expense) (2,666,962) Capital leases payable (8,765,168) Notes payable (3,030,554) Net other postemployment benefits obligation (8,300,677) Net pension obligation (63,258,306) Short-term liabilities that are not recognized in governmental funds until due: Accrued interest payable (1,997,397) Compensated absences payable (3,880,721) Net position of governmental activities $ 286,593,845 The notes to the financial statements are an integral part of this statement CITY OF SOUTH BEND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 Other Total Park and Public Safety Governmental Governmental General Recreation LOIT COIT EDIT TIFAirport Funds Funds Revenues: Taxes Property $ 35,767,912 $ 7,110,505 $ - $ - $ $ 14,490,282 $ 14,649,952 $ 72,018,651 County option Income - - 5,892,386 7,846,939 - - 13,739,325 County economic development income - - - 8,177,352 - 8,177,352 Professional sports development tax - 649,996 649,996 Community revitalization enhancement district - 244,623 244,623 Licenses and permits 177,019 - 177,019 Intergovernmental 15,223,844 619,840 - 13,384,075 29,227,759 Charges for services 3,376,541 3,032,837 503,028 150,000 5,258,092 12,320,498 Fines and forfeits 220,444 5,150 - 354,660 80,587 660,841 Interest 37,880 5,082 3,054 27,364 17,471 30,736 640,683 762,270 Donations 287,822 800 - 42,900 - 36,303 367,825 Sale of property - 6,302 - - 1,673 35,977 43,952 Other 4,942.966 146,767 1,239 69,965 2,386,278 5,215,148 12,762,363 Total revenues 60,034.428 10,927,283 5,895,440 8,421,470 8,769,448 16,908.969 40,195,436 151,152,474 Expenditures: Current: General government 6,605,015 - - - - - 549,950 7,154,965 Public safety 63,179,341 235,645 626,563 64,041,549 Highways and streets 1,381,498 - 8,388,444 9,769,942 Economic development - 8,068,458 8,066,458 Culture and recreation 1,314,196 11,750,558 - - - 891,271 13,956,025 Debt service: Principal 15,285 289,849 852,887 720,000 1,862,500 9,267,584 13,008,105 Interest and fiscal charges 2,081 17,531 593,515 155,214 276,127 4,746,566 5,793,034 Debt issue costs - 320,009 320,009 Capital outlay: General government 4,769,037 1,434,044 737 6,203,818 Public safety 1,040,226 - 8,752,702 9,792,928 Highways and streets - - 1,839,121 1,839,121 Economic development 4,411 210,776 4,348,235 7,685,071 12,248,493 Culture and recreation 339,333 324,970 664,303 Total expenditures 72,497.416 12,057,938 235,645 7,599,409 2,520,034 6,486,862 51,463,446 152,860,750 Excess (deficiency) of revenues over (under) expenditures (12,462.988) (1,130,655) 5,659,795 822,061 6,249,414 10,422,107 (11,266,010) (1,708,276) Otherfinancing sources (uses); Transfers in 12,044,166 696,009 683,303 - - 211,047 12,730,714 26,365;239 Transfers out (744,364) (209,824) (7,540,389) (1,807,098) (5,456,519) (1,233,000) (4,848,858) (21,840,052) Debt issuance 37,016 16,130 7,748,309 7,801,455 Premium on debt issuance - - 21,576 21,576 Issuance of refunding bonds 3,990,000 3,990,000 Payment to refunded bond escrow agent (4,376,769) (4,376,769) Total other financing sources and uses 11,336.818 502,315 (6,857,086) (1,807,098) (5,456,519) (1,021,953) 15,284,972 11,961,449 Net change in fund balances (1,126,170) (628,340) (1,197,291) (985,037) 792,895 9,400,154 3,996,962 10,253,173 Fund balances- beginning (restated) 28,795.083 4,713,758 2,992,510 17,783,805 10,372,027 26,614,865 95,660,094 188,932,142 Fundbalances - ending $ 27,666,913 $ 4,065,418 $ 1,795,219 $ 16,798,768 $ 11,164,922 $ 36,015,019 $ 99,657,056 $ 197,185,315 The notes to the financial statements are an integral part of this statement -P CA CITY OF SOUTH BEND RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2013 Amounts reported for governmental activities in the Statement of Activities are different because: Net change in fund balances - total governmental funds (Statement of Revenues, Expenditures, and Changes in Fund Balances). $ 10,253,173 Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period: Capital outlay 9,371,671 Depreciation expense (19,714,555) Loss on disposal of assets (309,187) The issuance of long -term debt (e.g., bonds, leases) provide current financial resources to govern- mental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. This amount is the net effect of these differences in the treatment of long -term debt and related items. Long -term debt incurred during the current period: Bonds (5,580,000) Refunding bonds (3,990,000). Premium on bonds (21,579) Loans Capital teases (2,240,007) Principal debt payments: Bonds 9,287,885 Loans 1,923,085 Capital leases 1,798,889 Payment to refunded bond escrow agent 4,376,769 Amortization expenses (97,529) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Prepaid expense 93,018 Interest expense 354,222 Compensated absences (182,988) Change in net pension asset and net pension obligation (1,919,624) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities. 367,773 ' Change in net position of governmental activities (Statement of Activities) $ 3,771,D16 The notes to the financial statements are an integral part of this statement. U) CITY OF SOUTH BEND STATEMENT OF NET POSITION - PROPRIETARY FUNDS December 31, 2013 The notes to the financial statements are an integral part of this statement, (Continued on next page) Governmental Business -Type Activities - Enterprise Funds Activities - Other Nonmajor Water Wastewater Century Enterprise Internal Assets Utility Utility Center Funds Totals Service Funds Current assets: Cash and cash equivalents $ 894,427 $ 1,856,767 $ 903,475 $ 1,111,634 $ 4,766,303 $ 3,338,916 Investments 2,609,292 5,416,704 1,400,155 9,426,151 9,664,357 Interest receivable 15,137 - 1,285 16,422 13,927 Accounts receivable (net of allowance) 796,971 2,158,717 72,070 441,634 3,469,392 39,483 Accounts receivable - other 52,556 104,677 - 157,235 Interfund receivables: interfund services provided and used 20,906 8,383 6,260 35,549 3,135 Inventories 157,480 163,398 22,036 342,916 859,536 Prepaid items 22,270 37,014 7,310 66,594 Restricted assets: Cash and cash equivalents: Repair fund - 347,525 347,525 Customer deposits 370,236 370,236 Revenue bond covenant accounts 938,624 8,325,406 9,264,230 Capital outlay accounts 1,107,117 7,696,156 1,757,697 118,441 10,679,411 Cash with fiscal agent - 76,130 - 552,342 628,472 Investments: Repair fund - 1,013,826 1,013,826 Customer deposits 1,080,080 - 1,080,080 Revenue bond covenant accounts 2,657,572 3,029,819 5,687,391 Capital outlay accounts 3,229,767 22,451,818 88,053 25,769,638 Interest receivable 49,618 49,618 Total current assets 13,952,637 52,735,958 2,746,812 3,735.562 73,170,989 13,919,356 Noncurrent assets: Capital assets; Land and construction in progress 2,484,818 12,181,352 702,934 1,580,489 16,949,593 Other capital assets (net of accumulated depredation) 60,549,506 130,314,710 15,472,668 8,208,069 214,544,973 1,379,540 Total noncurrent assets 63,034,324 142,496,062 16,175,602 9,788,576 231,494,566 1,379,640 Total assets 76,986,961 195,232,020 18,922,414 13,524,160 304,665,555 15,298,896 Deferred outflows of resources: Unamortized loss on refunding 1$2,668 613,689 746,357 Unamortized loss on salelleaseback 1,125,301 1,125,301 Total deterred outflows of resources 132,668 613,689 1,125,301 1,871,658 The notes to the financial statements are an integral part of this statement, (Continued on next page) .p J CITY OF SOUTH BEND STATEMENT OF NET POSITION - PROPRIETARY FUNDS December 31, 2013 (Continued) The notes to the financial statements are an integral part of this statement. Governmental Business -Type Activities - Enterprise Funds Activities Other Water Wastewater Century Enterprise Internal Liabilities Utility Utility Center Funds Totals Service Funds Current liabilities: Accounts payable 431,541 10,042 165,236 321,740 929,559 1,770,615 Inlerfund payables: Interfund services provided and used 9,050 2,289 - 7,356 18,695 2,348 Accrued payroll payable 189,227 239,037 21,438 110,649 560,351 201,501 Compensated absences payable 196,516 257,748 - 161,620 615,684 12,007 Unearned revenue 8,241 - - 8,241 - Taxes payable 43,398 - - - 43,398 - Performance deposits payable - - - 37,437 37,437 Customer deposits 145,085 - 145,085 - Capital leases payable - - 5,802 Interest payable 136 Estimate of unfiled claims - - - - - 2,891,134 Current liabilities payable from restricted assets: Accounts payable - 2,374,695 - - 2,374,695 - Contracts and retainage payable 155,388 318,628 474,016 Customer deposits 1,452,855 - 1,452,855 Mortgage bonds payable - 64,575 64,575 Revenue bonds payable 1,105,000 5,805,000 6,910,000 Capital leases payable 2,698 233,457 766,851 1,003,006 Notes and loans payable 176,835 149,511 - - 326,346 - Accruedinterestpayable 284,295 11,174 295,469 Total current liabilities 3,770,749 9,739,277 332,759 1,416.827 15,259,612 4,863,543 Noncurrent liabilities: Advances from other funds - - - 1,742,115 1,742,115 - Mortgage bonds payable (net of unamortized discount) - 487,027 - 487,027 Revenue bonds payable (net of unamortized discounts, and premiums) 18,705,596 92,502,943 - 111,208,539 - Capital leases payable 12,415 833,116 1,962,191 2,827,722 6,268 Notes and loans payable 1,233,277 2,561,387 3,794,664 Total noncurrent liabilities 19,951,288 96,384,473 3,724,306 120,060,067 6,268 Total liabilities 23,722,037 106,123,750 332,759 5,141,133 135,319,679 4,889,811 Deferred inflows of resources: Unamortized service agreement - - 527,083 - 527,083 - Unamoritzed gain on salefleaseback 10,277 10,277 Total deferred inflows of resources 527,083 10,277 537,360 Net Position Investment in capital assets 41,813,616 40,925,619 16,175,602 15,591,415 114,506,252 1,367,470 Restricted for debt service 3,596,396 11,070,930 - - 14,667,326 - Restricted for capital outlay 4,181,496 27,454,651 1,757,697 206,494 33,600,336 - Unrestricted 3,606,084 10,270,759 129,273 (6,299,858) 7,906,258 9,041,615 Total net position $ 53,397,592 $ 89,721,959 $ 18,062,572 1 9,498,051 $ 170,680,174 $ 10,409,085 The notes to the financial statements are an integral part of this statement. OD CITY OF SOUTH BEND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS For the Year Ended December 31, 2013 Operating revenues: Metered revenue: Residential Commercial Industrial Fire protection revenue Leak insurance revenue Penalties Convention fees Licenses and permits Parking fees Solid waste fees Golf course fees Employee /employer contributions Charges for sales and services Other Total operating revenues Operating expenses: Source of supply and expense /collection system expense - operations and maintenance Transmission and distribution /pumping expense - operations and maintenance Treatment and disposal expense - operations and maintenance Operations and maintenance Customer accounts Administration and general Insurance claims and premiums Depreciation Total operating expenses Operating income (loss) $ 6,527,228 $ 19,414,745 $ 3,315,238 6,871,803 318,555 4,299,896 1,961,037 - 956,921 - 134,372 662,471 570,350 657,163 $ - $. 25,941,973 $ - - 10,187,041 - 4,618,451 - - 1,961,037 - - 956,921 - 816,843 - 1,923,625 - 1,923,626 - - 964,240 964,240 - 110,884 948,722 1,059,606 - - 4,800,454 4,800,454 1,530,402 1,530,402 - - - 15,221,383 - - 7,199,304 622,163 1,849,676 12,310 13,783,701 31,926,078 2,034,509 8,865,981 56,610,269 22,432,997 1,143,558 4,496,044 5,639,602 5,621,388 5,591,192 Governmental Business -Type Activities - Enterprise Funds Activities 2,155,898 Other - - Nonmajor - Water Wastewater Century Enterprise Internal Utility Utility Center Funds Totals Service Funds $ 6,527,228 $ 19,414,745 $ 3,315,238 6,871,803 318,555 4,299,896 1,961,037 - 956,921 - 134,372 662,471 570,350 657,163 $ - $. 25,941,973 $ - - 10,187,041 - 4,618,451 - - 1,961,037 - - 956,921 - 816,843 - 1,923,625 - 1,923,626 - - 964,240 964,240 - 110,884 948,722 1,059,606 - - 4,800,454 4,800,454 1,530,402 1,530,402 - - - 15,221,383 - - 7,199,304 622,163 1,849,676 12,310 13,783,701 31,926,078 2,034,509 8,865,981 56,610,269 22,432,997 1,143,558 4,496,044 5,639,602 5,621,388 5,591,192 - - 11,212,580 - 2,155,898 - - - 2,155,898 - - - - 6,679,325 6,679,325 7,242,586 1,518,372 194,012 - - 1,712,384 - 1,880,791 1,245,306 3,566,567 941,065 7,633,729 1,033,318 - - - - - 13,703,625 1,924,933 6,266,922 763,870 773,837 9,729,562 115,781 14,244,940 17,793,476 - 4,330,437 8,394,227 44,763,080 22,095,310 (461,239) 14,132,602 (2,295,928) 471,754 11,847,189 337,687 The notes to the financial statements are an integral part of this statement. (Continued on next page) w CITY OF SOUTH BEND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS For the Year Ended December 31, 2013 (Continued) Nonoperating revenues (expenses): Interest and investment revenue Hotel /motel tax Professional sports development tax Repair fund revenues Management fees . Miscellaneous revenue Interest expense Amortization expense Repair fund expenses Debt issue costs Gain (loss) on disposition of assets Total nonoperating revenue (expenses) Income (loss) before contributions and transfers Capital contributions Transfers out Change in net position Total net position - beginning Total net position - ending $ 53,397,592 $ 89,721,959 L18,062,672 1 9,498,051 L L 1 10,409,085 The notes to the financial statements are an integral part of this statement. Governmental Business -Type Activities - Enterprise Funds Activities Other Nonmajor Water Wastewater Century Enterprise Internal Utility Utility Center Funds Totals Service Funds 27,213 103,784 3,394 3,971 138,362 28,690 - - 1,313,436 - 1,313,436 - - - 100,000 - 100,000 - - 548,665 - - 548,665 - 1,196,379 (1,029,948) - - 166,431 - 122,381 - 15,868 - 138,249 - (863,417) (6,759,042) - (51,405) (7,673,864) 1,396 - (410,190) - (560,340) (970,530) - - (316,855) - - (316,855) , - (1,200) (81,279) - - (82,479) - (112,308) (219) (112,527) ' 369,048 (7,944,865) 1,432,479 (607,774) (6,751,112) 30,086 (92,191) 6,187,737 (863,449) (136,020) 5,096,077 367,773 - - 697,917 - B97,917 - (1,541,755) (2,775,553) (207,879) (4,525,187) (1,633,946) 3,412,184 (165,532) (343,899) 1,268,807 367,773 55,031,538 86,309,775 18,228,104 9,841,950 169,411,367 10,041,312 $ 53,397,592 $ 89,721,959 L18,062,672 1 9,498,051 L L 1 10,409,085 The notes to the financial statements are an integral part of this statement. CITY OF SOUTH BEND STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS For the Year Ended December 31, 2013 The notes to the financial statements are an Integral part of this statement. (Continued on next page) Governmental Business -Type Activities - Enterprise Funds Activities Other Nonmajor Water Wastewater Century Enterprise Internal Utility utility Center Funds Totals Service Fund Cash flows from operating activities: Receipts from customers and users $ 13,965,625 $ 32,349,700 $ 2,090,850 $ 6,873,110 $ 57,279,285 $ 15,576,448 Receipts from interfund services provided 1,175,473 - (6,260) - 1,169,213 7,669,757 Payments to suppliers (7,881,524) (5,666,204) (1,669,720) (3,917,031) . (19,134,479) (21,951,309) Payments to employees (4,027,818) (6,383,973) (1,830,977) (3,139,356) (15,382,124) (2,470,846) Payments for interfund services used (16.407) (447,151) (438.773) (902,331) 439 Net cash provided (used) by operating activities 3,215,349 19,852,372 (1,416,107) 1,377,950 23,029,564 (1,175,511) Cash flows from noncapital financing activities: Interfund loan repaid - (10,759) (10,759) - Hotel/motel tax 1,313,436 1,313,436 Professional sports development tax 100,000 - 100,000 Transfer to other funds (1,541,755) (2,775,553) (207.879} (4,525,187) Net cash provided (used) by noncapital financing activities (1,541,755) (2,775,553) 1,413,436 (218,638) (3,122,510) - Cash flows from capital and related financing activities: Capital contributions 1,225,000 - 1,225,000 CA Acquisition and construction of capital assets (3,029,294) (16,935,904) (741,940) (2,179,742) (22,886,880) (94,966) C Proceeds from capital debt Issued 15,113 15,032,138 604,780 15,852,031 18,562 Debt issue costs paid - (81,279) - (81,279) - Principal paid on capital debt (1,244,314) (22,754,157) (1,294,200) (25,292,671) (1,754) Interest paid on capital debt (983,586) (4,028,660) (60,467} (5,072,713) (42) Net cash provided (used) by capital and related financing activities (5,242,061) (28,767,862) 483,060 (2,729,629) (36,256,512) (78,210) Cash flows from investing activities: Investments sold 2,952,956 3,931,880 - 352,502 7,237,336 411,329 Investments purchased (2,336,417) (3,542,652) - (252,042) (6,131,111) (1,247,926) Interest received 32,046 93,297 3,394 5,158 133,895 27,389 Net cash provided (used) by investing activities 648,585 462,525 3,394 105,618 1,240,122 (809,208) Net increase (decrease) in cash and cash equivalents (2,919,902) (11,208,518) 483,783 (1,464,699) (15,109,336) (2,062,929) Cash and cash equivalents, January 1 (Including $439,073, $533,295, $13,012,942, and $21,107,576 for the repair fund, customer deposits, revenue bond covenants and capital outlays, respectively, reported in restricted accounts) 6,230,506 29,510,502 2,177;389 3,247,116 41,165,513 5,401,847 Cash and cash equivalents, December 31 (Including $347,525, $370,236, $9,264,230, and $10,679,411 for the repair fund, customer deposits, revenue bond covenants and capital outlays, respectively, reported in restricted accounts) L_3,310,604 $18,301,984 $ 2,661,172 $ 1,782.417 $26.056,177 $ 3,338,918 The notes to the financial statements are an Integral part of this statement. (Continued on next page) 01 -16 Reconciliation of operating Income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating Income (loss) to net cash provided (used) by operating activities: Depreciation expense Bad debt expense Nonoperating revenues (expenses) Leese proceeds used for non capital purchases (increase) decrease in assets: Accounts receivable Accounts receivable - other Interfund receivables Inventories Prepaid items Increase (decrease) in liabilities: Customer deposits Accounts payable Contracts payable Accrued payroll payable Interfund payables Compensated absence payable Taxes payable Estimated unfiled claims Total adjustments .Net cash provided (used) by operating activities Noncash Investing, capital and financing activities: Capital asset disposals Completed project transferred to capital assets CITY OF SOUTH BEND STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS For the Year Ended December 31, 2013 (Continued) $ (461,239) $ 14,132,602 $ (2,295,928) $ 471,754 $ 11,847,189 $ 337,667 1,924,933 6,266,922 90,650 194,012 1,459,446 (798,138) 15,113 (53,953) (320,670) (21,315) 1,615 (20,906) (8,383) (6,883) (9,961) (17,126) (26,347) 44,161 114,887 198,504 155,388 272,108 (1,312) 28,140 (16,407) (87,220) 9,723 9,188 189 - 3,676,568 5,719,770 $ 3,215,349 L19.862,372 763,670 773,837 9,729,562 115,781 - 75,204 359,866 - 15,868 - 677,176 15,113 14,585 (72,407) (432,445) 275,321 (19,700) - (6,260) 4,333 (31,216) 636,272 - (3,965) (20,809) (56,996) 13,982 (29,491) 25,888 70,049 - 3D,450 84,396 428,237 406,097 - - 427,496 - 21,438 33,052 81,318 116,016 - (47,928) (151,555) 2,054 59,674 78,585 (114,401) 189 (2,793,342) 879,821 906,196 11,182,375 (1,513,198) L11,416. $ 1,377,950 $ 23,029,564 $ (1,175,511) $ 960,473 $ $ - $ $ 960,473 $ 337,023 150,000 487,023 On April 25, 2D13, the City of South Bend - Wastewater Utility issued $14,765,000 in refunding revenue bonds to refund $17,425,000 of outstanding bonds ($9,445,000 of 1998 State Revolving Loans and $7,980,000 of 2004 Sewage works Revenue Bonds). The net proceeds of $14,683,935 (after payment of $81,065 in issuance costs) and local contributions of $3,515,459 were deposited in an irrevocable trust with an escrow agent The accounting loss of $631,980 has been recognized on the Statement of Net Position as Deferral of Loss on Refunding and will be amortized using the straight -line method and charged to interest expense over the next 12 years. The notes to the financial statements are an integral part of this statement Governmental Business -Type Activities - Enterprise Funds Activities Other Nonmajor Water Wastewater Century Enterprise Internal Utility Utility Center Funds Totals Service Fund $ (461,239) $ 14,132,602 $ (2,295,928) $ 471,754 $ 11,847,189 $ 337,667 1,924,933 6,266,922 90,650 194,012 1,459,446 (798,138) 15,113 (53,953) (320,670) (21,315) 1,615 (20,906) (8,383) (6,883) (9,961) (17,126) (26,347) 44,161 114,887 198,504 155,388 272,108 (1,312) 28,140 (16,407) (87,220) 9,723 9,188 189 - 3,676,568 5,719,770 $ 3,215,349 L19.862,372 763,670 773,837 9,729,562 115,781 - 75,204 359,866 - 15,868 - 677,176 15,113 14,585 (72,407) (432,445) 275,321 (19,700) - (6,260) 4,333 (31,216) 636,272 - (3,965) (20,809) (56,996) 13,982 (29,491) 25,888 70,049 - 3D,450 84,396 428,237 406,097 - - 427,496 - 21,438 33,052 81,318 116,016 - (47,928) (151,555) 2,054 59,674 78,585 (114,401) 189 (2,793,342) 879,821 906,196 11,182,375 (1,513,198) L11,416. $ 1,377,950 $ 23,029,564 $ (1,175,511) $ 960,473 $ $ - $ $ 960,473 $ 337,023 150,000 487,023 On April 25, 2D13, the City of South Bend - Wastewater Utility issued $14,765,000 in refunding revenue bonds to refund $17,425,000 of outstanding bonds ($9,445,000 of 1998 State Revolving Loans and $7,980,000 of 2004 Sewage works Revenue Bonds). The net proceeds of $14,683,935 (after payment of $81,065 in issuance costs) and local contributions of $3,515,459 were deposited in an irrevocable trust with an escrow agent The accounting loss of $631,980 has been recognized on the Statement of Net Position as Deferral of Loss on Refunding and will be amortized using the straight -line method and charged to interest expense over the next 12 years. The notes to the financial statements are an integral part of this statement CITY OF SOUTH BEND STATEMENT OF FIDUCIARY NET POSITION - FIDUCIARY FUNDS December 31, 2013 Assets Cash and cash equivalents Investments Receivables: Interest Total assets Cil Liabilities N Current liabilities: Accounts payable Accrued payroll and withholdings payable Customer deposits Total liabilities Pension Private - Purpose Agency Trust Funds Trust Fund Fund $ 674,500 $ 9,412 $ 1,638,295 1,967,704 27,458 - 2,863 40 2,645,067 36,910 $ 1,638,295 12,000 - - 620 - 298,697 1,339,598 12,620 - $ 1,638,295 Net Position Net position held in trust for: Employees' pension benefits 2,632,447 - Individuals, organizations, and other governments 36,910 Total net position $ 2,632,447 $ 36,910 The notes to the financial statements are an integral part of this statement. Cn W CITY OF SOUTH BEND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - FIDUCIARY FUNDS For the Year Ended December 31, 2013 Pension Private - Purpose Additions Trust Funds Trust Fund Contributions: On behalf $ 10,898,989 $ - Plan members 881 - Other 4,854 Total contributions 10,904,724 Investment income: Interest 3,519 78 Total additions 10,908,243 78 Deductions Benefits 11,922,137 - Administrative expense 12,512 4,315 Total deductions 11,934,649 4,315 Changes in net position (1,026,406) (4,237) Net position - beginning 3,658,853 41,147 Net position - ending $ 2,632,447 $ 36,910 The notes to the financial statements are an integral part of this statement. CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS Summary of Significant Accounting Policies A. Reporting Entity The City of South Bend (primary government) was established under the laws of the State of Indiana. The primary government operates under a Council -Mayor form of government and pro- vides the following services: public safety (police and fire), highways and streets, health, welfare and social services, culture and recreation, public improvements, planning and zoning, general administrative services, water, sewer, and urban redevelopment and housing. The accompanying financial statements present the activities of the primary government and its significant component units. The component units discussed below are included in the primary government's reporting entity because of the significance of their operational or financial relation- ships with the primary government. Blended component units, although legally separate entities, are in substance part of the government's operations and exist solely to provide services for the government; data from these units is combined with data of the primary government. Blended Component Units The South Bend Redevelopment Authority, a legally separate entity, is a significant blended com- ponent unit of the primary government. The Redevelopment Authority's sole purpose is to fi- nance and construct land, buildings, and other improvements for use by the primary government. Financial statements for the Redevelopment Authority are available at the City Controller's Office, City of South Bend, 227 West Jefferson, 120ON County -City Building, South Bend, Indiana, 46601. The South Bend Building Corporation, Inc., is also a legally separate nonprofit corporation, and is a significant blended component unit of the primary government. The Building Corporation's main purpose is to finance construction and remodeling of City buildings for the City of South Bend. Debt of the Building Corporation is repaid through lease payments from the City. Financial statements for the Building Corporation are available at the City Controller's Office, City of South Bend, 227 West Jefferson, 1200N, County -City Building, South Bend, Indiana, 46601. Related Organizations The primary government's officials are also responsible for appointing the members of the boards of other organizations, but the primary government's accountability for these organizations does not extend beyond making the appointments. The Mayor and the Common Council appoint the board members of the South Bend Housing Authority, South Bend Public Transportation Corpo- ration (TRANSPO), Urban Enterprise Association, and the Special Funds Board of Managers. During 2013, the Special Funds Board of Managers provided $1,313,436 to the City's Century Center to finance operations. 54 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) B. Government -Wide and Fund Financial Statements Government -wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non - fiduciary activities of the primary government. For the most part, the effect of inter -fund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The Statement of Activities demonstrates the degree to which direct expenses of a given function or segments are offset by program revenues. Direct expenses are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given func- tion or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly in- cluded among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fidu- ciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as sepa- rate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measure- ment focus and the accrual basis of accounting as are the proprietary fund and pension trust and private purpose trust fund financial statements. Agency funds, however, report only assets and liabilities. Since they do not report equity (or changes in equity), they have no measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is in- curred, regardless of the timing of the related cash flows. Property taxes are recognized in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources meas- urement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the primary government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expen- ditures, as well as expenditures related to compensated absences, claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when the primary government receives cash. 55 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) The primary government reports the following major governmental funds: The General fund is the primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Park and Recreation fund is used to account for the operation of the City park system. Financing is provided by a specific annual property tax levy to the extent that user fees and miscellaneous revenues are insufficient to provide such financing. The Public Safety Local Option Income Tax (LOIT) fund is used to account for the City's share of the public safety local option income tax. Expenditures are restricted to public safety. The County Option Income Tax (COIT) fund is used to account for the City's share of the county option income tax. Expenditures include any lawful purpose of the City. The Economic Development Income Tax (EDIT) is to account for the City's share of the County Economic Development Tax. Expenditures include any lawful purpose of the City. The Tax Incremental Financing (TIF) Airport fund is used to account for public improvement projects in the airport economic development area. Financing is provided by property tax proceeds in excess of those attributable to the assessed value of the property in the district before redevelopment. The primary government reports the following major enterprise funds: The Water Utility fund accounts for the operation of the primary government's water distribu- tion system. The Wastewater Utility fund accounts for the operation of the primary government's waste- water treatment plant, pumping stations, and collection systems. The Century Center fund accounts for the operation and maintenance of the City's convention center. Financing is received from various user fees for conventions, meetings, and other events held at the civic center and a subsidy from the St. Joseph County's Special Funds Board of Managers. Additionally, the primary government reports the following fund types The internal service funds account for various City liability coverage, employee medical coverage, unemployment claims, and central services such as fuel, vehicle repairs, and var- ious supplies provided to other departments on a cost - reimbursement basis. The pension trust funds account for the activities of the 1925 police and 1937 fire pension funds which accumulate resources for pension benefit payments. The private - purpose trust fund reports a trust arrangement under which principal and income benefits cemetery maintenance. The agency funds account for assets held by the primary government as an agent for em- ployee payroll, pension, and payroll deductions and held for an entertainment center's event deposits. 56 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) As a general rule, the effect of inter -fund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are payments -in -lieu of taxes and payments of administrative costs. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather. than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues from non - perating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating reve- nues of the enterprise funds are charges to customers for sales and services. Operating expen- ses for enterprise funds and internal service funds include the cost of sales and services, admin- istrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the primary govern- ment's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, and Net Position or Equity 1. Deposits and Investments The primary government's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. State statute (IC 5 -13 -9) authorizes the primary government to invest in securities, including but not limited to, federal government securities, repurchase agreements, and certain money market mutual funds. Certain other statutory restrictions apply to all investments made by local governmental units. Nonparticipating certificates of deposit, demand deposits, and similar nonparticipating nego- tiable instruments that are not reported as cash and cash equivalents are reported as invest- ments at cost. Debt securities are reported at fair value. Debt securities are defined as securities backed by the full faith and credit of the United States Treasury or fully insured or guaranteed by the United States or any United States government agency. Open -end mutual funds are reported at fair value. Money market investments that mature within one year or less at the date of their acquisition are reported at amortized cost. There is no material difference between amortized cost and fair value. Other money market investments are reported at fair value. Investment income, including changes in the fair value of investments, is reported as revenue in the operating statement. 57 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) 2. Interfund Transactions and Balances Activities between funds that are representative of lending /borrowing arrangements outstand- ing at the end of the fiscal year are referred to as "inter -fund receivables /payables" (i.e., the current and noncurrent portion of inter -fund loans). All other outstanding balances between funds are reported as "inter -fund services provided /used." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." 3. Property Taxes Property taxes levied are collected by the County Treasurer and are usually distributed to the primary government in June and in December. State statute (IC 6- 1.1- 17 -16) requires the Indiana Department of Local Government Finance to establish property tax rates and levies by February 15. These rates were based upon the preceding year's March 1 (lien date) assessed valuations, adjusted for various tax credits. Taxable property is assessed at 100 percent of the true tax value (determined in accordance with rules and regulations adopted by the Indiana Department of Local Government Finance). Taxes may be paid in two equal installments that become delinquent if not paid by May 10 and November 10, respectively. 4. Inventories and Prepaid Items All inventories are valued at cost using the first in /first out (FIFO) method. Inventories of gov- ernmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. 5. Restricted Assets Certain proceeds of the enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the Statement of Net Position because their use is limited by applicable bond covenants. 6. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities column in the government -wide financial statements. Capital assets are reported at actual or estimated historical cost based on appraisals or deflated current replacement cost. Contributed or donated assets are reported at estimated fair value at the time received. Capitalization thresholds (the dollar values above which asset acquisitions are added to the capital asset accounts), depreciation methods and estimated useful lives of capital assets reported in the government -wide statements and proprietary funds are as follows: CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Capitalization Depreciation Estimated Threshold Method Useful Life Buildings and improvements $ 100,000 Straight -Line 20 to 30 years Large office equipment 10,000 Straight -Line 5 to 10 Vehicles and other equipment 10,000 Straight -Line 5 to 20 Roads - collectors and residential 250,000 Straight -Line 40 to 50 Utilities infrastructure (large) 250,000 Straight -Line 30 to 99 The City has implemented retroactive reporting of its infrastructure as of December 31, 2006. For depreciated assets, the cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are con- structed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. 7. Compensated Absences Sick Leave - primary government employees earn sick leave at the rate of 4 to 8 days per year, depending upon employee classification and length of service. Policemen, teamsters, 40 hour per week firemen, and all other employees earn 8 sick days per year, regardless of tenure of service. Firemen working 24 hour workdays with tenure greater than 5 years earn 5 days of sick leave per year, and firemen working 24 hour workdays with tenure less than 5 years, earn 4 days of sick leave per year. Sick leave may accumulate to a maximum 90 days for policemen, 100 days for 40 hour per week firemen, 38 days for 24 per day fireman, 75 days for teamsters and 65 days for all other employees. Accumulated sick leave is paid to firemen and policemen upon termination of employment depending upon the number of sick leave hours transacted, at a rate of 50 percent to 100 percent of the base hourly rate of pay for firemen and at a rate of one -half the 1St class patrolman rank rate of pay for policemen. Accumulated sick leave is paid to teamster employees, upon retirement, at a rate of $25 for each accumulated sick leave day transacted. Sick leave buy -back during employment is paid to firemen and policemen annually upon request. Upon request, firemen are paid unused sick days earned in the previous year in excess of 252 hours in the sick day bank at the base hourly rate of pay. Upon request, policemen are paid up to a maximum 8 unused sick days at the 1 st class patrolman rate of pay. b. Vacation Leave - primary government employees earn vacation leave at rates from zero days to 28 days based upon hire date, years of service, and employee classification. Vacation leave does not accumulate from year to year for policemen, firemen, and teamster employees, except in instances where special cases are approved. Non - bargaining carryover to the following year unused vacation time up to a maximum of 80 hours. Employees earn vacation leave during the year for use in the succeeding year. Unused vacation leave is paid to employees upon termination of employment. Firemen may sell back vacation leave, up to a maximum 3 days per year, during selected times of the year, at the employee's normal hourly rate of pay. 59 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) c. Personal Leave - primary government policemen earn personal leave at the rate of 7 days per year, and have the opportunity to earn an additional three days leave with par- ticipation in regularly scheduled police practice shooting exercises. Policemen personal leave does not accumulate from year to year. Policemen unused personal leave may be rolled into sick leave. City employees under the teamster contract can use up to 4 days of their sick leave for personal leave. d. Compensatory Leave - primary government firemen can elect to receive compensation for overtime hours worked either through wage payment or compensatory time off work up to a maximum of 240 hours. All other nonexempt employees working overtime hours earn compensatory time off up to a maximum balance of 32 hours, after which they are paid overtime wage. All other exempt employees working overtime hours earn compen- satory time up to a maximum balance of 160 hours. Unused vacation leave for all City employees, and unused sick leave and compensatory leave of firemen, policemen and teamsters is accrued when incurred and reported as a lia- bility in the Statement of Net Position. Amounts due and payable at year end are included in the proprietary fund statements. No liability is recognized in the governmental fund state- ments. 8. Long -Term Obligations In the government -wide financial statements and proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight -line method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and dis- counts during the current period. The face amount of debt issued is reported as other fi- nancing sources. Premiums received on debt issuance are reported as other financing sour- ces while discounts on debt issuances are reported as other financing uses. Net position restricted for debt service and for capital outlay shown in the business -type activities and in the enterprise funds are restricted pursuant to state statute and /or local ordi- nance. 9. Fund Equity Fund balances are reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. A brief description of each category is as fol- lows: Nonspendable fund balances include items that cannot be spent. This includes activity that is not in a spendable form (long -term portions of loans, property held for resale) and activity that is legally or contractually required to remain intact, such as principal balances in a permanent fund. .1 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Restricted fund balances have constraints placed upon the use of the resources either by an external party such as a grantor or creditor or imposed by law through constitutional provisions or enabling legislation. Committed fund balances can be used only for specific purposes pursuant to constraints imposed by a formal action by the South Bend City Common Council, the City's highest level of decision - making authority, for all non -TIF Funds, or by the South Bend Redevelopment Commission for TIF Funds. This formal action is the passage of an ordinance by the Council or resolution by the Commission specifying the purposes for which the funds can be used. The same type of formal action is necessary to remove or change the specified use. Assigned fund balances include amounts that are constrained by the City's intent to be used for a specific purpose, but are neither restricted nor committed. For the govern- mental fund types other than the General Fund, this is the residual amount within the fund that is not restricted or committed. Currently, state statute does not require the City's Common Council to undertake any resolution regarding the assignment of fund balances. Assignments of fund balance are imposed by informal action of the City Controller. Formal action by a governing body is not required to assign fund balances. The unassigned fund balance is the residual amount of the General Fund not included in the four categories above. Only the General Fund may report a positive unassigned fund balance whereas, other governmental funds may need to report a negative unassigned fund balance if expenditures incurred for specific purposes exceeded the amounts re- stricted, committed, or assigned to those purposes. When both restricted and unrestricted amounts are available for use, generally it is the City's policy to use restricted amounts first, with unrestricted resources utilized as needed. In the case of unrestricted resources, it is generally the City's policy to use committed amounts first, followed by assigned amounts, then unassigned amounts as needed. The fund balance policy includes reserve ranges for funds as follows: General: 25 percent of annual expenditures COIT: 50 percent of annual expenditures EDIT: 50 percent of annual expenditures Water operating: 5 percent of annual expenditures Wastewater operating: 5 percent of annual expenditures Other: generally 20 percent or 25 percent of annual expenditures 61 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) The detail of the fund balance classifications of the governmental funds for the year ended December 31, 2013, is as follows: Public Safety LOIT funds are primarily restricted for payment of police and fire personnel. Park and Recreation funds are restricted primarily for parks and recreation operating costs, including personnel. COIT and EDIT funds are assigned to general government primarily for debt service payments and operating expenses. The government -wide Statement of Net Position reports restricted net position for debt service and capital outlay, which is restricted by enabling legislation. II. Stewardship, Compliance and Accountability A. Budgetary Information Annual budgets are adopted on the cash basis which is not consistent with accounting principles generally accepted in the United States of America. All annual appropriations lapse at fiscal year- end. 62 Major Govemmental Funds Other Total General Park and Public Safety Governmental Governmental Fund Recreation LOIT COIT EDIT TIF Airport Funds Funds Nonspendable: Inventory $ - $ 84,308 $ - $ - $ - $ - $ - $ 84,308 Property held for resale - - - 569,499 449,831 8,756,317 9,198,433 18,974,080 Advances to other funds 656,848 2,027,973 1,742,115 4,426,936 Total Nonspendable 656,848 84,308 2,597,472 449,831 10,498,432 9,198,433 23,485,324 Restricted: General government - - - - - - 1,928,114 1,928,114 Public safety 1,795,219 2,075,185 3,870,404 Highways and streets - 12,930,333 12,930,333 Economic development - - - - - 25,516,587 35,728,065 61,244,652 Culture and recreation 4,001,110 - 2,277,196 6,278,306 Debt service 9,136,070 9,136,070 Total Restricted 4,001,110 1,795,219 25,516,587 64,074,963 95,387,879 Committed: General government - - - 7,918,928 7,918,928 Public safety - - - - - - 5,328,506 5,328,506 Highways and streets 5,912,837 5,912,837 Economic development - - - - - - 903,269 903,269 Culture and recreation 633,486 633,486 Total Committed 20,697,026 20,697,026 Assigned: General government 15,976 - - 14,201,296 10,715,091 - 9,585,928 34,518,291 Public safety 478,326 - - - - - 95,711 574,037 Economic development - 857,164 857,164 Culture and recreation 37,657 37,657 Total Assigned 531,959 14,201,296 10,715,091 10,538,803 35,987,149 Unassigned 26,480,106 (4,852,169) 21,627,937 Total fund balance $27,668,913 $ 4,085,418 $ 1,795,219 $ 16,798,768 $ 11,164,922 $ 36,015,019 $ 99,657,056 $197,185,315 Public Safety LOIT funds are primarily restricted for payment of police and fire personnel. Park and Recreation funds are restricted primarily for parks and recreation operating costs, including personnel. COIT and EDIT funds are assigned to general government primarily for debt service payments and operating expenses. The government -wide Statement of Net Position reports restricted net position for debt service and capital outlay, which is restricted by enabling legislation. II. Stewardship, Compliance and Accountability A. Budgetary Information Annual budgets are adopted on the cash basis which is not consistent with accounting principles generally accepted in the United States of America. All annual appropriations lapse at fiscal year- end. 62 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) On or before August 31, the City Controller submits to the Common Council a proposed operating budget for the year commencing the following January 1. Prior to adoption, the budget is adver- tised and public hearings are conducted by the Common Council to obtain taxpayer comments. Prior to November 1 of each year, the Common Council, through the passage of an ordinance, approves the budget for the next year. Copies of the budget ordinance and the advertisement for funds for which property taxes are levied or highway use taxes are received are sent to the Indiana Department of Local Government Finance. The budget becomes legally enacted after the City Controller receives approval of the Indiana Department of Local Government Finance. The primary government's management cannot transfer budgeted appropriations between object classifications, namely, Personnel, Supplies, Services, or Capital of a budget without approval of the Common Council. The Department of Local Government Finance must approve any revis- ions to the appropriations for any fund or any department of the General Fund. The legal level of budgetary control is by object and department within the fund for the General Fund and by object within the fund for all other budgeted funds. B. Deficit Fund Equity At December 31, 2013, the following funds reported deficits in fund equity, which are violations of State statute: nPfirit Nonmajor governmental funds: Urban Development Action Grant (UDAG) $ 231,552 TIF - Douglas Road 629,585 TIF - Northeast Residential 2,222,180 Nonmajor enterprise funds: Consolidated Building 41,717 Fund equity deficits arose primarily from expenditures or expenses exceeding revenues due to the underestimate of current requirements. It is anticipated that these deficits will be repaid from future revenues. III. Detailed Notes on All Funds A. Deposits and Investments 1. Deposits Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may not be returned to it. Indiana Code 5- 13 -8 -1 allows a political subdivision of the State of Indiana to deposit public funds in a financial institution only if the financial institution is a depository eligible to receive state funds and has a principal office or branch that qualifies to receive public funds of the political subdivision. At December 31, 2013, the bank balances held at the following institutions were collateralized with securities held by the pledging finan- cial institution's trust department or agent in the depositor- City's name: 63 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Wells Fargo Bank, NA $1,897,179 US Bank NA 7,691,544 15i Source Bank 2,028,437 Sun Trust 431,511 PNC 91 At December 31, 2013, the bank balances held at the following institutions were collateralized with securities held by the pledging financial institution's trust department or agent but not in the depositor- City's name: Bank of New York Mellon $7,314,676 1s` Source Bank 4,448,983 The remaining bank balances were insured by the Federal Deposit Insurance Corporation or the Public Deposit Insurance Fund, which covers all public funds held in approved deposi- tories. The City has not formally adopted a deposit policy for custodial credit risk. 2. Investments Authorization for investment activity is stated in Indiana Code 5 -13. As of December 31, 2013, the City had the following investments: Primary Government Investment Maturities (in Investment Fair Less More Type Value Than 1 1 -2 Than 2 U.S. government agency securities $ 79,635,467 $ 28,727,631 $ 50,907,836 $ Investment Policies Indiana Code 5 -13 -9 authorizes the City to invest in securities backed by the full faith and credit of the United States Treasury or fully guaranteed by the United States of America and issued by the United States Treasury, a federal agency, a federal instrumentality, or a federal government sponsored enterprise. These investments are required by statute to have a stated final maturity of not more than five years. Indiana Code also provides for investment in money market mutual funds that are in the form of securities of, or interest in, an open -end, no -load, management -type investment company or investment trust registered under the provision of the federal Investment Company Act of 1940, as amended. Investments in money market mutual funds may not exceed 50 percent of the funds held by the City and available for investment. The portfolio of an investment company or investment trust used must be limited to direct obligations of the United States of America, obligations issued by a federal agency, a federal instrumentality, or a federal government sponsored enterprise; or repurchase agreements fully collateralized by direct obligations of the United States of America or obligations issued by a federal agency, a federal instrumentality, or a federal government sponsored enterprise. The form of securities of, or interest in, an investment company or investment trust must be rated as AAA, or its equivalent by Standard and Poor's Corporation or its successor or Aaa, or its equivalent, by Moody's Investors Service, Inc., or its successor. The form of securities in an investment company or investment trust should have a stated final maturity of one day. 64 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Additionally, the City may enter into repurchase agreements with depositories designated by the State Board of Finance as depositories for state deposits involving the unit's purchase and guaranteed resale of any interest - bearing obligations issued or fully insured or guaran- teed by the United States of America, a United States of America government agency, an instrumentality of the United States of America, or a federal government sponsored enter- prise. The repurchase agreement is considered to have a stated final maturity of one day. This agreement must be fully collateralized by interest - bearing obligations as determined by their current market value. Investment Custodial Credit Risk The custodial credit risk for investments is the risk that, in the event of the failure of the coun- terparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City does not have a formal investment policy for custodial credit risk for investments. At December 31, 2013, the City held investments in U.S. government agency securities in the amount of $79,635,467. These investments were held by the counterparty's trust department or agent but not in the City's name. Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City must follow state statute and limit the stated final maturities of the in- vestments to no more than five years. The City does not have a formal investment policy for interest rate risk. The following schedule is a summary of the interest rate risk disclosure as of December 31, 2013: Investment Maturities (in Years) Investment Less More Type Than 1 1 -2 Than 2 U.S. government agency securities $ 28,727,631 $ 39,064,603 $ 11,843,233 Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. U.S. government agency securities are implicitly guaranteed by the full faith and credit of the U.S. government and are recognized as one of the safest investment available. The City does not have a formal investment policy for credit risk. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's in- vestment in a single issuer. It is the City's practice to limit concentration of investments to no more than 10 percent of any institution's asset base. United States of America government and United States of America governmental agency securities are exempt from this policy requirement. 65 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Foreign Currency Risk The City does not have a formal policy in regards to foreign currency risk. The City does not have any foreign currency. B. Receivables The following receivable accounts have timing and credit characteristics different from typical ac- counts receivable. As of December 31, 2013, City funds recognized the following loan receivable balances. The schedule shows the total receivable and the portion that is not due within one year. These loans were for economic development projects: Fund Nonmajor governmental funds Receivable Noncurrent Economic development state grants $ 482,021 $ 58,200 Community investment grants 340,477 265,572 Urban development action grant 1,768,852 1,768,852 Industrial revolving 4,419,860 4,279,464 TI downtown 683,474 503,961 Totals C. Capital Assets $ 7,694,684 $ 6,876,049 Capital asset activity for the year ended December 31, 2013, was as follows: Government Governmental activities: Capital assets, not being depreciated: Land Capital assets, being depreciated: Buildings Improvements other than buildings Machinery and equipment Roads and other infrastructure Totals Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Roads and other infrastructure Totals Total capital assets, being depreciated, net Total governmental activities capital assets, net Beginning Balance Ending (Restated) Increases Decreases Balance $ 15,921,386 $ 99 $ (38,000) $ 15,883,485 127,656,886 2,610,108 (198,661) 130,068,333 16,038,868 242,374 - 16,281,242 50,304,539 5,845,475 (9,796,037) 46,353,977 420,291,534 1,248,521 (99) 421,539,956 614,291,827 9,946,478 (9,994,797) 614,243,508 36,735,257 3,643,119 (13,175) 40,365,201 7,370,754 660,643 - 8,031,397 33,647,008 4,101,379 (9,670,490) 28,077,897 257,852,591 11,425,195 269,277,786 335,605,610 19,830,336 (9,683,665) 345,752,281 278,686,217 (9,883,858) (311,132) 268,491,227 $ 294,607,603 $ (9,883,759) $ (349,132) $ 284,374,712 CITY OF SOUTH-BEND NOTES TO FINANCIAL STATEMENTS (Continued) Beginning Ending Primary Government Balance Increases Decreases Balance Business -type activites: Capital assets, not being depreciated: Land Construction In progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Improvements other than buildings Machinery and equipment Roads and other infrastructure Totals Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Roads and other infrastructure Totals Total capital assets, being depreciated, net Total business -type activities capital assets, net $ 3,024,582 $ - $ - $ 3,024,582 6,647,833 12,126,514 (4,849,336) 13,925,011 9,672,415 12,126,514 (4,849,336) 16,949,593 82,297,980 827,827 (153,257) 82,972,550 23,987,898 2,413,538 (21,030) 26,380,406 29,235,757 3,240,000 (2,263,763) 30,211,994 190,938,764 5,366,748 (862,384) 195,443,128 326,460,399 11,848,113 (3,300,434) 335,008,078 31,348,151 2,120,891 (152,959) 33,316,083 4,659,689 1,089,618 (21,030) 5,728,277 22,162,989 1,557,807 (2,142,650) 21,578,146 55,469,771 4,961,246 (590,418) 59,840,599 113,640,600 9,729,562 (2,907,057) 120,463,105 212,819,799 2,118,551 (393,377) 214,544,973 $222,492,214 $ 14,245,065 $ (5,242,713) $ 231,494,566 Depreciation expense was charged to functions /programs of the primary government as follows: Governmental activities: General government $ 660,287 Public safety 3,248,469 Highways and streets, and other general infrastructure assets 11,939,894 Culture and recreation 3,165,783 Economic development 700,122 Internal service funds* 115,781 Total depreciation expense - governmental activities $ 19,830,336 *Capital assets held by the primary government's internal service funds are charged to the vari- ous functions based on their usage of the assets. 67 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Business -type activities: Total Water $ 1,924,933 Wastewater 6,266,832 Civic center 763,870 Building permits 24,144 Parking garage 260,960 Solid waste 331,220 Golf course 157,603 Total depreciation expense - business -type activities $ 9,729,562 D. Construction Commitments Construction work in progress is composed of the following: E. Interfund Balances and Activity 1. Interfund Receivables and Payables Fund General Park and Recreation TIF Airport Interfund Total Expended to Required Project December 31, Future Project Authorized 2013 Committed Funding Business -type activities: Water Utility: Pinhook WTP Efficiency Improvements $ 3,444,908 $ 2,107,867 $ 1,605,292 $ - Wastewater Utility: Primary Clarifier upgrades 5,780,498 3,047,919 2,931,944 - Michigan St Lift Station Improvements 83,650 62,156 21,494 $ - Sewer Overflow Sensory Network 398,808 358,854 48,930 - Digester Upgrade at WWTP 6,827,800 1,809,325 5,368,223 - Ferric Chloride Feed System 447,500 23,520 423,980 - East Bank Sewer Separation Phase 4 3,282,762 3,197,954 166,102 - Southwood Sewer Separation 236,449 243,233 1,764 - Diamond Avenue Sewer Separation Phase 3 2,787,882 2,847,962 136,839 - Prairie Avenue Sewer Separation 471,000 226,221 252,550 Totals - Business -type activities $ 23,761,257 $ 13,925,011 $ 10,957,118 $ E. Interfund Balances and Activity 1. Interfund Receivables and Payables Fund General Park and Recreation TIF Airport Interfund Receivable Payable $ 15,877 $ 18,310 11,778 3,265 9 I CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Interfund Fund Receivable Payable Nonmajor governmental funds: Motor Vehicle Highway - 598 Park Non - reverting 1,487 - Community Investment - 15,765 Hall of Fame Capital - 687 SBCDA Debt Reserve - 223 TI F Downtown 223 3,150 Totals - nonmajor governmental funds 1,710 20,423 Total - governmental funds 29,365 47,006 Enterprise funds Water Utility 20,906 9,050 Wastewater Utlity 8,383 2,289 Century Center 6,260 - Nonmajor enterprise funds: Consolidated Building - 7,356 Total - nonmajor enterprise funds - 7,356 Total - enterprise funds 35,549 18,695 Internal service funds: Self- funded Employee Benefits - 1,487 Central Services 3,135 861 Total - Internal service funds 3,135 2,348 Total - all funds $ 68,049 $ 68,049 The composition of interfund balances as of December 31, 2013, is as follows: Interfund balances resulted from the time lag between the dates that (1) Interfund loans are repaid, (2) Interfund goods and services are provided or reimbursable expenditures occur, (3) transactions are recorded in the accounting system and (4) payments between funds are made. CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) 2. Advances Between Funds The advances between funds record noncurrent portions of long -term loans from one fund to another. Advances at December 31, 2013, were as follows: Fund General COIT TIF Airport Nonmajor governmental funds: Studebaker Oliver Revitalization Grants Urban Development Action Grant Football Hall of Fame Major Moves TIF Douglas Road TIF Northeast Residential Total - nonmajor governmental funds Total - governmental funds Nonmajor enterprise funds: Blackthorn Golf Course Total - all funds Advances To Other Funds From Other Funds $ 656,848 $ 2,027,973 - 1, 742,115 500,000 500,000 - - 2,027,973 - 656,848 5,912,837 - - 923,829 4,989,008 6,412,837 8,597,658 10,839,773 9,097,658 - 1,742,115 $ 10,839,773 $ 10,839,773 Specific purposes of the advances are as follows: The General Fund advanced funds to the Football Hall of Fame to cover operating expenses. The COIT Fund advanced funds to the Urban Development Action Grant Fund for community development projects. The Airport TIF advanced funds for the Blackthorn Golf Course debt services payments. Major Moves advanced funds to the Douglas Road and Northeast Residential TIFs for project costs incurred to construct roads and a parking garage. 70 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) 3. Interfund Transfers Interfund transfers at December 31, 2013, were as follows: Transfers From Other Funds To Other Funds General $ 12,044,166 $ 744,364 Park and Recreation 696,009 209,824 Public Safety LOIT 683,303 7,540,389 COIT - 1,807,098 EDIT - 5,456,519 TIF Airport 211,047 1,233,000 Nonmajor governmental funds: Motor Vehicle Highway 3,626,882 - DCI Operating 1,717,519 - Leaf Collection and Removal - 250,000 College Football Hall of Fame Debt Service 71,468 - Redevelopment Bond - Airport Taxable. - 3,167 Redevelopment Bond - Palais Royale - 5,292 Redevelopment Authority Debt Service 4,755,324 - South Bend Building Corporation Debt Service 2,237,291 - Emergency Medical Services - 1,000,000 Park Nonreverting Capital 209,824 - Cumulative Capital Development 46,054 - Cumulative Capital Improvement - 367,575 TIF - Downtown 5,291 398,500 College Football Hall of Fame Capital 61,061 - 11F - Northeast Residential - 2,824,324 Total - Nonmajor governmental funds Total - governmental funds Water Utility - Wastewater Utility Non -major enterprise,funds: Blackthorn Golf Course Total - Nonmajor enterprise funds Total- enterprise funds Total - all funds 71 12,730,714 4,848,858 26,365,239 21,840,052 1,541,755 2,775,553 207,879 _ 207,879 _ 4,525,187 $ 26,365,239 $ 26,365,239 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) The primary government typically uses transfers to fund ongoing operating subsidies. Specific purposes of the transfers are as follows: The Public Safety LOIT and Emergency Medical Services Funds transferred funds to the General Fund for the payment of police and fire and EMS personnel. The Water and Wastewater Utility Funds transferred PILOT funds to the General, Parks and Recreation, Redevelopment Bond Debt Service - Airport Taxable, and Cumulative Capital Development Funds for general use. The COIT, EDIT, TIF Airport, TIF Downtown, Cumulative Capital Improvement, and TIF Northeast Residential Funds transferred funds to the Redevelopment Authority and South Bend Building Corporation Debt Services Funds for debt service payments. The COIT and EDIT Funds transferred funds to the Motor Vehicle Highway Fund for general operations as well as for the curb and sidewalk improvements. The EDIT Fund transferred funds to the DCI Operating Fund for salaries and wages relating to community investment initiatives. The Leaf Collection and Removal Fund transferred funds collected from customers for leaf collection to the Motor Vehicle Highway Fund to cover supervisory personnel in charge of the Leaf Collection and Removal program. The Parks and Recreation Fund transferred funds collected for park programs to the Park Nonreverting Capital Fund. F. Leases 1. Operating Leases The primary government has entered into various operating leases having initial or remaining noncancelable terms exceeding one year for golf cart global positioning systems, office ma- chines, and office space. Rental expenditures for these leases were $271,570. The following is a schedule by years of future minimum rental payments as of December 31, 2013: Year Ended Annual December 31 Payment 2014 $ 166,773 2015 122,758 2016 83,758 2017 78,538 2018 6,000 Total $ 457,827 2. Capital Leases The primary government has entered into various capital leases for various types of equip- ment and two parking garages. The parking garage capital leases are being repaid from gov- ernmental funds. Future minimum lease payments and present values of the net minimum lease payments under these capital leases as of December 31, 2013, are as follows: 72 2014 2015 2016 2017 2018 2019 -2023 2024 -2028 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Governmental Business -Type Activities Activities $ 2,351,558 $ 1,086,835 2,325,625 1,007,218 1,860,654 866,361 1,117, 531 783,318 651,748 219,664 1,000,000 3 400,000 - Total minimum lease payments 9,707,116 3,963,399 Less amount representing interest 929,877 132,671 Present value of net minimum lease payments $ 8,777,239 $ 3,830,728 Assets acquired through capital leases still in effect are as follows: Governmental Business -Type Activities Activities Buildings $ Improvements other than buildings Machinery and equipment Totals Accumulated depreciation Totals 5,189,549 $ 4,115,612 2,645,045 - 17,176,056 5,896,038 25, 010, 650 10, 011, 650 14.354.501 4.187.131 $ 10,656,149 $ 5,824,519 G. Long -Term Liabilities 1. Mortgage Bonds Mortgage Bonds outstanding at year end are as follows: 73 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Total - governmental activities Business -Type Activities 2010 Public Works Service Center Refunding - maturity February 1, 2021 - installments of $525,000 to $615,000 plus interest $ 24, 502, 775 $ 21, 790, 645 3.0% to 5.0% $ 747,225 $ 539,355 Mortgage bonds at year end include the following amounts of unamortized bond discount (premium) and unamortized loss (gain) on refunding: P Governmental Activities Unamortized Balance at Discount Adjusted December 31 (Premium) Balance 2010 Public Works Service Center Refunding $ 3,845,645 $ (87,319) $ 3,932,964 2012 New Fire Station /Police renovations refunding 12,365,000 (1,118,615) 13,483,615 2013 EMS Training facility 5,580,000 (83,202) 5,663,202 Total Governmental Activities $ 21,790,645 $ (1,289,136) $ 23,079,781 Business -Type Activities 2010 Public Works Service Center Refunding $ 539,355 $ (12,247) $ 551,602 Mortgage debt service requirements to maturity are as.follows: 74 Interest Original Outstanding Purpose Rates Issue 12 -31 -13 Governmental Activities 2010 Public Works Service Center Refunding - maturity February 1, 2021 - installments of $525,000 to $615,000 plus interest 3.0% to 5.0% $ 5,327,775 $ 3,845,645 2012 New Fire Station /Police renovations refunding - maturity February 1, 2023 - installments of $545,000 to $770,000 plus interest 2.1% to 5.0% 13,595,000 12,365,000 2013 Building Corp EMS Fire Station/Tower Bonds - maturity February 1, 2033 - instalments $215,000 - $235,000 plus interest 3.0% to 4.2% 5,580,000 5,580,000 Total - governmental activities Business -Type Activities 2010 Public Works Service Center Refunding - maturity February 1, 2021 - installments of $525,000 to $615,000 plus interest $ 24, 502, 775 $ 21, 790, 645 3.0% to 5.0% $ 747,225 $ 539,355 Mortgage bonds at year end include the following amounts of unamortized bond discount (premium) and unamortized loss (gain) on refunding: P Governmental Activities Unamortized Balance at Discount Adjusted December 31 (Premium) Balance 2010 Public Works Service Center Refunding $ 3,845,645 $ (87,319) $ 3,932,964 2012 New Fire Station /Police renovations refunding 12,365,000 (1,118,615) 13,483,615 2013 EMS Training facility 5,580,000 (83,202) 5,663,202 Total Governmental Activities $ 21,790,645 $ (1,289,136) $ 23,079,781 Business -Type Activities 2010 Public Works Service Center Refunding $ 539,355 $ (12,247) $ 551,602 Mortgage debt service requirements to maturity are as.follows: 74 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Year Ended Governmental Activities Business -Type Activities December 31 Principal Interest Principal Interest 3.0% to 4.75% $ 6,620,000 $ 3,405,000 - maturity January 1, 2022 2014 $ 1,580,425 $ 715,921 $ 64,575 $ 17,912 2015 1,852,965 708,085 67,035 15,956 2016 1,911,120 649,014 68,880 13,927 2017 1,969,275 587,407 70,725 11,807 2018 2,026,815 522,582 73,185 9,443 2019 -2023 9,000,045 1,479,354 194,955 11,715 2024 -2028 1,520,000 528,456 - - 2029 -2033 1,930,000 207,076 - - 2011 Hall of Fame Refinancing .8% to 3.65% 7,580,000 5,285,000 - maturity February 1, 2018 Totals $ 21,790,645 $ 5,397,895 $ 539,355 $ 80,761 2. Revenue Bonds The primary government issues bonds to be paid by income derived from the acquired or constructed assets. Revenue bonds outstanding at year end are as follows: 75 Interest Original Outstanding Purpose Rates Issue 12 -31 -13 Governmental Activities: Tax Incremental Financing Revenue Bonds: 2002 TJX Special Taxing District 3.0% to 4.75% $ 6,620,000 $ 3,405,000 - maturity January 1, 2022 - installments of $295,000 to $500,000 plus interest 2003 Amended Airport TIF Refunding 4.0% to 5.20% 14,420,000 9,195,000 - maturity February 1, 2025 - installments of $254,036 to $530,000 plus interest 2003 Amended Downtown TIF Refunding 4.0% to 5.20% 19,795,000 16,120,000 - maturity February 1, 2025 - installments of $260,000 to $935,000 plus interest 2005 Southside -I-IF 6.1 % to 6.75% 5,485,000 4,465,000 - maturity February 1, 2027 - installments of $165,000 to $465,000 plus interest 2011 SB Career Academy Project 4.0% 1,500,000 500,000 - maturity November 15, 2014 - installments of $500,000 plus interest Redevelopment Authority Revenue Bonds: 2008 Eddy Street Common Improvements 4.0% to 6.0% 36,000,000 34,050,000 - maturity February 15, 2033 - installments of $145,000 to $1,420,000 plus interest 2009 Morris Performing Arts Center Refinancing 3.0% to 4.0% 7,210,000 3,380,000 - maturity February 1, 2017 - installments of $400,000 to $515,000 plus interest 2011 Hall of Fame Refinancing .8% to 3.65% 7,580,000 5,285,000 - maturity February 1, 2018 - installments of $550,000 to $615,000 plus interest 2011 Century Center Refinancing 2.0% to 3.0% 2,980,000 2,070,000 - maturity February 1, 2018 - installments of $215,000 to $260,000 plus interest 75 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Purpose Governmental Activities (continued): 2013 Century Center Improvements - maturity May 1, 2028 - installments of $155,000 to $375,000 plus interest CEDIT Revenue Bonds: 2006 CEDIT Refinancing Bonds - maturity February 1, 2017 - installments of $310,000 to $430,000 plus interest Professional Sports /Convention Development Revenue Bonds: 2010 Taxable - maturity January 5, 2019 - installments of $580,000 to $670,000 plus interest Interest Original Outstanding Rates Issue 12 -31 -13 4.0% to 5.63% 3.75% to 4% 4,655,000 3,990,000 7,440,000 2,815,000 1.75 %to5.21/6 4,980,000 3,520,000 Total Governmental Activities $ 118,665,000 $ 88,795,000 - St. Joseph County has irrevocably pledged hotel -motel tax revenues to finance debt payments Business -Type Activities: 2006 Water Works Improvement - maturity January 1, 2027 - installments of $170,000 to $350,000 plus interest 2009 Water Works Improvement - maturity January 1, 2030 - installments of $195,000 to $455,000 plus interest 2012 Water Works Improvement - maturity January 1, 2023 - installments of $335,000 to $425,000 plus interest 20126 Water Works Improvement - maturity January 1, 2033 - installments of $340,000 to $540,000 plus interest 2006 Sewage Works Improvement - maturity December 1, 2026 - installments of $295,000 to $630,000 plus interest 2007A Sewage Works Improvement - maturity December 1, 2027 - installments of $585,000 to $1,225,000 plus interest 2007B Sewage Works Improvement - maturity December 1, 2027 - installments of $580,000 to $1,230,000 plus interest 2010 Sewage Works Revenue - maturity December 1, 2030 - installments of $365,000 to $665,000 plus interest 2011 Sewage Works Revenue - maturity December 1, 2031 - installments of $365,000 to $665,000 plus interest 2012 Sewage Works Revenue - maturity December 1, 2032 - installments of $1,105,000 to $1,650,000 plus interest 2013A Sewage Works revenue - maturity December 1, 2024 - installments of $1,065,000 to $715,000 plus interest 4.25% to 4.50% 4,710,000 3,505,000 3.8% to 5.89% 5,380,000 4,985,000 2.0% 5,975,000 3,450,000 2.0% to 3.7% 8,300,000 7,960,000 3.6% to 4.625% 7,630,000 6,090,000 4.0% to 4.5% 16,600,000 13,010,000 4.0% to 4.5% 16,515,000 12,960,000 2.0% to 4.5% 9,345,000 8,270,000 3% to 4% 21, 500, 000 19, 895, 000 2% to 2.75% 25,000,000 23,985,000 1.94% 14,765,000 13,700,000 Total Business -Type Activities $ 135,720,000 $ 117,810,000 The City has pledged future revenues, net of operating expenses to repay Water and Waste- water Utilities' bonds. Bond ordinances require monthly deposits of a portion of user fee revenues sufficient to meet requirements of the next principal, interest, and bank fiscal charge payment. Water and wastewater bond ordinances also require monthly deposits of user fee revenues over 60 months to produce a bond reserve equal to approximately the maximum annual debt service. 76 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) During 2013, the Water Utility paid $2,227,900 in debt payments or approximately 16 percent of operating revenues. The Wastewater Utility paid $13,858,305 in debt payments or approx- imately 43 percent of operating revenues. The City has pledged tax incremental financing revenues to meet tax incremental financing and Redevelopment Authority debt requirements. The City has pledged County Economic Development Income Taxes (CEDIT) to meet the CEDIT revenue bond debt requirements. The City has also pledged taxes in the Professional Sports and Convention Development (PSCD) Area to meet the PSCD revenue bonds. Revenue bonds at year end include the following amounts of unamortized bond discount (premium) and unamortized loss (gain) on refunding: Total Governmental Activities $ 88,795,000 $ (1,377,826) $ 90,172,826 Business -Type Activities: Unamortized 2006 Water Works Improvement Balance at Discount Adjusted Purpose December 31 (Premium) Balance Governmental Activities: 3,450,000 30,409 3,419,591 Tax Incremental Financing Revenue Bonds: 7,960,000 45,904 7,914,096 2002 TJX Special Taxing District $ 3,405,000 $ 28,856 $ 3,376,144 2003 Amended Airport TIF Refunding 9,195,000 - 9,195,000 2003 Amended Downtown TIF Refunding 16,120,000 - 16,120,000 2005 Southside TIF 4,465,000 42,948 4,422,052 2011 SB Career Academy Project 500,000 - 500,000 Redevelopment Authority Revenue Bonds: 23,985,000 (174,581) 24,159,581 2008 Eddy Street Common Improvements 34,050,000 (1,338,574) 35,388,574 2009 Morris Performing Arts Center Refinancing 3,380,000 (35,416) 3,415,416 2011 Hall of Fame Refinancing 5,285,000 - 5,285,000 2011 Century Center Refinancing 2,070,000 (18,607) 2,088,607 2013 Century Center Improvements 3,990,000 (41,527) 4,031,527 CEDIT Revenue Bonds: 2006 CEDIT Refinancing Bonds 2,815,000 (15,506) 2,830,506 Professional Sports /Convention Development Revenue Bonds: 2010 Taxable 3,520,00 3,520,000 Total Governmental Activities $ 88,795,000 $ (1,377,826) $ 90,172,826 Business -Type Activities: 2006 Water Works Improvement 3,505,000 13,091 3,491,909 2009 Water Works Improvement 4,985,000 - 4,985,000 2012B Water Works Improvement 3,450,000 30,409 3,419,591 2012 Water Works Improvement 7,960,000 45,904 7,914,096 2006 Sewage Works Improvement 6,090,000 35,979 6,054,021 2007A Sewage Works Improvement 13,010,000 23,131 12,986,869 2007B Sewage Works Improvement 12,960,000 (81,996) 13,041,996 2010 Sewage Works Revenue 8,270,000 (158,840) 8,428,840 2011 Sewage Works Revenue 19,895,000 94,586 19,800,414 2012 Sewage Works Revenue 23,985,000 (174,581) 24,159,581 2013A Sewage Works Revenue 13,700,000 (136,222) 13,836,222 Total Business -Type Activities $ 117,810,000 $ (308,539) $ 118,118,539 77 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Revenue bonds debt service requirements to maturity are as follows: Year Ended Governmental Activities Business -Type Activities December 31 Principal Interest Principal Interest 108,527 2016 162,817 16,770 345,456 2014 $ 7,950,000 $ 4,326,765 $ 6,910,000 $ 3,992,614 2015 7,720,000 4,034,845 7,080,000 3,799,374 2016 8,030,000 3,728,416 7,265,000 3,600,160 2017 7,380,000 3,396,357 7,465,000 3,389,962 2018 5,840,000 3,084,214 13,745,000 3,172,319 2019 -2023 24,480,000 11,739,534 35,585,000 12,475,115 2024 -2028 16,000,000 5,280,643 33,670,000 6,024,668 2029 -2033 11, 395, 000 1,776,750 6,090,000 1,086,583 Totals $ 88,795,000 $ 37,367,523 $ 117,810,000 $ 37,540,793 3. Notes and Loans Payable The primary government has entered into various notes /loans. Annual debt service require- ments to maturity for the notes /loans are as follows: Year Ended December 31 Governmental Activities Business -Type Activities Principal Interest Principal Interest 2014 $ 1,608,064 $ 73,056 $ 326,346 $ 117,945 2015 902,796 31,251 335,765 108,527 2016 162,817 16,770 345,456 98,835 2017 118,469 9,780 355,426 88,865 2018 65,591 6,419 365,686 73,397 2019 -2023 172,817 7,209 1,209,971 266,898 2024 -2028 - - 1,152, 901 99,876 2029 -2033 - - 29,459 993 Totals $ 3,030,554 $ 144,485 $4,121,010 $ 855,336 4. Bond Refunding On April 25, 2013, the City of South Bend issued $14,765,000 in refunding revenue bonds with an average interest rate of 1.94 percent to advance refund $9,445,000 in outstanding 1998 state revolving loans payable and $7,980,000 in outstanding 2004 sewage works reve- nue bonds with an average interest rate of 3.98 percent. The net proceeds of $14,683,935 (after payment of $81,065 in issuance costs) and local contributions of $3,515,459 were used 78 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1998 state revolving loans payable and 2004 series bonds. As a result, these loans payable and bonds are considered to be defeased and the liability for those bonds has been removed from the Statement of Net Position. The refunding resulted in the accounting loss of $631,980 which has been recognized on the Statement of Net Position as Deferral of Loss on Refunding. This amount will be amortized using the straight -line method and charged to interest expense over the next 12 years. The City of South Bend in effect reduced its aggregate debt service payment by $1,294,420 over the next 12 years and realized an economic gain (difference between the present values of the old and new debt service payments) of $970,950. On December 5, 2013, the City of South Bend issued $3,990,000 in refunding revenue bonds with an average interest rate of 3.02 percent to advance refund $3,990,000 of outstanding 2008 Century Center project revenue series bonds with an average interest rate of 5.47 percent. The net proceeds of $3,895,417 (after payment of $136,110 in issuance costs) and local contributions of $494,433 were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 2008 series bonds. As a result, these bonds are considered to be defeased and the liability for those bonds has been removed from the Statement of Net Position. The refunding resulted in the accounting loss of $466,724 which has been recog- nized on the Statement of Net Position as Deferral of Loss on Refunding. This amount will be amortized using the straight -line method and charged to interest expense over the next 13 years. The City of South Bend in effect reduced its aggregate debt service payments by $563,917 over the next 15 years and realized an economic gain (difference between the pre- sent values of the old and new debt service payments) of $234,133. 5. Changes in Long -Term Liabilities Long -term liability activity for the year ended December 31, 2013, was as follows: Beginning Government Balance Governmental activities: Bonds payable: Revenue Mortgage Total bonds payable Notes and loans payable Capital leases Compensated absences Net other postemployment benefits obligation Net pension obligation Total governmental activities long -term liabilities Additions Reductions Ending Balance Due Within One Year $ 96, 410, 000 $ 3,990,000 $(11,605,000) $ 88, 795, 000 $ 7,950,000 17,883,530 5,580,000 (1,672,885) 21,790,645 1,580,425 114, 293, 530 9,570,000 (13, 277, 885) 110, 585, 645 9, 530, 425 4,953,639 - (1,923,085) 3,030,554 1,608,064 8,336,120 2,240,007 (1,798,889) 8,777,238 2,115, 937 5,116,325 3,892,728 (3,824,141) 5,184,912 3,892,728 6,539,338 3,968,925 (2,207,586) 8,300,677 - 63,100,018 13, 520, 569 (13, 362, 281) 63, 258, 306 $202,338,970 $ 33,192, 229 $(36, 393, 867) $ 199,137, 332 $ 17,147,154 79 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Total business -type activities long -term liabilities $ 135,741,733 $ 15,852,032 $ (25,292,671) $126,301,094 $ 8,303,927 Compensated absences for governmental activities typically have been liquidated from the General fund and special revenue funds. All of the December 31, 2013, business -type activ- ities' compensated absences are due within one year. Net pension obligation will be liquid - dated from the pension trust funds. Net OPEB obligation will be liquidated from the General fund. H. Restricted Assets The balances of restricted asset accounts in the enterprise funds are as follows: Cash, cash equivalents, and investments: Repair funds $ 1,361,351 Customer deposits 1,450,316 Revenue bond covenant accounts 14,951,621 Capital outlay accounts 36,449,049 Cash with fiscal agent 628,472 Interest receivable 49,618 Total restricted assets $ 54,890,427 I. Restatements and Reclassifications The following schedule presents a summary of restated beginning balances. IJ-7 7M Due Beginning Ending Within Primary Government Balance Additions Reductions Balance One Year Business -type activities: Revenue bonds payable: Water Utility $ 20, 970, 000 $ - $ (1,070,000) $ 19, 900, 000 $ 1,105, 000 Wastewater Utility 96,060,000 14,765,000 (12,915,000) 97,910,000 5,805,000 Blackthorn Golf Course 620,000 (620,000) Total revenue bonds payable 117,650,000 14,765,000 (14,605,000) 117,810,000 6,910,000 Mortgage bonds payable 601,470 - (62,115) 539,355 64,575 Capital leases payable 3,641,362 1,052,730 (863,363) 3,830,729 1,003,006 Notes and loans payable 13,848,901 34,302 (9,762,193) 4,121,010 326,346 Total business -type activities long -term liabilities $ 135,741,733 $ 15,852,032 $ (25,292,671) $126,301,094 $ 8,303,927 Compensated absences for governmental activities typically have been liquidated from the General fund and special revenue funds. All of the December 31, 2013, business -type activ- ities' compensated absences are due within one year. Net pension obligation will be liquid - dated from the pension trust funds. Net OPEB obligation will be liquidated from the General fund. H. Restricted Assets The balances of restricted asset accounts in the enterprise funds are as follows: Cash, cash equivalents, and investments: Repair funds $ 1,361,351 Customer deposits 1,450,316 Revenue bond covenant accounts 14,951,621 Capital outlay accounts 36,449,049 Cash with fiscal agent 628,472 Interest receivable 49,618 Total restricted assets $ 54,890,427 I. Restatements and Reclassifications The following schedule presents a summary of restated beginning balances. IJ-7 7M CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) J. Loss on SalelLeaseback of Leighton Parking Garage During 2000, the City completed construction of the Leighton Parking Garage and capitalized the cost of the garage, $11,439,712, in the Parking Garage Fund, an enterprise fund. On December 1, 2000, the City sold the garage to the South Bend Transportation Company (TRANSPO) for $3,000,000 as part of a sale /leaseback agreement. The proceeds were receipted into the County Option Income Tax Fund. This fund is also making the future lease payments to TRANSPO. The present value of the lease, $1,960,044, was the new basis for the parking garage. As part of this sale /leaseback, the Parking Garage Fund recognized a deferred loss of $8,439,712, which is being amortized over the fifteen year life of the lease. K. Property Held for Resale The City's Redevelopment Commission has purchased properties in blighted areas for redevelop- ment and subsequent resale. At December 31, 2013, the market value of these properties was not known. These properties are recognized as assets in the funds that purchased the property. L. Service Concession Agreement On July 1, 2013, the City entered into a Service Concession Agreement ( "SCA ") with SMG, a civic center management company, with the purpose of obtaining high - quality professional man- agement of the Century Center. The initial term of the contract extends through June 30, 2016, and is renewable for 2 additional 3 year periods after that. SMG's compensation is a flat fee of $135,000 for the first year and is then adjusted by the CPI for each successive year. There are also additional financial incentives based on various operational goals. SMG is responsible for all operations and financial reporting. Additionally, SMG contributed a onetime capital infusion of $575,000, to be used for capital im- provement, that will be amortized over the life of the first three -year contract term. Both parties retain certain rights regarding operations and contract cessation. Balance Prior Balance as Reported Period as Restated December 31, Adjustments/ January 1, Opinion Unit 2012 Reclassifications 2013 Governmental activities - nef position: $ 292,631,223 $ $ Payment of property tax refund applicable to prior years (1,150,649) Reclassification of construction in progress to expenses (7,502,620) Change from reporting Net other post employment benefits obligation at January 1, 2012 to December 31, 2012 (1,155,125) 282,822,829 Governmental activities (nonmajor) fund balance: 96,810,743 Payment of property tax refund applicable to prior years (1,150,649) 95,660,094 J. Loss on SalelLeaseback of Leighton Parking Garage During 2000, the City completed construction of the Leighton Parking Garage and capitalized the cost of the garage, $11,439,712, in the Parking Garage Fund, an enterprise fund. On December 1, 2000, the City sold the garage to the South Bend Transportation Company (TRANSPO) for $3,000,000 as part of a sale /leaseback agreement. The proceeds were receipted into the County Option Income Tax Fund. This fund is also making the future lease payments to TRANSPO. The present value of the lease, $1,960,044, was the new basis for the parking garage. As part of this sale /leaseback, the Parking Garage Fund recognized a deferred loss of $8,439,712, which is being amortized over the fifteen year life of the lease. K. Property Held for Resale The City's Redevelopment Commission has purchased properties in blighted areas for redevelop- ment and subsequent resale. At December 31, 2013, the market value of these properties was not known. These properties are recognized as assets in the funds that purchased the property. L. Service Concession Agreement On July 1, 2013, the City entered into a Service Concession Agreement ( "SCA ") with SMG, a civic center management company, with the purpose of obtaining high - quality professional man- agement of the Century Center. The initial term of the contract extends through June 30, 2016, and is renewable for 2 additional 3 year periods after that. SMG's compensation is a flat fee of $135,000 for the first year and is then adjusted by the CPI for each successive year. There are also additional financial incentives based on various operational goals. SMG is responsible for all operations and financial reporting. Additionally, SMG contributed a onetime capital infusion of $575,000, to be used for capital im- provement, that will be amortized over the life of the first three -year contract term. Both parties retain certain rights regarding operations and contract cessation. CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) IV. Other Information A. Risk Management The primary government is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors, and omissions; job related illnesses or injuries to employees; medical benefits to employees, retirees, and dependents; and natural disasters. The risks of torts; theft of, damage to, and destruction of assets; errors and omissions; and natu- ral disasters are covered by commercial insurance from independent third parties. Settled claims from these risks have not exceeded commercial insurance coverage for the past three years. There were no significant reductions in insurance by major category of risk. Liability Insurance The primary government has chosen to establish a risk financing fund for risks associated with job related illnesses or injuries to employees, automobile liability, and comprehensive liability. The risk financing fund is accounted for in the Liability Insurance Premium Reserve Fund, an in- ternal service fund, where assets are set aside for claim settlements. An excess policy through commercial insurance covers individual claims in excess of $300,000 per claim for job - related illnesses or injuries to employees (workers' compensation) and $100,000 per claim for damage to and destruction of assets (property damage). Two claims resulting from property damage ex- ceeded commercial insurance coverage in the past three years. The first claim occurred during 2012 and the gross claim was $215,286. In 2013, a second claim was incurred at a loss of $248,094. A premium is charged to each fund based on a study of paid claims and based on the number of employees and percent of the total budget. Provisions are also made for unexpected and unusual claims. Claim expenditures and liabilities of the fund are reported when it is probable that a loss has oc- curred and the amount of the loss can be reasonably estimated. These losses include an esti- mate of claims that have been incurred but not reported (IBNRs). Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of pay outs and other economic and social factors. The entire insurance liability balance is reported as a current liability as the City has the intent to pay within one year. Changes in the balance of claim liabilities during the past two years are as follows 2012 2013 Unpaid claims, beginning of fiscal year $ 2,255,972 $ 5,584,476 Incurred claims and changes in estimates 5,155,318 44,210 Claim payments (1,826,814) 2,837,552) Unpaid claims, end of fiscal year $ 5,584,476 $ 2,791,134 ELI' 0 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Group Health Insurance The primary government has chosen to establish a risk financing fund for risks associated with medical benefits of employees and their covered dependents. The risk financing fund is ac- counted for in the Self- Funded Employee Benefits Fund, an internal service fund, where assets are set aside for benefit costs. An excess policy through commercial insurance covers individual claims in excess of $300,000 per year. One claim resulting from this risk exceeded commercial insurance coverage in the past three years. The claim occurred during 2011 and the gross claim cost was $564,932. A premium is charged to each fund based on the number of employees and estimated costs exceeding the employees' contributions. Provisions are also made for unex- pected and unusual claims. Claim expenditures and liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. These losses include an esti- mate of claims that have been incurred but not reported (IBNRs). Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of pay outs and other economic and social factors. Changes in the balance of claim liabilities during the past two years are as follows: Unpaid claims, beginning of fiscal year Incurred claims and changes in estimates Claim payments Unpaid claims, end of fiscal year 2012 2013 $ 789,961 $ 970,077 12,192,449 13, 583, 715 (12,012,333) (13,346,518) $ 970,077 $ 1,207,274 The December 31, 2013 unpaid claims include $1,107,274 reported as current liabilities and expected to be paid within the current year. During 2005, the City's former employee medical benefits' administrator, Healthcare Resources Group (HRG), failed to pay $1,111,899 in health care claims for City employees. The City had paid HRG for the claims. HRG was purchased by another business that filed bankruptcy. Asset distribution, which amounted to approximately 19 percent, was made in August 2012, but erroneously paid to St. Joseph County. In May 2013, the County paid the asset distribution to the City. Subsequent Events On December 20, 2013, the City entered into a five -year Lease and Management Agreement with the Potawatomi Zoological Society (PZS) for the purpose of transferring day -to -day operations of the City's zoo, located at Potawatomi Park, to the Society. The Agreement became effective on January 1, 2014. A concurrent agreement also transferred some employees who heretofore had been employed by the City to PZS. The agreement stipulates an annual compensatory contribu- tion by the City to PZS for each year of the lease as follows: CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Years Contribution 2014 $ 900,000 2015 850,000 2016 800,000 2017 700,000 2018 700,000 There are credit provisions in place that will reimburse the City for a portion of these payments if annual zoo attendance attains certain levels. The payments will be made semiannually from the Parks and Recreation fund. On April 21, 2014, the City Controller filed with the South Bend Common Council a resolution to authorize the issuance of refunding bonds for the South Bend Redevelopment District to refund the District's Special Taxing District Bonds of 2002, with an outstanding principal amount of $3,405,000. The aggregate principal of the bonds is not to exceed $3,700,000 with maturity dates no later than 2022. It is anticipated that the refunding will result in significant savings for the South Bend Redevelopment Commission. The Redevelopment Commission approved the resolution on April 24, 2014, and the Common Council approved theirs on April 28, 2014. The bond sale is expected to take place in May 2014. C. Conduit Debt Obligation From time to time, the primary government has issued industrial revenue bonds to provide finan- cial assistance to private- sector entities for the acquisition and construction of industrial and com- mercial facilities deemed to be in the public interest. The bonds are secured by the property fi- nanced and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private- sector entity served by the bond issuance. Neither the primary government, the State, nor any political subdi- vision, thereof is obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2013, there were several series of industrial revenue bonds outstanding. The City has been unable to obtain the total outstanding principal amount for the outstanding bonds. During 2013, the City approved no new industrial revenue bonds. D. Other Post - Employment Benefits (OPEB) Plan Description The City of South Bend Retiree Healthcare Plan is a single - employer defined benefit healthcare plan administered by the City of South Bend, Department of Administration and Finance, through the City's self- insurance fund. The plan provides for medical insurance benefits to eligible re- tirees and their spouses. Indiana Code 5 -10 -8 gives the unit the authority to establish and amend the plan. The City issues a publicly available financial report that includes financial statements and required supplementary information for the plan. The report is available by contacting the City Controller's office: 227 West Jefferson Blvd. Rm. 1200N, South Bend, IN 46601, Ph. (574) 235- 9216. E:I CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Fundina Polic The contribution requirements of plan members for the City of South Bend Retiree Healthcare Plan are established and can be amended by the City's Common Council. The required contribu- tion is based on projected pay -as- you -go financing requirements. For the year ended December 31, 2013, the City contributed $702,134 to the plan for current premiums. Police and Fire mem- bers receiving benefits contributed approximately 30 percent of the total premiums, through their required contribution of $133 per month for retiree -only coverage and $395 for retiree and spouse coverage. General employee members receiving benefits contributed approximately 100 percent of the total premiums, through their required contribution of $346 per month for retiree -only cover- age and $912 for retiree and spouse coverage. Annual OPEB Cost and Net OPEB Obligation The City's annual Other Post - Employment Benefit (OPEB) cost (expense) is calculated based on the Annual Required Contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to the plan: Annual Required Contribution $ 2,570,663 Interest on net OPEB obligation 294,270 Adjustment to annual required contribution (401,460) Annual OPEB cost 2,463,473 Contributions made (702,134) Increase in net OPEB obligation 1,761,339 Net OPEB obligation - beginning of year 6,539,338 Net OPEB obligation - end of year $ 8,300,677 The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2013 and the two preceding years were as follows: Fiscal Annual Percentage of Net Year OPEB Annual OPEB OPEB Ended Cost Cost Contributed Obligation 12 -31 -11 $ 1,948,993 36.1% $ 5,384,213 12 -31 -12 1,928,572 40.1% 6,539,338 12 -31 -13 2,463,473 28.5% 8,300,677 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Funded Status and Funding Progress As of January 1, 2013, the most recent actuarial valuation date, the plan was 0 percent funded. The actuarial accrued liability for benefits was $21,493,998, and the actuarial value of assets was $0, resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $21,493,998. The covered payroll (annual payroll of active employees covered by the plan) was not available, and the ratio of the UAAL to covered payroll was not available. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts deter- mined regarding the funded status of the plan and the annual required contributions of the em- ployer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits pro- vided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used in- clude techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. In the January 1, 2013, actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions included a 4.5 percent investment rate of return (net of administrative expenses), which is a blended rate of the expected long -term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date, and an annual healthcare cost trend rate of 9.0 percent initially, reduced by decrements to an ultimate rate of 5.0 percent after 10 years. Both rates included a 3.0 percent inflation assumption. The UAAL is being amortized as a level dollar amount based on an open group. The remaining amortization period at December 31, 2013, was 22 years. E. Pension Plans 1. Agent Multiple - Employer and Single - Employer Defined Benefit Pension Plans a. Public Employees' Retirement Fund Plan Description The primary government contributes to the Indiana Public Employees' Retirement Fund (PERF), a defined benefit pension plan. PERF is an agent multiple - employer public em- ployee retirement system, which provides retirement benefits to plan members and beneficiaries. All full -time employees are eligible to participate in the defined benefit plan. CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) State statutes (IC 5 -10.2 and 5 -10.3) govern, through the Indiana Public Retirement System (INPRS) Board, most requirements of the system and give the primary govern- ment authority to contribute to the plan. The PERF retirement benefit consists of the pen- sion provided by employer contributions plus an annuity provided by the member's annuity savings account. The annuity savings account consists of member's contribu- tions, set by state statute at three percent of compensation, plus the interest credited to the member's account. The employer may elect to make the contributions on behalf of the member. INPRS administers the plan and issues a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole and for its participants. The report is available and may be obtained by contacting: Indiana Public Retirement System One North Capitol, Suite 001 Indianapolis, IN 46204 Ph. (888) 526 -1687 Funding Policy and Annual Pension Cost The contribution requirements of plan members for PERF are established by the Board of Trustees of INPRS. The primary government's annual pension cost and related infor- mation, as provided by the actuary, is presented in this note. Information to segregate the assets /liabilities and the actuarial study figures between the primary government and the Utilities is not available. Therefore, the Net Pension Obligation is considered a liability of the primary government and is presented in the gov- ernmental activities of the financial statements and is not presented as a liability of the proprietary funds. b. 1925 Police Officers' Pension Plan Plan Description The City contributes to the 1925 Police Officers' Pension Plan which is a single - employer defined benefit pension plan. The plan is administered by the local pension board as authorized by state statute (IC 36 -8 -6). The plan provides retirement, disability, and death benefits to plan members and beneficiaries. The plan was established by the plan administrator, as provided by state statute. The plan administrator does not issue a pub- licly available financial report that includes financial statements and required supple- mentary information of the plan. Funding Policy Plan members are required by state statute (IC 36- 8 -6-4) to contribute an amount equal to 6 percent of the salary of a first class patrolman. The contribution requirements of plan members are established by state statute. The primary government's annual pension cost and related information, as provided by the actuary, is presented in this note. The Net Pension Obligation (NPO) is considered an obligation of the City and is reflected in CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) the Statement of Net Position. The State of Indiana is required by Statute to reimburse the City for benefits paid and has contributed $5,863,697 during 2013 on behalf of the City. The City has recognized these on- behalf payments as intergovernmental revenue and public safety expenditures in the general fund. c. 1937 Firefighters' Pension Plan Plan Description The City contributes to the 1937 Firefighters' Pension Plan which is a single - employer defined benefit pension plan. The plan is administered by the local pension board as authorized by state statute (IC 36 -8 -7). The plan provides retirement, disability, and death benefits to plan members and beneficiaries. The plan was established by the plan administrator, as provided by state statute. The plan administrator does not issue a publicly available financial report that includes financial statements and required supple- mentary information of the plan. Funding Policy Plan members are required by state statute (1C 36- 8 -7 -8) to contribute an amount equal to 6 percent of the salary of a first class fireman. The contribution requirements of plan members are established by state statute. The primary government's annual pension cost and related information, as provided by the actuary, is presented in this note. The Net Pension Obligation (NPO) is considered an obligation of the City and is reflected in the Statement of Net Position. The State of Indiana is required by Statute to reimburse the City for benefits paid and has contributed $5,035,292 during 2013 on behalf of the City. The City has recognized these on behalf payments as intergovernmental revenue and public safety expenditures in the general fund. Actuarial Information for the Above Plans 1925 Police 1937 Officers' Firefighters' PERF Pension Pension Annual required contribution $ 2,758,541 $ 6,633,200 $ 5,550,900 Interest on net pension obligation 181,503 2,080,000 1,544,600 Adjustment to annual required contribution (211,272) (2,879,000) (2,137,900) Annual pension cost 2,728,772 5,834,200 4,957,600 Contributions made 2,457,505 5,868,322 5,036,457 Increase (decrease) in net pension obligation 271,267 (34,122) (78,857) Net pension obligation, beginning of year 2,688,937 34,667,265 25,743,816 Net pension obligation, end of year $ 2,960,204 $ 34,633,143 $ 25,664,959 CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Contribution rates: City Plan members Actuarial valuation date Actuarial cost method Amortization method Amortization period Amortization period (from date) Asset valuation method 1925 Police 1937 Officers' Firefighters' PERF Pension Pension 10.59% 3% 06 -30 -13 Entry age Level percentage of projected payroll, closed 30 years 07 -01 -97 4 -year smoothing of gains /losses on market value with a 20 % corridor 1,543% 6% 01 -01 -13 Entry age .Level percentage of projected payroll, closed 30 years 01 -01 -05 4 year phase in of unrealized and realized capital 1,738% 6 % 01 -01 -13 Entry age Level percentage of projected payroll, closed 30 years 01 -01 -05 4 year phase in of unrealized and realized capital Firefighter' Pension 6% 3.25% 3.25% 2.25% For financial reporting purposes the projection of benefits for these plans does not ex- plicitly incorporate the potential effects of the legal limit on employer contributions dis- closed. Three Year Trend Information PERF Annual Officers' Actuarial Assumptions PERF Pension Investment rate of return 6.75% 6% Projected future salary increases: Contributed Obligation Total 3.25% to ' 3.25% $ 1,979,499 4.5% 2,705,074 Cost -of- living adjustments 1 % .3.25% Cost -of- living adjustments (converted) 1 % 2.25% 1,738% 6 % 01 -01 -13 Entry age Level percentage of projected payroll, closed 30 years 01 -01 -05 4 year phase in of unrealized and realized capital Firefighter' Pension 6% 3.25% 3.25% 2.25% For financial reporting purposes the projection of benefits for these plans does not ex- plicitly incorporate the potential effects of the legal limit on employer contributions dis- closed. Three Year Trend Information PERF M Annual Percentage Net Pension Cost of APC Pension Year Ending (APC) Contributed Obligation 06 -30 -11 $ 2,543,982 63% $ 1,979,499 06 -30 -12 2,705,074 74% 2,688,937 06 -30 -13 2,728,772 90% 2,960,204 M CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Membership in the 1925 Police Officers' Pension Plan and the 1937 Firefighters' Pension Plan at January 1, 2013, was comprised of the following: 1925 Police 1937 Officers' Firefighters' Pension Pension Retirees and beneficiaries currently receiving benefits 223 190 Terminated employees entitled to but not yet receiving benefits - - Current active employees 3 6 Funded Status and Funding Progress for the Above Plans The funded status of each plan as of July 1, 2013, the most recent actuarial valuation date (except 1925 Police Officers' and 1937 Firefighters' pension funds which is as of January 1, 2013) is as follows: 1925 Police Officers' Pension Actuarial Annual Percentage Net Actuarial Pension Cost of APC Pension Year Ending (APC) Contributed Obligation Liability (AAL) Unfunded 12 -31 -11 $ 6,726,600 96% $ 35,171,707 12 -31 -12 6,237,800 108% 34,667,265 12 -31 -13 5,834,200 101% 34,633,143 54.6% 1937 Firefighters' Pension Plan _ 2,310,522 Annual Percentage Net 1937 Firefighters' Pension Cost of APC Pension Year Ending (APC) Contributed Obligation 12 -31 -11 $ 5,971,600 93% $ 25,739,227 12 -31 -12 5,239,700 100% 25,743,816 12 -31 -13 4,957,600 102% 25,664,959 Membership in the 1925 Police Officers' Pension Plan and the 1937 Firefighters' Pension Plan at January 1, 2013, was comprised of the following: 1925 Police 1937 Officers' Firefighters' Pension Pension Retirees and beneficiaries currently receiving benefits 223 190 Terminated employees entitled to but not yet receiving benefits - - Current active employees 3 6 Funded Status and Funding Progress for the Above Plans The funded status of each plan as of July 1, 2013, the most recent actuarial valuation date (except 1925 Police Officers' and 1937 Firefighters' pension funds which is as of January 1, 2013) is as follows: Unfunded Actuarial Annual Percentage Covered Actuarial Actuarial Accrued $ 26,036,363 (71)% 430,000 Valuation Value of Liability (AAL) Unfunded Fundec Retirement Plan Date Plan Assets Entry Age AAL Ratio PERF 06 -30 -13 $ 22,259,873 $ 40,791,780 $ (18,531,907) 54.6% 1925 Police Officers' 01 -01 -13 2,310,522 78,787,400 (76,476,878) 2.9% 1937 Firefighters' 01 -01 -13 1,348,330 66,057,700 (64,709,370) 2.0% Unfunded AAL as a Annual Percentage Covered of Covered Payroll Payroll $ 26,036,363 (71)% 430,000 (17,785)% 319,300 (20,266)% CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) The Schedule of Funding Progress, presented as RSI for the above plans following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actu- arial accrued liability for benefits. d. Financial Statements for Defined Benefit Plans Statements of Fiduciary Net Position Assets Cash and cash equivalents I nvestments Receivables: Interest Total assets Liabilities Accounts payable Accrued payroll payable Total liabilities Net Position Net Position held in trust for pension benefit obligations 91 1925 Police 1937 Officers' Firefighters' Pension Pension $ 435,434 $ 239,066 1,270,283 697,421 1,845 1,018 1,707,562 937,505 12,000 620 12,620 1 7()7 RA9 I.t 09A PAR CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Statements of Changes in Fiduciary Net Position Additions: Contributions: On behalf Plan members Other Total contributions Investment income: Interest Total additions Deductions: Benefits and refunds paid to plan members and beneficiaries Administrative expenses Total deductions Changes in net position Net position - beginning Net position - ending 1925 Police 1937 Officers' Firefighters' Pension Pension $ 5,863,697 $ 5,035,292 881 - 4,854 - 5,869,432 5,035,292 2,355 1,164 5,871,787 5,036,456 6,463,447 5,458,690 11,300 1,212 6,474,747 5,459,902 (602,960) (423,446) 2,310,522 1,348,331 $ 1,707,562 $ 924,885 2. Cost - Sharing Multiple - Employer Defined Benefit Pension Plan 1977 Police Officers' and Firefighters' Pension and Disability Fund Plan Description The primary government contributes to the 1977 Police Officers' and Firefighters' Pension and Disability Fund, a cost - sharing multiple - employer defined benefit pension plan admin- istered by the Indiana Public Employees' Retirement Plan (PERF) for all police officers and firefighters hired after April 30, 1977. a CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) State statute (IC 36 -8 -8 and IC 36- 8 -8.5) regulates the operations of the system, including benefits, vesting and requirements for contributions by employers and by employees. Covered employees may retire at age 52 with 20 years of service. An employee with 20 years of service may leave service, but will not receive benefits until reaching age 52. The plan also provides for death and disability benefits. PERF issues a publicly available financial report that includes financial statements and re- quired supplementary information for the plan as a whole and for its participants. That report may be obtained by contacting: Indiana Public Retirement System One North Capitol, Suite 001 Indianapolis, IN 46201 Phone (888) 526 -1687 Funding Policy and Annual Pension Costs Plan members are required to contribute 6 percent of the first -class police officers' and fire- fighters' salary and the primary government is to contribute at an actuarially determined rate. The current rate, which has not changed since the inception of the plan, is 19.5 percent of the first -class police officers' and firefighters' salary. The contribution requirements of plan mem- bers and the primary government are established by the Board of Trustees of PERF. The pri- mary government's contributions to the plan for the years ending December 31, 2013, 2012, and 2011 were $4,189,100, $4,294,453 and $4,187,175, respectively, equal to the required contributions for each year. 93 W. M CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF FUNDING PROGRESS Public Employees' Retirement Fund Unfunded Actuarial AAL as a Actuarial Accrued Percentage Actuarial Value of Liability Unfunded Funded Covered of Covered Valuation Assets (AAL) AAL Ratio Payroll Payroll Date (a) (b) (a -b) (a/b) (c) ((a -b) /c) 07 -01 -11 $ 23,111,685 $ 40,495,255 $ (17,383,570) 57% $ 25,613,579 (68 %) 07 -01 -12 19,348,101 40,445,286 (21,097,185) 48% 25,533,046 (83°/x) 07 -01 -13 22,259,873 40,791,780 (18,531,907) 55% 26,036,363 (71 %) 1925 Police Officers' Pension Plan Unfunded Actuarial AAL as a Actuarial Accrued Percentage Actuarial Value of Liability Unfunded Funded Covered of Covered Valuation Assets (AAL) AAL Ratio Payroll Payroll Date (a) (b) (a -b) (a /b) (c) ((a -b) /c) 01 -01 -08 $ 3,522,332 $ 85,203,100 $ (81,680,768) 4.13% $ 652,500 (12,518 %) 01 -01 -09 2,549,705 80,233,300 (77,683,595) 3.18% 611,000 (12,714 %) 01 -01 -10 2,809,527 86,097,800 (83,288,273) 3.26% 569,500 " (14,625 %) 01 -01 -11 2,367,050 89,947,300 (87,580,250) 2.63% 542,900 (16,132 %) 01 -01 -12 2,166,759 84,884,700 (82,717,941) 2.55% 421,800 (19,611 %) 01 -01 -13 2,310,522 78,787,400 (76,476,878) 2.93% 430,000 (17,785°/x) 1937 Firefighters' Pension Plan Unfunded Actuarial AAL as a Actuarial Accrued Percentage Actuarial Value of Liability Unfunded Funded Covered of Covered Valuation Assets (AAL) AAL Ratio Payroll Payroll Date (a) (b) (a -b) (a /b) (c) ((a -b) /c) 01 -01 -07 $ 1,624,421 $ 66,072,400 $ (64,447,979) 2.46% $ 1,338,200 (4,816 %) 01 -01 -08 2,968,691 58,489,000 (55,520,309) 5.08% 519,400 (10,689 %) 01 -01 -09 2,265,165 70,369,900 (68,084,735) 3.25% 474,450 (14,350°/x) D1 -01 -10 2,162,207 74,950,900 (72,788,693) 2.88% 429,500 (16,947 %) 01 -01 -11 1,815,026 79,076,500 (77,261,474) 2.30% 397,100 (19,456 %) 01 -01 -12 1,718,166 70,308,800 (68,590,634) 2.44% 365,500 (18,766°/x) 01 -01 -13 1,348,330 66,057,700 (64,709,370) 2.04% 319,300 (20,266 %) Other Postemployment Benefits Unfunded Actuarial AAL as a Actuarial Accrued Percentage Actuarial Value of Liability Unfunded Funded Covered of Covered Valuation Assets (AAL) AAL Ratio Payroll Payroll Date (a) (b) (a -b) (a /b) (c) ((a -b) /c) 01 -01 -11 $ - $ 17,641,023 $ (17,641,023) 0.00% n/a n/a 01 -01 -12 - 18,649,906 (18,649,906) 0.00% n/a n/a 01 -01 -13 - 21,493,998 (21,493,998) 0.00% n/a n/a n/a - Not applicable co C37 CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES 1925 Police Officers' Pension Plan Annual Required Percentage Year Contribution of ARC Ending (ARC) Contributed 12 -31 -08 $ 6,421,500 79% 12 -31 -09 5,995,700 106% 12 -31 -10 6,673,100 87% 12 -31 -11 7,317,800 69% 12 -31 -12 6,986,200 97% 12 -31 -13 6,633,200 88% 1937 Firefighters' Pension Plan Annual Required Percentage Year Contribution of ARC Ending (ARC) Contributed 12 -31 -08 $ 4,436,200 106% 12 -31-09 5,258,600 103% 12 -31 -10 5,611,400 89% 12 -31 -11 6,399,700 86% 12 -31 -12 5,787,300 9D% 12 -31 -13 5,550,900 91% CD CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES - GENERAL FUND AND MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2013 Revenues: Taxes: Property Licenses and permits Intergovernmental Charges for services Fines and forfeits Other Total revenues Expenditures: Current: General Government: Mayor Personnel services Supplies Other services and charges Mayor -311 Call Center Personnel services Supplies Other services and charges Capital outlay City Clerk Personnel services Supplies Other services and charges Capital outlay Common Council Personnel services Supplies Other services and charges Capital outlay Other uses General Fund $ ' 39,000,000 $ 39,000,000 $ 36,251,397 $ (2,748,603) 872,375 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts _ (Negative) $ ' 39,000,000 $ 39,000,000 $ 36,251,397 $ (2,748,603) 872,375 872,375 919,293 46,918 8,348,731 8,011,557 8,532,351 520,794 3,434,263 3,434,263 3,415,823 (18,440) 25,920 25,920 34,307 8,387 4,486,415 4,486,415 4,674,394 187,979 56,167,704 55,830,530 53,827,565 _ (2,002,965) 522,002 530,849 509,868 20,981 32,200 54,067 52,362 1,705 48,469 109,313 79,262 30,051 269,102 269,102 256,411 12,691 2,500 18,900 10,076 8,824 ' 26,500 32,100 11,224 20,876 20,000 280,655 280,655 269,202 11,453 7,988 21,488 15,327 6,161 60,338 62,936 42,165 20,771 13,400 91 91 289,758 289,758 189,822 99,936 11,512 17,802 13,983 3,819 181,736 181,736 145,116 36,620 24,000 23,999 - 23,999 2,102 2,102 - 2,102 (Continued on next page) 9 CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES - GENERAL FUND AND MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) General Fund Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original _ Final Amounts (Negative) Expenditures (continued): Current (continued): General Govemment(continued): Administration /Finance Personnel services 1,606,388 1,535,638 1,493,377 42,261 Supplies 49,000 50,301 41,741 8,560 Other services and charges 168,683 291,789 278,143 13,646 City Attorney Personnel services 959,774 949,774 819,999 129,775 Supplies 8,684 21,700 21,510 190 Other services and charges 53,992 56,992 54,280 2,712 Human Rights Personnel services 256,834 256,834 241,726 15,108 Supplies 3,861 3,861 3,710 151 Other services and charges 82,542 82,542 68,619 13,923 Capital outlay 3,000 3,000 - 3,000 Energy Office Other services and charges - 54,256 54,256 - Neighborhood Code Enforcement Personnel services 929,883 983,883 920,598 63,285 Supplies 74,666 89,607 85,818 3,789 Other services and charges 967,329 987,329 865,890 121,439 Other uses 52,000 52,000 52,000 - Capital outlay 158,000 158,000 71,482 86,518 Code Hearing Officer Supplies - 4 4 - Other services and charges 40,000 40,395 38,973 1,422 Total General Government 7,208,918 7,512,803 6,706,944 805,859 Public Safety: Police Department Personnel services 20,376,883 19,569,883 19,287,913 281,970 Supplies 369,052 927,988 857,860 70,108 Other services and charges 2,621,877 3,319,109 2;916,947 402,162 Capital outlay 280,000 228,396 159,181 69,215 (Continued on next page) 10 CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES - GENERAL FUND AND MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) General Fund Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Expenditures (continued): Current (continued): Public Safety (continued): Police - PS LOIT Funded Personnel services 3,968,567 3,893,567 3,758,871 134,696 Communication Center Personnel services 2,127,777 2,123,012 2,036,925 86,087 Supplies 4,029 4,029 1,868 2,161 Other services and charges 24,519 24,519 22,420 2,099 Fire Department Personnel services 18,539,016 18,550,680 18,390,072 160,608 Supplies 381,726 398,387 387,719 10,668 Other services and charges 1,589,653 1,660,128 1,444,032 216,096 Other uses 8,088 - - Fire - PS LOIT Funded Personnel services 3,133,190 3,131,690 3,098,215 33,475 Junk Vehicle Personnel services 54,065 53,666 23,695 29,971 Supplies 1,082 1,232 833 399 Other services and charges 10,682 10,682 7,876 2,806 Animal Control Personnel services 436,947 423,607 397;129 26,476 Supplies 60,552 66,364 59,442 6,922 Other services and charges 91,339 106,140 96,431 9,709 Total Public Safety 54,079,044 54,493,079 52,947,449 1,545,630 Highways and Streets: Engineering Personnel services 637,072 633,572 613,116 20,456 Supplies 16,394 22,124 19,401 2,723 Other services and charges 701,652 737,865 677,876 59,989 Street Department Supplies - 110,148 108,173 1,975 Other services and charges 1,667 1,363 304 Total Highways and Streets 1,355,118 1,505,376 1,419,929 85,447 (Continued on next page) CD CD CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES - GENERAL FUND AND MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2013 (Continued) Economic Development General Fund Unsafe Building Variance Other services and charges 107,684 Actual With Final 27,632 Total Economic Development 107,684 Budgetary Budget 27,632 Budgeted Amounts Basis Positive 62,469,125 Original Final Amounts (Negative) Expenditures (continued): Transfers in 8,101,757 8,101,757 Current (continued): (244,671) Net change in fund balances 46,283 (1,159,265) Culture and Recreation: 374,811 Fund balances - beginning 28,205,848 28,205,848 Palais Royale Ballroom Fundbalances - ending $ 28,252,131 $ 27,046,563 L_27,421.374 Personnel services 226,174 226,174 205,555 20,619 Supplies 14,700 21,130 10,363 10,767 Other services and charges 195,924 245,526 206,340 39,186 Capital outlay 30,400 - - - Morris Performing Arts Center Personnel services 652,134 652,134 632,829 19,305 Supplies 28,550 30,346 23,433 6,913 Other services and charges 324,532 351,320 290,231 61,089 Total Culture and Recreation 1,472,414 1,526,630 1,368,751 157,879 Economic Development Unsafe Building Other services and charges 107,684 53,684 26,052 27,632 Total Economic Development 107,684 53,684 26,052 27,632 Total expenditures 64,223,178 65,091,572 62,469,125 2,622,447 Other financing sources (uses): Transfers in 8,101,757 8,101,757 7,857,086 (244,671) Net change in fund balances 46,283 (1,159,265) (784,474) 374,811 Fund balances - beginning 28,205,848 28,205,848 28,205,848 Fundbalances - ending $ 28,252,131 $ 27,046,563 L_27,421.374 $ 374,811 (Continued on next page) O O CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES - GENERAL FUND AND MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2013 (Continued) Revenues: Taxes: Property Intergovernmental Charges for services Fines and forfeits Other Total revenues Expenditures: Current: Culture and recreation: Personnel services Supplies Other services and charges Capital outlay Total expenditures Other financing sources (uses): Transfers out Net change in fund balances Fund balances - beginning Fund balances - ending Park and Recreation Fund Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 7,800,000 $ 7,800,000 $ 7,207,060 $ (592,940) 1,292,887 1,229,090 1,315,849 86,759 3,146,140 3,146,140 3,083,133 (63,007) 1,000 1,000 5,160 4,160 186,099 186,099 157,003 (29,096) 12,426,126 12,362,329 11,768,205 (594,124) 7,991,934 7,836,634 7,609,507 227,127 1,493,191 1,909,353 1,829,410 79,943 2,341,267 2,689,081 2,611,986 77,095 753,885 351,895 348,562 3,333 12,580,277 12,786,963 12,399,465 387,498 (190,500) (230,500) (209,824) 20,676 (344,651) (655,134) (841,084) (185,950) 4,885,352 4,885,352 4,885,352 $ 4,540,701 $ 4,230,218 $ 4,044,268 $ (185,950) (Continued on next page) CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES - GENERAL FUND AND MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) Public Safety LOIT Fund Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes: ,4 County option income tax $ 6,056,334 $ 5,892,386 $ 5,892,386 $ - p Other 8,000 8,000 6,954 (1,046) Total revenues 6,064,334 5,900,386 5,899,339 (1,046) Other financing sources (uses): Transfers in - - 683,303 683,303 Transfers out (7,101,757) ,101,757 (7,540,389) (438,632) Total other financing sources (uses) (7,101,757} (7,101,757} (6,657,086) 244,671 Net change in fund balances (1,037,423) (1,201,371) (957,746) 243,625 Fund balances - beginning 2,989,940 2,989,940 2,989,940 - Fund balances - ending $ 1,952,517 L 1,788,569 L 2,D32,194 $ 243,625 (Continued on next page) CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES - GENERAL FUND AND MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) COIT Fund Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes: County option income $ 7,691,991 $ 7,846,940 $ 7,846,939 $ (1) Other 885,932 928,832 662,117 (266,715) Total revenues 8,577,923 _ 8,775,772 8,509,056 (266;716) Expenditures: N Current: General government: Supplies 1,138,808 1,476,918 1,229,333 247,585 Other services and charges 5,970,478 7,086,055 6,895,285 190,770 Capital outlay 791,755 678,562 349,186 329,376 Other uses Total expenditures 7;901,041 _ 9,241,535 8,473,805 767,730 Other financing sources (uses): Transfers out (676,882) (676,882) (676,882) Net change in fund balances - (1,142,645) (641,631) 501,014 Fund balances - beginning 15,327,002 15,327,002 15,327,002 Fund balances- ending $ 15,327,002 $ 14,184,357 $ 14,685,372 $ 501,014 (Continued on next page) O W CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES - GENERAL FUND AND MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2013 (Continued) Revenues: Taxes: County economic development income tax Other Total revenues Expenditures: General government: Other services and charges Capital outlay . Other uses Total expenditures Other financing sources (uses): Transfers out Net change in fund balances Fund balances - beginning Fund balances - ending EDIT Fund Vadance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 8,324,626 $ 8,177,352 $ 8,177,352 $ 554,660 554,660 607,726 53,066 8,879,286 6,732,012 8,785,078 53,066 4,213,119 4,571,389 4,266,813 304,576 - 4,471 - 4,471 4,213,119 4,575,860 4,266,813 309,047 (4,417,519) (4,417,519) (4,417,519) - 248,648 (261,367) 100,746 362,113 9,984,411 9,984,411 9,964,411 $ 10,233,059 $ 9,723,044 $ 10,085,157 $ 362,113 j 0 CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION BUDGET /GAAP RECONCILIATION GENERAL FUND AND MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2013 The major differences between budgetary (Non -GAAP) basis and GAAP basis are: a. Revenues are recorded when received in cash (budgetary) as opposed to susceptible to accrual (GAAP). b. Expenditures are recorded when paid in cash (budgetary) as opposed to when the liability is incurred (GAAP). c. Encumbrances are recorded as expenditures for budgetary purposes when purchase orders are issued. Adjustments necessary to convert the results of operations at the end of the year on a budgetary basis to a GAAP basis are as follows: Park and Public Safety General Recreation LOIT COIT EDIT Net change in fund balances (budgetary basis) $ (784,474) $ (841,084) $ (957,746) $ (641,631) $ 100,746 Adjustments: To adjust revenues for accruals (1,471,787) (122,661) (3,900) (4,389) (2,852,909) To adjust expenditures for accruals 303,993 119,056 (235,645) (559,280) 2,788,087 To adjust expenditures for encumbrances 826,098 216,349 220,263 756,971 Net change in fund balances (GAAP basis) $ (1,126,1701 $ (628,340) $ (1,197,291) $ (985,037) $ 792,895 CITY OF SOUTH BEND NOTE TO REQUIRED SUPPLEMENTARY INFORMATION Note I. Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data reflected in the budgetary comparison schedules: A. After conferring with the Common Council President and several department heads, the City Controller submits to the Common Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. B. Prior to adoption, the City advertises the budget and the Common Council holds public hear- ings to obtain taxpayer comments. The Common Council may reduce, but not increase the budget from the advertised amounts. C. No later than November 1 of each year, the budget for the next year is approved by the Common Council through the passage of an ordinance. D. Copies of the budget ordinance and advertisements for funds for which property taxes are levied or highway use taxes are received are sent to the Indiana Department of Local Government Finance for their review and approval. The budget becomes legally enacted after the City Controller receives approval from the Indiana Department of Local Government Finance. This approval is required by Indiana Statute and ad valorem property tax rates are to be set by February 15 of the year budgeted. The budget ordinance as approved by the Indiana Department of Local Government Finance becomes the City's expenditures budget. The City's maximum tax levy is restricted by Indiana Law, with certain adjustments and exceptions. If the advertised budget, for funds for which property taxes are levied or for which highway use taxes are received, exceeds the spending and tax limits of the state control laws, an excess levy can be granted by the Indiana Department of Local Government Finance, upon appeal by the City. E. The legal level of budgetary control (the level at which expenditures may not exceed appro- priations without the governing body's approval) is by object classification for all funds except for the General fund, which is by object classification within each department. The City's management cannot transfer budgeted appropriations between object classifications of a bud- get without approval of the Common Council. Any revisions that alter the total appropriations for any fund or any department of the General fund must be approved by the Common Council and, in some instances, by the Indiana Department of Local Government Finance. Formal budgetary integration is required by state statute and is employed as a management control method. Formal budgetary integration is required by State statute and is employed as a manage- ment control device. An annual budget was legally adopted for the following funds: Major funds: General fund Special revenue funds - park and recreation, public safety local option income tax (LOIT), county option income tax (COIT), economic development income tax (EDIT) Capital projects fund - TIF Airport 105 CITY OF SOUTH BEND NOTE TO REQUIRED SUPPLEMENTARY INFORMATION (Continued) Nonmajor governmental funds: Special revenue funds - motor vehicle highway, recreation non - reverting, Studebaker Oliver revitalization grants, economic development State grants, DCI operating, com- munity investment grants, police state seizure, juvenile positive assistance, law enforce- ment continuing education, loss recovery, local road and street, excess welfare distribu- tion, human rights - federal, East Race waterway, Morris and Palais marketing, police block grants, economic development commission, hazmat, Indiana river rescue, COPS block grant II, regional police academy, COPS MORE grant, federal drug enforcement, gift, urban development action grant, leaf collection and removal, police K -9 unit, rainy day Debt service fund - College Football Hall of Fame debt service, redevelopment bond - airport taxable, Coveleski bond debt service reserve, redevelopment bond - Palais Royale Capital projects funds - emergency medical services, professional sports development, Coveleski stadium capital, zoo endowment, park non - reverting capital, cumulative capital development, cumulative capital improvement, Morris Performing Arts Center capital, TIF downtown, TIF Leighton Plaza, TIF - West Washington, redevelopment general, com- munity revitalization enhancement district, TIF No. 1 - southside development, TIF No. 3 - southside development, TIF - central medical service area, Football Hall of Fame capital, Major Moves, TIF - northeast development, TIF Douglas road, TIF northeast residential, certified technology park, Palais Royale historic preservation, airport urban enterprise zone G. The City's budgetary process is based upon cash outflows, which is a Non -GAAP basis. Appropriations lapse with the expiration of the budgetary period unless encumbered by a purchase order or contract. Encumbered appropriations are carried over and added to the subsequent year's budget. H. Budgeted amounts are as originally adopted, or as amended by the Common Council and approved by the Indiana Department of Local Government Finance in the regular legal manner. The net effect of individual amendments to the budget increased the original appro- priations by $24,097,397 in 2013. I. Expenditures did not exceed appropriations for any funds or any departments within the General fund which required legally approved budgets. 106 r� UI U TH 85$ III Government Funds 107 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Motor Vehicle Highway - To account for street construction and the operations of the street main- tenance department. Financing is provided by state motor vehicle high- way distributions. Recreation Non - Reverting - To account for fees and related expenses from park department activ- ities. Studebaker /Oliver Revitalization Grants - To account for expenditures related to the Studebaker and Oliver revitali- zation projects. Financing is provided by federal and state grants and loans from other organizations. Economic Development State Grants - To account for expenditures related to projects promoting economic development. Financing is provided by state grants and loan payments. Expenditures include grants and related expenses. DCI Operating - To account for the operating expenditures related to the South Bend Department of Community Investment. Financing will be provided by revenues received from charges for services, other revenue sources, and from fund transfers. Community Investment Grants - To account for revenues received from the U.S. Department of Housing and Urban Development related to community improvement projects. Police State Seizure - To account for law enforcement expenditures financed by the authorized state or local agencies' sale of confiscated property. Juvenile Positive Assistance - To account for monies received from penalties paid for curfew violations. Expenditures include Drug Abuse Resistance Education and Juvenile Aid Bureau. Law Enforcement Continuing Education - To account for police fees collected to finance police officers' continuing education, training, and supplies and equipment. Loss Recovery- To account for compensatory or exemplary damage payments from third parties arising from loss or damage to City tangible or intangible prop- erty. Emergency Telephone System - To account for 9 -1 -1 revenues from the county as well as state grants Local Road and Street - To account for operation and maintenance of local and arterial road and street systems. Financing is provided by state gasoline tax distributions. 108 NONMAJOR GOVERNMENTAL FUNDS (Continued) Excess Welfare Distribution - To account for a special distribution from the County that can only be spent on public safety expenditures. Human Rights - Federal - To account for expenditures to prevent discrimination and to promote human rights. Financing is provided by federal grants. East Race Waterway - To account for donations for the promotion and development of the East Race Waterway. Morris and Palais Marketing - To account for marketing and promotion expenditures financed by spon- sorship solicitations and donations. Police Block Grants - To account for federal grants which provide financing for police activities. Economic Development Commission - To account for administrative expenditures of the Economic Develop- ment Commission. Financing is provided by fees from businesses apply- ing for Economic Development Revenue Bonds. Hazmat - To account for monies generated by the South Bend Fire Department's response to hazardous materials incidents. Funds are used to purchase, repair, or replace haz -mat equipment, or for training and supplies. Indiana River Rescue - To account for expenditures related to river rescue training. Financing is provided by registration fees. COPS Block Grant II - To account for federal grants which provide financing for police activities. Regional Police Academy - To account for revenues (tuition) and expenditures (seminars, travel, lectures, and career days) related to the advancement of present and future police officers. COPS MORE Grant - To account for a COPS MORE grant which provides financing for police activities. Federal Drug Enforcement - To account for expenditures for drug enforcement. Financing is provided by distributions from the authorized federal agencies' confiscated prop- erty sale. Gift - To account for donations, gifts, or bequeaths for purposes designated by the donor. Urban Development Action Grant - To account for economic development expenditures which are financed by federal grants and loan repayments. 109 NONMAJOR GOVERNMENTAL FUNDS (Continued) Leaf Collection and Removal - To account for the expenditures of a program to remove leaves from the City each fall. Financing is provided by a monthly service The charged to all City residents. Police K -9 Unit - To account for donations for development and maintenance of the K -9 unit. Rainy Day - To account for unused and unencumbered funds that are transferred from a fund that has a tax levy. Revenues in this fund also include special distributions of county option income tax (COIT) and county eco- nomic development income tax (CEDIT). Industrial Revolving - To account for the revenue and expenditures of providing special loans to qualifying local firms. Financing was originally provided by a $5,000,000 Economic Adjustment Assistance Grant from the U.S. Department of Commerce. Debt Service Funds College Football Hall of Fame Debt Service - To accumulate monies for the payment of Redevelopment Authority bonds issued to refinance bonds issued for construction of the College Football Hall of Fame. Financing is to be provided by an annual property tax levy. Redevelopment Bond - Airport Taxable - To accumulate monies as a reserve for the payment of Redevelopment Authority bonds for the airport taxable project. Coveleski Bond Debt Service Reserve - To accumulate monies as a reserve for the payment of the Coveleski Stadium recovery zone economic development bonds. Financing for debt payments is to be provided by professional sports and convention development area taxes ( PSCDA) and county option income tax revenues if PSCDA revenues are insufficient. Redevelopment Bond - Palais Royale To accumulate monies as a reserve for the payment of Redevelopment Authority bonds for the Palais Royale project. Redevelopment Authority Debt Service - To accumulate monies for the payment of Redevelopment Authority bonds issued to refinance bonds issued for construction of a parking gar - age facility, bonds issued for central development area land acquisition and construction of public improvements, bonds issued to purchase the Palais Royale, bonds issued to refinance bonds issued for construction of Century Center improvements, and bonds issued to refinance bonds issued for renovations to the Morris Performing Art Center. 110 NONMAJOR GOVERNMENTAL FUNDS (Continued) South Bend Building Corporation Debt Service - To account for debt retirement of the Building Corporation's Mortgage Bonds. Funding is provided by transfers from other City funds. TIF Erskine Village Debt Service - To account for Erskine Village project debt retirement of the south side tax incremental financing (TIF) district. Financing is provided by trans- fers from the TIF South Side Development fund. Capital Projects Funds Emergency Medical Services - To account for purchases of necessary equipment for the Fire Depart- ment and Emergency Medical Services Department. Financing is pro- vided by ambulance fees. Professional Sports Development - To account for Hotel /Motel Tax and Professional Sports Development Tax revenues dedicated towards the College Football Hall of Fame. Based on an agreement with the National Football Foundation (NFF), the City pays the NFF to assist with the operation and capital costs. Coveleski Stadium Capital - To account for expenditures related to the maintenance and improve- ment of the baseball stadium. Financing is provided by a rental paid by the semi -pro baseball team. Zoo Endowment - To account for construction projects at the City's zoo. Financing is provided by gifts and donations. Park Non - Reverting Capital - To account for specific revenues used to finance capital improvements at the City parks. Cumulative Capital Development - To account for expenditures relating to the purchase or lease of capital improvements in the City. Financing is provided by a specific property tax levy. Cumulative Capital Improvement - To account for state cigarette tax distributions used for improvement projects. Morris Performing Art Center Capital - To accumulate monies for major repairs and capital improvements to the Morris Civic Auditorium. Financing is provided by a surcharge on ticket sales for events held at the auditorium. 111 NONMAJOR GOVERNMENTAL FUNDS (Continued) Tax Incremental Financing (TIF) - Downtown - To account for expenditures for public improvements in the central busi- ness tax incremental district. Also, transfers are made to debt service funds to meet debt obligations as they mature. Financing is provided by property tax proceeds in excess of those attributable to the assessed valuation of the property in the district before redevelopment. Tax Incremental Financing (TIF) - Leighton Plaza - To account for expenditures for public improvement projects in the Leighton Plaza tax incremental district. Financing is provided by prop- erty tax proceeds in excess of those attributable to the assessed value of the property in the district before redevelopment. Tax Incremental Financing (TIF) - West Washington - To account for expenditures for public improvement projects in the West Washington Economic Development Area. Financing is provided by property tax proceeds in excess of those attributable to the assessed value of the property in the district before redevelopment. Redevelopment General - To account for eligible redevelopment activities in the Studebaker Cor- ridor financed by proceeds from land sales or leases. Community Revitalization Enhancement District - To account for public improvements in the Studebaker /Oliver Community Revitalization Enhancement District. Financing is provided by income tax and gross retail tax increments in the district. Tax Incremental Financing (TIF) No. 1 - Southside Development - To account for expenditures for improvements in the Southside Develop- ment Tax incremental district no. 1. Financing is provided by property tax proceeds in excess of those attributable to the assessed valuation of the property in the district before redevelopment. Tax Incremental Financing (TIF) No. 3 - Southside Development - To account for expenditures for improvements in the Southside Develop- ment Tax incremental district no. 3. Financing is provided by property tax proceeds in excess of those attributable to the assessed valuation of the property in the district before redevelopment. Tax Incremental Financing (TIF) - Central Medical Service Area - To account for expenditures for public improvements in the central business tax incremental district, medical service area. Financing is provided by property tax proceeds in excess of those attributable to the assessed valuation of the property in the district before redevelopment. 112 NONMAJOR GOVERNMENTAL FUNDS (Continued) Football Hall of Fame Capital - To account for capital expenditures for the College Football Hall of Fame. Financing was provided by a transfer from the City's Professional Sports Development fund. This fund also accounts for the advance from the General fund which may be repaid from future operating surpluses. Major Moves - To account for state distributions used for road construction and other uses authorized by Indiana statute. Tax Incremental Financing (TIF) - Northeast Development - To account for expenditures for improvements in the northeast develop- ment tax incremental district. Financing is provided by property tax pro- ceeds in excess of those attributable to the assessed valuation of the property in the district before redevelopment. Tax Incremental Financing (TIF) - Douglas Road - To account for expenditures for improvements in the Douglas Road development tax incremental district. Financing is provided by property tax proceeds in excess of those attributable to the assessed valuation of the property in the district before redevelopment. Tax Incremental Financing (TIF) - Northeast Residential - To account for expenditures for improvements in the Northeast Neighborhood Residential development tax incremental district. Financing is provided by property tax proceeds in excess of those attri- butable to the assessed valuation of the property in the district before re- development Certified Technology Park - To account for expenditures related to acquisition, improvements, con- struction and maintenance of public facilities, debt service and other per- mitted uses under Indiana Code 36- 7 -32 -23 in connection with a certified technology park. Financing is provided by property tax proceeds, state gross retail and uses taxes, and other revenues. Palais Royale Historic Preservation - To account for expenditures financed by a 2 percent fee charged for all Palais Royale services. Airport Urban Enterprise Zone - To account expenditures for improvements in the Zone area, financed by property taxes on qualifying properties in the Zone. Equipment Leasing - To account for proceeds from capital lease- purchase agreements used to finance major equipment needs of the City. 113 CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued on next page) Special Revenue Studebaker Motor Oliver Economic Community Vehicle Recreation Revitalization Development DCI Investment Highway Nonreverting Grants State Grants Operating Grants Assets Cash and cash equivalents $ 937,790 $ 198,328 $ 276,090 $ 88,927 $ 231,221 $ 150,397 Cash with fiscal agent - Investments 2,735,795 578,581 805,433 259,424 674,534 438,750 Receivables (net of allowances for uncollectibles): Interest 3,959 834 1,161 388 975 704 Taxes - - " Accounts 5,232 6,972 - 3,050 105,009 Intergovernmental 366,597 - - - - Loans - - - 482,021 - 340,477 Interfund receivable: Interfund services provided and used - 1,487 - - - Advances to other funds - - 500,000 - - - Property held for sale W 3,551 3,155,452 Total assets $ 4,069,373 $ 786,202 $ 1,586,235 $ 830,760 $ 909,780 $ 4,190,789 Liabilities and Fund Balances Liabilities: Accounts payable $ 105,146 $ 9,425 $ - $ $ 9,973 $ 203,083 Accrued payroll payable 136,460 7,485 - - 62,301 - Interfund payable: Interfund services provided and used 598 - - - - 15,765 Other current payables - - - 3,592 Advances from other funds - Total liabilities 244,204 16,910 - 72,274 222,440 Fund balances: Nonspendable: Property held for resale - - 3,551 - 3,155,452 Restricted 3,825,169 769,292 1,082,684 830,760 - 812,897 Committed - - 500,000 - - - Assigned - - - 837,506 - Unassigned - Total fund balances 3,825,169 769,292 1,586,235 830,760 837,506 3,988,349 Total liabilities and fund balances $ 4,069,373 $ 786,242 $ 1,586,235 $ 830,760 $ 909,780 $ 4,190,789 (Continued on next page) CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Assets Cash and cash equivalents Cash with fiscal agent Investments Receivables (net of allowances for uncollectibles): Interest Taxes Accounts Intergovernmental Loans Interfund receivable: Interfund services provided and used Advances to other funds Property held for sale j Total assets 01 Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll payable Interfund payable: Interfund services provided and used Other current payables Advances from other funds Total liabilities Fund balances: Nonspendable: Property held for resale Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balances Special Revenue 2,943 $ Law $ 2,022,421 $ Juvenile Enforcement Emergency Police Positive Continuing Loss Telephone State Seizure Assistance Education Recovery System $ 40,435 $ 2,943 $ 250,056 $ 2,022,421 $ 117,959 8,585 729,482 5,899,962 170 12 1,051 8,503 - - 16,384 - - 215,000 $ 158,564 $ 11,540 $ 996,973 $ 7,930,886 $ 215,000 $ $ $ 40 $ 11,958 $ - 40 11,958 158,564 - 996,933 - 215,000 - 11,540 - 7,918,928 - 158,564 11,540 996,933 7,918,928 215,000 $ 158,564 $ 11,540 $ 996,973 $ 7,930,886 $ 215,000 (Continued on next page) Q" CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Assets Cash and cash equivalents Cash with fiscal agent Investments Receivables (net of allowances for uncollectibles): Interest Taxes Accounts Intergovernmental Loans Interrund receivable: Interfund services provided and used Advances to other funds Property held for sale Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll payable Interfund payable: Interfund services provided and used Other current payables Advances from other funds Total liabilities Fund balances: Nonspendable: Property held for resale Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balances Special Revenue Excess Morris and Local Road Welfare Human Rights East Race Palais and Street Distribution Federal Waterway Marketing $ 494,740 $ 293 $ 118,953 $ 3,663 $ 7,132 1,443,295 855 347,019 10,685 20,806 2,080 1 501 15 30 86,900 - - - $ 2,027,015 $ 1,149 $ 466,473 $ 14,363 $ 27,968 $ 31,522 $ - $ 6,347 $ - $ - 3,629 - - 31,522 9,976 1,995,493 1,149 456,497 - - - - - 14,363 27,968 1,995,493 1,149 456,497 14,363 27,968 $ 2,027,015 $ 1,149 $ 466,473 $ 14,363 $ 27,968 (Continued on next page) CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Liabilities and Fund Balances Liabilities: Accounts payable ' $ - $ - $ - $ 1,259 $ - Special Revenue - - - - - Interfund payable: Police Economic Other current payables - - - - - Advances from other funds - Block Development Fund balances: Indiana COPS Block Grants Commission Hazmat River Rescue Grant II Assets Assigned - - - 94,396 - Unassigned - Total fund balances Cash and cash equivalents $ 973 $ 6,913 $ 4,130 $ 24,393 $ 52,117 Cash with fiscal agent - - - - - Investments 2,838 20,168 12,049 71,161 152,040 Receivables (net of allowances for uncollectibles): Interest 4 29 17 103 210 Taxes - - - - - Accounts - - - - - Intergovernmental - - - - - Loans - - - - - Interfund receivable: Interfund services provided and used - - - - - Advances to other funds - - - - - Property held for sale - Total assets $ 3,815 $ 27,110 $ 16,196 $ 95,657 $ 204,367 Liabilities and Fund Balances Liabilities: Accounts payable ' $ - $ - $ - $ 1,259 $ - Accrued payroll payable - - - - - Interfund payable: Interfund services provided and used - - - - - Other current payables - - - - - Advances from other funds - Total liabilities 1,259 Fund balances: Nonspendable: Property held for resale - - - - - Restricted 3,815 - - - 204,367 Committed - 27,110 16,196 - - Assigned - - - 94,396 - Unassigned - Total fund balances 3,815 27,110 16,196 94,398 204,367 Total liabilities and fund balances $ 3,815 $ 27,110 $ 16,196 $ 95,657 $ 204,367 (Continued on next page) OD CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Liabilities and Fund Balances Liabilities: Accounts payable $ 136 $ - $ 2,044 $ Special Revenue Accrued payroll payable - - Regional Interfund payable: Urban Interfund services provided and used Police COPS MORE Federal Drug Other current payables Development - Academy Grant Enforcement Gift Action Grant Assets 136 - 2,044 2,027,973 Fund balances: Cash and cash equivalents $ 17,350 $ 28,884 $ 385,160 $ 19,045 $ 7,030 Cash with fiscal agent - - - - - Investments 50,617 84,264 - 55,560 20,509 Receivables (net of allowances for uncollectibles): - - - - Unassigned - - Interest 73 121 91 80 30 Taxes - - - - - Accounts 2,250 30 - Intergovernmental - - - - Loans - 1,768,852 Interfund receivable: Interfund services provided and used - - - Advances to other funds - - Property held for sale - Total assets $ 70,290 $ 113,299 $ 385,251 $ 74,685 $ 1,796,421 Liabilities and Fund Balances Liabilities: Accounts payable $ 136 $ - $ 2,044 $ $ - Accrued payroll payable - - - Interfund payable: Interfund services provided and used - - - Other current payables - - - Advances from other funds - - - 2,027,973 Total liabilities 136 - 2,044 2,027,973 Fund balances: Nonspendable: Property held for resale - - - - Restricted - 113,299 383,207 74,685 1,768,852 Committed 70,154 - - - - Assigned - - - - Unassigned - - - (2,000,404) Total fund balances 70,154 113,299 383,207 74,685 (231,552) Total liabilities and fund balances $ 70,290 $ 113,299 $ 385,251 $ 74,685 $ 1,796,421 (Continued on next page) _a CD CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Liabilities and Fund Balances Liabilities: Accounts payable $ - $ $ $ 4,218 $ 385,151 Accrued payroll payable 1,309 - 213,184 Interfund payable: Interfund services provided and used - 16,363 Other current payables - - 3,592 Advances from other funds - 2,027,973 Total liabilities 1,309 4,218 2,646,263 Fund balances: Nonspendable: Property held for resale 97,800 3,256,803 Restricted - 7,097,272 20,789,935 Committed - 8,586,259 Assigned 973,813 1,313 8,612,115 10,519,145 Unassigned (2,000,404) Total fund balances 973,813 1,313 8,612,115 7,195,072 41,151,738 Total liabilities and fund balances $ 975,122 $ 1,313 $ 8,612,115 $ 7,199,290 $ 43,798,001 (Continued on next page) Special Revenue Leaf Collection Police Industrial and Removal K -9 Unit Rainy Day Revolving Totals Assets Cash and cash equivalents $ 239,187 $ 335 $ 2,196,138 $ 2,674,180 $ 10,479,224 Cash with fiscal agent - - - - - Investments 697,776 976 6,406,744 - 21,645,867 Receivables (net of allowances for uncollectibles): Interest 1,005 2 9,233 7,450 38,832 Taxes - - - - - Accounts 37,154 176,081 Intergovernmental - - - 688,497 Loans 4,419,860 7,011,210 Interfund receivable: Interfund services provided and used - - 1,487 Advances to other funds - - 500,000 Property held for sale 97,800 3,256,803 Total assets $ 975,122 $ 1,313 $ 8,612,115 $ 7,199,290 $ 43,798,001 Liabilities and Fund Balances Liabilities: Accounts payable $ - $ $ $ 4,218 $ 385,151 Accrued payroll payable 1,309 - 213,184 Interfund payable: Interfund services provided and used - 16,363 Other current payables - - 3,592 Advances from other funds - 2,027,973 Total liabilities 1,309 4,218 2,646,263 Fund balances: Nonspendable: Property held for resale 97,800 3,256,803 Restricted - 7,097,272 20,789,935 Committed - 8,586,259 Assigned 973,813 1,313 8,612,115 10,519,145 Unassigned (2,000,404) Total fund balances 973,813 1,313 8,612,115 7,195,072 41,151,738 Total liabilities and fund balances $ 975,122 $ 1,313 $ 8,612,115 $ 7,199,290 $ 43,798,001 (Continued on next page) N O CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Liabilities and Fund Balances Liabilities: Accounts payable $ - $ - $ - $ - Debt Service - - - - Interfund payable: Redevelopment Coveleski Redevelopment - - - - College Football Bond - Bond Bond - Fund balances: Hall of Fame Airport Debt Service Palais - - - " Debt Service Taxable Reserve Royale Assets - Unassigned - Total fund balances Cash and cash equivalents $ 185,046 $ 264,755 $ 128,305 $ 442,362 Cash with fiscal agent - - - Investments 530,371 772,362 374,301 1,290,492 Receivables (net of allowances for uncollectibles): Interest 732 980 540 1,860 Taxes 6,349 - - - Accounts - " Intergovernmental - " Loans - Interfund receivable: Interfund services provided and used - - - Advances to other funds - - - Property held for sale - Total assets $ 722,498 $ 1,038,097 $ 503,146 $ 1,734,714 Liabilities and Fund Balances Liabilities: Accounts payable $ - $ - $ - $ - Accrued payroll payable - - - - Interfund payable: Interfund services provided and used - - - 223 Other current payables - - - - Advances from other funds - - Total liabilities - 223 Fund balances: Nonspendable: Property held for resale - - - " Restricted 722,498 1,036,097 503,146 1,734,491 Committed - - - - Assigned - Unassigned - Total fund balances 722,498 1,038,097 503,146 1,734,491 Total liabilities and fund balances $ 722,498 $ 1,038,097 $ 503,146 $ 1,734,714 (Continued on next page) N j CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Debt Service South Bend Redevelopment Building TIF Erskine Authority Corporation Village Debt Service Debt Service Debt Service Totals Assets Cash and cash equivalents $ 3,980,899 $ 595,831 $ 561,102 $ •6,158,300 Cash with fiscal agent - - - Investments - - - 2,967,526 Receivabies'(net of allowances for uncollectibles): Interest - - 6 4,118 Taxes - - - 6,349 Accounts - - Intergovernmental - - - Loans - - - Interfund receivable: Interfund services provided and used - - - Advances to other funds - " Property held for sale - Total assets $ 3,980,899 $ 595,831 $ 561,108 •$ 9,136,293 Liabilities and Fund Balances Liabilities: Accounts payable', $ Accrued payroll payable - - - - Interfund payable: Interfund services provided and used - - - 223 Other current payables - - - Advances from other funds - Total liabilities 223 Fund balances: Nonspendable: Property held for resale Restricted 3,980,899 595,831 561,108 9,136,070 Committed - - - " Assigned Unassigned Total fund balances 3,980,899 595,831 561,108 9,136,070 Total liabilities and fund balances $ 3,880,899 $ 595,831 $ 561,108 $ 9,136,293 (Continued on next page) N N CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Liabilities and Fund Balances Liabilities: Accounts payable $ 563,292 $ - $ - $ - $ 20,389 $ Capital Projects - - - Interfund payable: Emergency Professional Coveleski Park Cumulative Medical Sports Stadium Zoo Nonreverting Capital 20,389 Services Development Capital Endowment Capital Development Assets - - - - - Restricted - 955,782 552,122 787,571 Committed Cash and cash equivalents $ 1,415,532 $ 214,590 $ 6,843 $ 12,493 $ 145,995 $ 200,253 Cash with fiscal agent - - - - - - Investments 4,129,499 626,019 19,961 36,445 425,910 584,194 Receivables (net of allowances for uncollectibles): Interest 5,913 899 29 53 606 840 Taxes - - - - - 2,284 Accounts 242,964 - - - Intergovernmental - 114,274 - - Loans - - Interfund receivable: Interfund services provided and used Advances to other funds - - Property held for sale Total assets $ 5,793,908 $ 955,782 $ 26,833 $ 48,991 $ 572,511 $ 787,571 Liabilities and Fund Balances Liabilities: Accounts payable $ 563,292 $ - $ - $ - $ 20,389 $ Accrued payroll payable - - - Interfund payable: Interfund services provided and used - Other current payables Advances from other funds Total liabilities 563,292 20,389 Fund balances: Nonspendable: Property held for resale - - - - - Restricted - 955,782 552,122 787,571 Committed 5,230,616 - 26,833 48,991 - - Assigned - - - Unassigned Total fund balances 5,230,616 955,782 26,833 48,991 552,122 787,571 Total liabilities and fund balances $_5.793,908 $ 955,782 $ 26,833 $ 48,991 $ 572,511 $ 787,571 (Continued on next page) N W Assets Cash and cash equivalents Cash with fiscal agent Investments Receivables (net of allowances for uncollectibles): Interest Taxes Accounts Intergovernmental Loans Interfund receivable: Interfund services provided and used Advances to other funds Property held for sale Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll payable Interfund payable: Interfund services provided and used Other current payables Advances from other funds Total liabilities Fund balances: Nonspendable: Property held for resale Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balances CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Morris Cumulative Performing TIF Capital Arts Center TIF Leighton TIF - West Redevelopment Improvement Capital Downtown Plaza Washington General $ 45,036 $ 116,414 $ 663,725 $ 22,618 $ 156,207 $ 6,561 - - - 50,162 - - 131,384 339,611 1,936,270 65,985 455,700 19,142 189 489 2,761 95 649 27 - - 982,818 - 62,044 - 3,705 - 2,192 - 683,474 223 5,399,940 436,690 $ 176,609 $ 460,219 $ 9,669,211 $ 141,052 $ 1,111,290 $ 25,730 $ 54,059 $ $ 3,150 - 12,273 57,209 12,273 319 $ 6,072 319 6,072 - 5,399,940 - 436,690 176,609 4,212,062 128,779 674,281 - 460,219 - - - - - 19,658 176,609 460,219 9,612,002 128,779 1,110,971 19,658 $ 176,609 $ 460,219 $ 9,669,211 $ 141,052 $ 1,111,290 $ 25,730 (Continued on next page) N CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Liabilities and Fund Balances Liabilities: Accounts payable $ $ 81,949 $ Capital Projects 1,701,457 $ 445 Accrued payroll payable Community - - TIF- Central - Interfund payable: Revitalization TIF No. 1 - TIF No. 3 - Medical Football Interfund services provided and used Enhancement Southside Southside Service Hall of Fame Other current payables District Development Development Area Capital Assets - - 656,848 Cash and cash equivalents $ 9,537 $ 876,561 $ 1,632,913 $ 823,749 $ 167,789 Cash with fiscal agent - - - - Investments - 2,557,171 4,763,660 2,403,103 489,486 Receivables (net of allowances for uncollectibles): 105,000 - - - - Interest 30 3,671 6,844 3,448 705 Taxes - 83,236 - 800,613 - Accounts - - Intergovernmental - - - Loans 114,567 3,438,690 6,402,761 - - Interfund receivable: $ 114,567 $ 3,520,639 $ 6,403,417 $ 4,030,913 $ 657,980 Interfund services provided and used Advances to other funds - Property held for sale 105,000 - - Total assets $ 114,567 $ 3,520,639 $ 6,403,417 $ 4,030,913 $ 657,980 Liabilities and Fund Balances Liabilities: Accounts payable $ $ 81,949 $ 656 $ 1,701,457 $ 445 Accrued payroll payable - - - - Interfund payable: - Interfund services provided and used - 687 Other current payables - Advances from other funds - - 656,848 Total liabilities 81,949 656 1,701,457 657,980 Fund balances: Nonspendable: Property held for resale 105,000 - - - - Restricted 9,567 3,438,690 6,402,761 2,329,456 Committed - - - Assigned ' Unassigned - - - Total fund balances 114,567 3,438,690 6,402,761 2,329,456 - Total liabilities and fund balances $ 114,567 $ 3,520,639 $ 6,403,417 $ 4,030,913 $ 657,980 (Continued on next page) CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Liabilities and Fund Balances Liabilities: Accounts payable $ 29,594 $ 616 Capital Projects $ - $ - Accrued payroll payable - - - - - Interfund payable: Certified Major TIF - Northeast TIF TIF - Northeast Technology - Moves Development Douglas Road Residential Park Assets Advances from other funds 923,829 4,989,008 Cash and cash equivalents $ 1,820,553 $ 766,761 $ 75,076 $ 650,882 $ 938,474 Cash with fiscal agent - - - - - Investments 5,311,057 2,236,854 219,018 1,896,804 2,737,786 Receivables (net of allowances for uncollectibles): - - Restricted 7,109,671 3,259,797 - Interest 7,655 3,211 310 2,707 3,945 Taxes - 253,587 - 214,435 - Accounts - - - - - Intergovernmental - - - - 3,260,413 Loans - - - - - Interfund receivable: Interfund services provided and used - - - Advances to other funds 5,912,837 - - - - Property held for sale - - j N Total assets $ 13,052,102 $ 3,260,413 $ 294,404 $ 2,766,828 $ 3,680,207 Crl Liabilities and Fund Balances Liabilities: Accounts payable $ 29,594 $ 616 $ 160 $ - $ - Accrued payroll payable - - - - - Interfund payable: Interfund services provided and used - - - - Other current payabies - - - - - Advances from other funds 923,829 4,989,008 Total liabilities 29,594 616 923,989 4,989,008 Fund balances: Nonspendable: Property held for resale - - - - - Restricted 7,109,671 3,259,797 - - 3,680,207 Committed 5,912,837 - - - - Assigned - - - - - Unassigned - (629,585) (2,222,180) Total fund balances 13,022,508 3,259,797 (629,585) (2,222,180) 3,680,207 Total liabilities and fund balances $ 13,052,102 $ 3,260,413 $ 294,404 $ 2,766,828 $ 3,680,207 (Continued on next page) N tT Assets Cash and cash equivalents Cash with fiscal agent Investments Receivables (net of allowances for uncollectibles): Interest Taxes Accounts Intergovernmental Loans Interfund receivable: Interfund services provided and used Advances to other funds Properly held for sale Total assets Liabilities and Fund Balance Liabilities: Accounts payable Accrued payroll payable Interfund payable: Interfund services provided and used Other current payables Advances from other funds Total liabilities Fund balances: Nonspendable: Property held for resale Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balances CITY OF SOUTH BEND COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 (Continued) Capital Projects 95,915 $ 431,603 $ 11,309,687 $ Total Palais Royale Airport Urban Nonmajor Historic Enterprise Equipment Governmental Preservation Zone Leasing Totals Funds $ 13,607 $ 95,915 $ 431,603 $ 11,309,687 $ 27,947,211 - - - 50,162 50,162 39,690 279,810 - 31,706,561 56,319,954 57 434 - 45,567 88,517 - - - 2,399,017 2,405,366 1,758 - - 250,619 426,700 - - - 114,274 802,771 - - - 683,474 7,694,684 - - - 223 1,710 - - - 5,912,837 6,412,837 5,941,630 9,198,433 $ 55,112 $ 376,159 $ 431,603 $ 58,414,051 $ 111,348,345 $ - $ - $ - $ 2,459,008 $ 2,844,159 - 213,184 3,637 20,423 12,273 15,865 6,569,685 8,597,658 9,044,803 11,691,269 - 5,941,630 9,198,433 - - 431,603 34,148,958 64,074,963 55,112 376,159 - 12,110,767 20,697,026 - - - 19,658 10,538,803 (2,851,765) (4,852,169) 55,112 376,159 431,603 49,369,246 99,657,056 $ 55,112 $ 376,159 $ 431,603 $ 58,414,051 $ 111,348,345 N CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued on next page) Special Revenue Studebaker Motor Oliver Economic Community Vehicle Recreation Revitalization Development DCI Investment Highway Nonreverfing Grants State Grants Operating Grants Revenues: Taxes: Property $ - $ - $ - $ - $ - $ - Professional sports development Community revitalization enhancement district Intergovernmental 4,924,283 467,180 4,099,370 Charges for services 451,013 889.028 - - 306,605 - Fines and forfeits - - - - Interest 7,468 1,610 2,081 17,740 1,522 1,335 Donations - - - - - - Sale of property 8,786 - - - - Other 17,259 74,427 79,606 747 436,398 Total revenues 5,408,809 965,065 2,0B1 97,346 776,054 4,537,103 Expenditures: Current: General government - - - - - Public safety - Highways and streets 7,584,403 - - - - - Economic development - - 1 2,168,088 4,893,418 Culture and recreation - 885,429 - - - - Debt service: Principal 110,844 - - 402,633 - - Interest and fiscal charges 6,711 42,600 Bond issuance costs - - Capital outlay: General government Public safety Highways and streets Economic development Culture and recreation Total expenditures 7,701,958 885,429 1 445,233 2,168,088 4,893,418 Excess (deficiency) of revenues over(under)expenditures (2,293,149) 79,636 2,080 (347,887) (1,392,034) (356,315) Other financing sources (uses): Transfers in 3,626,882 - - - 1,717,519 - Transfers out - - - - - - Debt issuance 5,559 - - - - - Premium (Discount) on debt issuance - Issuance of refunding bonds Payment to refunded bond escrow agent - Total other financing sources and uses 3,632,441 1,717,519 Net change in fund balances 1,339,292 79,635 2,080 (347,887) 325,485 (356,315) Fund balances - beginning (restated) 2,485,877 689,656 1,584,155 1,178,647 512,021 4,324,664 Fundbalances - ending $ 3,825,169 $ 769,292 $ 1,566,235 $ 830,760 $ 837,506 $ 3,968,349 (Continued on next page) N 00 CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) Special Revenue Law Juvenile Enforcement Emergency Police Positive Continuing Loss Telephone State Seizure Assistance Education Recovery System Revenues: Taxes: Property $ $ $ $ $ Professional sports development - - - - - Community revitalization enhancement district Intergovernmental 6,964 215,000 Charges for services - - 99,872 - - Fines and forfeits - 612 71,106 - - Interest 271 21 1,919 9,808 Donations - - 2,725 22,100 - Sale of property - - - Other 21,848 9,453 3,804,857 Total revenues 22,119 633 192,039 3,836,765 215,000 Expenditures: Current: General government - - - 263,129 Public safety 13,729 296,403 - Highways and streets - - Economic development Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay: General government Public safety Highways and streets - - - - - Economic development Culture and recreation Total expenditures 13,729 - 296,403 263,129 - Excess (deficiency) of revenues over (under) expenditures 8,390 633 (104,364) 3,573,636 215,000 Other financing sources (uses): Transfers in - - - - - Transfers out - - - - Debt Issuance - - - - - Premium (Discount) on debt issuance - - - - - Issuance of refunding bonds - Payment to refunded bond escrow agent - - Total other financing sources and uses - Net change in fund balances 8,390 633 (104,364) 3,573,636 215,000 Fund balances - beginning (restated) 150174 10,907 1,101,297 4,345,292 Fundbalances - ending $ 158,564 $ 11,540 $ 996,933 $ 7,918,928 $ 215.000 (Continued on next page) j N CD CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) Revenues: Taxes: Property Professional sports development Community revitalization enhancement district Intergovernmental Charges for services Fines and forfeits Interest Donations Sale of property Other Total revenues Expenditures: Current: General government Public safety Highways and streets Economic development Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay: General government Public safety Highways and streets Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over.(under) expenditures Other financing sources (uses): Transfers In Transfers out Debt issuance Premium (Discount) on debt issuance Issuance of refunding bonds Payment to refunded bond escrow agent Total other financing sources and uses Net change in fund balances Fund balances - beginning (restated) Fund balances - ending Special Revenue Excess Moms and Local Road Welfare Human Rights East Race Palais and Street Distribution Federal Waterway Marketing 1,005,803 146,650 - 7,010 3,514 2 873 28 53 825 29,890 1,010,142 2 177,413 28 7,063 202,243 - 804,041 - 5,842 (Continued on next page) 202,243 5,842 _ 804,041 206,101 2 (24,830) 28 1,221 2 (24,830) 1,221 28 206,101 1,789,392 1,147 481,327 14,335 26,747 $ 1,995,493 $ 1x149 $ 456,497 $ 14,363 $ 27,968 (Continued on next page) W O CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) Special Revenue Police Economic Block Development Indiana COPS Block Grants Commission Hazmat River Rescue Grant II Revenues: Taxes: Property $ $ $ $ $ Professional sports development Community revitalization enhancement district Intergovernmental - - - - 162,838 Charges for services - - 16,722 65,700 - Fines and forfeits - - - - ' Interest 7 52 27 203 - Donations - - - ' Sale of property Other - Total revenues 7 52 16,749 65,903 162,838 Expenditures: Current: General government - - - - - Public safely - - 3,238 72,274 56,672 Highways and streets - - - Economic development Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs Capital outlay: General government Public safely Highways and streets Economic development Culture and recreation - - Total expenditures 3,238 72,274 56,672 Excess (deficiency) of revenues over (under) expenditures 7 52 13,511 _ (6,371) 106,166 Other financing sources (uses): Transfers in - - - - - Transfers out Debt issuance Premium(Discount) on debt issuance Issuance of refunding bonds Payment to refunded bond escrow agent - Total other financing sources and uses - - - - Net change in fund balances 7 52 13,511 (6,371) 106,166 Fund balances - beginning (restated) 3,808 27,058 2,685 100,769 98,201 Fundbalances - ending $ 3,815 $ 27,110 $ 16,196 $ 94,398 $ 204,367 (Continued on next page) CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENOtTURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) Special Revenue Regional Urban Police COPS MORE Federal Drug Development Academy Grant Enforcement Gift Action Grant Revenues: Taxes: Property $ $ $ $ $ Professional sports development Community revitalization enhancement district 142 Intergovernmental Charges for services 22,995 Fines and forfeits Interest 161 198 ,934 129 57 Donations 250 - 11,219 - Sale of property - 9,775 Other 22,394 183,847 2,746 Total revenues 23,156 22,842 194,556 11,348 2,945. Expenditures: Current: General government - - Public safety 26,382 16,879 140,361 Highways and streets - - j Economic development 590,000 W Culture and recreation Debt service: Principal Interest and fiscal charges Bond issuance costs - Capital outlay: General government Public safety Highways and streets Economic development Culture and recreation Total expenditures 26,382 16,879 140,361 590,000 Excess (deficiency) of revenues over(under)expenditures (3,226) 5,963 54,195 11,348 (587,055) Other financing sources (uses): Transfers in - - - Transfers out Debt issuance Premium (Discount) on debt issuance Issuance of refunding bonds Payment to refunded bond escrow agent Total other financing sources and uses Net change in fund balances (3,226) 5,963 54,195 11,348 (587,055) Fund balances - beginning (restated) 73,380 107,336 329,012 63,337 355,503 Fund balances - ending $ 70,154 $ 113,299 $ 383,207 $ 74,685 $ (231,552) (Continued on next page) J W N CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) Special Revenue Leaf Collection Police Industrial and Removal K -9 Unit Rainy Day Revolving Totals Revenues: Taxes: Properly $ $ $ $ $ Professional sports development - Community revitalization enhancement district - - - - 142 Intergovernmental 11,028,088 Charges for services 433,026 - - - 2.291.971 Fines and forfeits - - 71,718 Interest 1,566 4 16,554 202,815 270,952 Donations - - - 36,294 Sale of property - - - - 18,561 Other 1 41,393 4,725,691 Total revenues 434,592 5 16,554 244,208 18,443,417 Expenditures: Current: General government 84,576 - - - 549,950 Public safety 625 - 626,563 Highways and streets - - 8,388,444 Economic development 416,951 8,068,458 Culture and recreation - - 891,271 Debt service: Principal 22.103 - - - 535,580 Interest and fiscal charges 1,135 - - - 50,446 Bond issuance costs - - - Capital outlay: General government Public safety - Highways and streets Economic development Culture and recreation ' Total expenditures 107,616 625 416,951 19,110,712 Excess (deficiency) of revenues over(under)expenditures 326,776 (620) 16,554 (172,743) (667,295) Other financing sources (uses): Transfers in - - - - 5,344,401 Transfers out (250,000) - - - (250,000) Debt issuance - - - - 5,559 Premium (Discount) on debt issuance - Issuance of refunding bonds - - - - - Payment to refunded bond escrow agent - - - Total other financing sources and uses (250,000) 5,099,960 Net change in fund balances 76,776 (620) 16,554 (172,743) 4,432,665 Fund balances - beginning(restated) 897,037 1,933 6,595,561 7,367,815 36,719,073 Fund balances - ending $ 973,613 $ 1,313 $ 8,612,115 $ 7,195,072 $ 41,151,738 (Continued on next page) CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) Debt Service Redevelopment Coveleski Redevelopment College Football Bond- Bond Bond - Hall of Fame Airport Debt Service Palais Debt Service Taxable Reserve Royale Revenues: Taxes: Property $ 1,274,527 $ $ $ Professional sports development - - Community revitalization enhancement district - Intergovemmental 67,317 Charges for services - Fines and forfeits Interest 2,000 967 3,342 Donations - - Sale of property - Other Total revenues 1,341,844 2,000 967 3,342 Expenditures: Current: General government - Public safety ' Highways and streets - �,y Economic development ' W Culture and recreation - - W Debt service: Principal 1,115,000 Interest and fiscal charges 153,632 Bond issuance costs - Capital outlay: General government Public safely Highways and streets Economic development Culture and recreation Total expenditures 1,288,632 Excess (deficiency) of revenues over (under) expenditures 73,212 2,000 967 3,342 Other financing sources (uses): Transfers In 71,468 Transfers out - (3,167) (5,292) Debt issuance Premium (Discount) on debt issuance Issuance of refunding bonds ' Payment to refunded bond escrow agent Total other financing sources and uses 71,468 (3,167) (5,292) Net change in fund balances 144,680 (1,167) 987 (1,950) Fund balances - beginning (restated) 577,818 1,039,264 502,179 1,736,441 Fundbalances - ending $ 722,498 $ 1,036,097 $ 503,146 $ 1,734,491 (Continued on next page) CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) Debt Service South Bend Redevelopment Building TIF Erskine Authority Corporation Village Debt Service Debt Service Debt Service Totals Revenues: Taxes: Property $ $ $ $ 1,274,527 Professional sports development - - - - Community revitalization enhancement district - Intergovemmental 67,317 Charges for services Fines and forfeits - - - - Interest 1,891 173 15 8,388 Donations - 1 - 1 Sale of property - - Other Total revenues 1,891 174 15 1,350,233 Expenditures: Current: General government - Public safety - - - - Highways and streets - ,� Economic development W Culture and recreation - - Deb( service: Principal 2,400,000 1,672,885 5,187,885 Interest and fiscal charges 2,351,707 552,342 3,057,681 Bond issuance costs 127,125 192,884 320,009 Capital outlay: General government - - - Public safety 9,335 9,335 Highways and streets - - - - Economic development - - - - Culture and recreation 3,000 3,000 Total expenditures 4,881,832 2,427,446 8,577,910 Excess (deficiency) of revenues over (under) expenditures (4,879,941) (2,427,272) 15 (7,227,677) Other financing sources (uses): Transfers in 4,755,324 2,237,291 - 7,064,083 Transfers out - - - (8,459) Debt issuance - 244,463 244,463 Premium (Discount) on debt issuance 21,576 21,576 Issuance of refunding bonds 3,990,000 3,990,000 Payment to refunded bond escrow agent (4,376,769) (4,376,769) Total other financing sources and uses 4,390,131 2,481,754 6,934,894 Net change in fund balances (489,810) 54,482 15 (292,783) Fund balances - beginning (restated) 4,470,709 541,349 561,093 9,428,853 Fundbalances - ending $ 3,980,899 $ 595,831 $ 561,108 $ 9,136,070 (Continued on next page) CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) Expenditures: Capital Projects Current: Emergency Professional Coveleski Park Cumulative General government Medical Sports Stadium Zoo Nonreverting Capital Public safety Services Development Capital Endowment _ Capital Development Revenues: Taxes: Property $ $ $ $ $ $ 456,675 Professional sports development 649,996 Community revitalization enhancement district 38,681 595,00D - Intergovernmental 1,986 181,470 - 39,849 Charges for services 2,823,802 4,085 - Fines and forfeits 8,869 - - - Interest 6,064 1,299 52 94 583 1,472 Donations - - 8 - - Sale of property 8,689 - - Other 5,329 77,851 13,405 211 Total revenues 2,854,753 729,146 52 102 18,073 498,407 Expenditures: Current: General government Public safety Highways and streets �+ Economic development (� Culture and recreation - n Debt service: Principal 38,681 595,00D 5.66,652 Interest and fiscal charges 1,986 181,470 34,962 Bond issuance costs - Capital outlay: General government 504 Public safety 7,653,648 - - Highways and streets - - Economic development - - Culture and recreation 100,000 160,325 Total expenditures 7,694,315 876,470 160,325 602,118 Excess (deficiency) of revenues over (under) expenditures (4,839,562) (147,324) 52 102 _ (142,252) (103,711) Other financing sources (uses): Transfers In - - 209,624 46,054 Transfers out (1,000,001)) - - Debt issuance 5,335,537 Premium (Discount) on debt issuance - Issuance of refunding bonds Payment to refunded bond escrow agent Total other financing sources and uses 4,335,537 209,824 46,054 Net change in fund balances (504,025) (147,324) 52 102 67,572 (57,657) Fund balances- beginning (restated) 5,734,641 1,103,106 26,781 48.889 484,550 845,228 Fund balances - ending $ 5,230,616 $ 955,782 $ 26,833 $ 48.991 $ 552,122 $ 787,571 (Continued on next page) CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) Expenditures: Capital Projects Morris Cumulative Performing General government TIF Capital Arts Center TIF Leighton TIF - West Redevelopment Improvement Capital Downtown Plaza Washington General Revenues: Taxes: Property $ $ $ 3,573,627 $ - $ 518,833 $ Professional sports development Debt service: - Community revitalization enhancement district - Intergovernmental 421,457 398,500 Interest and fiscal charges Charges for services - 104,240 33,994 - - - Fines and forfeits - - Interest 775 55,521 169 641 60 Donations General government - - Sale of property - Public safety 8,727 Other 24,923 188,531 155,728 Total revenues 446.380 105,015 4,258,900 155,697 519,474 60 Expenditures: Current: General government Public safety Highways and streets -a Economic development W Culture and recreation - Debt service: Principal 1,676,667 Interest and fiscal charges 805,754 Bond issuance costs Capital outlay: General government Public safety Highways and streets - - Economic development - 990,356 132,154 323,963 11,871 Culture and recreation 41,175 - - Total expenditures 41,175 3,472,777 132,154 323,963 11,871 Excess (deficiency) of revenues over(under)expenditures 446,38D 63,840 786,123 23,743 195,511 (11,811) Other financing sources (uses): Transfers in - 5,291 - - Transfers out (367,575) (398,50D) Debt issuance Premium (Discount) on debt issuance Issuance of refunding bonds Payment to refunded bond escrow agent Total other financing sources and uses (367,575 (393,209) Net change In fund balances 78,805 63,840 392,914 23,743 195,511 (11,811) Fund balances - beginning (restated) 97,804 396,379 9,219,088 105,036 915,460 31,469 Fundbalances - ending $ 176,609 $ 460,219 $ 9,612,002 $ 128,779 $ 1,110,971 $ 19,658 (Continued on next page) s W CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) Capital Projects Community TIF- Central Revitalization TIF No. 1 - TIF No. 3 - Medical Football Enhancement Southside Southside Service Hall of Fame District Development Development Area Capital Revenues: Taxes: Property $ $ 2,475,377 $ 1,311,129 $ 1,640,705 $ Professional sports development - Community revitalization enhancement district 244,481 Intergovernmental Charges for services Fines and forfeits - - - Interest 342 10,341 9,861 6,814 1,371 Donations - Sale of property Other - 42 Total revenues 244,823 2,485,718 1,321,010 1647,519 1,413 Expenditures: Current: General government - Public safety - Highways and streets Economic development - Culture and recreation - Debt service: Principal 385,000 195,000 Interest and fiscal charges 73,949 293,846 - Bond issuance costs - - - Capital outlay: General government - - Public safety - Highways and streets - - - Economic development 4,329,259 1,813 1,747,719 62,474 Culture and recreation - Total expenditures 458,949 4,329,259 490,661 1,747,719 62,474 Excess (deficiency) of revenues over (under) expenditures (214,126) (1,843,541) 830.349 (100,200) (61,061) Other financing sources (uses): Transfers in - - 61,061 Transfers out Debt issuance - Premium (Discount) on debt Issuance - - - Issuance of refunding bonds - Payment to refunded bond escrow agent Total other financing sources and uses 81,061 Net change in fund balances (214,126) (1,843,541) 830,349 (100,200) - Fund balances- beginning (restated) 328,693 5,282,231 5,572,412 2,429,656 Fund balances- ending $ 114,567 $ 3,438,690 $ 6,402,761 $ 2,329,456 $ (Continued on next page) . CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) (Continued on next page) Capital Projects Certified Major TIF - Northeast TIF TIF - Northeast Technology Moves Development Douglas Road Residential Park Revenues: Taxes: Property $ $ 845,052 $ 76,627 $ 2,477,200 $ Professional sports development - - - " Community revitalization enhancement district - Intergovernmental - 1,412,953 Charges for services " Fines and forfeits - " Interest 250,450 4,185 120 3,728 4,117 Donations - " Sale of property - - Other 23,437 Total revenues 273,887 849,237 76,747 2,480,928 1,417,070 Expenditures: Current: General government " Public safely - Highways and streets - j Economic development - W Culture and recreation " Debt service: Principal - 87,119 - interest and fiscal charges 67,980 180,490 Bond Issuance costs - Capital outlay: General government Public safety " Highways and streets 1,195,578 - - Economic development 51,652 416 33,392 - Culture and recreation - Total expenditures 1,195,578 51,652 155,517 213,882 Excess (deficiency) of revenues over (under) expenditures (921,691) 797,585 (78,770 2,267,046 1,417,070 Other financing sources (uses): Transfers in - - - - Transfers out - - - (2,824,324) Debt issuance - Premium (Discount) on debt issuance - Issuance of refunding bonds - Payment to refunded bond escrow agent - - Total other financing sources and uses (2,824,324) Net change in fund balances (921,691) 797,585 (78,770) (557,278) 1,417,070 Fund balances- beginning (restated) 13,944,199 2,462,212 (550,815) (1,664,902) 2,263,137 Fundbalances - ending $ 13,022,508 $ 3,259,797 $ 629585 $ (2,222,180) $ 3,660.207 (Continued on next page) CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 (Continued) Capital Projects Total Palais Royale Airport Urban Nonmajor Historic Enterprise Equipment Governmental Preservation Zone Leasing Totals Funds Revenues: Taxes: Property $ $ $ $ 13,375,425 $ 14,649,952 Professional sports development 649,996 649,996 Community revitalization enhancement district 244,481 244,623 Intergovernmental 15,911 2,288,670 13,384,075 Charges for services 2,966,121 5,258,092 Fines and forfeits 8,869 80,567 Interest 125 754 385 351,343 640,6B3 Donations - - 8 36,303 Sale of property 17,416 35,977 Other 469,457 5,215,146 Total revenues 16,036 754 385 20,401,786 40,195,436 Expenditures: Current General government - - 549,950 Public safety 626,563 Highways and streets 8,388,444 Economic development 8,068,458 j Culture and recreation 891,271 W Debt service: CID Principal 3,544,119 9,267,564 Interest and fiscal charges 1,640,439 4,748,566 Bond Issuance costs 320,009 Capital outlay: General government 233 737 737 Public safety 1,089,719 8,743,367 8,752,702 Highways and streets 643,543 1,839,121 1,839,121 Economic development - 7,665,071 7,685,071 Culture and recreation 20,470 321,970 324,970 Total expenditures 20,470 1,733,495 23,774,824 51,463,446 Excess (deficiency) of revenues over(under)expenditures (4,434) 754 (1,733,110) (3,373,038) (11,268,010) Other financing sources (uses): Transfers in 322,230 12,730,714 Transfers out - (4,590,399) (4,848,858) Debt issuance 2,162,750 7,498,287 7,748,309 Premium (Discount) on debt issuance 21,576 Issuance of refunding bonds 3,990,000 Payment to refunded bond escrow agent (4,376,769) Total other financing sources and uses 2,162,750 3,230,118 15,264,972 ' Net change in fund balances (4,434) 754 429,640 (142,920) 3,996,962 Fund balances - beginning (restated) 59,546 375,405 1,963 49,512,168 95,660,094 Fundbalances - ending $ 55,112 $ 376,159 $ 431,603 $ 49,369,248 $ 99,657,056 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - MAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - TIF AIRPORT For the Year Ended December 31, 2013 Revenues: Property Taxes Other Total revenues Expenditures: Current: .a .Pb Other development: C Other services and charges Capital outlay Total expenditures Other financing sources (uses): Transfers in Net change in fund balances Fund balances - beginning Fund balances - ending BUdoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances Net change in fund balance, GAAP basis 11,418,401 13,736,269 15,747,133 2,010,664 4,356,441 9,944,113 8,128,308 1,815,805 17,317,559 15,300,479 8,060,859 7,239,620 21,674,000 25,244,592 16,189,167 9,055,425 326,000 281,000 279,530 (1,470 (9,929,599) (11,227,323) (162,504) 11,064,619 18, 42 9,252 18,429, 252 18,429,252 $ 8,499,653 $ 7,201,929 $ 18,266,747 $ 11,064,819 $ (162,504) 1,712,596 888,801 6,961,261 $ 9,400,154 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 11,200,000 $ 11,200,000 $ 13,340,354 $ 2,140,354 218,401 2,536,269 2,406,779 (129,490) 11,418,401 13,736,269 15,747,133 2,010,664 4,356,441 9,944,113 8,128,308 1,815,805 17,317,559 15,300,479 8,060,859 7,239,620 21,674,000 25,244,592 16,189,167 9,055,425 326,000 281,000 279,530 (1,470 (9,929,599) (11,227,323) (162,504) 11,064,619 18, 42 9,252 18,429, 252 18,429,252 $ 8,499,653 $ 7,201,929 $ 18,266,747 $ 11,064,819 $ (162,504) 1,712,596 888,801 6,961,261 $ 9,400,154 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND VALANCES - BUDGETAND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - MOTOR VEHICLE HIGHWAY For the Year Ended December 31, 2013 Revenues: Intergovernmental Charges for services Other Total revenues Expenditures: Current: Highways and streets: Personnel services Supplies Other services and charges Capital outlay Other uses Total expenditures Other financing sources (uses): Transfers in Net change in fund balances Fund balances - beginning Fund balances - ending Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances $ 806,258 (103,432) 33,589 602,877 Net change in fund balance, GAAP basis $ 1,339,292 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 4,910,000 $ 4,749,789 $ 5,051,334 $ 301,545 172,000 172,000 324,494 152,494 143,300 143,300 127,627 (15,673) 5,225,300 5,065,089 5,503,455 438,366 3,845,935 3,845,935 3,461,070 384,865 2,940,130 3,018,469 2,877,597 140,672 1,812,617 2,080,152 1,764,321 315,831 253,500 231,940 229,877 2,063 8,852,182 9,176,496 8,332,865 843,631 3',626,882 3,626,882 3,635,668 8,786 - (484,525) 806,258 1,290,783 2,271,733 .2,271,733 2,271,733 $ 2,271,733 $ 1,787,208 $ 3,077,991 $ 1,290,783 $ 806,258 (103,432) 33,589 602,877 Net change in fund balance, GAAP basis $ 1,339,292 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS- RECREATION NONREVERTING For the Year Ended December 31, 2013 Revenues: Charges for services Other Total revenues Expenditures: Current: Culture and recreation: Personnel services Supplies N Other services and charges Capital outlay Total expenditures Other financing sources (uses): Transfers out Net change in fund balances Fund balances - beginning Fund balances - ending Budoet(GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances Net change in fund balance, GAAP basis 1,63043 1,636,943 1,003,316 (633,625) 668,209 668,209 438,880 229,329 281,493 288,211 221,475 66,736 485,357 485,357 228,447 256,910 119,000 119,00D _ _ 119,000 1,554,059 1,560,777 888,802 671,975 10,375 10,375 82,884 76,166 124,891 48,725 671,132 671,132 671,132 $ 754,016 $ 747,298 $ 796,023 $ 48,725 $ 124,891 (59,304) 11,073 2.976 $ 79,636 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 1,632,943 $ 1,632,943 $ 886,739 $ (746,204) 4,000 4,000 _116,580_ 112,580 1,63043 1,636,943 1,003,316 (633,625) 668,209 668,209 438,880 229,329 281,493 288,211 221,475 66,736 485,357 485,357 228,447 256,910 119,000 119,00D _ _ 119,000 1,554,059 1,560,777 888,802 671,975 10,375 10,375 82,884 76,166 124,891 48,725 671,132 671,132 671,132 $ 754,016 $ 747,298 $ 796,023 $ 48,725 $ 124,891 (59,304) 11,073 2.976 $ 79,636 CITY OF SOUTH BEND SCHEDULES OF REVENUES,. EXPENDITURES, AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - STUDEBAKER OLIVER REVITALIZATION GRANTS For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original _ Final Amounts (Negative) Revenues: Other $ 305,000 $ 5,000 $ 3,712 $ (1,288) ..a Expenditures: W Current: Economic development: Other services and charges 1,000,000 1,000,000 1,000,000 Net change in fund balances (695,000) (995,000) 3,712 998,712 Fund balances - beginning 1,079,675 1,079,675 1,079,675 Fund balances - ending $ 384,675 $ 84,675 $ 1,083,387 $ 998,712 BudgeUGAAP Reconciliation Net change in fund balance, budget basis $ 3,712 To adjust revenues for accruals (1,632) Net change in fund balance, GAAP basis $ 2,080 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - ECONOMIC DEVELOPMENT STATE GRANTS For the Year Ended December $1, 2013 Revenues: Other —+ Expenditures: -P Current: -P Economic development: Other services and charges Net change in fund balances Fund balances - beginning Fund balances - ending Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 1,624,187 $ 1,646,262 $ 238,066 $ (1,408,196) 1,260,777 1,260,777 807,570 453,207 363,410 385,485 (569,505) (954,990) 918,455 918,455 918,455 $ 1,261,865 $ 1.303,940 $ 348,950 L__154 ,990) Budcet/GAAP Reconciliation Net change in fund balance, budget basis $ (569,505) To adjust revenues for accruals (140,721) To adjust expenditures for accruals 362,338 Net change in fund balance, GAAP basis $ (347,887) CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - DCI OPERATING For the Year Ended December 31, 2013 Revenues: Intergovernmental Other Total revenues Expenditures: Current: Economic development: j Personnel services ,p Supplies Cn Other services and charges Capital outlay Other uses Total expenditures Other financing sources (uses): Transfers in Net change in fund balances Fund balances - beginning Fund balances - ending Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances $ 302,395 1,763 244 21,083 Net change in fund balance, GAAP basis $ 325,485 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 421,787 $ 471,887 $ 467,180 $ (4,707) 202,500 296,601 306,912 10,311 624,287 768,488 774,092 5,604 1,938,047 1,921,547 1,760,056 141,491 30,352 44,061 34,106 9,955 373,407 384,003 370,334 13,669 - 4,720 4,720 - 2,341,806 2,354,331 2,189,216 165,115 1,717,521 1,717,521 1,717,519 (2) 2 131,678 302,395 170,717 584,037 584,037 584,037 $ 584,039 $ 715,715 $ 886,432 $ 170,717 $ 302,395 1,763 244 21,083 Net change in fund balance, GAAP basis $ 325,485 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - COMMUNITY INVESTMENT GRANTS For the Year Ended December 31, 2013 Revenues: Intergovernmental Other Total revenues ...� Expenditures: Current: C" Economic development: Personnel services Other services and charges Total expenditures Net change in fund balances Fund balances. beginning Fund balances - ending Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances 3,811,000 8,601,185 4,483,441 (4,317,744) - 2,565 Variance - Actual With Final 7,503,546 Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 3,525,000 $ 8,148,705 $ 3,995,268 $ (4,153,437) 286,000 652,480 488,173 (164,307) 3,811,000 8,601,185 4,483,441 (4,317,744) - 2,565 2,565 - 3,811,000 8,954,707 7,503,546 1,451,161 3,811,000 8,957,272 7,506,111 1,451,161 - (156,087) (3,022,670) (2,866,583) ' 514,341 614,341 514,341 $ 514,341 $ 358,254 LJ2,508,329) !—(3.866,58J3 $ (3,022,670) (528,815) 95,389 3,099,781 Net change in fund balance, GAAP basis $ (356,315) CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - POLICE STATE SEIZURE For the Year Ended December 31, 2013 Revenues: Other Expenditures: Current: "+ Public safety: °p Supplies Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances- beginning Fund balances - ending Bud et/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis $ 35,900 $ 35,900 $ 27,470 $ (8,430) 10,000 10,000 - 10,000 22,500 22,5D0 2,729 19,771 3,400 13,400 11,000 2,400 35,900 45,900 13,729 32,171 (10,000) 13,741 23,741 144,925 144,925 144,925 $ 144,925 $ 134,925 $ 158,667 $ 23,741 $ 13,741 (5,351) $ 8,390 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 35,900 $ 35,900 $ 27,470 $ (8,430) 10,000 10,000 - 10,000 22,500 22,5D0 2,729 19,771 3,400 13,400 11,000 2,400 35,900 45,900 13,729 32,171 (10,000) 13,741 23,741 144,925 144,925 144,925 $ 144,925 $ 134,925 $ 158,667 $ 23,741 $ 13,741 (5,351) $ 8,390 JA co CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - JUVENILE POSITIVE ASSISTANCE For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Fines and fees $ 1,025 $ 1,025 $ 625 $ (400) Other 38 38 Total revenues 1,025 1,025 663 (362) Expenditures: Current: Public safety: Supplies 500 500 - 500 Other services and charges 500 500 50o Total expenditures 1,000 1,000 1,000 Net change in fund balances 25 25 663 638 Fund balances - beginning 10,885 10,865 10,885 Fund balances - ending $ 10,910 $ 10,910 $ 11,548 $ 638 BudoeUGAAP Reconciliation Net change in fund balance, budget basis $ 663 To adjust revenues for accruals (30) Net change in fund balance, GAAP basis $ 633 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - LAW ENFORCEMENT.CONTINUING EDUCATION For the Year Ended December 31, 2013 Revenues: Intergovernmental Charges for services Fines and fees Other Total revenues Expenditures: Current: CID Public safety: Supplies Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending BudoeUGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances Net change in fund balance, GAAP basis $ (130,783) (2,094) 3,711 24,802 $ (104,364) Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 108,000 $ 106,000 $ 6,964 $ (101,036) 100,000 100,000 100,128 128 80,000 80,000 71,768 (8,232) 59,000 59,000 15,669 (43,331) 347,000 347,000 194,528 (152,472) 50,500 155,512 142,642 12,870 119,500 116,500 45,602 70,898 177,000 206,119 137,066 69,053 347,000 478,131 325,311 152,820 - (131,131) (130,783) 348 1,087,207 1,087,207 1,087,207 - $ 1,087,207 $ 956,076 $ 956,424 $ 348 $ (130,783) (2,094) 3,711 24,802 $ (104,364) CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS- LOSS RECOVERY For the Year Ended December 31, 2013 Revenues: Other Expenditures: Current: j General government: Supplies CD Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances Net change in fund balance, GAAP basis Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 26,000 $ 3,851,957 $ 3,845,642 $ (6,315) 206,000 - - - 300,000 . 1,124,033 1,066,976 57,057 152,152 150,000 2,152 508,000 1,276,185 1,216,976 59,209 (482,000) 2,575,772 2,628,666 52,894 4,341,561 4,341,561 4,341,561 $ 3,859,561 L_6,917,333 1 6,970,227 $ 52,894 $ 2,628,666 (8,877) (11,958) 965,805 $ 3,573,636 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - LOCAL ROAD AND STREET For the Year Ended December 31, 2013 Revenues: Intergovernmental Other Total revenues Expenditures: Current: Cil Highways and streets: _& Supplies Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Budget1GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances 1,048,500 1,061,143 1,008,943 (52,200) 400,000 400,000 400,000 - - 77,500 7,500 70,000 648,500 758,424 416,385 342,039 1,048,500 1,235,924 823,685 412,039 - (174,781) 185,058 359,839 1,714, 298 1,714,298 1,714,298 $ 1,714,298 $ 1,539,517 $ 1,899,356 $ 359,839 $ 185,058 1,199 (22,175) 42,019 Net change in fund balance, GAAP basis $ 206,101 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 1,040,000 $ 1,052,643 $ 1,001,871 $ (50,772) 8,500 8,500 7,071 (1,429) 1,048,500 1,061,143 1,008,943 (52,200) 400,000 400,000 400,000 - - 77,500 7,500 70,000 648,500 758,424 416,385 342,039 1,048,500 1,235,924 823,685 412,039 - (174,781) 185,058 359,839 1,714, 298 1,714,298 1,714,298 $ 1,714,298 $ 1,539,517 $ 1,899,356 $ 359,839 $ 185,058 1,199 (22,175) 42,019 Net change in fund balance, GAAP basis $ 206,101 j C3'1 N CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - EXCESS WELFARE DISTRIBUTION For the Year Ended December 31, 2013 Revenues: Other Expenditures: Current: Public safety: Capital outlay Net change in fund balances Fund balances - beginning Fund balances - ending BudoetIGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis Variance Actual With Final Budgetary Budget Budgeted Amounts _ Basis Positive Original Final Amounts (Negative) $ - $ - $ 4 $ 4 4 4 1,146 1,146 1,146 $ 1,146 $ 1,146 $ 1,150 $ 4 $ 4 (2) $ 2 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - HUMAN RIGHTS FEDERAL For the Year Ended December 31, 2013 Revenues: Intergovernmental Other Total revenues Expenditures: Current: 01 W General government: Personnel services Supplies Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending BudoeVGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals Net change in fund balance, GAAP basis 237,250 237,250 178,149 (59,101) 105,514 107,714 Variance 1,834 Actual With Final 3,801 Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 199,000 $ 199,000 $ 146,650 $ (52,350) 36,250 38,250 31,499 (6,751} 237,250 237,250 178,149 (59,101) 105,514 107,714 105,880 1,834 4,550 4,668 3,801 867 117,000 152,426 .87,857 64,569 1,500 1,500 1,500 228,564 266,308 197,538 68,770 8,686 (29,058) (19,389) 9,669 486,164 486,164 486,164 $ 494,850 $ 457,106 $ 466,775 $ 9,669 $ (19,389) (735) (4,706) $ (24,830) i ft 1 al CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - EAST RACE WATERWAY For the Year Ended December 31, 2013 Revenues: Other Expenditures: Current: Culture and recreation: Supplies Other services and charges Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Budget/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for encumbrances Net change in fund balance, GAAP basis Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 100 $ 100 $ 49 $ (51) 346 346 346 346 100 (246) (297) (51) 14,323 14,323 14,323 $ 14,423 $ 14,077 $ 14,026 $ {51) $ (297) (21) 346 $ 28 01 Cill CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - MORRIS AND PALAIS MARKETING For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Other $ 8,100 $ 8,100 $ 7,113 $ (987) Expenditures: Current: Culture and recreation: Other services and charges 8,100 10,149 7,891 2,258 Net change in fund balances (2,049) (777) 1,272 Fund balances - beginning 28,763 28,763 28,763 Fundbalances - ending $ 26,763 $ 26,714 $ 27,985 $ 1,272 BudoeUGAAP Reconciliation Net change in fund balance, budget basis $ (777) To adjust expenditures for accruals 1,998 Net change in fund balance, GAAP basis $ 1,221 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - POLICE BLOCK GRANTS For the Year Ended December 31, 2013 Revenues: Intergovernmental Other Total revenues Expenditures: C31 Current: CY) Public safety: Supplies Other srvices and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending BudgeUGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 185,000 $ 185,000 $ - $ (185,000) 300 300 13 (287) 185,300 185,300 13 185,287 45,000 45,000 45,000 40,000 40,000 40,000 100,000 100,000 100,000 185,000 185,000 185,000 300 300 13 (287) 3,804 3,804 3,804 - $ 4,104 $ 4,104 $ 3,817 $ (287) $ 13 (6) Net change in fund balance, GAAP basis $ 7 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - ECONOMIC DEVELOPMENT COMMISSION For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Other $ 100 $ 100 $ 93 $ (7) Expenditures: Other uses 27,102 27,132 27,132 Total expenditures 27,102 27,132 - 27,132 Net change in fund balances (27,002) (27,032) 93 27,125 Fund balances - beginning _ 27,035 27,035 27,035 Fund balances- ending $ 33 $ 3 $ 27,128 $ 27,125 Budaet/GAAP Reconciliation Net change in fund balance, budget basis $ 93 To adjust revenues for accruals (41) Net change in fund balance, GAAP basis $ 52 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - HAZMAT For the Year Ended December 31, 2013 Revenues: Charges for services Other —` Total revenues Cn 00 Expenditures: Current: Public safety: Capital outlay Net change in fund balances Fund balances - beginning Fund balances - ending Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis Variance Actual With Final Budgetary Budget Budgeted Amounts_ Basis Positive Original Final Amounts (Negative) $ 3,000 $ 3,000 $ 16,722 $ 13,722 - - 40 40 3,000 3,000 16,762 13,762 3,000 3,500 3,238 262 (500) 13,524 14,024 2,683 2,663 2,683 $ 2,683 $ 2,183 $ 16,207 ffi 14,024 $ 13,524 (13) $ 13,511 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - INDIANA RIVER RESCUE For the Year Ended December 31, 2013 Revenues: Charges for services Other Total revenues Expenditures: -+ Current: C31 Public safety: CID Personnel services Supplies Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Buddet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals Net change in fund balance, GAAP basis Actual Budgetary Bud eted Amounts Basis Original Final Amounts $ 31,300 $ 31,300 $ 65,700 200 200 368 Variance With Final Budget Positive (Negative) $ 34,400 168 31,500 31,500 66,068 34,568 2,000 2,000 1,508 492 6,500 37,166 36,820 346 20,700 25,500 23,985 1,515 2,300 27,460 27,460 31,500 92,126 89,773 2,353 - (60,626) (23,705) 36,921 119,423 119,423 11%423 $ 119,423 $ 58,797 $ 95,718 $ 36,921 $ (23,705) (163) 17,497 $ (6,371) j Q7 O CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - COPS BLOCK GRANT II For the Year Ended December 31, 2013 . Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 110,000 $ 110,000 $ 162,838 $ 52,B38 Expenditures: Current: Public safety: Other services and charges 10,000 10,000 - 10,000 Supplies - 36,950 36,911 39 Capital outlay 100,000 63,050 19,543 43,507 Total expenditures 110,000 110,000 56,454 53,546 Net change in fund balances - - 106,384 106,384 Fundbalances - beginning 98,125 98,125 98,125 Fundbalances - ending $ 98,125 $ 98,125 $ 204,509 $ 106,384 Budoet/GAAP Reconciliation Net change in fund balance, budget basis $ 106,384 To adjust revenues for accruals (218) Net change in fund balance, GAAP basis $ 106,166 f3'f j CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - REGIONAL POLICE ACADEMY For. the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental. $ - $ $ - $ - Charges for services 26,250 26,250 20,745 (5,505) Other 2,250 2,250 268 (1,982) Total revenues 28,500 28,500 21,013 (7,487) Expenditures: Current: Public safety: Supplies 1,500 1,500 169 1,331 Other services and charges 27,000 27,000 26,575 425 Total expenditures ' 28,500 28,500 26,744 1,756 Net change in fund balances - (5,731) (5,731) Fund balances - beginning 73,815 73,815 73,815 Fund balances - ending 4 73,815 $ 73,815 $ 68,084' $ (5,731) BudoettGAAP Reconciliation Net change in fund balance, budget basis $ (5,731) To adjust revenues for accruals 2,143 To adjust expenditures for accruals 362 i Net change in fund balance, GAAP basis $ (3,226) CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - COPS MORE GRANT For the Year Ended December 31, 2013 Revenues: Other Expenditures: Current: —A Public safety: Supplies N Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals Actual Budgetary Budgeted Amounts Basis Original Final Amounts $ 41,600 $ 41,600 $ 23,068 Variance With Final Budget Positive (Negative) $ (18,532) 13,650 13,460 5,635 7,845 17,375 17,925 11,379 6,546 10,575 10,575 10,575 41,600 41,960 17,014 24,966 - (380) 6,054 6,434 107,289 107,289 107,289 $ 107,289 $ 106,909 1 113,343 $ 6,434 $ 6,054 (226) 135 Net change in fund balance, GAAP basis $ 5,963 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - FEDERAL DRUG ENFORCEMENT For the Year Ended December 31, 2013 Revenues: Intergovernmental Other Total revenues Expenditures: Current: C Public safety: W Supplies Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending BudgeUGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances $ 48,320 (13) 4,389 1,499 Net change in fund balance, GAAP basis $ 54,195 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 100,000 $ 100,000 $ 160,829 $ 60,829 2,000 2,000 33,740 31,740 102,000 102,000 194,569 92,569 37,000 60,867 53,136 7,731 45,000 45,000 10,455 34,545 20,000 82,706 82,658 48 102,000 188,573 146,249 42,324 - (86,573) 48,320 134,893 335,341 335,341 335,341 - $ 335,341 $ 248,768 1 383,661 $ 134,893 $ 48,320 (13) 4,389 1,499 Net change in fund balance, GAAP basis $ 54,195 -L C" CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - GIFT For the Year Ended December 31, 2013 Revenues: Other Expenditures: Supplies Other services and charges Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Budget/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for encumbrances Net change in fund balance, GAAP basis $ 10,191 (153) 1,310 $ 11,348 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 7,150 $ 17,011 $ 11,501 $ (5,510) - 3,441 - 3,441 7,311 1,310 6,001 101752 1,310 9,442 7,150 6,259 10,191 3,932 63;233 63,233 63,233 $ 70,383 $ 69,492 $ 73,424 $ 3,932 $ 10,191 (153) 1,310 $ 11,348 Cn Cn CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - URBAN DEVELOPMENT ACTION GRANT For the Year Ended December 31, 2013 Revenues: Other Expenditures: Current: Economic development: Other services and charges Net change in fund balances Fund balances - beginning Fund balances -ending BudoeNGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 69,962 $ 70,117 $ 3,834 $ (66,283) 268,146 268,146 268,146 (198,184) (198,029) 3,834 201,863 23,753 23,753 23,753 $ (174,431) $ (174,276) $ 27,587 $ 201,863 $ 3,834 (590,889) $ (567,055) CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS -LEAF COLLECTION AND REMOVAL For the Year Ended December 31, 2013 Revenues: Charges for services Other Total revenues Expenditures: Current: General government: j Personnel services O" Supplies C" Other services and charges Other uses Total expenditures Other financing sources (uses): Transfers out Net change in fund balances Fund balances - beginning Fund balances - ending Budoet1GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances (250,000) (250,000) (250,000) - (365) 76,870 77,235 859,452 859,452 859,452 $ 859,452 $ 859,087 $ 936,322 $ 77,235 $ 76,870 (905) (491) 1,302 Net change in fund balance, GAAP basis $ 76,776 Variance Actual With Final Budgetary Budget _ Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 429,000 $ 429,000 $ 433,026 $ 4,026 2,700 2,700 2,914 214 431,700 431,700 435,940 4,240 64,378 64,378 41,354 23,024 7,067 7,432 7,383 49 104,255 104,255 54,966 49,289 6,000 6,000 5,367 633 181,700 182,065 109,070 72,995 (250,000) (250,000) (250,000) - (365) 76,870 77,235 859,452 859,452 859,452 $ 859,452 $ 859,087 $ 936,322 $ 77,235 $ 76,870 (905) (491) 1,302 Net change in fund balance, GAAP basis $ 76,776 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - POLICE K -9 UNIT For the Year Ended December 31, 2013 Revenues: Other p1 Expenditures: v Current: Public safety: Other services and charges Net change in fund balances Fund balances - beginning Fund balances - ending Budcet/GAAP Reconciliation Net change in fund balance, budget basis $ (617) To adjust revenues for accruals (3) Net change in fund balance, GAAP basis $ (620) Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive _ Original Final Amounts (Negative) $ 2,000 $ 2,000 $ 8 $ (1,992) 2,000 2,000 625 1,375 - - (617) (617) 1,931 1,931 1,931 $ 1,931 $ 1,931 $ 1,313 $ (617) Budcet/GAAP Reconciliation Net change in fund balance, budget basis $ (617) To adjust revenues for accruals (3) Net change in fund balance, GAAP basis $ (620) OD CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS - RAINY DAY For the Year Ended December $1, 2013 Revenues: Other Net change in fund balances Fund balances - beginning Fund balances - ending BUdoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis 8,588,180 8,588,180 8,588,180 $ 8,640,180 L_8,640.180 $ 8,617,704 $ (22,476) $ 29,524 (12,970) $ 16,554 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 52,000 $ 52,000 $ 29,524 $ (22,476) 52,000 52,000 29,524 (22,476) 8,588,180 8,588,180 8,588,180 $ 8,640,180 L_8,640.180 $ 8,617,704 $ (22,476) $ 29,524 (12,970) $ 16,554 f� CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS DEBT SERVICE FUNDS - COLLEGE FOOTBALL HALL OF FAME DEBT SERVICE For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes: Property $ 1,118,460 $ 1,118,460 $ 1,268,179 $ 149,719 Intergovernmental 151,818 139,329 138,784 (545) Other - Total revenues 1,270,278 1,257,789 1,406,963 149,174 Expenditures: Debt service: Principal 1,115,000 1,115,000 1,115,000 - Interest and fiscal agent fees 155,278 153,000 153,000 Total expenditures 1,270,278 1,268,000 1,268,000 Net change in fund balances - (10,211) 138,963 149,174 Fund balances - beginning 574,439 574,439 574,439 Fund balances - ending $ 574,439 $ 564,228 $ 713,402 $ 149,174 BudoeUGAAP Reconciliation Net change in fund balance, budget basis $ 138,963 To adjust revenues for accruals 5,717 Net change in fund balance, GAAP basis $ 144,680 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS DEBT SERVICE FUNDS- REDEVELOPMENT BOND - AIRPORT TAXABLE For the Year Ended December 31, 2013 Revenues: j Other v C Other financing sources (uses): Transfers out Net change in fund balances Fund balances - beginning Fund balances - ending Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 5,000 $ 5,000 $ 3,567 $ (1,433) 5,000 5,000 (3,567) (8,567) 10,000 10,000 - (10,000) 1,038,904 1,038,904 1,038,904 $ 1,048,904 $ 1,048,904 1 1,038,904 $ (10,000) Budoet/GAAP Reconciliation Net change in fund balance, budget basis $ To adjust revenues for accruals (1,167) Net change in fund balance, GAAP basis $ (1,167) j J CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS DEBT SERVICE FUNDS- COVELESKI BOND DEBT SERVICE RESERVE For the Year Ended December 31, 2013 Revenues: Other Net change in fund balances Fund balances - beginning Fund balances - ending BudaeUGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 3,500 $ 3,500 $ 1,725 $ (1,775) 3,500 3,500 1,725 (1,775) 501,748 501,748 501,748 $ 505,248 $ 505,248 $ 503,473 $ (1,775) $ 1,725 (758) $ 967 J N CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS DEBT SERVICE FUNDS - REDEVELOPMENT BOND - PALAIS ROYALE For the Year Ended December 31, 2013 Revenues: Other Other financing sources (uses): Transfers out Net change in fund balances Fund balances - beginning Fund balances - ending BUdoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis Actual Budgetary Budgeted Amounts Basis Original Final Amounts $ 6,000 $ 6,000 $ 5,959 Variance With Final Budget Positive (Negative) $ (41) (6,000) (6,000) (5,959) 41 1,735,840 1,735,840 1,735,840 $ 1,735,840 $ 1,735,840 $ 1,735,840 $ (1,950) $ CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - EMERGENCY MEDICAL SERVICES For the Year Ended December 31, 2013 Revenues: Intergovernmental Charges for services Other Total revenues Expenditures: Public safety: j Supplies Other services and charges W Capital outlay Other uses Total expenditures Other financing sources (uses): Transfers out Net change in fund balances Fund balances - beginning Fund balances - ending Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances Net change in fund balance, GAAP basis (1,000,000) (1,000,000) 1,000,000) (87,512) (3,205,542) (1,871,574) 1,333,968 5,522,335 5,522,335 5,522,335 $ 5,434,823 $ 2,316,793 $ 3,650,761 $ 1,333,968 $ (1,871,574) (127,119) (403,441) 1,898,109 $ (504,025) Variance Actual With Final Budgetary Budget Budgeted Amounts _ Basis Positive Original Final Amounts (Negative) 3,690,084 2,947,084 2,957,086 10,002 40,000 5,375,537 5,365,946 _ (9,591) 3,730,084 8,322,621 8,323,032 411 90,000 223,639 214,277 9,262 2,312,596 1,286,364 311,961 974,403 415,000 9,018,260 8,668,367 349,893 2,817,596 10,528,163 9,194,606 1,333,557 (1,000,000) (1,000,000) 1,000,000) (87,512) (3,205,542) (1,871,574) 1,333,968 5,522,335 5,522,335 5,522,335 $ 5,434,823 $ 2,316,793 $ 3,650,761 $ 1,333,968 $ (1,871,574) (127,119) (403,441) 1,898,109 $ (504,025) .P CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - PROFESSIONAL SPORTS DEVELOPMENT For the Year Ended December 31, 2013 Revenues: Taxes: Professional sports development Intergovernmental Other Total revenues Expenditures: Culture and recreation: Other services and charges Other uses Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Budaet(GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis $ (198,765) 51,441 $ (147,324) Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) 600,000 600,000 597,111 (2,889) 87,801 87,801 80,594 (7,207) 687,801 687,801 677,705 (10,096) 776,671 776,671 776,470 201 100,000 100,000 100,000 876,671 876,671 876,470 201 (188,870) (188,870) (198,765) (9,895) 1,040,822 1,040,822 1,040,822 $ 851,952 $ 851,952 $ 842,057 $ (9,895) $ (198,765) 51,441 $ (147,324) CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECT FUNDS - COVELESKI STADIUM CAPITAL For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative} Revenues: Other $ 500 $ 500 $ 92 $ 408 Expenditures: j Culture and recreation: .,� Supplies Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Budaet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for encumbrances Net change in fund balance, GAAP basis 2,002 2,002 - - 1,538 (1,538) 2,002 3,540 (1,538) 500 (1,502) (3,448) (1,946) 26,758 26,756 26,758 $ 27,258 $ 25,256 $ 23,310 $ (1,946) $ (3,448) (4'0) 3,540 $ 52 v CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECT FUNDS -ZOO ENDOWMENT For the Year Ended December 31, 2013 Revenues: Other Net change in fund balances Fund balances - beginning Fund balances - ending Budget(GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis $ 176 (74) $ 102 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 2,900 $ 2,900 $ 176 $ . (2,724) 2,900 2,900 176 (2,724) 46,846 48,846 48,646 $ 51,746 $ 51,746 1 49,022 $ (2,724) $ 176 (74) $ 102 Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances $ 52,089 (823) (12,111) 28,417 Net change in fund balance, GAAP basis $ 67,572 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - PARK NONREVERTING CAPITAL For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services $ 3,000 $ 3,000 $ 4,105 $ 1,105 Other 2,200 2,200 14,791 12,591 Total revenues 5,200 5,200 18,897 13,697 Expenditures: Culture and recreation: Supplies - 149,495 128,051 21,444 "J Other services and charges - 24,950 11,850 13,100 "J Capital outlay 203,500 42,871 36,731 6,140 Total expenditures 203,500 217,316 176,632 40,684 Other financing sources (uses): Transfers in 196,300 198,300 209,824 11,524 Net change in fund balances - (13,816) 52,089 65,905 Fund balances - beginning 492,385 492,385 492,385 Fund balances - ending $ 492,385 $ 478,569 $ 544,474 $ 65,905 Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances $ 52,089 (823) (12,111) 28,417 Net change in fund balance, GAAP basis $ 67,572 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - CUMULATIVE CAPITAL DEVELOPMENT For the Year Ended December 31, 2013 Revenues: Taxes: Property Intergovernmental Other Total revenues OD Expenditures: General government: Other services and charges Capital outlay Other uses Total expenditure's Net change in fund balances Fund balances - beginning Fund balances- ending Budaet(GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis $ (49,970) (7,687) $ (57,657) Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 530,000 $ 530,000 $ 463,331 $ (66,669) 88,126 80,325 85,904 5,579 4,000 4,000 2,913 (1,087) 622,126 614,325 552,148 (62,177) 875,220 875,220 602,118 273,102 36,000 36,000 - 36,000 911,220 911,220 602,118 309,102 (289,094) (296,895) (49,970) 246,925 835,769 835,769 835,769 $ 546,675 $ 538,874 $ 785,799 $ 246,925 $ (49,970) (7,687) $ (57,657) J CD CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - CUMULATIVE CAPITAL IMPROVEMENT For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 403,000 $ 408,990 $ 421,457 $ 12,467 Other 25,100 25,100 25,122 22 Total revenues 428,100 434,090 446,578 12,488 Expenditures: General government: Other services and charges 367,575 367,575 367,575 - Net change in fund balances 60,525 66,515 79,003 12,488 Fund balances - beginning 97,720 97,720 97,72D Fund balances - ending $ 158,245 $ 164,235 $ 176,724 $ 12,488 BudQeUGAAP Reconciliation Net change in fund balance, budget basis $ 79,003 To adjust revenues for accruals (198) Net change in fund balance, GAAP basis $ 78,805 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECT FUNDS - MORRIS PERFORMING ARTS CENTER CAPITAL For the Year Ended December 31, 2013 Revenues: Charges for services Other Total revenues Expenditures: tD Culture and recreation: C Supplies Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals Net change in fund balance, GAAP basis $ 60,542 3,068 230 $ 63,840 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 100,000 $ 100,000 $ 100,535 $ 535 1,500 1,500 1,412 (88) 101,500 101,500 101,947 447 25,500 25,500 13,632 11,868 15,000 20,970 11,945 9,025 26,196 15,828 10,368 40,500 72,666 41,405 31,261 61,000 28,834 60,542 31,708 396,268 396,268 396,268 $ 457,268 $ 425,102 $ 456,810 $ 31,708 $ 60,542 3,068 230 $ 63,840 ,j CID CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUOGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - TIF DOWNTOWN For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes $ 3,650,000 $ 3,650,000 $ 2,590,808 $ (1,059,192) Intergovernmental 398,500 398,500 398,500 - Charges for services 34,000 36,000 34,021 (1,979) Other 479,747 608,754 434,777 (173,977) Total revenues 4,562,247 4,693,254 3,458,106 (1,235,148) Expenditures: Economic development: Other services and charges 2,750,755 3,520,474 3,448,671 71,803 Capital outlay 2,349,245 1,781,628 410,351 1,371,277 Total expenditures 5,100,000 5,302,102 3,859,022 1,443,080 Other financing sources (uses): Transfers in 6,100 5,959 (141) Net change in fund balances (537,753) (602,748) (394,957) 207,791 Fund balances - beginning 2,843,357 2,843,357 2,843,357 Fundbalances - ending $ 2,305,604 $ 2,240,609 $ 2,448,400 $ 207,791 BudoeHGAAP Reconciliation Net change in fund balance, budget basis $ (394,957) To adjust revenues for accruals 630,512 To adjust expenditures for accruals (4,190) To adjust expenditures for encumbrances 161,549 Net change in fund balance, GAAP basis $ 392,914 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - TIF LEIGHTON PLAZA For the Year Ended December 31, 2013 Revenues: Charges for services Other Total revenues ..i OD Economic N Economic development: Supplies Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances- ending Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals $ 37,672 (1,656) (12,273) Net change in fund balance, GAAP basis $ 23,743 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) 156,905 176,734 159,289 (17,445) 156,905 176,734 159,289 (17,445) 11,432 11,432 10,466 966 132,727 132,727 104,842 27,885 7,026 7,026 6,309 717 151,185 151,185 121,617 29,568 5,720 25,549 37,672 12,123 95,395 96,395 95,395 $ 101,115 $ 120,944 $ 133,067 $ 12,123 $ 37,672 (1,656) (12,273) Net change in fund balance, GAAP basis $ 23,743 j tD W CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - TIF - WEST WASHINGTON For the Year Ended December 31, 2013 Revenues: Taxes Other Total revenues Expenditures: Economic development: Other services and charges Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending BudceUGAAF Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances Net change in fund balance, GAAP basis $ 152,614 24,430 9,847 8,620 $ 195,511 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 440,000 $ 440,000 $ 493,608 $ 53,608 4,000 4,000 1,435 (2,565) 444,000 444,000 495,043 51,043 10,000 11,796 2,627 9,169 440,000 657,019 339,802 317,217 450,000 668,815 342,429 326,386 (6,000) (224,815) 152,614 377,429 451,729 451,729 451,729 - $ 445,729 $ 226,914 $ 604,343 $ 377,429 $ 152,614 24,430 9,847 8,620 $ 195,511 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - REDEVELOPMENT GENERAL For the Year Ended December 31, 2013 Revenues: Other j Expenditures: 00 0P Economic development: Other services and charges Net change in fund balances Fund balances - beginning Fund balances - ending BudgeUGAAP Reconciliation Net change in fund balance, budget basis $ (5,694) To adjust revenues for accruals (45) To adjust expenditures for accruals (6,072) Net change in fund balance, GAAP basis $ (11,811) Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative)_ $ 150 $ 150 $ 104 $ (46) 6,787 5,798 989 150 (6,637) (5,694) 943 31,443 31,443 31,443 $ 31,593 $ 24,806 $ 25,749 $ 943 BudgeUGAAP Reconciliation Net change in fund balance, budget basis $ (5,694) To adjust revenues for accruals (45) To adjust expenditures for accruals (6,072) Net change in fund balance, GAAP basis $ (11,811) 00 cn CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECT FUNDS - COMMUNITY REVITALIZATION ENHANCEMENT DISTRICT For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 740,000 $ 650,000 $ 244,481 $ (405,519) Other 1,000 1,000 418 (582) Total revenues 741,000 651,000 244,899 (406,101) Expenditures: Economic development: Other services and charges 873,949 873,949 458,949 415,000 Net change in fund balances (132,949) (222,949) (214,050) 6,899 Fund balances - beginning 223,587 223,587 223,587 Fund balances - ending $ 90,638 $ 638 $ 9,537 $ 8,899 Budoet/GAAP Reconciliation Net change in fund balance, budget basis $ (214,050) To adjust revenues for accruals (76) Net change in fund balance, GAAP basis $ (214,126) 00 C" CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - TIF NO. 1 - SOUTHSIDE DEVELOPMENT For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes $ 1,820,000 $ 1,820,000 $ 2,404,416 $ 584,416 Interfund transfers - - - - Other 2D,000 20,000 17,222 (2,778) Total revenues 1,840,000 1,840,000 2,421,638 581,638 Expenditures: Economic development: Other services and charges 7,500 806,455 775,069 31,386 Capital outlay 5,692,500 5,316,430 4,369,653 926,777 Total expenditures 5,700,000 6,122,885 5,164,722 958,163 Net change in fund balances (3,860,000) (4,282,885) (2,743,084) 1,539,801 Fund balances - beginning 5,394,777 5,394,777 5,394,777 Fundbalances - ending $ 1,534,777 $ 1,111,892 $ 2,651,692 $ 1,539,801 Budaet/GAAP Reconciliation Net change in fund balance, budget basis $ (2,743,084) To adjust revenues for accruals 64,080 To adjust expenditures for accruals 47,507 To adjust expenditures for encumbrances 787,956 Net change in fund balance, GAAP basis $ (1,843,541) RW �1 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - TIF NO. 3 - SOUTHSIDE DEVELOPMENT For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Other $ 1,346,000 $ 1,350,200 $ 1,329,971 $ (20,229) Expenditures: Economic development: Other services and charges 500,000 501,266 490,661 10,607 Net change in fund balances 846,000 848,932 839,310 (9,622) Fund balances - beginning 5,567,627 5,567,627 5,567,627 Fundbalances - ending $ 6,413,627 $ 6,416,559 $ 6,406,937 $ (9,622) Budget/GAAP Reconciliation Net change in fund balance, budget basis $ 839,310 To adjust revenues for accruals (8,961) To adjust expenditures for accruals (656) To adjust expenditures for encumbrances 656 Net change in fund balance, GAAP basis $ 830,349 j IDD OD CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - TIF - CENTRAL MEDICAL SERVICE AREA For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes $ 1,720,000 $ 1,720,000 $ 1,221,676 $ (498,324) Other 10,000 12,600 12,242 (358) Total revenues 1,730,000 1,732,600 1,233,919 (498,681) Expenditures: Economic development: Other services and charges 2,500 304,172 302,592 1,580 Capital outlay 3,597,500 4,466,372 1,959,020 2,507,352 Total expenditures 3,600,000 4,770,544 2,261,611 2,508,933 Net change in fund balances (1,870,000) (3,037,944) (1,027,693) 2,010,251 Fund balances - beginning (restated) 2,429,656 2,429,656 2,429,656 - Fundbalances - ending $ 559,656 $ (608,288) $ 1,401,963 $ 2,010,251 BudoeUGAAP Reconciliation Net change in fund balance, budget basis $ (1,027,693) To adjust revenues for accruals 413,600 To adjust expenditures for accruals 112,889 To adjust expenditures for encumbrances 401,004 Net change in fund balance, GAAP basis $ (100,200) 00 Co CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECT FUNDS - FOOTBALL HALL OF FAME CAPITAL For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Other $ 4,500 $ 4,542 $ 2,458 $ (2,084) Expenditures: Culture and recreation: Supplies 15,000 15,000 3,242 11,758 Other services and charges 162,527 164,322 68,803 95,519 Total expenditures 177,527 179,322 72,045 107,277 Net change in fund balances (173,027) (174,780) (69,587) 105,193 Fund balances - beginning 719,086 719,086 719,086 Fund balances - ending $ 546,059 $ 544,306 $ 649,499 $ 105,193 BudaeUGAAP Reconciliation Net change in fund balance, budget basis $ (69,587) To adjust revenues for accruals (1,045) To adjust expenditures for accruals 61,724 To adjust expenditures for encumbrances 8,908 Net change in fund balance, GAAP basis $ CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - MAJOR MOVES For the Year Ended December 31, 2013 Revenues: Other j Expenditures: Highways and streets: G Capital outlay Net change in fund balances Fund balances - beginning Fund balances - ending BudoeNGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances $ (2,076,528) (226,996) 58,103 1,323,730 Net change in fund balance, GAAP basis $ (921,691) Variance Actual With Final Budgetary Budget Budgeted Amounts _ Basis Positive _ Original Final Amounts (Negative) $ 528,662 $ 628,662 $ 500,882 $ (27,780) 2,280,000 3,395,846 2,577,410 818,436 (1,751,338) (2,867,184) (2,076,528) 790,656 7,896,696 7,896,696 7,896,696 - $ 6,145,358 1 5,029,512 $ 5,620,168 $ 790,656 $ (2,076,528) (226,996) 58,103 1,323,730 Net change in fund balance, GAAP basis $ (921,691) CC CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS -TIF- NORTHEAST DEVELOPMENT For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes $ 820,000 $ 820,000 $ 841,627 $ 21,627 Other 3,000 8,300 8,057 (243) Total revenues 823,000 828,300 849,684 21,364 Expenditures: Economic development: Other services and charges 20,000 80,655 66,634 14,021 Capital outlay 2,330,000 _ 2,308,340 2,308,340 Total expenditures 2,350,000 2,388,995 66,634 2,322,361 Net change in fund balances (1,527,000) (1,560,695) 783,050 2,343,745 Fund balances - beginning 2,219,623 2,219,623 2,219,623 Fund balances - ending $ 692,623 $ 658,926 $ 3,002 673 $ 2,343,745 Budoet/GAAP Reconciliation Net change in fund balance, budget basis $ 783,050 To adjust revenues for accruals (447) To adjust expenditures for accruals 8,865 To adjust expenditures for encumbrances 6,117 Net change in fund balance, GAAP basis $ 797,585 j CD IV CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - TIF - DOUGLAS ROAD For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes $ 320,000 $ 320,000 $ 323,939 $ 3,939 Other 1,000 1,000 454 (546) Total revenues 321,000 321,000 324,393 3,393 Expenditures: Economic development: Other services and charges 190,461 195,364 195,079 305 Capital outlay 259,539 259,398 259,398 Total expenditures 450,000 454,782 195,079 259,703 Net change in fund balances (129,000) , (133,762) 129,314 263,096 Fund balances - beginning 160,926 160,926 160,926 Fund balances - ending $ 31,926 $ 27,144 $ 290,240 $ 263,096 Budoet/GAAP Reconciliation Net change in fund balance, budget basis $ 129,314 To adjust revenues for accruals (247,646) To adjust expenditures for accruals 35,202 To adjust expenditures for encumbrances 4,360 Net change in fund balance, GAAP basis $ (78,770) j co W CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - TIF - NORTHEAST RESIDENTIAL For the Year Ended December 31, 2013 Revenues: Taxes Other Total revenues Expenditures: Economic development: Other services and charges Net change in fund balances Fund balances - beginning Fund balances - ending BudoeUGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals Net change in fund balance, GAAP basis $ 2,450,000 $ 2,450,000 $ 2,262,765 $ (187,235) 10,000 10,000 8,423 (1,577) 2,460,000 2,460,000 2,271,188 (188,812) 3,228,500 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 2,450,000 $ 2,450,000 $ 2,262,765 $ (187,235) 10,000 10,000 8,423 (1,577) 2,460,000 2,460,000 2,271,188 (188,812) 3,228,500 3,229,957 3,218,420 11,537 (768,500) (769,957) (947,232) (177,275) 3,501,311 3,501,311 3,501,311 $ 2,732,811 $ 2,731,354 $ 2,554,079 $ (177,275) $ (947,232) 209,740 180,214 $ (557,278) CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - CERTIFIED TECHNOLOGY PARK For the Year Ended December 31, 2013 Revenues: Other CID Expenditures: -A Economic development: Capital outlay Net change in fund balances Fund balances - beginning Fund balances - ending Budoet/GAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals Net change in fund balance, GAAP basis $ 2,866,234 (1,449,164) $ 1,417,070 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) $ 817,000 $ 2,861,027 $ 2,866,234 $ 5,207 817,000 2,866,234 5,207 2,861,027 816,362 816,362 816,362 $ 1,633,362 L_3,677,389 1 3,682,596 $ 5,207 $ 2,866,234 (1,449,164) $ 1,417,070 CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETAND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECT FUNDS - PALAIS ROYALE HISTORICAL PRESERVATION For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Other $ 16,125 $ 16,125 $ 15,561 $ (564) ...► Expenditures: Culture and recreation: (y� Other services and charges - 21,000 20,470 530 Capital outlay Total expenditures 21,000 20,470 530 Net change in fund balances 16,125 (4,675) (4,909) (34) Fund balances - beginning 58,304 58,304 58,304 Fund balances - ending $ 74,429 $ 53,429 $ 53,395 $ (34) Budoet/GAAP Reconciliation Net change in fund balance, budget basis $ (4,909) To adjust revenues for accruals 475 Net change in fund balance, GAAP basis $ (4,434) co O" CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS - AIRPORT URBAN ENTERPRISE ZONE For the Year Ended December 31, 2013 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes $ - $ - $ - $ - Other 1,000 1,300 1,289 (11) Total revenues 1,000 1,300 1,289 (11) Expenditures: Economic development: Other services and charges Net change in fund balances 1,000 1,300 1,289 (11) Fund balances- beginning 375,082 375,082 375,082 Fund balances - ending $ 376,082 $ 376,382 $ 376,371 $ (11) Budoet(GAAP Reconciliation Net change in fund balance, budget basis $ 1,289 To adjust revenues for accruals (535) Net change in fund balance, GAAP basis $ 754 PEACE IV Non Major Enterprise Funds 197 NONMAJOR ENTERPRISE FUNDS Consolidated Building - To account for the operation of the consolidated St. Joseph County/ South Bend Building Department. Parking Garage - To account for the operation and maintenance of the City's parking gar- ages. Solid Waste - To account for the provision of solid waste services. .Blackthorn Golf Course - To account for the operation and maintenance of the City's Blackthorn Golf Course. 198 —L CC CD CITY OF SOUTH BEND COMBINING STATEMENT OF NET POSITION - NONMAJOR ENTERPRISE FUNDS December 31, 2013 Assets Current assets: Cash and cash equivalents Investments Interest receivable Accounts receivable (net of allowance) Inventories Restricted assets: Cash and cash equivalents: Capital outlay accounts Cash with fiscal agent Investments: Capital outlay accounts Total current assets Noncurrent assets: Capital assets: .Land and construction in progress Other capital assets (net of accumulated depreciation) Total noncurrent assets Total assets Deferred outflows of resources: Unamortized loss on saledeaseback Total deferred outflow of resources Consolidated Parking Solid Blackthorn Building Garage Waste Golf Course Totals $ 38,670 $ 225,327 $ 795,275 $ 52,362 $ 1,111,634 112,610 657,340 591,239 38,766 1,400,155 163 949 120 53 1,285 14,663 1,520 421,007 4,444 441,634 - - - 22,038 22,038 118,441 - 118,441 552,342 - 552,342 88,053 88,053 166,306 685,136 2,566,477 117,663 3,735,582 1,132,020 - 448,469 1,580,489 63,92D 3,953,686 2,329,551 1,860,932 8,208,089 63,920 5,085,706 2,329,551 2,309,401 9,788,578 230,226 5,970,842 4,896,028 2,427,064 13,524,160 1,125,301 1,125,301 1,125,301 1,125,301 (Continued on next page) N O O CITY OF SOUTH BEND COMBINING STATEMENT OF NET POSITION - NONMAJOR ENTERPRISE FUNDS December 31, 2013 (Continued) Liabilities Current liabilities: Accounts payable Interfund payables: Interfund services provided and used Accrued payroll payable Compensated absences payable Performance deposits payable Current liabilities payable from restricted assets: Capital leases payable Accrued interest payable Total current liabilities Noncurrent liabilities: Advances from other funds Capital leases payable Total noncurrent liabilities Total liabilities Deferred inflows or resources: Unamoritzed gain on sale/leaseback Net Position Net investment in capital assets Restricted for capital asset outlays Unrestricted Total net position Consolidated Parking Solid Blackthorn Building Garage Waste Golf Course Totals 11,671 96,837 209,826 3,406 321,740 7,356 - - - 7,356 56,229 - 54,420 - 110,649 111,489 - 50,131 - 161,620 37,437 - - - 37,437 14,628 - 700,136 52,087 766,851 155 11,019 11,174 238,965 96,837 1,025,532 55,493 1,416,827 - - - 1,742,115 1,742,115 32,978 1,894,497 54,716 1,982,191 32,978 1,894,497 1,796,831 3,724,306 271,943 96,837 2,920,029 1,852,324 5,141,133 10,277 10,277 5,085,706 (265,082) 2,202,598 7,023,222 - 206,494 - 206,494 (41,717) 1,903,323 2,034,587 (1,627,858) 2,268,335. $ (41,717) $ 6,989,029 $ 1,975,999 $ 574,740 $ 9,498,051 N O CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2013 Operating revenues: Licenses and permits Parking fees Solid waste fees Golf course fees Other Total operating revenues Operating expenses: Operating and maintenance Administrative and general expense: Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Interest and investment revenue Interest expense Amortization expense Total nonoperating revenue (expenses) Income (loss) before contributions and transfers Transfers out Change in net position Total net position - beginning Total net position - ending Consolidated Parking Solid Blackthorn (607,774) Building Garage Waste Golf Course Totals $ 964,240 $ - $ $ $ 964,240 - 948,722 - - 948,722 - - 4,800,454 - 4,800,454 - - - 1,530,402 1,530,402 3,427 20,146 598,590 622,163 967,667 968,868 5,399,044 1,530,402 8,865,981 1,089,316 - 4,395,179 1,194,830 6,679,325 17,376 463,756 332,856 127,077 941,065 24,144 260,960 331,220 157,513 773,837 1,130,836 724,716 5,059,255 1,479,420 8,394,227 (163,169) 244,152 339,789 50,982 471,754 394 1,131 2,300 146 3,971 (979) - (32,333) (18,093) (51,405) (560,340) (560,340) (585) (559,209) (30,033) (17,947) (607,774) (163,754) (315,057) 309,756 33,035 (136,020) (207,879) (207,879) (163,754) (315,057) 309,756 (174,844) (343,899) 122,037 7,304,086 1,666,243 749,584 9,841,950 $ (41,717) $ 6,989,029 1 1,975,999 $ 574,740 $ 9,498,051 CITY OF SOUTH BEND COMBINING STATEMENT OF CASH FLOWS - NONMAJOR ENTERPRISE FUNDS For The Year Ended December 31, 2013 Consolidated Parking Solid Blackthom Building Garage Waste Golf Course Totals Cash flows from operating activities: Receipts from customers and users $ 953,561 $ 968,614 $ 5,424,977 $ 1,525,958 $ 8,873,110 Payments to suppliers (107,851) (435,292) (2,664,790) (709,098) (3,917,031) Payments to employees (865,254) - (1,664,959) (609,143) (3,139,356) Payments for interfund services used (22,417) (23,700) (386,520) (6,136) (438,773) Net cash provided (used) by operating activities (41,961) 509,622 708,708 201,581 1,377,950 Cash flows from noncapital financing activities: Principal paid on interfund loan (10,759) (10,759) Transfers to other funds (207,879) (207,879) Net cash provided (used) by noncapital financing activities - (218,638) (218,638) Cash flows from capital and related financing activities: N Acquisition and construction of capital assets - (483,315) (1,696,427) (2,179,742) N Proceeds from capital debt issued 4,094 - 800,686 - 804,780 Principal paid on capital debt (13,919) - (614,111) (666,170) (1,294,200) Interest paid on capital debt (990) - (33,841) (25,636) (60,467) Net cash provided (used) by capital and related financing activities (10,815) (483,315) (1,543,693) (691,806) (2,729,629) Cash flows from investing activities: Investments sold 13,895 - 135,977 202,630 352,502 Investments purchased - (125,628) (87,986) (38,428) (252,042) Interest received 393 858 3,555 352 5,158 Net cash provided (used) by investing activities 14,288 (124,770) 51,546 164,554 105,618 Net decrease in cash and cash equivalents (38,488) (98,463) (783,439) (544,309) (1,464,699) Cash and cash equivalents, January 1 (Including $551,638 and $41 for the revenue bond covenants and capital outlays, respectively, reported in restricted accounts) 77,158 323,790 2,249,497 596,671 3,247,116 Cash and cash equivalents, December 31 (Including $118,441 for capital outlays reported in restricted accounts) $ 38,670 $ 225,327 $ 1,466,058 $ 52,362 $ 1,782,417 (Continued on next page) CITY OF SOUTH BEND COMBINING STATEMENT OF CASH FLOWS- NONMASOR ENTERPRISE FUNDS For The Year Ended December 31, 2013 (Continued) Consolidated Parking Solid Blackthorn Building Garage _ Waste Golf Course Totals Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) $ (163,169) $ 244,152 $ 339,789 $ 50,982 $ 471,754 Adjustments to reconcile operating income (loss) to N net cash provided by operating activities: O Depreciation expense 24,144 260,960 331,220 157,513 773,837 W Bad debt expense - - 75,204 - 75,204 (Increase) decrease in assets: Accounts receivable (14,104) (254) (53,605) (4,444) (72,407) Interfund receivable - 4,333 - 4,333 Inventories - - - (3,965) (3,965) Increase (decrease) in liabilities: Accounts payable 10,160 4,764 67,810 1,662 84,396 Interfund payable 5,903 - (53,664) (167) (47,928) Accrued payroll payable 30,018 - 3,034 - 33,052 Compensated absence payable 65,087 (5,413) 59,674 Total adjustments 121,208 265,470 368,919 150,599 906,196 Net cash provided (used) by operating activities $ (41,961) $ 509,622 $ 708,708 $ 201,581 $ 1,377,950 U PEACE 1865 V Internal Service Funds 204 INTERNAL SERVICE FUNDS Liability Insurance Premium Reserve - To account for expenses related to maintaining the City's self- funded liability insurance including administrative costs, claims and premiums. Funding is provided by assessments to certain other City funds. Self- Funded Employee Benefits - To account for employer and employees' contributions for a medical insurance plan. Central Services - To account for expenses related to fuel, vehicle repairs and various supplies provided to City departments on a cost- reimbursement basis. Police Take Home Vehicle - To account for expenses associated with claims arising from use of program vehicles occurring while officers are not on duty. Funding is provided by officers participating in the program. Unemployment Compensation Insurance - To account for payment of unemployment claims to the Indiana Department of Workforce Development. Financing is provided by• allocating costs to user departments to cover the estimated costs of claims. 205 IV CD CITY OF SOUTH BEND COMBINING STATEMENT OF NET POSITION - INTERNAL SERVICE FUNDS December 31, 2013 Liability Self - Insurance Funded Police Unemployment Premium Employee Central Take Home Compensation Reserve Benefits Services Vehicle Insurance Totals Assets Current assets: Cash and cash equivalents $ 1,321,474 $ 1,462,227 $ 373,521 $ 115,431 $ 66,265 $ 3,338,918 Investments 3,655,105 4,189,527 1,089,665 336,743 193,317 9,664,357 Interest receivable 5,562 6,050 1,551 485 279 13,927 Accounts receivable - 7,928 31,555 - 39,463 Interfund receivables: Interfund services provided and used - - 3,135 - - 3,135 Inventories 859,536 859,536 Total current assets 5,182,141 5,665,732 2,358,963 452,659 259,861 13,919,356 Capital assets: Other capital assets (net of accumulated depreciation) 40,986 1,338,554 1,379,540 Total assets _5,223,127 5,665,732 3,697,517 452,659 259,861 15,298,896 Liabi ities Current liabilities: Accounts payable 4,525 1,118,314 623,083 - 24,693 1,770,615 Interfund payables: Interfund services provided and used - 1,487 861 - - 2,348 Accrued payroll payable 5,869 - 195,632 - - 201,501 Compensated absences 12,007 - - - - 12,007 Capital leases payable - - 5,802 - - 5,802 Interest payable - - 136 - - 136 Estimate of unfled claims 2,791,134 100,000 - 2,891,134 Total current liabilities 2,813,535 1,219,801 825,514 24,693 4,883,543 Noncurrent liabilities: Capital leases payable - 6,266 6,268 Total liabilities 2,813,535 1,219,801 831,782 24,693 4,889,811 Net Position Investment in capital assets 40,986 - 1,326,484 - - 1,367,470 Unrestricted 2,368,606 4,445931 1,539,251 452,659 235,168 9,041,615 Total net position $ 1.409,592 $ 4,445,931 $ 2,865,735 $ 452,659 $ 235,168 $ 10,409,085 CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2013 Liability Self- Insurance Funded Police Unemployment Premium Employee Central Take Home Compensation Reserve Benefits Services Vehicle Insurance Totals Operating revenues: Employee /employer contributions $ 2,988,576 $ 11,857,011 $ - $ 123,413 $ 252,383 $ 15,221,383 Charges for sales and services - 7,199,304 - - 7,199,304 Other 2,512 9,798 12,310 Total operating revenues 2,991,086 11,857,011 7,209,102 123,413 252,383 22,432,997 Operating expenses: IV Operation and maintenance - - 7,242,686 - 7,242,586 Administration 202,935 565,535 201,148 63,700 - 1,033,318 .J Insurance claims and premiums 44,210 13,583,715 - 75,700 13,703,625 Depreciation 8,006 107,775 115,781 Total operating expenses 255,151 14,149,250 7,551,509 63,700 75,700 22,095,310 Operating income (loss) 2,735,937 (2,292,239) (342,407) 59,713 176,683 337,687 Nonoperating revenues (expenses): Interest and investment revenue 10,733 15,346 1,514 804 293 28,690 Interest expense 1,396 1,396 Total nonoperating revenue (expenses) 10,733 15,346 2,910 804 293 30,086 Change in net position 2,746,670 (2,276,893) (338,497) 60,517 176,976 367,773 Total net position - beginning (337,078) 6,722,824 3,205,232 392,142 58,192 10,041,312 Total net position - ending $ 2,409,592 L_4,445.931 $ 2,865,735 $ 452,659 $ 235,168 L10,409,086 CITY OF SOUTH BEND COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS For the Year Ended December 31, 2013 Liability Self - Insurance Funded Police Unemployment Premium Employee Central Take Home Compensation Reserve Benefits Services Vehicle Insurance Totals Cash flows from operating activities: Receipts from customers and users $ 2,991,249 $ 12,131,296 $ 78,107 $ 123,413 $ 252,383 $ 15,576,448 Receipts from inlerfund services provided - 1,487 7,668,270 - - 7,669,757' Payments to suppliers (3,049,608) (13,924,879) (4,847,679) (63,700) (65,443) (21,951,309) Payments to employees 2,409 (2,473,255) (2,470,846) Payments for interfund services used (12B) 567 439 Net cash provided (used) by operating activities (56,078) (1,792,096) 426,010 59,713 186,940 (1,175,511) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (40,986) (53,980) - - (94,966) Proceeds from sale of capital assets 18,552 - 18,552 Principal paid on capital debt - (1,754) (1,754) Interest paid on capital debt (42) (42) Net cash provided (used) by capital and related financing activities (22,434) (55,776) (78,210) Cash flows from investing activities: Sale of Investments - 411,329 - 411,329 Purchases of Investments (594,749) - (411,753) (93,211) (148,213) (1,247,926) Interest received 9,318 15,150 2,221 629 71 27,389 Net cash provided (used) by investing activities (585,431) 426,479 (409,532) (92,582) (148,142) (809,208) Net increase (decrease) in cash and cash equivalents (663,943) (1,365,617) (39,298) (32,869) 38,798 (2,062,929) Cash and cash equivalents, January 1 1,985,417 2,827,844 412,819 148,300 27,467 5,401,847 Cash and cash equivalents, December 31 $ 1,321,474 $ 1,462,227 $ 373,521 $ 115,431 $ 66,265 $ 3,338,918 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 2,735,937 $ (2,292,239) $ (342,407) $ 59,713 $ 176,683 $ 337,687 Adjustments to reconcile operating Income (loss) to net cash provided (used) by operating activities: Depreciation expense 8,006 - 107,775 - - 115,781 (Increase) decrease in assets: Accounts receivable 161 274,285 875 275,321 Interfund receivables (128) - 536,400 536,272 Inventories - - (56,996) (56,996) Increase (decrease) in liabilities: Accounts payable (9,121) 224,371 180,590 10,257 406,097 Interfund payables - 1,487 567 - 2,054 Accrued payroll payable 352 115,664 116,016 Compensated absences payable 2,057 (116,458) (114,401) Estimated unfiled claims (2,793,342) (2,793,342) Total adjustments (2,792,015) 500,143 768,417 10,257 (1,513,198) Net cash provided (used) by operating activities $ (56,076) $ (1,792,096) 1 426,010 $ 59,713 $ 186,940 $ (1,175,511) �. PEACE~ VI Fiduciary Funds 209 FIDUCIARY FUNDS Pension Trust Funds 1925 Police Pension - To account for the provision of retirement and disability benefits to police officers hired prior to May 1, 1977. Financing is provided by mandatory contributions by active members, and state pension relief distributions. 1937 Firefighters' Pension - To account for the provision of retirement and disability benefits to fire- fighters hired prior to May 1, 1977. Financing is provided by mandatory contributions by active members and state pension relief distributions. Agency Funds Payroll - To account for the payroll of City employees and pension benefits of the Police and Firefighters' Pension Funds. Gross payroll and pension bene- fits are treated as expenditures in other City funds and transferred into this fund, which serves as a clearing account. Morris Palais Royale Box Office - To account for Morris Entertainment Center and Palais Royale event advance deposits and related expenses. 210 IV j CITY OF SOUTH BEND COMBINING STATEMENT OF FIDUCIARY NET POSITION - PENSION TRUST FUNDS December 31, 2013 1937 Total 1925 Police Firefighters' Pension Pension Pension Trust Funds Assets Cash and cash equivalents $ 435,434 $ 239,066 $ 674,500 Investments 1,270,283 697,421 1,967,704 Receivables: Interest 1,845 1,018 2,863 Total assets 1,707,562 937,505 2,645,067 Liabilities Current liabilities: Accounts payable - 12,000 12,000 Accrued payroll payable 620 620 Total liabilities 12,620 12,620 Net Position Net position held in trust for: Employees' pension benefits $ 1,707,562 $ 924,885 $ 2,632,447 N N CITY OF SOUTH BEND COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - PENSION TRUST FUNDS For the Year Ended December 31, 2013 1 1937 Total 1925 Police Firefighters' Pension Pension Pension Trust Funds Additions Contributions: On behalf $ 5,863,697 $ 5,035,292 $ 10,898,989 Plan members 881 - 881 Other 4,854 4,854 Total contributions 5,869,432 5,035,292 10,904,724 Net investment income: Interest 2,355 1,164 3,519 Total additions 5,871,787 5,036,456 10,908,243 Deductions Benefits 6,463,447 5,458,690 11,922,137 Administrative expense 11,300 1,212 12,512 Total deductions 6,474,747 5,459,902 11,934,649 Changes in net position (6D2,960) (423,446) (1,026,406) Net position - beginning 2,310,522 1,348,331 3,658,853 Net position - ending $ 1,707,562 $ 924,885 $ 2,632,447 N j W CITY OF SOUTH BEND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - AGENCY FUNDS For the Year Ended December 31, 2013 Assets: Cash and cash equivalents, January 1 Additions Deductions Cash and cash equivalents, December 31 Total assets, December 31 Liabilities Accrued payroll and withholdings payable, January 1 Additions Deductions Accrued payroll and withholdings payable, December 31 Customer deposits, January 1 Additions Deductions Customer deposits, December 31 Total liabilities, December 31 Morris Total Palais Royale Agency Payroll Box Office Funds $ 1,054,365 $ 1,383,306 $ 2,437,671 100,859,874 3,336,240 104,196,114 (101,615,542) (3,379,948) (104,995,490) 298,697 1,339,598 1,638,295 $ 298,697 $ 1,339,598 1 1,638,295 $ 1,054,365 $ - $ 1,054,365 100,859,874 - 100,859,874 (101,615,542) ' (101,615,542) 298,697 - 298,697 1,383,306 1,383,306 3,336,240 3,336,240 (3,379,948) (3,379,948) 1,339,598 1,339,598 $ 298,697 $ 1,339,598 $ 1,638,295 T 865 VII Statistical Section 214 FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the City of South Bend's financial position and performance have changed over time. 215 N C" Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net position Business -type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business -type activities net position City of South Bend, Indiana Net Position by Component Last Tcn Fiscal Years 2004 2005 2006 I 2007 2008 2009 2010 2011 2012 2013 7,383,902 35,777,247 208,509,577 200,634,954 178,178,047 178,483,535 186,771,216 196,265,413 210,282,574 192,190,446 1,966,388 6,138,257 5,225,642 5,370,627 11,077,687 12,825,227 8,840,610 9,354,772 8,050,418 7,990,172 59,250,281 26,957,659 24,900,036 47,150,229 56,786,214 82,877,695 96,539,932 82,271,482 74,298;231 86413,227 68,600,571 68,873,163 238,635,255 253,155,810 246,041,948 274,186,457 292.151,758 287,891,667 292,631,223 286,593,845 93,370,899 94,833,960 97,670,533 112,194,451 124,705,327 119,607,643 122,108,095 103,463,004 113,193,929 114,506,252 13,254,447 17,942,700 22,535,858 8,273,257 8,630,542 14,075,339 13,320,967 12,937,988 29,259,933 48,267,664 19,015 375 8,751,584 7 168 852 15,793,782 9,209,917 12,597 138 19,262,192 45,733,630 26,957,505 7,906,258 125,640,721 121,528,244 127,375,243 136,261,490 142,545,786 146,280,120 154,691,254 162,134,622 169,411,367 170,680,174 Primary government Invested in capital assets, net of related debt 100,754,801 130,611,207 306,180,110 - 312,829,405 302,883,374 298,091,178 308,879,311 299,728,417 323,476,503 306,696,698 Restricted 15,220,835 24,080,957 27,761,500 13,643,884 19,708,229 26,900,566 22,161,577 22,292,760 37,310,351 56,257,836 Unrestricted 78 265,656 35 709,243 32,068 888 62,944,011 65,996,131 95,474 833 115 802,124 128,005,112 101,255,736 94,319,485 Total primary government net position 194,241,292 190,401,407 366,010,498 389,417,300 388,587,734 420,466,577 446,843,012 450,026,289 462,042,590 457,274,019 Source- City of South Bend Comprehensvie Annual Financial Reports (includes prior period adjustments) (1) The City implemented the retroactive reporting ofinfrastructme assets required by GASB Statement No. 34 during 2006. Net position is defined as the difference between total assets and deferred outflows of resources less total liabilities and deferred inflows of resources and can generally be thought of as the net worth of the City of South Bend. City of South Bend, Indiana Changes in Net Position Last Ten Fiscal Years 2004 2005 2006 2007 2008 2009 1010 2011 2012 2013 Expenses Governmental activities: General government (17,523,559) (15,033,018) (17,194,920) (13,680,203) (10,253,389) (7,903,378) (8,261,861) (16,783,351) (13,788,310) (13,200,898) Public safety (45,799,395) (72,450,941) (56,600,175) (52,751,974) (49,728,256) (50,800,573) (62,106,991) (73,530,442) (69,977,237) (76,023,819) Highways and streets (9,855,890) (9,010,971) (21,813,189) (17,904,129) (22,292,012) (15,042,344) (9,526,537) (7,574,003) (14,639,158) (20,915,815) Health and welfare (102,314) (75,352) (114,131) (75,000) (75,000) 0 0 0 0 0 Culture and recreation (13,689,893) (8,840,970) (14,994,300) (16,454,667) (18,311,807) (17,981,839) (16,036,194) (15,566,794) (21,724,589) (26,846,471) N Economic development (18,102,343) (22,436,802) (18,813,636) (18,206,948) (27,299,233) (4,335,618) (30,744,012) (34,648,975) (20,217,987) (10,069,690) Interest on long -term debt -iotal (6,209,012) (5,943,021) (5,841,032) (5,859,102) (7,080,166) (8,049,610) (7,339,548) (6,798,531) (6,134,406) (5,961,124) governmental activities expenses 111 1,282,406 (133,791,075) (135,371,383) (124,932,023) (]35,039,863) (104,113,362) (134,015,143) (154,902,096} (146,481,687) (153,017,817) Business -type activities: Water . (12,275,029) (12,447,141) (11,916,504) (13,061,750) (13,492,744) (12,584,679) (12,525,246) (11,972,840) (12,228,014) (15,221,865) Wastewater (16,125,258) (18,452,785) (16,972,401) (18,295,813) (23,020,991) (27,047,143) (21,403,663) (22,260,005) (23,809,975) (26,390,790) Civic Center (3,592,627) (3,478,359) (3,355,531) (3,490,103) (3,562,285) (3,488,266) (2,989,586) (3,100,484) (2,929,268) (4,330,656) Building department (1,134,986) (1,047,007) (1,102,164) (1,090,327) (1,108,940) (1,113,867) (930,120) (871,299) (909,376) (1,131,815) Parking (1,739,235) (1,165,502) (1,261,942) (1,444,146) (1,466,200) (1,471,960) (1,438,288) (1,467,646) (1,721,655) (1,285,056) Solid waste (4,015,831) (4,920,464) (4,187,706) (4,072,910) (4,299,846) (4,036,001) (4,204,056) (4,962,157) (5,118,806) (5,091,588) Golfcourse (1,778,107) (1,736,939) (1,811,757) (1,811,801) (1,829,122) (1,881,982) (1,995,556) (1,689,042) (1,841,498) (1,497,51 Total business -type activities net expenses (40,661,073) (43,248,197) (40,608,005) (43,266,850) (48,780,128) (51,623,898) (45,486,515) (46,323,473) (48,559,092) (54,949,283) Total primary government net position (151,943,479 (177,039,272) (175,979,388) (168,198,873) (183,819191) (155,737,260) (179,501,658) (201,225,569} (195,040,779) (207,467,100) Changes in net assets is defined as the incremental difference between total assets and total liabilities as a result of operations during the fiscal year. Governmental activities: Charges for services: General government Public safety Highways and streets Economic development Culture and recreation Operating grants and contributions Capital grants and contributions Total governmental activities program revenues !lusiness -type activities: Co Charges for services: Water Wastewater Civic Center Building Department Parking Solid Waste Golf Course Operating grants and contributions Capital grants and contributions Total business -type activates program revenues Total primary government program revenues Net(Exuense) /Revenue Governmental activities Business -type activities Total primary government net expense City of South Bend, Indiana Changes in Net Position, Last Ten Fiscal Years (continued) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $6,054,637 $148,150 $6,883,104 $6,553,121 $6,647,223 $6,855,830 $6,964,269 $1,165,018 $2,100,103 $1,939,865 2,075,522 2,239,368 5,132,285 4,228,405 5,035,433 5,051,827 4,916,958 4,096,566 5,079,182 5,210,272 0 135,313 44,250 0 0 5,152 28,110 227,000 291,840 451,363 168,523 516,570 562,807 604,873 636,722 332,454 283,420 683,503 271,366 444,839 1,044,512 3,784,176 4,940,629 5,057,076 5,300,818 5,063,896 4,995,049 4,681,536 5,224,543 5,112,019 10,718,149 12,916,362 12,452,463 15,628,287 11,356,682 12,199,444 29,467,573 32,091,246 24,937,596 21,466,622 10,326,795 9,447,723 13,793,363 960,502 1,176,783 780,137 1,472,233 2,328,468 2,468,120 1,867,213 30,388,138 29,187,662 43,808,901 33,032,264 30,153,661 30,288,740 48,127,612 45,273,337 .40,372,750 36,492,193 12,513,333 12,130,549 14,757,819 15,336,891 14,926,833 14,151,289 14,194,442 14,080,592 15,409,171 15,102,462 14,773,651 14,830,607 18,725,903 21,349,401 23,567,973 25,012,163 26,001,156 29,407,263 30,657,698 32,474,743 1,837,763 1,604,352 3,113,264 3,371,553 3,370,802 2,873,966 2,869,010 2,894,913 2,680,076 3,463,813 983,102 1,125,312 1,039,405 1,078,258 1,169,788 977,050 875,481 899,397 1,000,381 967,667 768,503 763,581 799,350 861,307 1,003,889 1,070,519 1,047,784 1,071,078 921,044 968,868 3,964,487 3,764,229 4,177,897 4,187,821 4,343,120 4,759,530 4,745,547 4,830,342 5,081,991 5,399,044 1,689,984 1,546,244 1,565,649 1,512,150 1,493,519 1,557,951 1,479,415 1,392,999 1,669,372 1,530,402 1,165,243 1,282,780 0 0 0 0 0 0 0 0 118,953 1,479,581 1,413,861 1,253,332 1,209,380 4,038,412 1,889,165 4,291,731 2,010,253 697,916 37,815,019 38,527,235 45,593,148 48,950,713 51,085,304 54,440,880 53,102,000 58,868,315 59,429,986 60,604,915 68,203,157 67,714,897 89,402,049 81,982,977 81,238,965 84,729,620 101.229,612 104,141,652 99,802,736 97,097,108 (103,402,937) (106,183,721) (81,123,122) (102,007,599) (73,959,701) (103,726,403) (106,774,484) 45,273,337 (106,108,937) (116,525,624) (5,433,178) (2,080,770) 2,326,298 170,585 (538,594) 8,954,365 6,778,527 58,868,315 10,870,894 5,655,632 (108,836,115) (108,264,491) (78,796,824) (101,837,014) (74,498,295) (94,772,038) (99,995,957) 104.141,652 (95,238,043) (110,869.992) General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes County Option Income Tax Economic Development Income Tax Professional Sports Development Tax Community Revitalization District Tax Unrestricted grants and contributions Unrestricted Investment earnings Other Transfers J�Jotal governmental activities j mousiness -type activities: Unrestricted Investment earnings Other Transfers Total business -type activities Total primary government Special Item (Governmental activities): Well field contamination settlement Change in Net Position Governmental activities Business -type activities Total primary government Excludes prior period adjustments City of South Bend, Indiana Changes in Net Position, Last Ten Fiscal Years (continued) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $62,279,784 $72,743,697 $68,256,602 $77,120,683 $76,109,499 $73,882,128 $77,315,641 $76,445,349 $71,775,415 $72,018,650 7,001,198 5,695,618 6,410,405 8,072,623 5,813,846 10,270,179 11,502,052 13,219,723 13,748,824 13,739,325 3,448,688 3,464,152 4,013,475 4,681,134 3,788,754 4,536,245 7,335,113 8,044,773 8,324,878 8,177,352 378,099 385,553 336,281 435,791 453,268 522,788 597,406 558,268 633,904 649,996 655,269 965,052 1,000,000 1,000,000 955,315 605,623 416,149 733,100 653,185 244,623 5,133,838 5,160,298 5,063,541 4,032,300 5,664,011 7,597,883 4,883,081 3,964,336 3,891,810 5,893,924 1,660,720 3,543,469 4,762,484 6,247,113 4,961,410 859,135 868,023 1,050,768 1,317,443 762,270 598,600 10,790,170 3,520,138 5,016,902 2,007,821 2,781,368 2,627,341 3,483,054 6,623,313 14,285,314 14,873 33,589 44,200 3,735 34,970 (645,992) (648,823) 3,041,176 3,879,721 4,525,187 81 171,069 102,781 598 93,407,126 106,610,281 99,788 894 100,409,357 104,895,983 110,540,547 110,848 493 120,296 641 362,676 745,966 906,056 1,301,348 1,514,287 271,360 146,826 206,409 285,572 138,362 0 1,990,515 0 0 0 0 0 0 0 0 (14,873) (33,589) (44,200) (3,735) (34,970) 645,992 648,823 (3,041,176) (3,879,721) (4,525,187) 347,803 2,702,892 861,856 1,297,613 1,479,317 917,352 795,649 (2,834,767) (3,594,149) (4,386,825) 81,518,872 105,484,490 94,268,982 107,907,894 101,268,211 101,326,709 105,691,632 107,705,780 107,254,344 115,909,816 4,462,214 (25,012,652) 21,658,476 (8,600,473) 32,650,580 524,705 (6,365,127) 150,169,320 911,788 4,739,556 3,771,016 (1,732,967) 5,029,190 1,032.441 759,019 10,433,682 7,695,879 59,663,964 9,710,075 7,276,745 1,268,807 ($26,745,619) $26,687,666 ($7,568032) $33,409.599 $10,958,387 $1.330,752 S209.831284 $10,621,863 $12,016,301 $5,039,823 Source : City of South Bend Comprehensive Annual Financial Reports City of South Bend, Indiana Fund Balances, Governmental Funds Last Ten Fiscal Years Other Governmental Funds 2004 2005 2006 2007 2008 2009 2010 2011(1) 2012 2013 General fund 39,224,425 38,498,351 34,251,520 36,374,517 60,213,915 56,819,802 62,230,229 - - - Reserved 2,365,669 10,581,739 4,162,853 2,213,970 3,245,271 1,516,159 1,824,454 - - - Unreserved 19,656,024 18,162,455 21,688,442 21,546,783 24,171,313 23,102,296 26,912,688 - - Nonspendable 43,815,737 - - 66,593,906 - - - 1,115,025 958,341 656,848 Restricted - - (7,828) - - - - 327,267 - - Committed - - - - - - - - 22,828,476 Assigned - - - - - - - 255,287 165,389 516,506 Unassigned - - - - - - - 26,233,637 27,671,353 26,495 559 Total - General Fund 22,021,693 28,744,194 25,851,295 23,760,753 27,416,584 24,618,455 28,737,142 27,931,216 282795,083 27,668,913 Other Governmental Funds Reserved 39,224,425 38,498,351 34,251,520 36,374,517 60,213,915 56,819,802 62,230,229 - - - Unreserved, reported in: N N Special revenue funds 10,159,432 14,134,371 19,348,846 25,703,180 32,054,329 36,398,024 31,996,398 - O Capital projects funds 43,815,737 40,624,644 60,447,079 66,593,906 87,571,056 78,214,132 85,237,947 - - - Debt service funds - - (7,828) - - - - - - Nonspendable - - - - - - 37,036,839 38,857,510 22,828,476 Restricted - - - - - - 44,754,037 78,326,567 95,387,879 Committed - - - - - - - 11,829,074 11,142,045 20,697,026 Assigned - - - - - - 77,460,284 35,180,652 35,455,190 Unassigned - - (2,777,374) (4,219,066) (4,852,169) Total - Other Governmental Funds 93,199,594 93,257,366 114,039,617 128,671,603 179,839,300 171,431,958 179,464,574 168,302,860 159,287,708 169,516,402 Grand Total - Governmental Funds 115,221,287 122,001,560 139,890,912 152,432,356 207,255,884 196,050,413 208,201,716 1969234,076 188,082,791 191,185,315 (1) - The City of South Bend adopted Statement No. 54 of the Governmental Accounting Standards Board requiring new classfications for Fund Balance reporting for fiscal year 2011. Source: City of South Bend Comprehensive Annual Financial Reports N N r Revenues Taxes Licenses, fees and permits Fines and forfeits Charges for services Intergovernmental Investment earnings Other revenues Total revenues ]Expenditures General government Public Safety Highways and Streets Health and Welfare Culture and Recreation Economic Development Capital Outlay Debt Service Interest and Fiscal Charges Principal Total expenditures Excess of revenues over(under)expenditures Other Financing Sources (Uses) Proceeds frotn debt issuance Premium (discount) on debt issuance Proceeds from refunding Payments to refunded bond escrow agent Transfers in Transfers out Other Total other t"mancing sources (uses) Special Item: Well field contamination settlement Net change in fund balances Debt service as a percentage of noncapital expenditures (1) Excludes prior period adjustments City of South Bend, Indiana Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 75,289,946 78,650,044 84,049,414 88,695,023 96,930,953 89,139,585 101,785,765 99,001,213 95,136,206 94,829,947 223,006 246,780 186,470 173,604 177,329 206,594 192,397 190,943 189,714 177,019 302,376 245,680 444,861 437,732 412,707 423,981 409,775 636,749 334,767 660,841 15,187,711 15,293,779 16,931,744 15,832,139 17,030,160 16,678,584 16,585,634 13,990,267 12,442,553 12,320,498 17,968,454 18,665,828 31,275,541 21,400,166 18,196,118 20,577,464 35,822,886 34,419,714 31,297,526 29,227,759 1,668,050 3,543,469 4,762,484 6,248,605 4,962,768 859,135 868,023 1,050,768 1,317,443 762,270 2,732,127 10 791 555 3,414,731 5,039,373 2 007 821 3,046,791 2 677 796 3,587,518 6 660 875 13 174,140 113,371 670 127 437,135 141 065,245 137,826 642 139,717,856 130,932 134 158 342,276 152 877172 147,379,084 151,152 474 6,814,675 7,828,275 11,244,734 9,611,354 6,902,426 5,969,141 5,214,424 6,680,855 6,390,585 7,154,965 44,371,673 49,010,645 51,050,640 53,203,005 50,413,055 48,790,068 62,586,177 69,612,754 67,138,414 64,041,549 12,638,026 9,874,281 13,583,761 13,257,781 13,369,611 11,716,810 10,702,555 5,079,041 9,288,682 9,769,942 75,000 75,000 75,000 75,000 75,000 0 0 0 0 0 14,347,497 14,226,463 13,849,622 13,469,798 14,542,481 12,733,094 12,841,596 13,816,699 18,557,986 13,956,025 13,208,131 7,531,650 9,752,254 7,710,242 9,726,718 8,938,134 17,408,376 9,698,611 3,543,180 8,068,458 30,722,396 29,299,053 16,391,192 17,293,302 26,695,208 37,485,105 21,952,522 46,691,030 39,984,127 30,748,663 5,287,658 5,793,386 6,144,611 5,718,572 7,258,201 8,053,995 7,499,683 7,186,494 6,734,305 6,113,043 5,597,717 7 074 887 7,435,722 7 870 166 9,040,095 9 276 363 12,552,691 13,632,195 10,922,721 13 008,105 133,062,773 130,713 640 129,5271536 128 209,220 138,022 795 142,962 710 150 758,014 172 397,679 162,460 000 152,860,750 (19,691,103) (3,276,505) 11,537,709 9,617,422 1,695,061 (12,030,576) 7,584,262 (19,520,507) (15,080,916) (1,708,276) 613,767 10,023,189 14,050,557 2,920,287 45,622,808 1,771,318 5,280,314 3,478,239 5,660,897 7,801,455 0 0 0 0 1,626,186 80,950 146,030 26,877 1,236,364 21,576 0 0 0 0 0 7,210,000 5,327,775 38,307,431 13,595,000 3,990,000 0 0 (8,371,711) 0 0 (7,591,171) (5,538,255) (37,300,856) (14,613,147) (4,376,769) 6,571,247 8,332,742 8,928,540 7,872,575 10,574,625 8,687,172 16,314,577 22,483,564 25,368,413 26,365,239 (6,556,374) (8,299,153) (8,884,340) (7,868,840) (10,539,655) (9,333,164) (16,963,400) (19,442,388) (21,488,692) (21,840,052) 0 0 0 0 628,640 10,056,778 5,723,046 2 924,022 47,283,964 825,105 4,567,041 7 552 867 9,758,835 11 961,449 0 0 0 0 0 4,462,214 0 0 0 0 (19,062,463) 6,780,273 17,260,755 12,541,444 48,979,025 (6,743,257) 12,151,303 (11,967,640) (5,322,081) 10,253,173 9.8% 11.1% 10.8% 11.4% 12.1% 17.6% 15.4% 13.8% 12.9% 13.4% (1) Formula = Deb service payments (principal and interest) / (Total Governmental Fund expenditures - Governmental Fund capital outlay per reconciliation) Source: City of South Bend Comprehensive Annual Financial Reports REVENUE CAPACITY These schedules contain information to help the reader assess the factors affecting the City of South Bend's ability to generate and maintain revenue. 222 CITY OF SOUTH BEND, INDIANA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN YEARS Estimated Adjusted Current Tax Total Tax (1) Outstanding Per DLGF Circuit Breaker Current Tax Collections Delinquent Collections as Outstanding Delinquent Taxes Tax Year/ Current Levy Levy Current Tax as a Percent of Tax Total Tax a Percent of Delinquent as a Percent of Collection Year Tax Levy Reduction (County Abstract) Collections Adjusted Tax Levy Collections Collections Adjusted Tax Levy Taxes Adjusted Tax Levy 2003/2004 $ 59,875,358 $ - $ 59,875,358 $ 56,031,449 93.58 % $ 2,914,419 $ 58,945,868 98.45 % $ 6,189,942 10.34 % 2004/2005 60,833,109 - 60,833,109 56,114,865 92.24 2,335,278 58,450,143 96.08 8,093,237 13.30 2005/2006 62,058,519 - 62,058,519 58,849,337 94,83 3,847,872 62,697,209 101.03 5,495,442 8.86 2006/2007 62,723,113 - 62,723,113 57,979,187 92.44 2,289,138 60,268,325 96.09 7,411,505 11.82 2007/2008 65,534,282 - 65,534,282 59,589,537 90.93 4,113,095 63,702,632 97.21 2,831,650 4.32 2008/2009 64,546,050 7,863,846 56,682,204 47,497,697 83.80 3,355,161 50,852,858 89.72 5,810,503 10.25 2009/2010 66,929,179 14,346,110 52,583,069 41,813,442 79.52 6,380,600 48,194,042 91.65 10,026,236 19.07 2010/2011 68,662,101 17,692,787 50,969,314 40,876,844 80.20 5,791,920 46,668,764 91.56 8,165,775 16.02 2011/2012 70,756,844 23,965,911 46,790,933 47,728,794 102.00 5,111,380 52,840,174 112.93 9,550,891 20.41 2012/2013 72,696,497 27,863,156 44,833,341 43,943,006 98.01 9,790,520 53,733,526 119.85 11,146,473 24.86 Source - St. Joseph County Auditor's Settlement Worksheets and Abstract. City of South Bend budget forms approved by the Department of Local Government Finance (DLGF). N Data provided for General Fund, Parks & Recreation, Cumulative Capital Development, Fire Pension and Police Pension Funds. Excludes College Football Ball of Fame and Tax Increment Financing Funds. IV Delinquent tax collections are not broken out by individual taxing unit. A calculation of South Bend's share of delinquent taxes has been made based on proportionate tax rates. Total collections may exceed 100% of adjusted tax levy as prior year collections are not broken out separately by the St. Joseph County Auditor. (1) Outstanding Delinquent Taxes are reported in the aggregate as of the end of each year and are not cumulative. City of South Bend, Indiana Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $100 of net assessed value) N (1) Includes State of Indiana, Redevelopment Commission (Hall of Fame), South Bend Transportation and South Bend Regional Airport. (2) Firefighters' Pension and Police Pension no longer tax burden for the City of South Bend as the State of Indiana has assumed responsibity for funding these programs. (3) Information provided for Portage Township in the City of South Bend, Property tax rates applied to net assessed valuation. Property tax billings are also subject to "circuit breaker" property tax caps on grossed assessed valuation of 1% (homestead residential property), 2 °/ (other residentiailrental property), and 3% ( nonresidential real and personal property). Therefore, an increase in stated property tax rates will not result in higher property taxes paid for many taxpayers who have reached their cap. City Direct Rates Overlapping Rates (3) Cumulative Tax Year/ General Parks/ Firefighters' Police Capital Total St. Joseph Schools Total Grand Collection Year Fund Recreation Pension Pension Development Direct County Districts Township Library Other (1) Overlapping_ Total 200312004 1.6871 0.2859 0.0532 0.0477 0.0376 2.1115 0.7652 1.6201 0.0923 0.1830 0.2209 2.8815 4.9930 2004/2005 1.6845 0.2902 0.0540 0.0485 0.0376 2.1148 0.7831 1.5969 0.0276 0.1854 0.1828 2.7755 4.8906 2005/2006 1,7386 0.2981 0.0554 0.0498 0.0376 2.1795 0.9899 1.6033 0.0269 0.2027 0.1501 2.9729 5.1524 2006/2007 1.6838 0.2858 0.0531 0.0477 0.0342 2.1046 0.8711 1.5419 0.0285 0.1957 0.1737 2.8109 4.9155 2007/2008 1.7924 0,2979 0.0579 0,0572 0.0342 2.2396 0.7576 1.5417 0.0482 0.2216 0.1944. 2.7635 5.0031 2008/2009 1.9777 0.3656 0.0117 0.0189 0.0342 2.4081 0.5693 1.0297 0.0537 0.2257 0.1733 2.0517 4.4598 2009/2010 (2) 2.2536 0,4401 0.0000 0,0000 0.0342 2.7279 0.5866 1.0728 0.0406 0.2657 0.1835 2.1492 4.8771 201012011 2.4381 0.4818 0.0000 0.0000 0.0342 2.9541 0.5424 1.2211 0.0438 0.3027 0.1958 2.3058 5.2599 2011 /2012 2.4954 0.4957 0.0000 0,0000 0.0328 3.0239 0.6212 1.1931 0.0464 0.2941 0.1817 2.3365 5.3604 2012/2013 2.5678 0.5102 0.0000 0.0000 0.0328 3.1108 0.6731 1.3493 0.0453 0.3227 0.1971 2.5875 5.6983 Source: St. Joseph County Auditor's 011ice - Certified Tax Rate Schedules - Rates presented for Portage Township in South Bend N (1) Includes State of Indiana, Redevelopment Commission (Hall of Fame), South Bend Transportation and South Bend Regional Airport. (2) Firefighters' Pension and Police Pension no longer tax burden for the City of South Bend as the State of Indiana has assumed responsibity for funding these programs. (3) Information provided for Portage Township in the City of South Bend, Property tax rates applied to net assessed valuation. Property tax billings are also subject to "circuit breaker" property tax caps on grossed assessed valuation of 1% (homestead residential property), 2 °/ (other residentiailrental property), and 3% ( nonresidential real and personal property). Therefore, an increase in stated property tax rates will not result in higher property taxes paid for many taxpayers who have reached their cap.