HomeMy WebLinkAbout2014 Comprehensive Annual Financial Report - Executive SummaryCAFR Executive Summary
FISCAL YEAR ENDING ON DECEMBER 31, 2014
CITY OF SOUTH BEND
PETE BUTTIGIEG, MAYOR
JOHN MURPHY, CITY CONTROLLER
REPORT PREPARED BY
CITY OF SOUTH BEND DEPARTMENT OF ADMINISTRATION AND FINANCE
City of South Bend, Indiana
Comprehensive Annual Financial Report — Executive Summary
For The Year Ending December 31, 2014
Table of Contents
Purpose & Summaries
Purpose of the Executive Summary ........... ...............................
Quick Facts about South Bend ................... ...............................
Chartsand Graphs ..................................... ...............................
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
Net Position by Component — Last Ten Years .... ...............................
Changes in Net Position — Last Ten Years ......... ...............................
Fund Balances, Governmental Funds — Last Ten Years ...................
Changes in Fund Balances, Governmental Funds — Last Ten Years
1
2
.3
.... .............................11
.......... .............................23
.......... .............................26
.......... .............................52
.......... .............................54
...... .............................56
Revenue Capacity
Property Tax Levies and Collections — Last Ten Years ............................
Direct and Overlapping Property Tax Rates — Last Ten Years .................
Assessed Value and Actual Value of Taxable Property — Last Ten Years
Property Tax Collections — Cash Basis — 2005 to 2014 ............................
Debt Capacity
Computation of Legal Debt Margin — December 31, 2014 ................
Ratios of Outstanding Debt by Type — Last Ten Years ....................
Computation of Direct and Overlapping Debt — December 31, 2014
Demographic and Economic Information
Demographic Statistics — Last Ten Years
Operating and Other Information
Full -Time City Government Employees by Department — Last Ten Years
Grant Compliance
Schedule of Expenditures of Federal Awards
58
60
62
63
64
.................. 70
.................. 71
.................. 72
................. 73
.................. 74
.................. 75
.................. 76
77
.................. 78
79
City of South Bend, Indiana
2014 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, 2014. The 2014 CAFR totals 274 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 2014,
this will be the twenty -fifth 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 2014 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 2014 CAFR. In addition, the CAFR Executive
Summary includes summary charts and graphs not featured in the 2014 CAFR. The Executive
Summary totals 79 pages.
The full CAFR is available at the following link:
http: // docs .southbendin.gov /weblink8 /0 /doc /62055 /Electronic.aspx
The CAFR Executive Summary is available here:
www.southbendin.gov /2014CAFREx
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 the SB150 River Lights Lighting.
/gptire•
p �! Quick Facts about South Bend
ills xn5
Year of Incorporation .................................................. ............................... ...........................1865
Mayor...................................................................................... ............................... Pete Buttigieg
Numberof Council Members ....................................................................... ............................... 9
Population (2010 census) .......................................... ............................... ........................101,168
Full -time Employees (12/31/14) .................................. ............................... ..........................1,098
2014 Governmental Activities Expenses ................................ ............................... $ 139,909,059
2014 Business -type Activities Expenses .................................. ............................... $ 55,879,605
2014 Government -Wide Expenses .......................................... ............................... $ 195,788,664
Net Position (12/31/14) ............................................................ ............................... $ 470,512,374
Unrestricted Net Position ( 12/ 31/ 14) ...................................... ............................... $ 130,240,152
Largest Employer ................................................ ............................... University of Notre Dame
(5,590 employees)
Gross Assessed Property Tax Value .................................... ............................... $ 4,842,882,200
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
• East Race Waterway
• Potawatomi Zoo
• Palais Royale
• Blackthorn Golf Course
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City of South Bend, Indiana
Full -Time City Employees by Category
Internal Servic
Highways & Fund, 4%
Streets, 5 %�
General
Government,
8%
Culture &
Recreation, 9 %-----
F
Enterprise-
Funds, 19%
e Economic
Development,
2%
Public Safety,
53%
Department
Full -Time
Positions
Total Full -Time Positions 10 Year Trend
1,350 1,294 1,288
1,300
1,250 1 230
1,200
1,150 1116 1,132 1,133
1,100
1,050
10
1.131
Administration and Finance
21
•
Engineering
14
Legal Department
10
Common Council (elected officials, part -time)
9
Mayor's Office
7
311 Call Center
7
Human Rights
6
City Clerk's Office
5
Safety and Risk
3
-
Police Department
295
Fire Department
257
Communication Center
34
• _
Parks and Recreation
87
Morris PAC /Palais Royale
14
• • •
De artment of Communit Investment
25
•
Street Department
59
Water Works
68
Wastewater
42
Sewer
33
•
Code Enforcement
23
Solid Waste
22
Building Department
13
Organic Resources
6
Central Services
38
Total Full -Time Positions 10 Year Trend
1,350 1,294 1,288
1,300
1,250 1 230
1,200
1,150 1116 1,132 1,133
1,100
1,050
10
1.131
120ON COUNTY -CITY BUILDING
227 W. JEFFERSON BLVD.
SOUTH BEND, INDIANA 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
PHONE 574/ 235 -7678
FAX 574/ 235 -9928
DEPARTMENT OF ADMINISTRATION AND FINANCE
June 30, 2015
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, 2014 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, 2013. 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
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of the Indiana State Board of Accounts. Information related to the single audit, including the
schedule of federal financial assistance, findings and recommendations, and the auditors' reports
on the internal control structure and compliance with applicable laws and regulations, is included
in a separate report.
The following pages of this transmittal letter begin with a general overview of South Bend and the
surrounding area. Also summarized are the key financial, budgetary and property tax controls with
which the City is required to comply. The remainder includes a discussion of the prior year's
financial challenges and accomplishments, the City's goals and objectives for this year and beyond
and other key issues the City is facing along with the impact they may have on current and future
budgets.
GENERAL INFORMATION
The City of South Bend is the county seat of St. Joseph County, Indiana, and is the fourth largest
city in the state. The City of South Bend's 2010 U.S. Bureau of the Census population was
101,168. Accordingly, South Bend is classified as a "City of the Second Class" under Indiana
statutes (cities with a population of 35,000 to 250,000). The City of South Bend operates with a
mayor as chief executive and a nine - member City Common Council composed of six members
elected from districts and three members elected at- large.
The City provides a full range of traditional general governmental services to its citizens. These
services include police and fire protection; sanitation services; the construction and maintenance
of highways, streets and infrastructure; recreational activities and cultural events. In addition to
general governmental activities, the City exercises oversight over the South Bend Water Works,
the South Bend Wastewater Treatment Facility, the Century Center Convention Center, the Morris
Performing Arts Center, the Studebaker National Museum, the City of South Bend Redevelopment
Commission and Authority, and several downtown parking facilities.
Location
St. Joseph County lies within the heartland of the manufacturing belt and metropolitan regions of
the Upper Midwest and Canada. The City of South Bend is located in the north central part of
Indiana, ten miles south of the Michigan state line, and is commonly known to be within the
" Michiana" area. The Michiana area is a vibrant and diverse area with a strong economy based on
a mix of health care, agricultural, service, manufacturing, education and other commercial and
tourism industries. This diverse economic mix creates varied employment opportunities for the
area's residents while providing insulation via diversification from future economic downturns.
The city is approximately 90 miles east of Chicago and 140 miles north of Indianapolis.
Accessibility to transportation, including Interstate 80/90, an international airport (which is the
second busiest in the State of Indiana) and the South Shore Line has supported economic growth
within the community. Proximity to Chicago, the largest rail and 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.
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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 is expected
to have experienced a modest increase to an estimated 267,618 in 2014.
The estimated labor force in St. Joseph County is 135,350 workers (US Census Bureau 2009 -2013
American Community Survey 5 -Year Estimates). The workers are typical of the Midwest: well -
trained with a strong work ethic. Approximately 87.8% of the area's adult population (25 and
older) are high school graduates or higher (as compared to the national average of 75 %) with an
estimated 26.5% 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. For 2014, St. Joseph County experienced an
average unemployment rate of 6.7 %, near average when compared to its surrounding counties
Elkhart (5.2 %), LaPorte (7.7 %), and Marshall (5.6 %) in Indiana and Cass (6.6 %) and Berrien
(6.7 %) in Michigan. Indiana's unemployment rate averaged 5.5% in 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 2009 -2013 American Community Survey 5 -Year Estimates Civilian
Employed Population):
Economic Sector
Educational Services, Healthcare, Social Assistance
Manufacturing
Retail Trade
Number Employed
33,989
19,691
Arts, Entertainment, Recreation, Accommodation,
Food Services
Professional, Scientific, Management, Administrative,
Waste Management Services
Finance and Insurance, Real Estate, Rentals, Leasing
Other Services, except Public Administration
Construction
Transportation and Warehousing, and Utilities
Wholesale Trade
Public Administration
Information
Agriculture, Forestry, Fishing, Hunting, Mining
Total
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13,739
11,463
9,293
6,692
5,611
5,468
5,059
3,585
3,457
1,807
532
120,386
% of Total
28.2%
16.4%
11.4%
9.5%
7.7%
5.6%
4.7%
4.5%
4.2%
3.0%
2.9%
1.5%
0.4%
100.0%
St. Joseph County presently has an estimated 101,947 households with an average per capita
personal income of $23,509, which compares to the State of Indiana average per capita income of
$24,635 and the United States per capita income of $28,155. The per capita income in St. Joseph
County compares favorably with most of its surrounding counties—Elkhart ($21,109), La Porte
($22,852), and Marshall ($21,933) in Indiana and Cass ($22,743) and Berrien ($24,013) in
Michigan.
Health and education lead the employment statistics for St. Joseph County. The largest employers
in St. Joseph County as of December 2014 were as follows: University of Notre Dame (5,590),
Beacon Health Systems (3,400), Trinity Health/St. Joseph Regional Medical Center (3,000), South
Bend Community School Corporation (2,880), AM General (2,738), Martin's Supermarkets
(1,555), Meijer, Inc. (1,450), St. Joseph County (1,300), Indiana University – South Bend (1,266),
1St Source Corporation (1,160), and The City of South Bend (1,098).
The following provides a profile of the residents of St. Joseph County (Census Estimates for
July 2013):
Gender %, male /female:
Age:
Race:
Home Ownership:
48.5% male; 51.5% female
24.2% under 18
11.3% 18 -24 years of age
24.7% 25 -44 years of age
26.0% 45 -64 years of age
13.8% 65 years of age and older
73.6% White
13.1% Black/African American
7.9% Hispanic /Latino
2.2% Asian
3.2% Other
69.5% own; 30.5% 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 2015, the median sales
price for a single family home in the South Bend Statistical Area was $85,100 as compared to a
median sales price of $192,500 in Chicago, $137,000 in Grand Rapids, $106,300 in Ft. Wayne and
$139,200 in Indianapolis. The Midwest median sales price is $156,600.
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
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first dual -site, state - certified technology parks 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 19,308 students in grades pre-
kindergarten through 12. An estimated 5,392 students attend private or parochial schools within
the City. The ten institutions of higher education and technical training located within the South
Bend area have a total enrollment of approximately 31,000. 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. The name Studebaker became synonymous with
the area of South Bend and the company was 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, aerospace and household products. The Singer Sewing Company,
Birdsell Manufacturing 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 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 and the Oliver family Mansion, Copshaholm, 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. Until recently, the stadium was home to the South Bend
Silver Hawks, a Single -A minor league team in the Midwest League affiliated with the Arizona
Diamondbacks. In January 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. In September 2014, a four -year player contract was reached with the
Chicago Cubs and the team became the South Bend Cubs. Total attendance in 2014 of 259,000
was up approximately 9% over 2013, but upon the announcement of the new Cubs franchise, 2015
sales have repeatedly broken records.
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Additional miscellaneous information about the City of South Bend can be found in the statistical
section of this report.
Financial, Budgetary and Property Tax Controls
The City's management team is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the government are protected from loss, theft or
misuse and to ensure that adequate accounting data is compiled to allow for the preparation of
financial statements in conformity with generally accepted accounting principles. The internal
control structure is designed to provide reasonable, but not absolute, assurance that these objectives
are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not
exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires
estimates and judgments by management.
Single Audit. As a recipient of federal and state financial assistance, the City is also 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, 2014 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 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.
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Property Tax Controls. In addition to budgetary and other controls established by Indiana
statute, the City must operate within specific and rigid controls governing the amount of property
tax it may levy. The property tax control program, which began in 1973, limits the amount of
property tax that may be levied by each unit of government in its legally budgeted funds. The total
amount of property tax levied by the unit may increase by the six year average annual growth in
Indiana personal non -farm income, as calculated by the U.S. Bureau of Economic Analysis, with
a 6% maximum.
During March 2008, the State of Indiana General Assembly enacted property tax reform legislation
which made significant changes in the property tax system by capping the amount of property
taxes at 1% of grossed assessed value for residential homesteads, 2% for agricultural /rental
properties and 3% for all other real and personal property. This legislation was phased in over a
two year period beginning in 2009. The loss of revenue to the City due to this legislation was
significant (estimated to be over $28 million dollars in the General Fund) but this revenue loss has
been offset by cost savings and the adoption of local option income taxes 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.
City Mission Statement and Department Purpose Statements
The City provides services to its customers through fourteen (14) 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.
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
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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
(Eton Dev): Creating and expanding opportunities through partnerships in neighborhood
revitalization, commercial and industrial development and community
enhancement.
Public Works: Providing leadership in the development and delivery of engineering, fleet,
transportation, sanitation, wastewater, water and other services as called
upon by our customers.
Building
Department: Serving our customers by inspecting, informing and ensuring a safe place
to work, play and live.
Century Center: Providing a state -of -the -art convention facility with excellent services to
customers while generating maximum economic benefit to our community.
Morris Performing
Arts Center &
Palais Royale: Providing the premiere venue for live entertainment and banquet facility.
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Building South Bend in 2015 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 2015 budget. There are five areas
of concentration that became or remained budget priorities for 2015:
• 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 diverse 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. The City has initiated a "smart streets" program to convert four downtown
streets from one -way to two -way traffic that will make the streets safer and more user - friendly
for pedestrians and non - motorists.
• 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 Bank and the downtown
areas. The City has had many significant economic development projects resulting in $300 million
19
in new private investment and the creation of over 2,000 jobs in the last 24 months. A few of these
projects include the renovation and modernization of our Ethanol Plant, the construction of 1
million square feet of Industrial space (underway), the renovation of 3 large historic buildings in
the downtown to market rate apartments, the rebranding of our minor league baseball team and
new affiliation with Chicago Cubs resulting in record high attendance, the announcement of $700
million in construction to occur at the Notre Dame Campus and the attraction of General Electric
to our Tech Park to partner with Notre Dame on the nations most advanced jet propulsion testing
facility.
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 his first
term, Mayor Buttigieg has launched seven 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.
The Call Center has taken more than 200,000 calls through June 2015 and continues to add
departments to be a central call center for most areas of City government.
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. 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. As of June 2015, 955 of the 1,000 buildings have been
addressed. The remaining 45 buildings should be address as planned by November 2015.
20
7. Smart Streets – an effort to improve the role of streets within South Bend. Projects within
this initiative utilize the "Complete Streets" philosophy which advocates for the design of
streets to enable safe access for all users, including pedestrians, bicyclists, motorists and
transit riders of all ages and abilities. During 2015, the City issued a bond for $25 million
to move the project of two -way street conversions and other Smart Street initiatives
forward.
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. Economic Development – 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, 2013. This was
the 24th 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.
21
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 Plante Moran, PLLC. In addition, we would like to thank
the Field Examiners of the Indiana State Board of Accounts (led by Martha Harper, Alex Flores
and Bruce Snyder) for their hard work and dedication in this effort.
In closing, without the leadership and support of Mayor Pete Buttigieg, City Department Heads,
City Fiscal Officers and members of the City of South Bend Common Council, preparation of this
report would not have been possible.
Sincerely,
John H. Murphy, MPA
City Controller
22
Y*,� 6. llbc4 &
Jennifer Hockenhull, CPA
Deputy City Controller
1
STATE OF INDIANA
AN EQUAL OPPORTUNITY EMPLOYER
INDEPENDENT AUDITOR'S REPORT
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
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, 2014, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We con-
ducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain 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 mak-
ing 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 circum-
stances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we express no such opinion. An audit includes evaluating the appropriateness of accounting
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.
23
INDEPENDENT AUDITOR'S REPORT
(Continued)
Opinions
In our opinion, 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, 2014, and the respective changes
in financial position and, where applicable, cash flows thereof and for the year then ended, in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Manage-
ment's Discussion and Analysis, Schedules of Funding Progress, Schedules of Changes in Net Pension
Liability and Related Ratios, Schedules of Contributions, Schedules of Investment Returns, Budgetary
Comparison Schedules - General Fund and Major Special Revenue Funds, and Budget/GAAP /Reconciliation,
as listed in the Table of Contents, be presented to supplement the basic financial statements. Such informa-
tion, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate 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 collec-
tively comprise the City basic financial statements. The accompanying combining and individual fund finan-
cial statements, other budgetary comparison schedules and the Introductory and Statistical Sections are pre-
sented 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 and individual fund financial statements, and other budgetary com-
parison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The Introductory and Statistical Sections 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.
24
INDEPENDENT AUDITOR'S REPORT
(Continued)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 30,
2015, on our consideration of the City's internal control over financial reporting and on our tests of its compli-
ance 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 overfinancial reporting and compliance.
June 30, 2015
25
P.,,& a �,�
Paul D. Joyce, CPA
State Examiner
City of South Bend, Indiana
Management's Discussion and Analysis
The management of the City of South Bend, Indiana (the "City ") provides herewith this
Management's Discussion and Analysis (MD&A) of the financial activities and condition of the
City of South Bend, Indiana for the fiscal year ended December 31, 2014.
Readers of the information contained within this Management's Discussion and 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 from economic downturns through
diversification.
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 and recreation services, arts and culture, and
sanitation services. In addition, the City provides Water Utility and Wastewater Utility services
to commercial and residential properties within the city. City operations also include the
Century Center convention venue, Morris Performing Arts Center, Palais Royale Ballroom,
Studebaker National 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
26
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
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's Discussion and Analysis report. In 2015,
the City will celebrate its 150th birthday and a year -long series of community activities have been
planned for "SB 150 ".
Financial Highlights
Change vs. prior year
Expenses
Revenues
3,890,735 3,771 ,016 6,387,416 1,268,807 10,278,1 5 1 5,039,823
139,909,059 152,746,550 55,879,605 54,949,283 195,788,664 207,695,833
144,482,843 152,263,646 61 ,583,972 60,743,277 206,066,815 21 3,006,923
• Government -wide net position was $470,512,374 as of December 31, 2014
• Government -wide net position increased by $10,278,151 or 2.2% during fiscal 2014.
Governmental activity net position increased by $3,890,735 or 1.3% and business -type
activity net position increased by $6,387,416 or 3.7% during fiscal 2014. On an overall
basis, the City is better off financially at December 31, 2014 than it was at December 31,
2013.
• Total assets and deferred outflows of resources as of December 31, 2014 of
$801,065,517 decreased by $6,116,536 or -0.8% as compared to total assets and
deferred outflows of resources as of December 31, 2013.
• Total liabilities and deferred inflows of resources as of December 31, 2014 of
$330,553,143 decreased by $19,354,891 or -5.5% as compared to total liabilities and
deferred inflows of resources as of December 31, 2013.
• As of December 31, 2014, the government -wide net position of $470,512,374 has
$304,961,332 invested in capital assets (net of debt) which is not available for spending,
$35,310,890 classified as restricted for debt service; capital outlay; and other; and
$130,240,152 classified as unrestricted and may be used to meet ongoing obligations to
creditors.
27
Governmental
Business -type
Government -wide
Activities
Activities
Activities
2014
2013 (Restated)
2014
2013
2014
2013 (Restated)
Assets /deferred outflows
$ 498,965,722
$ 502,405,650 $
302,099,795 $
304,776,403 $
801 ,065,5 17
$ 807,182,053
Liabilities /deferred inflows
205,520,938
215,811,805
125,032,205
134,096,229
330,553,143
349,908,034
Net Position
Net investment in capital assets
168,275,521
192,190,446
136,685,8 1 1
1 14,506,252
304,96 1,332
306,696,698
Restricted
8,723,878
7,990,172
26,587,012
48,267,664
35,310,890
56,257,836
Unrestricted
116,445,385
89,373,431
13,794,767
7,906,258
130,240,152
97,279,689
Total net position
293,444,784
289,554,049
177,067,590
170,680,174
470,512,374
460,234,223
Change vs. prior year
Expenses
Revenues
3,890,735 3,771 ,016 6,387,416 1,268,807 10,278,1 5 1 5,039,823
139,909,059 152,746,550 55,879,605 54,949,283 195,788,664 207,695,833
144,482,843 152,263,646 61 ,583,972 60,743,277 206,066,815 21 3,006,923
• Government -wide net position was $470,512,374 as of December 31, 2014
• Government -wide net position increased by $10,278,151 or 2.2% during fiscal 2014.
Governmental activity net position increased by $3,890,735 or 1.3% and business -type
activity net position increased by $6,387,416 or 3.7% during fiscal 2014. On an overall
basis, the City is better off financially at December 31, 2014 than it was at December 31,
2013.
• Total assets and deferred outflows of resources as of December 31, 2014 of
$801,065,517 decreased by $6,116,536 or -0.8% as compared to total assets and
deferred outflows of resources as of December 31, 2013.
• Total liabilities and deferred inflows of resources as of December 31, 2014 of
$330,553,143 decreased by $19,354,891 or -5.5% as compared to total liabilities and
deferred inflows of resources as of December 31, 2013.
• As of December 31, 2014, the government -wide net position of $470,512,374 has
$304,961,332 invested in capital assets (net of debt) which is not available for spending,
$35,310,890 classified as restricted for debt service; capital outlay; and other; and
$130,240,152 classified as unrestricted and may be used to meet ongoing obligations to
creditors.
27
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
• Government -wide revenue received in fiscal 2014 totaled $206,066,815, a decrease of
$6,940,108 or -3.3% versus government -wide revenues received in fiscal 2013.
Governmental activity revenue decreased by $7,780,803 or -5.1 %, whereas business -
type activity revenue increased by $840,695 or 1.4 %.
• Government -wide expenses in 2014 totaled $195,788,664, a decrease of $11,907,169 or
-5.7% compared to expenses of $207,695,833 in 2013. Government activity expenses
decreased by $12,837,491 or -8.4% and business -type activity expenses increased by
$930,322 or 1.7% compared to fiscal 2013.
• 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 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, 2014. 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.
28
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
• 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, 2014. 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 and recreation services, and arts and culture.
The major business -type activities of the City include the water utility, wastewater utility, solid
waste sanitation services, Century Center convention center, and Blackthorn golf course
operations.
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance - related
legal requirements. All of the funds of the City of South Bend can be divided into three
categories: governmental funds, proprietary funds and fiduciary funds. Each fund has its own
cash balance which must be maintained according to the City's cash reserve policy.
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 (LOIT), County Option Income Tax, Economic Development Income
Tax, and Airport TIF) and sixty -three (63) non major governmental funds.
29
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
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, which are considered
major enterprise funds. Data from the other four (4) nonmajor enterprise funds
(Consolidated Building Department, Parking Garage, Solid Waste and Blackthorn Golf
Course) are combined into a single, aggregated presentation. Individual fund data for each of
these nonmajor 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 six (6) fiduciary funds, which consist of two (2) pension trust funds (1925 Police
Pension and 1937 Firefighters' Pension), three (3) agency funds (Payroll, Police Distributions
Payable and Morris /Palais Royale Box Office), and one (1) private - purpose trust fund (City
Cemetery).
30
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
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 I, 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. The State makes certain contributions toward
the funding of the 1925 Police Officers' and 1937 Firefighters' pension plans.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential in order to
have a full understanding of the data provided in the government -wide and fund financial
statements.
Other Information
In addition to the basic financial statements and accompanying notes and disclosures, this CAFR
presents supplementary information ( "Required Supplementary Information" or "RSI ")
immediately following the basic financial statements. Other supplementary information is found
in the Statistical Section. The combining statements referred to earlier in connection with non -
major governmental, enterprise, internal service and fiduciary funds are presented immediately
after the Required Supplementary Information within the financial statement section of the
CAF R.
31
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Government -wide Financial Statements
The following financial analysis will focus on the statement of net position and statement of
changes in net position of the City's governmental and business -type activities.
Statement of Net Position
Governmental Business -type Government -wide
Activities Activities Activities
2014 2013 (Restated) 2014 2013 2014 2013 (Restated)
Assets
Current and other $ 214,391,686 $ 218,030,938 $ 64,664,042 $ 71,410,179 $ 279,055,728 $ 289,441,1 17
Capital assets (net) 284,574,036 284,374,712 236,196,523 231,494,566 520,770,559 515,869,278
Total Assets
498,965,722
502,405,650
300,860,565
302,904,745
799,826,287
805,3 10,395
Deferred Outflows
-
-
1,239,230
1 ,871 ,658
1,239,230
1 ,871 ,658
Liabilities
Current
30,496,632
30,589,281
14,3 15,1 78
15,240,917
44,81 1,810
45,830,198
Long term
174,715,186
184,657,140
1 10,277,807
1 18,3 1 7,952
284,992,993
302,975,092
Total Liabilities
205,21 1,818
215,246,421
124,592,985
133,558,869
329,804,803
348,805,290
Deferred Inflows
309,120
565,384
439,220
537,360
748,340
1, 102,744
Net Position
Net investment in capital assets
168,275,521
192,190,446
136,685,8 1 1
1 14,506,252
304,96 1 ,332
306,696,698
Restricted
8,723,878
7,990,172
26,587,012
48,267,664
35,310,890
56,257,836
Unrestricted
116,445,385
89,373,431
13,794,767
7,906,258
130,240,152
97,279,689
Total Net Position
$ 293,444,784 $
289,554,049
$ 177,067,590 $
170,680,174 $
470,512,374
$ 460,234,223
• As of December 31, 2014, total assets and deferred outflows exceeded liabilities and
deferred inflows by $470,512,374, an increase of $10,278,151, or 2.2 %, from the net
position level as of December 31, 2013.
• Governmental activities net position of $293,444,784 increased by $3,890,735 from
December 31, 2013, an increase of 1.3 %.
• Business -type net position of $177,067,590 increased by $6,387,416 over December 31,
2013, an increase of 3.7 %. The increase in business -type net position was due primarily to a
5% 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 $6,116,536 or -0.8% as
compared to amounts as of December 31, 2013 mainly due to spending on capital projects
and principal payments on debt.
• Government -wide liabilities and deferred inflows decreased by $19,354,891 or -5.5% as
compared to amounts as of December 31, 2013. The decrease is due mainly to the City's
decision to not seek new debt financing for the Wastewater utility in 2014, unlike in previous
years which the utility issued bonds of $20 million or more, and principal payments on
existing debt. The City is currently re- evaluating compliance with its long -term control plan
and new Wastewater utility bonds are not anticipated during 2015 or 2016.
32
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Statement of Changes in Net Position
Expenses
Governmental
Business -type
Government -wide
Activities
Activities
19,01 3,453
Activities
2014
2013
2014
2013
2014
2013
Revenue
68,783,155
76,023,819
Highways and streets
13,031,500
20,915,815
Program revenue:
13,031,500
20,915,815
Culture and recreation
16,802,31 1
26,846,471
Charge for services
$ 1 1,473,867
$ 13,158,358 $
59,858,306 $
59,906,998
$ 71,332,173
$ 73,065,356
Operating grants
3,203,805
21 ,466,622
-
-
3,203,805
21 ,466,622
Capital grants
-
1,867,213
95,834
697,917
95,834
2,565,1 30
General revenue:
15,221,865
13,020,610
15,221 ,865
Wastewater utility
Taxes
26,390,790
25,521,753
26,390,790
Civic center
Property tax
69,221 ,468
72,018,650
-
-
69,221 ,468
72,018,650
Other tax
23,822,661
22,81 1,296
1, 1 3 1 ,81 5
Parking
23,822,661
22,81 1,296
Unrestricted grants
29,061,942
5,893,924
1,285,056
Solid waste
29,061,942
5,893,924
Investment earnings
951,901
762,269
128,168
138,362
1,080,069
900,631
Other revenue
6,747,199
14,285,314
1,501,664
-
8,248,863
14,285,314
Total Revenue
144,482,843
152,263,646
61,5839972
609743,277
206,066,815
213,0069923
Expenses
General government
19,01 3,453
12,929,631
19,01 3,453
12,929,631
Public safety
68,783,155
76,023,819
68,783,155
76,023,819
Highways and streets
13,031,500
20,915,815
13,031,500
20,915,815
Culture and recreation
16,802,31 1
26,846,471
16,802,31 1
26,846,471
Economic development
19,780,791
10,069,690
19,780,791
10,069,690
Interest on long -term debt
2,497,849
5,961,124
2,497,849
5,961,124
Water utility
-
-
13,020,610
15,221,865
13,020,610
15,221 ,865
Wastewater utility
25,521,753
26,390,790
25,521,753
26,390,790
Civic center
4,747,838
4,330,656
4,747,838
4,330,656
Building department
3,242,320
1, 1 3 1 ,815
3,242,320
1, 1 3 1 ,81 5
Parking
1,660,596
1,285,056
1,660,596
1,285,056
Solid waste
5,81 1,526
5,091,588
5,81 1,526
5,091 ,588
Golf course
1,874,962
1,497,513
1 ,874,962
1,497,513
Total Expenses
139,909,059
152,746,550
55,879,605
54,949,283
195,788,664
207,695,833
Change in net position
Before transfers
4,573,784
(482,904)
5,704,367
5,793,994
10,278,151
5,31 1,090
Transfers
(683,049)
4,525,187
683,049
(4,525,187)
-
-
Change in net position
3,890,735
4,042,283
6,387,416
19268,807
10,278,151
5,31 1,090
Beginning net position
289,554,049
285,511,766
170,680,174
169,411,367
460,234,223
454,923,133
(restated)
Ending net position
$ 293,444,784
$ 289,554,049
$ 177,067,590
$ 170,680,174
$ 470,512,374
$ 460,234,223
Governmental Activities
Net position for governmental activities increased by $3,890,735 during fiscal 2014, an increase
of 1.3 %. Revenue of $144,482,843 decreased by $7,780,803, or -5.1%. Expenses were
$139,909,059 during 2014, a decrease of $12,837,491, or -8.4% as compared to fiscal 2013.
The revenue decreases were due primarily to one -time payments for legal settlements, most
notably from the Studebaker - Oliver Brownfield ($3.8 million) and Bosch ($2.0 million) in 2013
that were not received in 2014. Economic Development expenses decreased significantly due to
the delays in certain capital projects due to developer timetables and needs. The timing of
economic development project work is difficult to predict.
33
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Interest on long -term debt of $2,497,849 decreased by $3,463,275 from 2013, as the City
continued to take advantage of favorable financing rates by either retiring older, higher -rate
instruments or refinancing instruments at better terms, along with the normal decrease in
interest amounts due as the debt is repaid.
Transfers between funds were lower during 2014 due to an accounting change in the Public
Safety LOIT fund. During 2014, expenditures for personnel costs of police officers and
firefighters were made directly from this fund while in the past, the local income tax revenue
was transferred to the General Fund and then appropriated from the General Fund.
Business -type Activities
Net position from business -type activities increased by $6,387,416 during fiscal 2014, an
increase of 3.7 %. During 2014, revenue of $61,583,972 increased by $840,695 or 1.4% over
fiscal 2013. During 2014, expenses of $55,879,605 increased by $930,322 or 1.7% when
compared to fiscal 2013.
Revenue increased primarily in the Wastewater utility as a result of a 5% rate increase that was
approved by the South Bend Common Council. Expenses in the Consolidated Building Fund
increased by $2,110,505 for 2014, due primarily to the addition of the Code Enforcement and
Animal Care & Control Departments in this fund. In prior years, the costs of Code Enforcement
and Animal Care & Control were paid from the General Fund.
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.
34
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Condensed Balance Sheet,
Statement of Revenue, Ex enditures, and Changes in Fund Balance
As of December 31, 2014
General Park & Rec PS LOIT COIT EDIT TIF Airport Other Total
Total assets $ 30,058,742 $ 3,560,875 $ 1,293,292 $ 17,157,297 $ 10,440,703 $ 42,237,970 $ 105,069,783 $ 209,818,662
Total liabilities 2,471,337 277,728 284,728 640,415 112,987 872,760 10,672,035 15,331,990
Fund Balances:
61,827,950
10,055,729
Nonspendable
558,304 52,385 - 174,999 270,001 8,835,659 15,474,263
25,365,611
Restricted
- 3,230,762 1,008,564 - - 32,529,551 57,434,567
94,203,444
Committed
- - - - - - 16,413,498
16,413,498
Assigned
- - - 16,341,883 10,057,715 - 10,776,249
37,175,847
Unassigned
27,029,101 - - - - - (5,700,829)
21,328,272
Total fund balance
27,587,405 3,283,147 1,008,564 16,516,882 10,327,716 41,365,210 94,397,748
194,486,672
Liability & fund balance 30,058,742 3,560,875 1,293,292 17,157,297 10,440,703 42,237,970 105,069,783 209,818,662
Revenues
61,827,950
10,055,729
6,385,841
9,219,379
9,217,418
13,925,807
33,857,667
144,489,791
Expenditures
66,495,442
11,505,018
7,172,496
7,584,986
6,220,639
7,109,532
48,211,984
154,300,097
Net surplus (deficit)
(4,667,492)
(1,449,289)
(786,655)
1,634,393
2,996,779
6,816,275
(14,354,317)
(9,810,306)
Other sources (uses)
4,585,984
647,018
(1,916,279)
(3,833,985)
(1,466,084)
9,095,009
7,111,663
Net change in fund
(81,508)
(802,271)
(786,655)
(281,886)
(837,206)
5,350,191
(5,259,308)
(2,698,643)
balances
Beginning fund balances 27,668,913 4,085,418 1,795,219 16,798,768 1 1,164,922 36,015,019 99,657,056 197, 185,315
Ending fund balances $ 27,587,405 $ 3,283,147 $ 1,008,564 $ 16,516,882 $ 10,327,716 $ 41,365,210 $ 94,397,748 $194,486,672
As of December 31, 2014, the City governmental funds reported a combined ending fund
balance of $194,486,672.
The nonspendable fund balance of $25,365,611 is sequestered for property held for resale,
inventory, and long -term receivables and is, therefore, not available for new spending. The
restricted fund balance of $94,203,444 consists of monies in debt service funds or other funds
such as road and tax increment financing funds that are limited by external parties as to their
use. The committed fund balance of $16,413,498 is designated by the South Bend Common
Council or South Bend Redevelopment Commission to be used for certain purposes such as for
environmental projects. The assigned fund balance of $37,175,847 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 $21,328,272 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, certain culture and recreation expenses, and certain debt service
obligations. As of January 1, 2014, Code Enforcement and its subsidiary, Animal Care & Control,
were moved to the Consolidated Building fund.
As of December 31, 2014, the General Fund balance of $27,587,405 represents a decrease of
$81,508 or -0.3% from the balance as of December 31, 2013. The decrease was due primarily
to the adjustment of a long -term advance from the General Fund to the Hall of Fame Capital
Fund.
As of December 31, 2014, the General Fund had an unassigned fund balance of $27,029,101
which is equal to 43.7% of 2014 General Fund revenue.
35
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
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 2015 as a cash flow bridge to the receipt of property tax revenues from the County
collection authority which distributes property tax revenue twice per year (June and December).
The General Fund unassigned balance will provide sufficient cash to cover City operating
obligations without incurring tax anticipation notes and resultant borrowing costs during fiscal
2015.
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 $802,271 during fiscal 2014, due primarily
to a combination of flat property tax revenue and increased service and capital costs. As of
December 31, 2014, the fund balance in the Parks and Recreation Fund was $3,283,147, or
32.6% of 2014 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 %) 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. Public Safety LOIT funds are
used 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 2014 of
$6,385,841 increased by $490,401 or 8.3% compared to 2013. The decrease in fund balance in
the amount of $786,655 during 2014 is the result of increased costs for police and fire personnel
and was a planned spend -down of monies accumulated in the fund for this purpose.
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
and information technology costs, and certain debt service payments.
The COIT fund balance decreased by $281,886 during 2014, due to higher expenditures for the
curb and sidewalk program and information technology. The City has operationally sequestered
COIT funds for use in major capital and construction funding initiatives, certain subsidies and
support to organizations and units that benefit city economic development and cultural venues,
information technology costs, city -wide expenditures like telephone and electricity for street
lights, and certain debt service payments.
36
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
As of December 31, 2014, the COIT Fund balance of $16,516,882 included assigned fund
balance of $16,341,883 and nonspendable fund balance of $174,999, primarily for property held
for resale.
The EDIT fund balance decreased by $837,206 during 2014 due to expenses related to initiatives
of the highest priority such as the commitment of demolition of vacant and abandoned buildings
and operating transfers to the Code Enforcement and Animal Care & Control Departments. 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, 2014, the EDIT fund balance of $10,327,716 included assigned fund balance
of $10,057,715 and nonspendable fund balance of $270,001, consisting of property held for
resale.
The fund balance in the TIF Airport Fund increased by $5,350,191 during 2014. Revenue
increased by $2,983,162 due to increased property tax collections and economic development
within the tax increment financing district. Actual expenditures increased by $622,670 due to
continuation of projects into 2014.
As of December 31, 2014, the TIF Airport Fund balance of $41,365,210 included $8,835,659 in
property held for resale, and $32,529,551 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
$645 million in private investment since its inception.
During 2014, the fund balances in Nonmajor Governmental funds decreased by $5,259,308
due primarily to expenditures of $4,172,162 in the Major Moves Fund for the smart- streets
(two -way streets) program and $2,325,109 in the Loss Recovery Fund for the vacant and
abandoned building initiative and other environmental projects. These were planned uses of
accumulated cash reserves.
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 nonmajor governmental funds is provided in the form of the
combining statements immediately following the Required Supplemental Information within the
Financial Section of the CAFR.
37
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Governmental Fund Revenue
The following schedule presents a summary of governmental fund revenue for the year ended
December 31, 2014 with comparison to the prior year:
2014 % of 2013 % of
Actual Total Actual Total
Tax Based
General property
$ 69,221 ,468
47.9% $
72,018,651
47.6%
County option income
15,025,840
10.4%
13,739,325
9.1%
County economic development
8,796,821
6.1%
8,177,352
5.4%
Professional sports development
588,054
0.4%
649,996
0.4%
Community revitalization district
-
0.0%
244,623
0.2%
Total Tax
93,632,183
64.8%
94,829,947
62.7%
Non -Tax Based
Licenses and permits
141,565
0.1%
177,019
0.1%
Intergovernmental
30,663,505
21.1%
29,227,759
19.4%
Charge for services
10,628,976
7.4%
12,320,498
8.2%
Fines and forfeitures
563,999
0.4%
660,841
0.4%
Interest income
955,376
0.7%
762,270
0.5%
Donations
-
0.0%
367,825
0.2%
Other
7,904,187
5.5%
12,806,3 15
8.5%
Total Non -Tax Based
50,857,608
35.2%
56,322,527
37.3%
Total Revenue $ 144,489,791 100.0% $ 151,152,474 100.0%
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, the so- called "circuit breaker" property
tax caps in 2009, to no more than 1.0% (homestead), 2.0% (other residential /rental) or 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, Excess Levy
Fund, and a special levy to cover debt service at the former College Football Hall of Fame
building.
38
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
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
0.25% public safety local option income tax and a 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 (TACT) "Hometown Matters" to lobby the state legislature to enable alternative
revenue sources that best fit the needs of the community. One viable source of revenue is from
user fees and /or charges for services currently being performed. City- performed services are
priced 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 functional 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, 2014 with comparison to the prior year.
General government
Public safety
Highways and streets
Community and economic development
Culture and recreation
Debt service
Capital outlay
2014
Actual
% of
Total
2013
Actual
% of
Total
$ 8,022,688
5.2% $
7,154,965
4.7%
66,927,250
43.4%
64,041,549
41.9%
10,441,957
6.8%
9,769,942
6.4%
7,309,130
4.7%
8,068,458
5.3%
13,948,089
9.0%
13,956,025
9.1%
18,243,049
1 1.8%
19,121,148
12.5%
29,407,934
19.1%
30,748,663
20.1%
Total Expenditures $ 154,300,097 100.0% $ 152,860,750 100.0%
Government fund expenditures in fiscal 2014 of $154,300,097 increased by $1,439,347 or 0.9%
in comparison to government fund expenditures in fiscal 2013.
Capital outlay expenditures decreased by $1 ,340,729 during 2014 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.
39
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Public Safety expenditures increased $2,885,701 or 4.5% due to higher personnel and health
insurance costs. In addition, there was less grant funding available for police and fire programs.
Highways and Street expenditures increased by $672,015 as the curb and sidewalk program was
expanded and additional work on street maintenance was performed.
Economic development spending decreased $759,328 as certain projects planned for 2014 were
delayed until 2015 due to developer timetables and needs.
Public Safety expenditure continues to be the primary use of government fund resources with
43.4% of expenditures used for this purpose in fiscal 2014. Public safety spending is followed by
capital outlay expenditures (19.1 %), debt service (11.8%), culture and recreation (9.0 %),
highways and streets (6.8 %), general government (5.2 %), and economic development operating
(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.
40
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Proprietary funds
Condensed Statement of Net Position
Revenue, Expenses, and Changes in Fund Net Position
As of December 31, 2014
Total assets
Total deferred outflows
Total liabilities
Total deferred inflows
Net position:
Net investment in capital assets
Restricted for:
Depreciation fund
Debt service fund
Customer deposit fund
Cash with fiscal agent
Bond reserve fund
Operating reserve fund
Capital outlay
Unrestricted
Water Utility
Wastewater
Century Center
Other
Total Enterprise
Internal Service
8,607,888
Utility
14,373,176
34,009,1 17
2,227,1 71
9,248,842
$ 75,319,862
$ 193,908,225
$ 17,935,423 $
15,176,977
$ 302,340,487
$ 14,421,734
117,927
558,649
-
562,654
1,239,230
-
22,262,182
99,094,340
353,942
4,362,443
126,072,907
5,81 3,846
-
-
431,250
7,970
439,220
-
41 ,681 ,472
69,426,163
15,400,219
10,1 77,957
136,685,8 1 1
1 ,281 ,201
3,135,399
3,747,697
-
-
6,883,096
-
4,650
789,489
-
-
794,139
2,629,185
1,478,773
1,505,378
-
-
2,984,151
-
32,120
76,667
-
-
108,787
(2,914,332)
1,612,825
7,286,832
-
8,899,657
(221,985)
2,081,600
3,416,919
1,871,167
6,387,416
5,498,519
-
-
-
1,418,663
-
1,418,663
-
3,148,768
9,123,389
331,349
1 ,191 ,26 1
13,794,767
7,326,687
Total net position
53,175,607
95,372,534
17,150,231
11,369,218
177,067,590
8,607,888
Operating revenues
14,373,176
34,009,1 17
2,227,1 71
9,248,842
59,858,306
23,618,777
Operating expenses
11,985,784
20,401,253
4,844,694
12,002,395
49,234,126
25,466,031
Operating income (loss)
2,387,392
13,607,864
(2,617,523)
(2,753,553)
10,624,180
(1,847,254)
Nonoperating rev (exp)
(990,529)
(5,042,957)
1,598,849
(581,010)
(5,015,647)
30,040
Income (loss) before contributions and
1,396,863
8,564,907
(1,018,674)
(3,334,563)
5,608,533
(1,817,214)
transfers
Capital contributions
-
-
106,333
2,629,185
2,735,518
16,017
Transfers in
-
-
-
2,576,545
2,576,545
-
Transfers out
(1,618,848)
(2,914,332)
(4,533,180)
Change in net position
(221,985)
5,650,575
(912,341)
1,871,167
6,387,416
(1,801,197)
Total net position — beginning 53,397,592 89,721,959 18,062,572 9,498,051 170,680,174 10,409,085
Total net position — ending $ 53,175,607 $ 95,372,534 $ 17,150,231 $ 11,369,218 $ 177,067,590 $ 8,607,888
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 Building Department, Parking Garage, Solid Waste and
Blackthorn Golf Course) are combined into a single, aggregated presentation. As of January 1,
2014, the Consolidated Building Fund also included the Code Enforcement department with its
subsidiary, Animal Care & Control.
41
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
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, 2014, City enterprise funds reported a net position of $177,067,590, an
increase of $6,387,416 or 3.7% from December 31, 2013.
At December 31, 2014, net position includes net investment in capital assets of $136,685,81 1,
restricted net position of $26,587,012 and unrestricted of $13,794,767.
During 2014, the Water Works experienced a decrease in net position of $221,985 while the
Wastewater utility experienced an increase of $5,650,575. The water utility experienced
increased revenues of $589,475 while transmission and distribution /pumping expense decreased
by $2,259,156. The Wastewater utility experienced an increase in revenue of $2,083,039 and
operating expense increased by $2,607,777. Through a series of sewer rate increases approved
by the South Bend Common Council, 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 2014, Century Center experienced a decrease in net position of $912,341 as the facility
transitioned to a new management company, SMG, in July 2013. In 2013, SMG contributed
$575,000 to the facility to provide some much - needed equipment upgrades. The capital
contribution is being amortized to revenue over the course of the initial contract which expires
June 30, 2016.
Nonmajor Enterprise Funds experienced an increase in net position of $1,871,167 during
2014. The Parking Garage Fund reported a decrease in net position of $637,289 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 $681,996 as the result of improved golf fee
revenue and the adjustment of interfund loans. (The course was sold to a private developer in
March 2015). The Consolidated Building Fund reported an increase in net position of $2,340,595
with the addition of the Code Enforcement and Animal Care & Control Departments, along
with funding from the EDIT Fund. The Solid Waste Fund reported a decrease in net position of
$514, 135 as the cost of service increased without a requisite rate increase. The last solid waste
fee increase was during 2007 and a fee increase is being planned for 2015.
42
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
As of December 31, 2014, City's internal service funds reported a net position of $8,607,888, a
decrease of $1,801,197 or -17.3% compared to 2013. The Liability Insurance Fund decreased its
net position by $478,367 in 2014 as the result of high claims. The Central Services Fund
increased its net position by $80,188. The Self- Funded Employee Benefits Fund had a decrease
in its net position of $1,458,246 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 and is planning to offer a near -site
employee health clinic during 2015.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. The City maintains six fiduciary funds, which consist of two pension trust funds
(1925 Police Pension and 1937 Firefighters' Pension), one private - purpose trust fund
(Cemetery) and three agency funds (Payroll, Police Distributions Payable and Morris /Palais
Royale Box Office).
Pension Trust Private Purpose Trust Agency
Total assets $ 1,750,191 $ 28,379 $ 2,175,439
Total liabilities 367 - 2,175,439
Total net position 1,749,824 28,379 -
Total additions 1 1,252,498 127 -
Total deductions 12,135,121 8,658 -
Changes in net position (882,623) (8,531) -
Effective in fiscal 2009, with the passage of State legislation, the State of Indiana began making
contributions to the 1925 Police and 1937 Firefighters' Pension Funds. These funds no
longer receive property tax revenue distributions beyond fiscal 2009. The administration of the
pension plans is the responsibility of the City.
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 contributions received from the State of Indiana, as well as
the cost of healthcare benefits to pension members which are not covered by State
contributions.
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 I 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 2014 budget at its meeting held in October
2013.
43
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
The General Fund budget applicable for fiscal 2014 is reported as follows:
Actual Budgetary
Original Final Basis Variance
Revenue
$ 55,453,616 $
54,882,073 $
55,106,216 $
224,143
Expenditures
55,416,768
56,954,789
55,423,268
1,531 ,521
Surplus (deficit)
36,848
(2,072,716)
(317,052)
1,755,664
General Fund revenue was originally budgeted at $55,453,616 for fiscal 2014. During the year,
the General Fund revenue budget was decreased by $571,543 to $54,882,073. 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 2014, the General Fund collected $55,106,216 in revenue on a budgetary basis, a surplus
over the final budget level of $224,143. The primary reason for the revenue pickup was a change
in property tax collections that was higher than budgeted.
General Fund expenditures were originally budgeted at $55,416,768 for fiscal 2014. During the
year, the General Fund expenditure budget was increased $1,538,021 to $56,954,789.
Additional appropriations were passed for Fire Department overtime, Common Council legal
expenditures and other purposes. Carryforward of unspent encumbrances from 2013 also
increase the 2014 amended budget.
General Fund spending is reviewed on a monthly basis under the direction of the City Controller
to ensure spending remains within budgetary constraints. Monthly 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)
were submitted to Common Council three times during 2014, as required to adjust the budget
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, 2014, amounted to $55,423,268. The
expenditures and commitments as of year -end December 31, 2014 are less than the 2014
General Fund expenditure budget by $1,531,524 or 2.7 %. The largest savings were in the
police, legal and administration /finance department budgets as personnel and other costs spent
were less than budgeted due to position vacancies and other factors.
44
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Capital Assets and Debt Administration
Statement of Capital Assets
Governmental Business type Government -wide
Activities Activities Activities
2014 2013 2014 2013 2014 2013
Assets not depreciated
Land
$ 15,106,806 $
15,883,485 $
3,773,864 $
3,024,582 $
18,880,670 $
18,908,067
Construction in progress
3,698,336
-
17,242,386
13,925,01 1
20,940,722
13,925,01 1
Total
18,805,142
15,883,485
21,016,250
16,949,593
39,821,392
32,833,078
Assets depreciated
Buildings
130,746,059
130,068,334
85,003,1 18
82,972,550
215,749,177
213,040,884
Non - building improvements
16,616,553
16,281,242
29,427,578
26,380,406
46,044,131
42,661,648
Machinery and equipment
50,903,040
46,353,978
32,250,580
30,211,994
83,153,620
76,565,972
Roads and Infrastructure
431,536,099
421,539,956
197,923,650
195,443,128
629,459,749
616,983,084
Total Cost
629,801,751
614,243,510
344,604,926
335,008,078
974,406,677
949,251,588
Accumulated depreciation
Buildings
43,779,147
40,365,200
35,712,273
33,316,084
79,491,420
73,681,284
Non - building improvements
8,708,806
8,031,397
6,982,898
5,728,277
15,691,704
13,759,674
Machinery and equipment
30,799,186
28,077,898
22,712,559
21,578,145
53,511,745
49,656,043
Roads
280,745,718
269,277,787
64,016,923
59,840,599
344,762,641
329,118,386
Total
364,032,857
345,752,282
129,424,653
120,463,105
493,457,510
466,215,387
Net Depreciated Assets
265,768,894
268,491,228
215, 180,273
214,544,973
480,949,167
483,036,201
Net Capital Assets
$ 284,574,036 $
284,374,713 $
236,196,523 $
231,494,566 $
520,770,559 $
515,869,279
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 $629,459,749
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.
45
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Maior Capital Asset Proiect Spendinjq in 2014
Improvements
Road improvements
Economic redevelopment
Water utility
Sewer separation projects
M &E
Wastewater digester upgrade
Wastewater clarifier upgrades
Other wastewater projects
Capital Assets Analysis
$ 1,913,610
Continued project
1,784,726
Continued project
2,565,058
Continued project
2,852,725
Continued project
6,896,354 Continued project
4,256,644 Continued project
671,608 New projects
As of December 31, 2014, government -wide capital assets were valued at $520,770,559, net of
accumulated depreciation, an increase of $4,901,281 or 1.0% since December 31, 2013.
Construction in Progress increased by $7,015,711, and capitalized assets in land, buildings,
improvements, machinery and equipment, and roads decreased by $2,114,430, net of
depreciation, since December 31, 2014. 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 is the result of fewer assets being added to the register as
those assets that remain continue to depreciate.
At December 31, 2014, the cost of Roads & Infrastructure ($629,459,749) was the major asset
class followed by Buildings ($215,749,177). Major new acquisitions include completed road
projects ($8.8 million), sewer separation projects ($6.1 million) and the new Fire Training
Center ($3.6 million).
Total depreciation expense for 2014 was $29,930,159, as compared to $29,559,898 for 2013.
Additional information on capital assets can be found in the notes to the financial statements in
Note 6.
46
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Debt Administration
Outstanding debt principal as of December 31, 2014 was $235,085,870, a decrease of
$16,596,408 or -6.6 %. City outstanding debt includes revenue bonds, mortgage bonds, notes
and loans payable and capital leases.
Type
Beginning
Additions
Retirements
Ending
Revenue bonds
$ 208,294,789 $
6,097,697
$ (18,320,100) $
196,072,386
Mortgage bonds
23,626,754
-
(1,814,602)
21 ,812,152
Notes and loans
7,151,564
500,000
(2,239,409)
5,412,155
Capital leases
12,609,1 71
2,443,289
(3,263,283)
1 1,789,177
Total Debt $ 251,682,278 $ 9,040,986 $ (25,637,394) $ 235,085,870
On June 3, 2014, the South Bend Redevelopment District issued $3,440,000 in refunding
revenue bonds with an average interest rate of 2.75% to currently refund the remainder of its
2002 Redevelopment Special Taxing District bonds to take advantage of favorable interest rates
and lower future debt service payments. In so doing, the City saved $283,285 in debt service
costs over the remaining life of the bonds. In 2014, the City entered into an installment purchase
agreement in the amount of $500,000 for the former Synagogue building at Four Winds Field. In
addition, during 2014, the City entered into an interlocal agreement with Saint Joseph County
and the City of Mishawaka for the consolidation of its Public Safety Answering Point (PSAP) 911
communications center, as mandated by Indiana State law. As part of this interlocal agreement,
the City is guaranteeing repayment of a percentage of the bonds issued ($2,657,697) for
construction of a new PSAP center and related technology improvements.
During 2014, the City entered into capital lease agreements in the amount of $2,443,289 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. Capital
lease financing is used to acquire police vehicles, public works vehicles, golf carts, computer
replacements, copiers and other vehicles and equipment. The City solicits competitive financing
proposals for lease financing from local and national companies and the interest rate achieved
during 2014 was less than 2 %.
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, 2014 and none of the above debt issuance amounts are subject to this debt
limitation. A calculation of the City's legal debt limitation can be found in the statistical debt
capacity section of this document.
In 2015, the City plans to continue issuing refunding bonds as appropriate to take advantage of
lower interest rates and the refunding of the 2008 Eddy Street Commons bonds is currently
being planned.
47
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
Additional information on debt can be found in the notes to the financial statements in Note 8 -
Leases and Note 9 - Long -term Debt.
Significant Subsequent Events
On January 26, 2015, the Common Council approved the issuance of Parks and Recreation
Committee (PARC) bonds for $5.58 million to be used for improvements to the City's parks and
recreation facilities. The bonds, which are expected to sell in July 2015, will be repaid from
EDIT revenues.
On February 9, 2015, the Common Council approved the issuance, by the Redevelopment
Commission, of lease rental revenue bonds for $25 million, to be used for various public works
construction projects related to the City's Smart Streets redevelopment initiative. Lease
payments to the Redevelopment Authority will be paid from TIF revenues over 20 years, which
will be used for the bonds' debt service. On March 24, 2015, the bonds were sold on the open
market and garnered a premium of $150,821.
On March 2, 2015, the City sold Blackthorn golf course to a private investor for $1.655 million.
After the payment to the South Bend Regional Airport Authority for its share of the proceeds,
the City received a net payment of $1,472,130 as the complete settlement. The sale rendered
two capital leases totaling $52,365 issued from the Airport TIF fund uncollectible. These
balances were written off in 2014.
On March 3, 2015, the City's Board of Public Works approved a contract worth $4.8 million for
energy- saving upgrades to the Century Center, the city -owned convention center. The contract
is expected to last 18 months and will be paid from a combination of hotel /motel taxes, cash on
hand, a Qualified Energy Conservation Bond and savings from reduced utility costs.
Economic Factors and 2016 Budget
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 2008.
Known as the "Circuit Breaker ", House Enrolled Act 1001 (HEA 100 1) limits property taxes
paid to I % 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 ", which involves comparing property values to sales activity in the
neighborhood and adjusting the current assessed values up or down according to the trended
data.
48
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
The 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 then.
In 2014, the primary funds supported by property taxes (General Fund, Parks and Recreation
Fund, and Cumulative Capital Development Fund) lost approximately $28.7 million 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 and
recreation, highways and streets and general government.
Management of the City of South Bend will continue to manage the financial affairs from a
posture of fiscal conservatism similar to the management practices engaged during fiscal 2014.
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, as the Congressional
Budget Office (CBO) predicts a growth in Gross Domestic Product (GDP) of 3.4% for 2015.
2016 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. At its 2016 Budget Kickoff
Meeting held on May 28, 2015, the Mayor announced a "zero growth" budget expenditure
target goal for all funds supported by property and income tax revenue.
Through its newly- created Office of Innovation, 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.
49
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
The City is committed to creating a budget for fiscal 2016 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 2016 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 a 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 with
cloud services data center and disaster recovery solutions on a managed analytics
platform. Data Realty employs over 20 employees and committed over $15 million in
private investment. In October 2014, ground was broken on two new multi- tenant
buildings that will include a $36 million joint project between General Electric and the
University of Notre Dame. The new turbo machinery facility is scheduled to be
operational by summer 2016.
• 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 I 0 -year period.
• Western Ave. /Lincoln Way 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.
• Smart Streets - The City has undertaken the reversion of some of its downtown
streets from one -way to two -way over the course of the next couple of years. This type
of activity has proven to be very successful in other cities at attracting business and
residential growth in city centers. In 2015, the City will accelerate the project with the
issuance of a $25 million bond to fund these improvements.
• 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.
50
City of South Bend, Indiana
Management's Discussion and Analysis (Continued)
• 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. In 2015, the Department of
Community Investment is committed to the creation of 595 new jobs with $75 million in
new private investment.
Requests for Information
This Management's Discussion and 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, 2014. 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, 12`h Floor
South Bend, Indiana 46601
Telephone 574 - 235 -7678
Facsimile 574 - 235 -9928
Email jmurphy(o southbendin.gov
City of South Bend
June 30, 2015
51
City of South Bend, Indiana
Statement of Net Position
December 31, 2014
The Notes to Financial Statements are an
Integral Part of this Statement.
52
Primary Government
Governmental
Business -type
Activities
Activities
Total
Assets
Cash and cash equivalents
$ 48,814,682
$ 4,578,784 $
53,393,466
Investments
133,445,883
11,926,476
145,372,359
Receivables:
Taxes
614,722
-
614,722
Accounts
1,416,794
3,830,878
5,247,672
Interest
193,294
55,810
249,104
Intergovernmental
1 ,256,750
-
1 ,256,750
Loans
7,388,822
-
7,388,822
Internal balances
1,457,525
(1,457,525)
-
Inventory
902,603
453,709
1,356,312
Prepaid expenses
383,219
83,246
466,465
Restricted assets
60,300
45,192,664
45,252,964
Property held for resale
18,457,092
-
18,457,092
Capital assets:
Assets not subject to depreciation
18,805,142
21,016,250
39,821,392
Assets subject to depreciation
265,768,894
215,180,273
480,949,167
Total assets
498,965,722
300,860,565
799,826,287
Deferred Outflows of Resources
Unamortized loss on refunding
-
676,576
676,576
Unamortized loss on sale /leaseback
562,654
562,654
Total deferred outflows of resources
-
1,239,230
1,239,230
Liabilities
Accounts payable
3,871,199
2,456,205
6,327,404
Due to other governmental units
186,176
-
186,176
Performance deposits payable
133,940
1,528,263
1,662,203
Accrued liabilities and other:
Accrued payroll payable
3,037,905
961,851
3,999,756
Accrued interest payable
982,536
276,785
1,259,321
Taxes payable
1,946
-
1,946
Customer deposits payable
-
108,477
108,477
Other current payables
11,473
7,350
18,823
Noncurrent liabilities:
Due within one year:
Accrued interest payable from restricted assets
891 ,754
-
891 ,754
Compensated absences
3,1 14,768
461,110
3,575,878
Notes and loans payable
953,636
335,765
1,289,401
Mortgage bonds payable
1,852,965
67,035
1,920,000
Claims payable
5,024,574
-
5,024,574
Capital leases
2,505,128
1,032,337
3,537,465
Revenue bonds payable
7,953,378
7,080,000
15,033,378
Due in more than one year:
Compensated absences
1,361,306
-
1,361,306
Notes and loans payable
663,855
3,458,899
4,122,754
Mortgage bonds payable
19,478,583
413,569
19,892,152
Capital leases
5,976,247
2,275,465
8,251,712
Net OPEB obligation
10,043,305
-
10,043,305
Net pension obligation
60,258,010
-
60,258,010
Revenue bonds payable
76,909,134
104,129,874
181,039,008
Total liabilities
205,21 1,818
124,592,985
329,804,803
The Notes to Financial Statements are an
Integral Part of this Statement.
52
City of South Bend, Indiana
Statement of Net Position (Continued)
December 31, 2014
The Notes to Financial Statements are an
Integral Part of this Statement.
53
Primary Government
Governmental
Business -type
Activities
Activities
Total
Deferred Inflows of Resources
Unamortized gain on refunding
$ 309,120
$ - $
309,120
Unamortized gain on sale /leaseback
-
7,970
7,970
Unamortized service agreement
-
431,250
431,250
Total deferred inflows of resources
309,120
439,220
748,340
Net Position
Net investment in capital assets
168,275,521
136,685,811
304,961,332
Restricted for:
Debt service
5,445,689
794,139
6,239,828
Depreciation fund
-
6,883,096
6,883,096
Customer deposit fund
2,984,151
2,984,151
Cash with fiscal agent
-
108,787
108,787
Bond reserve fund
3,278,189
8,899,657
12,177,846
Operating reserve fund
-
5,498,519
5,498,519
Capital outlay
-
1,418,663
1,418,663
Unrestricted
116,445,385
13,794,767
130,240,152
Total net position
$ 293,444,784
$ 177,067,590 $
470,512,374
The Notes to Financial Statements are an
Integral Part of this Statement.
53
City of South Bend, Indiana
Functions /Programs
Primary government:
Governmental activities:
General government
Public safety
Highways and streets
Community and economic
development
Culture and recreation
Interest on long -term debt
Total governmental
activities
Business -type activities:
Water Utility
Wastewater Utility
Century Center
Consolidated Building
Parking Garage
Solid Waste
Blackthorn Golf Course
Total business -type
activities
Total primary government $ 195,788,664 $ 71,332,173 $ 3,203,805 $ 95,834
General revenues:
Property taxes
Income taxes
Grants and contributions not restricted to specific programs
Investment income
Other miscellaneous income
Gain on sale of fixed assets
Total general revenues
The Notes to Financial Statements are an
Integral Part of this Statement.
Transfers
Change in Net Position
Net Position - Beginning of year (as restated)
Net Position - End of year
54
Program Revenues
Operating
Capital Grants
Charges for
Grants and
and
Expenses
Services
Contributions
Contributions
$ 19,013,453
$ 1,451,438
$ 693,306
$ -
68,783,155
4,992,228
402,062
-
13,031,500
728,343
-
-
19,780,791
485,938
1,520,383
-
16,802,311
3,815,920
588,054
-
2,497,849
-
-
-
139,909,059
11,473,867
3,203,805
-
13,020,610
14,373,176
-
-
25,521,753
34,009,117
-
-
4,747,838
2,227,171
-
95,834
3,242,320
1,387,571
-
-
1,660,596
1,017,218
-
-
5,81 1,526
5,295,712
-
-
1,874,962
1,548,341
-
-
55,879,605
59,858,306
-
95,834
Total primary government $ 195,788,664 $ 71,332,173 $ 3,203,805 $ 95,834
General revenues:
Property taxes
Income taxes
Grants and contributions not restricted to specific programs
Investment income
Other miscellaneous income
Gain on sale of fixed assets
Total general revenues
The Notes to Financial Statements are an
Integral Part of this Statement.
Transfers
Change in Net Position
Net Position - Beginning of year (as restated)
Net Position - End of year
54
Net (Expense) Revenue and Changes in Net
Position
Primary Government
Governmental Business -type
Activities Activities Total
$ (16,868,709) $ - $ (16,868,709)
(63,388,865) - (63,388,865)
(12,303,157) - (12,303,157)
(17,774,470) - (17,774,470)
(12,398,337) - (12,398,337)
(2,497,849) - (2,497,849)
(125,231,387) - (125,231,387)
- 1,352,566
1,352,566
- 8,487,364
8,487,364
- (2,424,833)
(2,424,833)
- (1,854,749)
(1,854,749)
- (643,378)
(643,378)
- (515,814)
(515,814)
- (326,621)
(326,621)
- 4,074,535 4,074,535
(125,231,387) 4,074,535 (121,156,852)
69,221,468
-
69,221,468
23,822,661
-
23,822,661
29,061,942
-
29,061,942
951,901
128,168
1,080,069
6,718,723
1,501,664
8,220,387
28,476
-
28,476
129,805,171
1,629,832
131,435,003
(683,049)
683,049
-
3,890,735
6,387,416
10,278,151
$ 293,444,784 $ 177,067,590 $ 470,512,374
55
Statement of Activities
Year Ended December 31, 2014
City of South Bend, Indiana
The Notes to Financial Statements are an
Integral Part of this Statement.
56
Parks and
Public Safety
General Fund
Recreation
LOIT
COIT
EDIT
Assets
Cash and cash equivalents
$
6,568,258
$
810,512
$
299,599
$
3,463,734
$
2,356,1 1 1
Investments
22,081,966
2,684,349
992,246
11,471,608
7,803,249
Receivables:
Taxes
70,642
7,103
-
-
-
Accounts
747,573
2,737
-
2,260
-
Interest
31,851
3,789
1,447
16,723
1 1,342
Intergovernmental
-
-
-
-
-
Loans
-
Due from other funds
148
-
Advances to other funds
558,304
-
2,027,973
Inventory
-
52,385
-
-
Property held for resale
-
174,999
270,001
Restricted assets
Total assets
$
30,058,742
$
3,560,875
$
1,293,292
$
17,157,297
$
109440,703
Liabilities
Accounts payable
$
286,793
$
27,552
$
-
$
632,582
$
1 12,490
Due to other governmental units
-
-
-
-
Due to other funds
17,290
3,120
497
Advances from other funds
-
-
-
Performance deposits payable
82,906
-
-
-
Accrued liabilities and other:
Accrued payroll payable
2,083,554
244,897
284,728
7,833
Taxes payable
794
1,152
-
-
Other current payables
-
1,007
-
-
-
Totalliabilities
2,471,337
277,728
284,728
640,415
112,987
Fund Balances
Nonspendable
558,304
52,385
-
174,999
270,001
Restricted
-
3,230,762
1,008,564
-
-
Committed
-
-
-
-
Assigned
-
16,341,883
10,057,715
Unassigned
27,029,101
-
-
-
Total fund balances
27,587,405
3,283,147
1,008,564
16,516,882
10,327,716
Total liabilities and fund
balances
$
30,058,742
$
3,560,875
$
1,293,292
$
17,157,297
$
10,440,703
The Notes to Financial Statements are an
Integral Part of this Statement.
56
TIF Airport
Nonmajor Funds
Total
$ 7,272,684
$ 25,236,118 $
46,007,016
24,086,540
55,1 13,664
124,233,622
536,082
895
614,722
-
627,559
1,380,129
34,875
79,848
179,875
-
1,256,750
1,256,750
7,388,822
7,388,822
-
1,899
2,047
1,472,130
6,127,495
10,185,902
-
-
52,385
8,835,659
9,176,433
18,457,092
-
60,300
60,300
$ 42,237,970 $ 105,069,783 $ 209,818,662
$ 321 ,726 $ 1,960,663 $ 3,341 ,806
- 186,176 186,176
- 1,956 22,863
500,000 8,213,772 8,713,772
51,034 - 133,940
299,002 2,920,014
- 1,946
872,760 10,672,035
15,331,990
8,835,659 15,474,263
25,365,611
32,529,551 57,434,567
94,203,444
- 16,413,498
16,413,498
1 0,776,249
37,175,847
(5,700,829)
21,328,272
$ 42,237,970 $ 105,069,783 $ 209,818,662
57
Governmental Funds
Balance Sheet
December 31, 2014
City of South Bend, Indiana
The Notes to Financial Statements are an
Integral Part of this Statement.
58
Parks and
Public Safety
General Fund
Recreation
LOIT
COIT
EDIT
Revenue
Property taxes
$ 36,579,586
$ 7,336,959
$ - $
$
Income taxes
-
-
6,380,029
8,645,811
8,796,821
Licenses and permits
141,565
-
-
-
Professional sports development taxes
-
-
Intergovernmental
15,853,455
653,704
-
Charges for services
3,309,481
1,758,355
521,748
-
Fines and forfeitures
19,917
675
-
-
354,660
Investment income
77,747
8,957
5,812
51,723
36,007
Rental income
-
-
-
-
-
Other revenue
5,846,199
297,079
97
29,930
Total revenue
61,827,950
10,055,729
6,385,841
9,219,379
9,217,418
Expenditures
Current:
General government
5,262,825
-
-
-
-
Public safety
58,873,932
7,172,496
Highways and streets
1,01 1,635
-
Community and economic
development
-
-
Culture and recreation
1,332,720
11,175,563
-
-
Capital outlay
-
14,448
6,546,608
5,338,1 19
Debt service:
Principal
12,302
302,753
853,897
760,000
Interest on long -term debt
2,028
12,254
184,481
122,520
Total expenditures
66,495,442
11,505,018
7,172,496
7,584,986
6,220,639
Excess of Revenue (Under) Over
Expenditures
(4,667,492)
(1,449,289)
(786,655)
1,634,393
2,996,779
Other Financing Sources (Uses)
Debt issuance
13,106
14,448
108,167
2,657,697
Premium on refunding debt
-
-
-
-
Proceeds from sale of capital assets
-
-
Transfers in
4,671,422
729,389
Transfers out
(98,544)
(96,819)
(2,024,446)
(6,491,682)
Payment to bond refunding escrow
agent
-
-
Total other financing
sources (uses)
4,585,984
647,018
(1,916,279)
(3,833,985)
Net Change in Fund Balances
(81,508)
(802,271)
(786,655)
(281,886)
(837,206)
Fund Balances - Beginning of year
27,668,913
4,085,418
1,795,219
16,798,768
1 1,164,922
Fund Balances - End of year
$ 27,587,405
$ 3,283,147
$ 1,008,564 $
16,516,882 $
10,3279716
The Notes to Financial Statements are an
Integral Part of this Statement.
58
Governmental Funds
Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2014
TIF Airport Nonmajor Funds Total
$ 13,649,252 $
11,655,671 $
69,221,468
-
-
23,822,661
5,019,104
-
141,565
1,590,000
588,054
588,054
500,428
14,156,346
30,663,505
-
5,039,392
10,628,976
92,430
96,317
563,999
84,724
690,406
955,376
1,400
25,000
26,400
98,001
1,606,481
7,877,787
13,925,807
33,857,667
144,489,791
2,759,863 8,022,688
880,822 66,927,250
9,430,322 10,441,957
6,816,275 (14,354,317) (9,810,306)
3,440,000
7,309,130
7,309,130
-
1,439,806
13,948,089
5,019,104
12,489,655
29,407,934
1,590,000
9,363,878
12,882,830
500,428
4,538,508
5,360,219
7,109,532
48,211,984
154,300,097
6,816,275 (14,354,317) (9,810,306)
3,440,000
2,203,487
8,436,905
171,851
-
171,851
8,369
20,107
28,476
25,415
13, 052,699
18,478,925
(1,629,514)
(6,181,284)
(16,522,289)
(3,482,205) (3,482,205)
(1,466,084) 9,095,009 7,1 1 1,663
5,350,191 (5,259,308) (2,698,643)
36,015,019 99,657,056 197,185,315
$ 41,365,210 $ 94,397,748 $ 194,486,672
59
City of South Bend, Indiana
Proprietary Funds
Statement of Net Position
December 31, 2014
Governmental
Enterprise Funds
Activities
Proprietary
Wastewater
Nonmajor
Internal Service
Water Utility
Utility
Century Center
Enterprise
Total
Fund
Assets
Current assets:
Cash and cash equivalents $
996,875
$ 2,083,286
$ 892,875
$ 605,748
$ 4,578,784
$ 2,807,666
Investments
3,301,566
6,899,674
-
1,725,236
11,926,476
9,212,261
Receivables:
Accounts
832,553
2,386,961
171,806
439,558
3,830,878
36,665
Interest
13,761
39,556
-
2,493
55,810
13,419
Due from other funds
17,692
4,705
-
-
22,397
8,970
Inventory
210,009
194,500
42,856
6,344
453,709
850,218
Prepaid expenses
38,497
32,745
9,004
3,000
83,246
205,061
Total current assets
5,410,953
11,641,427
1,116,541
2,782,379
20,951,300
13,134,260
Noncurrent assets:
Restricted assets
8,547,648
35,226,353
1,418,663
-
45,192,664
-
Capital assets:
Assets not subject to depreciation
2,942,009
15,041,539
713,434
2,319,268
21,016,250
-
Assets subject to depreciation
58,419,252
131,998,906
14,686,785
10,075,330
215,180,273
1,287,474
Total noncurrent assets
69,908,909
182,266,798
16,818,882
12,394,598
281,389,187
1,287,474
Total assets
75,319,862
193,908,225
17,935,423
15,176,977
302,340,487
14,421,734
Deferred Outflows of Resources
Unamortized loss on refunding
117,927
558,649
-
-
676,576
-
Unamortized loss on sale /leaseback
562,654
562,654
Total deferred outflows of
resources
117,927
558,649
-
562,654
1,239,230
-
Liabilities
Current liabilities:
Accounts payable
337,238
1,669,928
121,092
327,947
2,456,205
529,393
Due to other funds
4,809
1,577
-
1,406
7,792
2,759
Performance deposits payable
1,490,826
-
-
37,437
1,528,263
-
Accrued liabilities and other:
Accrued payroll payable
224,402
321,697
117,723
298,029
961,851
1 17,891
Accrued interest payable
-
268,632
-
8,153
276,785
63
Customer deposits payable
-
108,477
-
108,477
-
Other current payables
-
-
6,650
700
7,350
-
Compensated absences
204,910
256,200
-
-
461,110
132,893
Notes and loans payable
182,053
153,712
335,765
-
Mortgage bonds payable
-
67,035
67,035
-
Claims payable
-
-
-
-
5,024,574
Capital leases
6,142
315,392
710,803
1,032,337
6,273
Revenue bonds payable
1,130,000
5,950,000
-
7,080,000
-
Total current liabilities
3,580,380
9,004,173
353,942
1,384,475
14,322,970
5,813,846
Noncurrent liabilities:
Advances from other funds
-
-
-
1,472,130
1,472,130
-
Notes and loans payable
1,051,224
2,407,675
-
3,458,899
Mortgage bonds payable
-
413,569
-
413,569
Capital leases
20,426
749,201
1,505,838
2,275,465
Revenue bonds payable
17,610,152
86,519,722
-
104,129,874
Total noncurrent liabilities
18,681,802
90,090,167
2,977,968
11 1,749,937
-
Total liabilities
22,262,182
99,094,340
353,942
4,362,443
126,072,907
5,813,846
Deferred Inflows of Resources
Unamortized gain on sale /leaseback
-
-
-
7,970
7,970
-
Unamortized service agreement
431,250
-
431,250
Total deferred inflows of
resources
431,250
7,970
439,220
The Notes to Financial Statements are an
Integral Part of this Statement.
60
City of South Bend, Indiana
Proprietary Funds
Statement of Net Position (Continued)
December 31, 2014
The Notes to Financial Statements are an
Integral Part of this Statement.
61
Governmental
Enterprise Funds
Activities
Proprietary
Wastewater
Nonmajor
Internal Service
Water Utility
Utility
Century Center
Enterprise
Total
Fund
Net Position
Net investment in capital assets
$ 41,681,472
$ 69,426,163
$ 15,400,219
$ 10,177,957
$ 136,685,811
$ 1,281,201
Restricted:
Depreciation fund
3,135,399
3,747,697
-
-
6,883,096
-
Debt service fund
4,650
789,489
794,139
Customer deposit fund
1,478,773
1,505,378
2,984,151
Cash with fiscal agent
32,120
76,667
108,787
Bond reserve fund
1,612,825
7,286,832
8,899,657
Operating reserve fund
2,081,600
3,416,919
-
5,498,519
Capital outlay
-
-
1,418,663
-
1,418,663
-
Unrestricted
3,148,768
9,123,389
331,349
1,191,261
13,794,767
7,326,687
Total net position
$ 53,175,607
$ 95,372,534
$ 17,150,231
$ 11,369,218
$ 177,067,590
$ 8,607,888
The Notes to Financial Statements are an
Integral Part of this Statement.
61
City of South Bend, Indiana
Proprietary Funds
Statement of Revenue, Expenses, and Changes in Net Position
Year Ended December 31, 2014
Governmental
Enterprise Funds Activities
Proprietary
Wastewater Non major Internal Service
Water Utility Utility Century Center Enterprise Total Fund
Operating Revenue
Metered revenue
$ 10,788,782 $
33,333,981
$ -
$
$ 44,122,763 $
Convention fees
-
-
2,126,537
2,126,537
Fire protection revenue
1,982,586
-
1,982,586
Licenses and permits
-
1,191,534
1,191,534
Interest and penalty charges
122,820
-
-
122,820
Parking fees
-
100,634
953,065
1,053,699
Solid waste fees
-
4,790,653
4,790,653
-
Employee /Employer contributions
-
-
16,404,400
Charges for sales and services
-
-
7,025,252
Water leak insurance revenue
964,764
-
964,764
-
Golf course fees
-
-
1,548,341
1,548,341
Charges to other funds
-
89,279
-
89,279
-
Other
514,224
585,857
765,249
1,865,330
189,125
Total operating revenue
14,373,176
34,009,1 17
2,227,171
9,248,842
59,858,306
23,618,777
Operating Expenses
Cost of water
3,930,091
-
-
-
3,930,091
-
Cost of sewage treatment
-
10,258,316
-
10,258,316
-
Otheroperationandmaintenance
-
-
-
9,491,098
9,491,098
6,667,087
General and administration
1,605,873
3,880,262
4,058,811
1,457,896
11,002,842
1,147,314
Insurance claims and premiums
-
-
-
-
-
17,530,073
Plumbing contractors
981,418
-
-
-
981,418
-
Taxes other than income taxes
1,764,653
-
-
1,764,653
Customer service
1,823,674
175,389
-
73,458
2,072,521
-
Depreciation
1,880,075
6,087,286
785,883
979,943
9,733,187
121,557
Total operating expenses
11,985,784
20,401,253
4,844,694
12,002,395
49,234,126
25,466,031
Operating Income (Loss)
2,387,392
13,607,864
(2,617,523)
(2,753,553)
10,624,180
(1,847,254)
Nonoperating Revenue (Expenses)
Investment income
44,297
77,543
329
5,999
128,168
44,340
Hotel /Motel tax revenue
-
-
1,313,450
-
1,313,450
-
Interest expense
(818,277)
(3,689,140)
-
(1,114)
(4,508,531)
Other nonoperating expenses
(1,403,639)
(1,403,639)
(Loss) gain on sale of assets
(31 1,027)
10,304
(300,723)
(12,841)
Debt service charge
-
-
-
(1,459)
Other nonoperating revenue (expenses) -
Charges
94,478
(38,025)
96,856
(585,895)
(432,586)
Other nonoperating general revenue
-
-
188,214
-
188,214
-
Total nonoperating
(expenses) revenue
(990,529)
(5,042,957)
1,598,849
(581,010)
(5,015,647)
30,040
Income (Loss) - Before contributions
1,396,863
8,564,907
(1,018,674)
(3,334,563)
5,608,533
(1,817,214)
Capital Contributions -
Other capital contributions
-
-
106,333
2,629,185
2,735,518
16,017
Transfers In
-
2,576,545
2,576,545
-
Transfers Out
(1,618,848)
(2,914,332)
-
(4,533,180)
Change in Net Position
(221,985)
5,650,575
(912,341)
1,871,167
6,387,416
(1,801,197)
Net Position - Beginning of year
53,397,592
89,721,959
18,062,572
9,498,051
170,680,174
10,409,085
Net Position - End of year
$ 53,175,607 $
95,372,534
$ 17,150,231
$ 11,369,218
$ 177,067,590 $
8,607,888
The Notes to Financial Statements are an
Integral Part of this Statement.
62
City of South Bend, Indiana
Fiduciary Funds
Statement of Fiduciary Net Position
December 31, 2014
Assets
Cash and cash equivalents
Investments
Receivables:
Accounts
Interest
Total assets
Liabilities
Accounts payable
Accrued liabilities and other
Customer deposits payable
Police distribution payable
Total liabilities
Net Position for Pension Benefits and Other
Purposes
The Notes to Financial Statements are an
Integral Part of this Statement.
63
Private -
Pension Trust Purpose Trust
$ 405,392 $
1,342,628
177
1 ^l A
1,750,191
nd Agency Funds
6,574 $ 2,175,439
21,773 -
1 �1
28,379 $ 2,175,439
181 - $ -
186 - 301,548
- - 1,071,032
367 - $ 2,175,439
$ 1,749,824 $ 28,379
City of South Bend, Indiana
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
Year Ended December 31, 2014
Additions
Investment income:
Interest and dividends
Contributions:
On behalf
Other
Total contributions
Total additions
Deductions
Benefit payments
Administrative expenses
Total deductions
Net Decrease in Net Position
Net Position - Beginning of year
Net Position - End of year
The Notes to Financial Statements are an
Integral Part of this Statement.
64
Private -
Pension Trust Purpose Trust
C......4- C......J
$ 5,722 $ 127
1 1,240,963 -
C Q I I
1 1,246,776 -
1 1,252,498 127
12,1 13,244
,H 477 4 LCo
12,135,121 8,658
(882,623) (8,531)
1 411 dd7 If- aIn
$ 1,749,824 $ 28,379
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Statistical Section
Computation of Legal Debt Margin
December 31, 2014
Civil city
Net Assessed Valuation (20 13 pay 2014) of Taxable Property in South Bend $ 2,209,726,672
Debt limit: 2% of one -third thereof 14,731,51 1
Less Bonds subject to limitation:
County Economic Development Income Tax Refunding
Revenue Bonds, Series 2006 A (1,060,000)
County Economic Development Income Tax Refunding
Revenue Bonds, Series 2006 B (995,000)
Redevelopment District Taxable
Revenue Bonds, Series 2010 (2,915,000)
Issuance Margin $ 9,761,51 1
Percentage of Debt to Debt Limit 33.74%
Redevelopment District
Net Assessed Valuation (2012 pay 2013) of Taxable Property in South Bend $ 2,209,726,672
Debt limit: 2% of one -third thereof 14,731,51 1
Less Bonds subject to limitation:
Special Taxing District Bonds of 2014 (3,010,000)
Issuance Margin $ 1 1,721,51 1
Percentage of Debt to Debt Limit 20.43%
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.
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City of South Bend, Indiana
Schedule of Expenditures of Federal Awards
December 31, 2014
Federal Direct or
Grantor /Project Title CFDA Number Pass Through
Award/
Identifying Number
2014
Expenditures
Department of Commerce
Economic Adjustment Assistance
11.307
Direct
06 -19 -01251
7,457,890
Dept of Housing and Urban Development
Community Development Block Grants /Entitlement Grants
14.218
Direct
B- 12 -MC -18 -0011
644,124
CDBG -2012
Community Development Block Grants /Entitlement Grants
14.218
Direct
B- 13 -MC -18 -0011
1,916,745
CDBG -2013
Community Development Block Grants /Entitlement Grants
14.218
Direct
B- 14 -MC -18 -0011
942,142
CDBG -2014
Community Development Block Grants /Entitlement Grants
14.218
Direct
B11 -MN -18 -0011
92,899
Neighborhood Stabilization Program #3 - ARRA Funds
Project# 11J025
Emergency Solutions Grant Program
14.231
Direct
E- 14 -MC -18 -0011
118,782
HESG 2014
Emergency Solutions Grant Program
14.231
Direct
E- 13 -MC -18 -0011
53,139
HESG 2013
Emergency Solutions Grant Program
14.231
Direct
E- 12 -MC -18 -0011
33,578
HESG 2012
Emergency Solutions Grant Program
14.231
Direct
E- 11 -MC -18 -0011
11,636
HESG 2011
2012 Continuum of Care Program
14.267
Direct
IN0009L5H001205
212,350
2012 Continuum of Care Program
14.267
Pass - Through
IN0012L5H001205
55,166
Continuum of Care Program
14.267
Direct
IN0009L5H001306
36,312
Continuum of Care Program
14.267
Direct
IN0012L5H001306
57,651
Education and Outreach Initiatives
14.401
Direct
FF205K135014
65,947
Education and Outreach Initiatives
14.401
Direct
FF205K135014
27,779
Education and Outreach Initiatives
14.401
Direct
FF205K115014
25,553
Department of Justice
Public Safety Partnership and Community Policing Grants
16.710
Direct
09RKWX0352
138,059
(13 Police Officers)
Edward Byrne Memorial Justice Assistance Grant Program
16.738
Direct
11 DJBX3458
10,204
Edward Byrne Memorial Justice Assistance Grant Program
16.738
Direct
14DJBX0690
37,702
Equitable Sharing Program (asset forfeiture)
16.922
Direct
107,342
Department of Transportation
Highway Planning & Construction
20.205
Pass - through
A249 -11- 320834
45,450
Equal Employment Opportunity Commission
Fair Employment Practices Agency Contracts
30.002
Direct
EECCN130031
87,940
Department of Homeland Security
Homeland Security Grant program
97.067
Pass - through
FY 2011
10,000
12,188,390
79
By the Numbers
FROM THE CITY OF SOUTH BEND
0 Since 2012, 300
unemployment
reduced by 3
t
INI 1,368
jobs announced
THE CONCERT INDUSTRY'S
LEADING TRADE PUBLICATION,
POLLSTAR, RANKED THE MORRIS IIN
PERFORMING ARTS CENTER NO.
NSORRL WIDE THEEATRESF TOP 300 INDIANA
0 49 r r
increase in the number of animals sent
to private rescue partners
1,408
building projects
started with a
total valuation of
$8491409867
Through an Emergency
••Solutions Grant, the
City helped fund 5
IrAshelters to serve
3,685
Mpeople
0$180'0 1 89262
in commercial private investment
consecutive year
THE WASTEWATER PLANT
RECEIVED THE INDIANA WATER
ENVIRONMENTAL ASSOCIATION
SAFETY EXCELLENCE AWARD
The S. M. A.R T. program has trained
South Bend
residents to become
11 IS Certified Production
Technicians
Program attendance at all Parks and
Recreation facilities totaled
@9219021
Council approved
$5.58 million parks bond
on the heels of a newly created parks master
plan that prioritized needs across the system
A new summer
mem"mg
program
created jobs for
HIGH SCHOOL
2 STUDENTS
GUARANTEED ENERGY SAVINGS
CONTRACT AT CENTURY CENTER =
$80,000
REDUCTION OF YEARLY OPERATING COSTS
485 housing pr gramsathrough
housing programs and counseling
Amarket -based strategic
15 REVITALIZATION PLAN
was adopted for T.i ncolnway West and Western Avenue
VACANT AND ABANDONED
HOUSES HAVE BEEN
I
REPAIRED, DEMOLISHED,
OR CONTRACTED FOR
DEMOLITION
1,408
building projects
started with a
total valuation of
$8491409867
Through an Emergency
••Solutions Grant, the
City helped fund 5
IrAshelters to serve
3,685
Mpeople
0$180'0 1 89262
in commercial private investment
consecutive year
THE WASTEWATER PLANT
RECEIVED THE INDIANA WATER
ENVIRONMENTAL ASSOCIATION
SAFETY EXCELLENCE AWARD
The S. M. A.R T. program has trained
South Bend
residents to become
11 IS Certified Production
Technicians
Program attendance at all Parks and
Recreation facilities totaled
@9219021
Council approved
$5.58 million parks bond
on the heels of a newly created parks master
plan that prioritized needs across the system
A new summer
mem"mg
program
created jobs for
HIGH SCHOOL
2 STUDENTS
GUARANTEED ENERGY SAVINGS
CONTRACT AT CENTURY CENTER =
$80,000
REDUCTION OF YEARLY OPERATING COSTS
485 housing pr gramsathrough
housing programs and counseling
Amarket -based strategic
15 REVITALIZATION PLAN
was adopted for T.i ncolnway West and Western Avenue