HomeMy WebLinkAbout2013 Comprehensive Annual Financial Report - Executive SummaryCAFR EXECUTIVE SUMMARY
fiscal year ending on December 31, 2013
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CITY OF SOUTH BEND, IN MAYOR PETE BUTTIGIEG
Prepared by: Department of Administration and Finance — John Murphy, City Controller
City of South Bend, Indiana
Comprehensive Annual Financial Report — Executive Summary
For The Year Ending December 31, 2013
Table of Contents
Purpose & Summaries
Purpose of the Executive Summary ........... ...............................
Quick Facts about South Bend ................... ...............................
Chartsand Graphs ..................................... ...............................
Introduction
Controller's Letter of Transmittal .... ...............................
Independent Auditor's Report on Financial Statements
Management's Discussion and Analysis ......................
Government -Wide Financial Statements:
Statement of Net Position ... ...............................
Statement of Activities ........ ...............................
Fund Financial Statements:
Balance Sheet — Governmental Funds ............. ...............................
Statement of Revenues, Expenditures and Other Changes in Fund
Balances — Governmental Funds ............... ...............................
Statement of Net Position — Proprietary Funds ...............................
Statement of Revenues, Expenses and Other Changes in
Net Position — Proprietary Funds ............... ...............................
Statement of Fiduciary Net Position — Fiduciary Funds ...................
Statement of Changes in Fiduciary Net Position — Fiduciary Funds
Financial Trends
1
......... ............................... 2
... ............................... 3 -10
. .......................... 11 -23
. ............................... 24 -25
. ............................... 26 -44
. ............................... 45-46
....... ............................... 47
....... ............................... 50
. ............................... 51 -52
. ............................... 53 -54
....... ............................... 55
....... ............................... 56
Net Position by Component — Last Ten Years .......................................... ............................... 57
Changes in Net Position — Last Ten Years ......................................... ............................... 58 -60
Fund Balances, Governmental Funds — Last Ten Years .......................... ............................... 61
Changes in Fund Balances, Governmental Funds — Last Ten Years ....... ............................... 62
Revenue Canacit
Property Tax Levies and Collections — Last Ten Years ............................ ............................... 63
Direct and Overlapping Property Tax Rates — Last Ten Years ................. ............................... 64
Assessed Value and Actual Value of Taxable Property — Last Ten Years .............................. 65
Property Tax Collections — Cash Basis — 2004 to 2013 ............................ ............................... 66
Debt Capacity
Computation of Legal Debt Margin — December 31, 2013 ........................ ............................... 67
Ratios of Outstanding Debt by Type — Last Ten Years ............................ ............................... 68
Computation of Direct and Overlapping Debt — December 31, 2013 ....... ............................... 69
Demographic and Economic Information
Demographic Statistics — Last Ten Years ........................................... ............................... 70 -71
ODeratina and Other Information
Full -Time City Government Employees by Department — Last Ten Years ........................ 72 -73
Grant Compliance
Schedule of Expenditures of Federal Awards ........................................... ............................... 74
City of South Bend, Indiana
2013 CAFR Executive Summary
Purpose of the Executive Summary
The City of South Bend has prepared a Comprehensive Annual Financial Report (CAFR) for the
year ending December 31, 2013. The 2013 CAFR totals 271 pages and meets all of the
requirements set forth by the Government Finance Officers Association for its Certificate of
Achievement for Excellence in Financial Reporting program. If the award is received for 2013,
this will be the twenty - fourth consecutive year that the City of South Bend has received this
prestigious award.
The purpose of this Executive Summary is to present the most essential schedules and
summaries from the 2013 CAFR, as determined by the City, to allow more ready access to them
by the reader. The schedules and summaries are presented in their original format and the
order of presentation is the same as in the full 2013 CAFR. In addition, the CAFR Executive
Summary includes summary charts and graphs not featured in the 2013 CAFR. The Executive
Summary totals 74 pages.
The Executive Summary and full CAFR are available at:
http: / /docs .southbendin.gov /WebLink8 /0 /doc /54777 /Electronic.aspx
or by contacting:
John H. Murphy, City Controller
City of South Bend
Department of Administration & Finance
227 W. Jefferson Boulevard
South Bend, Indiana 46601
Telephone — (574) 235 -7678
Fax — (574) 235 -9928
On the cover:
View overlooking the Century Center and the East Race during a summer festival.
Quick Facts about South Bend =
Yearof Incorporation .................................................. ............................... ...........................1865
Mayor...................................................................................... ............................... Pete Buttigieg
Numberof Council Members ....................................................................... ............................... 9
Population (2010 census) .......................................... ............................... ........................101,168
Full -time Employees (12/31/13) .................................. ............................... ..........................1,131
2013 Governmental Fund Expenditures ................................ ............................... $ 152,860,750
2013 Government -Wide Expenses .......................................... ............................... $ 207,967,100
Net Position (12/31/13) ............................................................ ............................... $ 457,274,019
Unrestricted Net Position ( 12/ 31/ 13) ....................................... ............................... $ 94,319,485
Largest Employer ................................................ ............................... University of Notre Dame
(5,590 employees)
Gross Assessed Property Tax Value .................................... ............................... $ 5,091,222,000
Local Colleges:
• The University of Notre Dame
• Indiana University - South Bend
• Bethel College
• Saint Mary's College
• Holy Cross College
• Trine University - South Bend
• Brown Mackie College - South Bend
• Ivy Tech Community College - South Bend
Attractions:
• Morris Performing Arts Center
• Century Center
• South Bend Cubs (Formerly the South Bend Silver Hawks)
• East Race Waterway
• Potawatomi Zoo
• Palais Royale
• Blackthorn Golf Course
2
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
City of South Bend, Indiana
Net Position by Component
Last Ten Fiscal Years
2004 2005 2006(1) 2007 2008 2009 2010 2011 2012 2013
68,600,571
68,873,163
238,635,255
253,155,810
246,041,948
274,186,457
292,151,758
287,891,667
282,822,829
286,593,845
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
Total Primary
Government Net 194,241,292 190,401,407 366,010,498 389,417,300 388,587,734 420,466,577 446,843,012 450,026,289 452,234,196 457,274,019
Position
(1) The City implemented the retroactive reporting of infrastructure assets required by GASB Statement No. 34 during 2006.
3
Government -Wide Revenue 2013
Business Ty
Activities
$60,743,27
governmental
Activities
152,263,646
Investment
Capital Grants, Earnings, $138,362
$697,917
■
Charges for
Services,
$59,906,998
Total Revenue
$213,006,923
Other Tax
$22,811,296
Operating Grants
$21,466,622
4
Other Revenue
$14,285,313
property Tax
$72,018,651
Investment Earnings
$762,269
`Unrestricted Grants
/ $5,893,924
Charges for Services
$13,158,358
Capital Grants
$1,867,213
Blackthorn Golf Cou
$1,497,513,
Solid Waste
$5,091,588
Parking
$1,285,056_
Building Department_
$1,131,815
Century Center
$4,330,656
Government -Wide Expenses 2013
Business Type Governmental
Activities — Activities
$54,949,283AM $153,017,817
Waste Water Utility
$26,390,790
1
I
1
Total Expenses
$207,967,100
Water Utility
$15,221,865
Public Safety
$76,023,819
Interest on Long -
Term Debt
$5.961.124
General
Government
$13,200,898
Economic
Development
$10,069,690
,ulture &
E)creation
6,846,471
✓ays & Streets
?0,915,815
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
City of South Bend, Indiana
Government -Wide Expenses
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Total Primary
Government $ 151,943,479 $ 177,039,272 $ 175,979,388 $ 168,198,873 $ 183,819,991 $ 155,737,260 $ 179,501,658 $ 201,225,569 $ 195,040,779 $ 207,967,100
Expenses
6
111,282,406
133,791,075
135,371,383
124,932,023
135,039,863
104,113,362
134,015,143
154,902,096
146,481,687
153,017,817
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 $ 151,943,479 $ 177,039,272 $ 175,979,388 $ 168,198,873 $ 183,819,991 $ 155,737,260 $ 179,501,658 $ 201,225,569 $ 195,040,779 $ 207,967,100
Expenses
6
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
City of South Bend, Indiana
Fund Balances, Governmental Funds
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
22,021,693
28,744,194
25,851,295
23,760,753
27,416,584
24,618,455
28,737,142
27,931,216
28,795,083
27,668,913
•
93,199,594
93,257,366
114,039,617
128,671,603
179,839,300
171,431,958
179,464,574
168,302,860
158,137,059
169,516,402
Total 115,221,287 122,001,560 139,890,912 152,432,356 207,255,884 196,050,413 208,201,716 196,234,076 186,932,142 197,185,315
7
Governmental Funds Revenue 2013
Interest Income
Fines and 762,270
Forfeitures
660,841
Charge for Services.
12,320,498
Intergovernmental
29,227,759
Licenses and
Permits
177,019
Community/
Revitalization
District
244,623
Professional Sports
Develop. Tax
649,996
Donations
367,825 Other
IZ— 12,806,315
Economic Develop.
Income Tax
8,177, 352
General Property Taxes
County Option Income Tax
Economic Develop. Income Tax
Professional Sports Develop. Tax
Community Revitalization District
Licenses and Permits
Intergovernmental
Charge for Services
Fines and Forfeitures
Interest Income
Donations
Other
Total Revenue
_General Property
Taxes
72,018,651
County Option
Income Tax
13,739,325
$ 72,018,651
47.6%
13,739,325
9.1%
8,177,352
5.4%
649,996
0.4%
244,623
0.2%
177,019
0.1%
29,227,759
19.3%
12,320,498
8.2%
660,841
0.4%
762,270
0.5%
367,825
0.2%
12,806,315
8.5%
$ 151,152,474
100.0%
8
Governmental Funds Expenses 2013
Capital Outlay
30,748,663
Debt Service_
19,121,148
Culture &_
Recreation
13,956,025
Development
8,068,458
General
Government
7,154, 965
Highways &
Streets
9.769.942
Public Safety
64,041,549
General Government $
7,154,965
4.7%
Public Safety
64,041,549
41.9%
Highways & Streets
9,769,942
6.4%
Economic Development
8,068,458
5.3%
Culture & Recreation
13,956,025
9.1%
Debt Service
19,121,148
12.5%
Capital Outlay
30,748,663
20.1%
Total Expenses $
152,860,750
100.0%
180,000,000
170,000,000
160,000,000
150,000,000
140,000,000
130,000,000
120,000,000
110,000,000
100,000,000
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
113,371, 670 127,437,135 141,065,245 137, 826,642 139,717, 856 130,932,134 158,342,276 152, 877,172 147,379, 084 151,152,474
133,062,773 130,713,640 1 129,527,536 128,209,220 138,022,795 142,962,710 150,758,014 172,397,679 162,460,000 152,860,750
Notes:
Does not include Other Financing Sources /Uses.
Spending on one -time capital items may result in expenditures exceeding revenue during the year
City of South Bend, Indiana
Full -Time City Government Employees by Department
Highways & Internal
Service
Streets, 60 Fund, 43 General
Economic Government,
Develo ment 101
p ,
26
Culture &
Recreation,
127 0
Public Safety,
579
Department
Enterprise
Funds,195
Full -Time
Positions
Mayor's Office
6
City Clerk's Office
5
Common Council (elected officials, part -time)
9
Administration and Finance
20
Legal Department
10
Code Enforcement
24
Engineering
13
311 Call Center
5
Safety and Risk
3
Human Rights
6
Police Department
' Communication Center
Fire Department
291
33
255
Parks and Recreation
Morris PAC /Palais Royale
113
14
• • • Department of Community Investment
26
• Street Department
60
Water Works
70
Wastewater
45
Organic Resources
•
6
Sewer
34
Solid Waste
26
Building Department
14
Central Services
43
Total Full -Time Positions 10 Year Trend
1,350
1,298 1,294 1,288
1,300
1,250
1,200
1,150
1,100
2004 2005 2006 2007 2008
10
230 1,213
2009 2010 2011 2012 2013
120ON COUNTY -CITY BUILDING
227 W. JEFFERSON BLVD.
SOUTH BEND, INDIANA 46601 -1830
PHONE 574/ 235 -7678
FAX 574/ 235 -9928
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
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
Indiana State Board of Accounts. Information related to the single audit, including the schedule of
11
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.
0
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 intermodal (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.
12
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%
St. Joseph County presently has an estimated 101,071 households with an average per capita
13
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.
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
14
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, H.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 information about the City of South Bend can be found in the statistical
section of this report.0
0
Financial, Budtetary and Property Tax Controls
15
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.
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
16
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 Obiectives 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 Economy
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.
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
17
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.
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.
18
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):
Public Works:
Building
Department:
Century Center:
Creating and expanding opportunities through partnerships in neighborhood
revitalization, commercial and industrial development and community
enhancement.
Providing leadership in the development and delivery of engineering, fleet,
transportation, sanitation, wastewater, water and other services as called upon
by our customers.
Serving our customers by inspecting, informing and ensuring a safe place to
work, play and live.
Providing a state -of -the -art convention facility with excellent services to
19
customers while generating maximum economic benefit to our community.
Building 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.
• 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
20
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:
New Economic Partnerships – to lay out a new 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.
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
21
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.
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.
22
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,
�7,ohly /f lvwp t
John H. Murphy, MPA
City Controller
23
jennl fe- C tfochellhO
Jennifer Hockenhull, CPA
Deputy City Controller
i
STATE OF INDIANA
AN EQUAL, OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS
302 WEST WASHINGTON STREET
ROOM E418
INDIANAPOLIS, INDIANA 46204 -2769
Telephone: (317) 232 -2513
Fax: (317) 232-4711
Web Site: www.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.
Managements 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.
24
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
25
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 construction and maintenance, parks & recreation services, arts & 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.
26
Management Discussion & Analysis
Financial Highlights
Total net position 286,593,845 282,822,829 170,680,174 169,411,367 457,274,019 452,234,196
Change us. 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% during fiscal 2013.
Governmental activity net position increased by $3,771,016 or 1.3% and business -type
activity net position increased by $1,268,807 or 0.7% 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% 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% 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% versus government -wide revenues received in fiscal 2012.
Governmental activity revenue increased by $4,922,124 or 3.3 %, whereas business -type
activity revenue increased by $1,027,719 or 1.7 %.
• Government -wide expenses in 2013 totaled $207,967,100, an increase of $5,423,701 or
2.7% compared to expenses of $202,543,399 in 2012. Government activity expenses
decreased by $966,490 or -0.6% and business -type activity expenses increased by
$6,390,191 or 13.2% 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.
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
27
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
142,076,868
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 us. 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% during fiscal 2013.
Governmental activity net position increased by $3,771,016 or 1.3% and business -type
activity net position increased by $1,268,807 or 0.7% 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% 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% 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% versus government -wide revenues received in fiscal 2012.
Governmental activity revenue increased by $4,922,124 or 3.3 %, whereas business -type
activity revenue increased by $1,027,719 or 1.7 %.
• Government -wide expenses in 2013 totaled $207,967,100, an increase of $5,423,701 or
2.7% compared to expenses of $202,543,399 in 2012. Government activity expenses
decreased by $966,490 or -0.6% and business -type activity expenses increased by
$6,390,191 or 13.2% 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.
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
27
Management Discussion & Analysis
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
consolidated 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
principally 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 construction and maintenance, parks & recreation services, and arts & 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.
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.
28
Management Discussion & Analysis
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.
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.
29
Management Discussion & Analysis
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 & disclosures, this CAFR
report presents supplementary information. The combining statements referred to earlier in
connection with non -major governmental, enterprise, internal service and fiduciary funds are
presented immediately after the basic financial statements within the financial statement section
of the CAM 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
Activities
2012
2013 (Restated)
Business type Government -wide
Activities Activities
2012
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%, 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 %.
• Business -type net position of $170,680,174 increased by $1,268,807 over December 31,
2012, an increase of 0.7 %. The increase in business -type net position was due primarily to a
9% 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% as
compared to amounts as of December 31, 2012 mainly due to a decrease in governmental
30
Management Discussion & Analysis
capital assets as a result of a capitalization policy change.
• Government -wide liabilities and deferred inflows decreased by $14,048,785 or -3.9% 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 Chanaes in Net Position
Expense
Governmental
Business type
Government -wide
Activities
Activities
General government
Activities
16,102,189
2012
13,200,898
16,102,189
Public safety
2012
69,977,237
2013
(Restated)
2013
2012
2013
(Restated)
Revenue
20,915,815
15,198,102
Culture & recreation
26,846,471
Program Revenue
26,846,471
21,724,589
Economic development
10,069,690
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
26,390,790
23,809,975
26,390,790
23,809,975
Civic center
Taxes
4,330,656
2,929,268
4,330,656
2,929,268
Building department
Property tax
72,018,650
71,775,415
-
-
72,018,650
71,775,415
Other tax
22,811,296
23,360,791
1,285,056
1,721,655
22,811,296
23,360,791
Unrestricted grants
5,893,924
3,891,810
5,091,588
5,118,806
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
147,3415522
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
169,4119367
457,274,019
452,234,196
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 %. Expenses were $207,967,100 during 2013,
an increase of $3,113,451, or 1.5% 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
31
Management Discussion & Analysis
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
refinancing 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 & 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% over fiscal 2012. During 2013,
expenses of $54,949,283 increased by $6,390,191 or 13.2% 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
Park[3dIRec
PSITOIT
COIT
EDIT
TIF®tirport
Other
Total
Totalassets 29,689,725
4,388,261
2,030,864
17,495,359
11,284,910
36,673,858
111,348,345
212,911,322
Total liabilities 2,020,812
302,843
235,645
696,591
119,988
658,839
11,691,289
15,726,007
Fund3alances:
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®und[8alance
07,668,9130 ,085,4180 ,795,2190 6,798,76801,164,9220 6,015,0190 9,657,0560[97,185,3150
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
NetlEhangeOn ®undo
balances0
(ff ,126,170) 28,340) [LL,197,291) 85,037) 92,895
MMIMM ,400,154
MMMM ,996,962
[8 ®0,253,173
Beginning fund balances
- restated
28795,083
4,713,758
2,992,510
17,783,805
10,372,027
26,614,865
95,660,094
186,932,142
Ending0und [balances0
®7,668,913
MMM,085,418
®,795,219
®6,798,768
®1,164,922
MMMW,015,019
®9,657,056
®97,185,315
As of December 31, 2013, the City governmental funds reported a combined ending fund balance
of $197,185,315.
The Non - spendable 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
32
Management Discussion & Analysis
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 & 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% 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 % 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 collection 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% 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 %, a part of which (0.25°/x) 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 LOIT tax revenue commenced in
January 2010. The revenue collected in fiscal 2013 of $5,895,440 decreased by $169,660 or
-2.8% 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.
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 development 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
33
Management Discussion & Analysis
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
primarily to a one -time litigation settlement of $3.5 million for the Studebaker - Oliver brownfield
rehabilitation.
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 CAFR report.
34
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:
Non Tax Based
2013
% of
2012
% of
Licenses and permits
Actual
Total
Actual
Total
Tax Based
29,227,759
19.3%
31,297,526
21.3%
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
64.6%
Non Tax Based
Licenses and permits
177,019
0.1%
189,714
0.1%
Intergovernmental
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
governmental 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% 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% (homestead), 2.0% (other residential /rental) and 3.0% (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 nonresidents 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% during 2009,
increasing the tax rate from 0.8% to 1.75 %. The local option income tax increase consisted of
three components: 0.2% increase in the economic development income tax, a new 0.25% public
safety local option income tax and a new 0.5% property tax relief local option income tax.
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
35
Management Discussion & Analysis
user fees and /or charges for services currently being performed. City performed services are
priced based at levels representing 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
Actual Total Actual Total
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%
8,068,458
5.3%
13, 956, 025
9.1%
19,121,148
12.5%
9,288,682
5.7%
3,543,180
2.2%
18, 557, 986
11.4%
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%
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% 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% of expenditures used for this purpose in fiscal 2013. Public safety spending is followed by
capital outlay expenditures (20.1%), debt service (12.5 %), culture and recreation (9.1%),
highways & streets (6.4 %), economic development operating (5.3 %), and general government
(4.7 %). General government spending is comprised of the executive offices of the Mayor,
Common Council, City Clerk, City Attorney, Controller, Engineering and other administrative
offices.
36
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
Wastewater
Century Center
Other
Total Enterprise Internal Service
Utility
Total assets
76,986,961
195,232,020
18,922,414
13,524,160
304,665,555
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
-
Net position:
Capital assets (net of debt)
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
-
Capital outlay
4,181,496
27,454,651
1,757,697
206,494
33,600,338
-
Unrestricted
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
56,610,269
22,432,997
Operating expenses
14,244,940
17,793,476
4,330,437
8,394,227
44,763,080
22,095,310
Operating income (loss)
(461,239)
14,132,602
(2,295,928)
471,754
11,847,189
337,687
Non - operating rev (exp)
369,048
(7,944,865)
1,432,479
(607,774)
(6,751,112)
30,086
Income (loss) before
(92,191)
6,187,737
(863,449)
(136,020)
5,096,077
367,773
contributions & 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
10,041,312
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.
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% 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
37
Management Discussion & Analysis
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 mandated 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% 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).
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) -
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.
38
Management Discussion & Analysis
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
payment 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 1St 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
Expenditures 64,223,178
Surplus (deficit) 46,283
63, 932, 287
65, 091, 572
(1,159,285)
61, 684, 651
62,469,125
(784,474)
(2,247,636)
2,622,447
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 aligning 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.
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 budget 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
39
Management Discussion & Analysis
General Fund expenditure budget by $2,622,447 or 4.0 %. 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
3,024,582
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
213,040,883
209,954,867
Non - building impro\,ements
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 impro\,ements
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
improvements, vehicles, information technology equipment, machinery and equipment, and
construction 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.
Major Capital Asset Project Spending in 2013
Improvements
Water utility improvements 2,107,867 Continued project
East Bank Sewer Separation, Phases 3 & 4 3,197,954 Continued project
Chloride feed system 23,520 Continued project
Wastewater primary clarifier 3,047,919 Continued project
Other Sewer separation projects 5,126,741 Continued project
M &E
Wastewater M &E 421,010 New projects
40
Management Discussion & Analysis
Capital Assets Analysis
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% since December 31, 2012.
Construction In Progress increased by $7,277,178, and capitalized assets in land, buildings,
improvements, 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 III.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 %. City outstanding debt includes revenue bonds, mortgage bonds, notes &
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
Tota I 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.
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
approximately $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
Cy
Management Discussion & Analysis
City departments; the remaining $81,806 was used to lease office equipment such as copiers.
The City solicits competitive 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% 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
projects 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
remaining 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
governmental 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% of gross assessed
value for residential homesteads, 2% for agricultural /rental properties, and 3% 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
operations 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.
As a consequence of the state enacted legislation in 2008, the City enacted a 0.95% local option
income tax increase to partially offset the property tax revenue loss. The local option tax increase
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 & recreation,
code enforcement, highways & 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.
Ely:
Management Discussion & Analysis
City Management believes that the national economic recovery will continue according to the
predictions of governmental 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
improvements 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.
Seventy percent of the lots are being sold at market rate and thirty percent are reserved
for income - eligible buyers. Six million dollars in private investment will transform this
neighborhood.
• 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
43
Management Discussion & Analysis
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
workforce 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 offer training in "deconstruction" — the process of
recovering 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 condition of the City of South Bend as of December 31, 2013. Questions
concerning any of the information 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 0murphyCc�south bend in.gov
City of South Bend
May 8, 2014
44
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
Deferred outflows of resources:
Unamortized loss on refunding
Unamortized loss on sale /leaseback
Total deferred outflows of resources
502,405,650 302,904,745 805,310,395
746,357 746,357
1,125,301 1,125,301
1,871,658 1,871,658
The notes to the financial statements are an integral part of this statement.
Continued on next page
45
Primary Government
Governmental
Business -Type
Activities
Activities
Totals
$ 46,756,222
$ 4,766,303
$ 51,522,525
50,162
-
50,162
126,656,282
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
483,036,200
502,405,650 302,904,745 805,310,395
746,357 746,357
1,125,301 1,125,301
1,871,658 1,871,658
The notes to the financial statements are an integral part of this statement.
Continued on next page
45
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
Contracts 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 sale /leaseback
Total deferred inflows of resources
Net position
Investment in capital assets
Restricted for:
Debt service
Capital outlay
Unrestricted
Total 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
3,892,728
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
111,208,539
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
-
63,258,306
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
192,190,446 114,506,252 306,696,698
7,990,172 14,667,326 22,657,498
- 33,600,338 33,600,338
86,413,227 7,906,258 94,319,485
$ 286,593,845 $ 170,680,174 $ 457,274,019
The notes to the financial statements are an integral part of this statement.
46
CITY OF SOUTH BEND
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2013
Program Revenues Net (Expense) Revenue and Changes in Net Position
Operating Capital Primary Government
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 safety
76,023,819 5,210,272 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 5,112,019 619,840
15,911
(4,321,920)
(4,321,920)
Interest on long -term debt
5,961,124
(5,961,124)
(5,961,124)
Total governmental activities
153,017,817 13,158,358 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
1,285,056 968,868
(316,188)
(316,188)
Solid waste
5,091,588 5,399,044
307,456
307,456
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
72,018,650
-
72,018,650
County option income tax
13,739,325
13,739,325
Economic development income tax
8,177,352
8,177,352
Professional sports development tax
649,996
649,996
Community revitalization enhancement district tax
244,623
244,623
Grants and contributions not restricted to specific programs
5,893,924
-
5,893,924
Unrestricted investment earnings
762,269
138,362
900,631
Other
14,285,314
-
14,285,314
Transfers
4,525,187
(4,525,187)
-
Total general revenues and transfers
120,296,640
(4,386,825)
115,909,815
Change in net position
Net position - beginning (restated)
3,771,016 1,268,807 5,039,823
282,822,829 169,411,367 452,234,196
Net position - ending $ 286,593,845 $ 170,680,174 $ 457,274,019
The notes to the financial statements are an integral part of this statement.
47
CITY OF SOUTH BEND
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2013
Fund balances:
Other
Non - spendable
Nonmajor
84,308
-
Park and
Public Safety
-
84,308
Property held for resale
Governmental
-
569,499
General
Recreation
LOIT
COIT
EDIT
TIF Airport
Funds
Totals
Assets
1,742,115
-
4,426,936
Restricted
-
4,001,110
1,795,219 -
Cash and cash equivalents
$ 7,088,418
$ 1,084,386
$ 517,885
$ 3,798,556
$ 2,763,011
$ 6,376,137
$ 27,947,211 $
49,575,604
Cash with fiscal agent
-
-
-
-
-
-
50,162
50,162
Investments
21,222,360
3,163,455
1,510,814
11,081,441
8,060,469
18,600,958
56,319,954
119,959,451
Receivables (net of allowances for uncollectibles):
27,668,913
4,085,418
1,795,219 16,798,768
11,164,922
36,015,019
99,657,056
197,185,315
Total liabilities and fund balances
Interest
30,330
4,519
2,165
15,970
11,599
26,767
88,517
179,867
Taxes
200,045
35,531
-
-
-
1,171,564
2,405,366
3,812,506
Accounts
475,847
4,284
-
1,920
-
-
426,700
908,751
Intergovernmental
-
-
-
-
-
-
802,771
802,771
Loans
-
-
7,694,684
7,694,684
Interfund receivable:
Interfund services provided and used
15,877
11,778
-
-
-
-
1,710
29,365
Inventories
-
84,308
-
-
84,308
Advances to other funds
656,848
-
-
2,027,973
-
1,742,115
6,412,837
10,839,773
Property held for resale
569,499
449,831
8,756,317
9,198,433
18,974,080
Total assets
$ 29,689,725
$ 4,388,261
$ 2,030,864
$ 17,495,359
$ 11,284,910
$ 36,673,858
$ 111,348,345 $
212,911,322
Liabilities and fund balances
Liabilities:
Accounts payable
$ 309,592
$ 68,957
$ -
$ 696,591
$ 119,988
$ 102,797
$ 2,844,159 $
4,142,084
Accrued payroll payable
1,494,589
227,793
235,645
-
-
-
213,184
2,171,211
Interfund payable:
Interfund services provided and used
18,310
3,265
-
5,008
20,423
47,006
Taxes payable
407
2,271
-
-
-
-
-
2,678
Performance deposits payable
196,164
-
-
-
-
51,034
-
247,198
Other current payables
1,750
557
-
15,865
18,172
Advances from other funds
500,000
8,597,658
9,097,658
Total liabilities
2,020,812
302,843
235,645
696,591
119,988
658,839
11,691,289
15,726,007
Fund balances:
Non - spendable
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
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 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
Total liabilities and fund balances
$ 29,689,725 $
4,388,261 $
2,030,864 $ 17,495,359 $
11,284,910
$ 36,673,858
$ 111,348,345
The notes to the financial statements are an integral part of this statement.
Continued on next page
48
CITY OF SOUTH BEND
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2013
(Continued)
The notes to the financial statements are an integral part of this statement.
49
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.
49
CITY OF SOUTH BEND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
For The Year Ended December 31. 2013
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:
(1,126,170)
(628,340)
(1,197,291)
(985,037)
792,895
9,400,154
Other
Total
Current:
28,795,083
Park and
Public Safety
17,783,805
10,372,027
26,614,865
Governmental
Governmental
General government
General
Recreation
LOT
COT
EDIT
TIF Airport
Funds
Funds
Revenues:
63,179,341
235,645
626,563
64,041,549
Taxes
1,381,498
-
8,388,444
9,769,942
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
15,285
289,849
852,887
-
1,862,500
649,996
649,996
Community revitalization enhancement district
-
17,531
593,515
155,214
276,127
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
235,645
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:
(1,126,170)
(628,340)
(1,197,291)
(985,037)
792,895
9,400,154
3,996,962
10,253,173
Current:
28,795,083
4,713,758
2,992,510
17,783,805
10,372,027
26,614,865
95,660,094
186,932,142
General government
6,605,015
4,085,418 $
-
16,798,768 $
11,164,922 $
36,015,019
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
8,068,458
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
4,748,566
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
(11,268,010)
(1,708,276)
Other financing 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) 15,264,972 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
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
186,932,142
Fund balances - ending
$ 27,668,913 $
4,085,418 $
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
50
CITY OF SOUTH BEND
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2013
Continued on next page
51
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
$ 3,338,918
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
52,558
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
-
22,038
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
938,824
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
3,735,582
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 depreciation)
60,549,506
130,314,710
15,472,668
8,208,089
214,544,973
1,379,540
Total noncurrent assets
63,034,324
142,496,062
16,175,602
9,788,578
231,494,566
1,379,540
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
132,668
613,689
-
-
746,357
-
Unamortized loss on sale /leaseback
1,125,301
1,125,301
Total deferred 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
51
CITY OF SOUTH BEND
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2013
(Continued)
Noncurrent liabilities:
Advances from other funds
Governmental
-
- 1,742,115
Business -Type Activities - Enterprise Funds
Mortgage bonds payable (net of unamortized discount)
Activities
487,027
- -
487,027 -
Revenue bonds payable (net of unamortized discounts,
Other
Water
Wastewater
Century
Enterprise
111,208,539 -
Internal
Liabilities
Utility
Utility
Center
Funds
Totals
Service Funds
Current liabilities:
3,794,664
Total noncurrent liabilities
Accounts payable
431,541
10,042
166,236
321,740
929,559
1,770,615
Interfund payables:
135,319,679 4,889,811
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
615,884
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
Accrued interest payable
284,295
11,174
295,469
Total current liabilities
3,770,749
9,739,277
332,759
1,416,827
15,259,612
4,883,543
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 -
Capitalleases payable
12,415
833,116
- 1,982,191
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
Unamoritzed gain on sale /leaseback
Total deferred inflows of resources
Net position
Investment in capital assets
Restricted for debt service
Restricted for capital outlay
Unrestricted
527,083 - 527,083
10,277 10,277
527,083 10,277 537,360
41,813,616 40,925,619 16,175,602 15,591,415 114,506,252 1,367,470
3,596,396 11,070,930 - - 14,667,326 -
4,181,496 27,454,651 1,757,697 206,494 33,600,338 -
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
The notes to the financial statements are an integral part of this statement.
52
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)
Business -Type Activities - En
Water Wastewater
Utility Utility
$ 6,527,228 $ 19,414,745 $
3,315,238
6,871,803
318,555
4,299,896
1,961,037
-
956,921
-
134,372
682,471
570,350
657,163 _
Century
Center
se Funds
Other
Nonmajor
Enterprise
Funds Totals
Governmental
A ..4.... +�...+
Internal
Service Funds
- $ - $
25,941,973 $ -
- -
10,187,041 -
- -
4,618,451 -
- -
1,961,037 -
- -
956,921 -
- -
816,843 -
1,923,625 -
1,923,625 -
- 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
53
CITY OF SOUTH BEND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2013
The notes to the financial statements are an integral part of this statement.
54
Governmental
Business -Type Activities - Enterprise Funds
Activities
Other
Nonmajor
Water
Wastewater
Century
Enterprise
Internal
Utility
Utility
Center
Funds
Totals
Service Funds
Nonoperating revenues (expenses):
Interest and investment revenue
27,213
103,784
3,394
3,971
138,362
28,690
Hotel /motel tax
-
-
1,313,436
-
1,313,436
-
Professional sports development tax
-
-
100,000
-
100,000
-
Repair fund revenues
-
548,665
-
-
548,665
-
Management fees
1,196,379
(1,029,948)
-
-
166,431
-
Miscellaneous revenue
122,381
-
15,868
-
138,249
-
Interest expense
(863,417)
(6,759,042)
-
(51,405)
(7,673,864)
1,396
Amortization expense
-
(410,190)
-
(560,340)
(970,530)
-
Repair fund expenses
-
(316,855)
-
-
(316,855)
-
Debt issue costs
(1,200)
(81,279)
-
-
(82,479)
-
Gain (loss) on disposition of assets
(112,308)
-
(219)
-
(112,527)
-
Total nonoperating revenue (expenses)
369,048
(7,944,865)
1,432,479
(607,774)
(6,751,112)
30,086
Income (loss) before contributions and transfers
(92,191)
6,187,737
(863,449)
(136,020)
5,096,077
367,773
Capital contributions
-
-
697,917
-
697,917
-
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
10,041,312
Total net position - ending
$ 53,397,592
$ 89,721,959
$ 18,062,572
$ 9,498,051
$ 170,680,174
$ 10,409,085
The notes to the financial statements are an integral part of this statement.
54
CITY OF SOUTH BEND
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
December 31, 2013
Pension Private - Purpose Agency
Assets Trust Funds Trust Fund Fund
Cash and cash equivalents
Investments
Receivables:
Interest
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued payroll and withholdings payable
Customer Deposits
Total liabilities
Net Position
Net position held in trust for:
Employees' pension benefits
Individuals, organizations, and other governments
Total net position
$ 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
2,632,447
36,910
$ 2,632,447 $ 36,910
The notes to the financial statements are an integral part of this statement.
55
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
Plan members
Other
Total contributions
Investment income:
Interest
Total additions
Deductions
Benefits
Administrative expense
Total deductions
Changes in net position
Net position - beginning
Net position - ending
$ 10,898,989 $
881
4,854
10,904,724
3,519 78
10,908,243 78
11,922,137
-
12,512
4,315
11,934,649
4,315
(1,026,406)
(4,237)
3,658,853
41,147
$ 2,632,447 $
36,910
The notes to the financial statements are an integral part of this statement.
56
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
Primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net position
City of South Bend, Indiana
Net Position by Component
Last Ten Fiscal Years
2004 2005 2006(1) 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
202,779,954
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
71,992,457
86,413,227
68,600,571
68,873,163
238,635,255
253,155,810
246,041,948
274,186,457
292,151,758
287,891,667
282,822,829
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
100,754,801
130,611,207
306,180,110
312,829,405
302,883,374
298,091,178
308,879,311
299,728,417
315,973,883
306,696,698
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
78,265,656
35,709,243
32,068,888
62,944,011
65,996,131
95,474,833
115,802,124
128,005,112
98,949,962
94,319,485
194,241,292
190,401,407
366,010,498
389,417,300
388,587,734
420,466,577
446,843,012
450,026,289
452,234,196
457,274,019
Source - City of South Bend Comprehensvie Annual Financial Reports (includes prior period adjustments)
(1) The City implemented the retroactive reporting of infrastructure 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.
57
City of South Bend, Indiana
Changes in Net Position
Last Ten Fiscal Years
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
58
2004
2005
2006
2007
2005
2009
2010
2011
2012
2013
Exuenses
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)
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
(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)
Total governmental activities expenses
(111,282,406)
(133,791,075)
(135,371,383)
(124,932,023)
(135,039,863)
(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)
Golf course
(1,778,107)
(1,736,939)
(1,811,757)
(1,811,801)
(1,829,122)
(1,881,982)
(1,995,556)
(1,689,042)
(1,841,998)
(1,497,513)
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)
(183,819,991)
(155,737,260)
(179,501,658)
(201,225,569)
(195,040,779)
(207,967,100)
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
58
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
Business -type activities:
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 activites program revenues
Total primary government program revenues
Net (Expense)/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)
59
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
Total governmental activities
Business -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 2005 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 ($7,568,032) $33,409,599 $10,958,387 $1,330,752 $209,833,284 $10,621,863 $12,016,301 $5,039,823
Source: City of South Bend Comprehensive Annual Financial Reports
60
City of South Bend, Indiana
Fund Balances, Governmental Funds
Last Ten Fiscal Years
61
2004
2005
2006
2007
2008
2009
2010
2011(1)
2012
2013
General fund
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
-
-
-
-
-
-
-
1,115,025
958,341
656,848
Restricted
327,267
-
-
Committed
-
-
-
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
28,795,083
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:
Special revenue funds
10,159,432
14,134,371
19,348,846
25,703,180
32,054,329
36,398,024
31,996,398
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
37,706,861
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
1289671,603
179,839,300
1719431,958
1799464,574
168,302,860
158,137,059
169,5169402
Grand Total - Governmental Funds
1159221,287
122,001,560
1399890,912
1529432,356
2079255,884
196,050,413
208,201,716
196,234,076
186,932,142
197,185,315
(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
61
City of South Bend, Indiana
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
Excess of revenues
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Revenues
(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)
Taxes
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
Licenses, fees and permits
223,006
246,780
186,470
173,604
177,329
206,594
192,397
190,943
189,714
177,019
Fines and forfeits
302,376
245,680
444,861
437,732
412,707
423,981
409,775
636,749
334,767
660,841
Charges for services
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
Intergovernmental
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
Investment earnings
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
Other revenues
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
Total revenues
113,371,670
127,437,135
141,065,245
137,826,642
139,717,856
130,932,134
158,3429276
152,877,172
147,3799084
151,152,474
Expenditures
0
0
0
0
0
0
0
0
0
0
General government
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
Public Safety
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
Highways and Streets
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
Health and Welfare
75,000
75,000
75,000
75,000
75,000
0
0
0
0
0
Culture and Recreation
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
Economic Development
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
Capital Outlay
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
Debt Service
Interest and Fiscal Charges
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
Principal
5,597,717
7,074,887
7,435,722
7,870,166
9,040,095
9,276,363
12,552,681
13,632,195
10,822,721
13,008,105
Total expenditures
133,062,773
130,713,640
129,527,536
128,209,220
138,022,795
142,962,710
150,758,014
172,397,679
162,460,000
152,860,750
Excess of revenues
over (under) expenditures
(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)
Other Financing
Sources (Uses)
Proceeds from debt issuance
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
Premium (discount) on debt issuance
0
0
0
0
1,626,186
80,950
146,030
26,877
1,236,364
21,576
Proceeds from refunding
0
0
0
0
0
7,210,000
5,327,775
38,307,431
13,595,000
3,990,000
Payments to refunded bond escrow agent
0
0
(8,371,711)
0
0
(7,591,171)
(5,538,255)
(37,300,856)
(14,613,147)
(4,376,769)
Transfers in
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
Transfers out
(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)
Other
0
0
0
0
0
0
0
0
0
0
Total other financing
sources (uses)
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
Special Item:
Well field contamination settlement
0
0
0
0
0
4,462,214
0
0
0
0
Net change in fund balances
(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
Debt service as a percentage of
noncapital expenditures (1)
9.8%
11.1%
10.8%
11.4%
12.1%
17.6%
15.4%
13.8%
12.9%
13.4%
Excludes prior period adjustments
(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
62
CITY OF SOUTH BEND, INDIANA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN YEARS
Tax Year/
Collection Year
Per DLGF
Current
Tax Levy
Estimated
Circuit Breaker
Levy
Reduction
Adjusted
Current Tax
Levy
(County Abstract)
Current Tax
Collections
Current Tax
Collections
as a Percent of
Adjusted Tax Levy
Delinquent
Tax
Collections
Total Tax
Collections
Total Tax
Collections as
a Percent of
Adjusted Tax Levy
(1)
Outstanding
Delinquent
Taxes
Outstanding
Delinquent Taxes
as a Percent of
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).
Data provided for General Fund, Parks & Recreation, Cumulative Capital Development, Fire Pension and Police Pension Funds. Excludes College Football Hall of Fame and Tax Increment Financing Funds.
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.
63
City of South Bend, Indiana
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of net assessed value)
(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 I% (homestead residential property), 2% (other residential /rental 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.
64
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
2003/2004
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
2.7758
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
2010/2011
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 Office - Certified Tax
Rate Schedules - Rates
presented for
Portage Township in South Bend
(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 I% (homestead residential property), 2% (other residential /rental 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.
64
City of South Bend, Indiana
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
Gross Assessed Values
Tax Year/
Real
Personal
Utilities
Collection Year
Property
Property
Property
2002/2003
3,849,091,300
816,672,723
74,065,200
2003/2004
3,731,377,160
659,263,940
103,129,310
2004/2005
3,764,507,180
689,419,365
105,604,270
2005/2006
3,789,447,190
655,066,401
98,165,420
2006/2007
4,374,431,415
544,460,152
90,443,780
2007/2008
4,420,513,240
527,383,785
92,736,090
2008/2009
4,698,989,240
592,538,950
95,891,770
2009/2010
4,368,497,000
604,951,450
98,433,750
2010/2011
4,339,037,300
551,819,290
101,009,760
2011/2012
4,255,238,900
560,331,660
95,165,650
2012/2013
4,452,887,970
537,500,490
100,832,450
Total
Value
4,739,829,223
4,493,770,410
4,559,530,815
4,542,679,011
5,009,335,347
5,040,633,115
5,387,419,960
5,071,882,200
4,991,866,350
4,910,736,210
5,091,220,910
(1) Non -taxed property includes adjustments for deductions & exemptions, tax exempt property, tax increment financing property, and
tax abatements.
(2) Excludes Redevelopment Commission (Hall of Fame) tax rate.
Source: St. Joseph County Auditor's Office
65
(2)
Less:
Total Net
City
Non -Taxed
Taxable
Tax
%
Property (1)
Value
Rate
Taxable
1,771,726,609
2,968,102,614
1.9606
62.62%
1,685,920,064
2,807,850,346
2.1115
62.48%
1,740,625,997
2,818,904,818
2.1148
61.82%
1,707,413,121
2,835,265,890
2.1795
62.41%
1,986,978,200
3,022,357,147
2.1046
60.33%
2,064,552,317
2,976,080,798
2.2396
59.04%
2,718,532,541
2,668,887,419
2.4081
49.54%
2,618,376,627
2,453,505,573
2.7279
48.37%
2,667,414,488
2,324,451,862
2.9541
46.56%
2,529,861,602
2,380,874,608
3.0239
48.48%
2,720,133,213
2,371,087,697
3.1108
46.57%
(1) Non -taxed property includes adjustments for deductions & exemptions, tax exempt property, tax increment financing property, and
tax abatements.
(2) Excludes Redevelopment Commission (Hall of Fame) tax rate.
Source: St. Joseph County Auditor's Office
65
City of South Bend, Indiana
Property Tax Collections - Cash Basis
2004 -2013
Fund 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Fund Name Number Actual Actual Actual Actual Actual (2) Actual (3) Actual Actual Actual Actual
General Fund
101
$44,149,333
$44,999,550
$48,768,150
$48,720,726
$14,574,480
$79,162,937
$38,780,847
$38,514,550
$39,368,431
$36,251,397
Parks & Recreation
201
7,479,711
7,754,973
8,363,955
8,271,741
2,461,101
13,919,096
7,591,932
7,613,760
7,824,056
7,207,060
Redevelopment Bonds Studebaker Corridor
310
609,732
565,420
0
11,590
0
0
0
0
0
0
College Football Hall of Fame Debt Service
313
1,300,588
1,246,067
899,472
1,127,140
360,682
2,362,057
1,488,453
1,549,954
1,133,205
1,268,179
Airport TIF District (1)
324
5,588,045
6,246,028
7,515,744
8,851,077
33,400
10,808,912
21,508,430
11,187,768
11,631,287
13,340,354
Cumulative Capital Development
406
984,945
1,004,779
1,054,963
989,824
291,600
1,420,833
587,063
540,454
517,710
463,331
Sample -Ewing TIF District (1)
414
533,304
525,671
732,356
778,093
0
0
0
0
0
0
South Bend Central Development Area TIF
420
2,606,365
2,359,430
3,283,075
3,276,169
12,696
3,870,188
7,336,117
3,633,473
3,671,478
2,590,808
West Washington Street TIF District
422
216,948
193,911
255,510
287,095
1,785
358,844
860,049
431,085
422,715
493,608
Central Medical Service Area TIF District
426
337,721
329,269
333,585
928,113
2,793
919,174
3,524,962
1,704,238
1,606,915
1,221,676
Northeast TIF District
429
0
0
0
13,468
0
22,191
195,400
715,063
1,351,048
841,627
Southside Development Area TIF District
430
0
25,351
28,565
457,985
1,756
355,596
4,094,135
1,808,952
2,466,203
2,404,416
Erskine Commons TIF District (5)
431
0
548
2,585
2,891
10
1,240,184
5,978,592
784,373
0
0
Erskine Village TIF District
432
0
109,248
305,399
775,622
2,713
1,531,403
3,759,287
1,603,182
0
1,311,129
Douglas Road TIF District
435
0
0
0
13,941
0
125,294
460,760
306,053
285,713
323,939
Northeast Residential TIF
436
0
0
0
0
0
0
1,815,829
2,446,103
2,514,048
2,262,765
Airport Urban Enterprise
454
0
0
0
0
0
0
301,430
123,165
111,721
0
Fire Department Employees Pension (4)
701
1,293,471
1,443,033
1,554,387
1,536,839
462,375
1,437,539
(5,867)
0
0
0
Police Department Employees Pension (4)
702
1,128,733
1,296,055
1,397,265
1,380,555
425,760
1,609,905
9,479
0
0
0
Total
$66,228,896
$68,099,332
$74,495,010
$77,422,867
$18,631,150
$119,144,153
$98,267,940
$72,962,173
$72,904,530
$69,980,289
Source - City Accounting System
(1) Fund 414 closed out during 2008 into Fund 324.
(2) Delays in sending out property tax bills until December 19, 2008 (with an on -time due date of February 20, 2009) resulted in interfund borrowing in the General Fund (101), Parks
and Recreation Fund (201) and the College Football Hall of Fame Debt Service Fund (313) at year end. The remainder of property tax revenue was received during the first half of
2009 with final settlement with the St. Joseph County Auditor in July, 2009
(3) Includes collections of 2008 taxes as noted above. Tax Increment Financintg (TIF) 2009 property tax collections were received from the County Auditor on January 21, 2010.
(4) Property tax levy for Police and Fire pension plans eliminated. Funding provided by the State of Indiana.
(5) Erskine Commons TIF District funds were released and outstanding bonds were paid off.
66
CITY OF SOUTH BEND, INDIANA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 2013 ($'s whole)
Civil City
Net Assessed Valuation (2012 pay 2013) of Taxable Property in South B $2,336,906,810
Debt limit: 2% of one third thereof 15,579,379
Less Bonds subject to limitation:
County Economic Development Income Tax Refunding
Revenue Bonds, Series 2006 A (1,455,000)
County Economic Development Income Tax Refunding
Revenue Bonds, Series 2006 B (1,360,000)
Redevelopment District Taxable
Revenue Bonds, Series 2010 (3,520,000)
Issuance Margin $9,244,379
Percentage of Debt to Debt Limit 40.66%
Redevelopment District
Net Assessed Valuation (2012 pay 2013) of Taxable Property in South B $2,336,906,810
Debt limit: 2% of one third thereof 15,579,379
Less Bonds subject to limitation:
Special Taxing District Bonds of 2002 (3,405,000)
Issuance Margin
Percentage of Debt to Debt Limit
$12,174,379
21.86%
A 2% debt limit is established by the Constitution of the State of Indiana. This limit is established for general
obligation bonds, Economic Development Income Tax revenue bonds, tax revenue notes and other types of
indebtedness. This limitation does not include revenue bonds payable from governmental funds (excluding
EDIT bonds) shown in the general long term debt account group. Indiana law allows the creation of separate
municipal corporations to provide vital governmental functions. Each of these municipal corporations
(including the Redevelopment Authority and Redevelopment Commission) has its own 2% debt limit, even if
they have the same or similar boundaries. 67
City of South Bend, Indiana
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Percent of Total Debt 0.00% 35.83% 9.17% 1.20% 3.49% 46.93% 0.22% 1.64% 1.52% 100.00%
Sources: City of South Bend Comprehensive Annual Financial Reports
Population statistics obtained from the U.S. Census Bureau.
City of South Bend estimated personal income is computed as estimated City population x 2012 South Bend Metro Area Per Capita Income (see Demographic Statistics)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Governmental Activities Debt
DCapital Leases
■Notes/Loans Payable
■Mortgage Bonds
■Revenue Bonds
D General Obligation Bonds
68
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Business -Type Activities Debt
O Capital Leases
■Notesll.oans Payable
• Mortgage Bonds
• Revenue Bonds
Governmental Activities
South Bend
South Bend
Total
Business -Type Activities
Debt
Estimated
General
Primary
Estimated
Per
Personal
Percent of
Government
Population
Capita
Fiscal
Obligation
Revenue
Mortgage
Notes/Loans
Capital
Revenue
Mortgage
Notes/Loans
Capital
Year
Bonds
Bonds
Bonds
Payable
Leases
Bonds
Bonds
Payable
Leases
2004
935,000
82,135,000
29,525,289
7,948,868
2,971,007
39,815,000
1,058,415
21,730,271
520,389
2005
320,000
84,225,000
28,994,057
9,539,771
3,454,627
35,990,000
1,015,980
20,659,864
1,710,033
2006
0
82,445,000
27,337,124
11,758,552
3,533,187
44,345,000
972,315
19,258,433
1,523,594
2007
0
78,570,000
25,957,839
7,900,658
7,695,487
73,145,000
926,805
18,380,491
1,127,394
2008
0
115,240,000
24,534,464
9,543,790
7,388,443
67,535,000
878,835
17,031,649
628,427
2009
0
113,975,000
23,061,148
8,470,308
6,214,206
68,225,000
829,020
16,145,358
893,233
2010
0
111,510,000
21,117,295
6,323,199
5,299,341
72,655,000
717,705
16,755,369
799,402
2011
0
101,472,431
19,724,490
4,431,871
7,510,749
88,655,000
660,510
15,542,372
1,077,642
2012
0
96,410,000
17,883,530
4,953,639
8,336,120
117,650,000
601,470
13,848,901
3,641,362
2013
0
90,172,826
23,079,781
3,030,554
8,777,238
118,118,539
551,602
4,121,010
3,830,728
Percent of Total Debt 0.00% 35.83% 9.17% 1.20% 3.49% 46.93% 0.22% 1.64% 1.52% 100.00%
Sources: City of South Bend Comprehensive Annual Financial Reports
Population statistics obtained from the U.S. Census Bureau.
City of South Bend estimated personal income is computed as estimated City population x 2012 South Bend Metro Area Per Capita Income (see Demographic Statistics)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Governmental Activities Debt
DCapital Leases
■Notes/Loans Payable
■Mortgage Bonds
■Revenue Bonds
D General Obligation Bonds
68
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Business -Type Activities Debt
O Capital Leases
■Notesll.oans Payable
• Mortgage Bonds
• Revenue Bonds
South Bend
South Bend
Total
Debt
Estimated
Debt
Primary
Estimated
Per
Personal
Percent of
Government
Population
Capita
Income
Income
186,639,239
105,206
1,774
3,297,156,040
5.66%
185,909,332
105,743
1,758
3,418,459,704
5.44%
191,173,205
104,457
1,830
3,450,632,538
5.54%
213,703,674
104,069
2,053
3,511,183,991
6.09%
242,780,608
104,905
2,314
3,709,126,085
6.55%
237,813,273
106,192
2,239
3,679,658,992
6.46%
235,177,311
101,168
2,325
3,505,572,368
6.71%
239,075,065
101,168
2,363
3,371,120,096
7.09%
263,325,022
101,168
2,603
3,371,120,096
7.81%
251,682,278
101,168
2,488
3,371,120,096
7.47%
Percent of Total Debt 0.00% 35.83% 9.17% 1.20% 3.49% 46.93% 0.22% 1.64% 1.52% 100.00%
Sources: City of South Bend Comprehensive Annual Financial Reports
Population statistics obtained from the U.S. Census Bureau.
City of South Bend estimated personal income is computed as estimated City population x 2012 South Bend Metro Area Per Capita Income (see Demographic Statistics)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Governmental Activities Debt
DCapital Leases
■Notes/Loans Payable
■Mortgage Bonds
■Revenue Bonds
D General Obligation Bonds
68
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Business -Type Activities Debt
O Capital Leases
■Notesll.oans Payable
• Mortgage Bonds
• Revenue Bonds
CITY OF SOUTH BEND, INDIANA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2013 ($'s whole)
Total Overlapping and Underlying Direct Debt and Lease Obligations
Total Direct Debt and Lease Obligation Debt and Overlapping and
Underlying Direct Debt and Lease Obligations
Ratio Factors
Net Assessed Valuation (2012 payable 2013) 2,371,087,697
Population - 2010 US Census Bureau 101,168(3)
South Bend Metropolitan Area 2012 Per Capita Incoi 38,152(4)
Estimated South Bend Total Personal Income (3 x 4) 3,859,761,536
$ 112,062,603 $1,108 4.73 % 2.90 %
S 237.296.863 -S 2.346 10.01 % 6.15 %
(1) Overlapping debt information and schedule prepared by Crowe Horwath LLP, Indianapolis, Indiana.
(2) Overlapping debt percentages are based on the net assessed value of South Bend properties in proportion to the total net assessed value.
(3) Population statistics obtained from the U.S. Census Bureau ( http:/ /factfinder.census /gov /servlet).
(4) South Bend - Mishawaka, IN Metropolitan Area Profile (www.stats.indiana.edu).
69
Percentage
Amount
Ratio of Debt/ Ratio of Debt/
Gross
Applicable to
Applicable to
Debt Per Net Assessed Personal
Debt
South Bend
South Bend
Capita Value Income
Direct Debt:
City of South Bend
General Obligation Bonds
Revenue Bonds - Governmental Activities
$ 89,622,021
100.00 %
$ 89,622,021
Mortgage Bonds - Governmental Activities
22,330,000
100.00
22,330,000
Notes Payable - Governmental Activities
4,505,000
100.00
4,505,000
Capital Leases - Governmental Activities
8,777,239
100.00
8,777,239
Total Direct Debt and Lease Obligation Debt
$ 125,234,260
$1,238 5.28 % 3.24 %
Overlapping Debt (1)(2)
South Bend Community School Corporation
$168,273,370
56.35 %
$ 94,822,044
St. Joseph County Public Library
8,945,000
52.97
4,738,167
South Bend Regional Airport Authority
12,790,000
30.58
3,911,182
St. Joseph County
22,025,000
30.58
6,735,245
Penn- Harris- Madison School Corporation
57,438,994
3.06
1,757,633
Mishawaka - Penn - Harris Public Library
4,030,000
2.44
98,332
Total Overlapping and Underlying Direct Debt and Lease Obligations
Total Direct Debt and Lease Obligation Debt and Overlapping and
Underlying Direct Debt and Lease Obligations
Ratio Factors
Net Assessed Valuation (2012 payable 2013) 2,371,087,697
Population - 2010 US Census Bureau 101,168(3)
South Bend Metropolitan Area 2012 Per Capita Incoi 38,152(4)
Estimated South Bend Total Personal Income (3 x 4) 3,859,761,536
$ 112,062,603 $1,108 4.73 % 2.90 %
S 237.296.863 -S 2.346 10.01 % 6.15 %
(1) Overlapping debt information and schedule prepared by Crowe Horwath LLP, Indianapolis, Indiana.
(2) Overlapping debt percentages are based on the net assessed value of South Bend properties in proportion to the total net assessed value.
(3) Population statistics obtained from the U.S. Census Bureau ( http:/ /factfinder.census /gov /servlet).
(4) South Bend - Mishawaka, IN Metropolitan Area Profile (www.stats.indiana.edu).
69
CITY OF SOUTH BEND, INDIANA
DEMOGRAPHIC STATISTICS
LAST TEN YEARS
South Bend
South Bend
-0.3%
39,940
Metropolitan
Metro Area
South Bend
City of
City of Percent Area
Percent Total Personal Percent
Metro Area
Percent City of South Bend Percent
South Bend Increase/ Median Family
Increase/ Income (3) Increase/
Per Capita
Increase/ South Bend Public School Increase/
Year Population (1) (Decrease) Income (4)
(Decrease) (Millions) (Decrease)
Income (3)
(Decrease) Median Age (4) Enrollment (2) (Decrease)
2004
105,206
-0.3%
39,940
7.5%
8,295
5.2%
31,340
5.2%
32.7
22,140
0.7%
2005
105,743
0.5%
37,971
-4.9%
8,565
3.3%
32,328
3.2%
34.5
22,100
-0.2%
2006
104,457
-1.2%
39,046
2.8%
8,958
4.6%
33,034
2.2%
34.6
21,926
-0.8%
2007
104,069
-0.4%
44,400
13.7%
8,978
0.2%
33,739
2.1%
34.6
21,715
-1.0%
2008
104,905
0.8%
40,684
-8.4%
9,396
4.7%
35,357
4.8%
34.6
20,800
-0.6%
2009
106,192
1.2%
43,403
6.7%
9,466
0.7%
34,651
-2.0%
32.3
20,451
-1.5%
2010
101,168
-4.7%
40,789
-6.0%
9,289
-1.9%
34,286
-1.1%
33.4
20,066
-1.9%
2011
101,168
0.0%
40,873
0.2%
9,768
5.2%
33,322
-2.8%
33.3
19,467
-3.0%
2012
101,168
0.0%
40,873
0.2%
9,768
5.2%
33,322
-2.8%
33.3
18,982
-5.4%
2013
101,168
0.0%
40,873
0.0%
10,162
4.0%
38,152
14.5%
33.3
19,680
1.1%
Sources:
(1) U.S. Census Bureau 2010 Census information (http: / /factfinder2.census.gov). No 2013 information available.
(2) South Bend Community School Corporation Administration office for enrollment on October 1, 2013.
(3) South Bend - Mishawaka, IN MI Metropolitan Area Profile (http: / /www.stats.indiana.edu).
(4) U.S. Census Bureau ( http: / /factfinder2.census.gov). No 2013 information available.
70
CITY OF SOUTH BEND, INDIANA
DEMOGRAPHIC STATISTICS (CONTINUED)
132,981
1.3%
LAST TEN YEARS
6.1%
December
December
December
South Bend
South Bend
South Bend
Metropolitan
Percent Metropolitan Percent
Metropolitan
Area Labor
Increase/ Area Increase/
Unemployment
Year Force (1)
(Decrease) Unemployment (1) (Decrease)
Rate (1)
2004
132,981
1.3%
6,669
6.1%
5.0%
2005
134,033
0.8%
6,956
4.3%
5.2%
2006
134,651
0.5%
6,501
-6.5%
4.8%
2007
132,693
-1.5%
6,291
-3.2%
4.7%
2008
133,433
0.6%
12,476
98.3%
9.4%
2009
123,792
-7.2%
13,474
8.0%
10.9%
2010
125,853
-5.7%
12,648
1.4%
10.0%
2011
129,438
4.6%
12,366
-8.2%
9.6%
2012
124,968
0.9%
12,108
-10.1%
9.7%
2013
124,145
-1.4%
9,211
-27.2%
7.4%
Source:
(1) South Bend - Mishawaka, IN MI Metropolitan Area Profile (http: / /www.stats.indiana.edu).
"Labor Force Overview" employment statistics annual averages.
71
Department
General Government
Mayor's Office
City Clerk's Office
Common Council (elected officials, part -time)
Administration and Finance
City Attorney's Office
Code Enforcement
Engineering
311 Call Center
Safety and Risk
Human Rights
Public Safety
Police Department
Communication Center
Fire Department
Building Maintenance
Culture and Recreation
Parks and Recreation
Convention and Events Management (1)
Economic Development
Department of Community Investment
Highways and Streets
Street Department
Traffic & Lighting
Enterprise Funds
Water Works
Wastewater
Organic Resources (formerly in Wastewater)
Sewer
Solid Waste
Building Department
Internal Service Fund
Central Services
Total Positions
City of South Bend, Indiana
Full-Time Equivalent City Government Employees by Department
Last Ten Fiscal Years
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
10.00
10.00
10.00
10.00
9.00
8.00
7.00
7.00
6.00
6.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
29.00
31.00
32.00
31.00
29.00
26.00
26.00
27.00
22.00
20.00
15.00
15.00
15.00
15.00
15.00
9.00
9.00
9.00
9.00
10.00
28.00
28.00
28.00
27.00
27.00
27.00
23.00
25.00
25.00
24.00
20.00
19.00
19.00
18.50
18.50
16.00
19.00
17.00
15.00
13.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3.00
3.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6.00
6.00
315.00
317.00
317.00
320.00
317.00
279.00
293.00
293.00
291.00
291.00
31.00
31.00
31.00
30.00
30.00
37.00
38.00
35.00
35.00
33.00
257.00
255.00
255.00
254.00
254.00
246.00
255.00
258.00
249.00
255.00
6.00
7.00
7.00
7.00
7.00
4.00
3.00
3.00
0.00
0.00
124.00
123.00
122.00
122.00
121.00
111.00
113.00
114.00
114.00
113.00
50.00
50.00
49.00
16.00
15.00
13.00
13.00
14.00
14.00
14.00
42.00
42.00
42.00
35.00
33.00
26.00
26.00
25.00
24.00
26.00
71.00
71.00
66.00
54.00
54.00
51.00
52.00
56.00
52.00
60.00
11.00
11.00
11.00
11.00
11.00
6.00
0.00
0.00
0.00
0.00
87.00
86.00
86.00
86.00
80.00
82.00
75.00
74.00
73.00
70.00
55.00
51.00
53.00
54.50
56.50
48.00
51.00
49.00
46.00
45.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6.00
6.00
30.00
30.00
29.00
28.00
28.00
33.00
35.00
36.00
39.00
34.00
31.00
31.00
31.00
26.00
26.00
26.00
26.00
23.00
24.00
26.00
22.00
22.00
22.00
22.00
22.00
15.00
13.00
13.00
13.00
14.00
50.00
50.00
49.00
49.00
46.00
39.00
41.00
41.00
42.00
43.00
1,298.00
1,294.00
1,288.00
1,230.00
1,213.00
1,116.00
1,132.00
1,133.00
1,122.00
1,131.00
72
City of South Bend, Indiana
Full-Time Equivalent City Government Employees by Department
Last Ten Fiscal Years
Department 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Summary by Activity
General Government
116.00
117.00
118.00
115.50
112.50
100.00
98.00
99.00
100.00
101.00
Public Safety
609.00
610.00
610.00
611.00
608.00
566.00
589.00
589.00
575.00
579.00
Culture and Recreation
174.00
173.00
171.00
138.00
136.00
124.00
126.00
128.00
128.00
127.00
Economic Development
42.00
42.00
42.00
35.00
33.00
26.00
26.00
25.00
24.00
26.00
Highways and Streets
82.00
82.00
77.00
65.00
65.00
57.00
52.00
56.00
52.00
60.00
Enterprise Funds
225.00
220.00
221.00
216.50
212.50
204.00
200.00
195.00
201.00
195.00
Internal Service Fund
50.00
50.00
49.00
49.00
46.00
39.00
41.00
41.00
42.00
43.00
Total Positions
1,298.00
1,294.00
1,288.00
1,230.00
1,213.00
1,116.00
1,132.00
1,133.00
1,122.00
1,131.00
Excludes seasonal, part-time and temporary positions
(1) Includes reduction of 34 positions in the City's convention facility (Century Center) during 2007. Century Center is being managed by a private company under an agreement
with the City of South Bend.
Source: City of South Bends Performance Based Budgets
and personnel records
Summary of Employees by Activity
1,400.00 Total Posifions
1,200.00 -M- Public Safety
1,000.00 Enterprise Funds
800.00 Culture and Recreation 186.00
181.87 179.00 176.00
600.00 General Government
400.00 Highways and Streets
Internal Service Fund
200.00
Economic Development
0.00
tiQ5
73
CITY OF SOUTH BEND
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31. 2013
The accompanying notes are an integral part of the Schedule of Expenditures of Federal Awards.
74
Pass- Through
Federal
Entity (or Other)
Total
Federal Grantor Agency
CFDA
Identifying
Federal Awards
Cluster Title /Program Title /Project Title
Pass - Through Entity or Direct Grant
Number
Number
Expended
Department of Commerce
Economic Development Cluster
Economic Adjustment Assistance
Direct grant
Industrial Revolving Fund
11.307
06 -19 -01251
$ 7.613.083
Department of Housing and Urban Development
CDBG - Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants
Direct grant
NSP -1
14.218
B08 -MN -18 -0011
126,712
Community Development Block Grants /Entitlement Grants
Direct grant
Block Grant 2011
14.218
B- 11 -MC -18 -0011
668,561
Community Development Block Grants /Entitlement Grants
Direct grant
Block Grant 2012
14.218
B12 -MC -18 -0011
1.623.618
Total - Community Development Block Grants /Entitlement Grants
2,418,891
ARRA - Community Development Block Grants /Entitlement Grants
Direct grant
NSP -3
14.218
B- 11 -MN -18 -0011
1.596.790
Total - CDBG - Entitlement Grants Cluster
4.015.681
Emergency Solutions Grant Program
Direct grant
Emergency Shelter Grant
14.231
E- 11 -MC- 180 -011
51,993
Emergency Shelter Grant
14.231
E- 12 -MC- 180 -011
56,849
Hearth Emergency Shelter Grant
14.231
E13 -MC -18 -0011
94,763
Total - Emergency Solutions Grant Program
203,605
Shelter Plus Care
Direct grant
Shelter Plus Care
14.238
IN0009C5110001104
186.807
Fair Housing Assistance Program - State and Local
Direct grant
Fair Housing Assistance
14.401
FF050018072
47,429
Fair Housing
14.401
FF205K105014
66.093
Total - Fair Housing Assistance Program - State and Local
113.522
Total - Department of Housing and Urban Development
4.519.615
Department of Justice
JAG Program Cluster
Edward Byrne Memorial Justice Assistance Grant Program
Direct grant
Justice Assistance Grant #7
16.738
11 DJBX3458
89,873
Justice Assistance Grant #8
16.738
12DJBX0955
49.124
Total - Edward Byrne Memorial Justice Assistance Grant Program
138.997
ARRA - Recovery Act- Edward Byrne Memorial Justice Assistance Grant
Direct grant
(JAG) Program /Grants to Units of Local Government
Byrne Justice Assistance Grant
16.804
09SBB91280
3.815
Total - JAG Program Cluster
142.812
Equitable Sharing Program
Direct grant
Equitable Sharing Program
16.922
2013
144.750
Total - Department of Justice
287.562
Equal Employment Opportunity Commission
Employment Discrimination - State and Local Fair Employment Practices
Direct grant
Fair Employment Practices Grant
30.002
EECCN100092
84.016
Environmental Protection Agency
Capitalization Grants for Clean Water State Revolving Funds
Indiana Finance Authority
Wastewater State Revolving Ln Fund
66.458
SRF Ln# WW09547102
27.505
Total federal awards expended
$ 12.531.781
The accompanying notes are an integral part of the Schedule of Expenditures of Federal Awards.
74
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BY THE NUMBERS
UPDATED: JUNE 2014
from the City of South Bend
1,000 Homes in 1,000 Days: 119 houses repaired, 128 houses
demolished, 129 houses under contract for demolition.
The City saw over $69.9 million in
construction investment in 2013.
AA
BOND RATING
of all of Indiana's
Second Class Cities
109,724 calls to 311, South Bend's customer - service line.
Over 1,000 jobs were created in 2013. The Department of
Community Investment assisted with the development
of 1 out of 3 of these jobs.
Through the efforts of the Department of Community
Investment, 330 jobs were created in 2013.
An additional 489 jobs were retained.
The City has paired up with EnFocus, which encourages
graduates of Notre Dame's ESTEEM program to spend a
postgraduate year in our community solving problems and
working on issues of civic importance. In 2013, EnFocus
fellows helped save the South Bend community, including the
South Bend Fire Department, $3.2 million
though innovative initiatives.
The City refinanced its Century Center and Sewer Bonds,
saving over $1 million and $970,000 respectively.
SOUTH BENS
PHRI(5 AND AECRERTIDH
In 2013, the South Bend's Parks and Recreation volunteer
program generated 21,892 volunteer
hours valued at $460,128.
Energizing Indiana presented the City of South Bend with
$95,550 in rebate checks for the efficiency achieved in three
downtown parking garages from replacing 775 light fixtures
with T5 fluorescent bulbs, a change which saved $35,433 in
electricity costs. The City will get a full return on its
$250,000 investment in just over 1.5 years.