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Management Discussion & Analysis
<br /> Governmental Fund Revenue
<br /> $(whole) 2011 %of 2010 %of
<br /> Tax Based Actual Total Actual Total
<br /> General properly 76,445,349 50.0% 77,315,641 48,8%
<br /> County option income 13,219,723 8.6% 14,366,154 9.1%
<br /> County economic development 8,044,773 5.3% 9,090,415 °
<br /> Professional sports development 5.7/°
<br /> 558,268 0.4% 597.406 0.4%
<br /> Community revitalization district 733,100 0.5% 416,149 0,3%
<br /> Total Tax 99,001,213 64.8% 101,785,765 64.3%
<br /> Non Tax Based
<br /> Licenses and permits 190,943 0.1% 192 397 °
<br /> Intergovernmental ° 0.1/°
<br /> 34,419,714 22.5/ 35,822,886 22.6%
<br /> Charge for services 13,990,267 9.2% 16,585,634 10,5%
<br /> Fines and forfeitures 636,749 0,4% 409,775 0.3%
<br /> Interest income 1,050,768 0.7% 868,023 0.5%
<br /> Donations 305,670 0.2% 300,337 0.2%
<br /> Other 3,281,848 21°� 2,377,459 1.5%
<br /> Total Non-Tax Based 53,875,959 35.2% 56,556,511 35.7%
<br /> Total Revenue 152,877,172 100.0% 158,342,276 100.0%
<br /> Tax revenue continues to represent the most significant source of revenue required to support
<br /> services provided by the City. Property tax revenue is the primary source of funding for
<br /> governmental expenditures. Property tax revenue is based on a relationship between two
<br /> variables. The first variable is the assessed property valuation of industrial, commercial and
<br /> residential parcels for both real and personal property. The second variable is the application of a
<br /> tax rate to arrive at the total tax levy. Taxable property is assessed at 100% of the true tax value.
<br /> The amount of property tax levied (billed to property owners) is further restricted by State of
<br /> Indiana enacted property tax legislative reform, or so-called "circuit breaker" property tax caps in
<br /> 2009 of 1.0% (homestead), 2.0% (other residential/rental) and 3.0% (commercial/industrial) of
<br /> gross assessed valuation. Property tax revenue includes taxes collected on behalf of the
<br /> following funds: General Fund, Parks and Recreation Fund, Cumulative Capital Development
<br /> Fund, Redevelopment Tax Incremental Financing ("TIF") Funds, and a special levy to cover debt
<br /> service of the College Football Hall of Fame.
<br /> The City recognizes the need to further diversify the revenue stream, and to reduce its
<br /> dependency on general property taxes to ensure that a broad base of users of city services,
<br /> including nonresidents who work in the City, share in the funding of basic City services. As a
<br /> result of the need to diversify the revenue stream, the City of South Bend Common Council and
<br /> Saint Joseph County Council adopted an additional local option income tax of 0.95%during 2009,
<br /> increasing the tax rate from 0.8% to 1.75%. The local option income tax increase consisted of
<br /> three components: 0.2% increase in the economic development income tax, a new 0.25% public
<br /> safety local option income tax and a new 0.5% property tax relief local option income tax.
<br /> The City continues to seek diversified sources of revenue that will reduce its reliance on property
<br /> and income taxes. The City has supported efforts of the Indiana Association of Cities and Towns
<br /> ("IACT") "Hometown Matters" to lobby the state legislature to legislatively enable alternative
<br /> revenue sources that best fit the needs of the community. A viable source of revenue is from
<br /> user fees and/or charges for services currently being performed. City performed services are
<br /> priced based at levels representing the full cost of service, taking into consideration fees charged
<br /> by providers of similar services. The City performs ongoing reviews of user fee costs incurred and
<br /> revises service fee prices as required.
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