HomeMy WebLinkAbout2018 Comprehensive Annual Financial ReportComprehensive Annual Financial Report
Report prepared by City of South Bend Department of Administration and Finance
City of South Bend, Indiana
Fiscal Year Ending on December 31, 2018
Pete Buttigieg, Mayor
Daniel Parker, City Controller
Benjamin Dougherty, Deputy City Controller
Amy Shirk, Director of Accounting & Budget
City of South Bend, Indiana
Table of Contents
Introductory Section
Letter of Transmittal .............................................................................................................................. i-viii
GFOA Certificate of Achievement ............................................................................................................ ix
Organization Chart ....................................................................................................................................... i
List of City Officials ................................................................................................................................... xi
Financial Section
Independent Auditor's Report ................................................................................................................ 1-3
Management's Discussion and Analysis ............................................................................................. 4-25
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position ......................................................................................................... 26-27
Statement of Activities .................................................................................................................... 28
Fund Financial Statements:
Governmental Funds:
Balance Sheet .................................................................................................................... 29-30
Reconciliation of the Balance Sheet to the Statement of Net Position.................................... 31
Statement of Revenue, Expenditures, and Changes in Fund Balances ............................ 32-33
Reconciliation of the Statement of Revenue, Expenditures, and Changes in Fund
Balances to the Statement of Activities............................................................................. 34
Proprietary Funds:
Statement of Net Position ................................................................................................... 35-36
Statement of Revenue, Expenses, and Changes in Net Position ........................................... 37
Statement of Cash Flows ................................................................................................... 38-39
Fiduciary Funds:
Statement of Fiduciary Net Position ........................................................................................ 40
Statement of Changes in Fiduciary Net Position ..................................................................... 41
Notes to Financial Statements ......................................................................................................... 42-97
Required Supplemental Information
1925 Police Officers' Pension Plan Schedule of Investment Returns .................................................. 98
1925 Police Officers' Pension Plan Schedule of City Contributions ..................................................... 99
Schedule of Changes in the Net Pension Liability and Related Ratios .............................................. 100
Schedule of Pension Investment Returns .......................................................................................... 101
1937 Firefighters' Pension Plan Schedule of City Contributions ........................................................ 102
Schedule of Changes in the Net Pension Liability and Related Ratios .............................................. 103
Schedule of City Contributions ........................................................................................................... 104
Schedule of the City's Proportionate Share of the Net Pension Liability ............................................ 105
Schedule of City Contributions ........................................................................................................... 106
Schedule of the City's Proportionate Share of the Net Pension Liability ............................................ 107
Schedule of City Contributions ........................................................................................................... 108
Schedule of the City's Proportionate Share of the Net Pension Liability ............................................ 109
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios .................................... 110
Budgetary Comparison Schedules - General Fund and Major Special Revenue Funds ............ 111-118
Budget/GAAP Reconciliation .............................................................................................................. 119
Notes to Required Supplemental Information ............................................................................. 120-121
City of South Bend, Indiana
Table of Contents (Continued)
Other Supplemental Information ........................................................................................................... 122
Nonmajor Governmental Funds:
Fund Descriptions ................................................................................................................. 123-130
Combining Balance Sheet .................................................................................................... 132-140
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances ............ 141-150
Schedules of Revenue, Expenditures, and Changes in Fund Balances - Budget
and Actual ....................................................................................................................... 151-219
Nonmajor Enterprise Funds:
Fund Descriptions ........................................................................................................................ 220
Combining Statement of Net Position .......................................................................................... 221
Combining Statement of Revenue, Expenses, and Changes in Net Position ............................. 222
Combining Statement of Cash Flows .................................................................................... 223-224
Internal Service Funds:
Fund Descriptions ........................................................................................................................ 225
Combining Statement of Net Position .......................................................................................... 226
Combining Statement of Revenue, Expenses, and Changes in Net Position ............................. 227
Combining Statement of Cash Flows .................................................................................... 228-229
Fiduciary Funds:
Fund Descriptions ........................................................................................................................ 230
Statement of Fiduciary Net Position ............................................................................................. 231
Statement of Changes in Fiduciary Net Position ......................................................................... 232
Schedule of Changes in Assets and Liabilities ............................................................................ 233
Statistical Section ................................................................................................................................... 234
Financial Trend Information
Net Position by Component ................................................................................................................ 235
Changes in Net Position .............................................................................................................. 236-238
Fund Balances - Governmental Funds ............................................................................................... 239
Changes in Fund Balances - Governmental Funds ........................................................................... 240
Financial Institutions ........................................................................................................................... 241
Revenue Capacity Information
Property Tax Levies and Collections .................................................................................................. 243
Direct and Overlapping Property Tax Rates ....................................................................................... 244
Detail of Net Assessed Value ............................................................................................................. 245
Assessed Value and Actual Value of Taxable Property ..................................................................... 246
Net Assessed Value of Taxable Property ........................................................................................... 247
Assessed Value of Taxable Property ................................................................................................. 248
Property Tax Collections - Cash Basis ............................................................................................... 249
2017 Circuit Breaker Property Tax Cap Credits ................................................................................. 250
Principal Property Taxpayers ............................................................................................................. 251
Local Income Tax Revenue (CEDIT).................................................................................................. 252
Local Income Tax Revenue (COIT) .................................................................................................... 253
Local Income Tax Revenue (PS LOIT) .............................................................................................. 254
Total County Income Tax Distributions by Taxing Unit ...................................................................... 255
Ten Largest Water Customers ........................................................................................................... 256
Ten Largest Sewage Works Customers ............................................................................................. 257
Gasoline Tax Collections - Cash Basis .............................................................................................. 258
Wheel and Excise Surtax Collections - Cash Basis ........................................................................... 259
Hotel/Motel Tax Revenue - Cash Basis - City Distributions ............................................................... 260
Professional Sports Development Area (PSDA) Tax - Cash Basis .................................................... 261
Cable Television Franchise Fee Collections - Cash Basis ................................................................. 262
City of South Bend, Indiana
Table of Contents (Continued)
Debt Capacity Information
Computation of Legal Debt Margin ..................................................................................................... 264
Legal Debt Margin Information ........................................................................................................... 265
Ratios of Outstanding Debt by Type................................................................................................... 266
Computation of Direct and Overlapping Debt ..................................................................................... 267
Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total
General Government Expenditures ............................................................................................. 268
Ratio of Net General Obligation Bonded Debt to Assessed Value and Net Bonded Debt Per
Capita ........................................................................................................................................ 269
St. Joseph County Hotel/Motel Tax Board Statement of Estimated Cash Flow and Debt
Service Coverage ......................................................................................................................... 270
Schedule of Revenue Bond Coverage - Water Utility Bonds ............................................................. 271
Schedule of Revenue Bond Coverage - Wastewater Utility Bonds .................................................... 272
Municipal Sewage Works Annual Wastewater Flow Data and Number of Customers ...................... 273
Statement of City-Owned Utility Debt ................................................................................................. 274
Estimated Debt Service Coverage Calculation of Sewage Works ..................................................... 275
Estimated Debt Service Coverage Calculation of Water Utility .......................................................... 276
Projected City of South Bend COIT Revenue .................................................................................... 277
Projected City of South Bend CEDIT Revenue .................................................................................. 278
Projected City of South Bend PS LOIT Revenue ............................................................................... 279
Statement of Estimated Cash Flow and Debt Service Coverage (COIT) ........................................... 280
Statement of Estimated Cash Flow and Debt Service Coverage (CEDIT) ........................................ 281
Estimated Tax Increment Revenue - Erskine Village Project ............................................................. 282
Demographic and Economic Information
Demographic Statistics ................................................................................................................ 284-285
Employment by Type and Industry ..................................................................................................... 286
Comparison of Growth Rates in Personal Income for St. Joseph County, the State of Indiana,
and U.S. Personal Income ........................................................................................................... 287
Principal Employers ............................................................................................................................ 288
Operating Information
New Construction - Number of Permits and Property Values ............................................................ 290
Capital Asset and Infrastructure Statistics by Function ..................................................................... 291
Operating Indicators by Function/Program ......................................................................................... 292
Full-time City Government Employees by Department ............................................................... 293-294
Salary Rate Comparison .................................................................................................................... 295
Insurance Coverage ........................................................................................................................... 296
Miscellaneous Statistics .............................................................................................................. 297-298
1200N COUNTY-CITY BUILDING PHONE 574/ 235-7678
227 W. JEFFERSON BLVD. FAX 574/ 235-9928
SOUTH BEND, INDIANA 46601-1830
i
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
DEPARTMENT OF ADMINISTRATION AND FINANCE
June 30, 2019
The Honorable Pete Buttigieg, Mayor of the City of South Bend
Members of the City of South Bend Common Council
Residents of the City of South Bend:
The comprehensive annual financial report of the City of South Bend, Indiana (the "City") for
the year ended December 31, 2018 is hereby submitted. Responsibility for both the accuracy of
the data and the completeness and fairness of the presentation, including all disclosures, rests
with management. To the best of our knowledge and belief, the enclosed data is accurate in all
material respects and is reported in a manner designed to present fairly the financial position and
results of operations of the various funds of the City. All disclosures necessary to enable the
reader to gain an understanding of the government’s financial activities are included.
Generally Accepted Accounting Principles (GAAP) requires that management provide a narrative
introduction, overview and analysis to accompany the basic financial statements in the form of
the Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The City of South Bend’s MD&A
can be found immediately following the independent auditors’ report.
The Comprehensive Annual Financial Report is presented in four sections: introductory
information, financial information, statistical information and federal compliance information. The
introductory section includes this transmittal letter, the City’s organizational chart, a list of
principal City officials and the Certificate of Achievement for Excellence in Financial Reporting
awarded to the City of South Bend for the year ending December 31, 2017. The financial
section begins with the independent auditors’ report on the City’s financial statements and
schedules, the City managements’ discussion and analysis report, followed by the City’s
basic financial statements and accompanying notes. The remaining portion of this
section includes the combining and individual fund and other financial statements and
schedules. The statistical section includes selected financial and demographic information
generally presented on a multi-year basis, which has been provided to give the reader a broader
understanding of the City. The federal awards compliance section, which includes the
results of the supplemental audit of the City’s federal awards and the internal controls
necessary for compliance, is included in a separate report.
The City is required to undergo an annual single audit in conformity with the provisions of the
Code of Federal Regulations Title 2 Part 200, the provisions of Indiana Code section 5-11-1-9
and the requirements of the Indiana State Board of Accounts. Information related to the single
audit, including the schedule of federal financial assistance, findings and recommendations, and
the auditors’ reports on the internal control structure and compliance with applicable laws and
regulations, is included in a separate report.
ii
The following pages of this transmittal letter begin with a general overview of South Bend and the
surrounding area. Also summarized are the key financial, budgetary and property tax controls
with which the City is required to comply. The remainder includes a discussion of the prior year’s
financial challenges and accomplishments, the City’s goals and objectives for this year and
beyond, and other key issues the City is facing along with the impact they may have on current
and future budgets.
GENERAL INFORMATION
The City of South Bend is the county seat of St. Joseph County, Indiana, and is the fourth largest
city in the state. The City of South Bend’s 2010 U.S. Bureau of the Census population was
101,168. Accordingly, South Bend is classified as a “City of the Second Class” under Indiana
statutes (cities with a population of 35,000 to 250,000). Population estimates in 2018 suggest
that the city continues to experience growth, pointing the way to further growth before the 2020
census. The City of South Bend operates with a mayor as chief executive and a nine-member
City Common Council composed of six members elected from districts and three members
elected at-large. The City of South Bend has a bond rating of AA with Standards & Poors, one of
the highest bond ratings for any city in the State of Indiana.
The City provides a full range of traditional general governmental services to its residents. These
services include police and fire protection; sanitation services; the construction and maintenance
of highways, streets and infrastructure; recreational activities and cultural events. In addition to
general governmental activities, the City exercises oversight over the South Bend Water Works,
the South Bend Wastewater Treatment Facility, the Century Center Convention Center, the Morris
Performing Arts Center, the Studebaker National Museum, the City of South Bend
Redevelopment Commission and Authority, and several downtown parking facilities.
Location
St. Joseph County lies within the heartland of the manufacturing belt and metropolitan regions of
the Upper Midwest and Canada. The City of South Bend is located in the north central part of
Indiana, ten miles south of the Michigan state line, and is commonly known to be within the South
Bend/Elkhart region. The region is a vibrant and diverse area with a strong economy based on a
mix of health care, agricultural, service, manufacturing, education and other commercial and
tourism industries. This diverse economic mix creates varied employment opportunities for the
area’s residents while providing insulation via diversification from future economic downturns.
The city is approximately 90 miles east of Chicago and 140 miles north of Indianapolis.
Accessibility to transportation, including Interstate 80/90, an international airport (which is the
second busiest in the State of Indiana) and the South Shore Line has supported economic growth
within the community. Proximity to Chicago, the largest rail and intermodal
(rail/truck/ocean/inland waterway) transfer point in the country, is a significant advantage to the
City of South Bend as is proximity to the University of Notre Dame with its scenic campus located
adjacent to the city limits. In 2017, the City of South Bend announced plans to partner with the
Federal, State and other local governments to reduce the South Shore Line travel time to
downtown Chicago to 90 minutes or less by the year 2020. The plans for this project continued
in 2018. When completed, this project will be transformative to the local economy.
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St. Joseph County / South Bend - Economic Conditions and Outlook
St. Joseph County, with its 2010 U.S. Bureau of the Census population of 269,141, boasts a
strong history of manufacturing which continues today. The service industry and retail trade have
also flourished, creating a balance that serves the community well. The County experienced a
net growth in population of 28,317 (11.8% increase) between 1960 and 2010. After experiencing
a reduction of 2.6% during 1969 to 1983, at which time the entire Midwest was at the depth of its
economic restructuring and recess, the County’s population increased 4.0% between 1983 and
1990 and another 7.5% between 1990 and 2000. The population of St. Joseph County has
remained fairly flat during the past decade increasing by only 1,372 residents from 2000 to 2010.
The estimated labor force in St. Joseph County is 137,668 workers (2018, STATS Indiana, using
data from the Indiana Department of Workforce Development). The workers are typical of the
Midwest: well-trained with a strong work ethic. Approximately 87.9% of the area’s adult population
are high school graduates or higher (as compared to the national average of 89%) with an
estimated 28.4% 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 South Bend; Bethel College; Saint Mary’s College; Purdue University
College of Technology at South Bend; Holy Cross College; Trine University South Bend;
American National University; and Ivy Tech Community College. The St. Joseph County 2018
Annual Average Unemployment was 3.2%, which is slightly lower than the State of Indiana
unemployment rate of 3.3%. The unemployment rate in St. Joseph County is similar to the
surrounding counties—Elkhart (3.1%), LaPorte (4.3%), and Marshall (3.0%) in Indiana and Cass
(4.2 %) and Berrien (4.8 %) in Michigan (2018 Annual Average).
The employment profile for St. Joseph County provides a good overview of the economic make-
up of this community. Employment estimates for the County’s major economic sectors are as
follows (STATS Indiana 2018 Summary, using data from US Bureau of Labor Statistics):
Economic Sector Number Employed % of Total
Educational Services, Healthcare,
Social Assistance 31,069 25.2%
Manufacturing 15,075 12.2%
Retail Trade 13,966 11.3%
Arts, Entertainment, Recreation, Accommodation,
Food Services 13,550 11.0%
Professional, Scientific, Management, Administrative,
Waste Management Services 12,221 9.9%
Other Services 11,108 9.0%
Wholesale Trade 5,684 4.6%
Construction 5,150 4.2%
Finance and Insurance, Real Estate,
Rentals, Leasing 5,113 4.1%
Public Administration 4,502 3.7%
Transportation and Warehousing, and Utilities 4,114 3.3%
Information 1,666 1.4%
Total 123,218 100.0%
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According to the United States Census Bureau’s 2013-2017 American Community Survey 5-Year
Estimates. St. Joseph County presently has an estimated 100,861 households with a median
household income of $48,121, which compares to the State of Indiana median household income
of $52,182 and the United States median household income of $57,652. Surrounding counties
have similar median household incomes—Elkhart ($52,449), La Porte ($49,921), and Marshall
($51,869) in Indiana and Cass ($50,699) and Berrien ($47,132) in Michigan.
Health and education lead the employment statistics for St. Joseph County. The largest
employers in St. Joseph County as of August 2017 were as follows: Beacon Health System
(4,683); University of Notre Dame (5,802); South Bend Community School Corporation (3,615);
St. Joseph Health System (2,626); Indiana University – South Bend (1,277); St. Joseph County
(1,068); City of South Bend (1,139); AM General (800); Honeywell International, Inc. (700); and
Press Ganey Associates, Inc. (694).
The following provides a profile of the residents of St. Joseph County (US Census Bureau
2013-2017 American Community Survey 5-Year):
Gender %, male/female: 48.7% male; 51.3% female
Age: 26.2% under 20
5.7% 20-24 years of age
23.2% 25-44 years of age
28.6% 45-64 years of age
16.3% 65 years of age and older
Race: 73.8% White
15.3% Black/African American
6.5% Hispanic/Latino
2.1% Asian
2.3% Other
Home Ownership: 68.5% own; 31.5% rent/other
The cost of living continues to be one of the greatest advantages of living in this community. The
housing costs in South Bend are well below the national and regional averages. Per a report
compiled by the National Association of Realtors in the fourth quarter of 2018, the median sales
price for a single-family home in the South Bend-Mishawaka Statistical Area was $132,900 as
compared to a median sales price of $255,600 in Chicago and $173,700 in Indianapolis. The
national median sales price is $254,000.
Between January 2016 and December 2018 the City of South Bend has seen approximately $445
million in private investment and the announcement of close to 1,500 new jobs. By providing state
of the art innovative infrastructure and, in some cases, offering targeted assistance the City can
stimulate private investment, creating business opportunities and jobs. The City has had many
significant economic development projects to include new downtown residential housing, mixed
use developments, downtown hotels, and high tech industrial projects. City investments
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 our neighborhood and
downtown areas.
v
The South Bend Community School Corporation serves the entire City and some of the
surrounding area and has a current enrollment of approximately 17,700 students in grades pre-
kindergarten through 12. An estimated 5,330 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 27,000. Over the years, the University of
Notre Dame has provided a stabilizing influence on the economy with a very significant positive
economic impact upon the community.
South Bend History and Amenities
In 1820, Pierre Navarre of the American Fur Trading Company was the first settler in the area to
become later known as South Bend. South Bend has continued to progress in its growth since
1842 when Father Edward Sorin named his rustic log chapel “Notre Dame du Lac” and began to
teach the local Indians. Today the chapel has grown into the University of Notre Dame. In 1852,
H.C. Studebaker started the industry of making wagons and horse-drawn buggies that evolved
into the manufacturing of the Studebaker automobile. It made the name Studebaker synonymous
with the area of South Bend and its major employer until its closure in 1963.
Another industrial firm that would later become the area’s largest began in 1923 when Vincent
Bendix began manufacturing automotive brakes. In 1929, the company became the Bendix
Aviation Corporation, and now, as Honeywell (formerly AlliedSignal Inc.), is a leading
manufacturer of automotive and aerospace products. The Singer Sewing Company and the Oliver
Chilled Plow Works were other important companies during the early history of South Bend.
In the 1840s and 1850s, many South Bend residents were secretly involved in helping fugitive
slaves escape from the South through the Underground Railroad. Many residents of South Bend
and St. Joseph County offered their homes, barns and businesses up as “stations” or safe places
in which runaways could eat and rest as they made their way North. Most notable among local
Underground Railroad conductors was James Washington, a well-known and well-respected free
Black in South Bend. Mr. Washington was a barber who, along with Mr. Sawyer, collected money
from local citizens to fund the Underground Railroad.
Special attractions within the South Bend area include the Olympic-class East Race Waterway
and the East Bank area; the renovated Morris Performing Arts Center, which provides for the
Broadway Theater League, the South Bend Symphony Orchestra with the Chamber and Pops
Orchestras, and the Southold Dance Theater and Patchwork Dance Company; the award-winning
South Bend Civic Theater; the Studebaker National Museum; the South Bend Museum of Art; the
Snite Museum of Art at Notre Dame; the Northern Indiana Center for History; Copshaholm/The
Oliver Mansion; Century Center; Potawatomi Zoo; the Morris Conservatory/Muessel-Ellison
Tropical Gardens; Healthworks! Kids Museum; the Farmers’ Market; and the Byers Softball
Complex. The Four Winds Field Baseball Stadium is a 5,600-seat facility which opened in 1987
and is rated among the best in minor league baseball. The stadium is home to the South Bend
Cubs, a minor league team affiliated with the Chicago Cubs.
Additional miscellaneous information about the City of South Bend can be found in the statistical
section of this report.
vi
Financial, Budgetary and Property Tax Controls
The City’s management team is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the government are protected from loss, theft or
misuse and to ensure that adequate accounting data is compiled to allow for the preparation of
financial statements in conformity with generally accepted accounting principles. The internal
control structure is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits
requires estimates and judgments by management. On November 28, 2016, the South Bend
Common Council approved a new Internal Controls policy for the City.
Single Audit. As a recipient of federal and state financial assistance, the City is also responsible
for ensuring that an adequate internal control structure is in place to ensure compliance with
applicable laws and regulations related to those programs. This internal control structure is
subject to periodic evaluation by management of the City. As part of the City’s single audit
described earlier, tests are performed to review internal controls to determine the auditing
procedures that are appropriate under the circumstances, including that portion related to federal
financial assistance programs, as well as to determine that the City has complied with applicable
laws and regulations. The results of the City’s single audit for the year ended December 31, 2018
are included in a separate report.
Budgetary Controls. In accordance with Indiana statutes, the City maintains budgetary controls
integrated within the accounting system. The objective of these budgetary controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget (prepared on a
cash basis) which is adopted by the Common Council or Redevelopment Commission (depending
on the fund) and then reviewed and approved by the State of Indiana Department of Local
Government and Finance (DLGF). Activities of the general fund, special revenue funds, capital
project funds, enterprise funds, internal service funds, pension trust funds and debt service funds
are included in the annual budget. The level of budgetary control (that is, the level at which
expenditures cannot legally exceed the appropriated amount) is established by major budget
classification within funds. The Mayor and Common Council may transfer appropriations from
one major budget classification to another within a department by ordinance if the total
appropriations for that fund are not exceeded. Additional appropriations in excess of the original
budget must be approved by the Mayor and Common Council and are also submitted to the DLGF
for either approval or acknowledgement (depending on the fund). Additional appropriations for
funds approved by the Redevelopment Commission do not require DLGF approval. The deadline
for adoption of the annual budget is November 1. The city’s fiscal year begins on January 1.
The City maintains an encumbrance accounting system as one technique of accomplishing
budgetary control. Encumbered amounts do not lapse at year end and are carried over to the
following year as a part of the subsequent year’s budget.
Property Tax Controls. In addition to budgetary and other controls established by Indiana law,
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.
vii
During March 2008, the State of Indiana General Assembly enacted property tax reform
legislation which made significant changes in the property tax system by capping the amount of
property taxes at 1% of grossed assessed value for residential homesteads, 2% for
agricultural/rental properties and 3% for all other real and personal property. This legislation was
phased in over a two-year period beginning in 2009. The loss of revenue to the City due to this
legislation was significant (estimated to be over $33.9 million dollars) but this revenue loss has
been offset by cost savings and the adoption of local option income taxes to continue providing
essential City services, including police and fire protection.
A historical view of the City’s tax rate and its net assessed valuation has been included in the
statistical section of this document.
Mayoral Leadership
Mayor Pete Buttigieg, a Harvard University graduate and Rhodes Scholar, assumed office on
January 1, 2012, bringing with him a group of leaders with new ideas and energy to implement
transformational reform to city government. When elected at age 29, Mayor Buttigieg was the
youngest chief executive of a municipality exceeding 100,000 residents in the United States. In
his second term as Mayor for the City of South Bend, Mayor Pete has entered the national political
scene and has been promoting the City of South Bend at the national level as a city based on
best practices and innovative ideas.
City Values
The administration of Mayor Buttigieg has a single, overarching mission— we deliver services
that empower everyone to thrive. In support of this vision, the Mayor has established three
main pillars of administration policy:
1. Make the basics easy – Provide residents high quality services at the greatest value to
the taxpayer, maintaining widespread confidence that the fundamentals are managed well.
2. Deliver Good government – Put residents first always, leading by example, gathering
input, and transparently communicating our intentions, decisions, and actions.
3. Invest in people and places – Support residents with design, policy, and programming for
a strong and inclusive economy, vibrant culture, and great public spaces.
Values
In the administration In the community
EXCELLENCE For each major area of service
delivery, establish South Bend as the
best in the state, and/or in the top
25% nationally, measuring and
reporting progress.
Establish a path for major indicators
of resident well-being to reach the
status of best-in-state or top-25%
nationally, including the means to
measure progress.
ACCOUNTABILITY Put residents first always, offering
services at the greatest value to the
taxpayer, with clear and transparent
indications of how the government is
using public resources.
Promote a culture of civic
engagement in which we hold one
another to a high standard of
respect, stewardship, and support for
our shared community.
INNOVATION Deliver better services more efficiently
by introducing creative approaches to
government operations, questioning
habit and using evidence to
continually improve.
Foster a culture of innovation in
South Bend’s social and private
sectors, seeking and developing the
best ideas and practices from within
and beyond our city limits.
viii
In the administration In the community
INCLUSION Ensure the city administration, as an
employer and as a purchaser, reflects
the community it serves and includes
diverse voices in our decision-making
and actions.
Develop a community in which
everyone has an equal opportunity to
thrive by expanding access and
participation to all, incorporating
diverse voices throughout the city.
EMPOWERMENT Establish a work environment that
enables employees to contribute
richly to the administration and the
community, taking pride and
ownership in our work.
Support the ability of all residents to
live a safe, healthy, meaningful life in
South Bend, contributing as they are
able and benefiting from all that our
community offers.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City of South Bend for
its comprehensive annual financial report for the fiscal year ended December 31, 2017. This was
the 28th consecutive year that the City has achieved this prestigious award. In order to be
awarded a Certificate of Achievement for Excellence in Financial Reporting, a government unit
must publish an easily readable and efficiently organized Comprehensive Annual Financial
Report. This report must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for
another certificate.
Acknowledgments
The preparation of the Comprehensive Annual Financial Report (CAFR) was made possible by
the dedicated service of the City’s departmental fiscal officers and the staff of the Department of
Administration and Finance. Each fiscal officer and member of the Administration and Finance
Department has our sincere appreciation for the contributions made in the preparation of this
report. We would especially like to acknowledge the efforts of the core CAFR preparation team of
Ben Dougherty, Amy Shirk, Rahman Johnson, Ken Glowacki, Maricela Juarez and consultant
Bruce Snyder. In addition, we would like to thank the Field Examiners of the Indiana State Board
of Accounts (led by Martha Harper, John Rucano III and Alex Flores) for their hard work and
dedication in this effort.
In closing, without the leadership and support of Mayor Pete Buttigieg, City Department Heads,
City Fiscal Officers and members of the City of South Bend Common Council, preparation of this
report would not have been possible.
Sincerely,
Daniel T. Parker
City Controller
Certificate of
Presented to
City of South Bend
For its Comprehensive Annual
December 31, 2017
Executive Director/CEO
Financial Report
for the Fiscal Year Ended
Reporting
in Financial
for Excellence
Achievement
Text38:Indiana
Government Finance Officers Association
ix
ResidentsofSouth Bend
City Council Mayor
Police Department
(Chief)
Board of Public Safety (1)
Operations
Patrol
Support
Fire Department
(Chief)
Board of Public Safety (1)
Operations
Services
Training
Fire Prevention
EMS
Venues, Parks, & Arts
(Director)
Board of Park Commisioiners (1)
Facilities & Grounds
Recreation
Experience
Civic Center Boardof Managers (3)
Venue Operations
Public Works
(Director)
Board of Public Works (1)
Engineering
Streets & Sewers
Water Works & Wastewater Utility
Solid Waste
Sustainability
Community Investment
(Director)
Redevelopment Authority/
Redevelopment Commission (2)
Business Development
Neighborhood Development
Engagement & Economic Resources
Planning
General Administration
Consolidated Building Department
(Commissioner)
Building Permitting
Design Review & Plan Review
Inspections
Administration & Finance
(City Controller)
Budget & Accounting
Treasury
Safety & Risk
Purchasing
Human Capital & Inclusion
Central Services
Innovation & Technology
(Chief Innovation Officer)
Services
Infrastructure
Applications
Business Analytics
311 Call Center
Legal Department
(City Attorney)
Board & Department Support
Ordinances
Litigation
Code Enforcement
(Director)
Administration
Code Inspections
Neighborhood Enhancement Action Team (NEAT)
Animal Care & Control
City Clerk
(1) Board Members include Mayoral Appointments
(2) Board Members include Mayoral and Council Appointments for Redevelopment Commission, Mayoral Appointment for Redevelopment Authority
(3) Board Members include 5 mayoral appointees and 4 council appointees
Effective January 1, 2019 x
xi
CITY OFFICIALS
Office Official Term
Mayor Pete Buttigieg 01-01-16 to 12-31-19
Controller Jennifer Hockenhull 01-01-18 to 10-23-18
Daniel Parker 12-10-18 to 12-31-19
City Clerk Kareemah Fowler 01-01-16 to 12-31-19
President of the Board of
Public Works Gary A. Gilot 01-01-12 to 12-31-19
Common Council Members
1st District Tim Scott 01-01-16 to 12-31-19
2nd District Regina Williams-Preston 01-01-16 to 12-31-19
3rd District Randy Kelly 01-01-16 to 02-10-18
3rd District Sharon McBride 02-24-18 to 12-31-19
4th District Jo M. Broden 01-01-16 to 12-31-19
5th District David Varner 01-01-16 to 05-14-18
5th District Jake Teshka 06-04-18 to 12-31-19
6th District Oliver Davis 01-01-16 to 12-31-19
At Large Karen L. White 01-01-16 to 12-31-19
At Large John Voorde 01-01-16 to 12-31-19
At Large Gavin Ferlic 01-01-16 to 12-31-19
STATE OF INDIANA
AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS
302 WEST WASHINGTON STREET
ROOM E418
INDIANAPOLIS, INDIANA 46204-2769
Telephone: (317) 232-2513
Fax: (317) 232-4711
Web Site: www.in.gov/sboa
INDEPENDENT AUDITOR'S REPORT
TO: THE OFFICIALS OF THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the City of South
Bend (City), as of and for the year ended December 31, 2018, and the related notes to the financial state-
ments, which collectively comprise the City's basic financial statements as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair pres-
entation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
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 Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and dis-
closures in the financial statements. The procedures selected depend on the auditor's judgment, including
the assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City's prep-
aration and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
1
INDEPENDENT AUDITOR'S REPORT
(Continued)
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City, as of December 31, 2018, and the respective
changes in financial position and, where applicable, cash flows thereof and for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 21 to the financial statements, during 2018, the City adopted new accounting
guidance in Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions. We did not modify our opinion
regarding this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, Schedules of Investment Returns, Schedules of Contributions,
Schedules of Changes in the City Net Pension Liability and Related Ratios, Schedules of the City's
Proportionate Share of the Net Pension Liability, Schedule of Changes in the City's Total OPEB Liability
and Related Ratios, Budgetary Comparison Schedules, and Budget/GAAP Reconciliation, as listed in the
Table of Contents, be presented to supplement the basic financial statements. Such information, although
not a part of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that col-
lectively comprise the City's basic financial statements. The accompanying Fund Descriptions, Combining
Balance Sheet, Combining Statement of Revenue, Expenditures, and Changes in Fund Balances,
Budgetary Comparison Schedules, Combining Statements of Net Position, Combining Statements of
Revenue, Expenses, and Changes in Net Position, Combining Statements of Cash Flows, Statement of
Fiduciary Net Position, Statement of Changes in Fiduciary Net Position, Schedule of Changes in Assets
and Liabilities, and Introductory and Statistical Sections are presented for purposes of additional analysis
and are not a required part of the basic financial statements.
The Fund Descriptions, Combining Balance Sheet, Combining Statement of Revenue,
Expenditures, and Changes in Fund Balances, Budgetary Comparison Schedules, Combining Statements
of Net Position, Combining Statements of Revenue, Expenses, and Changes in Net Position, Combining
Statements of Cash Flows, Statement of Fiduciary Net Position, Statement of Changes in Fiduciary Net
Position, and Schedule of Changes in Assets and Liabilities are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit
2
INDEPENDENT AUDITOR'S REPORT
(Continued)
of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the combining
and individual fund financial statements, and other budgetary comparison schedules are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June
24, 2019, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the City's internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the City's internal
control over financial reporting and compliance.
Paul D. Joyce, CPA
State Examiner
June 24, 2019
3
City of South Bend, Indiana
Management’s Discussion and Analysis
The management of the City of South Bend, Indiana (the “City”) provides herewith this
Management’s Discussion and Analysis (MD&A) of the financial activities and condition of the
City of South Bend, Indiana for the fiscal year ended December 31, 2018.
Readers of the information contained within this Management’s Discussion and Analysis, and any
opinion derived therein, should be considered as a part of the greater whole of the financial
statements, notes to the financial statements, supplemental information and letter of transmittal,
as contained within this Comprehensive Annual Financial Report (CAFR).
The City of South Bend is the county seat of St. Joseph County, Indiana, and is the fourth largest
city in the state of Indiana. St. Joseph County is located within the heartland of the manufacturing
and metropolitan regions of the Upper Midwest. The City of South Bend is located in the north
central region of the state of Indiana, five (5) miles south of the Indiana / Michigan state boundary
line. The City is approximately ninety (90) miles east of the city of Chicago and one hundred forty
(140)miles north of the city of Indianapolis.
The 2010 U.S. Bureau of the Census population for the City of South Bend was reported as
101,168 and the 2010 Census population for St. Joseph County was reported as 266,931.
Accordingly, South Bend is classified as a “Second Class City” under State of Indiana statutes,
defined as cities with a population between 35,000 and 600,000 residents.
The City of South Bend and St. Joseph County is a vibrant and diverse area with a strong local
economy based on a mix of agricultural, manufacturing and service, higher education, health care
and other commercial and tourism based industries. The diverse economic mix creates varied
employment opportunities for residents while providing insulation from economic downturns
through diversification. South Bend is home to the University of Notre Dame.
The City of South Bend provides a full range of general governmental services to its residents.
Services include general government, public safety, street construction and maintenance,
infrastructure construction and maintenance, parks and recreation services, arts and culture, and
sanitation services. In addition, the City provides water utility, wastewater utility and solid waste
services to commercial and residential properties within the city. City operations also include the
Century Center convention venue, Morris Performing Arts Center, Palais Royale
Ballroom, Studebaker National Museum, and public parking garages within the city footprint.
The City of South Bend governmental structure includes elected officials as follows with defined
management and legislative authority in compliance with Indiana law.
Mayor Chief Executive Officer 4-year term
Common Council 9 member legislative body
6 from defined districts within the City
3 at-large members
4-year term
City Clerk Secretary of the Common Council 4-year term
The current terms of office for Common Council members, Mayor and City Clerk expire on
December 31, 2019.
The City of South Bend was incorporated in 1865, is compliant with Indiana statutes, and remains
as such through the period covered by this Management’s Discussion and Analysis report.
4
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Financial Highlights
•Note: The City had two prior period adjustments that affected net position as of December
31, 2017. The first prior period adjustment was related to the implementation of GASB
Statement 75 and had the effect of raising Other Post-Employment Benefits (OPEB) liability
as of December 31, 2017 by $13,819,558 (thus reducing governmental activities Net Position
by the same amount). The second prior period adjustment was the correction of an error that
overstated Emergency Medical Services (EMS) revenue and accounts receivable. This
adjustment had the effect of reducing EMS accounts receivable by $1,078,551 (thus reducing
business-type activities Net Position by the same amount). All statements and tables that
present 2017 data throughout this Management’s Discussion and Analysis have been
adjusted to reflect these restatements. More information on these prior period adjustments
can be found in Note 21 to the Financial Statements.
•Government-wide net position was $368,793,609 as of December 31, 2018.
•Government-wide net position increased by $17,075,921 or 4.9% during fiscal 2018.
Governmental activity net position increased by $9,701,852 or 6.5% and business-type
activity net position increased by $7,374,069 or 3.6% during fiscal 2018. On an overall basis,
the City is better off financially at December 31, 2018 than it was at December 31, 2017 on a
government-wide financial basis. The primary reason is that the City received higher than
expected income taxes and property taxes in 2018, as well as several large, one-time
revenues (primarily operating and capital grants). In addition, investment earnings in 2018
were significantly higher than in 2017. These higher than expected revenues led to an
increase in cash assets in governmental activities. Additionally, a reduction in liabilities in
business-type activities that stemmed mainly from short-term Accounts Payable and paying
down long-term revenue bonds helped improve Government-Wide Net Position. Finally, the
City saw a marked decrease in pension liability related to both the 1925 Police Pension Fund
and the 1937 Firefighter’s Pension Fund.
•Total assets and deferred outflows of resources as of December 31, 2018 of $859,889,526
increased by $3,167,496 or 0.4% as compared to total assets and deferred outflows of
resources as of December 31, 2017. The increase is primarily attributable to an increase in
governmental activities cash, stemming from higher-than-expected property taxes, income
2018 2017 2018 2017 2018 2017
Assets/deferred outflows 548,601,067$ 543,902,663$ 311,288,459$ 312,819,367$ 859,889,526$ 856,722,030$
Liabilities/deferred inflows 390,492,918 395,496,366 100,602,999 109,507,976 491,095,917 505,004,342
Net Position
Net investment in capital assets 143,282,487 155,912,682 145,963,344 145,585,038 289,245,831 301,497,720
Restricted 11,252,528 9,245,531 33,936,695 29,623,015 45,189,223 38,868,546
Unrestricted 3,573,134 (16,751,916) 30,785,421 28,103,338 34,358,555 11,351,422
Total net position 158,108,149$ 148,406,297$ 210,685,460$ 203,311,391$ 368,793,609$ 351,717,688$
Change vs. prior year 9,701,852$ (456,783)$ 7,374,069$ 700,900$ 17,075,921$ 244,117$
Expenses 164,683,229 160,322,797 65,978,297 71,240,609 230,661,526 231,563,406
Revenues 169,155,420 155,742,831 78,582,027 76,064,692 247,737,447 231,807,523
Governmental Activities Business-type Activities Government-wide
5
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
taxes, and investment income (as well as certain one-time revenue sources) for the 2018
fiscal year.
•Total liabilities and deferred inflows of resources as of December 31, 2018 of $491,095,917
decreased by $13,908,425 or 2.8% as compared to total liabilities and deferred inflows of
resources as of December 31, 2017. This decrease was driven by a reduction in liabilities in
business-type Activities, stemming mainly from short-term Accounts Payable and paying
down long-term revenue bonds, in addition to a significant decrease in pension liability related
to both the 1925 Police Pension Fund and the 1937 Firefighter’s Pension Fund.
•As of December 31, 2018, the government-wide net position of $368,793,609 has
$289,245,831 invested in capital assets (net of debt) which is not available for spending,
$45,189,224 classified as restricted for debt service; capital outlay; and other; and
$34,358,555 classified as unrestricted.
•Government-wide revenue received in fiscal 2018 totaled $247,737,447, an increase of
$15,929,924 or 6.9% versus government-wide revenue received in fiscal 2017. Governmental
activity revenue increased by $13,412,589 or 8.6%, and business-type activity revenue
increased by $2,517,335 or 3.3%. Governmental activity revenue increases are due mainly
to increases in overall property taxes and income taxes, as well as certain one-time revenue
sources. The increase in the business-type activity revenue is due mainly to significant
increases in Water Utility and Wastewater Utility revenue, but is offset somewhat by a slight
decrease in Emergency Medical Services (EMS) revenue.
•Government-wide expenses in 2018 totaled $230,661,526, a decrease of $901,880 or 0.4%
compared to expenses of $231,563,406 in 2017. Government activity expenses increased by
$4,360,432 or 2.7%, while business-type activity expenses decreased by $5,262,312 or 7.4%
compared to fiscal 2017. The increase in the governmental activity expenses are due
primarily to increases in investment in Public Safety, Economic Development, and the City’s
Parks and Venues. These increases include increased cost of maintenance as well as raises
in salary across bargaining and non-bargaining employees. The decrease in the business-
type activities is due mainly to a decrease in costs of the Wastewater Utility, which had
unusually high maintenance costs in 2017, and in 2018 saw costs that are closer to the five-
year average.
Explanatory commentary concerning the changes in assets, liabilities, revenue and expenditures
can be found in later sections of this MD&A.
Overview of the Financial Statements
The City of South Bend’s financial statements are comprised of three components: (1)
government-wide financial statements, (2) fund financial statements, and (3) notes to the financial
statements. This report also includes other supplementary information in addition to the basic
financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview
of the City of South Bend’s finances using “accrual-based accounting,” a method of accounting
used by private sector businesses.
6
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
•Statement of Net Position
This statement reports all assets, deferred outflows of resources, liabilities, and deferred
inflows of resources of the City of South Bend as of December 31, 2018. The difference
between total assets and deferred outflows of resources less total liabilities and deferred
inflows of resources is reported as “net position,” and can generally be thought of as the net
worth of the City. Increases in net position generally indicate an improvement in financial
position while decreases in net position may indicate a deterioration of financial position.
•Statement of Activities
This statement serves the purpose of the traditional income statement. It provides
consolidated reporting of the results of all activities of the City of South Bend for the year
ended December 31, 2018. Changes in net position are recorded in the period in which the
underlying event takes place, which may differ from the period in which cash is received or
disbursed. The statement of activities displays the expense of the City’s various programs net
of the related revenues, as well as a separate presentation of revenue available for general
purposes including property and local income taxes, fees for services and other revenue
sources.
The government-wide financial statements distinguish between functions of the City that are
principally supported by taxes and intergovernmental revenue (governmental activities) and other
functions that are intended to recover all or a significant portion of their costs through user fees
and charges (business-type activities). The major governmental activities of the City of South
Bend include general government, public safety, street construction and maintenance,
infrastructure construction and maintenance, parks and recreation services, and arts and culture.
The major business-type activities of the City include the water utility, wastewater utility, solid
waste sanitation services, Century Center convention center, Building Department,
emergency medical services and the downtown parking garages.
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the City of South Bend can be divided into three categories:
governmental funds, proprietary funds and fiduciary funds. Each fund has its own cash balance
which must be maintained according to the City’s cash reserve policy.
Governmental Funds
Governmental funds are used to account for the same functions reported as governmental
activities in the government-wide financial statements. However, unlike government-wide
financial statements, governmental fund financial statements focus on short-term inf lows and
outflows of spendable resources, as well as on balances of spendable resources available at the
end of the fiscal year. Such information may be useful in evaluating a government's short-term
financing requirements. Governmental funds use the modified accrual accounting method. The
City maintains seven (7) major governmental funds (General, Parks and Recreation, Public Safety
Local Option Income Tax (LOIT), County Option Income Tax (COIT), Economic Development
Income Tax (EDIT), Rainy Day, and River West TIF) and seventy (70) non-major governmental
funds.
7
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Proprietary Funds
The City of South Bend maintains two types of proprietary funds: enterprise and internal service.
•Enterprise funds are used to report the same functions presented as business-type activities
in the government-wide financial statements. The City maintains seven (7) enterprise funds.
Information is presented separately in the proprietary statement of net position and the
proprietary statement of revenues, expenses and changes in fund net position for the water
utility, wastewater utility and Century Center, which are considered major enterprise funds.
Data from the other four (4) nonmajor enterprise funds (Consolidated Building Department,
Parking Garage, Solid Waste, and Emergency Medical Services) are combined into a single,
aggregated presentation. Individual fund data for each of these non-major enterprise funds
is provided in the form of combining statements elsewhere in this report.
•Internal service funds are used to accumulate and allocate costs internally among the City's
various functions and funds. The City maintains seven (7) internal service funds. The City of
South Bend uses internal service funds to account for its self-funded liability insurance
program, self-funded employee health benefits program, unemployment compensation
claims, police take-home vehicle program, Innovation & Technology and 311 call center,
parental leave benefit for City employees, and central services unit (a department that
accounts for expenses related to fuel, vehicle repairs, printing and other services provided to
City departments on a cost-reimbursement basis). Because these services predominantly
benefit governmental rather than business-type functions, they have been included within
governmental activities in the government-wide financial statements but are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual fund
data for the internal service funds is provided in the form of combining statements elsewhere
in the report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City
government. Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to support City programs. The City
maintains seven (7) fiduciary funds, which consist of two (2) pension trust funds (1925 Police
Officers’ Pension and 1937 Firefighters’ Pension), three (3) agency funds (Payroll, Police
Distributions Payable and Morris/Palais Royale Box Office), and two (2) private-purpose trust fund
(City Cemetery and Bowman Cemetery).
Pension Trust Fund Operations
City employees are covered by the Public Employees Retirement Fund (PERF) and the 1977
Police Officers' and Firefighters' Pension Fund, both of which are administered by the State of
Indiana. However, certain police officers and firefighters hired before May 1, 1977 (who did not
opt into the 1977 fund) continue to be members of the 1925 Police Officers’ Pension Fund or the
1937 Firefighters' Pension Fund. These two funds are administered by the City. The number of
police officers and firefighters in the City-managed pension trust funds will continue to decline in
the future as current participants pass away. The State makes certain contributions toward the
funding of the 1925 Police Officers’ and 1937 Firefighters’ pension plans.
8
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential in order to
have a full understanding of the data provided in the government-wide and fund financial
statements.
Other Information
In addition to the basic financial statements and accompanying notes and disclosures, this CAFR
presents supplementary information (“Required Supplementary Information” or “RSI”)
immediately following the basic financial statements. Other supplementary information is found in
the Statistical Section. The combining statements referred to earlier in connection with non-major
governmental, non-major enterprise, internal service and fiduciary funds are presented
immediately after the Required Supplementary Information within the financial statement section
of the CAFR.
Government-wide Financial Statements
The following financial analysis will focus on the statement of net position and statement of
changes in net position of the City’s governmental and business-type activities.
Statement of Net Position
•As of December 31, 2018, total assets and deferred outflows exceeded liabilities and deferred
inflows by $368,793,609, an increase of $17,075,921, or 4.9%, from the net position level as
of December 31, 2017.
•Governmental activities net position of $158,108,149 increased by $9,701,852, or 6.5%, from
December 31, 2017.
•Business-type net position of $210,685,460 increased by $7,374,069, or 3.6%, from
December 31, 2017. The increase in business-type net position was due primarily to
significantly lower expenses in the Wastewater Utility.
2018 2017 2018 2017 2018 2017
Assets
Current and other 266,601,477$ 249,677,530$ 71,059,755$ 67,013,444$ 337,661,232$ 316,690,974$
Capital assets (net)266,077,813 267,778,947 238,478,887 243,793,487 504,556,700 511,572,434
Total Assets 532,679,290 517,456,477 309,538,642 310,806,931 842,217,932 828,263,408
Deferred Outflows 15,921,777 26,446,186 1,749,817 2,012,436 17,671,594 28,458,622
Liabilities
Current 8,324,537 12,896,073 4,493,137 17,960,166 12,817,674 30,856,239
Long-term 362,740,661 367,546,469 96,061,945 91,403,011 458,802,606 458,949,480
Total Liabilities 371,065,198 380,442,542 100,555,082 109,363,177 471,620,280 489,805,719
Deferred Inflows 19,427,720 15,053,824 47,917 144,799 19,475,637 15,198,623
Net Position
Net investment in capital assets 143,282,487 155,912,682 145,963,344 145,585,038 289,245,831 301,497,720
Restricted 11,252,528 9,245,531 33,936,695 29,623,015 45,189,223 38,868,546
Unrestricted 3,573,134 (16,751,916) 30,785,421 28,103,338 34,358,555 11,351,422
Total Net Position 158,108,149$ 148,406,297$ 210,685,460$ 203,311,391$ 368,793,609$ 351,717,688$
Governmental Activities Business-type Activities Government-wide
9
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
•Government-wide assets and deferred outflows increased by $3,167,496 or 0.4% as
compared to total assets and deferred outflows of resources as of December 31, 2017. This
is primarily due to higher than expected income taxes and property taxes in 2018, as well as
several large, one-time revenues (primarily operating and capital grants). In addition,
investment earnings in 2018 were significantly higher than in 2017.
•Total liabilities and deferred inflows of resources as of December 31, 2018 of $491,095,917
decreased by $13,908,425 or 2.8% as compared to total liabilities and deferred inflows of
resources as of December 31, 2017. This decrease was primarily due to a significant decrease
in pension liability related to both the 1925 Police Pension Fund and the 1937 Firefighter’s
Pension Fund.
Statement of Changes in Net Position
2018 2017 2018 2017 2018 2017
Revenue
Program revenue
Charges for services 6,476,043$ 8,541,200$ 75,940,019$ 73,036,361$ 82,416,062$ 81,577,561$
Operating grants 26,248,738 11,828,681 278,112 11,828,681
Capital grants 4,100,000 1,000,000 - 1,170,970
-26,526,850
4,100,000 2,170,970
General revenue
Taxes
Property tax 80,155,902 78,266,107 - - 80,155,902 78,266,107
Other tax 33,527,962 28,527,005 34,802,962 29,802,005
Unrestricted grants 4,819,125 17,160,034
1,275,000 1,275,000
4,819,125 17,160,034
Investment earnings 3,304,646 1,687,888 1,088,896 578,773 4,393,542 2,266,661
Other revenue 10,523,004 8,731,916 - 3,588 10,523,004 8,735,504
Total Revenue 169,155,420 155,742,831 78,582,027 76,064,692 247,737,447 231,807,523
Expenses
General government 12,654,430 16,750,853 - - 12,654,430 16,750,853
Public safety 69,209,163 71,656,865 - - 69,209,163 71,656,865
Highways and streets 17,223,378 21,716,658 - - 17,223,378 21,716,658
Culture and recreation 26,076,331 19,332,902 - - 26,076,331 19,332,902
Economic development 33,801,755 26,326,989 - - 33,801,755 26,326,989
Interest on long-term debt 5,718,172 4,538,530 - - 5,718,172 4,538,530
Water utility - - 14,788,847 14,902,682 14,788,847 14,902,682
Wastewater utility - - 25,744,139 32,548,087 25,744,139 32,548,087
Civic center - - 5,287,797 5,121,336 5,287,797 5,121,336
Building department - - 4,136,837 3,704,963 4,136,837 3,704,963
Parking - - 1,565,351 1,177,363 1,565,351 1,177,363
Solid waste - - 5,467,986 5,169,128 5,467,986 5,169,128
Emergency medical services - - 8,987,340 8,617,050 8,987,340 8,617,050
Total Expenses 164,683,229 160,322,797 65,978,297 71,240,609 230,661,526 231,563,406
Change in net position
Before transfers 4,472,191 (4,579,966) 12,603,730 4,824,083 17,075,921 244,117
Transfers 5,229,661 4,123,183 (5,229,661) (4,123,183) - -
Change in net position 9,701,852 (456,783) 7,374,069 700,900 17,075,921 244,117
Beginning net position 148,406,297 148,863,080 203,311,391 202,610,491 351,717,688 351,473,571
Ending net position 158,108,149$ 148,406,297$ 210,685,460$ 203,311,391$ 368,793,609$ 351,717,688$
Governmental Activities Business-type Activities Government-wide
--
10
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Governmental Activities
Net position for governmental activities increased by $9,701,852 during fiscal 2018, an increase
of 6.5% from the balance of Net Position at December 31, 2017. Revenue of $169,155,420
increased by $13,412,589, or 8.6%. Expenses were $164,683,229 during 2018, an increase of
$4,360,432, or 2.7% as compared to fiscal 2017.
The governmental activities revenue increases were due primarily to higher property tax and
income tax revenue during 2018 resulting from an increase in assessed property values and an
improving local economy. In addition, the City received several grants and one-time revenues,
including a $4.5 million payment from the Indiana Department of Transportation, meant to help
maintain a portion of a state road in South Bend. Finally, investment revenues increased
dramatically in 2018, spurred by a larger asset pool in the investment portfolio and strong market
performances. Governmental activities expenses increased significantly in 2018, however, were
closer in line with 2015 expenditures due to a decrease in net pension liability and deferrals
in public safety in 2017.
Business-type Activities
Net position from business-type activities increased by $7,374,069 during fiscal 2018, an increase
of 3.6% from the balance of Net Position at December 31, 2017. During 2018, business-type
activities revenue of $78,582,027 increased by $2,517,335, or 3.3%, over fiscal 2017. During
2018, business-type activities expenses of $65,978,297 decreased by $5,262,312, or 7.4%, when
compared to fiscal 2017.
These changes are due primarily to decreased costs in the Wastewater Utility, as well as slightly
higher charges for services.
Financial Analysis of Government Funds
The City of South Bend uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. Funds of the City are divided into three categories:
governmental funds, proprietary funds and fiduciary funds.
11
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Condensed Balance Sheet,
Statement of Revenue, Expenditures, and Changes in Fund Balance
As of December 31, 2018
As of December 31, 2018, the City governmental funds reported a combined ending fund balance
of $233,378,730.
The nonspendable fund balance of $448,002 is sequestered for property held for resale,
inventory, and long-term receivables in the General Fund and inventory in other
funds. It is, therefore, not available for new spending. The restricted fund
balance of $152,809,121 consists of monies in debt service funds or other funds such
as road and tax increment financing funds that are limited by external parties as to their use.
The committed fund balance of $3,209,500 is designated by the South Bend Common Council
or South Bend Redevelopment Commission to be used for certain purposes such as
for economic development projects. The assigned fund balance of $39,528,901
includes balances in local option income tax funds that have not been committed to
certain projects and are available for spending by the City. The remaining unassigned
fund balance of $37,383,206 consists of money in the General Fund that has not been
obligated in any manner by the City less deficits in certain non-major governmental
funds due primarily to interfund advance transactions to finance economic
development projects that will be paid back over time.
The General Fund is the primary operating fund for City operations
including general government, public safety, certain culture and recreation expenses,
and certain debt service obligations.
As of December 31, 2018, the General Fund balance of $38,629,800 represents an
increase of $3,163,540, or 8.2% from the balance as of December 31, 2017. The increase
was due primarily to higher property tax revenue during 2018 than expected and lower
spending for public safety and administration than anticipated.
As of December 31, 2018, the General Fund had an unassigned fund balance of
$37,383,206 which is equal to 53.7% of 2018 General Fund expenditures.
General Parks and Public Safety River West Nonmajor
Fund Recreation LOIT COIT EDIT Rainy Day TIF Funds Total
Total assets 39,838,416$ 8,352,628$ 1,959,261$ 12,458,849$ 15,409,467$ 10,468,726$ 39,206,614$ 116,862,109$ 244,556,070$
Total liabilities 1,208,616 957,167 122,184 823,457 142,947 6,724,841 11,177,340
Fund Balances
Nonspendable 425,680 22,322
1,198,128
448,002
Restricted - 7,373,139 1,837,077 - - - 38,008,486 105,590,419 152,809,121
Committed - - - - - - - 3,209,500 3,209,500
Assigned 820,914 - - 11,635,392 15,266,520 10,468,726 - 39,528,901
Unassigned 37,383,206 - - - - - -
1,337,349
37,383,206
Total fund balances 38,629,800$ 7,395,461$ 1,837,077$ 11,635,392$ 15,266,520$ 10,468,726$ 38,008,486$ 110,137,268$ 233,378,730$
Total liabilities and fund balances 39,838,416 8,352,628 1,959,261 12,458,849 15,409,467 10,468,726 39,206,614 116,862,109 244,556,070
Revenues 66,038,255 13,165,767 8,510,392 12,698,644 12,707,675 187,321 23,222,559 32,624,807 169,155,420
Expenditures 69,653,063 14,640,183 7,553,570 10,102,944 4,351,842 - 18,106,582 61,791,814 186,199,998
Net Surplus (deficit)(3,614,808) (1,474,416) 956,822 2,595,700 8,355,833 187,321 5,115,977 (29,167,007) (17,044,578)
Other sources (uses)6,778,348 2,717,799 - (259,134) (5,976,478) - (4,220,378) 34,151,963 33,192,120
Net Change in Fund Balances 3,163,540 1,243,383 956,822 2,336,566 2,379,355 187,321 895,599 4,984,956 16,147,542
Beginning Fund Balances 35,466,260 6,152,078 880,255 9,298,826 12,887,165 10,281,405 37,112,887 105,152,312 217,231,188
Ending Fund Balances 38,629,800$ 7,395,461$ 1,837,077$ 11,635,392$ 15,266,520$ 10,468,726$ 38,008,486$ 110,137,268$ 233,378,730$
-- -- --
-
-
12
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
The General Fund unassigned fund balance has traditionally been used by the City to fund certain
capital projects and emergency contingencies. In addition, the City used the unassigned fund
balance in 2018 as a cash flow bridge to the receipt of property tax revenues from the County
collection authority which distributes property tax revenue twice per year (June and December).
The General Fund unassigned balance provided sufficient cash to cover City operating obligations
without incurring tax anticipation notes and resultant borrowing costs during fiscal 2018.
As discussed in Governmental Accounting, Auditing, and Financial Reporting (GAAFR), a
General Fund unassigned fund balance should be either 1) no less than 5 to 15 percent of regular
General Fund operating revenues, or 2) no less than one to two months of regular General Fund
operating expenditures. An unassigned fund balance may be higher if circumstances dictate, such
as a delay in collection of a major revenue source. The City has a policy to maintain fund reserves
equal to at least 35% of annual expenditures and exceeded this target at December 31, 2018.
The Parks and Recreation Fund balance increased $1,243,383 during fiscal 2018, due primarily
to the consolidation of several Parks Funds into a single fund, as well as higher than expected
property tax revenue. As of December 31, 2018, the fund balance in the Parks and Recreation
Fund was $7,395,461, or 50.5% of 2018 expenditures. The City has a policy to maintain fund
reserves equal to at least 25% of annual expenditures and exceeded this target at December 31,
2018.
The Public Safety Local Option Income Tax Fund (Public Safety LOIT) was created in October
2009, with the local legislative passage of an increase in local option income taxes of 0.95%, a
part of which (0.25%) tax increase was established to fund public safety expenditures. The City
has established the Public Safety LOIT Fund as a major governmental fund, due solely to its
purpose of creating a funding source to sustain public safety staffing levels, which were
compromised by state implementation of property tax reform that has reduced property tax
revenues, which historically are the source of public safety funding. Public Safety LOIT funds are
used to cover the personnel costs of police officers and firefighters. Receipts of Public Safety
LOIT tax revenue commenced in January 2010. The increase in fund balance in the amount of
$956,822 during 2018 was due to increased revenue for this fund for police and fire personnel.
The ending fund balance was $1,837,077, or 24.3% of annual expenditures.
The County Option Income Tax Fund (COIT) and Economic Development Income Tax Fund
(EDIT) funds are used to fund major capital and construction projects, economic development
initiatives, certain subsidies and support to organizations and units that benefit city economic
development and cultural venues, certain city-wide expenditures such as major technology costs,
and certain debt service payments.
The COIT fund balance increased by $2,336,566 during 2018, due to one-time capital projects
and prior year encumbrances. The City has operationally sequestered COIT funds for use in
major capital and construction funding initiatives, certain subsidies and support to organizations
and units that benefit city economic development and cultural venues, city-wide expenditures like
telephone and electricity for street lights, and certain debt service payments.
As of December 31, 2018, the COIT Fund balance was $11,635,392, or 115.2% of 2018
expenditures and transfers out. This level of fund reserves is significantly higher than the City
policy target of 50%.
13
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
The EDIT Fund balance increased by $2,379,355 during 2018 due to lower than
anticipated expenses related to initiatives of the Department of Community Investment. The City
has operationally sequestered EDIT funds for use in major economic development initiatives,
certain subsidies and support to organizations and units that benefit city economic
development and cultural venues, operational costs of the street, code enforcement and
community investment departments and certain debt service payments.
As of December 31, 2018, the EDIT fund balance was $15,266,520, or 350.8% of 2018
expenditures and transfers out. The City policy target is 50%.
The Rainy Day Fund is used to account for unused and unencumbered funds that are transferred
from a fund that has a tax levy. Revenues in this fund also include special distributions of county
option income tax and county economic development income tax. The ending fund balance at
December 31, 2018 was $10,468,726 or 4.5% of government-wide expenses during 2018, and
meets the City’s cash reserve policy goal of 3%.
The fund balance in the River West TIF Fund increased by $895,599 during 2018. This change
was the result of higher than expected TIF revenue in this fund.
As of December 31, 2018, the River West TIF Fund balance of $38,008,486. This fund continues
to be a major success for the City of South Bend.
During 2018, the fund balances in non-major governmental funds increased by $4,984,956
due primarily to large one-time payments that the City received in 2018 and do not expect to
continue in the future.
The total balance in non-major governmental funds was $110,137,268 at December 31, 2018.
These fund balances provide the necessary resources that the City requires to meet future
capital construction needs, ongoing debt service obligations, and economic development
project initiatives in order to fuel community growth within the City.
Individual fund data for each of the non-major governmental funds is provided in the form of
the combining statements immediately following the Required Supplemental Information
within the Financial Section of the CAFR.
Governmental Fund Revenue
The following schedule presents a summary of governmental fund revenue for the year ended
December 31, 2018 with comparison to the prior year:
14
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Tax revenue continues to represent the most significant source of revenue required to support
services provided by the City. Property tax revenue is the primary source of funding for
governmental expenditures. Property tax revenue is based on a relationship between two
variables. The first variable is the net assessed property valuation of industrial, commercial and
residential parcels for both real and personal property. The second variable is the application of
a tax rate to arrive at the total tax levy. Taxable property is assessed at 100% of the true tax value.
The amount of property tax levied (billed to property owners) is further restricted by State of
Indiana-enacted property tax legislative reform, the so-called “circuit breaker” property tax caps
in 2009, to no more than 1.0% (homestead), 2.0% (other residential/rental) or 3.0%
(commercial/industrial) of gross assessed valuation. Property tax revenue includes taxes
collected on behalf of the following funds: General Fund, Parks and Recreation Fund,
Cumulative Capital Development Fund, Redevelopment Commission tax increment financing
(TIF) Funds, Excess Levy Fund, and a special levy to cover debt service related to the City's
MySB Parks and Trails projects.
The City recognizes the need to further diversify the revenue stream and to reduce its
dependency on general property taxes to ensure that a broad base of users of city
services, including nonresidents who work in the City, share in the funding of basic City
services. As a result of the need to diversify the revenue stream, the City of South Bend
Common Council and Saint Joseph County Council adopted an additional local option income tax of 0.95% during 2009, increasing the tax rate from 0.8% to 1.75%. The local option
income tax increase consisted of three components: 0.2% increase in the economic
development income tax, a 0.25% public safety local option income tax and a 0.5% property tax relief local option income tax. The property tax relief local option income tax does not result in
any direct revenue to the City but helps to reduce circuit breaker property tax losses.
The City continues to seek diversified sources of revenue that will reduce its reliance on property and income taxes. The City has supported efforts of the Accelerating Indiana
Municipalities (AIM) “Hometown Matters” to lobby the state legislature to enable alternative revenue sources that best fit the needs of the community. One viable source of revenue is from
user fees and/or charges for services currently being performed. City-performed services are
priced at levels representing the full cost of service, taking into consideration fees charged by
providers of similar services. The City performs ongoing reviews of user fee costs incurred
2018 Actual % of Total 2017 Actual % of Total
Tax Based
80,155,902$ 47.4% 78,266,107$ 50.3%General property
Local income tax
Hotel/motel tax
32,911,525 19.5%28,179,750 18.1%
Professional sports development - 0.0%347,255 0.2%
Total Tax 113,683,864 67.2% 106,793,112 68.6%
Non-Tax Based
Licenses and permits 245,956 0.1%231,260 0.1%
Intergovernmental 35,167,863 20.8% 29,634,896 19.0%
Charges for services 5,735,251 3.4%7,020,575 4.5%
Fines and forfeitures 494,836 0.3%562,466 0.4%
Interest income 3,304,646 2.0%1,687,888 1.1%
Other 10,523,004 6.2%9,812,634 6.3%
Total Non-Tax Based 55,471,556 32.8% 48,949,719 31.4%
Total Revenue 169,155,420$ 100.0% 155,742,831$ 100.0%
-0.0%616,437 0.3%
15
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
and revises service fee prices as required.
Total tax revenue was $113,683,864 during 2018 and increased by $6,890,752, or 6.4%, from 2017. This increase was driven by an increase in normal tax distributions due to the continuing
improvement in the overall economy as well as a one-time distribution in Local Income
Tax revenue that occurred in 2018. Total non-tax based revenue was $55,471,556 and increased $6,521,837, or 13.3%, from 2017. This is due primarily to an increase in
intergovernmental revenue from charging administrative allocations to operational departments.
Governmental Fund Expenditures
The City accounts for government fund expenditures in eight functional categories as follows: (1)
general government, (2) public safety, (3) highways and streets, (4) community and
economic development, (5) culture and recreation, (6) bond issuance costs (7) debt service, and
(8) capital outlay.
The following schedule presents a summary of governmental fund expenditures for the year
ended December 31, 2018, with comparison to fiscal year 2017.
Government fund expenditures in fiscal 2018 of $186,199,998 increased by $11,657,761, or
6.7%, in comparison to government fund expenditures in fiscal 2017.
Capital outlay expenditures increased by $6,204,976 or 36.4% during 2018 due primarily to
increased expenditures in the River West TIF. Additionally, the City kicked off its “MySB
Parks and Trails” initiative in 2018, which represents a significant capital investment in the City’s
parks, and will continue into 2019.
Public safety expenditures continue to be the primary use of government fund resources with
40.6% of expenditures used for this purpose in fiscal 2018. Public safety spending is followed by
capital outlay expenditures (12.5%), community and economic development (11.9%), debt
service (10.2%), highways and streets (9.1%), culture and recreation (8.9%), and general
government (6.9%). General government spending is comprised of the executive offices of
the Mayor, Common Council, City Clerk, Legal Department, Administration and Finance
Department, and other administrative functions. Overall governmental expenditures increased
during 2018, in part due to increases in public safety wages and benefits occurring in
conjunction with a four-year collective bargaining agreement with the fraternal order of police.
General governmental expenditures decreased during 2018 due to the transfer of technology
costs to an internal service fund.
2018 Actual % of Total 2017 Actual % of Total
General government 12,763,226$ 6.9%14,221,015$ 8.1%
Public safety 75,530,051 40.6%72,010,182 41.3%
Highways and streets 16,906,126 9.1%13,600,140 7.8%
Community and economic development 22,179,273 11.9%20,622,330 11.8%
Culture and recreation 16,597,764 8.9%15,904,306 9.1%
Debt service 18,983,039 10.2%21,148,721 12.1%
Capital outlay 23,240,519 12.5%17,035,543 9.8%
Total Expenditures 186,199,998$ 100.0%174,542,237$ 100.0%
16
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Proprietary funds
Condensed Statement of Net Position
Revenue, Expenses, and Changes in Fund Net Position
As of December 31, 2018
The City maintains two types of proprietary funds: enterprise and internal service.
The City maintains seven (7) enterprise funds. Information is presented separately in the
Proprietary Statement of Net Position, the Proprietary Statement of Revenues and Expenditures,
and Changes in Fund Net Position for the Water Utility, Wastewater Utility and Century Center,
which are considered major enterprise funds. Data from the other four (4) non-major enterprise
funds (Consolidated Building Department, Parking Garage, Solid Waste, and Emergency Medical
Services) are combined into a single, aggregated presentation.
The City maintains seven (7) internal service funds. The City uses internal service funds to
account for its self-funded liability insurance program, self-funded employee health benefits
program, unemployment compensation claims, police take-home vehicle insurance program,
Governmental
Activities
Wastewater Nonmajor Proprietary
Water Utility Utility Century Center Enterprise Total Enterprise Internal Service
Total assets $ 69,762,293 $ 193,216,274 19,735,573$ 26,843,623$ 309,557,763$ 24,247,609$
Total deferred outflows 78,870 1,670,947 - - 1,749,817 -
Total liabilities 19,631,428 69,726,504 302,300 10,913,971 100,574,203 5,686,800
Total deferred inflows - - 47,917 - 47,917 -
Net Position
Net investment in capital assets 37,134,241 86,894,283 17,034,295 4,900,525 145,963,344 1,252,541
Restricted:-
Depreciation fund - - - - - -
Debt service fund 1,726,068 963,678 - - 2,689,746 -
Customer repair and deposit fund 1,503,325 2,014,803 - - 3,518,128 -
Cash with fiscal agent 32,903 77,844 - 126,758 237,505 -
Bond reserve fund 1,390,019 4,204,246 - -5,594,265 -
Operating reserve fund 2,663,671 5,385,946 - -8,049,617 -
Capital outlay fund 1,888,226 9,100,782 857,363 2,001,063 13,847,434 -
Unrestricted 3,871,282 16,519,135 1,493,698 8,901,306 30,785,421 17,308,268
Total net position 50,209,735$ 125,160,717$ 19,385,356$ 15,929,652$ 210,685,460$ 18,560,809$
Operating revenues 16,767,283 39,931,429 3,258,017 15,567,113 75,523,842 36,587,847
Operating expenses 13,778,933 23,555,202 5,287,797 18,762,236 61,384,168 35,500,644
Operating income (loss)2,988,350 16,376,227 (2,029,780) (3,195,123) 14,139,674 1,087,203
Non-operating revenue (expenses)(791,589) (1,507,132) 1,277,020 (1,179,084) (2,200,785) 324,570
Income (loss) before contributions and
transfers 2,196,761 14,869,095 (752,760) (4,374,207) 11,938,889 1,411,773
Capital contributions 386,729 - 278,112 - 664,841 -
Transfers in - 368,196 - 1,069,457 1,437,653 -
Transfers Out (1,730,831) (4,601,656) (85,909) (248,918) (6,667,314) (439,139)
Change in net position 852,659 10,635,635 (560,557) (3,553,668) 7,374,069 972,634
Total net position - beginning 49,357,076 114,525,082 19,945,913 19,483,320 203,311,391 17,588,175
Total net position - ending 50,209,735$ 125,160,717$ 19,385,356$ 15,929,652$ 210,685,460$ 18,560,809$
Enterprise Funds
17
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Innovation & Technology and 311 call center, parental leave benefit for City employees,
and central services unit (a department that accounts for expenses related to fuel, vehicle
repairs, printing and other services provided to City departments on a cost-reimbursement
basis). Because these services predominantly benefit governmental rather than business-
type functions, they have been included within governmental activities in the government-wide
financial statements but are combined into a single, aggregated presentation in the proprietary
fund financial statements.
As of December 31, 2018, City enterprise funds reported a net position of $210,685,460, an
increase of $7,374,069, or 3.6%, from the net position at December 31, 2017.
At December 31, 2018, proprietary fund net position includes net investment in capital assets of
$145,963,344, restricted net position of $33,936,695 and unrestricted net position of
$30,785,421.
During 2018, the water utility experienced an increase in net position of $852,659 and the
wastewater utility experienced an increase in net position of $10,635,635. The Water utility
experienced increased operating revenues of $1,483,958 while the Wastewater utility
experienced an increase in operating revenue of $1,137,217. This was primarily due to a 22%
rate increase in water rates that was approved by the South Bend Common Council in 2017 and
went into effect in 2018.
During 2018, Century Center experienced a decrease in net position of $560,557. The Century
Center is nearly always operating at a slight loss, and this decrease in net position was
smaller than in previous years and better than projected.
Non-major enterprise funds experienced a decrease in net position of $3,553,668 during
2018. The Parking Garage Fund reported a decrease in net position of $218,330 primarily as
the result of higher than expected maintenance costs. The Consolidated Building Fund reported
a decrease in net position of $1,000,340 during 2018 as the result of unreimbursed activity
by the Code Enforcement department in this fund. The Solid Waste Fund reported a decrease
in net position of $11,923 and continues to accumulate capital lease debt to finance
new trash trucks. Emergency Medical Service reported a decrease in net position of
$2,323,075 as a result of continually declining reimbursement for ambulance services,
especially with respect to Medicaid patients.
Internal service funds reported net position of $18,560,809 at December 31, 2018, an
increase of $972,634, or 5.5%, compared to net position at December 31, 2017. The
Liability Insurance Fund decreased its net position by $1,886,271 in 2018 as the result of
relatively high worker’s compensation claims. The Central Services Fund decreased its
net position by $277,196. The Self-Funded Employee Benefits Fund had an increase in
its net position of $2,123,148 due to modest growth in medical insurance claims relative to
employer charges per full-time equivalent (FTE). In January 2016, the City opened the Activate
Health and Wellness Center for the benefit of employees and their families and to control future
health care cost increases. The Innovation & Technology and 311 Call Center fund is a
fully allocated fund which supports most city departments. The Innovation & Technology
and 311 Call Center Fund had a net position of $2,304,183 at December 31, 2018, an
increase of $981,145 over the end of 2017.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. The City maintains six fiduciary funds, which consist of two pension trust funds
18
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
(1925 Police Officers’ Pension and 1937 Firefighters’ Pension), two private-purpose trust
funds (City Cemetery and Bowman Cemetery) and three agency funds (Payroll, Police
Distributions Payable and Morris/Palais Royale Box Office).
Effective in fiscal 2009, with the passage of State legislation, the State of Indiana began making
contributions to the 1925 Police Officers’ and 1937 Firefighters’ Pension Funds. These funds
no longer receive property tax revenue distributions beyond fiscal 2009. The administration of the
pension plans is the responsibility of the City.
The net position maintained in the pension trust is the result of timing differences in the payment
of pension benefits and the contributions received from the State of Indiana (the State reimburses
in June and September for expenses paid in the previous calendar year). The cost of healthcare
benefits to pension members are not covered by State contributions. In 2016, the regular Fire
Department budget paid retiree health care costs while this change occurred in 2017 for the Police
Department. The 1925 Police Officers’ and 1937 Firefighters’ pension funds will no longer
pay retiree health insurance costs; these costs will be paid from the regular police and fire
departments' operating budgets.
General Fund Budgetary Highlights
The City prepares an annual budget for General Fund expenditures, which is subject to City of
South Bend Common Council approval for adoption, before November 1 of the year preceding
the budget period, according to state statute concerning the annual budget of second class cities
and towns. The Common Council adopted the 2018 budget at its meeting held in October 2017.
The General Fund budget applicable for fiscal 2018 is reported as follows:
Private Purpose
Pension Trust Trust Agency
Total assets 1,265,530$ 485,158$ 3,389,966$
Total liabilities 793 - 3,389,966
Total net position 1,264,737$ 485,158$ -$
Total additions 10,734,007 31,889 -
Total deductions 10,820,844 - -
Changes in net position (86,837)$ 31,889$ -$
Actual
Budgetary
Original Final Basis Variance
Revenue / transfers in 60,006,889$ 62,738,612$ 62,146,619$ (591,993)$
Expenditures / transfers out 59,917,756 62,100,216 59,453,858 2,646,358$
Surplus (Deficit)89,133$ 638,396$ 2,692,761$ 2,054,365$
19
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
General Fund revenue/transfers in was originally budgeted at $60,006,889 for fiscal 2018. During
the year, the General Fund revenue/transfers in budget was increased by $2,731,723 to
$62,738,612. The budget may be increased or decreased at any time based on updated
revenue projections. The revenue/transfers in budget was increased primarily due to an
increase in the property tax estimate because of higher collections than anticipated.
During 2018, the General Fund collected $62,146,619 in revenue/transfers in on a
budgetary basis, which was $2,139,730 higher than the original budget. This difference is 3.6%
more than the original budget. This increase over budget is due mainly to higher than
budgeted property tax receipts in 2018.
General Fund expenditures/transfers out were originally budgeted at $59,917,756 for fiscal
2018. During the year, the General Fund expenditure/transfers out budgets were
increased by $2,182,460 to $62,100,216. Additional appropriations were passed for
Fire Department equipment and other purposes. Carry forward of unspent
encumbrances from 2017 also increased the 2018 amended budget.
General Fund spending is reviewed on a monthly basis under the direction of the City Controller
to ensure spending remains within budgetary constraints. Monthly reviews are conducted as
required with General Fund department management to review spending projections to ensure
that annual expenditures remain within the budgetary levels. Budget amendments for cost-neutral
redistribution between expense categories (i.e., personnel, supplies, services, capital) were
submitted to Common Council four times during 2018, as required to adjust the budget to prevent
any budget overruns in any expenditure category.
Additional appropriations for projects, initiatives, or unbudgeted spending requirements within the
General Fund are presented to the Common Council for adoption as deemed necessary by the
Mayor.
General Fund expenditures/transfers out incurred on a budgetary basis, including cash expended
and outstanding encumbrances as of year-end December 31, 2018, amounted to $59,453,858.
The expenditures/transfers out and commitments as of year-end December 31, 2018, are
less than the 2018 amended General Fund budget by $2,646,358 or 4.26%. The largest savings
were in the police and administration/finance department budgets as personnel and other costs
spent were less than budgeted due to position vacancies and other factors.
20
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Capital Assets and Debt Administration
Statement of Capital Assets
The investment in capital assets includes land and land improvements, buildings and building
improvements, vehicles, information technology equipment, machinery and equipment, and
construction in progress. A detailed explanation of these capital assets can be found in the
Notes to the Financial Statements.
Under the category of roads and infrastructure, the current cost amount of $685,230,098
includes estimated costs derived primarily from the City’s 2006 implementation of GASB
Statement No. 34, which required the retroactive reporting of infrastructure capital assets. All
other assets are recorded at historical cost.
Major Capital Asset Project Spending in 2018
Included in capital asset additions for 2018 were the following major projects:
•Infrastructure - $21,563,272 – Smart Streets
•Infrastructure - $5,387,030 – Western Ave & Olive St. intersection, Edison and Ironwood
corridor rehabilitation
•Wastewater & Sewers - $6,533,100 – East Bank sewer separation – Phase 5
•Fire Department - $1,092,741 – 2 fire trucks and several additional vehicles
•Parks Department - $781,992– Century Center cooling tower, several large vehicle
purchases (boom truck, 2 dump trucks, and several smaller vehicles)
•Street Department - $435,000 – asphalt milling machine (Wirtgen W150CFI)
2018 2017 2018 2017 2018 2017
Assets not depreciated
Land 14,496,141$ 14,707,088$ 2,614,014$ 2,614,014$ 17,110,155$ 17,321,102$
Construction in progress 18,009,789 29,957,697 17,841,033 21,254,911 35,850,822 51,212,608
Total 32,505,930 44,664,785 20,455,047 23,868,925 52,960,977 68,533,710
Assets depreciated
Buildings 120,384,084 125,886,853 83,425,676 83,233,461 203,809,760 209,120,314
Non-building improvements 21,052,069 21,519,259 26,873,450 27,939,323 47,925,519 49,458,582
Machinery and equipment 48,608,151 47,094,150 43,574,154 42,205,000 92,182,305 89,299,150
Roads and Infrastructure 468,753,379 441,344,575 216,476,719 210,301,608 685,230,098 651,646,183
Total cost 658,797,683 635,844,837 370,349,999 363,679,392 1,029,147,682 999,524,229
Accumulated depreciation
Buildings 52,451,586 52,675,177 38,629,055 36,878,587 91,080,641 89,553,764
Non-building improvements 10,967,455 10,713,373 8,608,656 8,436,276 19,576,111 19,149,649
Machinery and equipment 33,842,342 33,644,985 25,771,251 23,955,240 59,613,593 57,600,225
Roads and infrastructure 327,964,417 315,697,141 79,317,195 74,484,727 407,281,612 390,181,868
Total accumulated depreciation 425,225,800 412,730,676 152,326,157 143,754,830 577,551,957 556,485,506
Net depreciated assets 233,571,883 223,114,161 218,023,842 219,924,562 451,595,725 443,038,723
Net capital assets 266,077,813$ 267,778,946$ 238,478,889$ 243,793,487$ 504,556,702$ 511,572,433$
Governmental Activities Business-type Activities Government-wide
21
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
Capital Assets Analysis
As of December 31, 2018, government-wide capital assets were valued at $504,556,702, net of
accumulated depreciation, a decrease of $7,015,731, or 1.37%, since December 31, 2017.
Construction in progress decreased by $15,361,786, and capitalized assets in land, buildings,
improvements, machinery and equipment, and roads increased by $8,346,055, net of
depreciation, since December 31, 2017. On January 1, 2013, the City instituted a new
capitalization policy that included significantly higher thresholds for expenditures to qualify as
capital assets. Consequently, many purchases formerly considered as capital assets no longer
qualify as such. The asset decrease is the result of fewer assets being added to the register as
those assets that remain continue to depreciate.
At December 31, 2018, the cost of roads & infrastructure ($685,230,098) was the major asset
class followed by buildings ($203,809,760) and machinery & equipment ($92,182,305).
Total depreciation expense was $31,715,747 for 2018, as compared to $31,452,259 for 2017.
Depreciation expense was $19,656,335 for governmental activities and $12,059,412 for
business-type activities for 2018.
Additional information on capital assets can be found in the notes to the financial statements in
Note 6.
Debt Administration
Outstanding debt principal as of December 31, 2018, was $259,820,000, an increase
of $7,063,006, or 2.8% from 2017. City outstanding debt includes general obligation bonds,
revenue bonds, mortgage bonds, notes and loans payable and capital leases.
Beginning Additions Retirements Ending
Governmental activities
General obligation bonds 14,081,478$ 5,082,316$ (426,149)$ 18,737,645$
Revenue bonds 111,887,531 15,877,292 (7,280,910) 120,483,913
Mortgage bonds 10,224,972 -(1,924,118) 8,300,854
Notes and loans 4,437,115 -(328,293) 4,108,822
Capital leases 9,795,612 6,759,121 (3,722,538) 12,832,195
Total governmental activities debt 150,426,708 27,718,729 (13,682,008) 164,463,429
Business-type activities
General obligation bonds - - - -
Revenue bonds 87,219,814 -(7,041,710) 80,178,104
Mortgage bonds 5,255,483 -(303,504) 4,951,979
Notes and loans 2,398,821 -(167,038) 2,231,783
Capital leases 7,456,168 2,866,214 (2,327,677) 7,994,705
Total business-type activities debt 102,330,286 2,866,214 (9,839,929) 95,356,571
Total Debt 252,756,994$ 30,584,943$ (23,521,937)$ 259,820,000$
22
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
During 2018, the City entered into capital lease agreements in the amount of $9,625,335 to
purchase certain vehicles, copiers, and equipment. The lease terms are typically for five years
with semi-annual debt service paid from the operating budgets of the user departments. Capital
lease financing is used to acquire police vehicles, public works vehicles, computer replacements,
copiers and other vehicles and equipment. The City solicits competitive financing proposals for
lease financing from local and national companies and the interest rate achieved during 2018 was
on average less than 2% for these leases.
Under the Indiana Constitution and the Indiana Code, the City's general obligation bonded
debt and certain other debt is subject to a legal limitation based upon 2% of total assessed
value of real and personal property. The City issued a general obligation bond in 2018
related to the construction of Fire Station #9 on the east side of the City and an additional
building at the Fire Training Center. This debt issuance of $5,045,000 is subject to this debt
limitation. A calculation of the City’s legal debt limitation can be found in the statistical debt
capacity section of this document.
Additional information on debt can be found in the Notes to Financial Statements in Note 8 -
Leases and Note 9 - Long-term Debt.
Significant Subsequent Events
On January 14, 2019, the Common Council of the City of South Bend approved a $2 per
month fee to increase sewer bills, with the intention to speed implementation of the City’s
stormwater system.
On February 28, 2012, the City, the United States of America, and the State of Indiana, agreed
to a consent decree to resolve claims against the City for alleged violations of the Clean Water
Act. The decree includes several provisions, including a long term control plan that requires the
City to complete a construction program by December 31, 2031 at a cost of approximately
$509.5 million in 2007 dollars to comprehensively upgrade and expand the City's sewage
collection, storage, conveyance, and treatment system. Under this agreement South Bend was
required to undertake a review of the Plan after 5 years and this review was completed in 2017.
The review resulted in a revised plan that calls for a reduced investment of $200 million in 2017
dollars. The plan will meet the same environmental goals and will still run to 2031. South Bend
is currently working with State and Federal environmental regulators to have this new more cost
efficient plan formally endorsed.
Economic Factors and 2018 Budget
Economic Factors
Property tax revenue, historically and at present, is the principal source of revenue for funding of
governmental activities within the City.
The State of Indiana General Assembly enacted property tax reform legislation in March 2008.
Known as the “Circuit Breaker”, House Enrolled Act 1001 (HEA 1001) limits property taxes paid
to 1% of gross assessed value for residential homesteads, 2% for agricultural/rental properties,
and 3% for all other real and personal property.
Under current legislation, all Indiana localities assess properties based on market values. Each
year properties are “trended”, which involves comparing property values to sales activity in
the neighborhood and adjusting the current assessed values up or down according to the
trended data.
23
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
The Circuit Breaker legislation was phased in commencing in fiscal 2009 and has led to
significant reductions in property tax revenues available to fund city governmental operations
since then. In 2018, the primary funds supported by property taxes (General Fund, Parks and
Recreation Fund, and Cumulative Capital Development Fund) lost approximately $33.9 million
in taxable property tax levy due to the circuit breaker caps (Indiana Legislative Services Agency,
Circuit Breaker Report, December 2018).
As a consequence of the state enacted legislation in 2008, the City enacted a 0.95% local
option income tax increase to partially offset the property tax revenue loss. The local option tax
increase became effective in October 2009, and has resulted in an increase in local income
taxes available to the City to fund ongoing governmental operations of public safety, parks
and recreation, highways and streets and general government.
Management of the City of South Bend will continue to oversee the financial affairs from a
position of fiscal conservatism. Special attention will be given to maintaining adequate fund
reserves in the General Fund and the income tax funds as they are very important to the
continued financial strength of the City.
City Management believes that the national economic recovery will continue for at least the next
year, with low inflation over the next fiscal period. However, the City anticipates that the
economy will slow sometime in the next 2-5 years, and is actively taking steps to alleviate
negative impacts of an economic downturn (such as building cash reserves
and implementing sustainable alternative revenue sources).
Job creation is the primary engine to drive economic recovery, and the Congressional Budget
Office (CBO) predicts a growth in Gross Domestic Product (GDP) of 2.1% for 2019. Notably, this
is down from a GDP growth rate of 3.1% in 2018. The unemployment rate in the South
Bend-Mishawaka Metropolitan Area continues to improve and was 3.7% in November 2018,
down from a high of 13.0% in January 2010 (Bureau of Labor Statistics).
2019 Budget and Beyond
The City will engage to ensure effective delivery of required services to taxpayers and residents
within the constraints of available financial resources. The City will continue to provide required
services within the constraints of a balanced General Fund budget. In the spirit of
fiscal responsibility, the City has engaged in a process of program budgeting for the 2018 and
2019 budgets. This program budgeting is in addition to the state-required fund and
account budgeting through the Indiana Department of Local Government Finance.
The City’s fiscal responsibility is also preparing it for significant financial challenges in fiscal
year 2020. Preliminary projections of circuit breaker property tax losses indicate a potential
decline of property tax revenue of $1.6 million in the General Fund, $400,000 in the Parks &
Recreation Fund and $3.8 million in the tax increment financing funds in fiscal year 2020. This is
due to the expiration of a special credit to local governments in Saint Joseph County and Lake
County, which decreased the losses that the City experienced through the Circuit Breaker
tax credit. City Management is aware of this fiscal situation and is developing strategies to
address this matter, including maintaining strong reserves, redesigning capital budgeting
strategies, and ensuring that new spending is supported by new, sustainable revenue.
Through its Office of Innovation, the City continues to pursue reengineering programs targeted
to create efficiency and cost improvements within City operations. These include
purchasing process reengineering, back-office process improvements for human resources,
24
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
performance management and other customer service operations. These initiatives, upon
successful deployment completion, will achieve the desired results to create efficiency gains in
the delivery of services to taxpayers.
The City is committed to creating a budget for fiscal 2020 that will remain fiscally responsible to
the effective delivery of required services to city residents and stakeholders within the
existing revenue constraints. Specific concerns for the 2020 budget include the continuing
impact of circuit breaker property tax reform on City revenue, high health and pension costs and
other stagnant or declining revenue sources such as gasoline, wheel and auto excise taxes.
Requests for Information
This Management’s Discussion and Analysis, as contained within the City of South
Bend Comprehensive Annual Financial Report, is intended to provide readers with a general
overview of the financial condition of the City of South Bend as of December 31, 2018.
Questions concerning any of the information provided in this report, or requests for additional
information, should be addressed to:
Daniel T. Parker, Controller
City of South Bend
Department of Administration and Finance
227 W. Jefferson Blvd., 12th Floor
South Bend, IN 46601
Telephone (574) 235-9822
Email dparker@southbendin.gov
City of South Bend
June 30, 2019
25
City of South Bend, Indiana
Governmental Business-type
Activities Activities Total
Assets
Cash and cash equivalents 96,796,549$ 10,818,469$ 107,615,018$
Investments 145,631,847 18,540,232 164,172,079
Receivables:
Taxes 133,911 - 133,911
Accounts 552,933 5,462,751 6,015,684
Interest 599,908 157,940 757,848
Allowance for doubtful accounts - (160,100) (160,100)
Intergovernmental 778,441 - 778,441
Loans 6,878,545 - 6,878,545
Internal balances (21,255) 21,255 -
Inventory 892,939 1,152,358 2,045,297
Prepaid expenses 855,683 38,944 894,627
Restricted assets 457,020 35,027,906 35,484,926
Property held for resale 10,023,045 - 10,023,045
Net pension asset 3,021,911 - 3,021,911
Capital assets:
Assets not subject to depreciation 32,505,930 20,455,046 52,960,976
Assets subject to depreciation - net 233,571,883 218,023,841 451,595,724
Total assets 532,679,290 309,538,642 842,217,932
Deferred outflows of resources
Unamortized loss on refunding 1,976,132 1,749,817 3,725,949
Deferred outflows related to pensions 12,578,380 - 12,578,380
Deferred outflows related to OPEB 1,367,265 - 1,367,265
Total deferred outflows of resources 15,921,777 1,749,817 17,671,594
Liabilities
Accounts payable 6,652,043 1,671,596 8,323,639
Due to other governmental units - 8,588 8,588
Performance deposits payable 101,175 8,250 109,425
Accrued liabilities and other:
Accrued payroll payable 1,466,353 452,792 1,919,145
Accrued interest payable 23,312 551,161 574,473
Taxes payable 652 - 652
Customer deposits payable - 1,605,639 1,605,639
Unearned revenue - 402 402
Other current payables 81,002 194,709 275,711
Noncurrent liabilities:
Due within one year:
Accrued interest payable from restricted a 2,159,774 - 2,159,774
Compensated absences 6,316,138 705,374 7,021,512
Claims payable 3,058,641 - 3,058,641
Notes and loans payable 347,671 215,694 563,365
General obligation bonds payable 940,000 - 940,000
Mortgage bonds payable 1,864,355 310,645 2,175,000
Capital leases 3,813,983 2,415,533 6,229,516
Revenue bonds payable 7,338,538 8,635,000 15,973,538
Statement of Net Position
December 31, 2018
See notes to financial statements.26
City of South Bend, Indiana
Governmental Business-type
Activities Activities Total
Liabilities (continued)
Due in more than one year:
3,761,151$ 2,016,089$ 5,777,240$
17,797,645 - 17,797,645
6,436,499 4,641,334 11,077,833
9,018,211 5,579,172 14,597,383
163,536,593 - 163,536,593
23,206,087 - 23,206,087
Notes and loans payable
General obligation bonds payable
Mortgage bonds payable
Capital leases
Net pension liability
Total OPEB liability
Revenue bonds payable 113,145,375 71,543,104 184,688,479
Total liabilities 371,065,198 100,555,082 471,620,280
Deferred inflows of resources
Unamortized service agreement - 47,917 47,917
Deferred inflows related to pensions 11,431,450 - 11,431,450
Deferred inflows related to OPEB 7,996,270 - 7,996,270
Total deferred inflows of resources 19,427,720 47,917 19,475,637
Net position
Net investment in capital assets 143,282,487 145,963,344 289,245,831
Restricted:
Debt service fund 6,952,713 2,689,746 9,642,459
Customer repair and deposit fund - 3,518,128 3,518,128
Cash with fiscal agent - 237,505 237,505
Bond reserve fund 4,299,815 5,594,265 9,894,080
Operating reserve fund - 8,049,617 8,049,617
Capital outlay fund - 13,847,434 13,847,434
Unrestricted 3,573,134 30,785,421 34,358,555
Total net position 158,108,149$ 210,685,460$ 368,793,609$
Statement of Net Position (Continued)
December 31, 2018
See notes to financial statements.27
City of South Bend, Indiana
Operating Capital Grants
Charges for Grants and and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total
Functions/programs
Primary government:
Governmental activities:
General government 12,654,430$ 718,155$ 82,894$ -$ (11,853,381)$ -$ (11,853,381)$
Public safety 69,209,163 702,977 10,800,837 - (57,705,349) - (57,705,349)
Highways and streets 17,223,378 - 10,064,913 4,100,000 (3,058,465) - (3,058,465)
Community and economic
development 33,801,755 698,252 3,840,926 - (29,262,577) - (29,262,577)
Culture and recreation 26,076,331 4,356,659 1,459,168 - (20,260,504) - (20,260,504)
Interest on long-term debt 5,718,172 - -- (5,718,172) - (5,718,172)
Total governmental activities 164,683,229 6,476,043 26,248,738 4,100,000 (127,858,448) - (127,858,448)
Business-type activities:
Water utility 14,788,847 17,183,460 - - - 2,394,613 2,394,613
Wastewater utility 25,744,139 39,931,429 - - - 14,187,290 14,187,290
Century center 5,287,797 3,258,017 278,112 - - (1,751,668) (1,751,668)
Consolidated building 4,136,837 2,044,582 - - - (2,092,255) (2,092,255)
Parking garage 1,565,351 1,323,524 - - - (241,827) (241,827)
Solid waste 5,467,986 5,471,364 - - - 3,378 3,378
Emergency medical services 8,987,340 6,727,643 - -- (2,259,697) (2,259,697)
Total business-type activities 65,978,297 75,940,019 278,112 - - 10,239,834 10,239,834
Total primary government 230,661,526$ 82,416,062$ $ 4,100,000 26,526,850 $ (127,858,448) 10,239,834 (117,618,614)
General revenue:
Taxes:
Property taxes 80,155,902
Income taxes 32,911,525
Hotel/motel taxes 616,437
80,155,902
32,911,525
Unrestricted state-shared revenue:- - -
State-shared revenue 4,819,125 - 4,819,125
Unrestricted investment income 3,304,646 1,088,896 4,393,542
Gain on sale of capital assets - - -
Other miscellaneous income 10,523,004 - 10,523,004
Total general revenue 132,330,639 2,363,896 134,694,535
Transfers 5,229,661 (5,229,661) -
Change in Net Position 9,701,852 7,374,069 17,075,921
Net Position - Beginning of year (restated)148,406,297 203,311,391 351,717,688
Net Position - End of year 158,108,149$ 210,685,460$ 368,793,609$
Statement of Activities
Year Ended December 31, 2018
Primary Government
Net Position
Net (Expense) Revenue and Changes in
Program Revenue
See notes to financial statements.
-
-
1,275,000 1,891,437
28
City of South Bend, Indiana
Parks and Public Safety
General Fund Recreation LOIT COIT EDIT
Assets
Cash and cash equivalents 13,043,827$ 2,807,237$ 653,125$ 3,934,490$ 5,046,473$
Investments 25,811,080 5,471,022 1,300,817 7,836,252 10,050,968
Receivables:
Taxes - - - - -
Accounts 316,634 30,546 - - -
Interest 102,128 21,501 5,319 32,854 42,025
Intergovernmental 117,234 - - - -
Loans - - - - -
Due from other funds 21,833 - - - -
Advances to other funds 425,680 - - 480,253 -
Inventory - 22,322 - - -
Property held for resale - - - 175,000 270,001
Restricted assets - -- --
Total assets 39,838,416$ 8,352,628$ 1,959,261$ 12,458,849$ 15,409,467$
Liabilities
Accounts payable 115,530$ 816,108$ -$ 823,457$ 136,947$
Due to other funds 12,908 7,132 - - -
Advances from other funds - - - - -
Performance deposits payable 70,650 - - - 6,000
Accrued liabilities and other:
Accrued payroll payable 990,701 130,362 122,184 - -
Taxes payable 652 - - - -
Other current payables 18,175 3,565 - --
Total liabilities 1,208,616 957,167 122,184 823,457 142,947
Fund Balances
Nonspendable 425,680 22,322
Restricted - 7,373,139 1,837,077 - -
Committed - - - - -
Assigned 820,914 - - 11,635,392 15,266,520
Unassigned 37,383,206 - -- -
Total fund balances 38,629,800 7,395,461 1,837,077 11,635,392 15,266,520
Total liabilities and fund balances 39,838,416$ 8,352,628$ 1,959,261$ 12,458,849$ 15,409,467$
December 31, 2018
Governmental Funds
Balance Sheet
---
29
Nonmajor
Rainy Day River West TIF Funds Total
Assets
Cash and cash equivalents 3,489,519$ 11,835,531$ 49,066,330$ 89,876,532$
Investments 6,950,012 19,830,107 54,669,267 131,919,525
Receivables: -
Taxes - - 133,911 133,911
Accounts - - 101,659 448,839
Interest 29,195 80,494 228,610 542,126
Intergovernmental - - 661,207 778,441
Loans - 695,000 6,183,545 6,878,545
Due from other funds - 1,761 21,833 45,427
Advances to other funds - - 2,981,424 3,887,357
Inventory - -- 22,322
Property held for resale - 6,763,721 2,814,323 10,023,045
Restricted assets - -- -
Total assets 10,468,726$ 39,206,614$ 116,862,109$ 244,556,070$
Liabilities
Accounts payable -$ 905,937$ 2,879,810$ 5,677,789$
Due to other funds - 43,666 1,761 65,467
Advances from other funds - 200,000 3,687,357 3,887,357
Performance deposits payable - 18,525 6,000 101,175
Accrued liabilities and other:-
Accrued payroll payable - - 120,651 1,363,898
Taxes payable - - - 652
Other current payables - 30,000 29,262 81,002
Total liabilities - 1,198,128 6,724,841 11,177,340
Fund Balances
Nonspendable 448,002
Restricted 105,590,419 152,809,121
Committed
38,008,486
3,209,500 3,209,500
Assigned 10,468,726 - 1,337,349 39,528,901
Unassigned - 37,383,206
Total fund balances 10,468,726 38,008,486 110,137,268 233,378,730
Total liabilities and fund balances 10,468,726$ 39,206,614$ 116,862,109$ 244,556,070$
December 31, 2018
City of South Bend, Indiana
Governmental Funds
Balance Sheet (Continued)
-
-
--
-
-
-
30
Fund Balance Reported in Governmental Funds 233,378,730$
Amounts reported for governmental activities in the statement of net position are different:
because:
Capital assets used in governmental activities are not financial resources and are not
reported in the funds 264,791,886
Prepaid expenses are not available to pay for current period expenditures, and therefore
are deferred in the funds 15,853
Deferred outflows of resources related to pensions are not available to pay for current
period expenditures, and therefore are reported in the funds 12,578,380
Net pension assets are not available to pay for current period expenditures, and
therefore are not reported in the funds 3,021,911
Deferred outflows on refunding are not due and payable in the current period and
are not reported in the funds 1,976,132
Deferred inflows related to OPEB are not due and payable in the current period and are
not reported in the funds 1,367,265
Notes and loans payable, mortgage bonds payable, revenue bonds payable, and capital
leases are not due and payable in the current period and are not reported in the funds (163,150,959)
Accrued interest is not due and payable in the current period and is not
reported in the funds (2,179,390)
Employee compensated absences are payable over a long period of years and do not
represent a claim on current financial resources; therefore, they are not reported
as fund liabilities (6,082,068)
Net pension liabilities do not present a claim on current financial resources and are
not reported as fund liabilities (163,536,593)
Deferred inflows of resources related to pensions do not present a claim on current
financial resources and are not reported as fund liabilities (11,431,450)
Total OPEB liability does not present a claim on current financial resources and
is not reported as fund liability (23,206,087)
Deferred inflows of resources related to OPEB do not present a claim on current
financial resources and are not reported as fund liabilities (7,996,270)
Internal service funds are included as part of governmental activities 18,560,809
Net Position of Governmental Activities 158,108,149$
Governmental Funds
Reconciliation of the Balance Sheet to the Statement of Net Position
December 31, 2018
City of South Bend, Indiana
31
Parks and Public Safety
General Recreation LOIT COIT EDIT
Revenue
40,719,333$ 9,591,899$ -$ -$ -$
- - 8,487,336 12,339,734 12,084,455
245,956 - - - -
15,252,213 1,393,356 - -
1,648,729 1,716,415 - - -
19,931 - - - 354,660
487,383 85,518 23,056 187,535 266,451
Property taxes
Income taxes
Hotel/motel taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment income
Other revenue 7,664,710 378,579 - 171,375 2,109
Total revenue 66,038,255 13,165,767 8,510,392 12,698,644 12,707,675
Expenditures
Current:
General government 5,848,345 - - 4,757,144 1,757,592
Public safety 60,754,751 - 7,553,570 3,566,142 2,395,284
Highways and streets 1,498,784 - -133,216 -
Community and economic development - - - - -
Culture and recreation 1,366,691 14,253,607 - - -
Bond issuance costs - - - - -
Capital outlay - - - - -
Debt service:
Principal 172,668 352,676 - 1,519,775 130,635
Interest on long-term debt 11,824 33,900 - 126,667 68,331
Total expenditures 69,653,063 14,640,183 7,553,570 10,102,944 4,351,842
Excess of Revenue (Under) Over Expenditures (3,614,808) (1,474,416) 956,822 2,595,700 8,355,833
Other Financing Sources (Uses)
Debt proceeds - 351,760 - 2,240,968 -
Premium on debt - -- --
Proceeds from sale of capital assets 39,261 20,194 - - 596,073
Transfers in 6,760,910 2,345,845 - 324,159 -
Transfers out (21,823) - -(2,824,261) (6,572,551)
Total other financing sources (uses)6,778,348 2,717,799 - (259,134) (5,976,478)
Net Change in Fund Balances 3,163,540 1,243,383 956,822 2,336,566 2,379,355
Fund Balances - Beginning of year 35,466,260 6,152,078 880,255 9,298,826 12,887,165
Fund Balances - End of year 38,629,800$ 7,395,461$ 1,837,077$ 11,635,392$ 15,266,520$
City of South Bend, Indiana
Statement of Revenue, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended December 31, 2018
-- -
-
--
-
-
32
Nonmajor
Rainy Day River West TIF Funds Total
Revenue
-$ 17,896,032$ 11,948,638$ 80,155,902$
221,437
32,911,525
- 245,956
14,422,294 35,167,863
2,366,887 5,735,251
395,000
4,100,000
3,220
120,245 494,836
187,321 498,401 1,568,981 3,304,646
Property taxes
Income taxes
Hotel/motel taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment income
Other revenue - 329,906 1,976,325 10,523,004
Total revenue 187,321 23,222,559 32,624,807 169,155,420
Expenditures
Current:
General government - - 400,145 12,763,226
Public safety - - 1,260,304 75,530,051
Highways and streets - - 15,274,126 16,906,126
Community and economic development - 14,374,491 7,804,782 22,179,273
Culture and recreation - -977,466 16,597,764
Bond issuance costs - -165,885 165,885
Capital outlay - - 23,240,519 23,240,519
Debt service:
Principal - 2,706,409 8,252,562 13,134,725
Interest on long-term debt - 1,025,682 4,416,025 5,682,429
Total expenditures - 18,106,582 61,791,814 186,199,998
Excess of Revenue (Under) Over Expenditures 187,321 5,115,977 (29,167,007) (17,044,578)
Other Financing Sources (Uses)
Debt proceeds - - 23,508,368 26,101,096
Premium on refunding debt - - 479,608 479,608
Proceeds from sale of capital assets - - 287,088 942,616
Transfers in - 47,597 18,718,777 28,197,288
Transfers out - (4,267,975) (8,841,878) (22,528,488)
Total other financing sources (uses)- (4,220,378) 34,151,963 33,192,120
Net Change in Fund Balances 187,321 895,599 4,984,956 16,147,542
Fund Balances - Beginning of year 10,281,405 37,112,887 105,152,312 217,231,188
Fund Balances - End of year 10,468,726$ 38,008,486$ 110,137,268$ 233,378,730$
Year Ended December 31, 2018
Statement of Revenue, Expenditures, and Changes in Fund Balances
City of South Bend, Indiana
Governmental Funds
(Continued)
-
-
-
-
- -
616,437
-
-
33
Net Change in Fund Balances - Total governmental funds 16,147,542$
Amounts reported for governmental activities in the statement of activities are different
because:
Governmental funds report capital outlays as expenditures; however, in the statement of activities,
these costs are allocated over their estimated useful lives as depreciation:
Capital outlay 20,320,068
Depreciation expense (19,524,511)
Net book value of assets disposed of and transferred (2,370,047)
(101,894)
(26,101,096)
(479,608)
13,134,725
198,979
(235,174)
(850,730)
Prepaid expenses recorded in the statement of net position do not require the use of current financial
resources, and therefore are not reported in the fund statements
Debt proceeds (from notes and loans payable, mortgage bonds payable, revenue bonds payable, and
capital leases) provide financial resources to governmental funds, but issuing debt increases long-
term liabilities in the statement of net position
Premium on debt proceeds provide financial resources to governmental funds, but issuing debt
increases long-term liabilities in the statement of net position
Repayment of debt principal is an expenditure in the governmental funds, but not in the statement of
activities (where it reduces long-term debt)
Other adjustments related to debt premiums, discounts, deferred inflows, and deferred outflows
Changes in accrued interest payable and other
Changes in compensated absences reported in the statement of activities do not require the use of
current resources, and therefore are not reported in the fund statements until they come due
for payment
Changes in the total OPEB liability reported in the statement of activities do not require the use of
current resources, and therefore are not reported in the fund statements until they come due
for payment (1,094,798)
Changes in the net pension asset, net pension liabilities, and related deferred inflows and outflows
reported in the statement of activities do not require the use of current resources, and therefore
are not reported in the fund statements until they come due for payment 9,685,762
Internal service funds are included as part of governmental activities - Net change in position 972,634
Change in Net Position of Governmental Activities 9,701,852$
City of South Bend, Indiana
Governmental Funds
in Fund Balances of Governmental Funds
Year Ended December 31, 2018
Reconciliation of the Statement of Revenue, Expenditures, and Changes
34
Governmental
Activities
Wastewater Nonmajor Proprietary
Water Utility Utility Century Center Enterprise Total Internal Service
Assets
Current assets:
Cash and cash equivalents 1,543,682$ 5,068,929$ 1,517,429$ 2,688,429$ 10,818,469$ 6,920,017$
Investments 3,074,522 10,095,693 15,523 5,354,494 18,540,232 13,712,322
Receivables:-
Accounts 897,909 2,428,638 261,108 1,875,096 5,462,751 104,094
Interest 38,177 90,720 50 28,993 157,940 57,782
Allowance for doubtful accounts (50,000) (85,100) - (25,000) (160,100) -
Due from other funds 29,996 10,380 - -40,376 -
Inventory 907,252 210,324 34,782 - 1,152,358 870,617
Prepaid expenses 6,366 8,696 15,023 8,859 38,944 839,830
Total current assets 6,447,904 17,828,280 1,843,915 9,930,871 36,050,970 22,504,662
Noncurrent assets:
Restricted assets 8,999,654 22,309,706 857,363 2,861,183 35,027,906 457,020
Capital assets:
Assets not subject to
depreciation 807,908 17,774,284 713,434 1,159,420 20,455,046 -
Assets subject to depreciation 53,506,827 135,304,004 16,320,861 12,892,149 218,023,841 1,285,927
Total noncurrent assets 63,314,389 175,387,994 17,891,658 16,912,752 273,506,793 1,742,947
Total assets 69,762,293 193,216,274 19,735,573 26,843,623 309,557,763 24,247,609
Deferred Outflows of Resources -
Unamortized loss on refunding 78,870 1,670,947 - -1,749,817 -
Liabilities
Current liabilities:
Accounts payable 413,677 851,222 65,517 341,180 1,671,596 974,254
Due to other governmental units - - - 8,588 8,588 -
Due to other funds 10,380 1,585 4,204 2,952 19,121 1,215
Performance deposits payable - - - 8,250 8,250 -
Accrued liabilities and other:
Accrued payroll payable 104,734 134,684 17,073 196,301 452,792 102,455
Accrued interest payable 292,158 165,768 - 93,235 551,161 3,696
Customer deposits payable 1,318,152 - 1,605,639 -
Unearned revenue 402 - 402 -
Other current payables 53,095 44,147 194,709 -
Compensated absences 179,331 155,886
82,794
97,467
35,245 334,912 705,374 234,070
Notes and loans payable 43,962 171,732 - - 215,694 -
Mortgage bonds payable - 75,645 - 235,000 310,645 -
Claims payable - -- -- 3,058,641
Capital leases 396,773 564,025 - 1,454,735 2,415,533 336,106
Revenue bonds payable 2,875,000 5,760,000 - -8,635,000 -
Total current liabilities 5,687,664 8,085,240 302,300 2,719,300 16,794,504 4,710,437
Noncurrent liabilities:
Notes and loans payable 267,688 1,748,401 - - 2,016,089 -
Mortgage bonds payable - 119,466 - 4,521,868 4,641,334 -
Capital leases 899,736 1,006,633 - 3,672,803 5,579,172 976,363
Revenue bonds payable 12,776,340 58,766,764 - -71,543,104 -
Total noncurrent liabilities 13,943,764 61,641,264 - 8,194,671 83,779,699 976,363
Total liabilities 19,631,428 69,726,504 302,300 10,913,971 100,574,203 5,686,800
Enterprise Funds
City of South Bend, Indiana
Proprietary Funds
Statement of Net Position
December 31, 2018
-
-
-
204,693
35
Governmental
Activities
Wastewater Nonmajor Proprietary
Water Utility Utility Century Center Enterprise Total Internal Service
Deferred Inflows of Resources
Unamortized service agreement -$-$ 47,917$ -$ 47,917$ -$
Total deferred inflows of resources - -47,917 - 47,917 -
Net Position
Net investment in capital assets 37,134,241 86,894,283 17,034,295 4,900,525 145,963,344 1,252,541
Restricted:-
Debt service fund 1,726,068 963,678 - - 2,689,746 -
Customer repair and
deposit fund 1,503,325 2,014,803 - - 3,518,128 -
Cash with fiscal agent 32,903 77,844 - 126,758 237,505 -
Bond reserve fund 1,390,019 4,204,246 - - 5,594,265 -
Operating reserve fund 2,663,671 5,385,946 - - 8,049,617 -
Capital outlay fund 1,888,226 9,100,782 857,363 2,001,063 13,847,434 -
Unrestricted 3,871,282 16,519,135 1,493,698 8,901,306 30,785,421 17,308,268
Total net position 50,209,735$ 125,160,717$ 19,385,356$ 15,929,652$ 210,685,460$ 18,560,809$
Enterprise Funds
Proprietary Funds
Statement of Net Position (Continued)
December 31, 2018
City of South Bend, Indiana
36
Governmental
Activities
Wastewater Nonmajor Proprietary
Water Utility Utility Century Center Enterprise Total Internal Service
Operating Revenue
Metered revenue 11,234,087$ 38,905,147$ -$ -$ 50,139,234$ -$
Convention fees - - 3,152,698 - 3,152,698 -
Fire protection revenue 2,302,252 - - - 2,302,252 -
Licenses and permits - - - 1,978,856 1,978,856 -
Interest and penalty charges 75,174 551,447 - - 626,621 -
Parking fees - - 100,724 1,289,639 1,390,363 -
Solid waste fees - - - 5,408,816 5,408,816 -
Employee/Employer contributions - - - - - 27,074,744
Charges for sales and services - - - 6,702,767 6,702,767 8,201,435
Water leak insurance revenue 1,023,089 - - - 1,023,089 -
Charges to other funds 1,390,950 53,107 - - 1,444,057 -
Other 741,731 421,728 4,595 187,035 1,355,089 1,311,668
Total operating revenue 16,767,283 39,931,429 3,258,017 15,567,113 75,523,842 36,587,847
Operating Expenses
Cost of water 6,452,869 - - - 6,452,869 -
Cost of sewage treatment - 12,525,253 - - 12,525,253 -
Other operation and maintenance - -- 15,586,057 15,586,057 15,281,285
General and administration 2,368,950 3,692,863 4,242,566 1,511,933 11,816,312 850,522
Insurance claims and premiums - - - - - 19,237,014
Plumbing contractors 810,322 - - - 810,322 -
Customer service 2,133,943 - - - 2,133,943 -
Depreciation 2,012,849 7,337,086 1,045,231 1,664,246 12,059,412 131,823
Total operating expenses 13,778,933 23,555,202 5,287,797 18,762,236 61,384,168 35,500,644
Operating Income (Loss)2,988,350 16,376,227 (2,029,780) (3,195,123) 14,139,674 1,087,203
Nonoperating Revenue (Expenses)
Investment income 188,877 681,805 2,020 216,194 1,088,896 356,652
Hotel/Motel tax revenue - - 1,275,000 - 1,275,000 -
Interest expense (618,348) (2,183,941) - (262,826) (3,065,115) (32,077)
(Loss) gain on sale of assets (391,566) (4,996) - (1,132,452) (1,529,014) (5)
Other nonoperating revenue (expenses)29,448 - -- 29,448 -
Total nonoperating revenues (expenses) (791,589) (1,507,132) 1,277,020 (1,179,084) (2,200,785) 324,570
Income (Loss) - Before
contributions and transfers 2,196,761 14,869,095 (752,760) (4,374,207) 11,938,889 1,411,773
Capital Contributions - Other
capital contributions 386,729 - 278,112 - 664,841 -
Transfers In - 368,196 - 1,069,457 1,437,653 -
Transfers Out (1,730,831) (4,601,656) (85,909) (248,918) (6,667,314) (439,139)
Change in Net Position 852,659 10,635,635 (560,557) (3,553,668) 7,374,069 972,634
Net Position - Beginning of year (as restated) 49,357,076 114,525,082 19,945,913 19,483,320 203,311,391 17,588,175
Net Position - End of year 50,209,735$ 125,160,717$ 19,385,356$ 15,929,652$ 210,685,460$ 18,560,809$
Enterprise Funds
City of South Bend, Indiana
Proprietary Funds
Statement of Revenue, Expenses, and Changes in Net Position
December 31, 2018
37
City of South Bend, Indiana
Governmental
Activities
Proprietary
Wastewater Century Nonmajor Internal Service
Water Utility Utility Center Enterprise Total Fund
Cash flows from operating activities
Receipts from customers and users 15,151,036$ 40,541,502$ 3,168,170$ 16,847,367$ 75,708,075$ 4,529,967$
Receipts from interfund services and
reimbursements 1,391,119 45,777 - - 1,436,896 32,057,100
Payments to suppliers (5,565,342) (7,506,811) (3,614,351) (5,765,897) (22,452,401) (28,559,648)
Payments to employees (5,076,681) (7,555,402) (451,286) (9,299,254) (22,382,623) (5,562,693)
Internal activity - payments to other funds (1,388,990) (3,513,511) (122,905) (1,930,521) (6,955,927) (552,458)
Internal activity - payments from
other funds - -- -- -
Net cash provided by (used in)
operating activities 4,511,142 22,011,555 (1,020,372) (148,305) 25,354,020 1,912,268
Cash flows from noncapital
financing activities
Transfers from other funds - 368,196 - 1,042,478 1,410,674 -
Hotel/motel tax - - 1,275,000 - 1,275,000 -
Transfers to other funds (1,730,831) (4,601,656) (85,909) (221,939) (6,640,335) (439,139)
Other nonoperating revenue 29,448 - -- 29,448 -
Net cash (used in) provided by
noncapital financing activities (1,701,383) (4,233,460) 1,189,091 820,539 (3,925,213) (439,139)
Cash flows from capital and related
financing activities
Proceeds from capital debt
Contributions 386,729 - - - 386,729 -
Proceeds from capital debt issued
for future capital purchase - - - 2,866,215 2,866,215 1,138,025
Proceeds from sales of capital assets 4,094 22,310 - 26,312 52,716 3,266
Purchase of capital assets (834,656) (4,497,146) - (2,716,628) (8,048,430) (8,905)
Principal paid on capital debt (394,873) (7,821,444) - (1,556,584) (9,772,901) (223,558)
Interest paid on capital debt (319,700) (2,033,062) - (275,200) (2,627,962) (29,451)
Debt service charge - -- -- -
Net cash (used in) provided by capital
and related financing activities (1,158,406) (14,329,342) - (1,655,885) (17,143,633) 879,377
Cash flows from investing activities
Interest received on investments 172,327 645,890 1,970 208,317 1,028,504 330,920
Proceeds from sale and maturities
of investment securities (1,260,662) (1,276,846) (15,523) 1,165,985 (1,387,046) (1,794,046)
Net cash provided by (used in)
investing activities (1,088,335) (630,956) (13,553) 1,374,302 (358,542) (1,463,126)
Net increase in cash and cash equivalents 563,018 2,817,797 155,166 390,651 3,926,632 889,380
Cash and cash equivalents - beginning
of year 3,874,612 12,933,552 2,219,626 3,826,774 22,854,564 6,487,657
Cash and cash equivalents - end of year 4,437,630$ 15,751,349$ 2,374,792$ 4,217,425$ 26,781,196$ 7,377,037$
Enterprise Funds
Proprietary Funds
Statement of Cash Flows
Year Ended December 31, 2018
See notes to financial statements.38
City of South Bend, Indiana
Governmental
Activities
Proprietary
Wastewater Century Nonmajor Internal Service
Water Utility Utility Center Enterprise Total Fund
Classification of cash and cash equivalents
Cash and investments 4,618,204$ 15,164,622$ 1,532,952$ 8,042,923$ 29,358,701$ 20,632,339$
Restricted cash and investments 8,999,654 22,309,706 857,363 2,861,183 35,027,906 457,020
Less amounts classified as investments (9,180,228) (21,722,979) (15,523) (6,686,681) (37,605,411) (13,712,322)
Total cash and cash equivalents 4,437,630$ 15,751,349$ 2,374,792$ 4,217,425$ 26,781,196$ 7,377,037$
Reconciliation of operating income (loss)
to net cash from operating activities
Operating income (loss)2,988,350$ 16,376,227$ (2,029,780)$ (3,195,123)$ 14,139,674$ 1,087,203$
Adjustments to reconcile operating income
(loss) to net cash from operating activities:
Depreciation and amortization 2,012,849 7,337,086 1,045,231 1,664,246 12,059,412 131,823
Changes in assets and liabilities:
Receivables (25,491) 463,257 (56,076) 1,267,298 1,648,988 (3,957)
Due from other funds 169 (7,330) - - (7,161) 3,178
Inventory (411,931) (54,386) 2,134 - (464,183) 21,549
Prepaid expenses and other assets 22,838 25,360 6,271 21,025 75,494 (328,444)
Accounts payable 121,909 (2,216,763) (60,289) (54,057) (2,209,200) 78,630
Due to other governments - - - (66,705) (66,705) -
Performance deposit - - - (3,750) (3,750) -
Due to other funds 7,119 914 1,444 (548) 8,929 (1,223)
Accrued liabilities and other 9,068 - 52,146 12,956 74,170 -
Accrued payroll payable 16,701 (13,539) 17,073 36,222 56,457 13,054
Compensated absences payable (30,633) (99,194) 35,245 170,131 75,549 (38,425)
Customer deposits (198,137) (33,771)- (27,215) -
Unearned revenue (1,669) (4,770) - - (6,439) -
Estimate of unfiled claims - -- -- 948,880
Net cash provided by (used in)
operating activities 4,511,142$ 22,011,555$ (1,020,372)$ (148,305)$ 25,354,020$ 1,912,268$
Significant noncash transactions
Capital assets disposed (at cost)(1,005,066)$ (2,053,227)$ (329,181)$ (1,668,872)$ (5,056,346)$ (219,365)$
Capital asset contribution - - 278,112 - -
Work in progress completed transferred
to capital assets - 5,011,137 - - -
Accumulated depreciation on disposals -
of capital assets 609,406 2,025,921 329,181 510,108
278,112
5,011,137
3,474,616 216,093
Year Ended December 31, 2018
Enterprise Funds
Proprietary Funds
Statement of Cash Flows (Continued)
See notes to financial statements.
204,693
39
Pension Private-
Trust Purpose Trust Agency
Funds Fund Funds
Assets
421,376$ 161,717$ 3,389,966$
839,248 322,088 -
893 - -
Cash and cash equivalents
Investments
U.S. Treasuries
Receivables - Accounts
Receivables - Interest 4,013 1,353 -
Total assets 1,265,530 485,158 3,389,966$
Liabilities
Accounts payable 421 - -$
Accrued liabilities and other 372 - 324,526
Customer deposits payable - - 2,226,914
Police distribution payable - -838,526
Total liabilities 793 - 3,389,966$
Net Position for Pension Benefits and Other Purposes 1,264,737$ 485,158$
City of South Bend, Indiana
Fiduciary Funds
Statement of Fiduciary Net Position
December 31, 2018
40
Private-
Pension Trust Purpose Trust
Funds Fund
Additions
Investment income - Interest and dividends 22,815$ 682$
Contributions:
On behalf 10,699,527 -
Other 11,665 31,207
Total contributions 10,711,192 31,207
Total additions 10,734,007 31,889
Deductions
Benefit payments 10,792,236 -
Administrative expenses 28,608 -
Total deductions 10,820,844 -
Net (Decrease) Increase in Net Position (86,837) 31,889
Net Position - Beginning of year 1,351,574 453,269
Net Position - End of year 1,264,737$ 485,158$
City of South Bend, Indiana
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
Year Ended December 31, 2018
41
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies
Reporting Entity
The City of South Bend (the "City") was established under the laws of the State of Indiana
and operates under a Council-Mayor form of government. The accompanying financial
statements present the City and its component units, entities for which the City is considered
to be financially accountable. Although blended component units are legal separate entities,
in substance, they are part of the City's operations.
Blended Component Units
The South Bend Redevelopment Authority is a significant blended component unit of the
City. Although it is legally separate from the City, the Redevelopment Authority is reported
as if it were part of the City because its sole purpose is to finance and construct land,
building, and other improvements for use by the City. Financial statements for the
Redevelopment Authority are available at the City Controller's Office, City of South Bend,
227 West Jefferson, 12th Floor County-City Building, South Bend, Indiana 46601.
The South Bend Building Corporation, Inc. is also a legally separate nonprofit corporation
and a significant blended component unit of the City. The Building Corporation is reported
as if it were part of the City because its main purpose is to finance construction and
remodeling of City buildings. 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, 12th Floor County-City
Building, South Bend, Indiana 46601.
Related Organizations
The City's officials are also responsible for appointing the members of the boards of other
organizations, but the City'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, St. Joseph County Housing Consortium, and
the Saint Joseph County Board of Managers for Hotel-Motel Tax.
Accounting and Reporting Principles
The City follows accounting principles generally accepted in the United States of America
(GAAP) as applicable to governmental units. Accounting and financial reporting
pronouncements are promulgated by the Governmental Accounting Standards Board
(GASB). The following is a summary of the significant accounting policies used by the City:
42
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
Report Presentation
Governmental accounting principles require that financial reports include two different
perspectives - the government-wide perspective and the fund-based perspective. The
government-wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all of the nonfiduciary activities of the primary government
and its component units. The government-wide financial statements are presented on the
economic resources measurement focus and the full accrual basis of accounting. Property
taxes are recognized as revenue 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. The statements also present a schedule reconciling these amounts
to the modified accrual based presentation found in the fund-based statements.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenue. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenue includes: (1)
charges to customers or applicants for goods, services, or privileges provided; (2) operating
grants and contributions; and (3) capital grants and contributions, including special
assessments. Taxes and other items not properly included among program revenue are
reported instead as general revenue.
For the most part, the effect of interfund activity has been removed from these statements.
Exceptions to this general rule are charges between the City's water and sewer function and
various other functions of the City. Eliminations of these charges would distort the direct
costs and program revenue reported for the various functions concerned.
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.
Fund Accounting
The City accounts for its various activities in several different funds in order to demonstrate
accountability for how we have spent certain resources; separate funds allow us to show
the particular expenditures for which specific revenue was used. The various funds are
aggregated into three broad fund types:
Governmental Funds
Governmental funds include all activities that provide general governmental services
that are not business-type activities. This includes the General Fund, special revenue funds, debt service funds, and capital project funds. The City reports the following funds as
“major” governmental funds:
•The General Fund is the primary operating fund because it accounts for all financialresources used to provide government services other than those specifically assigned
to another fund.
43
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
•The Parks and Recreation Fund is used to account for the operation of the City park
system. Financing is provided by a specific annual property tax levy to the extent that
user fees and miscellaneous revenues are insufficient to provide such financing.
•The Public Safety Local Option Income Tax (LOIT) Fund is used to account for the City's
share of the public safety local option income tax. Expenditures are restricted to public
safety.
•The County Option Income Tax (COIT) Fund is used to account for the City's share of
the county option income tax. Expenditures include any lawful purpose of the City.
•The Economic Development Income Tax (EDIT) Fund is to account for the City's share
of the County Economic Development Tax. Expenditures include any lawful purpose ofthe City.
•The Rainy Day fund is 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 countyoption income tax (COIT) and county economic development income tax (CEDIT).
•The River West TIF (Tax Incremental Financing) Fund is used to account for public
improvement projects in the river west economic development area. Financing is
provided by property tax proceeds in excess of those attributable to the assessed valueof property in the district before redevelopment.
Proprietary Funds
Proprietary funds include enterprise funds (which provide goods or services to users in
exchange for charges or fees) and internal service funds (which provide goods or services
to other funds of the City). The City reports the following funds as “major” enterprise funds:
•The Water Utility Fund accounts for the operation of the City's water distribution system.
•The Wastewater Utility Fund accounts for the operation of the City's wastewater
treatment plant, pumping stations, and collection systems.
•The Century Center Fund accounts for the operation and maintenance of the City'sconvention center. Financing is received from various user fees for conventions,
meetings, and other events held at the civic center and a subsidy from the St. Joseph
County's Special Funds Board of Managers.
The City’s internal service funds are used to account for various City liability coverage,
employee medical coverage, police officers' take home vehicle, innovation &
technology/311 call center, unemployment claims, parental leave program, and central
services such as fuel, vehicle repairs, and various supplies provided to other departments
on a cost-reimbursement basis. The activities are accounted for on a full accrual basis, so
that the full costs are recognized and allocated to the various funds in the year that the
costs are incurred.
44
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
Fiduciary Funds
Fiduciary funds include amounts held in a fiduciary capacity for others. These amounts will
not be used to operate our government's programs. Activities that are reported as fiduciary
include the following:
•The pension trust funds account for the activities of the 1925 Police and 1937 Fire
Pension Funds which accumulate resources for pension benefit payments.
•The Private-Purpose Trust Funds report a trust arrangement under which principal and
income benefit cemetery maintenance.
•The agency funds account for assets held by the City as an agent for employee payroll,
pension, and payroll deductions, held for an entertainment center’s event deposits, and
collected by the South Bend Police Department from asset seizures.
Interfund Activity
During the course of operations, the City has activity between funds for various purposes.
Any residual balances outstanding at year end are reported as due from/to other funds and
advances to/from other funds. While these balances are reported in fund financial
statements, certain eliminations are made in the preparation of the government-wide
financial statements. Balances between the funds included in governmental activities (i.e.,
the governmental and internal service funds) are eliminated so that only the net amount is
included as internal balances in the governmental activities column. Similarly, balances
between the funds included in business-type activities (i.e., the enterprise funds) are
eliminated so that only the net amount is included as internal balances in the business-type
activities column.
Furthermore, certain activity occurs during the year involving transfers of resources
between funds. In fund financial statements, these amounts are reported at gross amounts
as transfers in/out. While reported in fund financial statements, certain eliminations are
made in the preparation of the governmentwide financial statements. Transfers between
the funds included in governmental activities are eliminated so that only the net amount is
included as transfers in the governmental activities column. Similarly, balances between
the funds included in business-type activities are eliminated so that only the net amount is
included as transfers in the business-type activities column.
Basis of Accounting
The governmental funds use the current financial resources measurement focus and the
modified accrual basis of accounting. This basis of accounting is intended to better
demonstrate accountability for how the government has spent its resources.
Expenditures are reported when the goods are received or the services are rendered.
Capital outlays are reported as expenditures (rather than as capital assets) because they
reduce the ability to spend resources in the future; conversely, employee benefit costs that
will be funded in the future (such as pension and retiree healthcare related costs, or sick
and vacation pay) are not counted until they come due for payment. In addition, debt service
expenditures, claims, and judgments are recorded only when payment is due.
45
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
Revenue is not recognized until it is collected, or collected soon enough after the end of the
year that they are available to pay for obligations outstanding at the end of the year. For
this purpose, the City considers amounts collected within 60 days of year end to be
available for recognition. The following major revenue sources meet the availability
criterion: property taxes, franchise taxes, licenses, and interest associated with the current
fiscal period.
Proprietary funds and fiduciary funds use the economic resources measurement focus and
the full accrual basis of accounting. Revenue is recorded when earned and expenses are
recorded when a liability is incurred regardless of the timing of related cash flows.
Specific Balances and Transactions
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, demand deposits, and short-term
investments with a maturity of three months or less when acquired.
Investments
State statute (IC 5-13-9) authorizes the City 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. A “nonparticipating” instrument is one that does not recognize market
fluctuations in its valuation.
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 are reported fair value.
Investment income, including changes in the fair value of investments, is reported as
revenue in the operating statement.
Inventories and Prepaid Items
Inventories are valued at cost, on a first-in, first-out basis. Inventories of governmental funds
are recorded as expenditures when consumed rather than when purchased. Certain
payments to vendors reflect costs applicable to future fiscal years and are recorded as
prepaid items in both government-wide and fund financial statements.
46
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
Restricted Assets
Certain proceeds of the enterprise fund revenue bonds, as well as certain resources set
aside for their repayment, are classified as restricted assets on the statement of net position
because their use is limited by applicable bond covenants. Restricted assets also include
customer deposits, operating reserves, capital outlay accounts, and debt service reserve
funds.
Capital Assets
Capital assets, which include property, plant, equipment, intangible assets, and
infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the
applicable governmental or business type activities column in the government-wide
financial statements. Capital assets are recorded at historical cost or estimated historical
cost if purchased or constructed. Donated capital assets are recorded at estimated
acquisition value at the date of donation.
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.
All land purchases are capitalized regardless of acquisition price. Land is never
depreciated.
Major outlays for capital assets and improvements are capitalized when projects have
completed the construction phase. The City has implemented GASB 89 for the year ended
December 31, 2018 and no interest was capitalized during the construction of capital assets
of business-type activities.
Infrastructure, intangibles, buildings, equipment, roads, and vehicles are depreciated using
the straight line method over the following useful lives:
Capitalization
Capital Asset Class Threshold Lives (in years)
Buildings and improvements $ 100,000 20 - 30
Large office equipment 10,000 5 - 10
Vehicles and other equipment 10,000 5 - 20
Roads - Collectors and residential 250,000 40 - 50
Utilities infrastructure (large) 250,000 30 - 99
47
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
Long-term Obligations
In the government-wide financial statements and the proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities, or proprietary
fund-type statement of net position. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are
reported net of the applicable bond premium or discount. Bond issuance costs are
expensed at the time they are incurred. In the fund financial statements, governmental fund
types recognize bond issuances as an “other financing source,” as well as bond premiums
and discounts. Net position restricted for debt service and for capital outlay shown in the
business-type activities and in the enterprise funds are restricted pursuant to state statute
and/or local ordinance.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period(s) and will not be
recognized as an outflow of resources (expense/expenditure) until then.
The City has three items that qualify for reporting in this category. The deferred charge on
refunding, deferred charges on pensions, and deferred charges on other postemployment
benefits (OPEB) that are reported in the governmental activities statement of net position.
A deferred charge on refunding results from the difference in the carrying value of refunded
debt and its reacquisition price. This amount is deferred and amortized over the shorter of
the life of the refunded or refunding debt. Deferred outflows of resources are recorded with
respect to pensions per GASB Statement No. 68 and OPEB per GASB Statement No. 75.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element
represents an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time.
The City has three items that qualify for reporting in this category: an unamortized amount
related to a service agreement, deferred inflows related to pensions per GASB Statement No. 68 and deferred inflows related to OPEB per GASB Statement No. 75.
Net Position Flow Assumption
The City will sometimes fund outlays for a particular purpose from both restricted (e.g.,
restricted bond or grant proceeds) and unrestricted resources. In order to calculate the
amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the
order in which the resources are considered to be applied. It is the City’s policy to consider
restricted net position to have been depleted before unrestricted net position is applied.
48
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
Fund Balance Flow Assumptions
The City will sometimes fund outlays for a particular purpose from both restricted and
unrestricted resources (the total of committed, assigned, and unassigned fund balance). In
order to calculate the amounts to report as restricted, committed, assigned, and unassigned
fund balance in the governmental fund financial statements, a flow assumption must be
made about the order in which the resources are considered to be applied. It is the
government’s policy to consider restricted fund balance to have been depleted before using
any of the components of unrestricted fund balance. Furthermore, when the components of
unrestricted fund balance can be used for the same purpose, committed fund balance is
depleted first followed by assigned fund balance. Unassigned fund balance is applied last.
Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the nature
of any limitations requiring the use of resources for specific purposes. The government itself
can establish limitations on the use of resources through either a commitment (committed
fund balance) or an assignment (assigned fund balance).
Nonspendable fund balances include items that cannot be spent. This includes activity
that is not in a spendable form (primarily inventory, although in the General Fund this may
include long-term portions of loans, advances to other funds, and property held for resale)
and activity that is legally or contractually required to remain intact, such as principal
balances in a permanent fund.
Restricted fund balances have constraints placed upon the use of the resources either by
an external party such as a grantor or creditor or imposed by law through
constitutional provisions or enabling legislation.
Committed fund balances can be used only for specific purposes pursuant to constraints
imposed by a formal action by the South Bend Common Council, for all non-TIF Funds, or
by the South Bend Redevelopment Commission for TIF Funds. This formal action is the
passage of an ordinance by the Council or resolution by the Commission specifying the
purposes for which the funds can be used. The same type of formal action is necessary to
remove or change the specified use. The South Bend Common Council is the highest
level of decision-making authority for the non-TIF Funds. The South Bend
Redevelopment Commission is the highest level of decision-making authority for the TIF
Funds.
Assigned fund balances include amounts that are constrained by the City's intent to be
used for a specific purpose, but are neither restricted nor committed. For the
governmental fund types other than the General Fund, this is the residual amount within
the fund that is not restricted or committed. Currently, state statute does not require the
City’s Common Council to undertake any resolution regarding the assignment of fund
balances. Assignments of fund balance are imposed by informal action of the City
Controller. Formal action by a governing body is not required to assign fund balances.
49
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
The unassigned fund balance is the residual amount of the General Fund not included in
the four categories above. Only the General Fund may report a positive unassigned fund
balance whereas other governmental funds may need to report a negative unassigned fund
balance if expenditures incurred for specific purposes exceeded the amounts restricted,
committed, or assigned to those purposes.
The fund balance policy proscribes the minimum fund balance as noted below. This is
deemed to be the prudent amount to maintain the City's ability to meet obligations as they
come due throughout the year.
•General: 35 percent of annual expenditures
•COIT: 50 percent of annual expenditures
•EDIT: 50 percent of annual expenditures
•Water operating: 5 percent of annual expenditures
•Wastewater operating: 5 percent of annual expenditures
•Other: generally 25 percent of annual expenditures
The detail of the fund balance classifications of the governmental funds for the year ended
December 31, 2018 can be found in Note 16.
Property Tax Revenue
Property taxes levied are collected by the County Treasurer and are usually distributed to
the City in June and in December. State statute (IC 6-1.1-17-16) requires the Indiana
Department of Local Government Finance to establish property tax rates and levies by
February 15. These rates are based on the taxable valuation of property as of the preceding
January 1. Taxable property is assessed at 100 percent of the true tax value (determined
in accordance with rules and regulations adopted by the Indiana Department of Local
Government Finance). Taxes may be paid in two equal installments that become delinquent
if not paid by May 10 and November 10, respectively, at which time penalties and interest
are assessed.
Pension
The City offers a defined benefit pension plan to its employees. The City records a net
pension liability for the difference between the total pension liability calculated by the
actuary and the pension plan’s fiduciary net position. For the purpose of measuring the net
pension liability, deferred outflows of resources and deferred inflows of resources related
to pensions, and pension expense, information about the fiduciary net position of the Plans
and additions to/deductions from the pension plans' fiduciary net position have been
determined on the same basis as they are reported by the pension plans. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due
and payable in accordance with the benefit terms. Investments are reported at fair value.
50
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
Other Postemployment Benefit Costs
The City offers retiree healthcare benefits to retirees. For purposes of measuring the total
OPEB liability in the government-wide financial statements, deferred outflows of resources
and deferred inflows of resources related to OPEB, OPEB expense, and information
about the fiduciary net position of the The City of South Bend Retiree Healthcare Plan
(SBRHP) have been determined on the same basis as they are reported by SBRHP.
Compensated Absences (Vacation and Sick Leave)
•Sick Leave - City employees earn sick leave at the rate of four to eight days per year,
depending upon employee classification and length of service. Police officers,
teamsters, 40-hour-per-week firefighters, and all other employees earn eight sick days
per year, regardless of tenure of service. Firefighters working 24-hour workdays with
tenure greater than five years earn five days of sick leave per year, and firefighters
working 24-hour workdays with tenure less than five years, earn four days of sick leave
per year. Sick leave may accumulate to a maximum 90 days for police officers, 100 days
for 40-hour-per-week firefighters, 38 days for 24-per-day firefighter, 75 days for
teamsters, and 65 days for all other employees. Accumulated sick leave is paid to
firefighters and police officers upon termination of employment depending upon the
number of sick leave hours transacted, at a rate of 50 percent to 100 percent of the base
hourly rate of pay for firefighters and at a rate of one-half the first class patrolman rank
rate of pay for police officers. Accumulated sick leave is paid to teamster employees,
upon retirement, at a rate of $40 for each accumulated sick leave day transacted. Sick
leave buy-back during employment is paid to firefighters and police officers annually
upon request. Upon request, firefighters are paid unused sick days earned in the
previous year in excess of 252 hours in the sick day bank at the base hourly rate of pay.
Upon request, police officers are paid up to a maximum eight unused sick days at the
first class patrolman rate of pay.
•Vacation Leave - Primary government employees earn vacation leave at rates from zero
days to 28 days based upon hire date, years of service, and employee classification.
Vacation leave does not accumulate from year to year for police officers, firefighters,
and teamster employees, except in instances where special cases are approved.
Nonbargaining employees carry over to the following year unused vacation time up to a
maximum of 160 hours. Employees earn vacation leave during the year for use in the
succeeding year. Unused vacation leave is paid to employees upon termination of
employment. Firefighters may sell back vacation leave, up to a maximum three days per
year, during selected times of the year, at the employee’s normal hourly rate of pay
51
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
•Personal Leave - City police officers earn personal leave at the rate of seven days per
year, and have the opportunity to earn an additional three days leave with participation
in regularly scheduled police practice shooting exercises. Police officers personal leave
does not accumulate from year to year. Police officers unused personal leave may be
rolled into sick leave. City employees under the teamster contract can use up to four
days of their sick leave for personal leave. Personal leave of absence may be available
for certain personal, family, and medical reasons when other forms of leave have been
exhausted or otherwise not available. Leaves of absences are unpaid although
employees may use accrued vacation, sick, and comp time. A leave of absence may
not exceed 30 calendar days, however an employee facing exceptional circumstances
may seek an additional 30 calendar day leave of absence subject to approval by the
department and HR department. Employees who are enrolled in the City's insurance
plans will be covered during the initial leave of absence, but benefit time, such as
vacation and sick time, will not accrue during this period. While every effort will be made
to retain employment opportunities for an individual during this time, there is no
guarantee of employment at the completion of personal leave of absence.
•Compensatory Leave - City firefighters can elect to receive compensation for overtime
hours worked either through wage payment or compensatory time off work up to a
maximum of 240 hours. All other nonexempt employees working overtime hours earn
compensatory time off up to a maximum balance of 32 hours, after which they are paid
overtime wage. All other exempt employees working overtime hours earn compensatory
time up to a maximum balance of 160 hours.
Unused vacation leave for all City employees, and unused sick leave and compensatory
leave of firefighters, police officers, and teamsters, is accrued when incurred and reported
as a liability in the statement of net position. Amounts due and payable at year end are
included in the proprietary fund statements. A liability for these amounts is reported in
governmental funds only for employee terminations as of year-end.
Proprietary Funds Operating Classification
Proprietary funds distinguish operating revenue and expenses from nonoperating items.
Operating revenue 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 revenue of the Water and Wastewater Utility Funds, Century Center
fund, and internal service 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 revenue and
expenses not meeting this definition are reported as nonoperating revenue and expenses.
52
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 1 - Significant Accounting Policies (Continued)
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the period. Actual results could differ from those
estimates.
Upcoming Accounting Pronouncements
The following pronouncements issued by the GASB will be effective for the City’s financial
statements for the year ending December 31, 2019. The City is currently evaluating the
impact these standards will have on the financial statements when adopted.
•GASB Statement No. 83: Certain Asset Retirement Obligations
o This statement establishes criteria for determining the timing and amount of
recognition of a liability for certain asset retirement obligations
•GASB Statement No. 84: Fiduciary Activities
o This statement improves the guidance on the identification of fiduciary activities for
accounting and Financial Reporting purpose, focusing on whether a government
controls the assets of the activity and the beneficiaries with whom a fiduciary
relationship exists.
•GASB Statement No. 88: Certain Disclosures Related to Debt, including Direct
Borrowings and Direct Placements
o Requires additional disclosure related to debt, including unused lines of credit,
pledged assets, significant termination events, and significant subjective
acceleration clauses.
•GASB Statement No. 90: Majority Equity Interests – an amendment of GASB
Statements No. 14 and No. 61
o Improves reporting consistency for a government’s majority equity interest in a
legally separate organization and improves the reporting of certain component
units.
53
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 2 - Stewardship, Compliance, and Accountability
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:
Major governmental funds:
•General Fund
•Special Revenue Funds - Park and Recreation, Public Safety Local Option Income Tax(LOIT), County Option Income Tax (COIT), Economic Development Income Tax (EDIT),
Rainy Day
•Capital Projects Fund - River West TIF
Nonmajor governmental funds:
•Special Revenue Funds - Motor Vehicle Highway, Recreation Nonreverting, Studebaker
Oliver Revitalization Grants, Economic Development State Grants, DCI Operating,Community Investment Grants, Police State Seizure, Juvenile Positive Assistance,
Unsafe Building, Law Enforcement Continuing Education, Landlord Registration, Loss
Recovery, Local Road and Street, LOIT 2016 Special Distribution, Human Rights-
Federal Grant, Local Road and Bridge Grant, Morris and Palais Marketing, Morris PAC
Self Promotion, Police Block Grants, Economic Development Commission, Hazmat,Indiana River Rescue, COPS Block Grant II, Regional Police Academy, COPS
MORE Grant, Federal Drug Enforcement, Gift, Urban Development Action Grant,
Leaf Collection and Removal, Police K-9 Unit, Industrial Revolving
•Debt Service Fund - College Football Hall of Fame Debt Service, Redevelopment Bond
Airport Taxable, Coveleski Bond Debt Service Reserve, Redevelopment Bond Palais
Royale, South Bend Building Corporation Debt Service, Smart Streets Debt Service,
2015 Parks Bond Debt Service, Century Center Energy Conservation Debt Service,
Redevelopment Authority Debt Service, Eddy St. Commons Debt Service, 2017 Parks Bond
Debt Service, 2018 TIF Park Bonds Debt Service Reserve
•Capital Projects Funds - Professional Sports Development, Coveleski Stadium Capital,
Park Nonreverting Capital, Cumulative Capital Development, Cumulative Capital
Improvement, Morris Performing Arts Center Capital, Redevelopment Retail Area
(Leighton Plaza), TIF West Washington, Redevelopment General, TIF No. 1 Southside
Development, Football Hall of Fame Capital, Major Moves, TIF River East Development, TIF
Douglas Road, TIF River East Residential, Certified Technology Park, Palais Royale Historic
Preservation, Airport Urban Enterprise Zone, Vehicle Equipment Leasing, Smart Streets
Bond Capital Projects, 2015 Parks Bond Capital Projects, 2017 Parks Bond Capital
Projects, Eddy St. Commons Capital, 2018 Fire Station No. 9 Bond Capital, 2018 TIF
Park Bond Capital
54
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 2 - Stewardship, Compliance, and Accountability (Continued)
On or before August 31, the City Controller submits to the Common Council a proposed
operating budget for the year commencing the following January 1. Prior to adoption, the
budget is advertised and public hearings are conducted by the Common Council to obtain
taxpayer comments. Prior to November 1 of each year, the Common Council, through the
passage of an ordinance, approves the budget for the next year. Copies of the budget
ordinance and the advertisement for funds for which property taxes are levied or highway
use taxes are received are sent to the Indiana Department of Local Government Finance.
The budget becomes legally enacted after the City Controller receives approval of the
Indiana Department of Local Government Finance.
The City's management cannot transfer budgeted appropriations between object
classifications, namely, Personnel, Supplies, Services, or Capital of a fund 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, the Parks and Recreation Fund, the Public Safety LOIT Fund, the COIT Fund,
the EDIT Fund, the Rainy Day Fund, or any other major or nonmajor governmental fund
which required legally approved budgets except for the Redevelopment Bond – Airport
Taxable Fund and the South Bend Building Corporation Debt Service Fund. In 2018, these
two funds incurred paying agent fees higher than anticipated.
Fund Deficits
At December 31, 2018, no funds reported a deficit in fund equity, which are violations of
State statute.
Note 3 - Deposits and Investments
Authorization for investment activity is stated in Indiana Code 5-13. Indiana Code 5-13-9 has
authorized investment in securities backed by the full faith and credit of the United States
Treasury or fully guaranteed by the United States of America and issued by the United States
Treasury, a federal agency, a federal instrumentality, or a federal government-sponsored
enterprise. These investments are required by statute to have a stated final maturity of not more
than five years.
Indiana Code also provides for investment in money market mutual funds that are in the form of
securities of, or interest in, an open-end, no-load, management-type investment company or investment trust registered under the provision of the federal Investment Company Act of 1940, as amended. Investments in money market mutual funds may not exceed 50 percent of the
funds held by the City and available for investment. The portfolio of an investment company or investment trust used must be limited to direct obligations of the United States of America, obligations issued by the 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 & Poor's Corporation or its successor or Aaa, or its equivalent, by Moody's Investors Service, Inc.,
or its successor. The form of securities in an investment company or investment trust should have a stated final maturity of one day.
55
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 3 - Deposits and Investments (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 must be fully collateralized by interest-
bearing obligations as determined by their current market value.
The City's cash and investments are subject to several types of risk, which are examined
in more detail below:
Custodial Credit Risk of Bank Deposits
Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may
not be returned to it. Indiana Code 5-13-8-1 allows a political subdivision of the State of
Indiana to deposit public funds in a financial institution only if that institution is a depository
eligible to receive state funds and has a principal office or branch that qualifies to receive
public funds of the political subdivision. At year end, the bank balances held at the following
institutions were collateralized with securities held by the pledging financial institution's trust
department or agent in the depositor-City's name:
The remaining bank balances were insured by the Federal Deposit Insurance Corporation
or the Public Deposit Insurance Fund, which covers all public funds held in approved
depositories. The City has not formally adopted a deposit policy for custodial credit risk.
Custodial Credit Risk of Investments
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the City
will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The City does not have a policy for custodial credit risk. At
year end, $67,964,808 of investment securities was uninsured and unregistered, with
securities held by the counterparty or by its trust department or agent but not in the City's
name.
Interest Rate Risk
Interest rate risk is the risk that the value of investments will decrease as a result of a rise
in interest rates. The City must follow state statute and limit the stated final maturities of the
investments to no more than five years. The City does not have a formal investment policy
for interest rate risk.
US Bank NA 20,507,721$
Bank of New York Mellon 4,237,149
1st Source Bank 2,207,321
Wells Fargo Bank, NA 629,341
56
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 3 - Deposits and Investments (Continued)
At year end, the City had the following investments and maturities:
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. U.S. government agency securities are implicitly guaranteed by the full faith
and credit of the U.S. government and are recognized as one of the safest investments
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. It is the City's practice to limit concentration of investments to
no more than 10 percent of any institution's asset base. United States of America
government and United States of America governmental agency securities are exempt from
this policy requirement.
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. The hierarchy is based on the valuation inputs
used to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3
inputs are significant unobservable inputs. Investments that are measured at fair value
using the net asset value per share (or its equivalent) as a practical expedient are not
classified in the fair value hierarchy below.
In instances whereby inputs used to measure fair value fall into different levels in the above
fair value hierarchy, fair value measurements in their entirety are categorized based on the
lowest level input that is significant to the valuation. The City’s assessment of the
significance of particular inputs to these fair value measurements requires judgment and
considers factors specific to each asset or liability.
The City has the following recurring fair value measurements as of December 31, 2018:
•The fair value of U.S. Treasuries and U.S. Government Agency securities
of $67,964,808 are valued primarily using quoted prices in active markets (Level 1
inputs). If an active market is unavailable for a particular security, a third party
pricing firm is used to value the security by comparing to other securities with similar
characteristics (Level 2 inputs).
More than
Two Years
U.S. Treasuries $ 22,026,416 $ 22,026,416 $ - $ -
U.S. Government Agency
Securities 45,938,392 21,313,442 19,686,215 4,938,735
Total $ 67,964,808 $ 43,339,858 $ 19,686,215 $ 4,938,735
Primary Government Fair Value Less than One
Year
One to Two
Years
57
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 4 - Receivables
The following receivable accounts have timing and credit characteristics different from
typical accounts receivable. As of December 31, 2018 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:
Note 5 - Net Investment in Capital Assets
The net investment in capital assets is calculated as follows:
The business-type activities' unspent debt proceeds are capital lease proceeds, reported
as cash with fiscal agent.
Receivable Noncurrent
TIF River West 695,000$ 675,000$
Nonmajor governmental funds:
Economic developent state grants 189,400 105,236
Community investment grants 211,068 164,633
Urban development action grant 506,401 468,893
Industrial revolving 5,276,676 4,115,807
Total nonmajor governmental funds 6,183,545$ 4,854,569$
Governmental Business-type
Activities Activities Total
Capital assets not subject to depreciation 32,505,930$ 20,455,046$ 52,960,976$
Capital assets subject to depreciation - Net 233,571,883 218,023,841 451,595,724
Deferred outflows (capital related)1,976,132 1,749,817 3,725,949
Notes and loans payable - current (347,671) (215,694) (563,365)
General obligations bonds payable-current (940,000) - (940,000)
Mortgage bonds payable - current (1,864,355) (310,645) (2,175,000)
Capital leases payable - current (3,813,983) (2,415,533) (6,229,516)
Revenue bonds payable - current (7,338,538) (8,635,000) (15,973,538)
Notes and loans payable - noncurrent (3,761,151) (2,016,089) (5,777,240)
General obligations bonds payable-noncurrent (17,797,645) (17,797,645)
Mortgage bonds payable - noncurrent (6,436,499) (4,641,334) (11,077,833)
Capital leases payable - noncurrent (9,018,211) (5,579,172) (14,597,383)
Revenue bonds payable - noncurrent (113,145,375) (71,543,104) (184,688,479)
Unspent debt proceeds 39,691,970 1,091,211 40,783,181
Net investment in capital assets 143,282,487$ 145,963,344$ 289,245,831$
58
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 6 - Capital Assets
Capital asset activity of the City's governmental and business-type activities was as follows:
Governmental Activities
Balance Balance
Governmental Activities:January 1, 2018 Additions Disposals December 31, 2018
Capital assets, non-depreciable:
Land 14,707,088$ $ 14,496,141 -$ (210,947) $
Construction in progress 29,957,697 11,827,908 (23,775,816) 18,009,789
Total capital assets, non-depreciable 44,664,785 11,827,908 (23,986,763) 32,505,930
Capital assets, depreciable
Buildings 125,886,853 258,045 (5,760,814) 120,384,084
Improvements other than buildings 21,519,259 - (467,190) 21,052,069
Machinery and equipment 47,094,151 4,610,032 (3,096,032) 48,608,151
Roads and other infrastructure 441,344,575 27,408,804 - 468,753,379
Subtotal 635,844,838 32,276,881 (9,324,036) 658,797,683
Less accumulated depreciation for:
Buildings 52,675,177 3,433,524 (3,657,115) 52,451,586
Improvements other than buildings 10,713,373 721,271 (467,189) 10,967,455
Machinery and equipment 33,644,985 3,234,264 (3,036,907) 33,842,342
Roads and other infrastructure 315,697,141 12,267,276 - 327,964,417
Subtotal 412,730,676 19,656,335 (7,161,211) 425,225,800
Net capital assets, depreciable 223,114,162 12,620,546 (2,162,825) 233,571,883
Total governmental activities
capital assets, net 267,778,947$ 24,448,454$ (26,149,588)$ 266,077,813$
59
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 6 - Capital Assets (Continued)
Business-type Activities
Accumulated depreciation additions shown in the two schedules above include depreciation
expense and also include accumulated depreciation on assets transferred from other funds.
Balance Balance
Business-type Activities January 1, 2018 Additions Disposals December 31, 2018
Capital assets, non-depreciable:
Land 2,614,014$ - - 2,614,014$
Construction in progress 21,254,911 1,597,258 (5,011,136) 17,841,033
Total capital assets, non-depreciable 23,868,925 1,597,258 (5,011,136) 20,455,047
Capital assets, depreciable
Buildings 83,233,461 497,843 (305,628) 83,425,676
Improvements other than buildings 27,939,323 - (1,065,873) 26,873,450
Machinery and equipment 42,205,000 2,997,902 (1,628,748) 43,574,154
Roads and other infrastructure 210,301,608 7,226,273 (1,051,162) 216,476,719
Subtotal 363,679,392 10,722,018 (4,051,411) 370,349,999
Less accumulated depreciation for:
Buildings 36,878,587 2,055,449 (304,981) 38,629,055
Improvements other than buildings 8,436,276 1,238,253 (1,065,873) 8,608,656
Machinery and equipment 23,955,240 3,291,384 (1,475,373) 25,771,251
Roads and other infrastructure 74,484,727 5,493,597 (661,129) 79,317,195
Subtotal 143,754,830 12,078,683 (3,507,356) 152,326,157
Net capital assets, depreciable 219,924,562 (1,356,665) (544,055) 218,023,842
Total governmental activities
capital assets, net 243,793,487$ 240,593$ (5,555,191)$ 238,478,889$
60
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 6 - Capital Assets (Continued)
Depreciation expense was charged to programs of the primary government as follows:
Governmental Activities:
General Government 41,409$
Public Safety 2,590,532
Highways and streets, and other general infrastructure 13,519,668
Culture and recreation 2,839,197
Economic development 533,705
Internal service funds 131,824
Total governmental activities depreciation expense 19,656,335$
Business-type Activities:
Emergency medical service 494,269$
Water 2,012,849
W as tewater 7,337,086
Century Center 1,045,231
Building department & code enforcement 183,236
Parking garage 211,743
Solid waste 774,998
Total activities business-type expense 12,059,412$
Prior year accumulated depreciation for transfer into
business-type activities 19,271
Total additions to accumulated depreciation per capital
asset depreciation schedules 12,078,683$
61
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 6 - Capital Assets (Continued)
Construction Commitments
The City has active construction projects at year end. As of December 31, 2018, the City's
commitments with contractors are as follows:
Remaining
Project Spent to Date Commitment
Governmental activities:
Howard Park/Riverfront Trail Improvements 2,089,726$ 15,656,842$
Fire Station #4 3,077,134 273,928
Fire Station #9 1,674,818 1,676,244
Aerial Fire Truck 581,547 400,627
SBFD Training Center Classroom Building 63,807 586,131
Parks Maintenance Storage Building 42,658 345,232
Parks Experiential Vehicle 250,000 350,000
Charles Black Center Renovations 3,725,555 247,905
Erskine Golf Course 133,408 853,734
Lincolnway East Corridor Improvements 405,774 69,611
LWW and Charles Martin Sr. Drive Improvements 1,042,032 153,231
St. Joseph Streetscape Improvements 334,308 91,921
Miami Basin Improvements 53,959 439,041
One Way to Two Way Conversion:
Chippewa Avenue Roundabout 4,535,063 305,658
Total - governmental activities 18,009,789 21,450,105
Business-type activities:
Water Utility:
North Station Well #1 Replacement 103,654$ 33,824$
Prairie Ave Water Main Loop 129,304 63,196
South Wellfield, Plant & Pressure Zone Improvements 198,000 52,000
Wastewater Utility:
Secondary Clarifier Rehab/Secondary Treatment Impr.16,031,207 3,999
WWTP Influent Gates Improvement 588,208 484,012
Airport Annexation Area Sanitary Sewer Extension 82,398 684,559
Farmington 14A Lift Station Rehabilitation 319,534 41,044
WWTP Electrical Improvements 376,974 5,955,366
WWTP Belt Filter Press No. 1 Rehabilitation -203,131
WWTP Raw Sewage Pump No. 2 Rehabilitation 11,754 358,246
Total - business-type activities 17,841,033 7,879,377
Total 35,850,822$ 29,329,482$
62
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 7 - Interfund Receivables, Payables, and Transfers
Interfund balances resulted from the time lag between the dates that (1) interfund loans are
repaid, (2) interfund goods and services are provided or reimbursable expenditures occur,
(3) transactions are recorded in the accounting system, and (4) payments between funds
are made. The composition of interfund balances at December 31, 2018 is as follows:
The City has made the following long-term advances between funds:
Receivable Fund Payable Fund Amount
Due to/from Other Funds
General River West TIF 21,833$
River West TIF Nonmajor governmental 1,761
Nonmajor governmental River West TIF 21,833
Water Utility General 12,908
Parks & Rec 7,132
Wastewater Utility 1,585
Century Center 4,204
Nonmajor enterprise 2,952
Internal service 1,215
Total Water Utility 29,996
Wastewater Utility Water Utility 10,380
Total 85,803$
Receivable Fund Payable Fund Amount
Advances from/to Other Funds
General Nonmajor governmental 425,680$
COIT Nonmajor governmental 480,253
Nonmajor governmental River West TIF 200,000
Nonmajor governmental 2,781,424
Total nonmajor governmental 2,981,424
Total 3,887,357$
63
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 7 - Interfund Receivables, Payables, and Transfers (Continued)
Specific purposes of the advances are as follows: the General Fund advanced funds to the
Football Hall of Fame to cover operating expenses. The COIT Fund advanced funds to the
Urban Development Action Grant Fund for community development projects. Major Moves
advanced funds to the Douglas Road and River East Residential TIFs for project costs
incurred to construct roads and a parking garage.
Interfund transfers reported in the fund financial statements are comprised of the following:
Receiving Fund Paying Fund Amount
General Nonmajor governmental $ 14,709
Water Utility 1,730,831
Wastewater Utility 4,601,656
Internal Service 413,714
Total General 6,760,910
Parks and Recreation COIT 1,287,600
Nonmajor governmental 1,058,245
Total Parks and 2,345,845
COIT Nonmajor governmental 324,159
River West TIF Nonmajor governmental 47,597
Nonmajor governmental General 21,823
COIT 1,536,661
EDIT 5,582,998
River West TIF 4,267,975
Nonmajor governmental 7,001,472
Century Center 85,909
Nonmajor enterprise 221,939
Total nonmajor 18,718,777
Wastewater Utility Nonmajor governmental 368,196
Nonmajor enterprise EDIT 989,553
Nonmajor governmental 27,500
Nonmajor enterprise 26,979
Internal Service 25,425
Total nonmajor 1,069,457
Grand Total $ 29,634,941
64
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 7 - Interfund Receivables, Payables, and Transfers (Continued)
The City typically uses transfers to fund ongoing operating subsidies. Specific purposes
of the transfers are as follows: The Water and Wastewater Utility Funds transferred PILOT
funds to the General Fund for general use. The COIT, EDIT, River West TIF, Cumulative
Capital Improvement, and TIF River East Residential Funds transferred funds to the
Redevelopment Authority and South Bend Building Corporation Debt Services Funds for
debt service payments. The COIT and EDIT Funds transferred funds to the Motor
Vehicle Highway Fund for general operations as well as for the curb and sidewalk
improvements. The EDIT Fund transferred funds to the DCI Operating Fund for salaries
and wages relating to community investment initiatives and to the Unsafe Building Fund
and Consolidated Building Fund for general operations of the Unsafe Building, Code
Enforcement and Animal Care & Control. The Local Roads and Streets and LOIT 2016
Special Distribution Funds transferred matching grant funds to the Local Road and
Bridge Matching Grant Fund. The Leaf Collection and Removal Fund transferred funds
collected from customers for leaf collection to the Motor Vehicle Highway Fund to cover
supervisory personnel in charge of the Leaf Collection and Removal program.
Note 8 - Leases
Operating Leases
The City has entered into various operating leases having initial or remaining noncancelable
terms exceeding one year for golf cart global positioning systems, office machines, and
office space. Rental expenditures for these leases were $160,866. The following is a
schedule by years of future minimum rental payments as of December 31, 2018:
Years
Ending
December 31 Amount
135,161$
113,390
82,750
83,852
2019
2020
2021
2022
2023 68,462
Total 483,615$
65
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 8 - Leases (Continued)
Capital Leases
The City has entered into various lease agreements as lessee for financing the purchase
of 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,
2018 are as follows:
Assets acquired through capital leases still in effect are as follows:
Years Ending Governmental Business-type
Dec ember 31 Activities Activities
2019 4,126,270$ 2,577,008$
2020 3,742,865 2,519,368
2021 3,150,777 1,723,664
2022 1,523,771 1,241,249
2023 737,233 310,475
2024-2028 400,000 -
Total minimum lease payments 13,680,916 8,371,764
Less amount representing interest 848,721 377,059
Present value 12,832,195$ 7,994,705$
Governmental Business-type
Activities Activities
Buildings -$1,324,615$
Machinery and equipment 10,266,039 6,585,672
Total 10,266,039 7,910,287
Accumulated depreciation (3,715,666) (3,122,825)
Net 6,550,373$ 4,787,462$
66
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 9 - Long-term Debt
Long-term debt activity for the year ended December 31, 2018 can be summarized as
follows:
Governmental Activities
Due
Beginning Ending Within
Balance Additions Reductions Balance One Year
Governmental Activities
Bonds payable:
General obligation*14,075,000$ 5,045,000$ (425,000)$ 18,695,000$ 940,000$
Less unamortized (discounts)/premiums 6,478 37,316 (1,149) 42,645 -
Net - general obligation 14,081,478 5,082,316 (426,149) 18,737,645 940,000
Mortgage 9,556,860 - (1,801,815) 7,755,045 1,864,355
Less unamortized (discounts)/premiums 668,112 - (122,303) 545,809 -
Net - mortgage 10,224,972 - (1,924,118) 8,300,854 1,864,355
Revenue 109,878,855 15,435,000 (7,080,635) 118,233,220 7,338,538
Less unamortized (discounts)/premiums 2,008,676 442,292 (200,275) 2,250,693 -
Net - revenue 111,887,531 15,877,292 (7,280,910) 120,483,913 7,338,538
Total bonds payable 136,193,981 20,959,608 (9,631,177) 147,522,412 10,142,893
Notes and loans payable 4,437,115 - (328,293) 4,108,822 347,671
Capital leases 9,795,612 6,759,121 (3,722,538) 12,832,195 3,813,983
Subtotal 150,426,708 27,718,729 (13,682,008) 164,463,429 14,304,547
Accumulated Compensated Absences 5,503,833 6,316,138 (5,503,833) 6,316,138 6,316,138
Net pension liability 178,885,176 -(15,348,583) 163,536,593 -
Total other postemployment
benefits (OPEB) liability** 28,740,294 - (5,534,207) 23,206,087 -
Total governmental activities 363,556,011$ 34,034,867$ (30,779,059)$ 366,811,819$ 20,620,685$
* - General Obligation bonds have been reclassified and were previously reported as revenue bonds payable at 12-31-17
** - Total OPEB obligation beginning balance has been restated - see note 21
67
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 9 - Long-term Debt (Continued)
Business-type Activities
Total interest expense for the year was $8,228,307.
Revenue Bonds
The City issues bonds to provide for the acquisition and construction of major capital
facilities. Revenue bonds involve a pledge of specific income derived from the acquired or
constructed assets and to pay debt service.
The City has pledged future revenue, net of operating expenses, to repay water and
wastewater utilities' bonds. Bond ordinances require monthly deposits of a portion of user
fee revenue sufficient to meet requirements of the next principal, interest, and bank fiscal
charge payment. Water and wastewater bond ordinances also require monthly deposits of
user fee revenues over 60 months to produce a bond reserve equal to approximately the
maximum annual debt service.
During 2018, the Water Utility paid $714,573 in debt payments or approximately 4.3 percent
of operating revenue. The Wastewater Utility paid $9,854,506 in debt payments or
approximately 24.7 percent of operating revenue.
The City has pledged tax incremental financing revenue to meet tax incremental financing
and Redevelopment Authority debt requirements. The City has pledged economic
development income taxes (EDIT) to meet the EDIT revenue bond debt requirements with
payments of debt service of $ 578,072 during 2018. The City has also pledged taxes in the
Professional Sports and Convention Development (PSCD) Area to meet the PSCD revenue
bonds with payments of debt service of $814,070 during 2018.
Due
Beginning Ending Within
Balance Additions Reductions Balance One Year
Business-type activities:
Bonds payable:
Mortgage 5,188,140$ -$ (298,185)$ 4,889,955$ 310,645$
Less unamortized (discounts)/premiums 67,343 - (5,319) 62,024 -
Net - mortgage 5,255,483 - (303,504) 4,951,979 310,645
Revenue 87,065,000 - (6,980,000) 80,085,000 8,635,000
Less unamortized (discounts)/premiums 154,814 - (61,710) 93,104 -
Net - revenue 87,219,814 - (7,041,710) 80,178,104 8,635,000
Total bonds payable 92,475,297 - (7,345,214) 85,130,083 8,945,645
Capital leases payable 7,456,168 2,866,214 (2,327,677) 7,994,705 2,415,533
Notes and loans payable:2,398,821 - (167,038) 2,231,783 215,694
Total business-type activities
long-term liabilities 102,330,286$ 2,866,214$ (9,839,929)$ 95,356,571$ 11,576,872$
68
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 9 - Long-term Debt (Continued)
Bonds outstanding at December 31, 2018 are as follows:
Governmental Activities
General Obligation Bonds
South Bend Park District Bonds, Series 2017(A-K)
- Interest rates 3% - 3.25%
- Original iss ue $14,075,000
- Installments of $350,000 to $580,000 plus interest
- Maturity January 15, 2033 13,725,000$
General Obligation Bonds, Series 2018 (Fire Station #9)
- Interest rates 3% - 3.25%
- Original issue $5,045,000
- Installments of $75,000 to $170,000 plus interest
- Maturity January 15, 2038 4,970,000
Subtotal 18,695,000
Mortgage Bonds
- Interest rates 2% - 5%
- Original issue $6,075,000, 87.7% Governmental ($5,327,775)
- Installments of $240,000 to $330,000 plus interest 1,390,045
- Maturity February 1, 2021
- Interest rates 2.1% - 5%
- Original issue $13,595,000
- Installments of $545,000 to $770,000 plus interest
- Maturity February 1, 2023 6,365,000
Subtotal 7,755,045
Building Corporation County Option Income Tax Lease
Rental Revenue Refunding Bonds
of 2010 (Public Works Service Center)
Building Corporation First Mortgage Revenue Refunding
Bonds, Series 2012 (Police & Fire Station Projects)
69
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 9 - Long-term Debt (Continued)
Revenue Bonds
Indiana Bond Bank Special Program Bonds, Series 2011A (TIF A)
- Interest rates 4% - 5.2%
- Original is s ue $18,030,000
- Installments of $260,000 to $935,000 plus interest 9,810,000
Indiana Bond Bank Special Program Bonds, Series 2011A (TIF B)
- Interest rates 4% - 5.2%
- Original issue $10,435,000
- Installments of $254,036 to $530,000 plus interest
- Maturity August 1, 2024 5,585,000
- Interest rates 2% - 3%
- Original issue $3,440,000
- Installments of $395,000 to $470,000 plus interest
- Maturity January 1, 2022 1,795,000
- Interest rates 2% - 5%
- Original issue $31,450,000
- Installments of $650,000 to $1,210,000 plus interest
- Maturity February 15, 2033 27,400,000
- Interest rates 2% - 4%
- Original issue $3,990,000
- Installments of $160,000 to $375,000 plus interest *
- Maturity May 1, 2026 2,565,000
- Interest rates 1.75% - 5.2%
- Original issue $4,980,000
- Installments of $285,000 to $345,000 plus interest
- Maturity January 5, 2019 345,000
South Bend Redevelopment Authority Lease Rental Revenue
Bonds of 2015
(Refunding 2008)
South Bend Redevelopment Authority Lease Rental Revenue
Refunding Bonds,
Redevelopment District Taxable Revenue Bonds, Series
2010 (Recovery Zone Economic Development Bonds)
South Bend Redevelopment District Special Taxing District
Refunding Bonds of 2014
70
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 9 - Long-term Debt (Continued)
2014 St. Joseph County PSAP (EDIT) Revenue Bonds
- City's portion of $9.155M bond (29.03%)
- Interest rates 2% - 3.625%
- Original issue $2,657,697
- Installments of $9,314 to $12,700 plus interest
- Maturity December 31, 2034 2,148,220
- Interest rates 3% - 4%
- Original issue $25,000,000
- Installments of $460,000 to $840,000 plus interest
- Maturity February 1, 2037 23,600,000
Economic Development Income Tax Bonds of 2015 (Parks Projects)
- Interest rates 3% - 3.75%
- Original issue $5,605,000
- Installments of $16,667 to $65,000 plus interest
- Maturity August 1, 2035 4,980,000
Taxable Economic Development Revenue Bonds, Series 2017 (Eddy Street Phase II)
- Interest rate 5%
- Original issue $25,000,000
- Installments of $628,472 to $1,834,750 plus interest
- Maturity February 15, 2037 24,975,000
Redevelopment District Bonds, Series 2018 (Parks Projects)
- Interest rates 2% - 3%
- Original issue $11,995,000
- Installments of $405,000 to $490,000 plus interest
- Maturity February 1, 2033 11,590,000
Economic Development Revenue Bonds, Series 2018 (Potawatomi Zoo Project)
- Interest rates 4% - 5%
- Original issue $3,440,000
- Installments of $25,000 to $155,000 plus interest
- Maturity February 1, 2034 3,440,000
Total Governmental Revenue Bonds 118,233,220
Total Governmental Activities 144,683,265$
* - St. Joseph County has irrevocably pledged hotel-motel tax
revenues to finance debt payments
South Bend Redevelopment Authority Lease Rental Revenue
Bonds of 2015 (Smart Streets Project)
71
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 9 - Long-term Debt (Continued)
Business-Type Activities:
Mortgage Bonds
- Interest rates 2% - 5%
- Original issue $6,075,000, 12.3% Business-Type ($747,225)
- Installments of $240,000 to $330,000 plus interest
- Maturity February 1, 2021 194,955$
Building Corporation First Mortgage Revenue Bonds, Series 2013
- Interest rates 3% to 4.2%
- Original issue $5,580,000
- Installments of $215,000 to $425,000 plus interest
- Maturity February 1, 2033 4,695,000
Total Business-Type Mortgage Bonds 4,889,955
Revenue Bonds
Water Works Refunding Revenue Bonds of 2012B
- Interest rate 2%
- Original issue $3,785,000
- Installments of $335,000 to $425,000 plus interest
- Maturity January 1, 2023 2,005,000
Water Works Revenue Bonds of 2009, Series B
- Interest rates 3.8% - 5.89%
- Original issue $5,380,000
- Installments of $195,000 to $455,000 plus interest
- Maturity January 1, 2030 4,085,000
Sewage Works Revenue Bonds of 2010
- Interest rates 2% - 4.5%
- Original issue $9,345,000
- Installments of $365,000 to $665,000 plus interest
- Maturity December 1, 2030 6,345,000
Sewage Works Revenue Bonds of 2011
- Interest rates 3% - 4%
- Original issue $21,500,000
- Installments of $760,000 to $1,510,000 plus interest
- Maturity December 1, 2031 15,480,000
Building Corporation County Option Income Tax Lease
Rental Revenue Refunding Bonds
72
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 9 - Long-term Debt (Continued)
Water Works Revenue Bonds of 2012
- Interest rates 2% - 3.7%
- Original issue $8,300,000
- Installments of $340,000 to $540,000 plus interest
-Maturity January 1, 2033 6,570,000
Sewage Works Revenue Bonds Series 2012
- Interest rates 2% - 2.75%
- Original issue $25,000,000
- Installments of $1,105,000 to $1,650,000 plus interest
- Maturity December 1, 2032 18,755,000
Sewage Works Refunding Revenue Bonds of 2013A
- Interest rate 1.94%
- Original issue $14,765,000
- Installments of $715,000 to $1,065,000 plus interest
- Maturity December 1, 2024 4,100,000
Sewage Works Refunding Revenue Bonds of 2015
- Interest rate 2%
- Original issue $27,440,000
- Installments of $2,475,000 to $3,025,000 plus interest
- Maturity December 1, 2025 19,850,000
Water Works Refunding Revenue Bonds of 2016
- Interest rate 3%
- Original issue $3,300,000
- Installments of $260,000 to $440,000 plus interest
- Maturity January 1, 2027 2,895,000
Total Business-Type Revenue Bonds 80,085,000
Total Business-Type Activities 84,974,955$
73
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 9 - Long-term Debt (Continued)
Notes and Loans Payable
Notes and loans payable outstanding at December 31, 2018 are as follows:
Other Long-term Liabilities
Compensated absences for governmental activities typically have been liquidated from the
General Fund and special revenue funds. All of the December 31, 2018 business-type
activities' compensated absences are due within one year. The net 1925 Police and 1937
Firefighters' pension liability will be liquidated from the pension trust funds. The Public
Employees' Retirement Fund (PERF) liability will not be liquidated from the pension
trust funds. The total OPEB liability will be liquidated from the General Fund.
Debt Service Requirements to Maturity
Annual debt service requirements to maturity for the above bonds and note obligations are
as follows:
Purpose Outstanding
Governmental Activities
Indiana Development Finance Authority (Bosch Project)
Interest rate: 3.034%
Original issue: $1,040,000
Installments of $18,003 per quarter, includes interest
Maturity: March 22, 2021
2015 Century Center Energy Conservation Bond
Interest rates: 3.5%
Original issue: $4,167,897
Installments of $22,585 to $176,508 plus interest
Maturity: May 1, 2031
Total governmental activities $ 4,108,822
Business type Activities
2009 Water Works State Revolving Loan
Interest rate: 3.37%
Original issue: $427,332
Installments of $17,719 to $29,459 plus interest
Maturity: January 1, 2030
2009 Sewage Works State Revolving Loan
Interest rate: 2.81%
Original issue: $3,297,000
Installments of $130,201 to $220,378 plus interest
Maturity: December 1, 2028
Total business type activities $ 2,231,783
$ 172,818
3,936,004
$ 311,650
1,920,133
74
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 9 - Long-term Debt (Continued)
Note 10 - Restricted Assets
At December 31, 2018, the balances of restricted assets in the enterprise funds are
comprised of the following:
Cash with fiscal agent includes $1,124,436 for capital asset purchases and $204,280 for
debt purchases.
Note 11 - Property Held for Resale
The City's Redevelopment Commission has purchased properties in blighted areas for
redevelopment and subsequent resale. At December 31, 2018, the market value of these
properties was not known. These properties are recognized as assets in the funds that
purchased the property.
Note 12 - Service Concession Agreement
On July 1, 2013, the City entered into a Service Concession Agreement (SCA) with SMG,
a civic center management company, with the purpose of obtaining high-quality
professional management of the Century Center. The initial term of the contract extends
through June 30, 2016, has been extended through December 31, 2019, and is renewable
for an additional three-year period. SMG’s compensation is a flat fee of $135,000 for the
first year and is then adjusted by the CPI (Consumer Price Index) for each successive year.
There are also additional financial incentives based on various operational goals. SMG is
responsible for all operations and financial reporting.
Additionally, SMG contributed a one-time capital infusion of $575,000, to be used for capital
improvement that will be amortized over seventy-two (72) months. Both parties retain
certain rights regarding operations and contract cessation.
Governmental Activities Business-type Activities
Principal Interest Total Principal Interest Total
2019 10,490,564$ 5,600,011$ 16,090,575$ 9,161,339$ 2,822,926$ 11,984,265$
2020 10,227,967 5,256,460 15,484,427 7,733,376 2,346,547 10,079,923
2021 10,610,632 4,884,199 15,494,832 7,910,986 2,149,441 10,060,427
2022 10,410,874 4,451,935 14,862,808 8,096,301 1,948,819 10,045,120
2023 10,081,274 4,010,307 14,091,581 7,892,376 1,737,211 9,629,587
2024-2028 38,388,322 14,952,581 53,340,903 30,042,901 5,580,284 35,623,185
2029-2033 38,722,950 8,237,382 46,960,331 16,369,459 1,294,651 17,664,110
2034-2038 19,859,505 1,791,428 21,650,932 - - -
Totals 148,792,087$ 49,184,303$ 197,976,389$ 87,206,738$ 17,879,881$ 105,086,619$
Century Consolidated
Total Water Wastewater Center Building Solid Waste EMS
Cash, cash equivalents, and investments:
Debt service fund 2,689,746$ 1,726,068$ 963,678$ -$ -$ -$ -$
Customer repair and deposit fund 3,518,128 1,298,632 2,219,496 - - - -
Cash with fiscal agent 1,328,716 33,038 435,558 - 107,827 132,488 619,805
Bond reserve fund 5,594,265 1,390,019 4,204,246 - -- -
Operating reserve fund 8,049,617 2,663,671 5,385,946 - -- -
Capital outlay accounts 13,847,434 1,888,226 9,100,782 857,363 - 44,495 1,956,568
Total restricted assets 857,363$ 35,027,906 $ 8,999,654 $ 22,309,706 $ 107,827$ 176,983$ 2,576,373$
75
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 13 - Risk Management
The City 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 provided 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 City has chosen to establish a risk financing fund for risks associated with job-related
illnesses or injuries to employees, automobile liability, and comprehensive liability. The risk
financing fund is accounted for in the Liability Insurance Premium Reserve Fund, an internal
service fund, whereby assets are set aside for claim settlements. Excess policies through
commercial insurance covers individual claims in excess of $400,000 per claim for job-
related illnesses or injuries to employees (workers' compensation) and claims for damage
to and destruction of assets (property damage) with various self-retention amounts. In
recent years, claims resulting from property damage exceeded the property insurance self-
retention amount. Claims resulting from this risk exceeded the self-retention amount during
2016, 2017, and 2018 by $425,000, $218,522, and $ 238,638, respectively. A premium is
charged to each fund based on a study of paid claims and based on the number of
employees and percent of the total budget. Provisions are also made for unexpected and
unusual claims.
In February, 2018, heavy rainfall resulted in flooding that damaged several City-owned
parks and trails along the St. Joseph River, along with a pumping station owned by the
City’s utilities. The extent of the damage is still being assessed, but will be far in excess of
the City’s property damage insurance deductible. A significant portion of this repair cost will
be recouped through the City’s insurance plan and through the Federal Emergency
Management Agency (FEMA).
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 payouts, and other economic and social factors. The entire
insurance liability balance is reported as a current liability as the City has the intent to pay
within one year.
Group Health Insurance
The City 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 Self-Funded Employee Benefits Fund, an internal service fund, whereby assets
are set aside for benefit costs. An excess policy through commercial insurance covers
individual claims in excess of $300,000 per year. Claims resulting from this risk exceeded
the self-retention amount during 2016, 2017, and 2018 by $1,585,602, $109,466, and
$347,097, respectively. 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.
76
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 13 - Risk Management (Continued)
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 payouts, and other economic and social factors.
Changes in the estimated liability for the past two fiscal years were as follows:
Note 14 - Subsequent Events Update
On January 14, 2019, the Common Council of the City of South Bend approved a $2 per
month fee to increase sewer bills, with the intention to speed implementation of the City’s
Stormwater system.
On February 28, 2012, the City, the United States of America, and the State of Indiana,
agreed to a consent decree to resolve claims against the City for alleged violations of the
Clean Water Act. The decree includes several provisions, including a long term control
plan that requires the City to complete a construction program by December 31, 2031 at a
cost of approximately $509.5 million in 2007 dollars to comprehensively upgrade and
expand the City's sewage collection, storage, conveyance, and treatment system. Under
this agreement South Bend was required to undertake a review of the Plan after 5 years
and this review was completed in 2017. The review resulted in a revised plan that calls for
a reduced investment of $200 million in 2017 dollars. The plan will meet the same
environmental goals and will still run to 2031. South Bend is currently working with State
and Federal environmental regulators to have this new more cost efficient plan formally
endorsed.
Note 15 - Conduit Debt Obligation
From time to time, the City has issued conduit debt obligations to provide financial
assistance to private sector entities for the acquisition and construction of industrial and
commercial facilities deemed to be in the public interest. The bonds are secured by the
property financed and are payable solely from payments received on the underlying
mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers
to the private sector entity served by the bond issuance. Neither the City, the State, nor any
political subdivision thereof is obligated in any manner for the repayment of the bonds.
Accordingly, the bonds are not reported as liabilities in the accompanying financial
statements.
As of December 31, 2018 there were several series of conduit debt obligations outstanding.
The City has been unable to obtain the total outstanding principal amount for
the outstanding bonds. During 2018 the City approved no new conduit debt obligations.
2018 2017 2018 2017
Unpaid claims - Beginning of year 1,175,541$ 1,303,401$ 934,220$ 1,014,214$
Incurred claims, including claims
incurred but not reported 2,932,213 686,896 14,423,269 13,366,020
Claim payments (1,967,828) (814,756) (14,438,474) (13,446,014)
Unpaid claims - End of year 2,139,926$ 1,175,541$ 919,015$ 934,220$
Liability Insurance Group Health
77
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 16 - Fund Balance Constraints
The detail of the various components of fund balance is as follows:
Public Safety LOIT funds are primarily restricted for payment of police and fire personnel. Parks
and Recreation funds are restricted primarily for parks and recreation operating costs, including
personnel. COIT and EDIT funds are assigned to general government primarily for debt service
payments and operating expenses. River West TIF and Redevelopment Authority Debt Service
are restricted for economic development projects and debt service.
The government-wide statement of net position reports restricted net position for debt service
and capital outlay, which is restricted by enabling legislation.
Parks and Public River West Nonmajor
General Fund Recreation Safety LOIT COIT EDIT Rainy Day TIF Funds Total
Fund Balances
Nonspendable:
Advances to other funds 425,680$ - - - - $ 425,680
Inventory - 22,322 - - - - - - 22,322
Property held for resale - --
Noncurrent loans
- receivable - - - - - - -
Total 425,680 22,322 -448,002
Restricted:
Debt service - - - - - - - 11,252,528 11,252,528
General administration - - - - - - - 2,951,636 2,951,636
Police and fire salaries - - 1,837,077 - - - - - 1,837,077
Police and fire projects - - - - - - - 963,193 963,193
Street maintenance - - - - - - - 13,227,338 13,227,338
Economic development
projects - - - - - - 38,008,486 42,324,128 80,332,614
Parks maintenance - 7,373,139 - - - - - - 7,373,139
Public safety capital projects - -- - - - - 6,199,225 6,199,225
Cultural capital projects - -- - - - - 23,085,591 23,085,591
Street capital projects - -- - - - - 5,586,780 5,586,780
Total - 7,373,139 1,837,077 - - - 38,008,486 105,590,419 152,809,121
Committed:
General administration - - - - - - - 1,164,412 1,164,412
Street capital projects - - - - - - - - -
Police and fire programs - - - - - - - 134,055 134,055
Economic development
projects - - - - - - - 1,009,806 1,009,806
Cultural capital - - - - - - - 901,227 901,227
Total - - - - - - - 3,209,500 3,209,500
Assigned:
General administration 820,914 - - 11,635,392 15,266,520 10,468,726 - - 38,191,552
Police and fire capital - - - - - - - 2,337 2,337
Street maintenance - - - - - - - 625,465 625,465
Economic devlopment
administration - - - - - - - 709,547 709,547
Total 820,914 - - 11,635,392 15,266,520 10,468,726 - 1,337,349 39,528,901
Unassigned 37,383,206 - - - - - - 37,383,206
Total fund balance 38,629,800$ 7,395,461$ 1,837,077$ 11,635,392$ 15,266,520$ 10,468,726$ 38,008,486$ 110,137,268$ 233,378,730$
-
-
--
-- -
-
--
--
-
-
-
-
78
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 17 Segment Information
Types of Goods or Services Provided:
Condensed Statement of Net Position
Assets:
Cash and cash equivalents 4,099,519$
Receivables 1,448,972
Prepaid items 8,859
Restricted cash and cash equivalents 2,576,373
Capital assets (net of accumulated depreciation)4,263,727
Total assets 12,397,450
Liabilities:
Current liabilities 1,144,652
Mortgage bonds payable, net 4,521,868
Capital leases payable 1,271,825
Total liabilities 6,938,345
Net position:
Net investment in capital assets (1,706,507)
Restricted 2,083,004
Unrestricted 5,082,608
Total net position 5,459,105$
Condensed Statement of Revenues, Expenses, and Changes in Net Position
Operating revenues 6,727,643$
Other operating expenses (7,231,819)
Depreciation expense (494,269)
Operating income (998,445)
Nonoperating revenues (expenses):
Interest revenue 133,136
Interest expense (196,599)
Loss on exchange of capital assets (1,064,653)
Interfund transfers in 25,425
Interfund transfers out (221,939)
Change in net position (2,323,075)
Total net position - beginning, restated 7,782,180
Total net position - ending 5,459,105$
Condensed Statement of Cash Flows:
Net cash provided (used) by:
Operating activities 720,871$
Noncapital financing activities (196,514)
Capital and related financing activities (226,228)
Investing activities 450,073
Net increase in cash and cash equivalents 748,202
Cash and cash equivalents, January 1 1,895,912
Cash and cash equivalents, December 31 2,644,114$
Emergency Medical Services: Used to account for the
operations and purchases of necessary equipment for the Fire
Department and Emergency Medical Services Department.
79
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 18 – Other Postemployment Benefits
Plan Description
The City of South Bend Retiree Healthcare Plan (SBRHP) 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. Indiana Code 5-10-8
gives the unit the authority to establish and amend the plan. No assets are accumulated in
a trust that meets the criteria in paragraph 4 of Statement 75.
The City issues a publicly available financial report that includes financial statements and
required supplementary information for the plan. The report is available by contacting the
City Controller's office: 227 West Jefferson Blvd. Rm. 1200N, South Bend, IN 46601, Ph.
(574) 235-9216.
Benefits Provided and Funding Policy
SBRHP provides for medical insurance benefits to eligible retirees and their spouses.
Police officers and firefighters are eligible for retiree health coverage once they attain age
50 with 20 years of service. General employees are eligible for retiree health coverage
upon satisfaction of:
Rule of 85 and age 55; or
Age 65 with 10 years of service; or
Age 60 with 15 years of service
Health care coverage ceases when the retiree or dependent reaches age 65.
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, 2018, the City contributed $758,730 to the plan for current
premiums. Police and fire members receiving benefits contributed approximately 37 percent
of the total premiums through their required contribution of $214 per month for retiree-only
coverage and approximately 43 percent of the total premiums through their required
contribution of $643 for retiree and spouse coverage. General employee members
receiving benefits contributed approximately 100 percent of the total premiums through their
required contribution of $605 and $552 per month for retiree-only coverage and $1,587 and
$1,429 for retiree and spouse coverage for the PPO and HDHP plans, respectively.
Employees Covered by Benefit Terms
At December 31, 2018, the following employees were covered by the benefit terms:
950
147
Active employees with coverage
Active employees without coverage
Retirees 69
1,166
80
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 18 – Other Postemployment Benefits (Continued)
Total OPEB Liability
The City’s total OPEB liability of $23,206,087 was measured as of December 31, 2018, and
was determined by an actuarial valuation as of that date.
Actuarial Assumptions and Other Inputs
The total OPEB liability in the December 31, 2018 actuarial valuation was determined using
the following actuarial assumptions and other inputs, applied to all periods included in the
measurement, unless otherwise specified:
The discount rate was based on a yield for 20-year tax-exempt general obligation municipal
bonds (Bond Buyer Go 20) with an average rating of AA/Aa or higher (or equivalent quality
on another rating scale).
Mortality rates for healthy retirees were based on the SOA RPH-2018 Total Dataset
Mortality Table fully generational using Scale MP-2018 (RPH-2018 table is created based
on RPH-2014 mortality tables with 8 years of MP-2014 mortality improvement backed out,
projected to 2018 using MP-2018 improvement.)
The actuarial assumptions used in the December 31, 2018 valuation were based on the
results of an actuarial experience study for the year ending December 31, 2007.
The healthcare coverage election rate was 65% for active police and fire with current
coverage, 40% for active general employees with current coverage, and 0% for active
employees with no coverage.
Changes in the Total OPEB Liability
Inflation 2.25 percent per year
Salary increases 2.25 percent, average, including inflation
Discount rate 4.11 pecent as of December 31, 2018 and 3.44% as of January 1, 2018
Healthcare cost trend rates
Retirees' share of benefit-related costs
9.0 percent for 2018, decreasing 0.5 percent per year to an ultimate rate of
4.5 percent for 2027 and later years
approximately 37 percent for projected health insurance premiums for retirees
and approximately 43% fore retiree and spouse
Total OPEB
Liability
Balance at 1-1-18 28,740,294$
Changes for the year:
Service cost 1,489,465
Interest 1,026,964
Changes in benefit terms -
Differences between expected and actual experience 1,503,991
Changes in assumptions or other inputs (8,795,897)
Benefit payments (758,730)
Net changes (5,534,207)
Balance at 12-31-18 23,206,087$
81
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 18 – Other Postemployment Benefits (Continued)
There have been no substantive plan provision changes since the last full valuation, which
was for the fiscal year ending December 31, 2017.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total
OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (3.11 percent) or 1-percentage-point higher (5.11 percent) than the current discount
rate:
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City’s total
OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-
percentage-point lower (8.5 percent decreasing to 4.5 percent) or 1-percentage-point
higher (10.5 percent decreasing to 6.5 percent) than the current healthcare cost trend rates:
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
For the year ended December 31, 2018, the City recognized OPEB expense of $1,853,528.
At December 31, 2018, the City reported deferred outflows of resources and deferred
inflows of resources related to OPEB from the following sources:
1% Decrease Discount Rate 1% Increase
(3.11%)(4.11%)(5.11%)
Net OPEB Liability 25,419,539$ 23,206,087$ 21,189,095$
Healthcare
1% Decrease Cost Trend 1% Inc rease
(7.5%Rates (8.5%(9.5%
decreasing decreasing decreasing
to 3.5%to 4.5%to 5.5%
Total OPEB Liability 20,632,692$ 23,206,087$ 26,230,303$
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual 1,367,265$ -$
experience
Changes in assumptions or other inputs -(7,996,270)
Total 1,367,265$ (7,996,270)$
82
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 18 – Other Postemployment Benefits (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
Note 19 - Pension Plans
Plan Description
Public Employees' Retirement Fund
The Public Employees' Retirement Fund, a cost-sharing multiple-employer plan,
administered by the Indiana Public Employees' Retirement Plan (INPRS) Board, provides
pensions for all full-time employees other than police officers and firefighters, who are
covered under the 1977 Police Officers' and Firefighters' Pension and Disability Fund. The
pension system issues a publicly available financial report that can be obtained at
http://www.inprs.in.gov.
1977 Police Officers' and Firefighters' Pension and Disability Fund
The 1977 Police Officers' and Firefighters' Pension and Disability Fund, a cost-sharing
multiple-employer plan administered by the Indiana Public Employees' Retirement Plan
(INPRS) Board, provides pensions for all police officers and firefighters hired after April 30,
1977. The pension system issues a publicly available financial report that can be obtained
at http://www.inprs.in.gov.
1925 Police Officers' Pension Plan
The City contributes to the 1925 Police Officers' Pension Plan, a single-employer defined
benefit pension plan administered by the local pension board as authorized by state statute
(IC 36 8 6). The financial statements of the plan are included in these financial statements
as a pension and other employee benefit trust fund (a fiduciary fund).
Management of the 1925 Police Officers' Pension plan is vested in the pension board, which
consists of nine members - six elected by plan members, the Mayor, the Chief, and the City
Controller.
The pension plan is closed to new entrants.
Year ended December 31:
2019 (662,901)$
2020 (662,901)
2021 (662,901)
2022 (662,901)
2023 (662,901)
Thereafter (3,314,500)
83
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
1937 Firefighters' Pension Plan
The City contributes to the 1937 Firefighters' Pension Plan, a single-employer defined
benefit pension plan administered by the 1937 Firefighters' Pension Plan Board as
authorized by state statute (IC 36 8 6). The financial statements of the plan are included in
these financial statements as a pension and other employee benefit trust fund (a fiduciary
fund).
Management of the 1937 Firefighters' Pension Plan is vested in the pension board.
The pension plan is closed to new entrants.
Benefits Provided
Public Employees' Retirement Fund
These plans provide retirement, disability and survivor benefits for public employees not
covered by the 1977 Police Officers’ and Firefighters’ Pension and Disability Fund. The
Indiana Code, Title 5, Articles 10.2 and 10.3, as amended only by the Indiana General
Assembly, identifies the benefit provisions and establishes the authority under which
members and employers are obligated to contribute to the plan. The City of South Bend
participates in two different plans for non-Public Safety positions: the PERF Hybrid Plan
and the My Choice Retirement Savings Plan.
•PERF Hybrid Plan: Retirement benefits for employees are calculated as years of
credible service times the average highest 20 quarters of salary times 1.1 percent plus
the employee's Annuity Savings account. Normal retirement ages are age 65 and 10
years (eight years for certain elected officials) of creditable service, age 60 and 15 years
of creditable service, and age 55 if age and creditable service total at least 85, with early
retirement at 50 with 15 years of service. Vesting period is 10 years. An employee who
leaves service may withdraw his or her Annuity Savings Account contributions, plus any
accumulated interest. Benefit terms provide for annual cost of living adjustments to each
employee's retirement allowance subsequent to the employee's retirement date. The
annual adjustments are granted by the Indiana General Assembly on an ad hoc basis.
•My Choice Retirement Savings Plan: No defined benefit for employee. Employee
contributions are fully vested upon hire, employer contributions to employee account are
vested based upon full years of participation (20% per year – 5 full years for 100%
vesting).
1977 Police Officers' and Firefighters' Pension and Disability Fund
The plan provides retirement, disability, and death benefits. Benefit terms are established
and amended by State legislative action. Annual retirement benefits for employees are
calculated as 50 percent of first-class salary for 20 years of service plus one percent for
each six months of active service over 20 years up to a maximum of 12 years (for a total of
32 years of service and 74 percent of salary).. Normal retirement age is 52 with 20 years of
creditable service, with early retirement at 50. Employees are eligible for non duty disability
benefits after five years of service and for duty related disability benefits upon hire. Disability
retirement benefits are determined in the same manner as retirement benefits but are
payable immediately without an actuarial reduction.
84
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
Death benefits equal the benefit which would have been payable to a beneficiary if the
member had retired at age 50 or at death, whichever is later, under an effective election of
the joint and survivor option available for retirement benefits. An employee who leaves
service may withdraw his or her contributions, plus any accumulated interest. Benefit terms
provide for annual cost-of-living adjustments to each employee’s retirement allowance
subsequent to the employee’s retirement date. The annual adjustments are determined by
statue equal to the change in the Consumer Price Index but not in excess of a 3 percent
increase.
1925 Police Officers' Pension Plan
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 financial statements of the plan are included in these financial statements as a
pension trust fund (a fiduciary fund).
1937 Firefighters' Pension Plan
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 financial statements of the plan are included in these financial statements as a
pension trust fund (a fiduciary fund).
Employees Covered by Benefit Terms
The following members were covered by the benefit terms:
1925 Police Officers' 1937 Firefighters'
Pension Plan Pension Plan
Date of member count December 31, 2018 December 31, 2018
Inactive plan members or beneficiaries currently
receiving benefits 201 152
Active plan members 4 4
Total employees covered by the plan 205 156
Contributions
Public Employees' Retirement Fund
Per Indiana Code, Title 5, Articles 10.2 and 10.3, the contribution requirements of the active
employees and the participating employers are established and may be amended by the
INPRS Board based on recommendations by the INPRS actuary. Employees are required
to contribute 3 percent of their annual pay. The City’s contractually required contribution
rate for the year ended December 31, 2018 was 11.2 percent of annual payroll.
Contributions to the plan from the City were $3,385,879 for the year ended December 31,
2018.
85
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
1977 Police Officers' and Firefighters' Pension and Disability Fund
Per Indiana State statute (IC 36 8 8 and IC 36 8 8.5), the contribution requirements of the
active employees and the participating employers are established and may be amended by
the INPRS Board based on recommendations by the INPRS actuary. Employees are
required to contribute 6 percent of their annual pay. The City’s contractually required
contribution rate for the year ended December 31, 2018 was 17.5 percent of annual payroll.
Contributions to the plan from the City were $5,170,797 for the year ended December 31,
2018.
1925 Police Officers' Pension Plan
Plan members are required by state statute (IC 36 8 6 4) to contribute an amount equal to
six percent (6 percent) of the salary of a first class patrolman. The contribution requirements
of plan members are established by state statute. The City's annual pension cost and
related information, as provided by the actuary, is presented in this note. The net pension
liability (NPL) is considered an obligation of the City and is reflected in the statement of net
position. The State of Indiana is required by statute to reimburse the City for benefits paid
and has contributed $6,223,858 during 2018 on behalf of the City. The City has recognized
these on behalf payments as intergovernmental revenue and public safety expenditures in
the General Fund.
1937 Firefighters' Pension Plan
Plan members are required by state statute (IC 36 8 7 8) to contribute an amount equal to
six percent (6 percent) of the salary of a first class firefighter. The contribution requirements
of plan members are established by state statute. The City's annual pension cost and
related information, as provided by the actuary, is presented in this note. The net pension
liability (NPL) is considered an obligation of the City and is reflected in the statement of net
position. The State of Indiana is required by statute to reimburse the City for benefits paid
and has contributed $4,475,669 during 2018 on behalf of the City. The City has recognized
these on behalf payments as intergovernmental revenue and public safety expenditures in
the General Fund.
Net Pension Liability
The City chooses a date for each pension plan to measure its net pension liability. This is
based on the measurement date of each pension plan, which may be based on a
comprehensive valuation as of that date or based on an earlier valuation that has used
procedures to roll the information forward to the measurement date.
1977 Police
Officers’ and
Public Firefighters
Employees’ Pension and
Retirement Disability 1925 Police Officers’ 1937 Firefighters’
Fund Fund Pension Plan Pension Plan
Measurement date used for the
City NPL June 30, 2018 June 30, 2018 December 31, 2018 December 31, 2018
Based on a comprehensive
actuarial valuation as of June 30, 2018 June 30, 2018 December 31, 2018 December 31, 2018
86
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
Changes in the net pension liability during the measurement year were as follows:
1925 Police Officers' Pension Plan
The plan's fiduciary net position represents 1.16 percent of the total pension liability.
Changes in Net Pension Liability Total Pension Liability Plan Net Position Net Pension Liability
Balance at December 31, 2017 $85,694,021 $885,316 $84,808,705
Service cost 92,916 - 92,916
Interest 2,337,437 - 2,337,437
Changes in benefits - - -
Differences between expected
and actual experience 2,284,134 - 2,284,134
Changes in assumptions (2,697,730)- (2,697,730)
Contributions Employer - - -
Non-employer contributing
entity contributions - 6,220,658 (6,220,658)
Contributions Employee - - -
Net investment income - 15,219 (15,219)
Other revenue - - -
Benefit payments, including
refunds (6,146,696)(6,161,954)15,258
Administrative expenses - (10,054)10,054
Miscellaneous other charges - - -
Net changes: (4,129,939)63,869 (4,193,808)
Balance at December 31, 2018 $81,564,082 $949,185 $80,614,897
Increase (Decrease)
87
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
1937 Firefighters' Pension Plan
The plan's fiduciary net position represents 0.50 percent of the total pension liability.
Public Employees' Retirement Fund
At December 31, 2018, the City reported a liability of $19,812,587 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2018 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's actuarially required contribution for the year ended December 31, 2018, relative to all other contributing employers. At June 30, 2018, the City's proportion was 0.58323 percent, which was an increase of 0.00335% from its proportion measured as of June 30, 2017.
1977 Police Officers' and Firefighters' Pension and Disability Fund
At December 31, 2018, the City reported a pension asset of $3,021,911 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2018 and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of that date. The City's proportion of the net pension asset was based on the City's actuarially required contribution for the year ended December 31, 2018, relative to all other contributing employers. At June 30, 2018, the City's proportion was 3.43746 percent, which was a decrease of 0.06148 from its proportion measured as of
June 30, 2017.
Changes in Net Pension Liability Total Pension Liability Plan Net Position Net Pension Liability
Balance at December 31, 2016 $68,671,131 $466,258 $68,204,873
Service cost 98,529 - 98,529
Interest 1,815,032 - 1,815,032
Changes in benefits - - -
Differences between expected
and actual experience
(482,208)- (482,208)
Changes in assumptions (2,105,211)-(2,105,211)
Contributions Employer - - -
Non-employer contributing
entity contributions
- 4,472,469 (4,472,469)
Contributions Employee - - -
Net investment income - 7,596 (7,596)
Other revenue - - -
Benefit payments, including
refunds
(4,572,612)(4,618,617)46,005
Administrative expenses - (12,154)12,154
Miscellaneous other charges - - -
Net changes: (5,246,470)(150,706)(5,095,764)
Balance at December 31, 2017 $63,424,661 $315,552 $63,109,109
Increase (Decrease)
88
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Public Employees' Retirement Fund
1977 Police Officers' and Firefighters' Pension and Disability Fund
1925 Police Officers' Pension Plan
1937 Firefighters' Pension Plan
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Difference between expected and actual experience $ 259,110 $ 1,353
Changes in assumptions 47,204 3,181,186
Net difference between projected and actual earnings
on pension plan investments 586,771 -
Employer contributions to the plan subsequent to the
measurement date 1,675,591 -
Changes in proportion and difference between
employer contributions and proportionate share of
contributions
498,568 49,376
Total $ 3,067,244 $ 3,231,915
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and actual experience $ 5,590,194 $ 1,395,089
Changes in assumptions -6,696,031
Net difference between projected and actual earnings
on pension plan investments 1,031,376 -
Employer contributions to the plan subsequent to the
measurement date 2,792,597 -
Changes in proportion an ddifferences between
employer contributions and proportionate share of
contributions 96,299 108,415
Total $ 9,510,466 $ 8,199,535
Deferred Outflows of
Resources
Investment experience 219$
Deferred Outflows of
Resources
Investment experience 451$
89
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows (note that employer
contributions subsequent to the measurement date will reduce the net pension liability and
therefore will not be included in future pension expense):
Public Employees' Retirement Fund
1977 Police Officers' and Firefighters' Pension and Disability Fund
1925 Police Officers' Pension Plan
Years Ending
June 30 Amount
2019 $ 713,093
2020 (756,855)
2021 (1,445,612)
2022 (350,888)
2023 -
Thereafter -
Total (1,840,262)$
Years Ending
June 30 Amount
2019 $2,195,568
2020 (282,100)
2021 (2,121,866)
2022 (1,693,730)
2023 (702,005)
Thereafter 1,122,467
Total (1,481,666)$
Years Ending
June 30 Amount
2019 $55
2020 55
2021 55
2022 54
2023 -
Total 219$
90
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
1937 Firefighters' Pension Plan
Actuarial Assumptions
The total pension liability in each actuarial valuation was determined using the following actuarial assumptions applied to all periods included in the measurement:
1977 Police
Officers’ and
Public Firefighters 1925 Police 1937
Employees’ Pension and Officers’ Pension Firefighters’
Retirement Fund Disability Fund Plan Pension Plan
Inflation 2.25% 2.25% 2.25% 2.25%
Salary increases
including inflation) 2.5-4.25% 2.50% 2.50% 2.50%
Investment rate of return
(net of investment
expenses) 6.75% 6.75% 1.75% 1.75%
Mortality rates RP-2014 RP-2014 Blue RP-2014 Blue RP-2014 Blue
Mortality Table Collar Set Collar Set Collar Set
with adjustments Mortality Table Mortality Table Mortality Table
for mortality with adjustments with adjustments with adjustments
improvements for mortality for mortality for mortality
based on Social improvements improvements improvements
Security Administration based on Social based on Social based on Social
2014 Trustee report Security Admin. Security Admin. Security Admin.
2014 Trustee Rpt. 2014 Trustee Rpt. 2014 Trustee Rpt.
The actuarial assumptions used in the June 30, 2018 actuarial valuation date valuation were based on the results of an actuarial experience study for the four years ended June 30, 2014 update.
Discount Rate
As shown below, the discount rate used to measure the total pension liability was determined after considering a projection of the cash flows to determine whether the future contributions (made at the current contribution rates) will be sufficient to allow the pension plans' fiduciary net position to make all projected future benefit payments of current active and inactive employees.
Years Ending
June 30 Amount
2019 $113
2020 113
2021 113
2022 112
2023 -
Total 451$
91
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
The long -term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation update.
1977 Police
Officers’ and
Public Firefighters 1925 Police 1937
Employees’ Pension and Officers’ Pension Firefighters’
Retirement Fund Disability Fund Plan Pension Plan
Assumed investment rate
of return 7.50% 7.25% 1.75% 1.75%
Are contributions expected to be
sufficient to allow fiduciary net
position to pay future benefits? Yes Yes No No
Discount rate used to measure TPL 6.75% 6.75% 3.10% 3.10%
1925 Police Officers' Pension Plan's and 1937 Firefighters' Pension Plan's fiduciary net
position were not projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore, the discount rate incorporates
a municipal bond rate which was 3.10 percent. The source of that bond rate was the
Barclay's 20-year Municipal Bond (as referenced in The Wall Street Journal, December
31, 2017).
Investment Rate of Return
Best estimates of arithmetic real rates of return as of the June 30, 2018 measurement
date for the Public Employees’ Retirement Fund and 1977 Police Officers’ and
Firefighters’ Pension and Disability Fund and December 31, 2018 measurement date for
the 1925 Police Officers’ Pension Plan and 1937 Firefighters’ Pension Plan, and for each
major asset class included in the pension plan's target asset allocation, as disclosed
in the investment footnote, are summarized in the following tables:
Public Employees' Retirement Fund and 1977 Police Officers' and Firefighters'
Pension and Disability Fund Asset Class Target Allocation Long term Expected
Real Rate of Return
Public Equity 22%4.4%
Private Equity 14%5.4%
Fixed Income - Ex Inflation-Linked 20%2.2%
Fixed Income - Inflation-Linked 7%0.8%
Commodities 8%2.3%
Real Estate 7%6.5%
Absolute Return 10%2.7%
Risk Parity 12%5.2%
92
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
1925 Police Officers' Pension Plan
1937 Firefighters' Pension Plan
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Public Employees’ Retirement Fund, and 1977 Police Officers' and Firefighters'
Pension and Disability Fund
Detailed information about the plan’s fiduciary net position is available in a separately
issued financial report available at www.in.gov/inprs/files/2018_INPRSCAFRBook.pdf. The
plan’s fiduciary net position has been determined on the same basis used by the plan. The
plan uses the economic resources measurement focus and the full accrual basis of
accounting. Investments are stated at fair value. Contribution revenue is recorded as
contributions are due, pursuant to legal requirements. Benefit payments and refunds of
employee contributions are recognized as expense when due and payable in accordance
with the benefit terms.
Asset Class Long term Expected
Real Rate of Return
Cash or cash equivalents 1.75%
Fixed income investments 1.75%
Asset Class Long term Expected
Real Rate of Return
Cash or cash equivalents 1.75%
Government agency securities 1.75%
1% Decrease Discount 1% Increase
(5.75%)(6.75%)(7.75%)
31,188,196$ 19,812,587$ 10,326,568$
28,711,015$ (3,021,911)$ (28,672,587)$
88,039,465$ 80,614,897$ 72,544,393$
Public E mployees' Retirement Fund
1977 Police Officers' a nd Firefighters'
Pension and Disability Fund
1925 Police Officers' Pension Plan
1937 Firefighters' Pension Plan 69,419,473$ 63,109,109$ 57,170,585$
1% Decrease Discount 1% Increase
(2.10%)(3.10%)(4.10%)
93
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
1925 Police Officers' Pension Plan
The financial statements of the plan are included in these financial statements as a pension
and other postemployment benefit trust fund. For the purpose of measuring the net pension
liability, deferred outflows of resources, and deferred inflows or resources related to pension
and pension expense, information about the plan’s fiduciary net position and addition
to/deduction from fiduciary net position have been determined on the same basis as they
are report by the plan. The plan uses the economic resources measurement focus and the
full accrual basis of accounting. Investments are stated at fair value. Contribution revenue
is recorded as contributions are due, pursuant to legal requirements. Benefit payments and
refunds of employee contributions are recognized as expense when due and payable in
accordance with the benefit terms.
1937 Firefighters' Pension Plan
The financial statements of the plan are included in these financial statements as a pension
and other postemployment benefit trust fund. For the purpose of measuring the net pension
liability, deferred outflows of resources, and deferred inflows or resources related to pension
and pension expense, information about the plan’s fiduciary net position and addition
to/deduction from fiduciary net position have been determined on the same basis as they
are report by the plan. The plan uses the economic resources measurement focus and the
full accrual basis of accounting. Investments are stated at fair value. Contribution revenue
is recorded as contributions are due, pursuant to legal requirements. Benefit payments and
refunds of employee contributions are recognized as expense when due and payable in
accordance with the benefit terms.
Assumption Changes
The actuarial assumptions used in the Public Employees Retirement Fund (PERF) and the
1977 Police Officers’ and Firefighters’ Pension and Disability Fund were the same
assumptions used in the 2017 valuations, except for the PERF COLA assumption. The
PERF COLA assumption was changed due to passage of Senate Enrolled Act No. 373. In
lieu of a 1% COLA occurring beginning on January 1, 2020, the Plan now assumes that the
COLA will be replaced by a 13th check for 2020 and 2021. The COLA assumption thereafter
would be 0.4% beginning on January 1, 2022, changing to 0.5% beginning on January
1, 2034, and ultimately 0.6% beginning on January 1, 2039.
Investment Policy
The 1925 Police Officers' Pension Plan and the 1937 Firefighters' Pension plan’s policy
in regard to the allocation of invested assets is established and may be amended by
the pension board by a majority vote of its members. It is the policy of the pension
board to pursue an investment strategy that manages risk through the prudent
diversification of the portfolio across a broad selection of distinct asset classes. The
pension plan’s investment policy discourages the use of cash equivalents, except for
liquidity purposes, and aims to refrain from dramatically shifting asset class allocations
over short time spans. The following was the pension board’s adopted asset allocation
policy as of December 31, 2018:
94
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 19 - Pension Plans (Continued)
Asset Class Target Allocation
Cash or cash equivalents 24%
Government agency securities 76
Rate of Return
For the year ended December 31, 2018, the annual money-weighted rate of return on
pension plan investments, net of pension plan investment expense, was 9.3 percent. The
money-weighted rate of return expresses investment performance, net of investment
expense, adjusted for the changing amounts actually invested.
The total aggregate amounts, for all City plans, of employer’s pension liability, deferred
outflows of resources, deferred inflows of resources and pension expenditures for the
period associated with net pension liabilities is as follows:
Note 20 - Pension Trust Funds
The following are condensed financial statements for the individual pension plans:
Pension
Net Pension Expenses Deferred Deferred
Plan Description Liability (Income)Inflows Outflows
Public Employees' Retirement Fund 19,812,587$ 3,302,670$ 3,231,915$ 3,067,244$
1977 Police Officers and Firefighters
Pension and Disability Fund *- 3,569,554 8,199,535 9,510,466
1925 Police Officers' Pension Plan 80,614,897 2,001,319 -219
1937 Firefighters' Pension Plan 63,109,109 (681,905) -451
Total Aggregate Amounts 163,536,593$ 8,191,638$ 11,431,450$ 12,578,380$
* - 1977 Police Officers' and Firefighters' Pension and Disability Fund recognizes a $3,021,911 net pension
asset as of December 31, 2018.
1925 Police Pension 1937 Fire Pension Total
Statement of Net Position
Cash and investments $ 945,540 $ 315,084 $ 1,260,624
Other assets 3,821 1,085 4,906
Liabilities (176)(617)(793)
Net position 949,185 315,552 1,264,737
Statement of Changes in Net Position
Investment income 15,219 7,596 22,815
Contributions 6,228,875 4,482,317 10,711,192
Benefit payments (6,166,971) (4,625,265) (10,792,236)
Other deductions (13,254)(15,354)(28,608)
Net change in net position $ 63,869 $ (150,706) $ (86,837)
95
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 21 – Reporting Change and Prior Period Adjustment
The City made two prior period adjustments for the presentation of the year ended
12/31/2017.
First, during the current year, the City adopted GASB Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions. As a result, the
government-wide statements now include a liability equal to total other postemployment
benefits (OPEB) liability. Some of the changes in this total OPEB liability will be recognized
immediately as part of the OPEB expense measurement, and part will be deferred and
recognized over future years. Refer to Note18 for further details.
The effect of these new standards was a decrease of $13,819,558 in net position
of governmental activities to record the total OPEB liability at January 1, 2018.
In addition, during 2018, the City discovered a misstatement in the presentation of the 2017
financial statements. The City unintentionally double counted a receivable related to the
Emergency Medical Services (EMS) Medicaid Supplemental Payment Adjustment. This
misstatement resulted in an overstatement of both revenue and accounts receivable on the
2017 CAFR.
The effect of these prior period adjustments are shown below:
Note 22 - Closure and Postclosure Care Cost
As of January 1, 2008, the City of South Bend's Biosolids Lagoon #4 site has been closed.
The City is required to maintain the one-acre site by monitoring methane and groundwater
and maintain the site (mowing, cover inspection, gas collection system inspection, cover
repair, ditch maintenance, etc.). The closure and postclosure care costs are reported as
operating expenses, as incurred. For the year ending December 31, 2018, the total
expenses incurred were $ 8,132.50. The remaining expected liability relating to postclosure
costs is estimated at less than $250,000 and due to the minimal nature of these
expenditures, is not included in the financial statements
Governmental
Activities
Business-type
Activities
$ 204,389,942
-
Net position - December 31, 2017, as previously reported $ 162,225,855
Adjustment for implementation of GASB Statement 75 (13,819,558)
Adjustment to correct 2017 activity for Business-type
Activities - Emergency Medical Services Fund - (1,078,551)
Net position - December 31, 2017, as restated 148,406,297$ $ 203,311,391
96
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2018
Note 23 - Tax Abatements
The City enters into property tax abatement agreements with local businesses and also for
qualifying residential construction under the City’s Municipal Code Chapter 2, Article 6, Tax
Abatements, created by Ordinance 7267-83. Under this Article, the City may grant property
tax abatements to a business located within or promising to relocate to the City for the
purpose of attracting or retaining the business and also for the purpose of encouraging
residential construction within economic development target areas.
For the fiscal year ended December 31, 2018, the City abated property taxes totaling
$1,332,504 under this program. Three properties had property taxes abated that exceeded
10 percent of the total amount. For these properties the taxes abated were $254,704,
$233,436, and $183,240.
97
City of South Bend, Indiana
2018 2017 2016 2015 2014
Annual money-weighted rate of return, net of
investment expense 1.75% 0.80% 1.00% 0.80% 0.60%
Information is presented for the years available
Required Supplementary Information
1925 Police Officers' Pension Plan Schedule of Investment Returns
Years Ended December 31
Last Five Fiscal Years
98
2018201720162015201420132012201120102009Actuarially determined contribution $6,161,954 $6,119,059 $6,133,389 $6,073,049 $6,432,800 $6,633,200 $6,986,200 $7,317,800 $6,673,100 $5,995,700 Contributions in relation to the actuarially determined contribution 6,220,658 6,204,179 6,364,236 6,323,6456,116,1955,837,2166,776,6146,512,8425,805,5976,355,442Contribution (Deficiency) Excess $ 58,704 $ 85,120 $ 230,847 $ 250,596 $ (316,605) $ (795,984) $ (209,586) $ (804,958) $ (867,503) $ 359,742 Covered Employee Payroll $ - $ - $ - $441,200 $441,200 $430,000 $421,800 $542,900 $569,500 $611,000 Contributions as a Percentage of Covered Employee Payroll0.0% 0.0% 0.0% 1433.3% 1386.3% 1357.5% 1606.6% 1199.6% 1019.4% 1040.2%Notes to Schedule of ContributionsActuarial valuation information relative to the determination of contributions:Valuation dateDecember 31, 2018Methods and assumptions used to determine contribution rates:Actuarial cost method Entry age normalAmortization methodLevel percent of payrollRemaining amortization period 30 yearsAsset valuation method Not applicable. Benefits are funded on a pay-as-you-go basisInflation2.25% per yearSalary increase2.50% per yearInvestment rate of return 1.75% per yearRetirement ageNon-converted - any age with 20 or more years of creditable service; Converted - age 52 with 20 or more years of creditable service and no longer activeMortalityRP-2014 Total Data Set Mortality Tables with mortality improvement since 2006 using scale MP-2014 removed and projected on a fullygenerational basis using the future mortality improvement scale inherent in the mortality projection included in the Social SecurityAdministration's 2014 Trustee ReportOther informationCost of living increases of 2.50% per year in retirement for non-converted and 2.00% per year in retirement for convertedCity of South Bend, IndianaRequired Supplementary Information1925 Police Officers' Pension Plan Schedule of Contributions Last Ten Fiscal YearsYears Ended December 3199
2018 2017 2016 2015 2014
Total Pension Liability
Service cost $ 92,916 $ 78,812 $ 164,481 $ 184,104 $ 157,965
Interest 2,337,437 2,653,831 2,344,653 2,415,583 3,721,864
Experience (gains)/losses 2,284,134 995,949 396,259 (2,973,249) -
Changes in assumptions (2,697,730) 3,926,922 (5,617,308) (294,402) 12,487,771
Projected benefit payments (6,146,696) (6,045,097) (5,977,290) (6,061,589) (6,122,870)
Net Change in Total Pension
Liability (4,129,939) 1,610,417 (8,689,205) (6,729,553) 10,244,730
Total Pension Liability ‐
Beginning of year 85,694,021 84,083,604 92,772,809 99,502,362 89,257,632
Total Pension Liability ‐ End
of year $ 81,564,082 $ 85,694,021 $ 84,083,604 $ 92,772,809 $ 99,502,362
Plan Fiduciary Net Position
Contributions ‐ Other $- $ 13,544 $ 15,749 $62 $ 4,329
Contributions ‐ Non‐employer Entity 6,220,658 6,204,179 5,991,750 6,378,359 6,111,865
Net investment income 15,219 6,557 6,713 4,376 3,759
Administrative expenses (10,054)(13,577) (13,551)(12,462) (10,957)
Benefit payments, including refunds (6,161,954) (6,119,245) (6,364,236) (6,323,646) (6,705,815)
Net Change in Plan Fiduciary
Net Position 63,869 91,458 (363,575)46,689 (596,819)
Plan Fiduciary Net Position ‐
Beginning of year 885,316 793,858 1,157,433 1,110,743 1,707,562
Plan Fiduciary Net Position ‐
End of year $ 949,185 $ 885,316 $ 793,858 $ 1,157,432 $ 1,110,743
City's Net Pension Liability ‐
Ending $ 80,614,897 $ 84,808,705 $ 83,289,746 $ 91,615,377 $ 98,391,619
Plan Fiduciary Net Position as a
% of Total Pension Liability 1.16% 1.03% 0.94% 1.25% 1.12%
Covered Employee Payroll $- $- $- $441,200 $441,200
City's Net Pension Liability as a
% of Covered Employee Payroll 0%0%0% 20765% 22301%
Information is presented for the years available
City of South Bend, Indiana
Required Supplementary Information
1925 Police Officers' Pension Plan
Schedule of Changes in the City Net Pension Liability and Related Ratios
Last Five Fiscal Years
100
2018 2017 2016 2015 2014
Annual money-weighted rate of return, net of
investment expense 1.75% 0.80% 1.00% 0.80% 0.60%
Information is presented for the years available
Years Ended December 31
City of South Bend, Indiana
Required Supplementary Information
Schedule of Pension Investment Returns
1937 Firefighters' Pension Plan
Last Five Fiscal Years
101
2018 201720162015201420132012201120102009Actuarially determined contribution$4,618,617 $4,727,592 $5,152,192 $4,977,042 $5,436,400 $5,550,900 $5,787,300 $6,399,700 $5,811,400 $5,258,600 Contributions in relation to the actuarially determined contribution4,472,4694,920,7125,165,7585,197,1585,130,5815,051,3195,208,5705,503,7425,172,1465,416,358Contribution (Deficiency) Excess $ (146,148) $ 193,120 $ 13,566 $ 220,116 $ (305,819) $ (499,581) $ (578,730) $ (895,958) $ (639,254) $ 157,758 Covered Employee Payroll $ - $ - $ - $328,600 $328,600 $319,300 $365,500 $397,100 $429,500 $474,450Contributions as a Percentage of Covered Employee Payroll0.00% 0.00% 0.00% 1581.61% 1561.30% 1582.00% 1425.10% 1386.00% 1204.20% 1141.60%Notes to Schedule of ContributionsActuarial valuation information relative to the determination of contributions:Valuation dateDecember 31, 2018Methods and assumptions used to determine contribution rates:Actuarial cost method Entry age normalAmortization method Level percent of payrollRemaining amortization period30 yearsAsset valuation method Not applicable. Benefits are funded on a pay-as-you-go basisInflation 2.25% per yearSalary increase 2.50% per yearInvestment rate of return 1.75% per yearRetirement age Non-converted - any age with 20 or more years of creditable service; Converted - age 52 with 20 or more years of creditable serviceand no longer activeMortality RP-2014 Total Data Set Mortality Tables with mortality improvement since 2006 using scale MP-2014 removedand projected on a fullygenerational basis using the future mortality improvement scale inherent in the mortality projection included in the Social SecurityAdministration's 2014 Trustee ReportOther informationCost of living increases of 2.50% per year in retirement for non-converted and 2.00% per year in retirement for convertedCity of South Bend, IndianaRequired Supplementary Information1937 Firefighters' Pension Plan Schedule of City Contributions Last Ten Fiscal YearsYears Ended December 31102
2018 2017 2016 2015 2014
Total Pension Liability
Service cost $ 98,529 $ 81,717 $ 163,162 $ 155,487 $ 114,297
Interest 1,815,032 2,124,050 1,940,826 2,020,796 3,155,669
Experience (gains)/losses (482,208) (1,611,010) (262,337) (2,816,692) -
Changes in assumptions (2,105,211) 3,179,702 (4,645,609) (245,887) 9,620,657
Projected benefit payments (4,572,612) (4,727,592) (4,980,991) (5,094,762) (5,206,870)
Net Change in Total Pension
Liability (5,246,470) (953,133) (7,784,949) (5,981,058) 7,683,753
Total Pension Liability ‐ Beginning
of year 68,671,131 69,624,264 77,409,213 83,390,271 75,706,518
Total Pension Liability ‐ End
of year $ 63,424,661 $ 68,671,131 $ 69,624,264 $ 77,409,213 $ 83,390,271
Plan Fiduciary Net Position
Contributions ‐ Other $- $ 4,251 $ 6,279 $ 2,667 $1,484
Contributions ‐ Non‐employer Entity 4,472,469 4,920,712 4,866,271 5,039,025 5,129,098
Net investment income 7,596 3,352 2,852 2,675 1,963
Administrative expenses (12,154) (14,771) (14,485) (14,255) (10,920)
Benefit payments, including refunds (4,618,617) (4,614,480) (5,165,758) (5,197,159) (5,407,429)
Net Change in Plan Fiduciary
Net Position (150,706) 299,064 (304,841) (167,047) (285,804)
Plan Fiduciary Net Position ‐
Beginning of year 466,258 167,194 472,035 639,081 924,885
Plan Fiduciary Net Position ‐
End of year $ 315,552 $ 466,258 $ 167,194 $ 472,034 $ 639,081
City's Net Pension Liability ‐ Ending $ 63,109,109 $ 68,204,873 $ 69,457,070 $ 76,937,179 $ 82,751,190
Plan Fiduciary Net Position as a %
of Total Pension Liability 0.50% 0.68% 0.24% 0.61% 0.77%
Covered Employee Payroll $- $- $- $328,600 $328,600
City's Net Pension Liability as a %
of Covered Employee Payroll 0%0%0% 23414% 25183%
Information is presented for the years available
City of South Bend, Indiana
Schedule of Changes in the City Net Pension Liability and Related Ratios
Required Supplementary Information
1937 Firefighters' Pension Plan
Last Five Fiscal Years
103
2018201720162015Actuarially determined contribution3,302,670$ 5,307,308$ 4,526,527$ 3,650,212$ Contributions in relation to the actuarially determined contributions3,309,216 3,219,677 2,933,996 2,982,234 Contribution Deficiency(6,546)$ 2,087,631$ 1,592,531$ 667,978$ Covered Employee Payroll 29,759,859$ 28,768,543$ 26,237,016$ 26,681,229$ Contributions as a Percentage of Covered Employee Payroll11.1% 11.2% 11.2%11.2%Information is presented for the years availableNotes to Schedule of ContributionsActuarial valuation information relative to the determination of contributions:Valuation dateJune 30, 2018Methods and assumptions used to determine contribution rates:Actuarial cost methodEntry age normalAmortization methodLevel percent of payrollRemaining amortization period25 yearsAsset valuation methodInflation2.25% per yearSalary increase2.50% to 4.25% per yearInvestment rate of return6.75% per yearRetirement ageMortalityOther informationIn lieu of a COLA on January 1, 2019, members in pay were provided a 13th check on October 1, 2018. It is assumed a 13th check would continue for the 2020 and 2021 fiscal years. RP-2014 (with MP-2014 improvement removed) Total Data Set Mortality Table, with future mortality improvement projected generationally using future mortality improvement inherent in the Social Security Administration's 2014 Trustee report. Actuarial Value of Assets is equal to a five-year smoothing of gains and losses on the Market Value of Assets subject to a 20% corridorNormal retirement ages are age 65 and 10 years (eight years for certain elected officials) of creditable service, age 60 and 15 years of creditable service, and age 55 if age and creditable service total at least 85 with early retirement at 50 with 15 years of serviceCity of South Bend, IndianaRequired Supplemental InformationSchedule of City ContributionsPublic Employees' Retirement FundLast Four Fiscal YearsYears Ended June 30104
20182017201620152014City's proportion of the net pension liability (asset)0.58323% 0.57988% 0.54700% 0.55700% 0.56300%City's proportionate share of the net pension liability (asset)19,812,587$ 25,871,598$ 24,845,715$ 22,687,694$ 14,807,363$ City's covered employee payroll29,759,859$ 28,768,543$ 26,237,016$ 26,691,229$ 27,509,916$ City's Proportionate Share of the Net pension Liability (Asset) as a Percentage of its Covered Employee Payroll66.57% 89.93% 94.70% 85.00% 53.83%Plan Fiduciary Net Position as a Percentage of Total Pension Liability78.9% 76.6% 75.3% 77.3% 84.3%Information is presented for the years availablePublic Employees' Retirement FundLast Five Fiscal YearsCity of South Bend, IndianaRequired Supplemental InformationSchedule of the City's Proportionate Share of the Net Pension LiabilityYears Ended June 30105
2018201720162015Actuarially determined contribution1,702,380$ 2,143,623$ 2,029,937$ 709,017$ Contributions in relation to the actuarially determined contribution2,433,268 2,600,280 2,673,614 2,625,418 Contribution Excess 730,888$ 456,657$ 643,677$ 1,916,401$ City's Covered Employee Payroll13,896,923$ 13,968,031$ 13,571,531$ 13,327,077$ Contributions as a Percentage of Covered Employee Payroll17.5% 18.6% 19.7% 19.7%Information is presented for the years availableNotes to Schedule of City ContributionsActuarial valuation information relative to the determination of contributions:Valuation dateJune 30, 2018Methods and assumptions used to determine contribution rates:Actuarial cost methodEntry age normalAmortization methodLevel percent of payrollRemaining amortization period 30 yearsAsset valuation methodInflation2.25% per yearSalary increase2.50% per yearInvestment rate of return6.75% per yearRetirement ageNormal retirement is age 52 with 20 years of service; early retirement is age 50 with 20 years ofservice (reduced benefit)MortalityOther informationCost of living increases of 2.0% per yearRP-2014 (with MP-2014 improvement removed) Blue Collar mortality tables, with future mortality improvement projected generationally using future mortality improvement inherent in the Social Security Administration's 2014 Trustee reportCity of South Bend, IndianaRequired Supplemental InformationSchedule of City Contributions1977 Police Officers' Pension and Disability FundLast Four Fiscal Years Actuarial Value of Assets is equal to a five-year smoothing of gains and losses on the Market Value of Assets subject to a 20% corridorYears Ended June 30106
Last Five Fiscal Years20182017201620152014City's proportion of the net pension liability (asset)1.6501% 1.72294% 1.75600% 1.78700% 1.82900%City's proportionate share of the net pension liability (asset)(1,450,622)$ (265,770)$ 1,559,932$ (2,640,039)$ (932,236)$ City's covered employee payroll13,896,923$ 13,968,031$ 13,571,531$ 13,327,077$ 12,981,067$ City's Proprotionate Share of the Net pension Liability (Asset) as a Percentage of its Covered Employee Payroll-10.44% -1.90% 11.49% (19.8)% (7.2)%Plan Fiduciary Net Position as a Percentage of Total Pension Liability101.50% 100.3%98.2% 103.2% 101.1%Information is presented for the years availableCity of South Bend, IndianaRequired Supplemental InformationSchedule of the City's Proportionate Share of the Net Pension Liability1977 Police Officers' Pension and Disability FundYears Ended June 30107
Last Four Fiscal Years 2018201720162015Actuarially determined contribution1,867,174$ 2,232,482$ 2,053,907$ 743,238$ Contributions in relation to the actuarially determined contributions2,634,358 2,677,560 2,673,917 2,666,116 Contribution Deficiency (Excess) (767,184)$ (445,078)$ (620,010)$ (1,922,878)$ Covered Employee Payroll 15,052,876 14,398,217 13,588,032$ 13,533,745$ Contributions as a Percentage of Covered Employee Payroll 17.50% 18.60%19.68%19.70%Information is presented for the years availableNotes to Schedule of City ContributionsActuarial valuation information relative to the determination of contributions:Valuation dateJune 30, 2018Methods and assumptions used to determine contribution rates:Actuarial cost methodEntry age normalAmortization methodLevel percent of payrollRemaining amortization period30 yearsAsset valuation methodInflation2.25% per yearSalary increase2.50% per yearInvestment rate of return6.75% per yearRetirement ageNormal retirement is age 52 with 20 years of service; early retirement is age 50 with 20 years of service (reduced benefit)MortalityOther informationCost of living increases of 2.0% per yearSchedule of City ContributionsActuarial Value of Assets is equal to a five-year smoothing of gains and losses on the Market Value of Assets subject to a 20% corridorRP-2014 (with MP-2014 improvement removed) Blue Collar mortality tables, with future mortality improvement projected generationally using future mortality improvement inherent in the Social Security Administration's 2014 Trustee reportCity of South Bend, IndianaRequired Supplemental Information1977 Firefighters' Pension and Disability FundYears Ended June 30108
Last Five Fiscal Years20182017201620152014City's proportion of the net pension liability (asset)1.78736% 1.77600% 1.75800% 1.81500% 1.79500%City's proportionate share of the net pension liability (asset)(1,571,289)$ (273,955)$ 1,561,833$ (2,680,987)$ (915,265)$ City's covered employee payroll15,052,876$ 14,398,217$ 13,588,032$ 13,533,745$ 12,744,754$ City's Proprotionate Share of the Net pension Liability (Asset) as a Percentage of its Covered Employee Payroll-10.44% -1.90% 11.49% -19.81% -7.18%Plan Fiduciary Net Position as a Percentage of Total Pension Liability101.50% 100.3% 98.2% 103.2% 101.1%Information is presented for the years availableCity of South Bend, IndianaRequired Supplemental InformationSchedule of the City's Proportionate Share of the Net Pension Liability1977 Firefighters' Pension and Disability FundYears Ended June 30109
Total OPEB liability
Service Cost 1,489,465$
Interest 1,026,964
Difference between expected and actual experience 1,503,991
Changes of assumptions or other inputs (8,795,897)
Benefit payments (758,730)
Net change in total OPEB liability (5,534,207)
Total OPEB Liability - beginning 28,740,294
Total OPEB Liability - ending 23,206,087$
Plan fiduciary net position - ending -$
Net OPEB Liability - ending 23,206,087$
Plan fiduciary net opsition as % of total OPEB liability 0%
Covered employee payroll 58,876,762$
Net OPEB liability as a % fo covered payroll 39.4%
Information is presented for the years available
Notes to Schedule:
City of South Bend, Indiana
This is the first year the total OPEB liability was calculated based on GASB 75
Schedules of Required Supplementary Information
Schedule of Changes in the City's Total OPEB
Liability and Related Ratios
Year Ended December 31, 2018
110
City of South Bend, Indiana
General Fund
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - Property 39,246,940$ 40,719,333$ 40,719,333$ -$
Licenses and permits 230,510 243,194 252,481 9,287
Intergovernmental 4,373,614 4,688,955 4,544,341 (144,614)
Charges for services 933,677 888,058 774,120 (113,938)
Fines and forfeitures 8,920 15,120 16,079 959
Investment income 240,000 410,000 476,266 66,266
Other 8,227,027 8,973,781 8,563,828 (409,953)
Total revenues 53,260,688 55,938,441 55,346,448 (591,993)
Expenditures:
Current:
General government:
Mayor:
Personnel services 736,276 722,045 691,853 30,192
Supplies 700 1,802 830 972
Other services and charges 170,864 184,295 178,631 5,664
City Clerk:
Personnel services 368,354 374,014 353,280 20,734
Supplies 7,800 13,507 4,398 9,109
Other services and charges 167,993 186,032 159,612 26,420
Common Council:
Personnel services 366,291 366,291 313,937 52,354
Supplies 6,375 16,707 10,068 6,639
Other services and charges 242,303 287,015 247,332 39,683
WNIT Contract:
Other services and charges 43,000 43,000 43,000 -
Administration/Finance:
Personnel services 2,280,450 2,280,450 2,065,101 215,349
Supplies 23,500 23,530 13,679 9,851
Other services and charges 315,846 335,346 315,405 19,941
Legal Department:
Personnel services 1,082,003 1,082,003 980,943 101,060
Supplies 3,450 3,626 2,962 664
Other services and charges 115,344 115,344 104,140 11,204
Human Rights:
Personnel services 311,040 311,040 241,092 69,948
Supplies 1,037 1,037 898 139
Other services and charges 135,023 135,056 125,821 9,235
Total General Government 6,377,649 6,482,140 5,852,982 629,158
Required Supplementary Information
Budgetary Comparison Schedules
General Fund
Year Ended December 31, 2018
111
City of South Bend, Indiana
General Fund
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Public Safety:
Police Department:
Personnel services 23,872,149$ 24,141,649$ 24,069,590$ 72,059$
Supplies 295,731 971,557 715,253 256,304
Other services and charges 4,655,450 4,765,508 4,455,495 310,013
Capital outlay - 17,028 - 17,028
Fire Department:
Personnel services 18,065,312 18,150,662 18,134,719 15,943
Supplies 461,150 516,512 405,751 110,761
Other services and charges 2,741,928 3,076,169 2,976,134 100,035
Total Public Safety 50,091,720 51,639,085 50,756,942 882,143
Highways and Streets:
Engineering:
Personnel services 971,589 936,784 898,952 37,832
Supplies 20,850 28,630 13,530 15,100
Other services and charges 598,066 784,670 560,223 224,447
AmeriCorps Program:
Personnel services - 85,175 16,677 68,498
Supplies - 72,420 53 72,367
Other services and charges - 208,593 638 207,955
Total highways and streets 1,590,505 2,116,272 1,490,073 626,199
Culture and recreation:
Morris Performing Arts Center:
Personnel services 583,005 693,005 551,102 141,903
Supplies 4,200 29,796 20,327 9,469
Other services and charges 731,313 597,990 378,059 219,931
Palais Royale Ballroom:
Personnel services 157,818 235,818 204,328 31,490
Supplies 1,900 23,014 13,006 10,008
Other services and charges 364,646 267,596 171,539 96,057
Capital outlay 15,000 15,000 15,000 -
Total culture and recreation 1,857,882 1,862,219 1,353,361 508,858
Total expenditures 59,917,756 62,099,716 59,453,358 2,646,358
Required Supplementary Information
Budgetary Comparison Schedules
General Fund (Continued)
Year Ended December 31, 2018
112
City of South Bend, Indiana
General Fund
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Other financing sources (uses):
Proceeds from sale of capital assets $- -$ 39,261 $ 39,261 $
Transfers in 6,746,201 6,760,910 6,760,910 -
Transfers out - (500) (500)-
Net change in fund balances 89,133 638,396 2,692,761 2,054,365
Fund balances - beginning 36,417,969 36,417,969 36,417,969 -
Fund balances - ending 36,507,102$ 37,056,365$ 39,110,730$ $ 2,054,365
Year Ended December 31, 2018
Required Supplementary Information
Budgetary Comparison Schedules
General Fund (Continued)
113
City of South Bend, Indiana
Parks and Recreation Fund
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - property 8,943,000$ 9,591,899$ 9,591,899$ -$
Intergovernmental 2,720,000 2,892,316 1,588,416 (1,303,900)
Charges for services 2,903,820 2,354,871 1,715,313 (639,558)
Investment income 24,996 87,000 82,586 (4,414)
Other 321,100 421,816 399,033 (22,783)
Total revenues 14,912,916 15,347,902 13,377,247 (1,970,655)
Expenditures:
Current:
Culture and recreation:
Personnel services 8,352,126 8,010,426 7,670,708 339,718
Supplies 1,224,056 1,366,572 998,555 368,017
Other services and charges 4,919,484 4,975,213 4,135,158 840,055
Capital outlay 1,600,000 1,825,000 842,582 982,418
Total expenditures 16,095,666 16,177,211 13,647,003 2,530,208
Other financing sources (uses):
Proceeds from sale of capital assets - 20,194 20,194 -
Transfers in 1,287,600 1,287,600 2,345,846 1,058,246
Transfers out (104,850) (104,850)- 104,850
Net change in fund balances - 373,635 2,096,284 1,722,649
Fund balances - beginning 6,210,755 6,210,755 6,210,755 -
Fund balances - ending 6,210,755$ 6,584,390$ 8,307,039$ $ 1,722,649
Required Supplementary Information
Budgetary Comparison Schedule - Major Special Revenue Funds
Parks and Recreation
Year Ended December 31, 2018
114
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - County option income tax 7,629,539$ 7,851,541$ 8,487,336$ 635,795$
Investment income 6,000 21,900 22,175 275
Total revenues 7,635,539 7,873,441 8,509,511 636,070
Expenditures:
Current:
Public Safey:
Personnel services 7,622,970 7,622,970 7,538,724 84,246
Total expenditures 7,622,970 7,622,970 7,538,724 84,246
Net change in fund balances 12,569 250,471 970,787 720,316
Fund balances - Beginning 988,905 988,905 988,905 -
Fund balances - Ending 1,001,474$ 1,239,376$ 1,959,692$ $ 720,316
Required Supplementary Information
Budgetary Comparison Schedule - Major Special Revenue Funds
(Continued)
Public Safety LOIT
Year Ended December 31, 2018
115
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - county option income tax 10,906,293$ 11,430,876$ 12,339,734$ 908,858$
Investment income 95,000 180,000 182,755 2,755
Other 610,131 657,446 657,457 11
Total revenues 11,611,424 12,268,322 13,179,946 911,624
Expenditures:
Current:
General Government:
Supplies 806,390 826,532 683,344 143,188
Other services and charges 7,587,225 9,003,696 6,711,128 2,292,568
Capital outlay 295,000 433,845 127,132 306,713
Total expenditures 8,688,615 10,264,073 7,521,604 2,742,469
Other Financing Sources (Uses):
Transfers in - 324,171 324,159 (12)
Transfers out (2,787,600) (2,787,600) (2,787,600) -
Net change in fund balances 135,209 (459,180) 3,194,901 3,654,081
Fund balances - Beginning 8,614,576 8,614,576 8,614,576 -
Fund balances - Ending 8,749,785$ 8,155,396$ 11,809,477$ $ 3,654,081
Required Supplementary Information
Budgetary Comparison Schedule - Major Special Revenue Funds
(Continued)
COIT
Year Ended December 31, 2018
116
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - county economic development
income tax 10,720,965$ 10,992,076$ 11,885,489$ 893,413$
Charges for services 150,000 150,000 - (150,000)
Fines and forfeitures 354,660 354,660 354,660 -
Investment income 60,000 250,000 260,688 10,688
Other - 2,109 2,109 -
Total revenues 11,285,625 11,748,845 12,502,946 754,101
Expenditures:
Current:
General government:
Supplies - 83 - 83
Other services and charges 5,654,029 6,198,808 4,097,101 2,101,707
Capital outlay 190,000 190,000 49,830 140,170
Total expenditures 5,844,029 6,388,891 4,146,931 2,241,960
Other financing sources (uses):
Proceeds from sale of capital assets - 596,073 596,073 -
Transfers out (5,441,596) (6,609,373) (6,572,551) 36,822
Net change in fund balances - (653,346) 2,379,537 3,032,883
Fund balances - beginning 12,770,240 12,770,240 12,770,240 -
Fund balances - ending 12,770,240$ 12,116,894$ 15,149,777$ $ 3,032,883
Required Supplementary Information
Budgetary Comparison Schedule - Major Special Revenue Funds
(Continued)
EDIT
Year Ended December 31, 2018
117
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 80,000$ 185,000$ 183,841$ (1,159)$
Total revenues 80,000 185,000 183,841 (1,159)
Net change in fund balances 80,000 185,000 183,841 (1,159)
Fund balances - beginning 10,294,137 10,294,137 10,294,137 -
Fund balances - ending 10,374,137$ 10,479,137$ 10,477,978$ (1,159)$
Required Supplementary Information
Budgetary Comparison Schedule - Major Special Revenue Funds
(Continued)
Rainy Day
Year Ended December 31, 2018
118
The major differences between budgetary (Non-GAAP) basis and GAAP basis are as follows:a. Revenues are recorded when received in cash (budgetary) as opposed to susceptible to accrual (GAAP).b. Expenditures are recorded when paid in cash (budgetary) as opposed to when the liability is incurred (GAAP).c. Encumbrances are recorded as expenditures for budgetary purposes when purchase orders are issued.Adjustments necessary to convert the results of operations at the end of the year on a budgetary basis to a GAAP basis are as follows:Parks and Public SafetyGeneralRecreationLOITCOITEDITRainy DayNet change in fund balances (budgetary basis) 2,692,761$ 2,096,284$ 970,787$ 3,194,901$ 2,379,537$ 183,841$ Adjustments:To adjust revenues for accruals10,691,807 140,279 881 1,759,666 204,729 3,480 To adjust expenditures for accruals(11,041,942) (2,393,491) (14,846) (4,430,160) (2,147,125) - To adjust expenditures for encumbrances820,914 1,400,311 - 1,812,159 1,942,214 - Net change in fund balances (GAAP basis) 3,163,540$ 1,243,383$ 956,822$ 2,336,566$ 2,379,355$ 187,321$ City of South Bend, IndianaRequired Supplementary InformationBudget/GAAP ReconciliationGeneral Fund and Major Special Revenue FundsFor the Year Ended December 31, 2018119
City of South Bend, Indiana
Notes to Required Supplemental Information
Note 1 - Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the
budgetary comparison schedules:
A.After conferring with the Common Council President and several department heads,
the City Controller submits to the Common Council a proposed operating budget for
the fiscal year commencing the following January 1. The operating budget includes
proposed expenditures and the means of financing them.
B.Prior to adoption, the City advertises the budget and the Common Council holds public
hearings to obtain taxpayer comments. The Common Council may reduce, but not
increase, the budget from the advertised amounts.
C.No later than November 1 of each year, the budget for the next year is approved by
the Common Council through the passage of an ordinance.
D.Copies of the budget ordinance and advertisements for funds for which property taxes
are levied or highway use taxes are received are sent to the Indiana Department of
Local Government Finance for their review and approval. The budget becomes legally
enacted after the City Controller receives approval from the Indiana Department of
Local Government Finance. This approval is required by Indiana statute and ad
valorem property tax rates are to be set by February 15 of the year budgeted. The
budget ordinance as approved by the Indiana Department of Local Government
Finance becomes the City's expenditures budget. The City's maximum tax levy is
restricted by Indiana law, with certain adjustments and exceptions. If the advertised
budget, for funds for which property taxes are levied or for which highway use taxes
are received, exceeds the spending and tax limits of the state control laws, an excess
levy can be granted by the Indiana Department of Local Government Finance, upon
appeal by the City.
E.The legal level of budgetary control (the level at which expenditures may not exceed
appropriations without the governing body’s approval) is by object classification for all
funds except for the General Fund, which is by object classification within each
department. The City’s management cannot transfer budgeted appropriations between
object classifications of a budget without approval of the Common Council. Any
revisions that alter the total appropriations for any fund or any department of the
General Fund must be approved by the Common Council and, in some instances, by
the Indiana Department of Local Government Finance. Formal budgetary integration is
required by state statute and is employed as a management control method.
F.Formal budgetary integration is required by State statute and is employed as a
management control device. An annual budget was legally adopted for the following
funds:
Major funds:
•General Fund
•Special revenue funds - parks and recreation, public safety local option income tax
(LOIT), county option income tax (COIT), economic development income tax
(EDIT), rainy day
•Capital projects fund - River West TIF
120
City of South Bend, Indiana
Notes to Required Supplemental Information
(Continued)
Nonmajor governmental funds:
•Special revenue funds - Motor Vehicle Highway, Recreation Nonreverting,
Studebaker Oliver Revitalization Grants, Economic Development State Grants, DCI
Operating, Community Investment Grants, Police State Seizure, Juvenile Positive
Assistance, Unsafe Building, Law Enforcement Continuing Education, Landlord
Registration, Loss Recovery, Local Road and Street, LOIT 2016 Special
Distribution, Human Rights Federal Grant, Local Road and Bridge Grant,
Morris and Palais Marketing, Morris PAC Self Promotion, Police Block Grants,
Economic Development Commission, Hazmat, Indiana River Rescue, COPS
Block Grant II, Regional Police Academy, COPS MORE Grant,
Federal Drug Enforcement, Gift, Urban Development Action Grant, Leaf
Collection and Removal, Police K 9 Unit, Industrial Revolving
•Debt service fund - College Football Hall of Fame Debt Service, Redevelopment
Bond Airport Taxable, Coveleski Bond Debt Service Reserve, Redevelopment
Bond Palais Royale, South Bend Building Corporation Debt Service, Smart Streets
Debt Service, 2015 Parks Bond Debt Service, Century Center Energy
Conservation Debt Service, Redevelopment Authority Debt Service, Eddy St.
Commons Debt Service, 2017 Parks Bond Debt Service, 2018 TIF Park Bonds
Debt Service Reserve
•Capital projects funds - Professional Sports Development, Coveleski Stadium
Capital, Park Nonreverting Capital, Cumulative Capital Development, Cumulative
Capital Improvement, Morris Performing Arts Center Capital, Redevelopment
Retail Area (Leighton Plaza), TIF West Washington, Redevelopment General, TIF
No. 1 Southside Development, Football Hall of Fame Capital, Major Moves, TIF
River East Development, TIF Douglas Road, TIF River East Residential, Certified
Technology Park, Palais Royale Historic Preservation, Airport Urban Enterprise
Zone, Vehicle Equipment Leasing, Smart Streets Bond Capital Projects, 2015
Parks Bond Capital Projects, 2017 Parks Bond Capital Projects, Eddy St.
Commons Capital, 2018 Fire Station #9 Capital, 2018 TIF Park Bond Capital
G.The City's budgetary process is based upon cash outflows, which is a non-GAAP
basis. Appropriations lapse with the expiration of the budgetary period unless
encumbered by a purchase order or contract. Encumbered appropriations are carried
over and added to the subsequent year's budget.
H.Budgeted amounts are as originally adopted, or as amended by the Common Council
and approved by the Indiana Department of Local Government Finance in the regular
legal manner. The net effect of individual amendments to the budget increased the
original appropriations by $15,896,676 in 2018 for the funds listed above.
I.Expenditures did not exceed appropriations for any funds or any departments within
the General Fund, the Parks and Recreation Fund, the Public Safety LOIT Fund, the
COIT Fund, the EDIT Fund, the Rainy Day Fund, or any other major or nonmajor
governmental fund which required legally approved budgets except for the
Redevelopment Bond – Airport Taxable Fund and the South Bend Building
Corporation Debt Service Fund. In 2018, these two funds incurred paying agent fees
higher than anticipated.
121
Other Supplemental Information
122
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions
Nonmajor Governmental Funds Descriptions
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 Non-Reverting
To account for fees and related expenses from park department activities.
Studebaker/Oliver 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 to projects promoting economic development. Financing is
provided by state grants and loan payments. Expenditures include grants and related expenses.
DCI Operating
To account for the operating expenditures related to the South Bend Department of Community
Investment. Financing will be provided by revenues received from charges for services, other
revenue sources, and from fund transfers.
Community Investment Grants
To account for revenues received from the U.S. Department of Housing and Urban Development
related to community improvement projects.
Police State Seizure
To account for law enforcement expenditures financed by the authorized state or local agencies'
sale of confiscated property.
Juvenile Positive Assistance
To account for monies received from penalties paid for curfew violations. Expenditures include
Drug Abuse Resistance Education and Juvenile Aid Bureau.
Unsafe Building
To account for expenditures related to board ups and other services related to unsafe buildings.
Financing will be provided by fines and fees related to the Unsafe Building law.
123
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
Law Enforcement Continuing Education
To account for police fees collected to finance police officers' continuing education, training, and
supplies and equipment.
Landlord Registration
To account for costs related to the South Bend Landlord Registration program. Financing is
provided by a registration fee paid by landlords.
Loss Recovery Fund
To account for compensatory or exemplary damage payments from third parties arising from loss
or damage to City tangible or intangible property.
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.
LOIT 2016 Special Distribution
To account for a special distribution from the State that can only be spent on road projects.
Human Rights Federal
To account for expenditures to prevent discrimination and to promote human rights. Financing is
provided by federal grants.
Local Road and Bridge Matching Grant
To account for Community Crossing state grants and matching revenues which provide
financing for eligible projects.
Morris and Palais Marketing
To account for marketing and promotion expenditures financed by sponsorship solicitations and
donations.
Morris PAC Self-Promoted Events
To account for revenue and expenditures related to events and activities that the Morris
Performing Art Center (PAC) self-promotes or self-sponsors.
Police Block Grants
To account for federal grants which provide financing for police activities.
124
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
Economic Development Commission
To account for administrative expenditures of the Economic Development Commission.
Financing is provided by fees from businesses applying 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 hazmat equipment, or
for training and supplies.
Indiana River Rescue
To account for expenditures related to river rescue training. Financing is provided by
registration fees.
COPS Block Grant II
To account for federal grants which provide financing for police activities.
Regional Police Academy
To account for revenues (tuition) and expenditures (seminars, travel, lectures, and career
days) related to the advancement of present and future police officers.
COPS MORE Grant
To account for a COPS MORE grant which provides financing for police activities.
Federal Drug Enforcement
To account for expenditures for drug enforcement. Financing is provided by distributions from the
authorized federal agencies' confiscated property sale.
Gift
To account for donations, gifts, or bequeaths for purposes designated by the donor.
Urban Development Action Grant
To account for economic development expenditures which are financed by federal grants and
loan repayments.
Leaf Collection and Removal
To account for the expenditures of a program to remove leaves from the City each fall.
Financing is provided by a monthly service fee charged to all City residents.
Police K-9 Unit
To account for donations for development and maintenance of the K-9 unit.
125
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
Industrial Revolving
To account for the revenue and expenditures of providing special loans to qualifying local firms.
Financing was originally provided by a $5,000,000 Economic Adjustment Assistance Grant
from the U.S. Department of Commerce.
Debt Service Funds
College Football Hall of Fame Debt Service
To accumulate monies for the payment of Redevelopment Authority bonds issued to
refinance bonds issued for construction of the College Football Hall of Fame. Financing is to
be provided by an annual property tax levy.
Redevelopment Bond - Airport Taxable
To accumulate monies as a reserve for the payment of Redevelopment Authority bonds for
the airport taxable project.
Coveleski Bond Debt Service Reserve
To accumulate monies as a reserve for the payment of the Coveleski Stadium recovery zone
economic development bonds. Financing for debt payments is to be provided by
professional sports and convention development area taxes (PSCDA) and county option income
tax revenues if PSCDA revenues are insufficient.
Redevelopment Bond - Palais Royale
To accumulate monies as a reserve for the payment of Redevelopment Authority bonds for
the Palais Royale project.
South Bend Building Corporation Debt Service
To account for debt retirement of the Building Corporation's Mortgage Bonds. Funding is
provided by transfers from other City funds.
Smart Streets Debt Service
To account for debt retirement of 2015 Redevelopment Authority bonds for smart streets/"two-
way streets" conversion. Funding is provided by transfers from other City funds.
2015 Parks Bonds Debt Service
To account for debt retirement of the 2015 Building Corporation/EDIT bond for park
improvements. Funding is provided by transfers from other City funds.
Century Center Energy Conservation Debt Service
To account for debt retirement of a 2015 qualified energy conservation bond for
improvements at Century Center. Funding is provided by hotel/motel tax revenue, interest
rebates, and transfers from other City funds.
126
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
Redevelopment Authority Debt Service
To accumulate monies for the payment of Redevelopment Authority bonds issued to refinance
bonds issued for construction of Century Center improvements and bonds issued to refinance
bonds issued for the Eddy Street Commons project.
Eddy St. Commons Debt Service
To account for the Eddy Street Commons phase II project debt retirement. Financing is provided
by bond proceeds set aside for debt service and by transfers from the Tax Incremental Financing
(TIF) River East Development fund.
2017 Parks Bonds Debt Service
To account for the South Bend Park District Bonds, Series 2017A-K debt retirement. Financing
for debt payments is to be provided by an annual property tax levy.
Fire Station No. 9 Debt Service
To account for the South Bend General Obligation Bonds Fire Station No. 9 debt retirement.
Financing for debt payments is to be provided by annual transfers from the City’s emergency
medical services (EMS) fund. If EMS revenues are insufficient, then financing of debt payments
will be provided by local income tax revenues, tax increment finance revenues or an annual
property tax levy.
2018 TIF Park Bonds Debt Service Reserve
To accumulate monies as a reserve for the Redevelopment District Bonds, Series 2018 debt.
Financing is provided by bond proceeds set aside for debt service.
Capital Project Funds
Professional Sports Development
To account for Professional Sports Development Tax revenues dedicated towards debt service
and improvements at Four Winds Field baseball stadium (formerly known as Coveleski Stadium).
Coveleski Stadium Capital
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.
Park Non-Reverting Capital
To account for specific revenues used to finance capital improvements at the City parks.
Cumulative Capital Development
To account for expenditures relating to the purchase or lease of capital improvements in the City.
Financing is provided by a specific property tax levy.
127
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
Cumulative Capital Improvement
To account for state cigarette tax distributions used for improvement projects.
Morris Performing Arts Center Capital
To account for improvements and upgrades to the Morris Performing Arts Center.
Redevelopment Retail Area (Leighton Plaza)
To account for revenue from the rental of property in downtown South Bend to be used
for Leighton Plaza maintenance costs.
Tax Incremental Financing (TIF) - West Washington
To account for expenditures for public improvement projects in the West Washington
Economic Development Area. Financing is provided by property tax proceeds in excess of those
attributable to the assessed value of the property in the district before redevelopment.
Redevelopment General
To account for eligible redevelopment activities in the Studebaker Corridor financed by
proceeds from land sales or leases.
Tax Incremental Financing (TIF) No. 1 - Southside Development
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.
Football Hall of Fame Capital
To account for capital expenditures for the College Football Hall of Fame. Financing was
provided by a transfer from the City's Professional Sports Development Fund. This fund also
accounts for the advance from the General Fund which may be repaid from future operating
surpluses.
Major Moves
To account for state distributions used for road construction and other uses authorized by Indiana
statute.
Tax Incremental Financing (TIF) - River East Development
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.
During TIF consolidation in 2015, this fund was renamed. It was formerly known as the TIF
Northeast Development Fund.
128
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
Tax Incremental Financing (TIF) - Douglas Road
To account for expenditures for improvements in the Douglas Road development tax
incremental district. Financing is provided by property tax proceeds in excess of those
attributable to the assessed valuation of the property in the district before redevelopment.
Tax Incremental Financing (TIF) - River East Residential
To account for expenditures for improvements in the Northeast Neighborhood Residential
development tax incremental district. Financing is provided by property tax proceeds in
excess of those attributable to the assessed valuation of the property in the district before
redevelopment. During TIF consolidation in 2015, this fund was renamed. It was formerly known as the TIF Northeast Residential Fund.
Certified Technology Park
To account for expenditures related to acquisition, improvements, construction and maintenance of public facilities, debt service, and other permitted uses under Indiana Code 36-7-32-23
in connection with a certified technology park. Financing is provided by property tax proceeds, state gross retail and uses taxes, and other revenues.
Palais Royale Historic Preservation
To account for expenditures financed by a 2 percent fee charged for all Palais Royale services.
Airport Urban Enterprise Zone
To account for expenditures for improvements in the Zone area, financed by property taxes
on qualifying properties in the Zone.
Vehicle Equipment Leasing
To account for proceeds from capital lease-purchase agreements used to finance major
equipment needs of the City.
Smart Streets Bond Capital Projects
To account for capital expenditures in connection with the conversion of one-way streets to
two-way streets in the downtown area. Funding is provided by a Redevelopment Authority
bond.
2015 Parks Bond Capital
To account for capital expenditures in the City parks with funding provided by a
Building Corporation bond.
2017 Parks Bond Capital
To account for capital expenditures in the City parks with funding provided by a 2017 Park
District bond.
Eddy St. Commons Capital
To account for capital expenditures in connection with the Eddy Street Commons phase II
project with funding provided by issuance of revenue bonds.
129
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
2018 Fire Station #9 Capital
To account for the expenditures of bond funds relating to the General Obligation Bonds, Series
2018 to be used for the construction of the new Fire Station #9 and additional classroom for the
Fire Training Center.
2018 Bonds Potawatomi Zoo Capital
To account for the expenditures of bond funds relating to the Economic Development Revenue
Bonds, Series 2018 to be used for planned capital projects to improve the City’s zoo.
2018 TIF Park Bond Capital
To account for the expenditures of bond funds relating to the Redevelopment District Bonds,
Series 2018 to be used for planned capital projects to improve the parks.
130
StudebakerOliver Economic CommunityMotor Vehicle Recreation Revitalization Development InvestmentHighwayNonrevertingGrantsState GrantsDCI OperatingGrantsAssetsCash and cash equivalents 2,671,742$ -$ 318,930$ 152,372$ 243,904$ 347,782$ Investments5,321,261 - 635,206 192,615 485,780 - Receivables:Taxes- - - - - - Accounts27,866 - - - 267 - Interest22,391 - 2,660 855 2,070 - Intergovernmental493,109 - - - 643 - Loans- - - 189,400 - 211,068 Due from other funds- - - - 21,833 - Advances to other funds- - 200,000 - - - Inventory- - - - - - Property held for resale- - 1- - 2,288,072 Restricted assets- -- -- - Total assets 8,536,369$ -$ 1,156,797$ 535,242$ 754,497$ 2,846,922$ LiabilitiesAccounts payable 118,471$ -$ 34,895$ -$ 4,536$ 271,579$ Due to other funds- - - - - - Advances from other funds- - - - - - Performance deposits payable- - - - - - Accrued liabilities and other:Accrued payroll payable72,855 - - - 40,414 - Other current payables- -- -- 2,698 Total liabilities 191,326 - 34,895 - 44,950 274,277 Fund BalancesNonspendable- - Restricted8,345,043 1,121,902 535,242Committed- - - - 2,572,645Assigned- - - - 709,547 - Unassigned- -- -- - Total fund balances 8,345,043 - 1,121,902 535,242 709,547 2,572,645 Total liabilities and fund balances 8,536,369$ -$ 1,156,797$ 535,242$ 754,497$ 2,846,922$ City of South Bend, IndianaCombining Balance SheetNonmajor Governmental FundsDecember 31, 2018Special Revenue Funds -- - -- -- -131
LawJuvenile EnforcementLOIT 2016Police State Positive Unsafe Continuing Landlord Loss Recovery Local Road andSpecialSeizureAssistanceBuildingEducationRegistrationFundStreetDistributionAssetsCash and cash equivalents 75,727$ 4,371$ 181,580$ 148,795$ 3,378$ 209,179$ 1,310,279$ 253,205$ Investments150,824 8,706 361,650 296,352 6,728 416,619 2,609,659 504,304 Receivables:Taxes- - - - - - - - Accounts100 - 3,271 10,550 - - 2,938 - Interest634 37 1,531 1,263 28 1,766 11,027 2,069 Intergovernmental- - - - - - 157,455 - Loans- - - - - - - - Due from other funds- - - - - - - - Advances to other funds- - - - - - - - Inventory- - - - - - - - Property held for resale- - - - - - - - Restricted assets- -- -- -- - Total assets 227,285$ 13,114$ 548,032$ 456,960$ 10,134$ 627,564$ 4,091,358$ 759,578$ LiabilitiesAccounts payable -$ -$ 10,655$ 94,142$ -$ -$ 132,176$ 166,762$ Due to other funds- - - - - - - - Advances from other funds- - - - - - - - Performance deposits payable- - 6,000 - - - - - Accrued liabilities and other:Accrued payroll payable- - 4,663 - - - - - Other current payables- -- -- -- - Total liabilities - -21,318 94,142 - -132,176 166,762 Fund BalancesNonspendable- - - - - - - - Restricted227,285 - - 362,818 - - 3,959,182 592,816 Committed- 13,114 526,714 - 10,134 627,564 - - Assigned- - - - - - - - Unassigned- -- -- -- - Total fund balances 227,285 13,114 526,714 362,818 10,134 627,564 3,959,182 592,816 Total liabilities and fund balances 227,285$ 13,114$ 548,032$ 456,960$ 10,134$ 627,564$ 4,091,358$ 759,578$ City of South Bend, IndianaCombining Balance SheetNonmajor Governmental Funds (Continued)December 31, 2018Special Revenue Funds132
Local Road and Morris andMorris PACEconomicHuman Rights Bridge MatchingPalaisSelf-Promoted Police Block DevelopmentIndiana RiverFederalGrantMarketingEventsGrantsCommissionHazmatRescueAssetsCash and cash equivalents 153,566$ 110,096$ 19,168$ 33,927$ 1,331$ -$ 6,364$ 60,569$ Investments374,868 219,277 38,177 67,571 2,652 - 12,675 120,635 Receivables:Taxes- - - - - - - - Accounts- - - - - - 3,275 15,600 Interest1,268 924 158 274 11- 53 530 Intergovernmental10,000 - - - - - - - Loans- - - - - - - - Due from other funds- - - - - - - - Advances to other funds- - - - - - - - Inventory- - - - - - - - Property held for resale- - - - - - - - Restricted assets- -- -- -- - Total assets 539,702$ 330,297$ 57,503$ 101,772$ 3,994$ -$ 22,367$ 197,334$ LiabilitiesAccounts payable 3,496$ -$ -$ -$ -$ -$ -$ 6,564$ Due to other funds- - - - - - - - Advances from other funds- - - - - - - - Performance deposits payable- - - - - - - - Accrued liabilities and other:Accrued payroll payable1,478 - - - - - - 69 Other current payables- -- -- -- - Total liabilities 4,974 - -- -- -6,633 Fund BalancesNonspendable - - - - - - - - Restricted534,728 330,297 - - 3,994 - - - Committed- - 57,503 101,772 - - 22,367 190,701 Assigned- - - - - - - - Unassigned- -- -- -- - Total fund balances 534,728 330,297 57,503 101,772 3,994 - 22,367 190,701 Total liabilities and fund balances 539,702$ 330,297$ 57,503$ 101,772$ 3,994$ -$ 22,367$ 197,334$ City of South Bend, IndianaCombining Balance SheetNonmajor Governmental Funds (Continued)December 31, 2018Special Revenue Funds133
City of South Bend, IndianaLeafUrban Collection IndustrialCOPS Block Regional Police COPS MORE Federal Drug Development and Police K-9 RevolvingGrant IIAcademyGrantEnforcementGiftAction GrantRemovalUnitFundAssetsCash and cash equivalents 26,716$ 32,904$ 67,532$ 153,920$ 55,092$ 9,667$ 198,319$ 779$ 1,632,491$ Investments- 65,535 134,503 - 109,725 19,253 394,989 1,551 - Receivables:Taxes- - - - - - - - - Accounts- - 4,159 - 100 - 31,667 - - Interest- 275 548 281 463 81 1,662 7 - Intergovernmental- -- - - - - - - Loans- -- - - 506,401 - - 5,276,676 Due from other funds- -- - - -- - - Advances to other funds- -- - - -- - - Inventory- -- - - -- - - Property held for resale- -- - - -- - 76,300 Restricted assets- -- -- -- -- Total assets 26,716$ 98,714$ 206,742$ 154,201$ 165,380$ 535,402$ 626,637$ 2,337$ 6,985,467$ LiabilitiesAccounts payable -$ 140$ 18,563$ -$ 12,205$ -$ -$ -$ -$ Due to other funds- - - - - - - - - Advances from other funds- - - - - 480,253 - - - Performance deposits payable- - - - - -- - - Accrued liabilities and other:Accrued payroll payable- - - - - - 1,172 - - Other current payables- -- -- -- -1,000 Total liabilities - 140 18,563 - 12,205 480,253 1,172- 1,000 Fund BalancesNonspendable- - - - - - - Restricted26,716 - 188,179 154,201 153,175 55,149- - 6,984,467Committed- 98,574 - - - - - - - Assigned- -- - - - 625,465 2,337 - Unassigned- -- --- Total fund balances 26,716 98,574 188,179 154,201 153,175 55,149 625,465 2,337 6,984,467 Total liabilities and fund balances 26,716$ 98,714$ 206,742$ 154,201$ 165,380$ 535,402$ 626,637$ 2,337$ 6,985,467$ Combining Balance SheetNonmajor Governmental Funds (Continued)December 31, 2018Special Revenue Funds -- -134
SpecialCollegeSouth BendRevenueFootballRedevelopment Coveleski Bond RedevelopmentBuilding2015 Parks BondFundsHall of Fame Bond - Airport Debt Service Bond - Palais Corporation Smart Streets Debt ServiceTotalDebt ServiceTaxableReserveRoyaleDebt ServiceDebt ServiceFundAssetsCash and cash equivalents 8,483,685$ 32,370$ 346,939$ 175,589$ 580,029$ 586,747$ 1,726,790$ 560,431$ Investments12,551,115 64,471 690,992 349,717 1,155,233 - - - Receivables:Taxes- - - - - - - - Accounts99,793 - - - - - - - Interest52,866 209 2,904 1,469 4,854 - - - Intergovernmental661,207 - - - - - - - Loans6,183,545 - - - - - - - Due from other funds21,833 - - - - - - - Advances to other funds200,000 - - - - - - - Inventory- - - - - - - - Property held for resale2,364,373 - - - - - - - Restricted assets- -- -- -- - Total assets 30,618,417$ 97,050$ 1,040,835$ 526,775$ 1,740,116$ 586,747$ 1,726,790$ 560,431$ LiabilitiesAccounts payable 874,184$ -$ -$ -$ -$ -$ -$ -$ Due to other funds- - 659 - 1,102 - - - Advances from other funds480,253 - - - - - - - Performance deposits payable6,000 - - - - - - - Accrued liabilities and other:Accrued payroll payable120,651 - - - - - - - Other current payables3,698 - -- -- -- Total liabilities 1,484,786 - 659- 1,102 - -- Fund BalancesNonspendable- - - - - - - Restricted 26,147,83997,050 1,040,176 526,775 1,739,014 586,747 1,726,790 560,431 Committed1,648,443 - - - - - - - Assigned1,337,349 - - - - - - - Unassigned- -- -- -- Total fund balances 29,133,631 97,050 1,040,176 526,775 1,739,014 586,747 1,726,790 560,431 Total liabilities and fund balances 30,618,417$ 97,050$ 1,040,835$ 526,775$ 1,740,116$ 586,747$ 1,726,790$ 560,431$ Combining Balance SheetNonmajor Governmental Funds (Continued)December 31, 2018City of South Bend, IndianaDebt Service Funds --135
Capital Projects FundsCentury2018 TIFCenter Energy Redevelopment Eddy St. Fire Station Park Bonds Debt Service ProfessionalConservationAuthority Commons 2017 Parks BondNo. 9Debt ServiceFundsSportsDebt ServiceDebt ServiceDebt ServiceDebt ServiceDebt ServiceReserveTotalDevelopmentAssetsCash and cash equivalents 90,351$ 210,492$ 3,452,908$ 49,245$ -$ 331,278$ 8,143,169$ -$ Investments79,965 - - 98,080 - 659,800 3,098,258 - Receivables:Taxes- - - - - - - - Accounts- - - - - - - - Interest336 - - 318 - 2,772 12,862 - Intergovernmental- - - - - - - - Loans- - - - - - - - Due from other funds- - - - - - - - Advances to other funds- - - - - - - - Inventory- - - - - - - - Property held for resale- - - - - - - - Restricted assets- -- -- -- - Total assets 170,652$ 210,492$ 3,452,908$ 147,643$ -$ 993,850$ 11,254,289$ -$ LiabilitiesAccounts payable -$ -$ -$ -$ -$ -$ -$ -$ Due to other funds- - - - - - 1,761 - Advances from other funds- - - - - - - - Performance deposits payable- - - - - - - - Accrued liabilities and other:Accrued payroll payable- - - - - - - - Other current payables- -- -- -- - Total liabilities - -- -- -1,761 - Fund BalancesNonspendable - - - - - - - - Restricted170,652 210,492 3,452,908 147,643 - 993,850 11,252,528 - Committed- - - - - -- - Assigned- - - - - -- - Unassigned- -- -- -- - Total fund balances 170,652 210,492 3,452,908 147,643 - 993,850 11,252,528 - Total liabilities and fund balances 170,652$ 210,492$ 3,452,908$ 147,643$ -$ 993,850$ 11,254,289$ -$ City of South Bend, IndianaCombining Balance SheetNonmajor Governmental Funds (Continued)December 31, 2018Debt Service Funds136
MorrisRedevelopmentCoveleskiParkCumulativeCumulativePerformingRetail AreaStadiumNonrevertingCapitalCapitalArts Center(LeightonTIF - West RedevelopmentCapitalCapitalDevelopmentImprovementCapitalPlaza)WashingtonGeneralAssetsCash and cash equivalents 24,487$ -$ 176,503$ 149,334$ 126,380$ 3,369$ 600,693$ 205,335$ Investments48,769 - 351,537 297,426 251,708 5,000 1,196,389 408,962 Receivables:Taxes- - - - - - - - Accounts- - - - - - - - Interest205 - 1,391 1,208 1,048 76 4,964 1,718 Intergovernmental- - - - - - - - Loans- - - - - - - - Due from other funds- - - - - - - - Advances to other funds- - - - - - - - Inventory- - - - - - - - Property held for resale- - - - - - 436,000 - Restricted assets- -- -- -- - Total assets 73,461$ -$ 529,431$ 447,968$ 379,136$ 8,445$ 2,238,046$ 616,015$ LiabilitiesAccounts payable -$ -$ -$ -$ 1,127$ -$ 19,380$ -$ Due to other funds- - - - - - - - Advances from other funds- - - - - - - - Performance deposits payable- - - - - - - - Accrued liabilities and other:Accrued payroll payable- - - - - - - - Other current payables- -- -- -- - Total liabilities - -- -1,127 - 19,380 - Fund BalancesNonspendable- - - - - - - Restricted- - 529,431 447,968 - 8,445 2,218,666- Committed73,461 - - - 378,009 - - 616,015 Assigned- - - - - - - - Unassigned- -- -- -- - Total fund balances 73,461 - 529,431 447,968 378,009 8,445 2,218,666 616,015 Total liabilities and fund balances 73,461$ -$ 529,431$ 447,968$ 379,136$ 8,445$ 2,238,046$ 616,015$ Capital Projects FundsCity of South Bend, IndianaCombining Balance SheetNonmajor Governmental Funds (Continued)December 31, 2018 -137
TIF No. 1 -Certified Palais RoyaleSouthside Football Hall of TIF River East TIF Douglas TIF - River East TechnologyHistoricDevelopmentFame CapitalMajor MovesDevelopmentRoadResidentialParkPreservationAssetsCash and cash equivalents 3,152,773$ 141,891$ 924,547$ 3,666,140$ 68,134$ 997,013$ 208,139$ 43,150$ Investments6,279,321 282,601 1,841,403 7,301,783 135,701 1,985,732 414,546 85,941 Receivables:Taxes133,911 - - - - - - - Accounts- - - - - - - 1,866 Interest26,129 1,188 7,738 30,086 570 8,054 1,741 361 Intergovernmental- - - - - - - - Loans- - - - - - - - Due from other funds- - - - - - - - Advances to other funds- - 2,781,424 - - - - - Inventory- - - - - - - - Property held for resale- - - 13,950 - - - - Restricted assets- -- -- -- - Total assets 9,592,134$ 425,680$ 5,555,112$ 11,011,959$ 204,405$ 2,990,799$ 624,426$ 131,318$ LiabilitiesAccounts payable 426,684$ -$ 37,175$ 12,683$ -$ -$ -$ 31,537$ Due to other funds- - - - - - - - Advances from other funds- 425,680 - - - 2,781,424 - - Performance deposits payable- -- - - - - - Accrued liabilities and other:Accrued payroll payable- - - - - - - - Other current payables- -- -- -- - Total liabilities 426,684 425,680 37,175 12,683 - 2,781,424 - 31,537 Fund BalancesNonspendable- - - - - - Restricted9,165,450 5,517,937 10,999,276204,405 209,375 624,426 - Committed- - - - - - - 99,781 Assigned- - - - - - - - Unassigned- -- -- -- - Total fund balances 9,165,450 - 5,517,937 10,999,276 204,405 209,375 624,426 99,781 Total liabilities and fund balances 9,592,134$ 425,680$ 5,555,112$ 11,011,959$ 204,405$ 2,990,799$ 624,426$ 131,318$ Capital Projects FundsCity of South Bend, IndianaCombining Balance SheetNonmajor Governmental Funds (Continued)December 31, 2018 -- -138
Airport UrbanVehicleSmart Streets 2015 Parks 2017 ParksEddy St.2018 Fire2018 BondsEnterpriseEquipmentBond Capital Bond Capital Bond CapitalCommonsStation #9PotawatomiZoneLeasingProjectsProjectsProjectsCapitalCapitalZoo CapitalAssetsCash and cash equivalents 131,262$ 1,392,303$ 68,843$ 471,687$ 4,326,706$ 7,650,244$ 1,168,054$ 3,264,860$ Investments261,431 1,501 - - 8,617,421 - 2,326,391 - Receivables:Taxes- - - - - - - - Accounts- - - - - - - - Interest1,098 6- - 36,341 - 9,773 - Intergovernmental- - - - - - - - Loans- - - - - - - - Due from other funds- - - - - - - - Advances to other funds- - - - - - - - Inventory- - - - - - - - Property held for resale- - - - - - - - Restricted assets- -- -- -- - Total assets 393,791$ 1,393,810$ 68,843$ 471,687$ 12,980,468$ 7,650,244$ 3,504,218$ 3,264,860$ LiabilitiesAccounts payable -$ 107,476$ -$ 24,200$ 509,635$ -$ 569,853$ -$ Due to other funds- - - - - - - - Advances from other funds- - - - - - - - Performance deposits payable- - - - - - - - Accrued liabilities and other:Accrued payroll payable- - - - - - - - Other current payables- -- -- 25,564 - - Total liabilities - 107,476 - 24,200 509,635 25,564 569,853 - Fund BalancesNonspendable - - - - - - - - Restricted- 1,286,334 68,843 447,487 12,470,833 7,624,680 2,934,365 3,264,860 Committed393,791 - - - - - - - Assigned- - - - - - - - Unassigned- -- -- -- - Total fund balances 393,791 1,286,334 68,843 447,487 12,470,833 7,624,680 2,934,365 3,264,860 Total liabilities and fund balances 393,791$ 1,393,810$ 68,843$ 471,687$ 12,980,468$ 7,650,244$ 3,504,218$ 3,264,860$ Capital Projects FundsCity of South Bend, IndianaCombining Balance SheetNonmajor Governmental Funds (Continued)December 31, 2018139
2018 TIFCapital Total NonmajorPark BondProject Funds GovernmentalCapitalTotalFundsAssetsCash and cash equivalents 3,477,629$ 32,439,476$ 49,066,330$ Investments6,926,331 39,019,894 54,669,267 Receivables:Taxes- 133,911 133,911 Accounts- 1,866 101,659 Interest29,187 162,882 228,610 Intergovernmental- - 661,207 Loans- - 6,183,545 Due from other funds- - 21,833 Advances to other funds- 2,781,424 2,981,424 Inventory- -- Property held for resale- 449,950 2,814,323 Restricted assets- -- Total assets 10,433,147$ 74,989,403$ 116,862,109$ LiabilitiesAccounts payable 265,876$ 2,005,626$ 2,879,810$ Due to other funds- - 1,761 Advances from other funds- 3,207,104 3,687,357 Performance deposits payable- -6,000 Accrued liabilities and other:Accrued payroll payable- - 120,651 Other current payables- 25,564 29,262 Total liabilities 265,876 5,238,294 6,724,841 Fund BalancesNonspendableRestricted10,167,271 68,190,052 105,590,419Committed- 1,561,057 3,209,500 Assigned- -1,337,349 Unassigned- -Total fund balances10,167,271 69,751,109 110,137,268 Total liabilities and fund balances 10,433,147$ 74,989,403$ 116,862,109$ Capital Projects FundsCity of South Bend, IndianaCombining Balance SheetNonmajor Governmental Funds (Continued)December 31, 2018 -- --140
StudebakerOliver Economic Community JuvenileMotor Vehicle Recreation Revitalization Development Investment Police StatePositiveHighwayNonrevertingGrantsState GrantsDCI OperatingGrantsSeizureAssistanceRevenueProperty taxes-$ -$ -$ -$ -$ -$ -$ -$ Hotel/motel taxes- - - - - - - - Intergovernmental6,982,767 - 28,198 - 270,192 3,542,536 - - Charges for services- 949,993 - - 312,335 - - - Fines and forfeitures- -- - - - - 138 Investment income140,637 15,276 16,541 6,901 14,287 1,163 3,769 237 Rental income- - - - - - - - Other revenue25,058 7,863 - 4,999 7,245 193,140 33,273 750 Total revenue 7,148,462 973,132 44,739 11,900 604,059 3,736,839 37,042 1,125 ExpendituresCurrent:General government - - - - - - - - Public safety- - - - - - 7,856 854 Highways and streets9,421,468 - - - - - - - Community and economic development- - 118,621 55,662 2,863,993 4,664,248 - - Culture and recreation- 961,383 - - - - - - Bond issuance costs- -- - - - - - Capital outlay- -- - - - - - Debt service:Principal719,631 - - 65,591 - - - - Interest on long-term debt37,504 - -6,419 - -- - Total expenditures 10,178,603 961,383 118,621 127,672 2,863,993 4,664,248 7,856 854 Excess of Revenue (Under) Over Expenditures (3,030,141) 11,749 (73,882) (115,772) (2,259,934) (927,409) 29,186 271 Other Financing Sources (Uses)Debt proceeds - - - - - - - - Premium on debt- - - - - - - - Proceeds from sale of capital assets33,212 - - - - - - - Transfers in3,814,963 - - - 1,866,020 - - - Transfers out- (798,976) - - - - - - Total other financing sources (uses)3,848,175 (798,976)- -1,866,020- -- Net Change in Fund Balances 818,034 (787,227) (73,882) (115,772) (393,914) (927,409) 29,186 271 Fund Balances - Beginning of year7,527,009 787,227 1,195,784 651,014 1,103,461 3,500,054 198,099 12,843 Fund Balances - End of year 8,345,043$ -$ 1,121,902$ 535,242$ 709,547$ 2,572,645$ 227,285$ 13,114$ City of South Bend, IndianaCombining Statement of Revenue, Expenditures, and Changes in Fund BalancesNonmajor Governmental FundsYear Ended December 31, 2018Special Revenue Funds141
LawEnforcementLOIT 2016 Local Road andUnsafe Continuing Landlord Loss Recovery Local Road and Special Human Rights Bridge MatchingBuildingEducationRegistrationFundStreetDistributionFederalGrantRevenueProperty taxes-$ -$ -$ -$ -$ -$ -$ -$ Hotel/motel taxes- - - - - - - - Intergovernmental- - - - 2,412,146 670,000 74,580 - Charges for services120,101 124,466 310 - - - - - Fines and forfeitures55,310 64,797 - - - - - - Investment income6,246 10,045 144 13,025 71,601 37,694 9,015 6,494 Rental income- - - - - - - - Other revenue8,962 18,377 - -85,572 185,735 23,303 - Total revenue 190,619 217,685 454 13,025 2,569,319 893,429 106,898 6,494 ExpendituresCurrent:General government - - 5 98,130 - - 150,820 - Public safety657,733 419,485 - - - - - - Highways and streets- - - - 1,814,822 1,349,806 - 1,984,147 Community and economic development- - - - - - - -Culture and recreation- - - - - - - -Bond issuance costs- - - - - - - -Capital outlay- - - - - - - -Debt service:Principal- - - - - - - - Interest on long-term debt- -- -- -- - Total expenditures 657,733 419,4855 98,130 1,814,822 1,349,806 150,820 1,984,147 Excess of Revenue (Under) Over Expenditures (467,114) (201,800) 449 (85,105) 754,497 (456,377) (43,922) (1,977,653) Other Financing Sources (Uses)Debt proceeds - - - - - - - - Premium on debt- - - - - - - - Proceeds from sale of capital assets- - - - - - - - Transfers in648,273 - - - - 254,000 - 1,370,500 Transfers out(27,500) - - - (284,500) (1,340,000) - -Total other financing sources (uses)620,773- -- (284,500) (1,086,000) - 1,370,500 Net Change in Fund Balances 153,659 (201,800) 449 (85,105) 469,997 (1,542,377) (43,922) (607,153) Fund Balances - Beginning of year373,055 564,618 9,685 712,669 3,489,185 2,135,193 578,650 937,450 Fund Balances - End of year 526,714$ 362,818$ 10,134$ 627,564$ 3,959,182$ 592,816$ 534,728$ 330,297$ Special Revenue FundsCity of South Bend, IndianaCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental Funds Year Ended December 31, 2018142
Morris andMorris PACEconomicPalaisSelf-Promoted Police Block DevelopmentIndiana River COPS Block Regional PoliceMarketingEventsGrantsCommissionHazmatRescueGrant IIAcademyRevenueProperty taxes-$ -$ -$ -$ -$ -$ -$ -$ Hotel/motel taxes- - - - - - - - Intergovernmental- - - - - - - - Charges for services17,373 100,932 - - 3,275 116,190 - 21,191 Fines and forfeitures- - - - - - - -Investment income1,043 840 72 250 451 2,827 - 1,747 Rental income- - - - - - - -Other revenue- -- - 3 - -- Total revenue 18,416 101,77272 250 3,729 119,017- 22,938 ExpendituresCurrent:General government - - - - - - - - Public safety- - - - 8,834 56,727 21,735 8,367 Highways and streets- - - - - - - - Community and economic development- - - - - - - - Culture and recreation16,083 - - - - - - - Bond issuance costs- - - - - - - - Capital outlay- - - - - - - - Debt service:Principal- - - - - - - - Interest on long-term debt- -- -- -- - Total expenditures 16,083 - -- 8,834 56,727 21,735 8,367 Excess of Revenue (Under) Over Expenditures 2,333 101,77272 250 (5,105) 62,290 (21,735) 14,571 Other Financing Sources (Uses)Debt proceeds - - - - - - - - Premium on debt- - - - - - - - Proceeds from sale of capital assets- - - - - 5,152 - - Transfers in- - - - - - - - Transfers out- - - (28,126) - - - - Total other financing sources (uses)- -- (28,126)- 5,152 - - Net Change in Fund Balances 2,333 101,772 72 (27,876) (5,105) 67,442 (21,735) 14,571 Fund Balances - Beginning of year55,170 - 3,922 27,876 27,472 123,259 48,451 84,003 Fund Balances - End of year 57,503$ 101,772$ 3,994$ -$ 22,367$ 190,701$ 26,716$ 98,574$ Combining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental Funds Year Ended December 31, 2018Special Revenue FundsCity of South Bend, Indiana143
LeafUrban Collection IndustrialCOPS MORE Federal Drug Development and Police K-9 IndustrialGrantEnforcementGiftAction GrantRemovalUnitRevolvingTotalRevenueProperty taxes-$ -$ -$ -$ -$ -$ -$ -$ Hotel/motel taxes- - - - - - - - Intergovernmental101,310 - - - - - - 14,081,729 Charges for services- - - - 447,241 - 28,037 2,241,444 Fines and forfeitures- - - - - - - 120,245 Investment income2,343 2,772 2,557 6,219 14,329 52 206,484 595,061 Rental income- - - - - - - - Other revenue30,797 42,636 108,790 259,121- -- 1,035,624 Total revenue 134,450 45,408 111,347 265,340 461,57052 234,521 18,074,103 ExpendituresCurrent:General government - - 55,545 - 95,645 - - 400,145 Public safety56,012 22,100 - - - 601 - 1,260,304 Highways and streets- - - - - - - 14,570,243 Community and economic development- - - - - - 102,258 7,804,782 Culture and recreation- - - - - - - 977,466 Bond issuance costs- - - - - - - - Capital outlay- - - - - - - - Debt service:Principal- - - - 48,404 - - 833,626 Interest on long-term debt- -- -576 - -44,499 Total expenditures 56,012 22,100 55,545 - 144,625 601 102,258 25,891,065 Excess of Revenue (Under) Over Expenditures 78,438 23,308 55,802 265,340 316,945 (549) 132,263 (7,816,962) Other Financing Sources (Uses)Debt proceeds - - - - - - - - Premium on debt- - - - - - - - Proceeds from sale of capital assets- - - - - - - 38,364 Transfers in- - - - - - - 7,953,756 Transfers out- - - - (550,000) - - (3,029,102) Total other financing sources (uses)- -- -(550,000)- -4,963,018 Net Change in Fund Balances 78,438 23,308 55,802 265,340 (233,055) (549) 132,263 (2,853,944) Fund Balances - Beginning of year109,741 130,893 97,373 (210,191) 858,520 2,886 6,852,204 31,987,575 Fund Balances - End of year 188,179$ 154,201$ 153,175$ 55,149$ 625,465$ 2,337$ 6,984,467$ 29,133,631$ City of South Bend, IndianaCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental Funds Year Ended December 31, 2018Special Revenue Funds144
CollegeSouth Bend CenturyFootball Redevelopment Coveleski Bond Redevelopment Building Center EnergyHall of Fame Bond - Airport Debt Service Bond - Palais Corporation Smart Streets 2015 Parks Bond ConservationDebt ServiceTaxableReserveRoyaleDebt ServiceDebt ServiceDebt ServiceDebt ServiceRevenueProperty taxes426,604$ -$ -$ -$ -$ -$ -$ -$ Hotel/motel taxes- - - - - - - 221,437 Intergovernmental28,705 - - - - - - - Charges for services- - - - - - - - Fines and forfeitures- - - - - - - - Investment income114 19,131 9,426 31,985 10,088 4,589 2,787 112 Rental income- - - - - - - - Other revenue- -- -- -- 110,048 Total revenue 455,423 19,131 9,426 31,985 10,088 4,589 2,787 331,597 ExpendituresCurrent:General government - - - - - - - - Public safety- - - - - - - - Highways and streets- - - - - - - - Community and economic development- - - - - - - - Culture and recreation- - - - - - - - Bond issuance costs- - - - - - - - Capital outlay- - - - - - - - Debt service:Principal620,000 - - - 1,801,815 940,000 210,000 162,702 Interest on long-term debt11,315 - -- 355,205 770,444 169,106 143,034 Total expenditures 631,315- -- 2,157,020 1,710,444 379,106 305,736 Excess of Revenue (Under) Over Expenditures (175,892) 19,131 9,426 31,985 (2,146,932) (1,705,855) (376,319) 25,861 Other Financing Sources (Uses)Debt proceeds - - - - - - - - Premium on debt- - - - - - - - Proceeds from sale of capital assets248,724 - - - - - - - Transfers in- - - - 2,158,975 1,714,000 347,259 85,909 Transfers out- (17,814) - (29,783) - - - - Total other financing sources (uses)248,724 (17,814)- (29,783) 2,158,975 1,714,000 347,259 85,909 Net Change in Fund Balances 72,832 1,317 9,426 2,202 12,043 8,145 (29,060) 111,770 Fund Balances - Beginning of year24,218 1,038,859 517,349 1,736,812 574,704 1,718,645 589,491 58,882 Fund Balances - End of year 97,050$ 1,040,176$ 526,775$ 1,739,014$ 586,747$ 1,726,790$ 560,431$ 170,652$ City of South Bend, IndianaCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental Funds Year Ended December 31, 2018Debt Service Funds145
2018 TIFRedevelopment Eddy St. Park Bonds Professional CoveleskiAuthority Commons 2017 Parks Bond Fire Station #9 Debt Service SportsStadiumDebt ServiceDebt ServiceDebt ServiceDebt ServiceReserveTotalDevelopmentCapitalRevenueProperty taxes-$ -$ 703,118$ -$ -$ 1,129,722$ -$ -$ Hotel/motel taxes- - - - - 221,437 - - Intergovernmental- - 37,107 - - 65,812 - - Charges for services- - - - - - - - Fines and forfeitures- - - - - - - - Investment income4,699 6,428 722 - 355 90,436 37 1,083 Rental income- - - - - - - - Other revenue- -- -- 110,048 7,431 29,082 Total revenue 4,699 6,428 740,947- 355 1,617,455 7,468 30,165 ExpendituresCurrent:General government - - - - - - - - Public safety- - - - - - - - Highways and streets- - - - - - - - Community and economic development- - - - - - - - Culture and recreation- - - - - - - - Bond issuance costs- - - - - - - - Capital outlay- - - - - - - 11,249 Debt service:Principal1,915,000 25,000 350,000 75,000 - 6,099,517 770,000 - Interest on long-term debt1,192,219 1,253,472 243,304 45,663 - 4,183,762 44,870 - Total expenditures 3,107,219 1,278,472 593,304 120,663- 10,283,279 814,870 11,249 Excess of Revenue (Under) Over Expenditures (3,102,520) (1,272,044) 147,643 (120,663) 355 (8,665,824) (807,402) 18,916 Other Financing Sources (Uses)Debt proceeds - - - - 993,495 993,495 - - Premium on debt- - - - - - - - Proceeds from sale of capital assets- - - - - 248,724 - - Transfers in3,115,000 2,223,472 - 120,663 - 9,765,278 783,696 - Transfers out(324,220) - - - - (371,817) - - Total other financing sources (uses)2,790,780 2,223,472- 120,663 993,495 10,635,680 783,696- Net Change in Fund Balances (311,740) 951,428 147,643 - 993,850 1,969,856 (23,706) 18,916 Fund Balances - Beginning of year522,232 2,501,480- -- 9,282,672 23,706 54,545 Fund Balances - End of year 210,492$ 3,452,908$ 147,643$ -$ 993,850$ 11,252,528$ -$ 73,461$ City of South Bend, IndianaCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental Funds Year Ended December 31, 2018Debt Service FundsCapital Projects Funds146
MorrisRedevelopmentParkCumulativeCumulativePerformingRetail AreaTIF No. 1 -NonrevertingCapitalCapitalArts Center(LeightonTIF - West Redevelopment SouthsideCapitalDevelopmentImprovementCapitalPlaza)WashingtonGeneralDevelopmentRevenueProperty taxes-$ 436,677$ -$ -$ -$ 332,220$ -$ 2,300,548$ Hotel/motel taxes- - - - - - - - Intergovernmental- 38,374 236,379 - - - - - Charges for services4,665 - - 101,251 - - - - Fines and forfeitures- - - - - - - - Investment income1,162 8,589 5,690 7,220 2,739 38,440 3,187 151,204 Rental income- - - - - - - - Other revenue27,600 - 25,000 - 62,656 - 607,302 3,020 Total revenue 33,427 483,640 267,069 108,471 65,395 370,660 610,489 2,454,772 ExpendituresCurrent:General government - - - - - - - - Public safety- - - - - - - - Highways and streets- - - - - - - - Community and economic development- - - - - - - - Culture and recreation- - - - - - - - Bond issuance costs- - - - - - - - Capital outlay44,855 - - 146,190 103,744 814,872 1,894 1,112,636 Debt service:Principal- 549,419 - - - - - - Interest on long-term debt- 25,983 - -- -- - Total expenditures 44,855 575,402- 146,190 103,744 814,872 1,894 1,112,636 Excess of Revenue (Under) Over Expenditures (11,428) (91,762) 267,069 (37,719) (38,349) (444,212) 608,595 1,342,136 Other Financing Sources (Uses)Debt proceeds - - - - - - - - Premium on debt- - - - - - - - Proceeds from sale of capital assets- - - - - - - - Transfers in- - - - - - 28,126 - Transfers out(126,675) - (249,500) - (132,306) - (28,100) - Total other financing sources (uses)(126,675) - (249,500)- (132,306)- 26 - Net Change in Fund Balances (138,103) (91,762) 17,569 (37,719) (170,655) (444,212) 608,621 1,342,136 Fund Balances - Beginning of year138,103 621,193 430,399 415,728 179,100 2,662,878 7,394 7,823,314 Fund Balances - End of year -$ 529,431$ 447,968$ 378,009$ 8,445$ 2,218,666$ 616,015$ 9,165,450$ City of South Bend, IndianaCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental Funds Year Ended December 31, 2018Capital Projects Funds147
CertifiedPalais Royale Airport UrbanFootball Hall ofTIF River East TIF Douglas TIF - River East TechnologyHistoricEnterpriseFame CapitalMajor MovesDevelopmentRoadResidentialParkPreservationZoneRevenueProperty taxes-$ -$ 3,062,820$ -$ 4,686,651$ -$ -$ -$ Hotel/motel taxes- - - - - - - - Intergovernmental- - - - - - - - Charges for services- - - - - - 19,527 - Fines and forfeitures- - - - - - - - Investment income7,819 168,444 162,582 3,585 6,164 11,173 2,156 7,046 Rental income- - - - - - - - Other revenue- -68,556 - 6 - -- Total revenue 7,819 168,444 3,293,958 3,585 4,692,821 11,173 21,683 7,046 ExpendituresCurrent:General government - - - - - - - - Public safety- - - - - - - - Highways and streets- 703,883 - - - - - - Community and economic development- -- - - - - - Culture and recreation- -- - - - - - Bond issuance costs- -- - - - - - Capital outlay29,142 - 484,211 - 2,026 - 31,537 - Debt service:Principal- - - - - - - - Interest on long-term debt- -- -116,911- -- Total expenditures 29,142 703,883 484,211- 118,937- 31,537 - Excess of Revenue (Under) Over Expenditures (21,323) (535,439) 2,809,747 3,585 4,573,884 11,173 (9,854) 7,046 Other Financing Sources (Uses)Debt proceeds - - - - - - - - Premium on debt- - - - - - - - Proceeds from sale of capital assets- - - - - - - - Transfers in21,323 - - - 61 - - - Transfers out- - - - (4,693,972) - - - Total other financing sources (uses)21,323 - -- (4,693,911) - -- Net Change in Fund Balances - (535,439) 2,809,747 3,585 (120,027) 11,173 (9,854) 7,046 Fund Balances - Beginning of year- 6,053,376 8,189,529 200,820 329,402 613,253 109,635 386,745 Fund Balances - End of year -$ 5,517,937$ 10,999,276$ 204,405$ 209,375$ 624,426$ 99,781$ 393,791$ Capital Projects FundsCity of South Bend, IndianaCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental Funds Year Ended December 31, 2018148
VehicleSmart Streets 2015 Parks 2017 ParksEddy St.2018 Fire2018 Bonds2018 TIFEquipment Bond Capital Bond Capital Bond Capital CommonsStation #9PotawatomiPark BondLeasingProjectsProjectsProjectsCapitalCapitalZoo CapitalCapitalRevenueProperty taxes-$ -$ -$ -$ -$ -$ -$ -$ Hotel/motel taxes- - - - - - - - Intergovernmental- - - - - - - - Charges for services- - - - - - - - Fines and forfeitures- - - - - - - - Investment income31,435 1,060 4,813 194,603 121 57,325 2,000 3,807 Rental income- - - - - - - - Other revenue- -- -- -- - Total revenue 31,435 1,060 4,813 194,603 121 57,325 2,000 3,807 ExpendituresCurrent:General government - - - - - - - - Public safety- - - - - - - - Highways and streets- - - - - - - - Community and economic development- - - - - - - - Culture and recreation- - - - - - - - Bond issuance costs- - - 17,750 - - 148,135 - Capital outlay3,795,628 972,373 2,036,618 1,594,978 8,479,191 2,205,276 439,955 934,144 Debt service:Principal- - - - - - - - Interest on long-term debt- -- -- -- - Total expenditures 3,795,628 972,373 2,036,618 1,612,728 8,479,191 2,205,276 588,090 934,144 Excess of Revenue (Under) Over Expenditures (3,764,193) (971,313) (2,031,805) (1,418,125) (8,479,070) (2,147,951) (586,090) (930,337) Other Financing Sources (Uses)Debt proceeds 3,028,368 - - - - 5,045,000 3,440,000 11,001,505 Premium on debt- - - - - 37,316 346,189 96,103 Proceeds from sale of capital assets- - - - - -- - Transfers in101,776 - - - - - 64,761 - Transfers out(210,118) - (288) - - - -- Total other financing sources (uses)2,920,026- (288)- -5,082,316 3,850,950 11,097,608 Net Change in Fund Balances (844,167) (971,313) (2,032,093) (1,418,125) (8,479,070) 2,934,365 3,264,860 10,167,271 Fund Balances - Beginning of year2,130,501 1,040,156 2,479,580 13,888,958 16,103,750 - -- Fund Balances - End of year 1,286,334$ 68,843$ 447,487$ 12,470,833$ 7,624,680$ 2,934,365$ 3,264,860$ 10,167,271$ Year Ended December 31, 2018Capital Projects FundsCity of South Bend, IndianaCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental Funds 149
Capital Projects FundsTotal NonmajorGovernmentalTotalFundsRevenueProperty taxes10,818,916$ 11,948,638$ Hotel/motel taxes- 221,437 Intergovernmental274,753 14,422,294 Charges for services125,443 2,366,887 Fines and forfeitures- 120,245 Investment income883,484 1,568,981 Rental income- - Other revenue830,653 1,976,325 Total revenue 12,933,249 32,624,807 ExpendituresCurrent:General government - 400,145 Public safety - 1,260,304 Highways and streets703,883 15,274,126 Community and economic development- 7,804,782 Culture and recreation- 977,466 Bond issuance costs165,885 165,885 Capital outlay23,240,519 23,240,519 Debt service:Principal1,319,419 8,252,562 Interest on long-term debt187,764 4,416,025 Total expenditures 25,617,470 61,791,814 Excess of Revenue (Under) Over Expenditures (12,684,221) (29,167,007) Other Financing Sources (Uses)Debt proceeds 22,514,873 23,508,368 Premium on debt 479,608 479,608 Proceeds from sale of capital assets- 287,088 Transfers in999,743 18,718,777 Transfers out (5,440,959) (8,841,878) Total other financing sources (uses) 18,553,265 34,151,963 Net Change in Fund Balances 5,869,044 4,984,956 Fund Balances - Beginning of year 63,882,065 105,152,312 Fund Balances - End of year 69,751,109$ 110,137,268$ City of South Bend, IndianaCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental Funds Year Ended December 31, 2018150
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
18,662,835$ 18,662,835$ -$ $ 18,358,133
395,000
365,000 22,988 (342,012)
- 4,320 3,220 (1,100)
200,000 450,000 490,094 40,094
Taxes - property
Taxes - hotel/motel
Intergovernmental
Charges for services
Investment income
Other - 4,724,184 4,671,057 (53,127)
Total revenues 18,953,133 24,601,339 24,245,194 (356,145)
Expenditures:
Current:
Economic development:
Other services and charges 8,457,172 12,929,620 7,287,437 5,642,183
Capital outlay 18,042,828 31,158,587 14,557,517 16,601,070
Total expenditures 26,500,000 44,088,207 21,844,954 22,243,253
Other financing sources (uses):
Transfers in 34,000 39,881 45,896 6,015
Transfers out - (4,267,975) (4,267,975) -
Net change in fund balances (7,512,867) (23,714,962) (1,821,839) 21,893,123
Fund balances - beginning 33,563,915 33,563,915 33,563,915 -
Fund balances - ending 26,051,048$ 9,848,953$ 31,742,076$ 21,893,123$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (1,821,839)$
To adjust revenues for accruals (1,020,934)
To adjust expenditures for accruals (2,746,579)
To adjust expenditures for encumbrances 6,484,951
Net change in fund balance, GAAP basis 895,599$
Other Supplemental Information
Budgetary Comparison Schedule - Major Governmental Funds
Capital Projects Funds - River West TIF
Year Ended December 31, 2018
395,000 395,000 -
-
151
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 7,220,000$ 6,870,731$ 6,870,730$ (1)$
Charges for services 223,365 223,365 244,703 21,338
Investment income 30,861 139,982 137,767 (2,215)
Other 26,082 44,199 25,058 (19,141)
Total revenues 7,500,308 7,278,277 7,278,258 (19)
Expenditures:
Current:
Highways and streets:
Personnel services 4,747,217 4,747,217 4,236,841 510,376
Supplies 2,448,534 2,648,084 1,701,021 947,063
Other services and charges 4,838,467 4,970,812 4,271,818 698,994
Capital outlay - 27,868 27,868 -
Total expenditures 12,034,218 12,393,981 10,237,548 2,156,433
Other Financing Sources (Uses):
Proceeds from sale of capital assets - 33,212 33,212 -
Transfers in 3,787,750 3,814,963 3,814,963 -
Net change in fund balances (746,160) (1,267,529) 888,885 2,156,414
Fund balances - beginning 7,132,834 7,132,834 7,132,834 -
Fund balances - ending 6,386,674$ 5,865,305$ 8,021,719$ 2,156,414$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 888,885$
To adjust revenues for accruals (129,796)
To adjust expenditures for accruals (913,333)
To adjust expenditures for encumbrances 972,278
Net change in fund balance, GAAP basis 818,034$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
Special Revenue Funds - Motor Vehicle Highway
Year Ended December 31, 2018
152
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 1,392,436$ 1,516,205$ 972,422$ (543,783)$
Investment income 6,000 15,000 15,514 514
Other 125,000 125,840 7,863 (117,977)
Total revenues 1,523,436 1,657,045 995,799 (661,246)
Expenditures:
Current:
Culture and recreation:
Personnel services 500,648 516,417 330,407 186,010
Supplies 275,561 294,708 122,292 172,416
Other services and charges 696,021 804,278 518,772 285,506
Capital outlay 125,000 125,000 9,998 115,002
Total expenditures 1,597,230 1,740,403 981,469 758,934
Other Financing Sources (Uses):
Transfers out - (850,000) (798,976) 51,024
Net change in fund balances (73,794) (933,358) (784,646) 148,712
Fund balances - beginning 785,885 785,885 785,885 -
Fund balances - ending 712,091$ (147,473)$ 1,239$ 148,712$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (784,646)$
To adjust revenues for accruals (22,667)
To adjust expenditures for accruals 20,086
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis (787,227)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
Special Revenue Funds - Recreation Nonreverting
Year Ended December 31, 2018
(Continued)
153
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental -$ 101,014$ 63,513$ (37,501)$
Investment income 4,000 15,500 16,217 717
Other 100,000 100,000 100,000 -
Total revenues 104,000 216,514 179,730 (36,784)
Expenditures:
Current:
Economic development:
Other services and charges 940,000 1,078,598 98,594 980,004
Total expenditures 940,000 1,078,598 98,594 980,004
Net change in fund balances (836,000) (862,084) 81,136 943,220
Fund balances - beginning 876,414 876,414 876,414 -
Fund balances - ending 40,414$ 14,330$ 957,550$ 943,220$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 81,136$
To adjust revenues for accruals (134,991)
To adjust expenditures for accruals (277,809)
To adjust expenditures for encumbrances 257,782
Net change in fund balance, GAAP basis (73,882)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Studebaker Oliver Revitalization Grants
Year Ended December 31, 2018
154
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental -$ 675,232$ 2,375$ (672,857)$
Investment income 7,919 13,019 11,782 (1,237)
Other 65,593 65,593 49,009 (16,584)
Total revenues 73,512 753,844 63,166 (690,678)
Expenditures:
Current:
Economic development:
Other services and charges 72,013 929,990 127,672 802,318
Total expenditures 72,013 929,990 127,672 802,318
Net change in fund balances 1,499 (176,146) (64,506) 111,640
Fund balances - beginning 410,752 410,752 410,752 -
Fund balances - ending 412,251$ 234,606$ 346,246$ 111,640$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (64,506)$
To adjust revenues for accruals (51,266)
To adjust expenditures for accruals (81,000)
To adjust expenditures for encumbrances 81,000
Net change in fund balance, GAAP basis (115,772)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Economic Development State Grants
Year Ended December 31, 2018
155
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 440,636$ 440,636$ 270,192$ (170,444)$
Charges for services 333,500 337,335 338,582 1,247
Fines and forfeitures 2,000 2,000 - (2,000)
Investment income 10,000 16,000 14,158 (1,842)
Other - 4,525 4,256 (269)
Total revenues 786,136 800,496 627,188 (173,308)
Expenditures:
Current:
Economic development:
Personnel services 2,175,705 2,175,705 2,095,383 80,322
Supplies 23,486 24,968 19,501 5,467
Other services and charges 636,583 876,423 759,969 116,454
Total expenditures 2,835,774 3,077,096 2,874,853 202,243
Other financing sources (uses):
Transfers in 1,866,020 1,866,020 1,866,020 -
Transfers out - - - -
Net change in fund balances (183,618) (410,580) (381,645) 28,935
Fund balances - beginning 1,114,625 1,114,625 1,114,625 -
Fund balances - ending 931,007$ 704,045$ 732,980$ 28,935$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (381,645)$
To adjust revenues for accruals (23,129)
To adjust expenditures for accruals (82,437)
To adjust expenditures for encumbrances 93,297
Net change in fund balance, GAAP basis (393,914)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - DCI Operating
Year Ended December 31, 2018
156
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 2,711,000$ 6,687,141$ 3,542,536$ (3,144,605)$
Fines and forfeitures 1,000 1,000 110 (890)
Investment income 2,000 2,000 1,163 (837)
Other 197,000 218,204 202,281 (15,923)
Total revenues 2,911,000 6,908,345 3,746,090 (3,162,255)
Expenditures:
Current:
Economic development:
Other services and charges 2,911,000 6,874,598 3,848,101 3,026,497
Total expenditures 2,911,000 6,874,598 3,848,101 3,026,497
Net change in fund balances - 33,747 (102,011) (135,758)
Fund balances - beginning 450,607 450,607 450,607 -
Fund balances - ending 450,607$ 484,354$ 348,596$ (135,758)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (102,011)$
To adjust revenues for accruals (9,251)
To adjust expenditures for accruals (3,550,062)
To adjust expenditures for encumbrances 2,733,915
Net change in fund balance, GAAP basis (927,409)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Community Investment
Year Ended December 31, 2018
157
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 30,000$ 36,737$ 36,737$ -$
Investment income 2,000 4,000 3,692 (308)
Other - 300 300 -
Total revenues 32,000 41,037 40,729 (308)
Expenditures:
Current:
Public safety:
Other services and charges 32,000 32,000 7,856 24,144
Total expenditures 32,000 32,000 7,856 24,144
Net change in fund balances - 9,037 32,873 23,836
Fund balances - beginning 194,467 194,467 194,467 -
Fund balances - ending 194,467$ 203,504$ 227,340$ 23,836$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 32,873$
To adjust revenues for accruals (3,687)
To adjust expenditures for accruals -
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis 29,186$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Police State Seizure
Year Ended December 31, 2018
158
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Fines and forfeitures 200$ 200$ 138$ (62)$
Investment income 100 230 232 2
Other - 750 750 -
Total revenues 300 1,180 1,120 (60)
Expenditures:
Current:
Public safety:
Other services and charges 1,000 1,000 854 146
Total expenditures 1,000 1,000 854 146
Net change in fund balances (700) 180 266 86
Fund balances - beginning 12,860 12,860 12,860 -
Fund balances - ending 12,160$ 13,040$ 13,126$ 86$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 266$
To adjust revenues for accruals 5
To adjust expenditures for accruals -
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis 271$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Juvenile Positive Assistance
Year Ended December 31, 2018
159
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 199,500$ 181,410$ 120,643$ (60,767)$
Fines and forfeitures 61,000 99,250 72,893 (26,357)
Investment income - 5,500 5,889 389
Total revenues 260,500 286,160 199,425 (86,735)
Expenditures:
Current:
General government:
Personnel services 294,907 287,407 248,778 38,629
Supplies 26,450 26,650 21,415 5,235
Other services and charges 587,416 600,856 387,248 213,608
Capital outlay - 30,000 - 30,000
Total expenditures 908,773 944,913 657,441 287,472
Other financing sources (uses):
Transfers in 648,273 648,273 648,273 -
Transfers out - (27,500) (27,500) -
Net change in fund balances - (37,980) 162,757 200,737
Fund balances - beginning 379,148 379,148 379,148 -
Fund balances - ending 379,148$ 341,168$ 541,905$ 200,737$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 162,757$
To adjust revenues for accruals (8,806)
To adjust expenditures for accruals (181,038)
To adjust expenditures for encumbrances 180,746
Net change in fund balance, GAAP basis 153,659$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Unsafe Building
Year Ended December 31, 2018
160
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 140,000$ 140,000$ 124,980$ (15,020)$
Fines and forfeitures 106,000 106,886 78,353 (28,533)
Investment income 5,000 10,000 9,917 (83)
Other 20,500 32,394 18,146 (14,248)
Total revenues 271,500 289,280 231,396 (57,884)
Expenditures:
Current:
Public safety:
Supplies 275,500 359,091 173,990 185,101
Other services and charges 263,000 272,533 183,461 89,072
Total expenditures 538,500 631,624 357,451 274,173
Net change in fund balances (267,000) (342,344) (126,055) 216,289
Fund balances - beginning 573,049 573,049 573,049 -
Fund balances - ending 306,049$ 230,705$ 446,994$ 216,289$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (126,055)$
To adjust revenues for accruals (13,711)
To adjust expenditures for accruals (169,080)
To adjust expenditures for encumbrances 107,046
Net change in fund balance, GAAP basis (201,800)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Law Enforcement Continuing Education
Year Ended December 31, 2018
161
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Licenses and permits 4,000$ 4,000$ 310$ (3,690)$
Fines and forfeitures 2,000 2,000 - (2,000)
Investment income - 140 137 (3)
Total revenues 6,000 6,140 447 (5,693)
Expenditures:
Current:
General government:
Other services and charges 1,000 1,000 5 995
Total expenditures 1,000 1,000 5 995
Net change in fund balances 5,000 5,140 442 (4,698)
Fund balances - beginning 9,685 9,685 9,685 -
Fund balances - ending 14,685$ 14,825$ 10,127$ (4,698)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 442$
To adjust revenues for accruals 7
To adjust expenditures for accruals -
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis 449$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Landlord Registration
Year Ended December 31, 2018
162
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 4,000$ 12,500$ 12,871$ 371$
Total revenues 4,000 12,500 12,871 371
Expenditures:
Current:
General government:
Other services and charges 250,000 488,641 208,065 280,576
Capital outlay - 26,682 24,273 2,409
Total expenditures 250,000 515,323 232,338 282,985
Net change in fund balances (246,000) (502,823) (219,467) 283,356
Fund balances - beginning 847,926 847,926 847,926 -
Fund balances - ending 601,926$ 345,103$ 628,459$ 283,356$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (219,467)$
To adjust revenues for accruals 154
To adjust expenditures for accruals 86,702
To adjust expenditures for encumbrances 47,506
Net change in fund balance, GAAP basis (85,105)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Loss Recovery
Year Ended December 31, 2018
163
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 1,850,000$ 2,120,078$ 2,120,078$ -$
Investment income 18,000 68,000 70,031 2,031
Other - 412,635 412,635 -
Total revenues 1,868,000 2,600,713 2,602,744 2,031
Expenditures:
Current:
Highways and streets:
Supplies 670,000 670,364 555,400 114,964
Other services and charges 780,000 1,405,106 751,121 653,985
Capital outlay 600,000 1,058,538 418,854 639,684
Total expenditures 2,050,000 3,134,008 1,725,375 1,408,633
Other financing sources (uses):
Transfers out - (284,500) (284,500) -
Net change in fund balances (182,000) (817,795) 592,869 1,410,664
Fund balances - beginning 3,340,696 3,340,696 3,340,696 -
Fund balances - ending 3,158,696$ 2,522,901$ 3,933,565$ 1,410,664$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 592,869$
To adjust revenues for accruals (33,425)
To adjust expenditures for accruals (1,294,157)
To adjust expenditures for encumbrances 1,204,710
Net change in fund balance, GAAP basis 469,997$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Local Road and Street
Year Ended December 31, 2018
164
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 2,200,000$ 1,070,000$ 670,000$ (400,000)$
Investment income 40,000 40,000 37,969 (2,031)
Other - 185,735 185,734 (1)
Total revenues 2,240,000 1,295,735 893,703 (402,032)
Expenditures:
Current:
Highways and streets:
Other services and charges - 648,058 390,739 257,319
Capital outlay 2,950,000 1,519,291 939,155 580,136
Total expenditures 2,950,000 2,167,349 1,329,894 837,455
Other financing sources (uses):
Transfers in - 254,000 254,000 -
Transfers out - (1,340,000) (1,340,000) -
Net change in fund balances (710,000) (1,957,614) (1,522,191) 435,423
Fund balances - beginning 2,281,338 2,281,338 2,281,338 -
Fund balances - ending 1,571,338$ 323,724$ 759,147$ 435,423$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (1,522,191)$
To adjust revenues for accruals (274)
To adjust expenditures for accruals (856,175)
To adjust expenditures for encumbrances 836,263
Net change in fund balance, GAAP basis (1,542,377)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - LOIT 2016 Special Distribution
Year Ended December 31, 2018
165
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 145,000$ 145,000$ 74,580$ (70,420)$
Investment income 2,000 8,400 8,862 462
Other 20,400 25,440 23,303 (2,137)
Total revenues 167,400 178,840 106,745 (72,095)
Expenditures:
Current:
General government:
Personnel services 80,013 80,013 78,642 1,371
Supplies 2,000 2,000 1,772 228
Other services and charges 80,900 90,321 68,899 21,422
Total expenditures 162,913 172,334 149,313 23,021
Net change in fund balances 4,487 6,506 (42,568) (49,074)
Fund balances - beginning 503,002 503,002 503,002 -
Fund balances - ending 507,489$ 509,508$ 460,434$ (49,074)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (42,568)$
To adjust revenues for accruals 153
To adjust expenditures for accruals (1,507)
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis (43,922)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Human Rights Federal
Year Ended December 31, 2018
166
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ 5,500$ 6,282$ 782$
Total revenues - 5,500 6,282 782
Expenditures:
Current:
Highways and streets:
Other services and charges - 2,130,500 2,039,640 90,860
Total expenditures - 2,130,500 2,039,640 90,860
Other Financing Sources (Uses):
Transfers in - 1,370,500 1,370,500 -
Net change in fund balances - (754,500) (662,858) 91,642
Fund balances - beginning 992,943 992,943 992,943 -
Fund balances - ending 992,943$ 238,443$ 330,085$ 91,642$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (662,858)$
To adjust revenues for accruals 212
To adjust expenditures for accruals (27,798)
To adjust expenditures for encumbrances 83,291
Net change in fund balance, GAAP basis (607,153)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Local Road and Bridge Grant
Year Ended December 31, 2018
167
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 20,000$ 20,000$ 17,373$ (2,627)$
Investment income 400 1,020 1,025 5
Total revenues 20,400 21,020 18,398 (2,622)
Expenditures:
Current:
Culture and recreation:
Other services and charges 18,000 18,000 16,083 1,917
Total expenditures 18,000 18,000 16,083 1,917
Net change in fund balances 2,400 3,020 2,315 (705)
Fund balances - beginning 55,239 55,239 55,239 -
Fund balances - ending 57,639$ 58,259$ 57,554$ (705)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 2,315$
To adjust revenues for accruals 18
To adjust expenditures for accruals -
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis 2,333$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Morris and Palais Marketing
Year Ended December 31, 2018
168
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 99,000$ 130,000$ 100,932$ (29,068)$
Investment income 1,000 1,000 786 (214)
Total revenues 100,000 131,000 101,718 (29,282)
Expenditures:
Current:
Culture and recreation:
Other services and charges 50,000 50,000 - 50,000
Total expenditures 50,000 50,000 - 50,000
Net change in fund balances 50,000 81,000 101,718 20,718
Fund balances - beginning - - - -
Fund balances - ending 50,000$ 81,000$ 101,718$ 20,718$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 101,718$
To adjust revenues for accruals 54
To adjust expenditures for accruals -
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis 101,772$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Morris PAC Self-Promotion
Year Ended December 31, 2018
169
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 35$ 70$ 70$ -$
Net change in fund balances 35 70 70 -
Fund balances - beginning 3,927 3,927 3,927 -
Fund balances - ending 3,962$ 3,997$ 3,997$ -$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 70$
To adjust revenues for accruals 2
To adjust expenditures for accruals -
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis 72$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Police Block Grants
Year Ended December 31, 2018
170
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 200$ 259$ 259$ -$
Other financing sources (uses):
Transfers out - (28,126) (28,126) -
Net change in fund balances 200 (27,867) (27,867) -
Fund balances - beginning 27,910 27,910 27,910 -
Fund balances - ending 28,110$ 43$ 43$ -$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (27,867)$
To adjust revenues for accruals (9)
To adjust expenditures for accruals -
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis (27,876)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Economic Development Commission
Year Ended December 31, 2018
171
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 10,000$ 10,000$ -$ (10,000)$
Investment income 200 450 451 1
Total revenues 10,200 10,450 451 (9,999)
Expenditures:
Current:
Public safety:
Supplies 10,000 10,000 8,834 1,166
Net change in fund balances 200 450 (8,383) (8,833)
Fund balances - beginning 27,506 27,506 27,506 -
Fund balances - ending 27,706$ 27,956$ 19,123$ (8,833)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (8,383)$
To adjust revenues for accruals 3,278
To adjust expenditures for accruals (472)
To adjust expenditures for encumbrances 472
Net change in fund balance, GAAP basis (5,105)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Hazmat
Year Ended December 31, 2018
172
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 45,000$ 97,000$ 100,590$ 3,590$
Investment income 500 2,600 2,726 126
Total revenues 45,500 99,600 103,316 3,716
Expenditures:
Current:
Public safety:
Personnel services 15,500 15,500 3,000 12,500
Supplies 17,800 17,800 13,277 4,523
Other services and charges 68,500 68,500 34,264 34,236
Total expenditures 101,800 101,800 50,541 51,259
Other financing sources (uses):
Proceeds from sale of capital assets - 5,152 5,152 -
Net change in fund balances (56,300) 2,952 57,927 54,975
Fund balances - beginning 123,859 123,859 123,859 -
Fund balances - ending 67,559$ 126,811$ 181,786$ 54,975$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 57,927$
To adjust revenues for accruals 15,701
To adjust expenditures for accruals (13,706)
To adjust expenditures for encumbrances 7,520
Net change in fund balance, GAAP basis 67,442$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Indiana River Rescue
Year Ended December 31, 2018
173
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Expenditures:
Current:
Public safety:
Other services and charges -$ 21,735$ 21,735$ -$
Net change in fund balances - (21,735) (21,735) -
Fund balances - beginning 48,451 48,451 48,451 -
Fund balances - ending 48,451$ 26,716$ 26,716$ -$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (21,735)$
To adjust revenues for accruals -
To adjust expenditures for accruals -
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis (21,735)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - COPS Block Grant II
Year Ended December 31, 2018
174
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 20,000$ 25,000$ 21,192$ (3,808)$
Investment income 500 1,700 1,711 11
Other 2,000 2,000 - (2,000)
Total revenues 22,500 28,700 22,903 (5,797)
Expenditures:
Current:
Public safety:
Supplies 1,500 1,500 190 1,310
Other services and charges 21,000 21,000 11,399 9,601
Total expenditures 22,500 22,500 11,589 10,911
Net change in fund balances - 6,200 11,314 5,114
Fund balances - beginning 87,473 87,473 87,473 -
Fund balances - ending 87,473$ 93,673$ 98,787$ 5,114$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 11,314$
To adjust revenues for accruals 35
To adjust expenditures for accruals 3,222
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis 14,571$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Regional Police Academy
Year Ended December 31, 2018
175
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 53,750$ 184,819$ 101,310$ (83,509)$
Investment income 500 2,200 2,278 78
Other 37,750 39,750 26,778 (12,972)
Total revenues 92,000 226,769 130,366 (96,403)
Expenditures:
Current:
Public safety:
Supplies 47,000 67,785 19,215 48,570
Other services and charges 45,000 45,000 43,835 1,165
Total expenditures 92,000 112,785 63,050 49,735
Net change in fund balances - 113,984 67,316 (46,668)
Fund balances - beginning 135,365 135,365 135,365 -
Fund balances - ending 135,365$ 249,349$ 202,681$ (46,668)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 67,316$
To adjust revenues for accruals 4,084
To adjust expenditures for accruals (34,516)
To adjust expenditures for encumbrances 41,554
Net change in fund balance, GAAP basis 78,438$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - COPS MORE Grant
Year Ended December 31, 2018
176
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 50,000$ 50,000$ 6,201$ (43,799)$
Investment income 1,000 2,600 2,654 54
Other - 6,677 36,436 29,759
Total revenues 51,000 59,277 45,291 (13,986)
Expenditures:
Current:
Public safety:
Supplies 6,000 6,000 - 6,000
Capital outlay 45,000 45,000 22,100 22,900
Total expenditures 51,000 51,000 22,100 28,900
Net change in fund balances - 8,277 23,191 14,914
Fund balances - beginning 130,729 130,729 130,729 -
Fund balances - ending 130,729$ 139,006$ 153,920$ 14,914$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 23,191$
To adjust revenues for accruals 117
To adjust expenditures for accruals -
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis 23,308$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Federal Drug Enforcement
Year Ended December 31, 2018
177
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 800$ 2,400$ 2,481$ 81$
Other 25,000 110,650 108,750 (1,900)
Total revenues 25,800 113,050 111,231 (1,819)
Expenditures:
Current:
General government:
Supplies 2,500 5,000 322 4,678
Other services and charges 40,000 93,428 46,478 46,950
Total expenditures 42,500 98,428 46,800 51,628
Net change in fund balances (16,700) 14,622 64,431 49,809
Fund balances - beginning 100,898 100,898 100,898 -
Fund balances - ending 84,198$ 115,520$ 165,329$ 49,809$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 64,431$
To adjust revenues for accruals 116
To adjust expenditures for accruals (47,221)
To adjust expenditures for encumbrances 38,476
Net change in fund balance, GAAP basis 55,802$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Gift
Year Ended December 31, 2018
178
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 6,110$ 6,610$ 6,344$ (266)$
Other 132,618 37,508 37,508 -
Total revenues 138,728 44,118 43,852 (266)
Expenditures:
Current:
Economic development:
Other services and charges 610,131 486,081 486,081 -
Net change in fund balances (471,403) (441,963) (442,229) (266)
Fund balances - beginning 471,939 471,939 471,939 -
Fund balances - ending 536$ 29,976$ 29,710$ (266)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (442,229)$
To adjust revenues for accruals 221,488
To adjust expenditures for accruals 486,081
Net change in fund balance, GAAP basis 265,340$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Urban Development Action Grant
Year Ended December 31, 2018
179
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 439,680$ 439,680$ 447,240$ 7,560$
Investment income 6,120 13,579 14,198 619
Total revenues 445,800 453,259 461,438 8,179
Expenditures:
Current:
Highways and streets:
Personnel services 50,729 50,729 46,529 4,200
Supplies 4,344 4,344 1,184 3,160
Other services and charges 96,969 96,969 95,740 1,229
Total expenditures 152,042 152,042 143,453 8,589
Other financing sources (uses):
Transfers out (550,000) (550,000) (550,000) -
Net change in fund balances (256,242) (248,783) (232,015) 16,768
Fund balances - beginning 822,096 822,096 822,096 -
Fund balances - ending 565,854$ 573,313$ 590,081$ 16,768$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (232,015)$
To adjust revenues for accruals 132
To adjust expenditures for accruals (1,172)
Net change in fund balance, GAAP basis (233,055)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Leaf Collection and Removal
Year Ended December 31, 2018
180
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 20$ 50$ 51$ 1$
Other 2,000 2,000 - (2,000)
Total revenues 2,020 2,050 51 (1,999)
Expenditures:
Current:
Public safety:
Other services and charges 2,020 2,020 601 1,419
Net change in fund balances - 30 (550) (580)
Fund balances - beginning 2,889 2,889 2,889 -
Fund balances - ending 2,889$ 2,919$ 2,339$ (580)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (550)$
To adjust revenues for accruals 1
Net change in fund balance, GAAP basis (549)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Police K-9 Unit
Year Ended December 31, 2018
181
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 183,000$ 212,000$ 206,484$ (5,516)$
Other 27,000 30,750 28,037 (2,713)
Total revenues 210,000 242,750 234,521 (8,229)
Expenditures:
Current:
Economic Development:
Other services and charges 157,000 157,000 102,258 54,742
Net change in fund balances 53,000 85,750 132,263 46,513
Fund balances - beginning 2,917,106 2,917,106 2,917,106 -
Fund balances - ending 2,970,106$ 3,002,856$ 3,049,369$ 46,513$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 132,263$
Net change in fund balance, GAAP basis 132,263$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Special Revenue Funds - Industrial Revolving Fund
Year Ended December 31, 2018
182
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - property 1,213,617$ 426,604$ 426,604$ -$
Intergovernmental 45,000 45,000 28,705 (16,295)
Investment income - 141 114 (27)
Other - 274,768 248,724 (26,044)
Total revenues 1,258,617 746,513 704,147 (42,366)
Expenditures:
Current:
Debt service:
Other services and charges 1,258,617 632,315 631,315 1,000
Net change in fund balances - 114,198 72,832 (41,366)
Fund balances - beginning 27,305 27,305 27,305 -
Fund balances - ending 27,305$ 141,503$ 100,137$ (41,366)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 72,832$
To adjust revenues for accruals -
To adjust expenditures for accruals -
To adjust expenditures for encumbrances -
Net change in fund balance, GAAP basis 72,832$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Funds - College Football Hall of Fame Debt Service
Year Ended December 31, 2018
183
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 14,000$ 17,500$ 18,472$ 972$
Other financing sources (uses):
Transfers out (14,000) (16,000) (17,155) (1,155)
Net change in fund balances - 1,500 1,317 (183)
Fund balances - beginning 1,040,462 1,040,462 1,040,462 -
Fund balances - ending 1,040,462$ 1,041,962$ 1,041,779$ (183)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 1,317$
To adjust revenues for accruals 659
To adjust expenditures for accruals (659)
Net change in fund balance, GAAP basis 1,317$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Funds - Redevelopment Bond - Airport Taxable
Year Ended December 31, 2018
184
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 5,000$ 9,000$ 9,251$ 251$
Net change in fund balances 5,000 9,000 9,251 251
Fund balances - beginning 517,990 517,990 517,990 -
Fund balances - ending 522,990$ 526,990$ 527,241$ 251$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 9,251$
To adjust revenues for accruals 175
Net change in fund balance, GAAP basis 9,426$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Funds - Coveleski Bond Debt Service Reserve
Year Ended December 31, 2018
185
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 20,000$ 30,000$ 30,882$ 882$
Other financing sources (uses):
Transfers out (20,000) (30,000) (28,681) 1,319
Net change in fund balances - - 2,201 2,201
Fund balances - beginning 1,739,495 1,739,495 1,739,495 -
Fund balances - ending 1,739,495$ 1,739,495$ 1,741,696$ 2,201$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 2,201$
To adjust revenues for accruals 1,103
To adjust expenditures for accruals (1,102)
Net change in fund balance, GAAP basis 2,202$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Funds - Redevelopment Bond - Palais Royale
Year Ended December 31, 2018
186
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 1,000$ 10,400$ 10,314$ (86)$
Expenditures:
Current:
Debt service:
Other services and charges 2,636,025 2,636,025 2,636,875 (850)
Other financing sources (uses):
Transfers in 2,635,025 2,646,000 2,646,000 -
Net change in fund balances - 20,375 19,439 (936)
Fund balances - beginning 771,586 771,586 771,586 -
Fund balances - ending 771,586$ 791,961$ 791,025$ (936)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 19,439$
To adjust revenues for accruals (487,251)
To adjust expenditures for accruals 479,855
Net change in fund balance, GAAP basis 12,043$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Fund - South Bend Building Corporation
Year Ended December 31, 2018
187
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 2,500$ 4,600$ 4,588$ (12)$
Expenditures:
Current:
Debt service:
Other services and charges 1,709,794 1,710,444 1,710,444 -
Other Financing Sources (Uses):
Transfers in 1,714,000 1,714,000 1,714,000 -
Net change in fund balances 6,706 8,156 8,144 (12)
Fund balances - beginning 1,718,645 1,718,645 1,718,645 -
Fund balances - ending 1,725,351$ 1,726,801$ 1,726,789$ (12)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 8,144$
To adjust revenues for accruals 1
Net change in fund balance, GAAP basis 8,145$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Fund - Smart Street Debt Service
Year Ended December 31, 2018
188
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 800$ 2,800$ 2,787$ (13)$
Other - - 31,723 31,723
Total revenues 800 2,800 34,510 31,710
Expenditures:
Current:
Debt service:
Other services and charges 380,107 380,107 379,106 1,001
Other Financing Sources (Uses):
Transfers in 379,107 379,107 347,259 (31,848)
Net change in fund balances (200) 1,800 2,663 863
Fund balances - beginning 557,768 557,768 557,768 -
Fund balances - ending 557,568$ 559,568$ 560,431$ 863$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 2,663$
To adjust revenues for accruals (31,723)
Net change in fund balance, GAAP basis (29,060)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Fund - 2015 Parks Bond Debt Service
Year Ended December 31, 2018
189
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
221,437$ 221,437$ 221,437$ -$
50 70 36 (34)
Taxes - hotel/motel
Investment income
Other 109,462 110,049 110,049 -
Total revenues 330,949 331,556 331,522 (34)
Expenditures:
Current:
Debt service:
Other services and charges 306,737 306,737 305,736 1,001
Other financing sources (uses):
Transfers in 89,175 89,175 85,909 (3,266)
Net change in fund balances 113,387 113,994 111,695 (2,299)
Fund balances - beginning 58,882 58,882 58,882 -
Fund balances - ending 172,269$ 172,876$ 170,577$ (2,299)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 111,695$
To adjust revenues for accruals 75
Net change in fund balance, GAAP basis 111,770$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Funds - Century Center Energy Conservation Debt Service
Year Ended December 31, 2018
190
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 2,700$ 5,500$ 4,699$ (801)$
Expenditures:
Current:
Debt service:
Other services and charges 3,105,829 3,106,029 3,107,219 (1,190)
Other Financing Sources (Uses):
Transfers in 3,364,500 3,364,500 3,115,000 (249,500)
Transfers out (260,000) (324,221) (324,220) 1
Net change in fund balances 1,371 (60,250) (311,740) (251,490)
Fund balances - beginning 522,232 522,232 522,232 -
Fund balances - ending 523,603$ 461,982$ 210,492$ (251,490)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (311,740)$
Net change in fund balance, GAAP basis (311,740)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Fund - Redevelopment Authority Debt Service
Year Ended December 31, 2018
191
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ 6,500$ 6,428$ (72)$
Expenditures:
Current:
Debt service:
Other services and charges 1,279,472 3,779,472 1,278,472 2,501,000
Other Financing Sources (Uses):
Transfers in 1,279,472 1,279,472 2,223,472 944,000
Net change in fund balances - (2,493,500) 951,428 3,444,928
Fund balances - beginning 2,501,480 2,501,480 2,501,480 -
Fund balances - ending 2,501,480$ 7,980$ 3,452,908$ 3,444,928$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 951,428$
Net change in fund balance, GAAP basis 951,428$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Funds - Eddy St. Commons Debt Service
Year Ended December 31, 2018
192
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - property -$ 703,118$ 703,118$ -$
Intergovernmental - 37,106 37,107 1
Investment income - 763 722 (41)
Total revenues - 740,987 740,947 (40)
Expenditures:
Current:
Debt service:
Other services and charges - 595,304 593,304 2,000
Net change in fund balances - 145,683 147,643 (2,040)
Fund balances - beginning - - - -
Fund balances - ending -$ 145,683$ 147,643$ (2,040)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 147,643$
Net change in fund balance, GAAP basis 147,643$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Funds - 2017 Parks Bond Debt Service
Year Ended December 31, 2018
193
City of South Bend, Indiana
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Debt Service Funds - 2018 TIF Park Bonds Debt Service Reserve
Year Ended December 31, 2018
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
$ -$ 355$ 355$
Revenues:
Investment income
Other Financing Sources (Uses):
993,495 -
993,850 355
-- --
$ 993,495 -$ 993,850$ 355$
Debt proceeds
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Budget/GAAP reconciliation
993,850$ Net change in fund balance, budget basis
Net change in fund balance, GAAP basis $ 993,850
-
993,495
993,495
194
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 600,000$ 600,000$ -$ (600,000)$
Investment income 2,000 2,000 37 (1,963)
Other 18,000 18,000 7,431 (10,569)
Total revenues 620,000 620,000 7,468 (612,532)
Expenditures:
Current:
Debt service:
Other services and charges 814,870 814,870 814,870 -
Total expenditures 814,870 814,870 814,870 -
Other financing sources (uses):
Transfers in - 783,697 783,696 (1)
Net change in fund balances (194,870) 588,827 (23,706) (612,533)
Fund balances - beginning 23,743 23,743 23,743 -
Fund balances - ending (171,127)$ 612,570$ 37$ (612,533)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (23,706)$
Net change in fund balance, GAAP basis (23,706)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Professional Sports Development
Year Ended December 31, 2018
195
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 43,500$ 43,500$ 29,082$ (14,418)$
Investment income 750 1,000 1,054 54
Total revenues 44,250 44,500 30,136 (14,364)
Expenditures:
Current:
Culture and recreation:
Other services and charges 80,000 35,000 1,249 33,751
Capital outlay 65,000 55,000 10,000 45,000
Total expenditures 145,000 90,000 11,249 78,751
Net change in fund balances (100,750) (45,500) 18,887 64,387
Fund balances - beginning 54,612 54,612 54,612 -
Fund balances - ending (46,138)$ 9,112$ 73,499$ 64,387$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 18,887$
To adjust revenues for accruals 29
To adjust expenditures for accruals (64,622)
To adjust expenditures for encumbrances 64,622
Net change in fund balance, GAAP basis 18,916$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Coveleski Stadium Capital
Year Ended December 31, 2018
196
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 17,100$ 17,822$ 4,665$ (13,157)$
Investment income 1,500 1,500 1,200 (300)
Other 22,000 49,600 27,600 (22,000)
Total revenues 40,600 68,922 33,465 (35,457)
Expenditures:
Current:
Culture and recreation:
Supplies 51,000 86,372 36,361 50,011
Other services and charges 54,000 84,000 15,634 68,366
Capital outlay 76,000 107,500 31,500 76,000
Total expenditures 181,000 277,872 83,495 194,377
Other financing sources (uses):
Transfers in 80,000 80,000 - (80,000)
Transfers out - (130,000) (126,675) 3,325
Net change in fund balances (60,400) (258,950) (176,705) 82,245
Fund balances - beginning 176,978 176,978 176,978 -
Fund balances - ending 116,578$ (81,972)$ 273$ 82,245$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (176,705)$
To adjust revenues for accruals (38)
To adjust expenditures for accruals 38,640
Net change in fund balance, GAAP basis (138,103)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Park NonReverting Capital
Year Ended December 31, 2018
197
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - Property 419,000$ 436,677$ 436,677$ -$
Intergovernmental 37,100 38,374 38,373 (1)
Investment income 3,100 8,500 8,476 (24)
Total revenues 459,200 483,551 483,526 (25)
Expenditures:
Current:
General government:
Other services and charges 459,200 575,402 575,402 -
Net change in fund balances - (91,851) (91,876) (25)
Fund balances - beginning 622,016 622,016 622,016 -
Fund balances - ending 622,016$ 530,165$ 530,140$ (25)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (91,876)$
To adjust revenues for accruals 114
Net change in fund balance, GAAP basis (91,762)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Cumulative Capital Development
Year Ended December 31, 2018
198
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 250,500$ 236,379$ 236,379$ -$
Investment income 3,000 5,500 5,563 63
Other 25,000 25,000 25,000 -
Total revenues 278,500 266,879 266,942 63
Expenditures:
Current:
General government:
Other services and charges 250,500 1,000 - 1,000
Capital outlay 28,000 28,000 - 28,000
Total expenditures 278,500 29,000 - 29,000
Other financing sources (uses):
Transfers out - (249,500) (249,500) -
Net change in fund balances - (11,621) 17,442 29,063
Fund balances - beginning 430,948 430,948 430,948 -
Fund balances - ending 430,948$ 419,327$ 448,390$ 29,063$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 17,442$
To adjust revenues for accruals 127
Net change in fund balance, GAAP basis 17,569$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Cumulative Capital Improvement
Year Ended December 31, 2018
199
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 125,000$ 125,000$ 101,251$ (23,749)$
Investment income 4,000 7,200 7,145 (55)
Total revenues 129,000 132,200 108,396 (23,804)
Expenditures:
Current:
Culture and recreation:
Supplies 25,000 25,000 6,690 18,310
Other services and charges 27,500 81,400 63,882 17,518
Capital outlay 38,000 77,700 74,492 3,208
Total expenditures 90,500 184,100 145,064 39,036
Net change in fund balances 38,500 (51,900) (36,668) 15,232
Fund balances - beginning 416,215 416,215 416,215 -
Fund balances - ending 454,715$ 364,315$ 379,547$ 15,232$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (36,668)$
To adjust revenues for accruals 75
To adjust expenditures for accruals (9,588)
To adjust expenditures for encumbrances 8,462
Net change in fund balance, GAAP basis (37,719)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Morris Performing Arts Center Capital
Year Ended December 31, 2018
200
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 1,706$ 2,506$ 2,726$ 220$
Other 195,308 195,308 73,089 (122,219)
Total revenues 197,014 197,814 75,815 (121,999)
Expenditures:
Current:
Economic development:
Supplies 10,342 2,744 2,744 -
Other services and charges 147,824 109,116 109,114 2
Total expenditures 158,166 111,860 111,858 2
Other financing sources (uses):
Transfers out - (132,306) (132,306) -
Net change in fund balances 38,848 (46,352) (168,349) (121,997)
Fund balances - beginning 176,971 176,971 176,971 -
Fund balances - ending 215,819$ 130,619$ 8,622$ (121,997)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (168,349)$
To adjust revenues for accruals (10,420)
To adjust expenditures for accruals 8,114
Net change in fund balance, GAAP basis (170,655)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Redevelopment Retail Area (Leighton Plaza)
Year Ended December 31, 2018
201
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - property 420,000$ 332,220$ 332,220$ -$
Investment income 16,000 37,000 38,012 1,012
Total revenues 436,000 369,220 370,232 1,012
Expenditures:
Current:
Economic development:
Other services and charges - 835 148 687
Capital outlay 1,000,000 2,285,081 845,540 1,439,541
Total expenditures 1,000,000 2,285,916 845,688 1,440,228
Net change in fund balances (564,000) (1,916,696) (475,456) 1,441,240
Fund balances - beginning 2,279,940 2,279,940 2,279,940 -
Fund balances - ending 1,715,940$ 363,244$ 1,804,484$ 1,441,240$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (475,456)$
To adjust revenues for accruals 428
To adjust expenditures for accruals (764,314)
To adjust expenditures for encumbrances 795,130
Net change in fund balance, GAAP basis (444,212)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - TIF - West Washington
Year Ended December 31, 2018
202
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 135$ 2,135$ 2,799$ 664$
Other - 607,302 607,302 -
Total revenues 135 609,437 610,101 664
Expenditures:
Current:
Economic development:
Other services and charges 4,500 32,600 29,994 2,606
Total expenditures 4,500 32,600 29,994 2,606
Other financing sources (uses):
Transfers in - 28,126 28,126 -
Net change in fund balances (4,365) 604,963 608,233 3,270
Fund balances - beginning 7,403 7,403 7,403 -
Fund balances - ending 3,038$ 612,366$ 615,636$ 3,270$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 608,233$
To adjust revenues for accruals 388
Net change in fund balance, GAAP basis 608,621$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Redevelopment General
Year Ended December 31, 2018
203
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - property 2,400,000$ 2,166,637$ 2,166,637$ -$
Investment income 10,000 145,000 147,610 2,610
Other - 3,020 3,020 -
Total revenues 2,410,000 2,314,657 2,317,267 2,610
Expenditures:
Current:
Economic development:
Other services and charges - 744,694 242,352 502,342
Capital outlay 4,000,000 7,811,332 459,009 7,352,323
Total expenditures 4,000,000 8,556,026 701,361 7,854,665
Net change in fund balances (1,590,000) (6,241,369) 1,615,906 7,857,275
Fund balances - beginning 7,848,685 7,848,685 7,848,685 -
Fund balances - ending 6,258,685$ 1,607,316$ 9,464,591$ 7,857,275$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 1,615,906$
To adjust revenues for accruals 137,505
To adjust expenditures for accruals (1,214,893)
To adjust expenditures for encumbrances 803,618
Net change in fund balance, GAAP basis 1,342,136$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - TIF No. 1 - Southside Development
Year Ended December 31, 2018
204
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 5,000$ 7,500$ 7,687$ 187$
Expenditures:
Current:
General government:
Other services and charges 127,000 129,227 29,891 99,336
Net change in fund balances (122,000) (121,727) (22,204) 99,523
Fund balances - beginning 448,306 448,306 448,306 -
Fund balances - ending 326,306$ 326,579$ 426,102$ 99,523$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (22,204)$
To adjust revenues for accruals 21,455
To adjust expenditures for accruals 749
Net change in fund balance, GAAP basis -$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Football Hall of Fame Capital
Year Ended December 31, 2018
205
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 25,000$ 50,000$ 50,664$ 664$
Other 493,178 493,331 493,328 (3)
Total revenues 518,178 543,331 543,992 661
Expenditures:
Current:
Highways and streets:
Other services and charges 750,000 1,593,881 671,364 922,517
Capital outlay 1,300,000 979,918 7,090 972,828
Total expenditures 2,050,000 2,573,799 678,454 1,895,345
Net change in fund balances (1,531,822) (2,030,468) (134,462) 1,896,006
Fund balances - beginning 2,910,880 2,910,880 2,910,880 -
Fund balances - ending 1,379,058$ 880,412$ 2,776,418$ 1,896,006$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (134,462)$
To adjust revenues for accruals (375,548)
To adjust expenditures for accruals (796,665)
To adjust expenditures for encumbrances 771,236
Net change in fund balance, GAAP basis (535,439)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Major Moves
Year Ended December 31, 2018
206
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - property 2,300,000$ 3,062,820$ 3,062,820$ -$
Investment income 57,000 157,000 158,627 1,627
Other - 74,556 72,104 (2,452)
Total revenues 2,357,000 3,294,376 3,293,551 (825)
Expenditures:
Current:
Economic development:
Other services and charges - 417,537 347,984 69,553
Capital outlay 2,750,000 9,170,154 631,070 8,539,084
Total expenditures 2,750,000 9,587,691 979,054 8,608,637
Net change in fund balances (393,000) (6,293,315) 2,314,497 8,607,812
Fund balances - beginning 8,790,697 8,790,697 8,790,697 -
Fund balances - ending 8,397,697$ 2,497,382$ 11,105,194$ 8,607,812$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 2,314,497$
To adjust revenues for accruals 407
To adjust expenditures for accruals (4,607,139)
To adjust expenditures for encumbrances 5,101,982
Net change in fund balance, GAAP basis 2,809,747$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - TIF - River East Development
Year Ended December 31, 2018
207
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 350$ 3,150$ 3,477$ 327$
Expenditures:
Current:
Economic development:
Other services and charges 140,450 204,650 - 204,650
Net change in fund balances (140,100) (201,500) 3,477 204,977
Fund balances - beginning 201,109 201,109 201,109 -
Fund balances - ending 61,009$ (391)$ 204,586$ 204,977$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 3,477$
To adjust revenues for accruals 108
Net change in fund balance, GAAP basis 3,585$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - TIF - Douglas Road
Year Ended December 31, 2018
208
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Taxes - property 4,400,000$ 4,686,651$ 4,686,651$ -$
Investment income 2,500 9,250 4,559 (4,691)
Other - - 6 6
Total revenues 4,402,500 4,695,901 4,691,216 (4,685)
Expenditures:
Current:
Economic development:
Other services and charges 4,320,000 571,028 495,354 75,674
Total expenditures 4,320,000 571,028 495,354 75,674
Other Financing Sources (Uses):
Transfers in - 67 61 (6)
Transfers out - (4,693,972) (4,693,972) -
Net change in fund balances 82,500 (569,032) (498,049) 70,983
Fund balances - beginning 3,492,629 3,492,629 3,492,629 -
Fund balances - ending 3,575,129$ 2,923,597$ 2,994,580$ 70,983$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (498,049)$
To adjust revenues for accruals 1,605
To adjust expenditures for accruals 376,417
Net change in fund balance, GAAP basis (120,027)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - TIF - River East Residential
Year Ended December 31, 2018
209
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 2,500$ 10,000$ 10,966$ 966$
Net change in fund balances 2,500 10,000 10,966 966
Fund balances - beginning 614,013 614,013 614,013 -
Fund balances - ending 616,513$ 624,013$ 624,979$ 966$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 10,966$
To adjust revenues for accruals 207
Net change in fund balance, GAAP basis 11,173$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - TIF - Certified Technology Park
Year Ended December 31, 2018
210
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 600$ 2,100$ 2,107$ 7$
Other 16,500 17,160 17,661 501
Total revenues 17,100 19,260 19,768 508
Expenditures:
Current:
Culture and recreation:
Other services and charges 45,000 45,000 - 45,000
Net change in fund balances (27,900) (25,740) 19,768 45,508
Fund balances - beginning 109,771 109,771 109,771 -
Fund balances - ending 81,871$ 84,031$ 129,539$ 45,508$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 19,768$
To adjust revenues for accruals 1,915
To adjust expenditures for accruals (68,504)
To adjust expenditures for encumbrances 36,967
Net change in fund balance, GAAP basis (9,854)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Palais Royale Historical Preservation
Year Ended December 31, 2018
211
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 3,900$ 7,000$ 6,915$ (85)$
Expenditures:
Current:
Economic development:
Other services and charges 50,000 50,000 - 50,000
Net change in fund balances (46,100) (43,000) 6,915 49,915
Fund balances - beginning 387,224 387,224 387,224 -
Fund balances - ending 341,124$ 344,224$ 394,139$ 49,915$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 6,915$
To adjust revenues for accruals 131
Net change in fund balance, GAAP basis 7,046$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Airport Urban Enterprise Zone
Year Ended December 31, 2018
212
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 3,000$ 31,000$ 31,472$ 472$
Expenditures:
Current:
General government:
Other services and charges - 222,125 217,625 4,500
Capital outlay 4,604,750 9,681,480 6,990,658 2,690,822
Total expenditures 4,604,750 9,903,605 7,208,283 2,695,322
Other Financing Sources (Uses):
Debt proceeds 4,601,750 10,717,184 6,638,312 (4,078,872)
Transfers in - 101,776 101,776 -
Transfers out - (219,861) (219,861) -
Net change in fund balances - 726,494 (656,584) (1,383,078)
Fund balances - beginning 3,598,717 3,598,717 3,598,717 -
Fund balances - ending 3,598,717$ 4,325,211$ 2,942,133$ (1,383,078)$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (656,584)$
To adjust revenues for accruals (3,609,981)
To adjust expenditures for accruals 2,424,274
To adjust expenditures for encumbrances 998,124
Net change in fund balance, GAAP basis (844,167)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Vehicle Equipment Leasing
Year Ended December 31, 2018
213
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 1,500$ 1,500$ 1,060$ (440)$
Expenditures:
Current:
Debt service:
Other services and charges 1,500 1,500 - 1,500
Capital outlay 2,100,000 2,100,000 972,373 1,127,627
Total expenditures 2,101,500 2,101,500 972,373 1,129,127
Net change in fund balances (2,100,000) (2,100,000) (971,313) 1,128,687
Fund balances - beginning 1,040,156 1,040,156 1,040,156 -
Fund balances - ending (1,059,844)$ (1,059,844)$ 68,843$ 1,128,687$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (971,313)$
Net change in fund balance, GAAP basis (971,313)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Smart Streets Bond Capital
Year Ended December 31, 2018
214
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 4,500$ 4,900$ 4,813$ (87)$
Expenditures:
Current:
Culture and recreation:
Supplies - 59,000 43,656 15,344
Other services and charges - 322,374 291,724 30,650
Capital outlay 3,004,500 2,754,867 2,468,681 286,186
Total expenditures 3,004,500 3,136,241 2,804,061 332,180
Other financing sources (uses):
Transfers out - (289) (288) 1
Net change in fund balances (3,000,000) (3,131,630) (2,799,536) 332,094
Fund balances - beginning 3,271,224 3,271,224 3,271,224 -
Fund balances - ending 271,224$ 139,594$ 471,688$ 332,094$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (2,799,536)$
To adjust expenditures for accruals 708,756
To adjust expenditures for encumbrances 58,687
Net change in fund balance, GAAP basis (2,032,093)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - 2015 Park Bond Capital
Year Ended December 31, 2018
215
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 3,000$ 180,000$ 186,252$ 6,252$
Expenditures:
Current:
Culture and recreation:
Other services and charges - 148,047 147,642 405
Capital outlay 10,309,100 10,161,053 955,451 9,205,602
Total expenditures 10,309,100 10,309,100 1,103,093 9,206,007
Net change in fund balances (10,306,100) (10,129,100) (916,841) 9,212,259
Fund balances - beginning 13,888,958 13,888,958 13,888,958 -
Fund balances - ending 3,582,858$ 3,759,858$ 12,972,117$ 9,212,259$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (916,841)$
To adjust revenues for accruals 8,351
To adjust expenditures for accruals (3,237,301)
To adjust expenditures for encumbrances 2,727,666
Net change in fund balance, GAAP basis (1,418,125)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - 2017 Park Bond Capital
Year Ended December 31, 2018
216
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income 2,000$ 135$ 121$ (14)$
Total revenues 2,000 135 121 (14)
Expenditures:
Current:
Economic development:
Other services and charges - 1,500 1,500 -
Capital outlay 17,000,000 16,127,865 8,477,690 7,650,175
Total expenditures 17,000,000 16,129,365 8,479,190 7,650,175
Net change in fund balances (16,998,000) (16,129,230) (8,479,069) 7,650,161
Fund balances - beginning 16,129,314 16,129,314 16,129,314 -
Fund balances - ending (868,686)$ 84$ 7,650,245$ 7,650,161$
Budget/GAAP reconciliation
Net change in fund balance, budget basis (8,479,069)$
To adjust expenditures for accruals (7,650,242)
To adjust expenditures for encumbrances 7,650,241
Net change in fund balance, GAAP basis (8,479,070)$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - Eddy St. Commons Capital
Year Ended December 31, 2018
217
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ 50,000$ 55,108$ 5,108$
Expenditures:
Current:
Public safety:
Other services and charges - 138,575 138,575 -
Capital outlay - 4,906,425 1,420,290 3,486,135
Total expenditures - 5,045,000 1,558,865 3,486,135
Other Financing Sources (Uses):
Debt proceeds - 5,005,758 5,005,758 -
Net change in fund balances - 10,758 3,502,001 3,491,243
Fund balances - beginning - - - -
Fund balances - ending -$ 10,758$ 3,502,001$ 3,491,243$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 3,502,001$
To adjust revenues for accruals 78,775
To adjust expenditures for accruals (3,879,168)
To adjust expenditures for encumbrances 3,232,757
Net change in fund balance, GAAP basis 2,934,365$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - 2018 Fire Station #9 Bond Capital
Year Ended December 31, 2018
218
City of South Bend, Indiana
Variance
Actual With Final
Budgetary Budget
Budgeted Amounts Basis Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ -$ (2,882)$ (2,882)$
Expenditures:
Current:
Culture and recreation:
Other services and charges - 1,530,410 355,337 1,175,073
Capital outlay - 9,402,372 223,104 9,179,268
Total expenditures - 10,932,782 578,441 10,354,341
Other Financing Sources (Uses):
Debt proceeds - 11,007,782 11,007,782 -
Net change in fund balances - 75,000 10,426,459 10,351,459
Fund balances - beginning - - - -
Fund balances - ending -$ 75,000$ 10,426,459$ 10,351,459$
Budget/GAAP reconciliation
Net change in fund balance, budget basis 10,426,459$
To adjust revenues for accruals 96,515
To adjust expenditures for accruals (3,514,437)
To adjust expenditures for encumbrances 3,158,734
Net change in fund balance, GAAP basis 10,167,271$
Other Supplemental Information
Budgetary Comparison Schedule - Nonmajor Governmental Funds
(Continued)
Capital Projects Funds - 2018 TIF Park Bond Capital
Year Ended December 31, 2018
219
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Enterprise Funds
Fund Descriptions
Nonmajor Enterprise Funds Descriptions
Consolidated Building
The consolidated building fund accounts for the operation of the consolidated St. Joseph
County/South Bend Building Department and the South Bend Code Enforcement and Animal
Care and Control Department.
Parking Garage
The parking garage fund accounts for the operation and maintenance of the City's parking
garages.
Solid Waste
The solid waste fund accounts for the provision of solid waste services to residents and
businesses.
Emergency Medical Services
To account for the operations and purchases of necessary equipment for the Fire Department
and Emergency Medical Services Department. Financing is provided by ambulance fees.
220
Emergency
Consolidated Medical
Building Parking Garage Solid Waste Services Total
Assets
Current assets:
Cash and cash equivalents 699,233$ 443,213$ 175,677$ 1,370,306$ 2,688,429$
Investments 1,392,649 882,739 349,893 2,729,213 5,354,494
Receivables:
Accounts 5,850 44,085 394,012 1,431,149 1,875,096
Interest 5,894 3,699 1,577 17,823 28,993
Allowance for doubtful accounts - - (25,000) - (25,000)
Prepaid expenses - -- 8,859 8,859
Total current assets 2,103,626 1,373,736 896,159 5,557,350 9,930,871
Noncurrent assets:
Restricted assets 107,827 - 176,983 2,576,373 2,861,183
Capital assets:
Assets not subject to depreciation 27,400 1,132,020 - - 1,159,420
Assets subject to depreciation 1,900,216 2,882,109 3,846,097 4,263,727 12,892,149
Total noncurrent assets 2,035,443 4,014,129 4,023,080 6,840,100 16,912,752
Total assets 4,139,069 5,387,865 4,919,239 12,397,450 26,843,623
Liabilities
Current liabilities:
Accounts payable 10,695 182,347 66,105 82,033 341,180
Due to other governmental units - - - 8,588 8,588
Due to other funds 706 683 - 1,563 2,952
Performance deposits payable 8,250 - - - 8,250
Accrued liabilities and other:
Accrued payroll payable 54,357 - 32,630 109,314 196,301
Accrued interest payable 2,681 - 16,365 74,189 93,235
Other current payables - 44,147 - - 44,147
Compensated absences 103,152 - 32,705 199,055 334,912
Mortgage bonds payable - - - 235,000 235,000
Capital leases 118,679 - 901,146 434,910 1,454,735
Revenue bonds payable - -- --
Total current liabilities 298,520 227,177 1,048,951 1,144,652 2,719,300
Mortgage bonds payable - - - 4,521,868 4,521,868
Capital leases 306,880 - 2,094,098 1,271,825 3,672,803
Total noncurrent liabilities 306,880 - 2,094,098 5,793,693 8,194,671
Total liabilities 605,400 227,177 3,143,049 6,938,345 10,913,971
Net Position
Net investment in capital assets 1,609,562 4,014,129 983,341 (1,706,507) 4,900,525
Restricted:
Cash with fiscal agent 322 - - 126,436 126,758
Capital outlay fund - - 44,495 1,956,568 2,001,063
Unrestricted 1,923,785 1,146,559 748,354 5,082,608 8,901,306
Total net position 3,533,669$ 5,160,688$ 1,776,190$ 5,459,105$ 15,929,652$
City of South Bend, Indiana
Combining Statement of Net Position
Nonmajor Enterprise Funds
December 31, 2018
221
Emergency
Consolidated Parking Solid Medical
Building Garage Waste Services Total
Operating Revenue
Licenses and permits 1,978,856$ -$ -$ -$ 1,978,856$
Parking fees - 1,289,639 - - 1,289,639
Solid waste fees - - 5,408,816 - 5,408,816
Charges for sales and services - -- 6,702,767 6,702,767
Other 65,726 33,885 62,548 24,876 187,035
Total operating revenue 2,044,582 1,323,524 5,471,364 6,727,643 15,567,113
Operating Expenses
Other operation and maintenance 3,201,229 1,320,728 3,832,281 7,231,819 15,586,057
General and administration 743,480 32,880 735,573 - 1,511,933
Depreciation 183,236 211,743 774,998 494,269 1,664,246
Total operating expenses 4,127,945 1,565,351 5,342,852 7,726,088 18,762,236
Operating Income (Loss)(2,083,363) (241,827) 128,512 (998,445) (3,195,123)
Nonoperating Revenue (Expenses)
Investment income 47,883 23,497 11,678 133,136 216,194
Interest expense (8,892) - (57,335) (196,599) (262,826)
(Loss) gain on sale of assets - -(67,799) (1,064,653) (1,132,452)
Total nonoperating revenues (expenses)38,991 23,497 (113,456) (1,128,116) (1,179,084)
Income (Loss) - Before contributions and transfers (2,044,372) (218,330) 15,056 (2,126,561) (4,374,207)
Transfers In 1,044,032 - - 25,425 1,069,457
Transfers Out - -(26,979) (221,939) (248,918)
Change in Net Position (1,000,340) (218,330) (11,923) (2,323,075) (3,553,668)
Net Position - Beginning of year (as restated)4,534,009 5,379,018 1,788,113 7,782,180 19,483,320
Net Position - End of year 3,533,669$ 5,160,688$ 1,776,190$ 5,459,105$ 15,929,652$
City of South Bend, Indiana
Combining Statement of Revenue, Expenses, and Changes in Net Position
Nonmajor Enterprise Funds
December 31, 2018
222
City of South Bend, Indiana
Emergency
Consolidated Parking Medical
Building Garage Solid Waste Services Total
Cash Flows from Operating Activities:
Receipts from customers and users 2,062,773$ 1,291,525$ 5,532,844$ 7,960,225$ 16,847,367$
Payments to suppliers (524,847) (1,164,287) (2,148,619) (1,928,144) (5,765,897)
Payments to employees (2,647,232) - (1,570,069) (5,081,953) (9,299,254)
Internal activity - Payments to other funds (805,320) (44,829) (851,115) (229,257) (1,930,521)
Net cash provided by (used in)
operating activities (1,914,626) 82,409 963,041 720,871 (148,305)
Cash Flows from Noncapital Financing Activities:
Transfers from other funds 1,017,053 - - 25,425 1,042,478
Transfers to other funds - - - (221,939) (221,939)
Net cash (used in) provided by
noncapital financing activities 1,017,053 - -(196,514) 820,539
Cash Flows from Capital and Related Financing
Activities:
Proceeds from capital debt issued for future
capital purchase 122,720 - 1,192,960 1,550,535 2,866,215
Proceeds from sales of capital assets - - 26,312 - 26,312
Purchase of capital assets (219,508) - (1,432,467) (1,064,653) (2,716,628)
Principal paid on capital debt (106,926) - (937,717) (511,941) (1,556,584)
Interest paid on capital debt (10,756) - (64,275) (200,169) (275,200)
Net cash (used in) provided by
capital and related financing activities (214,470) - (1,215,187) (226,228) (1,655,885)
Cash Flows from Investing Activities:
Interest received on investments 47,974 22,134 11,190 127,019 208,317
Proceeds from sale and maturities of investment
securities 831,988 (15,673) 26,616 323,054 1,165,985
Net cash provided by (used in)
investing activities 879,962 6,461 37,806 450,073 1,374,302
Net (Decrease) Increase in Cash and Cash
Equivalents (232,081) 88,870 (214,340) 748,202 390,651
Cash and Cash Equivalents - Beginning of year 1,039,141 354,343 537,378 1,895,912 3,826,774
Cash and Cash Equivalents - End of year 807,060$ 443,213$ 323,038$ 2,644,114$ 4,217,425$
Non-Major Enterprise Funds
Combining Statement of Cash Flows
Year Ended December 31, 2018
223
City of South Bend, Indiana
Emergency
Consolidated Parking Medical
Building Garage Solid Waste Services Total
Statement of Net Position Classification of Cash
and Cash Equivalents
Cash and investments 2,091,882$ 1,325,952$ 525,570$ 4,099,519$ 8,042,923$
Restricted cash and investments 107,827 - 176,983 2,576,373 2,861,183
Less amounts classified as investments (1,392,649) (882,739) (379,515) (4,031,778) (6,686,681)
Total cash and cash equivalents 807,060$ 443,213$ 323,038$ 2,644,114$ 4,217,425$
Reconciliation of Operating Income (Loss) to Net
Cash from Operating Activities
Operating income (loss) (2,083,363) (241,827) 128,512 (998,445) (3,195,123)
Adjustments to reconcile operating income (loss)
to net cash from operating activities:
Depreciation and amortization 183,236 211,743 774,998 494,269 1,664,246
Lease proceeds used for noncapital expenses - - - - -
Changes in assets and liabilities:
Receivables 18,191 (44,955) 61,480 1,232,582 1,267,298
Allowance for uncollectable accounts - - - - -
Due from other funds - - - - -
Inventory - - - - -
Prepaid expenses and other assets 3,250 - - 17,775 21,025
Accounts payable (22,897) 144,536 814 (176,510) (54,057)
Due to other governments - - - (66,705) (66,705)
Performance deposit (3,750) - - - (3,750)
Due to other funds (686) (44) - 182 (548)
Accrued liabilities and other - 12,956 - -12,956
Accrued payroll payable 10,606 - 1,779 23,837 36,222
Compensated absences payable (19,213) - (4,542) 193,886 170,131
Estimate of unfiled claims - - - --
Net cash provided by (used in)
operating activities (1,914,626)$ 82,409$ 963,041$ 720,871$ (148,305)$
Noncash Investing, Capital, and Financing Activities
Capital assets disposed (at cost)(119,635)$ $ -$ (484,584) $ (1,064,653) $ (1,668,872)
Capital assets transferred from/to another enterprise fund (cost 46,250 - (46,250)-
Accumulated depreciation on disposals of capital -
assets 119,635 - 510,108
Accumulated depreciation on transfers of capital assets (19,271)
- 390,473
- 19,271 -
Year Ended December 31, 2018
Non-Major Enterprise Funds
Combining Statement of Cash Flows (Continued)
-
-
224
City of South Bend, Indiana
Other Supplemental Information
Internal Service Funds
Fund Descriptions
Internal Service Funds Descriptions
Liability Insurance Premium Reserve
The Liability Insurance Premium Reserve fund accounts 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 Service
To account for expenses related to fuel, vehicle repairs, and various supplies provided to City
departments on a cost-reimbursement basis.
Police Take Home Vehicle
To account for expenses associated with claims arising from use of program vehicles occurring
while officers are not on duty. Funding is provided by officers participating in the program.
Innovation & Technology/311 Call Center
To account for expenses of the City’s innovation and technology department. Funding is
provided by allocations and fees from various City departments.
Unemployment Compensation Insurance
To account for payment of unemployment claims to the Indiana Department of Workforce
Development. Financing is provided by allocating costs to user departments to cover the
estimated costs of claims.
Parental Leave
To account for expenses related to the City’s Parental Leave Program which provides additional
paid time off for employees for the child or adoption of a child. Financing is provided by allocating
costs to user departments to cover the estimated costs of the program.
225
LiabilityInnovation &Insurance Self-FundedTechnology UnemploymentPremium Employee Central Police Take 311 Call Compensation ParentalReserveBenefitsServicesHome VehicleCenterInsuranceLeaveTotalAssetsCurrent assets:Cash and cash equivalents 1,235,686$ 4,033,610$ 391,626$ 250,319$ 921,989$ 69,698$ 17,089$ 6,920,017$ Investments 2,461,092 7,963,517 779,995 498,557 1,836,308 138,816 34,037 13,712,322 Receivables:Accounts13,550 16,123 60,484 - 13,937 - - 104,094 Interest10,383 33,737 3,044 2,094 7,798 583 143 57,782 Inventory- - 870,617 - - - - 870,617 Prepaid expenses212,645 - 3,976 - 623,209 - -839,830 Total current assets3,933,356 12,046,987 2,109,742 750,970 3,403,241 209,097 51,269 22,504,662 Noncurrent assets:Restricted assets - - - - 457,020 - 457,020 Capital assets:Assets subject to depreciation- -1,284,827 - 1,100 - -1,285,927 Total noncurrent assets- -1,284,827 - 458,120 - -1,742,947 Total assets3,933,356 12,046,987 3,394,569 750,970 3,861,361 209,097 51,269 24,247,609 LiabilitiesCurrent liabilities:Accounts payable 112,880 18,963 709,800 - 130,211 2,400 - 974,254 Due to other funds- - 1,215 - -- - 1,215 Accrued liabilities and other:Accrued payroll payable4,498 - 53,593 - 44,364 - - 102,455 Accrued interest payable- - 117 - 3,579 - - 3,696 Compensated absences11,294 - 123,935 - 98,841 - - 234,070 Claims payable2,139,626 919,015 - - - - - 3,058,641 Capital leases- -14,208 - 321,898 - -336,106 Total current liabilities2,268,298 937,978 902,868 - 598,893 2,400 - 4,710,437 Noncurrent liabilities:Capital leases - - 18,078 - 958,285 - - 976,363 Total noncurrent liabilities- -18,078 - 958,285 - -976,363 Total liabilities2,268,298 937,978 920,946 - 1,557,178 2,400 - 5,686,800 Net PositionNet investment in capital assets - - 1,252,541 - - - - 1,252,541 Unrestricted1,665,058 11,109,009 1,221,082 750,970 2,304,183 206,697 51,269 17,308,268 Total net position1,665,058$ 11,109,009$ 2,473,623$ 750,970$ 2,304,183$ 206,697$ 51,269$ 18,560,809$ City of South Bend, IndianaCombining Statement of Net PositionInternal Service FundsDecember 31, 2018226
LiabilityInnovation &Insurance Self-FundedTechnology UnemploymentPremium Employee Central Police Take 311 Call Compensation Parental ReserveBenefitsServicesHome VehicleCenterInsuranceLeaveTotalOperating RevenueEmployee/Employer contributions 2,058,152$ 18,079,648$ -$ 3,507$ 6,769,786$ -$ 163,651$ 27,074,744$ Charges for sales and services- - 8,201,435 - - - - 8,201,435 Other687,727 440,913 21,663- 161,365- -1,311,668 Total operating revenue 2,745,879 18,520,561 8,223,098 3,507 6,931,151 - 163,651 36,587,847 Operating ExpensesOther operation and maintenance - 1,163,785 8,009,579 18,198 5,954,525 22,316 112,882 15,281,285 General and administration473,232 - 377,290 - - - - 850,522 Insurance claims and premiums4,202,916 15,034,098 - - - - - 19,237,014 Depreciation1,869- 126,693- 3,261- -131,823 Total operating expenses 4,678,017 16,197,883 8,513,562 18,198 5,957,786 22,316 112,882 35,500,644 Operating Income (Loss)(1,932,138) 2,322,678 (290,464) (14,691) 973,365 (22,316) 50,769 1,087,203 Nonoperating Revenue (Expenses)Investment income 71,292 214,184 13,637 13,667 39,493 3,879 500 356,652 Interest expense- - (1,849) - (30,228) - - (32,077) (Loss) gain on sale of assets- -1,480- (1,485) - - (5) Total nonoperating revenues (expenses) 71,292 214,184 13,268 13,667 7,780 3,879 500 324,570 Income (Loss) - Before contributions and transfers (1,860,846) 2,536,862 (277,196) (1,024) 981,145 (18,437) 51,269 1,411,773 Transfers Out(25,425) (413,714) - -- -- (439,139) Change in Net Position (1,886,271) 2,123,148 (277,196) (1,024) 981,145 (18,437) 51,269 972,634 Net Position - Beginning of year 3,551,329 8,985,861 2,750,819 751,994 1,323,038 225,134 - 17,588,175 Net Position - End of year1,665,058$ 11,109,009$ 2,473,623$ 750,970$ 2,304,183$ 206,697$ 51,269$ 18,560,809$ City of South Bend, IndianaCombining Statement of Revenue, Expenses, and Changes in Net PositionInternal Service FundsDecember 31, 2018227
City of South Bend, IndianaLiabilityInnovation/Insurance Self-FundedTechnology/ UnemploymentPremium Employee Central Police Take 311 Call Compensation Parental ReserveBenefitsServicesHome VehicleCenterInsuranceLeaveTotalCash Flows from Operating ActivitiesReceipts from customers and users 687,727$ 3,822,678$ 16,055$ 3,507$ -$ -$ -$ 4,529,967$ Receipts from interfund services and reimbursements 2,068,956 14,686,228 8,201,853 - 6,936,412 - 163,651 32,057,100 Payments to suppliers(3,379,820) (16,202,343) (4,902,718) - (4,054,286) (20,481) - (28,559,648) Payments to employees(273,486) - (2,992,569) - (2,183,756) - (112,882) (5,562,693) Internal activity - Payments to other funds(111,076) - (419,165) (18,198) (4,019) - -(552,458) Net cash provided by (used in)operating activities (1,007,699) 2,306,563 (96,544) (14,691) 694,351 (20,481) 50,769 1,912,268 Cash Flows from Noncapital Financing ActivitiesTransfers to other funds (25,425) (413,714) - -- -- (439,139) Net cash (used in) provided bynoncapital financing activities (25,425) (413,714) - -- -- (439,139) Cash Flows from Capital and Related FinancingActivitiesProceeds from capital debt issued for futurecapital purchase - - - - 1,138,025 - - 1,138,025 Proceeds from sales of capital assets- - 3,266 - - - - 3,266 Purchase of capital assets- - (8,905) - - - - (8,905) Principal paid on capital debt- - (13,273) - (210,285) - - (223,558) Interest paid on capital debt- -(1,899) - (27,552) - -(29,451) Net cash (used in) provided by capitaland related financing activities - -(20,811) - 900,188 - -879,377 Cash Flows from Investing ActivitiesInterest received on investments 69,840 199,400 12,898 13,004 31,695 3,726 357 330,920 Proceeds from sale and maturities of investmentsecurities847,039 (951,980) 125,880 34,260 (1,836,308) 21,100 (34,037) (1,794,046) Net cash provided by (used in)investing activities 916,879 (752,580) 138,778 47,264 (1,804,613) 24,826 (33,680) (1,463,126) Net (Decrease) Increase in Cash and CashEquivalents(116,245) 1,140,269 21,423 32,573 (210,074) 4,345 17,089 889,380 Cash and Cash Equivalents - Beginning of year1,351,931 2,893,341 370,203 217,746 1,589,083 65,353 - 6,487,657 Cash and Cash Equivalents - End of year1,235,686$ 4,033,610$ 391,626$ 250,319$ 1,379,009$ 69,698$ 17,089$ 7,377,037$ Internal Service Funds Combining Statement of Cash FlowsYear Ended December 31, 2018228
City of South Bend, IndianaStatement of Net Position Classification of Cashand Cash EquivalentsCash and investments3,696,778$ 11,997,127$ 1,171,621$ 748,876$ 2,758,297$ 208,514$ 51,126$ 20,632,339$ Restricted cash and investments- - - - 457,020 - - 457,020 Less amounts classified as investments(2,461,092) (7,963,517) (779,995) (498,557) (1,836,308) (138,816) (34,037) (13,712,322) Total cash and cash equivalents1,235,686$ 4,033,610$ 391,626$ 250,319$ 1,379,009$ 69,698$ 17,089$ 7,377,037$ Reconciliation of Operating Income (Loss) to NetCash from Operating ActivitiesOperating income (loss)(1,932,138)$ 2,322,678$ (290,464)$ (14,691)$ 973,365$ (22,316)$ 50,769$ 1,087,203$ Adjustments to reconcile operating income (loss)to net cash from operating activities:Depreciation and amortization1,869 - 126,693 - 3,261 - - 131,823 Changes in assets and liabilities:Receivables10,804 (11,655) (5,608) - 2,502 - - (3,957) Due from other funds- - 418 - 2,760 - - 3,178 Inventory- - 21,549 - -- - 21,549 Prepaid expenses and other assets(19,633) - 3,762 - (312,573) - - (328,444) Accounts payable(30,293) 12,033 61,017 - 34,038 1,835 - 78,630 Due to other funds- (1,288) 65 - -- - (1,223) Accrued payroll payable228 - 559 - 12,267 - - 13,054 Compensated absences payable(2,621) - (14,535) - (21,269) - - (38,425) Estimate of unfiled claims964,085 (15,205) - -- -- 948,880 Net cash provided by (used in)operating activities(1,007,699)$ 2,306,563$ (96,544)$ (14,691)$ 694,351$ (20,481)$ 50,769$ 1,912,268$ Noncash Investing, Capital, and Financing ActivitiesCapital assets disposed (at cost)-$ -$ (46,408)$ -$ (172,957)$ -$ -$ (219,365)$ Accumulated depreciation on disposals of capitalassets- - 44,622 - 171,471 - - 216,093 Internal Service Funds Combining Statement of Cash FlowsYear Ended December 31, 2018LiabilityInsurance Self-FundedInnovation/Technology/ UnemploymentPremium Employee Central Police Take 311 Call Compensation Parental ReserveBenefitsServicesHome VehicleCenterInsuranceLeaveTotal229
City of South Bend, Indiana
Other Supplemental Information
Fiduciary Funds
Fund Descriptions
Fiduciary Funds Descriptions
Pension Trust Funds
1925 Police Pension
To account for the provision of retirement and disability benefits to police officers hired prior to
May 1, 1977. Financing is provided by mandatory contributions by active members and state
pension relief distributions.
1937 Firefighters' Pension
To account for the provision of retirement and disability benefits to firefighters hired prior to May
1, 1977. Financing is provided by mandatory contributions by active members and state pension
relief distributions.
Private Purpose Trust Funds
City Cemetery Trust
To account for cemetery maintenance under a trust arrangement financed by principal and
income.
Bowman Cemetery Trust
To account for the expenditures the City incurs in maintaining the Bowman Cemetery.
Agency Funds
Payroll
To account for the payroll of City employees and pension benefits of the Police and Firefighters'
Pension Funds. Gross payroll and pension benefits are treated as expenditures in other City
funds and transferred into this fund, which serves as a clearing account.
Morris Palais Royale Box Office
To account for Morris Performing Arts Center and Palais Royale event advance deposits and
related expenses.
Police Distributions Payable
To account for monies collected by the South Bend Police Department from asset seizures and
other sources. Proceeds may be used to pay other governmental agencies for monies collected
on their behalf or for related expenses.
230
1937Total Morris Palais Police1925 Police Firefighters' Pension City BowmanRoyale Box Distribution Total AgencyPensionPensionTrust FundsCemetery TrustCemeteryTotalPayrollOfficePayableFundsAssetsCash and cash equivalents 316,056$ 105,320$ 421,376$ 9,666$ 152,051$ 161,717$ 324,526$ 2,226,914$ 838,526$ 3,389,966$ Investments629,484 209,764 839,248 19,251 302,837 322,088 - - - - Receivables - Accounts893 - 893 - - - - - - - Receivables - Interest2,928 1,085 4,013 81 1,272 1,353 - -- - Total assets 949,361 316,169 1,265,530 28,998 456,160 485,158 324,526 2,226,914 838,526 3,389,966 LiabilitiesAccounts payable 176 245 421 - - - - - - - Accrued liabilities and other- 372 372 - - - 324,526 - - 324,526 Customer deposits payable- - - - - - - 2,226,914 - 2,226,914 Police distribution payable- -- -- -- -838,526 838,526 Total liabilities176 617 793 - - - 324,526$ 2,226,914$ 838,526$ 3,389,966$ Net Position for Pension Benefits and OtherPurposes949,185$ 315,552$ 1,264,737$ 28,998$ 456,160$ 485,158$ City of South Bend, IndianaAgency FundsPension Trust FundsPrivate Purpose Trust FundsStatement of Fiduciary Net PositionFiduciary FundsDecember 31, 2018231
1925 Police 1937 Firefighters'CityBowmanPensionPensionTotal Cemetery TrustCemeteryTotalAdditionsInvestment income - Interest and dividends 15,219$ 7,596$ 22,815$ 520$ 162$ 682$ Contributions:On behalf 6,223,858 4,475,669 10,699,527 - - - Other5,017 6,648 11,665 - 31,207 31,207 Net contributions6,228,875 4,482,317 10,711,192 - 31,207 31,207 Total additions 6,244,094 4,489,913 10,734,007 520 31,369 31,889 DeductionsBenefit payments 6,166,971 4,625,265 10,792,236 - - - Cemetery maintenance- - - - - - Interfund transfers- - - 424,791 (424,791) - Administrative expenses13,254 15,354 28,608 - -- Total deductions 6,180,225 4,640,619 10,820,844 424,791 (424,791) - Net Increase (Decrease) in Net Position Held in Trust 63,869 (150,706) (86,837) (424,271) 456,160 31,889 Net Position - Beginning of year 885,316 466,258 1,351,574 453,269 - 453,269 Net Position - End of year949,185$ 315,552$ 1,264,737$ 28,998$ 456,160$ 485,158$ City of South Bend, IndianaPension Trust FundsPrivate Purpose Trust FundsStatement of Changes in Fiduciary Net PositionFiduciary FundsDecember 31, 2018232
Balance at
Balance at December 31,
January 1, 2018 Additions Reductions 2018
Payroll
Assets - Cash and investments 433,998$ 113,820,377$ (113,929,849)$ 324,526$
Liabilities - Accrued liabilities and other 433,998$ 113,820,377$ (113,929,849)$ 324,526$
Balance at
Balance at December 31,
January 1, 2018 Additions Reductions 2018
Morris Palais Royale Box Office
Assets - Cash and investments 2,446,226$ 2,226,914$ (2,446,226)$ 2,226,914$
Liabilities - Customer deposits payable 2,446,226$ 2,226,914$ (2,446,226)$ 2,226,914$
Balance at
Balance at December 31,
January 1, 2018 Additions Reductions 2018
Police Distribution Payable
Assets - Cash and investments 841,894$ 838,526$ (841,894)$ 838,526$
Liabilities - Police distribution payable 841,894$ 838,526$ (841,894)$ 838,526$
Schedule of Changes in Assets and Liabilities
Agency Funds
City of South Bend, Indiana
Year Ended December 31, 2018
Other Supplemental Information
233
Statistical Section
This part of the comprehensive annual financial report presents detailed information as context for
understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City's overall financial health.
The statistical section is organized into the following main categories:
Financial trends
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue capacity
These schedules contain information to help the reader assess the government's most
significant local revenue source, the property tax.
Debt capacity
These schedules present information to help the reader assess the affordability of the
government's current level of outstanding debt and the government's ability to issue
additional debt in the future.
Demographic and economic information
These schedules help the reader understand the environment within which the
government's financial activities take place.
Operating information
These schedules contain service and infrastructure data to help the reader understand how
the information in the government's financial report relates to the services the government
provides and the activities it performs.
234
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
235
City of South Bend, IndianaNet Position by ComponentLast Ten Fiscal Years200920102011201220132014 (1)2015 (1)201620172018Governmental activitiesNet investment in capital assets178,483,535$ 186,771,216$ 196,265,413$ 202,779,954$ 192,190,446$ 168,275,521$ 157,604,691$ 161,341,318$ 155,912,682$ 143,282,487$ Restricted 12,825,227 8,840,610 9,354,772 8,050,418 7,990,172 8,723,878 9,137,552 8,669,117 9,245,531 11,252,528 Unrestricted 82,877,695 96,539,932 82,271,482 71,992,457 86,413,227 (18,581,970) (25,882,348) (7,327,797) (16,751,916) 3,573,134 Total net position274,186,457$ 292,151,758$ 287,891,667$ 282,822,829$ 286,593,845$ 158,417,429$ 140,859,895$ 162,682,638$ 148,406,297$ 158,108,149$ Business-type activitiesNet investment in capital assets119,607,643$ 122,108,095$ 103,463,004$ 113,193,929$ 114,506,252$ 136,685,811$ 141,998,384$ 145,288,974$ 145,585,038$ 145,963,344$ Restricted 14,075,339 13,320,967 12,937,988 29,259,933 48,267,664 26,587,012 28,397,290 31,963,852 29,623,015 33,936,695 Unrestricted 12,597,138 19,262,192 45,733,630 26,957,505 7,906,258 22,426,017 24,415,739 25,357,665 28,103,338 30,785,421 Total net position146,280,120$ 154,691,254$ 162,134,622$ 169,411,367$ 170,680,174$ 185,698,840$ 194,811,413$ 202,610,491$ 203,311,391$ 210,685,460$ Primary governmentNet investment in capital assets298,091,178$ 308,879,311$ 299,728,417$ 315,973,883$ 306,696,698$ 304,961,332$ 299,603,075$ 306,630,292$ 301,497,720$ 289,245,831$ Restricted 26,900,566 22,161,577 22,292,760 37,310,351 56,257,836 35,310,890 37,534,842 40,632,969 38,868,546$ 45,189,223 Unrestricted 95,474,833 115,802,124 128,005,112 98,949,962 94,319,485 3,844,047 (1,466,609) 18,029,868 11,351,422$ 34,358,555 Total net position420,466,577$ 446,843,012$ 450,026,289$ 452,234,196$ 457,274,019$ 344,116,269$ 335,671,308$ 365,293,129$ 351,717,688$ 368,793,609$ (1) The City implemented the reporting of net pension liability through GASB 68 during 2015. 2014 was restated.Net position is defined as the difference between total assets and deferred outflows of resources less total liabilities and deferred inflows of resources and can generally be thought of as the net worth of the City of South Bend.Source - City of South Bend Comprehensive Annual Financial Reports (includes prior period adjustments)As of December 31,236
City of South Bend, IndianaChanges in Net PositionLast Ten Fiscal Years2009201020112012201320142015201620172018ExpensesGovernmental activities:General Government(7,903,378)$ (8,261,861)$ (16,783,351)$ (13,788,310)$ (13,200,898)$ (19,013,453)$ (21,572,776)$ (15,618,817)$ (16,750,853)$ (12,654,430)$ Public Safety(50,800,573) (62,106,991) (73,530,442) (69,977,237) (76,023,819) (68,783,155) (56,528,448) (55,029,909) (71,656,865) (69,209,163) Highways and Streets(15,042,344) (9,526,537) (7,574,003) (14,639,158) (20,915,815) (13,031,500) (20,045,444) (13,550,535) (21,716,658) (17,223,378) Health and Welfare- - - - - - - - - Community and Economic Development(4,335,618) (30,744,012) (34,648,975) (20,217,987) (10,069,690) (19,780,791) (40,727,612) (28,436,368) (26,326,989) (33,801,755) Culture and Recreation(17,981,839) (16,036,194) (15,566,794) (21,724,589) (26,846,471) (16,802,311) (20,300,768) (17,156,094) (19,332,902) (26,076,331) Bond Issuance Costs- - - - - - (372,432) - - Interest on Long-Term Debt(8,049,610) (7,339,548) (6,798,531) (6,134,406) (5,961,124) (2,497,849) (4,762,714) (4,727,630) (4,538,530) (5,718,172) Total governmental activities expenses(104,113,362) (134,015,143) (154,902,096) (146,481,687) (153,017,817) (139,909,059) (164,310,194) (134,519,353) (160,322,797) (164,683,229) Business-type activities:Water (12,584,679) (12,525,246) (11,972,840) (12,228,014) (15,221,865) (13,020,610) (13,609,378) (14,900,039) (14,902,682) (14,788,847) Wastewater (27,047,143) (21,403,663) (22,260,005) (23,809,975) (26,390,790) (25,521,753) (25,737,867) (26,420,526) (32,548,087) (25,744,139) Century Center (3,488,266) (2,989,586) (3,100,484) (2,929,268) (4,330,656) (4,747,838) (4,854,747) (5,364,472) (5,121,336) (5,287,797) Consolidated Building Department (1) (1,113,867) (930,120) (871,299) (909,376) (1,131,815) (3,242,320) (3,552,347) (3,240,172) (3,704,963) (4,136,837) Parking Garage (1,471,960) (1,438,288) (1,467,646) (1,721,655) (1,285,056) (1,660,596) (2,139,182) (909,857) (1,177,363) (1,565,351) Solid Waste (4,036,001) (4,204,056) (4,962,157) (5,118,806) (5,091,588) (5,811,526) (5,243,972) (5,794,913) (5,169,128) (5,467,986) Blackthorn Golf Course (1,881,982) (1,995,556) (1,689,042) (1,841,998) (1,497,513) (1,874,962) (165,977) - - Emergency Medical Services (2) - - - - - - (6,596,206) (7,437,349) (8,617,050) (8,987,340) Total business-type activities net expenses(51,623,898) (45,486,515) (46,323,473) (48,559,092) (54,949,283) (55,879,605) (61,899,676) (64,067,328) (71,240,609) (65,978,297) Total primary government net position(155,737,260) (179,501,658) (201,225,569) (195,040,779) (207,967,100) (195,788,664) (226,209,870) (198,586,681) (231,563,406) (230,661,526) Program revenueGovernmental activities:Charges for services: General Government6,855,830$ 6,964,269$ 1,165,018$ 2,100,103$ 1,939,865$ 1,451,438$ 1,188,531$ 1,622,788$ 1,118,328$ 718,155$ Public Safety5,051,827 4,916,958 4,096,566 5,079,182 5,210,272 4,992,228 529,386 975,712 648,136 702,977 Highways and Streets5,152 28,110 227,000 291,840 451,363 728,343 676,429 707,547 976,095 - Community and Economic Develop.332,454 283,420 683,503 271,366 444,839 485,938 408,654 481,293 1,489,942 698,252 Culture and Recreation5,063,896 4,995,049 4,681,536 5,224,543 5,112,019 3,815,920 3,726,359 4,383,977 4,308,699 4,356,659 Operating Grants and Contributions12,199,444 29,467,573 32,091,246 24,937,596 21,466,622 3,203,805 2,813,481 2,644,272 11,828,681 26,248,738 Capital Grants and Contributions780,137 1,472,233 2,328,468 2,468,120 1,867,213 - - - 1,000,000 4,100,000 Total governmental activities program revenues30,288,740 48,127,612 45,273,337 40,372,750 36,492,193 14,677,672 9,342,840 10,815,589 21,369,881 36,824,781 Business-type activities:Charges for services:Water 14,151,289 14,194,442 14,080,592 15,409,171 15,102,462 14,373,176 14,204,285 15,091,372 15,290,203 17,183,460 Wastewater 25,012,163 26,001,156 29,407,263 30,657,698 32,474,743 34,009,117 36,638,804 39,061,562 38,794,212 39,931,429 Century Center 2,873,966 2,869,010 2,894,913 2,680,076 3,463,813 2,227,171 4,202,564 4,796,676 3,055,793 3,258,017 Consolidated Building Department 977,050 875,481 899,397 1,000,381 967,667 1,387,571 2,037,950 1,764,100 1,902,493 2,044,582 Parking Garage 1,070,519 1,047,784 1,071,078 921,044 968,868 1,017,218 968,417 996,197 1,264,706 1,323,524 Solid Waste 4,759,530 4,745,547 4,830,342 5,081,991 5,399,044 5,295,712 5,364,871 5,839,143 5,420,711 5,471,364 Blackthorn Golf Course 1,557,951 1,479,415 1,392,999 1,669,372 1,530,402 1,548,341 109,949 - - - Emergency Medical Services - - - - - - 6,470,446 7,921,172 7,308,243 6,727,643 Operating Grants and Contributions - - - - - - - - - 278,112 Capital Grants and Contributions4,038,412 1,889,165 4,291,731 2,010,253 697,916 95,834 4,683,424 649,609 1,170,970 - Total business-type activities program revenues54,440,880 53,102,000 58,868,315 59,429,986 60,604,915 59,954,140 74,680,710 76,119,831 74,207,331 76,218,131 Total primary government program revenues84,729,620 101,229,612 104,141,652 99,802,736 97,097,108 74,631,812 84,023,550 86,935,420 95,577,212 113,042,912 2009201020112012201320142015201620172018Net (Expense)/RevenueGovernmental activities (103,726,403) (106,774,484) 45,273,337 (106,108,937) (116,525,624) (125,231,387) (154,967,354) (123,703,764) (138,952,916) (127,858,448) Business-type activities 8,954,365 6,778,527 58,868,315 10,870,894 5,655,632 4,074,535 12,781,034 12,052,503 2,966,722 10,239,834 Total primary government net expense(94,772,038) (99,995,957) 104,141,652 (95,238,043) (110,869,992) (121,156,852) (142,186,320) (111,651,261) (135,986,194) (117,618,614) 237
City of South Bend, IndianaChanges in Net Position (continued)Last Ten Fiscal Years2009201020112012201320142015201620172018General Revenue and Other Changes in Net PositionGovernmental activities:Taxes:Property taxes73,882,128$ 77,315,641$ 76,445,349$ 71,775,415$ 72,018,650$ 69,221,468$ 72,032,049$ 76,331,581$ 78,266,107$ 80,155,902$ County Option Income Tax10,270,179 11,502,052 13,219,723 13,748,824 13,739,325 15,025,840 14,847,338 21,194,795 17,579,628 20,210,633 Economic Develop. Income Tax4,536,245 7,335,113 8,044,773 8,324,878 8,177,352 8,796,821 9,031,709 9,594,602 10,600,122 12,700,892 Professional Sports Develop. Tax522,788 597,406 558,268 633,904 649,996 588,054 628,261 673,787 347,255 - Community Revitalization District Tax605,623 416,149 733,100 653,185 244,623 - - - - - Hotel/motel Tax- - - - - - - - - 616,437 Unrestricted Grants and Contributions7,597,883 4,883,081 3,964,336 3,891,810 5,893,924 28,473,888 25,487,112 25,846,397 17,160,034 4,819,125 Unrestricted Investment earnings859,135 868,023 1,050,768 1,317,443 762,270 951,901 1,322,674 1,458,787 1,687,888 3,304,646 Other2,781,368 2,627,341 3,483,054 6,623,313 14,285,314 6,747,199 11,214,442 6,745,542 8,731,916 10,523,004 Gain on sale of capital assets- - - - - - - - - - Net Pension Obligation- - - - - - - - - Transfers(645,992) (648,823) 3,041,176 3,879,721 4,525,187 (683,049) 2,846,415 3,681,016 4,123,183 5,229,661 Total governmental activities100,409,357 104,895,983 110,540,547 110,848,493 120,296,641 129,122,122 137,410,000 145,526,507 138,496,133 137,560,300 Business-type activities:Unrestricted Investment earnings 271,360 146,826 206,409 285,572 138,362 128,168 358,918 570,982 578,773 1,088,896 Other - - - - - 1,501,664 - - 1,278,588 1,275,000 Transfers 645,992 648,823 (3,041,176) (3,879,721) (4,525,187) 683,049 (2,846,415) (3,681,016) (4,123,183) (5,229,661) Total business-type activities917,352 795,649 (2,834,767) (3,594,149) (4,386,825) 2,312,881 (2,487,497) (3,110,034) (2,265,822) (2,865,765) Total primary government101,326,709 105,691,632 107,705,780 107,254,344 115,909,816 131,435,003 134,922,503 142,416,473 136,230,311 134,694,535 Special Item (Governmental activities):Well field contamination settlement - - - - - - - - - - Disposal of operations - - - - - - (1,180,964) - - Change in Net PositionGovernmental activities(6,365,127) 150,169,320 911,788 4,739,556 3,771,016 3,890,735 (17,557,354) 21,822,743 (456,783) 9,701,852 Business-type activities7,695,879 59,663,964 9,710,075 7,276,745 1,268,807 6,387,416 9,112,573 7,799,078 700,900 7,374,069 Total primary government1,330,752$ 209,833,284$ 10,621,863$ 12,016,301$ 5,039,823$ 10,278,151$ (8,444,781)$ 29,621,821$ 244,117$ 17,075,921$ Excludes prior period adjustmentsChanges in net assets is defined as the incremental difference between total assets and total liabilities as a result of operations during the fiscal year.(1) In 2014, Code Enforcement and Animal Care & Control were consolidated with the Building Department to build efficiencies. Prior to 2014, these expenses were included in the general government activities. (2) In 2015, Emergency Medical Services was reclassified to an enterprise fund.Source : City of South Bend Comprehensive Annual Financial Reports238
City of South Bend, IndianaFund Balances - Governmental FundsLast Ten Fiscal YearsAs of December 31,2009201020112012201320142015201620172018General fundPrior to adoption of GASB 54:Reserved 1,516,159$ 1,824,454$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved and undesignated23,102,296 26,912,688 - - - - - - - - Subsequent to adoption of GASB 54:Nonspendable- - 1,115,025 958,341 656,848 558,304 491,665 494,730 447,003 425,680 Restricted- - 327,267 - - - - - - - Committed- - - - - - - - - - Assigned- - 255,287 165,389 516,506 - 466,088 1,380,036 1,242,770 820,914 Unassigned- - 26,233,637 27,671,353 26,495,559 27,029,101 29,664,303 32,077,856 33,776,487 37,383,206 Total general fund 24,618,455 28,737,142 27,931,216 28,795,083 27,668,913 27,587,405 30,622,056 33,952,622 35,466,260 38,629,800 All other governmental funds:Prior to adoption of GASB 54:Reserved 56,819,802 62,230,229 - - - - - - - Unreserved, reported in:Special revenue funds36,398,024 31,996,398 - - - - - - - Capital projects funds78,214,132 85,237,947 - - - - - - - Debt service funds- - - - - - - - - Subsequent to adoption of GASB 54:- - - - - - - - - Nonspendable- - 37,036,839 37,706,861 22,828,476 20,537,450 27,042,236 23,566,267 21,927,221 22,322 Restricted- - 44,754,037 78,326,567 95,387,879 100,501,274 113,004,506 101,826,640 125,302,667 152,809,121 Committed- - 11,829,074 11,142,045 20,697,026 12,962,745 2,238,475 2,698,694 2,392,685 3,209,500 Assigned- - 77,460,284 35,180,652 35,455,190 35,147,874 32,138,059 31,998,790 32,769,201 38,707,987 Unassigned- - (2,777,374) (4,219,066) (4,852,169) (5,700,829) (4,218,596) (2,301,793) (626,846) - Total all other governmental funds 171,431,958 179,464,574 168,302,860 158,137,059 169,516,402 163,448,514 170,204,680 157,788,598 181,764,928 194,748,930 Total of all governmental funds196,050,413$ 208,201,716$ 196,234,076$ 186,932,142$ 197,185,315$ 191,035,919$ 200,826,736$ 191,741,220$ 217,231,188$ 233,378,730$ Source: City of South Bend Comprehensive Annual Financial Reports239
City of South Bend, IndianaChanges in Fund Balances, Governmental FundsLast Ten Fiscal Years2009201020112012201320142015201620172018RevenueTaxes 89,139,585$ 101,785,765$ 99,001,213$ 95,136,206$ 94,829,947$ 93,632,183$ 96,033,296$ 107,861,553$ 106,746,367$ 113,683,864$ Licenses, fees and permits 206,594 192,397 190,943 189,714 177,019 141,565 151,923 224,677 231,260 245,956 Fines and forfeits 423,981 409,775 636,749 334,767 660,841 563,999 454,327 756,781 562,466 494,836 Charges for services 16,678,584 16,585,634 13,990,267 12,442,553 12,320,498 10,628,976 5,794,168 7,062,108 7,020,575 5,735,251 Intergovernmental 20,577,464 35,822,886 34,419,714 31,297,526 29,227,759 30,663,505 30,216,059 27,959,813 29,634,896 35,167,863 Investment earnings 859,135 868,023 1,050,768 1,317,443 762,270 955,376 1,253,242 1,624,527 1,687,888 3,304,646 Other revenues 3,046,791 2,677,796 3,587,518 6,660,875 13,174,140 7,904,187 8,816,811 7,179,959 9,703,304 10,523,004 Total revenue130,932,134 158,342,276 152,877,172 147,379,084 151,152,474 144,489,791 142,719,826 152,669,418 155,586,756 169,155,420 ExpendituresCurrent:General government 5,969,141 5,214,424 6,680,855 6,390,585 7,154,965 8,022,688 8,420,278 16,311,633 14,221,015 12,763,226 Public safety 48,790,068 62,586,177 69,612,754 67,138,414 64,041,549 66,927,250 61,889,405 64,350,281 72,010,182 75,530,051 Highways and streets 11,716,810 10,702,555 5,079,041 9,288,682 9,769,942 10,441,957 12,787,641 11,294,768 13,600,140 16,906,126 Public works - - - - - - - - - - Health & welfare8,938,134 17,408,376 9,698,611 3,543,180 8,068,458 7,309,130 11,068,013 20,894,153 15,904,306 16,597,764 Community & economic development 12,733,094 12,841,596 13,816,699 18,557,986 13,956,025 13,948,089 12,855,704 13,070,606 20,622,330 22,179,273 Capital outlay37,485,105 21,952,522 46,691,030 39,984,127 30,748,663 29,407,934 46,553,570 27,056,295 17,035,543 23,240,519 Bond Issuance Costs- - - - - - 372,432 - - 165,885 Debt service interest8,053,995 7,499,683 7,186,494 6,734,305 6,113,043 5,360,219 5,392,298 4,943,021 4,514,526 5,682,429 Debt service principal9,276,363 12,552,681 13,632,195 10,822,721 13,008,105 12,882,830 13,319,392 13,055,327 16,634,195 13,134,725 Total expenditures142,962,710 150,758,014 172,397,679 162,460,000 152,860,750 154,300,097 172,658,733 170,976,084 174,542,237 186,199,998 Excess of Revenue Over Expenditures(12,030,576) 7,584,262 (19,520,507) (15,080,916) (1,708,276) (9,810,306) (29,938,907) (18,306,666) (18,955,481) (17,044,578) Other Financing Sources (Uses)Proceeds from debt issuance1,771,318 5,280,314 3,478,239 5,660,897 7,801,455 8,436,905 69,426,593 4,999,053 40,727,816 26,101,096 Premium (discount) on debt issuance 80,950 146,030 26,877 1,236,364 21,576 171,851 1,919,787 - 6,478 479,608 Proceeds from refunding7,210,000 5,327,775 38,307,431 13,595,000 3,990,000 - - - - - Payments to refunded bond escrow age(7,591,171) (5,538,255) (37,300,856) (14,613,147) (4,376,769) (3,482,205) (35,698,815) - - - Transfers in 8,687,172 16,314,577 22,483,564 25,368,413 26,365,239 18,478,925 31,498,681 19,541,050 29,141,285 28,197,288 Transfers out (9,333,164) (16,963,400) (19,442,388) (21,488,692) (21,840,052) (16,522,289) (28,652,266) (15,860,034) (25,018,102) (22,528,488) Other- - - - - 28,476 1,235,744 541,081 (412,028) 942,616 Total other financing sources (uses) 825,105 4,567,041 7,552,867 9,758,835 11,961,449 7,111,663 39,729,724 9,221,150 44,445,449 33,192,120 Special ItemWell field contamination settlement 4,462,214 - - - - - - - - - Net change in fund balances(6,743,257)$ 12,151,303$ (11,967,640)$ (5,322,081)$ 10,253,173$ (2,698,643)$ 9,790,817$ (9,085,516)$ 25,489,968$ 16,147,542$ Debt service as a percentage of noncapital expenditures12.10% 17.59% 15.42% 13.84% 12.92% 13.38% 11.59% 12.74% 13.26% 10.11%Excludes prior period adjustments(1) Formula = Debt service payments (principal and interest) / (Total Governmental Fund expenditures - Governmental Fund capital outlay per reconciliation)Source: City of South Bend Comprehensive Annual Financial ReportsAs of December 31,240
City of South Bend, Indiana
Financial Institutions
Last Ten Years
(Amounts in 000's)
Percent
Increase/
Year Branches Deposits Branches Deposits Branches Deposits Total Deposits (Decrease)
2009 40 2,443,390 - - 23 2,914,347 5,357,737 26.21%
2010 40 3,108,702 - - n/a 2,410,711 5,519,413 3.02%
2011 39 3,342,964 - - n/a 2,474,034 5,816,998 5.39%
2012 40 3,201,888 - - n/a 2,735,212 5,937,100 2.06%
2013 37 3,730,018 - - n/a 2,854,527 6,584,545 10.91%
2014 39 2,548,101 - - n/a 2,911,596 5,459,697 -17.08%
2015 40 2,454,129 1 25,077 n/a 3,089,732 5,568,938 2.00%
2016 39 2,607,360 1 25,077 n/a 3,262,413 5,894,850 5.85%
2017 35 2,853,276 - - n/a 3,451,457 6,304,733 6.95%
2018 36 3,179,336 - - n/a 3,719,934 6,899,270 9.43%
1st Source Bank 1,784,833$ 56.15%Teacher's Credit Union 2,666,895$ 71.69%
Key Bank 533,082 16.77%Notre Dame Federal Credit Union 525,171 14.12%
Wells Fargo 291,200 9.16%Community Wide Credit Union 370,901 9.97%
Others 570,221 17.94%AAA Federal Credit Union 53,969 1.45%
Total 3,179,336$ 100.02% Policemen's Federal Credit Union 48,721 1.31%
Others 54,277 1.46%
Total 3,719,934$ 100.00%
n/a - information is not available
Bank of America closed operations in South Bend prior to June 30, 2014 reducing total bank deposits.
Sources:
Federal Deposit Insurance Corporation Website (www.fdic.gov). Research and Analysis: Summary of Deposits, Deposits Market Share
Report, Indiana, St. Joseph County, South Bend, Run Report.
National Credit Union Association Website (www.ncua.gov). Custom Query, Search Fields, State = Indiana, Total Shares Greater than
1, City = South Bend or Notre Dame. Check data for CU name and total amount of shares and deposits.
Banks Savings and Loans Credit Unions
Credit UnionsBanks
241
Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local
revenue source, the property tax, and other major revenue sources.
242
City of South Bend, Indiana
Property Taxes Levies and Collections
Last Ten Fiscal Years
Estimated Adjusted Current Tax Total Tax (1) Outstanding
Per DLGF Circuit Breaker Current Tax Collections Delinquent Collections as Outstanding Delinquent Taxes
Tax Year/ Current Levy Levy Current Tax as a Percent of Tax Total Tax a Percent of Delinquent as a Percent of
Collection Year Tax Levy Reduction (County Abstract)Collections Adjusted Tax Levy Collections Collections Adjusted Tax Levy Taxes Adjusted Tax Levy
2008/2009 64,546,050 7,863,846 56,682,204 47,497,697 83.80% 3,355,161 50,852,858 89.72% 5,810,503 10.25%
2009/2010 66,929,179 14,346,110 52,583,069 41,813,442 79.52% 6,380,600 48,194,042 91.65% 10,026,236 19.07%
2010/2011 68,662,101 17,692,787 50,969,314 40,876,844 80.20% 5,791,920 46,668,764 91.56% 8,165,775 16.02%
2011/2012 70,756,844 23,965,911 46,790,933 42,598,817 91.04% 5,111,380 47,710,197 101.96% 9,550,891 20.41%
2012/2013 72,696,497 27,863,156 44,833,341 38,721,788 86.37% 5,200,000 43,921,788 97.97% 11,146,473 24.86%
2013/2014 73,981,565 27,051,751 46,929,814 41,370,637 88.15% 3,134,526 44,505,163 94.83% 8,745,941 18.64%
2014/2015 76,533,090 29,728,412 46,804,678 42,097,072 89.94% 3,168,597 45,265,669 96.71% 8,200,000 17.52%
2015/2016 78,503,658 29,601,193 48,902,465 43,806,020 89.58% 3,900,000 47,706,020 97.55% 7,468,597 15.27%
2016/2017 81,487,640 31,615,462 49,872,178 45,605,926 91.45% 3,432,704 49,038,630 98.33% 12,106,873 24.28%
2017/2018 85,426,389 33,910,221 51,516,168 43,171,113 83.80% 5,867,517 50,747,909 98.51% 12,106,873 23.50%
Data provided for General Fund, Parks & Recreation, Cumulative Capital Development, Fire Pension and Police Pension Funds. Excludes College Football Hall of Fame and Tax
Increment Financing Funds.
Delinquent tax collections are not broken out by individual taxing unit. A calculation of South Bend's share of delinquent taxes has been made based on proportionate tax rates.
Total collections may exceed 100% of adjusted tax levy as prior year collections are not broken out separately by the St. Joseph County Auditor.
(1) Outstanding Delinquent Taxes are reported in the aggregate as of the end of each year and are not cumulative. Estimated for 2017/2018.
Source - St. Joseph County Auditor's Settlement Worksheets and Abstract. City of South Bend budget forms approved by the Department of Local Government Finance (DLGF).
243
City of South Bend, Indiana CumulativeTax Year/ General Parks/ Firefighters' Police Park Capital Total St. JosephSchools TotalCollection YearFundRecreationPensionPensionBondDevelopmentDirectCountyDistrictsTownshipLibraryOther (1)Overlapping2008/2009 1.9777 0.3656 0.0117 0.0189 - 0.0342 2.4081 0.5693 1.0297 0.0537 0.2257 0.1733 2.0517 2009/2010 (2) 2.2536 0.4401 - - - 0.0342 2.7279 0.5866 1.0728 0.0406 0.2657 0.1835 2.1492 2010/2011 2.4381 0.4818 - - - 0.0342 2.9541 0.5424 1.2211 0.0438 0.3027 0.1958 2.3058 2011/2012 2.4954 0.4957 - - - 0.0328 3.0239 0.6212 1.1931 0.0464 0.2941 0.1817 2.3365 2012/2013 2.5678 0.5102 - - - 0.0328 3.1108 0.6731 1.3493 0.0453 0.3227 0.1971 2.5875 2013/2014 2.7977 0.5608 - - - 0.0328 3.3913 0.7058 1.3577 0.0505 0.3309 0.1849 2.6298 2014/2015 2.8313 0.5676 - - - 0.0325 3.4314 0.6866 1.2940 0.0500 0.3207 0.2125 2.5638 2015/2016 2.8703 0.5754 - - - 0.0321 3.4778 0.6974 1.2682 0.0512 0.3549 0.2224 2.5941 2016/2017 2.8382 0.6473 - - - 0.0313 3.5168 0.6950 1.2049 - 0.3372 0.1822 2.4193 2017/2018 2.8267 0.6651 0.0293 0.0303 3.5514 0.6908 1.1685 - 0.3309 0.1907 2.3809 (1) Includes State of Indiana, Redevelopment Commission (Hall of Fame), South Bend Transportation and South Bend Regional Airport.(2) Firefighters' Pension and Police Pension are no longer a tax burden for the City of South Bend as the State of Indiana has assumed responsibility for funding these program(3) Information provided for Portage Township in the City of South Bend. Property tax rates applied to net assessed valuation. Property tax billings are also subject to "circuit breaker" property tax caps on grossed assessed valuation of 1% (homestead residential property), 2% (other residential/rental property), and 3% ( nonresidential real and personal property). Therefore, an increase in stated property tax rates will not result in higher property taxes paid for many taxpayers who have reached their cap.Source: St. Joseph County Auditor's Office - Certified Tax Rate Schedules - Rates presented for Portage Township in South BendDirect and Overlapping Property Tax RatesLast Ten Fiscal Years(Rate per $100 of Net Assessed Value)City Direct Rates Overlapping Rates (3)244
City of South Bend, Indiana
Detail of Net Assessed Valuation
(Assessment For the Year 2017 Payable in 2018)
South Bend South Bend South Bend South Bend South Bend South Bend
Centre Twp Clay Twp German Twp Penn Twp Warren Twp Portage Twp Totals Percent
Value of land 119,438,600$ 29,366,600$ 79,715,800$ 17,403,700$ 844,600$ 404,190,905$ 650,960,205$
Value of improvements 479,223,300 123,699,000 441,857,900 98,734,300 23,155,000 2,632,971,680 3,799,641,180
Total value of real estate 598,661,900 153,065,600 521,573,700 116,138,000 23,999,600 3,037,162,585 4,450,601,385
Less: Mortgage, veterans, blind, age 65
& other exemptions (237,682,480) (36,172,444) (89,398,370) (33,587,558) - (963,974,966) (1,360,815,818)
Tax-exempt property (49,342,130) (8,929,726) (30,290,820) (9,026,600) - (360,010,919) (457,600,195)
Investment Deduction - - - - - (1,998,700) (1,998,700)
Tax increment financing (56,466,819) (1,092,000) (260,097,538) - (23,999,600) (405,560,624) (747,216,581)
Tax abatements (520,980) (26,497,466) (2,238,600) - (21,783,696) (51,040,742)
Net value of real estate 254,649,491 106,871,430 115,289,506 71,285,242 - 1,283,833,680 1,831,929,349 75.81%
Gross personal property assessments 31,036,980 10,164,890 193,670,283 3,592,620 6,923,520 406,457,370 651,845,663
Less: Tax abatements: (1,479,720) - (19,240,910) - - (26,448,020) (47,168,650)
Tax-exempt property (2,095,479) (159,420) (4,606,051) (2,104,030) - (87,360,460) (96,325,440)
Investment deduction - - - - - (17,439,241) (17,439,241)
Tax increment financing - - - - - - -
Net value of personal property 27,461,781 10,005,470 169,823,322 1,488,590 6,923,520 275,209,649 490,912,332 20.32%
Net value of utilities 8,981,100 4,040,290 11,708,120 1,202,260 231,270 67,452,500 93,615,540 3.87%
Total net assessed valuation 291,092,372$ 120,917,190$ 296,820,948$ 73,976,092$ 7,154,790$ 1,626,495,829$ 2,416,457,221$ 100.00%
Percentage of Total 12.05%5.00% 12.28% 3.06%0.30% 67.31% 100.00%
Summary:
Real Property
Personal
Property/Utilities Total Percent
Total value 4,450,601,385$ 745,461,203$ 5,196,062,588$ 100.00%
Deductions & exemptions (1,362,814,518) (17,439,241) (1,380,253,759) -26.56%
Tax exempt property (457,600,195) (96,325,440) (553,925,635) -10.66%
Tax increment financing (747,216,581) - (747,216,581) -14.38%
Tax abatements (51,040,742) (47,168,650) (98,209,392) -1.89%
Total net assessed valuation 1,831,929,349$ 584,527,872$ 2,416,457,221$ 46.51%
Percent 75.81% 24.19% 100.00%
Source: St. Joseph County Auditor's Office - Information from the County Abstract prepared by the Indiana Department of Local Government Finance
245
City of South Bend, Indiana Less:Total Net(2)Tax Year/Real Personal UtilitiesTotal Non-Taxed Taxable City Tax %Collection YearPropertyPropertyPropertyValueProperty (1)ValueRateTaxable2008/2009 4,698,989,240 592,538,950 95,891,770 5,387,419,960 2,718,532,541 2,668,887,419 2.4081 49.54%2009/2010 4,368,497,000 604,951,450 98,433,750 5,071,882,200 2,618,376,627 2,453,505,573 2.7279 48.37%2010/2011 4,339,037,300 551,819,290 101,009,760 4,991,866,350 2,667,414,488 2,324,451,862 2.9541 46.56%2011/2012 4,255,238,900 560,331,660 95,165,650 4,910,736,210 2,529,861,602 2,380,874,608 3.0239 48.48%2012/2013 4,452,887,970 537,500,490 100,832,450 5,091,220,910 2,720,133,213 2,371,087,697 3.1108 46.57%2013/2014 4,199,757,500 552,872,520 90,252,180 4,842,882,200 2,633,155,528 2,209,726,672 3.3913 45.63%2014/2015 4,192,804,920 557,759,982 86,924,710 4,837,489,612 2,577,220,294 2,260,269,318 3.4314 46.72%2015/2016 4,199,285,400 603,870,040 83,786,930 4,886,942,370 2,609,772,627 2,277,169,743 3.4778 46.60%2016/2017 4,317,332,400 638,702,010 105,036,200 5,061,070,610 2,733,570,369 2,327,500,241 3.5168 45.99%2017/2018 4,450,601,385 651,845,663 93,615,540 5,196,062,588 2,779,605,367 2,416,457,221 3.5168 46.51% (1) Non-taxed property includes tax exempt property, tax increment financing property, tax abatements, and adjustments for deductions and exemptions. (2) City tax rate excludes Redevelopment Commission (Hall of Fame) tax rate.Source: St. Joseph County Auditor's OfficeAssessed Value and Actual Value of Taxable PropertyLast Ten Fiscal YearsGross Assessed Values246
City of South Bend, IndianaNet Assessed Value of Taxable PropertyLast Ten Fiscal YearsReal EstatePersonalUtilitiesTotalTax Year/ Net Assessed Net Assessed Net Assessed Net Assessed PercentCollection YearValueValueValueValueChange2008/20092,137,129,242 435,866,407 95,891,770 2,668,887,419 -10.32%2009/20101,911,818,036 443,253,787 98,433,750 2,453,505,573 -8.07%2010/20111,809,523,734 413,918,368 101,009,760 2,324,451,862 -5.26%2011/20121,858,836,588 426,872,370 95,165,650 2,380,874,608 2.43%2012/20131,858,213,181 412,042,066 100,832,450 2,371,087,697 -0.41%2013/20141,687,672,152 431,802,340 90,252,180 2,209,726,672 -6.81%2014/20151,753,122,893 420,221,715 86,924,710 2,260,269,318 2.29%2015/20161,737,036,616 456,346,197 83,786,930 2,277,169,743 0.75%2016/20171,758,787,301 463,676,740 105,036,200 2,327,500,241 2.21%2017/20181,831,929,349 490,912,332 93,615,540 2,416,457,221 6.12%Source: St. Joseph County Auditor's office247
City of South Bend, Indiana NetTax Year/ Total Tax Exempt Tax Increment Tax AssessedCollection YearGross ValuationDeductions (1)PropertyFinancingAbatementsValuation2008/20095,387,419,960 (1,557,329,781) (436,861,027) (625,910,065) (98,431,668) 2,668,887,419 2009/20105,071,882,200 (1,344,563,829) (449,848,037) (707,096,696) (116,868,065) 2,453,505,573 2010/20114,991,866,350 (1,353,769,271) (439,343,852) (777,038,302) (97,263,063) 2,324,451,862 2011/20124,910,736,210 (1,331,068,608) (417,907,225) (702,724,247) (78,161,522) 2,380,874,608 2012/20135,091,220,910 (1,397,134,910) (488,961,977) (761,349,489) (72,686,837) 2,371,087,697 2013/20144,842,882,200 (1,344,702,776) (512,692,590) (713,448,152) (62,312,010) 2,209,726,672 2014/20154,837,489,612 (1,292,923,103) (510,555,188) (707,010,507) (66,731,496) 2,260,269,318 2015/20164,886,942,370 (1,305,921,190) (521,555,123) (718,066,149) (64,230,165) 2,277,169,743 2016/20175,061,070,610 (1,334,844,637) (559,770,989) (743,657,399) (95,297,344) 2,327,500,241 2017/20185,196,062,588 (1,380,253,759) (553,925,635) (747,216,581) (98,209,392) 2,416,457,221 (1) Includes homestead standard deduction, supplemental standard deduction, mortgage deduction, blind/disabled deduction, investment deduction, veteran's deduction, over 65 years old deduction, and geothermal deduction. In 2009, a new 35% supplemental standard deduction was provided as a part of "circuit breaker" property tax reform legislation.2017 Deductions2015/20162016/20172017/2018Homestead Standard Deduction820,420,116$ 828,638,094$ 842,461,563$ Supplemental Standard Deduction 375,610,821 400,306,547 435,967,478 Mortgage Deduction42,985,922 40,717,260 40,183,948 Veteran's Deduction11,784,608 11,986,495 12,815,878 Age 65 and Over Deduction24,608,600 23,876,138 23,373,704 Energy Systems Deduction388,200 396,600 421,500 Blind & Disabled Deduction5,643,351 5,646,155 5,567,847 Fertilizer/Peticide Deduction- 114,555 Heritage Barn Deduction- 10,000 23,900 Investment Deduction24,479,572 23,152,793 19,437,941 Total1,305,921,190$ 1,334,844,637$ 1,380,253,759$ Source: St. Joseph County Auditor's Office AbstractAssessed Value of Taxable PropertyLast Ten Fiscal Years248
City of South Bend, IndianaFund 200920102011 2012 2013 2014 2015 2016 2017 2018Fund NameNumberActual (3)ActualActualActualActualActualActualActualActualActualGeneral Fund101 79,162,937$ 38,780,847$ 38,514,550$ 39,368,431$ 36,251,397$ 36,708,989$ 37,349,387$ 39,362,139$ 39,568,076$ 40,719,333$ Excess Levy103- - - - - 3,648 - - - Parks & Recreation201 13,919,096 7,591,932 7,613,760 7,824,056 7,207,060 7,365,388 7,487,554 7,902,995 9,033,731 9,591,899 Redevelopment Bonds Studebaker Corridor 310- - - - - - - - - Park Bond (2017ParksBond Debt Service) 312703,118 College Football Hall of Fame Debt Service 313 2,362,057 1,488,453 1,549,954 1,133,205 1,268,179 497,768 906,263 1,361,512 820,071 426,604 River West TIF District (1)324 10,808,912 21,508,430 11,187,768 11,631,287 13,340,354 14,284,734 16,293,240 18,159,311 17,259,902 18,662,835 Cumulative Capital Development406 1,420,833 587,063 540,454 517,710 463,331 430,786 428,727 440,887 436,823 436,677 South Bend Central Development Area TIF (1) 420 3,870,188 7,336,117 3,633,473 3,671,478 2,590,808 4,309,727 - - - West Washington Street TIF District422358,844 860,049 431,085 422,715 493,608 580,987 402,911 453,503 378,994 332,220 Central Medical Service Area TIF District (1) 426919,174 3,524,962 1,704,238 1,606,915 1,221,676 851,211 - - - River East (Northeast) TIF District42922,191 195,400 715,063 1,351,048 841,627 1,568,240 2,421,308 2,348,608 2,630,887 3,512,606 Southside Development Area TIF District 430355,596 4,094,135 1,808,952 2,466,203 2,404,416 2,379,212 2,205,822 2,401,252 2,365,692 2,166,637 Erskine Commons TIF District (5)431 1,240,184 5,978,592 784,373 - - - - - - Erskine Village TIF District432 1,531,403 3,759,287 1,603,182 - 1,311,129 9,175 19,183 - - Douglas Road TIF District435125,294 460,760 306,053 285,713 323,939 321,895 270,758 345,262 379,255 River East (Northeast) Residential TIF 436- 1,815,829 2,446,103 2,514,048 2,262,765 2,725,909 3,129,681 3,932,947 4,262,917 4,236,865 Airport Urban Enterprise454- 301,430 123,165 111,721 - - - - - Fire Department Employees Pension (4) 701 1,437,539 (5,867) - - - - - - - Police Department Employees Pension (4)702 1,609,905 (9,479) - - - - - - - - Total119,144,153$ 98,267,940$ 72,962,173$ 72,904,530$ 69,980,289$ 72,037,669$ 70,914,834$ 76,708,415$ 77,136,348$ 80,788,794$ (1) Name changed in 2015 from TIF Airport to River West TIF due to consolidation of Central Development Area and Central Medical TIFs.(2) Delays in sending out property tax bills until December 19, 2008 (with an on-time due date of February 20, 2009) resulted in interfund borrowing in the General Fund (101), Parks and Recreation Fund (201) and the College Football Hall of Fame Debt Service Fund (313) at year end. The remainder of property tax revenue was received during the first half of 2009 with final settlement with the St. Joseph County Auditor in July, 2009(3) Includes collections of 2008 taxes as noted above. Tax Increment Financing (TIF) 2009 property tax collections were received from the County Auditor on January 21, 2010.(4) Property tax levy for Police and Fire pension plans eliminated. Funding provided by the State of Indiana.(5) Erskine Commons TIF District funds were released and outstanding bonds were paid off.Source - City of South Bend Accounting RecordsProperty Tax Collections - Cash BasisLast Ten Fiscal Years249
City of South Bend, Indiana
2018 Circuit Breaker Property Tax Cap Credits
(2%)(3%)
Taxing (1%) Other Residential All Other Total
Unit Name Homsesteads and Farmland Real/Personal Elderly Credits
City of South Bend (101,168 population)
South Bend Civil City 8,986,817$ 13,491,772$ 11,391,917$ 39,714$ 33,910,220$
TIF - SB So. #1 Centre 1,525 39,063 1,037,873 4 1,078,465
TIF - Douglas Road EDA - - - - -
TIF - River East Clay - - - - -
TIF - River West German 993 370,895 4,528,640 - 4,900,528
TIF - SB West Washington 2,265 11,226 156,748 2 170,241
TIF - SB So. #1 Portage 20,487 345,351 1,245,678 1,005 1,612,521
TIF - River West Portage 1,240 1,119,963 2,613,244 30 3,734,477
TIF - River West Warren - - 466,653 - 466,653
TIF - River East Portage 1,363 3,165,116 679,367 - 3,845,846
Total Credits 9,014,690$ 18,543,386$ 22,120,120$ 40,755$ 49,718,951$
Per Capita Credits 89.11 183.29 218.65 0.40 491.45
Percent of Total 18.13% 37.30% 44.49% 0.08% 100.00%
Selected Benchmark Local Governments:
Total 2010 Per Capita
Local Unit Credits Population Credits
South Bend Civil City 33,910,221$ 101,168 335$
Anderson Civil City 12,482,782 56,120 222
East Chicago Civil City 4,368,987 29,698 147
Elkhart Civil City 10,416,671 50,949 204
Evansville Civil City 13,024,809 117,429 111
Fort Wayne Civil City 19,107,625 253,691 75
Gary Civil City 41,638,777 80,294 519
Goshen Civil City 3,769,447 31,719 119
Hammond Civil City 11,199,475 80,830 139
Jeffersonville Civil City 4,032,390 44,953 90
Kokomo Civil City 10,527,131 45,468 232
Lafayette Civil City 2,165,737 61,140 35
LaPorte Civil City 2,547,834 22,053 116
Mishawka Civil City 5,427,804 48,252 112
Muncie Civil City 16,243,724 70,085 232
Noblesville Civil City 3,635,554 51,969 70
Saint Joseph County 8,439,187 266,931 32
South Bend School Corporation 6,977,998 101,168 69
Terre Haute Civil City 11,710,916 60,785 193
Sources - Circuit Breaker Report. Prepared by the Legislative Services Agency, December 20, 2018 (www.iga.in.gov).
County Property Tax Studies, Saint Joseph County, Property Tax Changes in Saint Joseph County between
2015 and 2016. Prepared by the Legislative Services Agency, October 2018. (www.iga.in.gov).
U.S. Census Bureau, 2010 Census information (http://factfinder.census.gov/).
Notes: Circuit breaker tax cap credits are tax savings for taxpayers and revenue losses for local governmental units.
Circuit breaker credits are highest in tax districts with the highest tax rates. These are usually districts that include
cities or towns because the municipal tax rate is included in the district tax rate. This means that most circuit breaker
credits are in cities and towns and in units that overlap cities and towns.
December 31, 2018
250
City of South Bend, Indiana20182009Net AssessedPercent Net Assessed PercentTaxpayerType of BusinessValue (1)Rankof TotalValue (2)Rankof TotalUniversity of Notre DameHigher Education43,277,785$ 1 1.79%Indiana Michigan Power Company - AEPUtility41,328,450 2 1.71% 25,288,400 7 0.95%Edward Rose of IndianaApartments and Real Estate 35,532,900 3 1.47% 75,137,200 2 2.82%Honeywell International, Inc.Airplane and Auto Parts28,601,739 4 1.18%Federal-Mogul Powertrain SystemsAutomotive Parts25,425,870 5 1.05%Noble Americas South Bend Ethanol LLCEthanol Plant20,195,680 6 0.84%NIPSCOUtility19,764,470 7 0.82%US Bank National AssociationBanking19,152,900 8 0.79%ComcastTelecommunications17,625,810 9 0.73%Indiana Bell - AT&T Inc.Telecommunications17,488,870 10 0.72% 8,249,100 10 0.31%Memorial Health SystemHealth Care- 86,638,050 1 3.25%Wal MartRetail Store- 62,991,000 3 2.36%MeijerRetail Store- 42,931,200 4 1.61%Park Jefferson Realty, LLCApartments and Real Estate- 32,950,000 5 1.23%Castle Point ApartmentsApartments and Real Estate- 26,070,600 6 0.98%1st Source BankFinancial Institution- 22,311,475 8 0.84%Maple Lane ApartmentsApartments and Real Estate- 15,033,500 9 0.56%Total Net Assessed Value - Ten Largest Taxpayers268,394,474$ 11.11%397,600,525$ 14.90%Total Net Assessed Value (3) 2,416,457,221$ 100.00%2,668,887,419$ 100.00%Source: (1) Crowe Horwath LLP(2) 2009 Comprehensive Annual Financial Report(3) St. Joseph County Auditor(3) St. Joseph County AuditorPrincipal Property Taxpayers - Current and Nine Years AgoDecember 31, 2018251
City of South Bend, Indiana
Local Income Tax Revenue
Last Ten Years
Total Est South Bend South Bend Actual City
Distribution EDIT (1) County EDIT Rate of EDIT Rate of as a Percent Collections
Year Tax Rate Collections Growth Distribution Growth of Total During Year
2009 0.20% 11,938,605 7.20% 4,612,694 15.38% 38.64% 3,843,912
2010 (2) 0.40% 22,789,919 90.89% 8,321,633 80.41% 36.51% 9,090,415
2011 (3) 0.40% 18,826,685 -17.39% 7,300,866 -12.27% 38.78% 7,300,866
2012 (4) 0.40% 17,649,256 -6.25% 8,324,626 14.02% 47.17% 9,068,785
2013 0.40% 20,611,415 16.78% 8,177,352 -1.77% 39.67% 8,177,352
2014 0.40% 22,063,091 7.04% 8,796,821 7.58% 39.87% 8,796,821
2015 0.40% 23,081,049 4.61% 9,181,206 4.37% 39.78% 9,181,206
2016 0.40% 23,733,626 2.83% 9,594,602 4.50% 40.43% 9,594,602
2017 0.40% 26,149,949 10.18% 10,600,122 10.48% 40.54% 10,600,122
2018 (5) 0.40% 26,745,547 2.28% 11,885,489 12.13%44.44%11,885,489
Total 213,589,142$ 86,795,411$ 40.64%87,539,570$
(1) This tax was first enacted as of July 1, 1995 at the rate of 0.1% of City residents' adjusted gross income. The rate was
increased to 0.2% effective July 1, 1997.
(2) The CEDIT tax rate for 2010 and subsequent years was increased by City of South Bend Common Council
and the Saint Joseph County Common Council.
(3) In 2011, the State of Indiana underpaid due to an accounting error.
(4) The City's 2012 CEDIT distribution included $744,159, the amount the State of Indiana underpaid the City in 2011.
(5) The City's 2018 CEDIT distribution included $1,164,530 of Supplemental and One Time distributions.
Source - State of Department of Local Government Finance CEDIT Distribution Reports
City of South Bend Accounting Records
252
City of South Bend, IndianaLocal Income Tax RevenueLast Ten YearsTotalSouth BendSouth Bend Actual CityDistribution COIT County COIT Rate of COIT Rate of as a Percent CollectionsYearTax Rate (1)DistributionsGrowthDistributionGrowthof TotalDuring Year20090.60% 26,973,887 30.37% 8,952,424$ 40.27% 33.19% 8,302,694 20100.60% 25,147,806 -6.77% 7,855,776 -12.25% 31.24% 7,648,824 2011 (2) 0.60% 19,907,430 -20.84% 6,458,586 -17.79% 32.44% 7,097,462 2012 (3) 0.60% 22,536,457 13.21% 7,691,991 19.10% 34.13% 8,610,742 20130.60% 22,923,958 1.72% 7,846,939 2.01% 34.23% 7,846,939 20140.60% 25,275,541 10.26% 8,645,811 10.18% 34.21% 8,645,811 20150.60% 26,435,155 4.59% 8,859,912 2.48% 33.52% 8,859,912 20160.60% 27,898,910 5.54% 9,454,023 6.71% 33.89% 9,454,023 20170.60% 31,321,416 12.27% 10,459,265 10.63% 33.39% 10,459,265 2018 (4) 0.60% 31,947,819 2.00% 12,188,922 16.54% 38.15% 12,188,922 Total 260,368,379$ 88,413,649$ 33.96%89,114,594$ (1) This tax was first enacted as of July 1, 1997 at the rate of 0.2% of City residents' adjusted gross income. The COIT rate increased 0.1% each year until it reached 0.6% as of July 1, 2001. The above collections/distribution amounts are net of the additional homestead credits that accompanied the passage of this income tax.(2) In 2011, the State of Indiana underpaid due to an accounting error.(3) The City's 2012 COIT distribution included $918,751, the amount the State of Indiana underpaid the City in 2011.(4) The City's 2018 COIT distribution included Supplemental and One Distributions totaling $1,433,440. Source - State of Indiana Department of Local Government Finance COIT Distribution Reports City of South Bend Accounting RecordsCounty Option Income Tax (COIT) Revenue253
City of South Bend, Indiana
Local Income Tax Revenue
Last Ten Years
Total South Bend South Bend Actual City
Distribution PS LOIT County LOIT Rate of LOIT Rate of as a Percent Collections
Year Tax Rate Distributions Growth Distribution Growth of Total During Year
2010 (1) 0.25% 13,846,267$ 100.00% 6,078,454$ 100.00% 43.90% 6,078,454$
2011 (2) 0.25% 11,371,882 -17.87% 5,293,619 -12.91% 46.55% 5,293,619
2012 (3) 0.25% 10,644,975 -6.39% 6,056,334 14.41% 56.89% 6,605,601
2013 0.25% 12,457,864 17.03% 5,892,356 -2.71% 47.30% 5,892,386
2014 0.25% 13,476,753 8.18% 6,380,029 8.28% 47.34% 6,380,029
2015 0.25% 13,734,382 1.91% 6,466,190 1.35% 47.08% 6,466,190
2016 0.25% 14,237,777 3.67% 6,791,160 5.03% 47.70% 6,791,160
2017 0.25% 15,673,247 10.08% 7,467,618 9.96% 47.65% 7,467,618
2018 (4) 0.25% 15,986,699 2.00% 8,487,336 13.66% 53.09% 8,487,336
Total 121,429,846$ 58,913,096$ 48.52%59,462,393$
(1) This tax was effective in October 2009 at the rate of 0.25% of City residents' adjusted gross income.
The measure is being used to support the Public Safety operations consisting of the Police Department
and the Fire Department, to keep the staffing levels at their full complement.
(2) In 2011, the State of Indiana underpaid due to an accounting error.
(3) The City's 2012 PS LOIT distribution included $549,267, the amount the State of Indiana underpaid the City
in 2011.
(4) The City's 2018 LOIT distribution included Supplemental and One Time distributions of $857,797.
Source - State of Indiana Department of Local Government Finance LOIT Public Safety Distribution Reports
City of South Bend Accounting Records
Public Safety Local Option Income Tax (PS LOIT) Revenue
254
City of South Bend, IndianaUnit of Government2009201020112012201320142015201620172018Total County Certified Distribution34,801,729$ 33,231,041$ 27,292,516$ 29,898,874$ 29,898,874$ 32,344,207$ 32,962,518$ 34,170,664$ 37,640,869$ 38,393,656$ Less: Homestead Credit (1)(7,827,842) (8,083,235) (7,385,086) (7,362,417) (6,974,918) (7,068,666) (6,527,363) (6,271,754) (6,319,453) (6,445,837) Total Distributive Shares26,973,887$ 25,147,806$ 19,907,430$ 22,536,457$ 22,923,956$ 25,275,541$ 26,435,155$ 27,898,910$ 31,321,416$ 31,947,819$ Distributive Shares/Total County Distribution 77.51% 75.68% 72.94% 75.38% 76.67% 78.15% 80.20% 81.65% 83.21% 83.21%AmountSt. Joseph County 10,358,300$ 9,819,576$ 7,383,180$ 7,986,750$ 8,460,192$ 9,314,201$ 9,611,416$ 9,983,016$ 10,908,099$ 11,290,728 Townships1,180,913 1,168,352 1,054,827 1,244,481 954,332 1,069,408 1,541,211 1,695,662 2,396,851 1,978,069 City of South Bend - Civil City8,748,506 7,677,730 6,304,224 7,511,976 7,711,609 8,483,839 8,754,940 9,275,956 10,267,284 10,781,364 City of South Bend - Redevelopment203,918 178,046 154,363 184,790 135,330 161,972 104,972 178,067 191,981 124,929 Other Cities & Towns3,592,330 3,462,786 2,667,400 3,077,335 3,137,086 3,378,481 3,508,422 3,683,131 4,118,009 4,317,405 Libraries2,007,809 2,042,942 1,762,365 1,879,376 1,849,933 2,126,185 2,144,046 2,279,241 2,541,672 2,569,360 Special Districts882,111 798,374 581,071 651,749 675,474 741,455 770,148 803,837 897,520 885,964 Total26,973,887$ 25,147,806$ 19,907,430$ 22,536,457$ 22,923,956$ 25,275,541$ 26,435,155$ 27,898,910$ 31,321,416$ 31,947,819$ Percentage of DistributionSt. Joseph County 38.40% 39.05% 37.09% 35.44% 36.91% 36.85% 36.36% 35.78% 34.83% 35.34%Townships 4.38% 4.65% 5.30% 5.52% 4.16% 4.23% 5.83% 6.08% 7.65% 6.19%City of South Bend - Civil City 32.43% 30.53% 31.67% 33.33% 33.64% 33.57% 33.12% 33.25% 32.78% 33.75%City of South Bend - Redevelopment 0.76% 0.71% 0.78% 0.82% 0.59% 0.64% 0.40% 0.64% 0.61% 0.39%Other Cities & Towns 13.32% 13.77% 13.40% 13.65% 13.68% 13.37% 13.27% 13.20% 13.15% 13.51%Libraries 7.44% 8.12% 8.85% 8.34% 8.07% 8.41% 8.11% 8.17% 8.11% 8.04%Special Districts 3.27% 3.17% 2.91% 2.90% 2.95% 2.93% 2.91% 2.88% 2.87% 2.77%Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%(1) A portion of the county option income tax is used for property tax relief through homestead credits for residential property owners.Source - State of Indiana Department of Local Government Finance COIT Distribution ReportsTotal County Income Tax Distributions by Taxing UnitLast Ten Years255
City of South Bend, Indiana
Ten Largest Water Customers
Percentage of
Total Water
2018 Operating Usage
Name Revenue Revenue CCF*
South Bend Community School Corporation 153,725 0.92% 99,555
Memorial Hospital of South Bend 121,561 0.72% 87,523
Irish Hills Apartments 111,845 0.67% 80,481
South Bend Parks Department 86,245 0.51% 61,819
Indiana University South Bend 80,673 0.48% 46,685
Honeywell Aerospace Company 73,525 0.44% 39,187
Indian Springs Apartments and Townhomes 70,679 0.42% 46,279
Housing Authority of South Bend 66,280 0.40% 34,843
St Joseph County Maintenance Department 56,162 0.33% 56,207
Holy Cross Care Services 43,519 0.26% 35,615
Total of Ten Largest Water Customers 864,214$ 5.15%
Total for Operating Revenue for Water Works 16,775,158$ 100.00%
*Hundreds of Cubic Feet
Source: City of South Bend Water Utility
December 31, 2018
256
City of South Bend, IndianaTen Largest Sewage Works CustomersDecember 31, 2018Percentage ofHeavy Total WaterMetered Demand 2018 Sewer UsageNameRevenueSurchargeRevenueRevenueCCF*I/NTEK Plant2,115,130$ -$ 2,115,130$ 5.21% 734,505 University of Notre Dame1,321,988 - 1,321,988 3.25% 525,074 Noble Americas South Bend Ethenol710,257 - 710,257 1.75% 224,354 Memorial Hospital389,610 - 389,610 0.96% 74,857 South Bend Community School Corp371,912 - 371,912 0.92% 65,540 Honeywell Aerospace Co245,749 - 245,749 0.61% 37,130 Irish Hills Apartments242,538 - 242,538 0.60% 59,696 Indian Springs Apartments and Townhomes226,426 - 226,426 0.56% 39,638 Town of New Carlisle226,224 - 226,224 0.56% 64,637 Indiana University South Bend210,559 - 210,559 0.52% 30,677 Total of Ten Largest Sewer Customers6,060,393$ -$ 6,060,393$ 14.92%Total Operating Revenue for Wastewater40,616,333$ *Hundreds of Cubic FeetSource: City of South Bend Sewage Works Utility257
City of South Bend, Indiana
Gasoline Tax Collections - Cash Basis
December 31, 2018
LR&S MVH Total Gas %
Year Fund Fund Tax Change
2009 1,045,477 2,954,086 3,999,563 -2.93%
2010 1,064,149 2,922,165 3,986,314 -0.33%
2011 1,030,958 2,951,072 3,982,030 -0.11%
2012 1,022,508 2,786,592 3,809,100 -4.34%
2013 1,001,871 3,006,122 4,007,993 5.22%
2014 1,017,383 3,682,329 4,699,712 17.26%
2015 1,045,516 3,679,371 4,724,887 0.54%
2016 1,046,446 3,640,561 4,687,007 -0.80%
2017 1,334,565 3,829,167 5,163,732 10.17%
2018 1,827,580 4,717,972 6,545,552 26.76%
Source: City Accounting Records
Distributions of gas tax revenue are made monthly by the Indiana Department of
Revenue 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 of Indiana.
The formula takes into account population, road and street mileage and other
factors. Gas tax revenue was declining in prior years due to the economy and
more fuel efficient vehicles, however, due to an improvement in the economy
and temporary increase in state funding for two years, total gas tax increased in
2014. Gas tax remained consistent in 2016. Legislation passed by the Indiana
General Assembly in 2017 to increase gas tax caused large increase seen in
2018.
Last Ten Fiscal Years
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000 Gasoline Tax
LR&S
Fund
MVH
Fund
Total
Gas Tax
258
City of South Bend, Indiana
Wheel and Excise Surtax Collections (Cash Basis)
Last Ten Years
2018 %
Year Wheel Tax Change
2009 1,893,982 -7.19%
2010 1,975,397 4.30%
2011 1,863,283 -5.68%
2012 1,795,538 -3.64%
2013 2,045,213 13.91%
2014 1,637,707 -19.92%
2015 2,135,441 30.39%
2016 2,006,547 -6.04%
2017 2,211,731 10.23%
2018 2,152,758 -2.67%
Source: City of South Bend Accounting Records
Effective January 1, 2004, St. Joseph County enacted a wheel tax and
annual license excise surtax as allowed by Indiana State law to provide
additional funding for road maintenance and repair. Indiana 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 Indiana Bureau of
Motor Vehicles, remitted to the County and distributed monthly to the local
units based on population and road miles.
Increase in the 2015 wheel tax due to 13 months of taxes being collected
during the year (September 2014 - September 2015). Prior year tax
collections were several months behind.
259
City of South Bend, Indiana Hotel/Motel Tax Revenue - Cash Basis - City DistributionsLast Ten Fiscal Years------------------------------------Paid to City of South Bend-----------------------------------------------------------Direct Payments----------------------- Century Professional Cumulative 2008 Century CenterSubtotal: 1992 Century 2008OtherCenter Sports Develop. Capital Impr. Century Center Energy Paid to City Center Century Center Century Center Total Hotel/%YearFundFundFundBondsDebt Servof South BendBondsBondsProjectsMotel TaxChange2009 1,347,651 530,137 150,000 - 2,027,788 - 198,500 265,258 2,491,546 -24.22%2010 1,313,152 521,800 150,000 399,000 2,383,952 - - 97,000 2,480,952 -0.43%2011 1,313,436 494,325 150,000 400,000 2,357,761 - - - 2,357,761 -4.97%2012 1,313,436 489,152 150,000 398,000 2,350,588 - - - 2,350,588 -0.30%2013 1,313,436 - 150,000 398,500 1,861,936 - - - 1,861,936 -20.79%2014 1,313,450 - 150,000 400,000 1,863,450 - - 457,739 2,321,189 24.67%2015 1,313,450 - 150,000 492,000 1,955,450 - - 976,855 2,932,305 26.33%2016 1,313,450 - 150,000 396,000 1,859,450 - - 713,601 2,573,051 -12.25%2017 1,275,000 - 150,000 394,000 1,819,000 - - 546,965 2,365,965 -8.05%2018 1,275,000 395,000 221,437 1,891,437 687,192 2,578,629 8.99%Source: City of South Bend Accounting Records and Saint Joseph County Auditor's OfficeThe hotel/motel tax fund also supports other activities not included in the City of South Bend's financial statements such as the South Bend/Mishawaka Convention and Visitors Bureau. The total distribution of hotel/motel tax during 2017 to all organizations was $4,416,002. The cash balance in the County Hotel/Motel Tax Fund was $5,453,192 at December 31, 2017.The hotel/motel tax was enacted in 1973 and the current tax rate is 6%. The tax is accounted for in a fund of the Saint Joseph County government and is administered by the 11 member Saint Joseph County Board of Managers for Hotel-Motel Tax. Appointments to the Board of Managers are made by the Mayors of South Bend and Mishawaka and the Saint Joseph County Commissioners.Proceeds from the hotel/motel tax fund are budgeted and distributed annually to important economic development and tourism projects in the County. South Bend receives distributions for the operations, maintenance and debt service of Century Center (convention center), the Cumulative Capital Development Fund (used for repayment of 1994 Century Center Bonds), repayment of a 2008 Century Center Bond and other capital projects. Hotel/Motel tax will also be used to pay the 2015 Energy Conservation Bond which was issued by the City for the energy improvements made at the Century Center in 2015.CenturyCenterFundCumulativeCapital Impr.Fund2008Century CenterBonds260
City of South Bend, Indiana
Professional Sports Development (PSDA) Tax - Cash Basis
Total PSDA %
Year Tax Change
2009 617,304 55.54%
2010 640,760 3.80%
2011 409,020 -36.17%
2012 721,763 76.46%
2013 597,111 -17.27%
2014 551,252 -7.68%
2015 628,261 13.97%
2016 760,390 21.03%
2017 409,659 -46.13%
2018 - 0.00%
Source: City of South Bend Accounting Records
PSDA tax revenue increased in 2009 primarily due to the increase in the State of Indiana sales tax rate from 6% to 7% and the increase in local
option income taxes from .8% to 1.75% as a consequence of property tax reform. PSDA tax revenue decreased in 2011 due to delays in
payments in amounts owed by the State until 2012. The decrease PSDA tax revenues in 2014 were due to a delay in payments from the state
whereas the increase in 2015 is due to 12 months of receipts being deposited.
In prior years, PSDA tax revenue has been used to fund the College Football Hall of Fame Capital Fund. PSDA tax revenue is pledged to pay
debt service on 2010 Coveleski Stadium Taxable Revenue bonds in the amount of $4,980,000 issued on December 23, 2010. The bond
proceeds were used to make certain capital improvements to the City-owned facility. The operations of the minor league baseball team (South
Bend Cubs) in the stadium accounts for the majority of PSDA tax revenue earned each year.
Last Ten Fiscal Years
The Professional Sports Development Area (PSDA) tax is a combination of Indiana state income tax withholding, local income tax withholding
and sales tax withholding from businesses and employees in South Bend's designated PSDA area, which includes the College Football Hall of
Fame, Century Center, Coveleski Stadium, Morris Performing Arts Center, Palais Royale Ballroom and Studebaker National Museum. South
Bend's PSDA area was formed on November 3, 1997 and expires on December 31, 2027. PSDA capture of state sales and income taxes ended
in 2017. The City expects one more payment of PSDA tax to be received in 2019.
The PSDA taxes are collected by the Indiana Department of Revenue and are remitted on a monthly basis to Saint Joseph County which issues
a check to the City of South Bend. There are currently four professional sports development areas in the State--South Bend, Indianapolis/Marion
County, Evansville and Ft. Wayne.
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Dollars
Year
PSDA Tax Collections - Ten Year Trend
261
City of South Bend, Indiana
Cable Television Franchise Fee Collections - Cash Basis
Last Ten Years
Total %
Year Comcast AT&T Franchise Fees Change
2009 702,048 41,043 743,091 7.01%
2010 817,023 131,263 948,286 27.61%
2011 677,949 176,586 854,535 -9.89%
2012 691,586 192,621 884,207 3.47%
2013 736,071 191,529 927,600 4.91%
2014 717,156 238,309 955,465 3.00%
2015 723,676 281,873 1,005,549 5.24%
2016 749,565 256,611 1,006,176 0.06%
2017 771,128 156,394 927,522 -7.82%
2018 714,471 226,562 941,033 1.46%
Source: City of South Bend Accounting Records
Pursuant to Indiana State law, the City of South Bend receives video franchise fees in the amount of 5%
of gross revenue for cable operations in the City. The payments are made to the City on a quarterly
basis. The franchise agreement with Comcast was effective October 19, 1998 and the franchise
agreement with AT&T was effective January 1, 2009.
The video franchise fee revenue is deposited in the General Fund and is used for general operating
costs. A portion of the proceeds ($43,000) are spent on support of the local public access channel.
Under Indiana State law, the City is required to submit an Annual Franchise Fee Report (State Form
55122) summarizing franchise fee revenue received during the year and the purpose for which the
revenue was expended. The report must be file with the Indiana Utility Regulatory Commission by March
1st of the following year.
262
Debt Capacity
These schedules contain information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.
263
City of South Bend, Indiana
Computation of Legal Debt Margin
ESTIMATED December 31, 2018
Civil City
Net Assessed Valuation (2018 pay 2019) of Taxable Property in South Bend 2,498,376,757$
Debt limit: 2% of one third thereof 16,655,845
Less Bonds subject to limitation:
Economic Development Income Tax Bonds of 2015 (Parks Bond)(4,980,000)
Economic Development Income Tax Bonds of 2018 (Zoo Bond)(3,440,000)
General Obligation Bonds, Series 2018 (Fire Station #9)(4,970,000)
Issuance Margin 3,265,845$
Percentage of Debt to Debt Limit 80.39%
Park District
Net Assessed Valuation (2018 pay 2019) of Taxable Property in South Bend 2,498,376,757$
Debt limit: 2% of one third thereof 16,655,845
Less Bonds subject to limitation:
Park District Bonds, Series 2017 (A-K)(13,725,000)
Issuance Margin 2,930,845$
Percentage of Debt to Debt Limit 82.40%
Redevelopment District
Net Assessed Valuation (2018 pay 2019) of Taxable Property in South Bend 2,498,376,757$
Debt limit: 2% of one third thereof 16,655,845
Less Bonds subject to limitation:
Special Taxing District Bonds of 2014 (1,365,000)
Redevelopment District Bonds of 2018 (TIF Parks Bond) (11,590,000)
Issuance Margin 3,700,845$
Percentage of Debt to Debt Limit 77.78%
A 2% debt limit is established by the Constitution of the State of Indiana. This limit is established for general
obligation bonds, Economic Development Income Tax revenue bonds, tax revenue notes and other types of
indebtedness. This limitation does not include revenue bonds payable from governmental funds (excluding
EDIT bonds) shown in the general long term debt account group. Indiana law allows the creation of separate
municipal corporations to provide vital governmental functions. Each of these municipal corporations (including
the Redevelopment Authority and Redevelopment Commission) has its own 2% debt limit, even if they have the
same or similar boundaries.
264
City of South Bend, Indiana Legal Debt Margin Information2009201020112012201320142015201620172018Civil CityDebt Limit (1) 17,792,583$ 16,356,704$ 15,495,323$ 15,599,467$ 15,579,379$ 14,731,511$ 15,068,462$ 15,181,132$ 16,109,715$ 16,655,845$ Total Net Debt Applicable To Limit 5,500,000 9,850,000 8,910,000 7,650,000 6,335,000 4,970,000 7,270,000 5,835,000 5,190,000 13,390,000 Debt Margin 12,292,583 6,506,704 6,585,323 7,949,467 9,244,379 9,761,511 7,798,462 9,346,132 10,919,715 3,265,845 Percentage of Debt Limit 30.91% 60.22% 57.50% 49.04% 40.66% 33.74% 48.25% 38.44% 32.22% 80.39%Park DistrictDebt Limit (1)17,792,583$ 16,356,704$ 15,495,323$ 15,599,467$ 15,579,379$ 14,731,511$ 15,068,462$ 15,181,132$ 16,109,715$ 16,655,845$ Total Net Debt Applicable To Limit- - - - - - - - 14,075,000 13,725,000 Debt Margin17,792,583 16,356,704 15,495,323 15,599,467 15,579,379 14,731,511 15,068,462 15,181,132 2,034,715 2,930,845 Percentage of Debt Limit0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 87.37% 82.40%Redevelopment DistrictDebt Limit (1)17,792,583$ 16,356,704$ 15,495,323$ 15,599,467$ 15,579,379$ 14,731,511$ 15,068,462$ 15,181,132$ 16,109,715$ 16,655,845$ Total Net Debt Applicable To Limit 5,010,000 4,715,000 4,085,000 4,085,001 3,405,000 3,010,000 2,615,000 2,210,000 1,795,000 12,955,000 Debt Margin12,782,583 11,641,704 11,410,323 11,514,466 12,174,379 11,721,511 12,453,462 12,971,132 14,314,715 3,700,845 Percentage of Debt Limit28.16% 28.83% 26.36% 26.19% 21.86% 20.43% 17.35% 14.56% 11.14% 77.78%(1) A 2% of net assessed value debt limit has been established by the Constitution of the State of Indiana for certain 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 governmental or proprietary funds.Last Ten Fiscal Years265
City of South Bend, IndianaRatios of Outstanding Debt by TypeSouth Bend South BendGeneralTotal Debt Estimated DebtFiscal Obligation Revenue Mortgage Notes/Loans Capital Revenue Mortgage Notes/Loans Capital Primary Estimated Per Personal Percent ofYearBondsBondsBondsPayableLeasesBondsBondsPayableLeasesGovernmentPopulation (1)CapitaIncome (2)Income2009- 113,975,000 23,061,148 8,470,308 6,214,206 68,225,000 829,020 16,145,358 893,233 237,813,273 106,192 2,239 3,679,658,992 6.46%2010- 111,510,000 21,117,295 6,323,199 5,299,341 72,655,000 717,705 16,755,369 799,402 235,177,311 101,168 2,325 3,505,572,368 6.71%2011- 101,472,431 19,724,490 4,431,871 7,510,749 88,655,000 660,510 15,542,372 1,077,642 239,075,065 101,168 2,363 3,371,120,096 7.09%2012- 96,410,000 17,883,530 4,953,639 8,336,120 117,650,000 601,470 13,848,901 3,641,362 263,325,022 101,168 2,603 3,371,120,096 7.81%2013- 90,172,826 23,079,781 3,030,554 8,777,238 118,121,963 546,973 4,121,010 3,831,933 251,682,278 101,168 2,488 3,371,120,096 7.47%2014- 84,862,512 21,331,548 1,617,491 8,481,375 111,209,874 480,604 3,794,664 3,307,802 235,085,870 101,168 2,324 3,371,120,096 6.97%2015- 107,815,890 13,904,973 4,831,752 8,491,407 102,871,921 5,851,565 3,458,899 4,411,042 251,637,449 101,168 2,487 3,371,120,096 7.46%2016- 99,040,132 12,091,550 4,647,381 10,929,075 95,477,047 5,556,865 2,582,205 6,585,123 236,909,378 101,168 2,342 3,492,622,864 6.78%201714,081,478 111,887,531 10,224,972 4,437,115 9,795,612 87,219,814 5,255,484 2,398,821 7,456,169 252,756,996 101,168 2,498 3,492,622,864 7.24%201818,737,645 120,483,913 8,300,854 4,108,822 12,832,195 80,178,104 4,951,979 2,231,783 7,994,705 259,820,000 101,168 2,568 3,492,622,864 7.44%Percent of Total Debt7.21% 46.37% 3.19% 1.58% 4.94% 30.86% 1.91% 0.86% 3.08% 100.00%Sources: City of South Bend Comprehensive Annual Financial Reports(1) U.S. Census Bureau, 2010 Census information (http://factfinder.census.gov/). 2016 information not available.(2) The City's estimated personal income is computed as City population x City of South Bend Median Household Income from U.S. Census Bureau, 2012-2016 American Community Survey 5-Year Estimates (http://factfinder.census.gov/) Last Ten Fiscal YearsGovernmental ActivitiesBusiness-Type Activities0 $20 M $40 M $60 M $80 M $100 M $120 M $140 M $160 M $180 M2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Governmental Activities DebtCapitalLeasesNotes/LoansPayableMortgageBondsRevenueBondsGeneralObligationBonds $20 M $40 M $60 M $80 M $100 M $120 M $140 M2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Business-Type Activities DebtCapitalLeasesNotes/LoansPayableMortgageBondsRevenueBonds266
City of South Bend, IndianaComputation of Direct and Overlapping Debt December 31, 2018Percentage AmountRatio of Debt/ Ratio of Debt/Gross Applicable to Applicable to Debt Per Net Assessed PersonalDebtSouth BendSouth BendCapitaValueIncomeDirect Debt:City of South BendGeneral Obligation Bonds 18,737,645$ 100.00% 18,737,645$ Revenue Bonds - Governmental Activities 120,483,913 100.00% 120,483,913$ Mortgage Bonds - Governmental Activities 8,300,854 100.00% 8,300,854 Notes Payable - Governmental Activities 4,108,822 100.00% 4,108,822 Capital Leases - Governmental Activities 12,832,195 100.00% 12,832,195 Total Direct Debt and Lease Obligation Debt164,463,429 1,626$ 6.81% 3.50%Overlapping Debt (1)South Bend Community School Corporation86,458,200$ 52.85% 51,999,309$ South Bend Public Transport- 62.41% 234,038 St. Joseph County Public Library5,840,000 49.51% 1,220,422 St. Joseph County Airport Authority9,495,000 28.17% 3,042,360 St. Joseph County 29,645,000 28.17% 13,570,838 St. Joseph County Solid Waste Management- 28.17% 125,382 Penn-Harris-Madison School Corporation48,507,671 2.67% 955,117 Mishawaka-Penn-Harris Public Library- 2.19% 77,198 Total Overlapping and Underlying Direct Debt and Lease Obligations71,224,664 704$ 2.95% 1.51%Total Direct Debt and Lease Obligation Debt and Overlapping and 235,688,093$ 2,330$ 9.75% 5.01%Underlying Direct Debt and Lease ObligationsRatio FactorsNet Assessed Valuation (2017 payable 2018) 2,416,457,221 Population - 2010 Census 101,168 South Bend Median Household Income 2016 46,489 Estimated South Bend Total Personal Income (2 x 3) 4,703,199,152 (1) Overlapping debt percentages are based on the net assessed value of South Bend properties in proportion to the total net assessed value.(2) U.S. Census Bureau, 2010 Census information (http://factfinder.census.gov/). 2016 information not available.(3) U.S. Census Bureau, 2012-2016 American Community Survey 5-Year Estimates (http://factfinder.census.gov/)267
City of South Bend, Indiana
Last Ten Fiscal Years
December 31, 2018
Total Ratio of Debt Service
Fiscal Total Debt Governmental Fund To Governmental Fund
Year Principal Interest Service Expenditures Expenditures
2009 - - - 142,962,710 0.00%
2010 - - - 150,758,014 0.00%
2011 - - - 172,397,679 0.00%
2012 - - - 162,460,000 0.00%
2013 - - - 152,889,475 0.00%
2014 - - - 154,300,097 0.00%
2015 - - - 172,658,733 0.00%
2016 - - - 170,976,084 0.00%
2017 - - - 174,542,237 0.00%
2018 426,149 288,967 715,116 186,199,998 0.38%
Source - City of South Bend Comprehensive Annual Financial Reports
Ratio of Annual Debt Service Expenditures For
General Obligation Bonded Debt to Total
Governmental Fund Expenditures
268
City of South Bend, IndianaPercent of NetGross Debt Service Net GO Bonded Debt Net GOTax Year/ Net Assessed General Obligation Monies General Obligation To Net Assessed Bonded DebtCollection YearPopulation (1)ValueBonded DebtAvailableBonded DebtValuePer Capita2007/2008104,905 2,976,080,798$ -$ -$ -$ 0.00%-$ 2008/2009106,192 2,668,887,419 - - - 0.00%- 2009/2010101,168 2,453,505,573 - - - 0.00%- 2010/2011101,168 2,324,451,862 - - - 0.00%- 2011/2012101,168 2,380,874,608 - - - 0.00%- 2012/2013101,168 2,371,087,697 - - - 0.00%- 2013/2014101,168 2,209,726,672 - - - 0.00%- 2014/2015101,168 2,260,269,318 - - - 0.00%- 2015/2016101,168 2,277,169,743 - - - 0.00%- 2016/2017101,168 2,327,500,241 14,081,478 14,081,478 0.61%139 2017/2018101,168 2,416,457,221 18,737,645 - 18,737,645 0.78%185 The City of South Bend has no General Obligation bonded debt.(1) U.S. Census Bureau, 2010 Census information (http://factfinder.census.gov/). 2017 information not available. Last Ten Fiscal YearsRatio of Net General Obligation Bonded Debt to Net Assessed Valuation and Net Bonded Debt Per Capita269
Projected 2011 B 20132015 Hotel/Motel Century Center Century Center Century CenterEstimatedTaxRefunding Refunding Energy Conservation Total Annual ExcessEstimatedYearRevenuesBonds (1)BondsBondsDebt ServiceFundsCoverage2019 4,893,930 - 395,000 162,702 557,702 4,336,228 877.52%2020 4,942,869 - 396,500 280,090 676,590 4,266,279 730.56%2021 4,992,298 - 397,000 285,614 682,614 4,309,684 731.35%2022 5,042,221 - 396,500 291,274 687,774 4,354,447 733.12%2023 5,092,643 - 395,000 297,175 692,175 4,400,468 735.75%2024 5,143,570 - 394,500 303,221 697,721 4,445,849 737.20%2025 5,195,005 - 396,000 309,315 705,315 4,489,690 736.55%2026 5,246,955 - 283,500 315,561 599,061 4,647,894 875.86%2027 5,299,425 - 84,500 321,964 406,464 4,892,961 1303.79%2028 5,352,419 - - 328,529 328,529 5,023,890 1629.21%2029 5,405,943 - - 335,259 335,259 5,070,684 1612.47%2030 5,460,003 - - 342,159 342,159 5,117,844 1595.75%2031 5,514,603 - - 349,334 349,334 5,165,269 1578.60%2032 5,569,749 - - 176,508 176,508 5,393,241 3155.52%2033 5,625,446 - - - - 5,625,446 n/aTotal78,777,080$ -$ 3,138,500$ 4,098,705$ 7,237,205$ 71,539,875$ Source: Saint Joseph County Hotel/Motel Tax Board financial reportsCity of South Bend Debt Schedules(1) $150,000 paid from hotel/motel tax revenue. The balance paid from City of South Bend revenue sources.City of South Bend, IndianaSaint Joseph County Hotel/Motel Tax BoardStatement of Estimated Cash Flow and Debt Service Coverage270
City of South Bend, Indiana Last Ten YearsGrossNet RevenueOperating Operating Available forDebtYearRevenueExpenses (1)Debt ServicePrincipalInterestTotalCoverage2009 13,471,890 8,838,405 4,633,485$ 2,481,871 754,108 3,235,979$ 143.19%2010 13,513,995 8,560,390 4,953,605 2,605,840 937,293 3,543,133 139.81%2011 14,032,074 9,301,552 4,730,522 2,729,925 823,265 3,553,190 133.13%2012 14,190,243 9,021,274 5,168,969 821,847 823,944 1,645,791 314.07%2013 13,783,701 10,665,913 3,117,788 1,241,768 809,673 2,051,441 151.98%2014 14,373,176 10,105,709 4,267,467 1,251,588 769,025 2,020,613 211.20%2015 14,204,285 10,651,321 3,552,964 1,319,285 732,394 2,051,679 173.17%2016 15,091,372 12,081,699 3,009,673 977,113 623,226 1,600,339 188.06%2017 15,283,325 11,421,026 3,862,299 1,606,652 623,909 2,230,561 173.15%2018 16,767,283 11,766,084 5,001,199 394,873 319,700 714,573 699.89%(1) Operating expenses exclude depreciation.Operating revenue used to make debt service payments is obtained primarily through monthly user charges to waterSource - City of South Bend Comprehensive Annual Financial Report. Schedule of Revenue Bond CoverageWater Utility BondsDebt Service Requirements271
City of South Bend, Indiana Last Ten YearsGrossNet RevenueOperating Operating Available forDebtYearRevenueExpenses (1)Debt ServicePrincipalInterestTotalCoverage200924,313,147 17,504,825 6,808,322$ 3,130,000 2,557,940 5,687,940$ 119.70%201025,444,404 12,193,363 13,251,041 3,385,205 2,314,275 5,699,480 232.50%201129,023,547 14,869,660 14,153,887 3,867,584 2,737,027 6,604,611 214.30%201230,963,483 13,777,728 17,185,755 4,736,450 3,489,057 8,225,507 208.93%201331,926,078 11,526,554 20,399,524 5,080,425 3,354,156 8,434,581 241.86%201434,009,117 14,313,967 19,695,150 6,320,626 3,376,045 9,696,671 203.11%2015 (3) 36,635,501 13,557,598 23,077,903 4,691,336 3,419,351 8,110,687 284.54%201639,061,562 16,920,370 22,141,192 7,522,453 2,342,132 9,864,586 224.45%201738,794,212 22,942,677 15,851,535 7,666,400 2,197,813 9,864,213 160.70%201839,931,429 16,218,116 23,713,313 7,821,444 2,033,062 9,854,506 240.63%(1) Operating expenses exclude depreciation.(2) Two large Sewage Works revenue bonds were issued during 2007 with principal and interests payments beginning in 2008. These bonds are part of the City of South Bend's long term combined sewer overflow (CSO) control plan.(3) Sewer bonds were refunded in 2015 and the principal repayments are not included in the 2015 principal total.Operating revenue used to make debt service payments is obtained primarily through monthly user charges to sewer customers.Source - City of South Bend Comprehensive Annual Financial ReportSchedule of Revenue Bond CoverageWastewater Utility BondsDebt Service Requirements272
City of South Bend, IndianaMunicipal Sewage Works2009201020112012201320142015201620172018Capacity (MGD)48 48 48 48 48 48 48 48 48 48 Average Daily Flow38.42 30.86 35.80 31.77 30.69 32.00 30.20 43.87 35.80 38.47 Peak Flow68.80 62.00 72.50 63.70 62.50 68.50 57.70 67.80 62 71 Annual Flow (MG)14,024 11,264 13,068 11,596 11,203 11,677 11,023 16,014 13,067 14,042 Number of Customers - South Bend Municipal Sewage WorksTotal NumberYearof Customers200936,664 201038,455 201139,027 201239,068 201339,322 201439,461 201539,763 201640,073 201740,543 201840,679 Source: City of South Bend Environmental Services DepartmentAnnual Wastewater Flow Data273
City of South Bend, Indiana
Statement of City-Owned Utility Debt
December 31, 2018
South Bend Municipal Sewage Works
Sewage Works State Revolving Fund (SRF) Loan of 2009 1,920,133$
Sewage Works Revenue Bonds of 2010 6,345,000
Sewage Works Revenue Bonds of 2011 15,480,000
Sewage Works Revenue Bonds of 2012 18,755,000
Sewage Works Revenue Bonds of 2013 A 4,100,000
Sewage Works Refunding Revenue Bonds of 2015 19,850,000
Total Sewage Utility Debt 66,450,133
South Bend Municipal Waterworks
Waterworks Revenue Bonds of 2009, Series A
State Revolving Fund (SRF) Loan 311,650$
Waterworks Revenue Bonds of 2009, Series B
Indiana Bond Bank 4,085,000
Waterworks Revenue Bonds of 2012 2,005,000
Waterworks Revenue Refunding Bonds of 2012, Series B 6,570,000
Waterworks Refuding Bonds of 2016 2,895,000
Total Water Utility Debt 15,866,650
Total Utility Debt 82,316,783$
Source: City of South Bend Finance Department
274
City of South Bend, Indiana
Operating Revenues 39,931,429$
Less: Operation and Maintenance Expenses (Net of Depreciation)(16,218,116)
Net Revenues Available for Debt Service 23,713,313
Estimated Combined Annual Debt Service 9,148,379
Coverage - $14,564,934$
Coverage - %259.21%
Estimated Debt Service Coverage Calculation of Sewage Works
December 31, 2018
275
City of South Bend, Indiana
Operating Revenues 16,767,283$
Less: Operation and Maintenance Expenses (Net of Depreciation)(11,766,084)
Net Revenues Available for Debt Service 5,001,199
Estimated Combined Maximum Annual Debt Service 3,192,871
Coverage - $1,808,328$
Coverage - %156.64%
December 31, 2018
Estimated Debt Service Coverage Calculation of Water Utility
276
City of South Bend, Indiana
Projected City of South Bend COIT Revenue
0.6% COIT Tax Rate
Levy is used to Distribute COIT
Projected
St. Joseph County COIT Amount
Year of Projected Projected Available For
Collection Distribution COIT Debt Service
2019 35,539,674$ 34.18%12,148,294$
2020 36,250,467 34.18%12,391,260
2021 36,975,477 34.18%12,639,085
2022 37,714,986 34.18%12,891,867
2023 38,469,286 34.18%13,149,704
2024 39,238,672 34.18%13,412,698
2025 40,023,445 34.18%13,680,952
2026 40,823,914 34.18%13,954,571
2027 41,640,392 34.18%14,233,663
2028 42,473,200 34.18%14,518,336
Total 133,020,430$
Source: Department of Local Government Finance (DLGF)
Estimated 2% increase to COIT distributions due to improving economic conditions.
Starting in 2017, COIT is part of the new Local Income Tax (LIT) category.
277
City of South Bend, Indiana
Projected City of South Bend CEDIT Revenue
0.4% CEDIT Tax Rate
Levy is used to Distribute CEDIT
Projected
St. Joseph County CEDIT Amount
Year of Projected Projected Available For
Collection Distribution CEDIT Debt Service
2019 28,586,914 41.39%11,831,812
2020 29,158,652 41.39%12,068,448
2021 29,741,825 41.39%12,309,817
2022 30,336,662 41.39%12,556,014
2023 30,943,395 41.39%12,807,134
2024 31,562,263 41.39%13,063,276
2025 32,193,508 41.39%13,324,542
2026 32,837,378 41.39%13,591,033
2027 33,494,126 41.39%13,862,854
2028 34,164,008 41.39%14,140,111
Total 129,555,040$
Source: Department of Local Government Finance (DLGF)
Estimated 2% increase to CEDIT distributions due to improving economic conditions. Starting in
2017, CEDIT is part of the new Local Income Tax (LIT) category.
278
City of South Bend, Indiana
Projected City of South Bend LOIT Revenue
.25% LOIT Tax Rate
Projected
St. Joseph County PS LOIT Amount
Year of Projected Projected Available For
Collection Distribution CEDIT Debt Service
2019 17,784,064$ 48.14%8,560,555$
2020 18,139,745 48.14%8,731,766
2021 18,502,540 48.14%8,906,401
2022 18,872,591 48.14%9,084,529
2023 19,250,043 48.14%9,266,220
2024 19,635,044 48.14%9,451,544
2025 20,027,745 48.14%9,640,575
2026 20,428,299 48.14%9,833,387
2027 20,836,865 48.14%10,030,055
2028 21,253,603 48.14%10,230,656
Total 93,735,689$
Source: Department of Local Government Finance (DLGF)
Estimated 2% increase to PS LOIT distributions due to improving economic conditions. Starting in 2017, PS
LOIT is part of the new Local Income Tax (LIT) category.
279
City of South Bend, IndianaProjected Redevelopment COITFirst Mortgage First MortgageCity of South Bend District Lease Rental Revenue Revenue RefundingRevenue BondsEstimatedCOIT Taxable Revenue Refunding Bonds of 2010 Bonds, Series 2012 Series 2013 Total Lease Excess EstimatedYearRevenuesBonds, Series 2010Lease PaymentsLease PaymentsLease PaymentsPaymentsFundsCoverage201910,881,819$ 353,970$ 671,144$ 1,557,920$ 398,830$ 2,981,864$ 7,899,955$ 364.93%202011,099,456 - 672,500 1,555,880 396,705 2,625,085 8,474,371 422.82%202111,321,445 - 336,600 1,566,750 399,355 2,302,705 9,018,740 491.66%202211,547,874 - - 1,555,000 396,780 1,951,780 9,596,094 591.66%202311,778,831 - - 779,625 398,980 1,178,605 10,600,226 999.39%202412,014,408 - - - 406,543 406,543 11,607,865 2955.26%202512,254,696 - - - 411,493 411,493 11,843,203 2978.11%202612,499,790 - - - 410,643 410,643 12,089,147 3043.96%202712,749,786 - - - 414,149 414,149 12,335,637 3078.55%202813,004,781 - - - 421,605 421,605 12,583,176 3084.59%202913,264,877 - - - 422,742 422,742 12,842,135 3137.82%203013,530,175 - - - 422,742 422,742 13,107,433 3200.57%203113,800,778 - - - 427,550 427,550 13,373,228 3227.87%203214,076,794 - - - 431,254 431,254 13,645,540 3264.15%203314,358,329 - - - 433,925 433,925 13,924,404 3308.94%203414,645,496 - - - - - 14,645,496 n/a203514,938,406 - - - - - 14,938,406 n/a203615,237,174 - - - - - 15,237,174 n/aTotal233,004,914$ 353,970$ 1,680,244$ 7,015,175$ 6,193,296$ 15,242,685$ 217,762,229$ 1528.63%Note: These payments include principal and interest.Source: City of South Bend Finance DepartmentStatement of Estimated Cash Flow and Debt Service Coverage (COIT)280
City of South Bend, IndianaStatement of Estimated Cash Flow and Debt Service Coverage (CEDIT)Projected2014City of South Bend St. Joseph County 2015EstimatedCEDIT PSAP Revenue Parks/CEDIT Total Lease Excess EstimatedYearRevenuesBondBondPaymentsFundsCoverage201911,028,367$ 199,242$ 382,731$ 581,973$ 10,446,394$ 1895.00%202011,248,934 199,460 381,131 580,591 10,668,343 1937.50%202111,473,913 199,271 374,381 573,652 10,900,261 2000.15%202211,703,391 199,423 372,556 571,980 11,131,412 2046.12%202311,937,459 199,423 375,581 575,005 11,362,454 2076.06%202412,176,208 199,314 368,381 567,696 11,608,512 2144.85%202512,419,732 154,405 381,031 535,436 11,884,296 2319.55%202612,668,127 155,363 373,231 528,594 12,139,533 2396.57%202712,921,490 154,724 375,356 530,080 12,391,410 2437.65%202813,179,919 155,298 377,181 532,479 12,647,440 2475.20%202913,443,518 154,128 383,616 537,744 12,905,774 2499.98%203013,712,388 154,172 384,038 538,210 13,174,179 2547.78%203113,986,636 154,051 388,463 542,514 13,444,122 2578.12%203214,266,369 153,630 387,175 540,805 13,725,563 2637.99%203314,551,696 153,038 389,813 542,851 14,008,845 2680.61%203414,842,730 153,582 391,781 545,364 14,297,366 2721.62%203515,139,584 - 593,094 593,094 14,546,491 2552.65%203615,442,376 - - - 15,442,376 n/a203715,751,224 - - - 15,751,224 n/aTotal251,894,061$ 2,738,526$ 6,679,541$ 9,418,067$ 242,475,994$ 2674.58%Note: These payments include principal and interest.Source: City of South Bend Finance Department281
City of South Bend, Indiana
Estimated Tax Increment Revenue
Erskine Village Project
Estimated 12/13 Estimated
Tax Year / Tax Net Tax Tax Increment
Collection Year Increment (1)Rate (2)Revenue
2012/2013 1,311,129$ 4$ 1,311,129$
2013/2014 9,175 - 9,175
2014/2015 19,183 - 19,183
2015/2016 - - -
2016/2017 - - -
2017/2018 - - -
(1) The City passed back incremental assessed value for payable year 2013.
The City will make a yearly decision on the pass back of incremental
assessed value. The Redevelopment Commission released TIF for
2013 pay 2014, 2015 pay 2016, 2016 pay 2017,and 2017 pay 2018.
Source: City of South Bend Finance Department
282
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
283
City of South Bend, IndianaSouth BendSouth BendMetropolitan Metro AreaSouth BendCity of City of Percent Area Percent Total Personal Percent Metro Area Percent City of South Bend PercentSouth Bend Increase/ Median Family Increase/ Income (3) Increase/ Per Capita Increase/ South Bend Public School Increase/YearPopulation (1)(Decrease)Income (2)(Decrease)(Millions)(Decrease)Income (3)(Decrease)Median Age (4)Enrollment (5)(Decrease)2009 106,192 2.04% 43,403 -2.25% 10,581 -3.45% 33,151 -3.61%32.3 20,451 -5.82%2010 101,168 -4.73% 40,789 -6.02% 10,788 1.95% 33,819 2.02%33.4 20,066 -1.88%2011 101,168 0.00% 40,873 0.21% 11,447 6.11% 35,867 6.06%33.3 19,467 -2.99%2012 101,168 0.00% 40,873 0.00% 11,948 4.37% 37,505 4.57%33.3 18,982 -2.49%2013 101,168 0.00% 40,873 0.00% 12,196 2.08% 38,265 2.03%33.3 19,680 3.68%2014 101,168 0.00% 34,656 -15.21% 12,887 5.67% 40,342 5.43%33.9 19,308 -1.89%2015 101,168 0.00% 34,656 0.00% 13,560 5.22% 42,362 5.01%34.0 18,680 -3.25%2016 101,168 0.00% 34,523 -0.38% 14,074 3.79% 43,880 3.58%34.9 18,110 -3.05%2017 101,168 0.00% 35,758 3.58% 14,074 0.00% 43,880 0.00%34.9 17,697 -2.28%2018 101,168 0.00% 35,758 0.00% 14,700 4.45% 45,681 4.10%33.4 17,225 -2.67%Sources:(1) U.S. Census Bureau, 2010 Census information (http://factfinder.census.gov/). 2017 information not available.(2) U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates (http://factfinder.census.gov/)(3) Bureau of Local Economic Analysis, South Bend-Mishawaka, IN_MI Metropolitan Area Profile (https://www.bea.gov/). 2017 information not available.(4) U.S. Census Bureau, Profile of General Demographic Characteristics (http://factfinder.census.gov/)(5) Indiana Department of Education, South Bend School Corporation Total Enrollment (http://compass.doe.in.gov/)Demographic StatisticsLast Ten YearsPersonal income includes net earnings by place of residence; dividends, interest, and rent; and personal current transfer receipts received by the residents of South Bend-Mishawaka.Metropolitan statistical area (MSA)- An area consisting of a core county or counties in which lies an urban area having a population of at least 50,000, plus adjacent counties having a high degree of social and economic integration with the core counties as measured through commuting ties.284
City of South Bend, Indiana
December December December
South Bend South Bend South Bend
Metropolitan Percent Metropolitan Percent Metropolitan
Area Labor Increase/Area Increase/ Unemployment
Year Force (1)(Decrease)Unemployment (1)(Decrease)Rate (1)
2009 154,409 -3.48%17,713 120.15%11.47%
2010 155,045 0.41%17,869 0.88%11.53%
2011 155,025 -0.01%15,582 -12.80%10.05%
2012 151,520 -2.26%14,085 -9.61%9.30%
2013 150,796 -0.48%13,021 -7.55%8.63%
2014 152,583 1.19%10,040 -22.89%6.58%
2015 154,598 1.32%7,768 -22.63%5.02%
2016 158,279 2.38%7,176 -7.62%4.53%
2017 157,856 -0.27%5,442 -24.16%3.45%
2018 160,969 1.97%5,988 10.03%3.72%
Source:
Demographic Statistics (Continued)
Last Ten Years
(1) Bureau of Labor Statistics, Local Area Unemployment Statistics: South Bend-Mishwaka IN-MI
Metropolitan Statistical Area (https://www.bls.gov/data/)
Metropolitan statistical area (MSA)- An area consisting of a core county or counties in which lies an urban
area having a population of at least 50,000, plus adjacent counties having a high degree of social and
economic integration with the core counties as measured through commuting ties.
285
City of South Bend, IndianaEmployment By Type and IndustryLast Ten YearsDescription2008200920102011201220132014201520162017Total employment174,085 165,304 163,945 166,847 165,809 165,629 168,314 171,852 175,721 176,231 By Type:Wage and salary employment 144,931 135,840 134,643 136,844 136,390 136,105 138,475 141,683 144,810 145,127 Proprietors employment 29,154 29,464 29,302 30,003 29,419 29,524 29,839 30,169 30,911 31,104 Farm proprietors employment1,331 1,329 1,340 1,342 1,305 1,310 1,303 1,295 1,292 1,277 Nonfarm proprietors employment 27,823 28,135 27,962 28,661 28,114 28,214 28,536 28,874 29,619 29,827 By Industry:Farm employment1,791 1,765 1,758 1,770 1,6851,692 1,686 1,690 1,674 1,633 Nonfarm employment172,294 163,539 162,187165,077164,124163,937166,628170,162 174,047 174,598 Private nonfarm employment 154,068 145,200 143,893 146,880 146,807 147,148 150,006 153,455 157,232 157,803 Forestry, fishing, and related activities (D) (D) 245 270 301 287 (D) (D)(D) (D)Mining105 96 117 105 154 173 (D) (D)(D) (D)Utilities(D) (D) (D) (D) (D) (D) (D) (D)(D) (D)Construction9,257 7,988 6,909 6,928 6,631 6,811 6,827 7,341 7,736 8,216 Manufacturing19,324 16,516 16,280 17,619 17,655 17,139 17,523 18,098 18,444 18,670 Wholesale trade7,962 7,057 7,168 7,250 7,097 6,870 7,265 7,477 7,678 7,064 Retail trade19,141 18,105 17,711 17,813 17,665 17,612 17,735 17,912 18,186 17,968 Transportation and warehousing(D) (D) 4,332 E (D) (D) (D) (D) (D)(D) (D)Information2,556 (D) 2,227 2,080 2,114 2,265 2,266 2,147 2,053 1,993 Finance and insurance7,028 6,988 6,814 7,021 6,796 6,212 6,055 6,143 6,188 6,668 Real estate and rental and leasing6,423 6,128 5,928 6,100 5,986 6,064 6,271 6,225 6,502 6,423 Professional, scientific, and technical services 7,642 E 7,273 E 7,163 E 7,168 E 6,981 E 7,411 7,419 7,805 (D) 8,149 Management of companies and enterprises 1,218 E 1,246 E 1,306 E 1,403 E 1,513 E 2,194 2,331 2,390 (D) 2,801 Administrative and waste management services9,111 8,108 8,524 8,356 7,912 7,785 8,142 8,169 8,657 8,442 Educational services13,254 13,067 13,198 E 13,747 14,121 (D) (D) (D) 15,284 (D)Health care and social assistance20,339 20,882 20,332 E 21,256 21,870 (D) (D) (D) 23,679 (D)Arts, entertainment, and recreation2,839 2,655 2,625 2,811 2,767 2,809 2,749 2,742 2,852 3,132 Accommodation and food services11,647 10,945 11,021 11,576 11,816 12,189 12,348 12,811 13,248 13,200 Other services, except public administration 10,196 (D) 9,728 10,031 10,038 9,939 10,316 10,385 10,569 10,512 Government and government enterprises18,226 18,339 18,294 18,197 17,317 16,789 16,62216,707 16,815 16,795 Federal, civilian 1,223 1,241 1,265 1,090 1,071 1,010 962 944 952 972 Military1,003 1,013 1,003 1,043 1,006 990 1,002 1,023 1,005 972 State and local16,000 16,085 16,026 16,064 15,240 14,789 14,658 14,740 14,858 14,851 State government3,188 3,350 3,448 3,555 3,483 3,272 3,096 3,077 3,109 3,128 Local government12,812 12,735 12,578 12,509 11,757 11,517 11,562 11,663 11,749 11,723 Source: Bureau of Local Economic Analysis (https://www.bea.gov/)* 2018 information not available2 - Excludes limited partners.E The estimate shown here constitutes the major portion of the true estimate.(D) Not shown to avoid disclosure of confidential information, but the estimates for this item are included in the totals. Last updated: November 15, 2018-- revised statistics for 2001-2016.1 - The estimates of employment for 2001-2006 are based on the 2002 North American Industry Classification System (NAICS), a comprehensive, industrial classification system--developed and used by the United States, Canada, and Mexico--that groups establishments according to the similarity of their production processes. The estimates for 2007-2010 are based on the 2007 NAICS. The estimates for 2011 forward are based on the 2012 NAICS.Metropolitan statistical area (MSA)- An area consisting of a core county or counties in which lies an urban area having a population of at least 50,000, plus adjacencounties having a high degree of social and economic integration with the core counties as measured through commuting ties.286
City of South Bend, IndianaLast Ten YearsAmount inBillions St. Joseph Co. IndianaU.S. St. Joseph Co. IndianaU.S.Calendar Personal Personal Personal Personal Personal PersonalYearIncomeIncomeIncomeIncomeIncomeIncome20099,708 225,760 12,493 3.49%4.96%4.15%20109,042 220,157 12,079 -6.86%-2.48%-3.31%20119,144 227,692 12,460 1.14%3.42%3.15%201210,257 256,257 13,998 12.17%12.55%12.35%201310,395 259,524 14,175 1.35%1.27%1.26%201410,967 269,592 14,983 5.50%3.88%5.70%201511,657 279,704 15,711 6.29%3.75%4.86%201611,781 289,164 16,116 1.06%3.38%2.58%201712,472 301,008 16,820 5.87%4.10%4.37%201812,472*312,150 17,572 -100.00%3.70%4.47%4.29%3.67%4.38%3.02%3.84%3.84%Source: Bureau of Local Economic Analysis (https://www.bea.gov/)Note-- All dollar estimates are in current dollars (not adjusted for inflation).Last updated: March 3, 2019-- new estimates for 2016; revised estimates for 2012-2016.* 2018 information not available.Average Annual Growth - Most Recent 5 YearsAverage Annual Growth - Most Recent 10 YearsComparison of Growth Rates in Personal Income for St. Joseph County, The State of Indiana and U.S. Personal IncomeMillions Amount inAnnual Percentage Increase287
City of South Bend, Indiana20182009Number of Percent Number of Percent EmployerType of BusinessEmployeesof TotalRankEmployeesof TotalRankBeacon Health System (Memorial) (2)Health Care7,088 4.40% 1 3,529 2.64% 2 University of Notre DameHigher Education6,535 4.06% 2 4,596 3.44% 1 South Bend Community School Corp (2)Public Schools3,432 2.13% 3 3,130 2.35% 3 Indiana University South BendHigher Education1,400 0.87% 4 1,259 0.94% 8 St. Joseph CountyGovernment1,396 0.87% 5 1,305 0.98% 7 City of South BendGovernment1,285 0.80% 6 1,213 0.91% 9 Four Winds Casino (2)Casino and restaurants1,200 0.75% 7 - 0.00%AM General CorporationManufacturing/Assembly873 0.54% 8 2,400 1.80% 5 Honeywell Aerospace (2)Aerospace Manufacturing 850 0.53% 9 0.00%Press Ganey (2)Health Care Management 688 0.43% 10 0.00%Saint Joseph Health SystemHealth Care2,617 1.96% 4 The Diocese of Fort Wayne/South BendParochial Schools1,403 1.05% 6 Wal-MartRetail Store- 1,111 0.83%10 Total Number of Employees24,747 15.37%22,563 16.91%Total Employees - South Bend Metropolitan Area Labor Force (1)160,969 100.00%133,433 100.00%Source: Crowe Horwath CPAs and conversations with employers(1) Bureau of Labor Statistics, Local Area Unemployment Statistics: South Bend-Mishwaka IN-MI Metropolitan Statistical Area (https://www.bls.gov/data/)Principal Employers - Current and Ten Years AgoDecember 31, 2017288
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides and the activities it
performs.
289
City of South Bend, IndianaNew Construction - Number of Permits and Property ValuesLast Ten Fiscal Years(Dollar Amounts in 000's)PublicResidential Residential Commercial Commercial Public Utility Manufacturing ManufacturingTotal ValueNumber of Value Number of Value Utility Number Value Number of Value Total Value Increase/YearPermits(in 000's)Permits(in 000's)of Permits(in 000's)Permits(in 000's)(in 000's)(Decrease)200948 8,467 10 29,451 1,627 28,785 - - 66,703 -23.16%201035 7,450 5 28,283 1,221 25,998 - - 61,731 -7.45%201133 6,300 14 10,737 880 20,265 1 2,023 39,325 -36.30%201245 9,827 11 21,247 - - 2 2,291 33,365 -15.16%201350 15,136 8 4,954 - - 1 160 20,250 -39.31%201451 13,101 12 10,392 - - - - 23,493 16.01%2015 (1) 77 18,615 70 415,219 - - 6 28,460 462,294 1867.79%201661 15,215 22 53,622 - - - - 68,837 -85.11%201788 23,195 13 17,843 - - - 466 41,504 -39.71%201892 26,069 19 41,335 - - - - 67,404 62.40%Source - Consolidated City/County Building Department(1) - Increase in commercial construction due to major construction taking place at the University of Notre Dame.290
City of South Bend, IndianaCapital Asset and Infrastructure Statistics by Function/Program Last Ten Fiscal YearsFunction/program2009201020112012201320142015201620172018PoliceStations 1 1 1 1 1 1 1 1 1 1 Patrol units25 25 19 19 19 19 19 19 19 19 FireStations11 11 11 11 11 11 11 11 11 11 Training Center- - - - - 1 1 1 1 1 Rescue units33 33 33 33 33 33 33 33 33 33 Refuse collectionCollection trucks21 23 23 19 19 19 19 19 - - Other public worksStreets (miles)532 532 499 525 525 525 525 525 525 525 Streetlights2,500 2,500 2,500 2,700 2,700 3,000 3,015 3,015 3,015 3,015 Traffic signals162 162 164 165 167 162 158 164 163 163 Parks and recreationAcreage1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,300 1,300 Playgrounds23 23 23 23 23 23 23 23 23 23 Baseball/softball diamonds27 27 27 27 27 27 27 27 27 27 Soccer/football fields17 17 17 19 19 19 19 19 19 19 Swimming pools2 2 2 2 2 2 2 2 2 2 Splash Pads5 5 5 5 6 6 6 7 8 8 Community center 5 5 5 5 5 3 3 3 4 4 WaterWater mains (miles)560 580 582 583 584 583 583 583 586 587 Fire hydrants5,317 5,345 5,377 5,401 5,436 5,448 5,439 5,459 5,539 5,550 Storage capacity (thousands of gallons) 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 WastewaterSanitary sewers (miles)534 534 534 528 526 527 527 527 535 537 Storm sewers (miles)200 127 127 133 133 133 133 155 155 155 Treatment capacity (thousands of gallons) 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 Sources: Various city departmentsAs of December 31,291
City of South Bend, Indiana Last Ten Fiscal YearsFunction/ Program2009201020112012201320142015201620172018Police:Physical arrests3,785 3,077 3,626 3,174 2,959 2,608 2,483 2,342 2,229 2,664 Parking violations1,479 979 904 1,051 1,019 299 691 480 919 548 Traffic violations11,746 14,163 4,236 7,561 2,180 1,487 4,327 6,437 4,701 2,580 Fire:Emergency responses14,341 15,578 15,408 15,720 15,865 15,902 15,340 15,886 16,829 22,659 Fires extinguished264 225 251 214 220 227 213 236 339 278 Inspections4,205 4,233 3,553 3,325 2,273 3,133 3,778 2,148 2,522 3,525 Refuse collection:Refuse collected (tons per day) (1) 70 120 123 128 122 128 149 139 142 142 Other public works:Street resurfacing (miles)15 20 18 17 21 22 17 20 19 21 Potholes repaired (tonnage)629 380 332 117 691 826 526 462 363 476 Parks and recreation:Athletic field permits issued700 381 227 133 93 120 113 427 142 103 Fitness Center Admissions74,438 60,118 67,408 61,002 63,671 67,428 64,547 67,294 73,405 68,306 Water:New billable housing starts194 179 144 160 242 141 108 189 214 119 Water mains breaks87 76 60 66 80 134 99 53 45 67 Average daily consumption 16,100 15,955 15,600 16,600 15,300 11,000 14,500 14,640 14,358 14,640 (thousands of gallons)Wastewater:Average daily sewage treatment 41,200 30,861 35,800 31,770 30,690 31,991 30,200 43,874 35,800 37,110 (thousands of gallons)Sources: Various city departments(1) 2007 and prior years were in cubic yards Operating Indicators by Function/ProgramAs of December 31,292
City of South Bend, IndianaDepartment2009201020112012201320142015201620172018General Government:Mayor's Office 8 7 7 6 6 7 7 6 7 7 City Clerk's Office5 5 5 5 5 5 5 5 5 5 Common Council (elected officials, part-time)9 9 9 9 9 9 9 9 9 9 Administration and Finance26 26 27 22 20 21 18 26 21 23 Legal Department9 9 9 9 10 10 12 11 10 10 Engineering & Sustainability16 19 17 15 13 14 16 18 18 23 Safety and Risk- - - 3 3 3 2 2 2 3 Human Rights- - - 6 6 6 6 6 5 5 Public Safety:Police Department279 293 293 291 291 295 300 287 283 283 Communication Center37 38 35 35 33 34 - - - - Fire Department246 255 258 249 255 257 259 268 272 262 Building Maintenance4 3 3 - - - - 3 2 4 Culture and Recreation:Parks and Recreation (2)111 113 114 114 113 87 88 89 94 90 Convention and Events Management (1)13 13 14 14 14 14 14 12 9 18 Economic Development:Department of Community Investment26 26 25 24 26 25 25 23 22 24 Highways and Streets:Street Department51 52 56 52 60 59 53 59 55 54 Traffic & Lighting6 - - - - - - - - - Enterprise Funds:Water Works82 75 74 73 70 68 67 65 67 63 Wastewater48 51 49 46 45 42 43 44 45 42 Organic Resources (formerly in Wastewater) - - - 6 6 6 6 6 6 6 Sewer33 35 36 39 34 33 30 31 38 39 Solid Waste26 26 23 24 26 22 21 25 23 22 Building Department15 13 13 13 14 13 13 14 14 15 Code Enforcement/Animal Care & Control 27 23 25 25 24 23 23 26 29 26 Internal Service Fund:311 Call Center- - - - 5 7 7 7 6 7 Innovation and Technology (3)- - - - - - - - 17 20 Central Services39 41 41 42 43 38 36 37 40 39 Total Positions1,116 1,132 1,133 1,122 1,131 1,098 1,060 1,079 1,099 1,099 Full-Time Equivalent City Government Employees by DepartmentLast Ten Fiscal YearsAs of December 31,293
City of South Bend, IndianaDepartment2009201020112012201320142015201620172018Summary by Activity General Government 73.00 75.00 74.00 75.00 77.00 82.00 82.00 90.00 100.00 112.00 Public Safety566.00 589.00 589.00 575.00 579.00 586.00 559.00 558.00 557.00 549.00 Culture and Recreation124.00 126.00 128.00 128.00 127.00 101.00 102.00 101.00 103.00 108.00 Economic Development26.00 26.00 25.00 24.00 26.00 25.00 25.00 23.00 22.00 24.00 Highways and Streets57.00 52.00 56.00 52.00 60.00 59.00 53.00 59.00 55.00 54.00 Enterprise Funds231.00 223.00 220.00 226.00 219.00 207.00 203.00 211.00 222.00 213.00 Internal Service Fund39.00 41.00 41.00 42.00 43.00 38.00 36.00 37.00 40.00 39.00 Total Positions1,116.00 1,132.00 1,133.00 1,122.00 1,131.00 1,098.00 1,060.00 1,079.00 1,099.00 1,099.00 Excludes seasonal, part-time and temporary positions(1) Includes reduction of 34 positions in the City's convention facility (Century Center) during 2007. Century Center is being managed by a private company under an agreement with the City of South Bend.(2) Potawatomi Zoo employees (33) became employees of the Potawatomi Zoological Society through a public-private partnership as of January 1, 2014. (3) Innovation & Technology became a stand alone department in 2017; this department includes technology employees as well as business analysis.Source: City of South Bends Performance Based Budgets and personnel recordsAs of December 31,Full-Time Equivalent City Government Employees by Department (Continued)Last Ten Fiscal Years - 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00Summary of Employees by ActivityTotal Positions Public Safety Enterprise Funds Culture andRecreation General Government Highways and Streets Internal Service Fund EconomicDevelopment294
City of South Bend, Indiana
Year Percent Base Salary Percent Base Salary Non-bargaining Teamsters
1990 3.62% 20,071$ 4.74% 19,869$ 3.00-4.00%.25 per hour
1991 0.92% 20,256 2.52% 20,369 3.00%.25 per hour
1992 4.69% 21,206 2.45% 20,869 3.00%.30 per hour
1993 0.44% 21,300 5.00% 21,912 4.24%0.00%
1994 2.35% 21,800 0.00% 21,912 1.50% + $300 bonus .15 per hour
1995 4.82% 22,850 3.00% 22,569 1.50% + $300 bonus .30 per hour
1996 4.38% 23,850 5.00% 23,697 3.00%.27 per hour
1997 4.19% 24,850 4.87% 24,850 3.00%.33 per hour
1998 4.63% 26,000 0.60% 25,000 3.00%.37 per hour
1999 3.85% 27,000 2.60% 25,650 3.25%3.50%
2000 5.56% 28,500 9.34% 28,045 3.50%3.50%
2001 9.74% 31,275 11.52% 31,275 3.50%4.00%
2002 4.50% 32,682 4.03% 32,534 4.00%4.00%
2003 5.57% 34,504 4.04% 33,850 4.00%4.00%
2004 6.01% 36,578 5.17% 35,600 4.00%4.00%
2005 9.36% 40,000 12.36% 40,000 4.00%4.00%
2006 2.50% 41,000 2.00% 40,800 2.00%4.25%
2007 2.50% 42,025 2.50% 41,820 $750/0%.38 per hour
2008 3.50% 43,496 3.50% 43,285 3.00%3.00%
2009 2.20% 44,453 2.00% 44,150 2.00%2.00%
2010 0.00% 44,453 6.80% 47,150 2.00%2.00%
2011 11.50% 49,563 4.06% 49,066 2.00%0.00%
2012 2.00% 50,554 2.00% 50,047 2.00%2.00%
2013 2.50% 51,818 3.00% 51,550 2.00%2.00%
2014 2.50% 53,113 3.00% 53,100 2.00%2.00%
2015 2.20% 54,281 2.20% 54,268 2.00%2.00%
2016 2.20% 55,475 2.20% 55,462 2.00%2.00%
2017 2.50% 56,861 2.20% 56,682 2.00% 1% + 1.5% for PERF
2018 2.00% 57,998 2.00% 57,957 2.00% 1.5% INPRS Contribution
Salary Rate Comparison
1990 - 2018
---1st Class Fire Fighter-------1st Class Patrol Officer----
295
City of South Bend, Indiana
Limits of
Type of Coverage Liability
Liability
Comprehensive General Liability Statutory
Police Professional Liability Statutory
Ambulance Malpractice Liability Statutory
Premises Liability Statutory
(Clay Utilities, Century Center,
Parking Garages)
CGL - Stadium Statutory
Liquor Liability 1/1/18-1/1/19 1,000,000$ 1,963$ Premium
Special Events (Arbor Day/Rum Village Aerial) 4/20/18-4/20/19 1,000,000$ 2,510$ Premium
Crime
Public Employee Dishonesty 12/31/18-12/31/19 1,000,000$ 9,205$ Premium
Property 7/1/18-7/1/19
All risk blanket building & contents 550,000,000$ 425,292$ Premium
Business Income Included in above
Machinery Breakdown Included in above
Fine Arts Included in above
Valuable Papers & Records Included in above
Contractors Equipment Included in above
Flood Insurance - Pump station & contents 1/15/18-1/15/19 839,200$ 8,882$ Premium
Eddy Street Commons Parking Garage 3/2/18-3/2/19
Building & Infrastructure 36,000,000$ 21,833$ Premium
Business Income & Rental Value 15,000,000$
Flood 25,000,000$
Earthquake 25,000,000$
Other 1/1/18-1/1/19
Workers Compensation Statutory
Third Party Fee Statutory 53,000$ Fee
Excess Over Self-insured Statutory 151,028$ Premium/Fee
$400,000 Retention Each Accident
Source: City of South Bend Administration & Finance Department
Gibson Insurance Company
Self-Insured
Self-Insured
Included in above
Included in above
Included in above
Included in above
Included in above
Included in above
Included in above
Included in above
Insurance Coverage
2018
Self-Insured
Annual Premium
Estimated
Self-Insured
Self-Insured
Self-Insured
296
City of South Bend, Indiana
2016 2017 2018 2016 2017 2018
Authorized Officers 247 230 237 Traffic Signals 164 163 163
Vehicles 363 340 428 Street Lights (City maintained)3,015 3,015 3,015
Special Officer Groups:Miles of Streets 525 525 525
K-9 Patrols 8 7 7 Miles of Sidewalks 695 695 707
SWAT Team 17 18 18 Miles of Alleys 398 398 398
NEST - Special Neighborhood Unit 9 12 12 Miles of Sanitary Sewers and Storm Drains 691 691 692
Motorcycle Patrol Officers 7 6 8 City Owned Vehicles & Related Units 1,183 1,190 1,125
Bomb Squad 3 3 3 Trash Picked Up Per Week (in tons)556/wk 568/wk 568/wk
Crime Prevention Officers 3 4 3
Crime Data:
Murders 15 17 9 2016 2017 2018
Rapes 70 93 66 Work orders for sign maintenance,
Robbery 388 345 365 installation or removal 3,119 1,641 1,642
Aggravated Assault 565 611 782 Miles of yellow and white paint 288 297 311
Residential Burglary 955 830 685 Pre-formed plastic arrows used for
Non-residential Burglary 286 362 350 street markings 91 46 216
Larceny 3,359 3,438 3,288 Crosswalk painting at intersections 487 387 220
Auto Theft 566 469 510 Turn arrows in turn lanes - -
Arson 47 37 47 Detour routes - -
Calls for Service 103,183 99,542 96,853 Temporary No Parking postings 462 499 512
Dispatches 103,183 99,542 96,853 Built Portables - -
Miles Driven 3,137,616 3,038,700 2,993,092 Railroad Crossings 7 7 4
Arrests 2,342 2,229 2,664 Special Signs Built 350 273 532
Barricades set up for events (# of events):86 100 136
Block Parties 47 40 28
2016 2017 2018
Sworn Firefighters
(51 of which are Paramedics) 244 253 255 2016 2017 2018
Fire Apparatus 20 20 20 Customers 40,043 40,543 40,680
Hazardous Materials Truck 1 1 1 Dry Tons of Sludge produced per year 2,704 2,397 2,565
Reserve Pumper Trucks 3 3 3 Miles of Sanitary Sewer Lines 230 230 232
Reserve Ladder Trucks 2 2 2 Miles of Storm Sewer Lines 155 155 155
River Rescue Boats 3 3 3 Miles of Combined Lines (not separated)305 305 305
Ambulances 7 7 4
Neonatal (Newborn) Units 3 3 3
Fire Runs 3,421 3,582 3,894 2016 2017 2018
Ambulance Runs 14,583 15,442 18,765 Customers/Meters 40,670 41,200 41,275
Irrigation Customers 2,973 2,907 2,905
Wells/Pumps in service 30 27 30
Pumping Capacity 53.7 m.g.d. 48 m.g.d. 40 m.p.g.
Daily Consumption 14.6 m.g.d. 14.4m.g.d. 14.6 m.g.d.
Peak Demand 26.5 m.g.d. 25.8 m.g.d. 25.1 m.g.d.
Miles of Distribution Systems 583 586 587
Fire Hydrants 5,459 5,539 5,550
Miscellaneous Statistics
December 31, 2018
Water Utility
Paid Department established 1887
Police Department Department of Public Works
Sign Shop
Fire Department
Sewer Utility
297
City of South Bend, Indiana
Passenger Volume:Century Center 75,000 square feet of exhibit space
Airline South Shore Bus to O'Hare/2,270 max available seating
Year Enplanements Train Midway 694 seat theater
2014 301,878 251,426 37,315 Morris Performing Arts Center 2,500 available seating
2015 314,300 248,506 34,394 Hotels/Motels 25 Hotels/Motels
2016 328,897 243,920 34,145 3 Bed & Breakfasts
2017 305,491 260,794 33,696 Major hotels and meeting rooms:
2018 368,877 246,641 27,044 DoubleTree by Hilton facilities to seat 600
Waterford Estates Lodge facilities to seat 500
On average, more than 1,600 airline passengers travel The Morris Inn facilities to seat 400
through South Bend International every day.Aloft facilities to seat 150
Commercial airlines with operations at South Bend The City of South Bend has excellent health care access
International Airport (market share):at costs below the national average and the lowest in the
2017 2018 Midwest region. The City has one major hospital:
Allegiant Air 31.73%26.98%Beacon Health Systems (Memorial Hospital)525 beds
Delta Connection 45.79%41.56%
United Express 20.63%19.50%
American -10.24% Access to:
Charters/Nonscheduled 1.85%1.72% 3 Major Television Networks: NBC (WNDU), ABC (WBND), and CBS/FOX (WSBT)
Total 100.00% 100.00% 1 Public Broadcasting Television Station (WNIT)
2 Local Television Stations (WHME, WJSV)
1 Major Newspaper (The South Bend Tribune)
25 Radio Stations
South Bend Public Transportation Corporation
2017 2018 South Bend has been the home to the many distinguished
Motor Bus (Fixed Route)individuals including the following persons:
Route Miles 291 290 Schuyler Colfax, 17th U.S. Vice President
Ridership 1,571,446 1,553,926 John Fogerty, singer
Miles of Service 1,356,792 1,420,366 Michael Warren, actor
Revenue Miles 1,282,475 1,361,525 Chad Everett, actor
Demand Response (ACCESS)Sidney Pollack, actor/director
Ridership 68,572 76,323 Knute Rockne, football coach
Total Miles 347,186 395,061 John Wooden, basketball coach
Revenue Miles 312,417 344,767 Joe Kernan, former South Bend Mayor and Indiana Governor
Ryan Newman, racecar driver
Skylar Diggins, woman's basketball player
43 Trucking Lines, 33 Terminals
4 Interstate Bus Lines - Incorporated in 1865
4 Major Rail Systems (freight and passenger)- County Seat of St. Joseph County
- South Bend officially began under the name South Hold, but the
name was changed by the Post Office in 1830 to avoid confusion
Universities and
Colleges with other communities that used that name. The name South
2017 2018 Bend was used because the City is located at the southernmost
University of Notre Dame 12,393 12,393 point of the St. Joseph River.
Indiana University at South Bend 5,385 5,214 - Average High Temperature:
Bethel College 1,650 1,650 January 31 degrees Fahrenheit
St. Mary's College 1,600 1,600 July 83 degrees Fahrenheit
Holy Cross College 500 500
Trine University - South Bend 78 78
Purdue Polytechnic Instittute SB 150 120
Technical Colleges
2017 2018
IVY Tech Community College *5,694 5,547
Colleges and Universities
Enrollment
Enrollment
Miscellaneous Statistics (Continued)
December 31, 2018
South Bend International Airport Convention Facilities
Transpo
Other Transportation
Health Care
Communications
Famous Residents
Other
298