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HomeMy WebLinkAbout2019 Comprehensive Annual Financial Report2019 CAFR (Comprehensive Annual Financial Report) Report prepared by City of South Bend Department of Administration and Finance South Bendcity of Indiana James Mueller, Mayor Daniel Parker, City Controller Benjamin Dougherty, Deputy City Controller Amy Shirk, Director of Accounting & Budget Fiscal Year Ending on December 31, 2019 Report prepared by City of South Bend Department of Administration and Finance City of South Bend, Indiana Table of Contents Introductory Section Letter of Transmittal ................................................................................................................................ i-vi GFOA Certificate of Achievement ........................................................................................................... vii Organization Chart ................................................................................................................................... viii List of City Officials ................................................................................................................................... ix Financial Section Independent Auditor's Report ................................................................................................................ 1-3 Management's Discussion and Analysis ............................................................................................. 4-23 Basic Financial Statements Government-wide Financial Statements: Statement of Net Position ......................................................................................................... 24-25 Statement of Activities .................................................................................................................... 26 Fund Financial Statements: Governmental Funds: Balance Sheet ......................................................................................................................... 27 Reconciliation of the Balance Sheet to the Statement of Net Position.................................... 28 Statement of Revenue, Expenditures, and Changes in Fund Balances ................................. 29 Reconciliation of the Statement of Revenue, Expenditures, and Changes in Fund Balances to the Statement of Activities............................................................................. 30 Proprietary Funds: Statement of Net Position ................................................................................................... 31-32 Statement of Revenue, Expenses, and Changes in Net Position ........................................... 33 Statement of Cash Flows ................................................................................................... 34-35 Fiduciary Funds: Statement of Fiduciary Net Position ........................................................................................ 36 Statement of Changes in Fiduciary Net Position ..................................................................... 37 Notes to Financial Statements ......................................................................................................... 38-87 Required Supplemental Information ....................................................................................................... 88 1925 Police Officers' Pension Plan Schedule of Investment Returns .................................................................................................... 89 Schedule of City Contributions ....................................................................................................... 90 Schedule of Changes in the Net Pension Liability and Related Ratios ......................................... 91 1937 Firefighters’ Pension Plan Schedule of Pension Investment Returns ...................................................................................... 92 Schedule of City Contributions ....................................................................................................... 93 Schedule of Changes in the Net Pension Liability and Related Ratios ......................................... 94 Public Employees’ Retirement Fund Schedule of City Contributions ....................................................................................................... 95 Schedule of the City's Proportionate Share of the Net Pension Liability ....................................... 96 City of South Bend, Indiana Table of Contents (Continued) 1977 Police Officers’ Pension and Disability Fund Schedule of City Contributions ....................................................................................................... 97 Schedule of the City's Proportionate Share of the Net Pension Liability ....................................... 98 1977 Firefighters’ Pension and Disability Fund Schedule of City Contributions ....................................................................................................... 99 Schedule of the City's Proportionate Share of the Net Pension Liability ..................................... 100 Schedule of Changes in the City’s Total OPEB Liability and Related Ratios .................................... 101 Budgetary Comparison Schedules - General Fund and Major Special Revenue Funds ............ 102-109 Budget/GAAP Reconciliation .............................................................................................................. 110 Notes to Required Supplemental Information ............................................................................. 111-112 Other Supplemental Information ........................................................................................................... 113 Nonmajor Governmental Funds: Fund Descriptions ................................................................................................................. 114-118 Combining Balance Sheet .................................................................................................... 119-128 Combining Statement of Revenue, Expenditures, and Changes in Fund Balances ............ 129-138 Budgetary Comparison Schedules – Nonmajor Governmental Funds ................................. 139-209 Nonmajor Enterprise Funds: Fund Descriptions ........................................................................................................................ 210 Combining Statement of Net Position .......................................................................................... 211 Combining Statement of Revenue, Expenses, and Changes in Net Position ............................. 212 Combining Statement of Cash Flows .................................................................................... 213-214 Internal Service Funds: Fund Descriptions ........................................................................................................................ 215 Combining Statement of Net Position .......................................................................................... 216 Combining Statement of Revenue, Expenses, and Changes in Net Position ............................. 217 Combining Statement of Cash Flows ........................................................................................... 218 Fiduciary Funds: Fund Descriptions ........................................................................................................................ 219 Statement of Fiduciary Net Position ............................................................................................. 220 Statement of Changes in Fiduciary Net Position ......................................................................... 221 Statistical Section Financial Trend Information Net Position by Component ................................................................................................................ 224 Changes in Net Position .............................................................................................................. 225-227 Fund Balances - Governmental Funds ............................................................................................... 228 Changes in Fund Balances - Governmental Funds ........................................................................... 229 Financial Institutions ........................................................................................................................... 230 Revenue Capacity Information Property Tax Levies and Collections .................................................................................................. 232 Direct and Overlapping Property Tax Rates ....................................................................................... 233 Detail of Net Assessed Value ............................................................................................................. 234 Assessed Value and Actual Value of Taxable Property ..................................................................... 235 Net Assessed Value of Taxable Property ........................................................................................... 236 Assessed Value of Taxable Property ................................................................................................. 237 Property Tax Collections - Cash Basis ............................................................................................... 238 Circuit Breaker Property Tax Cap Credits .......................................................................................... 239 City of South Bend, Indiana Table of Contents (Continued) Principal Property Taxpayers ............................................................................................................. 240 Local Income Tax Revenue (Economic Development Component of LIT) ........................................ 241 Local Income Tax Revenue (Certified Shares Component of LIT) .................................................... 242 Local Income Tax Revenue (Public Safety Component of LIT) ......................................................... 243 Total County Income Tax Distributions by Taxing Unit ............................................................... 244-245 Ten Largest Water Customers ........................................................................................................... 246 Ten Largest Sewage Works Customers ............................................................................................. 247 Gasoline Tax Collections - Cash Basis .............................................................................................. 248 Wheel and Excise Surtax Collections - Cash Basis ........................................................................... 249 Hotel/Motel Tax Revenue - Cash Basis - City Distributions ............................................................... 250 Professional Sports Development Area (PSDA) Tax - Cash Basis .................................................... 251 Cable Television Franchise Fee Collections - Cash Basis ................................................................. 252 Debt Capacity Information Computation of Legal Debt Margin ..................................................................................................... 254 Legal Debt Margin Information ........................................................................................................... 255 Ratios of Outstanding Debt by Type................................................................................................... 256 Computation of Direct and Overlapping Debt ..................................................................................... 257 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Government Expenditures ............................................................................................. 258 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net Bonded Debt Per Capita ........................................................................................................................................ 259 St. Joseph County Hotel/Motel Tax Board Statement of Estimated Cash Flow and Debt Service Coverage ......................................................................................................................... 260 Schedule of Revenue Bond Coverage - Water Utility Bonds ............................................................. 261 Schedule of Revenue Bond Coverage - Wastewater Utility Bonds .................................................... 262 Municipal Sewage Works Annual Wastewater Flow Data and Number of Customers ...................... 263 Statement of City-Owned Utility Debt ................................................................................................. 264 Estimated Debt Service Coverage Calculation of Sewage Works ..................................................... 265 Estimated Debt Service Coverage Calculation of Water Utility .......................................................... 266 Projected City of South Bend Certified Shares Component of LIT Revenue ..................................... 267 Projected City of South Bend Economic Development Component of LIT Revenue ......................... 268 Projected City of South Bend Public Safety Component of LIT Revenue .......................................... 269 Statement of Estimated Cash Flow and Debt Service Coverage (Certified Shares Component)...... 270 Statement of Estimated Cash Flow and Debt Service Coverage (Economic Development Component) ................................................................................................................................. 271 Estimated Tax Increment Revenue - Erskine Village Project ............................................................. 272 Demographic and Economic Information Demographic Statistics ................................................................................................................ 274-275 Employment by Type and Industry ..................................................................................................... 276 Comparison of Growth Rates in Personal Income for St. Joseph County, the State of Indiana, and U.S. Personal Income ........................................................................................................... 277 Principal Employers ............................................................................................................................ 278 Operating Information New Construction - Number of Permits and Property Values ............................................................ 280 Capital Asset and Infrastructure Statistics by Function/Program ....................................................... 281 Operating Indicators by Function/Program ......................................................................................... 282 Full-time City Government Employees by Department ............................................................... 283-284 Salary Rate Comparison .................................................................................................................... 285 Insurance Coverage ........................................................................................................................... 286 Miscellaneous Statistics .............................................................................................................. 287-288 1200N COUNTY-CITY BUILDING PHONE 574.235.9216 227 W. JEFFERSON BLVD. FAX 574.235.9928 SOUTH BEND, INDIANA 46601-1830 CITY OF SOUTH BEND, IN JAMES MUELLER, MAYOR DEPARTMENT OF ADMINISTRATION AND FINANCE July 31, 2020 The Honorable James Mueller, 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, 2019 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 financ ial 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, 2016. 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. 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 2019 suggest that the city continues to experience growth, pointing the way to further growth before the 2020 census. The City of South Bend i 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, in what is commonly known as the “Michiana” 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 Universi ty 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. This project continued to mature in 2019, during which the City joined other northern Indiana municipalities in funding a double tracking project for the South Shore Line that is expected to significantly reduce travel time. When completed, this project will be transformative to the local economy. 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 137,320 workers (2019, 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 90.1% of the area’s adult population are high school graduates or higher (as compared to the national average of 88.3%) with an estimated 31.7% 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; American National University; and Ivy Tech Community College. The St. Joseph County 2019 Annual Average Unemployment was 3.7%, which is slightly higher than the state of Indiana unemployment rate of 3.5%. The unemployment rate in St. Joseph County is similar to the surrounding counties— Elkhart (2.9%), LaPorte (4.7%), and Marshall (3.4%) in Indiana (2019 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 2019 Summary, using data from US Bureau of Labor Statistics): ii Economic Sector Number Employed % of Total Health Care and Social Assistance 20,312 16.5% Manufacturing 15,064 12.2% Retail Trade 13,970 11.3% Federal, State, & Local Government 12,644 10.3% Accommodation and Food Service 11,465 9.3% Educational Services 10,745 8.7% Wholesale Trade 5,684 4.6% Administrative and Waste Services 5,384 4.4% Construction 5,150 4.2% Professional and Technological Services 4,472 3.6% Other Services 3,617 2.9% Finance and Insurance 3,525 2.9% Transportation and Warehousing 3,363 2.7% Management 2,355 1.9% Arts, Entertainment, and Recreation 2,087 1.7% Real Estate, Rental, Leasing 1,588 1.3% Information 1,388 1.1% Utilities 246 0.2% Agriculture, Forestry, Fishing, Hunting, Mining 163 0.1% Total 124,367 100.0% According to the United States Census Bureau, St. Joseph County presently has an estimated 100,861 households with a median household income of $54,434, which compares to the State of Indiana median household income of $55,746 and the United States median household income of $61,937. Surrounding counties have similar median household incomes—Elkhart ($58,350), La Porte ($51,584), and Marshall ($53,889) in Indiana and Cass ($52,741) and Berrien ($51,262) in Michigan. Health and education lead the employment statistics for St. Joseph County. The largest employers in St. Joseph County are: Beacon Health System, University of Notre Dame, South Bend Community School Corporation, St. Joseph Health System, Indiana University – South Bend, St. Joseph County, City of South Bend, AM General, Honeywell International, Inc, and Press Ganey Associates, Inc. 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: 48.59% male; 51.41% female Age: Under 20 years of age 27.1% 20-29 years of age 14.4% 30-39 years of age 11.9% 40-49 years of age 12.0% 50-59 years of age 12.0% 60-64 years of age 6.6% 65 years of age and older 15.9% Race: White 72.10% Black or African American 11.35% Hispanic or Latino 8.52% American Indian and Alaska Native 0.47% Asian 2.29% Native Hawaiian and Other Pacific Islander 0.09% Some other race 1.81% Two or more races 3.38% Home Ownership 67.8% own; 32.2% rent/other iii The cost of living continues to be one of the greatest advantages of living in this community. The housing costs in South Bend are well below the national and regional averages. Per a report compiled by the National Association of Realtors in the first quarter of 2020, the median sales price for a single-family home in the South Bend-Mishawaka Statistical Area was $134,800 as compared to a median sales price of $261,700 in Chicago and $204,000 in Indianapolis. The national median sales price is $274,600. Between January 2016 and December 2019, the City of South Bend has seen approximately $575 million in private investment and the announcement of close to 1,900 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. The South Bend Community School Corporation serves the entire City and some of the surrounding area and has a current enrollment of approximately 15,906 students in grades pre-kindergarten through 12. An estimated 6,130 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. Financial, Budgetary and Property Tax Controls The City’s management team is responsible for establishing and maintaining an internal control structure designed to ensure t hat 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 iv structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of re asonable 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 contr ols governing the amount of property tax it may levy. The property tax control program, which began in 1973, limits the amount of property tax that may be levied by each unit of government in its legally budgeted funds. The total amount of property tax levied by the unit may increase by the six-year average annual growth in Indiana personal non-farm income, as calculated by the U.S. Bureau of Economic Analysis, with a 6% maximum. During March 2008, the State of Indiana General Assembly enacted property tax reform legislation which made significant changes in the property tax system by capping the amount of property taxes at 1% of grossed assessed value for residential homesteads, 2% for agricultural/rental properties and 3% for all other real and personal property. This legislation was phased in over a two- year period beginning in 2009. The loss of revenue to the City due to this legislation was significant (estimated to be over $40 million dollars per year) 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 James Mueller is the chief executive of the City of South Bend. The city’s thirty-third mayor, he was sworn into office on January 1, 2020. As mayor, Mueller is responsible for the city workforce of over 1,000 employees and an annual budget over $380 million. After attending St. Joseph’s High School, the University of Notre Dame, and the University of Delaware for his PhD, Mayor Mueller worked in public policy, promoting pragmatic public policies and affordable energy solutions at the George Washington v University’s Solar Institute in Washington, DC. He also served in the office of US Senator Maria Cantwell (D-WA), for nearly four years, first as a John A. Knauss Legislative Fellow and then as a policy adviser on energy and natural resources. In 2015, Mayor Mueller returned home to join the Buttigieg administration as Mayor Pete Buttigieg’s Chief of Staff. Mueller’s tenure as Chief of Staff included the establishment of the first Diversity and Inclusion Office in Indiana, as well as the creation of the Departments of Innovation & Technology and the Venues Parks and Arts Department. Mueller went on to become the Executive Director of Community Investment where he was responsible for attracting businesses to South Bend and investing in the neighborhoods. Early in his tenure as Executive Director of Community Investment, Mueller established the Engagement & Economic Empowerment Division to empower residents with access to economic opportunities and meaningful civic participation. Mayor Mueller’s priorities include: •Strengthening education from cradle to career to set up every child for success •Reforming our public safety systems to make us all safer •Promoting shared growth and an economy that works for everyone •Rebuilding our neighborhoods block by block 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, 2018. This was the 29th 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 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, 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 Lori Adney) for their hard work and dedication in this effort. In closing, without the leadership and support of Mayor James Mueller, 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 vi vii CITY ORGANIZATIONAL CHART (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, 2020 Residents of South Bend Common Council Mayor Administration & Finance (City Controller) Budget & Accounting Treasury Central Services Safety & Risk Purchasing Human Resources (Director) Talent Management Benefits Management Employee Relations Inclusion, Diversity, Equity & Access (DIO) Diversity & Inclusion Office Human Rights Commission Legal Department (Corporation Counsel) Board & Department Support Ordinances Litigation Public Works (Director) Board of Public Works 1 Engineering Solid Waste Sustainability Streets & Sewers Water Works & Wastewater Utility Innovation & Technology (Chief Innovation Officer) Services Infrastructure Applications Business Analytics 311 Call Center 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 Community Investment (Exec Director) Redevelopment Commission 2 / Redevelopment Authority 2 Business Development Neighborhood Development Engagement & Economic Resources Planning Building Inspections & Permitting Venues, Parks & Arts (Executive Director) Board of Park Commissioners 1 Park Maintenance Recreation Civic Center Board of Managers 3 Century Center Morris Performing Arts Center & Palais Royale Code Enforcement (Director) Administration Code Inspections Rental Safety Verification Program (RSVP) Neighborhood Enhancement Action Team (NEAT) Animal Resource Center City Clerk viii CITY OFFICIALS Office Official Term Mayor Pete Buttigieg 01/01/2016 to 12/31/2019 James Mueller 01/01/2020 to 12/31/2023 Controller Daniel Parker 12/10/2018 to 12/31/2023 City Clerk Kareemah Fowler 01/01/2016 to 08/01/2019 Dawn M. Jones 08/15/2019 to 12/31/2023 President of the Board of Public Works Gary A. Gilot 12/31/2012 to 12/31/2020 Common Council Members 1st District Tim Scott 01/01/2016 to 06/15/2020 1st District Canneth Lee 07/01/2020 to 12/31/2023 2nd District Regina Williams-Preston 01/01/2016 to 12/31/2019 2nd District Henry Davis, Jr. 01/01/2020 to 12/31/2023 3rd District Sharon McBride 02/24/2018 to 12/31/2023 4th District Jo M. Broden 01/01/2016 to 12/31/2019 4th District Troy Warner 01/01/2020 to 12/31/2023 5th District Jake Teshka 06/04/2018 to 12/31/2023 6th District Oliver Davis 01/01/2016 to 12/31/2019 6th District Sheila Niezgodski 01/01/2020 to 12/31/2023 At Large Karen L. White 01/01/2016 to 12/31/2023 At Large John Voorde 01/01/2016 to 12/31/2019 At Large Gavin Ferlic 01/01/2016 to 12/31/2019 At Large Lori K. Hamann 01/01/2020 to 12/31/2023 At Large Rachel Tomas Morgan 01/01/2020 to 12/31/2023 ix 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, the discretely presented component unit, 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, 2019, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair pre- sentation 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 did not audit the financial statements of South Bend Public Transportation Corporation (Corporation), a com- ponent unit of the City as described in Note 1, which represent 100 percent, 100 percent, and 100 percent, respectively, of the assets, net position, and revenues of the discretely presented component unit. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Corporation, is based solely on the report of the other auditors. 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 appro- priate 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. INDEPENDENT AUDITOR'S REPORT (Continued) Opinions In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of December 31, 2019, 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 2019, the City adopted new accounting guidance in Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. 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, Schedule of Changes in the City Net Pension Liability and Related Ratios, Schedules of City Contributions, 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 state- ments. 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 collec- tively 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 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. INDEPENDENT AUDITOR'S REPORT (Continued) 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 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 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 August 5, 2020, 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 August 5, 2020 City of South Bend, Indiana Management’s Discussion and Analysis December 31, 2019 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, 2019. 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, South Bend Redevelopment Authority and Public Parking Garages within the city footprint. The City of South Bend governmental structure includes elected officials as follows with defined management and legislative authority in compliance with Indiana statute. Mayor Chief Executive Officer 4-year term Common Council 9 member legislative body 4-year term 6 from defined districts within the City 3 at-large members City Clerk Secretary of the Common Council 4-year term 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) December 31, 2019 Financial Highlights • Note: The City had three prior period adjustments that affected net position as of December 31, 2018. The first prior period adjustment was related to the implementation of GASB Statement 84 and had the effect of increasing net position in governmental activities by $485,158. The second prior period adjustment was the correction of an error that understated assets in the Parking Garage fund. This adjustment had the effect of increasing net position in business-type activities by $1,105,815. Finally, the third prior period adjustment was the correction of a misstatement of loans receivable in the DCI Federal Grants fund. This adjustment had the effect of increasing net position in governmental activities by $1,568. All statements and tables that present 2018 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 $354,598,073 as of December 31, 2019. • Government-wide net position decreased by $15,788,077 or 4.3% during fiscal year 2019. Governmental activity net position decreased by $23,991,768 or 15.1% and business-type activity net position increased by $8,203,691 or 3.9% during fiscal year 2019. The decrease in governmental activity net position is primarily driven by three factors: o First, the City had several large debt-financed expenditures that were not spent on City- owned assets and thus were recognized as expenses and were not capitalized. These expenditures included $9,125,000 for the South Shore Double Tracking Project and $4,602,119 for the Eddy Street Commons project. o Second, the City saw a substantial increase in net pension liability and an elimination of the City’s net pension asset. Together, these impacts reduced governmental activities net position by $11,452,715. o Finally, there were several governmental activities funds in which the City planned for an intentional spend-down of excess resources in 2019. This included the Motor Vehicle Highway fund (which primarily expends resources on non-capitalized road repairs and maintenance) and the City’s Self-Funded Employee Benefits fund. These funds had resources in excess of reserve requirements, and the City’s Common Council elected to intentionally spend these resources in 2019 to further the City’s strategic goals. Governmental Activities Business-type Activities Government-wide Discrete Component Unit 2019 2018 2019 2018 2019 2018 2019 2018 Assets/deferred outflows $535,757,261 $549,087,793 $310,824,693 $312,394,274 $846,581,954 $861,482,067 $ 32,742,966 $ 35,816,187 Liabilities/deferred inflows 401,154,154 390,492,918 90,829,727 100,602,999 491,983,881 491,095,917 3,357,311 3,550,243 Net Position Net investment in capital assets 123,340,793 143,282,487 155,288,994 147,069,159 278,629,787 290,351,646 30,351,397 31,780,744 Restricted 11,332,302 11,639,254 34,701,170 33,936,695 46,033,472 45,575,949 - - Unrestricted (69,988) 3,673,134 30,004,802 30,785,421 29,934,814 34,458,555 (965,742) 485,200 Total Net Position $134,603,107 $158,594,875 $219,994,966 $211,791,275 $354,598,073 $370,386,150 $ 29,385,655 $ 32,265,944 Change vs. prior year $(23,991,768) $9,701,852 $8,203,691 $7,374,069 $(15,788,077) $17,075,921 $ (2,880,289) $ (1,316,233) Expenses 205,133,996 164,683,229 73,074,437 65,978,297 278,208,433 230,661,526 13,824,067 12,947,703 Revenues 178,373,377 169,155,420 84,046,979 78,582,027 262,420,356 247,737,447 10,943,778 11,631,470 5 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 • Total assets and deferred outflows of resources as of December 31, 2019 of $846,581,954 decreased by $13,794,298 or 1.60% as compared to total assets and deferred outflows of resources as of December 31, 2018. The decrease is primarily attributable to lower cash reserves as of December 31, 2019. • Total liabilities and deferred inflows of resources as of December 31, 2019 of $491,983,881 increased by $887,964 or 0.18% as compared to total liabilities and deferred inflows of resources as of December 31, 2018. This increase was driven primarily by an increase in Customer Deposits Payable due to the reclassification of the Morris Palais Box Office fund as a governmental fund. This fund was previously classified as a fiduciary fund. • As of December 31, 2019, the government-wide net position of $354,598,073 has $278,629,787 invested in capital assets (net of debt) which is not available for spending, $46,033,472 classified as restricted for debt service; capital outlay; and other; and $29,934,814 classified as unrestricted. • Government-wide revenue received in fiscal 2019 totaled $262,420,356, an increase of $14,682,909 or 5.9% versus government-wide revenue received in fiscal 2018. Governmental activity revenue increased by $9,217,957 or 5.4%, and business-type activity revenue increased by $5,464,952 or 6.95%. 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. • Government-wide expenses in 2019 totaled $278,208,433, an increase of 20.6% compared to expenses of $230,661,526 in 2018. Government activity expenses increased by $40,450,767 or 24.6%, while business-type activity expenses increased by $7,096,140 or 10.8% compared to fiscal 2018. The increase in the governmental activity expenses are due primarily to large, debt-financed expenditures that were not spent on City-owned assets and thus were recognized as expenses and were not capitalized. Additionally, the City’s pension expense increased significantly in 2019. The increase in the business-type activities is due mainly to an increase in costs at that City’s Wastewater utility. • The financial statements contain information for a single discrete component unit, the South Bend Public Transportation Corporation (Transpo). • Explanatory commentary concerning the changes in assets, liabilities, revenue and expenditures can be found in later sections of this MD&A. Overview of the Financial Statements The City of South Bend’s financial statements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also includes other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City of South Bend’s finances using “accrual-based accounting,” a method of accounting used by private sector businesses. Statement of Net Position This statement reports all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the City of South Bend as of December 31, 2019. 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 6 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 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, 2019. 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. Component units are included in our basic financial statements, in accordance with GASB Statement 61. These units are legally separate entities for which the City is financially accountable. Component units are presented as either discrete or blended, depending on the level of oversight exercised and the relationship between the City and the external entity. Blended component units include the South Bend Redevelopment Authority and the South Bend Building Corporation, Inc. These entities are set up to exclusively benefit or provide services to the City, and the management team of the City has operational responsibility for these entities. Accordingly, the financial information for these entities is blended into the primary government in these statements. In contrast, the City has included the South Bend Public Transportation Corporation (Transpo) as a discrete component unit. Although the City does not have operational responsibility for Transpo, and no financial benefit or burden accrues to the City due to Transpo’s operations, Transpo is nonetheless fiscally dependent on the City. This dependency exists because the South Bend Common Council has the authority to approve and modify Transpo’s budget and levy taxes on behalf of Transpo. More information on the City’s component units can be found in Note 1 to the Financial Statements. Fund Financial Statements A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of South Bend can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Each fund has its own cash balance which must be maintained according to the City’s cash reserve policy. Governmental Funds Governmental funds are used to account for the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental fund financial statements focus on short-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's short-term financing requirements. Governmental funds use the modified accrual accounting method. The City maintains seven (7) major governmental funds (General, Parks and Recreation, Public Safety Local Option Income Tax (LOIT), County Option Income Tax (COIT), 7 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 Economic Development Income Tax (EDIT), Rainy Day, and River West TIF) and seventy-two (72) nonmajor governmental funds. 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 nonmajor enterprise funds is provided in the form of combining statements elsewhere in this report. • Internal service funds are used to accumulate and allocate costs internally among the City's various functions and funds. The City maintains 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 four (4) fiduciary funds, which consist of two (2) pension trust funds (1925 Police Officers’ Pension and 1937 Firefighters’ Pension), and two (2) custodial funds (Payroll and Police Distributions Payable). 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. 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 8 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 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 nonmajor governmental, nonmajor 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 Governmental Activities Business-type Activities Government-wide Discrete Component Unit 2019 2018 2019 2018 2019 2018 2019 2018 Assets Current and other $244,488,625 $267,088,203 $ 71,530,668 $ 71,059,755 $316,019,293 $338,147,958 $2,207,669 $3,012,279 Capital assets (net) 277,107,551 266,077,813 237,806,828 239,584,702 514,914,379 505,662,515 30,397,350 32,191,195 Total Assets 521,596,176 533,166,016 309,337,496 310,644,457 830,933,672 843,810,473 32,605,019 35,203,474 Deferred Outflows 14,161,085 15,921,777 1,487,197 1,749,817 15,648,282 17,671,594 137,947 612,713 Liabilities Current 15,300,998 8,324,537 5,481,525 4,493,137 20,782,523 12,817,674 1,213,649 1,155,229 Long-term 366,169,899 362,740,661 84,279,542 96,061,945 450,449,441 458,802,606 1,327,535 2,308,165 Total Liabilities 381,470,897 371,065,198 89,761,067 100,555,082 471,231,964 471,620,280 2,541,184 3,463,394 Deferred Inflows 19,683,257 19,427,720 1,068,660 47,917 20,751,917 19,475,637 816,127 86,849 Net Position Net investment in capital assets 123,340,793 143,282,487 155,288,994 147,069,159 278,629,787 290,351,646 30,351,397 31,780,744 Restricted 11,332,302 11,639,254 34,701,170 33,936,695 46,033,472 45,575,949 - - Unrestricted (69,988) 3,673,134 30,004,802 30,785,421 29,934,814 34,458,555 (965,742) 485,200 Total Net Position $134,603,107 $158,594,875 $219,994,966 $211,791,275 $354,598,073 $370,386,150 $29,385,655 $32,265,944 • As of December 31, 2019, total assets and deferred outflows exceeded liabilities and deferred inflows by $354,598,073, a decrease of $15,788,077, or 4.3%, from the net position level as of December 31, 2018. • Governmental activities net position of $134,603,107 decreased by $23,991,768, or 15.1%, from December 31, 2018. • Business-type net position of $219,994,966 increased by $8,203,691, or 3.9%, from December 31, 2018. The increase in business-type net position was due primarily to higher than expected revenue in the Wastewater Utility. • Government-wide assets and deferred outflows of resources as of December 31, 2019 of $846,581,954 decreased by $13,794,298 or 1.60% as compared to total assets and deferred outflows of resources as of December 31, 2018. The decrease is primarily attributable to lower cash reserves as of December 31, 2019. • Government-wide liabilities and deferred inflows of resources as of December 31, 2019 of $491,983,881 increased by $887,964 or 0.18% as compared to total liabilities and deferred inflows of resources as of December 31, 2018. This increase was driven primarily by an increase in Customer Deposits Payable due to the reclassification of the Morris Palais Box Office fund as a governmental fund. This fund was previously classified as a fiduciary fund. 9 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 • Net position for the South Bend Public Transportation Corporation decreased by $2,880,289, or 8.9%. This decrease was driven primarily by depreciation expense on capital assets outpacing current year additions. Statement of Activities Governmental Activities Business-type Activities Government-wide Discrete Component Unit 2019 2018 2019 2018 2019 2018 2019 2018 Revenue Program revenue Charges for Services $5,658,913 $6,476,043 $79,266,404 $75,940,019 $84,925,317 $82,416,062 $1,437,390 $1,547,610 Operating grants 14,701,908 26,248,738 - 278,112 14,701,908 26,526,850 4,529,201 5,154,880 Capital grants 3,605,801 4,100,000 1,710,762 - 5,316,563 4,100,000 - - General revenue Taxes Property Tax 82,470,667 80,155,902 - - 82,470,667 80,155,902 4,220,655 3,948,880 Other Tax 35,472,965 33,527,962 1,275,000 1,275,000 36,747,965 34,802,962 - - State-shared revenue 13,680,283 4,819,125 - - 13,680,283 4,819,125 - - Investment Earnings 5,136,772 3,304,646 1,784,206 1,088,896 6,920,978 4,393,542 15,773 11,840 Other Revenue 17,646,068 10,554,893 10,607 - 17,656,675 10,554,893 740,759 968,260 Total Revenue 178,373,377 169,187,309 84,046,979 78,582,027 262,420,356 247,769,336 10,943,778 11,631,470 Expenses General Government 10,915,147 12,654,430 - - 10,915,147 12,654,430 - - Public Safety 92,017,691 69,209,163 - - 92,017,691 69,209,163 - - Highways & Streets 27,114,327 17,223,378 - - 27,114,327 17,223,378 - - Economic Development 44,698,518 33,801,755 - - 44,698,518 33,801,755 - - Culture & Recreation 24,641,558 26,076,331 - - 24,641,558 26,076,331 - - Interest on long-term debt 5,746,755 5,718,172 - - 5,746,755 5,718,172 - - Water Utility - - 16,268,059 14,788,847 16,268,059 14,788,847 - - Wastewater Utility - - 32,482,382 25,744,139 32,482,382 25,744,139 - - Century Center - - 5,469,673 5,287,797 5,469,673 5,287,797 - - Building Department - - 4,329,275 4,136,837 4,329,275 4,136,837 - - Parking - - 1,178,641 459,536 1,178,641 459,536 - - Solid Waste - - 5,481,420 5,467,986 5,481,420 5,467,986 - - Emergency Medical Svcs - - 7,864,987 8,987,340 7,864,987 8,987,340 - - Public Transportation - - - - - - 13,824,067 12,947,703 Total Expenses 205,133,996 164,683,229 73,074,437 64,872,482 278,208,433 229,555,711 13,824,067 12,947,703 Change in Net Position Before Transfers (26,760,619) 4,504,080 10,972,542 13,709,545 (15,788,077) 18,213,625 (2,880,289) (1,316,233) Transfers 2,768,851 5,229,661 (2,768,851) (5,229,661) - - - - Change in Net Position (23,991,768) 9,733,741 8,203,691 8,479,884 (15,788,077) 18,213,625 (2,880,289) (1,316,233) Beginning Net Position 158,594,875 148,861,134 211,791,275 203,311,391 370,386,150 352,172,525 $32,265,944 33,582,177 Ending Net Position $134,603,107 $158,594,875 $219,994,966 $211,791,275 $354,598,073 $370,386,150 $29,385,655 $32,265,944 Governmental Activities Net position for governmental activities decreased by $23,991,768 during fiscal 2019, a decrease of 15.1% from the balance of Net Position at December 31, 2018. Revenue of $178,373,377 increased by $9,186,068, or 5.4%. Expenses were $205,133,996 during 2019, an increase of $40,450,767, or 24.6% as compared to fiscal 2018. 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. Additionally, investment revenues increased dramatically in 2019, spurred by a larger asset pool in the investment portfolio and strong market performances. Governmental activities expenses increased significantly in 2019, due primarily to several large debt-funded expenditures that were not recognized as capital assets. Additionally, pension and OPEB expense increased significantly in 2019. 10 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 Business-type Activities Net position from business-type activities increased by $8,203,691 during fiscal 2019, an increase of 3.9% from the balance of Net Position at December 31, 2018. During 2019, business-type activities revenue of $84,046,979 increased by $5,464,952, or 6.95%, over fiscal 2018. During 2019, business-type activities expenses of $73,074,437 increased by $8,201,955, or 12.64%, when compared to fiscal 2018. These changes are due primarily to higher-than-expected revenue, particularly in the Wastewater Utility. Component Unit Net position for the South Bend Public Transportation Corporation decreased by $2,880,289. This decrease was primarily driven by increased expenses in the areas of labor, professional services, and material and supply expense. Total operating expenses increased by $855,416, or 7%. Additionally, operating grants from the federal and state governments decreased by $625,679, or 12.1%. Financial Analysis of Governmental Funds The City of South Bend uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Funds of the City are divided into three categories: governmental funds, proprietary funds and fiduciary funds. Condensed Balance Sheet, Statement of Revenue, Expenditures, and Changes in Fund Balance As of December 31, 2019 General Fund Parks and Recreation Public Safety LOIT COIT EDIT Rainy Day River West TIF Nonmajor Funds Total Total assets $45,457,570 $ 3,773,841 $ 3,264,927 $13,364,939 $18,075,472 $10,770,099 $37,456,274 $92,033,449 $224,196,571 Total liabilities 2,157,970 1,127,909 277,450 721,400 366,970 - 866,082 9,232,698 14,750,479 Fund Balances Nonspendable - 15,686 - - - - - - 15,686 Restricted - 2,630,246 2,987,477 - - - 36,590,192 77,010,483 119,218,398 Committed - - - - - - - 4,495,457 4,495,457 Assigned 820,834 - - 12,643,539 17,708,502 10,770,099 - 1,352,663 43,295,637 Unassigned 42,478,766 - - - - - - (57,852) 42,420,914 Total fund balances 43,299,600 2,645,932 2,987,477 12,643,539 17,708,502 10,770,099 36,590,192 82,800,751 209,446,092 Total liabilities and fund balances 45,457,570 3,773,841 3,264,927 13,364,939 18,075,472 10,770,099 37,456,274 92,033,449 224,196,571 Revenues 71,873,514 19,400,603 9,287,925 13,285,302 14,025,594 301,373 19,876,040 30,323,026 178,373,377 Expenditures 73,089,399 24,738,130 8,137,525 8,439,903 5,940,181 - 17,090,497 79,044,491 216,480,126 Net Surplus (deficit) (1,215,885) (5,337,527) 1,150,400 4,845,399 8,085,413 301,373 2,785,543 (48,721,465) (38,106,749) Other sources (uses) 5,885,685 587,998 - (3,837,252) (5,643,431) - (4,203,837) 20,898,222 13,687,385 Net Change in Fund Balances 4,669,800 (4,749,529) 1,150,400 1,008,147 2,441,982 301,373 (1,418,294) (27,823,243) (24,419,364) Beginning Fund Balance 38,629,800 7,395,461 1,837,077 11,635,392 15,266,520 10,468,726 38,008,486 110,623,994 233,865,456 Ending Fund Balance 43,299,600 2,645,932 2,987,477 12,643,539 17,708,502 10,770,099 36,590,192 82,800,751 209,446,092 As of December 31, 2019, the City governmental funds reported a combined ending fund balance of $209,446,092. 11 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 The nonspendable fund balance of $15,686 is sequestered for inventory, and is, therefore, not available for new spending. The restricted fund balance of $119,218,398 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 $4,495,457 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 $43,295,637 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 $42,420,914 consists of money primarily in the General Fund that has not been obligated in any manner by the City less deficits in certain nonmajor governmental funds due primarily to accrued wages 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, 2019, the General Fund balance of $43,299,600 represents an increase of $4,669,800, or 12.1% from the balance as of December 31, 2018. 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, 2019, the General Fund had an unassigned fund balance of $42,478,766 which is equal to 58.1% of 2019 General Fund expenditures. 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 2019 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 2019. 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, 2019. The Parks and Recreation Fund balance decreased by $4,749,529 during fiscal 2019, due primarily to the planned spend down of fund balance on the My SB Parks & Trails capital projects. As of December 31, 2019, the fund balance in the Parks and Recreation Fund was $2,645,932, or 10.7% of 2019 expenditures. The City has a policy to maintain fund reserves equal to at least 25% of annual expenditures in this fund, and did not meet this target as of December 31, 2019. This was primarily due to much higher than normal expenditures on capital projects during 2019. 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 12 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 of $1,150,400 during 2019 was due to increased revenue for this fund for police and fire personnel. The ending fund balance was $2,987,477, or 36.7% 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 $1,008,147 during 2019, due to an unanticipated excess income tax distribution. 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 streetlights, and certain debt service payments. As of December 31, 2019, the COIT Fund balance was $12,643,539, or 149.8% of 2019 expenditures and transfers out. This level of fund reserves is significantly higher than the City policy target of 50%. The EDIT Fund balance increased by $2,441,982 during 2019 due to lower than anticipated expenses related to initiatives of Community Investment and an unanticipated excess income tax distribution. 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, 2019, the EDIT fund balance was $17,708,502, or 298.1% of 2019 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, 2019 was $10,770,099 or 3.9% of government-wide expenses during 2019, and meets the City’s cash reserve policy goal of 3.0%. The fund balance in the River West TIF Fund decreased by $1,418,294 during 2019. This change was the result of spending down previously received TIF revenue on capital projects. As of December 31, 2019, the River West TIF Fund balance was $36,590,192, entirely restricted for use in economic development projects. During 2019, the fund balances in nonmajor governmental funds decreased by $27,823,243 due to the spend-down of previously issued bond proceeds on capital projects. The total balance in nonmajor governmental funds was $82,800,751 at December 31, 2019. 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 nonmajor governmental funds is provided in the form of the combining statements immediately following the Required Supplemental Information within the Financial Section of the CAFR. Governmental Fund Revenue 13 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 The following schedule presents a summary of governmental fund revenue for the year ended December 31, 2019 with comparison to the prior year: 2019 Actual % of Total 2018 Actual % of Total Tax Based General Property $ 82,470,667 46.2% $ 80,155,902 47.4% Local Income Tax 34,842,965 19.5% 33,527,962 19.8% Hotel/Motel Tax 630,000 0.4% - 0.0% Total Tax 117,943,632 66.1% 113,683,864 67.2% Non-Tax Based Licenses & Permits 284,048 0.2% 245,956 0.1% Intergovernmental 31,987,992 17.9% 35,167,863 20.8% Charges for Services 5,658,913 3.2% 5,735,251 3.4% Fines and Forfeitures 1,124,570 0.6% 494,836 0.3% Interest Income 5,136,772 2.9% 3,304,646 2.0% Other 16,237,450 9.1% 10,554,893 6.2% Total Non-Tax Based 60,429,745 33.9% 55,503,445 32.8% Total Revenue $ 178,373,377 100.0% $ 169,187,309 100.0% Tax revenue continues to represent the most significant source of revenue required to support services provided by the City. Property tax revenue is the primary source of funding for governmental expenditures. Property tax revenue is based on a relationship between two variables. The first variable is the 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 Incremental Financing (TIF) Funds, and a special levy to cover debt service for City-issued Parks bonds. 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, the City of Mishawaka Common Council, and Saint Joseph County Council (together comprising the local income tax council) have adopted a Local Income Tax rate of 1.75%. The Local Income Tax consists of four components: 0.50% for the expenditure rate– certified shares component (formerly the County Option Income Tax), 0.40% for the economic development component (formerly the Economic Development Income Tax), 0.25% for the public safety component (formerly the Public Safety Local Option Income Tax), and a 0.60% property tax relief component. The property tax relief component of the Local Income Tax does not result in any direct revenue to the City, but rather reduces circuit breaker property tax losses. The City continues to seek diversified sources of revenue that will reduce its reliance on property and income taxes. One viable source of revenue is from user fees and/or charges for services currently being performed. City-performed services are priced at levels representing the full cost of service, taking into consideration fees charged by providers of similar services. The City performs ongoing reviews of user fee costs incurred and revises service fee prices as required. 14 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 Total tax revenue was $117,943,632 during 2019 and increased by $4,259,768, or 3.7%, from 2018. 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 2019. Total non-tax-based revenue was $60,429,745 and increased $4,926,300, or 8.9%, from 2018. This is due primarily from an increase in interest and investment income, as well as certain payments received from insurance. 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, 2019 with comparison to fiscal year 2018. 2019 Actual % of Total 2018 Actual % of Total General Government $ 11,714,095 5.4% $ 12,763,226 6.9% Public Safety 74,695,638 34.5% 75,530,051 40.6% Highways and Streets 19,636,991 9.1% 16,906,126 9.1% Community & Economic Development 20,706,436 9.6% 22,179,273 11.9% Culture and Recreation 26,106,656 12.1% 16,597,764 8.9% Debt Service 20,420,060 9.4% 18,983,039 10.2% Capital Outlay 43,200,250 20.0% 23,240,519 12.5% Total Expenditures $ 216,480,126 100.0% $186,199,998 100.0% Governmental fund expenditures in fiscal 2019 of $216,480,126 increased by $30,280,128, or 16.3%, in comparison to governmental fund expenditures in fiscal 2018. Capital outlay expenditures increased by $19,959,731 or 85.9% during 2019 due primarily to the City’s “MySB Parks and Trails” initiative, which began in 2018 and will continue into 2020. This initiative is a significant capital investment. Public Safety expenditures continue to be the primary use of government fund resources with 34.5% of expenditures used for this purpose in fiscal 2019. Public safety spending is followed by capital outlay expenditures (20.0%), culture and recreation (12.1%), community and economic development (9.6%), debt service (9.4%), highways and streets (9.1%), and general government (5.4%). General government spending is comprised of the executive offices of the Mayor, Common Council, City Clerk, Legal, Controller, and other administrative functions. Overall governmental expenditures increased during 2019, 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 government expenditures decreased during 2019 due to increases in efficiencies among administrative departments. Proprietary funds 15 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 Condensed Statement of Net Position Revenue, Expenses, and Changes in Fund Net Position As of December 31, 2019 Enterprise Funds Water Utility Wastewater Utility Century Center Nonmajor Enterprise Total Governmental Activities Proprietary Internal Service Total assets $ 69,926,822 $ 192,963,144 $ 19,446,724 $ 27,013,376 $ 309,350,066 $ 24,500,412 Total deferred outflows 61,641 1,425,556 - - 1,487,197 - Total liabilities 15,752,971 63,784,048 333,948 9,902,670 89,773,637 6,197,761 Total deferred inflows 1,020,743 - 47,917 - 1,068,660 - Net Position Net investment in capital assets 39,556,598 91,566,761 16,603,459 7,562,176 155,288,994 (477,234) Restricted: - Debt service 289,490 1,091,452 - - 1,380,942 - Customer repair & deposit 1,291,844 414,550 - - 1,706,394 - Cash with fiscal agent 33,720 342,186 - 414,603 790,509 - Bond reserve 1,399,159 4,291,915 - - 5,691,074 - Operating reserve 2,912,439 5,582,848 - - 8,495,287 - Capital outlay 4,211,080 9,417,064 981,681 2,027,139 16,636,964 - Unrestricted 3,520,419 17,897,876 1,479,719 7,106,788 30,004,802 18,779,885 Total net position 53,214,749 130,604,652 19,064,859 17,110,706 219,994,966 18,302,651 Operating Revenues 20,406,057 41,324,779 3,268,026 14,233,418 79,232,280 41,787,836 Operating Expenses 15,392,358 30,285,289 5,419,345 18,538,581 69,635,573 41,938,132 Operating Income (Loss) 5,013,699 11,039,490 (2,151,319) (4,305,163) 9,596,707 (150,296) Non-Operating Revenue (Expenses) (459,806) (1,066,791) 1,237,662 (45,992) (334,927) 492,138 Income (Loss) before Contributions & Transfers 4,553,893 9,972,699 (913,657) (4,351,155) 9,261,780 341,842 Capital Contributions 173,745 9,602 683,912 843,503 1,710,762 - Transfers in - 200,000 - 4,063,540 4,263,540 - Transfers Out (1,722,624) (4,738,366) (90,752) (480,649) (7,032,391) (600,000) Change in Net Position 3,005,014 5,443,935 (320,497) 75,239 8,203,691 (258,158) Total Net Position - Beginning 50,209,735 125,160,717 19,385,356 17,035,467 211,791,275 18,560,809 Total Net Position - Ending $ 53,214,749 $ 130,604,652 $ 19,064,859 $ 17,110,706 $ 219,994,966 $ 18,302,651 The City of South Bend 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) nonmajor 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 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 insurance 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 16 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 included within governmental activities in the government-wide financial statements but are combined into a single, aggregated presentation in the proprietary fund financial statements. The internal service funds have been combined into a single, aggregated presentation. As of December 31, 2019, City enterprise funds reported a net position of $219,994,966, an increase of $8,203,691, or 3.9%, from the net position at December 31, 2018. At December 31, 2019, enterprise fund net position includes net investment in capital assets of $155,288,994, restricted net position of $34,701,170 and unrestricted net position of $30,004,802. During 2018, the Water utility experienced an increase in net position of $3,005,014 and the Wastewater utility experienced an increase in net position of $5,443,935. The Water utility experienced increased operating revenues of $3,638,774 while the Wastewater utility experienced an increase in operating revenue of $1,393,350. 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 and 2019. During 2019, Century Center experienced a decrease in net position of $320,497. 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. Nonmajor Enterprise Funds experienced an increase in net position of $75,239 during 2019. The Parking Garage Fund reported an increase in net position of $702,966 primarily as the result of capital contributions paid for by the Major Moves Fund. The Consolidated Building Fund reported an increase in net position of $140,353 during 2019. The Solid Waste Fund reported an increase in net position of $2,857 and continues to accumulate capital lease debt to finance new trash trucks. Emergency Medical Service reported a decrease in net position of $770,937 as a result of continually declining reimbursement for ambulance services, especially with respect to Medicaid patients. Internal Services Funds reported net position of $18,302,651 at December 31, 2019, a decrease of $258,158, or 1.4%, compared to net position at December 31, 2018. The Liability Insurance Fund increased in net position by $3,103,717 in 2019 as the result of insurance proceeds stemming from the 2018 flood. The Central Services Fund increased its net position by $216,666. The Self-Funded Employee Benefits Fund decreased in net position by $3,011,333 due to the intentional spend-down of fund balance in this fund. 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 $1,813,516 at December 31, 2019, a decrease of $490,667 over the end of 2018. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City maintains four fiduciary funds, which consist of two pension trust funds (1925 Police Officers’ Pension and 1937 Firefighters’ Pension) and two custodial funds (Payroll and Police Distributions Payable). Pension Trust Custodial Total Assets $ 1,039,559 $ 1,192,799 Total Liabilities 171 1,192,799 Total Net Position 1,039,388 - Total Additions 10,608,305 111,126,568 Total Deductions 10,833,654 Changes in Net Position $(225,349) $ - 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 17 111,126,568 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 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. 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 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 2019 budget at its meeting held in October 2018. The General Fund budget applicable for fiscal 2019 is reported as follows: Original Final Actual Budgetary Basis Variance Revenue / Transfers In $ 64,707,205 $ 65,911,607 $ 67,746,844 $ 1,835,237 Expenditures / Transfers Out 64,707,205 66,355,336 63,071,065 $ 3,284,271 Surplus (Deficit) $ - $ (443,729) $ 4,675,779 $ 5,119,508 General Fund revenue/transfers in was originally budgeted at $64,707,205 for fiscal 2019. During the year, the General Fund revenue/transfers in budget was increased by $1,204,402 to $65,911,607. The budget may be increased or decreased at any time based on updated revenue projections. By closely aligning the budget with actual results, the City is able to increase the meaningfulness of its analysis. The revenue/transfers in budget was increased primarily due to an increase in the property tax estimate because of higher collections than anticipated. During 2019, the General Fund collected $67,746,844 in revenue/transfers in on a budgetary basis, which was $3,039,639 higher than the original budget. This difference is 4.7% more than the original budget. This increase over budget is due mainly to higher-than-budgeted property tax receipts in 2019. General Fund expenditures/transfers out were originally budgeted at $64,707,205 for fiscal 2019. During the year, the General Fund expenditure/transfers out budgets were increased by $1,648,131 to $66,355,336. Additional appropriations were passed for Fire Department renovations and other purposes. Carry forward of unspent encumbrances from 2018 also increased the 2019 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 2019, 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. 18 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 General Fund expenditures/transfers out incurred on a budgetary basis, including cash expended and outstanding encumbrances as of year-end December 31, 2019, amounted to $63,071,065. The expenditures/transfers out and commitments as of year-end December 31, 2019 are less than the 2019 amended General Fund budget by $3,284,271 or 4.94%. 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. Capital Assets and Debt Administration Statement of Capital Assets of the Primary Government Governmental Activities Business-type Activities Government-wide 2019 2018 2019 2018 2019 2018 Assets not depreciated Land $14,496,141 $14,496,141 $2,586,613 $2,614,014 $17,082,754 $17,110,155 Construction in Progress 26,595,503 18,009,789 6,241,020 17,841,033 32,836,523 36,956,635 Total 41,091,643 32,505,930 8,827,633 20,455,047 49,919,277 54,066,790 Assets depreciated Buildings 129,152,007 120,384,084 85,371,558 83,425,676 214,523,566 203,809,760 Non-building improvements 21,454,732 21,052,069 26,920,828 26,873,450 48,375,560 47,925,519 Machinery and Equipment 48,243,704 48,608,151 44,777,958 43,574,154 93,021,662 92,182,305 Roads and Infrastructure 478,788,961 468,753,379 233,323,602 216,476,719 712,112,563 685,230,098 Total Cost 677,639,404 658,797,683 390,393,947 370,349,999 1,068,033,351 1,029,147,682 Accumulated Depreciation Buildings 55,005,394 52,451,586 40,325,666 38,629,055 95,331,060 91,080,641 Non-building improvements 11,680,799 10,967,455 9,801,239 8,608,656 21,482,038 19,576,111 Machinery and Equipment 34,237,386 33,842,342 26,945,733 25,771,251 61,183,119 59,613,593 Roads and Infrastructure 340,699,917 327,964,417 84,342,115 79,317,195 425,042,032 407,281,612 Total Accumulated Depreciation 441,623,496 425,225,800 161,414,752 152,326,157 603,038,248 577,551,957 Net Depreciated Assets 236,015,908 233,571,883 228,979,195 218,023,842 464,995,103 451,595,725 Net Capital Assets $277,107,551 $266,077,813 $237,806,828 $238,478,889 $514,914,379 $505,662,515 The investment in capital assets includes land and land improvements, buildings and building improvements, vehicles, information technology equipment, machinery and equipment, and construction in progress. A detailed explanation of these capital assets can be found in the Notes to the Basic Financial Statements. Under the category of roads and infrastructure, the current cost amount of $712,112,563 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 2019 Included in capital asset additions for 2019 were the following major projects: • Wastewater: Secondary Treatment Improvement ($16,071,306) • Venues Parks & Arts Construction in Progress: Howard Park improvements ($17,568,687) • Venues Parks & Arts: Charles Black renovations ($4,406,949) • Streets: Dr. MLK Jr Streetscape improvements ($3,818,000) • Fire Department: Fire Station #4 ($3,351,062) 19 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 Capital Assets Analysis As of December 31, 2019, government-wide capital assets were valued at $514,914,379, net of accumulated depreciation, an increase of $7,015,731, or 1.83%, since December 31, 2018. Construction in Progress decreased by $4,120,112, and capitalized assets in land, buildings, improvements, machinery and equipment, and roads increased by $13,371,976, net of depreciation, since December 31, 2018. At December 31, 2019, the cost of Roads & Infrastructure ($712,112,563) was the major asset class followed by Buildings ($214,523,566) and Machinery & Equipment ($93,021,662). Total depreciation expense was $32,649,270 for 2019, as compared to $31,715,747 for 2018. Depreciation expense was $20,379,357 for governmental activities and $12,269,913 for business-type activities for 2019. 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, 2019 was $244,349,532, a decrease of $15,470,467, or 5.95% from 2018. 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 $ 18,737,645 $ - $ (942,298) $ 17,795,347 Revenue Bonds 120,483,913 9,447,841 (7,538,423) 122,393,330 Mortgage Bonds 8,300,854 - (1,986,658) 6,314,196 Notes and Loans 4,108,822 - (347,671) 3,761,150 Capital Leases 12,832,195 1,632,870 (4,042,727) 10,422,338 Total Governmental Activities Debt 164,463,430 11,080,711 (14,857,778) 160,686,361 Business-Type Activities Revenue Bonds 80,178,104 2,814,257 (12,281,925) 70,710,436 Mortgage Bonds 4,951,978 - (315,534) 4,636,444 Notes and Loans 2,231,783 - (215,694) 2,016,089 Capital Leases 7,994,705 798,498 (2,493,001) 6,300,202 Total Business-Type Activities Debt 95,356,570 3,612,755 (15,306,154) 83,663,171 Total Debt $ 259,820,000 $ 14,693,465 $(30,163,932) $ 244,349,532 During 2019, the City entered into capital lease agreements in the amount of $2,431,368 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 2019 was on average less than 2% for these leases. Under the Indiana Constitution and State statute, the City's general obligation bonded debt and certain other debt is subject to a legal limitation based upon 2% of 1/3 of the total assessed value of real and personal property. The City issued a lease rental revenue bond in 2019 related to the construction of new 20 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 tracks for the South Shore railway, which is owned by the Northern Indiana Commuter Transportation District (NICTD). This debt issuance of $9,250,000 is not 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 - Lonvg-term Debt. Significant Subsequent Events In March 2020, the United States of America, the State of Indiana, and local county and city governments declared states of emergency related to the outbreak of the COVID-19 virus. This pandemic and the resulting impact on the local economy will have far-reaching effects on the City’s financial condition, including the potential for the loss of future tax revenue and charges for services revenue, as well as increased expenses related to the response to, cleanup of, and economic recovery from the virus. The City continues to monitor and track the financial impact of this situation. Economic Factors and 2019 Budget Economic Factors Property tax revenue, historically and at present, is the principal source of revenue for funding of governmental activities within the City of South Bend. The State of Indiana General Assembly enacted property tax reform legislation in March 2008. Known as the “Circuit Breaker”, House Enrolled Act 1001 (HEA 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. 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 2019, the primary funds supported by property taxes (General Fund, Parks and Recreation Fund, and Cumulative Capital Development Fund) lost approximately $35.9 million in taxable property tax levy due to the circuit breaker caps (Indiana Legislative Services Agency, Circuit Breaker Report, May 2019). 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 21 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 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. The City anticipates significant financial difficulties in the economy in the latter part of 2020, stemming mainly from the outbreak of the COVID-19 virus. Therefore, the 2020 budget and the budgets for future will likely be amended to reflect lower revenue estimates and increased need for economic stimulus. 2020 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 with the Center for Priority Based Budgeting for the 2019 and 2020 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 has developed 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, 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 2021 that will remain fiscally responsible to the effective delivery of required services to city residents and stakeholders within the existing revenue constraints, as well as new revenue constraints imposed by the uncertain economic conditions we now face. Specific concerns for the 2021 budget include the continuing impact of circuit breaker property tax reform on City revenue, the need for economic stimulus in our city and the need to address ever-increasing public safety costs, 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, 2019. Questions concerning any of the information provided in this report, or requests for additional information, should be addressed to: 22 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2019 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, 2020 23 City of South Bend, Indiana Statement of Net Position December 31, 2019 Governmental Business-type Component Activities Activities Total Unit Assets Cash and cash equivalents 78,707,560$ 9,243,698$ 87,951,258$ 271,478$ Investments 144,980,441 18,054,808 163,035,249 - Receivables: Accounts 2,463,455 5,808,871 8,272,326 106,852 Interest 673,685 195,362 869,047 - Allowance for doubtful accounts - (160,100) (160,100) - Intergovernmental 353,751 - 353,751 - Loans 6,426,532 - 6,426,532 242,750 Lease - - - 1,145,205 Internal balances (33,387) 33,387 - - Inventory 925,897 975,743 1,901,640 441,384 Prepaid expenses 932,816 16,356 949,172 - Restricted assets 64,678 37,362,543 37,427,221 - Property held for resale 8,993,197 - 8,993,197 - Capital assets: Assets not subject to depreciation 41,091,643 8,827,633 49,919,276 1,622,941 Assets subject to depreciation - net 236,015,908 228,979,195 464,995,103 28,774,409 Total assets 521,596,176 309,337,496 830,933,672 32,605,019 Deferred outflows of resources Unamortized loss on refunding 1,880,927 1,487,197 3,368,124 - Deferred outflows related to pensions 11,049,619 - 11,049,619 137,947 Deferred outflows related to OPEB 1,230,539 - 1,230,539 - Total deferred outflows of resources 14,161,085 1,487,197 15,648,282 137,947 Liabilities Accounts payable 7,158,244 2,395,352 9,553,596 260,540 Due to other governmental units - 10,824 10,824 - Performance deposits payable 111,540 7,000 118,540 - Accrued liabilities and other: Accrued payroll payable 2,698,841 515,954 3,214,795 40,173 Accrued interest payable 2,166,416 497,569 2,663,985 - Taxes payable 1,261 78,572 79,833 - Customer deposits payable 3,065,972 1,760,365 4,826,337 - Unearned revenue - 711 711 118,858 Other current payables 98,724 215,178 313,902 115,250 Noncurrent liabilities: Due within one year: Compensated absences 6,282,709 616,372 6,899,081 274,946 Claims payable 2,771,618 - 2,771,618 - Notes and loans payable 355,246 199,656 554,902 548,828 General obligation bonds payable 980,000 - 980,000 - Mortgage bonds payable 1,931,280 318,720 2,250,000 - Capital leases 3,816,805 2,560,264 6,377,069 - Revenue bonds payable 7,231,441 6,935,000 14,166,441 - 24 City of South Bend, Indiana Statement of Net Position (Continued) December 31, 2019 Governmental Business-type Component Activities Activities Total Unit Liabilities (continued) Due in more than one year: Notes and loans payable 3,405,904 1,816,433 5,222,337 307,529 General obligation bonds payable 16,815,347 - 16,815,347 - Mortgage bonds payable 4,382,916 4,317,724 8,700,640 - Capital leases 6,605,533 3,739,938 10,345,471 - Revenue bonds payable 115,161,889 63,775,435 178,937,324 - Net pension liability 171,967,397 - 171,967,397 875,060 Total OPEB liability 24,461,814 - 24,461,814 - Total liabilities 381,470,897 89,761,067 471,231,964 2,541,184 Deferred inflows of resources Unamortized service agreement - 47,917 47,917 - Unamortized gain on refunding - 1,020,743 1,020,743 - Deferred inflows related to pensions 12,486,614 - 12,486,614 816,127 Deferred inflows related to OPEB 7,196,643 - 7,196,643 - Total deferred inflows of resources 19,683,257 1,068,660 20,751,917 816,127 Net position Net investment in capital assets 123,340,793 155,288,994 278,629,787 30,351,397 Restricted: Debt service 11,332,302 1,380,942 12,713,244 - Customer repair and deposit - 1,706,394 1,706,394 - Cash with fiscal agent - 790,509 790,509 - Bond reserve - 5,691,074 5,691,074 - Operating reserve - 8,495,287 8,495,287 - Capital outlay - 16,636,964 16,636,964 - Unrestricted (69,988) 30,004,802 29,934,814 (965,742) Total net position 134,603,107$ 219,994,966$ 354,598,073$ 29,385,655$ 25 City of South Bend, Indiana Statement of Activities December 31, 2019 Program Revenue Net (Expense) Revenue and Changes in Net Position Operating Capital Grants Primary Government Charges for Grants and and Governmental Business-type Component Expenses Services Contributions Contributions Activities Activities Total Unit Functions/programs Primary government: Governmental activities: General government 10,915,147$ 452,796$ 280,560$ -$ (10,181,791)$ -$ (10,181,791)$ -$ Public safety 92,017,691 521,835 10,983,558 - (80,512,298) - (80,512,298) - Highways and streets 27,114,327 244,790 779,200 - (26,090,337) - (26,090,337) - Community and economic development 44,698,518 199,405 2,628,590 - (41,870,523) - (41,870,523) - Culture and recreation 24,641,558 4,240,087 30,000 3,605,801 (16,765,670) - (16,765,670) - Interest on long-term debt 5,746,755 - - - (5,746,755) - (5,746,755) - Total governmental activities 205,133,996 5,658,913 14,701,908 3,605,801 (181,167,374) - (181,167,374) - Business-type activities: Water utility 16,268,059 20,440,181 - 173,745 - 4,345,867 4,345,867 - Wastewater utility 32,482,382 41,324,779 - 9,602 - 8,851,999 8,851,999 - Century center 5,469,673 3,268,026 - 683,912 - (1,517,735) (1,517,735) - Consolidated building 4,329,275 2,043,272 - - - (2,286,003) (2,286,003) - Parking garage 1,178,641 1,004,401 - 843,503 - 669,263 669,263 - Solid waste 5,481,420 5,465,311 - - - (16,109) (16,109) - Emergency medical services 7,864,987 5,720,434 - - - (2,144,553) (2,144,553) - Total business-type activities 73,074,437 79,266,404 - 1,710,762 - 7,902,729 7,902,729 - Total primary government 278,208,433$ 84,925,317$ 14,701,908$ 5,316,563$ (181,167,374) 7,902,729 (173,264,645) - Component unit: South Bend Public Transportation Corp.13,824,067$ 1,437,390$ 4,529,201$ -$ -$ -$ -$ (7,857,476)$ General revenue: Taxes: Property taxes 82,470,667 - 82,470,667 4,220,655 Income taxes 34,842,965 - 34,842,965 - Hotel/motel taxes 630,000 1,275,000 1,905,000 - State-shared revenue 13,680,283 - 13,680,283 - Unrestricted investment income 5,136,772 1,784,206 6,920,978 15,773 Gain on sale of capital assets - 10,607 10,607 - Other miscellaneous income 17,646,068 - 17,646,068 740,759 Total general revenue 154,406,755 3,069,813 157,476,568 4,977,187 Transfers 2,768,851 (2,768,851) - - Change in net position (23,991,768) 8,203,691 (15,788,077) (2,880,289) Net position - Beginning of year (restated)158,594,875 211,791,275 370,386,150 32,265,944 Net position - End of year 134,603,107$ 219,994,966$ 354,598,073$ 29,385,655$ 26 City of South Bend, IndianaGovernmental FundsBalance SheetDecember 31, 2019Parks and Public SafetyNonmajorGeneral FundRecreationLOITCOITEDITRainy DayRiver West TIFFundsTotalAssetsCash and cash equivalents 13,289,026$ 1,134,442$ 973,750$ 3,808,078$ 5,204,189$ 3,212,171$ 9,969,178$ 35,177,177$ 72,768,011$ Investments 31,582,202 2,515,102 2,280,037 8,916,619 12,185,277 7,521,303 20,981,025 45,175,589 131,157,154 Receivables:Accounts410,652 68,665 - 6 354,660 - - 100,091 934,074 Interest136,403 8,446 11,140 44,983 61,345 36,625 96,198 212,371 607,511 Intergovernmental39,287 - - - - - - 314,464 353,751 Loans- - - - - - 675,000 5,751,532 6,426,532 Due from other funds- 31,500 - - - - - - 31,500 Advances to other funds- -- 420,253 - - - 2,488,902 2,909,155 Inventory- 15,686 - - - - - - 15,686 Property held for resale- --175,000 270,001 -5,734,873 2,813,323 8,993,197 Total assets 45,457,570$ 3,773,841$ 3,264,927$ 13,364,939$ 18,075,472$ 10,770,099$ 37,456,274$ 92,033,449$ 224,196,571$ LiabilitiesAccounts payable 327,870$ 845,705$ -$ 721,400$ 329,007$ -$ 713,057$ 2,964,592$ 5,901,631$ Due to other funds19,205 10,919 - - 31,963 - - 74,456 136,543 Advances from other funds- - - - - - 100,000 2,809,155 2,909,155 Performance deposits payable68,950 - - - 6,000 - 23,025 13,565 111,540 Accrued liabilities and other:Accrued payroll payable1,704,582 266,284 277,450 - - - - 277,337 2,525,653 Taxes payable521 740 - - - - - - 1,261 Other current payables36,842 4,261 - - - - 30,000 27,621 98,724 Customer deposits- -- -- --3,065,972 3,065,972 Total liabilities 2,157,970 1,127,909 277,450 721,400 366,970 -866,082 9,232,698 14,750,479 Fund balancesNonspendable - 15,686 - - - - - - 15,686 Restricted- 2,630,246 2,987,477 - - - 36,590,192 77,010,483 119,218,398 Committed- -- - - - - 4,495,457 4,495,457 Assigned820,834 - - 12,643,539 17,708,502 10,770,099 - 1,352,663 43,295,637 Unassigned42,478,766 - -- -- -(57,852) 42,420,914 Total fund balances 43,299,600 2,645,932 2,987,477 12,643,539 17,708,502 10,770,099 36,590,192 82,800,751 209,446,092 Total liabilities and fund balances 45,457,570$ 3,773,841$ 3,264,927$ 13,364,939$ 18,075,472$ 10,770,099$ 37,456,274$ 92,033,449$ 224,196,571$ See notes to financial statements27 City of South Bend, Indiana Governmental Funds Reconciliation of the Balance Sheet to the Statement of Net Position December 31, 2019 Fund balances reported in governmental funds 209,446,092$ 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 275,916,280 Prepaid expenses are not available to pay for current period expenditures, and therefore are deferred in the funds 30,001 Deferred outflows on refunding are not due and payable in the current period and are not reported in the funds 1,880,927 Deferred outflows related to pensions are not due and payable in the current period and are not reported in the funds 11,049,619 Deferred outflows related to OPEB are not due and payable in the current period and are not reported in the funds 1,230,539 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 (158,953,178) Accrued interest is not due and payable in the current period and is not reported in the funds (2,156,676) 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 (6,030,680) Net pension liabilities do not present a claim on current financial resources and are not reported as fund liabilities (171,967,397) Total OPEB liability does not present a claim on current financial resources and is not reported as fund liability (24,461,814) Deferred inflows of resources related to pensions do not present a claim on current financial resources and are not reported as fund liabilities (12,486,614) Deferred inflows of resources related to OPEB do not present a claim on current financial resources and are not reported as fund liabilities (7,196,643) Internal service funds are included as part of governmental activities 18,302,651 Change in net position of governmental activities 134,603,107$ See notes to financial statements 28 City of South Bend, IndianaGovernmental FundsStatement of Revenue, Expenditures, and Changes in Fund BalancesDecember 31, 2019Parks and Public SafetyNonmajorGeneralRecreationLOITCOITEDITRainy DayRiver West TIFFundsTotalRevenueProperty taxes 42,705,987$ 10,048,047$ -$ -$ -$ -$ 18,555,308$ 11,161,325$ 82,470,667$ Income taxes - - 9,205,130 12,879,847 12,673,893 - - 84,095 34,842,965 Hotel/motel taxes - - - - - - 395,000 235,000 630,000 Licenses and permits 280,898 - - - - - - 3,150 284,048 Intergovernmental 15,701,473 4,526,393 - 12,500 - - 41,206 11,706,420 31,987,992 Charges for services 1,631,092 2,651,303 - - - - 2,160 1,374,358 5,658,913 Fines and forfeitures 24,258 - - - 709,320 - - 390,992 1,124,570 Investment income 950,609 139,253 82,795 364,177 486,150 301,373 773,030 2,039,385 5,136,772 Other revenue 10,579,197 2,035,607 - 28,778 156,231 - 109,336 3,328,301 16,237,450 Total revenue 71,873,514 19,400,603 9,287,925 13,285,302 14,025,594 301,373 19,876,040 30,323,026 178,373,377 ExpendituresCurrent:General government 6,026,645 - - 4,818,658 288,426 - - 580,366 11,714,095 Public safety 62,137,788 - 8,137,525 380,612 2,818,011 - - 1,221,702 74,695,638 Highways and streets 3,299,842 - - 158,648 445,439 - - 15,733,062 19,636,991 Community and economic development - - - 1,041,696 1,973,826 - 11,954,907 5,736,007 20,706,436 Culture and recreation 1,467,159 24,238,433 - 392,388 - - - 8,676 26,106,656 Bond issuance costs - - - - - - - 293,022 293,022 Capital outlay - - - - - - - 43,200,250 43,200,250 Debt service:Principal 151,720 456,371 - 1,557,180 233,538 - 3,938,315 7,787,466 14,124,590 Interest on long-term debt 6,245 43,326 - 90,721 180,941 - 1,197,275 4,483,940 6,002,448 Total expenditures 73,089,399 24,738,130 8,137,525 8,439,903 5,940,181 - 17,090,497 79,044,491 216,480,126 Excess of revenue (under) over expenditures (1,215,885) (5,337,527) 1,150,400 4,845,399 8,085,413 301,373 2,785,543 (48,721,465) (38,106,749) Other financing sources (uses)Issuance of debt - 168,970 - - - - - 8,619,487 8,788,457 Premium on debt - - - - - - - 1,462,841 1,462,841 Proceeds from sale of capital assets 44,170 8,160 - - 4,395 - - 10,511 67,236 Transfers in 6,475,990 410,868 - 927,077 178,534 - 62,261 19,424,705 27,479,435 Transfers out (634,475) - - (4,764,329) (5,826,360) - (4,266,098) (8,619,322) (24,110,584) Total other financing sources (uses) 5,885,685 587,998 - (3,837,252) (5,643,431) - (4,203,837) 20,898,222 13,687,385 Net change in fund balances4,669,800 (4,749,529) 1,150,400 1,008,147 2,441,982 301,373 (1,418,294) (27,823,243) (24,419,364) Fund balances - Beginning of year (restated) 38,629,800 7,395,461 1,837,077 11,635,392 15,266,520 10,468,726 38,008,486 110,623,994 233,865,456 Fund balances - End of year 43,299,600$ 2,645,932$ 2,987,477$ 12,643,539$ 17,708,502$ 10,770,099$ 36,590,192$ 82,800,751$ 209,446,092$ See notes to financial statements29 City of South Bend, Indiana Governmental Funds Reconciliation of the Statement of Revenue, Expenditures, and Changes in Fund Balances of Governmental Funds December 31, 2019 Net change in fund balances - Total governmental funds (24,419,364)$ Amount 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 31,581,491 Depreciation expense (20,254,801) Net book value of assets disposed and transferred (202,295) 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 14,148 Issuance of debt (from notes and loans payable, mortgage bonds payable, revenue bonds payable, and capital leases) provide financial resources to governmental funds, but issuing debt increases longterm liabilities in the statement of net position (8,788,457) Premium on debt proceeds provide financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position (1,462,841) Repayment of debt principal is an expenditure in the governmental funds, but not in the statement of activities (where it reduces long-term debt)14,124,590 Other adjustments related to debt premiums, discounts, deferred inflows, and deferred outflows 229,281 Changes in accrued interest payable and other 22,717 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 51,388 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 (592,826) 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 (14,036,641) Internal service funds are included as part of governmental activities - Net change in position (258,158) Change in net position of governmental activities (23,991,768)$ See notes to financial statements 30 City of South Bend, Indiana Proprietary Funds Statement of Net Position December 31, 2019 Governmental Activities Wastewater Nonmajor Proprietary Water Utility Utility Century Center Enterprise Total Internal Service Assets Current assets: Cash and cash equivalents 1,258,242$ 4,648,767$ 1,534,199$ 1,802,490$ 9,243,698$ 5,939,549$ Investments 2,946,176 10,885,094 3,007 4,220,531 18,054,808 13,823,287 Receivables: Accounts 1,109,042 2,494,435 276,741 1,928,653 5,808,871 1,529,381 Interest 50,039 117,631 7 27,685 195,362 66,174 Allowance for doubtful accounts (50,000) (85,100) - (25,000) (160,100) - Due from other funds 45,957 - - - 45,957 73,046 Inventory 767,993 166,478 41,272 - 975,743 910,211 Prepaid expenses 1,012 8,989 6,355 -16,356 902,815 Total current assets 6,128,461 18,236,294 1,861,581 7,954,359 34,180,695 23,244,463 Noncurrent assets: Restricted assets 10,091,647 23,289,523 981,684 2,999,689 37,362,543 64,678 Capital assets: Assets not subject to depreciation 1,645,426 5,028,659 713,434 1,440,114 8,827,633 - Assets subject to depreciation 52,061,288 146,408,668 15,890,025 14,619,214 228,979,195 1,191,271 Total noncurrent assets 63,798,361 174,726,850 17,585,143 19,059,017 275,169,371 1,255,949 Total assets 69,926,822 192,963,144 19,446,724 27,013,376 309,350,066 24,500,412 Deferred outflows of resources Unamortized loss on refunding 61,641 1,425,556 - -1,487,197 - Liabilities Current liabilities: Accounts payable 580,575 1,143,304 52,142 619,331 2,395,352 1,256,613 Due to other governmental units - - - 10,824 10,824 - Due to other funds - 5,085 4,281 3,204 12,570 1,390 Performance deposits payable - -- 7,000 7,000 - Accrued liabilities and other: Accrued payroll payable 164,572 242,345 19,803 89,234 515,954 173,188 Accrued interest payable 261,307 149,665 - 86,597 497,569 9,740 Taxes payable 64,727 759 13,086 - 78,572 - Customer deposits payable 1,282,166 410,758 67,441 - 1,760,365 - Unearned revenue - 711 - - 711 - Other current payables - - 138,509 76,669 215,178 - Compensated absences 208,474 270,834 38,686 98,378 616,372 252,029 Claims payable - - - - - 2,771,618 Notes and loans payable 23,099 176,557 - - 199,656 - Mortgage bonds payable - 78,720 - 240,000 318,720 - Capital leases 402,017 523,737 - 1,634,510 2,560,264 545,753 Revenue bonds payable 1,035,000 5,900,000 - -6,935,000 - Total current liabilities 4,021,937 8,902,475 333,948 2,865,747 16,124,107 5,010,331 Noncurrent liabilities: Notes and loans payable 244,589 1,571,844 - - 1,816,433 - Mortgage bonds payable - 40,124 - 4,277,600 4,317,724 - Capital leases 497,719 482,896 - 2,759,323 3,739,938 1,187,430 Revenue bonds payable 10,988,726 52,786,709 - -63,775,435 - Total noncurrent liabilities 11,731,034 54,881,573 -7,036,923 73,649,530 1,187,430 Total liabilities 15,752,971 63,784,048 333,948 9,902,670 89,773,637 6,197,761 Enterprise Funds See notes to financial statements 31 City of South Bend, Indiana Proprietary Funds Statement of Net Position (Continued) December 31, 2019 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 - Unamortized gain on refunding 1,020,743 - - - 1,020,743 - Total deferred inflows of resources 1,020,743 - 47,917 - 1,068,660 - Net position Net investment in capital assets 39,556,598 91,566,761 16,603,459 7,562,176 155,288,994 (477,234) Restricted: Debt service fund 289,490 1,091,452 - - 1,380,942 - Customer repair and deposit fund 1,291,844 414,550 - - 1,706,394 - Cash with fiscal agent 33,720 342,186 - 414,603 790,509 - Bond reserve fund 1,399,159 4,291,915 - - 5,691,074 - Operating reserve fund 2,912,439 5,582,848 - - 8,495,287 - Capital outlay fund 4,211,080 9,417,064 981,681 2,027,139 16,636,964 - Unrestricted 3,520,419 17,897,876 1,479,719 7,106,788 30,004,802 18,779,885 Total net position 53,214,749$ 130,604,652$ 19,064,859$ 17,110,706$ 219,994,966$ 18,302,651$ Enterprise Funds See notes to financial statements 32 City of South Bend, Indiana Proprietary Funds Statement of Revenue, Expenses, and Changes in Net Position December 31, 2019 Governmental Activities Wastewater Nonmajor Proprietary Water Utility Utility Century Center Enterprise Total Internal Service Operating revenue Metered revenue 13,915,025$ 40,041,105$ -$ -$ 53,956,130$ -$ Convention fees - - 3,092,797 - 3,092,797 - Fire protection revenue 2,881,785 - - - 2,881,785 - Licenses and permits - - - 2,029,442 2,029,442 - Interest and penalty charges 83,219 568,202 - - 651,421 - Parking fees - - 99,493 988,355 1,087,848 - Solid waste fees - - - 5,463,922 5,463,922 - Employee/employer contributions - - - - - 25,431,560 Charges for sales and services - - - 5,711,959 5,711,959 13,487,052 Water leak insurance revenue 1,039,109 - - - 1,039,109 - Charges to other funds 1,734,889 396,831 66,045 - 2,197,765 - Other 752,030 318,641 9,691 39,740 1,120,102 2,869,224 Total operating revenue 20,406,057 41,324,779 3,268,026 14,233,418 79,232,280 41,787,836 Operating expenses Cost of water 3,342,420 - - - 3,342,420 - Cost of sewage treatment - 16,523,567 - - 16,523,567 - Other operation and maintenance 597,817 887,896 49,674 15,076,265 16,611,652 22,964,358 General and administration 6,949,797 5,417,142 4,305,252 1,685,325 18,357,516 917,103 Insurance claims and premiums - - - - - 17,932,116 Plumbing contractors 1,076,542 - - - 1,076,542 - Customer service 1,453,962 - - - 1,453,962 - Depreciation 1,971,820 7,456,684 1,064,419 1,776,991 12,269,914 124,555 Total operating expenses 15,392,358 30,285,289 5,419,345 18,538,581 69,635,573 41,938,132 Operating income (loss)5,013,699 11,039,490 (2,151,319) (4,305,163) 9,596,707 (150,296) Nonoperating revenue (expenses) Investment income 381,771 1,130,302 12,990 259,143 1,784,206 549,579 Hotel/motel tax revenue - - 1,275,000 - 1,275,000 - Interest expense (808,866) (2,023,789) - (272,849) (3,105,504) (59,773) (Loss) gain on sale of assets (66,835) (173,304) (50,328) (32,286) (322,753) 2,332 Other nonoperating revenue (expenses) 34,124 - - - 34,124 - Total nonoperating revenues (expenses) (459,806) (1,066,791) 1,237,662 (45,992) (334,927) 492,138 Income (loss) - before contributions and transfers 4,553,893 9,972,699 (913,657) (4,351,155) 9,261,780 341,842 Capital contributions - Other capital contributions 173,745 9,602 683,912 843,503 1,710,762 - Transfers in - 200,000 - 4,063,540 4,263,540 - Transfers out (1,722,624) (4,738,366) (90,752) (480,649) (7,032,391) (600,000) Changes in net position 3,005,014 5,443,935 (320,497) 75,239 8,203,691 (258,158) Net position - Beginning of year (restated) 50,209,735 125,160,717 19,385,356 17,035,467 211,791,275 18,560,809 Net position - End of year 53,214,749$ 130,604,652$ 19,064,859$ 17,110,706$ 219,994,966$ 18,302,651$ Enterprise Funds See notes to financial statements 33 City of South Bend, Indiana Proprietary Funds Statement of Cash Flows December 31, 2019 Governmental Activities Proprietary Wastewater Nonmajor Internal Service Water Utility Utility Century Center Enterprise Total Fund Cash flows from operating activities Receipts from customers and users 18,435,279$ 41,069,686$ 3,170,995$ 14,212,383$ 76,888,343$ 20,207,586$ Receipts from interfund services and reimbursements 1,718,928 407,211 66,045 - 2,192,184 20,081,917 Payments to suppliers (6,466,209) (9,949,579) (2,316,219) (5,312,855) (24,044,862) (34,986,089) Payments to employees (4,574,485) (6,566,452) (1,827,225) (9,345,017) (22,313,179) (5,312,531) Internal activity - payments to other funds (1,989,732) (5,750,830) (162,303) (2,159,071) (10,061,936) (743,920) Net cash provided by (used in) operating activities 7,123,781 19,210,036 (1,068,707) (2,604,560) 22,660,550 (753,037) Cash flows from noncapital financing activities Transfers from other funds - 200,000 - 4,063,540 4,263,540 - Hotel/motel tax - - 1,275,000 - 1,275,000 - Transfers to other funds (1,722,624) (4,738,366) (90,752) (480,649) (7,032,391) (600,000) Other nonoperating revenue 34,124 - --34,124 - Net cash (used in) provided by noncapital financing activities (1,688,500) (4,538,366) 1,184,248 3,582,891 (1,459,727) (600,000) Cash flows from capital and related financing activities Proceeds from capital debt contributions 173,745 9,602 - - 183,347 - Proceeds from capital debt issued for future capital purchase - - - 798,498 798,498 40,000 Proceeds from sales of capital assets 6,670 18,837 - 22,781 48,288 4,278 Purchase of capital assets (1,437,304) (6,007,864) - (1,890,499) (9,335,667) (31,846) Principal paid on capital debt (3,050,735) (6,571,402) - (1,767,203) (11,389,340) (408,700) Interest paid on capital debt (819,359) (1,875,178) -(283,755) (2,978,292) (53,727) Net cash (used in) provided by capital and related financing activities (5,126,983) (14,426,005) -(3,120,178) (22,673,166) (449,995) Cash flows from investing activities Interest received on investments 369,909 1,103,391 13,034 260,451 1,746,785 541,187 Proceeds from sale and maturities of investment securities (813,873) (2,234,592) 12,516 654,695 (2,381,254) (110,965) Net cash provided by (used in) investing activities (443,964) (1,131,201) 25,550 915,146 (634,469) 430,222 Net (decrease) increase in cash and cash equivalents (135,666) (885,536) 141,091 (1,226,701) (2,106,812) (1,372,810) Cash and cash equivalents - beginning of year 4,437,630 15,751,349 2,374,792 4,217,425 26,781,196 7,377,037 Cash and cash equivalents - end of year 4,301,964$ 14,865,813$ 2,515,883$ 2,990,724$ 24,674,384$ 6,004,227$ Enterprise Funds See notes to financial statements 34 City of South Bend, Indiana Proprietary Funds Statement of Cash Flows (Continued) December 31, 2019 Governmental Activities Proprietary Wastewater Nonmajor Internal Service Water Utility Utility Century Center Enterprise Total Fund Classification of cash and cash equivalents Cash and investments 4,204,418$ 15,823,374$ 1,537,206$ 6,023,021$ 27,588,019$ 19,762,836$ Restricted cash and investments 10,091,647 23,000,010 981,684 2,999,689 37,073,030 64,678 Less amounts classified as investments (9,994,101) (23,957,571) (3,007) (6,031,986) (39,986,665) (13,823,287) Total cash and cash equivalents 4,301,964$ 14,865,813$ 2,515,883$ 2,990,724$ 24,674,384$ 6,004,227$ Reconciliation of operating income (loss) to net cash from operating activities Operating income (loss) 5,013,699$ 11,039,490$ (2,151,319)$ (4,305,163)$ 9,596,707$ (150,296)$ Adjustments to reconcile operating income (loss) to net cash from operating activities: Depreciation and amortization 1,971,820 7,456,684 1,064,419 1,776,991 12,269,914 124,555 Lease proceeds used for noncapital expenses - - - - - 789,413 Changes in assets and liabilities: Receivables (211,133) - (15,633) (53,557) (280,323) (1,425,287) Allowance for uncollectable accounts - (65,797) - - (65,797) - Due from other funds (15,961) 10,380 - - (5,581) (73,046) Inventory 139,259 43,846 (6,490) - 176,615 (39,594) Prepaid expenses and other assets 5,354 (293) 8,668 8,859 22,588 (62,985) Accounts payable 166,898 292,082 (13,375) 278,151 723,756 282,359 Due to other governments - - - 2,236 2,236 - Performance deposit - - - (1,250) (1,250) - Due to other funds (10,380) 3,500 77 252 (6,551) 175 Accrued payroll payable 59,838 107,661 2,730 (107,067) 63,162 70,733 Compensated absences payable 29,143 114,948 3,441 (236,534) (89,002) 17,959 Taxes payable 11,632 759 - - 12,391 - Customer deposits (35,986) 206,065 (15,353) - 154,726 - Other current payables - - 54,128 32,522 86,650 - Unearned revenue (402) 711 - - 309 - Estimate of unfiled claims - - - - - (287,023) Net cash provided by (used in) operating activities 7,123,781$ 19,210,036$ (1,068,707)$ (2,604,560)$ 22,660,550$ (753,037)$ Significant noncash transactions Capital assets disposed (at cost) (421,392)$ (1,650,982)$ (55,601)$ (609,698)$ (2,737,673)$ (125,182)$ Capital asset contribution - - 683,912 843,503 1,527,415 - Work in progress completed transferred to capital assets - 17,236,003 - - 17,236,003 - Accumulated depreciation on disposals of capital assets 347,887 1,458,841 505,685 582,030 2,894,443 123,236 Amended/refunded revenue bond principal decrease 1,020,743 - - - 1,020,743 - Enterprise Funds See notes to financial statements 35 City of South Bend, Indiana Fiduciary Funds Statement of Fiduciary Net Position December 31, 2019 Pension Trust Custodial Funds Funds Assets Cash and cash equivalents 309,636$ 1,192,799$ Investments 725,014 - Receivables - Accounts - - Receivables - Interest 4,909 - Total assets 1,039,559 1,192,799$ Liabilities Accounts payable 171 -$ Accrued liabilities and other - 335,621 Customer deposits payable - - Police distribution payable - 857,178 Total liabilities 171 1,192,799$ Net position for pension benefits and other purposes 1,039,388$ -$ 36 City of South Bend, Indiana Fiduciary Funds Statement of Changes in Fiduciary Net Position December 31, 2019 Pension Trust Custodial Funds Funds Additions 27,534$ -$ - 40,211 - 107,339,435 - 3,787,134 - 111,126,568 Investment income - Interest and dividends Police asset seizures Payroll: Employee payroll Collection of taxes for other governments Total Payroll Contributions: On behalf 10,578,775 - Other 1,996 - Net contributions 10,580,771 - Total additions 10,608,305 111,126,568 Deductions 10,805,041 - - 111,126,568 - 40,211 28,613 - 10,833,654 111,126,568 (225,349) - 1,264,737 - Benefit payments Payroll distributions and payment of taxes to other governments Police distributions Administrative expenses Total deductions Net (decrease) increase in net position Net position - Beginning of year Net position - End of year 1,039,388$ -$ 37 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 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. The component units discussed below are included in the primary government's reporting entity because of the significance of their operational or financial relationships with the primary government. Blended compon ent units, although legally separate entities are in substance part of the government's operations and exist solely to provide services for the government; data from these units is combined with data of the primary government. Discretely presented component units are involved in activities of an operational nature independent from the primary government; their transactions are reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the government. 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 City of South Bend Building Corporation 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. Discretely Presented Component Unit The South Bend Public Transportation Corporation (Transpo) is a discretely presented component unit in these financial statements. Although the City does not have operational responsibility for Transpo, and no financial benefit or burden accrues to the City due to Transpo’s operations, Transpo is nonetheless fiscally dependent on the City, per the following relationship: Pursuant to Indiana law, Transpo is required to submit its proposed budget and tax levy to the Common Council of the City of South Bend for adoption. Specifically, Indiana Code § 6- 1.1-17-20 requires that Transpo, as a political subdivision governed by a majority of unelected officials, submit its proposed budget and property tax levy to the Common Council of the City of South Bend. Pursuant to Indiana Code § 6-1.1-17-20(e), the Common Council of the City of South Bend is required to review Transpo’s budget and proposed tax levy and adopt a final budget and tax levy for Transpo. The Common Council of the City of South Bend may reduce or modify, but may not increase, the proposed budget or tax levy. Because Transpo does not have the ability to complete the above essential events without substantive approval from the South Bend Common Council, it is fiscally dependent upon the City of South Bend, and the City of South Bend is financially accountable for Transpo. Transpo is therefore a component unit of the City of South Bend. 38 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 1 – Significant Accounting Policies (Continued) The financial statements of Transpo, including all note disclosures, may be obtained from its offices as follows: South Bend Public Transportation Corporation 1401 S Lafayette Blvd South Bend, IN 46613 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, 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. The following is a summary of the significant accounting policies used by the City. 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 primary government is reported separately from a discretely presented component unit for which the primary government is financially accountable. 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 a nd 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 39 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 1 – Significant Accounting Policies (Continued) 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 financial resources used to provide government services other than those specifically assigned to another fund. • 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 portion of the local 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 Certified Shares portion of the local 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 economic development portion of the local income tax . Expenditures include any lawful purpose of the 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 local income tax. • 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 value of 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's convention center. Financing is received from various user fees for conventions, meetings, and other 40 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 1 – Significant Accounting Policies (Continued) 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. 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 custodial funds account for assets held by the City as an agent for employee payroll, pension, and payroll deductions 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 wil l 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. 41 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 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. 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 42 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 1 – Significant Accounting Policies (Continued) 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 the requirements in GASB Statement No. 89, 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: Capital Asset Class Capitalization Threshold Useful 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 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 amo rtized 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 se parate 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 t his 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 43 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 1 – Significant Accounting Policies (Continued) 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 four items that qualify for reporting in this category: an unamortized amount relate d to a service agreement, an unamortized gain related to a sale/leaseback transaction, 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. 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 gover nment’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 (inventory, long-term portions of loans, 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- 44 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 1 – Significant Accounting Policies (Continued) 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 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 fu nd 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: 25 percent of annual expenditures • EDIT: 25 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, 2019 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 determin ed 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 45 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 1 – Significant Accounting Policies (Continued) with the benefit terms. Investments are reported at fair value. 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 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. • 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 leav e 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 46 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 1 – Significant Accounting Policies (Continued) 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 compens atory 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. 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, 2020. The City is currently evaluating the impact these standards will have on the financial statements when adopted. • GASB Statement No. 87: Leases o This statement requires the recognition of certain lease assets and liabilities for leases that were previously classified as operating leases and recognized as inflows or outflows of resources. 47 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 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, Studebaker Oliver Revitalization Grants, Economic Development State Grants, DCI Operating, DCI Federal Grants, Police State Seizure, Gift Donation Bequest, Police Curfew Violation, Unsafe Building, Law Enforcement Continuing Education, Rental Units Regulation, Loss Recovery, Code Enforcement, Local Road and Street, LOIT 2016 Special Distribution, Human Rights Federal Grants, Local Road and Bridge Grant, MVH Restricted, Morris and Palais Marketing, Morris PAC Self Promoted Events, Police Block Grants, Hazmat, Indiana River Rescue, Regional Police Academy, COPS MORE Grant, Federal Drug Enforcement, Urban Development Action Grant, Leaf Collection and Removal, Police K-9 Unit, Morris/Palais Box Office, City Cemetery, Bowman Cemetery, Industrial Revolving Fund. • Debt Service Funds - 2017 Park Bond Debt Service, College Football Hall of Fame Debt Service, Redevelopment Bond Airport Taxable, Coveleski Bond Debt Service Reserve, Redevelopment Bond Palais Royale, Fire Station #9 Debt Service, 2018 TIF Park Bond Debt Service Reserve, Century Center Energy Conservation Debt Service, Redevelopment Authority Debt Service, South Bend Building Corporation Debt Service, 2015 Smart Streets Bond Debt Service, 2015 Park Bond Debt Service, 2017 Eddy St. Commons Bond Debt Service • Capital Projects Funds – 2019 South Shore Double Tracking Bond Capital, Professional Sports Development, Coveleski Stadium Capital, Cumulative Capital Development, Cumulative Capital Improvement, Major Moves, Morris Performing Arts Center Capital, Redevelopment Retail Area (Leighton Plaza), Redevelopment General, TIF - West 48 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 2 – Stewardship, Compliance, and Accountability (Continued) Washington, TIF - River East Development, TIF - Southside Development Area No. 1, TIF - Douglas Road, TIF - River East Residential, Certified Technology Park, Palais Royale Historic Preservation, Airport Urban Enterprise Zone, 2018 Fire Station #9 Bond Capital, 2018 TIF Park Bond Capital, 2018 Zoo Bond Capital, 2017 Park Bond Capital, Equipment Vehicle Leasing, 2015 Park Bond Capital, 2015 Smart Streets Bond Capital, 2017 Eddy St. Commons Bond Capital 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 clas sifications, 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 Genera l 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 Authority Debt Service Fund and the Equipment Vehicle Leasing Fund. In 2019, these two funds had small expenditure variances that resulted in slightly higher-than-expected expenditures. Fund Deficits At December 31, 2019, the following funds reported deficits in fund equity, which are violations of State statute: Code Enforcement ($57,852). The Code Enforcement fund was created for the first payroll in 2020, which began during the month of December 2019. The negative fund balance represents accrued payroll for the month of December, which was not paid until January 2020. This deficit will be repaid from future revenue during 2020. 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. 49 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 3 – Deposits and Investments (Continued) 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. 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 inves tments 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: Bank Name Amount Held US Bank NA $ 10,334,140 1st Source Bank 7,099,590 Bank of New York Mellon 4,325,499 Centier Bank 2,078,333 Wells Fargo Bank, NA 641,890 Key Bank 62,110 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, 50 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 3 – Deposits and Investments (Continued) $68,808,863 in 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. At year end, the City had the following investments and maturities: Maturity Investment Type Fair Value Less than One Year One to Two Years More than Two Years U.S. Treasuries $ 11,119,338 $ 5,028,190 $ 5,066,791 $ 1,024,357 U.S. Government Agency Securities 57,689,525 15,069,001 40,602,816 20,017,708 Total $ 68,808,863 $ 20,097,191 $ 45,669,607 $ 3,042,065 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. The government of the United States of America 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 es tablished 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, 2019: The fair value of U.S. Treasuries and U.S. Government Agency securities of $68,808,863 are valued using significant other observable inputs (Level 2 inputs). 51 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 4 – Receivables The following receivable accounts have timing and credit characteristics different from typical accounts receivable. As of December 31, 2019 City funds recognized the following loan receivable balances. The schedule shows the total receivable and the porti on that is not due within one year. These loans were for economic development projects: Receivable Noncurrent TIF River West $ 675,000 $ 655,000 Nonmajor governmental funds: Economic development state grants 122,321 55,243 Community investment grants 202,563 157,999 Urban development action grant 422,297 338,192 Industrial revolving fund 5,004,351 3,903,394 Total nonmajor governmental funds $ 5,751,532 $ 4,454,828 Note 5 – Net Investment in Capital Assets The net investment in capital assets is calculated as follows: Governmental Activities Business-type Activities Total Capital assets not subject to depreciation $ 41,091,643 $ 8,827,633 $ 49,919,276 Capital assets subject to depreciation - Net 236,015,908 228,979,195 464,995,103 Deferred outflows (capital related) 1,880,927 1,487,197 3,368,124 Notes and loans payable - current (355,246) (199,656) (554,902) General obligations bonds payable-current (980,000) - (980,000) Mortgage bonds payable - current (1,931,280) (318,720) (2,250,000) Capital leases payable - current (3,816,805) (2,560,264) (6,377,069) Revenue bonds payable - current (7,231,441) (6,935,000) (14,166,441) Notes and loans payable - noncurrent (3,405,904) (1,816,433) (5,222,337) General obligations bonds payable-noncurrent (16,815,347) - (16,815,347) Mortgage bonds payable - noncurrent (4,382,916) (4,317,724) (8,700,640) Capital leases payable - noncurrent (6,605,533) (3,739,938) (10,345,471) Revenue bonds payable - noncurrent (115,161,889) (63,775,435) (178,937,324) Deferred inflows (capital related) - (1,020,743) (1,020,743) Unspent debt proceeds 5,038,676 678,882 5,717,558 Net investment in capital assets $123,340,793 $155,288,994 $278,629,787 The business-type activities' unspent debt proceeds are capital lease proceeds, reported as cash with fiscal agent 52 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 6 – Capital Assets Capital asset activity of the City's governmental and business-type activities was as follows: Governmental Activities Governmental Activities Balance January 1, 2019 Additions Disposals Balance December 31, 2019 Capital assets, non-depreciable Land $ 14,496,141 $ - $ - $ 14,496,141 Construction in progress 18,009,789 29,546,609 (20,960,896) 26,595,503 Total capital assets, non-depreciable 32,505,930 29,546,609 (20,960,896) 41,091,643 Capital assets, depreciable Buildings 120,384,084 9,713,735 (945,811) 129,152,007 Improvements other than buildings 21,052,069 415,903 (13,240) 21,454,732 Machinery and equipment 48,608,151 2,919,161 (3,283,608) 48,243,704 Roads and other infrastructure 468,753,380 10,035,582 - 478,788,961 Subtotal 658,797,683 23,084,380 (4,242,659) 677,639,404 Less accumulated depreciation for: Buildings 52,451,586 3,488,883 (935,075) 55,005,394 Improvements other than buildings 10,967,455 726,584 (13,240) 11,680,799 Machinery and equipment 33,842,343 3,428,389 (3,033,346) 34,237,386 Roads and other infrastructure 327,964,417 12,735,501 - 340,699,917 Subtotal 425,225,801 20,379,357 (3,981,661) 441,623,496 Net capital assets, depreciable 233,571,882 2,648,898 (204,872) 236,015,908 Total governmental activities capital assets, net $266,077,812 $32,195,507 $(21,165,768) $277,107,551 53 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 6 – Capital Assets (Continued) Business-type Activities Business-type Activities Balance January 1, 2019 Additions Disposals Balance December 31, 2019 Capital assets, non-depreciable Land $ 2,614,013 $ - $ (27,400) $ 2,586,613 Construction in progress 17,841,033 5,635,990 (17,236,003) 6,241,020 Total capital assets, non-depreciable 20,455,046 5,635,990 (17,263,403) 8,827,633 Capital assets, depreciable Buildings 83,425,676 2,457,663 (511,781) 85,371,558 Improvements other than buildings 26,873,450 104,244 (56,865) 26,920,828 Machinery and equipment 43,574,154 3,607,990 (2,404,186) 44,777,958 Roads and other infrastructure 216,476,719 17,438,959 (592,076) 233,323,602 Subtotal 370,349,999 23,608,856 (3,564,908) 390,393,947 Less accumulated depreciation for: Buildings 38,629,055 2,116,625 (420,015) 40,325,666 Improvements other than buildings 8,608,656 1,240,095 (47,513) 9,801,239 Machinery and equipment 25,771,251 3,464,609 (2,290,127) 26,945,733 Roads and other infrastructure 79,317,194 5,488,530 (463,610) 84,342,115 Subtotal 152,326,157 12,309,860 (3,221,264) 161,414,752 Net capital assets, depreciable 218,023,842 11,298,997 (343,643) 228,979,195 Total business-type activities capital assets, net $238,478,888 $ 16,934,987 $(17,607,047) $237,806,828 Accumulated depreciation additions shown in the two schedules above include depreciation expense and also include accumulated depreciation on assets transferred from other funds. Depreciation expense was charged to programs of the primary government as follows: Governmental Activities: General government $ 34,438 Public safety 2,725,077 Highways and streets, and other general infrastructure 14,028,110 Culture and recreation 2,927,230 Economic development 539,945 Internal service funds 124,556 Total governmental activities depreciation expense $ 20,379,357 Business-type Activities: Emergency medical service $ 484,641 Water 1,971,820 Wastewater 7,456,684 Century Center 1,064,419 54 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 6 – Capital Assets (Continued) Building department & code enforcement 209,188 Parking garage 261,297 Solid waste 821,865 Total business-type activities depreciation expense $ 12,269,913 Prior year accumulated depreciation for transfer into business-type activities 39,947 Total additions to accumulated depreciation per capital asset depreciation schedules $ 12,309,860 Construction Commitments The City has active construction projects at year end. As of December 31, 2019, the City's commitments with contractors are as follows: Project Spent to Date Remaining Commitment Governmental activities: Howard Park/Riverfront Trail Improvements $ 17,568,687 $ 1,264,972 Historic Leeper Park Improvements 1,240,836 131,978 Pulaski Park Improvements 502,656 376,030 Fire Station #9 3,589,660 92,043 Fire Station 11 Parking Lot Improvement 122,245 6,434 Fire Station 3 Renovations 66,879 639,813 Fire Station 6 Renovations 29,967 286,687 SBFD Training Center Classroom Building 625,317 32,911 Lincolnway East Corridor Improvements 433,833 63,210 Western Avenue Streetscape, Phase III 2,415,423 394,118 Total – governmental activities $ 26,595,503 $ 3,288,195 Business-type activities: Parking garages Wayne Street Parking Garage Structure Repairs $ 123,813 $ 24,207 Leighton Plaza Parking Garage Structure Repairs 184,281 36,029 Total Parking garages: 308,094 60,236 Water utility North Station Well #1 Replacement $ 681,218 $ 3,819 Prairie Ave Water Main Loop 130,704 61,796 South Wellfield Plant & Pressure Zone Imprvmnts 212,195 37,805 Olive Water Treatment Plant Improvements 159,550 1,475,896 Edison Filtration Plant Roof Replacement 19,200 470,500 Pinhook Water Treatment Plant Improvements 65,608 113,792 Total Water utility 1,268,475 2,163,608 Wastewater utility Airport Annexation Area Sanitary Sewer Ext $ 827,312 $ 54,245 WWTP Electrical Improvements 3,133,327 3,885,991 WWTP Raw Sewage Pump No. 2 Rehabilitation 385,080 38,070 Secondary Treatment & Disinfection Imprvmnts 318,734 475,036 Total Wastewater utility 4,664,452 4,453,343 Total – business-type activities $ 6,241,020 $ 6,677,188 Total $ 32,836,523 $ 9,965,383 55 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 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, 2019 is as follows: Receivable Fund Payable Fund Amount Due to/from Other Funds Parks & Recreation EDIT $31,500 Internal service Nonmajor governmental 73,046 Water Utility General 19,205 Parks & Recreation 10,919 EDIT 463 Nonmajor governmental 1,410 Wastewater Utility 5,085 Century Center 4,281 Nonmajor enterprise 3,204 Internal service 1,390 Total Water Utility 45,957 Total $150,503 The City has made the following long-term advances between funds: Receivable Fund Payable Fund Amount Advances from/to Other Funds COIT Nonmajor governmental $ 420,253 Nonmajor governmental River West TIF 100,000 Nonmajor governmental 2,388,903 Total nonmajor governmental 2,488,903 Total $ 2,909,156 Specific purposes of the advances are as follows: 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. 56 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 7 – Interfund Receivables, Payables, and Transfers (Continued) Interfund transfers reported in the fund financial statements are comprised of the following: Receivable Fund Payable Fund Amount General EDIT $15,000 Water Utility 1,722,624 Wastewater Utility 4,738,366 Total General 6,475,990 Parks and Recreation COIT 400,000 Nonmajor governmental 10,867 Total Parks and Recreation 410,867 COIT Nonmajor governmental 327,077 Internal service 600,000 Total COIT 927,077 EDIT Nonmajor governmental 178,534 River West TIF Nonmajor governmental 62,261 Nonmajor governmental General Fund 26,423 COIT 3,437,750 EDIT 3,282,451 River West TIF 4,266,098 Nonmajor governmental 7,840,583 Century Center 90,752 Nonmajor enterprise 480,649 Total Nonmajor governmental 19,424,706 Wastewater Utility Nonmajor governmental 200,000 Nonmajor enterprise General Fund 608,052 COIT 926,579 EDIT 2,528,909 Total nonmajor enterprise 4,063,540 Grand Total $31,742,975 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, Cu mulative 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. 57 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 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 $432,391. The following is a schedule by years of future minimum rental payments as of December 31, 2019: Years Ended December 31 Amount 2020 $ 423,026 2021 392,775 2022 394,275 2023 140,590 2024 142,527 2025-2030 451,975 Total $ 2,075,584 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 pre sent values of the net minimum lease payments under these capital leases as of December 31, 2019 are as follows : Years Ended December 31 Governmental Activities Business-type Activities 2020 $ 4,093,677 $ 2,688,868 2021 3,572,472 1,893,164 2022 1,906,918 1,410,749 2023 1,012,514 479,975 2024 271,588 84,750 2025 - 2028 200,000 - Total minimum lease payments 11,057,169 6,557,506 Less amount representing interest 634,830 257,304 Present value $ 10,422,339 $ 6,300,202 Assets acquired through capital leases still in effect are as follows: Governmental Activities Business-type Activities Buildings $ - $ 1,324,615 Machinery and Equipment 11,343,590 7,095,031 Total 11,343,590 8,419,646 Accumulated depreciation (4,293,895) (3,726,871) Net $ 7,049,695 $ 4,692,775 58 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 9 – Long-term Debt Long-term debt activity for the year ended December 31, 2019 is summarized as follows: Governmental Activities Beginning Balance Additions Reductions Ending Balance Due Within One Year Governmental Activities Bonds payable: General obligation $ 18,695,000 $ - $ (940,000) $ 17,755,000 $ 980,000 Less unamortized (discounts)/premiums 42,645 - (2,298) 40,347 - Net - general obligation 18,737,645 - (942,298) 17,795,347 980,000 Mortgage 7,755,045 - (1,864,355) 5,890,690 1,931,280 Less unamortized (discounts)/premiums 545,809 - (122,303) 423,506 - Net - mortgage 8,300,854 - (1,986,658) 6,314,196 1,931,280 Revenue 118,233,220 7,985,000 (7,338,538) 118,879,682 7,231,441 Less unamortized (discounts)/premiums 2,250,693 1,462,841 (199,885) 3,513,648 - Net - revenue 120,483,913 9,447,841 (7,538,423) 122,393,330 7,231,441 Total bonds payable 147,522,412 9,447,841 (10,467,379) 146,502,873 10,142,721 Notes from direct borrowings 4,108,822 - (347,671) 3,761,150 355,246 Capital leases 12,832,195 1,632,870 (4,042,727) 10,422,338 3,816,805 Subtotal 164,463,429 11,080,711 (14,857,778) 160,686,361 14,314,771 Accumulated Compensated Absences 6,316,138 6,282,710 (6,316,138) 6,282,710 6,282,710 Net pension liability 163,536,593 8,430,804 - 171,967,397 - Total other post-employment benefits (OPEB) liability 23,206,087 1,255,727 - 24,461,814 - Total governmental activities $ 357,522,247 $ 27,049,951 $ (21,173,916) $ 363,398,282 $ 20,597,481 Business-type Activities Beginning Balance Additions Reductions Ending Balance Due Within One Year Business-type activities: Bonds payable: Mortgage $ 4,889,955 $ - $ (310,645) $ 4,579,310 $ 318,720 Less unamortized (discounts)/premiums 62,023 - (4,889) 57,134 - Net - mortgage 4,951,978 - (315,534) 4,636,444 318,720 Revenue 80,085,000 2,814,257 (12,205,000) 70,694,257 6,935,000 Less unamortized (discounts)/premiums 93,104 - (76,925) 16,179 - Net - revenue 80,178,104 2,814,257 (12,281,925) 70,710,436 6,935,000 Total bonds payable 85,130,082 2,814,257 (12,597,460) 75,346,880 7,253,720 Capital leases payable 7,994,705 798,498 (2,493,001) 6,300,202 2,560,265 Notes from direct borrowings 2,231,783 - (215,694) 2,016,089 199,656 Total business-type activities $ 95,356,570 $ 3,612,755 $ (15,306,154) $ 83,663,171 $ 10,013,641 Total interest expense for the year was $9,024,479. The City does not have any unused lines of credit. 59 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 9 – Long-term Debt (Continued) 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 2019, the Water Utility paid $7,807,637 in debt payments or approximately 38 percent of operating revenue. The Wastewater Utility paid $8,525,713 in debt payments or approximately 21 percent of operating revenue. The City has pledged tax incremental financing revenue to meet tax incremental financing and Redevelopment Authority debt requirements. Mortgage Bonds The City issues bonds to provide for the acquisition and construction of major capital facilities. Bondholders of mortgage bonds have a claim on the real assets constructed or acquired with the bond proceeds, which the City puts up as collateral for the bond. The City has pledged assets as collateral in each of the mortgage bonds issued below. Collateralized assets include the Public Works Service Center, the Central Police Station and Central Fire Station, and the City’s Fire Training Center. Events of Default The bonds and direct borrowings of the City contain significant consequences for default. Default on the City’s long-term debt is generally defined as one of the following: 1) Failure of the City to make payment on the due date; 2) Declaration of bankruptcy or insolvency by the City; 3) In the case of revenue bonds, the failure to apply collected pledged revenues; 4) In the case of mortgage bonds or revenue bonds secured by a leased asset, the placement of a lien on the underlying asset. Nearly all of the City’s bonds and direct borrowings contain a provision that, in the event of a default, the outstanding principal and any outstanding interest of the debt become immediately due. The events of default are specific and enumerated in each of the provisions – none of the City’s bonds or direct borrowings contain a subjective acceleration clause. Bonds Outstanding at December 31, 2019 Purpose Outstanding 12/31/2019 Governmental Activities General Obligation Bonds South Bend Park District Bonds, Series 2017(A-K) - Interest rates 3% - 3.25% - Original issue $14,075,000 - Installments of $350,000 to $580,000 plus interest - Maturity January 15, 2033 $ 12,955,000 60 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 9 – Long-term Debt (Continued) 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 4,800,000 Total General Obligation Bonds $ 17,755,000 Mortgage Bonds Building Corporation County Option Income Tax Lease Rental Revenue Refunding Bonds of 2010 (Public Works Service Center) - Interest rates 2% - 5% - Original issue $6,075,000, 87.7% Governmental ($5,327,775) - Installments of $240,000 to $330,000 plus interest - Maturity February 1, 2021 $ 850,690 Building Corporation First Mortgage Revenue Refunding Bonds, Series 2012 (Police & Fire Station Projects) - Interest rates 2.1% - 5% - Original issue $13,595,000 - Installments of $545,000 to $770,000 plus interest - Maturity February 1, 2023 5,040,000 Total Governmental Mortgage Bonds $ 5,890,690 Revenue Bonds Indiana Bond Bank Special Program Bonds, Series 2011A (TIF A) - Interest rates 4% - 5.2% - Original issue $18,030,000 - Installments of $260,000 to $935,000 plus interest - Maturity August 1, 2024 $ 8,365,000 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 4,765,000 South Bend Redevelopment District Special Taxing District Refunding Bonds of 2014 - Interest rates 2% - 3% - Original issue $3,440,000 - Installments of $395,000 to $470,000 plus interest - Maturity January 1, 2022 925,000 61 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 9 – Long-term Debt (Continued) South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2015 (Refunding 2008) - Interest rates 2% - 5% - Original issue $31,450,000 - Installments of $650,000 to $1,210,000 plus interest - Maturity February 15, 2033 25,995,000 South Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds, Series 2013 (Refunding 2008) - Interest rates 2% - 4% - Original issue $3,990,000 - Installments of $160,000 to $375,000 plus interest * - Maturity May 1, 2026 2,245,000 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 2,014,682 South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2015 (Smart Streets Project) - Interest rates 3% - 4% - Original issue $25,000,000 - Installments of $460,000 to $840,000 plus interest - Maturity February 1, 2037 22,630,000 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 4,760,000 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 24,925,000 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 10,930,000 62 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 9 – Long-term Debt (Continued) 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 3,340,000 South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2019 (Double Tracking Project) - Interest rate 5% - Original issue $7,985,000 - Installments of $270,000 to $500,000 plus interest - Maturity February 1, 2030 7,985,000 Total Governmental Revenue Bonds $118,879,682 Total Governmental Activities $142,525,372 * - St. Joseph County has irrevocably pledged hotel-motel tax revenues to finance debt payments Business-Type Activities Mortgage Bonds Building Corporation County Option Income Tax Lease Rental Revenue Refunding Bonds of 2010 (Public Works Service Center) - 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 $ 119,310 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 4,460,000 Total Business-Type Mortgage Bonds $ 4,579,310 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 $ 1,235,000 Amended Water Works Revenue Bonds of 2009, Series B 63 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 9 – Long-term Debt (Continued) - Interest rates 5.41% to 5.89% - Original issue $2,814,256.87 - Installments of $124,257 to $455,000 plus interest - Maturity January 1, 2030 2,814,257 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 5,925,000 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 14,535,000 - Installments of $715,000 to $1,065,000 plus interest - Maturity December 1, 2024 3,450,000 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 17,200,000 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 2,035,000 Total Business-Type Revenue Bonds $ 70,694,257 Total Business-Type Activities $ 75,273,567 64 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 9 – Long-term Debt (Continued) Notes from Direct Borrowings and Direct Placements Purpose Outstanding 12/31/2019 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 $ 105,236 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 3,655,914 Total governmental activities $ 3,761,150 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 $ 267,688 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 1,748,401 Total business-type activities $ 2,016,089 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, 2019 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 obligation will be liquidated from the General Fund. 65 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 9 – Long-term Debt (Continued) Debt Service Requirements to Maturity Annual debt service requirements to maturity for the above bonds and note obligations are as follows: Bonds (General Obligation, Revenue, and Mortgage) Governmental Activities Business-type Activities Year Ending December 31 Principal Interest Total Principal Interest Total 2020 $10,142,721 $ 5,375,912 $15,518,633 $7,253,720 $ 2,248,134 $ 9,501,854 2021 10,933,754 5,146,112 16,079,866 7,415,590 2,071,496 9,487,086 2022 10,798,699 4,691,493 15,490,191 7,699,257 1,892,265 9,591,521 2023 10,498,053 4,225,694 14,723,747 7,675,000 1,696,781 9,371,781 2024 10,152,408 3,796,036 13,948,443 7,910,000 1,492,072 9,402,072 2025-2029 39,106,567 14,049,314 53,155,881 25,775,000 4,555,068 30,330,068 2030-2034 36,643,172 6,841,383 43,484,554 11,545,000 722,108 12,267,108 2035-2039 14,250,000 977,938 15,227,938 - - - Totals 142,525,372 45,103,880 187,629,252 75,273,567 14,677,922 89,951,489 Notes from Direct Borrowings Governmental Activities Business-type Activities Year Ending December 31 Principal Interest Total Principal Interest Total 2020 $ 355,246 $ 127,861 $ 483,107 $ 199,656 $ 58,151 $ 257,807 2021 326,878 115,838 442,716 205,396 52,411 257,807 2022 297,175 105,192 402,367 211,301 46,506 257,807 2023 303,221 94,738 397,959 217,376 40,430 257,806 2024 309,315 84,073 393,388 223,628 34,178 257,806 2025-2029 1,643,472 252,679 1,896,152 958,732 71,510 1,030,242 2030-2034 525,843 18,469 544,312 - - - 2035-2039 - - - - - - Totals 3,761,150 798,850 4,560,000 2,016,089 303,186 2,319,275 Current Refundings On November 5, 2019, the City of South Bend amended/refunded its Water Works Revenue bonds of 2009, Series B. These bonds were originally purchased by the Indiana Bond Bank. On November 5, 2019, the Indiana Bond Bank issued its Special Refunding Bonds, Series 2019 A-1 to take advantage of favorable interest rates and lower future debt service payments. These savings were passed on to the City. The City’s outstanding principal balance on the 2009, Series B bonds was reduced from $3,835,000 to $2,814,257 with interest rates ranging from 5.41% to 5.89%. This accounting gain of $1,020,743 is recognized as deferral of gain on refunding and will be amortized over the remaining debt service period. In so doing, the City saved $1,105,000 in debt service costs over the remaining life of the bonds. 66 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 10 – Restricted Assets At December 31, 2019, the balances of restricted assets in the enterprise funds are comprised of the following: Total Water Wastewater Century Center Consolidated Building Solid Waste EMS Debt service 1,373,875 286,131 1,087,744 - - - - Customer repair and deposit 3,874,212 1,287,448 2,586,764 - - - - Cash with fiscal agent 790,509 33,720 342,186 - 49,386 132,224 232,993 Bond reserve 5,686,302 1,394,387 4,291,915 - - - - Operating reserve 8,466,379 2,902,529 5,563,850 - - - - Capital outlay accounts 17,171,266 4,187,432 9,417,064 981,684 - 64,925 2,520,161 Total restricted assets 37,362,543 10,091,647 23,289,523 981,684 49,386 197,149 2,753,154 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, 2019, the market value of these properties is not known. These properties are recognized as assets in the funds that purchased the property. Note 12 – Service Concession Arrangement 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. On October 1, 2019, SMG merged with AEG Facilities to form a new company, ASM Global. The initial term of the contract extended through June 30, 2016, and has been extended twice to now be through December 31, 2022. ASM Global’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, ASM Global 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. 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 did not exceed commercial insurance coverage in 2019. There were no significant reductions in insurance by major category of risk. 67 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 13 – Risk Management (Continued) 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 2017, 2018 and 2019 by $218,522, $ 238,638, and $217,805, 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. A significant flooding event occurred in February 2018. During that month, 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. During 2019, the City agreed to insurance proceeds settlement of $2 million related to this loss, minus the City’s deductible. A portion of this payment was received in 2018, the remainder will be received in 2020 and is recognized as a receivable in the City’s Liability Reserve Fund as of December 31, 2019. It is anticipated that the insurance proceeds will cover a significant portion of the cost of repairs. Additional repair cost reimbursement was earned in 2018 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). C laim 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 2017, 2018, and 2019 by $109,466, $ 347,097, and $24,418, 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. 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. 68 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 13 – Risk Management (Continued) Changes in the estimated liability for the past two fiscal years were as follows: Liability Insurance Group Health 2019 2018 2019 2018 Unpaid claims - Beginning of year $ 2,139,926 $ 1,175,541 $ 919,015 $ 934,220 Incurred claims, including claims incurred but not reported 1,950,168 2,932,213 14,771,522 14,423,269 Claim payments (2,343,321) (1,967,828) (14,665,692) (14,438,474) Unpaid claims - End of year $ 1,746,773 $ 2,139,926 $ 1,024,845 $ 919,015 Contingent Liabilities 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 14 – Subsequent Events In March 2020, the United States of America, the State of Indiana, and local county and city governments declared states of emergency related to the outbreak of the COVID-19 virus. This pandemic and the resulting impact on the local economy will have far-reaching effects on the City’s financial condition, including the potential for the loss of future tax revenue and charges for services revenue, as well as increased expenses related to the response to, cleanup of, and economic recovery from the virus. The City continues to monitor and track the financial impact of this situation. Note 15 – Conduit Debt Obligations 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 secur ed by private sector revenue sources or by the underlying assets constructed with the bond proceeds, and are not secured by any asset or revenue source of the City, nor by the full faith and credit of the City. 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, 2019 there were eight series of conduit debt obligations o utstanding. The aggregate current principal outstanding on these debt obligations could not be determined, however, their original issue amounts totaled $53,590,000. During 2019 , the City approved no new conduit debt obligations. 69 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 16 – Fund Balance Constraints The detail of the various components of fund balance is as follows: General Fund Parks and Recreation Public Safety LOIT COIT EDIT Rainy Day River West TIF Nonmajor Funds Total Fund Balances Nonspendable Inventory $ - $ 15,686 $ - $ - $ - $ - $ - $ - $15,686 Total Nonspendable - 15,686 - - - - - - 15,686 Restricted Debt service - - - - - - - 11,332,302 11,332,302 General administration - - - - - - - 2,449,580 2,449,580 Police and fire salaries - - 2,987,477 - - - - - 2,987,477 Public safety programs - - - - - - - 868,162 868,162 Street maintenance - - - - - - - 10,311,482 10,311,482 Economic development - - - - - - 36,590,192 34,575,001 71,165,193 Parks maintenance - 2,630,246 - - - - - - 2,630,246 Public safety capital - - - - - - - 300,330 300,330 Cultural capital projects - - - - - - - 11,868,713 11,868,713 Street capital projects - - - - - - - 5,304,913 5,304,913 Total Restricted - 2,630,246 2,987,477 - - - 36,590,192 77,010,483 119,218,398 Committed General administration - - - - - - - 1,519,358 1,519,358 Public safety programs - - - - - - - 160,316 160,316 Economic development - - - - - - - 1,828,136 1,828,136 Cultural capital - - - - - - - 987,647 987,647 Total Committed - - - - - - - 4,495,457 4,495,457 Assigned General administration 820,834 - - 12,643,539 17,708,502 10,770,099 - - 41,942,974 Public safety programs - - - - - - - 2,403 2,403 Street maintenance - - - - - - - 430,490 430,490 Economic development - - - - - - - 919,770 919,770 Total Assigned 820,834 - - 12,643,539 17,708,502 10,770,099 - 1,352,663 43,295,637 Unassigned 42,478,766 - - - - - - (57,852) 42,420,914 Total fund balances 43,299,600 2,645,932 2,987,477 12,643,539 17,708,502 10,770,099 36,590,192 82,800,751 209,446,092 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. 70 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 17 – Segment Information Types of Goods or Services Provided: Used to account for the operations and purchases of necessary equipment for the Fire Department and Emergency Medical Services Department. Condensed Statement of Net Position Assets: Cash and cash equivalents $ 1,962,213 Receivables 1,470,995 Prepaid items - Restricted cash and cash equivalents 2,753,154 Capital assets (net of accumulated depreciation) 4,498,900 Total assets 10,685,262 Liabilities: Current liabilities 893,572 Mortgage bonds payable, net 4,277,600 Capital leases payable 825,922 Total liabilities 5,997,094 Net position: Net investment in capital assets (1,057,532) Restricted 2,195,207 Unrestricted 3,550,493 Total net position $ 4,688,168 Condensed Statement of Revenues, Expenses, and Changes in Net Position Operating revenues $ 5,720,434 Other operating expenses (7,181,408) Depreciation expense (484,641) Operating income (loss) (1,945,615) Nonoperating revenues (expenses): Interest revenue 150,084 Interest expense (198,938) Gain on exchange of capital assets 10,607 Interfund transfers in 1,534,631 Interfund transfers out (321,706) Change in net position (770,937) Total net position - beginning 5,459,105 Total net position - ending $ 4,688,168 Condensed Statement of Cash Flows: Net cash provided (used) by: Operating activities $ (1,740,323) Noncapital financing activities 1,212,925 Capital and related financing activities (1,586,508) Investing activities 1,044,211 Net increase (decrease) in cash and cash equivalents (1,069,695) Cash and cash equivalents, January 1 2,644,114 Cash and cash equivalents, December 31 $ 1,574,419 71 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 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 GASB Statement 75. Namely, employer contributions to the OPEB plan are not irrevocable, nor are any plan assets legally protected from creditors. 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 SBRHP 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, 2019, the City contributed $774,470 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, 2019, the following employees were covered by the benefit terms: Active employees with coverage 941 Active employees without coverage 148 Retirees 66 Total 1,155 Total OPEB Liability The City’s total OPEB liability of $24,461,814 was measured as of December 31, 2019 but was determined by an actuarial valuation as of December 31, 2018. 72 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 18 – Other Postemployment Benefits (Continued) 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: Inflation 2.25 percent per year Salary increases 2.25 percent, average, including inflation Discount rate 4.11 percent as of December 31, 2018 and 3.44% as of January 1, 2018 Healthcare cost trend rates 9.0 percent for 2018, decreasing 0.5 percent per year to an ultimate rate of 4.5 percent for 2027 and later years Retirees' share of benefit- related costs approximately 37 percent for projected health insurance premiums for retirees and approximately 43% fore retiree and spouse 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, 2019 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 Total OPEB Liability Balance at 1-1-19 $ 23,206,087 Changes for the year: Service cost 1,049,065 Interest 981,132 Changes in benefit terms - Differences between expected and actual experience - Changes in assumptions or other inputs - Benefit payments (774,470) Net changes 1,255,727 Balance at 12-31-19 $ 24,461,814 There have been no substantive plan provision changes since the last full valuation, which was for the fiscal year ending December 31, 2018. 73 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 18 – Other Postemployment Benefits (Continued) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City as of December 31, 2019, 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: 1% Decrease Discount Rate 1% Increase (3.11%) (4.11%) (5.11%) Total OPEB Liability $ 26,795,040 $ 24,461,814 $ 22,335,679 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 rate: Healthcare 1% Decrease Cost Trend 1% Increase (7.5% Rates (8.5% (9.5% decreasing decreasing decreasing to 3.5% to 4.5% to 5.5% Total OPEB Liability $ 21,749,168 $ 24,461,814 $ 27,649,676 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2019, the City recognized OPEB expense of $1,367,296. At December 31, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Difference between expected and actual $ 1,230,539 $ - experience Changes in assumptions or other inputs - (7,196,643) Total $ 1,230,539 $ (7,196,643) 74 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 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: Year ended December 31: Amount 2020 $ (662,901) 2021 (662,901) 2022 (662,901) 2023 (662,901) 2024 (662,901) Thereafter (2,651,599) 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. 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 36-8-7). 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. 75 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 19 – Pension Plans (Continued) 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: PERF Hybrid consists of two components: a monthly, employer-funded defined benefit component and a member-funded defined contribution account. For the defined benefit component, retirement benefits for employees are calculated as years of credible service times the average highest 20 quarters of salary times 1.1 percent. 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. 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. For the defined contribution component of the Hybrid plan, an employee who leaves service may withdraw his or her Annuity Savings Account contributions, plus any accumulated interest. •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 based on the severity with a catastrophic disability receiving 100% of salary and less severity receiving lesser amounts ranging down to 35% of salary. 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 76 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 19 – Pension Plans (Continued) 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 Officer’s Pension Plan 1937 Firefighters’ Pension Plan Date of member count December 31, 2019 December 31, 2019 Inactive plan members or beneficiaries currently receiving benefits 197 143 Active plan members 4 2 Total employees covered by the plan 201 145 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, 2019 was 11.2 percent of annual payroll for the PERF Hybrid plan and 10.2% of annual payroll for the MyChoice Plan. Contributions to the plan from the City were $3,401,818 for the year ended December 31, 2019. 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, 2019 was 17.5 percent of annual payroll. Contributions to the plan from the City were $5,231,635 for the year ended December 31, 2019. 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 $6,107,782 during 2019 on behalf of the City. The City has recognized these on behalf payments as intergovernmental revenue and public safety expenditures in the General Fund. 77 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 19 – Pension Plans (Continued) 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 $4,462,993 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. Public Employees’ Retirement Fund 1977 Police Officers’ and Firefighters’ Pension and Disability 1925 Police Officers’ 1937 Firefighters’ Measurement date used for the City NPL June 30, 2019 June 30, 2019 December 31, 2019 December 31, 2019 Based on a comprehensive actuarial valuation as of June 30, 2019 June 30, 2019 December 31, 2019 December 31, 2019 Changes in the net pension liability during the measurement year were as follows: 1925 Police Officers’ Pension Plan Increase (Decrease) Changes in Net Pension Liability Total Pension Liability Plan Net Position Net Pension Liability Balance at December 31, 2018 $ 81,564,082 $ 949,185 $ 80,614,897 Service cost 84,969 - 84,969 Interest 2,445,011 - 2,445,011 Plan Amendments 870,092 - 870,092 Experience (gains)/ losses 278,613 - 278,613 Assumption Changes 7,451,976 - 7,451,976 Non-employer contributing entity contributions - 6,107,782 (6,107,782) Net investment income - 18,102 (18,102) Benefit payments, including refunds (6,112,665) (6,363,550) 250,885 Administrative expenses - (10,304) 10,304 Net changes: 5,017,996 (247,970) 5,265,966 Balance at December 31, 2019 $ 86,582,078 $ 701,215 $ 85,880,863 The plan's fiduciary net position represents 0.81 percent of the total pension liability. 78 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 19 – Pension Plans (Continued) 1937 Firefighters Pension Plan Increase (Decrease) Changes in Net Pension Liability Total Pension Liability Plan Net Position Net Pension Liability Balance at December 31, 2018 $63,424,661 $315,552 $63,109,109 Service cost 62,978 - 62,978 Interest 1,865,607 - 1,865,607 Plan Amendments 941,442 - 941,442 Experience (gains)/ losses (1,096,354) - (1,096,354) Assumption Changes 5,758,955 - 5,758,955 Non-employer contributing entity contributions - 4,462,993 (4,462,993) Net investment income - 9,432 (9,432) Benefit payments, including refunds (4,420,816) (4,439,496) 18,680 Administrative expenses - (10,309) 10,309 Net changes: 3,111,812 22,620 3,089,192 Balance at December 31, 2019 $66,536,473 $338,172 $66,198,301 The plan's fiduciary net position represents 0.51 percent of the total pension liability. Public Employees’ Retirement Fund At December 31, 2019, the City reported a liability of $19,576,553 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2019 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, 2019, relative to all other contributing employers. At June 30, 2019, the City's proportion was 0.59232 percent, which was an increase of 0.00909% from its proportion measured as of June 30, 2018. 1977 Police Officers’ and Firefighters’ Pension and Disability Fund At December 31, 2019, the City reported a liability of $311,680 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2019 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, 2019, relative to all other contributing employers. At June 30, 2019, the City's proportion was 3.38195 percent, which was a decrease of 0.05551 from its proportion measured as of June 30, 2018. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 79 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 19 – Pension Plans (Continued) Public Employees' Retirement Fund Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $ 518,380 $ - Changes in assumptions 4,358 2,128,116 Net difference between projected and actual earnings on pension plan investments - 925,334 Employer contributions to the plan subsequent to the measurement date 1,764,247 - Changes in proportion and difference between employer contributions and proportionate share of contributions 354,820 33,330 Total $ 2,641,805 $ 3,086,780 1977 Police Officers' and Firefighters' Pension and Disability Fund Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $ 5,664,269 $ 1,105,854 Changes in assumptions - 5,372,895 Net difference between projected and actual earnings on pension plan investments - 2,829,522 Employer contributions to the plan subsequent to the measurement date 2,628,998 - Changes in proportion and difference between employer contributions and proportionate share of contributions 114,547 87,745 Total $ 8,407,814 $ 9,396,016 1925 Police Officers’ Pension Plan Deferred Inflows of Resources Investment experience $ 1,028 1937 Firefighters’ Pension Plan Deferred Inflows of Resources Investment experience $ 2,790 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): 80 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 19 – Pension Plans (Continued) Public Employees' Retirement Fund Year Ending June 30 Amount 2020 $ (606,287) 2021 (1,305,182) 2022 (225,906) 2023 (71,847) 2024 - Thereafter - Total $ (2,209,222) 1977 Police Officers' and Firefighters' Pension and Disability Fund Year Ending June 30 Amount 2020 $ (391,810) 2021 (2,201,867) 2022 (1,780,644) 2023 (804,926) 2024 380,673 Thereafter 1,181,374 Total $ (3,617,200) 1925 Police Officers’ Pension Plan Year Ending June 30 Amount 2020 $ (244) 2021 (244) 2022 (245) 2023 (295) 2024 - Thereafter - Total $ (1,028) 1937 Firefighters’ Pension Plan Year Ending June 30 Amount 2020 $ (669) 2021 (669) 2022 (670) 2023 (782) 2024 - Thereafter - Total $ (2,790) 81 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 19 – Pension Plans (Continued) 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: Public Employees' Retirement Fund 1977 Police Officers' and Firefighters' Pension and Disability Fund 1925 Police Officers' Pension Plan 1937 Firefighters' 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 Mortality Table with adjustments for mortality improvements based on Social Security Administration 2014 Trustee Report RP-2014 Blue Collar Set Mortality Table with adjustments for mortality improvements based on Social Security Administration 2014 Trustee Report RP-2014 Blue Collar Set Mortality Table with adjustments for mortality improvements based on Social Security Administration 2014 Trustee Report RP-2014 Blue Collar Set Mortality Table with adjustments for mortality improvements based on Social Security Administration 2014 Trustee Report The actuarial assumptions used in the June 30, 2019 actuarial valuation date valuation were based on the results of an actuarial experience study for the four years ended June 30, 2014. 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. 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. Public Employees' Retirement Fund 1977 Police Officers' and Firefighters' Pension and Disability Fund 1925 Police Officers' Pension Plan 1937 Firefighters' Pension Plan Assumed investment rate of return 6.75% 6.75% 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% 2.13% 2.13% 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 2.13 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). 82 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 19 – Pension Plans (Continued) Investment Rate of Return Best estimates of geometric 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% 4.9% Private Equity 14% 7.0% Fixed Income - Ex Inflation-Linked 20% 2.5% Fixed Income - Inflation-Linked 7% 1.3% Commodities 8% 2.0% Real Estate 7% 6.7% Absolute Return 10% 2.9% Risk Parity 12% 5.3% 1925 Police Officers’ Pension Plan Asset Class Long-term Expected Real Rate of Return Cash or cash equivalents 1.75% Fixed income investments 1.75% 1937 Firefighters’ Pension Plan Asset Class Long-term Expected Real Rate of Return Cash or cash equivalents 1.75% Government agency securities 1.75% Sensitivity of the Net Pension Liability to Changes in the Discount Rate Pension Plan 1% Decrease (5.75%) Discount (6.75%) 1% Increase (7.75%) Public Employees’ Retirement Fund $ 31,440,203 $ 19,576,553 $ 9,681,362 1977 Police Officers' and Firefighters' Pension and Disability Fund $ 34,488,465 $ 311,680 $ (27,290,585) 83 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 19 – Pension Plans (Continued) Pension Plan 1% Decrease (1.13%) Discount (2.13%) 1% Increase (3.13%) 1925 Police Officers' Pension Plan $ 95,192,461 $ 85,880,863 $ 78,000,224 1937 Firefighters' Pension Plan $ 73,501,980 $ 66,198,301 $ 60,026,990 Detailed Information 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. 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 There were no actuarial assumptions’ changes in the Public Employees Retirement Fund (PERF) and the 1977 Police Officers’ and Firefighters’ Pension and Disability Fund that impacted the net pension liability. The following actuarial assumption changes occurred for the 1925 Police Officers and 1937 Firefighters pension plans since the Prior Measurement Date. 84 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 19 – Pension Plans (Continued) • Discount rate: The discount rate used for the December 31, 2019 valuation was 2.13%, as directed by INPRS, based on the Barclay’s 20-year Municipal Bond Index as of December 31, 2019. This is a decrease from the 3.10% used for the December 31, 2018 valuation. • Cost-of-living-adjustment (COLA): For converted members, the July 1, 2019 COLA was updated from the ongoing valuation assumption of 2.0% to reflect the known increase of 1.6%. Beginning July 1, 2020 the assumption reverts back to the assumed annual rate of 2.0%. For non-converted members, there was no change from the rate of 2.5%. 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 pensi on 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 equivalent s, 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, 2019: Asset Class Allocation Target Cash or cash equivalents 24% Government agency securities 76% Rate of Return For the year ended December 31, 2019, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 1.75 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: Pension Net Pension Expenses Deferred Deferred Plan Description Liability (Income) Inflows Outflows Public Employees' Retirement Fund $ 19,576,553 $ 3,534,744 $ 3,086,780 $ 2,641,805 1977 Police Officers and Firefighters Pension and Disability Fund 311,680 10,700,760 9,396,016 8,407,814 1925 Police Officers' Pension Plan 85,880,863 11,113,806 1,028 - 1937 Firefighters' Pension Plan 66,198,301 7,526,437 2,790 - Total Aggregate Amounts $ 171,967,397 $ 32,875,747 $ 12,486,614 $ 11,049,619 85 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 Note 20 – Pension Trust Fund The following are condensed financial statements for the individual pension plans: 1925 Police Pension 1937 Fire Pension Total Statement of Net Position Cash and investments $ 698,148 $ 336,502 $ 1,034,650 Other assets 3,168 1,741 4,909 Liabilities (101) (70) (171) Net position 701,215 338,173 1,039,388 Statement of Changes in Net Position: Investment income 18,102 9,432 27,534 Contributions 6,113,778 4,466,993 10,580,771 Benefit payments (6,365,546) (4,439,495) (10,805,041) Other deductions (14,304) (14,309) (28,613) Net change in net position $ (247,970) $ 22,621 $ (225,349) Note 21 – Reporting Change and Prior Period Adjustment The City made three prior period adjustments for the presentation of the year ended December 31, 2018. First, during the current year, the City adopted GASB Statement 84, Fiduciary Activities. As a result, the government-wide statements now include financial activities of two funds previously recognized as private purpose trust funds, and now recognized as special revenue funds under GASB 84 criteria. These two funds are the City Cemetery Fund and the Bowman Cemetery Fund. The effect of these new standards was an increase of $4 85,158 in net position of governmental activities as of January 1, 2019. In addition, during the year, the City discovered two misstatements in the presentation of the 2018 financial statements: • The City omitted two capital projects for parking garage improvements , which should have been reported as construction in progress and were i nstead reported as expenses. This misstatement had the effect of understating assets and overstating expenses in 2018 by $1,105,815 on the 2018 CAFR. • The City incorrectly reported the balance of loans receivable in the DCI Federal Grants fund. This misstatement had the effect of understating assets and fund balance by $1,568. The effect of these prior period adjustments is shown below: Governmental Activities Business-type Activities Net position - December 31, 2018, as previously reported $ 158,108,149 $ 210,685,460 Adjustment for implementation of GASB Statement 84 485,158 - Adjustment to correct 2018 activity in Governmental Activities- DCI Federal Grants Fund 1,568 - Adjustment to correct 2018 activity in Business-type Activities- Parking Garage Fund - 1,105,815 Net position - December 31, 2018, as restated $ 158,594,875 $ 211,791,275 86 City of South Bend, Indiana Notes to Financial Statements December 31, 2019 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, 2019, the total expenses incurred were $10,163.25. 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. This estimate is subject to changes due to inflation or deflation, changes in technology, or changes in applicable laws or regulations. 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, 2019, the City abated property taxes totaling $1,766,580 under this program. Two properties had property taxes abated that exceeded 10 percent of the total amount. For these properties the taxes abated were $522,771 and $209,472. 87 Required Supplementary Information 88 City of South Bend, Indiana Required Supplementary Information 1925 Police Officers’ Pension Plan Schedule of Investment Returns Last Six Fiscal Years Years Ended December 31 2019 2018 2017 2016 2015 2014 Annual money-weighted rate of return, net of investment expense 1.75% 1.75% 0.80% 1.00% 0.80% 0.60% Information is presented for the years available 89 City of South Bend, Indiana Required Supplementary Information 1925 Police Officers’ Pension Plan Schedule of Contributions Last Ten Fiscal Years Years Ended December 31 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Actuarially determined contribution $ 6,363,550 $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 Contributions in relation to the actuarially determined contribution 6,107,782 6,220,658 6,204,179 6,364,236 6,323,645 6,116,195 5,837,216 6,776,614 6,512,842 5,805,597 Contribution (Deficiency) Excess $ (255,768) $ 58,704 $ 85,120 $ 230,847 $ 250,596 $ (316,605) $ (795,984) $ (209,586) $ (804,958) $ (867,503) Covered Payroll $ - $ - $ - $ - $441,200 $441,200 $430,000 $421,800 $542,900 $569,500 Contributions as a Percentage of Covered Payroll 0.0% 0.0% 0.0% 0.0% 1433.3% 1386.3% 1357.5% 1606.6% 1199.6% 1019.4% Notes to Schedule of Contributions Actuarial valuation information relative to the determination of contributions: Valuation date December 31, 2019 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal Amortization method Level percent of payroll Remaining amortization period 30 years Asset valuation method Not applicable. Benefits are funded on a pay-as-you-go basis Inflation 2.25% per year Salary increase 2.50% per year Investment rate of return 1.75% per year Retirement age Non-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 active Mortality RP-2014 Blue Collar Mortality Tables with MP-2014 improvement removed, and with future mortality improvement projected generational using future mortality improvement inherent in the Social Security Administration's 2014 Trustee report Other information Cost of living increases of 2.50% per year in retirement for non-converted and 1.60% on July 1, 2019; 2.00% thereafter for converted 90 City of South Bend, Indiana Required Supplementary Information Schedule of Changes in the City Net Pension Liability and Related Ratios 1925 Police Officers’ Pension Plan Last Six Fiscal Years 2019 2018 2017 2016 2015 2014 Total Pension Liability Service cost $ 84,969 $ 92,916 $ 78,812 $ 164,481 $ 184,104 $ 157,965 Interest 2,445,011 2,337,437 2,653,831 2,344,653 2,415,583 3,721,864 Experience (gains)/losses (561,561) 2,284,134 995,949 396,259 (2,973,249) - Plan amendments 840,174 - - - - - Changes in assumptions 7,449,252 (2,697,730) 3,926,922 (5,617,308) (294,402) 12,487,771 Projected benefit payments (6,112,665) (6,146,696) (6,045,097) (5,977,290) (6,061,589) (6,122,870) Net Change in Total Pension Liability 4,145,180 (4,129,939) 1,610,417 (8,689,205) (6,729,553) 10,244,730 Total Pension Liability - Beginning of year 81,564,082 85,694,021 84,083,604 92,772,809 99,502,362 89,257,632 Total Pension Liability - End of year $ 85,709,262 $ 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 6,107,782 6,220,658 6,204,179 5,991,750 6,378,359 6,111,865 Net investment income 18,102 15,219 6,557 6,713 4,376 3,759 Administrative expenses (10,304) (10,054) (13,577) (13,551) (12,462) (10,957) Benefit payments, including refunds (6,363,550) (6,161,954) (6,119,245) (6,364,236) (6,323,646) (6,705,815) Net Change in Plan Fiduciary Net Position (247,970) 63,869 91,458 (363,575) 46,689 (596,819) Plan Fiduciary Net Position - Beginning of year 949,185 885,316 793,858 1,157,433 1,110,743 1,707,562 Plan Fiduciary Net Position - End of year $ 701,215 $ 949,185 $ 885,316 $ 793,858 $ 1,157,432 $ 1,110,743 City's Net Pension Liability - Ending $85,008,047 $80,614,897 $84,808,705 $83,289,746 $ 1,615,377 $98,391,619 Plan Fiduciary Net Position as a % of Total Pension Liability 0.82% 1.16% 1.03% 0.94% 1.25% 1.12% Covered Payroll $ - $ - $ - $ - $441,200 $441,200 City's Net Pension Liability as a % of Covered Payroll - % - % - % - % 20765% 22301% Information is presented for the years available 91 Required Supplementary Information 1937 Firefighters’ Pension Plan Schedule of Investment Returns Last Six Fiscal Years Years Ended December 31 2019 2018 2017 2016 2015 2014 Annual money-weighted rate of return, net of investment expense 1.75% 1.75% 0.80% 1.00% 0.80% 0.60% Information is presented for the years available 92 City of South Bend, Indiana Required Supplementary Information 1937 Firefighters’ Pension Plan Schedule of Contributions Last Ten Fiscal Years Years Ended December 31 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Actuarially determined contribution $4,439,496 $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 Contributions in relation to the actuarially determined contribution 4,462,993 4,472,469 4,920,712 5,165,758 5,197,158 5,130,581 5,051,319 5,208,570 5,503,742 5,172,146 Contribution (Deficiency) Excess $23,497 $(146,148) $193,120 $13,566 $220,116 $(305,819) $(499,581) $(578,730) $(895,958) $(639,254) Covered Payroll $- $- $- $- $328,600 $328,600 $319,300 $365,500 $397,100 $429,500 Contributions as a Percentage of Covered Payroll - % - % - % - % 1581.61% 1561.30% 1582.00% 1425.10% 1386.00% 1204.20% Notes to Schedule of Contributions Actuarial valuation information relative to the determination of contributions: Valuation date December 31, 2019 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal Amortization method Level percent of payroll Remaining amortization period 30 years Asset valuation method Not applicable. Benefits are funded on a pay-as-you-go basis Inflation 2.25% per year Salary increase 2.50% per year Investment rate of return 1.75% per year Retirement age Non-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 active Mortality RP-2014 Blue Collar Mortality Tables with MP-2014 improvement removed, and with furture mortality improvement projected generational using future mortality improvement inherent in the Social Security Administration's 2014 Trustee report Other information Cost of living increases of 2.50% per year in retirement for non-converted and 1.60% on July 1, 2019; 2.00% thereafter for converted 93 City of South Bend, Indiana Required Supplementary Information Schedule of Changes in the City Net Pension Liability and Related Ratios 1937 Firefighters’ Pension Plan Last Six Fiscal Years 2019 2018 2017 2016 2015 2014 Total Pension Liability Service cost $62,978 $98,529 $81,717 $163,162 $155,487 $114,297 Interest 1,865,607 1,815,032 2,124,050 1,940,826 2,020,796 3,155,669 Experience (gains)/losses (1,096,354) (482,208) (1,611,010) (262,337) (2,816,692) - Plan amendments 941,442 - - - - - Changes in assumptions 5,758,955 (2,105,211) 3,179,702 (4,645,609) (245,887) 9,620,657 Projected benefit payments (4,420,816) (4,572,612) (4,727,592) (4,980,991) (5,094,762) (5,206,870) Net Change in Total Pension Liability 3,111,812 (5,246,470) (953,133) (7,784,949) (5,981,058) 7,683,753 Total Pension Liability - Beginning of year 63,424,661 68,671,131 69,624,264 77,409,213 83,390,271 75,706,518 Total Pension Liability - End of year $66,536,473 $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 4,462,993 4,472,469 4,920,712 4,866,271 5,039,025 5,129,098 Net investment income 9,432 7,596 3,352 2,852 2,675 1,963 Administrative expenses (10,309) (12,154) (14,771) (14,485) (14,255) (10,920) Benefit payments, including refunds (4,439,496) (4,618,617) (4,614,480) (5,165,758) (5,197,159) (5,407,429) Net Change in Plan Fiduciary Net Position 22,620 (150,706) 299,064 (304,841) (167,047) (285,804) Plan Fiduciary Net Position - Beginning of year 315,552 466,258 167,194 472,035 639,081 924,885 Plan Fiduciary Net Position - End of year $338,172 $315,552 $466,258 $167,194 $472,034 $639,081 City's Net Pension Liability - Ending $66,198,301 $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 0.51% 0.50% 0.68% 0.24% 0.61% 0.77% Covered Payroll $ - $ - $ - $ - $328,600 $328,600 City's Net Pension Liability as a % of Covered Payroll - % - % - % - % 23414% 25183% Information is presented for the years available 94 City of South Bend, Indiana Required Supplementary Information Schedule of City Contributions Public Employees’ Retirement Fund Last Five Fiscal Years Years Ended June 30 2019 2018 2017 2016 2015 Actuarially determined contribution $ 3,534,744 $ 3,302,670 $ 5,307,308 $ 4,526,527 $ 3,650,212 Contributions in relation to the actuarially determined contributions 3,401,818 3,309,216 3,219,677 2,933,996 2,982,234 Contribution Deficiency $ 132,926 $ (6,546) $ 2,087,631 $ 1,592,531 $ 667,978 Covered Payroll $30,860,389 $29,759,859 $28,768,543 $26,237,016 $26,681,229 Contributions as a Percentage of Covered Payroll 11.0% 11.1% 11.2% 11.2% 11.2% Information is presented for the years available Notes to Schedule of Contributions Actuarial valuation information relative to the determination of contributions: Valuation date June 30, 2019 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal Amortization method Level percent of payroll Actuarial Amortization Period for Unfunded Liability 20 years, closed Remaining amortization period 24 years Asset valuation method Actuarial Value of Assets is equal to a five-year smoothing of gains and losses on the Fair Value of Assets subject to a 20% corridor Inflation 2.25% per year Salary increase 2.50% to 4.25% per year Investment rate of return 6.75% per year, includes inflation and net of administrative and investment expenses Retirement age 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 Mortality 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. Other information In lieu of a COLA on January 1, 2020 and January 1, 2021, members in pay were provided a 13th check on October 1, 2019 and October 1, 2020. Thereafter, the following COLAs, compounded annually, were assumed: .04% beginning on January 1, 2022 .05% beginning on January 1, 2034 .06% beginning on January 1, 2039 95 City of South Bend, Indiana Required Supplementary Information Schedule of the City’s Proportionate Share of the Net Pension Liability Public Employees’ Retirement Fund Last Six Fiscal Years Years Ended June 30 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability (asset) 0.59232% 0.58323% 0.57988% 0.54700% 0.55700% 0.56300% City's proportionate share of the net pension liability (asset) $ 19,576,553 $ 19,812,587 $ 25,871,598 $ 24,845,715 $ 22,687,694 $ 14,807,363 City's Covered Payroll $ 30,860,389 $ 29,759,859 $ 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 Payroll 63.44% 66.57% 89.93% 94.70% 85.00% 53.83% Plan Fiduciary Net Position as a Percentage of Total Pension Liability 80.1% 78.9% 76.6% 75.3% 77.3% 84.3% Information is presented for the years available 96 City of South Bend, Indiana Required Supplementary Information Schedule of City Contributions 1977 Police Officers' Pension and Disability Fund Last Five Fiscal Years Years Ended June 30 2019 2018 2017 2016 2015 Actuarially determined contribution $5,137,820 $1,702,380 $2,143,623 $2,029,937 $709,017 Contributions in relation to the actuarially determined contributions 2,517,402 2,433,268 2,600,280 2,673,614 2,625,418 Contribution Deficiency (2,620,418) 730,888 456,657 643,677 1,916,401 Covered Payroll $14,385,011 $13,896,923 $13,968,031 $13,571,531 $13,327,077 Contributions as a Percentage of Covered Payroll 17.5% 17.5% 18.6% 19.7% 19.7% Information is presented for the years available Notes to Schedule of Contributions Actuarial valuation information relative to the determination of contributions: Valuation date June 30, 2019 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal Amortization method Level percent of payroll Actuarial Amortization Period for Unfunded Liability 30 years, open Remaining amortization period 30 years, open Asset valuation method 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% corridor Inflation 2.25% per year Salary increase 2.50% per year Investment rate of return 6.75% per year, includes inflation and net of administrative and investment expenses Retirement age Normal retirement is age 52 with 20 years of service; early retirement is age 50 with 20 years of service (reduced benefit) Mortality RP-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 report Other information Cost of living increases of 2.0% per year, beginning July 1, 2020 97 City of South Bend, Indiana Required Supplementary Information Schedule of the City’s Proportionate Share of the Net Pension Liability 1977 Police Officers' Pension and Disability Fund Last Six Fiscal Years Years Ended June 30 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability (asset) 1.62738% 1.6501% 1.72294% 1.75600% 1.78700% 1.82900% City's proportionate share of the net pension liability (asset) $149,979 $(1,450,622) $(265,770) $1,559,932 $(2,640,039) $(932,236) City's Covered Payroll $14,385,011 $13,896,923 $13,968,031 $13,571,531 $13,327,077 $12,981,067 City's Proportionate Share of the Net pension Liability (Asset) as a Percentage of its Covered Payroll 1.04% -10.44% -1.90% 11.49% (19.8)% (7.2)% Plan Fiduciary Net Position as a Percentage of Total Pension Liability 99.90% 101.50% 100.3% 98.2% 103.2% 101.1% Information is presented for the years available 98 City of South Bend, Indiana Required Supplementary Information Schedule of City Contributions 1977 Firefighters’ Pension and Disability Fund Last Five Fiscal Years Years Ended June 30 2019 2018 2017 2016 2015 Actuarially determined contribution $ 5,562,940 $ 1,867,174 $ 2,232,482 $ 2,053,907 $ 743,238 Contributions in relation to the actuarially determined contributions 2,714,233 2,634,358 2,677,560 2,673,917 2,666,116 Contribution Deficiency $ 2,848,707 $ (767,184) $ (445,078) $ (620,010) $ (1,922,878) Covered Payroll 15,509,357 15,052,876 14,398,217 $ 13,588,032 $ 13,533,745 Contributions as a Percentage of Covered Payroll 17.50% 17.50% 18.60% 19.68% 19.70% Information is presented for the years available Notes to Schedule of Contributions Actuarial valuation information relative to the determination of contributions: Valuation date June 30, 2019 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal Amortization method Level percent of payroll Actuarial Amortization Period for Unfunded Liability 30 years, open Remaining amortization period 30 years, open Asset valuation method 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% corridor Inflation 2.25% per year Salary increase 2.50% per year Investment rate of return 6.75% per year, includes inflation and net of administrative and investment expenses Retirement age Normal retirement is age 52 with 20 years of service; early retirement is age 50 with 20 years of service (reduced benefit) Mortality RP-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 report Other information Cost of living increases of 2.0% per year, beginning July 1, 2020 99 City of South Bend, Indiana Required Supplementary Information Schedule of the City’s Proportionate Share of the Net Pension Liability 1977 Firefighters’ Pension and Disability Fund Last Six Fiscal Years Years Ended June 30 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability (asset) 1.75457% 1.78736% 1.77600% 1.75800% 1.81500% 1.79500% City's proportionate share of the net pension liability (asset) $ 161,701 $ (1,571,289) $ (273,955) $ 1,561,833 $ (2,680,987) $ (915,265) City's Covered Payroll $15,509,357 $15,052,876 $14,398,217 $13,588,032 $13,533,745 $12,744,754 City's Proportionate Share of the Net pension Liability (Asset) as a Percentage of its Covered Payroll 1.04% -10.44% -1.90% 11.49% (19.8)% (7.2)% Plan Fiduciary Net Position as a Percentage of Total Pension Liability 99.90% 101.50% 100.3% 98.2% 103.2% 101.1% Information is presented for the years available 100 City of South Bend, Indiana Required Supplementary Information Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Two Fiscal Years Years Ended December 31 2019 2018 Total OPEB liability Service Cost $ 1,049,065 $ 1,489,465 Interest 981,132 1,026,964 Difference between expected and actual experience - 1,503,991 Changes of assumptions or other inputs - (8,795,897) Benefit payments (774,470) (758,730) Net change in total OPEB liability 1,255,727 (5,534,207) Total OPEB Liability - beginning 23,206,087 28,740,294 Total OPEB Liability - ending $ 24,461,814 $ 23,206,087 Plan fiduciary net position - ending $ - $ - Net OPEB Liability - ending $ 24,461,814 $ 23,206,087 Plan fiduciary net position as % of total OPEB liability 0% 0% Covered Payroll $ 60,754,757 $ 58,876,762 Net OPEB liability as a % of covered payroll 40.3% 39.4% Information is presented for the years available 101 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules General Fund December 31, 2019 General Fund Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 41,142,970$ 41,142,970$ 42,705,987$ 1,563,017$ Licenses and permits 240,950 277,232 283,282 6,050 Intergovernmental 4,469,884 5,068,287 5,200,646 132,359 Charges for services 1,388,477 1,389,260 1,423,324 34,064 Fines and forfeitures 8,620 20,479 24,068 3,589 Investment income 300,000 720,000 906,676 186,676 Other 10,695,314 10,817,389 10,726,871 (90,518) Total revenues 58,246,215 59,435,617 61,270,854 1,835,237 Expenditures: Current: General government: Mayor: Personnel services 743,094 744,494 719,047 25,447 Supplies 700 864 750 114 Other services and charges 150,721 329,391 324,609 4,782 City Clerk: Personnel services 370,949 370,949 344,272 26,677 Supplies 6,800 14,013 11,385 2,628 Other services and charges 148,514 161,307 157,464 3,843 Common Council: Personnel services 330,080 330,080 295,757 34,323 Supplies 6,375 6,465 2,874 3,591 Other services and charges 290,213 307,050 271,169 35,881 WNIT Contract: Other services and charges 43,000 43,000 43,000 - Administration/Finance: Personnel services 2,213,161 2,183,161 2,122,128 61,033 Supplies 23,500 24,478 21,681 2,797 Other services and charges 333,602 364,912 342,768 22,144 Legal Department: Personnel services 1,144,749 1,144,749 1,049,814 94,935 Supplies 3,450 3,450 1,968 1,482 Other services and charges 130,819 130,819 125,800 5,019 Human Rights: Personnel services 278,118 260,908 147,533 113,375 Supplies 1,037 1,037 1,022 15 Other services and charges 106,551 110,051 108,743 1,308 Total general government 6,325,433 6,531,178 6,091,784 439,394 102 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules General Fund (Continuted) December 31, 2019 General Fund Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Public safety: Police Department: Personnel services 23,448,744 23,160,744 22,493,452 667,292 Supplies 1,106,298 1,128,331 956,774 171,557 Other services and charges 6,699,472 7,042,944 6,509,173 533,771 Capital outlay - 102,885 102,885 - Fire Department: Personnel services 17,054,895 17,204,895 16,828,269 376,626 Supplies 615,422 673,053 625,899 47,154 Other services and charges 3,367,778 3,815,520 3,744,232 71,288 Total public safety 52,292,609 53,128,372 51,260,684 1,867,688 Highways and streets: Engineering: Personnel services 2,366,514 2,316,514 2,146,659 169,855 Supplies 24,450 43,952 13,689 30,263 Other services and charges 620,126 859,655 806,426 53,229 Capital outlay - - - - Office of Sustainability: Personnel services 126,074 126,074 107,643 18,431 Supplies 22,300 22,300 21,204 1,096 Other services and charges 130,441 130,441 94,341 36,100 Capital outlay - 50,000 50,000 - AmeriCorps Program: Personnel services 135,066 355,066 284,780 70,286 Supplies 56,590 128,757 47,887 80,870 Other services and charges 241,461 229,416 40,053 189,363 Total highways and streets 3,723,022 4,262,175 3,612,682 649,493 Culture and recreation: Morris Performing Arts Center: Personnel services 766,797 701,797 529,510 172,287 Supplies 23,600 38,830 33,118 5,712 Other services and charges 506,505 578,500 545,763 32,737 Capital outlay - 25,000 22,230 2,770 Palais Royale Ballroom: Personnel services 162,026 162,026 138,282 23,744 Supplies 13,600 13,600 5,651 7,949 Other services and charges 270,561 290,806 223,309 67,497 Capital outlay 15,000 15,000 - 15,000 Total culture and recreation 1,758,089 1,825,559 1,497,863 327,696 Total expenditures 64,099,153 65,747,284 62,463,013 3,284,271 103 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules General Fund (Continuted) December 31, 2019 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 - 44,169 44,169 - Transfers in 6,460,990 6,475,990 6,475,990 - Transfers out (608,052) (608,052) (608,052) - - (399,560) 4,719,948 5,119,508 38,944,317 38,944,317 38,944,317 - 38,944,317$ 38,544,757$ 43,664,265$ 5,119,508$ Net change in fund balances Fund balances - Beginning Fund balances - Ending 104 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules Major Special Revenue Funds Parks and Recreation Fund December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 9,680,317$ 9,680,317$ 10,048,047$ 367,730$ Intergovernmental 3,770,180 5,174,491 4,526,393 (648,098) Charges for services 3,583,861 2,698,780 2,583,508 (115,272) Investment income 30,996 126,000 140,690 14,690 Other 927,000 2,026,359 2,035,757 9,398 Total revenues 17,992,354 19,705,947 19,334,395 (371,552) Expenditures: Current: Culture and recreation: Personnel services 8,282,108 7,934,285 7,822,075 112,210 Supplies 1,462,641 1,613,196 1,350,221 262,975 Other services and charges 6,158,678 6,802,475 6,451,917 350,558 Capital outlay 4,473,205 9,394,146 9,387,819 6,327 Total expenditures 20,376,632 25,744,102 25,012,032 732,070 Other Financing Sources (Uses): Proceeds from sale of capital assets - 8,160 8,160 - Transfers in 400,000 410,867 410,867 - (1,984,278) (5,619,128) (5,258,610) 360,518 8,298,306 8,298,306 8,298,306 - 6,314,028$ 2,679,178$ 3,039,696$ 360,518$ Net change in fund balances Fund balances - Beginning Fund balances - Ending 105 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules Major Special Revenue Funds (Continued) Public Safety LOIT Fund December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - County option income tax 8,560,555$ 9,205,130$ 9,205,130$ -$ Investment income 6,000 65,100 78,327 13,227 Total revenues 8,566,555 9,270,230 9,283,457 13,227 Expenditures: Current: Public safey: 8,566,555 8,566,555 7,982,259 584,296 - 703,675 1,301,198 597,523 1,958,708 1,958,708 1,958,708 - 1,958,708$ 2,662,383$ 3,259,906$ 597,523$ Personnel services Net change in fund balances Fund balances - Beginning Fund balances - Ending 106 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules Major Special Revenue Funds (Continued) COIT Fund December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - County option income tax 12,148,294$ 12,879,847$ 12,879,847$ -$ Intergovernmental - 12,500 12,500 - Investment income 95,000 296,750 348,410 51,660 Other 60,000 83,872 88,772 4,900 Total revenues 12,303,294 13,272,969 13,329,529 56,560 Expenditures: Current: General government: Supplies 140,000 278,101 262,212 15,889 Other services and charges 7,823,965 11,527,421 11,246,195 281,226 Capital outlay 405,000 668,863 643,719 25,144 Total expenditures 8,368,965 12,474,385 12,152,126 322,259 Other Financing Sources (Uses): Transfers in 830,000 927,077 927,077 - Transfers out (4,764,329) (4,764,329) (4,764,329) - - (3,038,668) (2,659,849) 378,819 11,799,456 11,799,456 11,799,456 - 11,799,456$ 8,760,788$ 9,139,607$ 378,819$ Net change in fund balances Fund balances - Beginning Fund balances - Ending 107 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules Major Special Revenue Funds (Continued) EDIT Fund December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - County economic development income tax 11,632,846$ 12,474,651$ 12,474,651$ -$ Fines and forfeitures 354,660 354,660 354,660 - Investment income 140,000 393,400 463,996 70,596 Other 150,000 155,994 156,230 236 Total revenues 12,277,506 13,378,705 13,449,537 70,832 Expenditures: Current: General government: Other services and charges 5,921,967 8,210,681 7,999,789 210,892 Capital outlay 525,000 665,000 514,954 150,046 Total expenditures 6,446,967 8,875,681 8,514,743 360,938 Other Financing Sources (Uses): Proceeds from sale of capital assets - 1,907 4,395 2,488 Transfers in - 178,534 178,534 - Transfers out (5,781,521) (5,827,521) (5,826,504) 1,017 49,018 (1,144,056) (708,781) 435,275 15,134,269 15,134,269 15,134,269 - 15,183,287$ 13,990,213$ 14,425,488$ 435,275$ Net change in fund balances Fund balances - Beginning Fund balances - Ending 108 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules Major Special Revenue Funds (Continued) Rainy Day Fund December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 160,000$ 246,000$ 289,770$ 43,770$ 160,000 246,000 289,770 43,770 10,464,997 10,464,997 10,464,997 - 10,624,997$ 10,710,997$ 10,754,767$ 43,770$ Net change in fund balances Fund balances - Beginning Fund balances - Ending 109 City of South Bend, Indiana Required Supplementary Information Budget/GAAP Reconciliation General Fund and Major Special Revenue Funds December 31, 2019 The major difference 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 Safety General Recreation LOIT COIT EDIT Rainy Day Net change in fund balances (budgetary basis)4,719,948$ (5,258,610)$ 1,301,198$ (2,659,849)$ (708,781)$ 289,770$ Adjustments: To adjust revenues for accruals 10,602,662 235,179 4,468 (44,225) 576,057 11,603 To adjust expenditures for accruals (11,473,644) (343,653) (155,266) 104,751 (423,121) - To adjust expenditures for encumbrances 820,834 617,555 - 3,607,470 2,997,827 - Net change in fund balances (GAAP basis)4,669,800$ (4,749,529)$ 1,150,400$ 1,008,147$ 2,441,982$ 301,373$ 110 City of South Bend, Indiana Notes to Required Supplementary 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 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 111 City of South Bend, Indiana Notes to Required Supplementary Information Note 1 – Budgets and Budgetary Accounting (Continued) Nonmajor governmental funds: • Special Revenue Funds - Motor Vehicle Highway, Studebaker Oliver Revitalization Grants, Economic Development State Grants, DCI Operating, DCI Federal Grants, Police State Seizure, Gift Donation Bequest, Police Curfew Violation, Unsafe Building, Law Enforcement Continuing Education, Rental Units Regulation, Loss Recovery, Code Enforcement, Local Road and Street, LOIT 2016 Special Distribution, Human Rights Federal Grants, Local Road and Bridge Grant, MVH Restricted, Morris and Palais Marketing, Morris PAC Self Promoted Events, Police Block Grants, Hazmat, Indiana River Rescue, Regional Police Academy, COPS MORE Grant, Federal Drug Enforcement, Urban Development Action Grant, Leaf Collection and Removal, Police K-9 Unit, Morris/Palais Box Office, City Cemetery, Bowman Cemetery, Industrial Revolving Fund. • Debt Service Funds - 2017 Park Bond Debt Service, College Football Hall of Fame Debt Service, Redevelopment Bond Airport Taxable, Coveleski Bond Debt Service Reserve, Redevelopment Bond Palais Royale, Fire Station #9 Debt Service, 2018 TIF Park Bond Debt Service Reserve, Century Center Energy Conservation Debt Service, Redevelopment Authority Debt Service, South Bend Building Corporation Debt Service, 2015 Smart Streets Bond Debt Service, 2015 Park Bond Debt Service, 2017 Eddy St. Commons Bond Debt Service • Capital Projects Funds – 2019 South Shore Double Tracking Bond Capital, Professional Sports Development, Coveleski Stadium Capital, Cumulative Capital Development, Cumulative Capital Improvement, Major Moves, Morris Performing Arts Center Capital, Redevelopment Retail Area (Leighton Plaza), Redevelopment General, TIF – West Washington, TIF - River East Development, TIF - Southside Development Area No. 1, TIF - Douglas Road, TIF - River East Residential, Certified Technology Park, Palais Royale Historic Preservation, Airport Urban Enterprise Zone, 2018 Fire Station #9 Bond Capital, 2018 TIF Park Bond Capital, 2018 Zoo Bond Capital, 2017 Park Bond Capital, Equipment Vehicle Leasing, 2015 Park Bond Capital, 2015 Smart Streets Bond Capital, 2017 Eddy St. Commons 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 $68,190,937 in 2019 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 Authority Debt Service Fund and the Equipment Vehicle Leasing Fund. In 2019, these two funds had small expenditure variances that resulted in slightly higher -than-expected expenditures. 112 Other Supplemental Information 113 City of South Bend, Indiana Other Supplemental Information Nonmajor Governmental Funds Fund 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. 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 (DCI). Financing will be provided by revenues received from charges for services, other revenue sources, and from fund transfers. DCI Federal 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. Gift Donation Bequest To account for donations, gifts, or bequeaths for purposes designated by the donor. Police Curfew Violation To account for monies received from penalties paid for curfew violations. Expenditures include Drug Abuse Resistance Education and Juvenile Aid Bureau. Unsafe Building To receive fines and fees related to Indiana's Unsafe Building law and account for the expenses incurred for board-ups, demolitions, ordinance violation abatements, and other related services. Law Enforcement Continuing Education To account for police fees collected to finance police officers' continuing education, training, and supplies and equipment. Rental Units Regulation To account for the revenues and expenditures related to the Landlord Registration and the Rental Safety Verification Program (RSVP) ordinances enacted by the Common Council. Loss Recovery To account for compensatory or exemplary damage payments from third parties arising from loss or damage to City tangible or intangible property. Code Enforcement To account for the activity of the Department of Code Enforcement including Neighborhood Code Enforcement and the South Bend Animal Resource Center. 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 one-time, special distribution of local income taxes from the State of Indiana for the purpose of infrastructure expenditures. Human Rights Federal Grants To account for expenditures to prevent discrimination and to promote human rights. Financing is provided by federal grants. Local Road & Bridge Grant To account for the receipt of the Community Crossings grant and matching revenue and for the payment of expenditures on eligible projects. 114 City of South Bend, Indiana Other Supplemental Information Nonmajor Governmental Funds Fund Descriptions MVH Restricted To account for preventive maintenance of the City’s streets. Allowable costs related to preventive maintenance is defined by the state. Financing is provided by state motor vehicle highway distributions. 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 earnings on self-promoted events. Police Block Grants To account for federal grants which provide financing for police activities. 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. Police Grants 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 grant which provides financing for police activities. The Community- Oriented Policing Services (COPS) Office of the Department of Justice offers grants through the Making Officer Redeployment Effective (MORE) program. Federal Drug Enforcement To account for expenditures for drug enforcement. Financing is provided by distributions from the authorized federal agencies' confiscated property sale. 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. Morris/Palais Box Office To account for Morris Performing Arts Center and Palais Royale event advance deposits and related expenses City Cemetery To account for expenditures specifically for the City Cemetery. Funding is provided by the sale of cemetery plots and burial expenses. Bowman Cemetery To account for the expenditures the City incurs in maintaining the Bowman Cemetery. Industrial Revolving Fund To report and administer loan funds for small businesses that is governed by a separate Board of Directors which contracts with the City's Community Investment Department for administration services. DEBT SERVICE FUNDS 2017 Park Bond Debt Service This fund is used to collect a separate property tax levy and is used to pay for the semi-annual payment of debt service principal and interest to the bondholders of the 2017 Park District Bonds, Series A-K. 115 City of South Bend, Indiana Other Supplemental Information Nonmajor Governmental Funds Fund Descriptions 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. 2018 Fire Station 9 Bond Debt Service To accumulate monies received as debt service payments from the City and pass them through to trustee banks and bondholders. 2018 TIF Park Bond Debt Service Reserve To account for assets held to satisfy bond covenant requirements. 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. Redevelopment Authority Debt Service To accumulate monies for the payment of Redevelopment Authority bonds issued to refinance bonds issued for construction of a parking garage facility, bonds issued for central development area land acquisition and construction of public improvements, bonds issued to purchase the Palais Royale, bonds issued to refinance bonds issued for construction of Century Center improvements, and bonds issued to refinance bonds issued for renovations to the Morris Performing Art Center. South Bend Building Corporation Debt Service To accumulate monies received as debt service payments from the City and pass them through to trustee banks and bondholders. 2015 Smart Streets Bond Debt Service To accumulate monies as a reserve for the payment of Smart Streets Bonds related to the conversion of one-way to two-way streets. 2015 Park Bond Debt Service To accumulate monies as a reserve for the payment of the 2015 Parks & Recreation Bond debt service payments. 2017 Eddy St. Commons Bond Debt Service To accumulate monies as a reserve for the payment of the 2017 Eddy Street Commons Phase II Bond debt service payments. CAPITAL PROJECTS FUNDS 2019 South Shore Double Tracking Bond Capital To account for the distribution of the proceeds from the 2019 South Shore Double Tracking bond, which will be used along with other state and local funding to contribute to a double tracking project with the Northern Indiana Commuter Transportation District (NICTD). 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). 116 City of South Bend, Indiana Other Supplemental Information Nonmajor Governmental Funds Fund Descriptions 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. Cumulative Capital Development To account for expenditures relating to the purchase or lease of capital improvements in the City. Financing is provided by a specific property tax levy. Cumulative Capital Improvement To account for state cigarette tax distributions used for improvement projects. Major Moves To account for state distributions used for road construction and other uses authorized by Indiana statute. Morris Performing Arts Center Capital To accumulate monies for major repairs and capital improvements to the Morris Civic Auditorium. Financing is provided by a surcharge on ticket sales for events held at the auditorium. 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. Redevelopment General To account for eligible redevelopment initiatives designed to improve educational opportunities and address poverty and unemployment in the City. Financing is provided by an annual payment in lieu of taxes from the Pokagon Band of Potawatomi Indians and a small receipt of local income tax. 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. 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. TIF – Southside Development Area No. 1 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. 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. 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 I.C. 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. 117 City of South Bend, Indiana Other Supplemental Information Nonmajor Governmental Funds Fund Descriptions Palais Royale Historic Preservation To account for expenditures financed by a two percent fee charged for all Palais Royale services. Airport Urban Enterprise Zone To account expenditures for improvements in the Zone area, financed by property taxes on qualifying properties in the Zone. 2018 Fire Station #9 Bond 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 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. 2018 Zoo Bond Capital To account for the expenditures of bond funds relating to the Economic Development Revenue Bonds, Series 2018 to be used for the construction, expansion, renovation, equipping, furnishing and improvement of the Potawatomi Zoo. 2017 Park Bond Capital To account for the expenditures of bond funds relating to the Park District Bonds, Series 2017 A-K to be used for planned capital projects to improve the parks. Equipment Vehicle Leasing To account for proceeds from capital lease-purchase agreements used to finance major equipment needs of the City. 2015 Park Bond Capital To account for capital expenditures in the City parks with funding provided by a Building Corporation bond. 2015 Smart Streets Bond Capital 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. 2017 Eddy St. Commons Bond Capital To account for the expenditures of the bond proceeds from to be spent on Phase II of the mixed-use development near the University of Notre Dame. 118 City of South Bend, IndianaCombining Balance SheetNonmajor Governmental FundsDecember 31, 2019Special Revenue FundsStudebakerOliver Economic DCI Gift PoliceMotor Vehicle Revitalization Development Federal Police State Donation CurfewHighwayGrantsState GrantsDCI OperatingGrantsSeizureBequestViolationAssetsCash and cash equivalents 1,419,483$ 278,143$ 58,389$ 302,950$ 305,248$ 71,322$ 179,761$ 3,859$ Investments 3,323,720 651,272 6,386 709,357 - 167,001 488,512 9,035 Receivables:Accounts 19,867 - 18,003 345 - - 32 - Interest 15,130 3,171 162 2,736 - 813 2,056 44 Intergovernmental 68,349 - - 7,622 123,340 - - - Loans - - 122,321 - 202,563 - - - Advances to other funds - 100,000 - - - - - - Property held for resale - 1 - - 2,288,072 - - - Restricted assets - - - - - - - - Total assets 4,846,549$ 1,032,587$ 205,261$ 1,023,010$ 2,919,223$ 239,136$ 670,361$ 12,938$ LiabilitiesAccounts payable 102,873$ 33,669$ 4,882$ 33,557$ 257,851$ -$ 12,313$ -$ Due to other funds 1,410 - - - 73,046 - - - Advances from other funds - - - - - - - - Performance deposits payable - - - - - - - - Accrued liabilities and other:Accrued payroll payable 140,951 - - 69,683 - - - - Other current payables - - - - 2,057 - - - Customer deposits - - - - - - - - Total liabilities 245,234 33,669 4,882 103,240 332,954 - 12,313 - Fund balancesNonspendable - - - - - - - - Restricted 4,601,315 998,918 200,379 - 2,586,269 239,136 658,048 - Committed - - - - - - - 12,938 Assigned - - - 919,770 - - - - Unassigned - - - - - - - - Total fund balances 4,601,315 998,918 200,379 919,770 2,586,269 239,136 658,048 12,938 Total liabilities and fund balances 4,846,549$ 1,032,587$ 205,261$ 1,023,010$ 2,919,223$ 239,136$ 670,361$ 12,938$ 119 City of South Bend, IndianaAssetsCash and cash equivalentsInvestmentsReceivables:AccountsInterestIntergovernmentalLoansAdvances to other fundsProperty held for resaleRestricted assetsTotal assetsLiabilitiesAccounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payableOther current payablesCustomer depositsTotal liabilitiesFund balancesNonspendableRestrictedCommittedAssignedUnassignedTotal fund balancesTotal liabilities and fund balancesCombining Balance Sheet (Continued)Nonmajor Governmental FundsDecember 31, 2019Special RevenueLawEnforcement Rental LOIT 2016Unsafe Continuing Units Loss Recovery Code Local Road Special Human RightsBuildingEducationRegulationFundEnforcementand StreetDistributionFederal Grants276,269$ 126,074$ 5,334$ 181,197$ -$ 1,566,107$ 51,095$ 155,933$ 646,885 295,202 12,489 424,274 - 3,667,041 119,640 365,118 590 24,670 1,350 - - - - - 2,875 1,424 60 2,066 - 16,563 589 1,675 - - - - - - - 1,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 926,619$ 447,370$ 19,233$ 607,537$ -$ 5,249,711$ 171,324$ 523,726$ 14,600$ 38,520$ 1,974$ -$ -$ 44,244$ 37,234$ 1,724$ - - - - - - - - - - - - - - - - 13,565 - - - - - - - - - 3,892 - 57,852 - - 4,959 - - - - - - - - - - - - - - - - 28,165 38,520 5,866 - 57,852 44,244 37,234 6,683 - - - - - - - - - 408,850 - - - 5,205,467 134,090 517,043 898,454 - 13,367 607,537 - - - - - - - - - - - - - - - - (57,852) - - - 898,454 408,850 13,367 607,537 (57,852) 5,205,467 134,090 517,043 926,619$ 447,370$ 19,233$ 607,537$ -$ 5,249,711$ 171,324$ 523,726$ 120 City of South Bend, IndianaAssetsCash and cash equivalentsInvestmentsReceivables:AccountsInterestIntergovernmentalLoansAdvances to other fundsProperty held for resaleRestricted assetsTotal assetsLiabilitiesAccounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payableOther current payablesCustomer depositsTotal liabilitiesFund balancesNonspendableRestrictedCommittedAssignedUnassignedTotal fund balancesTotal liabilities and fund balancesCombining Balance Sheet (Continued)Nonmajor Governmental FundsDecember 31, 2019Special RevenueMorris and Morris PACLocal Road and MVH Palais Self-Promoted Police Block Indiana River PoliceBridge GrantRestrictedMarketingEventsGrantsHazmatRescueGrants134,500$ 194,644$ 21,860$ 55,915$ 1,225$ 8,274$ 87,782$ 26,716$ 314,931 455,758 51,185 130,924 2,869 19,373 205,543 - - 3,325 - - - - - - 1,533 2,396 243 622 15 95 999 - - 68,349 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 450,964$ 724,472$ 73,288$ 187,461$ 4,109$ 27,742$ 294,324$ 26,716$ 80,354$ -$ -$ -$ -$ -$ 446$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 80,354 - - - - - 446 - - - - - - - - - 370,610 724,472 - - 4,109 - - 26,716 - - 73,288 187,461 - 27,742 293,878 - - - - - - - - - - - - - - - - - 370,610 724,472 73,288 187,461 4,109 27,742 293,878 26,716 450,964$ 724,472$ 73,288$ 187,461$ 4,109$ 27,742$ 294,324$ 26,716$ 121 City of South Bend, IndianaAssetsCash and cash equivalentsInvestmentsReceivables:AccountsInterestIntergovernmentalLoansAdvances to other fundsProperty held for resaleRestricted assetsTotal assetsLiabilitiesAccounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payableOther current payablesCustomer depositsTotal liabilitiesFund balancesNonspendableRestrictedCommittedAssignedUnassignedTotal fund balancesTotal liabilities and fund balancesCombining Balance Sheet (Continued)Nonmajor Governmental FundsDecember 31, 2019Special RevenueUrbanRegional Police COPS MORE Federal Drug Development Leaf Collection Police Morris/Palais CityAcademyGrantEnforcementAction Grantand RemovalK-9 UnitBox OfficeCemetery35,458$ 50,707$ 113,551$ 16,111$ 119,163$ 717$ 3,065,972$ 8,897$ 83,024 118,732 - 37,726 279,020 1,678 - 20,833 750 150 - - 30,709 - - - 404 613 166 184 1,598 8 - 101 - 45,804 - - - - - - - - - 422,297 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 119,636$ 216,006$ 113,717$ 476,318$ 430,490$ 2,403$ 3,065,972$ 29,831$ -$ 140,372$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - 420,253 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,065,972 - - 140,372 - 420,253 - - 3,065,972 - - - - - - - - - - 75,634 113,717 56,065 - - - 29,831 119,636 - - - - - - - - - - - 430,490 2,403 - - - - - - - - - - 119,636 75,634 113,717 56,065 430,490 2,403 - 29,831 119,636$ 216,006$ 113,717$ 476,318$ 430,490$ 2,403$ 3,065,972$ 29,831$ 122 City of South Bend, IndianaAssetsCash and cash equivalentsInvestmentsReceivables:AccountsInterestIntergovernmentalLoansAdvances to other fundsProperty held for resaleRestricted assetsTotal assetsLiabilitiesAccounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payableOther current payablesCustomer depositsTotal liabilitiesFund balancesNonspendableRestrictedCommittedAssignedUnassignedTotal fund balancesTotal liabilities and fund balancesCombining Balance Sheet (Continued)Nonmajor Governmental FundsDecember 31, 2019Special RevenueDebt Service FundsCollegeIndustrial Total Football Redevelopment Coveleski Bond RedevelopmentBowman Revolving Special Revenue 2017 Park Bond Hall of Fame Bond - Airport Debt Service Bond - PalaisCemeteryFundFundsDebt ServiceDebt ServiceTaxableReserveRoyale139,965$ 2,078,333$ 11,140,954$ 62,469$ -$ 312,108$ -$ 521,797$ 327,728 - 12,935,256 146,271 - 730,801 - 1,221,788 - - 99,791 - - - - - 1,577 - 59,918 358 - 3,560 - 5,953 - - 314,464 - - - - - - 5,004,351 5,751,532 - - - - - - - 100,000 - - - - - - 76,300 2,364,373 - - - - - - - - - - - - - 469,270$ 7,158,984$ 32,766,288$ 209,098$ -$ 1,046,469$ -$ 1,749,538$ -$ -$ 804,613$ -$ -$ -$ -$ -$ - - 74,456 - - - - - - - 420,253 - - - - - - - 13,565 - - - - - - - 277,337 - - - - - - - 2,057 - - - - - - - 3,065,972 - - - - - - - 4,658,253 - - - - - - - - - - - - - 469,270 7,158,984 24,578,923 209,098 - 1,046,469 - 1,749,538 - - 2,234,301 - - - - - - - 1,352,663 - - - - - - - (57,852) - - - - - 469,270 7,158,984 28,108,035 209,098 - 1,046,469 - 1,749,538 469,270$ 7,158,984$ 32,766,288$ 209,098$ -$ 1,046,469$ -$ 1,749,538$ 123 City of South Bend, IndianaAssetsCash and cash equivalentsInvestmentsReceivables:AccountsInterestIntergovernmentalLoansAdvances to other fundsProperty held for resaleRestricted assetsTotal assetsLiabilitiesAccounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payableOther current payablesCustomer depositsTotal liabilitiesFund balancesNonspendableRestrictedCommittedAssignedUnassignedTotal fund balancesTotal liabilities and fund balancesCombining Balance Sheet (Continued)Nonmajor Governmental FundsDecember 31, 2019Debt Service Funds20182018 TIF CenturySouth BendFire Station #9 Park Bond Center Energy Redevelopment Building 2015 Smart2017 Eddy St.Bond Debt Service Conservation Authority Corporation Streets Bond 2015 Park Bond Commons BondDebt ServiceReserveDebt ServiceDebt ServiceDebt ServiceDebt ServiceDebt ServiceDebt Service-$ 304,948$ 91,949$ 222,584$ 606,070$ 1,734,901$ 590,497$ 3,461,700$ - 714,036 97,459 - - - - - - - - - - - - - - 3,477 475 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -$ 1,022,461$ 189,883$ 222,584$ 606,070$ 1,734,901$ 590,497$ 3,461,700$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,022,461 189,883 222,584 606,070 1,734,901 590,497 3,461,700 - - - - - - - - - - - - - - - - - - - - - - - - - 1,022,461 189,883 222,584 606,070 1,734,901 590,497 3,461,700 -$ 1,022,461$ 189,883$ 222,584$ 606,070$ 1,734,901$ 590,497$ 3,461,700$ 124 City of South Bend, IndianaAssetsCash and cash equivalentsInvestmentsReceivables:AccountsInterestIntergovernmentalLoansAdvances to other fundsProperty held for resaleRestricted assetsTotal assetsLiabilitiesAccounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payableOther current payablesCustomer depositsTotal liabilitiesFund balancesNonspendableRestrictedCommittedAssignedUnassignedTotal fund balancesTotal liabilities and fund balancesCombining Balance Sheet (Continued)Nonmajor Governmental FundsDecember 31, 2019Capital Projects Funds2019MorrisTotal South Shore Professional Coveleski Cumulative Cumulative PerformingDebt Service Double Tracking Sports Stadium Capital Capital Arts CenterFundsBond CapitalDevelopmentCapitalDevelopmentImprovementMajor MovesCapital7,909,023$ 29,819$ -$ 7,736$ 101,521$ 206,199$ 657,181$ 126,328$ 2,910,355 - - 18,114 156,696 482,816 1,538,791 295,797 - - - - - - - - 13,823 - - 91 550 2,150 7,499 1,427 - - - - - - - - - - - - - - - - - - - - - - 2,388,902 - - - - - - - - - - - - - - - - - 10,833,201$ 29,819$ -$ 25,941$ 258,767$ 691,165$ 4,592,373$ 423,552$ -$ -$ -$ -$ -$ -$ 11,932$ 90,472$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11,932 90,472 - - - - - - - - 10,833,201 29,819 - - 258,767 691,165 4,580,441 - - - - 25,941 - - - 333,080 - - - - - - - - - - - - - - - - 10,833,201 29,819 - 25,941 258,767 691,165 4,580,441 333,080 10,833,201$ 29,819$ -$ 25,941$ 258,767$ 691,165$ 4,592,373$ 423,552$ 125 City of South Bend, IndianaAssetsCash and cash equivalentsInvestmentsReceivables:AccountsInterestIntergovernmentalLoansAdvances to other fundsProperty held for resaleRestricted assetsTotal assetsLiabilitiesAccounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payableOther current payablesCustomer depositsTotal liabilitiesFund balancesNonspendableRestrictedCommittedAssignedUnassignedTotal fund balancesTotal liabilities and fund balancesCombining Balance Sheet (Continued)Nonmajor Governmental FundsDecember 31, 2019Capital Projects FundsRedevelopmentRetail Area TIF - Southside Certified(Leighton Redevelopment TIF - West TIF - River East Development TIF - Douglas TIF - River East TechnologyPlaza)GeneralWashingtonDevelopmentArea No. 1RoadResidentialPark-$ 441,991$ 308,790$ 2,458,601$ 2,875,294$ 56,204$ 1,109,351$ 3,281$ - 1,034,924 723,032 5,756,817 6,732,505 131,602 2,597,546 7,683 - - 300 - - - - - - 5,060 3,526 27,072 31,650 647 10,611 38 - - - - - - - - - - - - - - - - - - - - - - - - - - 436,000 12,950 - - - - - - - - - - - - -$ 1,481,975$ 1,471,648$ 8,255,440$ 9,639,449$ 188,453$ 3,717,508$ 11,002$ -$ 58,967$ 10,956$ 283,919$ 63,733$ 14,050$ -$ -$ - - - - - - - - - - - - - - 2,388,902 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 58,967 10,956 283,919 63,733 14,050 2,388,902 - - - - - - - - - - - 1,460,692 7,971,521 9,575,716 174,403 1,328,606 11,002 - 1,423,008 - - - - - - - - - - - - - - - - - - - - - - - 1,423,008 1,460,692 7,971,521 9,575,716 174,403 1,328,606 11,002 -$ 1,481,975$ 1,471,648$ 8,255,440$ 9,639,449$ 188,453$ 3,717,508$ 11,002$ 126 City of South Bend, IndianaAssetsCash and cash equivalentsInvestmentsReceivables:AccountsInterestIntergovernmentalLoansAdvances to other fundsProperty held for resaleRestricted assetsTotal assetsLiabilitiesAccounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payableOther current payablesCustomer depositsTotal liabilitiesFund balancesNonspendableRestrictedCommittedAssignedUnassignedTotal fund balancesTotal liabilities and fund balancesCombining Balance Sheet (Continued)Nonmajor Governmental FundsDecember 31, 2019Capital Projects FundsPalais Royale Airport Urban 2018 Fire 2018 TIFEquipmentHistoric Enterprise Station #9 Park Bond 2018 Zoo Bond 2017 Park Vehicle 2015 ParkPreservationZoneBond CapitalCapitalCapitalBond CapitalLeasingBond Capital32,258$ 120,829$ 119,670$ 1,222,706$ 120,929$ 2,712,194$ 368,127$ -$ 75,533 282,921 280,207 2,862,967 - 6,350,604 1,423 - - - - - - - - - 368 1,378 1,365 14,252 - 30,939 7 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 108,159$ 405,128$ 401,242$ 4,099,925$ 120,929$ 9,093,737$ 369,557$ -$ 34,160$ -$ 221,841$ 1,217,113$ -$ 107,836$ 45,000$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 34,160 - 221,841 1,217,113 - 107,836 45,000 - - - - - - - - - - - 179,401 2,882,812 120,929 8,985,901 324,557 - 73,999 405,128 - - - - - - - - - - - - - - - - - - - - - - 73,999 405,128 179,401 2,882,812 120,929 8,985,901 324,557 - 108,159$ 405,128$ 401,242$ 4,099,925$ 120,929$ 9,093,737$ 369,557$ -$ 127 City of South Bend, IndianaAssetsCash and cash equivalentsInvestmentsReceivables:AccountsInterestIntergovernmentalLoansAdvances to other fundsProperty held for resaleRestricted assetsTotal assetsLiabilitiesAccounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payableOther current payablesCustomer depositsTotal liabilitiesFund balancesNonspendableRestrictedCommittedAssignedUnassignedTotal fund balancesTotal liabilities and fund balancesCombining Balance Sheet (Continued)Nonmajor Governmental FundsDecember 31, 2019Capital Projects Funds2015 Smart 2017 Eddy St. Total Total NonmajorStreets Bond Commons Capital Projects GovernmentalCapitalBond CapitalFundsFunds-$ 3,048,191$ 16,127,200$ 35,177,177$ - - 29,329,978 45,175,589 - - 300 100,091 - - 138,630 212,371 - - - 314,464 - - - 5,751,532 - - 2,388,902 2,488,902 - - 448,950 2,813,323 - - - - -$ 3,048,191$ 48,433,960$ 92,033,449$ -$ -$ 2,159,979$ 2,964,592$ - - - 74,456 - - 2,388,902 2,809,155 - - - 13,565 - - - 277,337 - 25,564 25,564 27,621 - - - 3,065,972 - 25,564 4,574,445 9,232,698 - - - - - 3,022,627 41,598,359 77,010,483 - - 2,261,156 4,495,457 - - - 1,352,663 - - - (57,852) - 3,022,627 43,859,515 82,800,751 -$ 3,048,191$ 48,433,960$ 92,033,449$ 128 City of South Bend, IndianaCombining Statement of Revenue, Expenditures, and Changes in Fund BalancesNonmajor Governmental FundsDecember 31, 2019Special Revenue FundsStudebakerOliver Economic DCI Gift PoliceMotor Vehicle Revitalization Development Federal Police State Donation CurfewHighwayGrantsState GrantsDCI OperatingGrantsSeizureBequestViolationRevenueProperty taxes -$ -$ -$ -$ -$ -$ -$ -$ Income taxes - - - - - - - - Hotel/motel taxes - - - - - - - - Licenses and permits 3,150 - - - - - - - Intergovernmental 2,784,290 - - 434,000 2,153,384 - - - Charges for services 244,790 - - 197,245 - - - - Fines and forfeitures - - - - - - - 75 Investment income 167,617 25,760 2,794 18,188 - 6,624 16,042 372 Other revenue 170,534 - 22,934 4,182 473,888 5,227 654,299 - Total revenue 3,370,381 25,760 25,728 653,615 2,627,272 11,851 670,341 447 ExpendituresCurrent:General government - - - - - - 241,961 - Public safety - - - - - - - 623 Highways and streets 7,696,558 - - - - - - - Community and economic development - 148,744 58,581 2,794,025 2,615,216 - - - Culture and recreation - - - - - - - - Bond issuance costs - - - - - - - - Capital outlay - - - - - - - - Debt service:Principal 734,901 - 67,581 - - - - - Interest on long-term debt 45,227 - 4,429 - - - - - Total expenditures 8,476,686 148,744 130,591 2,794,025 2,615,216 - 241,961 623 Excess of revenue (under) over expenditures (5,106,305) (122,984) (104,863) (2,140,410) 12,056 11,851 428,380 (176) Other financing sources (uses)Issuance of debt - - - - - - - - Premium on debt - - - - - - - - Proceeds from sale of capital assets 10,511 - - - - - - - Transfers in 3,852,066 - - 2,350,633 - - 76,493 - Transfers out (2,500,000) - (230,000) - - - - - Total other financing sources (uses) 1,362,577 - (230,000) 2,350,633 - - 76,493 - Net change in fund balances(3,743,728) (122,984) (334,863) 210,223 12,056 11,851 504,873 (176) Fund balances - Beginning of year 8,345,043 1,121,902 535,242 709,547 2,574,213 227,285 153,175 13,114 Fund balances - End of year4,601,315$ 998,918$ 200,379$ 919,770$ 2,586,269$ 239,136$ 658,048$ 12,938$ 129 City of South Bend, IndianaRevenueProperty taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeOther revenueTotal revenueExpendituresCurrent:General governmentPublic safetyHighways and streetsCommunity and economic developmentCulture and recreationBond issuance costsCapital outlayDebt service:PrincipalInterest on long-term debtTotal expendituresExcess of revenue (under) over expendituresOther financing sources (uses)Issuance of debtPremium on debtProceeds from sale of capital assetsTransfers inTransfers outTotal other financing sources (uses)Net change in fund balancesFund balances - Beginning of year Fund balances - End of yearCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental FundsDecember 31, 2019Special RevenueLawEnforcement RentalLOIT 2016Unsafe Continuing Units Loss Recovery Code Local Road Special Human RightsBuildingEducationRegulationFundEnforcementand StreetDistributionFederal Grants-$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,818,145 - 238,060 - 135,910 - - - - - - 260,491 112,492 8,725 - - - - - 19,288 11,418 375 17,284 - 137,592 10,787 12,982 2,298 16,337 - - - 35,438 92,453 312 282,077 276,157 9,100 17,284 - 1,991,175 103,240 251,354 - - - 37,311 - - - 192,546 591,828 256,548 5,867 - 57,852 - - - - - - - - 2,627,321 561,966 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 591,828 256,548 5,867 37,311 57,852 2,627,321 561,966 192,546 (309,751) 19,609 3,233 (20,027) (57,852) (636,146) (458,726) 58,808 - - - - - - - - - - - - - - - - - - - - - - - - 681,491 26,423 - - - 2,500,000 - - - - - - - (617,569) - (76,493) 681,491 26,423 - - - 1,882,431 - (76,493) 371,740 46,032 3,233 (20,027) (57,852) 1,246,285 (458,726) (17,685) 526,714 362,818 10,134 627,564 - 3,959,182 592,816 534,728 898,454$ 408,850$ 13,367$ 607,537$ (57,852)$ 5,205,467$ 134,090$ 517,043$ 130 City of South Bend, IndianaRevenueProperty taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeOther revenueTotal revenueExpendituresCurrent:General governmentPublic safetyHighways and streetsCommunity and economic developmentCulture and recreationBond issuance costsCapital outlayDebt service:PrincipalInterest on long-term debtTotal expendituresExcess of revenue (under) over expendituresOther financing sources (uses)Issuance of debtPremium on debtProceeds from sale of capital assetsTransfers inTransfers outTotal other financing sources (uses)Net change in fund balancesFund balances - Beginning of year Fund balances - End of yearCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental FundsDecember 31, 2019Special RevenueMorris and Morris PACLocal Road and MVH Palais Self-Promoted Police Block Indiana River PoliceBridge GrantRestrictedMarketingEventsGrantsHazmatRescueGrants-$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - 553,253 3,277,400 - - - - - - - - 21,618 82,464 - 6,075 96,270 - - - - - - - - - 11,017 16,288 1,887 4,181 115 757 7,356 - - - - - - - 24,945 - 564,270 3,293,688 23,505 86,645 115 6,832 128,571 - - - - - - - - - - - - - - 1,457 25,394 - 1,077,210 2,569,216 - - - - - - - - - - - - - - - - 7,720 956 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,077,210 2,569,216 7,720 956 - 1,457 25,394 - (512,940) 724,472 15,785 85,689 115 5,375 103,177 - - - - - - - - - - - - - - - - - - - - - - - - - 553,253 - - - - - - - - - - - - - - - 553,253 - - - - - - - 40,313 724,472 15,785 85,689 115 5,375 103,177 - 330,297 - 57,503 101,772 3,994 22,367 190,701 26,716 370,610$ 724,472$ 73,288$ 187,461$ 4,109$ 27,742$ 293,878$ 26,716$ 131 City of South Bend, IndianaRevenueProperty taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeOther revenueTotal revenueExpendituresCurrent:General governmentPublic safetyHighways and streetsCommunity and economic developmentCulture and recreationBond issuance costsCapital outlayDebt service:PrincipalInterest on long-term debtTotal expendituresExcess of revenue (under) over expendituresOther financing sources (uses)Issuance of debtPremium on debtProceeds from sale of capital assetsTransfers inTransfers outTotal other financing sources (uses)Net change in fund balancesFund balances - Beginning of year Fund balances - End of yearCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental FundsDecember 31, 2019Special RevenueUrbanRegional Police COPS MORE Federal Drug Development Leaf Collection Police Morris/Palais CityAcademyGrantEnforcementAction Grantand RemovalK-9 UnitBox OfficeCemetery-$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - 102,299 - - - - - - 24,276 - - - 447,563 - - - - 9,209 - - - - - - 3,208 4,935 3,015 916 15,907 66 - 833 175 3,049 - - 103 - - - 27,659 119,492 3,015 916 463,573 66 - 833 - - - - 108,548 - - - 6,597 232,037 43,499 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6,597 232,037 43,499 - 108,548 - - - 21,062 (112,545) (40,484) 916 355,025 66 - 833 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (550,000) - - - - - - - (550,000) - - - 21,062 (112,545) (40,484) 916 (194,975) 66 - 833 98,574 188,179 154,201 55,149 625,465 2,337 - 28,998 119,636$ 75,634$ 113,717$ 56,065$ 430,490$ 2,403$ -$ 29,831$ 132 City of South Bend, IndianaRevenueProperty taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeOther revenueTotal revenueExpendituresCurrent:General governmentPublic safetyHighways and streetsCommunity and economic developmentCulture and recreationBond issuance costsCapital outlayDebt service:PrincipalInterest on long-term debtTotal expendituresExcess of revenue (under) over expendituresOther financing sources (uses)Issuance of debtPremium on debtProceeds from sale of capital assetsTransfers inTransfers outTotal other financing sources (uses)Net change in fund balancesFund balances - Beginning of year Fund balances - End of yearCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental FundsDecember 31, 2019Special RevenueDebt Service FundsCollegeIndustrial Total Football Redevelopment Coveleski Bond RedevelopmentBowman Revolving Special Revenue 2017 Park Bond Hall of Fame Bond - Airport Debt Service Bond - PalaisCemeteryFundFundsDebt ServiceDebt ServiceTaxableReserveRoyale-$ -$ -$ 1,166,972$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - 3,150 - - - - - - - 11,360,831 74,210 - - - - - - 1,256,211 - - - - - - - 390,992 - - - - - 13,110 - 530,714 1,413 27 29,596 742 49,482 - 293,958 1,800,132 - - - - - 13,110 293,958 15,342,030 1,242,595 27 29,596 742 49,482 - - 580,366 - - - - - - - 1,221,702 - - - - - - - 14,532,271 - - - - - - 119,441 5,736,007 - - - - - - - 8,676 - - - - - - - - - - - - - - - - - - - - - - - 802,482 770,000 - - - - - - 49,656 411,140 - - - - - 119,441 22,931,160 1,181,140 - - - - 13,110 174,517 (7,589,130) 61,455 27 29,596 742 49,482 - - - - - - - - - - - - - - - - - - 10,511 - - - - - - - 10,040,359 - - - - - - - (3,974,062) - (97,077) (23,303) (527,517) (38,958) - - 6,076,808 - (97,077) (23,303) (527,517) (38,958) 13,110 174,517 (1,512,322) 61,455 (97,050) 6,293 (526,775) 10,524 456,160 6,984,467 29,620,357 147,643 97,050 1,040,176 526,775 1,739,014 469,270$ 7,158,984$ 28,108,035$ 209,098$ -$ 1,046,469$ -$ 1,749,538$ 133 City of South Bend, IndianaRevenueProperty taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeOther revenueTotal revenueExpendituresCurrent:General governmentPublic safetyHighways and streetsCommunity and economic developmentCulture and recreationBond issuance costsCapital outlayDebt service:PrincipalInterest on long-term debtTotal expendituresExcess of revenue (under) over expendituresOther financing sources (uses)Issuance of debtPremium on debtProceeds from sale of capital assetsTransfers inTransfers outTotal other financing sources (uses)Net change in fund balancesFund balances - Beginning of year Fund balances - End of yearCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental FundsDecember 31, 2019Debt Service Funds20182018 TIF CenturySouth BendFire Station #9 Park Bond Center Energy Redevelopment Building 2015 Smart2017 Eddy St.Bond Debt Service Conservation Authority Corporation Streets Bond 2015 Park Bond Commons BondDebt ServiceReserveDebt ServiceDebt ServiceDebt ServiceDebt ServiceDebt ServiceDebt Service-$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - 235,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 28,611 4,391 6,383 15,014 4,630 3,527 8,792 - - 104,511 - - - - - - 28,611 343,902 6,383 15,014 4,630 3,527 8,792 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 170,000 - 280,090 1,725,000 1,864,355 970,000 220,000 50,000 151,706 - 135,333 1,136,669 285,434 742,019 162,731 1,248,125 321,706 - 415,423 2,861,669 2,149,789 1,712,019 382,731 1,298,125 (321,706) 28,611 (71,521) (2,855,286) (2,134,775) (1,707,389) (379,204) (1,289,333) - - - - - - - - - - - - - - - - - - - - - - - - 321,706 - 90,752 2,867,378 2,154,098 1,715,500 409,270 1,298,125 - - - - - - - - 321,706 - 90,752 2,867,378 2,154,098 1,715,500 409,270 1,298,125 - 28,611 19,231 12,092 19,323 8,111 30,066 8,792 - 993,850 170,652 210,492 586,747 1,726,790 560,431 3,452,908 -$ 1,022,461$ 189,883$ 222,584$ 606,070$ 1,734,901$ 590,497$ 3,461,700$ 134 City of South Bend, IndianaRevenueProperty taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeOther revenueTotal revenueExpendituresCurrent:General governmentPublic safetyHighways and streetsCommunity and economic developmentCulture and recreationBond issuance costsCapital outlayDebt service:PrincipalInterest on long-term debtTotal expendituresExcess of revenue (under) over expendituresOther financing sources (uses)Issuance of debtPremium on debtProceeds from sale of capital assetsTransfers inTransfers outTotal other financing sources (uses)Net change in fund balancesFund balances - Beginning of year Fund balances - End of yearCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental FundsDecember 31, 2019Capital Projects Funds2019MorrisTotal South Shore Professional Coveleski Cumulative Cumulative PerformingDebt Service Double Tracking Sports Stadium Capital Capital Arts CenterFundsBond CapitalDevelopmentCapitalDevelopmentImprovementMajor MovesCapital1,166,972$ -$ -$ -$ 455,002$ -$ -$ -$ - - - - - - - - 235,000 - - - - - - - - - - - - - - - 74,210 - - - 40,353 231,026 - - - - - 23,125 - - - 82,464 - - - - - - - - 152,608 - 1,201 823 9,798 15,171 71,635 11,429 104,511 - 3,786 - - 25,000 191,660 575 1,733,301 - 4,987 23,948 505,153 271,197 263,295 94,468 - - - - - - - - - - - - - - - - - - - - - - 1,200,791 - - - - - - - - - - - - - - - - - - 293,022 - - - - - - - 9,125,000 - 71,468 693,881 28,000 - 139,397 6,049,445 - 345,000 - 498,598 - - - 4,273,157 - 8,970 - 40,678 - - - 10,322,602 9,418,022 353,970 71,468 1,233,157 28,000 1,200,791 139,397 (8,589,301) (9,418,022) (348,983) (47,520) (728,004) 243,197 (937,496) (44,929) - 7,985,000 - - 457,340 - - - - 1,462,841 - - - - - - - - - - - - - - 8,856,829 - 527,517 - - - - - (686,855) - (178,534) - - - - - 8,169,974 9,447,841 348,983 - 457,340 - - - (419,327) 29,819 - (47,520) (270,664) 243,197 (937,496) (44,929) 11,252,528 - - 73,461 529,431 447,968 5,517,937 378,009 10,833,201$ 29,819$ -$ 25,941$ 258,767$ 691,165$ 4,580,441$ 333,080$ 135 City of South Bend, IndianaRevenueProperty taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeOther revenueTotal revenueExpendituresCurrent:General governmentPublic safetyHighways and streetsCommunity and economic developmentCulture and recreationBond issuance costsCapital outlayDebt service:PrincipalInterest on long-term debtTotal expendituresExcess of revenue (under) over expendituresOther financing sources (uses)Issuance of debtPremium on debtProceeds from sale of capital assetsTransfers inTransfers outTotal other financing sources (uses)Net change in fund balancesFund balances - Beginning of year Fund balances - End of yearCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental FundsDecember 31, 2019Capital Projects FundsRedevelopmentRetail Area TIF - Southside Certified(Leighton Redevelopment TIF - West TIF - River East Development TIF - Douglas TIF - River East TechnologyPlaza)GeneralWashingtonDevelopmentArea No. 1RoadResidentialPark-$ -$ 261,830$ 2,722,642$ 1,621,321$ -$ 4,933,558$ -$ - 84,095 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 147 26,953 42,109 256,066 259,010 5,623 56,982 10,770 - 1,177,112 18,800 6,725 - - - - 147 1,288,160 322,739 2,985,433 1,880,331 5,623 4,990,540 10,770 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 772 481,167 1,080,713 6,013,188 1,470,065 35,625 - 624,194 - - - - - - - - - - - - - - 102,306 - 772 481,167 1,080,713 6,013,188 1,470,065 35,625 102,306 624,194 (625) 806,993 (757,974) (3,027,755) 410,266 (30,002) 4,888,234 (613,424) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (7,820) - - - - - (3,769,003) - (7,820) - - - - - (3,769,003) - (8,445) 806,993 (757,974) (3,027,755) 410,266 (30,002) 1,119,231 (613,424) 8,445 616,015 2,218,666 10,999,276 9,165,450 204,405 209,375 624,426 -$ 1,423,008$ 1,460,692$ 7,971,521$ 9,575,716$ 174,403$ 1,328,606$ 11,002$ 136 City of South Bend, IndianaRevenueProperty taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeOther revenueTotal revenueExpendituresCurrent:General governmentPublic safetyHighways and streetsCommunity and economic developmentCulture and recreationBond issuance costsCapital outlayDebt service:PrincipalInterest on long-term debtTotal expendituresExcess of revenue (under) over expendituresOther financing sources (uses)Issuance of debtPremium on debtProceeds from sale of capital assetsTransfers inTransfers outTotal other financing sources (uses)Net change in fund balancesFund balances - Beginning of year Fund balances - End of yearCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental FundsDecember 31, 2019Capital Projects FundsPalais Royale Airport Urban 2018 Fire 2018 TIFEquipmentHistoric Enterprise Station #9 Park Bond 2018 Zoo Bond 2017 Park Vehicle 2015 ParkPreservationZoneBond CapitalCapitalCapitalBond CapitalLeasingBond Capital-$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12,558 - - - - - - - - - - - - - - - 3,062 11,337 40,470 203,216 22,488 304,376 2,367 840 - - - - - - - - 15,620 11,337 40,470 203,216 22,488 304,376 2,367 840 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 41,402 - 2,795,434 7,487,675 3,166,419 3,789,308 1,040,177 445,279 - - - - - - 91,941 - - - - - - - 9,173 - 41,402 - 2,795,434 7,487,675 3,166,419 3,789,308 1,141,291 445,279 (25,782) 11,337 (2,754,964) (7,284,459) (3,143,931) (3,484,932) (1,138,924) (444,439) - - - - - - 177,147 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (3,048) - - - - - - 177,147 (3,048) (25,782) 11,337 (2,754,964) (7,284,459) (3,143,931) (3,484,932) (961,777) (447,487) 99,781 393,791 2,934,365 10,167,271 3,264,860 12,470,833 1,286,334 447,487 73,999$ 405,128$ 179,401$ 2,882,812$ 120,929$ 8,985,901$ 324,557$ -$ 137 City of South Bend, IndianaRevenueProperty taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeOther revenueTotal revenueExpendituresCurrent:General governmentPublic safetyHighways and streetsCommunity and economic developmentCulture and recreationBond issuance costsCapital outlayDebt service:PrincipalInterest on long-term debtTotal expendituresExcess of revenue (under) over expendituresOther financing sources (uses)Issuance of debtPremium on debtProceeds from sale of capital assetsTransfers inTransfers outTotal other financing sources (uses)Net change in fund balancesFund balances - Beginning of year Fund balances - End of yearCombining Statement of Revenue, Expenditures, and Changes in Fund Balances (Continued)Nonmajor Governmental FundsDecember 31, 2019Capital Projects Funds2015 Smart 2017 Eddy St. Total Total NonmajorStreets Bond Commons Capital Projects GovernmentalCapitalBond CapitalFundsFunds-$ -$ 9,994,353$ 11,161,325$ - - 84,095 84,095 - - - 235,000 - - - 3,150 - - 271,379 11,706,420 - - 118,147 1,374,358 - - - 390,992 124 66 1,356,063 2,039,385 - - 1,423,658 3,328,301 124 66 13,247,695 30,323,026 - - - 580,366 - - - 1,221,702 - - 1,200,791 15,733,062 - - - 5,736,007 - - - 8,676 - - 293,022 293,022 68,967 4,602,119 43,200,250 43,200,250 - - 935,539 7,787,466 - - 161,127 4,483,940 68,967 4,602,119 45,790,729 79,044,491 (68,843) (4,602,053) (32,543,034) (48,721,465) - - 8,619,487 8,619,487 - - 1,462,841 1,462,841 - - - 10,511 - - 527,517 19,424,705 - - (3,958,405) (8,619,322) - - 6,651,440 20,898,222 (68,843) (4,602,053) (25,891,594) (27,823,243) 68,843 7,624,680 69,751,109 110,623,994 -$ 3,022,627$ 43,859,515$ 82,800,751$ 138 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Major Governmental Funds Capital Projects Funds - River West TIF December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 16,935,449$ 18,555,308$ 18,555,308$ -$ Intergovernmental 396,500 437,707 436,206 (1,501) Charges for services - 1,080 2,160 1,080 Investment income 200,000 621,580 744,246 122,666 Other - 33,825 129,336 95,511 Total revenues 17,531,949 19,649,500 19,867,256 217,756 Expenditures: Current: Economic development: Other services and charges 5,149,809 10,512,186 9,382,071 1,130,115 Capital outlay 8,589,173 28,711,747 14,850,069 13,861,678 Total expenditures 13,738,982 39,223,933 24,232,140 14,991,793 Other Financing Sources (Uses): Transfers in 34,000 47,934 64,022 16,088 Transfers out (4,261,018) (4,266,098) (4,266,098) - Net change in fund balances (434,051) (23,792,597) (8,566,960) 15,225,637 Fund balances - Beginning 31,738,300 31,738,300 31,738,300 - Fund balances - Ending 31,304,249$ 7,945,703$ 23,171,340$ 15,225,637$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (8,566,960)$ To adjust revenues for accruals (1,021,824) To adjust expenditures for accruals 335,654 To adjust expenditures for encumbrances 7,834,836 Net change in fund balance, GAAP basis (1,418,294)$ 139 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds Special Revenue Funds - Motor Vehicle Highway December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 6,299,031$ 3,149,516$ 3,209,051$ 59,535$ Charges for services 228,245 243,410 253,301 9,891 Investment income 47,845 146,000 165,725 19,725 Other 143,232 169,815 170,022 207 Total revenues 6,718,353 3,711,891 3,801,249 89,358 Expenditures: Current: Highways and streets: Personnel services 4,492,569 3,741,944 3,573,668 168,276 Supplies 2,934,307 1,967,927 1,683,034 284,893 Other services and charges 4,419,072 3,943,132 3,842,458 100,674 Capital outlay - 64,316 64,316 - Total expenditures 11,845,948 9,717,319 9,163,476 553,843 Other Financing Sources (Uses): Proceeds from sale of capital assets - 10,511 10,511 - Transfers in 3,787,750 3,852,066 3,852,066 - Transfers out (2,500,000) (2,500,000) (2,500,000) - Net change in fund balances (3,839,845) (4,642,851) (3,999,650) 643,201 Fund balances - Beginning 8,012,501 8,012,501 8,012,501 - Fund balances - Ending 4,172,656$ 3,369,650$ 4,012,851$ 643,201$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (3,999,650)$ To adjust revenues for accruals (430,870) To adjust expenditures for accruals (40,958) To adjust expenditures for encumbrances 727,750 Net change in fund balance, GAAP basis (3,743,728)$ 140 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Studebaker Oliver Revitalization Grants December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 10,000$ 25,000$ 24,778$ (222)$ Other 100,000 100,000 100,000 - Total revenues 110,000 125,000 124,778 (222) Expenditures: Current: Economic development: Other services and charges 750,000 1,011,251 998,434 12,817 Net change in fund balances (640,000) (886,251) (873,656) 12,595 Fund balances - Beginning 956,464 956,464 956,464 - Fund balances - Ending 316,464$ 70,213$ 82,808$ 12,595$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (873,656)$ To adjust revenues for accruals (99,018) To adjust expenditures for accruals 1,226 To adjust expenditures for encumbrances 848,464 Net change in fund balance, GAAP basis (122,984)$ 141 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Economic Development State Grants December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ 672,857$ -$ (672,857)$ Investment income 1,500 2,900 2,878 (22) Other 72,011 72,011 72,010 (1) Total revenues 73,511 747,768 74,888 (672,880) Expenditures: Current: Economic development: Other services and charges 72,011 825,868 189,172 636,696 Net change in fund balances (228,500) (308,100) (344,284) (36,184) Fund balances - Beginning 345,693 345,693 345,693 - Fund balances - Ending 117,193$ 37,593$ 1,409$ (36,184)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (344,284)$ To adjust revenues for accruals (49,160) To adjust expenditures for accruals (4,882) To adjust expenditures for encumbrances 63,463 Net change in fund balance, GAAP basis (334,863)$ 142 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - DCI Operating December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 440,636$ 440,636$ 434,000$ (6,636)$ Charges for services 256,100 259,100 212,079 (47,021) Fines and forfeitures 2,000 152 - (152) Investment income 10,000 13,570 17,680 4,110 Other - 4,704 4,123 (581) Total revenues 708,736 718,162 667,882 (50,280) Expenditures: Current: Economic development: Personnel services 2,315,613 2,130,613 2,021,736 108,877 Supplies 23,748 28,460 20,538 7,922 Other services and charges 720,008 993,593 962,139 31,454 Total expenditures 3,059,369 3,152,666 3,004,413 148,253 Other Financing Sources (Uses): Transfers in 2,350,633 2,350,633 2,350,633 - Net change in fund balances - (83,871) 14,102 97,973 Fund balances - Beginning 731,464 731,464 731,464 - Fund balances - Ending 731,464$ 647,593$ 745,566$ 97,973$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 14,102$ To adjust revenues for accruals (14,268) To adjust expenditures for accruals (58,290) To adjust expenditures for encumbrances 268,679 Net change in fund balance, GAAP basis 210,223$ 143 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - DCI Federal Grants December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 2,711,000$ 7,744,914$ 2,030,043$ (5,714,871)$ Fines and forfeitures 1,000 1,000 30 (970) Other 199,000 1,416,390 485,170 (931,220) Total revenues 2,911,000 9,162,304 2,515,243 (6,647,061) Expenditures: Current: Economic development: Other services and charges 2,911,000 7,944,915 4,977,529 2,967,386 Net change in fund balances - 1,217,389 (2,462,286) (3,679,675) Fund balances - Beginning 347,782 347,782 347,782 - Fund balances - Ending 347,782$ 1,565,171$ (2,114,504)$ (3,679,675)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (2,462,286)$ To adjust revenues for accruals 112,029 To adjust expenditures for accruals (59,319) To adjust expenditures for encumbrances 2,421,632 Net change in fund balance, GAAP basis 12,056$ 144 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Police State Seizure December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 30,000$ 30,000$ 5,018$ (24,982)$ Investment income 2,000 5,390 6,364 974 Other - 310 310 - Total revenues 32,000 35,700 11,692 (24,008) Expenditures: Current: Public safety: Other services and charges 32,000 32,000 - 32,000 Net change in fund balances - 3,700 11,692 7,992 Fund balances - Beginning 227,103 227,103 227,103 - Fund balances - Ending 227,103$ 230,803$ 238,795$ 7,992$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 11,692$ To adjust revenues for accruals 159 To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 11,851$ 145 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Gift, Donation, Bequest December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 800$ 11,800$ 15,115$ 3,315$ Other 25,000 658,800 654,367 (4,433) Total revenues 25,800 670,600 669,482 (1,118) Expenditures: Current: General government: Supplies 5,000 5,000 - 5,000 Other services and charges 42,500 625,592 576,242 49,350 Total expenditures 47,500 630,592 576,242 54,350 Other Financing Sources (Uses): Transfers in - 76,493 76,493 - Net change in fund balances (21,700) 116,501 169,733 53,232 Fund balances - Beginning 165,219 165,219 165,219 - Fund balances - Ending 143,519$ 281,720$ 334,952$ 53,232$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 169,733$ To adjust revenues for accruals 860 To adjust expenditures for accruals (109) To adjust expenditures for encumbrances 334,389 Net change in fund balance, GAAP basis 504,873$ 146 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - DCI Federal Grants December 31, 2019 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds Special Revenue Funds - Police Curfew Violation #REF! Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Fines and forfeitures 200$ 200$ 75$ (125)$ Investment income 100 300 359 59 Total revenues 300 500 434 (66) Expenditures: Current: Public safety: Other services and charges 1,000 1,000 623 377 Net change in fund balances (700) (500) (189) 311 Fund balances - Beginning 13,109 13,109 13,109 - Fund balances - Ending 12,409$ 12,609$ 12,920$ 311$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (189)$ To adjust revenues for accruals 13 To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis (176)$ 147 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Unsafe Building December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Fines and forfeitures 180,200$ 275,987$ 263,172$ (12,815)$ Investment income 1,000 14,600 18,352 3,752 Other - 2,298 2,298 - Total revenues 181,200 292,885 283,822 (9,063) Expenditures: Current: Public safety: Personnel services 271,847 281,847 243,732 38,115 Supplies 26,450 46,450 30,337 16,113 Other services and charges 564,394 690,560 338,792 351,768 Capital outlay - 24,580 24,580 - Total expenditures 862,691 1,043,437 637,441 405,996 Other Financing Sources (Uses): Transfers in 681,491 681,491 681,491 - Net change in fund balances - (69,061) 327,872 396,933 Fund balances - Beginning 544,556 544,556 544,556 - Fund balances - Ending 544,556$ 475,495$ 872,428$ 396,933$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 327,872$ To adjust revenues for accruals (1,745) To adjust expenditures for accruals 718 To adjust expenditures for encumbrances 44,895 Net change in fund balance, GAAP basis 371,740$ 148 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Law Enforcement Continuing Education December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 140,000$ 152,292$ 135,148$ (17,144)$ Fines and forfeitures 116,000 118,025 103,233 (14,792) Investment income 5,000 9,300 11,017 1,717 Other 20,500 55,093 38,661 (16,432) Total revenues 281,500 334,710 288,059 (46,651) Expenditures: Current: Public safety: Supplies 190,500 295,556 209,754 85,802 Other services and charges 220,000 221,990 152,293 69,697 Total expenditures 410,500 517,546 362,047 155,499 Net change in fund balances (129,000) (182,836) (73,988) 108,848 Fund balances - Beginning 446,232 446,232 446,232 - Fund balances - Ending 317,232$ 263,396$ 372,244$ 108,848$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (73,988)$ To adjust revenues for accruals 14,521 To adjust expenditures for accruals 55,622 To adjust expenditures for encumbrances 49,877 Net change in fund balance, GAAP basis 46,032$ 149 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Rental Units Regulation December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Fines and forfeitures 1,000$ 7,375$ 7,375$ -$ Investment income - 275 351 76 Total revenues 1,000 7,650 7,726 76 Expenditures: Current: Public safety: Other services and charges 500 500 - 500 Net change in fund balances 500 7,150 7,726 576 Fund balances - Beginning 10,130 10,130 10,130 - Fund balances - Ending 10,630$ 17,280$ 17,856$ 576$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 7,726$ To adjust revenues for accruals 1,373 To adjust expenditures for accruals (5,866) To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 3,233$ 150 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Loss Recovery December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 4,000$ 14,200$ 16,668$ 2,468$ Expenditures: Current: General government: Other services and charges 225,000 270,097 237,311 32,786 Capital outlay - 2,409 - 2,409 Total expenditures 225,000 272,506 237,311 35,195 Net change in fund balances (221,000) (258,306) (220,643) 37,663 Fund balances - Beginning 627,325 627,325 627,325 - Fund balances - Ending 406,325$ 369,019$ 406,682$ 37,663$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (220,643)$ To adjust revenues for accruals 616 To adjust expenditures for accruals - To adjust expenditures for encumbrances 200,000 Net change in fund balance, GAAP basis (20,027)$ 151 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Local Road and Street December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 2,015,689$ 2,015,689$ 1,975,599$ (40,090)$ Investment income 30,000 111,300 132,553 21,253 Other - 38,377 38,375 (2) Total revenues 2,045,689 2,165,366 2,146,527 (18,839) Expenditures: Current: Highways and streets: Supplies 250,000 339,675 92,522 247,153 Other services and charges 1,330,000 1,806,926 1,477,613 329,313 Capital outlay 3,550,000 4,348,109 3,937,801 410,308 Total expenditures 5,130,000 6,494,710 5,507,936 986,774 Other Financing Sources (Uses): Transfers in 2,500,000 2,500,000 2,500,000 - Transfers out (600,000) (664,316) (617,569) 46,747 Net change in fund balances (1,184,311) (2,493,660) (1,478,978) 1,014,682 Fund balances - Beginning 3,929,500 3,929,500 3,929,500 - Fund balances - Ending 2,745,189$ 1,435,840$ 2,450,522$ 1,014,682$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (1,478,978)$ To adjust revenues for accruals (155,352) To adjust expenditures for accruals 87,932 To adjust expenditures for encumbrances 2,792,683 Net change in fund balance, GAAP basis 1,246,285$ 152 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - LOIT 2016 Special Distribution December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 215,000$ 215,000$ -$ (215,000)$ Investment income 12,500 10,229 10,922 693 Other - 92,453 92,453 - Total revenues 227,500 317,682 103,375 (214,307) Expenditures: Current: Highways and streets: Other services and charges 65,000 322,319 281,329 40,990 Capital outlay - 578,944 574,253 4,691 Total expenditures 65,000 901,263 855,582 45,681 Net change in fund balances 162,500 (583,581) (752,207) (168,626) Fund balances - Beginning 759,357 759,357 759,357 - Fund balances - Ending 921,857$ 175,776$ 7,150$ (168,626)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (752,207)$ To adjust revenues for accruals (134) To adjust expenditures for accruals 129,528 To adjust expenditures for encumbrances 164,087 Net change in fund balance, GAAP basis (458,726)$ 153 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Human Rights Federal Grants December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 145,000$ 145,000$ 247,060$ 102,060$ Investment income 2,000 10,360 12,491 2,131 Other 20,400 20,400 312 (20,088) Total revenues 167,400 175,760 259,863 84,103 Expenditures: Current: General government: Personnel services 150,088 160,248 154,296 5,952 Supplies 2,000 2,000 1,330 670 Other services and charges 82,900 128,450 63,401 65,049 Total expenditures 234,988 290,698 219,027 71,671 Other Financing Sources (Uses): Transfers out - (76,493) (76,493) - Net change in fund balances (67,588) (191,431) (35,657) 155,774 Fund balances - Beginning 529,536 529,536 529,536 - Fund balances - Ending 461,948$ 338,105$ 493,879$ 155,774$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (35,657)$ To adjust revenues for accruals (8,510) To adjust expenditures for accruals (1,710) To adjust expenditures for encumbrances 28,192 Net change in fund balance, GAAP basis (17,685)$ 154 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Local Road and Bridge Grant December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 600,000$ 600,000$ 553,253$ (46,747)$ Investment income - 8,600 10,466 1,866 Total revenues 600,000 608,600 563,719 (44,881) Expenditures: Current: Highways and streets: Other services and charges 1,200,000 2,064,741 1,971,197 93,544 Other Financing Sources (Uses): Transfers in 600,000 1,340,000 553,253 (786,747) Net change in fund balances - (116,141) (854,225) (738,084) Fund balances - Beginning 330,177 330,177 330,177 - Fund balances - Ending 330,177$ 214,036$ (524,048)$ (738,084)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (854,225)$ To adjust revenues for accruals 551 To adjust expenditures for accruals (80,354) To adjust expenditures for encumbrances 974,341 Net change in fund balance, GAAP basis 40,313$ 155 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - MVH Restricted December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ 3,149,515$ 3,209,051$ 59,536$ Investment income - 12,350 15,007 2,657 Total revenues - 3,161,865 3,224,058 62,193 Expenditures: Current: Highways and streets: Personnel services - 750,625 438,746 311,879 Supplies - 1,565,690 1,385,227 180,463 Other services and charges - 848,908 774,629 74,279 Total expenditures - 3,165,223 2,598,602 566,621 Net change in fund balances - (3,358) 625,456 628,814 Fund balances - Beginning - - - - Fund balances - Ending -$ (3,358)$ 625,456$ 628,814$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 625,456$ To adjust revenues for accruals 69,630 To adjust expenditures for accruals - To adjust expenditures for encumbrances 29,386 Net change in fund balance, GAAP basis 724,472$ 156 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Morris and Palais Marketing December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 15,000$ 21,600$ 21,618$ 18$ Investment income 800 1,500 1,802 302 Total revenues 15,800 23,100 23,420 320 Expenditures: Current: Culture and recreation: Other services and charges 30,000 30,000 18,536 11,464 Net change in fund balances (14,200) (6,900) 4,884 11,784 Fund balances - Beginning 57,485 57,485 57,485 - Fund balances - Ending 43,285$ 50,585$ 62,369$ 11,784$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 4,884$ To adjust revenues for accruals 85 To adjust expenditures for accruals - To adjust expenditures for encumbrances 10,816 Net change in fund balance, GAAP basis 15,785$ 157 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Morris PAC Self-Promotion December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 125,000$ 124,625$ 82,464$ (42,161)$ Investment income 400 3,175 3,934 759 Total revenues 125,400 127,800 86,398 (41,402) Expenditures: Current: Culture and recreation: Other services and charges 75,000 75,000 956 74,044 Net change in fund balances 50,400 52,800 85,442 32,642 Fund balances - Beginning 101,746 101,746 101,746 - Fund balances - Ending 152,146$ 154,546$ 187,188$ 32,642$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 85,442$ To adjust revenues for accruals 247 To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 85,689$ 158 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Police Block Grants December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 35$ 90$ 111$ 21$ Net change in fund balances 35 90 111 21 Fund balances - Beginning 3,992 3,992 3,992 - Fund balances - Ending 4,027$ 4,082$ 4,103$ 21$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 111$ To adjust revenues for accruals 4 To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 115$ 159 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Hazmat December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 10,000$ 10,000$ 9,350$ (650)$ Investment income 200 600 721 121 Total revenues 10,200 10,600 10,071 (529) Expenditures: Current: Public safety: Supplies 10,000 10,472 1,457 9,015 Net change in fund balances 200 128 8,614 8,486 Fund balances - Beginning 19,085 19,085 19,085 - Fund balances - Ending 19,285$ 19,213$ 27,699$ 8,486$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 8,614$ To adjust revenues for accruals (3,239) To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 5,375$ 160 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Indiana River Rescue December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 72,000$ 111,870$ 111,870$ -$ Investment income 500 5,800 6,998 1,198 Other - 24,945 24,945 - Total revenues 72,500 142,615 143,813 1,198 Expenditures: Current: Public safety: Personnel services 15,500 15,500 462 15,038 Supplies 18,800 43,745 13,695 30,050 Other services and charges 68,500 76,020 20,206 55,814 Total expenditures 102,800 135,265 34,363 100,902 Net change in fund balances (30,300) 7,350 109,450 102,100 Fund balances - Beginning 181,646 181,646 181,646 - Fund balances - Ending 151,346$ 188,996$ 291,096$ 102,100$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 109,450$ To adjust revenues for accruals (15,242) To adjust expenditures for accruals 6,187 To adjust expenditures for encumbrances 2,782 Net change in fund balance, GAAP basis 103,177$ 161 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Police Grants December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Expenditures: Current: Public safety: Other services and charges -$ -$ -$ -$ Net change in fund balances - - - - Fund balances - Beginning 26,716 26,716 26,716 - Fund balances - Ending 26,716$ 26,716$ 26,716$ -$ Budget/GAAP Reconciliation Net change in fund balance, budget basis -$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis -$ 162 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Regional Police Academy December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 20,000$ 23,525$ 23,525$ -$ Investment income 500 2,580 3,069 489 Other 2,000 175 175 - Total revenues 22,500 26,280 26,769 489 Expenditures: Current: Public safety: Supplies 1,500 1,500 - 1,500 Other services and charges 21,000 21,000 6,737 14,263 Total expenditures 22,500 22,500 6,737 15,763 Net change in fund balances - 3,780 20,032 16,252 Fund balances - Beginning 98,680 98,680 98,680 - Fund balances - Ending 98,680$ 102,460$ 118,712$ 16,252$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 20,032$ To adjust revenues for accruals 890 To adjust expenditures for accruals 140 To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 21,062$ 163 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - COPS MORE Grant December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 53,750$ 224,489$ 56,495$ (167,994)$ Fines and forfeitures 10,000 10,000 9,219 (781) Investment income 500 4,030 4,724 694 Other 27,750 29,800 7,047 (22,753) Total revenues 92,000 268,319 77,485 (190,834) Expenditures: Current: Public safety: Supplies 47,000 168,554 148,623 19,931 Other services and charges 45,000 58,350 44,922 13,428 Capital outlay - 80,000 59,313 20,687 Total expenditures 92,000 306,904 252,858 54,046 Net change in fund balances - (38,585) (175,373) (136,788) Fund balances - Beginning 202,528 202,528 202,528 - Fund balances - Ending 202,528$ 163,943$ 27,155$ (136,788)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (175,373)$ To adjust revenues for accruals 42,008 To adjust expenditures for accruals (121,810) To adjust expenditures for encumbrances 142,630 Net change in fund balance, GAAP basis (112,545)$ 164 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Federal Drug Enforcement December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 50,000$ 50,000$ -$ (50,000)$ Investment income 1,000 3,130 4,055 925 Total revenues 51,000 53,130 4,055 (49,075) Expenditures: Current: Public safety: Supplies 6,000 6,000 - 6,000 Capital outlay 45,000 45,000 43,499 1,501 Total expenditures 51,000 51,000 43,499 7,501 Net change in fund balances - 2,130 (39,444) (41,574) Fund balances - Beginning 153,920 153,920 153,920 - Fund balances - Ending 153,920$ 156,050$ 114,476$ (41,574)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (39,444)$ To adjust revenues for accruals (1,040) To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis (40,484)$ 165 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Urban Development Action Grant December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 1,000$ 625$ 844$ 219$ Other 45,240 45,240 84,104 38,864 Total revenues 46,240 45,865 84,948 39,083 Expenditures: Current: Economic development: Other services and charges 60,000 60,000 60,000 - Net change in fund balances (13,760) (14,135) 24,948 39,083 Fund balances - Beginning 28,990 28,990 28,990 - Fund balances - Ending 15,230$ 14,855$ 53,938$ 39,083$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 24,948$ To adjust revenues for accruals (84,032) To adjust expenditures for accruals 60,000 To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 916$ 166 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Leaf Collection and Removal December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 447,139$ 447,139$ 447,563$ 424$ Investment income 7,350 13,750 15,370 1,620 Other - - 103 103 Total revenues 454,489 460,889 463,036 2,147 Expenditures: Current: Highways and streets: Personnel services 78,219 78,219 66,057 12,162 Other services and charges 46,743 46,743 43,662 3,081 Total expenditures 124,962 124,962 109,719 15,243 Other Financing Sources (Uses): Transfers out (550,000) (550,000) (550,000) - Net change in fund balances (220,473) (214,073) (196,683) 17,390 Fund balances - Beginning 594,755 594,755 594,755 - Fund balances - Ending 374,282$ 380,682$ 398,072$ 17,390$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (196,683)$ To adjust revenues for accruals 536 To adjust expenditures for accruals 1,172 To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis (194,975)$ 167 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Police K-9 Unit December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 20$ 60$ 65$ 5$ Other 2,000 2,000 - (2,000) Total revenues 2,020 2,060 65 (1,995) Expenditures: Current: Public safety: Other services and charges 2,020 2,020 - 2,020 Net change in fund balances - 40 65 25 Fund balances - Beginning 2,335 2,335 2,335 - Fund balances - Ending 2,335$ 2,375$ 2,400$ 25$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 65$ To adjust revenues for accruals 1 To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 66$ 168 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - City Cemetery December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 250$ 680$ 923$ 243$ Net change in fund balances 250 680 923 243 Fund balances - Beginning 28,987 28,987 28,987 - Fund balances - Ending 29,237$ 29,667$ 29,910$ 243$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 923$ To adjust revenues for accruals (90) To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 833$ 169 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Bowman Cemetery December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income -$ 10,720$ 14,521$ 3,801$ Net change in fund balances - 10,720 14,521 3,801 Fund balances - Beginning 455,998 455,998 455,998 - Fund balances - Ending 455,998$ 466,718$ 470,519$ 3,801$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 14,521$ To adjust revenues for accruals (1,411) To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 13,110$ 170 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Industrial Revolving Fund December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Other 210,000$ 232,680$ 293,958$ 61,278$ Total revenues 210,000 232,680 293,958 61,278 Expenditures: Current: Economic development: Other services and charges 157,000 157,000 119,441 37,559 Net change in fund balances 53,000 75,680 174,517 98,837 Fund balances - Beginning 1,632,491 1,632,491 1,632,491 - Fund balances - Ending 1,685,491$ 1,708,171$ 1,807,008$ 98,837$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 174,517$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 174,517$ 171 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2017 Park Bond Debt Service December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 1,077,000$ 1,077,000$ 1,166,972$ 89,972$ Intergovernmental 41,404 74,209 74,210 1 Investment income 1,000 565 1,413 848 Total revenues 1,119,404 1,151,774 1,242,595 90,821 Expenditures: Current: Debt service: Other services and charges 1,181,143 1,181,143 1,181,140 3 Net change in fund balances (61,739) (29,369) 61,455 90,824 Fund balances - Beginning 147,684 147,684 147,684 - Fund balances - Ending 85,945$ 118,315$ 209,139$ 90,824$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 61,455$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 61,455$ 172 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - College Football Hall of Fame Debt Service December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income -$ 27$ 27$ -$ Other Financing Sources (Uses): Transfers out - (97,077) (97,077) - Net change in fund balances - (97,050) (97,050) - Fund balances - Beginning 97,077 97,077 97,077 - Fund balances - Ending 97,077$ 27$ 27$ -$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (97,050)$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis (97,050)$ 173 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - Redevelopment Bond - Airport Taxable December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 14,000$ 26,000$ 28,483$ 2,483$ Other Financing Sources (Uses): Transfers out (14,000) (26,000) (23,962) 2,038 Net change in fund balances - - 4,521 4,521 Fund balances - Beginning 1,040,462 1,040,462 1,040,462 - Fund balances - Ending 1,040,462$ 1,040,462$ 1,044,983$ 4,521$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 4,521$ To adjust revenues for accruals 1,113 To adjust expenditures for accruals 659 To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 6,293$ 174 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - Coveleski Bond Debt Service Reserve December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 2,010$ 3,086$ 1,076$ (2,010)$ Other Financing Sources (Uses): Transfers out (525,000) (527,518) (527,517) 1 Net change in fund balances (522,990) (524,432) (526,441) (2,009) Fund balances - Beginning 526,587 526,587 526,587 - Fund balances - Ending 3,597$ 2,155$ 146$ (2,009)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (526,441)$ To adjust revenues for accruals (334) To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis (526,775)$ 175 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - Redevelopment Bond - Palais Royale December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 20,000$ 40,000$ 47,620$ 7,620$ Other Financing Sources (Uses): Transfers out (20,000) (40,000) (40,061) (61) Net change in fund balances - - 7,559 7,559 Fund balances - Beginning 1,739,495 1,739,495 1,739,495 - Fund balances - Ending 1,739,495$ 1,739,495$ 1,747,054$ 7,559$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 7,559$ To adjust revenues for accruals 1,863 To adjust expenditures for accruals 1,102 To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 10,524$ 176 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2018 Fire Station #9 Bond Debt Service December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Expenditures: Current: Debt service: Other services and charges -$ 321,707$ 321,706$ 1$ Other Financing Sources (Uses): Transfers in - 321,707 321,706 (1) Net change in fund balances - - - - Fund balances - Beginning - - - - Fund balances - Ending -$ -$ -$ -$ Budget/GAAP Reconciliation Net change in fund balance, budget basis -$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis -$ 177 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2018 TIF Park Bond Debt Service Reserve December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 1,000$ 23,370$ 27,510$ 4,140$ Net change in fund balances 1,000 23,370 27,510 4,140 Fund balances - Beginning 993,495 993,495 993,495 - Fund balances - Ending 994,495$ 1,016,865$ 1,021,005$ 4,140$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 27,510$ To adjust revenues for accruals 1,101 To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 28,611$ 178 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - Century Center Energy Savings December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 221,437$ 235,000$ 235,000$ -$ Investment income 40 3,650 4,232 582 Other 103,235 104,510 104,511 1 Total revenues 324,712 343,160 343,743 583 Expenditures: Current: Debt service: Other services and charges 416,424 416,424 415,423 1,001 Other Financing Sources (Uses): Transfers in 90,752 90,752 90,752 - Net change in fund balances (960) 17,488 19,072 1,584 Fund balances - Beginning 170,609 170,609 170,609 - Fund balances - Ending 169,649$ 188,097$ 189,681$ 1,584$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 19,072$ To adjust revenues for accruals 159 To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 19,231$ 179 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - Redevelopment Authority Debt Service December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 2,700$ 6,383$ 6,383$ -$ Expenditures: Current: Debt service: Other services and charges 2,861,269 2,861,269 2,861,669 (400) Other Financing Sources (Uses): Transfers in 2,869,500 2,869,500 2,867,378 (2,122) Net change in fund balances 10,931 14,614 12,092 (2,522) Fund balances - Beginning 210,492 210,492 210,492 - Fund balances - Ending 221,423$ 225,106$ 222,584$ (2,522)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 12,092$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 12,092$ 180 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - South Bend Building Corporation December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 1,000$ 14,600$ 15,243$ 643$ Expenditures: Current: Debt service: Other services and charges 2,634,750 2,634,750 2,632,744 2,006 Other Financing Sources (Uses): Transfers in 2,635,750 2,641,500 2,641,500 - Net change in fund balances 2,000 21,350 23,999 2,649 Fund balances - Beginning 791,026 791,026 791,026 - Fund balances - Ending 793,026$ 812,376$ 815,025$ 2,649$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 23,999$ To adjust revenues for accruals (487,631) To adjust expenditures for accruals 482,955 To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 19,323$ 181 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2015 Smart Streets Bond Debt Service December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 2,500$ 4,630$ 4,630$ -$ Expenditures: Current: Debt service: Other services and charges 1,711,369 1,712,019 1,712,019 - Other Financing Sources (Uses): Transfers in 1,715,500 1,715,500 1,715,500 - Net change in fund balances 6,631 8,111 8,111 - Fund balances - Beginning 1,726,790 1,726,790 1,726,790 - Fund balances - Ending 1,733,421$ 1,734,901$ 1,734,901$ -$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 8,111$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 8,111$ 182 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2015 Park Bond Debt Service December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 1,000$ 3,527$ 3,527$ -$ Expenditures: Current: Debt service: Other services and charges 383,732 383,732 382,731 1,001 Other Financing Sources (Uses): Transfers in 379,431 379,431 409,270 29,839 Net change in fund balances (3,301) (774) 30,066 30,840 Fund balances - Beginning 560,431 560,431 560,431 - Fund balances - Ending 557,130$ 559,657$ 590,497$ 30,840$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 30,066$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 30,066$ 183 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2017 Eddy St. Commons Bond Debt Service December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 3,500$ 8,792$ 8,792$ -$ Expenditures: Current: Debt service: Other services and charges 1,299,125 1,299,125 1,298,125 1,000 Other Financing Sources (Uses): Transfers in 1,298,125 1,298,125 1,298,125 - Net change in fund balances 2,500 7,792 8,792 1,000 Fund balances - Beginning 3,452,908 3,452,908 3,452,908 - Fund balances - Ending 3,455,408$ 3,460,700$ 3,461,700$ 1,000$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 8,792$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 8,792$ 184 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2019 South Shore Double Tracking Bond December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income -$ -$ 121$ 121$ Total revenues - - 121 121 Expenditures: Current: Economic development: Other services and charges - 201,794 201,794 - Capital outlay - 9,125,000 9,125,000 - Total expenditures - 9,326,794 9,326,794 - Other Financing Sources (Uses): Issuance of debt - - 9,356,612 9,356,612 Net change in fund balances - (9,326,794) 29,939 9,356,733 Fund balances - Beginning - - - - Fund balances - Ending -$ (9,326,794)$ 29,939$ 9,356,733$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 29,939$ To adjust revenues for accruals (120) To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 29,819$ 185 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Professional Sports Development December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 2,000$ 1,201$ 1,201$ -$ Other 18,000 18,000 3,786 (14,214) Total revenues 20,000 19,201 4,987 (14,214) Expenditures: Current: Debt service: Other services and charges 354,770 354,770 353,970 800 Other Financing Sources (Uses): Transfers in 525,000 527,518 527,517 (1) Transfers out - (178,534) (178,534) - Net change in fund balances 190,230 13,415 - (13,415) Fund balances - Beginning - - - - Fund balances - Ending 190,230$ 13,415$ -$ (13,415)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis -$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis -$ 186 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Coveleski Stadium Capital December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 43,500$ 43,500$ 23,125$ (20,375)$ Investment income 750 715 823 108 Total revenues 44,250 44,215 23,948 (20,267) Expenditures: Current: Culture and recreation: Other services and charges 40,000 71,667 38,513 33,154 Capital outlay - 32,955 32,955 - Total expenditures 40,000 104,622 71,468 33,154 Net change in fund balances 4,250 (60,407) (47,520) 12,887 Fund balances - Beginning 73,435 73,435 73,435 - Fund balances - Ending 77,685$ 13,028$ 25,915$ 12,887$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (47,520)$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis (47,520)$ 187 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Cumulative Capital Development December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 436,330$ 436,330$ 455,002$ 18,672$ Intergovernmental 34,014 40,352 40,353 1 Investment income 3,100 8,940 9,852 912 Total revenues 473,444 485,622 505,207 19,585 Expenditures: Current: General government: Other services and charges 532,121 539,277 539,276 1 Capital outlay 286,000 286,000 285,500 500 Total expenditures 818,121 825,277 824,776 501 Net change in fund balances (344,677) (339,655) (319,569) 20,086 Fund balances - Beginning 529,328 529,328 529,328 - Fund balances - Ending 184,651$ 189,673$ 209,759$ 20,086$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (319,569)$ To adjust revenues for accruals 457,285 To adjust expenditures for accruals (422,769) To adjust expenditures for encumbrances 14,389 Net change in fund balance, GAAP basis (270,664)$ 188 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Cumulative Capital Improvement December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 207,296$ 207,296$ 231,026$ 23,730$ Investment income 3,000 11,645 14,444 2,799 Other 25,000 25,000 25,000 - Total revenues 235,296 243,941 270,470 26,529 Expenditures: Current: General government: Capital outlay 28,000 28,000 28,000 - Net change in fund balances 207,296 215,941 242,470 26,529 Fund balances - Beginning 447,850 447,850 447,850 - Fund balances - Ending 655,146$ 663,791$ 690,320$ 26,529$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 242,470$ To adjust revenues for accruals 727 To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 243,197$ 189 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Major Moves December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 27,500$ 60,740$ 69,658$ 8,918$ Other 493,178 584,181 584,181 - Total revenues 520,678 644,921 653,839 8,918 Expenditures: Current: Highways and streets: Other services and charges - 1,022,187 952,291 69,896 Capital outlay 1,200,000 1,619,049 1,446,028 173,021 Total expenditures 1,200,000 2,641,236 2,398,319 242,917 Net change in fund balances (679,322) (1,996,315) (1,744,480) 251,835 Fund balances - Beginning 2,772,697 2,772,697 2,772,697 - Fund balances - Ending 2,093,375$ 776,382$ 1,028,217$ 251,835$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (1,744,480)$ To adjust revenues for accruals (390,543) To adjust expenditures for accruals 25,242 To adjust expenditures for encumbrances 1,172,285 Net change in fund balance, GAAP basis (937,496)$ 190 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Morris Performing Arts Center Capital December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 137,500$ 137,500$ 82,464$ (55,036)$ Investment income 6,000 9,240 10,956 1,716 Other - - 575 575 Total revenues 143,500 146,740 93,995 (52,745) Expenditures: Current: Culture and recreation: Supplies 15,000 26,127 14,469 11,658 Other services and charges 122,000 119,335 113,194 6,141 Capital outlay 80,000 80,000 14,149 65,851 Total expenditures 217,000 225,462 141,812 83,650 Net change in fund balances (73,500) (78,722) (47,817) 30,905 Fund balances - Beginning 379,010 379,010 379,010 - Fund balances - Ending 305,510$ 300,288$ 331,193$ 30,905$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (47,817)$ To adjust revenues for accruals 473 To adjust expenditures for accruals (89,344) To adjust expenditures for encumbrances 91,759 Net change in fund balance, GAAP basis (44,929)$ 191 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Redevelopment Retail Area (Leighton Plaza) December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income -$ 206$ 206$ -$ Other - 87 - (87) Total revenues - 293 206 (87) Expenditures: Current: Economic development: Other services and charges - 772 772 - Other Financing Sources (Uses): Transfers out - (7,820) (7,820) - Net change in fund balances - (8,299) (8,386) (87) Fund balances - Beginning 8,388 8,388 8,388 - Fund balances - Ending 8,388$ 89$ 2$ (87)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (8,386)$ To adjust revenues for accruals (59) To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis (8,445)$ 192 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Redevelopment General December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - County redevelopment income tax 70,356$ 84,095$ 84,095$ -$ Investment income 1,000 18,820 24,815 5,995 Other 1,000,000 1,177,112 1,177,112 - Total revenues 1,071,356 1,280,027 1,286,022 5,995 Expenditures: Current: Economic development: Other services and charges 1,074,000 1,074,000 811,836 262,164 Net change in fund balances (2,644) 206,027 474,186 268,159 Fund balances - Beginning 615,795 615,795 615,795 - Fund balances - Ending 613,151$ 821,822$ 1,089,981$ 268,159$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 474,186$ To adjust revenues for accruals 2,138 To adjust expenditures for accruals (58,967) To adjust expenditures for encumbrances 389,636 Net change in fund balance, GAAP basis 806,993$ 193 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - TIF - West Washington December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 314,425$ 261,830$ 261,830$ -$ Investment income 10,000 37,240 41,430 4,190 Other - 18,500 18,500 - Total revenues 324,425 317,570 321,760 4,190 Expenditures: Current: Economic development: Other services and charges - 479 - 479 Capital outlay 900,000 1,694,651 1,431,302 263,349 Total expenditures 900,000 1,695,130 1,431,302 263,828 Net change in fund balances (575,575) (1,377,560) (1,109,542) 268,018 Fund balances - Beginning 1,801,466 1,801,466 1,801,466 - Fund balances - Ending 1,225,891$ 423,906$ 691,924$ 268,018$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (1,109,542)$ To adjust revenues for accruals 979 To adjust expenditures for accruals 8,424 To adjust expenditures for encumbrances 342,165 Net change in fund balance, GAAP basis (757,974)$ 194 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - TIF - River East Development December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 2,808,805$ 2,722,643$ 2,722,642$ (1)$ Investment income 57,000 216,100 249,447 33,347 Other - 7,725 7,725 - Total revenues 2,865,805 2,946,468 2,979,814 33,346 Expenditures: Current: Economic development: Other services and charges - 174,217 103,671 70,546 Capital outlay 5,100,000 12,027,765 10,181,560 1,846,205 Total expenditures 5,100,000 12,201,982 10,285,231 1,916,751 Net change in fund balances (2,234,195) (9,255,514) (7,305,417) 1,950,097 Fund balances - Beginning 10,994,678 10,994,678 10,994,678 - Fund balances - Ending 8,760,483$ 1,739,164$ 3,689,261$ 1,950,097$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (7,305,417)$ To adjust revenues for accruals 5,619 To adjust expenditures for accruals (271,235) To adjust expenditures for encumbrances 4,543,278 Net change in fund balance, GAAP basis (3,027,755)$ 195 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - TIF - Southside Development Area No. 1 December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 2,229,283$ 2,229,283$ 1,755,231$ (474,052)$ Investment income 30,000 210,560 249,564 39,004 Total revenues 2,259,283 2,439,843 2,004,795 (435,048) Expenditures: Current: Economic development: Other services and charges - 964,932 322,124 642,808 Capital outlay 4,000,000 9,387,796 1,745,842 7,641,954 Total expenditures 4,000,000 10,352,728 2,067,966 8,284,762 Net change in fund balances (1,740,717) (7,912,885) (63,171) 7,849,714 Fund balances - Beginning 9,455,102 9,455,102 9,455,102 - Fund balances - Ending 7,714,385$ 1,542,217$ 9,391,931$ 7,849,714$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (63,171)$ To adjust revenues for accruals (124,464) To adjust expenditures for accruals 362,950 To adjust expenditures for encumbrances 234,951 Net change in fund balance, GAAP basis 410,266$ 196 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - TIF - Douglas Road December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income -$ 4,664$ 5,428$ 764$ Expenditures: Current: Economic development: Other services and charges - 208,000 108,800 99,200 Net change in fund balances - (203,336) (103,372) 99,964 Fund balances - Beginning 204,331 204,331 204,331 - Fund balances - Ending 204,331$ 995$ 100,959$ 99,964$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (103,372)$ To adjust revenues for accruals 195 To adjust expenditures for accruals (14,050) To adjust expenditures for encumbrances 87,225 Net change in fund balance, GAAP basis (30,002)$ 197 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - TIF - River East Residential December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 4,260,716$ 4,933,557$ 4,933,558$ 1$ Investment income 14,000 39,283 54,332 15,049 Total revenues 4,274,716 4,972,840 4,987,890 15,050 Expenditures: Current: Economic development: Other services and charges 503,875 503,875 494,828 9,047 Other Financing Sources (Uses): Transfers out (3,771,125) (3,771,125) (3,769,003) 2,122 Net change in fund balances (284) 697,840 724,059 26,219 Fund balances - Beginning 2,990,020 2,990,020 2,990,020 - Fund balances - Ending 2,989,736$ 3,687,860$ 3,714,079$ 26,219$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 724,059$ To adjust revenues for accruals 2,650 To adjust expenditures for accruals 392,522 To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 1,119,231$ 198 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Certified Technology Park December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 8,487$ 11,102$ 11,146$ 44$ Expenditures: Current: Economic development: Capital outlay 625,000 625,000 624,945 55 Net change in fund balances (616,513) (613,898) (613,799) 99 Fund balances - Beginning 624,204 624,204 624,204 - Fund balances - Ending 7,691$ 10,306$ 10,405$ 99$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (613,799)$ To adjust revenues for accruals (377) To adjust expenditures for accruals - To adjust expenditures for encumbrances 752 Net change in fund balance, GAAP basis (613,424)$ 199 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Project Funds - Palais Royale Historical Preservation December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 18,500$ 18,500$ 14,425$ (4,075)$ Investment income 600 2,523 2,961 438 Total revenues 19,100 21,023 17,386 (3,637) Expenditures: Current: Culture and recreation: Other services and charges 75,000 111,967 72,939 39,028 Net change in fund balances (55,900) (90,944) (55,553) 35,391 Fund balances - Beginning 129,405 129,405 129,405 - Fund balances - Ending 73,505$ 38,461$ 73,852$ 35,391$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (55,553)$ To adjust revenues for accruals (1,766) To adjust expenditures for accruals (2,623) To adjust expenditures for encumbrances 34,160 Net change in fund balance, GAAP basis (25,782)$ 200 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Airport Urban Enterprise Zone December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 6,000$ 9,260$ 10,900$ 1,640$ Expenditures: Current: Economic development: Other services and charges 50,000 50,000 - 50,000 Net change in fund balances (44,000) (40,740) 10,900 51,640 Fund balances - Beginning 393,651 393,651 393,651 - Fund balances - Ending 349,651$ 352,911$ 404,551$ 51,640$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 10,900$ To adjust revenues for accruals 437 To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis 11,337$ 201 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2018 Fire Station #9 Bond Capital December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income -$ 40,380$ 42,008$ 1,628$ Expenditures: Current: Public safety: Capital outlay - 3,232,757 3,232,757 - Net change in fund balances - (3,192,377) (3,190,749) 1,628 Fund balances - Beginning 3,502,969 3,502,969 3,502,969 - Fund balances - Ending 3,502,969$ 310,592$ 312,220$ 1,628$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (3,190,749)$ To adjust revenues for accruals (1,538) To adjust expenditures for accruals 348,012 To adjust expenditures for encumbrances 89,311 Net change in fund balance, GAAP basis (2,754,964)$ 202 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2018 TIF Park Bond Capital December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 50,000$ 186,070$ 202,657$ 16,587$ Expenditures: Current: Culture and recreation: Other services and charges - 999,501 999,501 - Capital outlay 2,150,000 9,426,644 9,426,644 - Total expenditures 2,150,000 10,426,145 10,426,145 - Net change in fund balances (2,100,000) (10,240,075) (10,223,488) 16,587 Fund balances - Beginning 10,429,340 10,429,340 10,429,340 - Fund balances - Ending 8,329,340$ 189,265$ 205,852$ 16,587$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (10,223,488)$ To adjust revenues for accruals 559 To adjust expenditures for accruals (951,237) To adjust expenditures for encumbrances 3,889,707 Net change in fund balance, GAAP basis (7,284,459)$ 203 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2018 Zoo Bond Capital December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income -$ 22,490$ 22,489$ (1)$ Expenditures: Current: Culture and recreation: Capital outlay - 3,300,000 3,300,000 - Net change in fund balances - (3,277,510) (3,277,511) (1) Fund balances - Beginning - - - - Fund balances - Ending -$ (3,277,510)$ (3,277,511)$ (1)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (3,277,511)$ To adjust revenues for accruals (1) To adjust expenditures for accruals - To adjust expenditures for encumbrances 133,581 Net change in fund balance, GAAP basis (3,143,931)$ 204 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2017 Park Bond Capital December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 3,000$ 260,530$ 297,324$ 36,794$ Expenditures: Current: Culture and recreation: Other services and charges - 21,464 21,464 - Capital outlay 3,479,400 12,739,403 12,739,403 - Total expenditures 3,479,400 12,760,867 12,760,867 - Net change in fund balances (3,476,400) (12,500,337) (12,463,543) 36,794 Fund balances - Beginning 12,975,703 12,975,703 12,975,703 - Fund balances - Ending 9,499,303$ 475,366$ 512,160$ 36,794$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (12,463,543)$ To adjust revenues for accruals 7,052 To adjust expenditures for accruals 401,799 To adjust expenditures for encumbrances 8,569,760 Net change in fund balance, GAAP basis (3,484,932)$ 205 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Equipment Vehicle Leasing December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 3,000$ 17,000$ 16,792$ (208)$ Expenditures: Current: General government: Other services and charges - 101,999 101,364 635 Capital outlay 2,034,625 3,549,597 3,575,027 (25,430) Total expenditures 2,034,625 3,651,596 3,676,391 (24,795) Other Financing Sources (Uses): Issuance of debt 2,034,625 1,472,985 1,472,985 - Net change in fund balances 3,000 (2,161,611) (2,186,614) (25,003) Fund balances - Beginning 2,942,040 2,942,040 2,942,040 - Fund balances - Ending 2,945,040$ 780,429$ 755,426$ (25,003)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (2,186,614)$ To adjust revenues for accruals (1,310,262) To adjust expenditures for accruals 2,274,037 To adjust expenditures for encumbrances 261,062 Net change in fund balance, GAAP basis (961,777)$ 206 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Project Funds - 2015 Park Bond Capital December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income -$ 840$ 840$ -$ Expenditures: Current: Culture and recreation: Supplies - 6,082 6,082 - Other services and charges - 4,582 4,582 - Capital outlay - 460,475 458,815 1,660 Total expenditures - 471,139 469,479 1,660 Other Financing Sources (Uses): Transfers out - (3,048) (3,048) - Net change in fund balances - (473,347) (471,687) 1,660 Fund balances - Beginning 471,687 471,687 471,687 - Fund balances - Ending 471,687$ (1,660)$ -$ 1,660$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (471,687)$ To adjust revenues for accruals - To adjust expenditures for accruals 24,200 To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis (447,487)$ 207 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Project Funds - 2015 Smart Streets Bond Capital December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income -$ 124$ 124$ -$ Expenditures: Current: Economic development: Capital outlay - 70,000 68,967 1,033 Net change in fund balances - (69,876) (68,843) 1,033 Fund balances - Beginning 68,843 68,843 68,843 - Fund balances - Ending 68,843$ (1,033)$ -$ 1,033$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (68,843)$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances - Net change in fund balance, GAAP basis (68,843)$ 208 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Project Funds - 2017 Eddy St. Commons Bond Capital December 31, 2019 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 2,000$ 65$ 65$ -$ Expenditures: Current: Economic development: Capital outlay - 7,650,241 7,650,241 - Net change in fund balances 2,000 (7,650,176) (7,650,176) - Fund balances - Beginning 7,650,244 7,650,244 7,650,244 - Fund balances - Ending 7,652,244$ 68$ 68$ -$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (7,650,176)$ To adjust revenues for accruals - To adjust expenditures for accruals - To adjust expenditures for encumbrances 3,048,123 Net change in fund balance, GAAP basis (4,602,053)$ 209 City of South Bend, Indiana Other Supplemental Information Nonmajor Enterprise Funds Fund Descriptions NONMAJOR ENTERPRISE FUNDS Consolidated Building To account for the operation of the consolidated St. Joseph County/ South Bend Building Department, the South Bend Department of Code Enforcement, and the South Bend Animal Resource Center. Parking Garage To account for the operation and maintenance of the City's parking garages. Solid Waste To account for the operations of the Solid Waste department. Revenues come from charging City residents a monthly fee for pick-up and disposal of trash at area landfills and recycling centers Emergency Medical Services To account for the operations of Emergency Medical Services (EMS), as well as to fund purchases of necessary equipment for the Fire Department. Financing is provided by reimbursement paid for ambulance runs and other EMS activity. 210 City of South Bend, Indiana Combining Statement of Net Position Nonmajor Enterprise Funds December 31, 2019 Emergency Consolidated Medical Building Parking Garage Solid Waste Services Total Assets Current assets: Cash and cash equivalents 683,948$ 396,903$ 134,414$ 587,225$ 1,802,490$ Investments 1,601,464 929,349 314,730 1,374,988 4,220,531 Receivables: Accounts 17,865 74,713 379,606 1,456,469 1,928,653 Interest 6,893 4,486 1,780 14,526 27,685 Allowance for doubtful accounts - - (25,000) - (25,000) Total current assets 2,310,170 1,405,451 805,530 3,433,208 7,954,359 Noncurrent assets: Restricted assets 49,386 - 197,149 2,753,154 2,999,689 Capital assets: Assets not subject to depreciation - 1,440,114 - - 1,440,114 Assets subject to depreciation 1,824,773 4,565,988 3,729,553 4,498,900 14,619,214 Total noncurrent assets 1,874,159 6,006,102 3,926,702 7,252,054 19,059,017 Total assets 4,184,329 7,411,553 4,732,232 10,685,262 27,013,376 Liabilities Current liabilities: Accounts payable 42,678 364,361 85,451 126,841 619,331 Due to other governmental units - - - 10,824 10,824 Due to other funds 2,150 1,054 - - 3,204 Performance deposits payable 7,000 - - - 7,000 Accrued liabilities and other: Accrued payroll payable 31,460 - 57,774 - 89,234 Accrued interest payable 2,382 - 14,211 70,004 86,597 Other current payables - 76,669 - - 76,669 Compensated absences 45,519 - 52,859 - 98,378 Mortgage bonds payable - - - 240,000 240,000 Capital leases 131,978 - 1,056,629 445,903 1,634,510 Total current liabilities 263,167 442,084 1,266,924 893,572 2,865,747 Noncurrent liabilities: Mortgage bonds payable - - - 4,277,600 4,277,600 Capital leases 247,140 - 1,686,261 825,922 2,759,323 Total noncurrent liabilities 247,140 - 1,686,261 5,103,522 7,036,923 Total liabilities 510,307 442,084 2,953,185 5,997,094 9,902,670 Net position Net investment in capital assets 1,494,719 6,006,102 1,118,887 (1,057,532) 7,562,176 Restricted: Cash with fiscal agent 49,386 - 132,224 232,993 414,603 Capital outlay fund - - 64,925 1,962,214 2,027,139 Unrestricted 2,129,917 963,367 463,011 3,550,493 7,106,788 Total net position 3,674,022 6,969,469 1,779,047 4,688,168 17,110,706 211 City of South Bend, Indiana Combining Statement of Revenue, Expenses, and Changes in Net Position Nonmajor Enterprise Funds December 31, 2019 Emergency Consolidated Medical Building Parking Garage Solid Waste Services Total Operating revenue Licenses and permits 2,029,442$ -$ -$ -$ 2,029,442$ Parking fees - 988,355 - - 988,355 Solid waste fees - - 5,463,922 - 5,463,922 Charges for sales and services - - - 5,711,959 5,711,959 Other 13,830 16,046 1,389 8,475 39,740 Total operating revenue 2,043,272 1,004,401 5,465,311 5,720,434 14,233,418 Operating expenses Other operation and maintenance 3,295,193 872,925 3,726,739 7,181,408 15,076,265 General and administration 791,337 40,274 853,714 - 1,685,325 Depreciation 209,188 261,297 821,865 484,641 1,776,991 Total operating expenses 4,295,718 1,174,496 5,402,318 7,666,049 18,538,581 Operating income (loss)(2,252,446) (170,095) 62,993 (1,945,615) (4,305,163) Nonoperating revenue (expenses) Investment income 56,390 33,703 18,966 150,084 259,143 Interest expense (8,986) - (64,925) (198,938) (272,849) (Loss) gain on sale of assets (24,571) (4,145) (14,177) 10,607 (32,286) Total nonoperating revenues (expenses) 22,833 29,558 (60,136) (38,247) (45,992) Income (loss) - before contributions and transfers (2,229,613) (140,537) 2,857 (1,983,862) (4,351,155) Capital contributions - Other capital contributions - 843,503 - - 843,503 Transfers in 2,528,909 - - 1,534,631 4,063,540 Transfers out (158,943) - - (321,706) (480,649) Changes in net position 140,353 702,966 2,857 (770,937) 75,239 Net position - Beginning of (restated) 3,533,669 6,266,503 1,776,190 5,459,105 17,035,467 Net position - End of year 3,674,022$ 6,969,469$ 1,779,047$ 4,688,168$ 17,110,706$ 212 City of South Bend, Indiana Nonmajor Enterprise Funds Combining Statement of Cash Flows December 31, 2019 Emergency Consolidated Parking Medical Building Garage Solid Waste Services Total Cash flows from operating activities Receipts from customers and users 2,031,257$ 1,006,295$ 5,479,717$ 5,695,114$ 14,212,383$ Payments to suppliers (550,749) (694,297) (2,065,469) (2,002,340) (5,312,855) Payments to employees (2,722,705) - (1,451,934) (5,170,378) (9,345,017) Internal activity - payments to other funds (861,429) (36,517) (998,406) (262,719) (2,159,071) Internal activity - payments from other funds - - - - - Net cash provided by (used in) operating activities (2,103,626) 275,481 963,908 (1,740,323) (2,604,560) Cash flows from noncapital financing activities Transfers from other funds 2,528,909 - - 1,534,631 4,063,540 Transfers to other funds (158,943) - - (321,706) (480,649) Net cash (used in) provided by noncapital financing activities 2,369,966 - - 1,212,925 3,582,891 Cash flows from capital and related financing activities Proceeds from capital debt issued for future capital purchase 80,000 - 718,498 - 798,498 Proceeds from sales of capital assets 2,828 - - 19,953 22,781 Purchase of capital assets (133,744) (308,097) (719,498) (729,160) (1,890,499) Principal paid on capital debt (126,441) - (970,852) (669,910) (1,767,203) Interest paid on capital debt (9,285) - (67,079) (207,391) (283,755) Net cash (used in) provided by capital and related financing activities (186,642) (308,097) (1,038,931) (1,586,508) (3,120,178) Cash flows from investing activities Interest received on investments 55,391 32,916 18,763 153,381 260,451 Proceeds from sale and maturities of investment securities (208,815) (46,610) 19,290 890,830 654,695 Net cash provided by (used in) investing activities (153,424) (13,694) 38,053 1,044,211 915,146 Net (decrease) increase in cash and cash equivalents (73,726) (46,310) (36,970) (1,069,695) (1,226,701) Cash and cash equivalents - beginning of year 807,060 443,213 323,038 2,644,114 4,217,425 Cash and cash equivalents - end of year 733,334$ 396,903$ 286,068$ 1,574,419$ 2,990,724$ 213 City of South Bend, Indiana Nonmajor Enterprise Funds Combining Statement of Cash Flows (Continued) December 31, 2019 Emergency Consolidated Parking Medical Building Garage Solid Waste Services Total Classification of cash and cash equivalents Cash and investments 2,285,412$ 1,326,252$ 449,144$ 1,962,213$ 6,023,021$ Restricted cash and investments 49,386 - 197,149 2,753,154 2,999,689 Less amounts classified as investments (1,601,464) (929,349) (360,225) (3,140,948) (6,031,986) Total cash and cash equivalents 733,334$ 396,903$ 286,068$ 1,574,419$ 2,990,724$ Reconciliation of operating income (loss) to net cash from operating activities Operating income (loss) (2,252,446)$ (170,095)$ 62,993$ (1,945,615)$ (4,305,163)$ Adjustments to reconcile operating income (loss) to net cash from operating activities: Depreciation and amortization 209,188 261,297 821,865 484,641 1,776,991 Changes in assets and liabilities: Receivables (12,015) (30,628) 14,406 (25,320) (53,557) Prepaid expenses and other assets - - - 8,859 8,859 Accounts payable 31,983 182,014 19,346 44,808 278,151 Due to other governments - - - 2,236 2,236 Performance deposit (1,250) - - - (1,250) Due to other funds 1,444 371 - (1,563) 252 Accrued payroll payable (22,897) - 25,144 (109,314) (107,067) Compensated absences payable (57,633) - 20,154 (199,055) (236,534) Other current payables - 32,522 - - 32,522 Estimate of unfiled claims - - - - - Net cash provided by (used in) operating activities (2,103,626)$ 275,481$ 963,908$ (1,740,323)$ (2,604,560)$ Noncash investing, capital, and financing activities Capital assets acquired through lease -$ -$ -$ -$ -$ Capital assets disposed (at cost) - (13,815) (159,080) (436,803) (609,698) Capital asset contribution - 843,503 - - 843,503 Work in progress completed transferred to capital assets - - - - - Accumulated depreciation on disposals of capital assets - 9,671 144,902 427,457 582,030 Accumulated depreciation on transfers of capital assets - - - - - 214 City of South Bend, Indiana Other Supplemental Information Internal Service Funds Fund Descriptions INTERNAL SERVICE FUNDS Liability Insurance Premium Reserve To account 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 employee contributions for a health plan, and for the payment of healthcare claims for members of the City’s plan. Central Services 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/ Information Technology/ 311 Call Center To account for expenses associated with the 311 Call Center and Department of Innovation & Technology. The Call Center is a customer service support center where residents and business can receive personal assistance with City-related questions and non-emergency services. The IT Department provides technical services to the various departments within the City. Funding is provided by the departments which benefit from the 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. 215 City of South Bend, IndianaCombining Statement of Net PositionInternal Service FundsDecember 31, 2019LiabilityInnovation &Insurance Self-FundedTechnology UnemploymentPremium Employee Central Police Take 311 Call Compensation ParentalReserveBenefitsServicesHome VehicleCenterInsuranceLeaveTotalAssetsCurrent assets:Cash and cash equivalents 1,484,790$ 2,801,583$ 442,041$ 217,026$ 930,223$ 54,141$ 9,745$ 5,939,549$ Investments 3,476,637 6,475,736 1,035,039 508,167 2,178,119 126,771 22,818 13,823,287 Receivables:Accounts 1,405,210 9,147 109,228 - 5,796 - - 1,529,381 Interest 17,033 31,929 4,200 2,495 9,794 617 106 66,174 Due from other funds - - - - 73,046 - - 73,046 Inventory - - 910,211 - - - - 910,211 Prepaid expenses 286,510 - 750 - 615,555 - - 902,815 Total current assets6,670,180 9,318,395 2,501,469 727,688 3,812,533 181,529 32,669 23,244,463 Noncurrent assets:Restricted assets - - 8,161 - 56,517 - - 64,678 Capital assets:Assets subject to depreciation - - 1,191,271 - - - - 1,191,271 Total noncurrent assets- - 1,199,432 - 56,517 - - 1,255,949 Total assets 6,670,180 9,318,395 3,700,901 727,688 3,869,050 181,529 32,669 24,500,412 LiabilitiesCurrent liabilities:Accounts payable 131,436 195,874 756,658 682 163,154 8,809 - 1,256,613 Due to other funds - - 1,390 - - - - 1,390 Accrued liabilities and other:Accrued payroll payable 11,517 - 86,726 - 74,945 - - 173,188 Accrued interest payable - - 201 - 9,539 - - 9,740 Compensated absences 11,679 - 111,439 - 128,911 - - 252,029 Claims payable 1,746,773 1,024,845 - - - - - 2,771,618 Capital leases - - 22,487 - 523,266 - - 545,753 Total current liabilities1,901,405 1,220,719 978,901 682 899,815 8,809 - 5,010,331 Noncurrent liabilities:Capital leases - - 31,711 - 1,155,719 - - 1,187,430 Total noncurrent liabilities- - 31,711 - 1,155,719 - - 1,187,430 Total liabilities1,901,405 1,220,719 1,010,612 682 2,055,534 8,809 - 6,197,761 Net positionNet investment in capital assets - - 1,145,234 - (1,622,468) - - (477,234) Unrestricted 4,768,775 8,097,676 1,545,055 727,006 3,435,984 172,720 32,669 18,779,885 Total net position4,768,775$ 8,097,676$ 2,690,289$ 727,006$ 1,813,516$ 172,720$ 32,669$ 18,302,651$ 216 City of South Bend, IndianaCombining Statement of Revenue, Expenses, and Changes in Net PositionInternal Service FundsDecember 31, 2019LiabilityInnovation &Insurance Self-FundedTechnology UnemploymentPremium Employee Central Police Take 311 Call Compensation Parental ReserveBenefitsServicesHome VehicleCenterInsuranceLeaveTotalOperating revenueEmployee/employer contributions 3,931,197$ 13,337,170$ -$ 5,333$ 7,991,331$ -$ 166,529$ 25,431,560$ Charges for sales and services - - 13,321,421 - 165,631 - - 13,487,052 Other 2,394,615 397,524 18,428 - 58,657 - - 2,869,224 Total operating revenue 6,325,812 13,734,694 13,339,849 5,333 8,215,619 - 166,529 41,787,836 Operating expensesOther operation and maintenance 333,870 1,638,980 12,633,635 50,682 8,121,106 - 186,085 22,964,358 General and administration 523,453 - 393,650 - - - - 917,103 Insurance claims and premiums 2,488,631 15,404,120 - - - 39,365 - 17,932,116 Depreciation - - 123,456 - 1,099 - - 124,555 Total operating expenses 3,345,954 17,043,100 13,150,741 50,682 8,122,205 39,365 186,085 41,938,132 Operating income (loss)2,979,858 (3,308,406) 189,108 (45,349) 93,414 (39,365) (19,556) (150,296) Nonoperating revenue (expenses)Investment income 123,859 297,073 26,744 21,385 74,174 5,388 956 549,579 Interest expense - - (1,518) - (58,255) - - (59,773) (Loss) gain on sale of assets - - 2,332 - - - - 2,332 Total nonoperating revenues (expenses) 123,859 297,073 27,558 21,385 15,919 5,388 956 492,138 Income (loss) - before contributions and transfers 3,103,717 (3,011,333) 216,666 (23,964) 109,333 (33,977) (18,600) 341,842 Transfers out - - - - (600,000) - - (600,000) Changes in net position 3,103,717 (3,011,333) 216,666 (23,964) (490,667) (33,977) (18,600) (258,158) Net position - Beginning of year 1,665,058 11,109,009 2,473,623 750,970 2,304,183 206,697 51,269 18,560,809 Net position - End of year 4,768,775$ 8,097,676$ 2,690,289$ 727,006$ 1,813,516$ 172,720$ 32,669$ 18,302,651$ 217 City of South Bend, Indiana Internal Service Funds Combining Statement of Cash Flows December 31, 2019 Liability Innovation/ Insurance Self-Funded Technology/ Unemployment Premium Employee Central Police Take 311 Call Compensation Parental Reserve Benefits Services Home Vehicle Center Insurance Leave Total Cash flows from operating activities Receipts from customers and users 2,394,615$ 4,538,545$ 13,269,093$ 5,333$ -$ -$ -$ 20,207,586$ Receipts from interfund services and reimbursements 2,539,537 9,203,125 22,012 - 8,150,714 - 166,529 20,081,917 Payments to suppliers (3,428,696) (16,760,359) (9,797,020) - (4,967,058) (32,956) - (34,986,089) Payments to employees (213,395) - (2,654,429) - (2,258,622) - (186,085) (5,312,531) Internal activity - payments to other funds (144,621) - (544,534) (50,000) (4,765) - - (743,920) Net cash provided by (used in) operating activities 1,147,440 (3,018,689) 295,122 (44,667) 920,269 (32,956) (19,556) (753,037) Cash flows from noncapital financing activities Transfers to other funds - - - - (600,000) - - (600,000) Net cash (used in) provided by noncapital financing activities - - - - (600,000) - - (600,000) Cash flows from capital and related financing activities Proceeds from capital debt issued for future capital purchase - - 40,000 - - - - 40,000 Proceeds from sales of capital assets - - 4,278 - - - - 4,278 Purchase of capital assets - - (31,846) - - - - (31,846) Principal paid on capital debt - - (18,088) - (390,612) - - (408,700) Interest paid on capital debt - - (1,434) - (52,293) - - (53,727) Net cash (used in) provided by capital and related financing activities - - (7,090) - (442,905) - - (449,995) Cash flows from investing activities Interest received on investments 117,209 298,881 25,588 20,984 72,178 5,354 993 541,187 Proceeds from sale and maturities of investment securities (1,015,545) 1,487,781 (255,044) (9,610) (341,811) 12,045 11,219 (110,965) Net cash provided by (used in) investing activities (898,336) 1,786,662 (229,456) 11,374 (269,633) 17,399 12,212 430,222 Net (decrease) increase in cash and cash equivalents 249,104 (1,232,027) 58,576 (33,293) (392,269) (15,557) (7,344) (1,372,810) Cash and cash equivalents - beginning of year 1,235,686 4,033,610 391,626 250,319 1,379,009 69,698 17,089 7,377,037 Cash and cash equivalents - end of year 1,484,790$ 2,801,583$ 450,202$ 217,026$ 986,740$ 54,141$ 9,745$ 6,004,227$ Classification of cash and cash equivalents Cash and investments 4,961,427$ 9,277,319$ 1,477,080$ 725,193$ 3,108,342$ 180,912$ 32,563$ 19,762,836$ Restricted cash and investments - - 8,161 - 56,517 - - 64,678 Less amounts classified as investments (3,476,637) (6,475,736) (1,035,039) (508,167) (2,178,119) (126,771) (22,818) (13,823,287) Total cash and cash equivalents 1,484,790$ 2,801,583$ 450,202$ 217,026$ 986,740$ 54,141$ 9,745$ 6,004,227$ Reconciliation of operating income (loss) to net cash from operating activities Operating income (loss) 2,979,858$ (3,308,406)$ 189,108$ (45,349)$ 93,414$ (39,365)$ (19,556)$ (150,296)$ Adjustments to reconcile operating income (loss) to net cash from operating activities: Depreciation and amortization - - 123,456 - 1,099 - - 124,555 Lease proceeds used for noncapital expenses - - - - 789,413 - - 789,413 Changes in assets and liabilities: Receivables (1,391,660) 6,976 (48,744) - 8,141 - - (1,425,287) Due from other funds - - - - (73,046) - - (73,046) Inventory - - (39,594) - - - - (39,594) Prepaid expenses and other assets (73,865) - 3,226 - 7,654 - - (62,985) Accounts payable 18,556 176,911 46,858 682 32,943 6,409 - 282,359 Due to other funds - - 175 - - - - 175 Accrued payroll payable 7,019 - 33,133 - 30,581 - - 70,733 Compensated absences payable 385 - (12,496) - 30,070 - - 17,959 Estimate of unfiled claims (392,853) 105,830 - - - - - (287,023) Net cash provided by (used in) operating activities 1,147,440$ (3,018,689)$ 295,122$ (44,667)$ 920,269$ (32,956)$ (19,556)$ (753,037)$ Noncash investing, capital, and financing activities Capital assets disposed (at cost) -$ -$ (125,182)$ -$ -$ -$ -$ (125,182)$ Accumulated depreciation on disposals - of capital assets - - 123,236 - - - - 123,236 218 City of South Bend, Indiana Other Supplemental Information Fiduciary Funds Fund Descriptions FIDUCIARY FUNDS Pension Trust Funds 1925 Police Pension To account for the provision of retirement and disability benefits to police officers hired prior to May 1, 1977. Financing is provided by mandatory contributions by active members, 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. Custodial 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. 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. 219 City of South Bend, Indiana Statement of Fiduciary Net Position Fiduciary Funds December 31, 2019 Pension Trust Funds Custodial Funds 1925 1937 Total Police Total Police Firefighters'Pension Trust Distribution Custodial Pension Pension Funds Payroll Payable Funds Assets Cash and cash equivalents 208,932$ 100,704$ 309,636$ 335,621$ 857,178$ 1,192,799$ Investments 489,216 235,798 725,014 - - - Receivables - Accounts - - - - - - Receivables - Interest 3,168 1,741 4,909 - - - Total assets 701,316 338,243 1,039,559 335,621 857,178 1,192,799 Liabilities Accounts payable 101 70 171 - - - Accrued liabilities and other - - - 335,621 - 335,621 Customer deposits payable - - - - - - Police distribution payable - - - - 857,178 857,178 Total liabilities 101 70 171 335,621 857,178 1,192,799 Net position for pension benefits and other purposes 701,215$ 338,173$ 1,039,388$ -$ -$ -$ 220 City of South Bend, Indiana Statement of Changes in Fiduciary Net Position Fiduciary Funds December 31, 2019 Pension Trust Funds Custodial Funds 1925 1937 Total Police Total Police Firefighters'Pension Trust Distribution Custodial Pension Pension Funds Payroll Payable Funds Additions 18,102$ 9,432$ 27,534$ -$ -$ -$ - - - - 40,211 - - - 107,339,435 - 107,339,435 - - - 3,787,134 - 3,787,134 - - - 111,126,568 - 111,126,568 Investment income - Interest and dividends Police asset seizures Payroll: Employee payroll Collection of taxes for other governments Total Payroll Contributions: On behalf 6,111,782 4,466,993 10,578,775 - - - Other 1,996 - 1,996 - - - Net contributions 6,113,778 4,466,993 10,580,771 - - - Total additions 6,131,880 4,476,425 10,608,305 111,126,568 40,211 111,126,568 Deductions 6,365,546 4,439,495 10,805,041 - - - - - - 111,126,568 - 111,126,568 - - - - 40,211 Benefit payments Payroll distributions and payment of tax to other govt's Police distributions Administrative expenses 14,304 14,309 28,613 - - - Total deductions 6,379,850 4,453,804 10,833,654 111,126,568 40,211 111,126,568 Net increase (decrease) in net position held in trust (247,970) 22,621 (225,349) - - - Net position - Beginning of year 949,185 315,552 1,264,737 - - - Net position - End of year 701,215$ 338,173$ 1,039,388$ -$ -$ -$ 221 40,211 40,211 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. 222 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. 223 City of South Bend, IndianaNet Position by ComponentLast Ten Fiscal YearsAs of December 31,As of December 31,20102011201220132014 (1)2015 (1)2016201720182019Governmental activitiesNet investment in capital assets 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$ 123,340,793$ Restricted 8,840,610 9,354,772 8,050,418 7,990,172 8,723,878 9,137,552 8,669,117 9,245,531 11,639,254 11,332,302 Unrestricted 96,539,932 82,271,482 71,992,457 86,413,227 (18,581,970) (25,882,348) (7,327,797) (16,751,916) 3,673,134 (69,988) Total net position292,151,758$ 287,891,667$ 282,822,829$ 286,593,845$ 158,417,429$ 140,859,895$ 162,682,638$ 148,406,297$ 158,594,875$ 134,603,107$ Business-type activitiesNet investment in capital assets 122,108,095$ 103,463,004$ 113,193,929$ 114,506,252$ 136,685,811$ 141,998,384$ 145,288,974$ 145,585,038$ 147,069,159$ 155,288,994$ Restricted 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 34,701,170 Unrestricted 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 30,004,802 Total net position154,691,254$ 162,134,622$ 169,411,367$ 170,680,174$ 185,698,840$ 194,811,413$ 202,610,491$ 203,311,391$ 211,791,275$ 219,994,966$ Primary governmentNet investment in capital assets 308,879,311$ 299,728,417$ 315,973,883$ 306,696,698$ 304,961,332$ 299,603,075$ 306,630,292$ 301,497,720$ 290,531,646$ 278,629,787$ Restricted 22,161,577 22,292,760 37,310,351 56,257,836 35,310,890 37,534,842 40,632,969 38,868,546$ 45,575,949 46,033,472 Unrestricted 115,802,124 128,005,112 98,949,962 94,319,485 3,844,047 (1,466,609) 18,029,868 11,351,422 34,458,555 29,934,814 Total net position446,843,012$ 450,026,289$ 452,234,196$ 457,274,019$ 344,116,269$ 335,671,308$ 365,293,129$ 351,717,688$ 370,566,150$ 354,598,073$ (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)224 City of South Bend, IndianaChanges in Net PositionLast Ten Fiscal Years2010201120122013201420152016201720182019ExpensesGovernmental activities:General Government (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)$ (10,915,147)$ Public Safety (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) (92,017,691) Highways and Streets (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) (27,114,327) Health and Welfare - - - - - - - - - Community and Economic Development (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) (44,698,518) Culture and Recreation (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) (24,641,558) Bond Issuance Costs - - - - - (372,432) - - - Interest on Long-Term Debt (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) (5,746,755) Total governmental activities expenses(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) (205,133,996) Business-type activities:Water (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) (16,268,059) Wastewater (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) (32,482,382) Century Center (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) (5,469,673) Consolidated Building Department (1) (930,120) (871,299) (909,376) (1,131,815) (3,242,320) (3,552,347) (3,240,172) (3,704,963) (4,136,837) (4,329,275) Parking Garage (1,438,288) (1,467,646) (1,721,655) (1,285,056) (1,660,596) (2,139,182) (909,857) (1,177,363) (459,536) (1,178,641) Solid Waste (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) (5,481,420) Blackthorn Golf Course (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) (7,864,987) Total business-type activities net expenses(45,486,515) (46,323,473) (48,559,092) (54,949,283) (55,879,605) (61,899,676) (64,067,328) (71,240,609) (64,872,482) (73,074,437) Total primary government net position(179,501,658) (201,225,569) (195,040,779) (207,967,100) (195,788,664) (226,209,870) (198,586,681) (231,563,406) (229,555,711) (278,208,433) 225 City of South Bend, IndianaChanges in Net Position (continued)Last Ten Fiscal Years2010201120122013201420152016201720182019Program revenueGovernmental activities:Charges for services: General Government6,964,269$ 1,165,018$ 2,100,103$ 1,939,865$ 1,451,438$ 1,188,531$ 1,622,788$ 1,118,328$ 718,155$ 452,796$ Public Safety4,916,958 4,096,566 5,079,182 5,210,272 4,992,228 529,386 975,712 648,136 702,977 521,835 Highways and Streets28,110 227,000 291,840 451,363 728,343 676,429 707,547 976,095 - 244,790 Community and Economic Develop.283,420 683,503 271,366 444,839 485,938 408,654 481,293 1,489,942 698,252 199,405 Culture and Recreation4,995,049 4,681,536 5,224,543 5,112,019 3,815,920 3,726,359 4,383,977 4,308,699 4,356,659 4,240,087 Operating Grants and Contributions29,467,573 32,091,246 24,937,596 21,466,622 3,203,805 2,813,481 2,644,272 11,828,681 26,248,738 14,701,908 Capital Grants and Contributions1,472,233 2,328,468 2,468,120 1,867,213 - - - 1,000,000 4,100,000 3,605,801 Total governmental activities program revenues48,127,612 45,273,337 40,372,750 36,492,193 14,677,672 9,342,840 10,815,589 21,369,881 36,824,781 23,966,622 Business-type activities:Charges for services:Water 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 20,440,181 Wastewater 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 41,324,779 Century Center 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 3,268,026 Consolidated Building Department 875,481 899,397 1,000,381 967,667 1,387,571 2,037,950 1,764,100 1,902,493 2,044,582 2,043,272 Parking Garage 1,047,784 1,071,078 921,044 968,868 1,017,218 968,417 996,197 1,264,706 1,323,524 1,004,401 Solid Waste 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 5,465,311 Blackthorn Golf Course 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 5,720,434 Operating Grants and Contributions - - - - - - - - 278,112 - Capital Grants and Contributions1,889,165 4,291,731 2,010,253 697,916 95,834 4,683,424 649,609 1,170,970 - 1,710,762 Total business-type activities program revenues53,102,000 58,868,315 59,429,986 60,604,915 59,954,140 74,680,710 76,119,831 74,207,331 76,218,131 80,977,166 Total primary government program revenues101,229,612 104,141,652 99,802,736 97,097,108 74,631,812 84,023,550 86,935,420 95,577,212 113,042,912 104,943,788 2010201120122013201420152016201720182019Net (Expense)/RevenueGovernmental activities (103,726,403) (106,774,484) 45,273,337 (106,108,937) (116,525,624) (125,231,387) (123,703,764) (138,952,916) (127,858,448) (181,167,374) Business-type activities 8,954,365 6,778,527 58,868,315 10,870,894 5,655,632 4,074,535 12,052,503 2,966,722 11,345,649 7,902,729 Total primary government net expense(94,772,038) (99,995,957) 104,141,652 (95,238,043) (110,869,992) (121,156,852) (111,651,261) (135,986,194) (116,512,799) (173,264,645) 226 City of South Bend, IndianaChanges in Net Position (continued)Last Ten Fiscal Years2010201120122013201420152016201720182019General Revenue and Other Changes in Net PositionGovernmental activities:Taxes:Property taxes77,315,641$ 76,445,349$ 71,775,415$ 72,018,650$ 69,221,468$ 72,032,049$ 76,331,581$ 78,266,107$ 80,155,902$ 82,470,667$ County Option Income Tax11,502,052 13,219,723 13,748,824 13,739,325 15,025,840 14,847,338 21,194,795 17,579,628 20,210,633 22,169,072 Economic Develop. Income Tax7,335,113 8,044,773 8,324,878 8,177,352 8,796,821 9,031,709 9,594,602 10,600,122 12,700,892 12,474,651 Professional Sports Develop. Tax597,406 558,268 633,904 649,996 588,054 628,261 673,787 347,255 - - Community Revitalization District Tax416,149 733,100 653,185 244,623 - - - - - - Hotel/motel Tax- - - - - - - - 616,437 - Unrestricted Grants and Contributions4,883,081 3,964,336 3,891,810 5,893,924 28,473,888 25,487,112 25,846,397 17,160,034 4,819,125 13,680,283 Unrestricted Investment earnings868,023 1,050,768 1,317,443 762,270 951,901 1,322,674 1,458,787 1,687,888 3,304,646 5,136,772 Other2,627,341 3,483,054 6,623,313 14,285,314 6,747,199 11,214,442 6,745,542 8,731,916 10,523,004 17,646,068 Gain on sale of capital assets- - - - - - - - - - Net Pension Obligation - - - - - - - - - Transfers (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 2,768,851 Total governmental activities104,895,983 110,540,547 110,848,493 120,296,641 129,122,122 137,410,000 145,526,507 138,496,133 137,560,300 156,346,364 Business-type activities:Unrestricted Investment earnings 146,826 206,409 285,572 138,362 128,168 358,918 570,982 578,773 1,088,896 1,784,206 Other - - - - 1,501,664 - - 1,278,588 1,275,000 1,275,000 Transfers 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) (2,768,851) Total business-type activities795,649 (2,834,767) (3,594,149) (4,386,825) 2,312,881 (2,487,497) (3,110,034) (2,265,822) (2,865,765) 290,355 Total primary government105,691,632 107,705,780 107,254,344 115,909,816 131,435,003 134,922,503 142,416,473 136,230,311 134,694,535 156,636,719 Special Item (Governmental activities):Well field contamination settlement - - - - - - - - - - Disposal of operations - - - - - (1,180,964) - - - Change in Net PositionGovernmental activities 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 (24,821,010) Business-type activities 59,663,964 9,710,075 7,276,745 1,268,807 6,387,416 9,112,573 7,799,078 700,900 8,479,884 8,193,084 Total primary government209,833,284$ 10,621,863$ 12,016,301$ 5,039,823$ 10,278,151$ (8,444,781)$ 29,621,821$ 244,117$ 18,181,736$ (16,627,926)$ 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 Reports227 City of South Bend, IndianaFund Balances - Governmental FundsLast Ten Fiscal YearsAs of December 31,2010201120122013201420152016201720182019General fundPrior to adoption of GASB 54:Reserved1,824,454$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved and undesignated26,912,688 - - - - - - - - - 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 1,242,770 820,914 820,834 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 42,478,766 Total general fund28,737,142 27,931,216 28,795,083 27,668,913 27,587,405 30,622,056 33,952,622 35,466,260 38,629,800 43,299,600 All other governmental funds:Prior to adoption of GASB 54:Reserved 62,230,229 - - - - - - - - Unreserved, reported in:Special revenue funds 31,996,398 - - - - - - - - Capital projects funds 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 15,686 Restricted - 44,754,037 78,326,567 95,387,879 100,501,274 113,004,506 101,826,640 125,302,667 152,809,121 119,218,398 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 4,495,457 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 42,474,803 Unassigned - (2,777,374) (4,219,066) (4,852,169) (5,700,829) (4,218,596) (2,301,793) (626,846) - (57,852) Total all other governmental funds179,464,574 168,302,860 158,137,059 169,516,402 163,448,514 170,204,680 157,788,598 181,764,928 194,748,930 166,146,492 Total of all governmental funds208,201,716$ 196,234,076$ 186,932,142$ 197,185,315$ 191,035,919$ 200,826,736$ 191,741,220$ 217,231,188$ 233,378,730$ 209,446,092$ Source: City of South Bend Comprehensive Annual Financial Reports228 City of South Bend, IndianaChanges in Fund Balances, Governmental FundsLast Ten Fiscal Years2010201120122013201420152016201720182019RevenueTaxes 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$ 117,943,632$ Licenses, fees and permits 192,397 190,943 189,714 177,019 141,565 151,923 224,677 231,260 245,956 284,048 Fines and forfeits 409,775 636,749 334,767 660,841 563,999 454,327 756,781 562,466 494,836 1,124,570 Charges for services 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 5,658,913 Intergovernmental 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 31,987,992 Investment earnings 868,023 1,050,768 1,317,443 762,270 955,376 1,253,242 1,624,527 1,687,888 3,304,646 5,136,772 Other revenues 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 16,237,450 Total revenue 158,342,276 152,877,172 147,379,084 151,152,474 144,489,791 142,719,826 152,669,418 155,586,756 169,155,420 178,373,377 ExpendituresCurrent:General government 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 11,714,095 Public safety 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 74,695,638 Highways and streets 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 19,636,991 Public works - - - - - - - - - - Health & welfare17,408,376 9,698,611 3,543,180 8,068,458 7,309,130 11,068,013 20,894,153 15,904,306 16,597,764 26,106,656 Community & economic development 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 20,706,436 Capital outlay21,952,522 46,691,030 39,984,127 30,748,663 29,407,934 46,553,570 27,056,295 17,035,543 23,240,519 43,200,250 Bond Issuance Costs- - - - - 372,432 - - 165,885 293,022 Debt service interest7,499,683 7,186,494 6,734,305 6,113,043 5,360,219 5,392,298 4,943,021 4,514,526 5,682,429 6,002,448 Debt service principal12,552,681 13,632,195 10,822,721 13,008,105 12,882,830 13,319,392 13,055,327 16,634,195 13,134,725 14,124,590 Total expenditures 150,758,014 172,397,679 162,460,000 152,860,750 154,300,097 172,658,733 170,976,084 174,542,237 186,199,998 216,480,126 Excess of Revenue Over Expenditures7,584,262 (19,520,507) (15,080,916) (1,708,276) (9,810,306) (29,938,907) (18,306,666) (18,955,481) (17,044,578) (38,106,749) Other Financing Sources (Uses)Proceeds from debt issuance5,280,314 3,478,239 5,660,897 7,801,455 8,436,905 69,426,593 4,999,053 40,727,816 26,101,096 8,788,457 Premium (discount) on debt issuance 146,030 26,877 1,236,364 21,576 171,851 1,919,787 - 6,478 479,608 1,462,841 Proceeds from refunding5,327,775 38,307,431 13,595,000 3,990,000 - - - - - - Payments to refunded bond escrow age (5,538,255) (37,300,856) (14,613,147) (4,376,769) (3,482,205) (35,698,815) - - - - Transfers in16,314,577 22,483,564 25,368,413 26,365,239 18,478,925 31,498,681 19,541,050 29,141,285 28,197,288 27,479,435 Transfers out(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) (24,110,584) Other- - - - 28,476 1,235,744 541,081 (412,028) 942,616 67,236 Total other financing sources (uses) 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 13,687,385 Special ItemWell field contamination settlement - - - - - - - - - - Net change in fund balances 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$ (24,419,364)$ Debt service as a percentage of noncapital expenditures17.59% 15.42% 13.84% 12.92% 13.38% 11.27% 14.60% 11.00% 10.11% 9.30%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 31,229 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) 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% 2019 45 4,789,990 - - n/a 4,137,490 8,927,480 29.40% 1st Source Bank 2,469,890$ 51.57%Teacher's Credit Union 2,935,318$ 70.94% Key Bank 628,737 13.13%Notre Dame Federal Credit Union 643,640 15.56% Wells Fargo 782 0.02%Community Wide Credit Union 397,209 9.60% Others 1,690,581 35.29%AAA Federal Credit Union 55,115 1.33% Total 4,789,990$ 100.01%Policemen's Federal Credit Union 50,569 1.22% Others 55,639 1.34% Total 4,137,490$ 99.99% 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. (Industry Analysis, Bank Data & Statistics, Reporting Tools, Deposits Market Shares 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 230 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. 231 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 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 45,631,337 88.58% 5,867,517 51,498,854 99.97% 12,106,873 23.50% 2018/2019 88,747,340 35,874,959 52,872,381 51,587,619 97.57% 3,882,939 55,470,558 104.91% 12,106,873 22.90% 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). 232 City of South Bend, Indiana CumulativeTax Year/ General Parks/ Firefighters' Police Park Capital Total St. Joseph Schools TotalCollection YearFundRecreationPensionPensionBondDevelopmentDirectCountyDistrictsTownshipLibraryOther (1)Overlapping2009/2010 (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 2018/2019 2.8140 0.6621 - - 0.0461 0.0300 3.5522 0.6589 1.1184 0.0522 0.3278 0.1853 2.3426 (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 programs(3) Information provided for Portage Township in the City of South Bend. Property tax rates applied to net assessed valuation. Property tax billings are also subject to "circuit breaker" property tax caps on grossed assessed valuation of 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 $100 of Net Assessed Value)City Direct Rates Overlapping Rates (3)233 City of South Bend, Indiana Detail of Net Assessed Valuation (Assessment For the Year 2018 Payable in 2019) South Bend South Bend South Bend South Bend South Bend South Bend Centre Twp Clay Twp German Twp Penn Twp Warren Twp Portage Twp Totals Percent Value of land 133,627,700$ 29,345,300$ 87,310,000$ 17,755,800$ 988,300$ 462,305,695$ 731,332,795$ Value of improvements 552,408,800 124,753,100 493,764,800 106,732,400 23,230,200 3,082,022,405 4,382,911,705 Total value of real estate 686,036,500 154,098,400 581,074,800 124,488,200 24,218,500 3,544,328,100 5,114,244,500 Less: Mortgage, veterans, blind, age 65 & other exemptions (269,890,296) (36,751,464) (146,959,730) (40,025,371) - (1,145,421,608) (1,639,048,469) Tax-exempt property (49,268,960) (9,639,804) (28,537,560) (9,165,100) - (368,047,489) (464,658,913) Investment Deduction - - - - - - - Tax increment financing (58,635,469) (1,113,400) (273,372,052) - (24,218,500) (518,775,783) (876,115,204) Tax abatements - - - - - - Net value of real estate 308,241,775 106,593,732 132,205,458 75,297,729 - 1,512,083,220 2,134,421,914 77.03% Gross personal property assessments 34,049,440 9,233,810 209,492,510 3,977,590 8,571,780 381,596,464 646,921,594 Less: Deductions (2,867,889) (127,800) (19,006,952) (2,374,490) - (107,864,476) (132,241,607) Tax increment financing - - - - - - - Net value of personal property 31,181,551 9,106,010 190,485,558 1,603,100 8,571,780 273,731,988 514,679,987 18.57% Net value of utilities 20,972,190 7,053,000 25,724,410 1,192,960 114,200 66,778,020 121,834,780 4.40% Total net assessed valuation 360,395,516$ 122,752,742$ 348,415,426$ 78,093,789$ 8,685,980$ 1,852,593,228$ 2,770,936,681$ 100.00% Percentage of Total 13.01% 4.43% 12.57% 2.82% 0.31% 66.86% 100.00% Summary: Real Property Personal Property/Utilities Total Percent Total value 5,114,244,500$ 768,756,374$ 5,883,000,874$ 100.00% Deductions & exemptions (1,639,048,469) (132,241,607) (1,771,290,076) -30.11% Tax exempt property (464,658,913) - (464,658,913) -7.90% Tax increment financing (876,115,204) - (876,115,204) -14.89% Tax abatements - - - 0.00% Total net assessed valuation 2,134,421,914$ 636,514,767$ 2,770,936,681$ 47.10% Percent 77.03% 22.97% 100.00% Source: St. Joseph County Auditor's Office - Information from the County Abstract prepared by the Indiana Department of Local Government Finance * Note: 2019 County Abstract detailed breakdown not available - deductions for personal property assesments aggregated under less: deductions Note: 2019 County Abstract report is a summary - no breakdown Business Personal Property Deductions aggregated versus in prior years broken down 234 City of South Bend, Indiana Less:Total Net(2)Tax Year/Real Personal UtilitiesTotal Non-Taxed Taxable City Tax %Collection YearPropertyPropertyPropertyValueProperty (1)ValueRateTaxable2009/2010 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%2018/2019 5,114,244,500 646,921,594 121,834,780 5,883,000,874 2,979,822,586 2,903,178,288 3.5168 49.35% (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 Office2019 report is a summary - no breakdownAssessed Value and Actual Value of Taxable PropertyLast Ten Fiscal YearsGross Assessed Values235 City of South Bend, IndianaNet Assessed Value of Taxable PropertyLast Ten Fiscal YearsReal EstatePersonalUtilitiesTotalTax Year/ Net Assessed Net Assessed Net Assessed Net Assessed PercentCollection YearValueValueValueValueChange2009/20101,911,818,036 443,253,787 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%2018/20192,134,421,914 514,679,987 121,834,780 2,770,936,681 14.67%Source: St. Joseph County Auditor's office2019 report is a summary - no breakdown236 City of South Bend, Indiana NetTax Year/ Total Tax Exempt Tax Increment Tax AssessedCollection YearGross ValuationDeductions (1)PropertyFinancingAbatementsValuation2009/20105,071,882,200 (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 2018/20195,883,000,874 (1,771,290,076) (464,658,913) (876,115,204) - 2,770,936,681 * Note: Tax Abatement included in aggregated Deductions as 2019 County Abstract detailed information was not available(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.Deductions2015/20162016/20172017/20182018/2019Homestead Standard Deduction820,420,116$ 828,638,094$ 842,461,563$ n/aSupplemental Standard Deduction 375,610,821 400,306,547 435,967,478 n/aMortgage Deduction42,985,922 40,717,260 40,183,948 n/aVeteran's Deduction11,784,608 11,986,495 12,815,878 n/aAge 65 and Over Deduction24,608,600 23,876,138 23,373,704 n/aEnergy Systems Deduction388,200 396,600 421,500 n/aBlind & Disabled Deduction5,643,351 5,646,155 5,567,847 n/aFertilizer/Peticide Deduction- 114,555 n/aHeritage Barn Deduction- 10,000 23,900 n/aInvestment Deduction24,479,572 23,152,793 19,437,941 n/aTotal1,305,921,190$ 1,334,844,637$ 1,380,253,759$ 1,771,290,076$ Source: St. Joseph County Auditor's Office Abstract* Note: Tax Abatement included in aggregated Deductions as 2019 County Abstract detailed information not available2019 report is a summary - no breakdownAssessed Value of Taxable PropertyLast Ten Fiscal Years237 City of South Bend, IndianaFund 201020112012 2013 2014 2015 2016 2017 2018 2019Fund NameNumberActualActualActualActualActualActualActualActualActualActualGeneral Fund101 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$ 42,705,987$ Excess Levy103- - - - 3,648 - - - - Parks & Recreation201 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 10,048,047 Redevelopment Bonds Studebaker Corridor 310- - - - - - - - - Park Bond (2017ParksBond Debt Service) 312703,118 1,166,972 College Football Hall of Fame Debt Service 313 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 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 18,555,308 Cumulative Capital Development406587,063 540,454 517,710 463,331 430,786 428,727 440,887 436,823 436,677 455,002 South Bend Central Development Area TIF (1) 420 7,336,117 3,633,473 3,671,478 2,590,808 4,309,727 - - - - West Washington Street TIF District422860,049 431,085 422,715 493,608 580,987 402,911 453,503 378,994 332,220 261,830 Central Medical Service Area TIF District (1) 426 3,524,962 1,704,238 1,606,915 1,221,676 851,211 - - - - - River East (Northeast) TIF District429195,400 715,063 1,351,048 841,627 1,568,240 2,421,308 2,348,608 2,630,887 3,062,820 2,722,642 Southside Development Area TIF District 430 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 1,755,231 Erskine Commons TIF District (5)431 5,978,592 784,373 - - - - - - - Erskine Village TIF District432 3,759,287 1,603,182 - 1,311,129 9,175 19,183 - - - Douglas Road TIF District435460,760 306,053 285,713 323,939 321,895 270,758 345,262 379,255 - 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 4,686,651 4,933,558 Airport Urban Enterprise454301,430 123,165 111,721 - - - - - - Fire Department Employees Pension (4) 701(5,867) - - - - - - - - Police Department Employees Pension (4)702(9,479) - - - - - - - - - Total98,267,940$ 72,962,173$ 72,904,530$ 69,980,289$ 72,037,669$ 70,914,834$ 76,708,415$ 77,136,348$ 80,788,794$ 82,604,579$ (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 Years238 City of South Bend, Indiana 2019 Circuit Breaker Property Tax Cap Credits Selected Benchmark Local Governments: Total 2010 Per Capita Local Unit Credits Population Credits South Bend Civil City 35,874,959$ 101,168 355$ Anderson Civil City 13,595,474 56,120 242 East Chicago Civil City 5,409,251 29,698 182 Elkhart Civil City 9,441,098 50,949 185 Evansville Civil City 14,120,353 117,429 120 Fort Wayne Civil City 18,165,506 253,691 72 Gary Civil City 41,491,169 80,294 517 Goshen Civil City 2,694,868 31,719 85 Hammond Civil City 9,319,816 80,830 115 Jeffersonville Civil City 5,174,836 44,953 115 Kokomo Civil City 10,172,217 45,468 224 Lafayette Civil City 2,372,491 61,140 39 LaPorte Civil City 2,997,346 22,053 136 Mishawka Civil City 5,847,754 48,252 121 Muncie Civil City 16,726,660 70,085 239 Noblesville Civil City 4,374,702 51,969 84 Saint Joseph County 8,838,939 266,931 33 South Bend School Corporation 7,596,680 101,168 75 Terre Haute Civil City 228,307 60,785 4 Note: 2019 County Abstract Detailed Information not available Sources - Circuit Breaker Report. Prepared by the Legislative Services Agency, December 20, 2019 (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, 2019 239 City of South Bend, Indiana20192010Net AssessedPercent Net Assessed PercentTaxpayerType of BusinessValue (1)Rankof TotalValue (2)Rankof TotalUniversity of Notre DameHigher Education74,038,193$ 1 2.67%0.00%Indiana Michigan Power Company - AEPUtility69,407,150 2 2.50% 111,616,770 1 20.61%Edward Rose of IndianaApartments and Real Estate 37,666,940 5 1.36%0.00%Honeywell International, Inc.Airplane and Auto Parts47,202,386 3 1.70% 43,553,580 2 8.04%Federal-Mogul Powertrain SystemsAutomotive Parts33,843,490 6 1.22% 22,691,030 4 4.19%Steel Warehouse Co., Inc. / Lock Joint Tube LLC Steel Processing38,850,661 4 1.40%ComcastTelecommunications0.00% 21,286,680 5 3.93%Indiana Bell - AT&T Inc.Telecommunications28,736,650 7 1.04% 34,275,700 3 6.33%JVE Investments LLC / The Tire Rack, Inc.Telecommunications26,081,890 8 0.94%Eddy Property Development, Inc. / South Bend Clinic LHealth Care24,186,390 9 Wal MartRetail Store19,453,080 10 0.00%MeijerRetail Store- 8,359,880 10 1.54%United Parcel ServiceParcel Delivery- 12,085,550 6 2.23%New Energy CorporationEthanol Plant- 10,685,990 7 1.97%Robert Bosch CorporationAutomotive Supplier- 10,680,020 8 1.97%South Bend Tribune CompanyNewspaper Publishing- 8,378,600 9 1.55%Total Net Assessed Value - Ten Largest Taxpayers399,466,830$ 12.84%283,613,800$ 52.36%Total Net Assessed Value (3) 2,770,936,681$ 100.00%541,687,537$ 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, 2019240 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 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 2019 0.40% 28,586,914 6.88% 11,831,812 -0.45%41.39%11,831,812 Total 230,237,451$ 94,014,529$ 40.83%95,527,470$ (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 $1,164,530 of Supplemental and One Time distributions. Source - State of Department of Local Government Finance CEDIT Distribution Reports City of South Bend Accounting Records 241 City of South Bend, IndianaLocal Income Tax RevenueLast Ten YearsTotalSouth BendSouth Bend Actual CityDistribution COIT County COIT Rate of COIT Rate of as a Percent CollectionsYearTax Rate (1)DistributionsGrowthDistributionGrowthof TotalDuring Year20100.60% 25,147,806 -6.77% 7,855,776$ -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 20190.60% 35,539,674 11.24% 12,148,294 -0.33% 34.18% 12,148,294 Total 268,934,166$ 91,609,519$ 34.06%92,960,194$ (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 $1,433,440. Source - State of Indiana Department of Local Government Finance COIT Distribution Reports City of South Bend Accounting RecordsCounty Option Income Tax (COIT) Revenue242 City of South Bend, Indiana Local Income Tax Revenue Last Ten Years Total South Bend South Bend Actual City Distribution PS LOIT County LOIT Rate of LOIT Rate of as a Percent Collections Year Tax Rate Distributions Growth Distribution Growth of Total During Year 2010 (1) 0.25% 13,846,267$ 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 2019 0.25% 17,784,064 11.24% 8,560,555 0.86% 48.14% 8,560,555 Total 139,213,910$ 67,473,651$ 48.47%68,022,948$ (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 $857,797. Source - State of Indiana Department of Local Government Finance LOIT Public Safety Distribution Reports City of South Bend Accounting Records Public Safety Local Option Income Tax (PS LOIT) Revenue 243 City of South Bend, Indiana Unit of Government 2010 2011 2012 2013 Total County Certified Distribution 33,231,041$ 27,292,516$ 29,898,874$ 29,898,874$ Less: Homestead Credit (1)(8,083,235) (7,385,086) (7,362,417) (6,974,918) Total Distributive Shares 25,147,806$ 19,907,430$ 22,536,457$ 22,923,956$ Distributive Shares/Total County Distribution 75.68% 72.94%75.38% 76.67% Amount St. Joseph County 9,819,576$ 7,383,180$ 7,986,750$ 8,460,192$ Townships 1,168,352 1,054,827 1,244,481 954,332 City of South Bend - Civil City 7,677,730 6,304,224 7,511,976 7,711,609 City of South Bend - Redevelopment 178,046 154,363 184,790 135,330 Other Cities & Towns 3,462,786 2,667,400 3,077,335 3,137,086 Libraries 2,042,942 1,762,365 1,879,376 1,849,933 Special Districts 798,374 581,071 651,749 675,474 Total 25,147,806$ 19,907,430$ 22,536,457$ 22,923,956$ Percentage of Distribution St. Joseph County 39.05% 37.09% 35.44% 36.91% Townships 4.65% 5.30% 5.52% 4.16% City of South Bend - Civil City 30.53% 31.67% 33.33% 33.64% City of South Bend - Redevelopment 0.71% 0.78% 0.82% 0.59% Other Cities & Towns 13.77% 13.40% 13.65% 13.68% Libraries 8.12% 8.85% 8.34% 8.07% Special Districts 3.17% 2.91% 2.90% 2.95% Total 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 residen Source - State of Indiana Department of Local Government Finance COIT Distribution Reports Total 244 2014 2015 2016 2017 2018 2019 32,344,207$ 32,962,518$ 34,170,664$ 37,640,869$ 38,393,656$ 42,710,208$ (7,068,666) (6,527,363) (6,271,754) (6,319,453) (6,445,837) (7,170,534) 25,275,541$ 26,435,155$ 27,898,910$ 31,321,416$ 31,947,819$ 35,539,674$ 78.15% 80.20% 81.65% 83.21% 83.21% 83.21% 9,314,201$ 9,611,416$ 9,983,016$ 10,908,099$ 11,290,728 12,351,986 1,069,408 1,541,211 1,695,662 2,396,851 1,978,069 3,506,429 8,483,839 8,754,940 9,275,956 10,267,284 10,781,364 12,148,294 161,972 104,972 178,067 191,981 124,929 70,356 3,378,481 3,508,422 3,683,131 4,118,009 4,317,405 4,868,878 2,126,185 2,144,046 2,279,241 2,541,672 2,569,360 2,889,567 741,455 770,148 803,837 897,520 885,964 1,054,424 25,275,541$ 26,435,155$ 27,898,910$ 31,321,416$ 31,947,819$ 36,889,934$ 36.85% 36.36% 35.78% 34.83% 35.34% 33.48% 4.23% 5.83% 6.08% 7.65% 6.19% 9.51% 33.57% 33.12% 33.25% 32.78% 33.75% 32.93% 0.64% 0.40% 0.64% 0.61% 0.39% 0.19% 13.37% 13.27% 13.20% 13.15% 13.51% 13.20% 8.41% 8.11% 8.17% 8.11% 8.04% 7.83% 2.93% 2.91% 2.88% 2.87% 2.77% 2.86% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% ntial property owners. l County Income Tax Distributions by Taxing Unit Last Ten Years 245 City of South Bend, Indiana Ten Largest Water Customers Percentage of Total Water 2019 Operating Usage Name Revenue Revenue CCF* South Bend Community School Corporation 197,479 0.97% 101,001 Memorial Hospital of South Bend 165,182 0.81% 101,875 Irish Hills Apartments 120,641 0.59% 69,809 Indiana University South Bend 112,197 0.55% 55,235 Housing Authority of South Bend 95,841 0.47% 42,473 Honeywell Aerospace Company 92,660 0.45% 34,524 Indian Springs Apartments and Townhomes 88,014 0.43% 47,398 Holy Cross Care Services 54,257 0.27% 36,318 McCormick & Company 53,692 0.26% 42,412 Aramark Uniform Services 52,586 0.26% 45,956 Total of Ten Largest Water Customers 1,032,549$ 5.06% Total for Operating Revenue for Water Works 20,406,057$ 100.00% *Hundreds of Cubic Feet Source: City of South Bend Water Utility December 31, 2019 246 City of South Bend, IndianaTen Largest Sewage Works CustomersDecember 31, 2019Percentage ofHeavy Total WaterMetered Demand 2019 Sewer UsageNameRevenueSurchargeRevenueRevenueCCF*I/NTEK Plant2,146,214$ -$ 2,146,214$ 5.28% 745,567 University of Notre Dame1,273,346 - 1,273,346 3.14% 504,709 Noble Americas South Bend Ethenol1,321,908 - 1,321,908 3.25% 334,787 Memorial Hospital428,198 - 428,198 1.05% 88,636 South Bend Community School Corp395,539 - 395,539 0.97% 74,133 Town of New Carlisle289,172 - 289,172 0.71% 82,468 Irish Hills Apartments243,827 - 243,827 0.60% 60,155 Housing Authority of South Bend235,091 - 235,091 0.58% 27,739 Alliedsignal Aerospace Co232,509 - 232,509 0.57% 32,418 Indian Springs226,294 - 226,294 0.56% 39,591 Total of Ten Largest Sewer Customers6,792,098$ -$ 6,792,098$ 16.72%Total Operating Revenue for Wastewater40,616,333$ *Hundreds of Cubic FeetSource: City of South Bend Sewage Works Utility247 City of South Bend, Indiana Gasoline Tax Collections - Cash Basis December 31, 2019 LR&S MVH Total Gas % Year Fund Fund Tax Change 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% 2019 1,858,579 2,176,158 4,034,737 -38.36% Source: City Accounting Records Last Ten Fiscal Years 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. $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 248 City of South Bend, Indiana Wheel and Excise Surtax Collections Cash Basis Last Ten Years 2019 % Year Wheel Tax Change 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% 2019 2,065,786 -4.04% 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. 249 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 Center Subtotal: 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%2019 1,275,000 - - 396,500 221,437 1,892,937 - - 1,292,506 3,185,443 23.53%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 CenterBonds250 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% 2019 - 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 251 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% 2019 707,836 132,332 840,169 -10.72% 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 ($43,000) are spent on support of the local public access channel. Under Indiana State law, the City is required to submit an Annual Franchise Fee Report (State Form 55122) summarizing franchise fee revenue received during the year and the purpose for which the revenue was expended. The report must be file with the Indiana Utility Regulatory Commission by March 1st of the following year. 252 Debt Capacity These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 253 City of South Bend, Indiana Computation of Legal Debt Margin ESTIMATED December 31, 2019 Civil City Net Assessed Valuation (2018 pay 2019) of Taxable Property in South Bend 2,726,534,082$ Debt limit: 2% of one third thereof 18,176,894 Less Bonds subject to limitation: Economic Development Income Tax Bonds of 2015 (Parks Bond)(4,650,000) Economic Development Income Tax Bonds of 2018 (Zoo Bond)(3,340,000) General Obligation Bonds, Series 2018 (Fire Station #9)(4,700,000) Issuance Margin 5,486,894$ Percentage of Debt to Debt Limit 69.81% Park District Net Assessed Valuation (2018 pay 2019) of Taxable Property in South Bend 2,726,534,082$ Debt limit: 2% of one third thereof 18,176,894 Less Bonds subject to limitation: Park District Bonds, Series 2017 (A-K) (12,575,000) Issuance Margin 5,601,894$ Percentage of Debt to Debt Limit 69.18% Redevelopment District Net Assessed Valuation (2018 pay 2019) of Taxable Property in South Bend 2,726,534,082$ Debt limit: 2% of one third thereof 18,176,894 Less Bonds subject to limitation: Special Taxing District Bonds of 2014 (925,000) Redevelopment District Bonds of 2018 (TIF Parks Bond) (10,930,000) Issuance Margin 6,321,894$ Percentage of Debt to Debt Limit 65.22% 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. 254 City of South Bend, Indiana Legal Debt Margin Information2010201120122013201420152016201720182019Civil CityDebt Limit (1) 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$ 18,176,894$ Total Net Debt Applicable To Limit 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 12,690,000 Debt Margin 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 5,486,894 Percentage of Debt Limit 60.22% 57.50% 49.04% 40.66% 33.74% 48.25% 38.44% 32.22% 80.39% 69.81%Park DistrictDebt Limit (1) 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$ 18,176,894$ Total Net Debt Applicable To Limit - - - - - - - 14,075,000 13,725,000 12,575,000 Debt Margin16,356,704 15,495,323 15,599,467 15,579,379 14,731,511 15,068,462 15,181,132 2,034,715 2,930,845 5,601,894 Percentage of Debt Limit0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 87.37% 82.40% 69.18%Redevelopment DistrictDebt Limit (1)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$ 18,176,894$ Total Net Debt Applicable To Limit 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 11,855,000 Debt Margin11,641,704 11,410,323 11,514,466 12,174,379 11,721,511 12,453,462 12,971,132 14,314,715 3,700,845 6,321,894 Percentage of Debt Limit28.83% 26.36% 26.19% 21.86% 20.43% 17.35% 14.56% 11.14% 77.78% 65.22%(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 Years255 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)Income2010- 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%201917,795,347 122,393,330 6,314,196 3,761,150 10,422,338 70,710,436 4,636,444 2,016,089 6,300,202 244,349,532 103,869 2,352 3,585,869,487 6.81%Percent of Total Debt7.28% 50.09% 2.58% 1.54% 4.27% 28.94% 1.90% 0.83% 2.58% 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.Census information is now found on an updated webpage (data.census.gov/cedsci/ (2020) (2) City of South Bend estimated personal income is computed as estimated City population x City of South Bend Median Household Income from U.S. Census Bureau,2012 - 2016 American Community Seruvery 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 M2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Governmental Activities DebtCapitalLeasesNotes/LoansPayableMortgageBondsRevenueBondsGeneralObligationBonds $20 M $40 M $60 M $80 M $100 M $120 M $140 M2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Business-Type Activities DebtCapitalLeasesNotes/LoansPayableMortgageBondsRevenueBonds256 City of South Bend, IndianaComputation of Direct and Overlapping Debt December 31, 2019Percentage AmountRatio of Debt/ Ratio of Debt/Gross Applicable to Applicable to Debt Per Net Assessed PersonalDebtSouth BendSouth BendCapitaValueIncomeDirect Debt:City of South BendGeneral Obligation Bonds 17,795,347$ 100.00% 17,795,347$ Revenue Bonds - Governmental Activities 122,393,330 100.00% 122,393,330$ Mortgage Bonds - Governmental Activities 6,314,196 100.00% 6,314,196 Notes Payable - Governmental Activities 3,761,150 100.00% 3,761,150 Capital Leases - Governmental Activities 10,422,338 100.00% 10,422,338 Total Direct Debt and Lease Obligation Debt 160,686,361 1,547$ 5.80% 4.21%Overlapping Debt (1)South Bend Community School Corporation 75,854,031$ 53.41% 40,513,638$ South Bend Public Transport 849,482 64.07% 544,263 St. Joseph County Public Library 18,870,000 50.06% 9,446,322 St. Joseph County Airport Authority 8,435,000 29.14% 2,457,959 St. Joseph County 100,222,989 29.14% 29,204,979 St. Joseph County Solid Waste Management 395,911 29.14% 115,368 Penn-Harris-Madison School Corporation 54,475,949 2.67% 1,454,508 Mishawaka-Penn-Harris Public Library 1,895,000 2.20% 41,690 Total Overlapping and Underlying Direct Debt and Lease Obligations 83,778,727 807$ 3.02% 2.20%Total Direct Debt and Lease Obligation Debt and Overlapping and 244,465,088$ 2,354$ 8.82% 6.41%Underlying Direct Debt and Lease ObligationsRatio FactorsNet Assessed Valuation (2017 payable 2018) 2,770,936,681 Population - 2010 Census 103,869 South Bend Median Household Income 2016 36,711 Estimated South Bend Total Personal Income (2 x 3) 3,813,134,859 (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/)257 City of South Bend, Indiana Last Ten Fiscal Years December 31, 2019 Total Ratio of Debt Service Fiscal Total Debt Governmental Fund To Governmental Fund Year Principal Interest Service Expenditures Expenditures 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 14,124,590 5.06% 2019 942,298 562,846 1,505,144 216,480,126 0.70% 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 258 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 Capita2009/2010101,168 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 18,737,645 18,737,645 0.81%185 2017/2018101,168 2,416,457,221 - - - 0.00%- 2018/2019102,026 2,770,936,681 17,795,347 - 17,795,347 0.64%174 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 Capita259 Projected 2011 B 20132015 Hotel/Motel Century Center Century Center Century CenterEstimatedTaxRefunding Refunding Energy Conservation Total Annual ExcessEstimatedYearRevenuesBonds (1)BondsBondsDebt ServiceFundsCoverage2020 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 Coverage260 City of South Bend, Indiana Last Ten YearsGrossNet RevenueOperating Operating Available forDebtYearRevenueExpenses (1)Debt ServicePrincipalInterestTotalCoverage2010 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%2019 20,787,828 13,420,538 7,367,290 6,885,735 925,031 7,810,767 94.32%(1) Operating expenses exclude depreciation.Operating revenue used to make debt service payments is obtained primarily through monthly user charges to wateSource - City of South Bend Comprehensive Annual Financial Report. Schedule of Revenue Bond CoverageWater Utility BondsDebt Service Requirements261 City of South Bend, Indiana Last Ten YearsGrossNet RevenueOperating Operating Available forDebtYearRevenueExpenses (1)Debt ServicePrincipalInterestTotalCoverage201025,444,404 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 7,892,085 2,052,348 9,944,433 238.46%201942,455,078 22,828,605 19,626,473 6,652,079 1,873,664 8,525,743 230.20%(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 Requirements262 City of South Bend, IndianaMunicipal Sewage Works2010201120122013201420152016201720182019Capacity (MGD)48 48 48 48 48 48 48 48 48 48 Average Daily Flow30.86 35.80 31.77 30.69 32.00 30.20 43.87 35.80 38.47 37.72 Peak Flow62.00 72.50 63.70 62.50 68.50 57.70 67.80 62 71 71 Annual Flow (MG)11,264 13,068 11,596 11,203 11,677 11,023 16,014 13,067 14,042 13,077 Number of Customers - South Bend Municipal Sewage WorksTotal NumberYearof Customers201038,455 201139,027 201239,068 201339,322 201439,461 201539,763 201640,073 201740,543 201840,679 201940,547 Source: City of South Bend Environmental Services DepartmentAnnual Wastewater Flow Data263 City of South Bend, Indiana Statement of City-Owned Utility Debt December 31, 2019 South Bend Municipal Sewage Works Sewage Works State Revolving Fund (SRF) Loan of 2009 1,748,401$ Sewage Works Revenue Bonds of 2010 5,925,000 Sewage Works Revenue Bonds of 2011 14,535,000 Sewage Works Revenue Bonds of 2012 17,660,000 Sewage Works Revenue Bonds of 2013 A 3,450,000 Sewage Works Refunding Revenue Bonds of 2015 17,200,000 Total Sewage Utility Debt 60,518,401 South Bend Municipal Waterworks Waterworks Revenue Bonds of 2009, Series A State Revolving Fund (SRF) Loan 267,688$ Waterworks Revenue Bonds of 2009, Series B Indiana Bond Bank 2,814,257 Waterworks Revenue Bonds of 2012 1,235,000 Waterworks Revenue Refunding Bonds of 2012, Series B 5,840,000 Waterworks Refuding Bonds of 2016 2,035,000 Total Water Utility Debt 12,191,945 Total Utility Debt 72,710,346$ Source: City of South Bend Finance Department 264 City of South Bend, Indiana Operating Revenues 42,455,078$ Less: Operation and Maintenance Expenses (Net of Depreciation) (22,828,605) Net Revenues Available for Debt Service 19,626,473 Estimated Combined Annual Debt Service 8,525,743 Coverage - $11,100,730$ Coverage - %230.20% Estimated Debt Service Coverage Calculation of Sewage Works December 31, 2019 265 City of South Bend, Indiana Operating Revenues 20,787,828$ Less: Operation and Maintenance Expenses (Net of Depreciation) (13,420,538) Net Revenues Available for Debt Service 7,367,290 Estimated Combined Maximum Annual Debt Service 7,810,767 Coverage - $(443,477)$ Coverage - %94.32% December 31, 2019 Estimated Debt Service Coverage Calculation of Water Utility 266 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 2019 43,322,664 34.18%14,808,703 Total 147,829,133$ 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. 267 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 2029 34,847,289 41.39%14,422,913 Total 143,977,953$ 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. 268 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 2029 21,678,675 48.14%10,435,269 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. 269 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/a203715,541,918 - - - - - 15,541,918 n/aTotal248,546,832$ 353,970$ 1,680,244$ 7,015,175$ 6,193,296$ 15,242,685$ 233,304,147$ 1630.60%Note: These payments include principal and interest.Source: City of South Bend Finance DepartmentStatement of Estimated Cash Flow and Debt Service Coverage (COIT)270 City of South Bend, Indianant 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/a203816,066,248 - - - 16,066,248 n/aTotal267,960,310$ 2,738,526$ 6,679,541$ 9,418,067$ 258,542,243$ 2845.17%Note: These payments include principal and interest.Source: City of South Bend Finance Department271 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 - - - 2018/2019 - - - (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. 272 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. 273 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)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%2019 102,026 0.85% 32,511 -9.08% 15,232 3.62% 47,244 3.42%32.8 16,725 -2.90%Sources:(1) U.S. Census Bureau, 2010 Census information (http://factfinder.census.gov/). 2017 information not available. - Now known as data.census.gov/cedsci/(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.274 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) 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% 2019 159,616 -0.84%5,445 -9.07%3.41% 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. 275 City of South Bend, IndianaEmployment By Type and InLast TeDescription200920102011201220132014201520162017Total employment165,304 163,945 166,847 165,809 165,629 168,314 171,852 175,721 176,231 By Type:Wage and salary employment 135,840 134,643 136,844 136,390 136,105 138,475 141,683 144,810 145,127 Proprietors employment 29,464 29,302 30,003 29,419 29,524 29,839 30,169 30,911 31,104 Farm proprietors employment1,329 1,340 1,342 1,305 1,310 1,303 1,295 1,292 1,277 Nonfarm proprietors employment 28,135 27,962 28,661 28,114 28,214 28,536 28,874 29,619 29,827 By Industry:Farm employment1,765 1,758 1,770 1,685 1,692 1,686 1,690 1,674 1,633 Nonfarm employment163,539 162,187 165,077 164,124163,937 166,628 170,162 174,047 174,598 Private nonfarm employment 145,200 143,893 146,880 146,807 147,148 150,006 153,455 157,232 157,803 Forestry, fishing, and related activities(D) 245 270 301 287 (D) (D)(D) (D)Mining96 117 105 154 173 (D) (D)(D) (D)Utilities(D) (D) (D) (D) (D) (D) (D)(D) (D)Construction7,988 6,909 6,928 6,631 6,811 6,827 7,341 7,736 8,216 Manufacturing16,516 16,280 17,619 17,655 17,139 17,523 18,098 18,444 18,670 Wholesale trade7,057 7,168 7,250 7,097 6,870 7,265 7,477 7,678 7,064 Retail trade18,105 17,711 17,813 17,665 17,612 17,735 17,912 18,186 17,968 Transportation and warehousing(D) 4,332 E (D) (D) (D) (D) (D)(D) (D)Information(D) 2,227 2,080 2,114 2,265 2,266 2,147 2,053 1,993 Finance and insurance6,988 6,814 7,021 6,796 6,212 6,055 6,143 6,188 6,668 Real estate and rental and leasing6,128 5,928 6,100 5,986 6,064 6,271 6,225 6,502 6,423 Professional, scientific, and technical services 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 1,246 E 1,306 E 1,403 E 1,513 E 2,194 2,331 2,390 (D) 2,801 Administrative and waste management services8,108 8,524 8,356 7,912 7,785 8,142 8,169 8,657 8,442 Educational services13,067 13,198 E 13,747 14,121 (D) (D) (D) 15,284 (D)Health care and social assistance20,882 20,332 E 21,256 21,870 (D) (D) (D) 23,679 (D)Arts, entertainment, and recreation2,655 2,625 2,811 2,767 2,809 2,749 2,742 2,852 3,132 Accommodation and food services10,945 11,021 11,576 11,816 12,189 12,348 12,811 13,248 13,200 Other services, except public administration (D) 9,728 10,031 10,038 9,939 10,316 10,385 10,569 10,512 Government and government enterprises 18,339 18,29418,197 17,317 16,789 16,622 16,707 16,815 16,795 Federal, civilian 1,241 1,265 1,090 1,071 1,010 962 944 952 972 Military1,013 1,003 1,043 1,006 990 1,002 1,023 1,005 972 State and local16,085 16,026 16,064 15,240 14,789 14,658 14,740 14,858 14,851 State government3,350 3,448 3,555 3,483 3,272 3,096 3,077 3,109 3,128 Local government12,735 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/)* 5/2019: 2018 information not available yet* 5/2020: 2019 information not available yet; filled in for year 20182 - 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 oftheir 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 adjacent counties having a high degree of social and economic integration with the core counties as measured through commuting ties.276 City of South Bend, IndianaLast Ten YearsAmount inBillions St. Joseph Co. IndianaU.S. St. Joseph Co. IndianaU.S.Calendar Personal Personal Personal Personal Personal PersonalYearIncomeIncomeIncomeIncomeIncomeIncome20109,042 220,157 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%201812,908 312,150 17,572 3.50%3.70%4.47%201912,908 331,486 18,817 0.00%6.19%7.09%3.34%4.22%4.40%3.04%4.07%4.24%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.* 5/2019: 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 Increase277 City of South Bend, Indiana20192010Number of Percent Number of Percent EmployerType of BusinessEmployeesof TotalRankEmployeesof TotalRankBeacon Health System (Memorial) (2)Health Care7,000 4.35% 1 5,190 3.89% 2 University of Notre DameHigher Education6,371 3.96% 2 4,069 3.05% 1 South Bend Community School Corp (2)Public Schools2,777 1.73% 3 3,489 2.61% 3 Indiana University South BendHigher Education1,277 0.79% 6 1,489 1.12% 6 St. Joseph CountyGovernment1,348 0.84% 4 1,141 0.86% 7 City of South BendGovernment1,290 0.80% 5 1,132 0.85% 8 Four Winds Casino (2)Casino and restaurants1,250 0.78% 7 - 0.00%AM General CorporationManufacturing/Assembly976 0.61% 8 2,550 1.91% 4 Honeywell Aerospace (2)Aerospace Manufacturing 850 0.53% 9 700 0.52% 10 Press Ganey (2)Health Care Management 688 0.43% 10 - 0.00%Saint Joseph Health SystemHealth Care2,534 1.90% 5 The Diocese of Fort Wayne/South BendParochial Schools1,698 1.27% 5 South Bend Medical FounationHealth Care- 757 0.57%9 Total Number of Employees 23,827 14.80%24,749 18.55%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, 2018278 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. 279 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 Manufacturing Total 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)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%201985 23,322 17 72,746 - - 1 60,000 156,068 131.54%Source - Consolidated City/County Building Department(1) - Increase in commercial construction due to major construction taking place at the University of Notre Dame.280 City of South Bend, IndianaCapital Asset and Infrastructure Statistics by Function/Program Last Ten Fiscal YearsFunction/program2010201120122013201420152016201720182019PoliceStations1 1 1 1 1 1 1 1 1 1 Patrol units25 19 19 19 19 19 19 19 19 19 FireStations11 11 11 11 11 11 11 11 11 12 Training Center- - - - 1 1 1 1 1 2 Rescue units33 33 33 33 33 33 33 33 33 33 Refuse collectionCollection trucks23 23 19 19 19 19 19 - - - Other public worksStreets (miles)532 499 525 525 525 525 525 525 525 525 Streetlights2,500 2,500 2,700 2,700 3,000 3,015 3,015 3,015 3,015 3,015 Traffic signals162 164 165 167 162 158 164 163 163 163 Parks and recreationAcreage1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,300 1,300 1,300 Playgrounds23 23 23 23 23 23 23 23 23 24 Baseball/softball diamonds27 27 27 27 27 27 27 27 27 27 Soccer/football fields17 17 19 19 19 19 19 19 19 19 Swimming pools2 2 2 2 2 2 2 2 2 2 Splash Pads5 5 5 6 6 6 7 8 8 8 Community center 5 5 5 5 3 3 3 4 4 4 WaterWater mains (miles)580 582 583 584 583 583 583 586 587 587 Fire hydrants5,345 5,377 5,401 5,436 5,448 5,439 5,459 5,539 5,550 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)534 534 528 526 527 527 527 535 537 537 Storm sewers (miles)127 127 133 133 133 133 155 155 155 155 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 31,281 City of South Bend, Indiana Last Ten Fiscal YearsFunction/ Program2010201120122013201420152016201720182019Police:Physical arrests 3,077 3,626 3,174 2,959 2,608 2,483 2,342 2,229 2,664 2,028 Parking violations979 904 1,051 1,019 299 691 480 919 548 293 Traffic violations14,163 4,236 7,561 2,180 1,487 4,327 6,437 4,701 2,580 n/aFire:Emergency responses15,578 15,408 15,720 15,865 15,902 15,340 15,886 16,829 22,659 n/aFires extinguished225 251 214 220 227 213 236 339 278 n/aInspections4,233 3,553 3,325 2,273 3,133 3,778 2,148 2,522 3,525 n/aRefuse collection:Refuse collected (tons per day) (1) 120 123 128 122 128 149 139 142 142 148 Other public works:Street resurfacing (miles)20 18 17 21 22 17 20 19 21 21 Potholes repaired (tonnage)380 332 117 691 826 526 462 363 476 878 Parks and recreation:Athletic field permits issued381 227 133 93 120 113 427 142 103 428 Fitness Center Admissions60,118 67,408 61,002 63,671 67,428 64,547 67,294 73,405 68,306 71,262 Water:New billable housing starts179 144 160 242 141 108 189 214 119 149 Water mains breaks76 60 66 80 134 99 53 45 67 86 Average daily consumption 15,955 15,600 16,600 15,300 11,000 14,500 14,640 14,358 14,640 14,400 (thousands of gallons)Wastewater:Average daily sewage treatment 30,861 35,800 31,770 30,690 31,991 30,200 43,874 35,800 37,110 37,730 (thousands of gallons)Sources: Various city departments(1) 2007 and prior years were in cubic yards Operating Indicators by Function/ProgramAs of December 31,282 City of South Bend, IndianaDepartment2010201120122013201420152016201720182019General Government:Mayor's Office 7 7 6 6 7 7 6 7 7 7 City Clerk's Office5 5 5 5 5 5 5 5 5 4 Common Council (elected officials, part-time)9 9 9 9 9 9 9 9 9 9 Administration and Finance26 27 22 20 21 18 26 21 23 23 Legal Department9 9 9 10 10 12 11 10 10 8 Engineering & Sustainability19 17 15 13 14 16 18 18 23 25 Safety and Risk- - 3 3 3 2 2 2 3 2 Human Rights- - 6 6 6 6 6 5 5 5 Public Safety:Police Department293 293 291 291 295 300 287 283 283 270 Communication Center38 35 35 33 34 - - - - - Fire Department255 258 249 255 257 259 268 272 262 265 Building Maintenance3 3 - - - - 3 2 4 3 Culture and Recreation:Parks and Recreation (2)113 114 114 113 87 88 89 94 90 94 Convention and Events Management (1)13 14 14 14 14 14 12 9 18 17 Economic Development:Department of Community Investment26 25 24 26 25 25 23 22 24 28 Highways and Streets:Street Department52 56 52 60 59 53 59 55 54 57 Traffic & Lighting- - - - - - - - - - Enterprise Funds:Water Works75 74 73 70 68 67 65 67 63 63 Wastewater51 49 46 45 42 43 44 45 42 43 Organic Resources (formerly in Wastewater) - - 6 6 6 6 6 6 6 6 Sewer35 36 39 34 33 30 31 38 39 41 Solid Waste26 23 24 26 22 21 25 23 22 23 Building Department13 13 13 14 13 13 14 14 15 13 Code Enforcement/Animal Care & Control 23 25 25 24 23 23 26 29 26 31 Internal Service Fund:311 Call Center- - - 5 7 7 7 6 7 6 Innovation and Technology (3)- - - - - - - 17 20 22 Central Services41 41 42 43 38 36 37 40 39 34 Total Positions 1,132 1,133 1,122 1,131 1,098 1,060 1,079 1,099 1,099 1,099 Full-Time Equivalent City Government Employees by DepartmentLast Ten Fiscal YearsAs of December 31,283 City of South Bend, IndianaDepartment2010201120122013201420152016201720182019Summary by Activity General Government 75.00 74.00 75.00 77.00 82.00 82.00 90.00 100.00 112.00 83.00 Public Safety589.00 589.00 575.00 579.00 586.00 559.00 558.00 557.00 549.00 538.00 Culture and Recreation126.00 128.00 128.00 127.00 101.00 102.00 101.00 103.00 108.00 111.00 Economic Development26.00 25.00 24.00 26.00 25.00 25.00 23.00 22.00 24.00 28.00 Highways and Streets52.00 56.00 52.00 60.00 59.00 53.00 59.00 55.00 54.00 57.00 Enterprise Funds223.00 220.00 226.00 219.00 207.00 203.00 211.00 222.00 213.00 220.00 Internal Service Fund41.00 41.00 42.00 43.00 38.00 36.00 37.00 40.00 39.00 62.00 Total Positions 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 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 EconomicDevelopment284 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 $750/0%.38 per hour 2008 3.50% 43,496 3.50% 43,285 3.00%3.00% 2009 2.20% 44,453 2.00% 44,150 2.00%2.00% 2010 0.00% 44,453 6.80% 47,150 2.00%2.00% 2011 11.50% 49,563 4.06% 49,066 2.00%0.00% 2012 2.00% 50,554 2.00% 50,047 2.00%2.00% 2013 2.50% 51,818 3.00% 51,550 2.00%2.00% 2014 2.50% 53,113 3.00% 53,100 2.00%2.00% 2015 2.20% 54,281 2.20% 54,268 2.00%2.00% 2016 2.20% 55,475 2.20% 55,462 2.00%2.00% 2017 2.50% 56,861 2.20% 56,682 2.00%1% + 1.5% for PERF 2018 2.00% 57,998 2.00% 57,957 2.00% .75% and 1.5% INPRS Contribution 2019 2.00% 59,158 2.00% 59,116 2.00% .75% and 1.5% INPRS Contribution Salary Rate Comparison 1990 - 2019 ---1st Class Fire Fighter-------1st Class Patrol Officer---- 285 City of South Bend, Indiana Limits of Type of Coverage Liability Liability Comprehensive General Liability Statutory Police Professional Liability Statutory Ambulance Malpractice Liability Statutory Premises Liability Statutory (Clay Utilities, Century Center, Parking Garages) CGL - Stadium Statutory Liquor Liability 1/1/19-1/1/20 1,000,000$ 2,280$ Premium Special Events (Arbor Day/Rum Village Aerial) 4/20/19-4/20/20 1,000,000$ 2,000$ Premium Crime Public Employee Dishonesty 12/31/19-12/31/20 1,000,000$ 9,205$ Premium Property 7/1/19-7/1/20 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 1/15/19-1/15/20 839,200$ 9,370$ Premium Eddy Street Commons Parking Garage 3/2/19-3/2/20 Building & Infrastructure 36,000,000$ 27,672$ Premium Business Income & Rental Value 15,000,000$ Flood 25,000,000$ Earthquake 25,000,000$ Other 1/1/19-1/1/20 Workers Compensation Statutory Third Party Fee Statutory 53,000$ Fee Excess Over Self-insured Statutory 147,764$ Premium/Fee $400,000 Retention Each Accident Source: City of South Bend Administration & Finance Department Gibson Insurance Company Insurance Coverage 2019 Self-Insured Annual Premium Estimated Self-Insured Self-Insured Self-Insured 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 286 City of South Bend, Indiana 2016 2017 2018 2019 2016 2017 2018 2019 Authorized Officers 247 230 237 228 Traffic Signals 164 163 163 163 Vehicles 363 340 428 452 Street Lights (City maintained)3,015 3,015 3,015 3,015 Special Officer Groups:Miles of Streets 525 525 525 525 K-9 Patrols 8 7 7 7 Miles of Sidewalks 695 695 707 707 SWAT Team 17 18 18 18 Miles of Alleys 398 398 398 398 NEST - Special Neighborhood Unit 9 12 12 12 Miles of Sanitary Sewers and Storm Drains 691 691 692 692 Motorcycle Patrol Officers 7 6 8 8 City Owned Vehicles & Related Units 1,183 1,190 1,125 1,274 Bomb Squad 3 3 3 3 Trash Picked Up Per Week (in tons)556/wk 568/wk 568/wk 568/wk Crime Prevention Officers 3 4 3 3 Crime Data: Murders 15 17 9 11 2016 2017 2018 2019 Rapes 70 93 66 67 Work orders for sign maintenance, Robbery 388 345 365 277 installation or removal 3,119 1,641 1,642 n/a Aggravated Assault 565 611 782 711 Miles of yellow and white paint 288 297 311 n/a Residential Burglary 955 830 685 970 Pre-formed plastic arrows used for Non-residential Burglary 286 362 350 street markings 91 46 216 n/a Larceny 3,359 3,438 3,288 2,956 Crosswalk painting at intersections 487 387 220 n/a Auto Theft 566 469 510 480 Turn arrows in turn lanes - - Arson 47 37 47 71 Detour routes - - Calls for Service 103,183 99,542 96,853 98,536 Temporary No Parking postings 462 499 512 n/a Dispatches 103,183 99,542 96,853 98,536 Built Portables - - Miles Driven 3,137,616 3,038,700 2,993,092 3,098,275 Railroad Crossings 7 7 4 n/a Arrests 2,342 2,229 2,664 2,109 Special Signs Built 350 273 532 n/a Barricades set up for events (# of events):86 100 136 n/a Block Parties 47 40 28 n/a 2016 2017 2018 2019 Sworn Firefighters (46 of which are Paramedics) 244 253 255 265 2016 2017 2018 2019 Fire Apparatus 20 20 20 20 Customers 40,043 40,543 40,680 40,547 Hazardous Materials Truck 1 1 1 1 Dry Tons of Sludge produced per year 2,704 2,397 2,565 2,565 Reserve Pumper Trucks 3 3 3 3 Miles of Sanitary Sewer Lines 230 230 232 232 Reserve Ladder Trucks 2 2 2 2 Miles of Storm Sewer Lines 155 155 155 155 River Rescue Boats 3 3 3 3 Miles of Combined Lines (not separated)305 305 305 305 Ambulances 7 7 4 4 Neonatal (Newborn) Units 3 3 3 3 Fire Runs 3,421 3,582 3,894 5,898 2016 2017 2018 2019 Ambulance Runs 14,583 15,442 18,765 15,980 Customers/Meters 40,670 41,200 41,275 41,135 Irrigation Customers 2,973 2,907 2,905 2,902 Wells/Pumps in service 30 27 30 30 Pumping Capacity 53.7 m.g.d. 48 m.g.d. 40 m.p.g. 48 m.g.d. Daily Consumption 14.6 m.g.d. 14.4m.g.d. 14.6 m.g.d. 14.4m.g.d. Peak Demand 26.5 m.g.d. 25.8 m.g.d. 25.1 m.g.d. 23.5 m.g.d. Miles of Distribution Systems 583 586 587 587 Fire Hydrants 5,459 5,539 5,550 5,550 Sewer Utility Water Utility Paid Department established 1887 Miscellaneous Statistics December 31, 2019 Police Department Fire Department Department of Public Works Sign Shop 287 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 2019 417,929 236,274 25,803 Waterford Estates Lodge facilities to seat 500 The Morris Inn facilities to seat 400 On average, more than 1,600 airline passengers travel Aloft facilities to seat 150 through South Bend International every day. The City of South Bend has excellent health care access Commercial airlines with operations at South Bend at costs below the national average and the lowest in the International Airport (market share): Midwest region. The City has one major hospital: 2017 2018 2019 Beacon Health Systems (Memorial Hospital) 525 beds Allegiant Air 31.73% 26.98% 31.47% Delta Connection 45.79% 41.56% 41.56% United Express 20.63% 19.50% 18.78% Access to: American - 10.24%6.72% 3 Major Television Networks: NBC (WNDU), ABC (WBND), and CBS/FOX (WSBT) Charters/Nonscheduled 1.85%1.72%1.47% 1 Public Broadcasting Television Station (WNIT) Total 100.00% 100.00% 100.00% 2 Local Television Stations (WHME, WJSV) 1 Major Newspaper (The South Bend Tribune) 25 Radio Stations Transpo South Bend Public Transportation Corporation South Bend has been the home to the many distinguished 2017 2018 2019 individuals including the following persons: Motor Bus (Fixed Route)Schuyler Colfax, 17th U.S. Vice President Route Miles 291 290 290 John Fogerty, singer Ridership 1,571,446 1,553,926 n/a Michael Warren, actor Miles of Service 1,356,792 1,420,366 n/a Chad Everett, actor Revenue Miles 1,282,475 1,361,525 n/a Sidney Pollack, actor/director Demand Response (ACCESS)Knute Rockne, football coach Ridership 68,572 76,323 n/a John Wooden, basketball coach Total Miles 347,186 395,061 n/a Joe Kernan, former South Bend Mayor and Indiana Governor Revenue Miles 312,417 344,767 n/a Ryan Newman, racecar driver Skylar Diggins, woman's basketball player Other Transportation 43 Trucking Lines, 33 Terminals - Incorporated in 1865 4 Interstate Bus Lines - County Seat of St. Joseph County 4 Major Rail Systems (freight and passenger) - South Bend officially began under the name South Hold, but the name was changed by the Post Office in 1830 to avoid confusion with other communities that used that name. The name South Universities and Colleges Enrollment Bend was used because the City is located at the southernmost 2017 2018 2019 point of the St. Joseph River. University of Notre Dame 12,393 12,393 12,607 - Average High Temperature: Indiana University at South Bend 5,385 5,214 5,563 January 31 degrees Fahrenheit Bethel College 1,650 1,650 1,513 July 83 degrees Fahrenheit St. Mary's College 1,600 1,600 1,548 Holy Cross College 500 500 451 Trine University - South Bend 78 78 78 Purdue Polytechnic Instittute SB 150 120 130 Technical Colleges Enrollment 2017 2018 2019 IVY Tech Community College *5,694 5,547 5,552 Communications Famous Residents Other Miscellaneous Statistics (Continued) December 31, 2019 South Bend International Airport Convention Facilities Health Care 288