HomeMy WebLinkAbout2008 Comprehensive Annual Financial ReportCOMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF SOUTH BEND, INDIANA For The Year Ended December 31,2008 Prepared By: Department of Administration and Finance M.Catherine Fanello, City
Controller
City of South Bend, Indiana Comprehensive Annual Financial Report For The Year Ending December 31,2008 Table of Contents I INTRODUCTORY SECTION ............................ 1-Certificate
of Achievement for E ................................................ 18 Organization Char II FINANCIAL SECTION Independent Auditor's Report on Financial Statements and Supplementary
Schedule of Expenditures of Federal Awards ........................................... 20-21 . . . . . . . .M.an.ag.em.en.t's. D.iscussion and Analysis ........................ . 22-33
Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial State Balance Sheet -Statement of Revenue Balances -Governmental
Fun Reconciliation of the Statement of Fund Balances of Statement of Net Statement of Revenu Fund Net Assets -Proprietary Funds ........................ . ..........................................
43 Statement of Cash Flows -Proprietary Funds .......................... .. .. .......................... 44-45 Statement of Fiduciary Net Assets -Fiduciary Funds .....................
.. ........................... 46 Statement of Changes in Fiduciary Net Assets -Fiduciary Funds ....................................4 7 Notes to Financial Statements ......................
.. ............. ... 48-83 Required Supplementaw Information: Schedules of Funding Progres Schedules of Contributions Budgetary Comparison Sch BudgeVGAAP Reconciliatio Combininq and
Individual Fund Statements and Schedules: Ill Governmental Funds: Description -Nonmajor Governmental Funds Combining Balance Sheet -Nonmajor Gover Combining Statement of Revenues, Expenditures
and Other Changes in ~ u n d Balances -Nonmajor Governmental Fund 112-125 Schedules of Revenues, Expenditures, and C Balances -Budget and Actual ......................................................
.......................... 126-140 IV Nonmajor. E.n terprise Funds: Descr~pt~o...n... .............................. .. ...............................................................................
141 Combining Statement of Net Assets .......................... .. .......................................... 142-143
City of South Bend, Indiana Comprehensive Annual Financial Report For The Year Ending December 31,2008 Table of Contents FINANCIAL SECTION (Continued) Combining Statement of Revenues,
Expenses and Other Changes in Fund Net Assets ................................................................................. . 144 Combining Statement of Cash Flows ...............................
........................ . .................... 145-146 V Internal Sewice Funds: .. ..... ..... I47 148 Fund Net Assets ........................... 149 Combining Statemen ..........................1
50 VI Fiduciary .F u. nds: Descrlpt~on .. .......................... 151 Combining Statement of Fiduciary Net Assets -Pension Trust Funds ..... ............................ 152 Combining
Statement of Changes in Fiduciary Net Assels -Pension Trust Funds .............. 153 Statement of Changes in Assets and Liabilities -Agency Funds .........................................1.
54 VII STATISTICAL SECTION Financial Trends Changes in Net Assets -Last Ten Years Fund Balances, Governmental Funds -L Revenue Capacity .............. .. .... .. ............................
Property Tax Levies and Collections -Last Ten Ye Direct and Overlapping Property Tax Rates -Last Detail of Net Assessed Valuation -For Year 2007 Payable Assessed Value and Actual Value
of Taxable Prope Net Assessed Value and Actual Value of Taxable Property -Last Ten Years ....... . ........... 169 Property Tax Collections -Cash Basis 170 Principal Real Property Taxpayers
-C 171 Ten Largest Taxpayers -Personal Property -December 31, 2008 ...................................... 172 Local Option lncome Tax Revenue -Last Ten Years .........................................
............. I 73 Total County Option lncome Tax Distributions by Taxing Unit -2001 -2008 ....................... 174 Ten Largest Water Customers -December 31, 2008 ..............................
_ ....................... 175 Ten Largest Sewage Works Customers -December 31,2008 176 Gasoline Tax Collections -Cash Basis -Last Ten Year 177 Wheel and Excise Surtax Collections -Cash
Basis -Last Ten Years .................................. 178 179 180 181 Ratios of Outstanding Debt by Type -Last Ten Years ..........................................................
182 Computation of Direct and Overlapping Debt -December 31, 2008 ....................................1. 83 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debl
to Total General Governmental Expenditures -Last Ten Years 184 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita -Last Ten Years ......................
.. ..... .. .. .... .......... ............................I.8 5 Schedule of Revenue Bond Coverage -Water Utility Bonds -Lasf Ten Years ....................1 86 Schedule of Revenue Bond
Coverage -Wastewater Utility Bonds -LaslTen Years .......... 187 2
City of South Bend, Indiana Comprehensive Annual Financial Report For The Year Ending December 31,2008 Table of Contents STATISTICAL SECTION (Continued) Demographic and Economic lnformation
................................................... . . 188 Demographic Statistics -Last Ten Years .................................................. . .....,,..,.....,.,, 189-19 0 Comparison
of Growth Rates in Personal Income for St. Joseph County, The State of indiana and U.S. Personal income ................................. ............................ 191 Principal Employers
-Current and Nine Years Ago -December 31, 2008 ........................... 192 Operating and Other Information ....... ..... ... .... .,.., 193 Operating Indicators by Functi ears .........
. . . .......................... 194 Capital Asset and Infrastructure Statistics by FunctionlProgram -Last T e n Years ..............1g5 New Construction -Number of Permits and Property
Values -Last Ten 'fears ................... 196 Full-Time Equivalent City City Ten Years,,. 197-198 Salary Rate Comparison -1990 -2008 199 Financial Institution Data . .. ........................
200 Insurance Coverage -200 . . . 201 Miscellaneous Statistics -December 31, 2008 ........................................... ,..,,...,,...,,,.. 202-203 Vlll COMPLIANCE SECTION Supplemental
Audit of Federal Awards . ............................. ........ ......... .. . , . ..,,.,.,.. ,...... , ,..204 lndependent Auditor's Report on Compliance and on Internal Control Over
Financial Reporting Based on an Audit of Financial Statements Performed in Accordance Wilh Government Auditing Standards 205-2136 Independent Auditor's Report on Compliance With Requirements
Applicable to Each Major Program and Internal Control Over Compliance in Accordance With OMB 207-208 Schedule of Expenditures of Federal Awar . .................. 209-210 Notes to Schedule
of Expenditures of Federal Awards .. .............................. 1 Schedule of Findings and Questioned Costs ... ...... .. ...................................... 212 Auditee Prepared
Schedules: Summary Schedule of Prior Audit Findings 13
CITY OFFICIALS Mayor Acting City Controller Controller City Clerk President of the Board of Public Works Common Council Members 1" District 2"6 District 3" District 4Ih District 5th
District 6Ih District At Large At Large At Large Official Stephen J. Luecke John H. Murphy M. Catherine Fanello John Voorde Gary Gilot Derek D. Dieter Henry Davis, Jr. Tom LaFountain
Ann Puzzello David Varner Oliver Davis Karen L. White Timothy A. Rouse Al (Buddy) Kirsits -Term
PHONE 5741 235-9216 Fhx 5741 235-9928 TDD 5741 235-5567 CITYO F S o mB END STEPHENJ. LUECKEM, AYOR DEPARTMEONF ATD MINISTRATIAONND FINANCE M. CATHERIFNAEN ELLO June 24,2009 CONTROLLER
To the Honorable Mayor Stephen J. Luecke, Members of the City of South Bend Common Council and 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 31,2008 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the
presentation, including all disclosures, rests with the City. 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 awards supplemental 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 ended December 3 1,2007. The financial section begins with the independent auditors' report on the City's financial statements and schedules, the City's manag-ement's discussion
and analysis re.po rt,. followed by the City's basic financial statements and accompanying footnotes. 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. This document ends with 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.
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 Oreanizations, the provisions of Indiana Code section 5-1 1-1-9 and the requirements 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 this document. 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 haw 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. Its 2000 U.S. Bureau of the Census population count Was 107,789. 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 at-large. The City provides a full range of traditional general governmental
services to its citizens. These sewices 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 govemmental activities, the Common Council or City Board of Public Works exercises oversight over the South Bend Water Works, the
South Bend Wastewater Treatment Facility, the Century Center, the College Football Hall of Fame, the Studebaker Collection, the South Bend Redevelopment 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 "Michianan area. The Michiana area is a vibrant and diverse
area with a strong economy based on a mix of 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 80190, a regional airport (which is the second busiest in the State of Indiana), the South Shore rail line
and a port on Lake Michigan, has supported economic growth within the community. Proximity to Chicago, the largest rail and
intermodal (railltrucWoceanlinland waterway) transfer point in the country, is a significant advantage to the City of South Bend. St. Joseph Countv I South Bend -Economic Conditions
and Outlook St. Joseph County, with its 2000 U.S. Bureau of the Census population of 265,559, boasts a strong history of manufacturing which continues today. As a complement to that,
the service industry and retail trade has also flourished, creating a balance that serves the community well. The County has experienced a net growth in population of 26,945 (1 1.3%
increase) between 1960 and 2000. 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 estimated population in St. Joseph County is currently 265,505. The total resident
labor force in December 2008 of 132,698 in St. Joseph County is typical of the Midwest: well trained with a strong work ethic. Approximately 82.4% of the area's adult population are
high school graduates or higher (as compared to the national average of 75%) with an estimated 23.6% with a Bachelor's Degree or higher. There are nine colleges, universities and technical
schools within South Bend and the surrounding area including the University of Notre Dame, Indiana University of South Bend, Saint Mary's College, Bethel College and Ivy Tech State College.
At the high school level, there are school-to-work transition programs that help prepare students for the world of work. AS of April 2009, St. Joseph County is experiencing an unemployment
rate of 10.8%, which is higher than the State of Indiana unemployment rate of 9.9%. The unemployment rate in St. Joseph County compares favorably with many of its surrounding counties-Elkhart
(17.8%), LaPorte (1 1.6%), and Marshall (13.5%) in Indiana and Cass (10.6%) and Berrien (1 1.6%) in Michigan. The employment profile for St. Joseph County provides a good overview of
the economic makeup of this community. Employment statistics for the County's major economic sectors are as follows: Economic Sector Construction Manufacturing Health CareISocial Services
Wholesale Trade Retail Trade Professional/Technical Services Accommodations/Food Service Educational Services Other Total Number Emoloved 5,759 17,675 16,758 6,550 15,073 4,545 9,882
14,960 32,786 123,988 St. Joseph County presently has an estimated 100,743 households with an average per capita personal income of $35,357, which compares to the State of Indiana average
per capita income of $33,215 and the United States per capita income of $38,615. The per capita income in St. Joseph
County compares favorably with many of its sutrounding countiesElkhart ($33,369), La Porte ($28,945), and Marshall ($28,571) in Indiana and Cass ($29,637) and Benien ($31,017) in Michigan.
Health and education lead the employment statistics for St. Joseph County. The largest employers in St. Joseph County as of December 2008 were as follows: University ofNotre Dame (4,596);
Memorial Health Systems (3,529); South Bend Community School Corporation (3,130); Saint Joseph Regional Medical Center (2,617); AM General (2,400); The Diocese of Foa WayneISouth Bend
(1,403); St. Joseph County (1,305); Indiana University at South Bend (1,259); lSLS ource Bank (1,257) and the City of South Bend (1,213). The followine provides a profile of the residents
of St. Joseah Coun*: Gender: 48.3% male; 51.7% female Age: Race: 37.7% 0-24 years of age; 29.3% 25-44 years of age; 18.2%% 45-64 years of age; and 14.8% 65 years of age and older. 80.5%
White; 11.7% BlacWAfrican American; 5.9% HispanicILatino; 1.7% Asian; and 3.9% Other Marital Status: 49% Married; 20% Widowed/Divorced/Separated; and 3 1% Single Home Ownership: 71 3%
own; 28.2% rentlothe1 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 Realtor's Association in the fourth quarter of 2008, the median sales price for a single family home in the South Bend-Mishawaka Statistical
Area was $80,800 as compared to a median sales price of $217,800 in Chicago and $94,600 in Indianapolis. The national median sales price is $1 69,000. The City of South Bend continues
to place high emphasis on a growing and diversified local economv. It has been active in develo-ping. 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. The South Bend Community School Corporation serves the entire City and some of the surrounding area and has a current
enrollment of approximately 21,595 students in grades kindergarten through high school. An estimated 4,791 students attend private or parochial schools within the City. The nine institutions
of higher education and technical training located within the South Bend area have a total enrollment of approximately 29,108. Over the years, the
University of Notre Dame has provided a stabilizing influence on the economy with a very significant economic impact upon the community. 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 chavel has -g rown into the Universitv of Notre
Dame. In 1852, H.C. Studebaker started the industry of making wagons and horse drawn buggies that evolved into the manufacturing of the Studebaker automobile. It made the name Studebaker
synonymous with the area of South Bend. 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 becarne'the Bendix Aviation Corporation, and now, as Honeywell (formerly AlliedSignal Inc.), is a leading manufacturer of automotive and aerospace products. Other special
attractions within the South Bend area include the Olympic-class East Race Waterway and the East Bank area; the newly renovated Morris Performing Arts Center, which provides for the
Broadway Theater League, the SouthBend Symphony Orchestra with the Chamber and Pops Orchestras and the Southold Dance Theater and Patchwork Dance Company; the award-winning South Bend
Civic Theater; the Studebaker National Museum; the South Bend Ree"i onal Museum of Art: the Snite Museum of Art at Notre Dame; the Northem Indiana Center for History; ~ o ~ s h a h o
l m iO~lhivee r Mansion; the College Football Hall of Fame; Century Center: Potawatomi Zoo; the Morris Conse~atory/Muessel-Ellison Tropical Gardens: Healthworks! Kids ~ u s e u mt;h
e Farmers' ~ a r k e ta;n d the Belleville softball ~ o m ~ l eTxh.e Coveleski Regional Baseball Stadium (named after South Bend native and Hall of Fame pitcher Stanley Coveleski) is
a 5,000-seat facility which opened in 1987 and is rated among the best in minor league baseball. It had record crowds during its seasons of play with the South Bend Silver Hawks, a minor
league team of the Chicago White SOX through the 1997 season. During 1997, the team signed on with the Arizona Diamondbacks and had continued success. During 2006, a group of local businessmen
led by former South Bend Mayor and Indiana Governor Joe Kernan acquired ownership of the team. Additional miscellaneous information about the City of South Bend can be found in the statistical
section of this report. Financial, Budpetan, and Property Tax Controls The City's Management Team is responsible for establishing and maintaining an internal control structure designed
to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial
statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives
are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits
requires estimates and judgments by management.
Single Audit. As a recipient of federal and state financial assistance, the City also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance
with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management of the City. As part of the City's single
audit described earlier, tests are performed to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as
well as to determine that the City has complied with applicable laws and regulations. The results of the City's single audit for the year ended December 3 1, 2008 disclosed no instances
of significant material weaknesses in the internal control structure and no significant violations of applicable laws and regulations. Bud~etarvC ontrols. In accordance with Indiana
statutes, the City maintains budgetary controls integrated within the accounting system. The objective of these budgetary controls is to ensure compliance with legal provisions embodied
in the annual appropriated budget (prepared on a cash basis) which is adopted by the City Council and then reviewed and approved by the State of Indiana Department of Local Government
and Finance. Activities of the general fund, certain special revenue and capital projects 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 City Council may transfer appropriations
from one major budget classification to another within a department by ordinance as long as the total appropriations for that department are not exceeded. Transfers from one department
to another, or additional appropriations in excess of the original budget, must be submitted to and approved by the Department of Local Government and Finance after these appropriations
have been approved by the City Council. Beginning for budget year 2009, the City must submit its budget to the St. Joseph County Common Council for a non-binding review and recommendation.
The City maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts do not lapse at year end and are carried over to the following
year as a part of the subsequent year's budget. Property Tax Controls. In addition to budgetary and other controls established by Indiana statute, the City must operate within specific
and rigid controls governing the amount of property tax it may levy. The property tax control program, which began in 1973, limits the amount of property tax that, 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. In addition, if a unit determines that it cannot maintain basic governmental services for its residents
within the property tax "freeze," it may appeal to the State Local Government Tax Control Board for an "excess levy" in certain Specific instances. As a part of the property tax control
program, the state transfers an amount generally equal to 20% of the total property tax levy (except for debt service levies as described below) to the County Auditor to be distributed
to each taxing unit as a replacement for 20% of the property taxes levied. This "property tax replacement" is funded through the state sales tax. These property tax provisions have been
repealed beginning in 2009.
The levy for Debt Service funds is controlled via a review and approval process by the Government Tax Control Board (with a subsequent review and approval by the Department of Local
Government and Finance) for each issuance of general obligation indebtedness (or leasepurchase) entered into by a taxing unit. In addition, all indebtedness incurred after 1983 no longer
receives the 20% state property tax replacement funds mentioned above. 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 is being phased in over a two year period beginning in 2009. The loss of revenue to the City due to this legislation is significant.
The General Fund is expected to lose $9 million dollars of revenue in 2009 and $18.7 million dollars in 2010, while the Parks and Recreation fund is expected to lose $1.2 million dollars
of revenue in 2009 and $2.4 million dollars in 2010. A historical view of the City's tax rate and its net assessed valuation has been included in the statistical section of this document.
Citywide Goals and Obiectives for 2008 and Beyond The City has developed eight broad goals that focus on the following areas: economy, safety, quality of life, trust, responsiveness,
infrastructure, finance and workforce. The City has identified various objectives that are tied directly to these goals which, if achieved, will result in the attainment of these goals.
The eight goals are listed below. GOAL ONE: The Communitv's Economy Improve South Bend's economy to ensure a vigorous local business climate; ample employment, business and investment
opportunities for all our customers; and a tax base that is sufficient to meet the needs of the City, its residents and other customers. GOAL TWO: The Communitv's Public Safe* and Civility
Improve South Bend's public safety and civility to ensure that every resident and other customers can live, work, play, run a business and raise a family in a humane, pleasant and safe
environment; have adequate, affordable and timely access to all forms of emergency services; and can contribute and participate in a community where people of different backgrounds live
in mutual respect and harmony. GOAL THREE: The Community's Quality of Life Improve South Bend's quality of life to ensure that every resident and every family can
earn an adequate income; secure adequate housing; live in a safe, pleasant and humane neighborhood; enjoy a wide range of social, cultural and recreational opportunities; and have access
to quality educational and medical services within an excellent natural and manrnade environment.
GOAL FOUR: Trust in City Government Improve residents' trust in City government to ensure that South Bend has a broad base of consensus and support on which to build the future, a strong
foundation for collaborative action and community partnerships; and an increase in resident and customer participation in the daily public life of the community. GOAL FIVE: The City's
Responsiveness. Efficiency, and Effectiveness Improve the responsiveness, efficiency, and effectiveness of City government to ensue that the City's customers get the value they expect
and deserve. GOAL SIX: The City's Infrastructure Improve the City's infrastructure to ensure that South Bend can support physical growth and economic development; and offer an excellent
quality of life to all of its residents and other customers. GOAL SEVEN: The City's Financial Condition Improve the financial condition of City government to ensure that South Bend has
the financial resources necessary to achieve all of its goals during the next five years. GOAL EIGHT: The City's Workforce Improve the City government's existing workforce, work environment
and human development systems to ensure that South Bend has the human resources necessary to achieve all its goals during the next five years. City Mission Statement and Department Purpose
Statements The City provides services to its customers through thirteen administrative departments. These departments have unique purposes that are intended to support the citywide mission
statement which is "to be recognized as a model city." Each department has developed a purpose statement which identifies their specific role. Mayor's Office: Leading the community to
become a model city through formulating policy, directing operations and responding to customer concerns. Common Council: Making certain that our City government is always responsive
to the needs of our residents and that the betterment of SouthBend 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 f o r the City through sound financial and human resources management while ensuring the existence
of a safe work environment, quality employee benefits and equal treatment for all City employees. Legal Department: Providing superior, professional and ethical legal services for our
client, the City of South Bend. Police Department: Protecting the life, property and personal liberties of all individuals; improving the overall quality of life by deterring criminal
activity and respecting cultural diversity; delivering fair and impartial law enforcement services to all residents. Fire Department: Providing the highest level of Fire 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 costeffective 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 and Economic
Development: 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 facility with excellent services
to customers
while generating maximum economic benefit to our community. Building South Bend in 2008 and beyond Mayor Stephen Luecke's theme for the past several years has been"We7re Building South
Bend." That theme has had a major influence on the development of the 2009 budget. There were five areas of concentration that became or remained budget priorities for 2009. We're Building
Neighborhoods -Mayor Luecke and the City's elected officials continued their strong commitment to neighborhoods. The City will make a significant investment to fund or levera-ge state
and federal fundin-g for housing-assistance, develooment and home ownership programs, neighborhood public works and parks, neighborhood development for social services and org-a nizations,
and public safety initiatives. Committing-these resources will help us maintain, improve and support strong neighborhood development. JVe'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 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. South Bend has 2.4 police officers and 2.3 firefighters per thousand
residents. These ratios are among the highest in the state and well above the national average. We believe that these extra officers are important for officer safety and community safety.
The City's Fire Departments is rated one of the best in the State. The Mayor's top initiatives will focus on regional policing, providing in-car cameras for all patrol cars and placing
more emphasis on training and recruitment for the Police and Fire Departments. . We're Building an Attractive City -We are working to enhance the natural and man-made beauty of our city
through effective City programs. For the eighth year in.a row we were named a Tree City USA. The Building Block Grant Program helps residents spruce up their neighborhoods, and aggressive
Code Enforcement will continue to address deteriorated and nuisance properties. The City has initiated a new procedure to register and monitor vacant and abandoned buildings. The City
is funding major programs to renovate the former Studebaker Corridor area and other parts of the City. 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 that will create new strategies
for enhancing our formal education system. 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
Coveleski Stadium and the East Bank. The Citv has many new economic development projects in progress including Eddy Street Commons, a $220 million dollar mixed-use development south
of Notre Dame, with two hotels, more than 20 stores and restaurants, office space and hundreds of town homes, apartments and condominiums. In addition, the City is taking the lead in
creating Indiana's first dual state-certified technology park site known as Innovation Park and Ignition Park. Proprietary Operations, The City's proprietary operations comprise several
separate and distincr activities accountcd for in bo~hE nterprise and Internal Service funds. The Enterprise Fund operations include the following: the City's downtown parking garages,
water utility services, wastewater utility services, solid waste services, Century Center (convention center), the consolidated St. Joseph CountyISouth Bend Building Department and Blackthorn
Golf Course. The Internal Service Fund operations include the City's self-funded liability insurance program, the City's self-hded employee benefits program and Central Services (a department
that accounts for the expenses related to fuel, vehicle repairs and various other services and supplies provided to City departments on a cost-reimbursement basis). Fiduciaw Funds. The
City's fiduciary duties are accounted for in both Trust and Agency Funds. The primary trust funds are the Police and Fire Pension Funds (explained below). The Agency Fund is for payroll
and related employee deductions. Pension Trust Fund Operations. Most City employees are covered by the Public Enlployees Retirement Fund and the 1977 Police Officers' and Firefighters'
Pension Fund, both administered by the State of Indiana. However, certain police officers and firefighters hired before May 1, 1977, who did not opt into the 1977 fund, continue to be
members of the 1925 Police Pension Fund and the 1937 Firefighters' Pension Fund. These two funds are administered by the City. This group of police officers and firefighters will continue
to decline in the future both as a total number and as a percentage of total payroll of both the police and fire departments and of the City as a whole. The 1925 and 1937 Plans are funded
through a combination of property taxes levied by the City and distributions fiom the State Pension Relief Fund. As a result of the requirements of the state statute that created these
funds, the City is legally prevented from funding them in any other way than a "pay-as-you-go" basis. The City has received an actuarial survey on these finds to provide the proper disclosures
required by generally accepted accounting principles. This information is included in the financial section of this report. Beginning in 2009, the State of Indiana has assumed the responsibility
for fully funding the 1925 and 1937 Pensionplans while the City will continue to administer the plans. Cash Maua~ement. In accordance with state statute, cash temporarily idle during
the year is
invested in demand deposits, certificates of deposit, obligations of the U. S. Treasury and repurchase agreements that are fully collateralized by U.S. Government or U.S. Government
Agency obligations. During 2008, the City realized over $6.4 million dollars in investment earnings. The amount of investment earnings is expected to decrease significantly during 2009
as the rates of interest earned on investments have declined. In addition to the insurance available to all depositors through the Federal government, all deposits of the City are covered
by the Public Deposits Insurance Fund maintained by the Stateof Indiana Board for Depositories. The Public Deposits Insurance Fund, established in 1937, covers both principal and interest
of all deposits and investments made by an Indiana governmental unit with approved public depositories in accordance with the Public Deposits and Investments Law. Risk Management. The
City has established two self-insurance funds: the Self-Funded Employee Benefits Fund and the Liability Insurance Premium Reserve Fund. As previously mentioned, these self-insurance
funds are accounted for as Internal Service Funds. The purpose of the Self-Funded Employee Benefits Fund is to pay medical claims of City employees and their covered dependents and minimize
the total cost of annual medical insurance to the City. Medical claims exceeding $300,000 per person insured on an annual basis are covered through a private carrier. In addition to
medical claims, the fund pays premiums for life insurance and long term disability benefits for employees. During 2007, the City changed medical insurance carriers to Anthem Blue Cross,
which has resulted in a significant cost savings in 2007 and 2008. The Liability Insurance Premium Reserve Fund covers automobile and comprehensive liability as well as workers' compensation
costs. The City's liability for self-insurance is limited to $300,000 per person and $5,000,000 in the aggregate per occurrence in accordance with Indiana Tort Law. The accrued liability
for estimated insurance claims represents an estimate of the probable loss on unpaid claims arising prior to year end. Other Information Inde~endentA udit. In accordance with state statutes,
the City is required to be audited annually by the Indiana State Board of Accounts, an agency of the State of Indiana. In addition to meeting the requirements set forth in state statutes,
the audit was designed to meet the requirements of the federal Single Audit Act of 1984 and related OMB Circular A-133 as mentioned earlier. The auditors' report on the general purpose
financial statements and combining and individual fund statements and schedules is included in the financial section of this report. For the past eighteen years (years ended December
31, 1990 through 2007) the City has received an unqualified audit opinion. The auditors' reports related specifically to the single audit are included in a separately filed report. 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 3 1,2007. This was the eighteenth 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 deterrnine its eligibility for another certificate. Acknowled~ments.
The preparation of the comprehensive annual financial report 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 member of the Department has our sincere appreciation for the contributions made in the preparation of this report. In addition, we would like to thank
the Field Examiners of the State Board of Accounts (led by Doug Wiese and Bruce Snyder) for their hard work and dedication in this effort. In closing, without the leadership and support
of Mayor Stephen J. Luecke, the City's Department Heads, and the members of the City of South Bend Common Council, preparation of this report would not have been possible. Sincerely,
City Controller Public Works Finance Direc
Certificate of Achievement for Excellence in Financial Reporting Presented to City of South Bend Indiana For its Comprehensive Annual Financial Report for the Fiscal Year Ended December
31,2007 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Omcers Association of the United States and Canada to govemment units
and public employee retirement systems whose comprehensive annual fmancial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President V
Executive Director
CITY OF SOUTH BEMD ORGANlZATlONAL CHART Citizens of South Bend Q I I I Morris Redeveloprnenl Board of Enterlainment A ~ l h o r i l y l Public Safely 3oerd Commission I City Council
1 P O [ I ~ ( 1 ~etiocrning 1 1 1 Deparlment Deparlmenl Recreelion Works Cenler A*sCen'er Developmenl (Police Chief) [Fire Chie Suoenntendenl (Diredor (Director) (Director) (Director)
.Technicai Sew~ces -Fl!e Pievenlion -Park Adminlrtrauon -EnglnecrlnQ ~lvtsion . Adminlslrallve D>virion DIVIS~M .~nurnigatwe S B N I C ~ SDIY ISIM -~ ~ r k ~ a ~ n t e n a-w~1e1. ~1s
~ivirlon -nrerghsn~ D N ~ S ~ O ~ ~ivlsion .unilorm Pslrol Op~ralion6D wis~on-Reeraallan -Waler Works ~ivcsion .EMS Dlvirion Division Di~is~on .community Relaltonr -P ~ l a ~ ~ 1 0 m
i Z 0 0 -Sewage Works 01vis8on Divlrion Divis~on -Gall Ouiwon -ceolial sentcar Division -S0Dd waste Division i Mayor -Wearing O~lcer -NeighbarMod Code Enfortemeol .Abandoned Vehide,
.unsafe Bvildlog . Anma1 Conlrol . Bvreau ol we~ghts and Measurer City Clerk Cily Fsnanrr 8 Budgellng -Human Human Reswires -Benaols Mamgsmenl -lMormalim Technalogy -Salely 8 Risk Managemenl
Human Righlr .Purchasing
STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E4 18 INDIANAPOLIS, INDIANA 46204-2769 Telephone: (317) 232-2513 Fax: (317) 232-471
1 Web Site: www.in.gov/sboa TO: THE OFFICIALS OF THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA 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, 2008, which collectiveiy
comprise the City's primary government basic financial statements. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion
on these financial statements based on our audit. We conducted 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 Auditinq 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 includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the respective financial statements referred to above present
fairly, in all material respects, the 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, 2008, and the respective changes in financial position and cash flows, where applicable, thereof and for the year then ended, in conformity with accounting
principles generally accepted in the United Stales of America. The Management's Discussion and Analysis, Schedules of Funding Progress, Schedules of Contributions From the Employer and
Other Contributing Entities and Budgetary Comparison Schedules (General and Major Special Revenue funds), as listed in the Table of Contents, are not required parts of the basic financial
statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied cedain limited procedures, which Consisted principally of inquiries
of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was peFformed for the purpose of forming an opinion on the basic financial statements of the City taken as a whole. The accompanying Schedule of Expenditures of Federal Awards
is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States. Local Governments. and Non-Profit Oraanizalions,
and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Our audit was conducted for the purpose of forming opinions
on the financial statements that collectively comprise the City's basic financial statements. The introductory Section, combining fund financial statements, other budgetary comparison
schedules, and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining fund financial statements
and other budgetary comparison schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our Opinion, are fairly stated
in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. In accordance with Government Auditinq Standards, we have also issued our report
June 9, 2009, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and
grants. Our report on compliance and on internal control over financial reporting should be read along with this report. STATE BOARD OF ACCOUNTS June 9,2009
Management's Discussion and Analysis As management of the City of South Bend, Indiana, we offer readers of the City of South Bend's financial statements this narrative overview and analX
sI is of the financial activities of the City of South Bend for the fiscal year ended December 31,2008. e encourage readers t o consider the information presented here in conjunction
with additional information that we have furnished in our letter of transmittal. As with other sections of this financial re ort, the information contained within this Management's Discussion
and Ana2l ' sis (MD&A) should te considered only a part of a greater whole. The readers of this statement shoul take the time to read and evaluate all sections of this report, including
the notes to the financial statements and the other Required Supplemental Information. Financial Hi~hli~hts . The assets of the Cit of South Bend exceeded its liabilities at December
31, 2008 by $392,566,699 @age 35j. The ma ority of these net assets ($309,934,378) are invested in ca ital assets (net of related debt) an d are, therefore, not available for current
spending. 0 !the remaining net assets, $62,924,092 is in unrestricted net assets and may be used to meet the City's ongoing obligations to citizens and creditors. Total City net assets
increased by $3,149,399 durin 2008 (page 36). Of this amount, net assets increased by $3,784,493. of governmental activities decreased by $635,09f and net assets of business-type activities
. The decrease in net assets of governmental activities resulted primarily from planned capital spending. in governmental funds such as Urban Development Action Grant, Community Revitalization
Enhancement District, the Eddy Street Commons bond fund, and other Tax Increment Finance bond funds. The increase in net assets from business-type activities resulted primarily from
positive net income in the Water and Wastewater Utility enterprise funds. The total cost of all City programs was $183,819,991 during 2008, an increase of $15,621,118 (9.3%) from a total
cost of $168,198,873 during 2007 (page 36). The majority of the increase during 2008 ($13,817,463) was due to economic development and wastewater projects. At December 3 1,2008, the
unreserved fund balance in the General Fund was $24,171,3 13 @age 37). However, $13,600,000 (20% of budgeted operating expenditures) was designated as a contingency for cash flow and
$71 1,207 was designated to cover cash deficits in the city's centralized fleet maintenance and parking garage funds . Undesignated unreserved fund balances have traditionally been used
by the city to fund various ca ital projects and emergency contin encies. As discussed in Governmental Accounting, Au d!it i.n g, and Financial Reporting (GAA~R)a, general fund unreserved
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 ex enditures.
An unresenjed fund balance may be hi her if varying circumstances require suc!. The City needs to maint?in an unreserved Genera K Fund balance as a cash flow contingency because of delay
in receiving largest source of revenue in the General Fund). Due to new assessment the State of Indiana several years ago, St. Joseph County has repeatedly and mail property tax bills
on time. The 20% designated unreserved balance of budgeted operating expenditures represents a little over two and a half months of general fund expenditures and has allowed the cit2
' to reduce the borrowing time oftax anticipation notes, thus saving interest costs. The unreserve fund balance for all governmental funds was $143,796,698 at December 3 1,2008 (page
37). The majority of this unreserved fund balance was accounted for in special revenue and capital projects funds ($1 19,625,385). Qverview of the Financial Statements This discussion
and anal sis is intended to serve as an introduction to the City of South Bend's basic financial statements. ~ i Ceity of South Bend's basic financial statements are comprised of three
components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The re ort also includes other supplementary information
in addition to the basic financial statements themsekes. 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 accounting," which is a method of accounting used by many private-sector businesses. Statement of net assets. This statement reports
all assets and liabilities of the City of South Bend as of December 3 1, 2008. The difference between total assets and total liabilities is reported as "net assets," and can generally
be thou ht of as the net worth of the City. Increases may indicate a deterioration of financial position. : : . . in net assets generally indicate an improvement in mancia1 posrtion
while decreases in net assets Statement of activities. This statement serves the purpose of the traditional income statement. It provides consolidated reporting of the results of a 1
activities of the City of South Bend for the year ended December 3 1,2008. Changes in net assets 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 such as property and county option income,taxes. Both of the government-wide financial statements distinguish between functions
of the City that are rincipally supported by taxes and intergovernmental revenue ( g o v e r ~ e n t a al ctivities) and other functions that are intended to recover all or a significant
portion pf their costs through user fees and charges (business-type activities). The major governmenta activities of the City of South Bend include police and fire protection, highways
and streets, economic development and general government. The major business-type activities of the City include the wastewater ut~lityw, ater utility, Century Center, Blackthorn golf
course and solid waste. Fund financial statements. A fund is a grouf of re!ated accounts that is used to maintain control over resources that have been segregated for spec1 IC 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 andJiduciaryjiunds. Governmental funds. Governmental
finds are used to account for essentially the same functions reported as govemmental activities in the government-wide financial statements. However, unlike government-wide financial
statements, govemmental 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 evaluatin f a government's short-term financing requirements. Governmental funds use the modified accrua accounting, an accounting
method that is different from many private-sector companies. The City maintains four major governmental funds (General, Parks and Recreation, TIF Airport, County Option Income Tax) and
74 non-major governmental funds. General Governmental Revenue -The following schedule presents a summary of general governmental revenue for the year ended December 31,2008 (page 39):
Revenue 2008 Amount % of Total Taxes: General Property $ 84,572,732 60.5% County Option Income 6,704,667 4.8% County Economic Development 4,244,971 3.0% Professional Sports Development
453,268 0.3% Community Revitalization District 955,315 0.7%
Licenses and Permits Intergovernmental Charges for Services Fines and Forfeits Interest Donations Other Total Revenue As shown above, taxes continue to represent a sif nificant source
of revenue needed to support the services provided by the City. The City's single argest source of revenue (60.5%) is generated by property taxes. This revenue calculation is based on
a relationshiP between two variables. The first variable is the assessed property valuation of industrial, commercia 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 above eneral property tax revenue includes
taxes collected on behalf of the following funds: General ~ u nPtar k and Recreation Fund, Cumulative Capital Development Fund, Redevelopment Tax Incremental Financing (TIF) Funds, and
a special levy to cover debt service. One of the major focuses for the City continues to be the need to diversify its revenue stream. This is necessruy to reduce the City's deP 1e ndency
on general proK erty .taxe s and to ensure that a broad base of users, including nonresidents w o work in the City, s are in the funding of basic City services. Beginning in 2009, Indiana
will cap property taxes at a percentage ofthea r operty's goss assessedvalue. Homesteads will be capped at 1%, other residential property at 2%, an commercial real and personal property
at 3%. The caps will be phased in over a two-year Fe riod. The Rr operty tax reform is expected to reduce South Bend's propert tax revenue in the Genera! und andPaf and RecreationFund
by $20.1 million when the caps become Lily effective in 201 0. In 11ght of the estimated reduction in property tax revenue, the City must diversify its revenue stream. Currently the
City's property taxpayers carry a disproportionate share of the cost ofB ublic safety @olice and fire services) and general government functions (elected officials, legal, co e enforcement
and administrationlfinance). Approximate1? 74% of the total 2008 General Fund revenue was derived from property taxes. Public safety accounts or approximately 77% of total 2008 General
Fund expenditures. Clearly, the Mayor and Common Council have established public safety as a high priori for the City of South Bend. In order to shift part of the financial burden for
these services away 7ro m the City's homeowners, new sources of revenue need to be identified. Currently, two types of income taxes are in place to shift the property tax burden. Economic
Develo ment Income Tax (EDIT) -This tax was first enacted as of July 1, 1995 at the rate of one tent % of one percent (0.1%) on the adjusted gross income of City residents (and some
nonresidents). EDIT generated $1,382,670 and $1,466,029 for the City of South Bend in 1996 and 1997, respectively. The Common Council and St. Joseph County Council ~assed respective
ordi'nanies that -increased the rate to two tenths of one perceit (0,2%),;Yhich effectively doubled the City's distribution be 8i nnin8 in 1998. The City has received $5,462,867 2002),
$3,689,202(2003 , $3,448,688 (20 4 , $ ,464,152 (2005), $4,013,475 2006) and $4.681 .I34 (2007) of EDI'T distributions. In 2d08 the Citv received $4.244.971 in d ,DIT taxes. ~ > ---r
------.---.---.. EDIT taxes i re cdllected and administered by the ~ndianDi epartment bf ~lvenue .T he EDIT distribution is then remitted to St. Joseph County, which allocites~hestea
x receipts between the count and the cities and towns in the county based on the proportionate amounts ofprope levy !or e ach unit. The City's portion of the total county's EDIT has
ran ed from 35 $2 39.3% over the past 10 years as the proportionate prok e rt tax levies have caanged. he EDIT rate will remain at the current level (0.2%) unless rt er actl.o n i.s
taken by the respective councils. The EDIT tax rate can legally be raised to four tenths of one percent (0.4%). . County Option Income Tax (COIT) -The Common Council and St. Joseph County
Council enacted this tax effective July 1, 1997 at a rate of two tenths of one percent (0.2%), with an
increase of one tenth of onepercent (0.1%) per year durin the next four years. In 2002, the rate was set at its legal limit of six tenths of one percent (0.6%7. The City would not have
supported the new Count Option Income Tax if it had not been accompanied by an accompanying ordinance whic g established an additional 6% homestead credit for property taxpayers. This
additional homestead credit increased to 7% in 1999 and to 8% in 2000 (where it will remain at this level). Thus, as a result of the assage of this new tax, City roperty taxpayers were
provided relief through a reduction in tReir tax bills while the 8ity was provided with an additional source of revenue that will eventually slow the growth of future property tax rate
increases. The City received $9,458,584 (2002), $8,015,301(2003), $7,001,199 (2004), $5,490,218 (2005), $6,410,405 (2006), $8,072,623 (2007) from the County OptionIncomeTax. In 2008,
the City received $6,704,667 from the County Option Income Tax. COIT is a countywide tax and is allocated (net of homestead cred~tts b etween all taxing units within the county based
on the proportionate amounts of property tax evy for each taxing unit. COIT taxes are collected by the Indiana Department of Revenue and rem~tted to St. Joseph County for distribution
to the local units of government. When the property tax reform was passed by the Indiana Le8 i.s lature in 2008, it gave localities the ability to further increase income taxes by one
percent and the a ility to enact a quarter of a percent public safety tax. These taxes are to aid in replacing revenue lost to the property tax reform. However, to date, no further income
tax increases have been enacted on the local level m South Bend or St. Joseph County. As mentioned earlier, the City continues to look for other sources of revenue that will reduce its
reliance on property taxes and has suP ported efforts of the Indiana,Assoclatlon of Clties and Towns to lobby the state legislature to provide a temate revenue sources. A vlable source
of revenue is from user fees and/or charges for services currently being F erformed. It 1s the Clty's deslre to establish all user char es and fees at a level closely related to the
nll cost of providing the services while taking into consiferation similar chargestfees being levied by other public and l rlvate providers. The City recalculates, on an annual basis,
the full costs of activities supported y user fees (~ncludin Parks and Recreation Department ro rams and EMS ambulance services) to identify the unpact oHinflation and other cost increases.
T! e 8 i,t y then revises user fees accordingl As aresult, overall charges for services and user fee revenues are anticipated to increase in line wlt i'. annual operating and capital
costs. Charges for services for governmental funds increased from $1 5,832,139 in 2007 to $17,030,160 in 2008 (page 39). General Government Expenditures. The City breaks its general
government ex enditures into eight development, culture and recreation, debt service and capital outlay. categories: categories: general government, public safety, highways, and streets,
health anB welfare, economic The following schedule presents a summary of general governmental expenditures for the year ended December 31,2008 (page 39): Expenditures General Government
Public Safety Highways and Streets Economic Development Health and Welfare Culture and Recreation Debt Service Capital Outlay Total Expenditures 2008 Amount O h of Total As one can see,
the City spends more on public safety than anr other activity, with 36.5% of all general overnmental expenditures spent for thls purpose. This is ollowed by spending on capital pro'ects
?19.4%), debt service payments on bonds and loans (1 1.8%), culture and recreation (i.e. parks) at ld.5%
and hi hways and streets (9.7%). The majority of capital outlay is for economic development projects ($1 8,236,496). Proprietary funds. The City of South Bend maintains two types of
proprietary funds: enterprise and internal service. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements.
The City maintains seven enterprise funds. Information is presented separately in the proprietary statement of net assets and the proprietary statement of revenues, expense and changes
in fund net assets for the Water Utility, Wastewater Utility and Century Center, which are considered major enterprise funds. Data from the other four non-major ente rise funds (Consolidated
St. Joseph CountyISouthBend Building Department, Parking Garage, Soli ? Waste and Blackthorn Golf Course) are combined into a single, aggre ated presentation. Individual fund data for
each of these non-major proprietary funds 1s provi$ed in the form of combining statements elsewhere in this report. . Internal sewice funds are used to accumulate and allocate costs
internally amon the City's various functions and funds. The City maintains three interna! service funds. The City o 9 South Bend uses internal service funds to account for its self-funded
liability insurance program, employee health benefits program, and central services (a department that accounts for expenses related to fuel, vehicle repalrs, printing and other services
provided to City departments on a cost-reimbursement basis). Because these services redominantly benefit governmental rather than business-type functions, they have been include8 wi.thin.
gov ernmental activities in the government-wide financial statements but are combined into a single, aggregated presentation inthe roprietary fund financial statements elsewhere in the
report. statements. Individual fund data for the internal service funds is provide8 in the form of combining Fiduciary funds. Fiduciary funds are used to account for resources held for
the benefit of parties outside the City overnment. Fiduciary funds are not reflected in the government-wide financial statement because t a e resources of those funds are not available
to support the City's own programs. The City maintains four fiduciary funds, which consist of two pension trust funds (1 925 Police Pensionand 1937 Firefighter's Pension), one agency
fund (Payroll) and one pnvate-purpose trust fund (Cemetery). Pension Trust Fund Operations. Most City employees are covered by the Public Em lo ees Retirement Fund (PERF2 and the 1977
Police Officers' and Firefighters' Pension Fund, both oPwgich are administered by the tate of Indiana. However, certain police officers and firefi hters hired before May 1,1977, (who
did not opt into the 1977 fund1 ! con:tinu e to be members of the 19f 5 Police Officer's Pension Fund or the 1937 Firefighters' Pension und These two funds are administered by the City.
The number of police officers and firefighters in the City-managed penslon trust funds will continue continue to decline in the future as current participants retire. The 1925 and 1937
Pension plans are funded through a combination of prope taxes levied by the City, distributions from the State of Indiana Pension Relief Fund, operating tran?s e' rs and other sources
of revenue. As a result of State statutes that created these funds, the City is le ally prevented from funding them in an other way than a "pay-as-you-H o" basis. At December 3 1,208
8, the net assets in the 1925 Police ~ f z c e r ' sP ension and 1937 Fire 1 hter's Pension funds were $2,549,705 and $2,285,165, respectively ( age1 52). Beginning in 2008, due to the
passa e of State legislation, the Police and Firefighter's fe nsion Funds will be funded by the Stateof In3 ia na and will not receive property tax revenie. The transfer of pension costs
to the Statc of Indiana is on a reimbursement basisind will not provide additional revenue to the. .C ity fo-.r use in other property tax funded areas. The administration of the pension
plans will remain with the City. Notes to the financial statements. The notes to the financial statements provide additional information that is essential in order to have a full understanding
of the data provided in the government-wide and fund financial statements. -Other information. In addition to the basic financial statements and accompanying notes, the report presents
certain supplementary information. The combining statements referred to earlier inconnection with non-major governmental, enterprise, internal service and fiduciary funds are presented
immediately after the basic financial statements.
Government-wide Financial Analvsis The financial analysis will focus on the net assets (Table 1) and changes in net assets (Table 2) of the City's governmental and business-type activities.
At December from 2007. The activities, which part, to higher sewer assets, $309,934,378 (79%), sewers, water and sewer net of related debt, it should be sources, since the capital assets
themselves cannot be used Ci of South Bend %et Assets Table 1 Governmental Business type Activities Activities Total 2008 2007 2008 2007 2008 2007 Assets: Current and other $234,715,762
$ 184,595,696 .%52 ,044,370 % 63,141,721 $286,760,132 $247,737,417 Assets Capital assets (net) 257,318,080 269,192,480 179,588,448 173,527,686 436,906,528 442,720,166 Total assets 492,033,842
453,788,176 231,632,818 236,669,407 723,666,660 690,457,583 %Liabilities: Long-term liabilities 212,834,703 176,241,282 79,405,969 88,725,371 292,240,672 264,966,653 Outstanding Other
Liabilities 26,678,423 24,391,084 12,180,866 11,682,546 38,859,289 36,073,630 Total Total Liabilities 239,513,126 200,632,366 91,586,835 100,407,917 331,099,961 301,040,283 Net assets:
Invested in capital 186,039,104 200,634,954 123,895,274 112,194,451 309,934,378 312,829,405 assets. net of related debt Restricted 11,077,687 5,370,627 8,630,542 8,273,527 19,708,229
13,643,884 Unrestricted 55,403,925 47,150,229 7,520,167 15,793,782 62,924,092 62,944,011 Total net assets 252,520,716 253,155,810 140,045,983 136,261,490 392,566,699 389,417,300 At December
3 1,2008 the City was able to report positive balances in all three categories of net assets, for the government as a whole, as well as for its separate governmental and business-type
activities. The net assets for government activities decreased by $635,094 from $253,155,810 at December 31, 2007 to $252,520,716 at December 31, 2008. This decrease was due to planned
spendin on ca ital projects. The net assets for business-type net assets activities ~ncreased by $3,78 8 ,493 4' ram
$136,261,490 at December 31, 2007 to $140,045,983 at December 31,2008. This increase was due primarily to the increased net assets in the Water and Wastewater Utilities during 2008.
City ofSouth Bend Change in Net Assets Table 2 Governmental Business Activities Activities Total 2008 2007 2008 2007 2008 2007 Revenues: Program Revenue: Charges for Services Operating
grants and contributions Capital Grants and contributions General Revenue: Taxes Property taxes Other taxes Grants and contributions not restricted to specific programs Investment Earnings
Other Revenue Total revenues Exoenses: General Government Public Safety Highways and streets Health and welfare Culture and recreation Economic Development Interest on long-term debt
Water Wastewater Civic center Building department Parking Solid Waste Golf course Total Exoenses . , . . Change in net assets before transfers (5,132,278) 14,706,787 3,819,463 6,985121
1 (1,312,815) 21,691,998 and special items Transfers 34,970 3,735 (34,970) (3,735) Special Item -Well Field contamination 4,462,214 4,462,214 lawsuit Change in net assets (635,094) 14,710,522
3,784,493 6,981,476 3,149,399 21,691,998 Beginning net assets (restated) 253,155,810 238,445,288 136,261,490 129,280,014 389,417,300 367,725,302 Ending net assets $252,520,716 %253,155.810
%140.045,983 S'136361.490 $392,566,699 %389,417.300
Governmental Activities Net assets decreased by $635,094 during 2008. Total revenue decreased by $5,269,011 and total expenses increased by $10,107,840. The majori of the revenue decrease
was due to a non-recurrin true up distribution, by the Indiana Department o? !R evenue, of income taxes t h a t was received in 200 9 ($3,234,524) and lower interest revenue ($1,285,703)
in 2008. The increase in expenses was due primarily to increases in spending in the areas of highways and streets and economic development. Such spending included an increase in the
pavin program, the widening of Miami Road and Portage Avenue, continued remediation of the former Stude % aker Automobile Plant site, the start of construction ofEddy. Street Commons
near the University of Notre Dame and improvements to Century Center (convention center). The special item in the amount of $4,462,211 was for a ayment received from a rivate company
in settlement of a class action lawsuit, to which the 8ity was a p " " Yfo'r .w e P1 field contamination. The proceeds are being set aside in a separate fund to be used mainly or environmental
projects. Business-type Activities Business-type activities had an increase in net assets of $3,784,493 during 2008. The increase was due primarily to higher billing rates in the Wastewater
utility. The increased revenue will finance lon term capital development at the Wastewater Treatment Plant and the City's Combined sewer 0verflowfkS0) rogram to separate storm and drain
sewers. As a result of these lanned ro ects, total expenses for costs in 3 astewater. {usmess pe activities increased by $5,513,278 (12.7%) during 20 %8 due to Kig.1 e r operating and
capital Financial Analysis of the Governments' Funds As noted earlier, 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. Governmental funds. The purpose of the City's governmental funds funds
is to provide information on shortterm inflows. outflo\vs: and balances of spendable resources. Such information is uscful in assessing the Ciw,'q financinc reauiremcnts. In oanicular.
unreserved fund balance may serve as auseful measure of a & ---~ .~. ..... ~ ..-. .. -E;ernmentts net resources available for spending at the end of the fiscil year. At December 31,2008,
the City's governmental funds reported a combined ending fund balance of $205,873,595 age 37). Of this total ending fund balance, a total of $143,796,698 (69.8%) was in unreserved fun
'IP balance, which is available for spending at the City's discretion. The majori unreserved fund balance was for capital projects ($87,571,056d that have been designate2 ' by the this
Common Council, the Board of Publlc Works or the South Ben Redevelo ment Commission. The balance of unreserved fund balance not in capital project funds was $56,225,942. The remainder
oftotal fund balance $62,076,897 1s reserved for various reasons such as for encumbrances, debt service, property held $o r resale an 2 a'd vances to other funds and is not available
for new spending. The General Fund is the City's primary operating fund. At December 3 1,2008, the total General Fund balance was $27,416,584, an increase of $3,655,831 (15.4%) during
2008 (page 37). This increase in General Fund balance was due primarily to. the fact that revenues exceeded ex enditures, before other financing sources and uses, by $4,226,554. The
unreserved fund balance o i? the General Fund was $24,171,313 at December 31, 2008. Of this amount, $13,600,000 (20% of budgeted operating expenditures) was designated as a contingency
for cash flow due to St. Joseph County's expected delay in mailing out 2008 property tax bills, $71 1,507 was desi8 n ated to cover ear end cash deficits in the parking garage fund and
central services fund, and $9,859, 06 was availab Ie?for' t-he Cl,t y's general fund capital program that is traditionally funded at the beginning of each calendar year with dollars
remaining at the end of the rior calendar year. However, the majority of these Mds will be used to offset the estimated $9 m ?li ton reduction in 2009 property tax revenues discussed
later in the section titled Economic Factors and Next Year's Budget. The Parks and Recreation Fund had a decrease in fund balance of $1 53,733 during 2008 reason for this decrease was
that revenue (primarily due to property taxes and user less than expenditures during the year. Certain operating costs such as fuel were
budgeted. At December 3 1,2008, total fund balance in the Parks and Recreation Fund was $2,699,626. The unreserved fund balance of $2,643,285 included $1,901,400 (15% of bud eted o erating
expenditures) designated as cash flow contingency and the remaining $741,885 availa a le fort 71 e 2009 capital propa, n . H, o,w ever, like in the General Fund, the capital dollars
wi l l be needed to offset the estimated 1 2 ~n~lllorend uction in 2009 property tax revenues discussed later in the section titled Ecorlomic Factors and Next Yearn's Budget. The TIF
Airport and County Option Income Tax (COIT) funds are used to account for major capital construction rojects and certa~n debt service pa k ' renThte fsund. b alance in the TIF Airport
Fund increased by 10,140,602 during 2008, while the nd balance in the COIT h n d increased by $925,654 during 2008 (page 39). The TIF Airport fund balance increased due to transfers
of $1.76 million dollars from the San~pleIEwingT IF fund which was closed out during 2008 and due to higher property tax revenue. The TIF Airport fund is a major success for the City
of South Bend and has generated over 500,000 million dollars in private investment since its inception. The COIT fUnd increased due to higher income tax recei ts than estimated and lower
expenditures than anticipated. At December 31,2008, the unreserved fu nd' balances in the TIF Airport and COIT funds were $27,879,112 and $4,512,956, respectively. These fund balances
represent resources that City has to meet some of its future capital constructio~nl eeds and ongoing debt service obligations. Individual fund data for each of the non-ma'or governmental
funds is provided in the form of the combining statements in the Supplemental In $ormat,~onp o rtion. Proprietary funds. Enterprise funds are used to report the same functions presented
as business t activities in the government-wide financial statements. Internal service funds are used to account yzoer services provided to other City de artments and funds on a cost-re~mbursement
basis. The City maintains seven enterprise funds an d"t hree l.n ternal service funds. The basic proprietary fund financial statements can be found later in this report. Fiduciary funds.
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City has four fiduciary funds. The basic fiduciary funds financial statements
can be found later in this report. General Fund Budvetaw Highlights The City adopts an annual appropriated budget for its General Fund. The City prepares its budgets using the cash basis
of accounting. For 2008, the original General Fund expenditure budget was $67,300,000 (page 88). During the year, additional appropriations of $4,273,875 were made (primarily for capital
and encumbrance rollovers) resulting in an endlna General Fund expenditure budget of $71,573,875. The General Fund budget is reviewed on a mont ly basis by staff and budget amendments
between cost categories (i.e. personnel, supplies, services, capital) are approved as needed by the Colnmon Council. Throughout the year, actual ex enditures are monitored and projected
and the budget is amended to prevent any budget overruns. ~ %Ceity tries to work within its original budget by increasing categories that will exceed the budget while at the same time
decreasing other categories that are under budget. Actual General Fund expenditures on a budgetary basis (cash expended and outstanding encumbrances at year end) were $68,140,040 during
2008, which was $3,433,835 (4.8%) less than the amended budget due primarily to savings in personnel costs. General Fund revenue was originally budgeted at $69,045,926 for 2008 (page
86). During the year, the General Fund revenue budget was reduced by $1,125,227 (primarily due to revision of estimated property tax revenue) to $67,920,699. During 2008, actual General
Fund revenue was $33,930,404, wh~chw as $33,990,295 (50%) less than budgeted. The principal reason for this shortfall was that St. Joseph County experienced delays in pro ert tax rate
certification and billings. A total of $14,574,480 in property tax revenue was received in tie Jeneral Fund during 2008, which is 28.5% of budget. It is anticipated that the remaining
property tax will be collected during 2009. Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for govemnlental andbusiness type activities
was $436,906,528 (net accumulated depreciation) at December 3 1,2008 (page 34). The largest components of this investment in capital assets are in streets and roads ($147,813,035 net
of depreciation) and
buildings ($1 35,495,373 net) at December 3 1,2008. This investment in capital assets also includes land, land improve~llents, building improvements, vehicles, construction in progress,
computers and equipment. A detailed explanation of these capital assets can be found in the Notes to the Basic F~nancialS tatements starting on page 59. Under the category of roads,
the amount of $366,086,462 consists of 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. City of South Bend Capital Assets Governmental Activities Business-type Activities -Total Capital assets not being depreciated:
Land $1 1,539.931 $1 1,539,931 $3,020,575 $3,020,575 $14,560,506 $14,560,506 Construction in Progress 1,966,657 5,583,032 15,117,137 7,773,770 17,083,794 13,356,802 Total capital assets
not being depreciated 13,506,588 17,122,963 18,137,712 10,794,345 31,644,300 27,917,308 Capital assets being depreciated: Building 104,261,693 102,887,451 99,069,623 98,155,502 203,331,316
201,042,953 Improveme~ltso cher than buildings 15,383,288 12,386,035 113,300,648 109,865,555 128,683,936 122,251,590 Machinery & equipment 40,741,069 39,651,772 44,626,442 44,986,487
85,367,511 84.638,259 Roads 366,086,462 366,086,462 0 0 366,086,462 366,086,462 Total Cost 526,472,512 521,011,720 256,996,713 253,007,544 783,469,225 774,019,264 Less accumulated depreciation
for: Buildings 28,867,345 26,303,715 Roads Total Ace. Depreciation 282,661,020 268,942,203 95,545,977 90,274,203 378,206,997 359,216,406 Total capital assets, being depreciated, net
243,811,492 252,069,517 161,450,736 162,733,341 405,262,228 414,802,858 Total activity capital assets, net 5257,318,080 5269,192,480 5179,588,448 5173,527,686 5436,906,528 $442,720,166
Ylaior 2008 capital asset proierts include the followi~iy: -LED 'l'ratiic Signals -$1.5 rn11lit)n( inno\.a~i\.tecc linolopy -85"~s a\,ings in cnergy costs). -Lease purchase of 48 policc
patrol \~ehicles-S964 thousand
-On-going street 8a.v ing pr$,o
ram -$2 1 million -Riverside Trail ikewayl alkway $2 3 mi.lli.on -New Fire Station No. 2 -$2.4 million -CSOnet -Sewer Overflow Prevention Srtem -$1.9 million -Wastewater Treatment Plant
-Primary eratlon Channel Modifications -$ 4.1 million -Leeper Park Tennis Center Renovation and Resurfacing -$247 thousand -Miami Road widening -$275 thousand -Portage Avenue improvements
-$805 thousand -Potawatomi Zoo upgrades -$509 thousand -Elbel golf course irrigation system -$500 thousand Debt Administration. At December 31,2008, the City had a number of debt issues
outstanding. The following is a summary of debt transactions during 2008: Ending Beginning Additions Reductions Balance Balance Revenue Bonds $151,715,000 $40,655,000 $9,595,000 -0--$1
82,775,000 Mortgage Bonds 26,884,644 1,47 1,345 25,413,299 NotesILoans 26,281,149 4,075,672 3,781,382 26,575,439 Capital Leases 8,822.881 990.194 1,796.205 8,016,870 Total $213.703.674
$45,720?866 $16.643,932 $242.780.608 During 2008, the City issued lease rental revenue bonds in the amount of $36,000,000 for public improvements at Eddy Street Commons, a mixed-use
development near the University of Notre Dame. The debt service on these bonds will beP aid by prope tax revenues, received generated by the development in the form of tax increment
inanci.ng . In adY it.io n, the City issued Special Tax Revenue bonds in the amount of $4,655,000 for improvements at Century Center and $4,000,000 inHousing and Urban Development Section
108 loans for cleanup and improvements at the Studebaker Corridor site. During 2008 the Citr also entered into a five-f ear capital lease in the amount of $963,508 for the replacement
of 48 PO ice patrol vehicles. Overal ,the Cir's debt increased by $29,076,934 during 2008, from $213,703,674 at December 3 1,2007 to $242,780, 08 at December 31, 2008. Under the Indiana
Constitution and State statute, the City's general obligation bonded debt is subject to a legal limitation based u on 2% of total assessed value of real and personal property. 711e City
had no general obligation bon 2 ed debt outstanding at December 3 1,2008. A detailed listing of this debt can be found in the Notes to the Basic Financial Statements starting on page
63. A calculation of the City's legal debt limitation can be found in the statistical section of this document on page 180. Economic Factors and Next Year's Budgets
assessing the impact of this legislation and is in the process of developing, in conjunction with its citizens, appropriate and prudent financial spending plans to deal with the fiscal
effects. Future Economic Development Proiects The City of South Bend is in the midst of many exciting economic development projects that will continue into 2009. These projects include:
Eddy Street Commons -a $220 million dollar mixed-use development including two hotels, more than 20 stores and restaurants, office space and hundreds of town homes, apartments and condominiums.
This is the region's largest single development in decades. Innovation Park & Ignition Park-Indiana's first dual-site, state-certified technology park, which is a collaborative effort
between the City, the Univers~ty of Notre Dame and Project Future. Courtyard by Marriott -a new $38 million dollar, 300 room hotel to be built in the downtown business district. This
development will include a 210-car parking garage and will be located across the street from the City's convention center (Century Center). All-American Plaza -restoration of the historic
83-ear old structure at Michigan and Washington Streets downtown as part of a $9 million d01L project, including an addition with new retail, offices, condominiums, parking and a rooftop
green space. Civil Rights Heritage Center -s onsored by the Indiana Unjversity at South Bend, the of our racial and cultural diversity. renovation of the City Natatorium wiP 1 c hange
a symbol of segregation into aplace of celebration WIT-TV -a well established, public television station is moving into the downtown areawith a high-tech faqade that will forever change
the face of a key downtown intersection. . Kroc Center -a $22.5 million dollar world-class outh and fami! center to be built on the R a: r comer of Western and Cha in Streets in South
Ben The Centel: WI 1 be funded rimaril by a $42.5 million dollar grant om the Ray and Joan Kroc Foundation and $10 milfion dolYars in private donations. An operating endowment of $30
million dollars will also be established. This will be the only center of its kind in the State of Indiana. Century Center Improvements -major improvements at landmark convention center
built in the 1970's includ~ngsk ylights, mechanical systems and tsland park renovation. Requests for Information This financial report is designed to provide a general overview of the
finances of the City of South Bend, Indiana. Quest~onsc oncerninf any of the informat~onp rovided in this report, or requests for additional information, shoul be addressed to: M. Catherine
Fanello, City Controller City of South Bend Department of Administration agid Finance 227 W. Jefferson Boulevard, 12 Floor South Bend, Indiana 46601 235-5887 Fax -(574) 235-9928 southbendin.gov
Cash and cash equivalents Cash with fiscal agenl Inveslmenls Receivables (nel of allowances far uncoileclibles): lnteresl TaEs Accounts Intergovernmental Loans Internal balances Inventories
Prepaid expense Deferred charger Restricted assets: Cash and cash equivalenls Investmenls lnlsresl receivable Taxes receivable Accounts receivable Property held for resale Capital assets:
Lsnd and construclion in progress Olher capifel assets. net of depreciation Primary Government Governmental Business-Type Acli~6es Acfivilies Totals Tolal assels 492.033.842 231.632.818
723,666,660 The notes to [he linancial slalements are an integral part of this slalement. Continued on nem page
CKY OF SOUTH BEND STATEMENT OF NET ASSETS December 31.2008 (Continued) AcCoUnlS payable Accrued payroll payable Unearned reuenue Contracts payable Taxes payable C~stomedr eposits A C
C Nin~le~re sl payable Estimate of unfiled claims Olher current payables Payable tom resbided assets: Accounts payable Contracts payable Customer deposils Accrued interest payable Noncurrent
liabilities: Due within one year Mortgage bonds payable Compensated absences Revenue bonds payable Capital lease obligations Notes and loans paydble Due in mwe lhan one year: Mortgage
bonds payable (netof discounls or premiums) Compnsated absences Revenue bonds payable (net of discounts or premiums) Capital lease obligations Noles and loans payable Unamortized gain
on salelleaseback Net other postemploymenl benefits obiigalion Net pension obligation Tolal liabilities lovesled in capital assels, net ofrelated debt Restricted far: Debt service Capital
outlay Unrestricted Total net assets Primaw Govsrnment Governmenlai Business-Type Activities Activities ActMBes -The notes lo the financial statements are an integral part of this statement.
C TY OF SOUTH BEND STATEMENT OF ACTIVITIES For The Year Ended December 31. 2008 Primary government: Governmental adivities: General government Public safety Highways and streels Economic
development Heailh and weifare Cuilurs and recreation lnlerest on long-tern debt Business-lype advBes: Water Wastewater Civic center Building depamenl Parking Solid waste Golf course
ToLai business-type activities Total primary government Pmaram Revenues Net (Expense) Revenue and Changes in Net hsels Operating CapiLal Primary Government Charges far Granls and Grants
and Govemmenlal Business-Type Expenses Se~ices Conhibutions Contributions Activities Activities Totals General revenues: Property taxes 76,109,499 County oplion inmme lax 5.813.846 Economic
development income Lax 3.788.754 Pmfessbnal sports development lax 453.268 Communily revilalizalion enhancemenl dislricl tax 955.315 Grsnts and conlribulions not resfricted to soecific
.~ m.r a m s 5.664.011 Unrestrided inveslmenl earnings Olher Transfers Tolal general revenues and transfers Special item: Well lield contamination setUemenl Change in nel assels Net
assels -beginning (rastaled) Net assels -ending The notes to lhe finamiai statemenls are an integral part of this slalement.
Cash and cash eq~ivalenfo Cash With RScal men, Ascavnlr lnlergavemmental Loans Interfund receivable: lnleifvnd loans lnlerfund servkes pmvided and used lnventorier AdYances lo olher
funds Properly hsM for resale LiabiGlies and fund balances Liawifiies: Accaunl payable Amued payrdl payable Cant.3ct.r payebb Interfund payable. lnlerfund loans lmsrmnd sew-provided
and us4 Tams .~ a.M b b Cuslomer dsparils Ddened revenue Performance deposits payable Olhrnsuirenl payabies AdVances from Other funds Fund balances: Ressrved for: Enwmbrams N0rn"rre"t
loan. recehaww ,"rsnlay bpeperty held forresale Debl rewics Advances lo olhsr funds unrsoewed: Oesipnzled f a cash Row contingency General fund. unds4lgnaled special revenue funds. underlgnaled
Capitel pn@b funds. undesipnalsd Ofhe, Park and Governmental General Recrealion TiF Airport COlT Funds Totals Total fund balances 27.416.584 2.699.628 38.913.843 9.131.745 127,711,797
205.873.595 Total liabililiss and lund balancss 1 50.362.852 1 7.591.000 1 39.536.779 1 11.961.378 $ 137,380,980 The nolas la the Ananclal r(atsmsntsare en inlegrat pari of lhs statement.
ClM OF SWTH BEND BALANCESHEET GOVERNMENTAL FUNDS December31. ZWB AmarntP reparlsd for gavemenla1 actlvilhs in ihe slatsment Unel assets are different becauas: capnd ssreio used In governmenlalac~vili
sa re rot linawial resources and. thensfon, are notreporled in the funds. Preosid sxoenses 15154.3961 aod deferred chamea 111.917.8431 ara rot available la .o av. far &rent &.ad exkndiure;
and. therefore sredefe'rred in &nor. Internal w k e funds are used by mamgementto chame the msts of cerlain sewiwr lo individml funds. The assehand tiabilesaf ihe internal service funds
are i n d d in governmental adOtis m the slalsment ofnelassets. Longlem Iiabililie~i.d uding bondr payable, are m t d vs and payable in he ~ r r e nplr iW and. therefore, are not repacted
in h~ funds! Daleired revenuer Bods payable Less: Deferred chams an refvnding (M be amantzed as inletesl expenre) Lsrs: Ilauanca dismuotar Ipcemiuml (to be bember6zed N ~pIen sion obV&ti&
Shon-larm liabililier that are MrIe cognized in governmema1 lvnds unll due: Amrued intere3l llayable Compensated abs&s payable me mles to lhe Pnamial slalemsnb are an integral parl mflhis
slalsment,
Revenuer! ClTV OF SOUTH BEND STATEMENTOFREVENUES.EXPENDITURES.ANDOTHERCMNGESINFUN0BALANCES GOVERNMENTAL FUNDS F a me Year Ended Decembsr 31. MOB . . County smw6c developmen( inmme Proresrimaf
sponr dsve~wmsnlta x Community~vitaliremnen hancemen1 Lice-and permits lOtengOYBmmenla1 Changes foiserv-~ i n e san d radarla Int~est oonatims Sale or piope* Olher &rno~: General pwermnt
~ " b t.di e~ty H-ys and slreelP Emnomtc devslapment Heanh and wetlare culture and revsali~n DeMservice: Prncipal lnlere~aln d 6wal charges Bond %SUB-cwla Capilat ouuay: General government
Public safet" Other Tolal Park and Governmental Governmental Genwal Recreatbn TIFAirW COlT Funds Funds Total sxpandllures M.704.735 11.975.800 4,524,715 3.162.941 53,654,504 138.022.795
~xcess(d sficiency) of revenues over (under) sxpmdi1ureS aher 6nancing sou-(uses): Transfers in 316.701 -1,764,424 130.093 6.363.407 10.574.625 Tmnrferr out (887.424) (423.217) (385.421)
i2.352.0571 16.461.5361 (10,539,555) Debt issuance -45,622,808 45.622.808 Premium Premium (discgudl on debt iswance -1.526.186 1,526,186 T-1 other banc#rm sources and uses (670.723)
(423.217) 1.379.003 12.251.964) 49.150.865 47,263,964 Special item: we11 field mntsminsfian semement -4,452,214 4,462,214 Nel change in lvnd b a l a m 3.655.831 (153,733) 10.140.602
925.654 38,672,865 53.441.239 Fund batancer -begin~ng W.760.753 2.853.359 26.773.241 6.205.091 88.838.912 152.432.356 Fund balances -ending S 27.416.584 S 2.693.626 $ 38.913.843 S 9.131.745
S 121.711.797 $ 205.873.695 The noler la the OnanYal slatements are an integral pan oflhls slatement
-. . . -. ---. . . .-RECONCiLIATION OF THE STATEMENTOF REVENUES. EXPENDTURES. AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIV.TIES ForTheYsar Ended December31,
2008 Amounls reporled for governmental activities in ihe slalemenl of activilies are different bewuse: Net change in fund balances -Iota1 governmental funds (Statemsnl of Revenues. Expenditures,
and Changes in Fund Balances). 16 53.441.239 Governmental funds reparl capilal outlays as expenditures. However, in the statement of adivities the msl of lhose assets is aliacaled over
their estimaled useful lives and reparted as depredation expense. This is the amount by which capital OuUays exceeded depreciation in the current pen'od: Capilai outlay Depredation expense
Loss on disposal of asssb Revenues in the statement of activities lhal do not provide wrrent financial resources are not reparled as revenues in lhe funds. The issuance of long-lerm
debt (e.9.. bonds, leases) provide cunenl financial resources lo govemmental funds, while the repayment of the principal of long-term debl consumes the mrrenl financial resources ofgovernmenlal
hmdr. Neilher transadion, however, has any effecl on net assets. Also. govemmenlai funds reporl the elfed of Issuance msls, premiums, discounts and similar ilems when debt is fin1 issued,
whereas Lhese amounls are deferred and amatired in the slatemen1 of adivities. This amount is the net effecl of these differences in the lrealmenl d longlerm debl and related items.
Long-lerm debl incurred during the cunenl perid Bonds Premium on bonds Loans Capilal leases Principal debt paymenls: Bonds Loans Capilai leases Amortization expenses some expenses reparled
in the slalemenl of adivilies do no1 require the use of cunenl financial resources and. therefore, are no1 repwted as expendlures in governmental funds. Prepaid expense lnteresl expense
Compensated absences Change in net pension assel and net pension obligation lnlemai service funds are used by management lo charge the costs of certain adivilies lo individual funds.
The net revenue (expense) aflhe inlernal service funds is reparted with governmenlal adivities. Change in net assels of governmenlal sclivilies (statement of adivilies) The odes to the
financial stalements are an inlegrai part of lhis statemenl.
CITY OF SOUTH BEND STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31.2006 Cunenl assets Cash and cash eqwivalem Inlered receWable A-"1s recaivaMe (nslol allawance) Am& receivable
-other tntefund receivabler: lntefund laanr tnlelfmd serv.ms pmvided and used lntemovemmantsl receivable nkttiaed ass& Canh and cash squivalem Repair fund Cusfamer depoJiD ReVmYe bond
mwVlar4 awouuts Capital outlay acmmts Inveshsnlr: cepila1 oullay acmunn Accaunlr RcdlYaMe lnlere~rle ceivable Gwernmenist BuainescType Acli*r -Ederpnse Funds Activities Other Walet Wastewatai
Cenlwy EnlerpnJe lnlernal Ufll~ty U t i i i Cenlw Fundf Totals Service Funds Ca~ilararasb: Lam and co"lr"d*" ro pm%?m*s omsr capital assets ("el or accumubted depreciation) Tats1 capita,
ass*. The noler b lhe flnantial Jhlemenln are an integral pan of this slalemenl. Continued on nen pags
CllY OF SOUTH BEND STATEMENT OF NET ASSETS PROPRIETARY FUNDS December31.2008 (Cmlinued) Current l$bilili~s: Acownlr payable Inlefind payable": lntemnd loans htemmd SBN~U~S provided and
used A w e d payroll payable Compensated absences Unearned revenue Taxes payable custamerdepo~t~ Estimate of un6led daims Curre~liabibtiepr ayable fmm resttided asseta: AcmunO payable
lnlerfvnd payabls~ lnlmnd sewices pmvided and used Cantrads and relaloage payable Curtomr depsib Madgage bonds papble Revenue bonds payable Capital leases payable Nates and bans payable
Accrued inlerest payable Tdsl cumnl Dbilitis Oavsmmental Businerr-Type Activilms -Enterprise Funds A n i v i l i l Mhar Waler Waotewaler Century Enlemnre lmemal Ullilty UtllW Cenlei
Funds Totals Sewb Funds Noncunenl liabililies: Advanear fmm dher lvndr . 3.379.500 3.379.500 ~odgagebo nd. payable (net of unamorlzed dl=-I) 818.201 . 816.201 ~evenueb onds payable (net
of unamortized dircaunta. premiums. and dalemd amounl cm refundios?) 12.859.637 47.728.367 -2.207.530 62.795.534 CapMl Isares payable 16.291 66.923 168.930 252.144 i ale sand loans payable
1.M17.160 13.682.993 226.125 -15,518,278 Unamamsdgah on uleltaasebbbk 21.812 21.812 Tdal noncurrenl liabistier 62.296.484 228.125 5.777.772 82.785.469 Tdal babilities 19.062.923 67,846,608
1.010.510 7.431.219 95.351.460 2,195.257 lnvesled h capilat axrelo. net of relaled debt 42.498.182 56,759,884 13.576.9SM ll.090.234 123,895,274 1.433.931 Reslticled for deblsewb 1.790.150
3,100,452 -1.306.766 6.197.368 Rsslticted for capbi outlay 658.772 143.271 1.629.912 1.219 2.433.174 Unrestkled 3.897.767 8.482.554 193.4181 f4.766.738) 7.520.167 111,376,178 The notes
Lo the r ~ n c i arlta lementa are an inlegrei pen of vlb ~(alement
CITY OF SOUTH BEND STATEMENTOFREVENUES.EXPENSES.ANDOTHERCHANGES1NFUNDNETASSETS PROPRIETARY FUNDS ForThe YearEnded Dacsmber31.2WB opersttng revenus,: Metered revenue. Re.ae"tial C m m
~ 7 a l lndvslrial FIrepm(ec1ion revenue Penalties convention fees L'censar and ml Penin9 reas Sdid WeslC lee9 G0""ounS lees Employeelemployer wnvibuliaias Charges loisalerand -cer m
e r Govemmenlal Bu&~lers.Type MivBer-Enlemnre Funds Activities Olher Waer Wa~teralsr Cenlur, Enlerpi~e Inlemal uarty uktiv Cenler ~und* ~olals service ~unds ~ p e i a ~mexgp emeo: sou-davppb
and expenw1c~Iem:on system emenw -operations and maintenance 964.004 3.622.697 4.566.701 Tmnsrnbim amd lributior~pmpinge .psnsa -op~mtimsa nd maim-3.145.806 -3.145.606 ~realmenat nd
dispmal expense -mpratians and mainlmancs 855.478 9,856,782 -10.712.260 opnssbns and mainlename -6.285.664 6.283.664 3.166.062 CYIlmraCCOYntE 1.878.729 101.636 7,527 -1,787,892 Adminkbs6on
and gsnard 3.136.320 2.269.970 2,992,560 1.104.637 9,523,487 640.947 tnourame claims and pmlums -11.843.645 DepredaW -1.561.545 -3.396.2W -519.680 -565.305 6.042.774 119.826 Total operating
expenses opsmsw inmm Oms1 ono operating revenues (expensss): t n l e r s ~ amh -mn t revsrme HolellmolBI lei ~iscelianeaurr evenue b , e ~ l _ U _ n ~ ( l Amonlzatim expensl, Repaiihnd
expenses -in (tms) on d i s w a m 0, assets Tnal nmaperating rerenus (sxpenws) (345.136) 11,916.3051 1.659.912 (698.520) (1.3W.l49) 271.229 l n m (lo ss) belaa canlnbulions and liamlers
1.656.192 1.759.080 (151.4231 (652,7661 2.610.063 4.44.077 CapW conlnbulimr 473.676 -735.704 Tlansfen in -1,209,380 lM.769 1.500 1.600 Trsnsrem avl ----(36,470) (36.470) Change in net
asrets 2.129.668 1.75B.060 m.281 (687.7361 3,784,493 4.550.846 Total nd sssels-beginning -46.715.003 -66.728.061 -14.529.m -6.269.217 136.261.490 6259.261 Total net assets -ending -148.844.871
-168.468.141 -5 15,113,490 -1-7,601,461 1 140.045.983 6 12.810.107 The nols lo Lhe fimmial statements are an inlegral pandthls stslemenl
STATEMENT OFCASH FLOWS PROPRIEn\IIY FllhDS For Tne Year Ended Ownmoor 31.2008 Govsmmenlal Business-Type Act~vnies-Emaptise Funds AdiWel Other Wale, Warlewater Century Enterprise lnlemal
Uh'lw Utiiil~ Center Funds Totals SaMce Fund Cash n w s from oprallng adiviber: ~ e ~ e i p b f r acmus tomers and users 5 14.132.792 $23,295,265 1 1.833.400 S 7.905.340 $47,166,797
1 14,126,137 Receipls from infs*rd servlcer pmvided 748.659 36.500 47.667 633.026 6.097.628 Paymen* lo suppliers (6,163,276) (7,947,9401 (2.847.378) (3,695,7901 (20,684,3841 (12,261,822)
Paymen18 lo emphyees (4.236.983) (4.955.996) -(2.366.799) (11,559,776) (2,514,395) Paymemr for inleifund services uwd (721.438) (3,553,546) (303.259) (1.308.498) (5,696,739) (587.625]
Net carh providsd (md) byopraling sdivnier 3.729.9s 6,865,283 (1.317.237) 582.922 9.8EO.922 4.831.722 Cash nowa fmm noncapilai financing adiiben: Advancas hom alher funds -651.500 651.500
Repymenls ofadvancer from other lunds -(270.625) (270.625) interfund loan -(5.503.124) Interfund loan repaid -(3.540.269) H~tel lmtelal x -1,497,390 -1.497.390 Transfer rmm olher funds
1 . W 1.500 Transfer lo other funds (36.470) (36.470) Net cash pmuided (used) by nonca~ital finandm adwities -1.497.390 345.905 1.843.295 19.ffl3.3941 Cash n a s fmm capbl and refsled
finsdng acd*ier: Acquisit~nan d mnsbmcfnn of capital assets (1,332,216) (10.993.928) (211.875) (26.900) (12.554.9211 (7,3081 Prmeedr fran capital debt isued 6,274 8.274 pondpal paid
on cam1 deb1 (2.910.061) (3,703,979) (71.500) (906.679) n.592.2191 lnlerssl p i d on capilal debt (668.746) (2,700,448) (15.388) (172.455) (3,777,035) ~,-ed= from sales of capitat s
r ~ ~ 7.449 10.858 16.305 NBL carh usad by capnal and relaled financing adivdles cssh n a s from ,""elling sclivilies: ~urchasosf inveslments iderest received i el carh pmvwad (uwd)
41 inverting amities 240.829 1.201.692 (840.8951 43.508 845.334 284.881 Net *re=-m cash and cash squivalenir (1.153.WJ (9.323.929) (759.305) (122,643) (11,36O,W5) (3,951,069) Carn nnd
cann mu va1en.r Jan.#.? 1 tlncl~d.ng1 3 6 9 . a ~1 1 . 3 2 4 ~s~6.. 3 ~ ~ 3 5 9 , ~ n d 134,720 580 101 I ~ lCo ~ a r l d n dr uslom~de-s. mrenue oondmuanantr andcarnal out'avs rernmt
vclv moonod m Cash and cash equhslents. oecernber 31 (including $530.181. $1,330,520, 56474.4m. and $24.616.260 foiths repair fund, wslomsidspaiib. r e m e bond covenanls and capital
anlap, respenively, reponed in r e s l i ! accaunb) 5 6,493.913 $36,131,972 5 1.445.454 S 1,837,336 145.908.575 S 3.771.022 The mles lo the financial statements are an inlegral panofthis
stabmsn(
CITY OF SOUTH BEND STATEMENT OF CASH FLOW PROPRIETARY FUNDS Far The Year Eded Decembei31.2008 (Continued) Remciliahan at operating mame (blo) net carh pmv'ded (used) by operating acGlles:
opraling lnmrne (ias) Adiustm& lo remncile opsrating in-(lo*) lo net carh pmvided (used) by operating aniaties: DeplBciaim oxpme Bad deb1 e z p n ~ ~ ~ o p r a t i rnmgn uer (expsmes)
(acrsase) decrease in asrels: AcMlnls maivabla Acurunll miuabls -dher Inlqwernmentai mceivables Inlwfund recsiuablen InvenlarkP ~repeldite ms lnuease (dmrease) m liabiaaeo: customer
depmna Aaountr payabb Conlncls payable A m e d paymtl payable Intdund loan inldund sewices pmvided and used Cornpenrated absence payable Taxes payable ele erred revenue Estimated wsled
claim Govsrnmenlal Burinerr-Type Activile-Enlemrire F u d l Ad~vitres Wler Waler Wsntewaler Century Enlsiprise Interns1 Ulillly Ublily Cenlw Funds Tolais Sewka Fund Tdal adprrbnenls
1,728,626 3,190,896 494.098 537.068 5.950.690 656.874 N ~-hI pmuided (used)b yoprrst,ng ad,vniss 1 3,729.956 1 6,865,283 1 552,922 $ 9,860.922 $ 4,831,722 Noncash i"veSti"9. capita1
and snanciw acliv*es: Capital suee mmribufed $ 473.676 1 -5 735.704 $ -S 1.209.380 S 104.769 CapiWaarssW acquired by capital deb1 22.386 75.672 98.058 Purchaje of capilalasreb on acmunl
74.832 598.720 -673.552 Capital asset dispasalp 433.262 188.OW 137.719 276.899 1.035.880 56,195 Interest paymemadded lo capnal assels 3.317 304.117 -307.434 Principal on capital debt
reduced by inleifund receivabk 11.616 11.618 Thtr notes lo me fimntiaatatsmenb are an integral pari of mi* slatement.
Cash and cash equivalents Receivables: Interest Taxes Total receivables Total assets CiTY OF SOUTH BEND STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS December 31.2008 Current liabilities:
Accounts payable Accrued payroll and withholdings payable Total liabilities Net Assets Held in trust for: Employees' pension benefits Individuals, organizations, and other governments
Tolal net assets Pension Private-Purpose Agency Tmst Funds Trust Fund Fund The notes to the financial statements are an integral par1 of this slatement.
Contributions: Employer On behall Plan members Other CITY OF SOUTH BEND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS For The Year Ended December 31.2008 Total contributions
Investment income: Interest Total additions Deduciiong Benefits AdminisIralive expense Total deductions Changes in net assels Net assets -beginning Net assets -ending Pension Private-Purpose
Tmst Funds Tmst Fund The notes to the financial statements are an integral part of lhis statement
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS I. Summary of Significant Accounting Policies A. Reporting Entity The City of South Bend (primary government) was established under the
laws of the State of Indiana. The primary government operates under a Council-Mayor form of government and provides the following services: public safety (police and fire), highways
and streets, health, welfare and social services, culture and recreation, public improvements, Planning and zoning, general administrative services, water, sewer, and urban redevelopment
and housing. The accompanying financial statements present the activities of the primary government and its significant component units. The component units discussed below are included
in the primary government's reporting entity because of the significance of their operational or financial relationships with the primary government. Blended component units, although
legally separate entities, are in substance part of the government's operations and exist solely to provide services for the government; data from these units is combined with data of
the primary government. Blended Component Units The South Bend Redevelopment Authority, a legally Separate entity, is a significant blended component unit of the primary government.
The Redevelopment Authority's sole purpose is to finance and construct land, buildings and other improvements for use by the primary government. Financial statements for the Redevelopment
Authority are available at the City Controller's Office, City of South Bend, 227 West Jefferson, 1200N County-City Building, South Bend, Indiana, 46601. The Morris Entertainment, Inc.,
is also a legally separate nonprofit Corporation, and is a significant blended component unit of the primary government. The Morris Entertainment, Inc., main purpose is to solicit donations
for the restoration and renovation of the City's Morris Civic Auditorium and the City's Paiais Royale Ballroom. Financial statements for the Morris Entertainment. Inc., are available
at 21 1 North Michigan, South Bend, Indiana, 46601. The South Bend Building Corporation. Inc., is also a legally separate nonprofit corporation, and is a significant blended component
unit of the primary government. The Building Corporation's main purpose is to finance construction and remodeling of City buildings for the City of South Bend. Debt of the Building Corporation
is repaid through lease payments from the City. Financial statements for the Building Corporation are available at the City Controller's Office, City of South Bend, 227 West Jefferson,
1200N, County-City Building, South Bend, Indiana, 46601. The primary government's officials are also responsible for appointing the members of the boards of other organizations, but
the primary government's accountability for these organizations does not extend beyond making the appointments. The Mayor and the Common Council appoint the board members of the South
Bend Housing Authority, South Bend Public Transportation Corporation (TRANSPO), Urban Enterprise Association, and the Special Funds Board of Managers. During 2008, the Special Funds
Board of Managers provided $1,497,390 to the City's Century Center and $589,620 to the City's Professional Sports Development Fund, to finance capital costs of the College Football Hall
of Fame.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) 8. Government-Wide and Fund Financial Statements Government-wide financial statements (i.e., the Statement of Net Assets
and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed
from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely
to a significant extent on fees and charges for support. Likewise, the primary government is reported Separately from certain legally separate component units for which the primary government
is financially accountable. The Statement of Activities demonstrates the degree to which direct expenses of a given function or segments are offset by program revenues. Direct expenses
are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services
or Privileges provided by a given function or segment and (2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are
excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting as are the proprietary fund and pension trust and private purpose trust fund financial statements. Agency funds, however, report only assets
and liabilities. Since they do not report equity (or changes in equity), they have no measurement focus. Revenues are recorded when earned and expenses are recorded when a liability
is incurred, regardless of the timing of the related cash flows. Property taxes are recognized in the year for which they are levied. Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible
within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the primary government considers revenues to be available if they are
collected within sixty days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences, claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest
associated with the current fiscal period are ail considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are
considered to be measurable and available only when the primary government receives cash.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) The primary government reports the following major governmental funds: The general fund is the primary operating fund. It
accounts for all financial resources of the general government, except those required to be accounted for in another fund. The park and recreation fund is used to account for the operation
of the City park system. Financing is provided by a specific annual property tax levy to the extent that user fees and miscellaneous revenues are insufficient to provide such financing.
The tax incremental financing (TIF) airport fund is used to account for public improvement projects in the airporl economic development area. Financing is provided by property tax proceeds
in excess of those attributable to the assessed value of the property in the district before redevelopment. The county option income tax (COIT) fund is used to account for the City's
share of the county option income tax. Expenditures include land improvements and purchases of motor equipment. The primary government reports the following major enterprise funds: The
water utility fund accounts for the operation of the primary government's water distribution system. The wastewater utility fund accounts for the operation of the primary government's
wastewater treatment plant, pumping stations and collection systems. The Century Center fund accounts for the operation and maintenance of the City's convention center. Financing is
received from various rental agreements and a subsidy from the St. Joseph County's Special Funds Board of Managers. Additionally, the primary government reports the following fund types:
The internal service funds account for liability coverage, employee medical coverage, and central services such as fuel, vehicle repairs and various supplies provided to other deparlments
on a cost-reimbursement basis. The pension trust funds account for the activities of the 1925 police and 1937 fire pension funds which accumulate resources for pension benefit payments.
The The private-purpose trust fund reports a trust arrangement under which principal and income benefits cemetery maintenance. The agency fund accounts for assets held by the primary
government as an agent for employee payroll, pension, and payroll deductions. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option Offoliowing subsequent privatesector guidance for their business-type activities and enterprise funds, subject to this same
limitation: The primary government has elected not to follow subsequent private-sector guidance.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions
to this general rule are payments-in-lieu of taxes and payments of administrative costs. Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned. Amounts reported as program revenues include (1) charges to customers or applicants for goods, services or privileges provided, (2) operating grants
and contributions, and (3) capital grants and contributions, Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues
include all taxes. Proprietary funds distinguish operating revenues from nonoperating items. Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for Use, it is the
primary government's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities and Net Assets or Equity 1. Deposits and Investments
The primary government's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from
the date of acquisition. State statute (IC 5-13-9) authorizes the primary government to invest in securities, including but not limited to, federal government securities, repurchase
agreements, and certain money market mutual funds. Certain other statutory restrictions apply to all investments made by local governmental units. Nonparticipating certificates of deposit,
demand deposits and similar nonparticipating negotiable instruments that are not reported as cash and cash equivalents are reported as investments at cost. Debt securities are reported
at fair value. Debt securities are defined as securities backed by the full faith and credit of the United States Treasury or fully insured or guaranteed by the United States or any
United States government agency. Open-end mutual funds are reported at fair value. Money market investments that mature within one Year or less at the date of their acquisition are reported
at amortized cost. There is no material difference between amortized cost and fair value. Other money market investments are reported at fair value. Investment income, including changes
in the fair value of investments, is reported as revenue in the operating statement.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) 2. Interfund Transactions and Balances Activity between funds that are representative of lendinglborrowing arrangements outstanding
at the end of the fiscal year are referred to as "interfund receivableslpayables (i.e., the current and non-current portion of interfund loans). All other Outstanding balances between
funds are reported as "interfund services providedlused." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide
financial statements as "internal balances." 3. Property Taxes Property taxes levied are collected by the County Treasurer and are usually distributed to the primary government in June
and in December. State statutes (IC 6-1.1-17-16) require the lndiana Department of Local Government Finance to establish property tax rates and levies by February 15. These rates were
based upon the preceding year's March 1 (lien date) assessed valuations adjusted for various tax credits. Taxable property is assessed at 100% of the true tax value (determined in accordance
with rules and regulations adopted by the lndiana Department of Local Government Finance). Taxes may be paid in two equal installments that become delinquent if not paid by May 10 and
November 10, respectively. 4. lnventories and Prepaid Items All inventories are valued at cost using the first inlfirst out (FIFO) method. lnventories of governmental funds are recorded
as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government-wide and fund financial statements. 5. Restricted Assets Certain proceeds of the enterprise fund revenue bonds, as well as certain resources set aside for their repayment,
are classified as restricted assets on the statement of net assets balance sheet because their use is limited by applicable bond covenants. 6. Capital Assets Capital assets, which include
property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities column
in the government-wide financial slatements. Capital assets are reported at actual or estimated historical Cost based on appraisals or deflated current replacement cost. Contributed
or donated assets are reported at estimated fair value at the time received. Capitalization thresholds (the dollar values above which asset acquisitions are added to the capital asset
accounts), depreciation methods and estimated useful lives of capital assets reported in the government-wide statements and proprietary fundsare as follows:
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Capitalization Depreciation Estimated Threshold Method Useful Life Buildings and improvements $ 50,000 Straight-Line 20 to
30 years Equipment 5,000 Straight-Line 5 to 20 Roads -collectors and residential 3,000,000 Straight-Line 40 to 50 Utilities' Infrastructure (small) 75,000 Straight-Line 30 to 99 Utilities'
Infrastructure (large) 100,000 Straight-Line 30 to 99 The City has implemented retroactive reporting of its infrastructure as of December 31, 2006. For depreciated assets, the cost of
normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized
as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets
constructed. 7. Compensated Absences a. Sick Leave -primary government employees earn sick sick leave at the rate of two-thirds of a day for each completed month of service. Sick leave
may accumulate to a maximum of ninety days for policemen, one hundred days for firemen, seventy-five days for teamsters, and sixty-five days for all other employees. Accumulated sick
leave is paid to firemen, to policemen, and lo teamsters, upon termination of employment, at one-half their current pay rate, at a rate of one-half the corporal's rate of pay up to a
maximum of sixty days, and $25 for each accumulated sick leave day, respectively, at the time of retirement. b. Vacation Leave -primary government employees earn vacation leave at rates
from nine days to twenty-eight days per year based upon the number of years of service, employee classification, and hire date. Vacation leave does not accumulate from year to year,
except in instances where special cases are approved. Employees earn vacation leave during the year to be used the following year. Unused vacation leave is paid to employees upon termination
of employment. c. Personal Leave -primary government policemen earn personal leave at the rate of seven days per year. Personal leave does not ~c~umulaftreom year to year. Unused personal
leave may be rolled into sick leave. City employees under the teamster contact can use their sick leave for personal leave. d. Compensatory Leave -policemen and firemen have accumulated
overtime-compensatory leave for a variety of reasons. Unused vacation leave for all City employees, and unused sick leave and compensatory leave of firemen, policemen and teamsters is
accrued when incurred and reported as a liability in the statement of net assets. Amounts due and payable at year end are included in the proprietary fund statements. No liability is
recognized in the governmental fund statements.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) 8. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type Statement of .Net
Assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of
the applicable bond premium or discount. Debt issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental
fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuance are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from
actual debt proceeds received, are reported as debt service expenditures. Net assets restricted for debt s e ~ i c ea nd for capital outlay shown in the business-type activities and
in the enterprise funds are restricted p~~SUatnot s tate statute andlor local ordinance. 9. Fund Equity In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative
management plans that are subject to change. II. Stewardship, Compliance and Accountability A. Budgetary Information Annual budgets are adopted on the cash basis which is not consistent
with accounting principles generally accepted in the United States of America. All annual appropriations lapse at fiscal year end. Annual budgets are adopted for the following governmental
funds: General Major governmental funds: Special revenue fund -park and recreation Capital projects fund -county option income tax (COIT) Nonmajor governmental funds: Special revenue
funds -motor vehicle highway, recreation nonreverting, community development, local road and street, human rights federal Debt service funds -redevelopment bond-studebaker, college football
hall of fame debt service
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Capital projects funds -emergency medical services, professional sports development, park nonreverting capital, cumulative
capital development, cumulative capital improvement, economic development income tax, major moves On or before August 31, the City Controller submits to the Common Council a proposed
operating budget for the year commencing the following January 1. Prior to adoption, the budget is advertised and public hearings are conducted by the Common Council to obtain taxpayer
comments. In September of each year, the Common Council through the passage of an ordinance approves the budget for the next year. Copies of the budget ordinance and the advertisement
for funds for which property taxes are levied or highway use taxes are received are sent to the lndiana Department of Local Government Finance. The budget becomes legally enacted after
the City Controller receives approval of the lndiana Department of Local Government Finance. The primaty government's management cannot transfer budgeted appropriations between object
classifications of a budget without approval of the Common Council. The Department of Local Government Finance must approve any revisions to the appropriations for any fund or any department
of the General Fund. The legal level of budgetary control is by object and department within the fund for the General Fund and by object within the fund for all other budgeted funds.
Expenditures did not exceed appropriations for any funds or any departments within the General Fund or within the Park and Recreation Fund, or within any other major or nonmajor governmental
fund which required legally, approved budgets. B. Deficit Fund Equity At December 31, 2008, the following funds reported deficits in fund equity, which are violations of State statute:
Deficit Goernmental funds: Football Hall of Fame Capital $ 863,944 TIF -Northeast Development 134,194 TIF -Douglas Road 132,758 Enterprise funds (net assets): Blackthorn Golf Course
1,581,773 Fund equity deficits arose primarily from expenditures or expenses exceeding revenues due to the underestimate of current requirements. It is anticipated that these deficits
will be repaid from future revenues. Ill. Detailed Notes on All Funds A. Deposits and Investments 1. Deposits Custodial credit risk is the risk that in the event of a bank failure,lhe
government's deposits may not be returned to it. lndiana Code 5-13-8-1 allows a politicaisubdivision of the State of Indiana to deposit public funds in a financial institution Only if
the financial institution is a
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) depository eligible to receive state funds; and has a principal office or branch that qualifies to receive public funds of
the political subdivision. At December 31, 2008, the bank balances held at Wells Fargo Bank NA, The Bank of New York Trust Company, NA, US Bank National Association, and at JPMorgan
Chase Bank, N.A. in the amounts of $2,882,210, $269,851, $29,006,958, and $83,177, respectively, were collateralized with securities held by the pledging financial institution's trust
department or agent but not in the depositor-City's name. The remaining bank balances were insured by the Federal Deposit lnsurance Corporation or the Public Deposit lnsurance Fund,
which covers all public funds held in approved depositories. The City has not formally adopted a deposit policy for custodial credit risk. 2. lnvestments Authorization for investment
activity is stated in lndiana Code 5-13. As of December 31, 2008, the City had the following investments: Primary Gowmment Inwstment Maturities (in Years) Fair Less More TY pe Value
Than 1 1-2 Than 2 U.S. Treasuries and Securities $ 1,766,965 $ 1,766,965 $ -$ lnvestment Policies lndiana Code 5-13-9 authorizes the City to invest in securities backed by the full faith
and credit of the United States Treasury or fully guaranteed by the United States of America and issued by the United States Treasury, a federal agency, a federal instrumentality, or
a federal government sponsored enterprise. lndiana Code also authorizes the unit to invest in securities fully guaranteed and issued by a federal agency, a federal instrumentality or
a federal government sponsored enterprise. These investments are required by statute to have a stated final maturity of not more than two years. lndiana Code also provides for investment
in money market mutual funds that are in the form of securities of, or interest in, an open-end, no-load, managemen!-type investment company or investment trust registered under the
provision of the federal Investment Company Act of 1940, as amended. lnvestments in money market mutual funds may not exceed fifty percent (50%) of the funds held by the City and available
for investment. The portfolio of an investment company or investment trust used must be limited to direct obligations of the United States of America, obligations issued by a federal
agency, a federal instrumentality, or a federal government sponsored enterprise; or repurchase agreements fully collateralized by direct obligations of the United States of America or
obligations issued by a federal agency, a federal instrumentality, or a federal government sponsored enterprise. The form of securities of, or interest in, an investment company or investment
trust must be rated as AAA, or its equivalent by Standard and Poor's Corporation or its successor or Aaa, or its equivalent, by Moody's Investors Service, Inc., or its successor. The
form of securities in an investment company or investment trust should have a stated final maturity ofone day.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Additionally, the City may enter into repurchase agreements with depositories designated by the State Board of Finance as
depositories for state deposits involving the unit's purchase and guaranteed resale of any interest-bearing obligations issued or fully insured or guaranteed by the United States of
America, a United States of America government agency, an instrumentality of the United States of America, or a federal government sponsored enterprise. The repurchase agreement is considered
to have a stated final maturity of one day. This agreement must be fully collateralized by interest-bearing obligations as determined by their current market value. Investment Custodial
Credit Risk The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the
value of investment or collateral securities that are in the possession of an outside party. The The City does not have a formal investment policy for custodial credit risk for investments.
At December 31, 2008, the City held investments in U.S. treasuries and securities in the amount of $1,766,965, These investments were held by the counterparty's trust department or agent
but not in the City's name. Interest Rate Risk lnterest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City must follow
state statue and limit the stated final maturities of the investments to no more than two years. The City does not have a formal investment policy for interest rate risk. Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. U.S. Treasury securities are guaranteed by the full faith and credit of
the U.S. government and are recognized as the safest investment available. The City does not have a formal investment policy for credit risk. Concentration of Credit Risk Concentration
of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The City does not have a policy in regards to concentration of credit
risk. United States of America government and United States of America governmental agency securities are exempt from this policy requirement. Foreiqn Currencv Risk The City does not
have a formal policy in regards to foreign currency risk. The City does not have any foreign currency. 13. Receivables The following receivable accounts have timing and credit characteristics
different from typical accounts receivable. As of December 31, 2008, City funds recognized the following loan receivable balances. The schedule shows the total receivable and the portion
that is not due within one year. These loans were for economic development projects:
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Fund Recei~ble Noncurrent Major gowrnmental funds: County Option Income Tax $ 200,000 $ 166,667 Nonmajor governmental funds:
Economic Dewlopment State Grants 2,604,559 2,192,140 Community Dewlopment 1,299.886 1,167,239 lndust~iaRl euolMng 3,754,709 2,712,896 Totals C. Capital Assets Capital asset activity
for the year ended December 31, 2008, was as follows: Priman, Gowmrnent Gowrnrnental actiuties: Capital assets, not being depreciated. Land Const~ctionin progress Total capital assets,
not being depreciated Capital assets, being depreciated: Buildings Irnpmwrnents other than buildings Machinery and equipment Roads being depreciated Totals Less accumulated depreciation
for: Buildings Irnpmwments other than buildings Machinery and equipment Roads being depreciated Totals Total capital assets, being depreciated, net Total governmental actiuties capital
assets, net Beginning Ending Balance increases Decreases Balance
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Primary Gowmment Business-type actiutes: Capital assets, not being deprecialed: Land Construction in pmgress Total capital
assets, not being depreciated Capital assets, being deprecialed: Buildings Impm~mentso lher than buildings Machinery and equipment Totals Less accumulated depreciation for; Buildings
Impmwments olher than buildings Machinery and equipment Totals Total capital assets, being depreciated, net Total business-type actiuties capital assets, nel Beginning Ending Balance
Increases &creases Balance Depreciation expense was charged to functionslprograms of the primary government as follows: Goemmental actiuities: General govamment Public safety Highways
and streets, mctuoing oepreciation of general inhastructule asaels Culture an0 recreation Economic dewiopment Internal Senice runds* Total depreciation expense -goemmental actiuties
Business-type actiuties: Water Wastewter Cidc center Building penits Parking garage Solid waste Goif course Total depreciation expense -business-type actiuties *Capital assets held by
the primary government's internal service funds are charged to the various functions based on their usage of the assets.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) D. Construction Commitments Construction work in progress is composed of the following: Project Gowmmental actiuties: Eddy
Street HES Portage Awnue Improwments Walnut Intersection Miami Road Widening Leeper Park Court ResurfacingIRepaif Miami St. Conidor Total -Governmental actiuties Business-type actiuties:
Water Utility: Olive Well 3A Replacement South Pressure Zone Analysis Wellhead Protection Plan Radio Telemetry Project Wastewater Utility: Biosolids Improwments OR Lagoon #4 WWTP Rehabilitation
Primary Aeration and Channel Modification AngelaILeeper Park River Crossing #5 Twyckenham Dr. Storm Sewer Studebaker T ~ n Skto rm Sewel Embedded Sensor Network Phase I IrelandlMlam~S
torm Sewer Mods Eaav Street Commons -Phase Ill N. Lndix Park Sewer Separation W. Washington Storm Drainage Impr. Edison Park Sewer Separation-Phase I1 N. Falls Church Ct. Stormwater
Impr. Other Projects Century Center Security and Fire Alarm Systems Skylight Project Chiller Project Totals -Business-type acti\nties E. lnterfund Balances and Activity 1. lnterfund
Receivables and Payables Total Project Authorized Expended to December 31, 2008 Required Future Committed Funding The composition of interfund balances as of December 31, 2008, is as
follows:
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) rnekable Governmnlal Funds Enterprba Funds hternal Payabls Ganeral nFNrpofl mrr hbnmpr Waler Wastewater Service Totals Govwnmntal
funds:
General Park and recrealm mrr Mnmpr Enterprise funds: water Wastewater Centllry Center Mnnspr hlernal service lnterfund balances resulted from the time lag between the dates that (1)
lnterfund loans are repaid, (2) lnterfund goods and services are provided or reimbursable expenditures occur, (3) transactions are recorded in the accounting system and (4) payments
between funds are made. 2. Advances Between Funds The advances between funds record noncurrent portions of long-term loans from one fund to another. Advances at December 31,2008, were
as follows: Advance to Nonrnaior Nonmajor Advance from Governmental Enterprise Totals General 5 1,750,000 $ -$ 1., 750..0 00 TIF -Airport -3,379,500 3,379,500 Nonmajor gowrnmental 783,483
-783,483 Totals 3. lnterfund Transfers lnterfund transfers at December 31,2008, were as as follows:
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Transfer To Nonmajor Nonmajor Transfer Fmm General TIF -Airporl COlT Gowmmental Enterprise Totals General 6 -$ -$ -$ 887.424
$ -5 887.424 Park and recreation 423.21 7 423,217 TIF -Airport 383.921 1.500 385,421 corr 2,382,057 -2..3 82..0 57 Nonmajorgo~mmental 316.701 1.727.954 130.093 4.286.788 -6,461,536 Nonmajor
enterprise 36,470 36.470 Totals $316.701 $ 1,764,424 8 130.093 $ 8,363,407 $ 1,500 $ 10.576.125 The primary government typically uses transfers to fund ongoing Operating subsidies, F.
Leases 1. Operating Leases The primary government has entered into various operating leases having initial or remaining noncancelable terms exceeding one year for golf cart global positioning
systems, vehicles, copiers, and office space. Rental expenditures for these leases Were $289,369. The following is a schedule by years of future minimum rental payments as Of December
31, 2008: Total $ 1,137,690 2. Capital Leases The primary government has entered into various capital leases for various types of equipment, and two parking garages. The parking garage
capital leases are being repaid from governmental funds. Future minimum lease payments and present values of the net minimum lease payments under these capital leases as of December
31, 2008, are as follows:
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Gomrnmentai Business-Type Activities Actiuties Total minimum lease payments 9,296,052 654.838 Less amount representing interest
Present wlue of net minimum lease payments $ 7,388,443 $ 628,427 Assets acquired through capital leases still in effect are as follows: Governmental Business-Type Activities Activities
Buildings $ 5,546,512 $ 1,960,044 Machinery and equipment -775,482 Totals 5,546,512 2,735,526 Accumulated depreciation 940,569 795,337 1. Mortgage Bonds Mortgage Bonds outstanding at
year end are as follows: Inlerest Original Outstanding Pu-e Rales Issue 12-31-08 2001 Public Works Sedoe Cenler 4.63% 105.3% $ 8,112,250 $ 6.266.165 2003 New Fire SlslionlPolioe Renaations
2% lo 5% 21.335.000 77.875.000 2W5 Park Fitness Center Renomlions '3.61% 920.000 393.299 Business-Tv~eA oliGlies 2001 Public Works Ser*(oe Center 4.63% to 5.3% $ 1,737,750 8 878.835
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Mortgage bonds at year end include the following amounts of unamortized bond discount (premium): Unamortized Balance at Discount
Adjusted Pulpose December 31 (Premium) Balance 2001 Public Works Service Center $ 6,266,165 $ 46,805 $ 6..2 19..3 60 2003 New Fire StationlPolice Reno~tiOn~ 17,875,000 (307,125) 18,182,125
2005 Park Fitness Center Renovations 393,299 393,299 Total Governmental Actiuties Business-Type Activities 2001 Public Works Service Center $ 878.835 $ 10,819 $ 868,016 Mortgage debt
service requirements to maturity are as follows: Year Ended Governmental Activities Business-Type Actiuties December 31 Principal Interest Principal Interest Totals $ 24,534,464 $ 9,391,525
$ 878,835 $ 328,317 2. Revenue Bonds The primary government issues bonds to be paid by income derived from the acquired or constructed assets. Revenue bonds outstanding at year end are
as follows:
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Purpose Governmental Activities Tax Incremental Financing Revenue Bonds: 2002 TJX Special Taxing District' 2003 Airport TIF
2003 SB Downtown Central Development TlF ' 2005 Southside TlF' 2006 Erskine Commons ' Redevelopment Authority Revenue Bonds: 1996 Central Development Area Refinancing ' 1998 Morris Performing
Arts Center 2000 Hall of Fame Refinancing 2001 Century Center Refinancing 2008 Eddy Street Common Improvements 2008 Century Center lmprovements CEDiT Revenue Bonds: 2006 CEDlT Refinancing
Bonds Total Governmental Activities Business-Type Aclivtties: 1997 Water Works improvement 2002 Water Works improvement 2006 Water Works improvement 2004 Sewage Works Improvement 2006
Sewage Works Improvement 2007A sewage Works improvement 20078 Sewage Works lmprovement 1998 Blackthorn Golf Course Refinancing Total Business-Type Activities Interest Original Outstanding
Rates Issue 12-31-08 +-Debt not related to capital asset investment Balance at Purpose December 31 Governmental Activities Tax Incremental Financing Revenue Bonds: 2002 TJX Special Taxing
District $ 5,010,000 2003 Airport TIF 12,130,000 2003 SB Downtown Central Development TIF 19,305,000 2005 Southside TIF 5,340,000 2006 Erskine Commons 2,440,000 Redevelopment Authority
Revenue Bonds: 1996 Cenbal Development Area Refinancing 1,700,000 1998 Morris Performing Arts Center 7,845,000 2000 Hall of Fame Refinancing 10,240,000 2001 Century Center Refinancing
4,470,000 2008 Eddy Street Common Improvements 36,000,000 2008 Centurv Center improvements 4,655,000 Unamortized Unamortized Discount Loss (Gain) on Adjusted (Premium) Refunding Balance
CEDIT ~ e v e n uBi o nds: 2006 CEDlT Refinancing Bonds -Total Governmental Activities
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Purpose Business-Tvpe Actin'ties 1997 Water Works Improvement 2002 Water Works lmorowment 2006 Water Wms Improvement 2004
Sewage Works improvement 2006 Sewage Works improvement 2 0 0 7 ~ works i&wowment 20078 Sewage Works lmpmwment 1996 Blackthorn Golf Course Refinancing Total Business-Type ActiGtias Unarnoltized
Unamarlized Balance at Discount Loss (Gain) on Adjusted December 31 (Premium) Rehlnding Balance Revenue bonds debt service requirements to maturity are as follows: Year Ended Gwemmental
ActiGties Business-Type ActiGties December 31 Principal Interest Principal Interest Totals 3. Notes and Loans Payable The primary government has entered into various noteslloans. Annual
debt sewice requirements to maturity for the notes/loans are as follows: Year Ended Gow?mmental Actidties Business-Type Actiwties December 31 Principal Interest Principal Interest Totals
C I N OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) 4. Changes in Long-Term Liabilities Long-term liability activity for the year ended December 31, 2008, was as follows: Due
Beginning Ending Within Primary Gowrnrnent Balance Additions Reductions Balance One Year Governmental actiuties: Bonds payable: Rewnue $ 78,570,000 $40,655.000 $ 3,985,000 $ 115,240,000
$ 4,335.000 Mortgage 25,957,839 -1,423,375 24,534,464 1.473.317 Total bonds payable 104,527,839 40.655.000 5,408.375 139,774,464 5.808.317 Notes and lmns payable 7,900,658 4,000,000
2,356,868 9,543,790 2,148,809 Capital leases 7,695.487 967,808 1,274,852 7,388.443 1,171.574 Compensated absences 4,455.929 3,405,349 3,310,792 4,550,486 3,405,349 Net other poslemploymenl
benefits obligalion 1,025,741 1.025.741 Nel pension obligation 63,184,257 -1,156,191 62,028,066 Total governmental actiuties long-teml liabililies -$ 188,789,911 -$ 49,028,157 -$ 13,507,078
$ 224,310.990 $ 12,534,049 Due Beginning Ending Within Primary Goemment Balance Additions Reductions Balance One Year Business-type actiuties: Remnue bonds payable: Water Utility $ 18,000.000
$ -$ 2,775.000 $ 15,225,000 $ 2,345,000 Wastewater Utility 51.825.000 -2,350,000 49,475,000 1,825,000 Blackthorn Golf Course 3,320,000 -485.000 2,835,000 520,000 Total revenue bonds
payable 73,145.MH) -5,610.000 67,535.000 4,690,000 Mortgage bonds payable 926,805 47.970 878,835 49,815 Capital leases payable 1,127,394 22,386 521,353 628.427 376.283 Notes and loans
payable 18,380,491 75,672 1.424.514 17,031,649 1,513,371 Total business-type acliuties long-term liabilities $ 93.579.690 5 98.058 5 7,603,837 $ 86,073.911 $ 6,629,469 Compensated absences
for governmental activities typically have been liquidated from the general fund and special revenue funds. All of the December 31,2008, business-type activities' compensated absences
are due within one year. H. Segment Information The primary government issued revenue bonds to finance Blackthorn Golf Course improvements. Investors in the revenue bonds rely solely
solely on the revenue generated by the individual activities for repayment. Summary financial information for the Blackthorn Golf Course is presented below.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Condensed Statement of Net Assets Assets: Current assets Deferred charges Restricted assets Capital assets Total assets Liabilities:
Current liabilities $ 18,736 Current liabilities payable from restricted assets 564,739 Noncurrent liabilities 5,587,030 Total liabilities Net assets: Invested in capital assets, net
of related debt $ 5,823,986 Restricted 1,306,766 Unrestricted (8,712,525) Total net assets Condensed Statement of Revenues, Expenses, and Changes in Net Assets Operating revenues Depreciation
expense Other operating expenses Operating income Nonoperating revenues (expenses): Investment earnings Interest expense Amortization Transfers Change in net assets (332,488) Beginning
net assets (1,249,285) Ending net assets $ (1,581,773)
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Condensed Statement of Cash Flows Net cash provided (used) by: Operating actiuties 5 17,586 Noncapital financing actiuties
616,530 Capital and related financing actiuties (681,938) Inwsting actiuties 40,722 Net decrease (7,100) Beginning cash and cash equimlents 1,455,158 Ending cash and cash equimlents
$ 1,448,058 I. Restricted Assets The balances of restricted asset accounts in the enterprise funds are as follows: Cash, cash equimlents, and inwstments Repair funds 5 530,183 Customer
deposits 1,330,520 Rewnue bond conwnant accounts 6,474,460 Capital outlay accounts 24,618,250 Inwstments -capital outlay accounts 682,000 Repair fund receimble 157,011 Interest receivable
102,276 Total restricted assets J. Restatements and Reclassifications For the year ended December 31, 2008, certain changes have been made to the financial statements to more appropriately
reflect financial activity of the primary government. The following schedule presents a summary of restated beginning balances. Prior period adjustments include income tax receivabledrevenues
in which the indiana Department of Revenue had not previously provided data. Balance Balance as Reported Prior as Restated December 31, Period January 1, Fund Type 2007 Adjustments 2008
Governmental activities: Net assets
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) K. Loss on SalelLeaseback of Leighton Parking Garage During 2000, the City completed construction of the Leighton Parking
Garage and capitalized the cost of the garage, $11,439,712, in the Parking Garage Fund, an enterprise fund. On December 1, 2000, the City sold the garage to the South Bend Transportation
Company (TRANSPO) for $3,000,000 as part of a salelleaseback agreement. The proceeds were receipted into the County Option Income Tax Fund. This fund is also making the future lease
payments to TRANSPO. The present value of the lease, $1,960,044, was the new basis for the parking garage. As part of this salelleaseback, the Parking Garage Fund recognized a deferred
loss of $8,439,712, which is being amortized over the fifteen year life of the lease. L. Property Held For Resale The City's Redevelopment Commission has purchased properties in blighted
areas for redevelopment and subsequent resale. At December 31, 2008, the market value of these properties was not known. These properties are recognized as assets in the funds that purchased
the propelty. IV. Other Information A. Risk Management The primary government is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; job related illnesses or injuries to employees; medical benefits to employees, retirees, and dependents; and natural disasters. The risks of torts; theft of, damage to,
and destruction of assets; errors and omissions; and natural disasters are covered by commercial insurance from independent third parties. Settled claims from these risks have not exceeded
commercial insurance coverage for the past three years. There were no significant reductions in insurance by major category of risk. Liability Insurance The primary government has chosen
to establish a risk financing fund for risks associated with job related illnesses or injuries to employees, automobile liability, and comprehensive liability. The risk financing fund
fund is accounted for in the Liability lnsurance Premium Reserve Fund, an internal service fund, where assets are set aside for claim settlements. An excess policy through commercial
insurance covers individual claims in excess of $300,000 per year for job related illnesses or iniuries to em~loveesa nd $50,000 per year for damage to and destruction of assets. Settled
claims resulting from-this risk did not exceed commercial insurance coverage in the past three vears. A ~remiumis charged to each fund based on a study~ .o f paid claims and based on
the nimber of employees and percent of the total budget Provisions are also made for unexpected and unusual claims. Claim expenditures and liabilities of the fund are reported when it
is probable that a loss has occurred and the amount of the loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported (iBNRs).
Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of pay outs and other economic and social factors.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Changes in the balance of claim liabilities during the past two years are as follows: Unpaid claims, beginning of fiscal
year $ 407,596 $ 579,795 Incurred claims and changes in estimates 1,875,859 1,880,285 Claim payments 1,703,660 1,904,435 Unpaid claims, end of fiscal year GrouD Health Insurance The
primary government has chosen to establish a risk financing fund for risks associated with medical benefits of employees and their covered dependents. The risk financing fund is accounted
for in the SeCFunded Employee Benefits Fund, an internal service fund, where assets are set aside for benefit costs. An excess policy through commercial insurance covers individual claims
in excess of $300,000 per year. Settled claims resulting from this risk did not exceed commercial insurance coverage in the past three years. A premium is charged to each fund based
on the number of employees and estimated costs exceeding the employees' contributions. Provisions are also made for unexpected and unusual claims. Claim expenditures and liabilities
of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. These losses include an estimate of claims that have been
incurred but not reported (IBNRs). Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of pay outs and
other economic and social factors. Changes in the balance of claim liabilities during the past two years are as follows: 2007 2008 Unpaid claims, beginning of fiscal year $ 1,466,796
$ 723,168 Incurred claims and changes in estimates 10,722,906 9,963,360 Claim payments 11,466,534 9,893,376 Unpaid claims, end of fiscal year The December 31, 2008, unpaid claims include
$643,152 current liabilities During 2005, the City's former employee medical benefits' administrator, Healthcare Resources Group (HRG), failed to pay $1,111,899 in health care claims
for City employees. employees. The City had paid HRG for the claims. HRG was purchased by another business that has filed bankruptcy. The City has been notified by the bankruptcy court
and the City's legal department has estimated that the City may receive approximately 25% of the total claims and the City has recognized a receivable for this percent of the total claims.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) 8. Subsequent Events During 2005, the City approved a loan from the U.S. Department of Housing and Urban Development for
$9,180,000 to finance economic development activities. During 2006, the City received $3,222,000 and during 2008, the City received $4,000,000. During 2005, the City approved a series
of revenue bonds, total not to exceed $56,380,000,to finance improvements to the wastewater utility. Prior to 2008, the City sold $40,745,000 of these bonds. On January 12, 2009, the
City entered into an interlocal agreement with the City of Mishawaka for financing Douglas Road improvements. As part of this agreement, the City will borrow $1,150,000 from the City
of Mishawaka, to be repaid from tax incremental financing funds. The City also anticipates providing an additional $1.7 million from other City funds towards this project. On April 1,
2009, the City issued $7,210,000 Redevelopment Authority refunding bonds to advance refund the outstanding outstanding Redevelopment Authority Morris Performing Arts Center bonds. Pursuant
to new state legislation, beginning in 2009, the State Pension Relief Fund shall pay to each unit of local government with Pre-1977 Local Police and Fire Fighter Pension obligations,
the total amount of pension, disability, and survivor benefit payments. The Pre-1977 funds include the 1925 Police Pension Fund, the 1937 Firefighters' Fund, and the 1953 Police Pension
Fund. For property taxes first due and payable after December 31. 2008. the Department of Local Government Finance shall reduce the maximum permissible property tax levy of any civil
taxing unit and special service district by the amount of the payment to be made in 2009 by the State for the obligations. C. Contingent Liabilities Colleae Football Hall of Fame O~erations
The City's General Fund has advanced a total of $1,750,000to the Football Hall of Fame Capital Fund in various amounts during the years from 1996 to 1999. The City has always recognized
that these advances would be repaid from excess operating revenues of the Hall of Fame. No payment schedule has been established. Beginning with 1996, the first full year of operations,
through 2000, the Hall of Fame financial statements show net losses ranging from $521,345 to $1,481,657. During 2001, the City turned over the operations of the Hall of Fame to the National
Football Foundation and College Football Hall of Fame, Inc. (NFF). The second interim agreement authorizing the NFF to operate the Hall of Fame shows that NFF has contributed $1,900,000
to cover operating deficits of the Hall of Fame during the period prior to December 31,2000. Under the second interim agreement, the City is obligated to provide the NFF $600,000 in
2006 and in 2007, $550,000 in 2008 and in 2009, and $500,000 in 2010 in operating subsidies. The City is also obligated to pay capital expenditures and to maintain a $1,000,000 capital
reserve fund. The second interim agreement is in effect until December 31, 2010. At that time, the NFF can can terminate their participation in the operations and the City shall reimburse
the NFF the full amount of the NFF contributions towards operations during the period prior to December 31, 2000. The
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) reimbursement will be made in five annual installments beginning December 31, 2010. If the NFF elects to continue their participation,
then the City will resume operating the Hall of Fame as it had done from 1996 to 2001. The $1,900,000 contingent liability to the NFF is not recognized on the financial statements. Sale
of Studebaker Stam~inoP lant During 2006, the City approved the sale of real estate commonly called the Studebaker Stamping Plant to the South Bend Transportation Company (TRANSPO).
TRANSPO paid the City $1,000,000 during 2005 and agreed to pay the $3,000,000 balance to the City after demolition and infrastructure improvements are completed. A new economic development
project has caused the TRANSPO agreement to be amended and the City may need to repay the initial $1,000,000. The City intends to repay TRANSPO from the tax incremental financing -airport
fund (TIF-Airport), a major fund. Communitv Center Proiect Costs During 2007, the the City approved Ordinance 9796-07, authorizing $1,000,000 as local share to finance Kroc Center, a
community center. Financing will be provided from existing funds. Funds will be expended when other donations are received for the local share of the project costs. The City has estimated
the project will begin in 2010. D. Conduit Debt Obligation From time to time, the primary government has issued industrial revenue bonds to provide financial assistance to private-sector
entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable
solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the
bond issuance. Neither the primary government, the State, nor any political subdivision thereof is obligated in any manner for the repayment of the bonds. Accordingly, the bonds bonds
are not reported as liabilities in the accompanying financial Statements. As of December 31, 2008, there were several series of industrial revenue bonds outstanding. The aggregate principal
amount payable is not available to the City. During 2008, the City approved no new series of industrial revenue bonds. E. Special Item During 2008, the City received $4,462,214 as partial
settlement for City water well field contamination. The settlement is part of a lawsuit in which the City and more than 150 other local governments across the United States settled with
major oil companies and distributors that used methyl tertiary butyl ether, commonly known as MTBE. There is a possibility that the City and other local governments could receive additional
settlement funds in the future.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) F. Other Postemployment Benefits (OPEB) Plan Description The City of South Bend Retiree Healthcare Plan is a single-employer
defined benefit healthcare plan administered by the City of South Bend, Department of Administration and Finance, through the City's self insurance fund. The plan provides for medical
insurance benefits to eligible retirees and their spouses. Indiana Code 5-10-8 gives the unit the authority to establish and amend the plan. A separate financial report is not issued
for the plan. Fundina Policy The contribution requirements of plan members for the City of South Bend Retiree Healthcare Plan are established and can be amended by the City's Common
Council. The required contribution is based on projected pay-as-you-go financing requirements. For the year ended December 31, 2007, the date of the most recently completed actuarial
study, the City contributed $756,174 to the plan for current premiums. Police and Fire members receiving receiving benefits contributed approximately 28.1% of the total premiums, through
their required contribution of $133 per month for retiree-only coverage and $395 for retiree and spouse coverage. General employee members receiving benefits contributed approximately
100% of the total premiums, through their required contribution of $474 per month for retiree-only coverage and $1,253 for retiree and spouse coverage. Annual OPEB Cost and Net OPEB
Obliaation The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined
in accordance with the parameters of GAS6 Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize
any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year,
the amount actually contributed to the plan, and changes in the City's net OPEB obligation to the plan: Annual Required Contribution $ 1,858,648 Interest on net OPEB obligation 76,733
Contributions made (756,174) Increase in net OPEB obligation 1,025,741 Net OPEB obligation -beginning of year Net OPEB obligation -end of year The City's annual OPEB cost, the percentage
of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2007 and the two preceding years were as follows: Fiscal Annual Percentage of Net Year OPEB Annual OPEB
OPEB Ended Cost Cost Contributed Obligation ** -Information not available
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Funded Status and Fundina Proaress As of December 31, 2007, the most recent actuarial valuation date, the plan was 0% funded.
The actuarial accrued liability for benefits was $16,874,856, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $16,874,856. Actuarial
valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions
about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, presents presents multiyear trend information about whether the actuarial value of plan assets is increasing
or decreasing over time relative to the actuarial accrued liabilities for benefits. This schedule is not presented since it is the first valuation study. Actuarial Methods and Assum~tion
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations. In the December 31, 2007, actuarial valuation, the entry age actuarial cost method was used. The UAAL is being amortized as a level percentage of projected
payroll on an open basis. The remaining amortization period at December 31, 2007, was 30 years. G. Pension Plans 1. Aaent Multiple-Emplover and Sinqle-Emolover Defined Benefit Pension
Plans a. Public Em~loveesR' etirement Fund Plan Descri~tion The primary government contributes to the Indiana Public Employees' Retirement Fund (PERF), a defined benefit pension plan.
PERF is an agent multiple-employer public employee retirement system, which provides retirement benefits to plan members and beneficiaries. All full-time employees are eligible to participate
in the defined benefit plan. State statutes (IC 5-10.2 and 5-10.3) govern. through the PERF Board, most requirements of the system and give the primary government authority to contribute
to the plan. The PERF retirement benefit consists of the pension provided by employer contributions plus an annuity provided by the member's annuity savings account. The annuity savings
account consists of member's contributions, set by state statute at three percent of wmpensation, plus the interest credited to the member's account. The employer may elect to make the
contributions on behalf of the member.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued)
PERF administers the plan and issues a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole and for
its participants. The report may be obtained by contacting: Public Employees' Retirement Fund Harrison Building, Room 800 143 West Market Street Indianapolis, IN 46204 Ph. (317) 233-4162
Fundinq Policv and Annual Pension Cost The contribution requirements of plan members for PERF are established by the Board of Trustees of PERF. The primary government's annual pension
cost and related information, as provided by the actuary, is presented in this note. Information to segregate the assetslliabilities and the actuarial study figures between the primary
government and the Utilities is not available. Therefore, the Net Pension Asset is considered an obligation of the primary government and is presented in the governmental activities
of the financial statements and is not presented as an asset of the proprietary funds. b. 1925 Police Officers' Pension Plan Plan Descri~tion The primary government contributes to the
1925 Police Officers' Pension Plan which is a single-employer defined benefit pension plan. The plan is administered by the local pension board as authorized by state statute (IC 36-8-6
and IC 36-8-85), The plan provides retirement, disability, and death benefits to plan members and beneficiaries. The plan was established by the plan administrator, as provided by state
statute. The plan administrator does not issue a publicly available financial report that includes financial statements and required supplementary information of the plan. Funding Policv
and Annual Pension Cost The contribution requirements of plan members for the 1925 Police Officers' Pension Plan are established by state statute. The primary government's annual pension
cost and related information as provided by the actuary is presented in this note. The Net Pension Obligation (NPO) is considered an obligation of the City and is reflected in the Statement
of Net Assets. As provided by state statute, all administrative costs are paid from the fund. Contributions and benefits of this pension plan are recognized when due and payable in accordance
with the terms of the plan. On-behalf revenues from the State of Indiana as shown in the financial statements approximate an equal amount paid out for benefits.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) c. 1937 Firefighters' Pension Plan Plan Descriotion The primary government contributes to the 1937 Firefighters' Pension
Plan which is a single-employer defined benefit pension plan. The plan is administered by the local pension board as authorized by state statute (IC 36-8-7 and IC 36-8-8.5). The plan
provides retirement, disability, and death benefits to plan members and beneficiaries. The plan was established by the plan administrator, as provided by state statute. The plan administrator
does not issue a publicly available financial report that includes financial statements and required supplementary information of the plan. Fundinq Policv and Annual Pension Cost The
contribution requirements of plan members for the 1937 Firefighters' Pension Plan are established by state statute. The primary government's annual pension cost and related information,
as provided by the actuary, is presented in this note. The Net Pension Obligation (NPO) is considered an obligation of the City and is reflected in the Statement of Net Assets. As provided
by state statute, all administrative costs are paid from the fund. Contributions and benefits of this pension plan are recognized when due and payable in accordance with the terms of
the plan. On-behalf revenues from the State of Indiana as shown in the financial statements approximate an equal amount paid out for benefits. Actuarial Information for the Above Plans
1925 Police 1937 Officers' Firefighters' PERF Pension Pension Annual required contribution $ 1,417,475 $ 6,421.500 $ 4,436,200 Interest on net pension obligation 46,916 2,091.000 1,585,300
Adjustment to annual required contribution (53,465) (2,638,200) (2,000,100) Annual pension cost Contributions made increase (decrease) in net pension obligation (20,029) 812,201 (682,174)
Net pension obligation, beginning of year 647.120 34,850,029 26,420,919 Net pension obligation, end of year
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Contribution rates: City Plan Members Actuarial valuation date Actuarial cost method Amortization method Amortization period
Amortization period (from date) Asset valuation method PERF 5.75 % 3% 07-01 -08 Entry age Level percentage of projected payroll, closed 30 years 07-1 -97 75% of expected actuarial value
plus 25% of market value Actuarial Assum~tions PERF Investment rate of return 7.25% Projected future salary increases: Total 5% Attributed to inflation 4% Attributed to meritlseniority
1 % Cost-of-living adjustments 2% 1925 Police 1937 Officers' Firefighters' Pension Pension 7,404% 3,560% 6% 6% 01-01-08 01-01-08 Entry age Entry age Level percentage Level percentage
of projected of projected payroll, ciosed payroll, closed 30 years 30 years 01-01-07 01-01-07 4 year 4 year smoothed market smoothed market 1925 Police 1937 Officers' Firefighter' Pension
Pension * -2.75% for converted members; 4% for non-converted members Three Year Trend Informati
on CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) 1925 Police Officers' Pension Plan Annual Percentage Net Pension Cost of APC-Pension Year Ending (APC) Contributed Obligation
1937 Firefighters' Pension Plan Annual Percentage Net Pension Cost of APC-Pension Year Ending (APC) Contributed Obligation Membership in the 1925 Police Officers' Pension Plan and the
1937 Firefighters' Pension Plan at January 1,2008, was comprised of the foBowing: 1925 Police 1937 Officers' Firefi-o hters' --Pension Pension Retires and beneficiaries currently receiving
benefits 224 226 Terminated employees entitled to but not yet receiving benefits Current active employees Excess of Excess d (Unfunded) AA.L.a.s a-Actuarial Actuarial Actual Assets mr
Percentage of Valuation Value of Accrued (Unfunded) Funded Cowred Cowred Date Assets Liability (AAL) AAL -Ratio Paymll Payroll PERF 07-01-08 $ 36,054,620 $ 36.499.821 $ (445.201) 99%
$ 24,337,925 (2%) 1925 Police Officers' Pension Plan 01-01-08 3.522.332 85.203.300 (83,680,768) 4.13% 86.733 (94.175%) 1937 Firefighters' Pension Plan 01-01-08 2,968,691 58,489,000 (55,520,309)
5.08% 124.600 (44,559%) The Required Schedule of Funding Progress immediately following the notes to the financial statements presents multi-year trend information abaut whether the
actuarial wiue of plan assets is increasing or decreasing over time relatlw to the actuarial accrued liability br benefits.
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) d. Financial Statements for Defined Benefit Plans Statements of Fiduciary Net Assets: 1925 Police 1937 Officers' Firefighters'
Pension Pension Assets Cash and cash equibalents Receibables: Interest Taxes Total assets Liabilities Accounts payable Net Assets Held in trust for pension benefit obligations Statements
of Changes in Fiduciary Net Assets: 1925 Police 1937 Officers' Firefighters' Pension Pension Additions Contributions: Employer On behalf Plan members Other Total contributions Investment
income: lnterest Total additions
CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Pension Pension Deductions Benefits and refunds paid to plan members and beneficiaries 6,073,691 5,421,254 Administrative
expenses 13,197 9,121 Total deductions 6,086,888 5,430,375 Changes in net assets (972,627) (683,526) Net assets -beginning 3,522,332 2,968,691 Net assets -ending Administrative expenses
are paid from property taxes and state distributions. Both are a portion of employer contributions. 2. Cost-Sharina Multiple-Employer Defined Benefit Pension Plan 1977 Police Officers'
and Firefiahters' Pension and Disabilitv Fund Plan Description The primary government contributes to the 1977 Police Officers' and Firefighters' Pension and Disability Fund, a cost-sharing
multiple-employer defined benefit pension plan administered by the Indiana Public Employees' Retirement Plan (PERF) for all police officers and firefighters hired after April 30, 1977.
State statute (IC 36-8-8 and IC 36-8-8.5) regulates the operations of the system, including benefits, vesting and requirements for contributions by employers and by employees. Covered
employees may retire at age fifty-five with twenty years of service. An employee with twenty years of service may leave service, but will not receive benefits until reaching age fifty-five.
The plan also provides for death and disability benefits. PERF issues a publicly available financial report that includes financial statements and required supplementary information
for the plan as a whole and for its participants. That report may be obtained by contacting: Public Employees' Retirement Fund Harrison Building, Room 800 143 West Market Street Indianapolis,
IN 46204 Ph. (317) 233-4162
C I N OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) Fundina Policv and Annual Pension Costs, Plan members are required to contribute 6% of the first-class police officers'
and firefighters' salary and the primary government is to contribute at an actuarially determined rate. The current rate, which has not changed since the inception of the plan, is 21%
of the first-class police officers' and firefighters' salary. The contribution requirements of plan members and the primary government are established by the Board of Trustees of PERF.
The primary government's contributions to the plan for the years ending December 31, 2008, 2007, and 2006 were $4,310,369, $3,928,912, and $3,716,072, respectively, equal to the required
contributions for each year.
This Page Intentionally Left Blank
CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF FUNDING PROGRESS Public Employees' Retirement Fund Excess (Unfunded) Actuarial Excess of AAL as a Actuarial Accrued
Assets Over Percentage Actuarial Value of Liability (Unfunded) Funded Covered of Covered Valuation Assets AAL Ratio Payroll Payroll Date (a) (b) (a-b) .-@!EL (c) ((a-b)/c) 1925 Police
Officers' Pension Plan Excess (Unfunded) Actuarial Excess of AAL as a Actuarial Accrued Assets Over Percentage Actuarial Value of Liability (Unfunded) Funded Covered of Covered Valuation
Assets AAL Ratio Payroll Payroll Date (a) (b) (a-b) (alb) (c) ((a-b)lc) 01-01-03 $ 2,497,147 $77,865,600 $ (75,368,453) 3.21% $ 1,125,183 (6,698%) 01-01-04 1,969,813 60,550,800 (78,580,987)
2.45% 1,050,150 (7,455%) 01-01-05 914,732 81,009,600 (80,094,868) 1.13% 1,048,933 (7,636%) 01-01-06 83,559 81,958,600 (81,875,041) 0.10% 531,733 (15,398%) 01-01-07 1,188,997 87,910,800
(86,721,803) 1.35% 350,667 (24,731%) 01-01-08 3,522,332 85,203,100 (81,600,768) 4.13% 86,733 ((94,175%) 1937 Firefighters' Pension Plan Excess (Unfunded) Actuarial Excess of AAL as a
Actuarial Accrued Assets Over Percentage Actuarial Value of Liability (Unfunded) Funded Covered of Covered Valuation Assets PAL) AAL Ratio Payroll Payroll Date (a) (b) (a-b) (sib) (c)
((a-b)lc)
CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES 1925 Police Officers' Pension Plan Annual Required
Percentage Year Contribution of ARC Ending (ARC) Contributed 1937 Firefighters' Pension Plan Annual Required Percentage Year Contribution of ARC Ending (ARC) Contributed
. . L'cenrea and Permits lnlagilMmmenlal Chsrgsn lor rervican Fines and lorlsfeits Ofha, CITY OF SOUTH BEND REWIRED SUPPLEMENTARY INFORWTiW BUDGETARY COMPARISON SCHEDULES GENEM FUND
ANOWOR SPECIAL REVENUE FUNDS For Ths Year End& Oeamber 31,2003 Pemnal rmlcar Suwbr othersmk3s and cham% Ofheruses cq clan PanonallaMrss suC.pllsr Olhe,Krvica and chaw'9'9 Ofheruses cornman
Cavncu me, me, MrnhislralholFinahce PeMnal senm SUPP~!!~ Olhsl.MhBs lmdcha(geaM chames capM oaflay otheruses Olherlervkes and chawes Olhsr u6er Building Maintenance Perrenal rewicer
BUD* SUPDI~B. Olhsr3eruicea and c h a w omervsss Gmecal Fund variaw Mual With Fhal BvdgSlSry Bvdgsl Budgeted AmounE Bs* Poilive w n s 1 Finel AmDYne (Neaallve,
HEOLlREO SUPPLEMSNTARI NTORVATIO*. BUOGETARICOUPAR5ONSCHEWLES GENERAL FJNOANOMUOREPECUl RCVEhUF FUN05 FOC ma vast ~ n d e aoc cembar 3, m08 General Fund Vadana, Adual Win Final ~eiJhbommdc
a6a ~ n r o m m t P e n a l sew* S u ~ l i a omer 3-3 and chsmas OthSC usas Bwgelar, Budge, Budgstsd AlMunh Bsna Positive OmLnal Final -h u n t s (Negalivs, Code Hesdng Mi-Other servicsa
and chaw6 56,976 84.168 50.5011 13.866 Cap"aloullay one, v a s Communtsaf~c enter PaMn8lSBMces suw1ies Mher sarvlcas and s h a m one, uses Fire Departmsnl PSMnal wcrvka3 S"P#=~ mhar
sswksa and *me Cs~iwwl ll*., m s r wss werghh and Meawrer mherrervicaand "heme, --PersMa168mm SU~Iias Oiharserdar and dsrgea capita1 outlay 0,heiusea
Total Highways and Shes1 ~ultursa nd RecrsaGon: A" Aswriatb" me, services end chsmss Studebaker Museum Oms, sswlcer and c h a w Palair Royle Ballim Parsonalsenb Personal wrvisa Suppler
Olnerrema and charges Other Wes Comunitysnd EmnomhDsVebPPl: EcononurOew!4,"me"l Otha services and chargar Main Slreel ParXing Oarage Cadlslwllay Leighlon Plaza PaXing Garage cmilalwnav
Wayne Shoe# Pa*bg Garage Cacilal outlay Unrefe Building omerliervkes and c"8rgea Total Commvnifyand EmnomicDavelo~n, Total rrpndilunr Nel change in fund balilncer Fund balencs.. beginning
CITY OF SOUTH BEND Revenues: Taxes: Property Intergovernmental Charges for services Fines and fwleits Other REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES GENERAL
FUND AND MAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31.2008 Park and Recreation Fund Variance Actual With Final Budgetaty Budget Budgeted Amounts Basis Positive Original
Final Amounts (Nwative) Total revenues Expenditures: Current: Culture and recreation: Personal services Supplies Other services and charges Other uses Capital oullay Total expenditures
Net change in fund balances Fund balances -beginning Fund balances -ending
CITY OF SOUTH BEND REQUIRED SUPPLEMENTARY INFORMATION BUDGETIGAAP RECONClLlATiON GENERAL FUND AND MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31,2008 The major differences
between budgelary (Non-GAAP) basis and GAAP basis are: a. Revenues are recorded when received in cash (budgetary) as opposed to susceplibie to accrual (GAAP). b. Expenditures are recorded
when paid in cash (budgelary) as opposed to when the liability is incurred (GAAP). c. Encumbrances are recorded as expendilures for budgetary purposes when purchase orders are issued.
Adjustments necessary lo convert the results of operations at the end of lhe year on a budgetary basis lo a GAAP basis Park and General Recreation Nel change in fund balances (budgelary
basis) $ (34.209,636) $ (6.319.631) Adjustments: To adjusl revenues for accruals To adjust expenditures for accruals TO adjust expenditures for enwmbrances Net change in fund balances
(GAAP basis)
NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Motor Vehicle Highway -To account for street construction and the operations of the street maintenance department. Financing is provided
by state motor vehicle highway distributions. Recreation Nonreverting -To account for fees and related expenses from park department activities. StudebakerIOliver Revitalization Grants
-To account for expenditures related to the Studebaker and Oliver revitalization projects. Financing is provided by federal and state grants and loans from other organizations. Economic
Development State Grants -To account for expenditures related lo Projects promoting economic development. Financing is provided by state grants and loan payments. Expenditures include
grants and related expenses. Community Development -To account for revenues received from the U.S. Department of Housing and Urban Development related to community improvement. Police
Federal Grant -To account for expenditures relafing to federal and state grants. Poiice State Seizure -To account for law enforcement expenditures financed by the authorized state or
local agencies' sale of confiscated property. Juvenile Positive Assistance -To account for monies received from penalties paid for curfew violations. Expenditures include Drug Abuse
Resistance Education and Juvenile Aid Bureau. Law Enforcement Continuing Education -To account for police fees collected to finance police officers' continuing education, training, and
supplies and equipment. Loss Recovery . To account for compensatory or ~XemphYd amage payments from third parties arising from loss or damage to City tangible or intangible property.
Build Indiana -To account for state grants used to finance various projects. General Grant -To account for grants and donations used solely for the purposes specified in the grant application
or by the donor. Local Road and Street -To account for operation and maintenance of local and arterial road and street systems. Financing is provided by state gasoline tax distributions.
Human Rights -Federal -To account for expenditures to prevent discrimination and to promote human rights. Financing is provided by federal grants.
NONMAJOR GOVERNMENTAL FUNDS (Continued) East Race Waterway -To account for donations for the promotion and development of the East Race Waterway. Morris and Palais Marketing -To account
for marketing and promotion expenditures financed by sponsorship solicitations and donations. Economic Development Commission -To account for administrative expenditures of the Economic
Development Commission. Financing is provided by fees from businesses appiying for Economic Development Revenue Bonds. Hazmat -To account for monies generated by the South Bend Fire
Department's response to hazardous materials incidents. Funds are used to purchase, repair, or replace haz-mat equipment, or for training and supplies. Indiana River Rescue -To account
for expenditures related to river rescue training. Financing is provided by registration fees. COPS Block Grant II -To account for federal grants which provide financing for police activities.
Regional Police Academy -To account for revenues (tuition) and expenditures (seminars, travel, lectures, and career days) related to the advancement of present and future police officers.
COPS MORE Grant -To account for a COPS MORE grant which provides financing for police activities. Federal Drug Enforcement Gift. Urban Development Action Grant -Leaf Collection and Removal
-Police K-9 Unit -Rainy Day -To account for expenditures for drug enforcement. Financing is provided by distributions from the authorized federal agencies' confiscated property sale.
To account for donations, gifts, or bequeaths for purposes designated by the donor. To account for economic deveiopment expenditures which are financed by federal grants and loan repayments.
To account for the expenditures of a program to remove leaves from the City each fall. Financing is provided by a monthly service fee charged to all City residents. To account for donations
for deveiopment and maintenance of the K-9 unit. To account for unused and unencumbered funds that are transferred from a fund that has a tax levy. Revenues in this fund also include
special distributions of county option incomelax (COIT) and county economic development income tax (CEDIT).
NONMAJOR GOVERNMENTAL FUNDS (Continued) Industrial Revolving -Debt Service Funds Redevelopment Bond Studebaker -College Football Hall of Fame Debt Service Redevelopment Bond -Central
Development -Redevelopment Bond -Airport Taxable -Redevelopment Bond -Century Center -Redevelopment Bond -Palais Royale EDIT Bond -Plaza Garage -Tax Exempt To account for the revenue
and expenditures of providing special loans to qualifying local firms. Financing was originally provided by a $5,000,000 Economic Adjustment Assistance Grant from the U.S. Department
of Commerce. EDlT Bond -Plaza Garage -Taxable To accumulate monies for payment of Redevelopment District general obligation bonds, which are serial bonds due in annual installments through
2006. Financing is to be provided by an annual property tax levy. This fund was closed out in 2008. To accumulate monies for the payment of Redevelopment Authority bonds issued to refinance
bonds issued for construction of the College Football Hall of Fame. Financing is to be Provided by an annual property tax levy. To accumulate monies as a reserve forthe Payment of Redevelopment
Authority bonds for the central development project. To accumulate monies as a reserve for the Payment of Redevelopment Authority bonds for the &port taxable project. To accumulate monies
as a reserve for the payment of Redevelopment Authority bonds for the century center project. This fund was closed out in 2008. To accumulate monies as a reserve for the payment of Redevelopment
Authority bonds for the Palais Royale project. To accumulate monies to meet the required debt service reserve for the Series A, Economic Development Income Tax Revenue (EDIT) Bonds of
1997. This fund was closed out in 2008. To accumulate monies to meet the required debt service reserve for the Series €3, Taxable Economic Development Income Tax (EDIT) Revenue Bonds
of 1997. This fund was closed out in 2008.
NONMAJOR GOVERNMENTAL FUNDS (Continued) Redevelopment Authority Debt Service -To accumulate monies for the payment of Redevelopment Authority bonds issued to refinance bonds issued for
construction of a parking garage facility, bonds issued for central development area land acquisition and construction of public improvements, bonds issued to purchase the Palais Royale,
bonds issued to refinance bonds issued for construction of Century Center improvements, and bonds issued for renovations to the Morris Performing Art Center. Erskine Commons TIF Debt
Service -To account for Erskine Commons project debt retirement of the south side tax incremental financing (TIF) district. Financing is provided by transfers from the TIF south side
development fund. South Bend Building Corporation Debt Service -TIF Erskine Village Debt Service -To account for debt retirement of the Building Corporation's Mortgage Bonds. Funding
is provided by transfers from other City funds. To account for Erskine Wage project debt retirement of the south side tax incremental financing (TIF) district. Financing is provided
by transfers from the TIF south side development fund. Capital Proiects Funds Emergency Medical Services -To account for purchases of necessary equipment for the Fire Department and
Emergency Medical Services Department. Financing is provided by ambulance fees. Central Development Area Bond Proceeds -To account for expenses financed by a 2003 revenue bond issue.
Professional Sports Development -Coveleski Stadium Capital-Zoo Endowment -To account for HotellMotel Tax and Professional Sports Development Tax revenues dedicated towards the College
Football Hall of Fame. Based on an agreement with the National Football Foundation (NFF), the City pays the NFF to assist with the operation and capital costs. To account for expenditures
related to the maintenance and improvement of the baseball stadium. Financing is provided by a rental paid by the semi-pro baseball team. To account for construction projects at the
City's zoo. Financing is provided by gifls and donations.
NONMAJOR GOVERNMENTAL FUNDS (Continued) Park Nonreverting Capital -To account for specific revenues used to finance capital improvements at the City parks. Cumulative Capital Development
-To account for expenditures relating to the purchase or lease of capital improvements in the City. Financing is provided by a specific property tax levy. Cumulative Capital Improvement
-To account for state cigarette tax distributions used for improvement projects. Economic Development Income Tax -To account for the City's share of the County Economic Development Tax.
Expenditures include construction, acquisition and related costs for economic development projects. Cumulative Sewer -To account for financial resources for the construction or repairing
of storm sewers or sewage disposal plants and sanitary sewers. Tax lncrernental Financing (TIF) -Sample/Ewing -To account for expenditures for public improvements in the SamplelEwing
tax incremental district. Financing is provided by property tax proceeds in excess of those attributable to the assessed value of the property in the district before redevelopment (tax
increment). This fund was closed in 2008 and this district became parl of the TIF-Airport district. Morris Performing Art Center Capital -To accumulate monies for major repairs and capital
improvements to the Morris Civic Auditorium. Financing is provided by a surcharge on ticket sales for events held at the auditorium. Tax lncrernental Financing (TIF) -Downtown -To account
for expenditures for public improvements in the central business tax incremental district. Also. transfers are made to debt sewice funds to meet debt obligations as [hey mature. Financing
is provided by property tax proceeds in excess of those attributable to the assessed valuation of the property in the district before redevelopment. Tax lncrernental Financing ( I F
) -Leighton Plaza -To account for expenditures for public improvement projects in the Leighton Plaza tax incremental district. Financing is provided by property tax proceeds in excess
of those attributable to the assessed value of the property in the district before redevelopment.
NONMAJOR GOVERNMENTAL FUNDS (Continued) Tax lncremental Financing (TIF) -West Washington -Redevelopment General -Community Revitalization Enhancement District -Tax lncremental Financing
(TIF) No. 1 -Southside Development -Tax lncremental Financing (TIF) No. 2 -Southside Development -Tax Incremental Financing (TIF) No. 3 -Southside Development -To account for expenditures
for public improvement projects in the West Washington Economic Development Area. Financing is provided by property tax proceeds in excess of those attributable to the assessed value
of the property in the district before redevelopment. To account for eligible redevelopment activities in the Studebaker Corridor financed by proceeds from land sales or leases. To account
for public improvements in the StudebakerIOliver Community Revitalization Enhancement District. Financing is provided by income tax and gross retail tax increments in the district. To
account for expenditures for improvements in the southside development tax incremental district no. 1. Financing is provided by property tax proceeds in excess of those attributable
to the assessed valuation of the property in the district before redevelopment. Redevelopment District Allocation Area Capital -To account for expenditures for iInp~OvC?mentisn the southside
development tax incremental district no. 2. Financing is provided by property tax proceeds in excess of those attributable to the assessed valuation of the property in the district before
redevelopment. Tax Incremental Financing (TIF) -Central Medical Service Area -To account for expenditures for imprOVf?ments in the southside development tax incremental district no.
3. Financing is provided by property tax proceeds in excess of those attributable to the assessed valuation of the property in the district before redevelopment. To account for local
public imprOVement~ in the Airport Economic Development District. Financing is provided by a 2003 bond issue. To account for expenditures for public improvements in the central business
tax tax incremental district, medical service area. Financing is provided by property tax proceeds in excess of those attributable to the assessed valuation of the property in the district
before redevelopment.
NONMAJOR GOVERNMENTAL FUNDS (Continued) Football Hall of Fame Capital -Major Moves. Tax lncremental Financing (TIF) -~ortheast Development -Tax Incremental Financing (TIF) -Douglas Road
-Palais Royale Historic Preservation -Equipment Leasing -Morris Entertainment -Erskine Commons TIF Projecl-South Bend Building Corporation Construction. Century Center Construction -Eddy
Street Commons Construction -To account for capital expenditures for the College Football Hall of Fame. Financing was provided by a transfer from the City's Professional Sports Development
Fund. This fund also accounts for the advance from the General Fund which may be repaid from future operating surpluses. To account for state distributions used for road construction
and other uses authorized by Indiana statute. To account for expenditures
for improvements in the northeast development tax incremental district. Financing is provided by property tax proceeds in excess of those attributable to the assessed valuation of the
property in the district before redevelopment. To account for expenditures for improvements in the Douglas Road development tax incremental district. Financing is provided by property
tax proceeds in excess of those attributable to the assessed valuation of the property in the district before redevelopment. To account for expenditures financed by a h o percent fee
charged for all Palais Royale services. To account for proceeds from capital lease-purchase agreements used to finance major equipment needs of the City. To account for donations received
by Morris Entertainment, Inc., a nonprofit corporation formed to solicit donations to finance improvements to the City's Morris Performing Art Center. To account for construction and
related costs of the Erskine Commons project public improvements. Financing was provided by a 2006 bond issue. -To account for construction and renovation financed by mortgage bond issues.
This fund was closed out in 2008. To account for construction and related Costs of the Century Center renovations. Financing was provided by a 2008 Redevelopment Authority bond issue.
To account for construction and related cosls of the Eddy Street Commons project public improvements. Financing was provided by a 2008 Redevelopment Authority bond issue.
CITY OF SOUlilBEhD COMBlhlhG RAANCE SIICET hOhMAJOR GOVERNMENTAL FUNDS December 31.2006 Cash and cash eguivslenh Cash With f i a t agent Inveslm"ls Receivables (net of allowance3 lor
unco(lecllb1er): Intern1 r a x n Acmunh lnfemovernmental Loans Inisriund rececvable: lnlerlvnd 10.9" Interfund sew&-pmvided and used Ahlances lo other lucdr Praperty held for sale Liabilities
and lund balancsr Liabilities: Acmunis .o a.va bie Wrued payroll payable conwads payable Inletfund payable: lnlecfmd loan inlafund sewicas pmmsd and used ~ e f e mrde venue P e r i a
m m d w l h payable Mheicvrrenl payables Advan-homalher funds Fund balances: Resewed roc Encumbrancer Nancunenl loans receivable P w m l ~he ld (or -le Debt service Advancer lo olher
funds Unreserved. rspaned m: Special rwenus 1"-Capilal pmieclo funds Total lund balancer Taial liabilitiesand fund balances SpBCial Revenue SNdebake~ Malor Oliver Ecormmc Vehicle Recreation
Revilaliralion Developmenl Cmmunity Police Highway Nan~everling Granh Slate Granh Dsvelopmeni Federal Graol
Cash and cash squimlents Cash with fiscal agent lnveslmnll Receivables (rmlorallovances lor uncollem'bles): LtemSt Taxel Accounb tnlsmowrnmental Loens Inferfund receivable: Intarfund
losn Inleifund JewAarr pmvlded and used Advances lo othsr funds Pmpem held lor sale Tdal BsIFIs LiabilttieS and lund bala *r Liabilities: Avaunts peyable Amed p a w l payable Contiads
payable Interfund payable: lnts&nd loan Inte&ndsewices provided and used Deferred revenue Pdo-nce depolits payable other WrrenlpayaWBr Advances from alhsr lunds Fund balances: Rerervsd
for: Encumbram. Noncucrel loans rmeirable Properly held forrerats D s b l w t e Advsoma to other funds Total lund balances Tdal liabilities and hlnd balances CITY OF SOUTH BEND COMBINING
BAJANCE SHEET NONMORGOVERNMENTALFUNDS DMrnber 31.2006 (Conlinued) Paliar Positive CoMinuing Loss Stale Seizure Auirlam Edmtim Recovew Bulld Indians Gensrel Giant
ClWOF SO.TARLhD COMBlhlhG HALAhCE SHEET hONKAJOR GOVERNYCNTA. I UNUS December 31.2008 Special Revenue Morris and Economic Lacs1 Road Human Rights Earl Race Palail Dsvelopmenl and Street
~ederal Walemy Marketing Commiasian Hazmal Cash and cash sgvivalenb c a ~wh+ lh lrjcal awn! I n t e r n rece~vable: Interfund loan Interfund sewices pmvlded and uoed Advances lo olher
fund, ~ r o w r thye ld for sale Liabilities and fund balancer Liabilities: Amounts payable ~ m epadyro ll payabls Codacts payable bldund oavable: ~ntefinb ,ban lnlerfund services provided
and used hllerred revenue Perfonance depooilr payable d ~w r rr e l p ayable* Advances hamaher funds Fund balancer: ReSFrved for: Emumbranras Noncurrentlaanr rece<vabIe Property held
far ressle Debt servirr Advances lo omer lunds Unreserved, reported in: Special revenue funds Capilal pmjecls funds Tola1 1""d balance* Tola1 liabilities and fund balancer
CITY OF SOUlrl BEND COMRINING BAlAhCE SWEET NONMAJORGOVERNMEhTAL FJhOS December 31.2006 (Continued) Cash and cash equivaisn~j Csrh with fiscal agenl InveStmenD Receivables (nel of allowances
for umollenibler): tnlereOl Taxes A m n u hler(pvsmmenla1 Loans Inbrfufund receiusbla: Interfund loan Inferfund lawices pmvided and used Advancer lo olhm hrlunds Pmpsrty held for sale
Tala1 Liabilities and hrnd balames Liabililiss: A w n s payable Acauad pwmII payable Cmlrana payable Inlerfund payable: lnlerfund iaan inferfund services provided and used Dererred revenue
Pedofoimsnce depmils payable Other currant payablas ~d~~~~~ rmm o ~ l ebrn dr Total liabililies Fund balances: Resewed lor: Eosumbrance. NOIICYRBOloLa ns receivable Pqeriy held lor resale
Deb1 sewice Advances lo olher ivnds Tolal fund balanarj Tolal liabililie~a nd fund balances Special Rennus Regimal Indiana COP5 Block Police COPS MORE Federal Dwg Rive, RBSNB Granl 11
Academy Granl Enrorcemenl GIR
CBI~ and cash squivalenb Cash with fiscal agent Inueslmsnb Receivables (nel ofallowances for uncallectiblss): Inlersrl Tax-~ u n B IntemmrnmnlaI Loans Intarfund receivable: loleitvnd
loan Inlsfundservises piovided and wed Advances lo other funds ~ropenyh eld for sale Liabilitim and fund balances LiabillUso: Acmunb payable ~ m epadyro n payable Camram payable Interfund
payable: 1ntemnd loen Ihlellund senricer provldad and used Defer,& revenue Perfmnce deparits payable Olheraumlp.9yBbleS Advsnces bmOthelfudS Fund balances: Resewed for: Encumbrances
Nonwnel loans rs-ivebls Property held for rsrale Debt service Advances to outer bods unrerswsd. repnsd in: Spec'bl revenue wnds Capilal pmim hndr Tolal fund balama. CITY OF SOUTH BEND
COMBINING BALANCE SHEET NONMAlOR GOVERNMENTAL FUNDS December 31.2008 (Conlinusd) Urban Leaf Developmen1 Colleclton Police Indurl~al Action Grant and Remval K-9 Unil Rainy Day Remlvlrg
Talalr
CITY OF SOUTH BEhD COMBlNlNG BALANCE SdEET hOhMhrORGOVERNMENTAL FllhDS (Continued) Cad and cash eq~1~8Ienk Cash wilh fiscal agenl tnvea1menlJ Loans Rldund receivable: intarfund loan
Interfund sewices pmvidsd and used Advances lo dher fund" ~ieblliueoa nd fuod balance3 UaMriies: A-nIs payable ~wr u s dpa ymll payable COnlrads payable Inleifund payable: Inleifund
laan Interfund sewices provlded and used Defezred ,avenue PelfDmnce dewsib payable Other current payables Advances frm olher fundl Fund balances: R e e ~ e fdor : Encumbranceo N-umeI
loans receivable Pmpeity held for resale DeblseM'ce Advances la othsr funds UNBIBwsd, repiled in: Special revenue funds capie1 pr*cD funds Tolal fund balances To13 liab#l#liaasn d fund
balances DBbl SeNKs Funds Redevetopmen1 Rede~lopment Redevelopmenl Redevelopmenl Redewlopmen1 College Fwlball Bond -Bond -Bond -Bond -Band -Hall of Fame Central Airpori Cenlury Palais
Studebaker Deb1 Sawice Developmenl Taxable CBnler Royale
CITY OF SOUTH BEND COMBINING BALANCE SHEET NONWOR GOVERNMENTAL FUNDS Mnember 31.2008 (Continued) Cash and cash equivalents Cash With fiscal sgenl ln~slmenls Receivables (nel of allowances
for unmttedbiss): 1n1ereSl Taxer Acmvnts l n t e ~ ~ ~ r n m e n l e l Loans Intelfund feMvable: lnlelfund loan Inlelfund sew'ws pmvided and us& Advan-lo #her lunds Pmwriy held Dr rate
Total assb Debt Servlce Funds Erskine Sanh Bsod EDIT Bed -EDIT Bond -Redevetopmenl Commmr Bullding TIF Erakine Plaza Garage Plaza Garage Authority ~ l ~ ~ e bC l O ~ ~ Q T v~ins~ge ~
Tax Exempl raxabie Debt Servica Servica Deb1 ~ervica ~ e b~ie rvlca Liabilities and fund batancas Liablities: h u n k payable S -S -5 -S -S -I A c c d payrat1 psyabts C a mpa yable Intermod
payable: lnterlund loan tnls!iund services pmvided and used Defemd revenue Pelfomnce depmils payable Other wmnt wyables Advancer Comolher funds Total liabilities Fund balances: Resewed
far: Encumbrances Nancurrenl iaano receivable Rope-held lor resale Deb1 rewlce Advances lo other funds Unreserved. repofled in: Special revenue lunds Capital prqeds hmdr Tolet lund balances
Total liabilities and fund balances
Cash and cash equivalenla cad Yilh li-1 sgan1 lnwrtment* Receivables (net of allavancer lor mcollsctibles) I"l~rsS1 Taxes Amunn Inleqwernmenlal Interfund servlces pravlded and UM Advanurr
la ouler funds Pmpem h&l for sale Liabilities and fund bale-Liabilities: A w n l a payable Acrmed payrdl payable Conlrscts payable Intefiufund payable: In1srf"nd moan lnlerfund services
oravided and used Derernxl Pehmnce depolib payable Giher cunenl payables Advance0 tom other runda Total liabilities Fund balanws: Reserved for: Enwmbrances N o w r mlo ans rece,uable
Propem held lor resale Deb1 remce Advances la alher hmd. Unreserved. rimed in: specie1 revenue funds Capilal pwclo lunds Tola1 lund balances Tolal liabililies and lund belances CITY
OF SOUTH BEND COMBINING BALANCE SHEET NONMAlOR GOVERNMENTAL FUNDS Decernbr 31.2006 (Cmlinued) Debt Service Fmdr capilal projects Cenlral Emergency DevelDInnenl Prolessanal Covelerki
Medical Area Bond Spoda Stadium Zw Totals Se~ices Pmceeds Developmen1 CapiY Endomnenl
CITY OF SOUTH BEND COMBINING BALANCE SHEET NONWOR GOVERNMENTAL FUNDS DFCBmbsi31. MOB (Cantinued] Cash and cash equivalanln Cash vim Owl agenl Invsrlrmnts R~ceivabls(rn et or allowancer
lor uncolled~bles): l~lererl Taxes AWO""b lolergavemmentel LMn. Inleifund receivable' Inlaifund loan Intcifund sem-p m d d and used Advances lo other funds Pmpem held far sab Liabilities:
Accounts payable A w e d paym11 payable Conlracb payable Inleifund payable: 1n,e,i""d laan Inkiund sewices provided and used Dsfened revenue Peifa-o~e d~positsp ayable Mhercunsnl payables
Ad"ames lmather lunds Fund balances: Resewed lm Encumbrances Noncunenl loans receivable Property held lor resale Deb1 service Mvancea lo olhsr funds Unreserved, repried in: Special rev-funds
Capiel pmbcto funds Total liablliliesand l uba~lan urs cspllsl P,+IS Ecanmic Pa* Cumvlative Cumulal~vs Dwelopmnl ~anrevemng capital Capi~sl lnmm Cumvlalive Cap~lal ~evelapment Improvement
Tax Sewr
CITY OF SOUTH BEND COMBINING BMANCE SHEET NONMPJOR GOVERNMENTAL FUNDS December 31.2005 (Continued) Msh and cash equlvalenb Cash with fiscal sqenl b ~ e s l m l s Receivables (nelof allowances
for uncollsaibler). Interest hterfund receivabla: Interfund laan Inlsrfund services provided and used ~ d v amelra other funds property held for Mia Tola1 assets )iabi!ltier and fund
bala-LiabilOer! Awovnlr payable A w e d paymll payable Comas payabla Inlerfund ~avable: ~nlefind loan Imefind servbs pmvided and used Deferred IWBWB Pnformdnce napasr5 payable 01ner
ct~rranot ayablar Amnces from olnnr Idnor Fund balances: Resewed for: Encumbrances Nancunsnl loans receivat4e PmpaW held for resale Debt service Advance3 lo dbar funds Uo,aewed. reporled
in: Spacial revenue funds Capilal pmjeds funds Tolal liabililier and fvnd balances Capilal Pmjsas Marnil Performing TIF TIF -Arts Cenlst TIF Leighlan TIF -We31 SampleiEwing Capibl Downlovn
Plaza Washingloo
arrels Cash and cash equivalents Cash with liscat agenl 1nverlmenls Receivables (net of allowances lor uncollediblsol: tntmre41 Tax85 Acmunlr In,ergo"emmantal Loans Inlechrfund rsceivable:
tnlerlund loan Inmrlund services pmvidsd and used Advances lo o m hlnds Property heldfor $ale Liabilities: ACMO~S payable m e d paymil payable Canhads payable Inlermnd payable: 1ntsifund
loen tdefufund services pmvlded and used Deferred revenue Perlomnce d e p ~ i lpsa yable Other curtent payables Advances fromalhw funds Total liabilities Fund balances: Reserved lor:
Encumbrances Nomurrentloans reeivable Property held la resale Debt service Advance8 la other funds unrelcnoo r"mne.5 ,n soem., rnvnnvs lunar Cap la fund, Total 1und ba1a-r Total lisbilities
and fund balance. CITY OF SOUTH BEN0 COMBINING BAUNCE SHEET NONMAJOR GOVERNMENTAL FUNDS Dsmber 31.2008 (CWti"Ued) Ren11.12110n TIF ho : -TtF No 2. 1 IF No 3 -R & V D I D O ~ ~ ! Ennalcemnn!
%nnrl#e som.~ds ~anhsdc ~nnora o,nr n Ce~elopmnt ~avc~opmnt meopmpm~
CITY OF SOUTH HENO COMBlNlhG DIVllhCC StlCCT NOKKNORGWERhMEhTAL FUhDS Cash and cash aquivalenlr Cash wth r~calagent InveYmenis Receivables (net of allwances lor unmlldibles): lnlereal
Tax86 Acmunls Inlemwsmmenlsl l n l e h d r-ivable! 1"Ierf"nd losn lnlelfund Pawices provided and used Mvaocer lo o h r fundr property hsm far sale L i a b t l i i and fund balance2 Liabilities:
Accaums payable Aarved paydl payable Conndr payable I n t e M payable: Interfund loan lnislfund services pravlded and used Delewed revenue Pslfoformanw depasib payable OVleiolrrent payable9
Mvames han other fundr Fund balancer: Resewed for: EncYmbrame. Noncunent loans receivable Pmpny held for resale Deb1 r e ~ c e Advances lo other funds Lnresswed. r s m e o m S~ e cat
reqcn~nfu nds CBPII"I P'4Cd'I.,& Tola1 fund balances Total liabililies and fund balances Cam1 Pmws Redevelopment TlF.CenVal Distticl Medical Foalball Allocalian Sawice Hall dfaw Maw
TIF -Normeas1 Area Capilal Area Capital Wves Developmen1
Cash and cash equivalenls Cash wilh fiscal agenl lnveSlmenls Receivablsa ("el of allowances for uncoll~tibler): RIeresl Tams Amunls lnlemovernmenlal Loans Inledund receivable: Inlszfund
loan Interfund services pmvlded and used Advancer la olher funds ~iapartyhe ld for sale Total aSSels Llabilitiar: A m n h payable Accrued paymll payable Canwacts payable lnlerfund payable:
Intsdufund loan Inlehnd services pmuaed and used wfened revenue Perfamnce deposils payable Oihar cunsnl payable3 Advances Ran olher fund* Total llabllilier Fund balancer: Rerewed fw:
Ewumbrancer NOrmrrenl laanr mivable Property held far resale DeblsBmce Advancer lo oMer funds Unreserved. repotled In: Spmsl revenue hrnds Capilsl proiecls funds Total fund b a l a m
TOW liabilitiesand fund balances CITY OF SOUTH BEND COMBINING BALANCE SHEET NONMlUOR GOVERNMENTAL FUNDS Oscember31. ZW8 (Con5nusdl Palais Roysle Erskine TIF Hislwic Equipment Morris
Cammonr Dwgiar Road FWservalion Lsalirm Enlatlainmenl TlF Propd Continued on ne., page
Cash and cash equ8vaCmr Cash with fiscal age* lnveslmenls Receivables (net of allowances forunmllea~ble~l: lnlerest Taxes Accounts lnlerswemmenial Lorn= Inleriuod receivable: lnleriund
loan Interfund r e w k r pmvided and usad Advancer to other funds Pmpedy hdd far sale Llab#lfiier: Accounts payable Acuusd paymu payable Contracis payable 1"larf""d payable: Inler(und
loan lnlerfund serdml provided and used Defened revenue Per f~mawede poUtr payable Other cunml payabler Advances fmm olher funds Total IlabililaJ Fund balances: Reserved tor: Emumbra-Noncuneol
loans recwble praperty haid tor resale Debt service Advance3 to olher funds UnltlZBmd. reoarlsd in: speual revenue rundo Capilal projeas rums Capisl Projsds So~lhB end T-l Building Cenluw
Eddy streel Nonmjoi Carpoation Cenlsr Commons Gavernmenlal CMstm~tion Conrlmmn Conslmdlon ~otals Funds Tolal lvnd balancep -2,835,457 17.W5.188 69,536,512 127,711.797 Tolal llabilltisr
and fund balances S -1 2.891.584 1 18.805.427 1 76.m0.558 1 137.380.980
ClWOF SOUTH BEND COMBINING STATEMENT OF REVENUES. EXPENDITURES AND OTHER CHANGES IN FUN0 BAWNCES NONMAJOR GOVERNMENTAL FUNDS Fat* YYear Ended December 31.2008 General govrnrnsm PLWE
laroly Highvap am Sbeob EcmDmbdsvslDpmen Cullweand nnaatlon O a b l a e h P""*d Meredsnd 6 s d chaw Bond iuvance msu cafl(ai ovtlay: omera, govern-, Publlclsfely HiQhwayJ and mot* ErnmmlcdsMlopnml
Wlwe andraueafOn other ranciw mmer (Uses]: Tramfsrr in Transfen avf nsmiu~a~se Pre,"i"m (disrn"",) on deb, isis"i~iscs Total o k ma-mess and used Smdal Hem: Wel Mdmnminalion Mlemsnl
Nelchsnge i n h d balancer Fund ba1ans.i -bqimk$
CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES. EXPENOINRESAND OTHER CHANGES IN FUND BAIANCES NONMbJOR GOVERNMENTAL FUNDS ort the year &ded 0 m b n 3 1 . mo8 (Conunucd) Special Revenue
Lax Juvenae ~nf-msnt Pdia P a m CwfiMlW L0.S SbteSdzm +asIslam Edvcslian Rswvrm Bvildlndina h a 1 M n t Rev-% Tax-: pmpern s -s -s -S -s . S Caunhlmvan incane carnhl m m k ds vslomen,
i i W i Pmf~sionsslw ns dwekprnN Comrnvni~rsvi lsl izae~n hsncemenldbm Inlcigwernmentd Chaigel lor &I 137.802 Finan and l o m i 717 121.895 Inleiesl 11.OW 11.788 1.307 h a m s 2.668
wla;.&tY Highway5 and E u n a n i c d c r s l ~ r n ~ chitweand -earn Bond irsvana WrO Cadtat dm: &wm, h w c sa fshl Highway5 and st& Eurnomkd-bpmo", CulNnandraaesU~ Tot81 one. fiandng
leu-and "nd, ---nl spcia, nem: Wsll rdd conlamina8m ,enhe", --4462.214 . Net change h bnd bale-42.027 9 124,623 4.216.54 (11 I.307 Fund babnas-bag?nnhg 38.072 8.253 BD9.797 I 58.705
Fwd balances. endhg S 80.038 S 8 a 2 S 724.420 I -S 80.012
CITYOF SOUTH BEND COM'dlNlNG STATEMENTOF RMNUES. EXPENDINRESAND OTHERCHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Far Iha YeaiEoded December 31.ZW8 Revewes: Taxes: Props* Camfywnminmms
Comfy mmk dsveWmmI h h Pdessbnal rw dsvclwmmt ~ a m u n f i rye vilalimfbn enhenhenhem disw IMergwemmeMel charger mrservices FheaaPd r0lle.m IMerea Oonslimr sate of D r a m Olhsr Total
remnuer EIPdlUTes: Cuilura and m e a h Excess (dek5mcy) ofrwemw iu"da)-* aha rmanw wmr (urea]: Trannlen in Tlsnrkrs o", 0Ebtissmnre Pm-m (dtrmnl) w&bI isisisisis Tow okrnnsncing raum,aPd
"Me* SF ? = )ll am Well neld wlami"#h7 remema,,, Fund balances-beginning maisand Emnondc ~ocamt ad Human mhb ~ a rR! a sc ~ a b b mvslopment and S D ~ Federal Waleway MalXeUrg Cam&shm
Hazmal
CITYOF SWTH BEND COMBINING STATEMENT OF REVENUES. EXPENDINRES AND OTHER CHANGES IN FUND BALANCES NONMAIOR GOVERNMENTAL FUNDS ForlhsYearEnded Dwrnber31.2W8 (Cmthued) Counry ~ m m l c
d a c l o y m Mht h h PaCs.onnl m mrslmme", Commvnw rmd-On nnvlscmrrn d.W" Gmsd pornmen, PuNcsalefy Highways and Nssl E m c m b d a w m n ( Cu1me and ,-,!en Oeb,reruice: Prinmat ~ n
t ~ ~ t racnadt d l a ~ a Boodhruance mslr Catibl &BV General govsrnrn~l PuMc lalev HlghWayS and *& E c o m i d~m lop"em CulWm and rsaeslon me. Gnancingxurres ,"-): Ttanrlen in Ten*raa",
Oebl irruBna Premium idhmunl) on debt iririrairir Nelchaogah (und balancer Fund balenun-Whning SwCbl RevsrmB R*.l Indiana COPSBloc* Polla COPSMORE FsdualDwg -WwRescus -Granlll Academy
Grnl E n l a m , Giff
CITY OF SWTH BEND COMBINING STATEMENTOF REVENUES. EXPENDITURES AND OTHERCWNGES IN FUND B W C E S NONMUORGOVERNMENTALFUNDS For IheYeer Ended December 31.2008 iCrnli""ed) Osvdopnenl Cdsctbn
Palm lnduruisl AcUm Gmt end R m v a l Rainy Day Revdm Tolslb Rsnnun. rexcr Dana-Sale o l p w w Other Csml wuw: General g a ~ r m m ~ l PublicraCty Hlghwaysmd -la Economkdwelam other
rnmcrrm =ran (we$: Tiamfen in TransIan out Debt ir3uMcs Premium (dinanl)rn dcblaaaaa TOM omer nnancing sm-andndndnd spcia, "an: Well Reldmnlamination smanel
CITVOFSWTH BEND COMBINING STATEMENT OF REMNUES. EXPENOlNRESAND OTHER CHANGES IN FUND BALANCES NONMAIDR GDVERNMENTAL FUNDS ~o r r n sv ear~ndedo erember~t.m a (Continuat) Deb1 Ssrvlce
Funds RsdeueWmem Ratevet-nt R&+meof Redevolopmsnl Radsvek0me"l Cdlure Fmlball Bond -8md -BMd -amn . p m w CaunlyopUm hmme county eamrmc developmml ininin PrnleSkVal m* de"slcOmen( Commuo%qrMalhaUm
mhawmentdisbia I"lemvsmmeml Chswgea hr service. Fina and lmdr tn(eresI Omalh, Sale ol paperm o m cap41 muy: Ge".d gWBrnrnMI PuMic salely Highways and $Vats E m m ; o d s v & p ~ C u
l l u r e a n d r e ~ -a (delciency) dmmcr (under) sxpndilures Olhaflnamiw mum ( u s e Tranrlen h 7renrferaov1 Deblisruani Pnmium (discounl) m debt i i i i Fund balanses -baghoingw
CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES. EXPENDITURES AND OTHER CHANGES IN FUND BALANCES NONMAIOR GOVERNMENTAL FUNDS For lhe Year Ended Ds~embn31.2WB (Can6nUed) Revemel: Tars'
" q m /counfyw(i0n income C o m t y e c o n m l c d s v e ~ I l m m e Pmfeshnalspafsdavcbwmnt Cmmuni+yr&lkatign e n h h h h h I d ~ ~ C t InkPgovemmsnfal Charger laPe*MS FinasaM tafeas
EipndUurss: cmmt Gensral governman1 Public safely High-Bnd arssn EmmmIC dcvdopmen, CuhureeM w e a k " Debt seNice: PMWl Ileres!md Wlchaqw Band isSuance mrls 0th-financing Iwses (use,,'
Tramkm b Tmnsfen od Debt irruanu, premium (dhuu",) ondeb, kruanc. TOW om-noanc.w sn",CS% and and SmcDlnem: Well hldmnmhauon MUemm, Nel change in lund balaocea EDIT Bond -m a Garage TarExemp(
Dews+ Fum ESkIns SMhBBnd EDIT Bond. Rs6awlopmnl CommM--Buldng TIF EMns Plam Garage AvIhMfy TlF DsM Coma& Ullage Tmble Dsb!S& Srr,?ca h b l S e 6 D e b l S s 6 Conunuedon "en pqs
CITY OF SOUTH BEND COMBlNlffi STATEMENT OF REVENUES, EXPENDITURES &NO OTHER CWGES IN FUND BALANCES NONMNOR GOVERNMENTAL FUNDS For me year E"*d Daumber31.2008 (Cmlnued) IntemWommenM maws
(DrssM.cel Flnlr and lafens rntaast Omslianr SslsalprapErty Other ExpendUwes: c m t om& govemmsnt PuWK SSMy Wghvsy-and rtrPen Emn~devdapms", CUllvrr and -&" Total omer6narrL-g smus and
d d d Spdalilam: weit Wid &mhaam ~ I I " , CaPirnl pmkcts Cemal Emmew DeMopmsnl R o l c u b ~ I Cove14 Medid A m B d Spag Sbdium Zoa s~vkas P r a d r Devwmed capital
CITYOF SOUTH BEND COMBINING STATEMENTOF REVENUES. EXPENDINRES AND OTMR CHANGES IN FUND BAMNCES NONMAIOR GOVERNMENTAL FUMS For lhe Year Ended December 31.2056 (Cmlinved) cspiel ~rnj-s
Emomk Pa* Cum"1alb cumu1arwe Dwdopme* NanrsvsrUng Caplel Capital ,nome Curnu(* Capilal Oavdapmenl mmpmwment lax s w r R e m w Taxer. Prn~em 6 -1 978.158 1 . S -$ Cou"tyC,,ticm mcom Counlynomm'rde~lop
mIinmme -3.997.997 Pmfersianal rmn, dev&pP* Communilyr~vltaliralione nhanunen! db*! lmelgwammemal -68,192 350.535 Chsrga lor wm.ices . t50.m Finesand lone* intereat 8.135 34.858 33.335
Dons+knr sate Of pmoe* OVia -2.917 -(90,773 -2W.W --T&l revenues 11.052 1.273.081 550.535 4.181.332 -Elm"#-. c m n t Gmmlgommenl P l b i l c l a ~ Hlghwsyj and steels Emoorn'r &"el-",
Cullvre and rasraalbn DeM re-: Priosipal -754,891 7Sa,CC€ Intanstand ns-l chaqs . 79,849 Zd6.622 Band irsuans coab Cspifal.uaay. G-1 gammmenl . 595.933 1.255.882 Pmlc safely "@ways and
rm,r Emnankdsvahpnenl Cullwe andreoeafian 261,324 . . . -Other linaochl sances (uaer) uaer) Transhn in 216,WO 'rran*rro"I -(565.6111 (l.721.395) Deb, kSuance ~ r e m b m l d i ~ c a
u 4 o n d ~ ~ ~ ~ ~ ~ ~ -----Tow mar wnandng m u am~ mm ~ --216.m -(555,611) (1,724,395) Special uem: wen Wmnhmation .enIII", -----Neldlanga lnhndbalances (16.272) (157,392) (15,076)
77.833 Fund hi--h g h n@-186.169 -1,733,171 -306.316 2,8M,SE6 W.224
C l N OF SOUTH BEND COMBINING STATEMENTOF REVENUES. EXF'ENMNRESAM) OWERCHNdGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS ForfhsVaarEndedOawmber31. 2W8 RNenus,: Tares: Pmper* countyopwm
hmn Camly arommlc develapnern hrnm Pmfeuionsl worn d&apmenl", cNnmvnnyra;narzsUan rnhsocemsn,*i,,i~ lmagwemmenlal C h a w (orsanicBs Rn-and la#ela infers., Dansthnr Sale a( p w * OUnr
DBb,..MEQ: mcip, lnlererlsnd l K I l charms Baodl,.uancsmrls Cadla1 anlay Generalgaranms"l Publlclakfy Highwaysad #reds E c o w m k M o m n l Cuilvre and rscrealion Tab! otha nnanChg
WU-sod d Spedai %em: wsll new -la-ation sernmrnmt Nelchayain lund balancer Fund w -s . bqclnrng Fund Manes -mdhg capitst pmjecl. Morrh Pezioformiy TIF TIF -MsCenler TIF Loighlm nF-Wesl
SsmrIeEwim Caplfal Dwmllnm P l w Washington
CITY OF SOUTH BEN0 COMBINING STATEMENT OF REVENUES. EXPENDINRES AND OTHER CHANGES IN FUND BAMNCES NONMIUOR GOVERNMENTAL FUNDS Far Lhs Year Ended ~ecember3 1,2008 (CooUMed) Erpndil"re8:
wmn,: GDmal gommmen, PMlic%afety wbhp a d sbrslr EmnankdeVslwms", cutma and rsrsae.x Dsbf s-: Pi"*al ln1orertand *Dlca( charger Capll Pmj.3.35 cmwm ReWlira%n TIF No. 1 -TIF No. 2 -TIF
No. 3 -Redevsk4menf Enhancsmem Soulhrldo S h i d e Swmride ~anarar ~ i s m n ~ ~ v e ~ o pwmvllq~u oent ~ e v e ~ ~ m ~ r n Tronslen ovl Osbliuuance -(778.591) Pnmium (*ismu",).," deb,
is"-Totalomsr ins* wxmas8"d d d d -, Special "em: Well sstd mnmnamn semsmen, Nelchaw il hlndblanmr (15.429) (518.880) 108,458 1,420.1OB 911.887 Fund bhm-beg'mning 92.958 2,578,219 511.172
6.031 178.591 Fund balamcs -ending 1 77.529 1 2057.359 1 032.026 f1.426.137 1 1,718,858
CITYOF SOUTH BEND COMBINING STATEMENTOF REVENUES. EXPENDINRESANO OTHERCHANGES IN FUND BALANCES NONMIUOR GOVERNMENTAL FUNDS Far the Yaar Ended Deambal31.2W8 (ConlinuedJ Revmues: T-: pmm*
counv*-CouW emmrn;c dsvekmmcnljnm Pmfessbns, sg* devebm", C a ~ ~ r a * n z a mtno" hhncnnncnn",disln'* ,n,emwsmrnm8a, chnger larew%es Finss and fatenn TO*l revenuer Hiehw.y.& .teen
ES0lwmicde"Slapmnl w e and reueatnn mb, sewhr' Pn'"*l hl emand r~ca~t X W S BondMiYTB W I I S Total ewndUwel All-1m' Sawke HalldFams Major TIF -Northearl Area Ca@lal Area Cadla1 Moves
Daueimme~ amsrnnsndns rourcas (use.). Tande3 in Z~.WO Tamfen out Deb! issuance Prsmium ( d i r ~ n l )md e n b b b b Totalolher handng 3aurrer and usas 2W.W Netchangs in lundb#mces (101.2Q5)
1578.722 211.333 456.827 (147,852) Fwd balances-e i n g 1.OM.788 1.586.055 i1.075.171) 13,618,231 13.468 Fund balanmr -d i n g 1 863.543 S 3.162.777 1 (863.944) S U.135.058 1 (136.191)
Rsm-. Taxes: Pmwm co""tyop6on imme Countyemmrnkdwel~pme"h, h Pmfessbnal rplrtr dwelopm(-~ l ~ m u n i l y r ~ ~mr ahahc h~ m d ~ s ~ ~ ble~~rnmontal chsrgn lW a e m Fnn and fmens intsraf
oowtm Sale Ofpmppq oms. TOW1 rsrsnvel Exmru(lurescumnl' Gmrslgovmmnl Pualkaarety HigDwayl and *eels E u n a k d s ~ n l cultma snd nasatlan Deb! senre: Prinsipal 1"Iae*and nw%1 char-Bondissuance
cos* publksa?ety ~ h w a y asn d ,beel c u t ~ man d r e u e ' k TOM omer 6nadng swms and used SP&l item. Well Reldmnsmhlsscn rcNcNmcN, Fund batanas-hgm$ng Pale;= Royals Errkine TIF
H E*pmal. Mods common. Dwlsr Raad Prerervalii Leadm E~dainmenl TIF Pmjnf
COMBlNlffiSTATEMENTDFREVE~S. EXPENDITURES ANOOTHERCHANOES INFUND BALANCES NONMAJOR GOVERNMENTAL FUNDS ForIhsYesr EndedDecember3t. 2W8 tmsrsouemicas~ C ~ @lSo r r ~ 3 Fines an( IMeRs
,*ems! Donacam Sale olpmOeny other E.m"diirer: cum,?, Gm& govsmn Pubb *ly Hghwapsm Sbsel. Emamkdsvelmwnl cun"n am mearb" Dsbtsarvics. Pmdpal Intenslam 6-1 charges Band iuuance mfa Caplhll
ouflay Gem1 government Pvblicralefy Highways and *eets Economhdsvclalwna", Unlvm and r-alia Mher lhlancing sauner (uses): Trsnrle.6 in Trenarern ou, Denissuance Premium IdPcauno m deb!
irwrence caw Projnts s m Bend TOM Bunding CmtW EMySVeel Nmmajar Commfhn center commns GwmmeNal CDnr~ctbn conrtnrtan con~mclion rotais F U ~ .
C I N OF SOUTH BEND SCHEDULES OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -MA40R GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS -COUNTY OPTION INCOME TAX For
The Year Ended December 31.2008 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes: County option income Other
Total revenues Expenditures: Other services and charges Capital outlay Total expenditures Other financing sources: Transfers in Net change in fund balances (916,589) (4,193.241) (2695,957)
1.497.284 Fund balances -beginning 7,214,789 7.214.789 7,214.789 Fund balances -ending BudseVGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals
To adjust expenditures for accruals . To adjust expenditures for encumbrances Net change in fund balance, GAAP basis
ClPl OF SOUTH BEND SCHEDULES OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS -MOTOR VEHICLE HIGHWAY For The
Year Ended December 31,2008 Revenues: Intergovernmental Charges for services Other Total revenues Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original
Final Amounts (Negative) Expenditures: Current: Highways and streets Personal services 2.981.249 2,982.679 2,705.652 277.027 Supplies 1,908.963 2,229,306 2,210,382 18.924 Other services
and charges 151,472 166.439 109,570 56.869 Other uses 107,056 107.056 107.056 Total expenditures Net change in fund balances Fund balances -beginning Fund balances -ending BudrieUGAAP
Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures f~ accruals To adjust expenditures for encumbrances Net change in fund
balance, GAAP basis
CITY OF SOUTH BEND SCHEDULES OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS -RECREATION NONREVERTING For
The Year Ended December 31.2008 Revenues: Charges lor services Other Total revenues Expenditures: Current: Culture and recreation Personal services Supplies Other services and charges
Other Uses Capital outlay Total expenditures Net change in fund balances Fund balances -beginning Fund balances -ending BudqeUGPAP
Reconcdial~on Net change in fund balance, budget bas6 To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures lor encumbrances Net change in fund
balance. GAAP basis Variance Adual With Final Budgetaty Budget Budgeted Amounts Basis Positive Original Final Amounts (Negalive)
CITY OF SOUTH BEND ~ ~~~ SCHEDULES OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS -COMMUNITY DEVELOPMENT
For The Year Ended December 31.2008 Variance Adual Wilh Final Revenues: Intergovernmental Olher Total revenues Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts
(Negative) Expendilures: Current: Urban redevelopment and housing Personal services 2.077.145 2,064.704 1.824.927 239.777 Supplies 36.390 36.942 26.860 10,082 Other services and charges
341,817 11,046,261 6,777,796 4,268,465 Other uses 34.307 34.307 34,307 Capital outlay -2.432.21 1 364.979 2,067,232 Tolal expendilures 2,489.659 15,614.425 9,028,869 6,585,556 Olher
financing sources: Transfers in Net dange in fund balances Fund balances -beginning Fund balances -ending BudaeVGAAP Reconciliation Net change in fund balance, budget basis To adjust
revenues for accruals To adjusl expenditures for accruals To adjust expendilures for encumbrances Net change in fund balance, GAAP basis
CITY OF SOUTH BEND SCHEDULES OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS -LOCAL ROAD AND STREET For The
Year Ended December 31.2008 Revenues: Intergovernmental Olher Total revenues Expenditures: Capital Net change in fund balances Fund balances -beginning Fund balances -ending BudoeVGAAP
Reconcifialion Net change in fund balance, budget basis To adjust revenues for accruals To adjusl expenditures for accruals To adjust expenditures for encumbrances Net Change in fund
balance. GAAP basis Variance Actual With Final Budgetaty Budget Budgeled Amounts Basis Positive Original Final Arnounls (Negative)
CITY OF SOUTH BEND SCHEDULES OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS -HUMAN RIGHTS FEDERAL For The
Year Ended December 31.2008 Revenues: Intergovernmental Other Total revenues Expenditures: General government Personal services Supplies Other services and charges Other uses Total expenditures
Net change in fund balances Fund balances -beginning Fund balances -ending BuduetlGAAP Reconciiiation Net change in fund balance, budget basis To adiust revenues for accruals To aiust
expenditures for accruals To adjust expenditures for encumbrances Net change in fund balance. GAAP basis Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original
Final Amounts (Negative)
C l N OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS DEBT SERVICE FUNDS -REDEVELOPMENT BOND -STUDEBAKER
For The Year Ended December 31,2008 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Neqative) Other Rnandng uses: Transfers out Net
change in fund balances (4,551) 4,551 Fund balances -beginning 4,551 4.551 4.551 Fund balances -ending $ 4.551 $ 4.551 $ -$ 4.551 BudoeWGAAP Reconciliation No rewncilement necessary
since budgetary basis equals GAAP basis
CITY OF SOUTH BEND SCHEDULES OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS DEBT SERVICE FUNDS -COLLEGE FOOTBALL HALL OF FAME
DEBT SERVICE For The Year Ended December 31.2008 Variance Actual With Final Budgetary Budget Budgeted Arnounls Basis Positive Original Final Amounts (Negative) Revenues: Taxes: Property
Intergovernmental Total revenues Expenditures: Debt Service: Principal 810.000 810.000 810.000 Interest and fiscal agent fees 591.500 604.500 603.515 985 Total expenditures 1,401.500
1,414,500 1.413.515 985 Net change in fund balances 260.884 165.135 (958.951) (1,124,086) Fund balances -beginning 154.212 154.212 154.212 Fund balances -ending BudaeVGAAP Reconciliation
Net change in fund balance, budget basis $ (958,951) To adjust revenues for accruals 1,165.816 To adjust expenditures for accruals 920 Net change in fund balance. GAAP basis $ 207.785
CITY OF SOUTH BEND SCHEDULES OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS -EMERGENCY MEDICAL SERVICES
For The Year Ended December 31.2008 Revenues: Charges for services Other Total revenues Expenditures: Public Safely Olher services and charges Capibl ouUay Debt Service: Principal Interest
and fiscal agent fees Variance Adual With Final Budgelary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Total expenditures 763.542 1,045.101 887.578 157,523
Other financing uses: Transfers out Net change in fund balances 320.258 38.699 1,061.818 1.023.1 19 Fund balances -beginning 1,430.312 1.430.312 1,430.312 Fund balances -ending BudqeUGAAP
Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for encumbrances Net change in fund
balance, GAAP basis $ 1,199,887
CITY OF SOUTH BEND SCHEDULES OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS -PROFESSIONAL SPORTS DEVELOPMENT
For The Year Ended December 31,2008 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes: Professional sports
development Intergovernmental Mher Total revenues Expenditures: Culture and recreation Other uses Other financing uses: Transfers out (200,000) (200,000) (200.000) Net change in fund
balances 98,000 81.905 98.670 16.765 Fund balances -beginning 412.748 412.748 412.748 Fund balances -ending $ 510.748 $ 494,653 $ 511.418 $ 16.765 BudqeOGAAP Reconciliation Net change
in fund balance, budget basis $ 98.670 To adjusl revenues for accruals 56.001 To adjust expenditures for encumbrances 16.095 Net change in fund balance. GAAP basis $ 170.766
CITY OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS -PARK NONREVERTING CAPITAL
For The Year Ended December 31.2008 Variance Actual With Final Budgelaty Budge! Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for sem'ces $ 1.500
$ 1.500 $ 2,820 $ 1.320 Other 10,000 10.000 8.432 (1.568) Total revenues 11.500 11,500 11.252 (248) Expenditures: Culture and recreation Other setvices and charges 15 (15) Capital ouuay
259,650 299.457 252,467 46.990 Total expenditures 259,650 299.457 252.482 46,975 Other Sources: Transfers in 240.500 240.500 216.000 (24.500) Net change in fund balances (7.650) (47.457)
(25,230) 22.227 Fund balances -beginning 493,132 493,132 493.132 Fund balances -ending 5 485.482 $ 445,675 $ 467,902 $ 22,227 BudaeVGAAP Reconciliation Net change in fund balance, budget
basis S (25.230) To adjust revenues for accruals To adjust expenditures for accruals (200) 6.101 6.101 To adjust expenditures for encumbrances 5.057 Net change in fund balance. GAAP
basis $ (14.272)
CITY OF SOUTH BEND SCHEDULES OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS -CUMULATIVE CAPITAL DEVELOPMENT
For The Year Ended December 31.2008 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes: Property Intergovernmental
Other Total revenues 1,396,875 1,250,436 588.689 (661,747) Expenditures: Supplies Other services and charges Ca~itaolu Uav Debt Service: . Principal 774,116 774,116 774.1 16 Interest
and fiscal agent fees 183,766 183,766 73.597 110.169 Total expenditures 1.710.196 2,009,708 1.769.220 240,486 Net change in fund balances (313.321) (759.270) (1.160.531) 421.261 ~ u
n dbe lances -beginning 1.911.650 1,911,650 1,911,650 Fund balances -ending $ 1,598,329 $ 1,152,380 $ 731.119 5 421.261 BudaeUGAAP Rewncil~alion Net change an fund balance, budget hasis
To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures for for encumbrances 227,200 Net change in fund balance. GAAP basis $ (157.392)
C I N OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS -CUMULATIVE CAPITAL IMPROVEMENT
For The Year Ended December 31.2008 Revenues: lnlergovernrnental Other Variance Actual Wilh Final Budgetary Budget Budgeled Amounts Basis Positive Original Final Amounls (Negative) Total
revenues 578.339 578,339 550,535 (27.804) Expenditures: Debt Service: Principal 375.000 375.000 375,000 Interest and fiscal agent fees 219,000 219.000 190,611 28.389 Total expenditures
594.000 594,000 565.611 28.389 Net change in fund balances (15,661) (15.661) (15,076) 585 Fund balances -beginning 306.346 306,346 306,346 Fund balances -ending $ 290.685 $ 290,685 $
291.270 $ 585 BudqeUGAAP Reconciliation No remncilement necessary since budgetary basis equals GAAP basis
CITY OF SOUTH BEND SCHEDULES OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES Revenues: BUDGET AND ACTUAL -NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS -ECONOMIC DEVELOPMENT
INCOME TAX For The Year Ended December 31.2008 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Taxes: County economic development
income tax % 3.702.467 $ 3.702.467 $ 3.997.997 $ 295,530 Other 175.0W 175.000 332.231 157.231 Total revenues 3,877,467 3.877.467 4.330.228 452,761 Exoenditures: Current: Supplies Other
services and charges Capital outlay ~ e bste rvice! Principal 1.500.000 1.500.000 1.500.000 Interest and fiscal agent fees 772.401 731.401 706.259 25,142 Total expenditures 3,077,401
4.040.500 3.824.612 215.888 Other financing uses: Transfers out Net change in fund balances 181,956 (816,643) (1 12,494) (704,149) Fund balances -beginning 2,446,377 2.446.377 2,446,377
Fund balances -ending $ 2.628.333 $ 1,629.734 $ 2,333,883 $ (704.149) BudqetlGAAP Reconciliation Net change in fund balance, budget basis To adjust revenues for accruals To adjust expenditures
for accruals To adjust expenditures for encumbrances Net change in fund balance. GAAP basis $ 77,633
Revenues: Other C l N OF SOUTH BEND SCHEDULES OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -MAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS -MAJOR MOVES
For The Year Ended December 31.2008 Variance Actual With Final Bud-aetaw. Budaet Budgeted Amounts Basis ~osiiive Original Final Amounts (Negative) Expenditures: Capital -7,300,000 6,300,000
1,000.000 Net change in fund balances 600,000 (6.700.000) (5,836,248) 863.752 Fund balances -beginning 13,631,519 13,631.519 13,631,519 Fund balances -ending $ 14,231,519 $ 6.931.519
$ 7.795.271 $ 863.752 BudaeVGAAP Reconciliation Net chan-a e in fund balance. bud-a et basis To adjust revenues for accruals To adjust expenditures for accruals To adjust expenditures
for enwmbrances Net change in fund balance. GAAP basis
Consolidated Building -Parking Garage Solid Waste -Blackthorn Golf Course NONMAJOR ENTERPRISE FUNDS To account for the operation of the consolidated St. Joseph County1 South Bend Building
Department. To account for the operation and maintenance of the City's parking garages. To account for the provision of solid waste services. To account for the operation and maintenance
of the City's Blackthorn Golf Course.
CITY OF SOUTH BEND COMBINING STATEMENT OF NET ASSETS -NONMAJOR ENTERPRISE FUNDS December 31.2008 currBn1 a$sets: Cash and cash ~q~ivalsntr Interell receivable Accwnln mivable ("el of
allwrame) A m n * r-iveble -other I""ant&S Restricted as& cash, cash qruvalenb and invpjrmenls RBVB~YBb n d c ovenant accounh caw1 ouuay-""1s t"l.re+l mcewatde Nommotasseb: Defend charges
Unamolthed debt issus mrh Unamanized loss an salenearaback Tdal deferred charger Capital a s e k and and m n s w n in pmgresr other capitst aorels (net of scwmulaled depmialon) Total
arssls Comalidalsd Parking Solid BbcLUlOm Bunding Garaga Waste GoHCourae Tdala
men1 1tabl1issS Accaunis payable Inlecfund ~ayaMn: CIN OF SOUTH BEND COMBINING STATEMENTOF NET ASSETS -NONMAJOR ENTERPRISE FUNDS (continued) Dearmber31. 2WB (C.Mi""ed1 1"tmf"i tiam lnlerfvnd
reMcer provided and used Accmed DaYmlt ~eyable Capital leases payable Accmedinierest payable ~ o n c w r leia~bl msr: ~ d v a n mrm m olher lundr Rwenw bands payable (net 01 unamared
dsrowt. and deferred amarmon refunding) Cspital leasas payable unamallhed gain w aalernaseback Conl~lidaled Paning %lid Blacklhom Building Gamw Waste GollCaune Tabla lnv~sledin capbl
assets, nelol relaled deb1 55.220 4,839,840 341,188 5.82.3.988 ll.OMI.234 ~esttidedro r debtsw'b -1,305,766 1,306,766 Reserved lor cap.Xal asel outlays 1.219 1.219 UnrntriCled 132.313
3,636,604 176.870 (8.712.525) (4,766,736) Total net assets S 187.533 1 6,474,444 5 521.277 S l1.551.773) S 7.601.481
CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES. EXPENSES. AND OTHER CHANGES IN FUND NET ASSETS NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31,2008 Operating revenues: Licenses
and permits Parking fees Solid waste lees Go# course fees Other Total operating revenues Operating expenses: Operating and mainlenance Adminishative and general expense: Depredation
Total operating expenses Operating income (loss) Nonoperating revenues (expenses): lnteresl arm investment revenue Interest expense Amortization expense Gain on disposition 01 assets
Talal nonoparaling revenue (expenses) Income (IossJ berare mnuibulions and lranrfe~ Transfers in Transrefs aul Change in nel assets Total nel assets -beginning Total net assets -ending
Consolidated Parking Sdid Blackthorn Building Garage Waste Golf Course Tolals
CITY OF SOUTH BEND COMBINING STATEMENT OF CASH FLOWS -NONMAJOR ENTERPRISE FUNDS Cash b w s from operating aclivities: Receipts from customers and users Recei~tsfr om interfund services
provided paymink lo suppliers Payments la employees Payrnsnls for interfund services used Net cash provided by operating activities Cash flows horn wncapilal financing activities: Advances
b m olher funds Repayment of advances ham olher funds Transfen from other funds Transfers to olher funds Net cash provided (used) by noncapital financing adivities Cash bws from capital
and related financing activities: Acquisition and wnslrudion of capital assets Principal paid on capital debt Interest paid on ~ p i l adle M Pmceeds from sales of capital assets Far
Ihe Year Ended December 31,2008 Net cash used by capilal and relaled financing aclivilies Cash flows from invesling aclivilies: lnlerest received Net increase (decrease) in cash and
cash equivalents Cash and cash equivalenls. January 1 (Induding $1,325,633 and 165.238 for me revenue bond wvenanls and capilal outlays, respectively, reported in restricted ac-nls)
Cash and cash equiveienls. December 31 (Induding $1,351,505 and 11.219for !he revenue bond covenanls and capilal outlays, respectively, reported in restricted acwunls) Consotidated Parking
Solid Blackhrn Building Garage Waste Golf Course Totals (Continued on nexl page)
CITY OF SOUTH BEND COMBINING STATEMENT OF CASH FLOWS -NONMPJOR ENTERPRISE FUNDS For Ihe Year Ended December 31.2C08 (Continued) Reconcilialion of operaling inwme (loss) lo nel cash provided
by operaling dvities: Operating i m e (l ass) Adjustments to rewmile operaling inwme (loss) lo net cash provided by operating actiities: Depredalion expense Bad debt expense (Increase)
decrease in assets: Avaunls receivaMe Mher acmunts receivable Inlerfufund receivable lnvenbries Innease (decrease) in liabilities: Acmunlr payable Interfund payable Ac c ~ e dpa yroll
payable Compensated absence payable Noncash investing, capilal and financing activities: Fixed assel disposals Con~olidated Parking Solid Blackthorn Building Garage Wasle Golf Course
Tolals
INTERNAL SERVICE FUNDS Liability Insurance Premium Reserve -To acwunl for expenses related to maintaining the City's self-funded liability insurance including administrative Costs, claims
and premiums. Funding is provided by assessments to certain other City funds. Self-Funded Employee Benefits -To account for employer and employees' contributions for a medical insurance
plan. Central Services -To account for expenses related to fuel, vehicle repairs and various supplies provided to City departments on a cost-reimbursement basis.
CITY OF SOUTH BEND COMBINING STATEMENT OF NET ASSETS -INTERNAL SERVICE FUNDS December 31,2008 Liability Self-Insurance Funded Premium Employee Cenlral Reserve BeneRts Services Totals
Current assets: Cash and cash equivalents Interest receivable Accounts receivable lnterfund receivables: lnlerfund loans lnterfund services provided and used Intergovernmental receivables
Inventories Total current assets Capital assets: Other capital assets (net of accumulated depreciation) Total assets Current liabilities: Accounts payable lnterfund payables: lnterfund
loans lnterfund services provided and used Accrued payroll payable Compensated absences Estimate of unflled claims Total liabilities Nel Assets Invested in capital assels, nel of relaled
debt Unrestricted Total net assets
CITY OF SOUTH BEND COMBINING STATEMENT OF REVENUES. EXPENSES AND OTHER CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS For the Year Ended December 31.2008 Operating revenues: Employeelemployer
contributions Charges for sales and services Total operating revenues Operating expenses: Operation and maintenance Administration Insurance daims and premiums Depreciation Total operating
expenses Operating inmme (loss) Nonoperating revenues: Interest and investment revenue Income (lass) before contributions and transfers Contributions Change in net assets Total net assets
-beginning Total net assets -ending Liability Self-Insurance Funded Premium Employee Central Reserve Benelits Services Totals
CITY OF SOUTH BEND COMBINING STATEMENTOF CASH FLOWS -INTERNAL SERVICE FUNDS Fw ths Year End4 December 31.2WB Carh nm*s from operaling adivitier: Receipb from cuslansrsand users Receipb
fram inlerhnd ~ewicerp mvided Paymerns to ruppiierr Paymenlr lo employesr Paymenb lor interfund services used NBI cash provided by operating anivltier Cash flows ham -capital rvlancing
activities: 1nteIf"nd loan btedufund loan repaid Net cash used by mnvpilsl fimming adivities Cash mows horn capitalad relaled finanung a&iiies: Acq~isiti0.a7n d morbwlbn or capiial assets
cash now hom inverting anivitier: bterssl received ~stdecmarein cash end cash equivalenb Carh and cash egavaienb. January 1 Carh and cash squivatanth. December 31 Rewnciration 01 operating
inmme (imrl lo nsl cash pmuided (used) by operaling adivitier: Opeiating inwme (loss1 Adjuslmanb to mwmiie operaling inmme (loss) la net cash pmded (used) by operaling adivi'er Dspreciation
expeme (innease) *acreare in assets: -wb rpEsivaMe tnlergovermmlei rsce~abies lnlerfuod receivables Inmloties Prepaymen,. Innease (decrease) in liabititres: A-nlspayabie inlerfund payable%
A w e d payroll payable Campensat& absences payable EOtima1ed ""filed Ckims Net caah provided by aperaling activities Llab#iiiy SeF I"S"ra"ce Funded Premium Employee Cenlrai Resewe BenefhS
Se~cer Tdals
FIDUCIARY FUNDS Pension Trust Funds 1925 Police Pension -To account for the provision of retirement and disability benefits to police officers hired prior to May 1, 1977. Financing is
provided by mandatory contributions by active members, state pension relief distributions, and a specific annual property tax levy. 1937 Firefighters' Pension -To account for the provision
of retirement and disability benefits to firefighters hired prior to May 1, 1977. Financing is provided by mandatory contributions by active members, state pension relief distributions,
and a specific annual property tax levy. Agency Fund Payroll -To account for the payroll of City employees and pension benefits of the Police and Firefighters' Pension Funds. Gross payroll
and pension benefits are treated as expenditures in other City funds and transferred into this fund, which serves as a clearing account.
CITY OF SOUTH BEND COMBINING STATEMENT OF FIDUCIARY NET ASSETS -PENSION TRUST FUNDS December 31,2008 1937 Total 1925 Police Firefighters' Pension Pension pension Twst Funds Cash and
cash equivalents Receivables: Interest Taxes Total assets Current liabilities: Accounts payable Net Assets Held in trust for: Employees' pension benefits
CITY OF SOUTH BEND COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS PENSION TRUST FUNDS For the Year Ended December 31.2008 1937 Total 1925 Police Firefighters' Pension Pension
Pension Trust Funds Contribulions: Employer On behalf Plan members Other Total mntributions Net investment income: Interest Total additions Deductions Benefits Administrative expense
Tolal deductions Changes in net assets Net assets -beginning Nel assets -ending
ClW OF SOUTH BEND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS AGENCY FUND For the Year Ended December 31.2008 Payroll Assets: Cash and cash equivalents. January 1 Additions Deductions
Total assets. December 31 Liabilities Accrued payroll and wilhholdings payable, January 1 $ 1.105.000 Additions 91,496,806 Deductions (91,442,308) Total liabiliies, December 31 $ 1.159.498
STATISTICAL INFORMATION
FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the City of South Bend's financial position and performance have changed over time.
City of South Bend, Indiana Net Assets by Component Last Ten Fiscal Years Fiscal Year 2002 -2003 2004 2005 2006 -2007 2008 Governmental activities Invested in capital assets, net of
related debt $31.654.852 $31.254.629 $7.383.902 $35,777.247 $208,509,577 $200,634,954 $186,039.104 Restricted 7,167,628 6.381.082 1.966.388 6.138.257 5,225,642 5,370.627 11,077,687 Unrestricted
16,463,922 31,095,490 59,250,287 26,957,659 24,900.036 47,150,229 55,403,925 Total governmental activities net assets $55,286,402 $68,731,201 $68.600.571 $68,873,163 $238,635,255 $253,155,810
$252,520,716 Business-type activities lnvested in ca~ilaal ssets, net of related debt $49,514,614 $102,466,792 $93.370.899 $94,833,960 $97.670.533 $1 12.194.451 $123,895,274 Restricted
44,235,776 14,456,725 13,254,447 17,942,700 22,535,858 8,273,257 8,630,542 Unrestricted 37,874,655 12,837,127 19,015,375 6,751,584 7,168.852 15,793.782 7.520.167 Total business-type
activities net assets $131.624.985 $129,760,644 $125,640,721 $121.528.244 $427,375,243 $$136,261.490 $140,045,983 -Primary government Invested in ca~itaal ssets. net of related debt
$81.169.466 $133.721.421 $100.754.801 $130,611,207 $306,180,110 $312,829,405 $309.934.378 VI . . -4 Restricted 51.403,344 20;837.807 15,220,835 24,080.957 27,761.500 13,643,884 19,708,229
Unreslricted 54,338,577 43,932,617 78,265,656 35,709,243 32,068.888 62,944,011 62,924,092 Total primary government net assets $186,911,387 $198,491.845 $194,241,292 $190,401,407 $366,010,498
$389,417,300 $392,566,699 Source -City of SouUl Bend Comprehensvie Annual Financial Reports The City implernenled GASB 34 during 2002, Information on nel assets by componenl is no1 available
prior to 2002. The City implemenled the retroaclive reporling of infraslrudure assets required by GAS0 Stalernenl No. 34 during 2006. Net assets is defined as the difference belween
lotal assels and total liabililies and can generally be lhought of as the net Wrlh of the City.
City of South Bend, Indiana Changes in Net Assets, Last Ten Fiscal Years ExDenses Governmental activities: General government Public safety Highways and streets Health and welfare Culture
and recreation Economic develo~ment , . . , , . . . , . . , . . . . . . . . . Interest on long-term debt (3,988,586) (3,979,222) (6,209,012i (5,943,021) (5,841,032) (5,859,102) (7,080,166)
Total governmental activities expenses (96,447,097) (100.169,147) (111.282,406) (133,791,075) (135,377,383) (124,932,023) (735,039,863) Business-type activities: Water Wastewater Civic
Center A "I Building department m Parking S-olid w. aste ~~, . , ~, . , . . . . . . . . GOIc~o urse (1,655,435) (1,706,537) (1,778,107) (1.736.939) i1.811;757j (1,811,801~ (1,829,122)
Total business-type activities net expenses (35,868,508) (37,524,678) (40,661,073) (43,248,197) (40,608.005) (43,266,850) (48.780,128) Total primary government net assets (132.315.599)
(137,693,825) (151,943.479) (177,039,272) (175,979,388) (168.198.873) (183.819.991) Changes Changes in net assets is defined as the incremental difference between total assets and total
liabilities as a result of operations during the fiscal year
Proaram Revenues Governmental activities: Charges for services: General government Public safety Highways and streets Economic development Culture and recreation Operating grants and
contributions Capital &ants and contributions Total governmental activities pmgram revenues Business-type activities: Charges for services: Water Wastewater Civic Center Building Department
Parking Solid Waste Golf Course Operating grants and contributions Capital grants and contributions Total business-type activites pmgram revenues Total primary government program revenues
City of South Bend, Indiana Cbanges in Net Assets, Last Ten Fiscal Years (Continued) Fiscal Year -2002 -2003 -2004 -2005 -2006 -2007 2008 Net (ExwnseVRevenue Governmental activities
(WlWJog) (68,994,796) (80,894,268) (104,603,413) (91,562,482) (91,899,759) (104,886,202) Business-type activities 751.730 (669.168) (2,846,054) (4,720,962) 4.985.143 5.683.863 Total
primary government net expense (63,398,279) (69,663,964) (83.740.322) (109,324,375) (86,577,339) ((86,215.896) (102.350851 :012766)
City of South Bend, Indiana Changes in Net Assets, Last Ten Fiscal Years (Continued) Fiscal Year -2002 2003 -2004 -2005 2006 2007 -2008 General Revenues and Other Chanqes in Net Assets
Governmental activities: Taxes Property taxes $58.552.988 $67,965,063 $62,279,784 $72,743.697 $68,256,602 $77,120,683 $76.109.499 County Option Income Tax 7,750,067 ' 7.374.318 7,W1,198
5,695,618 6,410,405 8.072.623 5,813,846 Economic Development Income Tax 3,077,665 3,512,369 3,448,688 3.464.152 4,013,475 4,681,134 3.788.754 Professional Sports Development Tax 316.173
341.093 378.099 385,553 336.281 435.791 453,268 Community Revitalization District Tax 0 0 655,269 965.052 1,000,000 1 ,OW),OOO 955.315 Unrestricted grants and contributions 4,989,809
5,286,477 5,733,838 5,160,298 5.063.541 4.032,300 5.664.01 1 Unrestricted Investment earnings 1,559.320 1,124.825 1,660,720 3.543.469 4,762,484 6,247,173 4.961.410 Other 785,900 903.574
598,600 10.790.170 3.520,138 5.016.902 2.007.821 Loss onf Sale of Redevelopment Properties (1,083.637) 0 0 0 0 0 0 Net Pension Obligation (5,324,182) 0 0 0 0 0 0 Transfers (60.033) 12.533
14,873 33.589 44,200 3.735 34.970 ., 0, Total governmental activities 70,564,070 86,520.252 81,171,069 102,781.598 93,407,126 106,610,281 99,788,894 0 Business-type activlties: Unrestricted
Investment earnings 462,674 266.610 362.678 745.966 906,056 1.301.348 1,514,287 -n<+,,bh,m r n n n 1990515 o 0 0 Transfers Total business-type activities Total primary government Special
Item (Governmental activities): Well field contamination settlement Change in Net Assets Governmental activities Business-type activities Total primary government Excludes prior period
adjustments Source : City of South Bend Comprehensive Annual Financial Reports The City implemented GASB Statement No. 34 during 2002. Information on Changes in Net Assets is not available
prior to 2002.
City of South Bend, Indiana Fund Balances, Governmental Funds Last Ten Fiscal Years General fund ReseNed Unreserved Total -General Fund Fhcal Year -1999 -2000 -2001 -2002 -2003 -2004
-2005 -2006 -2007 -2008 Other Governmental Funds Reserv€d 25.696.913 26.302.929 33.676.079 37.163.342 33.911.725 39.224.425 38,498.351 34,251,520 36,374,517 58.831.626 Unreserved, reported
in: Special revenue funds 13,871.625 11.820.311 7,389,639 9,981.610 9.881.359 10,159,432 14.134.371 19.348.846 25,703,180 32.054.329 Capital projects funds 17.523.976 16,088,256 16.111.900
22.299.698 70,656,781 43,815.737 40,624,644 60,447,079 66.593.906 87.571.056 DeM services funds 0 0 0 0 0 0 0 (7,828) 0 0 Total -Other Governmental Funds $57,092,514 $54,211,496 $57,177,618
$59,U4,6M $114,449,865 $93,189-,5 94 $93,257,366 $114,039,617 $128,671,603
3178C57.011 --Grand Total -Governmental Funds $73,690,360 $71,290,683 $75,265,509 $86,499,572 5134,955,892 $115,221,287 $122,W1,560 $139,890,912 $152,432,356 $205,873,595 -, Source:
City ofsouth Bend Caprrhensivs Annusl Financial Reporta In the l n d financial stateme*, governmental funds -rt reservations of l n d balance for amount. that am not available for appropriation
or are legally restricted by outride parties for use for a speclfic purpose.
Revenues Taxes Licenses. k s an d permils Fines and forfeits Charges for services Intergovernmental Investment earnings Other revenues Total revenues Expendnures General government Public
Safely Highways and Slreek Health and Welfare Culture and R w e a t i i Economic Development Captial Outlay Debt Service Interest and F i i l Charges Principal Total expndnures City
of South Bend, Indiana Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years Fkcal Year -1999 -2 m -2001 -2002 zooJ -2004 -2005 -2006 -2007 -2008 5.065.134 7.W5.016 6,938.489
7.530.213 5.798.497 6,814,675 7.828.275 11,244,734 9.611.354 6.902.426 33,981,313 36,129,147 38.687,286 38,896,338 45,498,413 44.371.673 49,010.645 51.050.640 53.203.005 50,413,055 11.339.275
13,933,251 14.064.377 12.366.777 7.499.367 12,638,025 9.874.281 13.583.761 13,257,781 13.369.611 fin nnn fi9 nnn fis nnn 75 nnn 75 on0 75 nno 75 000 75.000 75.000 75.000
City of South Bend, Indiana Changes in Fund Balances, Governmental Funds (continued) Last Ten Fiscal Years Fkcal Year 1999 -2MIO -2001 2002 -2003 -2004 -2005 2M)6 2007 ZaOs Excess of
revenues over (under) expenditures (6,002,881) (4,279,020) (3,811.713) (982,730) (5,108,997) (19,691,103) (3,276,505) H,537,709 9,617,422 1,695,061 Other Financing Sources (Uses) Pmceeds
from debt issuance 4.837.271 0 8,579,363 12.016.706 55.953.290 613.767 10.023.189 14.050.557 2,920.287 45.622.808 Premium (discount) on deM issuance 0 0 0 0 0 0 0 0 0 1.626.186 Proceeds
fmm refunding 0 0 6,123.340 0 598.086 0 0 0 0 0 Payments lo e mage nt 0 0 (6.123.340) 0 (1.793.917) 0 0 (8,371,711) 0 0 Financing By Land Conhact 0 0 0 0 0 0 0 0 0 0 Financing By Capital
Lease 1.305.150 3,008.488 1.040.000 755.WO 795.325 0 0 0 0 0 Transfers in 6.421.098 6,422.020 8,263,022 6,864,298 8.201.665 6.571.247 8,332.742 8,928,540 7.872.575 10.574.625 Transfers
out (6,538,338) (7,549,235) (9,209,695) (7.724.331) (10,189.132) (6,554,374) (8,299,153) (8.884.340) (7.868.840) (10,539,655) Other 0 0 0 455.120 0 0 0 0 0 0 Total oUler financing sources
(uses) 6,025,181 1,881,273 8,672,690 12,366.793 53,565,317 628,MO 10,056,778 5,723,046 2,924,022 47,283.964 m Special item: W Well fietd mnlamination settlemenl 0 0 0 0 0 0 0 0 0 4.462.214
Net change in fund bahnces $22,300 ($2,397,747) 14860,977 $11,3&(,063 548,456,32(1 (119,062,463) $6,780273 $172€4,755 SILY1,W SU.UI239 DeM senlce as a percentage of noncapbl expenditures
(1) 6.5% 8.4% 8.9% 8.6% 13.5% 9.8% 11.1% 10.8% 11.4% 12.1% (1) For 199E2W1, debt service paymenls divided by tdal expenditures, net of capital expenditures. For 2W2-2008. debt service
payments divided by tdal expenditures, net of capital asset additions remrded on gwemment-wide statements. Exdudes prior period adjuslments Source: City of SouUl Bend Comprehensive Annual
Financial Reports
REVENUE CAPACITY These schedules contain information to help the reader assess the factors affecting the City of South Bend's ability to generate and maintain revenue.
CITY OF SOUTH BEND, INDIANA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN YEARS Current Tax Colleelions Delinquent Totnl Tar Or~lslnnding Collfclions as Outstandine. Delinoaent Taxcs
Tax Ycnrl Carrent Current Tar as a Percent Tax & Penalty Tolnl Tax 8 Percent of Delinqnrenl as a Percent of Collcctian Year Tar Levy Collcrlions ofTnr Levy Collerlions Colleclians Current
Tax Levy Taxw Current Tax Levy Information for 200712008 is not available duc to the CounlyIState delay in ceriiFying lax rates and sending out tar bills. Final senlement is expected
in July. 2009 Sosrce -St. .lnreph County Atrditor's Settlement Worksheeb. Calculalions by City olSoulh Bend Department o l Administration and Finance (I) The sum of current tax collectidns
and delinquent tar collections exceeds 100%. Information is not availahlc to break oul delinquent tax eollectio~b~yr year arlcvy.
City of South Bend, Indiana Direct and Overlapping Property Tax Rates last Ten Fiscal yea& (ratn per $100 of assessed value) City Direct Ratea CurnulaUve Tar Yead Genenl Parks1 Firelighters'
Police CapHal Total CollecUon Year Fund Recms4ton Pendon Penalon Development Direct 199811999 5.7504 0.9851 0.1615 0.1627 0.1500 7.2297 198912WO 5.WO 0.9906 0.1825 0.1636 0.1500 7.3307
20001ZW1 6.1677 1.M42 0.1948 0.1746 0.15W 7.7513 2W112W2 (1) 2.1304 0.3591 0.0669 0,OMXI 0.0267 2M51 200212003 1.56MI 0.2M7 0.0493 0.W2 0.0356 1 . M 2W3nWl 1.6871 0.2859 0.0532 0.0477
0.0376 2.1115 2WZW5 1.6845 0.2902 0.0540 0.c4.35 00376 2.1148 2W512006 1.7386 0.2981 0.0554 0.0498 0.0376 2.1795 200612W7 1.6638 0.2858 0.0531 0.0177 0.0342 2.1016 200712008 1.7924 0.2979
0.0579 0.0572 0.0342 2.2396 Source: St Joseph County Auditw (1) The 2W1 pay 2002 lax rates-mnvemd by Stated Indiana lax iegisMm horn 33% lo ICG% d asserred valualian OI 0) This m i o
nha d rm ellea onlax d a m s miinted. A~wrwdvaluerin crrasedandlaxrdesd m-ea&. Overlapping Rates (2) Includes Sate dindiana. Redevelopment Commission. Sam B e d Transpo and South Bend
Regional Airpat lofmatian pmvided fw P-Township in the Ci dSouVl Bend.
CrrY OF SOUTH BEND, INDIANA DETAIL OF NET ASSESSED VALUATION (Assessmeat For the Ycsr 2007 Payable in 2008) Value of land Value of improvements Tolal value of real cslale Less: Mortgage,
veterans, blind, agc 65 &other exemptions Taxoxempt property Invement tkduction Tax increment financing Tax abatements Net value of real elate South Ro d SOULB end South Bcod South Beod
South Bend Sooth Bend CentreTwp Q&&n German Two Warren T r e Portace TWP -Pcrccnt $109.049.300.00 $16.796.MX).W $52244.900.00 $15,367,900.00 $650,900.00 $386,184,830.00 $580,294,43000
Gross personal properly ayessments 28.217245.00 5289,03000 128,699,230.00 1,972,900.00 6,45629000 356,749,110.00 527,383,785.00 Less: Tax abatements OW 0.00 0.00 0.00 0.00 (13,232,240.00)
(13232240.00) Tax-exempt property (I ,637,540.00) (235,530.00) (2,532,200.00) (728,030.00) 0.00 (100,916,780.00) (106,050,080.00) Investment deduction 0.00 0.00 0.00 (88200.00) 000 (953,710.00)
(1,041,910.00) ' Tax increment financing 0.00 0.00 0.00 0.00 0.00 (17,195.850.00) (17,195,850.00) Nct vsluc 01 prrsoaal.praperty 26,579,705.00 5,053,480.00 126,167,030.00 1,156,670.00
6,456J90.00 224,450,530.00 389,863,705.00 13.10% Net value ofutilities 6,433,450.00 2,702,310.00 13,094,480.00 779,730.00 97,870.00 69,628J50.00 92,736,090.00 3.12% Total net assessed
valuation S388,139,915.00 $119,489,972.00 S302,072,042.00 $77J85,120.00 S6S54.160.00 $2,082S39,%9.00 S2,976,080,798.00 100.00% Percentage ofTotsl 13.04% 4.02% 10.15% 2.60% 0.22% 69.98%
100.00% Rcll Pcmo.1 P.-.,pcrty/property Utiltits Total Percent Total value $4,420,513,240.00 $620,119,875.00 S5.040,633.115.00 100.00% Deductions & exemptions (995,371,540.00) (1,041,91000)
(9%,413,450.00) -19.77% Tax exempt property (388,698,810.00) (106,050,080.00) (494,748,890 00) -9.82% Tax increment financing (454,461,077.00) (17,195,850.00) (471,656,927.00) -9.36%
Tax abatements (88.500,SlO.W) (13232240 00) (101,733,050.00) -2.02% Tot.1 net assessed valuation $2,493,481,003.00 S482,599,795.00 $2,976,080,798.00 59.04% Soorcc: SL .I-ph Coumtg Auditor's
OrClrr
City of South Bend, Indiana Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years Less: Tax Year1 Real Personal Utilities Total Non-Taxed Collection Year property
property pW=V Value property (1) I99811999 $625,759,390 $247.603.471 $23,807,830 $897,170,691 $271,363,045 I99912000 638,496,180 269,152,472 25,550,230 933,198,882 286,566,286 200012001
647,889,690 270,484.158 26.148.300 944,522,148 295,246,339 200112002 (2) 1,970,940,960 809,870,700 85,998,130 2,866,809,790 907,974,963 200212003 3,849,091,300 816,672,723 74,065,200
4,739,829.223 1,771,726,609 200312004 3,731,377,160 659,263,940 103,129,310 4,493,770,410 1,685,920,064 200412005 3,764,507,180 689.419.365 105,604,270 4,559,530,815 1,740.625.997 -200512006
3,789,447,790 655,066,401 98,165,420 4.542.679.01 1 1,707,413,121 m m 200612007 4,374,431,415 544,460,152 90,443,780 5,009,335,347 1,986,978.200 200712008 4,420,513.240 527,383,785 92,736,090
5.040.633.115 2,064,552,317 (1) Includes mortgage exemptions, lax+xempt property, lax increment financing, lax abatements, enterprise zones. (2) The 2001 pay 2002 and subsequent tax
rates were converted by currenl slate legislation from 33% lo 1W% of assessed valuation. This conversion had no effect on total dollars collected. Assessed vaues increased and tax rates
decreased. Total Net Taxable Value $625,807,646 646,632,596 649,275.809 1,958,834,827 2.968.102.614 2,807,850,346 2,818.904.818 2,835,265,890 3,022,357.147 2.976.080.798 Total City Tax
X Rate Taxable $7.2297 69.75% 7.3307 69.29% 7.7513 68.74% 2.6451 68.33% 1.9606 62.62% 2.1115 62.48% 2.1 148 61 32% 2.1795 62.41% 2.1046 60.33% 2.2396 59.04% Source: S t Joseph County
Audiiofs m c e
Tax Year1 Collection Year CITY OF SOUTH BEND, INDIANA NET ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LASTTENYEARS Real Property Net Assessed Estimated Value Value Personal
Property Net Assessed Estimated Value Value Utilities Net Assessed Estimated Value Value $23,807,830 $71,423,490 25,550,230 76,650,690 26,148,300 78,444,900 85,998,130 85,998,130 74,065,200
74,065,200 103,129,310 103,129,310 105,604,270 105,604,270 98,165,420 98,165,420 90,443,780 90,443,780 92,736,090 92,736,090 Source: S t Joseph County Auditor's ofiicr Real property
was reassessed effective in 1989 payable in 1990, 1995 payable in 1996 and again in 2002 payable 2.003, Total Net Assessed Estimated Value Value $625,807,646 $1,877,422,938 646,632,596
1,939,897,788 649,275,809 1,947,827,427 1,958,834,827 1,958,834,827 2,968,102,614 2,968,102,614 2,807,850,346 2,807,850,346 2,818,904,818 2.8 18,904,818 2,835,265,890 2,835,265,890 3,022,357,147
3,022,357,147 2,976,080,798 2,976,080,798 (1) The 2001 pay 2002 tax rates were converted by state legislation from 33% to 100% of assessed valuation This conversion had no impact on
total dollars. Assessed values increased and tax rates decreased.
Cily ofSouth Bend, Indiana Property Tax Collections -Cash Basis 2003-2008 Fund Name General Fund Parks & Recreation Redevelopment Bonds Studebaker Corridor College Football Hall of Fame
Debt Service Airport TIF Dismct (I) Cumulative Capital Development Sample-Ewing TIF District (I) South Bend Central Development Area TlF District West Washington Street TIF Districl
Central Medical Service Area Tff District Northeast TIF District Southside Development Area TIFDislrict Erskine Commons TIF District Erskine Village TIFDishicl Douglas Road Tff District
Fire Department Employees Pension Police Department Employees Pension Total Source -City Accounting System Fund Number 101 20 I 310 313 3 24 406 414 420 422 426 429 430 43 1 432 435
70 1 702 2003 2004 2005 2006 2007 2008 Actual Chg Actaal Chg Actaal Chg Actrial Chg Actual Chg Aetttal(2) Chg 1644,986.015.00 12% S44,149,333.00 -2% $44,999,55000 2% %48,768.150.00 8%
$48,720,726.00 0% $14,574.480.00 -70% 7,602,784.00 12% 7,479,711.00 -2% 7,754,973.00 4% 8,363,955.00 8% 8,271,741.00 -1% 2.461,101.00 -70% 673,281.00 12% 609,732.00 -9% 565,420.00 -7%
0.00 -l0OV/" 11,590.00 100% 0.00 -IW% 1,301,840.00 3% 1,300,588.00 0% 1,246,067.00 -4% 899,472.00 -28% 1,127,140.00 25% 360,682.00 -68% 6.546.483.69 37% 5,558,04500 -15% 6,246,028.00
12% 7,515,744.08 20% 8,851,076.92 18% 33,399.97 -100% 1,022,511.00 8% 984,945.00 -4% 1,004,779.00 2% 1.054.963.00 5% 989,824.00 -6% 291,600.00 -71% 685,924.77 20% 533.304.00 -22% 525,671.37
-1% 732,355.53 39% 778,093.13 6% 0.00 -100% 3,018,424.16 27% 2,606,365.00 -14% 2,359,430.01 -9% 3,283,074.86 39% 3,276.168.69 0% 12,695.60 .IW% 254,555.06 516% 216,948.00 -15% 193,910.57
-11% 255,510.04 32% 287,094.73 12% 1,784.97 -99% 318,652.814467% 337,721.00 6% 329,268.89 -3% 333,585.02 1% 928,112.55 178% 2,792.81 -100% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 13467.51 IW%
0.00 -100% 0.00 0% 0.00 0% 25,350.91 100% 28,565.37 13% 457.985.43 1503% 1,755.81 -100% 0.00 0% 0.00 0% 547.62 100% 2,584.68 372% 2,890.85 12% 9.90 -loP/" 0.00 0% 0.00 0% 109.247.79
100% 305,398.91 305,398.91 180% 775,621.72 154% 2,712.94 -100% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 13,940.78 0% 0.00 -1W% 1,416,008.00 12% 1,293,471.00 -9% 1,443,033.00 12% 1,554,387.00
8% 1,536,839.00 -1% 462,375.00 -70% 1,269,527.00 12% 1,128,733.00 -11% 1,296,055.00 15% 1,397,265.00 8% 1,380.555.00 -1% 425,760.00 -69% $69,096,006.49 15% $66,228,896.00 -4% $68,099,332.16
3% $74,495,010.49 9% $77,422,867.31 4% $18,631,150.00 -76% (I) Fund 414 closed out during 2008 into Fund 324. (2) Delays in sending out properly fy bills until December 2008 resulted
in interund borrowing in the General Fund (IOI), Parks & Recreation Fund (201) and the College Football Hall of Fame Debt Senrice Fund (3 13) at December 3 I, 2008. The remainder of
properly tax revenue is expecled to be recoived during the first half of 2009 wilh final setllement wilh the County Auditor in July, 2009
City of South Bend, lndiana Principal Real Property Taxpayers -Current and Nine Years Ago December 31,2008 2008 1999 Net Assessed Percent Net Assessed Percent Taxpayer Type of Business
Real Value Rank of Total Value Rank ofTotal Edward Rose of Indiana Apartments &Real Estate Castle Point Apartments Aparhnents & Real Estate Memorial Health Systems, Inc. Health Care
Park Jefferson Realty, LLC Apartments & Real Estate Wal Mart Retail Store Indiana and Michigan Electric Electric Utility 1st Source Bank Financial Institution Meijer Retail Store Marriott
Hotel Hotel Maple Lane Apartments Apartments &Real Estate Honeywell Airplane & Auto Parts Indiana Bell Telephone Utility Ameritech Telephone Utility Northern Indiana Public Senice Corporation
Gas Utility Massachusetts Mutual Life Insurance Co. Insurance New Energy Company Ethanol Plant American Electric Power Electric Utility Federal Mogul Manufacturing Total Net Assessed
Value -Ten Largest Taxpayers Total Net Assessed Value Note -Separate schedules are prepared for the ten largest taxpayers for 2007 based on real and personal property assessed values
because this is how the tax information is maintained by the St. Joseph County Auditor's Office. In 1999, a consolidated schedule for real and personal property was prepared. The net
asset value for 1999 was restated to reflect the state legislation for tax year 2001 pay 2002 that changed the tax rates from 33% to 100% of assessed valuation. This conversion had no
impact on total tax dollars. Assessed values increased and tax rates decreased. Data for Edward Rose of Indiana is for Saint Joseph County. Source: S t Joseph County Auditor's Omce and
1999 City of South Bend Comprehensive Annual Financial Report
City of South Bend, Indiana Ten Largest Taxpayers -Personal Property December 31,2008 Taxpayer Type of Business Honeywell Airplane & Auto Parts Federal Mogul Powertrain Systems Comcast
American Electric Power Indiana Bell Telephone/SBC Communications Northern Indiana Public Service Company United Parcel Service Robert Bosch Corporation New Energy Corporation South
Bend Tribune Company Automotive Supplier Cable Televison Electric Utility Telephone Company Natural Gas Utility Parcel Delivery Automotive Supplier Ethanol Production Newspaper Publishing
Total Net Assessed Value -Ten Largest Taxpayers Total Net Assessed Value (Personal and Utilities) Net Assessed Personal Percent Value of Total Information on the ten largest personal
property taxpayers is not available for 1999. Rank 1 Source: St. Joseph County Treasurer's office
Distribution CITY OF SOUTH BEND, INDIANA LOCAL OPTION INCOME TAX REVENUE LAST TEN YEARS ECONOMIC DEVELOPMENT INCOME TAX (EDIT) REVENUE Total Est South Rend EDIT County EDIT Rntc of EDIT
Rate of Tax Rate (1) Collections Glowth Dislributioo* Growlh 0.20% 168,253,561 5 15% 163,156,441 9.93% 0.20% 8,717,424 5.62% 3,105,473 -1 61% 0.20% 9,240,470 6.00% 3,430,327 10.46% 0
20% 14,687,146 (2) 58.94% 5,462.867 (2) 59.25% 0 20% 9,378,695 -36.14% 3,689,202 -32 47% 0.20% 9,106,517 -2.90% 3,448,688 -6.52% 0.20% 8,984,150 -1.34% 3,464,152 0 45% 0.20% 10,610,460
1810% 4,013,475 15.86% 0 20% 10,558,004 -0.49% 3,702,467 -7.75% 0.20% 11,136,493 5.48% 3,997,997 7.98% South Bend as a Percent pTTo(;ll (I) Thls tan was first enacted as orJuly 1, 1995
at the rate of 0.1% of City rcsidents'adjusled gross income. The rate was increased to 0.2% effective July I . 1997. (2) This years estimam includes a "catch-up" amount as arosult of
prior years conservative estimates This increase is one time amount. Future years distributions will will be clorcr lo 2001 amounts. Source -Statc orDrpnrtment of Local Government Finance
CEDlT Distribution Reports COUNTY OPTION INCOME TAX ( c o r n REVENUE Total South Bend South Bend Distribution COIT County COIT Rate or COIT Rntr of as a Percent -Year Tax Rate (3) Distributions
CrDWfh Distribution CrDWfh 1999 0 30% $5,538,599 134.53% $1,698,624 132.03% 30.7% 2000 040% 7,326,809 32 29% 2,378,487 40.02% 32.5% 200 1 0.60% 14,268,358 9474% 4,491,922 88.86% 31.5%
2002 0.60% 28,930,003 10276% 9,458,584 110.57% 32.7% 2003 0.60% 19,386,147 -32.99% 8,015,301 -15.26% 41.3% 2004 0.60% 21,977,497 13 37% 7,001,199 -12.65% 31.9% 2005 0.60% 16,628,131
-24.34% 5,490.21 8 -21 58% 33.0% 2006 0.60% 21,276,623 27.96% 6,382,478 16.25% 30.0% 2007 0.60% 16,993,346 -2013% 5,160,903 -1914% 30.4% 2008 0.60% 20,689,958 21.75% 6,382,478 23.67%
30.8% (3) This tax was first cnncted as ofJuly 1. 1997 at the rate of0 2% of City rosidcnls'adjusted grass income. The COIT rate increased 0.1% each year until it reached 0.6% as ofluly
1,200l. The above urllections/disnibution amounts arc ncl of the additional homeslcad credits that accompanied ihc passage of this income lax (4) South Bend COlT distribution rncludes
amounts for Civil City and Redevelopment Commission. Source -State orlndinna Department of Local Gavernment Finnnee COIT Dislrib~rtion Reports
CITY OF SOUTH BEND, INDIANA TOTAL COUNTY OPTION INCOME TAX DlSTRlBTUlONS BY TAXING UNIT 2001-2008 Unit of Government -2008 -2007 -2006 -2005 -2004 -2003 -2002 2001 Total County Cenlfied
D~strlbutton $32,574,042 00 $30,859,812 00 $31,044,322 00 $26,484,316 00 $76,536,784 00 $28,136,084 00 $37,769,988 00 $22,452,248 00 Less Homestead Crcdll (I) (1 1,884,084 00) (13,866,466
00) (9,767,699 00) (9,856,185 00) (4,559,287 00) (8,749,937 00) (8,839,985 00) (8,183,890 00) Total Dbtrihulivc Shara $20,189,958.00 $16,993,346.00 S21.276.623.00 516,628,131.00 $21,977,497.00
$19,386,147.00 528,930,003.00 $14,268,358.00 Dislribulivc ShnresiTotal County Distribution 63.52% 55.07% 68.54% 62.78% 82.82% 68.90% 76.60% 63.55% Amount St Joseph County Tamshlpr ClryorSouth
Bend -Clvd Clty Other Citics & Towns Llbrarles Soeclal Dtstr~cts Percentnee of Dislrihulion St. Joseph County Townshaps City ofSouth Bend -Crvd City Other Ciltes & Toms Ltbraries Specla1
Oistiicls T O I a l 100.00% 100.00% 100.00% 100.00% 100.00% ( I ) A ponian of the county optlon incame tan is used for properry la! rcliefrhraugh homestead credits Tor resldcntial property
omers. Source-Stale or Indian2 Dcpnrlmcnl of Loerl Governmrnl Finance COrT Distribt!tion Renortr
Name CITY OF SOUTH BEND, INDIANA TEN LARGEST WATER CUSTOMERS DECEMBER 31,2008 South Bend Community Schools Allied Signal Aerospace Company Memorial Health Systems Irish Hills Apartments
St. Joseph Medical System Park Jefferson LLC St. Joseph County Maintenance Dept. Amarak Uniform Services, Inc. BOC Gases Bosch Braking System Total of Ten Largest Water Customers Total
for Operating Revenue for Water Works 2008 Revenue Percentage of Total Water Operating Revenue 1.18% 0.94% 0.86% 0.67% 0.46% 0.29% 0.28% 0.26% 0.24% 0.20% Usage CCF* *Hundreds of Cubic
Feet
CITY OF SOUTH BEND, INDIANA TEN LARGEST SEWAGE WORKS CUSTOMERS DECEMBER 31,2008 Name Revenue VN TEK Plant University of Notre Dame New Energy Company of Indiana South Bend Community
School Corp. Allied Signal Aerospace Memorial Health System St. Joseph Medical System Town of New Carlisle Aramark Uniform Services, Inc. Sister of the Holy Cross Total of Ten Largest
Sewer Customers Total Operating Revenue for Wastewater % 22,941,734 Percentage of Total Water Operating Revenue Usage CCF* *Hundreds of Cubic Feet
City of South Bend, lndiana Gasoline Tax Collections -Cash Basis Last Ten Fiscal Years LR&S MVH Total Gas % Year Fund Fund Tax Change Distributions of gas tax revenue are made monthly
by the lndiana Department of ~evenue to the Local Road and Street (LR&S) and Motor Vehicle Highway (MVH) funds for Use In construction and maintenance of streets and highways. Distributions
are based on a complex formula developed by the state which takes into account population, road and street mileage and other factors. Gas tax revenue has been declining in recent years.
Source: City Accounting Records
City of South Bend, lndiana Wheel and Excise Surtax Collections -Cash Basis Last Ten Fiscal Years LR&S MVH Total Wheel % Year Fund Fund Tax Change Effective January 1 2004, St. Joseph
County enacted a wheel tax and annual license excise surtax as allowed by State law to provide additional funding for road maintenance and repair. State law allows an annual wheel tax
of $5-40 per vehicle and an annual license excise surtax of 2-10%. St. Joseph County has enacted a $25 County Excise surtax. The tax applies to all passenger cars, trucks less than 11,000
pounds, buses, tractors and motorcycles registered in the County. (Other rates apply to recreational vehicles, semitrailers and trucks exceeding 11,000 pounds.) The tax is collected
by the lndiana Bureau of Motor Vehicles, remitted to the County and distributed monthly to the local units based on population and road miles. During 2004-2007, the City of South Bend
deposited the wheel tax and excise surtax in its Local Road and Street (LR&S) fund. During 2008 and thereafter, the City will deposit the taxes in its Motor Vehicle Highway (MVH) fund.
Source: City Accounting Records
DEBT CAPACITY These schedules present information to help the reader to assess the affordability of the City of South Bend's current level of outstanding debt and the ability of the
City of South Bend to issue additional debt in the future.
CITY OF SOUTH REND, INDIANA COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31,2008 CIVIL CITY Net Assessed Valuation (2008 pay 2009) ofTaxable Property in South Bend $ 2,976,080,798 Debt
limit: 2% of net assessed value 59,521,616 Amount of debt applicable to limit: Total bonded debt subject to debt limit: EDIT Bonds $ 6,105,000 Less: Cash on hand designated for debt
service 0 Total debt applicable to debt limit 6,105,000 Legal debt margin -Civil City Arnonnt of debt subject to IimiUdebt limit REDEVELOPMENT AUTHORITY Net Assessed Valuation (2007
pay 2008) of Taxable Property in South Bend $ 2,976,080,798 . Debt limit: 2% of net assessed value 59,521,616 Amount ofdebt applicable to limit: Total bonded debt subject to debt limit:
Studebaker Bond $ 0 Less: Cash on hand designated for debt service 0 Total debt applicable to debt limit Legal debt margin -Redevelopment Authority Amotlnt ofdebt subject to limitfdebt
limit 0.00% 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 tlie general
long term debt account group. Indiana law allows the creation of separate municipal corporations to provide vital governmental funclions. Each of these municipal corporations (including
the Redevelopment Authority and Redevelopment Commission) has its own 2% debt limit, even ifthey have the same or similar boundaries.
City of South Bend, Indiana Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 1999 -2000 -2001 -2002 -2003 -2004 2005 -2006 -2007 -2008 Debt Limit (1) $37.548.459 $38.797.956
$38,956.549 $39.176.697 $59.362.052 $56.157.007 $56,378,096 $56,705,318 %60.447,143 $59.521.616 TotalNetDeblAppiicabieToLimit 11.150.000 10.750.000 10.330.000 9.882.500 9,412.500 8.937.500
8.395.000 7.367.825 6.685.000 6.105.000 Legal Debt Margin 26.398.459 28,047.956 28,626,549 29,294.197 49,949,552 47,219.507 47.983.096 49.337.493 53.762.143 53,416,616 Percentage of
Debt Limit 29.69% 27.71% 26.52% 25.23% 15.86% 15.92% 14.89% 12.99% 11.06% 10.26% Redevelopment Authority Debt Limit (1) $37,548.459 838,797,956 $38,956,549 $39,176,697 559,362,052 $56.157.007
1656,378,096 $56,705,318 $60,447,143 $59,521,616 Total Net Debl Applicable To Limit 3,380,000 2,880,000 2,355,000 1.810.000 1,235.000 628.000 0 0 0 0 Legal Debt Margin 34,168.459 35,917,956
36,601.549 37.366.697 58,127,052 55.529.007 56,378,095 56,705,318 60.447.143 59.521.616 Percentage of Debt Limit 9.00% 7.42% 6.05% 4.62% 2.08% 1.12% 0.00% 0.00% 0.00% 0.00% (1) A 2%
of net assessed value debt limit has been established by the Conslitution of lhe State of lndiana.for cerlain type of debt including general obligation bonds. Economic Development-Income
Tax bonds and tax revenue notes. This limitation does not apply to revenue bonds payable from governmenlal or proprietaly funds. *
City of South Bend, Indiana Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmenlal Activities Business-Type Activities General To-t.. al Fiscal Obligation Revenue Modgage
NotealLoanr Capital Revenue Mongage NoteslLoans Capilal Primary Year Bonds Bonds Bonds Payable Leases Bonds Bonds Payable Leases Government S3.620.WO 3.135.000 2.620.000 2.085.000 1.525.000
9x5 oon Percent of Tolal Deb1 0.00% 47.47% 10.11% 3.93% 3.04% 27.82% 0.36% 7.02% 0.26% IOO.OO% Estimated P~pulation Debt Per capita South Bend South Bend Estimated Deb1 Pemonal Percent
of Income Income Sources: City of South Bend Comprehensive Annual Financial Rrponr Populalion slali$tics oblained from the U.S. Census Bureau. City orsouth Bend estimated personal income
is computed as eslimatsd City population x South Bend Metro Area PET Capita Income (see Dsmagraphic Slalirtissl
Direct Debt: City of South Bend Gcncral Obligation Bonds Revenue Bonds -Governmcntal Activities Revenue Bonds -Businms-Type Activities Mortgagc Bonds -Governmental Activitics Mortsagc
Bonds -Business-Type Activities N o f a Payahle -Govern~nentaAl ctivitics Notes Payable -Busincss-Typc Activities Capital Lcascs -Governmental Activitics Capital Leases -Business-Type
Activities Total Direct Deht or Primary Government 4 m w Overlappine Debt (3)(4) St. Joseph County St. Joseph County Public Library South Bend Communily School Corporation South Bcnd
Regional Airport Authority Penn-Harris-Madison Schwl Corporation Mishawaka Penn Township Public Library Total Overlapping Debt Total Direct and Overlapping Debt CITY OF SOUTH BEND, INDIANA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT DECEMBER 31.2008 Gross Debt Ratio Factors Total Net Assessed Valuation (2007 payablc 2008) 9; 2.976.080.798 Population -2008 US Census Burcau
104.905 (1) South Bend Metropolitan Arca Per Capita Incomc 35.357 (2) Estimated South Bend Total Personal Incolne ( I x 2) 9; 3.709.126.085 Percentage Applicable to South bend Amount
Ratio of Debt/Rntio of Dehtl Applicable to Debt Per Net Assessted Personal South Bend Capita Value Income (1) Population statistics ohtaincd from the U.S. Census Bureau (http:/lfacttinder.census/~o~l
~~~lct). (2) South Bend-Mishawaka. IN-Metropolitan arca Profile (www.stats.indiana.edu). (3) Overlapping debt information obtained from Ulnhaugh Associates. Plymouth. Indiana and telephone
call to local units of government. (4) Overlapping dcht pcrccntages are based the net asscsscd value of South Bend properties in proportion to the total net assessed value.
CITY OF SOUTH BEND, INDIANA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES LAST TEN YEARS Total Ratio of Debt
Service Fiscal Total Debt General Government To Total General Govt. Year Principal Interest Service Expenditures Expenditures The City of South Bend has no General Obligation Bonds outstanding.
The 1977 Shldebaker Corridor bonds were paid off during 2006. Source -City of South Bend Comprehensive Annual Financial Reports
CITY OF SOUTH BEND, INDIANA RATIO OF NET GENERAL BONDED
DEBT TO NET ASSESSED VALUATION AND NET BONDED DEBT PER CAPITA LAST TEN YEARS Percent oTNet Debt Service Bonded Debt Net Tax Year1 Net Assessed Gross Monies Net To Net Assessed Bonded
Debt CollectionYear Population (1) Value Bonded Debt Available Bonded Debt Vall~e Per Capita ( I ) Population statistics obtained from the U.S. Census Bureau (http:/lfactfinder.censuslgov/servlet).
Most recent estimate was for January, 2007. (2) The 2001 pay 2002 tax rates were converted by state legislation from 33% to 100% of net assessed valuation This conversion had no effect
on total dollars. Assessed values increased and tax rates decreased.
CITY OF SOUTH BEND, INDIANA SCHEDULE OF REVENUE BOND COVERAGE WATER UTILITY BONDS LAST TEN YEARS Gross Net Revenue Debt Service Requirements Operating Operating Available for Debt Year
Revenue Expenses (1) Debt Service Principal Interest Total Coverage (1) Operating expenses exclude depreciation and payment in lieu of taxes Operating revenue used to make debt service
payments is obtained primarily through monthly user charges to water customers. Source -City of South Bend Comprehensive Annual Financial Report and Annual Report (CTAR-2)
CITY OF SOUTH BEND, INDIANA SCHEDULE OF REVENUE BOND COVERAGE WASTEWATER UTILITY BONDS LAST TEN YEARS Gross Net Revenue Debt Service Requirements Operating Operating Available for Year
Revenue Expenses (1) Debt Service Principal Interest Total (1) Operating expenses exclude depreciation and payment in lieu of taxes. (2) The Sewage Works Revenue Bonds were refunded
during 2001. (3) Two large Sewage Works revenue bonds issued during 2007 with principal and interests payments beginning in 2008. Operating revenue used to make debt service payments
is obtained primarily through monthly user charges to sewer customers. Debt Coverage Source -City of South Bend Comprehensive Annual Financial Report and Annual Report (CTAR-2)
DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules present various demographic and economic indicators to help the reader understand the environment within the City of South Bend that
affects the City's financial activities.
CITY OF SOUTH BEND, INDIANA DEMOGRAPHIC STATISTICS LAST TEN YEARS ~ o t l l hnc nd Soalh Bend Deeemher Melropnlirnn Mrtn, Area South Send Cily of Soulh Bend City of Percenl Area Percent
Totnl Personal Percent Metro Area Percenl City or Soerlh Rend Percent iMclropnlitan South Rend Inercnscl Median Family Incrrasd Inrarnc (3) Inrrenrel Per Capita Inrrensel Snt~lhB end
Puhlie School Incrcnrel Aren Labor Year Populnllan (I) (Deercnre) Incame (4) (Decrease) (Millions) (Decrenrc) Income (3) (Decrease) Median Age (4) Enrollment (2) (Dcermsr) Farcc (3)
1999 99.41 7 -2.6% 34,203 -3.0% 6,744 3.4% 25,455 2.9% 32.7 21.195 1.2% 137.147 2000 107,789 8.4% 34,702 1.5% 7,049 4.5% 26.516 4.2% 32.7 21,327 0.6K 133.715 2001 107.789 0.0% 40.416
17.6"h 7.426 5.3% 27,959 5.4% 32.7 21,362 0.2"A 132.779 2002 106,558 -1.1% 40.8 16 0.0% 7.671 3.3% 28.909 3.4% 32.7 21,059 -1.4% 133.240 2003 105,540 -1.0% 37.140 -9.0% 7,887 2.8% 29.788
3.0% 32.7 21.981 4.4% 131.283 2004 105.206 -0.3% 39.940 7.5% 8.295 5.2% 31,340 5.2% 32.7 22,140 0.7% 132.981 2005 105.743 0.5% 37.971 -4.9% 8.565 3.3% 32.328 3.2% 34.5 22.100 -0.2% 134.033
2006 104,457 -1.2% 39.046 2.8% 8,958 4.6% 33,034 2.2% 34.6 2 1,926 -0.8% 134.651 2007 104,069 -0.4% 44,400 13.7% 8,978 0.2% 33.739 2.1% 34.6 21,715 -1.0% 132,693 2008 104.905 0.8% Unavailable
NIA 9.396 4.7% 35,357 4.8% 34.6 21.595 -0.6% 133,433 -m Sources: UI ( I ) U.S. Census Bureau (hup://~actfindcr.~en~~~lg~~l~M~owsIte retc)e,n l estimate was for Jan 1. 2007. (2) South
Bend Comtnunity School Corporalion AdminisIration once (3) South Bend-Mishawaka, IN-MI Mctropolilan Area Pmlile (hutp:l/www.stats.indiana.edu). L a h r and employmmt statistics for D~cetnheor
reach ycar. (4) U.S. Ccnsus Bureau (hltp:llfactfindcr.~en~~~~g~~).
CITY OF SOUTH BEND, INDIANA DEMOGRAPHIC STATISTICS (CONTINUED) LAST TEN YEARS Deeernher December Soulh Bend Snulh Rend Percent Metropolitnn Pcrcrnr hlelropolilnn Increase/Area Inerensel
Unemploymrnl Ycar (Decrease) Unemplopment(3) (Decrcnsc) Rnlc (3) 1999 -0.7% 4.208 20.1 % 3.1% 2000 -2.5% 3.863 -8.2"h 2.9% 2001 -0.7% 7.33 1 89.8'/. 5.5% 2002 0.3% 6.49h -11.4% 4.9%
203 -1.5% 6,288 -3.2"h 4.R0/0 2004 1.3% 6.h69 6.1% 5.0% 2005 0.8% 6,956 4.3% 5.2% 2006 0.5% 6.501 -6.5% 4.8% 2007 -1.5% 6.291 -3.2% 4.7% 2008 0.6"h 12,476 98.3% 9.4%
CITY OF SOUTH BEND, INDIANA COMPARISON OF GROWTH RATES IN PERSONAL INCOME FOR ST. JOSEPH COUNTY, THE STATE OF INDIANA AND U.S. PERSONAL INCOME LAST TEN YEARS Amount in Amount in Millions
Billions Annual Percentage of Increase St. Joseph Co. Indiana U.S. St. Joseph Co. Indiana U.S. Calendar Personal Personal Personal Personal Personal Personal Year Income Income Income
Income Income Income Average Annual Growth -Most Recent 5 Years 3.58% 3.34% 4.94% Average Annual Growth -Most Recent I0 Years 3.72% 3.50% 4.63% Obtained from STATS Indiana, a website
sponsored by the Indiana Business Research Center at Indiana University's Kelley School of Business.Website address: www.stats.indiana.edu. Accessed June 9, 2009. Information is updated
through 2008.
City of South Bend, Indiana Principal Employers -Current and Nine Years Ago December 31,2008 2008 Percent 1999 Percent Number of of Total Number of of Total Employer Type of Business
Employees Labor Rank Employees Rank Labor FTE's FTE's University of Notre Dame CollegeIUniversity Memorial Health System Health Care South Bend Community School Corporation Public Schools
St. Joseph Regional Medical Center, Inc. Health Care AM General Manufacturing/Assembly ... The Diocese of Fort WayneISouth Bend Parochial Schools (,0" St. Joseph County Government Indiana
University at South Bend CollegeAJniversity City of South Bend Government Madison Center South Bend Metropolitan Area Labor Force (1) 133,433 137,147 Source -Chamber of Commerce of St.
Joseph County, City of South Bend Deparbnent of Administration and Finance, 1999 CAFR and telephone calls to individuals employers. (Information not available for The Diocese of Fort
WayneISouth Bend and St. Joseph Regional Medical Center and Madison Center for 1999.) (1) South South Bend-Mishawaka, TN Metropolitan Area Profile (hnp://wwww.stats.indiana.edu)
OPERATING AND OTHER INFORMATION These schedules contain information about the City of South Bend's operations and resources to help the reader understand how the City's financial information
relates to the services the City provides and the activities it performs. Included in this section is other non-required information that the City has determined is relevant and useful
to the reader of the financial statements.
Functionlprogram Police Physical arrests Parking violations Traffic violations Fire Emergency responses Fires extinguished Inspections Refuse collection Refuse collected (tons per day)
(,) City of South Bend, Indiana Operating Indicators by FunctionlProgram Last Ten Fiscal Years Fiscal Year 2001 2003 2004 2005 2006 -I0 P Other public works Street resurfacing (miles)
23.80 26.30 22.10 28.00 27.50 30.20 29.30 15.00 Potholes repaired (tonnage) 650.89 577.20 653.83 389.10 341.87 560.41 372.06 239.88 Parks and recreation Athletic field permits rssued
N/A N/A N/A NIA 700 700 750 700 Fitness Center Admissions 0 0 871 16,773 33,361 35,426 37,247 61,452 Water New billable housing starts 412 388 401 407 439 427 445 47 1 Water mains breaks
96 90 76 72 90 78 80 54 Average daily consumption 22,263 20,848 20,939 22,678 20,269 19,461 20,071 17,704 (thousands of gallons) Wastewater Average daily sewage treatment 42,800 44,100
44,100 44,100 38.200 31,800 31.800 32,800 (thousands of gallons) Sources: Various city departments departments NIA -information not available (1) 2007 and prior years were in cubic yards
Functionlproqram Police Stations Zone offices Patrol units Fire Stations Rescue units Refuse collection Collection trucks Other public works Streets (miles) -Streetlights ,m-Traffice
signals City of South Bend, Indiana Capital Asset and Infrastructure Statistics by FunctionlProgram Last Ten Fiscal Years -. Parks and recreation Acreage Playgrounds Baseballlsoflball
diamonds Soccerlfootball fields Swimming pools Community center water Water mains (miles) Fire hydrants Storage capacity (thousands of gallons) Wastewater Sanitary sewers ( miles) Storm
sewers (miles) Treatment capacity (thousands of gallons) ' No longer includes Clay hydrants Sources: Various city departments NIA -information not available
Residentinl Number or Permits 186 160 101 107 140 147 I (6 102 1 03 55 Residcntinl Value (in 000's) 19.119 15.833 11,316 1 1.707 19,573 20.203 25,123 17,241 18,314 10,032 CITY OF SOUTH
BEND. INDIANA NEW CONSTRUCTION -NUMBER OF PERMITS AND PROPERTY VALUES Last Ten Fiscal Years (Dollar Amounts in 000's) Residential Value Incrcasd (Decrease) 40.7% -17.2% -28.S"A 3.5%
67.2% 3.2% 24.4% -3 1.4% 6.3% -45.2% Commercial Number or Permils 40 I8 28 24 28 20 17 2 1 28 15 Commcrcinl Vallle (in 0nors) 52.735 6,792 12.307 35.810 13.280 24.340 28,578 36.749 27.082
44,678 Puhlie Utility Numhcr orpcrmits 1.407 2,355 2.253 2.222 1,822 2.823 2.61 l 2,282 1.907 1,662 Puhlie Utility Valuc (in 000's) 23.085 74,127 60.035 47.710 42.435 50.910 39.435 34.836
28.720 29,685 Manuracturing Numhcr of Permits 2 2 5 2 2 3 I 2 5 I Manufact Value (in 000's) 4.760 3,490 17.362 2,475 375 847 6.000 7.927 6.612 2.4 1 6 Commercial. Puhlic Utility and
Manaraeturing Total Vnluc (in 000's) 80,580 84.409 89.704 85.995 56.090 76,097 74,013 79,512 62.4 62.4 14 76.779 Total Value Incrcnsc/(Decrease) 34.3% 4.8% 6.3% -4.1% -34.8% 35.7% -2.7%
7.4% -21.5% 23.0% Squrce -Consolidated CityICounty Building Dcpartmcnt and City Euginccring Department. (D m
Department General Government Mayor's Office City Clerk's Office Common Council (elected officials, part-time) Administration and Finance City Attorney's Office Code Enforcement Engineering
Public SafeQ Police Department Communication Center Fire Department Building Maintenance for Fire 8 Police Dept Culture and Recreation Parks and Recreation Convention and Events Management
(I) Economic Development Community and Economic Development Hiqhways and Streets Street Department Traffic & Lighting Enterprise Funds Water Works Wastewater Sewer Solid Waste Building
Department Internal Service Fund Central Services Total Positions City of South Bend, Indiana Full-Time Equivalent City Government Employees by Department Last Ten Fiscal Years -1999
-2000 -2001 -2002 -2003 2004 -2005 -2006 -2007 2008 -2009 Budget
Department Summaw bv Activity General Government Public Safety Culture and Recrealion (1) Economic Development Highways and Streets Enterprise Funds Internal Service Fund Total Positions
Total Reduction in Positions (1999-2008) City of South Bend, Indiana Full-Time Equivalent City Government Employees by Department Last Ten Fiscal Years -1999 -2000 2001 -2002 -2003 -2004
-2005 -2006 -2007 -2008 -2009 Budget 134.27 (10% of workforce) Excludes seasonal, part-time and temporary positions (1) Includes reduction of 34 positions in the City's convention facility
(Century Center) during 2007. Century Center is being managed by a privale company under an agreement with the City of South Bend. Source: City of South Bends Performance Based Budgets
and personnel records
City of South Bend, Indiana Salary Rate Comparison 1990 -2009 ---1st Class Patrol Officer--------+st Class Fire Fighter--Percent Base Salary Percent Basesalary Non-barqaininq 3.00-4.00%
3.00% 3.00% 4.24% 1.50% + $300.00 bonus 1.50% + $300.00 bonus 3.00% 3.00% 3.00% 3.25% 3.50% 3.50% 4.00% 4.00% 4.00% 4.00% 2.00% $750/0% 3.00% 0.00% Teamsters .25 per hour .25 per hour
.30 per hour 0.00% .15 per hour .30 per hour .27 per hour .33 per hour .37 per hour 3.50% 3.50% 4.00% 4.00% 4.00% 4.00% 4.00% 4.25% .38 per hour 3.00% 2.00% Source -City of South Bend
personnel records
City of South Bend, Indiana Financial Institution Data Last Ten Years (Amounts in 000's) Banks Nctrnher of Dcposits Branches nl .lane 30 31 1.571.337 33 1.634.983 34 1.688.493 34 1.671.954
27 1.669.1 12 30 1.400.529 30 1.851.156 35 2.054.972 35 2,183.105 40 2.184.092 Snvinps and Loans (I) Narnhcr of Deposits Bmnelses at .lane 30 9 336.305 9 287.561 I I 239.588 I i 230.68
1 10 199.232 10 200.558 10 195.445 5 89.039 5 86.561 0 0 Crcdit Unions Number of Deposits Branches at .Itme 30 I I 1.064.852 I I 1.174.357 10 1.223.040 10 1.365.450 24 1.553.939 24 1.684.765
24 1,798.3 13 24 1.857.323 24 1.975.374 24 2.699.677 Cily of South Bcnd Financial lnstilutions 2008 Totnl Deposits (Amoants in 000's) is1 Soulce Bank 61.160.042 53.11% Key Bank National
Associalion 392.595 17.98% Wells Fargo Bank NA l(r1.969 7.55% National City saslk nf lndinna IS0.095 6.87% LaSalle Bank Midwmf NA 100.598 4.61% Otllns (5) 215.793 Total (62,184,092 -100.00%
T l ~ cC ily of Soutll Bmd has ils primany opmt ing accounts at 1st Source Bank. ((1) In June 2008 MFB Financial merged with Mutual Fint Financial lnco!poraled and is now claesificd
by FDIC as a hank. Totnl Deposilr in Financial lnslit$ttions Arnoanl 2.972.494 3.096.901 3.151.121 3.268.085 3,422.283 3.285.852 3.844.914 4.001334 4,245,040 4.883.769 Pcrccnl lncrcnsel
(Decrease) Credit Unions Tacacljer's Credit Union $1.895.220 Nnlro Dame Federal Credil Union 447.930 Community Wide Credit Union 183.486 AAA Federal Credit Union 57.907 Policemen's Federal
Crcdil Union 55.971 Olhers (5) -59.163 Total $2,699,677 -Sources: Fcdml Dcposil Insurance Corporation Wchsile (www.fdic.gov). Deposils Markc1 Share Rcpo$i. Soulb Bcnd. Dcposits Inside
of Market National Credit Union Associalion Websilc (www.ncua.pov)
CITY OF SOUTH BEND, INDIANA INSURANCE COVERAGE 2008 Type of Coverage LIABILITY Comprehensive General Liability Police Professional Liability Ambulance Malpractice Liability Premises
Liability (Clay Utilities. Century Center. Parking Garages) CGL -Stadium Liquor Liability 4/26/08 -09 CRIME Public Employee Dishonesty Public Official -Position Schedule Bond PROPERTY
1/15/08 -09 All risk blanket building & contents Business Income Boiler and Machinery Eleclronic Equipment Fine Arts Muscums Valuable Papers Inland Marine Property Coverage: 1/15/08
-09 Electronic Equipment Contractors Equipment OTHER 1/1/08 -09 Workers Compensation Third Party Fee Excess Over Self-insured $300,000 Retention Each Accident Limits of Liability Statutory
Statuto~y Stalutoly Estimated Annual Premium Self-Insured Self-Insured Self-Insured Sel f-Insured Self-Insured $2.500 Premium $9,589 Premium N/A $282,130 Premium Included in above Included
in above Included in above Included in above Included in above $1 5,350 Premium Self-Insured $65,000 Fee $1 17,964 Premium/Pce
City of South Bend, lndiana Miscellaneous Statistics December 31,2008 Police Depnrlrnenl Authorized Officers Vehicles Seccial Oficcr Grou~s: K-9 Patrols SWAT Team Mem Dmg Task Force
(of20 tolal) NEST -Special Nei8hborhoad Unit Bicycle Patrol Officers Motorcycle Patrol Oflicers Community Relations Oficers Bonh Squad Crime Prevention Ofliceis 2008 Crime Data: Murders
Rapes Robbery Aggravated Assault Residential Burglary Non-rcsidcntial Burglary Larceny Auto ThcR Arson Calls far Service Dispatches Miles Driven Arresls srwrr ",ilil" Customers Dry Tons
of Sludge produced per year Miles of Sanitary Sewer Lines Miles of Stonn Sewer Liner Sonlh Bcnd Reeional Airport Passenger -Year h ! g E De~ar l rnento rPublie Works T r a m Signals
160 Street Lights (City maintained) 2,250 Miles of Streets 500 Miles ofSidewalks 685 Miles of Alleys 398 Miles ofSanitary Sewcrs and Stann Drain: 511 City Owned Vehiclcs 867 Trash Picked
Up Per Week (in tons) 556 iwk (Organic Resource Bc Landfill) (17,725 CuYd) Work orders for sign maintenance, i~tal lal ion0 1 removal Miles ofyellaw and whitc paint Prc-formcd plastic
arrows used for street markings Crosswalk painting at intersections Turn arrows in turn lanes Detour routes Temporary No Parking postings Built Portables Railroad Crossings Built Barricades
Special Signs Beill Barricades set up Tor 2008 events (li ofevcots): Black Partier Convention Fneilities Century Center 64,000 square feet of exhibit space 2,992 available seating 700
seat theater Morris Performing Arts Cenrw 2.500 available seating Sworn Firefighten (60 ofwhich are Paramedics) Fire Apparatus Hazardous Materials Truck Rcscrve Pumper Trucks Rcscrve
Ladder Trucks River Rescue Boats Ambulances Neonatal (Newborn) Units Fire Runs Ambulance Runs Water Utility CustomerslMeters 39,247 Irrigation Curtamers 2,815 Wells/Pumps in service
29 Pumping Capacily 65 m.g.d. Daily Consumption 18.3 m.g.d. Peak Demand 35.9 m.g.d. Miler of Distribution Systems 560 Fire Hydrants 5,081 Colleges and Universities Universities and Colleges
Tile Universily of Notre Dame Indiana University at South Bend Bethel College St. Mary's College Holy Cross College Davenport University -South Bcnd Tri-Staa University -Sauth Bcnd Enrollmenf
Tcehnieal Colleges IVY Tech Community College 4,385 Brown Mackic College -South Bend 739
City of South Bend, Indiana Miscellaneous Statistics December 31,2008 Thc South Bcnd Regional Airpon had 48.323 take-offs and landings during 2007. Approximately 30 cammercial airline
flights per day fly lo I0 huh airports. Commercial airlines with operations at South Bcnd Regional Airpori (market share): 2007 2008 Alleeiant Air 12.62% 13.56% u Cape Air 0.13% 0.82%
Continential Connection 5.58% 7.80% Delta Connection 33.37% 29.76% NortBwestlKLM Airlines 21.70% 24.36% United Express Total Bus Passengers 63,038 61.496 Train Passengers (South Shore)
281,225 292.391 South Bend Public Transportation Corporation Roule Milts 2008 Ridership 2008 Miles oi~ervice 2.1 million Notre Dame Joyce Athletic and Convocation Center 115.000 square
fect of exhibit space Iiealth Cnre 11.345 available searing The City ofSouth Bend has excellent health care access Motels 31 ~natelslhotelr at costs below the national average and the
lowest in the 6 Bed and Breakfasts midwest region. The City has two maior haspitals: Ovci 2.700 available rooms Memorial Health Systems 526 beds Malor motels and mecting roams: St. Joseph
Regional Medical Ccaer 310 hcdn Marriolt facilities to scat 800 Holiday Inn facilities lo seat 450 Commt~niealions 4 Major Television Networks (WNDU, WSJV, WSBT. WEN Other Trxnsnortation
43 Trucking Lines. 33 Terminals 2 Interstate Bus Lines 4 Major Rail Systems (freight and passengcrl I public Broadcasting Television Station ( W I T ) I Local Television Station (WHME)
I Majo~N ewspaper (The South Bend Tribune) 24 Radio Stations South Bend has been the home to the many distinguished individuals including the following persons: -1,teorporeted in 1865
Ryan Newman, racecar driver -Counry Seat of St. Joseph County John Fogerty, singer -south BC,,~ ~ r n ~bieg~anl ulnd~er the name South Hold but the name Michael Warren, actor was changed
by the Post Office in 1830 to avoid confusion wilh Chad Everett, actor other communities that used that name. The name South Bend Sidney Pollack, actaridircctor was used because the
City is located at thc southernmost point of Knuie Rocknc, fwtball coach the St. Joseph River. John Wooden, basketball coach -Average High Temperature: loe Kernan. former South Bend
Mayor and Indiana Governor January 3 1 degrees Farenheit July 83 degrees Farenheit
SUPPLEMENTAL AUDIT OF FEDERAL AWARDS
STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E418 ww INDIANAPOLIS, INDIANA 46204-2769 Telephone: (317) 232-2513 Fax: (.3 17.)
232-471 1 Web Site: www.in.gov/sboa INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS TO: THE OFFICIALS OF THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA We have audited the 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, 2007, which collectively
comprise the City's basic financial statements and have issued our report thereon dated June 12, 2008. We conducted our audit in accordance with auditing standards generally accepted
in the United States and the standards applicable to financial audits contained in Government Auditinq Standards, issued by the Comptroller General of the United States. Internal Control
Over Financial Reoortinq In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an Opinion on the effectiveness of the City's internal control over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A control deficiency exists when the design or operation
of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data
reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is
more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies,
that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration
of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal
control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be significant
deficiencies or material weaknesses, as defined above.
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS (Continued) Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed
tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination
of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditina Standards. This report is intended solely
for the information and use of the City's management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these
specified parties. In accordance with Indiana Code 5-11-5-1, this report is a part of the public records of the State Board of Accounts and of the office examined. STATE BOARD OF ACCOUNTS
June 9,2009
STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E418 MDIANAPOL!S, mDIANA 46204-2769 Telephone: (317) 232-2513 Fax: 13 17) 232-471
1 Web site: w\;w.in.gov/sbaa INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB
CIRCULAR A-133 TO: THE OFFICIALS OF THE CITY OF SOUTH BEND. ST. JOSEPH COUNTY, INDIANA Compliance We have audited the compliance of the City of South Bend (City) with the types of compliance
requirements described in the U.S. Office of Manaaement and Budaet Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December
31, 2008. The City's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with
the requirements of laws, regulations, contracts and grants applicable to each of its major major federal programs are the responsibility of the City's management. Our responsibility
is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditina Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits
of States. Local Governments, and Non-Profit Oraanizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that Could have a direct and material effect on a major federal program occurred. An audit includes examining,
on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessaly in the circumstances. We believe that our
audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City's compliance with those requirements. In our opinion, the City complied
in all material respects with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2008. Internal Control Over
Com~liance The management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and
grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with requirements that could have a direct and
material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing
an opinion on the effectiveness of internal Control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance.
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OM5 CIRCULAR A-133 (Continued) A
control deficiency in a City's internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing
their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency,
or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is more than a remote likelihood that noncompliance
with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is
a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement
of a federal program will not be prevented or detected by the entity's internal control. Our consideration of the internal control over compliance was for the limited purpose described
in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be significant deficiencies or material weaknesses, as defined above. This report is intended solely
for the information and use of the City's management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these
specified
parties. In accordance with Indiana Code 5-11-5-1, this report is a part of the public records of the State Board of Accounts and of the office examined. STATE BOARD OF ACCOUNTS June
9,200
9 CITY OF SOUTH BEND SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FwTheYear Ended December31.2008 Pass-Thrwgh Federal Enlity (or Other) Federal Grantor AgencylPass-Through Enlity CFDA
Identifying Cluster TitldProgram TilldProjecl Title Number Number Total Federal Awards Expended U.S. DEPARTMENT OF COMMERCE Direct Grant Public Works and Economic Development Cluster
Economic Adjuslment Assislance 11.307 06-19-01251 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Direcl Granl CDBG -Enlitlemenl and (HUD Administered) Small C i t i Cluster Community
Develqmenl Blcck GrantslEntillemenl Granls 14.218 B-07-MC-18011 B-08-MC-18-011 Section 108 #8 Tobl lor clusler Emergency Shelter Granls Program Total for program Shelter Plus Care 14.238
IN 36-C020-043 AIDS IN 36-C020-044 MAD IN 36-C400-001 MAD IN 36-C7W-014 MAD ToLal for program Fair Hwsing Assislance Program -Slate and Local Total for federal grantor agency U.S. DEPARTMFNT
OF JUSTICE Direct Grant Community Capacity Developmenl Office Edward Byrne Memorial Formula Grant Program Tolal for program Pass-Thrwgh Indiana Criminal Justice lnslilute Motor Vehicle
Thefl Protection Acl Program Bullelprwf Vest Parhership Program 16.607 09BOBXO8045670 Community Prosecution and Project Safe Neighborhods 16.609 05GP001 05GP003 T O ~foIr program The
accompanying notes are an integral pan of the Schedule of Expenditures Of Federal Awards.
CITY OF SOUTH BEND SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Fw The Year Ended December 31.2008 (Conlinued) Pass-Through Federal Entity (w Olher) Tolal Federal Grantor AgenCylPass-Thrwgh
Entity CFD A identifying Federal Awards Ciusler TitlelPrwram TillelProiecl Title Number Number Expended y.S. DEPARTMENT OF JUSTICE (continued) Pass-Through lndiana Criminal Juslice Inslilule
(continued) Edward Byne Memwial Formula Granl Program 16.738 05DJ128 -JAG SK 4.495 Anti-Gang initialivs 16.744 06AGN005 46.458 Tolal for federal granlor agency 458.901 Y.S. DEPARTMENT
OF TRANSPORTATION Pass-Thrwgh lndiana Governor's Council on Impaired and Dangerws Driving: Highway Safely Cluster Slate and Communily Highway Safely 20.600 U.S. EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION Direct Granl Employment Discriminalion -State and Local Fair Employment Practices. Agency Contacts 30.002 67,915 U.S. ENVIRONMENTAL PROTECTION AGENCY Direct Grant Brownfields
Assessment and Cleanup Cooperative Agreements 66.818 BF-965-M5-01 47.064 BF-965-546-546-01 188,583 8F-965-597.01 209 Total fw program 235.856 Pass-Through Indiana Finance Authwity Capitalization
Granls fw Clean Water State Revolving Funds 66.458 Total for federal grantor agency U.S. DEPARTMENT OF HOMELAND SECURITY Direct Granl Assislance to Firelighters Grant Total federal awards
expended The accompanying notes are an integral palt of the Schedule of Expenditures of Federal Awards
CITY OF SOUTH BEND NOTES TO SCHEDULE OF EXPENDiTURES OF FEDERAL AWARDS Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal
grant activity of the City of South Bend (primary government) and is presented in accordance with the requirements of OMB Circular A-133, Audits of States. Local Governments, and Non-Profit
Organizations. Accordingly, the amount of federal awards expended is based on when the activity related to the award occurs. Therefore, some amO~ntS presented in this schedule may differ
from amounts presented in, or used in the preparation of, the basic financial statements. Note 2. Subrecipients Of the federal expenditures presented in the schedule, the primary government
provided federal awards to subrecipients as follows for the year ended December 31, 2008: Federal Amount CFDA Provided to Program Title Number Subrecipients CDBG -Entitlement and (HUD
Administered) Small Cities Cluster 14.218 $ 1,216,012 Shelter Plus Care 14.238 275.286
C l N OF SOUTH BEND SCHEDULE OF FINDINGS AND QUESTiONED COSTS Section I -Summaw of Auditor's Results Financial Statements: Type of auditor's report issued: Unqualified Internal control
over financial reporting: Material weaknesses identified? Reportable conditions identified that are not considered to be material weaknesses? Noncompliance material to financial statements
noted? no none reported no Federal Awards: Internal control over major programs: Material weaknesses identified? no Reportable conditions identified that are not considered to be material
weaknesses? none reported Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with
Section 510(a) of Circular A-133? no Identification of Major Programs: CFDA Number Name of Federal Program or Cluster CDBG -Entitlement and (HUD Administered) Small Cities Cluster Dollar
threshold used to distinguish between Type A and Type B programs: $300,000 Auditee qualified as low-risk auditee? Yes Section II -Financial Statement Findings No matters are reportable.
Section Ill -Federal Award Findinas and Questioned Costs No matters are reportable.
CITY OF SOUTH BEND SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS No matters are reportable.