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Home My WebLink About2024 Annual Comprehensive Financial Report2024 Annual Comprehensive Financial Report City of South Bend, IN James Mueller, Mayor Kyle Willis, City Controller Paulette Johnson, Deputy City Controller City of South Bend, Indiana Table of Contents Introductory Section Letter of Transmittal............................................................................................................................ 1-6 Organization Chart ................................................................................................................................. 7 List of City Officials ............................................................................................................................... 8 Financial Section Independent Auditor’s Report .......................................................................................................... 9-11 Management’s Discussion & Analysis ............................................................................................12-27 Basic Financial Statements .............................................................................................................33-46 Government-Wide Financial Statements Statement of Net Position Statement of Activities Fund Financial Statements Governmental Funds Balance Sheet Reconciliation of the Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Proprietary Funds Statement of Net Position Statement of Revenues, Expenses, and Changes in Net Position Statement of Cash Flows Fiduciary Funds Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position Notes to the Financial Statements...................................................................................................47-92 Summary of Significant Accounting Policies Note 1 Summary of Significant Accounting Policies Stewardship and Compliance Note 2 Stewardship, Compliance, and Accountability Detailed Disclosures Regarding Assets and Revenues Note 3 Deposits and Investments Note 4 Receivables Note 5 Net Investment in Capital Assets Note 6 Capital Assets Note 7 Interfund Receivables, Payables, and Transfers City of South Bend, Indiana Table of Contents (Continued) Detailed Disclosures Regarding Liabilities and Expenses Note 8 Financed Purchase Agreements Note 9 Long-term Obligations Note 10 Restricted Assets Note 11 Property Held for Resale Note 12 Service Concession Arrangement Note 13 Risk Management Note 14 Subsequent Events Note 15 Conduit Debt Obligations Note 16 Fund Balance Constraints Note 17 Other Postemployment Benefits Note 18 Pension Plans Note 19 Pension Trust Funds 92 Other Note Disclosures Note 20 Closure and Post-closure Care Cost Note 21 Tax Abatements Required Supplementary Information .......................................................................................... 93-115 1925 Police Officers’ Pension Plan Schedule of Investment Returns Schedule of City Contributions Schedule of Changes in the City’s Net Pension Liability and Related Ratios 1937 Firefighters’ Pension Plan Schedule of Investment Returns Schedule of City Contributions Schedule of Changes in the City’s Net Pension Liability and Related Ratios Public Employees’ Retirement Fund Schedule of City Contributions Schedule of the City’s Proportionate Share of the Net Pension Liability 1977 Police Officers’ Pension and Disability Fund Schedule of City Contributions Schedule of the City’s Proportionate Share of the Net Pension Liability 1977 Firefighters’ Pension and Disability Fund Schedule of City Contributions Schedule of the City’s Proportionate Share of the Net Pension Liability Schedule of Changes in the City’s Total OPEB Liability and Related Ratios Notes to Required Supplemental Information Budgetary Comparison Schedules: General Fund and Major Special Revenue Funds Other Supplemental Information ................................................................................................ 116-221 Nonmajor Governmental Funds: Fund Descriptions City of South Bend, Indiana Table of Contents (Continued) Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Budgetary Comparison Schedules: Nonmajor Governmental Funds Nonmajor Enterprise Funds: Combining Statement of Net Position Combining Statement of Revenues, Expenses, and Changes in Net Position Combining Statement of Cash Flows Internal Service Funds: Combining Statement of Net Position Combining Statement of Revenues, Expenses, and Changes in Net Position Combining Statement of Cash Flows Fiduciary Funds: Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position Statistical Section........................................................................................ 216-276 Statistical Section Outline............................................................................................................................. 217 Financial Trends Information............................................................................................................... 218-224 Net Position by Component Changes in Net Position Fund Balances – Governmental Funds Changes in Fund Balances – Governmental Funds Financial Institutions Revenue Capacity Information............................................................................................................. 225-245 Property Tax Levies and Collections Direct and Overlapping Property Tax Rates Detail of Net Assessed Value Assessed Value and Actual Value of Taxable Property Net Assessed Value of Taxable Property Assessed Value of Taxable Property Property Tax Collections – Cash Basis Circuit Breaker Property Tax Cap Credits Principal Property Taxpayers Local Income Tax Revenue: Economic Development Component Local Income Tax Revenue: Certified Shares Component Local Income Tax Revenue: Public Safety Component Total Local Income Tax Certified Shares Distributions by Taxing Unit Ten Largest Water Customers Ten Largest Sewage Works Customers Gasoline Tax Collections – Cash Basis City of South Bend, Indiana Table of Contents (Continued) Wheel and Excise Surtax Collections Hotel/Motel Tax Revenue – Cash Basis – City Contributions Professional Sports Convention Development Area (PSCDA) Tax – Cash Basis Cable Television Franchise Fee Collections – Cash Basis Debt Capacity Information .......................................................................................................... 246-264 Computation of Legal Debt Margin Legal Debt Margin Information Ratios of Outstanding Debt by Type Computation of Direct and Overlapping Debt Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Government Expenditures Ratio of Net General Obligation Bonded Debt to Net Assessed Value and Net Bonded Debt Per Capita St. Joseph County Hotel/Motel Tax Board – Pledged Revenue Coverage Schedules of Revenue Bond Coverage: Water Utility Bonds Wastewater Utility Bonds Municipal Sewage Works Annual Wastewater Flow Data and Number of Customers Statement of City-Owned Utility Debt Estimated Debt Service Coverage Calculation of Water Utility Estimated Debt Service Coverage Calculation of Wastewater Utility Projected Local Income Tax Revenues Certified Shares Component Economic Development Component Public Safety Component Schedule of Estimated Cash Flow and Debt Service Coverage – Local Income Tax Certified Shares Component Economic Development Component Demographic and Economic Information .................................................................................. 265-267 Demographic Statistics Operating Information ................................................................................................................. 268-277 Operating Indicators by Function/Program Capital Asset and Infrastructure Statistics by Function/Program New Construction: Number of Permits and Property Values Full-Time City Government Employees by Department Salary Rate Comparison Insurance Coverage Miscellaneous Statistics 1 1200N COUNTY-CITY BUILDING 227 W. JEFFERSON BLVD. SOUTH BEND, INDIANA 46601-1830 PHONE 574.235.9216 FAX 574.235.9928 CITY OF SOUTH BEND, IN JAMES MUELLER, MAYOR DEPARTMENT OF ADMINISTRATION AND FINANCE April 9, 2026 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 annual comprehensive financial report of the City of South Bend, Indiana (the "City") for the year ended December 31, 2024 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the government’s financial activities are included. Accounting Principles Generally Accepted in the United States of America (US GAAP) require 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 Annual Comprehensive 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, and a list of principal City officials. 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 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), 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. 2 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 2020 U.S. Bureau of the Census population was 103,453. Accordingly, South Bend is classified as a “City of the Second Class” under Indiana statutes (cities with a population of 35,000 to 250,000). The City of South Bend operates with a mayor as chief executive and a nine-member City Common Council composed of six members elected from districts and three members elected at-large. The City of South Bend has a bond rating of AA with Standard & 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 healthcare, agricultural, service, manufacturing, education and other commercial and tourism industries. This diverse economic mix creates varied employment opportunities for the area’s residents while providing insulation via diversification from future economic downturns. The city is approximately 90 miles east of Chicago and 140 miles north of Indianapolis. Accessibility to transportation, including Interstate 80/90, an international airport (which is the second busiest in the State of Indiana) and the South Shore Line has supported economic growth within the community. Proximity to Chicago, the largest rail and intermodal (rail/truck/ocean/inland waterway) transfer point in the country, is a significant advantage to the City of South Bend as is proximity to the University of Notre Dame with its scenic campus located adjacent to the city limits. In 2017, the City of South Bend announced plans to partner with the Federal, State and other local governments to reduce the South Shore Line travel time to downtown Chicago to 90 minutes or less. This project continued to mature in 2019 and 2020, 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 is expected to be transformative to the local economy. St. Joseph County / South Bend - Economic Conditions and Outlook St. Joseph County, with its 2020 U.S. Bureau of the Census population of 272,912, 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 33,487 (12.6% increase) between 1960 and 2020. 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 7.7% between 1990 and 2010. The population of St. Joseph County grew again by 2.2% (5,981 residents) in the last decade between 2010 and 2020. The estimated labor force in St. Joseph County is 132,460 workers (2022, 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 91% of the area’s adult population are high school graduates or higher (similar to the national average of 91.1%) with an estimated 32.1% with a bachelor’s degree or higher (slightly lower than the national average of 37.7%). There are six 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; Holy Cross College; and Ivy Tech Community College. The St. Joseph County 2024 Annual Average Unemployment was 2.7%, which was slightly higher than the state of Indiana unemployment rate of 2.9%. 3 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 2022 Summary, using data from US Bureau of Labor Statistics): Economic Sector Number Employed % of Total Healthcare and Social Assistance 22,450 16.29% Retail Trade 16,000 11.61% Federal, State, & Local Government 13,785 10.00% Manufacturing 13,745 9.97% Accommodation and Food Service 10,988 7.97% Educational Services 10,354 7.51% Professional and Technological Services 7,940 5.76% Construction 7,546 5.47% Wholesale Trade 6,778 4.92% Transportation and Warehousing 6,816 4.94% Administrative and Waste Services 4,486 3.25% Other Services 3,445 2.50% Finance and Insurance 3,525 2.56% Arts, Entertainment, and Recreation 3,354 2.43% Management 2,401 1.74% Information 1,705 1.24% Real Estate, Rental, Leasing 1,588 1.15% Agriculture, Forestry, Fishing, Hunting, Mining 686 0.50% Utilities 245 0.18% Total 137,837 100% According to the United States Census Bureau, St. Joseph County presently has an estimated 106,330 households with a median household income of $59,325, which is lower than both the State of Indiana median household income ($62,723) and the United States median household income ($74,580). 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 2020 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 4 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 2024, the median sales price for a single-family home in the South Bend-Mishawaka Statistical Area was $213,914 as compared to a median sales price of $346,253 in Chicago and $243,288 in Indianapolis. The national median sales price in Q1 2024 was $469,000. Between January 2016 and December 2024, the City of South Bend has seen over $900 million in private investment and the announcement of over 3,500 new jobs. By providing state of the art innovative infrastructure and, in some cases, offering targeted assistance the City can stimulate private investment, creating business opportunities and jobs. The City has had many significant economic development projects to include new downtown residential housing, mixed use developments, downtown hotels, and high-tech industrial projects. City investments encourage new start-up businesses, strengthen existing business, attract new jobs, increase assessed value and emphasize direct investment in hard-to-develop areas. Efforts have been and will continue to focus on implementing the comprehensive plans for our neighborhood and downtown areas. The South Bend Community School Corporation serves the entire City and some of the surrounding area and has a current enrollment of approximately 14,900 students in grades pre-kindergarten through 12. An estimated 9,041 students attend private or parochial schools within the City. The six 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; 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 that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to 5 allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. On March 22, 2021 the South Bend Common Council approved an updated 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, 2024 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 expenditure classification within funds. The Mayor and Common Council may transfer appropriations from one major expenditure classification to another within a department by ordinance if the total appropriations for that fund are not exceeded. Additional appropriations in excess of the original budget must be approved by the Mayor and Common Council and are also submitted to the DLGF for either approval or acknowledgement (depending on the fund). Additional appropriations for funds approved by the Redevelopment Commission do not require DLGF approval. The deadline for adoption of the annual budget is November 1. The city’s fiscal year begins on January 1. The City maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts do not lapse at year end and are carried over to the following year as a part of the subsequent year’s budget. Property Tax Controls In addition to budgetary and other controls established by Indiana law, the City must operate within specific and rigid controls governing the amount of property tax it may levy. The property tax control program, which began in 1973, limits the amount of property tax that may be levied by each unit of government in its legally budgeted funds. The total amount of property tax levied by the unit may increase by the six-year average annual growth in Indiana personal non-farm income, as calculated by the U.S. Bureau of Economic Analysis, with a 6% maximum. 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 gross 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 $45 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. 6 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 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 Acknowledgments The preparation of the Annual Comprehensive Financial Report (ACFR) was made possible by the dedicated service of the City’s departmental directors of finance and the staff of the Department of Administration and Finance. Each Director of Department Finance and member of the Department has our sincere appreciation for the contributions made in the preparation of this report. In addition, we would like to thank the audit staff at Forvis Mazars for their hard work and dedication in this effort. In closing, without the leadership and support of Mayor James Mueller, City Department Heads, Directors of Department Finance and members of the City of South Bend Common Council, preparation of this report would not have been possible. Kyle Willis City Controller Sincerely, 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, 2022 Residents of South Bend Common Council Mayor Administration & Finance (City Controller) Finance Treasury Purchasing Human Resources Central Services Diversity & Inclusion (Diversity & Inclusion Officer) 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 Streets & Sewers Water Utility 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 (Executive Director) Redevelopment Commission 2 / Redevelopment Authority 2 Growth & Opportunity Engagement & Economic Resources Planning Neighborhoods Neighborhood Development Neighborhood Code Enforcement / NEAT Crew Animal Resource Center Building Inspections & Permitting Sustainability Venues, Parks & Arts (Executive Director) Board of Park Commissioners 1 Park Maintenance & Recreation Community Civic Center Board of Managers 3 Century Center Morris Performing Arts Center & Palais Royale City Clerk 7 CITY OFFICIALS Office Official Term Mayor James Mueller Controller Kyle Willis City Clerk Bianca Tirado President of the Board of Public Works Elizabeth Maradik Common Council Members 1st District Canneth Lee 2nd District Ophelia Gooden- Rogers 3rd District Sharon McBride 4th District Troy Warner 5th District Sherry Bolden-Simpson 6th District Sheila Niezgodski At Large Karen L. White At Large Dr. Oliver Davis At Large Rachel Tomas Morgan 01/01/2024 to 12/31/2027 2/6/2023 to 12/31/2024 01/01/2024 to 12/31/2027 01/01/2024 to 12/31/2024 07/01/2020 to 12/31/2027 01/01/2020 to 12/31/2027 02/24/2018 to 12/31/2027 01/01/2020 to 12/31/2027 01/01/2024 to 12/31/2027 01/01/2020 to 12/31/2027 01/01/2016 to 12/31/2027 01/01/2024 to 12/31/2027 01/01/2020 to 12/31/2027 8 Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited Independent Auditor’s Report The Mayor and City Council City of South Bend, Indiana South Bend, Indiana Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of South Bend, Indiana (City), as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of other auditors, the accompanying 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 units, each major fund, and the aggregate remaining fund information of the City, as of December 31, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of South Bend Public Transportation Corporation, the discretely presented component unit of the City. 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 South Bend Public Transportation Corporation as the discretely presented component unit, is based solely on the report of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 9 The Mayor and City Council City of South Bend, Indiana In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison, pension, and other postemployment benefit information as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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. 10 The Mayor and City Council City of South Bend, Indiana Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 9, 2026, 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. Indianapolis, Indiana April 9, 2026 11 Management’s Discussion and Analysis 12 Management’s Discussion and Analysis December 31, 2024 The management of the City of South Bend, Indiana (the “City”) is pleased to present 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, 2024. Readers should note that 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 Annual Comprehensive Financial Report. 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 2020 U.S. Bureau of the Census population for the City of South Bend was reported as 103,453 and the 2020 Census population for St. Joseph County was reported as 272,912. Accordingly, South Bend is classified as a “Second Class City” under State of Indiana statutes, defined as cities with a population between 35,000 and 600,000 residents. The City of South Bend and St. Joseph County is a vibrant and diverse area with a strong local economy based on a mix of agricultural, manufacturing and service, higher education, health care and other commercial and tourism-based industries. The diverse economic mix creates varied employment opportunities for residents while providing insulation from economic downturns through diversification. South Bend is home to the University of Notre Dame. The City of South Bend provides a full range of general governmental services to its residents. Services include general government, public safety, street construction and maintenance, infrastructure construction and maintenance, parks and recreation services, arts and culture, and sanitation services. In addition, the City provides Water Utility, Wastewater Utility and Solid Waste services to commercial and residential properties within the City. City operations also include the Century Center convention venue, Morris Performing Arts Center, Palais Royale Ballroom, Studebaker National Museum, and Public Parking Garages within the City footprint. The City of South Bend governmental structure includes elected officials as follows with defined management and legislative authority in compliance with Indiana law. Mayor Chief Executive Officer 4-year term Common Council 9 member legislative body 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 expired on December 31, 2023. 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. 13 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 Financial Highlights •Government-wide net position was $605,764,487 as of December 31, 2024. •Government-wide net position increased by $52,477,748 or 9.5% during fiscal year 2024. Governmental activity net position increased by $42,699,257, or 13.9% and business-type activity net position increased by $9,778,491 or 4.0% during fiscal year 2024. The increase in government- wide net position is primarily due to improvements in pension liabilities and establishment of capital assets. •Total assets and deferred outflows of resources as of December 31, 2024 of $1,274,230,540 increased by $148,161,522 or 13.2% as compared to total assets and deferred outflows of resources as of December 31, 2023. The increase is primarily attributable to continued increases in cash on hand, stemming from debt issuance and an operating surplus in 2024. •Total liabilities and deferred inflows of resources as of December 31, 2024 of $668,466,053 increased by $95,683,774 or 16.7% as compared to total liabilities and deferred inflows of resources as of December 31, 2023. This increase was primarily due to the issuance of new debt in 2024. •As of December 31, 2024, the government-wide net position of $605,764,487 has $381,935,423 invested in capital assets (net of debt) which is not available for spending, $49,062,831 classified as restricted for debt service; capital outlays; and other uses; and $174,766,233 classified as unrestricted. •Government-wide revenues received in fiscal 2024 totaled $381,312,742, an increase of $44,200,304 or 13.1% compared to government-wide revenues received in fiscal 2023. Governmental activity revenues increased by $37,631,589 or 15.1%, and business-type activity revenue increased by $6,568,715, or 7.5%. •Government-wide expenses in 2024 totaled $328,834,994, an increase of $2,308,012 or 0.7% compared to expenses in 2023. Governmental activity expenses decreased by $41,387 or 0.0%, while business-type activity expenses increased by $2,349,399 or 2.9% compared to fiscal 2023. •The financial statements contain information for a single discrete component unit, the South Bend Public Transportation Corporation (Transpo). •Explanatory commentary concerning the changes in assets, liabilities, revenues, and expenditures can be found in later sections of this MD&A. 2024 2023 2024 2023 2024 2023 2024 2023 Assets/deferred outflows 932,759,758$ 812,439,405$ 341,470,782$ 313,629,613$ 1,274,230,540$ 1,126,069,018$ 40,194,531$ 42,674,880$ - Liabilities/deferred inflows 583,442,218 505,821,122 85,023,835 66,961,157 668,466,053 572,782,279 5,523,825 5,027,814 - Net Position - Net investment in capital assets 211,855,858 124,800,129 171,219,480 169,948,896 383,075,338 294,749,025 32,977,362 36,363,853 Restricted 16,248,347 11,149,383 32,814,484 27,131,095 49,062,831 38,280,478 - - Unrestricted 121,213,335 170,668,771 52,412,983 49,588,465 173,626,318 220,257,236 1,693,344 1,283,213 - Total Net Position 349,317,540$ 306,618,283$ 256,446,947$ 246,668,456$ 605,764,487$ 553,286,739$ 34,670,706$ 37,647,066$ Change vs. prior year 42,699,257$ 5,026,281$ 9,778,491$ 5,559,175$ 52,477,748$ 10,585,456 (2,976,360)$ 1,692,457$ Expenses 244,844,123 244,885,510 83,990,871 81,641,472 328,834,994 326,526,982 2,308,012 15,005,690 Revenues 287,543,380 249,911,791 93,769,362 87,200,647 381,312,742 337,112,438 44,200,304 16,698,147 Governmental Activities Business-type Activities Government-wide Component Units 14 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 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, 2024. The difference between total assets and deferred outflows of resources less total liabilities and deferred inflows of resources is reported as “net position,” and can generally be thought of as the net worth of the City. Increases in net position generally indicate an improvement in financial position while decreases in net position may indicate a deterioration of financial position. Statement of Activities This statement serves the purpose of the traditional income statement. It provides consolidated reporting of the results of all activities of the City of South Bend for the year ended December 31, 2024. 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, the Morris Performing Arts Center, the building department, 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, the City of South Bend Building Corporation, the Urban Enterprise Association of South Bend, and the VPA Foundation. 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. 15 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 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 six (6) major governmental funds (General, Parks and Recreation, Local Income Tax Public Safety, Local Income Tax Economic Development, American Rescue Plan, and River West TIF) and seventy-five (75) 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 and Wastewater utility, which are considered major enterprise funds. Data from the other five (5) nonmajor enterprise funds (Century Center, Consolidated Building Department, Parking Garage, Solid Waste, and Morris Performing Arts Center) 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 division that accounts for expenses related to fuel, vehicle 16 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 repairs, facilities management, 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 custodial funds (Morris / Palais Box Office Fund and Police Distributions Payable Fund). Pension Trust Fund Operations The vast majority of 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. See Note 18 and the items in the Required Supplementary Information section for more information. 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. These notes should be considered to be a part of the overall financial statements. Other Information In addition to the basic financial statements and accompanying notes and disclosures, this ACFR presents supplementary information (“Required Supplementary Information” or “RSI”) immediately following the basic financial statements. 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 ACFR. Other supplementary information is found in the Statistical Section. 17 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 Government-wide Financial Statements The following financial analysis will focus on the statement of net position and statement of changes in net position of the City’s governmental and business-type activities. Statement of Net Position •As of December 31, 2024, total assets and deferred outflows exceeded liabilities and deferred inflows by $605,764,487, an increase of $52,477,748, or 9.5%, from the net position level as of December 31, 2023. •Governmental activities net position of $349,317,540 increased by $42,699,257, or 13.9%, from December 31, 2023. •Business-type net position of $256,446,947 increased by $9,778,491, or 4.0%, from December 31,2023. •Total assets and deferred outflows of resources as of December 31, 2024 of $1,274,230,540 increased by $148,161,522 or 13.2% as compared to total assets and deferred outflows of resources as of December 31, 2023. The increase is primarily attributable to continued increases in cash on hand, stemming from debt issuance and an operating surplus in 2024. •Total liabilities and deferred inflows of resources as of December 31, 2024 of $668,466,053 increased by $95,683,774 or 16.7% as compared to total liabilities and deferred inflows of resources as of December 31, 2023. This increase was primarily due to the issuance of new debt in 2024. 2024 2023 2024 2023 2024 2023 2024 2023 AssetsCurrent and other 537,318,621$ 440,457,360$ 115,978,497$ 85,365,919$ 653,297,118$ 525,823,279$ 6,257,095$ 6,825,517$ Capital assets (net)350,339,608 278,350,367 222,092,551 223,398,255 572,432,159 501,748,622 33,810,177 33,819,669 Total Assets 887,658,229 718,807,727 338,071,048 308,764,174 1,225,729,277 1,027,571,901 40,067,272 40,645,186 Deferred Outflows 45,101,529 40,763,056 3,399,734 3,685,701 48,501,263 44,448,757 127,259 974,815 LiabilitiesCurrent 30,928,296 22,329,793 7,701,635 6,410,324 38,629,931 28,740,117 321,572 420,662 Long-term 429,867,920 325,726,634 74,691,907 62,340,275 504,559,827 388,066,909 817,453 1,185,709 Total Liabilities 460,796,216 348,056,427 82,393,542 68,750,599 543,189,758 416,807,026 1,139,025 1,606,371 Deferred Inflows 122,646,002 109,922,354 2,630,293 2,589,995 125,276,295 112,512,349 4,384,800 4,059,021 Net PositionNet investment in capital assets 211,855,858 138,388,784 171,219,480 169,948,896 383,075,338 308,337,680 32,977,362 36,363,853 Restricted 16,248,347 10,969,003 32,814,484 27,131,095 49,062,831 38,100,098 - - Unrestricted 121,213,335 152,234,215 52,412,983 49,588,465 173,626,318 201,822,680 1,693,344 1,283,213 Total Net Position 349,317,540$ 301,592,002$ 256,446,947$ 246,668,456$ 605,764,487$ 548,260,458$ 34,670,706$ 37,647,066$ Governmental Activities Business-type Activities Government-wide Component Units 18 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 Statement of Activities Governmental Activities Business-type Activities Government-wide Discrete Component Unit 2024 2023 2024 2023 2024 2023 2024 2023 Revenues Program revenues Charges for services $12,754,456 $12,764,775 $86,471,554 $81,679,609 $99,226,010 $94,444,384 $1,768,325 $1,556,876 Operating grants 14,771,586 20,414,840 - - 14,771,586 20,414,840 4,952,262 4,983,975 Capital grants 1,000,000 1,000,000 7,410 300,410 1,007,410 1,300,410 447,750 5,562,287 General revenues Property tax 111,753,844 98,454,889 - - 111,753,844 98,454,889 5,000,243 4,565,969 Other tax 49,170,617 45,339,137 2,683,000 1,769,855 51,853,617 47,108,992 - - State-shared revenue 31,193,302 18,725,812 - - 31,193,302 18,725,812 - - Investment earnings 13,913,534 12,192,479 4,607,398 3,450,773 18,520,932 15,643,252 36,235 29,040 Other revenue 44,888,446 35,817,983 - - 44,888,446 35,817,983 15,192 - Total revenues 279,445,785 244,709,915 93,769,362 87,200,647 373,215,147 331,910,562 12,206,390 16,582,918 Expenses General government 36,840,791 26,825,090 - - 36,840,791 26,825,090 - - Public safety 100,981,465 94,934,628 - - 100,981,465 94,934,628 - - Highways & streets 22,635,340 31,556,893 - - 22,635,340 31,556,893 - - Economic development 66,611,120 49,277,781 - - 66,611,120 49,277,781 - - Culture & recreation 9,541,476 36,420,777 - - 9,541,476 36,420,777 - - Interest on long-term debt 8,233,931 5,870,341 - - 8,233,931 5,870,341 - - Water utility - - 19,630,586 21,051,699 19,630,586 21,051,699 - - Wastewater utility - - 37,180,780 36,522,974 37,180,780 36,522,974 - - Century center - - 5,874,520 5,202,221 5,874,520 5,195,968 - - Building department - - 2,935,772 2,297,459 2,935,772 2,297,459 - - Parking - - 1,914,858 1,573,973 1,914,858 1,573,973 - - Solid waste - - 6,819,921 8,334,688 6,819,921 8,334,688 - - Morris Performing Arts Ctr - - 1,536,839 1,425,960 1,536,839 1,425,960 - - Public transportation - - - - - - 15,196,367 15,005,690 Total expenses 244,844,123 244,885,510 75,893,276 76,408,974 320,737,399 321,288,231 15,196,367 15,005,690 Change in Net Position Before transfers 34,601,662 (175,595) 17,876,086 10,797,926 52,477,748 10,622,331 (2.976.360) 1,692,457 Transfers 8,097,595 5,201,876 (8,097,595) (5,232,498) - (30,622) - - Change in Net Position 42,699,257 5,026,281 9,778,491 5,559,175 52,477,748 10,591,709 (2,976.360) 1,692,457 Beginning Net Position 306,618,283 301,592,002 246,668,456 241,109,281 553,286,739 542,695,030 $37,647,066 35,954,609 Ending Net Position $349,317,540 $306,618,283 $256,446,947 $246,668,456 $605,764,487 $553,286,739 $34,670,706 $37,647,066 Governmental Activities Net position for governmental activities increased by $42,699,257 during fiscal 2024, an increase of 13.9% from the balance of net position as of December 31, 2023. Governmental activity revenue (including transfers) increased by $34,735,870 or 14.2%, while governmental activity expenses decreased by $41,387 or 0.0%. Business-type Activities Net position from business-type activities increased by $9,778,491 (4.0%) from the balance of net position at December 31, 2023. •During 2024, business-type activities revenue of $93,769,362 increased by $6,568,715 or 7.5%, over fiscal 2023. •During 2024, business-type activities expenses of $75,893,276 decreased by $515,698 or 0.7% compared to fiscal 2023. These changes are due primarily to the normal fluctuations in operations from year-to-year. 19 City of South Bend, Indiana Component Unit Management’s Discussion and Analysis (Continued) December 31, 2024 Net position for the South Bend Public Transportation Corporation decreased by $2,976,360 (7.9%) from the balance of net position at December 31, 2023. 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. The following balance sheet presents a consolidated look at the City’s governmental funds, which account for 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. These funds are accounted for on the modified accrual basis of accounting. Condensed Balance Sheet, Statement of Revenue, Expenditures, and Changes in Fund Balance As of and for the Year Ended December 31, 2024 General Fund Parks and Recreation Local Income Tax – Public Safety Local Income Tax – Econ. Dev. American Rescue Plan River West TIF Nonmajor Funds Total Total assets $161,409,428 $24,957,398 $6,507,357 $31,168,566 $986,341 $52,428,396 $231,057,713 $508,515,199 Total liabilities and deferred inflows of resources 63,005,080 16,822,896 - 1,929,796 9,000 22,941,593 36,092,147 140,800,512 Fund Balances Nonspendable 175,000 42,736 - - - - 515,948 733,684 Restricted - 8,091,766 6,507,357 - 977,341 29,486,803 178,910,821 223,974,088 Committed - - - - - - 14,648,524 14,648,524 Assigned - - - 29,238,770 - - 1,060,882 30,299,652 Unassigned 98,229,348 - - - - - (170,609) 98,058,739 Total fund balances 98,404,348 8,134,502 6,507,357 29,238,770 977,341 29,486,803 194,965,566 367,714,687 Total liabilities and deferred inflows of resources and fund balances 161,409,428 24,957,398 6,507,357 31,168,566 986,341 52,428,396 231,057,713 508,515,199 Revenues 110,302,982 18,103,566 14,215,570 21,367,269 8,159,825 24,113,001 82,789,478 279,051,691 Expenditures 109,998,514 24,447,615 13,856,681 6,675,780 8,115,773 36,028,218 112,846,885 311,969,466 Excess of revenue (under) over expenditures 304,468 (6,344,049) 358,889 14,691,489 44,052 (11,915,217) (30,057,407) (32,917,775) Other sources (uses) (4,205,490) 6,514,853 - (11,758,512) - 3,070,841 90,956,912 84,578,604 Net Change in Fund Balances (3,901,022) 170,804 358,889 2,932,977 44,052 (8,844,376) 60,899,505 51,660,829 Beginning Fund Balance 102,305,370 7,963,698 6,148,468 26,305,793 933,289 38,331,179 134,066,061 316,053,858 Ending Fund Balance 98,404,348 8,134,502 6,507,357 29,238,770 977,341 29,486,803 194,965,566 367,714,687 20 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 As of December 31, 2024, the City governmental funds reported a combined ending fund balance of $367,714,687. This fund balance is comprised of the following components: •The nonspendable fund balance of $733,684 is sequestered for inventory, prepaids, the long-term portions of notes/loans receivable, and property held for resale in the General Fund, and is, therefore, not available for new spending. •The restricted fund balance of $233,974,088 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 $14,648,524 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 $30,229,652 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 $98,058,739 consists of money in the General Fund that has not been obligated in any manner by the City or deficit balances in the nonmajor funds. 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, 2024, the General Fund balance of $98,404,348 represents a decrease of $3,901,022, or 3.8% from the balance as of December 31, 2023. As of December 31, 2024, the General Fund had an unassigned fund balance of $98,229,348, which is equal to 89.3% of 2024 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 2024 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 2024. 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 50% of annual expenditures and exceeded this target at December 31, 2024. The Parks and Recreation Fund balance increased by $170,804 during 2024. As of December 31, 2024, the fund balance in the Parks and Recreation Fund was $8,134,502, or 33.3% of 2024 expenditures. The City has a policy to maintain fund reserves equal to at least 25% of annual expenditures in this fund, and meets this target as of December 31, 2024. The Local Income Tax – Public Safety Fund 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 Local Income Tax – Public Safety 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. Local Income Tax – Public Safety funds are used to cover the personnel costs of police officers and firefighters. Receipts 21 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 of Local Income Tax – Public Safety tax revenue commenced in January 2010. The increase in fund balance in the amount of $358,889 during 2024 was due primarily to lower-than budgeted expenditures. The ending fund balance was $6,507,357, or 47.0% of annual expenditures. The Local Income Tax – Economic Development fund is 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 Local Income Tax – Economic Development Fund balance increased by $2,932,977 during 2024 due to normal fluctuations in operations and an additional income tax distribution. The City has operationally sequestered Local Income Tax – Economic Development 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, 2024, the Local Income Tax – Economic Development fund balance was $29,238,770, or 158.6% of 2024 expenditures and transfers out. The City policy target is 50%. The American Rescue Plan Fund is used to account for the proceeds from the American Rescue Plan Act, which was signed by President Joe Biden in 2021. As a part of this legislation, the City of South Bend received nearly $60 million in “State and Local Fiscal Recovery Funds”. The first distribution of these funds (equal to half the total awarded amount) was received by the City in 2021, with the second tranche was received in 2022. The ending fund balance of this fund as of December 31, 2024 was $977,341. The fund balance in the River West TIF Fund decreased by $8,844,376 during 2024. As of December 31, 2024, the River West TIF Fund balance was $29,486,803, almost entirely restricted for use in economic development projects. During 2024, the fund balances in nonmajor governmental funds increased by $60,899,505, due primarily to bonds issued during the year, which were not fully spent. The total balance in nonmajor governmental funds was $194,965,566 as of December 31, 2024. 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 ACFR. 22 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 Governmental Funds Revenue The following schedule presents a summary of governmental fund revenues for the year ended December 31, 2024, with comparison to the prior year: Tax revenue continues to represent the most significant ongoing 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 “circuit breaker” property tax caps) 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), which is deposited directly into the City’s general fund, •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 2024 Actual % of Total 2023 Actual % of Total Tax Based General Property 111,753,844$ 40.0% 98,454,889$ 40.6% Local Income Tax 47,813,791 17.1% 44,541,700 18.4% Hotel/Motel Tax 1,356,826 0.5%797,437 0.3% Total Tax 160,924,461 57.7% 143,794,026 59.3% Non-Tax Based Licenses & Permits 305,095 0.1%246,565 0.1% Intergovernmental 46,782,811 16.8% 38,058,277 15.7% Charges for Services 12,661,763 4.5%12,602,548 5.2% Fines and Forfeitures 803,412 0.3%739,837 0.3% Interest Income 13,913,534 5.0%12,192,479 5.0% Other 43,660,615 15.6% 34,817,321 14.4% Total Non-Tax Based 118,127,230 42.3% 98,657,027 40.7% Total Revenue 279,051,691$ 100.0% 242,451,053$ 100.0% 23 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 •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. Total tax revenue was $160,924,459 during 2024 and increased by $17,130,433, or 11.9%, from 2023. Property tax revenue was stronger than expected during 2024, driven by rising real estate values. Income tax was also strong in 2024. Total non-tax-based revenue was $118,127,230 in 2024 and increased $19,470,203 or 19.7%, from 2023. 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, 2024, in comparison to fiscal year 2023. 2024 Actual % of Total 2023 Actual % of Total General Government $22,724,224 7.3% $24,203,487 9.0% Public Safety 94,262,971 30.2% 89,702,272 33.3% Highways and Streets 30,781,392 9.9% 26,088,643 9.7% Community & Economic Development 20,692,336 6.6% 22,934,480 8.5% Culture and Recreation 33,804,432 10.8% 29,035,558 10.8% Debt Service 24,611,225 7.9% 22,880,747 8.5% Capital Outlay 85,092,886 27.3% 54,608,990 20.3% Total Expenditures $311,969,466 100.0% $269,454,177 100.0% Governmental fund expenditures in fiscal 2024 of $311,969,466 increased by $42,515,289, or 15.8%, in comparison to governmental fund expenditures in fiscal 2023. Capital outlay expenditures increased by $30,483,896, or 55.8%, during 2024. Public Safety expenditures continue to be the primary use of government fund resources with 30.2% of expenditures used for this purpose in fiscal 2024. Public safety spending is followed by: 24 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 •capital outlay expenditures (27.3%), •culture and recreation (10.8%), •highways and streets (9.9%), •debt service expenditures (7.9%), •general government (7.3%), •and community and economic development (6.6%). Note: “General government” spending is comprised of the executive offices of the Mayor, Common Council, City Clerk, Legal, Controller, Human Resources and Innovation & Technology. Proprietary funds Condensed Statement of Net Position Revenue, Expenses, and Changes in Fund Net Position As of and for the Year Ended December 31, 2024 Enterprise Funds Governmental Activities Water Utility Wastewater Utility Nonmajor Enterprise Total Proprietary Internal Service Total assets $92,461,024 $211,392,341 $34,229,895 $338,083,260 $32,133,477 Total deferred outflows 997,171 1,652,843 749,720 - 3,399,734 1,607,234 Total liabilities 23,935,383 50,772,030 7,698,341 82,405,754 17,492,497 Total deferred inflows 1,170,387 961,185 498,721 2,630,293 1,069,146 Net Position Net investment in capital assets 46,806,827 104,482,117 19,930,536 171,219,480 2,791,108 Restricted: Debt service 1,980,096 2,247,542 - 4,227,638 - Customer repair & deposit 1,409,762 3,238,307 - 4,648,069 - Cash with fiscal agent 196,101 5,298,125 - 5,494,226 - Bond reserve 1,509,205 168,429 - 1,677,634 - Operating reserve 3,165,923 6,030,951 - 9,196,874 - Capital outlay 5,127,285 645,993 1,796,765 7,570,043 - Unrestricted 8,157,226 39,200,505 5,055,252 52,412,983 12,387,960 Total net position 68,352,425 161,311,969 26,782,553 256,446,947 15,179,068 Operating revenues 22,404,163 46,147,954 17,885,029 86,437,146 46,269,742 Operating expenses 19,291,980 36,280,616 18,941,289 74,513,885 49,773,364 Operating income (loss) 3,112,183 9,867,338 (1,056,260) 11,923,261 (3,503,622) Non-operating revenues (expenses) 1,106,619 1,990,020 2,856,187 5,952,826 1,070,968 Income (loss) before contributions & transfers 4,218,802 11,857,358 1,799,927 17,876,087 (2,432,654) Capital contributions - - - - - Transfers in 139,069 3,212,612 933,000 4,284,681 1,523,000 Transfers out (2,037,221) (9,174,782) (1,170,274) (12,382,277) - Change in Net Position 2,320,650 5,895,188 1,562,653 9,778,491 (909,654) Total Net Position - Beginning 66,031,775 155,416,781 25,219,900 246,668,456 16,088,722 Total Net Position - Ending $68,352,425 $161,311,969 $26,782,553 $256,446,947 $15,179,068 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 and Wastewater Utility, which are considered major enterprise funds. Data 25 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 from the other five (5) nonmajor enterprise funds (Century Center, Consolidated Building Department, Parking Garage, Solid Waste, and Morris Performing Arts Center) are combined into a single, aggregated presentation. 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, 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. The internal service funds have been combined into a single, aggregated presentation. As of December 31, 2024, City enterprise funds reported a net position of $256,446,947, which represents an increase of $9,778,491, or 4.0% from the net position as of December 31, 2023. As of December 31, 2024, enterprise fund net position includes net investment in capital assets of $171,219,480, restricted net position of $32,814,484 and unrestricted net position of $52,412,983. During 2024, the Water utility experienced an increase in net position of $2,320,650 and the Wastewater utility experienced an increase in net position of $5,895,188. Nonmajor Enterprise Funds experienced an increase in net position of $1,562,653 during 2024. The Century Center Fund reported a decrease in net position of $115,446. The Parking Garage Fund reported a decrease in net position of $365,323. The Consolidated Building Fund reported an increase in net position of $1,085,995 during 2024. The Solid Waste Fund reported an increase in net position of $1,439,528. The Morris Performing Arts Center Fund reported a decrease in net position of $482,101. Internal Services Funds reported net position of $15,179,068 as of December 31, 2024, a decrease of $909,654 compared to net position as of December 31, 2023. The Liability Insurance Fund decreased in net position by $2,274,072 in 2024. The Central Services Fund increased its net position by $418,442. The Self-Funded Employee Benefits Fund increased in net position by $341,540. The Innovation & Technology and 311 Call Center fund is a fully allocated fund which supports most City departments, and increased in net position by $271,753 in fiscal 2024. The Unemployment Compensation Insurance Fund decreased in net position by $39,958, and the Parental Leave Fund increased in net position by $257,781. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City maintains three fiduciary funds, which consist of two pension trust funds (1925 Police Officers’ Pension and 1937 Firefighters’ Pension) and two custodial funds (Morris / Palais Box Office and Police Distributions Payable). Pension Trust Funds Custodial Fund Total assets $889,687 $2,057,253 Total liabilities 195 2,057,253 Fiduciary net position restricted for pensions 889,492 - Total additions 10,030,665 6,348,008 Total deductions 10,038,357 6,348,008 Net increase (decrease) in net position $(7,692) $- 26 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 Effective in fiscal 2009, with the passage of State legislation, the State of Indiana began making contributions to the 1925 Police Officers’ and 1937 Firefighters’ Pension Funds. These funds no longer receive property tax revenue distributions beyond fiscal 2009. The administration of the pension plans is the responsibility of the City. The net position maintained in the pension trust is the result of timing differences in the payment of pension benefits and the contributions received from the State of Indiana (the State reimburses in June and September for expenses paid in the previous calendar year). The cost of healthcare benefits to pension members are not covered by State contributions. 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 Department and Fire Department 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 law concerning the annual budget of second class cities and towns. The Common Council adopted the 2024 budget at its meeting held in October 2023. The General Fund budget applicable for fiscal 2024 is reported as follows: Original (inclusive of encumbrances carried forward) Final Actual Budgetary Basis Variance Revenues / Transfers In $97,873,326 $98,873,326 $108,378,823 $9,505,497 Expenditures / Transfers Out 130,713,593 120,798,260 111,548,761 $9,249,499 Surplus (Deficit) $(32,840,267) $(21,924,934) $(3,169,938) $18,754,996 General Fund revenues/transfers in was originally budgeted at $97,873,326 for fiscal 2024. The revenue 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 2024, the General Fund collected $108,378,823 in revenues/transfers in on a budgetary basis, which was $10,505,497 higher than the original budget. This difference is 9.7% higher than the original budget. This increase over budget is due mainly to the receipt of higher-than-expected property and income taxes in 2024. General Fund expenditures/transfers out were originally budgeted at $130,713,593 for fiscal 2024, which included roughly $22.9 million in encumbrances that were carried forward from a previous year. During the year, the General Fund expenditure/transfers out budgets were decreased to $120,798,260 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 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., 27 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 personnel, supplies, services, capital) were submitted to Common Council four times during 2024, 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 as deemed necessary by the Mayor are presented to the Common Council for adoption. General Fund expenditures/transfers out incurred on a budgetary basis, including cash expended and outstanding encumbrances as of year-end December 31, 2024, amounted to $111,548,761. Capital Assets and Debt Administration Capital Assets of the Primary Government Governmental Activities Business-type Activities Government-wide 2024 2023 2024 2023 2024 2023 Assets not depreciated Land $14,697,605 $14,697,605 $2,586,613 $2,586,613 $17,284,218 $17,284,218 Construction in Progress 94,402,239 25,337,577 18,155,327 1,383,548 112,557,565 26,721,124 Total 109,099,844 40,035,182 20,741,939 3,970,161 129,841,783 44,005,342 Assets depreciated Buildings 157,800,959 150,847,944 90,869,689 90,278,919 248,670,648 241,126,863 Non -building improvements 55,403,945 55,206,493 27,161,302 27,161,302 82,565,247 82,367,794 Machinery and Equipment 65,130,725 63,575,393 45,659,578 43,385,449 110,790,304 106,960,842 Roads and Infrastructure 510,414,835 510,099,659 250,557,157 250,557,157 760,971,991 760,656,816 Total Cost 788,750,464 779,729,489 414,247,725 411,382,826 1,202,998,190 1,191,112,315 Accumulated Depreciation Buildings 75,301,180 71,157,743 49,261,285 47,274,941 124,562,465 118,432,684 Non -building improvements 20,527,702 18,423,194 16,031,026 14,785,557 36,558,729 33,208,751 Machinery and Equipment 48,282,811 47,002,838 36,941,894 34,496,735 85,224,705 81,499,573 Roads and Infrastructure 403,399,007 392,492,163 110,662,908 105,596,491 514,061,916 498,088,654 Total Accum. Depreciation 547,510,700 529,075,937 212,897,114 202,153,724 760,407,814 731,229,662 Net Depreciated Assets 241,239,764 250,653,551 201,350,612 209,229,102 442,590,376 459,882,653 Net Capital Assets $350,339,608 $290,688,733 $222,092,551 $213,199,262 $572,432,159 $503,887,995 The investment in capital assets includes land and land improvements, buildings and building improvements, vehicles, information technology equipment, machinery and equipment, and construction in progress. A detailed explanation of these capital assets can be found in the Notes to the Financial Statements. Under the category of roads and infrastructure, the current cost amount of $760,971,991 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. Capital Assets Analysis As of December 31, 2024, government-wide capital assets were valued at $572,432,159, net of accumulated depreciation, an increase of $68.5 million, or 13.6%, since December 31, 2023. Construction in Progress increased by $85.8 million and capitalized assets in land, buildings, improvements, machinery and equipment, and roads increased by $11.9 million, net of depreciation, since December 31, 2023. As of December 31, 2024, the cost of Roads & Infrastructure ($760,971,991) was the major asset class followed by Buildings ($248,670,648) and Machinery & Equipment ($110,790,304). Additional information on capital assets can be found in the notes to the financial statements in Note 6. 28 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 Debt Administration Outstanding debt principal as of December 31, 2024 was $304,476,182, an increase of $78,261,291, or 34.6% from 2023. City outstanding debt includes general obligation bonds, revenue bonds, mortgage bonds, notes and loans payable and financed purchase agreements. Beginning Additions Retirements Ending Governmental Activities General Obligation Bonds $13,784,064 $- $(1,131,771) $12,652,293 Revenue Bonds 144,262,372 $70,046,002 (10,807,181) 203,501,193 Mortgage Bonds 3,525,391 -(287,645)3,237,746 Notes and Loans 2,478,630 -(309,315)2,169,315 Financed purchase agreements 16,257,167 8,650,221 (6,046,641)18,860,747 Total Governmental Activities Debt 180,307,624 78,696,223 (18,582,553) 240,421,294 Business-Type Activities Revenue Bonds 42,779,745 24,898,439 (7,738,736) 59,939,448 Mortgage Bonds - - - - Notes and Loans 170,517 -(26,373)144,144 Financed purchase agreements 2,957,005 2,200,000 (1,027,788) 4,129,217 Total Business-Type Activities Debt 45,907,267 27,098,439 (8,792,897) 64,212,809 Total Debt $226,214,891 $105,794,662 $(27,375,450) $304,634,103 During 2024, the City entered into financed purchase agreements in the amount of $10,850,221 to purchase certain vehicles and equipment. The lease terms are typically for five years with semi-annual debt service paid from the operating budgets of the user departments. Financed purchase agreements are used to acquire police vehicles, fire trucks, ambulances, garbage trucks, 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 2024 was on average around 5% 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 two lease-rental revenue bonds in 2024 for $70,046,002 to support capital projects. The revenue backup on those bond issuances is TIF revenues and PSCDA revenues, and those debt issuances are not subject to the constitutional 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 the Financial Statements in Note 8 – Financed Purchase Agreements and Note 9 - Long-term Debt. Economic Factors and 2024 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. 29 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 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 2024, the primary funds supported by property taxes (General Fund, Parks and Recreation Fund, and Cumulative Capital Development Fund) lost approximately $46.6 million in taxable property tax levy due to the circuit breaker caps (Department of Local Government Finance, 2024 St. Joseph County Circuit Breaker Report). 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. Job creation is the primary engine to drive economic recovery. With the economic outlook for 2024 and beyond forecasted to be stronger, the City has opportunity to invest. Significant concerns linger (particularly around inflation and its impact on both city finances and resident well-being), but the City is excited to use recent-year surpluses to reinvest back into our community. Particularly with the passage of the American Recovery Plan in early 2021, the City has the opportunity to invest in large-scale economic development and infrastructure projects to attempt to change the trajectory of the local economy and put the City back on the path to growth. 2025 Budget and Beyond The City will engage to ensure effective delivery of required services to taxpayers and residents within the constraints of available financial resources. The City will continue to provide required services within the constraints of a balanced General Fund budget. In the spirit of fiscal responsibility, the City has engaged in a process of program budgeting for the 2024 budgets. This program budgeting is in addition to the state- required fund and account budgeting through the Indiana Department of Local Government Finance. 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 2025 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 2025 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 30 City of South Bend, Indiana Management’s Discussion and Analysis (Continued) December 31, 2024 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 Annual Comprehensive 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, 2024. Questions concerning any of the information provided in this report, or requests for additional information, should be addressed to: Kyle Willis, Controller City of South Bend Department of Administration and Finance 215 S. Dr. Martin Luther King Jr. Blvd. STE 200 South Bend, IN 46601 Telephone (574) 235-9822 Email: kwillis@southbendin.gov 31 City of South Bend, Indiana Basic Financial Statements 32 City of South Bend, Indiana Statement of Net Position December 31, 2024 Governmental Business-type Component Activities Activities Total Unit Assets Cash and cash equivalents 241,193,162$ 28,701,988$ 269,895,150$ 1,601,733$ Investments 154,892,041 29,524,993 184,417,034 - Receivables:Accounts - net 3,030,792 7,233,990 10,264,782 114,488 Interest 407 104 511 - Taxes 672,740 1,912,500 2,585,240 - Intergovernmental 3,156,650 - 3,156,650 - Property taxes 110,327,400 - 110,327,400 3,869,929 Loans 11,658,743 - 11,658,743 145,205 Internal balances (43,795) 44,889 1,094 - Inventory 1,760,835 2,102,867 3,863,702 397,837 Prepaid expenses 1,603,172 6,979 1,610,151 127,903 Restricted assets 21,189 46,450,187 46,471,376 - Property held for resale 9,045,285 - 9,045,285 - Net pension asset - - - 830,524 Capital assets:Assets not subject to depreciation 109,099,844 20,741,939 129,841,783 1,326,714 Assets subject to depreciation - net 241,239,764 201,350,612 442,590,376 31,652,939 Total assets 887,658,229 338,071,048 1,225,729,277 40,067,272 Deferred outflows of resources Unamortized loss on refunding 1,454,752 212,885 1,667,637 - Deferred outflows related to pensions 38,298,606 2,316,909 40,615,515 127,259 Deferred outflows related to OPEB 5,348,171 869,940 6,218,111 - Total deferred outflows of resources 45,101,529 3,399,734 48,501,263 127,259 Liabilities Accounts payable 20,552,738 3,318,905 23,871,643 106,428 Due to other governmental units 462,011 - 462,011 - Performance deposits payable 133,356 7,000 140,356 - Accrued liabilities and other:- Accrued payroll payable 5,263,507 881,049 6,144,556 61,837 Accrued interest payable 4,025,779 362,749 4,388,528 - Taxes payable 299,144 84,611 383,755 - Other current payables 61,221 102,557 163,778 153,307 Customer deposits payable 2,800 2,904,764 2,907,564 - Unearned revenue 127,740 40,000 167,740 - Noncurrent liabilities: Due within one year:Compensated absences 6,411,411 184,793 6,596,204 287,453 Claims payable 8,906,807 - 8,906,807 - General obligation bonds payable 1,150,000 - 1,150,000 - Revenue bonds payable 8,901,766 8,135,000 17,036,766 - Mortgage bonds payable 290,000 - 290,000 - Notes and loans payable 315,561 27,262 342,823 530,000 Financed purchase agreements 6,784,499 1,258,294 8,042,793 - Due in more than one year:- General obligation bonds payable 11,502,293 - 11,502,293 - Revenue bonds payable 194,599,428 51,804,449 246,403,877 - Mortgage bonds payable 2,947,746 - 2,947,746 - Notes and loans payable 1,853,754 116,882 1,970,636 - Financed purchase agreements 12,076,248 2,870,923 14,947,171 - Net pension liability 152,721,703 6,812,262 159,533,965 - Total OPEB liability 21,406,704 3,482,042 24,888,746 - Total liabilities 460,796,216 82,393,542 543,189,758 1,139,025 See Notes to Financial Statements 33 City of South Bend, Indiana Statement of Net Position (Continued) December 31, 2024 Governmental Business-type Component Activities Activities Total Unit Deferred inflows of resources Unamortized gain on refunding - 510,372 510,372 - Deferred inflows related to pensions 790,043 244,670 1,034,713 514,871 Deferred inflows related to OPEB 11,528,560 1,875,251 13,403,811 - Deferred inflows related to property taxes receivable 110,327,399 - 110,327,399 3,869,929 Total deferred inflows of resources 122,646,002 2,630,293 125,276,295 4,384,800 Net position Net investment in capital assets 211,855,858 171,219,480 383,075,338 32,977,362 Restricted:Debt service 16,248,347 4,227,638 20,475,985 - Customer repair and deposit - 4,648,069 4,648,069 - Cash with fiscal agent - 5,494,226 5,494,226 - Bond reserve - 1,677,634 1,677,634 - Operating reserve - 9,196,874 9,196,874 - Capital outlay - 7,570,043 7,570,043 - Unrestricted 121,213,335 52,412,983 173,626,318 1,693,344 Total net position 349,317,540$ 256,446,947$ 605,764,487$ 34,670,706$ See Notes to Financial Statements 34 City of South Bend, Indiana Statement of Activities For the Year Ended December 31, 2024 Net (Expense) Revenue and Changes inProgram Revenues 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 36,840,791$ 599,268$ 592,217$ -$ (35,649,306)$ -$ (35,649,306)$ -$ Public safety 100,981,465 7,759,820 10,626,421 - (82,595,224) - (82,595,224) - Highways and streets 22,635,340 301,179 1,121,457 - (21,212,704) - (21,212,704) - Community and economic development 66,611,120 417,872 2,431,491 1,000,000 (62,761,757) - (62,761,757) - Culture and recreation 9,541,476 3,676,317 - - (5,865,159) - (5,865,159) - Interest on long-term debt 8,233,931 - - - (8,233,931) - (8,233,931) - Total governmental activities 244,844,123 12,754,456 14,771,586 1,000,000 (216,318,081) - (216,318,081) - Business-type activities: Water utility 19,630,586 22,413,363 - - - 2,782,777 2,782,777 - Wastewater utility 37,180,780 46,162,858 - - - 8,982,078 8,982,078 - Century center 5,874,520 3,264,037 - - - (2,610,483) (2,610,483) - Consolidated building 2,935,772 3,881,370 - - - 945,598 945,598 - Parking garage 1,914,858 1,527,430 - - - (387,428) (387,428) - Solid waste 6,819,921 8,187,512 - 7,410 - 1,375,001 1,375,001 - Morris performing arts center 1,536,839 1,034,984 - -- (501,855) (501,855) - Total business-type activities 75,893,276 86,471,554 - 7,410 - 10,585,688 10,585,688 - Total primary government 320,737,399$ 99,226,010$ 14,771,586$ 1,007,410$ (216,318,081)$ 10,585,688$ (205,732,393)$ -$ Component unit:South Bend Public Transportation Corp.15,196,367$ 1,768,325$ 4,952,262$ 447,750$ (8,028,030)$ -$ (8,028,030)$ (8,028,030)$ General revenues:Taxes:Property taxes 111,753,844 - 111,753,844 5,000,243 Income taxes 47,813,791 - 47,813,791 - Hotel/motel taxes 1,356,826 2,683,000 4,039,826 - State-shared revenue 31,193,302 - 31,193,302 - Unrestricted investment income (loss)13,913,534 4,607,398 18,520,932 36,235 Gain on sale of capital assets 119,324 - 119,324 1,575 Other miscellaneous income 44,769,122 - 44,769,122 13,617 Total general revenues 250,919,743 7,290,398 258,210,141 5,051,670 Transfers 8,097,595 (8,097,595) - - Change in net position 42,699,257 9,778,491 52,477,748 (2,976,360) Net position - Beginning of year 306,618,283 246,668,456 553,286,739 37,647,066 Net position - End of year 349,317,540$ 256,446,947$ 605,764,487$ 34,670,706$ See Notes to Financial Statements 35 City of South Bend, Indiana Governmental Funds Balance Sheet December 31, 2024 Local Income TaxParks and Local Income Tax Economic American NonmajorGeneral Fund Recreation Public Safety Development Rescue Plan River West TIF Funds Total Assets Cash and cash equivalents 47,432,590$ 5,505,866$ 2,868,812$ 13,611,452$ 434,836$ 9,681,790$ 150,037,183$ 229,572,529$ Investments 57,192,238 6,604,441 3,638,546 17,263,749 551,506 15,805,330 39,512,524 140,568,334 Receivables: Accounts 1,977,602 (1,127) - 23,364 - - 887,635 2,887,474 Interest - - (1) - (1) - 407 405 Taxes - - - - - - 672,740 672,740 Intergovernmental - - - - - - 3,156,650 3,156,650 Property taxes 54,565,095 12,805,482 - - - 20,709,379 22,247,444 110,327,400 Loans - - - - - 444,500 11,214,243 11,658,743 Due from other funds 66,903 - - - - - 52 66,955 Advances to other funds - - - - - - 515,948 515,948 Inventory - 42,736 - - - - - 42,736 Property held for resale 175,000 - - 270,001 - 5,787,397 2,812,887 9,045,285 Restricted assets - - - - - -- - Total assets 161,409,428$ 24,957,398$ 6,507,357$ 31,168,566$ 986,341$ 52,428,396$ 231,057,713$ 508,515,199$ Liabilities Accounts payable 1,880,756$ 3,379,716$ -$ 1,923,368$ 9,000$ 2,183,689$ 9,499,748$ 18,876,277$ Due to other funds 29,275 9,164 - 428 - - 71,102 109,969 Due to other governments 462,011 - - - - - - 462,011 Advances from other funds - - - - - - 515,948 515,948 Performance deposits payable 103,881 - - 6,000 - 18,525 4,950 133,356 Accrued liabilities and other: Accrued payroll payable 3,843,168 477,010 - - - - 559,749 4,879,927 Taxes payable 215,616 31,410 - - - - 30,929 277,955 Other current payables 28,393 - - - - 30,000 2,828 61,221 Customer deposits - - - - - - 2,800 2,800 Unearned revenue - 120,114 - - - - - 120,114 Total liabilities 6,563,100 4,017,414 - 1,929,796 9,000 2,232,214 10,688,054 25,439,578 Deferred inflows of resources EMS Medicaid receivable 1,876,885 - - - - - - 1,876,885 Intergovernmental receivable - - - - - - 3,156,650 3,156,650 Property taxes receivable 54,565,095 12,805,482 - - - 20,709,379 22,247,443 110,327,399 Total deferred inflows of resources 56,441,980 12,805,482 - - - 20,709,379 25,404,093 115,360,934 Fund balances Nonspendable 175,000 42,736 - - - - 515,948 733,684 Restricted - 8,091,766 6,507,357 - 977,341 29,486,803 178,910,821 223,974,088 Committed - - - - - - 14,648,524 14,648,524 Assigned - - - 29,238,770 - - 1,060,882 30,299,652 Unassigned 98,229,348 - - - - - (170,609) 98,058,739 Total fund balances 98,404,348 8,134,502 6,507,357 29,238,770 977,341 29,486,803 194,965,566 367,714,687 Total liabilities, deferred inflows of resources, and fund balances 161,409,428$ 24,957,398$ 6,507,357$ 31,168,566$ 986,341$ 52,428,396$ 231,057,713$ 508,515,199$ See Notes to Financial Statements 36 City of South Bend, Indiana Governmental Funds Reconciliation of the Balance Sheet to the Statement of Net Position December 31, 2024 Fund balances reported in governmental funds 367,714,687$ 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 347,543,354 Prepaid expenses are not available to pay for current period expenditures, and therefore are not reported in the funds 92,900 Deferred outflows on refunding are not due and payable in the current period and are not reported in the funds 1,454,752 Deferred outflows related to pensions are not due and payable in the current period and are not reported in the funds 37,130,112 Deferred outflows related to OPEB are not due and payable in the current period and are not reported in the funds 4,909,431 Notes and loans payable, general obligation bonds payable, mortgage bonds payable, revenue bonds payable, and financed purchase agreements are not due and payable in the current period and are not reported in the funds (239,284,856) Accrued interest is not due and payable in the current period and is not reported in the funds (4,003,451) 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 (6,265,883) Net pension liabilities do not present a claim on current financial resources and are not reported as fund liabilities (149,286,053) Total OPEB liability does not present a claim on current financial resources and is not reported as fund liability (19,650,595) Deferred inflows on refunding are not receivable and not available to pay current period expenditures, and thus not included in the governmental fund balance - Deferred inflows of resources related to pensions do not present a claim on current financial resources and are not reported as fund liabilities (666,648) Deferred inflows of resources related to OPEB do not present a claim on current financial resources and are not reported as fund liabilities (10,582,813) Future inflows related to EMS Medicaid revenue, opioid settlement, and other inflows are not reported as revenue in the governmental funds until they become available to finance current period expenditures 5,033,535 Internal service funds are included as part of governmental activities 15,179,068 Net position of governmental activities 349,317,540$ See Notes to Financial Statements 37 City of South Bend, Indiana Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended December 31, 2024 Local Income Tax Parks and Local Income Tax Economic American NonmajorGeneral Fund Recreation Public Safety Development Rescue Plan River West TIF Funds Total Revenues Property taxes 55,895,189$ 13,118,401$ -$ -$ -$ 20,520,363$ 22,219,891$ 111,753,844$ Income taxes 14,471,413 - 13,856,678 19,485,678 - - 22 47,813,791 Hotel/motel taxes - - - - - 385,000 971,826 1,356,826 Licenses and permits 280,315 915 - - - - 23,865 305,095 Intergovernmental 13,958,170 827,072 - - 7,942,416 1,534,401 22,520,752 46,782,811 Charges for services 5,738,387 3,506,474 - - - 7,210 3,409,692 12,661,763 Fines and forfeitures 10,608 - - - - - 792,804 803,412 Investment income (loss)4,693,436 550,323 358,892 1,487,680 217,409 1,302,218 5,303,576 13,913,534 Other 15,255,464 100,381 - 393,911 - 363,809 27,547,050 43,660,615 Total revenues 110,302,982 18,103,566 14,215,570 21,367,269 8,159,825 24,113,001 82,789,478 279,051,691 Expenditures Current: General government 16,041,798 1,316,658 - 341,284 - - 5,024,484 22,724,224 Public safety 79,754,907 - 13,856,681 - - - 651,383 94,262,971 Highways and streets 5,527,470 - - 1,179,666 - - 24,074,256 30,781,392 Community and economic development - - - 3,472,658 - 5,551,121 11,668,557 20,692,336 Culture and recreation 1,901,195 17,346,609 - 100,000 - -14,456,628 33,804,432 Capital outlay: General government 2,304,875 - - 1,194,672 8,115,773 - 193,647 11,808,967 Public safety 2,572,287 - - - - - 2,469,361 5,041,648 Highways and streets - - - - - - 3,632,838 3,632,838 Community and economic development - - - - - 25,951,972 25,108,380 51,060,352 Culture and recreation - 5,316,643 - - - -8,232,438 13,549,081 Debt service:Principal 1,761,418 389,972 - 200,000 - 4,054,615 10,662,435 17,068,440 Interest on long-term debt 134,564 77,733 - 187,500 - 470,510 5,854,833 6,725,140 Bond issuance costs - - - -- -817,645 817,645 Total expenditures 109,998,514 24,447,615 13,856,681 6,675,780 8,115,773 36,028,218 112,846,885 311,969,466 Excess of revenues (under) over expenditures 304,468 (6,344,049) 358,889 14,691,489 44,052 (11,915,217) (30,057,407) (32,917,775) Other financing sources (uses) Issuance of debt 2,176,000 489,507 - - - - 75,055,000 77,720,507 Premium on debt - - - - - - 706,002 706,002 Proceeds from sale of capital assets 119,324 25,346 - - - - 1,324,789 1,469,459 Transfers in 6,599,186 6,000,000 - - - 6,741,141 32,216,799 51,557,126 Transfers out (13,100,000) - - (11,758,512) - (3,670,300) (18,345,678) (46,874,490) Total other financing sources (uses)(4,205,490) 6,514,853 - (11,758,512) - 3,070,841 90,956,912 84,578,604 Net change in fund balances (3,901,022) 170,804 358,889 2,932,977 44,052 (8,844,376) 60,899,505 51,660,829 Fund balances - Beginning of year 102,305,370 7,963,698 6,148,468 26,305,793 933,289 38,331,179 134,066,061 316,053,858 Fund balances - End of year 98,404,348$ 8,134,502$ 6,507,357$ 29,238,770$ 977,341$ 29,486,803$ 194,965,566$ 367,714,687$ See Notes to Financial Statements 38 City of South Bend, Indiana Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds For the Year Ended December 31, 2024 Net change in fund balances - Total governmental funds 51,660,829$ 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 79,777,061 Depreciation expense (20,926,049) Net book value of assets disposed and transferred - 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 (5,243) Issuance of debt (from notes and loans payable, mortgage bonds payable, revenue bonds payable, andfinanced purchase agreements) provide financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position (77,720,507) Premium on debt proceeds provide financial resources to governmental funds, but issuing debtincreases long-term liabilities in the statement of net position (706,002) Repayment of debt principal is an expenditure in the governmental funds, but not in the statement of activities (where it reduces long-term debt)17,068,440 Other adjustments related to debt premiums, discounts, deferred inflows of resources, and deferred outflows 688,206 of resources Changes in accrued interest payable and other (1,379,352) Changes in compensated absences reported in the statement of activities do not require the use ofcurrent resources, and therefore are not reported in the fund statements until they come due for payment (841,680) Recognition of revenue previously received and available, and thus previously recognized in the governmental funds - 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 364,451 Future receipts of EMS Medicaid revenue and other revenues are not available to pay current period expenditures, and thus is not included in governmental fund balance 389,953 Changes in the net pension liabilities and related deferred inflows and outflows of resources 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 (4,761,196) Internal service funds are included as part of governmental activities - Change in net position (909,654) Change in net position of governmental activities 42,699,257$ See Notes to Financial Statements 39 City of South Bend, Indiana Proprietary Funds Statement of Net Position December 31, 2024 GovernmentalActivities Wastewater Nonmajor ProprietaryWater Utility Utility Enterprise Total Internal Service Assets Current assets: Cash and cash equivalents 3,301,145$ 22,811,217$ 2,589,626$ 28,701,988$ 11,621,632$ Investments 7,124,978 19,990,866 2,409,149 29,524,993 14,323,707 Receivables: Accounts 1,867,141 4,113,361 1,413,587 7,394,089 143,318 Allowance for doubtful accounts (50,000) (85,100) (24,999) (160,099) - Interest (4) 2 106 104 2 Taxes - - 1,912,500 1,912,500 - Due from other funds 12,829 42,045 2,227 57,101 - Inventory 1,713,859 319,015 69,993 2,102,867 1,718,099 Prepaid expenses 4,268 - 2,711 6,979 1,510,272 Total current assets 13,974,216 47,191,406 8,374,900 69,540,522 29,317,030 Noncurrent assets: Restricted assets 24,246,238 17,629,347 4,574,602 46,450,187 21,189 Capital assets: Assets not subject to depreciation 3,716,497 15,095,218 1,930,224 20,741,939 - Assets subject to depreciation 50,524,073 131,476,370 19,350,169 201,350,612 2,795,258 Total noncurrent assets 78,486,808 164,200,935 25,854,995 268,542,738 2,816,447 Total assets 92,461,024 211,392,341 34,229,895 338,083,260 32,133,477 Deferred outflows of resources Unamortized loss on refunding 4,979 207,906 - 212,885 - Deferred outflows related to pensions 721,345 1,050,501 545,063 2,316,909 1,168,494 Deferred outflows related to OPEB 270,847 394,436 204,657 869,940 438,740 Total deferred outflows of resources 997,171 1,652,843 749,720 3,399,734 1,607,234 Liabilities Current liabilities: Accounts payable 1,108,456 1,731,419 479,030 3,318,905 1,676,461 Due to other funds - 3,158 9,054 12,212 780 Performance deposits payable - -7,000 7,000 - Accrued liabilities and other:Accrued payroll payable 242,137 389,654 249,258 881,049 383,580 Accrued interest payable 172,075 140,647 50,027 362,749 22,328 Taxes payable 64,436 21,579 (1,404) 84,611 21,189 Other current payables - 17,813 84,744 102,557 - Customer deposits payable 1,294,894 1,441,119 168,751 2,904,764 - Unearned revenue - - 40,000 40,000 - Compensated absences 62,146 61,761 60,886 184,793 145,528 Claims payable - - - - 8,906,807 Revenue bonds payable 1,400,000 6,735,000 - 8,135,000 - Notes and loans payable 27,262 - - 27,262 - Financed purchase agreements - - 1,258,294 1,258,294 723,708 Total current liabilities 4,371,406 10,542,150 2,405,640 17,319,196 11,880,381 Noncurrent liabilities:Revenue bonds payable 16,242,072 35,562,377 - 51,804,449 - Notes and loans payable 116,882 - - 116,882 - Financed purchase agreements - - 2,870,923 2,870,923 420,357 Net pension liability 2,120,926 3,088,723 1,602,613 6,812,262 3,435,650 Total OPEB liability 1,084,097 1,578,780 819,165 3,482,042 1,756,109 Total noncurrent liabilities 19,563,977 40,229,880 5,292,701 65,086,558 5,612,116 Total liabilities 23,935,383 50,772,030 7,698,341 82,405,754 17,492,497 Enterprise Funds See Notes to Financial Statements 40 City of South Bend, Indiana Proprietary Funds Statement of Net Position (Continued) December 31, 2024 GovernmentalActivities Wastewater Nonmajor Proprietary Water Utility Utility Enterprise Total Internal Service Deferred inflows of resources Unamortized gain on refunding 510,372 - - 510,372 - Deferred inflows related to pensions 76,175 110,935 57,560 244,670 123,395 Deferred inflows related to OPEB 583,840 850,250 441,161 1,875,251 945,751 Total deferred inflows of resources 1,170,387 961,185 498,721 2,630,293 1,069,146 Net position Net investment in capital assets 46,806,827 104,482,117 19,930,536 171,219,480 2,791,108 Restricted:Debt service 1,980,096 2,247,542 - 4,227,638 - Customer repair and deposit 1,409,762 3,238,307 - 4,648,069 - Cash with fiscal agent 196,101 5,298,125 - 5,494,226 - Bond reserve 1,509,205 168,429 - 1,677,634 - Operating reserve 3,165,923 6,030,951 - 9,196,874 - Capital outlay 5,127,285 645,993 1,796,765 7,570,043 - Unrestricted 8,157,226 39,200,505 5,055,252 52,412,983 12,387,960 Total net position 68,352,425$ 161,311,969$ 26,782,553$ 256,446,947$ 15,179,068$ Enterprise Funds See Notes to Financial Statements 41 City of South Bend, Indiana Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended December 31, 2024 GovernmentalActivities Wastewater Nonmajor ProprietaryWater Utility Utility Enterprise Total Internal Service Operating revenues Metered revenue 15,588,459$ 44,227,484$ -$ 59,815,943$ -$ Convention fees - - 3,924,094 3,924,094 - Fire protection revenue 3,243,911 - - 3,243,911 - Licenses and permits - - 3,855,864 3,855,864 - Interest and penalty charges 113,343 698,088 - 811,431 - Parking fees - - 1,638,673 1,638,673 - Solid waste fees - - 8,183,773 8,183,773 - Employee/employer contributions - - - - 34,685,425 Charges for sales and services - - - - 10,062,109 Water leak insurance revenue 1,105,272 - - 1,105,272 - Charges to other funds 1,652,888 403,429 71,905 2,128,222 160,000 Other 700,290 818,953 210,720 1,729,963 1,362,208 Total operating revenues 22,404,163 46,147,954 17,885,029 86,437,146 46,269,742 Operating expenses Personnel services 5,134,320 8,083,084 4,592,717 17,810,121 9,330,331 Materials and supplies 2,475,035 3,942,223 734,805 7,152,063 7,848,324 Contractual services 6,330,574 9,609,869 6,889,849 22,830,292 12,223,062 Insurance claims and premiums - - 18,783 18,783 19,480,309 General and administration 3,559,703 7,234,394 4,656,258 15,450,355 777,458 Depreciation 1,792,348 7,411,046 2,048,877 11,252,271 113,880 Total operating expenses 19,291,980 36,280,616 18,941,289 74,513,885 49,773,364 Operating income (loss)3,112,183 9,867,338 (1,056,260) 11,923,261 (3,503,622) Nonoperating revenues (expenses) Investment income 1,436,025 2,866,644 303,504 4,606,173 1,152,800 Hotel/motel tax revenues - - 2,683,000 2,683,000 - Interest expense (338,606) (891,528) (140,621) (1,370,755) (84,316) (Loss) gain on sale of assets 9,200 14,904 10,304 34,408 2,484 Total nonoperating revenues (expenses)1,106,619 1,990,020 2,856,187 5,952,826 1,070,968 Income (loss) - Before contributions and transfers 4,218,802 11,857,358 1,799,927 17,876,087 (2,432,654) Capital contributions - Other capital contributions - - - - - Transfers in 139,069 3,212,612 933,000 4,284,681 1,523,000 Transfers out (2,037,221) (9,174,782) (1,170,274) (12,382,277) - Change in net position 2,320,650 5,895,188 1,562,653 9,778,491 (909,654) Net position - Beginning of year 66,031,775 155,416,781 25,219,900 246,668,456 16,088,722 Net position - End of year 68,352,425$ 161,311,969$ 26,782,553$ 256,446,947$ 15,179,068$ Enterprise Funds See Notes to Financial Statements 42 City of South Bend, Indiana Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2024 Governmental ActivitiesEnterprise Funds Proprietary Wastewater Nonmajor Internal ServiceWater Utility Utility Enterprise Total Fund Cash flows from operating activities Receipts from customers and users 20,100,334$ 46,470,913$ 17,796,315$ 84,367,562$ 1,700,849$ Receipts from interfund services andreimbursements 1,680,398 (27,587) (323) 1,652,488 45,780,820 Payments to suppliers (8,984,285) (13,446,642) (7,703,961) (30,134,888) (36,455,428) Payments to employees (5,060,976) (7,918,429) (6,738,846) (19,718,251) (8,703,260) Internal activity - payments to other funds (3,559,703) (7,234,051) (2,453,139) (13,246,893) (777,332) Internal activity - payments from other funds 36,638 350,312 71,905 458,855 - Net cash provided by (used in) operating activities 4,212,406 18,194,516 971,951 23,378,873 1,545,649 Cash flows from noncapital financing activities Transfers from other funds 139,069 3,212,612 933,000 4,284,681 1,523,000 Transfers to other funds (2,037,221) (9,174,782) (1,145,073) (12,357,076) - Hotel/motel tax - - 2,683,000 2,683,000 - Net cash (used in) provided by noncapital financing activities (1,898,152) (5,962,170) 2,470,927 (5,389,395) 1,523,000 Cash flows from capital and related financing activities Proceeds from capital debt issued for future capital purchase 10,743,000 14,155,439 2,200,000 27,098,439 269,717 Proceeds from sales of capital assets 9,200 14,904 10,306 34,410 2,484 Purchase of capital assets (1,955,998) (15,094,668) (4,322,273) (21,372,939) (327,362) Principal paid on capital debt and financed purchase agreements (786,373) (6,580,000) (1,054,761) (8,421,134) (690,467) Interest paid on capital debt and financed purchase agreements (302,570) (1,041,145) (92,244) (1,435,959) (68,731) Debt service charge (136,705) (2,050) (271) (139,026) - Net cash (used in) capital and related financing activities 7,570,554 (8,547,520) (3,259,243) (4,236,209) (814,359) Cash flows from investing activities Interest received on investments 1,511,325 3,037,929 320,578 4,869,832 1,339,079 Proceeds from sale and maturities of investment securities (2,915,696) (8,328,742) (234,771) (11,479,209) (1,921,750) Net cash provided by investing activities (1,404,371) (5,290,813) 85,807 (6,609,377) (582,671) Net increase in cash and cash equivalents 8,480,437 (1,605,987) 269,442 7,143,892 1,671,619 Cash and cash equivalents - beginning of year 19,066,946 42,046,551 6,894,786 68,008,283 9,971,202 Cash and cash equivalents - end of year 27,547,383$ 40,440,564$ 7,164,228$ 75,152,175$ 11,642,821$ See Notes to Financial Statements 43 City of South Bend, Indiana Proprietary Funds Statement of Cash Flows (Continued) For the Year Ended December 31, 2024 Governmental ActivitiesEnterprise Funds Proprietary Wastewater Nonmajor Internal ServiceWater Utility Utility Enterprise Total Fund Classification of cash and cash equivalents Cash and investments 10,426,123$ 42,802,083$ 4,998,775$ 58,226,981$ 25,945,338$ Restricted cash and investments 24,246,238 17,629,347 4,574,602 46,450,187 21,189 Less amounts classified as investments (7,124,978) (19,990,866) (2,409,149) (29,524,993) (14,323,706) Total cash and cash equivalents 27,547,383$ 40,440,564$ 7,164,228$ 75,152,175$ 11,642,821$ Reconciliation of operating income (loss)to net cash from operating activities Operating income (loss)3,112,183 9,867,338 (1,056,260) 11,923,261 (3,503,622) Adjustments to reconcile operating income (loss)to net cash provided by (used in) operating activities:Depreciation 1,792,348 7,411,046 2,048,877 11,252,271 113,880 (Increase) decrease in assetsReceivables (12,657) (260,669) (13,671) (286,997) (27,688) Due from other funds (3,147) (27,587) (323) (31,057) - Inventory 69,822 49,735 90,306 209,863 (86,537) Prepaid expenses and other assets (4,268) - 22,003 17,735 (90,514) Increase (decrease) in liabilitiesAccounts payable (765,207) 634,459 (659,845) (790,593) 539,396 Taxes payable (15,453) 1,050 (15,191) (29,594) 4,102 Due to other funds - 343 (18,333) (17,990) 126 Accrued payroll payable 74,434 154,465 78,803 307,702 187,893 Compensated absences payable (1,091) 10,190 5,142 14,241 22,719 Customer deposits (2,474) 128,335 55,146 181,007 - Other current payables - (14,029) 199,390 185,361 - Estimate of unfiled claims - -- - 2,954,428 (Increase) decrease in deferred outflows of resources Pension items 132,027 108,089 35,089 275,205 (221,917) OPEB items 78,807 80,275 33,050 192,132 (50,897) Increase (decrease) in net pension liabilities 44,568 269,733 191,032 505,333 1,132,514 Increase (decrease) in OPEB liability (237,553) (215,573) (79,339) (532,465) 290,108 Increase (decrease) in deferred inflows of resources Pension items (32,280) (36,310) (16,171) (84,761) 3,095 OPEB items (17,653) 33,626 32,246 48,219 278,563 Total adjustments 1,100,223 8,327,178 2,028,211 11,455,612 5,049,271 Net cash provided by (used in) operating activities 4,212,406$ 18,194,516$ 971,951$ 23,378,873$ 1,545,649$ See Notes to Financial Statements 44 City of South Bend, Indiana Fiduciary Funds Statement of Fiduciary Net Position December 31, 2024 Pension Trust CustodialFundsFunds Assets Cash and cash equivalents 390,308$ 2,057,253$ Investments: U.S. Treasuries 398,352 - U.S. Government Agency Securities 96,680 - Tax-Exempt Municipal Bonds - - Receivables - Interest 4,347 - Total assets 889,687 2,057,253$ Liabilities Accounts payable 195 15,841 Customer deposits payable - 1,217,313 Police distribution payable - 824,099 Total liabilities 195 2,057,253$ Net position restricted for pensions 889,492$ See Notes to Financial Statements 45 City of South Bend, Indiana Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2024 Pension Trust CustodialFundsFunds Additions Investment income (loss) - Interest and dividends 45,977$ -$ Police asset seizures - 107,877 Contributions: On behalf 9,984,732 - Other (44) - Total contributions 9,984,688 - Customer deposits - 6,240,131 Total additions 10,030,665 6,348,008 Deductions Benefit payments 9,990,483 - Police distributions - 267,744 Police distributions payable - (159,867) Customer deposits distributed - 4,294,765 Customer deposits payable - 1,945,366 Administrative expenses 47,874 - Total deductions 10,038,357 6,348,008 Net (decrease) increase in net position (7,692) - Net position - Beginning of year 897,184 - Net position - End of year 889,492$ -$ See Notes to Financial Statements 46 Notes to Financial Statements 47 Note 1 – Summary of 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 reporting entity because of the significance of their operational or financial relationships with the primary government. Blended component units, although legally separate entities are in substance part of the government's operations and exist solely to provide services for the government; data from these units is combined with data of the primary government. 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 they are legally separate from the government. Component Units and Related Organizations Blended Component Units The City’s financial statements contain four blended component units: •The South Bend Redevelopment Authority is a significant blended component unit of theCity. 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 constructland, building, and other improvements for use by the City. •The City of South Bend Building Corporation is 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 andremodeling of City buildings. Debt of the Building Corporation is repaid through lease payments from the City. •The Urban Enterprise Association of South Bend (“UEA”) is a legally separate nonprofitcorporation, which is reported as if it were a part of the City because the City is the sole corporate member. The UEA exists exclusively to benefit the City through a variety ofeconomic development programs. Additionally, the City appoints the majority of its governing board, and the organization is staffed by City staff members through amanagement agreement. •The Venues Parks & Arts Foundation (“VPA Foundation”) is a legally separate nonprofit corporation, which is reported as if it were a part of the City. The VPA Foundation existssolely to raise money through donations and grants for the City. Financial statements for any of the City’s blended component units 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: 48 December 31, 2024 Notes to Financial Statements City of South Bend, Indiana Note 1 – Summary of Significant Accounting Policies (Continued) 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. 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 generally does not extend far beyond making the appointments. The mayor and the Common Council appoint the board members of the South Bend Housing Authority, 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. Basis of Presentation Governmental accounting principles require that financial reports include two different perspectives: the government-wide perspective and the fund-based perspective. Government-wide financial statements 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. All fiduciary activities are reported only in the fund financial statements. 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 basis of presentation found in the fund-based statements. The primary government is reported separately from the single 49 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 1 – Summary of Significant Accounting Policies (Continued) 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. Except for interfund activity and balances between the funds that underlie governmental activities and the funds that underlie business‐type activities, the effect of interfund activity has been eliminated from these statements. Fund Financial Statements The City accounts for its various activities in several different funds in order to demonstrate accountability for how it has spent certain resources; separate funds allow the City to show the particular expenditures for which specific revenue was used. The various funds are aggregated into three broad fund types: Governmental Funds Governmental funds include all activities that provide general governmental services that are not business-type activities. This includes the General Fund, special revenue funds, debt service funds, and capital project funds. The City reports the following funds as “major” governmental funds: •The General Fund is the primary operating fund because it accounts for all financialresources used to provide government services other than those specifically assigned to another fund. o As in prior years, the City has determined that neither the Rainy Day fund nor theLocal Income Tax Certified Shares fund met the requirements of a special revenue fund. Therefore, both are reported within the General Fund. •The Parks and Recreation Fund is used to account for the operation of the City parks system. Financing is provided by a specific annual property tax levy to the extent thatuser fees and miscellaneous revenues are insufficient to provide such financing. •The Local Income Tax – Public Safety Fund is used to account for the City's share of thepublic safety portion of the local income tax. Expenditures are restricted to public safety. •The Local Income Tax – Economic Development Fund is to account for the City's share of the economic development portion of the local income tax. Expenditures includeeconomic development and any lawful purpose of the City. •The American Rescue Plan Fund is used to account for the receipt and expenditures of thefunds that the City received from the American Rescue Plan Act of 2021. As a part of this legislation, Congress allocated $350 billion to state, local, territorial and Tribal governmentsto respond to the COVID-19 pandemic, provide economic relief, and lay the foundation for a strong and equitable recovery. •The River West TIF (Tax Increment Financing) Fund is used to account for public improvement projects in the river west economic development area. Financing is provided 50 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 1 – Summary of Significant Accounting Policies (Continued) 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 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 accounts for assets held by the City for assets seized by the South Bend Police Department during their normal operations as well as for customer depositsheld on behalf of promoters at the Morris Performing Arts Center. 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 governmentaland 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., theenterprise 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 the fund financial statements, these amounts are reported at gross amounts as transfers in/out. 51 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 1 – Summary of Significant Accounting Policies (Continued) Basis of Accounting Full Accrual Basis of Accounting The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash flows. Modified Accrual 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. •Revenue is recognized when it is both measurable and available. Revenues are considered available if they are collected during the fiscal year (or collected soon enough after the end of the year) that they are available to pay for obligations outstanding at theend of the year. For this purpose, the City considers amounts collected within 60 days of year end to be available for recognition. •Expenditures are reported when the goods are received, or the services are rendered.o Capital outlays are reported as expenditures (rather than as capital assets) because they reduce the ability to spend resources in the future.o Conversely, liabilities that will be funded in the future (such as pension and retiree healthcare related costs, debt obligations, and employee vacation pay)are not recorded as expenditures until they come due for payment. Elements of the Statement of Net Position 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 and money market investments are reported at fair value. Investment income, including changes in the fair value of investments, is reported as revenue in the operating statement. 52 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 1 – Summary of Significant Accounting Policies (Continued) 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 government-wide, proprietary fund, internal service 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 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. •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 tothe value of the asset or materially extend asset lives are not capitalized.•All land purchases are capitalized regardless of acquisition price. Land is neverdepreciated.•The City has implemented the requirements of GASB Statement No. 87 and determinedthat there were no assets that met the definition of a lease under the new standard. •Major outlays for capital assets and improvements are capitalized when projects havecompleted the construction phase. The City has implemented the requirements in GASBStatement No. 89, and no interest was capitalized during the construction of capital assetsof business-type activities.•Infrastructure, intangibles, buildings, equipment, roads, and vehicles are depreciatedusing 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 financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund-type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed at the time they are incurred. In the fund financial 53 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 1 – Summary of Significant Accounting Policies (Continued) 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 of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three items that qualify for reporting in this category: the deferred charge on refunding, deferred charges on pensions, and deferred charges on other post-employment benefits (OPEB) that are reported in the governmental activities statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows of resources are recorded with respect to pensions per GASB Statement No. 68 and OPEB per GASB Statement No. 75. Deferred Inflows of Resources 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 assets 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 gain on a refunding transaction, deferred inflows related to pensions (per GASB Statement No. 68) and OPEB (per GASB Statement No. 75), and deferred inflows related to property taxes receivable. The deferred inflow related to property taxes results from property taxes that are levied prior to the end of the fiscal year, but will not be received or legally allowed to be spent until a subsequent fiscal year. Flow Assumptions 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 government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Furthermore, when the components of unrestricted fund balance can 54 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 1 – Summary of Significant Accounting Policies (Continued) 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 heldfor 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 or by the SouthBend Redevelopment Commission. This formal action is the passage of an ordinance by the Council or resolution by the Commission specifying the purposes for which thefunds can be used. The same type of formal action is necessary to remove or change the use. The South Bend Common Council is the highest level of authority for the non-TIFFunds. The South Bend Redevelopment Commission is the highest level of decision- making authority for the TIF Funds and certain other Redevelopment Commission-controlled funds. •Assigned fund balances include amounts that are constrained by the City's intent to beused 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 isnot 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 positiveunassigned fund balance whereas other governmental funds may need to report anegative unassigned fund balance if expenditures incurred for specific purposesexceeded the amounts restricted, committed, or assigned to those purposes. Minimum Fund Balance Requirements 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. •General Fund: 50% of annual expenditures •Local Income Tax-Economic Development: 50% of annual expenditures •Water Works Operations: 5% of annual expenditures •Wastewater Operations: 5% of annual expenditures•Other: generally 25% of annual expenditures 55 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 1 – Summary of Significant Accounting Policies (Continued) The detail of the fund balance classifications of the governmental funds for the year ended December 31, 2024 can be found in Note 16. Revenues and Expenses / Expenditures 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 December 31 of the prior year. These rates are based on the taxable valuation of property as of the preceding January 1. Taxable property is assessed at 100% 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. Property taxes levied not later than December 31 are recorded as a receivable at year-end, reduced by any amounts received prior to December 31 (if any) and an estimated allowance for uncollectible property taxes with an offset to deferred inflows of resources for the same amount. Property tax revenue is recognized in the year for which the taxes are levied, subject to the available and measurable criteria for property taxes reported in the fund financial statements. Pension The City offers several defined benefit pension plans to its employees. For each plan, 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 net pension liability in each plan, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the pension plans' fiduciary net position have been determined on the same basis as they are reported by the pension plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Net pension liability, expenses and deferred inflows and outflows of resources for each plan are allocated between governmental activities and proprietary funds based on applicable salaries covered by each plan. Other Postemployment Benefit Costs The City offers post-employment 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, and OPEB expense of the City of South Bend Retiree Healthcare Plan (SBRHP) have been determined on the same basis as they are reported. OPEB liability, expense and deferred inflows and outflows of resources are allocated between governmental activities and proprietary funds based on applicable salaries. 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. o Police officers, teamsters, 40 hour-per-week firefighters, and all other employees earn 56 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 1 – Summary of Significant Accounting Policies (Continued) eight sick days per year, regardless of tenure of service. o Firefighters working 24-hour workdays with tenure greater than five years earn five daysof sick leave per year, and firefighters working 24-hour workdays with tenure less than five years, earn four days of sick leave per year. o Sick leave may accumulate to a maximum 90 days for police officers, 100 days for 40- hour-per-week firefighters, 38 days for 24-hour-per-day firefighters, 75 days forteamsters, and 65 days for all other employees. o Accumulated sick leave is paid to firefighters and police officers upon termination ofemployment depending upon the number of sick leave hours transacted, at a rate of 50% to 100% of the base hourly rate of pay for firefighters and at a rate of one-half thefirst class patrolman rank rate of pay for police officers. Accumulated sick leave is paid to teamster employees, upon retirement, at a rate of 50% of the employee’sbase regular rate of pay. o Sick leave buy-back during employment is paid to firefighters and police officersannually 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 hourlyrate 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 10 days to 28 days based upon hire date, years of service, and employee classification. o Vacation leave does not accumulate from year to year for police officers, firefighters, and teamster employees. Non-bargaining employees carry over to the following yearunused vacation time up to a maximum of 160 hours. o Unused vacation leave is paid to employees upon termination of employment. o 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 o 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 regularlyscheduled police practice shooting exercises. Police officers’ personal leave does not accumulate from year to year. o City employees under the teamster contract can use up to four days of their sick leave for personal leave. Personal leave of absence may be available for certain personal,family, and medical reasons when other forms of leave have been exhausted or otherwise not available. o 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 anemployee 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 notaccrue during this period. While every effort will be made to retain employment opportunities for an individual during this time, there is no guarantee of employment atthe completion of personal leave of absence. 57 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 1 – Summary of Significant Accounting Policies (Continued) •Compensatory Leave o City firefighters can elect to receive compensation for overtime hours worked eitherthrough wage payment or compensatory time off work up to a maximum of 240 hours. o All other non-exempt employees working overtime hours earn compensatory time offup to a maximum balance of 36 hours, after which they are paid overtime wage. o All exempt employees working overtime hours earn compensatory time up to amaximum 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 revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water and Wastewater Utility Funds, nonmajor proprietary funds, 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 revenues and expenses not meeting this definition are reported as nonoperating revenues 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, liabilities, deferred inflows of resources, and deferred outflows of resources, 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 and/or are anticipated to be reflected in the City’s financial statements for the year ending December 31, 2025: •GASB Statement 102: Certain Risk Disclosures: o Requires the disclosures in the notes to the financial statements of risks related to concentrations (lack of diversity related to an aspect of a significant inflow ofresources or outflow of resources) and constraints (limitation imposed on a government by an external party or by formal action of the government’shighest level of decision-making authority). Concentrations and constraints may limit a government’s ability to acquire resources or control spending. 58 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 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, Local Income Tax-Public Safety, LocalIncome Tax-Economic Development, American Rescue Plan •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 StateSeizure, Gift Donation Bequest, Unsafe Building, Law Enforcement Continuing Education, Rental Units Regulation, Loss Recovery Fund, Code Enforcement, Local Road and Street,LOIT 2016 Special Distribution, Human Rights Federal Grants, COVID-19 Response, Local Road and Bridge Grant, MVH Restricted, Hazmat, Indiana River Rescue, COPS MOREGrant, Federal Drug Enforcement, Urban Development Action Grant, Leaf Collection and Removal, City Cemetery, Bowman Cemetery, Industrial Revolving Fund •Debt Service Funds - 2003 Redevelopment Bond - Airport Taxable, 2003 Redevelopment Bond - Palais Royale, 2015 Smart Streets Bond Debt Service, 2015 Park Bond DebtService, 2017 Park Bond Debt Service, 2017 Eddy St. Commons Bond Debt Service, 2018 Fire Station #9 Bond Debt Service, 2018 TIF Park Bond Debt Service Reserve, 2019 SouthShore Double Tracking Bond Debt Service, 2020 TIF Library Bond Debt Service Reserve, Century Center Energy Conservation Debt Service, Redevelopment Authority DebtService, South Bend Building Corporation Debt Service •Capital Projects Funds – Fire Department Capital, Coveleski Stadium Capital, CumulativeCapital Development, Cumulative Capital Improvement, Major Moves, Professional Sports Convention Development Area, Morris Performing Arts Center Capital, RedevelopmentGeneral, 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, 2023 RDA Lease- Rental Bond Capital, 2024B RDA Bond – Madison Lifestyle District, 2024A RDA Bond –Four Winds Field, 2017 Park Bond Capital, 2017 Eddy St. Commons Bond Capital, 2018 Fire Station #9 Bond Capital, 2018 TIF Park Bond Capital, 2021 Infrastructure Bond Capital 59 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 2 – Stewardship, Compliance, and Accountability (Continued) On or before August 31, the City Controller submits to the Common Council a proposed operating budget for the year commencing the following January 1. Prior to adoption, the budget is advertised, and public hearings are conducted by the Common Council to obtain taxpayer comments. Prior to November 1 of each year, the Common Council, through the passage of an ordinance, approves the budget for the next year. Copies of the budget ordinance and the advertisement for funds for which property taxes are levied or highway use taxes are received are sent to the Indiana Department of Local Government Finance. The budget becomes legally enacted after the City Controller receives approval of the Indiana Department of Local Government Finance. The City's management cannot transfer budgeted appropriations between funds, departments, divisions, or cost categories (Personnel, Supplies, Services, or Capital) without approval of the Common Council. The Department of Local Government Finance must approve any revisions to the appropriations for any controlled fund or any department of the General Fund. The legal level of budgetary control is by fund, department, division and cost classification (Personnel, Services, Supplies, and Capital). Budgetary Excess of Expenditures over Appropriations Expenditures did not exceed appropriations for any funds or any departments within the General Fund, the Parks and Recreation Fund, the Local Income Tax-Public Safety Fund, the Local Income Tax-Certified Shares Fund, the Local Income Tax-Economic Development Fund, the American Rescue Plan Fund, or any other major or nonmajor governmental fund which required legally approved budgets. Fund Deficits As of December 31, 2024, the following funds reported a deficit in fund equity: Economic Development State Grants ($66,888) and Code Enforcement ($103,721) . These funds account for a variety of grants, some of which are paid on a reimbursement basis. This, plus expenditures awaiting a future funding source, accounts for the current fund deficit. This deficit will be repaid from future revenue. Note 3 – Deposits and Investments Allowable Investments In accordance with Indiana Code 5-13-9, the City of South Bend Common Council 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. The maturity on these investments may not exceed five (5) years, and at least 75% of the City’s investment portfolio must have a maturity of two (2) years or less. In accordance with state law, the Common Council has also authorized 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% 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 60 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 3 – Deposits and Investments (Continued) 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. Finally, the City may invest in municipal securities issued by an Indiana local governmental entity, a quasi-governmental entity related to the state, or a unit of government, municipal corporation, or special taxing district in Indiana, if the issuer has not defaulted on any of the issuer's obligations within the twenty (20) years preceding the date of the purchase. Deposit and Investment Risks The City's cash and investments are subject to several types of risk: 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. All City bank balances are insured by either the Federal Deposit Insurance Corporation or the Public Deposit Insurance Fund, which covers all public funds held in approved depositories. As such, 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, $108,989,300 in U.S. Treasuries and U.S. Government Agency Securities holdings 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. 61 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 3 – Deposits and Investments (Continued) 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 Time Deposits $79,076,438 $53,118,068 $24,177,288 $1,781,082 U.S. Treasuries 88,669,650 63,794,300 10,031,600 14,843,750 U.S. Government Agency Securities 20,319,650 6,642,915 8,693,940 4,982,795 Total $188,065,738 $123,555,283 $42,902,828 $21,607,627 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% 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 established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy below. In instances whereby inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The City’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. The City has the following recurring fair value measurements as of December 31, 2024: The fair value of Time Deposits, U.S. Treasuries, and U.S. Government Agency securities of $188,065,738 are valued using significant other observable inputs (Level 2 inputs). The City’s Level 2 holdings are valued using a matrix pricing model with inputs from prices and yields of similar fixed income holdings. 62 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 4 – Receivables The following receivable accounts have timing and credit characteristics different from typical accounts receivable. Loans Receivable As of December 31, 2024, City funds recognized the following loan receivable balances. The schedule shows the total receivable and the portion that is not due within one year. These loans were for economic development projects: Receivable Noncurrent TIF River West $444,500 $419,500 Nonmajor governmental funds: Community investment grants 113,988 88,911 Industrial revolving fund 11,100,255 8,658,199 Total nonmajor governmental funds $11,214,243 $8,747,110 Note 5 – Net Investment in Capital Assets The net investment in capital assets as of December 31, 2024 is calculated as follows: Governmental Activities Business-type Activities Total Capital assets not subject to depreciation $109,099,844 $20,741,939 $129,841,783 Capital assets subject to depreciation - Net 241,239,764 201,350,612 442,590,376 Deferred outflows (capital related) 1,454,752 212,885 1,667,637 General obligations bonds payable-current (1,150,000) -(1,150,000)Revenue bonds payable - current (8,901,766) (8,135,000) (17,036,766)Mortgage bonds payable - current (290,000) - (290,000) Notes and loans payable - current (315,561) (27,262) (342,823)Financed purchase agreements payable-current (6,064,941) (1,258,294) (7,323,235) General obligations bonds payable-noncurrent (11,502,293) -(11,502,293)Revenue bonds payable - noncurrent (194,599,428) (51,804,449) (246,403,877)Mortgage bonds payable - noncurrent (2,947,746) - (2,947,746) Notes and loans payable - noncurrent (1,853,754) (116,882) (1,970,636)Financed purchase agreements payable-noncurrent (11,655,891) (2,870,923) (14,526,814)Deferred inflows (capital related) - (510,372)(510,372)Unspent debt proceeds 99,342,878 13,637,226 112,980,104 Net investment in capital assets $ 211,855,858 $171,219,480 $383,075,338 The business-type activities' unspent debt proceeds are financed purchase agreement proceeds, reported as restricted assets. 63 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 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, 2024 Additions / Transfers Disposals / Transfers Balance December 31, 2024 Capital assets, non-depreciable Land $14,697,605 - - $14,697,605 Construction in progress $25,337,577 69,064,662 - 94,402,239 Total capital assets, non-depreciable 40,035,182 69,064,662 - 109,099,844 Capital assets, depreciable Buildings $150,847,944 6,953,015 -$157,800,959Improvements other than buildings 55,206,493 197,453 -55,403,945Machinery and equipment 63,575,393 4,161,156 (2,605,824) 65,130,725Roads and other infrastructure 510,099,659 315,175 - 510,414,835 Subtotal 779,729,489 11,626,799 (2,605,824) 788,750,464 Less accumulated depreciation for: Buildings $71,157,743 4,143,437 - $75,301,180Improvements other than buildings 18,423,194 2,104,509 -20,527,702 Machinery and equipment 47,002,838 3,885,797 (2,605,824) 48,282,811Roads and other infrastructure 392,492,163 10,906,844 - 403,399,007Subtotal 529,075,937 21,040,586 (2,605,824) 547,510,700 Net capital assets, depreciable 250,653,552 (9,413,787) - 241,239,764 Total governmental activities capital assets, net $290,688,734 $59,650,875 -$350,339,608 Business-type Activities Business-type Activities Balance January 1, 2024 Additions / Transfers Disposals / Transfers Balance December 31, 2024 Capital assets, non-depreciable Land $2,586,613 - - $2,586,613 Construction in progress $1,383,548 16,771,779 - 18,155,327 Total capital assets, non-depreciable 3,970,161 16,771,779 - 20,741,939 Capital assets, depreciable Buildings $90,278,919 590,770 - $90,869,689Improvements other than buildings 27,161,302 - - 27,161,302 Machinery and equipment 43,385,449 2,764,101 (489,972) 45,659,578Roads and other infrastructure 250,557,157 - - 250,557,157Subtotal 411,382,826 3,354,871 (489,972) 414,247,725 Less accumulated depreciation for: Buildings $47,274,941 1,986,344 - $49,261,285Improvements other than buildings 14,785,557 1,245,469 -16,031,026Machinery and equipment 34,496,735 2,935,131 (489,972) 36,941,894Roads and other infrastructure 105,596,491 5,066,417 - 110,662,908 Subtotal 202,153,724 11,233,361 (489,972) 212,897,114 Net capital assets, depreciable 209,229,102 (7,878,490) - 201,350,612 Total business-type activities capital assets, net $213,199,262 $8,893,289 -$222,092,551 64 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 6 – Capital Assets (Continued) Depreciation 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 $342,604 Public safety 3,486,648 Highways and streets, and other general infrastructure 12,129,722 Culture and recreation 512,787 Economic development 4,454,289 Internal service funds 114,537 Total governmental activities depreciation expense $21,040,586 Business-type Activities: Water 1,792,348 Wastewater 7,407,088 Century Center 1,244,885 Building department 9,896 Parking garages 272,023 Solid waste 507,121 Total business-type activities depreciation expense $11,233,361 Construction in Progress The City has active construction projects at year end. As of December 31, 2024, the City's commitments with contractors are as follows: Project Spent to Date Remaining Commitment Governmental activities: 2022 Curb and Sidewalk $783,989 $855,080 2022 VPA Athletic Court Renovations 1,529,477 501,167 2023 Curb & Sidewalks 952,489 10,071,801 2024 Curb & Sidewalk 631,468 777,764 2024 Light Up South Bend 94,843 165,157 Angela Blvd Improvements 2,852,669 588,331 Bendix Drive Improvements 422,589 1,628,411 Bercliff Estates Drainage 672,301 65,068 Brick Spot Repair 129,085 20,915 Byer’s Softball Complex 2024 Renovation 332,444 3,021,406 Century Center Chiller 115,997 34,658 Century Center Electrical & HVAC Improvements 65,635 154,778 Century Center Gate 1,586 195,415 Century Center Kitchen 67,243 405,275 Century Center Restrooms 193,056 84,696 Charles Black Bld Improvements 10,000 94,138 Coal Line Trail 151,818 4,340,713 Coal Line Trail Phase III 142,954 219,046 Community Crossings 2022 1,801,128 3,553,682 Community Crossings 2023 1,526,148 1,683,852 Community Crossings 2024 63,472 3,568,431 Contracted Paving 27,244 1,493,696 Custom Pumper Fire Trucks 560,240 560,240 East Race Assessment & Repair 19,295 127,061 65 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 6 – Capital Assets (Continued) Project Spent to Date Remaining Commitment Eddy & Howard Street Intersection Improvements 2,237,474 1,232,795 Elbel Architectural 10,182 6,818 Fire Station #8 Renovations 4,275,430 204,570 Fire Station Solar Panels & Roof 43,020 56,980 Four Winds Field Renovations 4,841,793 43,810,724 Gravity Belt 823,186 5,131,102 Greenleaf Holdings 55,646 610,026 High Street Improvements 191,031 133,969 Internal Crack Sealing 87,750 2,250 Ireland & Ironwood Intersection 60,333 1,887,806 Johnson & Fellows Intersection Drainage Improvement Project 133,275 116,725 LaSalle / Colfax Streetscape Improvements 1,541,560 6,327,419 Leeper Ave Bridge Repairs 463,400 106,424 Leeper Tennis Court Improvements 7,307 392,694 Lincoln Way West Streetscape - Olive St Node 740,822 1,504,178 Madison Lifestyle District 1,881,229 18,212,346 Marion St. Pedestrian Bridge 96,230 2,903,770 Market Dist Planning 122,035 2,877,965 Mishawaka Ave Streetscape Improvements 316,963 3,689,037 MLK Dream Center 22,472,083 5,344,722 Monroe Circle 1,887,531 257,469 MPAC GESC Project (Ameresco) 2,245,228 3,144,908 MPAC Additions 197,435 1,646,506 MPAC Raclin Murphy Encore Center 1,436,436 15,213,639 MPAC Theater 168,889 841,234 Multi-Component Striping 829 69,171 Neighborhood Traffic Calming 535,544 1,952,797 New City Hall Renovations 612,112 10,281,003 Notre Dame Trail 9,258,790 2,214,312 Paving Projects Ongoing 7,637,263 1,865,567 Potawatomi Park Improvements 25,500 4,774,500 River Lights 3,256 76,744 Safe Routes to School (SRTS) Kennedy Academy 199,475 100,525 Seitz Park Reconstruction 11,975,274 5,036,199 Signal Improvements 58,788 411,497 Snow Route Sign Installation 43,650 6,350 SRTS Muessel Primary and Holy Cross School Area 84,696 640,684 Studebaker Museum Skylight 4,450 80,550 Technology Resource Center Improvements 250,527 3,278,667 Traffic Calming 90,227 331,977 VPA Splashpads 839,365 84,673 Walker Field Restrooms 245,776 354,219 West Race Gate Repair 635,965 44,035 YSB & SB Thrive Subdivision 2,417,314 1,029,058 Total - governmental activities $94,402,239 $182,499,385 Business-type activities: Century Center Master Planning 84,771 7,676 Century Center Water 93,060 29,384 Edison WTP Improvements 143,800 1,056,200 Fellows Reservoir 127,970 488,031 IFA Lead Service Program 107,754 302,246 IN TEK Odor Control 14,594 269,792 66 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 6 – Capital Assets (Continued) Project Spent to Date Remaining Commitment Pinhook Water Treatment Plant Improvements 746,026 1,355,974 Portage Prairie Water Main Extension 39,775 100,225 Public Works Service Center Roof Replacement 78,107 1,035,453 Sewer & Manhole Rehab 7,521 2,117,544 South Wellfield Plant & Pressure Zone Improv. 1,922,658 3,303,537 Wastewater CNG Compressor 40,367 1,666,507 Wastewater Comb Sewer Overflow 118,666 881,334 Wastewater Infrastructure Improvements 14,291,481 1,543,339 Wastewater SCADA 89,534 3,610,466 Wastewater Solar GESC 226,781 2,073,218 Watermain Replacement at Greenlawn 22,462 662,850 Total - business-type activities $18,155,327 $20,503,776 Total $112,557,566 $203,003,161 Note 7 – Interfund Receivables, Payables, and Transfers Interfund Receivables & Payables 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 as of December 31, 2024 is as follows: Receivable Fund Payable Fund Amount General Nonmajor governmental 66,903 Water Utility General $4,183 Parks & Recreation 3,008 Local Income Tax-Economic Development 81 Nonmajor governmental 773 Wastewater Utility 2,671 Nonmajor enterprise 1,879 Internal service 235 Total Water Utility 12,829 Wastewater Utility General 24,438 Parks & Recreation 5,600 Local Income Tax-Economic Development 288 Nonmajor governmental 3,309 Nonmajor enterprise 7,172 Internal service 1,238 Total Wastewater Utility 42,045 67 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 7 – Interfund Receivables, Payables, and Transfers (Continued) Receivable Fund Payable Fund Amount Nonmajor enterprise General 641 Parks & Recreation 544 Local Income Tax-Economic Development 54 Nonmajor governmental 117 Wastewater Utility 478 Internal service 70 Total Nonmajor enterprise 2,227 Nonmajor governmental General 13 Parks & Recreation 12 Local Income Tax-Economic Development 5 Nonmajor enterprise 3 Wastewater Utility 9 Internal service 1 Total Nonmajor governmental 52 Total $124,056 Interfund Advances The City has made the following advances between funds: Receivable Fund Payable Fund Amount Nonmajor governmental Nonmajor governmental $515,948 Total $515,948 The Major Moves Fund advanced funds to the TIF-River East Residential for project costs incurred to construct roads and a parking garage. Interfund Transfers Interfund transfers reported in the fund financial statements are comprised of the following: Receiving Fund Paying Fund Amount General Local Income Tax-Economic Development 568,771 River West TIF 1,578,300 Nonmajor governmental 4,452,115 Total General Fund 6,599,186 Parks and Recreation General Fund 6,000,000 River West TIF Nonmajor governmental 6,741,141 Nonmajor governmental General Fund 7,100,000 Local Income Tax-Economic Development 9,666,741 River West TIF Nonmajor governmental 2,092,000 2,867,740 Water Utility 1,769,356 Wastewater Utility 7,575,889 Nonmajor Enterprise 1,145,073 Total Nonmajor governmental 32,216,799 Water Utility Nonmajor governmental 139,069 Wastewater Utility Nonmajor governmental 3,212,612 Nonmajor Enterprise Nonmajor governmental 933,000 68 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 7 – Interfund Receivables, Payables, and Transfers (Continued) Internal Service Local Income Tax-Economic Dev. 1,523,000 Governmental Activities Water Utility Wastewater Utility Nonmajor Enterprise Total Governmental Activities 267,865 1,598,893 25,201 1,891,959 Grand Total 52,256,766 The City typically uses transfers to fund ongoing operating subsidies into the General Fund, the Parks & Recreation Fund, and various nonmajor governmental funds. Note 8 – Financed Purchase Agreements Leases as financing for purchases The City has entered into various lease agreements as lessee for financing the purchase of various types of equipment. Future minimum financed purchase agreement payments and present values of the net minimum payments under these financed purchase agreements as of December 31, 2024 are as follows: Governmental Activities Total to Be Paid Principal Interest 2025 $ 7,482,645 $ 6,784,499 $ 698,146 2026 5,930,943 5,441,833 489,110 2027 3,794,527 3,496,338 298,189 2028 2,298,889 2,160,619 138,270 2029 1,004,069 977,459 26,610 $ 20,511,073 $ 18,860,747 $ 1,650,325 Business-Type Activities Total to Be Paid Principal Interest 2025 $ 1,393,587 $ 1,258,294 $ 135,293 2026 1,216,808 1,163,786 53,022 2027 1,227,601 1,204,194 23,408 2028 517,069 502,943 14,126 2029 - - - $ 4,355,066 $ 4,129,217 $ 225,849 69 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 9 – Long-term Obligations Long-Term Obligations Summary Long-term obligations activity for the year ended December 31, 2024 is summarized as follows: Governmental Activities Beginning Balance Additions Reductions Ending Balance Due Within One Year Governmental activities: Bonds payable: General obligation $13,625,000 $- $(1,110,000) $12,515,000 $1,150,000 Less unamortized (discounts)/premiums 159,064 -(21,771) 137,293 - Net - general obligation 13,784,064 -(1,131,771) 12,652,293 1,150,000 Mortgage 3,450,000 -(280,000) 3,170,000 290,000 Less unamortized (discounts)/premiums 75,391 -(7,645) 67,746 - Net - Mortgage 3,525,391 -(287,645) 3,237,746 290,000 Revenue 137,750,067 69,340,000 (10,092,408) 196,997,659 8,901,766 Less unamortized (discounts)/premiums 6,512,305 706,002 (714,773) 6,503,534 - Net - Revenue 144,262,372 70,046,002 (10,807,181) 203,501,193 8,901,766 Total bonds payable 161,571,827 70,046,002 (12,226,597) 219,391,232 10,341,766 Notes from direct borrowings payable 2,478,630 -(309,315) 2,169,315 315,561 Financed purchase agreements 16,257,167 8,650,221 (6,046,641) 18,860,747 6,784,499 Subtotal 180,307,624 78,696,223 (18,582,553) 240,421,294 17,441,826 Accumulated compensated absences 5,545,109 866,302 -6,411,411 6,411,411 Net pension liability 148,065,944 4,655,759 -152,721,703 - Total other post-employment benefits (OPEB) liability 23,042,952 -(1,636,248) 21,406,704 - Total governmental activities $356,961,628 $84,218,284 $(20,218,801) $420,961,112 $23,853,237 Business-type Activities Beginning Balance Additions Reductions Ending Balance Due Within One Year Business-type activities: Bonds payable: Revenue $40,725,000 $24,898,439 $(7,340,000) $58,283,439 $8,135,000 Less unamortized (discounts)/premiums 2,054,745 -(398,736) 1,656,009 - Net - revenue 42,779,745 24,898,439 (7,738,736) 59,939,448 8,135,000 Financed purchase agreements 2,957,005 2,200,000 (1,027,788) 4,129,217 1,258,294 Notes from direct borrowings payable 170,517 -(26,373) 144,144 27,262 Subtotal 45,907,267 27,098,439 (8,792,897) 64,212,809 9,420,556 Accumulated compensated absences 170,552 14,241 -184,793 184,793 Net pension liability 6,306,929 505,333 -6,812,262 - Total other post-employment benefits (OPEB) liability 4,014,507 -(532,465) 3,482,042 - Total business-type activities $56,399,255 $27,618,013 $(9,325,362) $74,691,906 $9,605,349 Total interest expense for the year was $8,341,184. The City does not have any unused lines of credit. 70 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 9 – Long-term Obligations (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. Utility Revenue Bonds 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 2024, the Water Utility paid $1,088,942 in debt payments or approximately 5.47% of operating revenue. The Wastewater Utility paid $7,623,195 in debt payments or approximately 16.52% of operating revenue. Other Revenue Bonds 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 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. 71 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Bonds Outstanding as of December 31, 2024 Purpose Outstanding 12/31/2024 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 8,760,000 General Obligation Bonds, Series 2018 (Fire Station #9) -Interest rates 3% - 3.25% -Original issue $5,045,000-Installments of $75,000 to $170,000 plus interest-Maturity January 15, 2038 3,775,000 Total General Obligation Bonds $ 12,515,000 Mortgage Bonds Building Corporation First Mortgage Revenue Bonds, Series 2013 -Original issue $5,580,000 -Installments of $215,000 to $425,000 plus interest-Maturity February 1, 2033 3,170,000 Total Governmental Mortgage Bonds $ 3,170,000 Revenue Bonds 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 18,015,000 South Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds, Series 2013 -Interest rates 2% - 4% -Original issue $3,990,000-Installments of $160,000 to $375,000 plus interest *-Maturity May 1, 2026 535,000 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- Maturity December 31, 2034 1,452,659 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 17,330,000 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 3,600,000 72 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 9 – Long-term Obligations (Continued) 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 22,015,000 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 7,385,000 Economic Development Revenue Bonds, Series 2018 (Potawatomi Zoo Project) -Interest rates 4% - 5%-Original issue $3,440,000-Installments of $25,000 to $155,000 plus interest - Maturity February 1, 2034 2,410,000 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 4,900,000 2020 Taxable Economic Development Tax Increment Revenue Bonds (Library Project) -Interest rates 2% - 3%-Original issue $4,225,000-Installments of $75,000 to $160,000 plus interest -Maturity February 1, 2037 3,475,000 2021 Building Corporation LIT Lease Rental Revenue Bonds (Infrastructure Projects) -Interest rates 3% - 4% -Original issue $7,610,000-Installments of $150,000 to $315,000 plus interest -Maturity August 1, 2036 6,320,000 South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2022 (Morris PAC Project) -Interest rates 3% - 3.125% -Original issue $6,395,000-Installments of $190,000 to $365,000 plus interest-Maturity February 1, 2046 5,910,000 Economic Development Lease Rental Revenue Bonds, Series 2022 (Potawatomi Zoo Project)-Interest rates 2% - 4% -Original issue $5,715,000-Installments of $215,000 to $365,000 plus interest-Maturity February 1, 2042 5,155,000 Redevelopment Authority Lease Rental Revenue Bonds, Series A of 2023 -Interest rates 2% - 4% -Original issue $29,155,000-Installments of $110,000 to $1,530,000 plus interest-Maturity February 1, 2041 29,155,000 Redevelopment Authority Lease Rental Revenue Bonds, Series A of 2024 (Four Winds Field) -Interest rates 4% - 5% -Original issue $44,860,000-Installments of $730,000 to $1,720,000 plus interest-Maturity February 1, 2044 44,860,000 73 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 9 – Long-term Obligations (Continued) Redevelopment Authority Lease Rental Revenue Bonds, Series B 2024 (Madison Lifestyle District) -Interest rates 4.97% - 5.58%-Original issue $24,480,000 -Installments of $160,000 to $1,460,000 plus interest-Maturity February 1, 2041 24,480,000 Total Governmental Revenue Bonds $ 196,997,659 Total Governmental Activities $ 212,682,659 Business-Type Activities Revenue Bonds Amended Water Works Revenue Bonds of 2009, Series B -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 2,025,000 Sewage Works 2020 Refunding Revenue Bonds (Refunding 2010) -Interest rates 4% -Original issue $4,830,000-Installments of $150,000 to $555,000 plus interest-Maturity December 1, 2030 3,025,000 Water Works Revenue Bonds of 2012 -Interest rates 2% - 3.7% -Original issue $8,300,000-Installments of $340,000 to $540,000 plus interest-Maturity January 1, 2033 3,860,000 Sewage Works Revenue Bonds Series 2012 -Interest rates 2% - 2.75%-Original issue $25,000,000 -Installments of $1,105,000 to $1,650,000 plus interest-Maturity December 1, 2032 11,725,000 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 3,025,000 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 930,000 Sewage Works Refunding Revenue Bonds of 2021 -Interest rates 2% - 5%-Original issue $12,450,000 -Installments of $1,160,000 to $1,310,000 plus interest-Maturity December 1, 2031 8,795,000 74 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 9 – Long-term Obligations (Continued) Sewage Works Revenue Bonds of 2023 -Interest rates 2% - 5%-Original issue $32,150,000-Installments of $1,160,000 to $1,310,000 plus interest -Maturity December 1, 2034 14,155,439 Water Works Revenue Bonds 2024 (SRF) -Interest rates 2% - 5%-Original issue $10,743,000 -Installments of $1,160,000 to $1,310,000 plus interest-Maturity December 1, 2045 10,743,000 Total Business-Type Revenue Bonds $ 58,283,439 Total Business-Type Activities $ 58,283,439 Notes from Direct Borrowings and Direct Placements Purpose Outstanding 12/31/2024 Governmental Activities 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 $ 2,169,315 Total governmental activities $ 2,169,315 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 $ 144,144 Total business-type activities $ 144,144 Other Long-term Liabilities All of the December 31, 2024 compensated absences liabilities 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. Debt Service Requirements to Maturity Annual debt service requirements to maturity for the above obligations are as follows: 75 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 9 – Long-term Obligations (Continued) Bonds (General Obligation, Revenue, and Mortgage) Governmental Activities Business-type Activities Year Ending December 31 Principal Interest Total Principal Interest Total 2025 $10,341,766 $9,273,322 $19,615,088 $8,135,000 $1,523,327 $9,252,540 2026 12,634,039 8,491,749 20,967,869 4,576,144 1,326,520 6,012,664 2027 13,094,023 7,955,539 21,049,562 4,426,271 1,177,595 5,703,866 2028 13,878,378 7,438,169 21,316,547 4,851,398 1,030,949 5,982,347 2029 14,611,281 6,877,393 21,488,674 4,854,737 878,444 - 2030-2034 77,708,172 24,840,384 102,548,555 15,212,824 2,349,564 17,562,388 2035-2039 52,090,000 8,987,710 61,077,710 7,574,372 1,158,567 8,732,939 2040-2044 17,775,000 1,838,719 19,613,719 8,292,693 440,644 8,733,338 2045-2049 550,000 17,266 567,266 360,000 1,188 - Totals $212,682,659 $75,720,250 $288,244,989 $58,283,439 $9,886,798 $61,980,081 Notes from Direct Borrowings Governmental Activities Business-type Activities Year Ending December 31 Principal Interest Total Principal Interest Total 2025 $315,561 $73,193 $388,754 $27,262 $4,858 $32,120 2026 321,964 62,093 384,057 28,181 3,939 32,120 2027 328,529 50,767 379,296 29,130 2,989 32,119 2028 335,259 39,210 374,469 30,112 2,008 32,120 2029 342,159 27,417 369,576 29,459 993 30,452 2030-2034 525,843 18,469 544,312 - - - Totals $2,169,315 $271,148 $2,440,463 $144,144 $14,786 $158,930 Note 10 – Restricted Assets As of December 31, 2024, the balances of restricted assets in the enterprise funds are comprised of the following: Water Wastewater Nonmajor Enterprise Total Enterprise Funds Debt Service $1,980,096 $ 2,247,542 $ -$ 4,227,638 Customer repair and deposit 1,409,762 3,238,307 -4,648,069 Cash with fiscal agent 11,053,967 5,298,125 2,777,837 19,129,929 Bond reserve 1,509,205 168,429 -1,677,634 Operating reserve 3,165,923 6,030,951 -9,196,874 Capital outlay 5,127,285 645,993 1,796,765 7,570,043 Total restricted assets $24,246,238 $17,629,347 $4,574,602 $46,450,187 Note 11 – Property Held for Resale The City's Redevelopment Commission has purchased properties in blighted areas for redevelopment and subsequent resale. As of December 31, 2024, the market value of these properties is not known. These properties are recognized as assets in the funds that purchased the 76 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 11 – Property Held for Resale property. In the General Fund, the proceeds from the sale of these assets are not expected to have internal or external restrictions on use,and are thus classified as nonspendable fund balance. In all other funds, proceeds from the sale of assets is expected to have internal or external restrictions and, thus, property held for resale in funds other than the General Fund is classified as restricted, committed, or assigned fund balance. 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 four times to now be through December 31, 2024. 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. ASM Global 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 was amortized over seventy-two (72) months and is fully amortized as of December 31, 2024. No other assets or liabilities or deferred inflows of resources are remaining on the financial statements related to this SCA. 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. 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 2022, 2023, or 2024. There were no significant reductions in insurance by major category of risk. Liability Insurance The City has chosen to establish a risk financing fund for risks associated with job-related illnesses or injuries to employees, automobile liability, and comprehensive liability. The risk financing fund is accounted for in the Liability Insurance Premium Reserve Fund, an internal service fund, whereby assets are set aside for claim settlements. Excess policies through commercial insurance covers individual claims in excess of $400,000 per claim for job-related illnesses or injuries to employees (workers' compensation) and claims for damage to and destruction of assets (property damage) with various self-retention amounts. 77 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 13 – Risk Management (Continued) In recent years, no claims resulting from property damage exceeded the property insurance self-retention amount. 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. Claim expenditures and liabilities of the fund are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported (IBNRs). Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts, and other economic and social factors. The entire insurance liability balance is reported as a current liability as the City has the intent to pay within one year. Group Health Insurance The City has chosen to establish a risk financing fund for risks associated with medical benefits of employees and their covered dependents. The risk financing fund is accounted for in the Self-Funded Employee Benefits Fund, an internal service fund, whereby assets are set aside for benefit costs. An excess policy through commercial insurance covers individual claims in excess of $300,000 per year. No claims exceeded the self-retention amount during 2022, 2023, or 2024. 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. Changes in the estimated liability for the past two fiscal years were as follows: Liability Insurance Group Health 2024 2023 2024 2023 Unpaid claims - Beginning of year $4,799,180 $3,512,330 $1,137,030 $1,073,788 Incurred claims, including claims incurred but not reported 5,076,259 2,633,062 16,271,626 16,560,413 Claim payments (1,871,458) (1,346,212) (16,505,831) (16,497,171) Unpaid claims - End of year $8,003,982 $4,799,180 $902,825 $1,137,030 Note 14 – Subsequent Events In July, 2025, the South Bend Common Council issued $2.57 million of Redevelopment District bonds issued by the South Bend Redevelopment Commission. These bonds were secured by a Residential Infrastructure Fund (RIF) loan through the Indiana Finance Authority (IFA). Proceeds from the bonds will support infrastructure for a planned residential development at the former Drewrey’s Brewery site and adjacent Portage Elwood shopping plaza. In 2025, Indiana Senate Bill 1 (SEA 1) enacted major changes to the state's tax laws that will reduce the number of taxpayers subject to business personal property tax and lower the assessed value of 78 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 14 – Subsequent Events equipment. These reforms, which continue through 2031, will also significantly impact Tax Increment Financing (TIF) districts and property tax abatements, potentially reducing general fund and local income tax distributions. 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 secured 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, 2024, there were five series of conduit debt obligations outstanding: Issue Description Issue Date Maturity Date Original Issue Amount Estimated Amt Outstanding (12/31/2024) PEI/GENESIS Project 1/30/2007 4/1/2033 $ 8,105,000 $ 3,670,000 Erskine Commons Project 2/8/2006 2/1/2025 2,440,000 115,000 Stanley Clark School Project 12/9/2005 11/1/2030 15,000,000 5,760,000 Erskine Village Project 4/19/2005 2/1/2027 5,485,000 1,310,000 Southfield Village Project 5/1/1999 11/15/2029 17,665,000 6,550,000 $ 48,695,000 $ 17,405,000 79 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 16 – Fund Balance Constraints The detail of the various components of fund balance is as follows: General Fund Parks and Recreation Local Income Tax Public Safety Local Income Tax Economic Development American Rescue Plan River West TIF Nonmajor Funds Total Fund Balances Nonspendable Advances to other funds $- $- $- $- $- $- $515,948 $515,948 Inventory - 42,736 - - - - -42,736 Property held for resale 175,000 - - - - - - 175,000 Total Nonspendable 175,000 42,736 - - - - 515,948 733,684 Restricted Debt service - - - - - - 16,248,347 16,248,347 General administration - - - - 977,341 -2,973,507 3,950,848 Police and fire salaries - - 6,507,357 - - -- 6,507,357 Police and fire programs - - - - - - 1,514,328 1,514,328 Street maintenance - - - - - - 5,198,098 5,198,098 Economic development - - - - -29,486,803 65,312,338 94,799,141 Parks maintenance -8,091,766 - - -- 4,598,984 12,690,750 Public safety capital --- - -- 344,866 344,866 Cultural capital projects --- - -- 80,042,658 80,042,658 Street capital projects --- - -- 2,677,695 2,677,695 Total Restricted -8,091,766 6,507,357 -977,341 29,486,803 178,910,821 223,974,088 Committed General administration - - - - - - 4,621,517 4,621,517 Street capital projects - - - - - - - - Police and fire programs - - - - - - 61,270 61,270 Economic development - - - - - - 3,875,390 3,875,390 Cultural capital - - - - - - 6,090,347 6,090,347 Total Committed - - - - - - 14,648,524 14,648,524 Assigned General administration - - - 29,238,770 - - - 29,238,770 Police and fire programs - - - - - - - - Street maintenance - - - - - - 594,381 594,381 Economic development - - - - - - 466,501 466,501 Cultural projects - - - - - - - - Total Assigned - - - 29,238,770 - - 1,060,882 30,299,652 Unassigned 98,229,348 - - - - - (170,609) 98,058,739 Total fund balances 98,404,348 8,134,502 6,507,357 29,238,770 977,341 29,486,803 194,965,566 367,714,687 Note 16 – Fund Balance Constraints Local Income Tax-Public Safety 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. The Local Income Tax-Economic Development fund is 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. 80 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 17 – 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 section 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., Suite 1200N, South Bend, IN 46601, Phone: (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, 2024, the City contributed $1,231,486 to the plan for current premiums. Police and fire members receiving benefits contributed approximately 35.9% of the total premiums through their required contribution of $223 per month for retiree-only coverage in the PPO plan and $141 per month for retiree-only coverage for the HSA plan. Additionally, police and fire members contributed approximately 40.9% of the total premiums through their required contribution of $699 for retiree and spouse coverage in the PPO plan and $420 per month for retiree and spouse coverage in the HSA plan. General employee members receiving benefits contributed 100% of the total premiums through their required contribution of $648.51 and $611.99 per month for retiree-only coverage and $1,709.30 and $1,592.10 for retiree and spouse coverage for the PPO and HSA plans, respectively. 81 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 17 – Other Postemployment Benefits (Continued) Employees Covered by Benefit Terms At December 31, 2024, the following employees were covered by the benefit terms: Active employees with coverage 1,011 Active employees without coverage - Retirees 97 Total 1,108 Total OPEB Liability The City’s total OPEB liability of $24,888,746 was measured as of December 31, 2024, as determined by an actuarial valuation as of that date. Actuarial Assumptions and Other Inputs The total OPEB liability in the December 31, 2024 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% per year Salary increases 2.65%, average, including inflation Discount rate 4.28% as of December 31, 2024 and 4.00% as of December 31, 2023 Healthcare cost trend rates 7.5% for 2025, decreasing 0.5% per year to an ultimate rate of 4.5% for 2031 and later years Retirees' share of benefit-related costs approximately 35.5% for projected health insurance premiums for retirees and approximately 40.4% for retiree and spouse The discount rate was based on a yield for 20-year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale). Mortality assumptions are set to reflect general population trends based upon Pub-2010 Mortality tables and the most recent generational projection scale MP-2021 released by the Society of Actuaries (SOA) for future mortality improvement. The actuarial assumptions used in the December 31, 2024 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. 82 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 17 – Other Postemployment Benefits (Continued) Changes in the Total OPEB Liability Total OPEB Liability Total OPEB Liability as of January 1, 2024 $27,057,459 Changes for the year: Service cost 1,124,783 Interest 1,102,900 Changes in benefit terms - Differences between expected and actual experience (630,947) Changes in assumptions or other inputs (2,533,963) Benefit payments (1,231,486) Net changes (2,168,712) Total OPEB Liability as of December 31, 2024 $24,888,746 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, 2024, 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 (3.28%) or 1-percentage-point higher (5.28%) than the current discount rate: 1% Decrease Discount Rate 1% Increase (3.28%) (4.28%) (5.28%) Total OPEB Liability 27,239,527 24,888,746 22,784,293 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 (6.5% decreasing to 3.5%) or 1-percentage-point higher (8.5% decreasing to 5.5%) than the current healthcare cost trend rate: Healthcare 1% Decrease Cost Trend 1% Increase (6.5% Rates (7.5% (8.5% decreasing decreasing decreasing to 3.5%) to 4.5%) to 5.5%) Total OPEB Liability 22,337,878 24,888,746 27,897,698 Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2024, the City recognized OPEB expense of $1,092,694. As of December 31, 2024, 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 experience $1,775,898 $(6,412,584) Changes in assumptions or other inputs 4,442,213 (6,991,227) Total $6,218,111 $(13,403,811) 83 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 17 – 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 2025 (1,134,990) 2026 (1,134,990) 2027 (1,134,990) 2028 (1,134,986) 2029 (472,089) Thereafter (2,173,655) Note 18 – Pension Plans Plan Descriptions Public Employees' Retirement Fund (PERF) The Public Employees' Retirement Fund, a cost-sharing multiple-employer defined benefit pension 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 defined benefit pension 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 of Police, 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. The pension plan is closed to new entrants. 84 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – Pension Plans (Continued) Benefits Provided Public Employees' Retirement Fund (PERF) 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 definedbenefit component, retirement benefits for employees are calculated as years of credible service times the average highest 20 quarters of salary times 1.1%. Normal retirement agesare 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 allowancesubsequent to the employee's retirement date. The annual adjustments are granted by theIndiana 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 Accountcontributions, plus any accumulated interest. •My Choice Retirement Savings Plan: Defined contribution plan with 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 yearsfor 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% of first-class salary for 20 years of service plus 1% 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% of salary). Normal retirement age is 52 with 20 years of service, with early retirement at age 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% increase. 85 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – Pension Plans (Continued) 1925 Police Officers' Pension Plan The plan provides retirement, disability, and death benefits to plan members and beneficiaries. The plan was established by a 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 a 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, 2024 December 31, 2024 Inactive plan members or beneficiaries currently receiving benefits 160 115 Active plan members 0 1 Total employees covered by the plan 160 116 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% of their annual pay. The City’s contractually required contribution rate for the year ended December 31, 2024 was 11.2% of annual payroll for the PERF Hybrid plan and the MyChoice Plan. Contributions to the plan from the City were $4,330,099 for the year ended December 31, 2024. 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% of their annual pay. The City’s contractually required contribution rate for the year ended December 31, 2024 was 19.1% of annual payroll. Contributions to the plan from the City were $7,249,075 for the year ended December 31, 2024. 1925 Police Officers' Pension Plan Plan members are required by state statute (IC § 36-8-6-4) to contribute an amount equal to 6% 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 $6,060,337 during 2024 on behalf of the City. The City has recognized these on behalf payments as intergovernmental revenue and public safety 86 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – Pension Plans (Continued) expenditures in the General Fund. 1937 Firefighters' Pension Plan Plan members are required by state statute (IC § 36-8-7-8) to contribute an amount equal to 6% 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 $3,917,394 during 2024 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, 2024 June 30, 2024 December 31, 2024 December 31, 2024 Based on a comprehensive actuarial valuation as of June 30, 2024 June 30, 2024 December 31, 2024 December 31, 2024 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 Fiduciary Net Position Net Pension Liability Balance as of January 1, 2024 $60,036,234 $503,272 $59,532,962 Service cost - - - Interest 2,198,679 - 2,198,679 Plan Amendments - - - Experience (gains)/ losses 2,137,923 - 2,137,923 Assumption Changes (1,880,994) - (1,880,994) Employer contributions - - - Non-employer contributing entity contributions - 6,060,337 (6,060,337) Net investment income - 20,525 (20,525) Benefit payments, including refunds (5,821,145) (6,032,294) 211,149 Administrative expenses - (17,376) 17,376 Net changes: (3,365,537) 31,192 (3,396,729) Balance as of December 31, 2024 $56,670,697 $534,464 $56,136,233 87 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – Pension Plans (Continued) The plan's fiduciary net position represents 0.94% of the total pension liability. 1937 Firefighters Pension Plan Increase (Decrease) Changes in Net Pension Liability Total Pension Liability Plan Fiduciary Net Position Net Pension Liability Balance as of January 1, 2024 $43,423,605 $389,213 $43,034,392 Service cost - - - Interest 1,547,624 - 1,547,624 Plan Amendments - - - Experience (gains)/ losses 291,402 - 291,402 Assumption Changes (1,323,855) - (1,323,855) Employer contributions - 25 (25) Non -employer contributing entity contributions - 3,917,394 (3,917,394) Net investment income - 13,928 (13,928) Benefit payments, including refunds (4,000,155) (3,958,189) (41,966) Administrative expenses - (23,486) 23,486 Net changes: (3,484,984) (50,328) (3,434,656) Balance as of December 31, 2024 $39,938,621 $338,885 $39,599,736 The plan's fiduciary net position represents 0.85% of the total pension liability. Public Employees’ Retirement Fund At December 31, 2024, the City reported a liability of $22,896,398 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2024 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 June 30, 2024, relative to all other contributing employers. As of June 30, 2024, the City's proportion was 0.56801%, which was an increase of 0.0107% from its proportion measured as of June 30, 2023. 1977 Police Officers’ and Firefighters’ Pension and Disability Fund As of December 31, 2024, the City reported a net pension liability of $40,901,598 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2024 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 June 30, 2024, relative to all other contributing employers. As of June 30, 2024, the City's proportion was 3.2387%, which was an increase of 0.001017% from its proportion measured as of June 30, 2023. Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions As of December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 88 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – Pension Plans (Continued) Public Employees' Retirement Fund Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $2,346,602 $- Changes in assumptions - - Net difference between projected and actual earnings on pension plan investments 3,031,561 - Employer contributions to the plan subsequent to the measurement date 2,217,164 - Changes in proportion and difference between employer contributions and proportionate share of contributions 191,937 822,350 Total $7,787,264 $822,350 1977 Police Officers' and Firefighters' Pension and Disability Fund Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $14,190,595 $- Changes in assumptions 5,985,664 71,235 Net difference between projected and actual earnings on pension plan investments 8,800,992 - Employer contributions to the plan subsequent to the measurement date 3,625,670 - Changes in proportion and differences between employer contributions and proportionate share of contributions 225,330 132,317 Total $32,828,251 $203,552 1925 Police Officers’ Pension Plan Deferred Outflows of Resources Deferred Inflows of Resources Investment experience $ -$ 5,270 1937 Firefighters’ Pension Plan Deferred Outflows of Resources Deferred Inflows of Resources Investment experience $ -$ 3,541 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): 89 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – Pension Plans (Continued) Public Employees' Retirement Fund Year Ending June 30 Amount 2025 $530,526 2026 3,425,934 2027 978,576 2028 (187,286) 2029 - Thereafter - Total $4,747,750 1977 Police Officers' and Firefighters' Pension and Disability Fund Year Ending June 30 Amount 2025 $4,615,927 2026 12,369,355 2027 5,191,834 2028 3,258,445 2029 2,170,399 Thereafter 1,393,069 Total $28,999,029 1925 Police Officers’ Pension Plan Year Ending December 31 Amount 2025 $1,134 2026 (1,013) 2027 (3,050) 2028 (2,341) 2029 - Thereafter - Total $(5,270) 1937 Firefighters’ Pension Plan Year Ending December 31 Amount 2025 $905 2026 (841) 2027 (2,184) 2028 (1,421) 2029 - Thereafter - Total $(3,541) 90 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – 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 2.00% 2.00% 2.00% 2.00% Salary increases (including inflation) 2.65% - 8.65% 2.65% 2.65% 2.65% Investment rate of return (net of expenses) 6.25% 6.25% 1.75% 1.75% Mortality rates Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019 Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019 Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019 Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019 The actuarial assumptions used in the June 30, 2024 actuarial valuation date valuation were based on the results of an actuarial experience study for the five years ended June 30, 2020. 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 6.25% 6.25% 1.75% 1.75% Are contributions expected to be sufficient to allow fiduciary net position to pay future benefits? Yes Yes No No Discount rate used to measure TPL 6.25% 6.25% 4.15% 4.15% 91 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – Pension Plans (Continued) 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 4.15 %. The source of that bond rate was the Barclay's 20-year Municipal Bond (as referenced in The Wall Street Journal, December 31, 2024). Investment Rate of Return Best estimates of geometric real rates of return as of the June 30, 2024 measurement date for the Public Employees’ Retirement Fund and 1977 Police Officers’ and Firefighters’ Pension and Disability Fund and December 31, 2024 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 20% 4.6% Private Markets 15% 7.1% Fixed Income - Ex Inflation-Linked 20% 3.6% Fixed Income - Inflation-Linked 15% 2.1% Commodities 10% 2.8% Real Estate 10% 5.4% Absolute Return 5% 2.5% Risk Parity 20% 6.3% Leverage Offset -15%1.7% 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% 92 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – Pension Plans (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate Pension Plan 1% Decrease (5.25%) Discount (6.25%) 1% Increase (7.25%) Public Employees’ Retirement Fund $36,447,246 $22,896,398 $11,604,187 1977 Police Officers' and Firefighters' Pension and Disability Fund $89,445,318 $40,901,598 $1,951,645 Pension Plan 1% Decrease (3.15%) Discount (4.15%) 1% Increase (5.15%) 1925 Police Officers' Pension Plan $60,578,533 $56,136,233 $52,244,273 1937 Firefighters' Pension Plan 42,726,279 39,599,736 36,860,374 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: https://www.in.gov/inprs/files/INPRSAnnualReportBook_FY24.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 93 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – Pension Plans (Continued) payable in accordance with the benefit terms. Assumption Changes Public Employees’ Retirement Fund / 1977 Police Officers' and Firefighters' Pension and Disability Fund The following change occurred for the 1977 Police Officers and Firefighters’ Pension plans. •The maximum DROP period was extended from 36 to 60 months. 1925 Police Officers’ Pension Plan and 1937 Firefighters’ Pension Plan The following actuarial assumption change occurred for the 1925 Police Officers and 1937 Firefighters pension plans since the Prior Measurement Date. •The maximum DROP period was extended from 36 to 60 months. However, no active members are assumed to participate in DROP, so there is no impact to the plan. Therefore,there were no applicable changes in the benefit terms since the prior measurement date. •Discount rate: The discount rate used for the December 31, 2024 valuation was 4.15%, asdirected by INPRS, based on the Barclay’s 20-year Municipal Bond Index as of December31, 2024. This is an increase from the 3.71% used for the December 31, 2023 valuation. •Cost-of-living-adjustment (COLA): For converted members, the July 1, 2024 COLA of 3.00% was used in place of the ongoing valuation assumption to reflect the known increase. Beginning July 1, 2025, the assumption reverts to the assumed annual rate of 1.95%. Fornon-converted members, there was no change and the COLA remains at 2.65%. Investment Policy The 1925 Police Officers' Pension Plan and the 1937 Firefighters' Pension plan’s policy in regard to the allocation of invested assets is established and may be amended by the pension board by a majority vote of its members. It is the policy of the pension board to pursue an investment strategy that manages risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes. The pension plan’s investment policy discourages the use of cash equivalents, except for liquidity purposes, and aims to refrain from dramatically shifting asset class allocations over short time spans. The following was the pension board’s adopted asset allocation policy as of December 31, 2024: Asset Class Allocation Target Cash or cash equivalents 24% Government agency securities 76% Rate of Return and Pension Summary For the year ended December 31, 2024, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 1.75%. The money-weighted rate of return expresses investment performance, net of investment 94 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 18 – Pension Plans (Continued) 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: Net Pension Pension Liability Expenses Deferred Deferred Plan Description (Asset) (Income) Outflows Inflows Public Employees' Retirement Fund $22,896,398 $7,654,678 $7,787,264 $822,350 1977 Police Officers and Firefighters Pension and Disability Fund 40,901,598 17,091,021 32,828,251 203,552 1925 Police Officers' Pension Plan 56,136,233 2,449,778 - 5,270 1937 Firefighters' Pension Plan 39,599,736 509,935 - 3,541 Total Aggregate Amounts $159,533,965 $27,705,412 $40,615,515 $1,034,713 Note 19 – Pension Trust Funds 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 $540,367 $343,914 $884,281 Other assets 2,656 1,691 4,347 Liabilities (101) (94) (195) Net position 542,922 345,511 888,433 Statement of Changes in Net Position: Investment income 26,811 18,107 44,918 Contributions 6,063,837 3,920,851 9,984,688 Benefit payments (6,032,294) (3,958,189) (9,990,483) Administrative expenses (20,888) (26,986) (47,874) Net change in net position $37,466 $(46,217) $(8,751) Note 20 – Closure and Post-closure 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 post-closure care costs are reported as operating expenses, as incurred. For the year ending December 31, 2024, the total expenses incurred were $10,766. The remaining expected liability relating to post-closure 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. 95 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Note 21 – 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, 2024, the City abated property taxes totaling $4,278,147 under this program. No single property had taxes that exceeded 10% of the total amount. 96 City of South Bend, Indiana Notes to Financial Statements December 31, 2024 Required Supplementary Information 97 City of South Bend, Indiana Required Supplementary Information 1925 Police Officers’ Pension Plan Schedule of Investment Returns Last Ten Fiscal Years Years Ended December 31 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Annual money-weighted rate of return, net of investment expense 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 0.80% 1.00% 0.80% 98 City of South Bend, Indiana Required Supplementary Information 1925 Police Officers’ Pension Plan Schedule of Contributions Last Ten Fiscal Years Years Ended December 31 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution $ 6,032,295 $ 6,090,239 $ 5,950,596 $ 5,936,871 $ 6,183,243 $ 6,363,550 $ 6,161,954 $ 6,119,059 $ 6,133,389 $ 6,073,049 Contributions in relation to the actuarially determined contribution 6,060,337 5,981,246 6,011,602 5,947,193 6,045,313 6,107,782 6,220,658 6,204,179 6,364,236 6,323,645 Contribution (Deficiency) Excess $ 28,042 $ (108,993) $ 61,006 $ 10,322 $ (137,930) $ (255,768) $ 58,704 $ 85,120 $ 230,847 $ 250,596 Covered Payroll $ - $- $- $- $- $- $- $- $- $ 441,200 Contributions as a Percentage of Covered Payroll 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1433.3% Notes to Schedule of Contributions Actuarial valuation information relative to the determination of contributions: Valuation date December 31, 2024 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 2.00% per year Salary increase 2.65% 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 Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019 Other information Cost of living increases of 2.65% per year in retirement for non-converted and 3% on July 1, 2023 and 1.95% thereafter per year for converted Changes in Assumptions since the Prior Year Discount rate: The discount rate used for the December 31, 2024 valuation was 4.15%, as directed by INPRS, based on the Barclay’s 20-year Municipal Bond Index as of December 31, 2024. This is an increase from the 3.71% used for the December 31, 2023 valuation. Cost-of-living-adjustment (COLA): For converted members, the July 1, 2024 COLA of 3.00% was used in place of the ongoing valuation assumption to reflect the known increase. Beginning July 1, 2025, the assumption reverts to the assumed rate of 1.95%. For non-converted members, there was no change and the COLA remains at 2.65%. 99 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 Ten Fiscal Years Years Ended December 31 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service cost $ -$ -$ - $ - $ 40,214 $ 84,969 $ 92,916 $ 78,812 $ 164,481 $ 184,104 Interest 2,198,679 2,418,660 1,061,871 1,174,172 1,771,194 2,445,011 2,337,437 2,653,831 2,344,653 2,415,583 Experience (gains)/losses 2,137,923 2,315,364 2,441,559 139,773 (494,601) 278,613 2,284,134 995,949 396,259 (2,973,249) Plan amendments - - - - -870,092 - - - - Changes in assumptions (1,880,994) 1,836,473 (15,248,062) (215,355) (371,926) 7,451,976 (2,697,730) 3,926,922 (5,617,308) (294,402) Projected benefit payments (5,821,145) (5,848,471) (5,786,349) (5,834,267) (5,946,093) (6,112,665) (6,146,696) (6,045,097) (5,977,290) (6,061,589) Net Change in Total Pension Liability (3,365,537) 722,026 (17,530,981) (4,735,677) (5,001,212) 5,017,996 (4,129,939) 1,610,417 (8,689,205) (6,729,553) Total Pension Liability - Beginning of year 60,036,234 59,314,208 76,845,189 81,580,866 86,582,078 81,564,082 85,694,021 84,083,604 92,772,809 99,502,362 Total Pension Liability – End of year $56,670,697 $60,036,234 $59,314,208 $76,845,189 $81,580,866 $86,582,078 $81,564,082 $85,694,021 $84,083,604 $92,772,809 Plan Fiduciary Net Position Contributions - Other $- $7,957 $ 1,527 $ 4,119 $ - $ - $ -$ 13,544 $ 15,749 $ 62 Contributions - Non-employer Entity 6,060,337 5,981,246 6,007,221 5,947,193 6,045,313 6,107,782 6,220,658 6,204,179 5,991,750 6,378,359 Net investment income 20,525 14,162 (417) (1,009) 3,076 18,102 15,219 6,557 6,713 4,376 Administrative expenses (17,376) (16,466) (10,653) (10,321) (9,942) (10,304) (10,054) (13,577) (13,551) (12,462) Benefit payments, including refunds (6,032,294) (6,090,239) (5,950,596) (5,936,871) (6,183,243) (6,363,550) (6,161,954) (6,119,245) (6,364,236) (6,323,646) Net Change in Plan Fiduciary Net Position 31,192 (103,340) 47,082 3,111 (144,796) (247,970) 63,869 91,458 (363,575) 46,689 Plan Fiduciary Net Position - Beginning of year 503,272 606,612 559,530 556,419 701,215 949,185 885,316 793,858 1,157,433 1,110,743 Plan Fiduciary Net Position – End of year $534,464 $503,272 $606,612 $559,530 $556,419 $701,215 $949,185 $885,316 $793,858 $1,157,432 City's Net Pension Liability - Ending $56,136,233 $59,532,962 $58,707,596 $76,285,659 $81,024,447 $85,880,863 $80,614,897 $84,808,705 $83,289,746 $91,615,377 Plan Fiduciary Net Position as a % of Total Pension Liability 0.94% 0.84% 1.02% 0.73% 0.68% 0.81% 1.16% 1.03% 0.94% 1.25% Covered Payroll $ - $ - $ - $ - $ - $ - $ - $ - $ -$ 441,200 City's Net Pension Liability as a % of Covered Payroll - %- %- %- %- %- %- %- %- %20765% 100 City of South Bend, Indiana Required Supplementary Information 1937 Firefighters’ Pension Plan Schedule of Investment Returns Last Ten Fiscal Years Years Ended December 31 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Annual money-weighted rate of return, net of investment expense 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 0.80% 1.00% 0.80% 101 City of South Bend, Indiana Required Supplementary Information 1937 Firefighters’ Pension Plan Schedule of Contributions Last Ten Fiscal Years Years Ended December 31 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution $ 3,958,189 $ 4,013,609 $4,110,921 $4,121,440 $4,195,490 $4,439,496 $4,618,617 $4,727,592 $5,152,192 $4,977,042 Contributions in relation to the actuarially determined contribution 3,917,394 4,059,876 4,058,278 4,097,779 4,320,033 4,462,993 4,472,469 4,920,712 5,165,758 5,197,158 Contribution (Deficiency) Excess $ (40,795) $ 46,267 $(52,643) $(23,661) $124,543 $23,497 $(146,148) $193,120 $13,566 $220,116 Covered Payroll $ - $- $- $- $- $- $- $- $- $328,600 Contributions as a Percentage of Covered Payroll -% -% -% -% -% -% -% -% -% 1581.6% Notes to Schedule of Contributions Actuarial valuation information relative to the determination of contributions: Valuation date December 31, 2024 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 2.00% per year Salary increase 2.65% 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 Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019 Other information Cost of living increases of 2.65% per year in retirement for non-converted and 3% on July 1, 2023 and 1.95% thereafter per year for converted Changes in Assumptions since the Prior Year Discount rate: The discount rate used for the December 31, 2024 valuation was 4.15%, as directed by INPRS, based on the Barclay’s 20-year Municipal Bond Index as of December 31, 2024. This is an increase from the 3.71% used for the December 31, 2023 valuation. Cost-of-living-adjustment (COLA): For converted members, the July 1, 2024 COLA of 3.00% was used in place of the ongoing valuation assumption to reflect the known increase. Beginning July 1, 2025, the assumption reverts to the assumed rate of 1.95%. For non-converted members, there was no change and the COLA remains at 2.65%. 102 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 Ten Fiscal Years Years Ended December 31 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service cost $ - $ - $ - $ -$49,137 $62,978 $98,529 $81,717 $163,162 $155,487 Interest 1,547,624 1,746,130 783,612 895,656 1,362,747 1,865,607 1,815,032 2,124,050 1,940,826 2,020,796 Experience (gains)/losses 291,402 641,022 (255,266) (562,790) (457,133) (1,096,354) (482,208) (1,611,010) (262,337) (2,816,692) Plan amendments - - - - -941,442 - - - - Changes in assumptions (1,323,855) 1,337,239 (11,312,679) (218,152) (422,909)5,758,955 (2,105,211) 3,179,702 (4,645,609) (245,887) Projected benefit payments (4,000,155) (4,083,120) (4,127,154) (4,189,691) (4,299,517) (4,420,816) (4,572,612) (4,727,592) (4,980,991) (5,094,762) Net Change in Total Pension Liability (3,484,984) (358,729) (14,911,487) (4,074,977) (3,767,675) 3,111,812 (5,246,470) (953,133) (7,784,949) (5,981,058) Total Pension Liability - Beginning of year 43,423,605 43,782,334 58,693,821 62,768,798 66,536,473 63,424,661 68,671,131 69,624,264 77,409,213 83,390,271 Total Pension Liability - End of year $39,938,621 $43,423,605 $43,782,334 $58,693,821 $62,768,798 $66,536,473 $63,424,661 $68,671,131 $69,624,264 $77,409,213 Plan Fiduciary Net Position Contributions - Other $25 $5,322 $3,922 $- $- $- $- $4,251 $6,279 $2,667 Contributions - Non-employer Entity 3,917,394 4,059,876 4,058,278 4,097,779 4,320,033 4,462,993 4,472,469 4,920,712 4,866,271 5,039,025 Net investment income 13,928 10,004 611 (774)2,579 9,432 7,596 3,352 2,852 2,675 Administrative expenses (23,486) (26,642) (16,764) (11,458) (10,265) (10,309) (12,154) (14,771) (14,485) (14,255) Benefit payments, including refunds (3,958,189) (4,013,609) (4,110,921) (4,121,440) (4,195,490) (4,439,496) (4,618,617) (4,614,480) (5,165,758) (5,197,159) Net Change in Plan Fiduciary Net Position (50,328) 34,951 (64,874) (35,893) 116,857 22,620 (150,706) 299,064 (304,841) (167,047) Plan Fiduciary Net Position - Beginning of year 389,213 354,262 419,136 455,029 338,172 315,552 466,258 167,194 472,035 639,081 Plan Fiduciary Net Position - End of year $338,885 $389,213 $354,262 $419,136 $455,029 $338,172 $315,552 $466,258 $167,194 $472,034 City's Net Pension Liability - Ending $39,599,736 $43,034,392 $43,428,072 $58,274,685 $62,313,769 $66,198,301 $63,109,109 $68,204,873 $69,457,070 $76,937,179 Plan Fiduciary Net Position as a % of Total Pension Liability 0.85% 0.90% 0.81% 0.71% 0.72% 0.51% 0.50% 0.68% 0.24% 0.61% Covered Payroll $- $- $- $- $- $- $- $- $- $328,600 City's Net Pension Liability as a % of Covered Payroll - %- %- %- %- %- %- %- %- %23414% 103 City of South Bend, Indiana Required Supplementary Information Schedule of City Contributions Public Employees’ Retirement Fund Last Ten Fiscal Years Years Ended December 31 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution $4,330,099 $3,984,321 $3,606,008 $3,578,344 $3,621,367 $3,523,406 $3,385,879 $3,320,567 $3,037,666 $2,982,234 Contributions in relation to the actuarially determined contributions $4,330,099 $3,984,321 $3,606,008 3,578,344 3,621,367 3,523,406 3,385,879 3,320,567 3,037,666 2,982,234 Contribution Excess (Deficiency) $- $- $- $- $- $- $- $- $- $- Covered Payroll $38,661,594 $35,574,290 $32,965,029 $32,493,524 $32,664,657 $32,020,965 $30,503,247 $29,647,920 $27,389,875 $26,681,229 Contributions as a Percentage of Covered Payroll 11.2% 11.2% 10.9% 11.0% 11.1% 11.0% 11.1% 11.2% 11.2% 11.2% Information is presented for the years available Contributions in relation to the actuarially determined contributions and covered payroll are reported as of the City’s calendar year-end (December 31). Notes to Schedule of Contributions Actuarial valuation information relative to the determination of contributions: Valuation date June 30, 2024 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 2.00% per year Salary increase 2.65% to 8.65% per year Investment rate of return 6.25% 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 Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019 Other information The following COLAs, compounded annually, were assumed: 0.40% beginning on January 1, 2026; 0.50% beginning on January 1, 2034; 0.60% beginning on January 1, 2039 A one-time 13th check was granted and payable by October 1, 2024. Thereafter, it is assumed participants who have commenced benefits prior to July 1, 2025 will receive an annual 13th check indexed with inflation. Participants commencing on or after July 1, 2025 are assumed to receive a 1% COLA. Changes in Assumptions since the Prior Year The COLA Assumption was revised by the passage of HEA 1004-2024. 104 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 Ten Fiscal Years Years Ended June 30 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 City's proportion of the net pension liability (asset) 0.56801% 0.55731% 0.58281% 0.60460% 0.59296% 0.59232% 0.58323% 0.57988% 0.54700% 0.55700% City's proportionate share of the net pension liability (asset) $22,896,398 $19,669,331 $18,380,848 $7,955,615 $17,909,730 $19,576,553 $19,812,587 $25,871,598 $24,845,715 $22,687,694 City's Covered Payroll $38,151,827 $35,037,733 $33,541,763 $33,334,366 $32,011,410 $30,860,389 $29,759,859 $28,768,543 $26,237,016 $26,691,229 City's Proportionate Share of the Net pension Liability (Asset) as a Percentage of its Covered Payroll 60.01% 56.14% 54.80% 23.87% 55.95% 63.44% 66.57% 89.93% 94.70% 85.00% Plan Fiduciary Net Position as a Percentage of Total Pension Liability 79.5% 80.8% 82.5% 92.5% 81.4% 80.1% 78.9% 76.6% 75.3% 77.3% 105 City of South Bend, Indiana Required Supplementary Information Schedule of City Contributions 1977 Police Officers' Pension and Disability Fund Last Ten Fiscal Years Years Ended December 31 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution $3,863,414 $3,336,579 $ 2,624,767 $ 2,638,916 $ 2,499,056 $ 2,528,512 $ 2,479,908 $ 2,394,421 $ 2,715,555 $ 2,625,418 Contributions in relation to the actuarially determined contributions 3,863,414 3,336,579 2,624,767 2,638,916 2,499,056 2,528,512 2,479,908 2,394,421 2,715,555 2,625,418 Contribution Excess (Deficiency) - - $ -$-$-$-$-$-$-$ - Covered Payroll $20,227,299 $18,536,548 $14,998,666 $ 15,079,522 $ 14,280,320 $ 14,448,643 $ 14,170,905 $ 12,873,232 $ 13,784,545 $ 13,327,077 Contributions as a Percentage of Covered Payroll 19.1% 18.0% 17.5% 17.5% 17.5% 17.5% 17.5% 18.6% 19.7% 19.7% Contributions in relation to the actuarially determined contributions and covered payroll are reported as of the City’s calendar year-end (December 31). Notes to Schedule of Contributions Actuarial valuation information relative to the determination of contributions: Valuation date June 30, 2024 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 2.00% per year Salary increase 2.65% per year Investment rate of return 6.25% 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 Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019 Other information Assumed Cost of Living Adjustment (COLA: 1.95% compounded annually, beginning July 1, 2025. Actual COLA increases at July 1, 2023 and 2024 of 3.00% are reflected in the valuation. For benefits paid under the 2017 House Enrolled Act No. 1617, the annual cost-of-living assumption is 2.65%, which is the same as the salary increase assumption for active members. Changes in Assumptions since the Prior Year Retirement rates were updated based on the change in statue extending the DROP election period from 3 years to 5 years. 106 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 Ten Fiscal Years Years Ended June 30 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 City's proportion of the net pension liability (asset) 1.71302% 1.56571% 1.50982% 1.55846% 1.54916% 1.62738% 1.6501% 1.72294% 1.75600% 1.78700% City's proportionate share of the net pension liability (asset) $21,633,759 $16,039,615 $9,781,397 $(9,210,737) $3,761,481 $149,979 $(1,450,622) $(265,770) $1,559,932 $(2,640,039) City's Covered Payroll $19,577,846 $17,011,263 $15,261,636 $14,796,362 $14,365,200 $14,385,011 $13,896,923 $13,968,031 $13,571,531 $13,327,077 City's Proportionate Share of the Net pension Liability (Asset) as a Percentage of its Covered Payroll 110.50% 94.29% 64.09% -62.25%26.18% 1.04% -10.44%-1.90%11.49% (19.8)% Plan Fiduciary Net Position as a Percentage of Total Pension Liability 86.80% 88.40% 92.20% 107.80% 96.40% 99.90% 101.50% 100.3% 98.2% 103.2% 107 City of South Bend, Indiana Required Supplementary Information Schedule of City Contributions 1977 Firefighters’ Pension and Disability Fund Last Ten Fiscal Years Years Ended December 31 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution $3,385,661 $3,101,607 $ 2,845,694 $ 2,799,560 $ 2,795,379 $ 2,730,295 $ 2,690,987 $ 2,556,604 $ 2,717,624 $ 2,666,116 Contributions in relation to the actuarially determined contributions 3,385,661 3,101,607 2,845,694 2,799,560 2,795,379 2,730,295 2,690,987 2,556,604 2,717,624 2,666,116 Contribution Excess (Deficiency) $- $- $ -$-$-$-$-$-$-$ - Covered Payroll 17,725,971 17,231,151 16,261,112 15,997,482 $ 15,973,594 $ 15,601,683 $ 15,377,071 $ 13,745,183 $ 13,795,047 $ 13,533,745 Contributions as a Percentage of Covered Payroll 19.10% 18.00% 17.50% 17.50% 17.50% 17.50% 17.50% 18.60% 19.70% 19.70% Information is presented for the years available Contributions in relation to the actuarially determined contributions and covered payroll are reported as of the City’s calendar year-end (December 31). Notes to Schedule of Contributions Actuarial valuation information relative to the determination of contributions: Valuation date June 30, 2024 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 2.00% per year Salary increase 2.65% per year Investment rate of return 6.25% 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 Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019 Other information Assumed Cost of Living Adjustment (COLA): 1.95% annually Changes in Assumptions since the Prior Year Retirement rates were updated based on the change in statue extending the DROP election period from 3 years to 5 years. 108 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 Ten Fiscal Years Years Ended June 30 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 City's proportion of the net pension liability (asset) 1.52568% 1.57127% 1.62692% 1.68915% 1.70153% 1.75457% 1.78736% 1.77600% 1.75800% 1.81500% City's proportionate share of the net pension liability (asset) $19,267,839 $16,096,573 $10,540,031 $(9,983,135) $ 4,131,447 $ 161,701 $(1,571,289) $ (273,955) $ 1,561,833 $(2,680,987) City's Covered Payroll $17,436,679 $17,071,671 $16,445,364 $16,037,134 $15,778,121 $15,509,357 $15,052,876 $14,398,217 $13,588,032 $13,533,745 City's Proportionate Share of the Net pension Liability (Asset) as a Percentage of its Covered Payroll 110.50% 94.29% 64.09% -62.25%26.18% 1.04% -10.44%-1.90%11.49% (19.8)% Plan Fiduciary Net Position as a Percentage of Total Pension Liability 86.80% 88.40% 92.20% 107.80% 96.40% 99.90% 101.50% 100.3% 98.2% 103.2% 109 City of South Bend, Indiana Required Supplementary Information Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Seven Fiscal Years Years Ended December 31 2024 2023 2022 2021 2020 2019 2018 Total OPEB liability Service Cost $1,124,783 $ 1,010,471 $ 1,371,609 $ 1,473,053 $ 1,072,669 $ 1,049,065 $ 1,489,465 Interest 1,102,901 1,123,587 628,173 620,338 1,032,011 981,132 1,026,964 Difference between expected and actual experience (2,533,963) (1,533,821) 1,689,861 (2,190,115) (2,677,265) -1,503,991 Changes of assumptions or other inputs (630,947) 1,992,181 (4,157,551) (307,148) 5,155,786 -(8,795,897) Benefit payments (1,231,486) (1,175,200) (873,234) (801,646) (858,114) (774,470) (758,730) Net change in total OPEB liability (2,168,712) 1,417,218 (1,341,143) (1,205,518) 3,725,087 1,255,727 (5,534,207) Total OPEB Liability - beginning 27,057,458 25,640,240 26,981,383 28,186,901 24,461,814 23,206,087 28,740,294 Total OPEB Liability - ending $24,888,746 $27,057,458 $25,640,241 $26,981,383 $ 28,186,901 $24,461,814 $23,206,087 Plan fiduciary net position - ending $ -$-$-$-$-$-$ - Net OPEB Liability - ending $24,888,746 $27,057,458 $25,640,240 $ 26,981,383 $ 28,186,901 $24,461,814 $23,206,087 Plan fiduciary net position as % of total OPEB liability 0% 0% 0% 0% 0% 0% 0% Covered-Employee Payroll $75,478,820 $71,341,993 $63,979,551 $ 62,327,863 $ 62,222,358 $60,754,757 $58,876,762 Net OPEB liability as a % of covered payroll 33.0% 37.9% 40.1% 43.3% 45.3% 40.3% 39.4% Information is presented for the years available. No assets are accumulated in a trust. 110 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, theCity Controller submits to the Common Council a proposed operating budget for the fiscalyear commencing the following January 1. The operating budget includes proposedexpenditures 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 notincrease, the budget from the advertised amounts. C.No later than November 1 of each year, the budget for the next year is approved by theCommon Council through the passage of an ordinance. D.Copies of the budget ordinance and advertisements for funds for which property taxes arelevied or highway use taxes are received are sent to the Indiana Department of LocalGovernment Finance for their review and approval. The budget becomes legally enactedafter the City Controller receives approval from the Indiana Department of LocalGovernment Finance. This approval is required by Indiana statute and ad valorem propertytax rates are to be set by December 31 prior to the year budgeted. The budget ordinance as approved by the Indiana Department of Local Government Finance becomes the City'sexpenditures budget. The City's maximum tax levy is restricted by Indiana law, with certainadjustments and exceptions. If the advertised budget, for funds for which property taxesare levied or for which highway use taxes are received, exceeds the spending and tax limitsof the state control laws, an excess levy can be granted by the Indiana Department of LocalGovernment Finance, upon appeal by the City. E.The legal level of budgetary control (the level at which expenditures may not exceedappropriations without the governing body’s approval) is by fund, department, division, andcost classification for all funds. The City’s management cannot transfer budgetedappropriations between cost classifications of a budget without approval of the CommonCouncil. 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, bythe Indiana Department of Local Government Finance. Formal budgetary integration isrequired by state statute and is employed as a management control method. F.Formal budgetary integration is required by State statute and is employed as amanagement control device. An annual budget was legally adopted for the following funds: Major governmental funds: •General Fund •Special Revenue Funds - Park and Recreation, Local Income Tax-Public Safety,Local Income Tax-Economic Development, American Rescue Plan •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 RevitalizationGrants, Economic Development State Grants, DCI Operating, DCI Federal Grants,Police State Seizure, Gift Donation Bequest, Unsafe Building, Law EnforcementContinuing Education, Rental Units Regulation, Loss Recovery Fund, CodeEnforcement, Local Road and Street, LOIT 2016 Special Distribution, Human Rights Federal Grants, COVID-19 Response, Local Road and Bridge Grant, MVH Restricted,Hazmat, Indiana River Rescue, COPS MORE Grant, Federal Drug Enforcement,Urban Development Action Grant, Leaf Collection and Removal, City Cemetery,Bowman Cemetery, Industrial Revolving Fund •Debt Service Funds - 2003 Redevelopment Bond - Airport Taxable, 2003Redevelopment Bond - Palais Royale, 2015 Smart Streets Bond Debt Service, 2015Park Bond Debt Service, 2017 Park Bond Debt Service, 2017 Eddy St. CommonsBond Debt Service, 2018 Fire Station #9 Bond Debt Service, 2018 TIF Park Bond DebtService Reserve, 2019 South Shore Double Tracking Bond Debt Service, 2020 TIFLibrary Bond Debt Service Reserve, Century Center Energy Conservation DebtService, Redevelopment Authority Debt Service, South Bend Building CorporationDebt Service Capital Projects Funds – Fire Department Capital, Coveleski Stadium Capital, Cumulative Capital Development, Cumulative Capital Improvement, Major Moves,Professional Sports Convention Development Area, Morris Performing Arts CenterCapital, 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 UrbanEnterprise Zone, 2023 RDA Lease-Rental Bond Capital, 2024B RDA Bond – MadisonLifestyle District, 2024A RDA Bond – Four Winds Field, 2017 Park Bond Capital, 2017Eddy St. Commons Bond Capital, 2018 Fire Station #9 Bond Capital, 2018 TIF ParkBond Capital, 2021 Infrastructure 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 apurchase order or contract. Encumbered appropriations are carried over and added to thesubsequent year's budget. H.Budgeted amounts are as originally adopted, or as amended by the Common Council andapproved by the Indiana Department of Local Government Finance in the regular legalmanner. The net effect of individual amendments to the budget increased the originalappropriations by $165,102,610 in 2024 for the funds listed above. I.Expenditures did not exceed appropriations for any funds or any departments within anymajor or nonmajor governmental fund which required legally approved budgets. Note 2 – Pension & OPEB Assets There are no assets accumulated in a trust that meets the criteria in GASB Codification Section P52.101 to pay future OPEB benefits. 112 City of South Bend, Indiana Notes to Required Supplementary Information City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules General Fund For fiscal year ended December 31, 2024 General Fund Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 51,388,740$ 51,388,740$ 55,895,188$ 4,506,448$ Taxes - local income tax 12,554,287 12,554,287 14,471,413 1,917,126 Licenses and permits 288,107 288,107 280,315 (7,792) Intergovernmental 4,228,874 4,228,874 3,973,439 (255,435) Charges for services 4,349,203 5,349,203 5,738,387 389,184 Fines and forfeitures 2,500 2,500 10,608 8,108 Investment income 1,300,114 1,300,114 3,864,507 2,564,393 Other 13,858,707 13,858,707 15,250,456 1,391,749 Total revenues 87,970,532 88,970,532 99,484,313 10,513,781 Expenditures: Current:General government: Mayor: Personnel services 1,042,306 1,042,306 906,362 135,944 Supplies 5,589 5,566 10,385 (4,819) Other services and charges 249,431 247,918 241,330 6,588 City Clerk:Personnel services 397,180 387,180 347,672 39,508 Supplies 8,000 10,792 9,263 1,529 Other services and charges 189,174 212,382 183,026 29,356 Common Council: Personnel services 603,800 456,400 305,557 150,843 Supplies 2,590 7,090 5,813 1,277 Other services and charges 336,761 375,926 296,451 79,475 Administration/Finance: Personnel services 3,907,052 3,920,591 3,524,896 395,695 Supplies 38,059 36,485 26,965 9,520 Other services and charges 17,741,042 8,259,675 8,038,998 220,677 Capital outlay 1,779,841 3,983,922 2,546,120 1,437,802 Innovation and Technology Other services and charges - - - - Legal Department: Personnel services 1,661,878 1,649,428 1,447,624 201,804 Supplies 5,000 8,550 5,472 3,078 Other services and charges 342,685 401,520 351,005 50,515 Total general government 28,310,388 21,005,731 18,246,939 2,758,792 Public safety: Police Department: Personnel services 31,415,910 31,265,910 27,865,011 3,400,899 Supplies 1,505,489 1,594,691 1,385,620 209,071 Other services and charges 10,831,874 9,484,359 10,363,165 (878,806) Capital outlay 3,038,431 3,024,648 2,610,882 413,766 Fire Department: Personnel services 25,046,680 23,746,680 22,881,108 865,572 Supplies 1,547,189 1,708,143 1,667,442 40,701 Other services and charges 5,356,117 6,188,119 6,167,411 20,708 Total public safety 78,741,690 77,012,550 72,940,639 4,071,911 113 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules General Fund (Continuted) For fiscal year ended December 31, 2024 General Fund Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Highways and streets: Streets and Sewers: Other services and charges - - 1,392,066 (1,392,066) Engineering: Personnel services 3,318,113 3,018,113 2,787,322 230,791 Supplies 394,289 383,189 214,438 168,751 Other services and charges 1,074,053 997,342 957,680 39,662 Capital outlay - - - - Total highways and streets 4,786,455 4,398,644 5,351,506 (952,862) Community and economic development: Other services and charges - - - - Capital outlay - - - - Total community and economic development - - - - Culture and recreation:Park Maintenance Other services and charges 2,226,831 1,727,535 1,723,084 4,451 RecreationOther services and charges 11,356 19,323 19,295 28 Morris Performing Arts Center: Personnel services - - - - Supplies - - - - Other services and charges - - - - Palais Royale Ballroom:Supplies 4,795 5,610 3,869 1,741 Other services and charges 228,264 225,259 163,429 61,830 Total culture and recreation 2,471,246 1,977,727 1,909,677 68,050 Total expenditures 114,309,779 104,394,652 98,448,761 5,945,891 Other Financing Sources (Uses): Debt proceeds - - 2,176,000 2,176,000 Proceeds from sale of capital assets - - 119,324 119,324 Transfers in 9,902,794 9,902,794 6,599,186 (3,303,608) Transfers out (16,403,814) (16,403,608) (13,100,000) 3,303,608 Net change in fund balances (32,840,267) (21,924,934) (3,169,938) 18,754,996 Fund balances - Beginning 104,624,828 104,624,828 104,624,828 - Fund balances - Ending 71,784,561$ 82,699,894$ 101,454,890$ 18,754,996$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (3,169,938)$ To adjust revenues for accruals 10,827,435 To adjust expenditures for accruals (11,558,519) Net change in fund balance, GAAP basis (3,901,022)$ 114 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules Major Special Revenue Funds Parks and Recreation Fund For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 12,054,149$ 12,054,149$ 13,118,405$ 1,064,256$ Licenses and permits - - 915 915 Intergovernmental 897,088 897,088 827,072 (70,016) Charges for services 75,000 75,000 3,506,474 3,431,474 Fines and forfeitures - - - - Investment income 59,330 59,330 463,113 403,783 Other 11,000 11,000 100,379 89,379 Total revenues 13,096,567 13,096,567 18,016,358 4,919,791 Expenditures: Current: Culture and recreation: Personnel services 11,060,024 10,972,024 9,765,872 1,206,152 Supplies 1,747,688 1,812,336 1,693,141 119,195 Other services and charges 8,397,549 8,526,703 7,330,080 1,196,623 Capital outlay 9,884,502 5,750,822 3,947,232 1,803,590 Total expenditures 31,089,763 27,061,885 22,736,325 4,325,560 Other Financing Sources (Uses):Debt proceeds - - 68,750 68,750 Proceeds from sale of capital assets - - 25,346 25,346 Transfers in 6,000,000 6,000,000 6,000,000 - Transfers out - - - - Net change in fund balances (11,993,196) (7,965,318) 1,374,129 9,339,447 Fund balances - Beginning 12,110,307 12,110,307 12,110,307 - Fund balances - Ending 117,111$ 4,144,989$ 13,484,436$ 9,339,447$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 1,374,129$ To adjust revenues for accruals 507,965 To adjust expenditures for accruals (1,711,290) Net change in fund balance, GAAP basis 170,804$ 115 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules Major Special Revenue Funds (Continued) Local Income Tax-Public Safety Fund For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - local income tax 11,988,584$ 11,988,584$ 13,856,678$ 1,868,094$ Investment income 72,056 72,056 307,287 235,231 Total revenues 12,060,640 12,060,640 14,163,965 2,103,325 Expenditures:Current: Public safey:Personnel services 10,354,988 13,856,678 13,856,681 (3) Total expenditures 10,354,988 13,856,678 13,856,681 (3) Net change in fund balances 1,705,652 (1,796,038) 307,284 2,103,322 Fund balances - Beginning 6,507,358 6,507,358 6,507,358 - Fund balances - Ending 8,213,010$ 4,711,320$ 6,814,642$ 2,103,322$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 307,284$ To adjust revenues for accruals 51,605 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 358,889$ 116 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules Major Special Revenue Funds (Continued) Local Income Tax-Economic Development Fund For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - local income tax 16,896,469$ 16,896,469$ 19,485,677$ 2,589,208$ Intergovernmental - - - - Investment income 62,311 62,311 1,248,961 1,186,650 Other 150,000 347,083 393,911 46,828 Total revenues 17,108,780 17,305,863 21,128,549 3,822,686 Expenditures: Current: General government: Other services and charges 9,614,584 4,925,619 4,640,373 285,246 Capital outlay 4,940,199 621,425 498,495 122,930 Total expenditures 14,554,783 5,547,044 5,138,868 408,176 Other Financing Sources (Uses):Transfers out (10,370,000) (11,181,000) (11,758,512) (577,512) Net change in fund balances (7,816,003) 577,819 4,231,169 3,653,350 Fund balances - Beginning 30,875,201 30,875,201 30,875,201 - Fund balances - Ending 23,059,198$ 31,453,020$ 35,106,370$ 3,653,350$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 4,231,169$ To adjust revenues for accruals 238,720 To adjust expenditures for accruals (1,536,912) Net change in fund balance, GAAP basis 2,932,977$ 117 City of South Bend, Indiana Required Supplementary Information Budgetary Comparison Schedules Major Special Revenue Funds (Continued) American Rescue Plan For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ -$ -$ Investment income - - 187,279 187,279 Total revenues - - 187,279 187,279 Expenditures:Current: General government: Personnel services - - - - Other services and charges - - - - Capital outlay 9,346,451 9,321,898 9,321,898 - Total expenditures 9,346,451 9,321,898 9,321,898 - Net change in fund balances (9,346,451) (9,321,898) (9,134,619) 187,279 Fund balances - Beginning 986,342 986,342 986,342 - Fund balances - Ending (8,360,109)$ (8,335,556)$ (8,148,277)$ 187,279$ Budget/GAAP ReconciliationNet change in fund balance, budget basis (9,134,619)$ To adjust revenues for accruals 7,972,546 To adjust expenditures for accruals 1,206,125 Net change in fund balance, GAAP basis 44,052$ 118 City of South Bend, Indiana Required Supplementary Information Budget/GAAP Reconciliation General Fund and Major Special Revenue Funds For fiscal year ended December 31, 2024 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). 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: Local Income Tax Parks and Local Income Tax Economic American General Recreation Public Safety Development Rescue Plan Net change in fund balances (budgetary basis)(3,169,938)$ 1,374,129$ 307,284$ 4,231,169$ (9,134,619)$ Adjustments: To adjust revenues for accruals 10,827,435 507,965 51,605 238,720 7,972,546 To adjust expenditures for accruals (11,558,519) (1,711,290) - (1,536,912) 1,206,125 Net change in fund balances (GAAP basis)(3,901,022)$ 170,804$ 358,889$ 2,932,977$ 44,052$ 119 Other Supplemental Information 120 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. COVID-19 Response To account for expenditures related to the City’s response to the COVID-19 pandemic, including public safety and economic development activity, as well as related grants dedicated to fund these efforts. 121 City of South Bend, Indiana Other Supplemental Information Nonmajor Governmental Funds Fund Descriptions 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. 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. 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. Urban Enterprise Association Blended Component Unit: Accounts for activities from the UEA, which runs a variety of economic development projects for the City. VPA Foundation Blended Component Unit: Accounts for donations for the City’s department of Venues Parks & Arts. 122 City of South Bend, Indiana Other Supplemental Information Nonmajor Governmental Funds Fund Descriptions DEBT SERVICE FUNDS 2003 Redevelopment Bond Airport Taxable To accumulate monies as a reserve for the payment of Redevelopment Authority bonds for the airport taxable project. 2003 Redevelopment Bond Palais Royale To accumulate monies as a reserve for the payment of Redevelopment Authority bonds for the Palais Royale project. 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. 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. 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. 2019 South Shore Double Tracking Bond Debt Service To accumulate monies received as debt service payments from the City and pass them through to trustee banks and bondholders. 2020 TIF Library 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. CAPITAL PROJECTS FUNDS Fire Department Capital To purchase capital assets for the City’s Fire Department, including vehicles (such as fire trucks and ambulances) and capital improvements to Fire Stations. 123 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. Professional Sports Convention Development Area To account for state distributions of sales tax and income tax earned at specified locations within the area. Restricted for use on capital projects at those specific locations (which include Four Winds Field, Morris Performing Arts Center, and Century Center). 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 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. 124 City of South Bend, Indiana Other Supplemental Information Nonmajor Governmental Funds Fund Descriptions 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 byproperty tax proceeds, state gross retail and uses taxes, and other revenues. Palais Royale Historic Preservation To account for expenditures financed by a two percent fee charged for all Palais Royale services. 2022 Zoo Bond Capital To account for the expenditures of bond funds to be used for the construction, expansion, renovation, equipping, furnishing and improvement of the Potawatomi Zoo. Airport Urban Enterprise Zone To account expenditures for improvements in the Zone area, financed by property taxes on qualifying properties in the Zone. Equipment Vehicle Leasing To account for proceeds from financed-purchase agreements used to finance major equipment needs of the City. 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. 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. 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. 2023 RDA Lease Rental Revenue Bond Capital 2024 RDA Madison Lifestyle Bonds Capital 2024 RDA Four Winds Fields Bonds Capital To account for the expenditures of the proceeds from the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2023, Series A. The Series A bonds were issued for the purpose of funding various public improvement projects located in the River East and River West TIF districts. To account for the expenditures of the proceeds from the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2024, Series B (Madison Lifestyle District Project). To account for the expenditures of the proceeds from the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2024, Series A (Four Winds Fields at Coveleski Stadium Project). 125 City of South Bend, Indiana City of South Bend, Indiana Combining Balance Sheet Nonmajor Governmental Funds December 31, 2024 Special Revenue Funds Studebaker Law Oliver Economic DCI Gift Enforcement Motor Vehicle Revitalization Development Federal Police State Donation Unsafe Continuing Highway Grants State Grants DCI Operating Grants Seizure Bequest Building Education Assets Cash and cash equivalents 4,687,467$ 283,482$ -$ 277,563$ 262,755$ 135,875$ 1,248,367$ 446,766$ 387,988$ Investments 702,376 359,546 - 344,483 - 172,333 1,588,768 566,637 491,736 Receivables:Accounts 11,848 - - 320 208,211 - - - 21,196 Interest - 1 15 2 - (1) - (1) - Taxes - - - - - - - - - Intergovernmental - - - - - - - - - Property taxes - - - - - - - - - Loans - - - - 113,988 - - - - Due from other funds - - - - - - - - - Advances to other funds - - - - - - - - - Property held for resale - 1 - - 2,288,072 - - - - Restricted assets - - - - - - - - - Total assets 5,401,691$ 643,030$ 15$ 622,368$ 2,873,026$ 308,207$ 2,837,135$ 1,013,402$ 900,920$ Liabilities Accounts payable 617,403$ -$ -$ 9,169$ 1,770$ -$ 915,725$ -$ 9,908$ Due to other funds 4,199 - 66,903 - - - - - - Advances from other funds - - - - - - - - - Performance deposits payable - - - - - - - 4,950 - Accrued liabilities and other:Accrued payroll payable 294,026 - - 139,014 - - - - - Taxes payable 16,244 - - 7,684 - - - - - Other current payables - - - - 2,828 - - - - Customer deposits 2,800 - - - - - - - - Total liabilities 934,672 - 66,903 155,867 4,598 - 915,725 4,950 9,908 Deferred inflows of resources - unavailable revenue Intergovernmental receivable - - - - - - - - - Property taxes receivable - - - - - - - - - Total deferred inflows of resources - - - - - - - - - Fund balances Nonspendable - - - - - - - - - Restricted 4,467,019 643,030 - - 2,868,428 308,207 1,921,410 - 891,012 Committed - - - - - - - 1,008,452 - Assigned - - - 466,501 - - - - - Unassigned - - (66,888) - - - - - - Total fund balances 4,467,019 643,030 (66,888) 466,501 2,868,428 308,207 1,921,410 1,008,452 891,012 Total liabilities, deferred inflows of resources, and fund balances 5,401,691$ 643,030$ 15$ 622,368$ 2,873,026$ 308,207$ 2,837,135$ 1,013,402$ 900,920$ 126 City of South Bend, Indiana Assets Cash and cash equivalentsInvestmentsReceivables:AccountsInterestTaxes Intergovernmental Property taxes LoansDue from other fundsAdvances to other fundsProperty held for resale Restricted assets Total assets Liabilities Accounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payable Taxes payable Other current payables Customer deposits Total liabilities Deferred inflows of resources - unavailable revenue Intergovernmental receivable Property taxes receivable Total deferred inflows of resources Fund balances Nonspendable RestrictedCommittedAssignedUnassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Combining Balance Sheet (Continued) Nonmajor Governmental Funds December 31, 2024 Special Revenue Funds Rental LOIT 2016 Units Loss Recovery Code Local Road Special Human Rights COVID-19 Local Road and MVH Regulation Fund Enforcement and Street Distribution Federal Grants Response Bridge Grant Restricted 176,364$ 1,384,984$ 11,418$ 212,155$ 29,143$ 144,282$ -$ 150,035$ 547,422$ 223,496 1,756,590 - 269,075 36,963 174,781 - 190,289 639,577 74,504 - 116,836 5,255 - - - - - 2 - 189 (1) - - - - - - - - - - - - - - - 3,156,650 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 474,366$ 6,298,224$ 128,443$ 486,484$ 66,106$ 319,063$ -$ 340,324$ 1,186,999$ -$ -$ 118,784$ 161,835$ -$ 8,602$ -$ -$ 51,484$ - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,724 - 107,444 - - 9,031 - - - 151 - 5,936 - - 499 - - - - - - - - - - - - - - - - - - - - - 2,875 - 232,164 161,835 - 18,132 - - 51,484 - 3,156,650 - - - - - - - - - - - - - - - - - 3,156,650 - - - - - - - - - - - - - - - - - - - 324,649 66,106 300,931 - 340,324 1,135,515 471,491 3,141,574 - - - - - - - - - - - - - - - - - - (103,721) - - - - - - 471,491 3,141,574 (103,721) 324,649 66,106 300,931 - 340,324 1,135,515 474,366$ 6,298,224$ 128,443$ 486,484$ 66,106$ 319,063$ -$ 340,324$ 1,186,999$ 127 City of South Bend, Indiana Assets Cash and cash equivalentsInvestmentsReceivables:AccountsInterestTaxes Intergovernmental Property taxes LoansDue from other fundsAdvances to other fundsProperty held for resale Restricted assets Total assets Liabilities Accounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payable Taxes payable Other current payables Customer deposits Total liabilities Deferred inflows of resources - unavailable revenue Intergovernmental receivable Property taxes receivable Total deferred inflows of resources Fund balances Nonspendable RestrictedCommittedAssignedUnassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Combining Balance Sheet (Continued) Nonmajor Governmental Funds December 31, 2024 Special Revenue Funds Urban Industrial Indiana River COPS MORE Federal Drug Development Leaf Collection City Bowman Revolving Hazmat Rescue Grant Enforcement Action Grant and Removal Cemetery Cemetery Fund 18,707$ 251,484$ 9,256$ 294,114$ 31,884$ 240,914$ 14,535$ 228,651$ 4,853,400$ 23,724 318,959 11,739 - 40,438 305,027 18,435 289,998 - 18,840 17,200 - - - 56,313 - - 810 (1) (1) - - - - (1) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11,100,255 - - - - - 52 - - - - - - - - - - - - - - - - - - - - 76,300 - - - - - - - - - 61,270$ 587,642$ 20,995$ 294,114$ 72,322$ 602,306$ 32,969$ 518,649$ 16,030,765$ -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,510 - - - - - - - - 415 - - - - - - - - - - - - - - - - - - - - - - - - - - 7,925 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 20,995 294,114 72,322 - 32,969 518,649 16,030,765 61,270 587,642 - - - - - - - - - - - - 594,381 - - - - - - - - - - - - 61,270 587,642 20,995 294,114 72,322 594,381 32,969 518,649 16,030,765 61,270$ 587,642$ 20,995$ 294,114$ 72,322$ 602,306$ 32,969$ 518,649$ 16,030,765$ 128 City of South Bend, Indiana Assets Cash and cash equivalentsInvestmentsReceivables:AccountsInterestTaxes Intergovernmental Property taxes LoansDue from other fundsAdvances to other fundsProperty held for resale Restricted assets Total assets Liabilities Accounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payable Taxes payable Other current payables Customer deposits Total liabilities Deferred inflows of resources - unavailable revenue Intergovernmental receivable Property taxes receivable Total deferred inflows of resources Fund balances Nonspendable RestrictedCommittedAssignedUnassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Combining Balance Sheet (Continued) Nonmajor Governmental Funds December 31, 2024 Special Revenue Funds Debt Service Funds 2003 2003 Urban Total Redevelopment Redevelopment 2015 Smart 2017 Eddy St. Enterpise VPA Special Revenue Bond - Airport Bond - Palais Streets Bond 2015 Park Bond 2017 Park Bond Commons Bond Association Foundation Funds Taxable Royale Debt Service Debt Service Debt Service Debt Service 3,338,751$ 4,047,366$ 23,715,128$ 1,077,540$ 1,801,485$ 1,757,416$ 594,295$ 75,295$ 3,669,174$ 180,034 - 8,705,004 47,026 78,620 - - 95,497 - - - 531,333 - - - - - - - - 203 - (1) - 1 - (1) - - - - - - - - - - - 3,156,650 - - - - - - - - - - - - - 1,136,116 - - - 11,214,243 - - - - - - - - 52 - - - - - - - - - - - - - - - - - 2,364,373 - - - - - - - - - - - - - - - 3,518,785$ 4,047,366$ 49,686,986$ 1,124,566$ 1,880,104$ 1,757,416$ 594,296$ 1,306,908$ 3,669,173$ 6,800$ -$ 1,901,480$ -$ -$ -$ -$ -$ -$ - - 71,102 - - - - - - - - - - - - - - - - - 4,950 - - - - - - - - 559,749 - - - - - - - - 30,929 - - - - - - - - 2,828 - - - - - - - - 2,800 - - - - - - 6,800 - 2,573,838 - - - - - - - - 3,156,650 - - - - - - - - - - - - - 1,136,115 - - - 3,156,650 - - - - 1,136,115 - - - - - - - - - - 3,511,985 4,047,366 37,795,796 1,124,566 1,880,104 1,757,416 594,296 170,793 3,669,173 - - 5,270,429 - - - - - - - - 1,060,882 - - - - - - - - (170,609) - - - - - - 3,511,985 4,047,366 43,956,498 1,124,566 1,880,104 1,757,416 594,296 170,793 3,669,173 3,518,785$ 4,047,366$ 49,686,986$ 1,124,566$ 1,880,104$ 1,757,416$ 594,296$ 1,306,908$ 3,669,173$ 129 City of South Bend, Indiana Assets Cash and cash equivalentsInvestmentsReceivables:AccountsInterestTaxes Intergovernmental Property taxes LoansDue from other fundsAdvances to other fundsProperty held for resale Restricted assets Total assets Liabilities Accounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payable Taxes payable Other current payables Customer deposits Total liabilities Deferred inflows of resources - unavailable revenue Intergovernmental receivable Property taxes receivable Total deferred inflows of resources Fund balances Nonspendable RestrictedCommittedAssignedUnassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Combining Balance Sheet (Continued) Nonmajor Governmental Funds December 31, 2024 Capital Debt Service Funds Projects Funds 2018 2018 TIF 2019 South 2020 TIF Century South Bend Fire Station #9 Park Bond Shore Double Library Bond Center Energy Redevelopment Building Total Fire Bond Debt Service Tracking Bond Debt Service Conservation Authority Corporation Debt Service Department Debt Service Reserve Debt Service Reserve Debt Service Debt Service Debt Service Funds Capital 1$ 498,189$ 25,452$ 326,969$ 67,423$ 5,167,209$ 249,384$ 15,309,832$ 2,843,652$ - 631,858 - - 85,513 - - 938,514 - - - - - - - - - 300 - - - - 1 - - - 1 - - - - - - - - - - - - - - - - - - - - - - - - - 1,136,116 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1$ 1,130,047$ 25,452$ 326,969$ 152,937$ 5,167,209$ 249,384$ 17,384,462$ 2,843,953$ -$ -$ -$ -$ -$ -$ -$ -$ 578,169$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 578,169 - - - - - - - - - - - - - - - - 1,136,115 - - - - - - - - 1,136,115 - - - - - - - - - - 1 1,130,047 25,452 326,969 152,937 5,167,209 249,384 16,248,347 2,265,784 - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 1,130,047 25,452 326,969 152,937 5,167,209 249,384 16,248,347 2,265,784 1$ 1,130,047$ 25,452$ 326,969$ 152,937$ 5,167,209$ 249,384$ 17,384,462$ 2,843,953$ 130 City of South Bend, Indiana Assets Cash and cash equivalentsInvestmentsReceivables:AccountsInterestTaxes Intergovernmental Property taxes LoansDue from other fundsAdvances to other fundsProperty held for resale Restricted assets Total assets Liabilities Accounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payable Taxes payable Other current payables Customer deposits Total liabilities Deferred inflows of resources - unavailable revenue Intergovernmental receivable Property taxes receivable Total deferred inflows of resources Fund balances Nonspendable RestrictedCommittedAssignedUnassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Combining Balance Sheet (Continued) Nonmajor Governmental Funds December 31, 2024 Capital Projects Funds Professional Morris Coveleski Cumulative Cumulative Sports Convention Performing Stadium Capital Capital Development Arts Center Redevelopment TIF - West TIF - River East Capital Development Improvement Major Moves Area Capital General Washington Development 94$ 161,508$ 169,649$ 410,383$ 1,141,287$ 6,037,555$ 1,526,813$ 597,024$ 9,619,214$ 118 204,843 215,167 520,491 1,447,507 - 1,937,203 757,213 12,200,156 23,212 - - - - 330,179 - - - (1) (1) - - - 202 - 1 1 - - - - 672,740 - - - - - - - - - - - - - - 704,614 - - - - - 562,954 8,824,216 - - - - - - - - - - - - - - - - - - - - - 515,948 - - - - - - - - - - - 2,214 436,000 10,300 - - - - - - - - - 23,423$ 1,070,964$ 384,816$ 1,446,822$ 3,261,534$ 6,367,936$ 3,466,230$ 2,353,192$ 30,653,887$ -$ -$ -$ 66,103$ 91,346$ 1,041,676$ 38,596$ -$ 2,577,017$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 66,103 91,346 1,041,676 38,596 - 2,577,017 - - - - - - - - - - 704,614 - - - - - 562,954 8,824,216 - 704,614 - - - - - 562,954 8,824,216 - - - 515,948 - - - - - - 366,350 384,816 864,771 3,170,188 - - 1,790,238 19,252,654 23,423 - - - - 5,326,260 3,427,634 - - - - - - - - - - - - - - - - - - - - 23,423 366,350 384,816 1,380,719 3,170,188 5,326,260 3,427,634 1,790,238 19,252,654 23,423$ 1,070,964$ 384,816$ 1,446,822$ 3,261,534$ 6,367,936$ 3,466,230$ 2,353,192$ 30,653,887$ 131 City of South Bend, Indiana Assets Cash and cash equivalentsInvestmentsReceivables:AccountsInterestTaxes Intergovernmental Property taxes LoansDue from other fundsAdvances to other fundsProperty held for resale Restricted assets Total assets Liabilities Accounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payable Taxes payable Other current payables Customer deposits Total liabilities Deferred inflows of resources - unavailable revenue Intergovernmental receivable Property taxes receivable Total deferred inflows of resources Fund balances Nonspendable RestrictedCommittedAssignedUnassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Combining Balance Sheet (Continued) Nonmajor Governmental Funds December 31, 2024 Capital Projects Funds TIF - Southside Certified Palais Royale Airport Urban 2023 RDA 2024B RDA 2024A RDA Development TIF - Douglas TIF - River East Technology Historic Enterprise Lease-Rental Bond - Madison Bond - Four Area No. 1 Road Residential Park Preservation Zone Bond Capital Lifestyle District Winds Field 3,821,898$ 434,728$ 4,491,910$ 5,360$ 66,311$ 197,395$ 16,919,563$ 17,448,598$ 44,187,444$ 4,847,357 551,368 5,697,143 6,799 84,101 250,360 - - - - - - - 2,611 - - - - - (2) - - (1) 1 1 1 1 - - - - - - - - - - - - - - - - - - 3,539,886 270,234 7,209,424 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12,209,141$ 1,256,328$ 17,398,477$ 12,159$ 153,022$ 447,756$ 16,919,564$ 17,448,599$ 44,187,445$ 363,376$ -$ 125,871$ -$ -$ -$ 301,258$ 14,570$ 2,400,286$ - - - - - - - - - - - 515,948 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 363,376 - 641,819 - - - 301,258 14,570 2,400,286 - - - - - - - - - 3,539,886 270,234 7,209,424 - - - - - - 3,539,886 270,234 7,209,424 - - - - - - - - - - - - - - - 8,305,879 986,094 9,547,234 12,159 - - 16,618,306 17,434,029 41,787,159 - - - - 153,022 447,756 - - - - - - - - - - - - - - - - - - - - - 8,305,879 986,094 9,547,234 12,159 153,022 447,756 16,618,306 17,434,029 41,787,159 12,209,141$ 1,256,328$ 17,398,477$ 12,159$ 153,022$ 447,756$ 16,919,564$ 17,448,599$ 44,187,445$ 132 City of South Bend, Indiana Assets Cash and cash equivalentsInvestmentsReceivables:AccountsInterestTaxes Intergovernmental Property taxes LoansDue from other fundsAdvances to other fundsProperty held for resale Restricted assets Total assets Liabilities Accounts payableDue to other fundsAdvances from other fundsPerformance deposits payableAccrued liabilities and other:Accrued payroll payable Taxes payable Other current payables Customer deposits Total liabilities Deferred inflows of resources - unavailable revenue Intergovernmental receivable Property taxes receivable Total deferred inflows of resources Fund balances Nonspendable RestrictedCommittedAssignedUnassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Combining Balance Sheet (Continued) Nonmajor Governmental Funds December 31, 2024 Capital Projects Funds 2017 Eddy St.2018 Fire 2018 TIF 2021 Total Total Nonmajor 2017 Park Commons Bond Station #9 Park Bond Infrastructure Capital Projects Governmental Bond Capital Capital Bond Capital Capital Bond Capital Funds Funds 378,806$ 25,766$ 152,037$ 76,589$ 298,639$ 111,012,223$ 150,037,183$ 480,444 - 192,830 97,137 378,769 29,869,006 39,512,524 - - - - - 356,302 887,635 1 - (1) (1) 1 204 407 - - - - - 672,740 672,740 - - - - - - 3,156,650 - - - - - 21,111,328 22,247,444 - - - - - - 11,214,243 - - - - - - 52 - - - - - 515,948 515,948 - - - - - 448,514 2,812,887 - - - - - - - 859,251$ 25,766$ 344,866$ 173,725$ 677,409$ 163,986,265$ 231,057,713$ -$ -$ -$ -$ -$ 7,598,268$ 9,499,748$ - - - - - - 71,102 - - - - - 515,948 515,948 - - - - - - 4,950 - - - - - - 559,749 - - - - - - 30,929 - - - - - - 2,828 - - - - - - 2,800 - - - - - 8,114,216 10,688,054 - - - - - - 3,156,650 - - - - - 21,111,328 22,247,443 - - - - - 21,111,328 25,404,093 - - - - - 515,948 515,948 859,251 25,766 344,866 173,725 677,409 124,866,678 178,910,821 - - - - - 9,378,095 14,648,524 - - - - - - 1,060,882 - - - - - - (170,609) 859,251 25,766 344,866 173,725 677,409 134,760,721 194,965,566 859,251$ 25,766$ 344,866$ 173,725$ 677,409$ 163,986,265$ 231,057,713$ 133 City of South Bend, Indiana Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2024 Special Revenue Funds Studebaker Law Oliver Economic DCI Gift Enforcement Motor Vehicle Revitalization Development Federal Police State Donation Unsafe ContinuingHighwayGrantsState Grants DCI Operating Grants Seizure Bequest Building Education Revenues Property taxes -$ -$ -$ -$ -$ -$ -$ -$ -$ Income taxes - - - - - - - - - Hotel/motel taxes - - - - - - - - - Licenses and permits 2,250 - - - - - - - - Intergovernmental 3,196,690 - 67,698 - 1,903,441 - - - 553,922 Charges for services 103,179 - -407,739 - - - - 111,828 Fines and forfeitures - - - 122,280 - - - 94,395 83,835 Investment income (loss)161,543 31,498 - 6,034 - 13,707 218,866 45,712 33,917 Other 305,280 - - 39,424 82,195 38,123 3,561,983 - 7,432 Total revenues 3,768,942 31,498 67,698 575,477 1,985,636 51,830 3,780,849 140,107 790,934 Expenditures Current: General government - - - - - - 35,192 23,050 - Public safety - - - - - - - - 591,490 Highways and streets 10,535,101 - - - - - 6,214,638 - - Community and economic development - 38,843 - 4,224,371 2,848,279 - 7,163 - - Culture and recreation - -- -- - - - - Capital outlay:General government - - - - - - - - - Public safety - - - - - - - - 277,429 Highways and streets 3,019,103 - - - - - - - - Community and economic development - - - - - - - - - Culture and recreation - - - - - - - - - Debt service:Principal 1,469,371 - - - - - - - - Interest on long-term debt 179,832 - - - - - - - - Bond issuance costs - - - - - - - - - Total expenditures 15,203,407 38,843 - 4,224,371 2,848,279 - 6,256,993 23,050 868,919 Excess of revenues (under) over expenditures (11,434,465) (7,345) 67,698 (3,648,894) (862,643) 51,830 (2,476,144) 117,057 (77,985) Other financing sources (uses) Issuance of debt 2,670,000 - - - - - - - - Premium on debt - - - - - - - - - Proceeds from sale of capital assets 44,620 - - - - - - - - Transfers in 7,400,000 - - 3,872,000 - - - - - Transfers out - - - - - - - - - Total other financing sources (uses)10,114,620 - - 3,872,000 - - - - - Net change in fund balances (1,319,845) (7,345) 67,698 223,106 (862,643) 51,830 (2,476,144) 117,057 (77,985) Fund balances - Beginning of year 5,786,864 650,375 (134,586) 243,395 3,731,071 256,377 4,397,554 891,395 968,997 Fund balances - End of year 4,467,019$ 643,030$ (66,888)$ 466,501$ 2,868,428$ 308,207$ 1,921,410$ 1,008,452$ 891,012$ 134 City of South Bend, Indiana Revenues Property taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for services Fines and forfeitures Investment income (loss)Other Total revenues Expenditures Current: General government Public safety Highways and streetsCommunity and economic developmentCulture and recreationCapital outlay:General governmentPublic safety Highways and streets Community and economic development Culture and recreation Debt service:PrincipalInterest on long-term debtBond issuance costs Total expenditures Excess of revenues (under) over expenditures Other financing sources (uses) Issuance of debt Premium on debtProceeds from sale of capital assetsTransfers inTransfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2024 Special Revenue Funds Rental LOIT 2016 Units Loss Recovery Code Local Road Special Human Rights COVID-19RegulationFundEnforcementand Street Distribution Federal Grants Response -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - 21,615 - - - - - 991,612 - 2,396,793 - 380,139 197,788 - - 45,391 - - - - 302,787 - 189,507 - - - - 13,686 130,986 5,696 47,705 3,108 8,860 - - - 5,053 - - - - 316,473 1,122,598 267,262 2,444,498 3,108 388,999 197,788 57,437 - 4,671,711 - - 237,094 - - - - - - - - - - - 2,620,046 - - - - 150,000 - - - - 85,747 - - - - - - - - - 193,647 - - - - - - - - - - - - - - 204,513 - - - - - - - - - - - - - - - - - - - 247,430 - - - - - - 29,098 - - - - - - - - - - - 57,437 150,000 5,141,886 2,824,559 - 237,094 85,747 259,036 972,598 (4,874,624) (380,061) 3,108 151,905 112,041 - - 300,000 - - - - - - - - - - - - - 4,439 - - - - - - 4,452,200 - - - - - - - - - - - - - 4,756,639 - - - - 259,036 972,598 (117,985) (380,061) 3,108 151,905 112,041 212,455 2,168,976 14,264 704,710 62,998 149,026 (112,041) 471,491$ 3,141,574$ (103,721)$ 324,649$ 66,106$ 300,931$ -$ 135 City of South Bend, Indiana Revenues Property taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for services Fines and forfeitures Investment income (loss)Other Total revenues Expenditures Current: General government Public safety Highways and streetsCommunity and economic developmentCulture and recreationCapital outlay:General governmentPublic safety Highways and streets Community and economic development Culture and recreation Debt service:PrincipalInterest on long-term debtBond issuance costs Total expenditures Excess of revenues (under) over expenditures Other financing sources (uses) Issuance of debt Premium on debtProceeds from sale of capital assetsTransfers inTransfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2024 Special Revenue Funds Urban Local Road and MVH Indiana River COPS MORE Federal Drug Development Leaf CollectionBridge Grant Restricted Hazmat Rescue Grant Enforcement Action Grant and Removal -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - 1,111,751 3,196,690 - - - - - - - - 24,983 137,521 - - - 455,341 - - - - - - - - 30,939 53,219 1,796 25,220 234 2,689 3,375 25,468 - - - - - 89,867 - - 1,142,690 3,249,909 26,779 162,741 234 92,556 3,375 480,809 - - - - - - - - - - - 59,893 - - - - 1,229,350 2,768,455 - - - - - 99,702 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 173,826 - - - - - - - 19,021 - - - - - - - - - - - - - - 1,229,350 2,961,302 - 59,893 - - - 99,702 (86,660) 288,607 26,779 102,848 234 92,556 3,375 381,107 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (300,000) - - - - - - - (300,000) (86,660) 288,607 26,779 102,848 234 92,556 3,375 81,107 426,984 846,908 34,491 484,794 20,761 201,558 68,947 513,274 340,324$ 1,135,515$ 61,270$ 587,642$ 20,995$ 294,114$ 72,322$ 594,381$ 136 City of South Bend, Indiana Revenues Property taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for services Fines and forfeitures Investment income (loss)Other Total revenues Expenditures Current: General government Public safety Highways and streetsCommunity and economic developmentCulture and recreationCapital outlay:General governmentPublic safety Highways and streets Community and economic development Culture and recreation Debt service:PrincipalInterest on long-term debtBond issuance costs Total expenditures Excess of revenues (under) over expenditures Other financing sources (uses) Issuance of debt Premium on debtProceeds from sale of capital assetsTransfers inTransfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2024 Special Revenue Funds Debt Service Funds 2003 2003 Industrial Urban Total Redevelopment Redevelopment City Bowman Revolving Enterpise VPA Special Revenue Bond - Airport Bond - PalaisCemeteryCemeteryFundAssociationFoundationFundsTaxableRoyale -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - 23,865 - - - - - - - 13,996,524 - - - - - 10,133 - 1,296,115 - - - - - - - 792,804 - - 1,539 24,206 165,828 192 - 1,056,023 46,860 78,343 - - 607,853 - 12,389,342 17,126,552 - - 1,539 24,206 773,681 10,325 12,389,342 34,291,883 46,860 78,343 - - - - - 5,024,484 - - - - - - - 651,383 - - - - - - - 23,467,292 - - - - 81,010 48,488 - 7,483,901 - - - - - - 14,435,015 14,435,015 - - - - - - - 193,647 - - - - - - - 277,429 - - - - - - - 3,223,616 - - - - - - - - - - - - - - - - - - - - - - - 1,890,627 - - - - - - - 227,951 - - - - - - - - - - - - 81,010 48,488 14,435,015 56,875,345 - - 1,539 24,206 692,671 (38,163) (2,045,673) (22,583,462) 46,860 78,343 - - - - - 2,970,000 - - - - - - - - - - - - - 1,253,190 - 1,302,249 - - - - - - - 15,724,200 - - - - - - - (300,000) - - - - - 1,253,190 - 19,696,449 - - 1,539 24,206 692,671 1,215,027 (2,045,673) (2,887,013) 46,860 78,343 31,430 494,443 15,338,094 2,296,958 6,093,039 46,843,511 1,077,706 1,801,761 32,969$ 518,649$ 16,030,765$ 3,511,985$ 4,047,366$ 43,956,498$ 1,124,566$ 1,880,104$ 137 City of South Bend, Indiana Revenues Property taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for services Fines and forfeitures Investment income (loss)Other Total revenues Expenditures Current: General government Public safety Highways and streetsCommunity and economic developmentCulture and recreationCapital outlay:General governmentPublic safety Highways and streets Community and economic development Culture and recreation Debt service:PrincipalInterest on long-term debtBond issuance costs Total expenditures Excess of revenues (under) over expenditures Other financing sources (uses) Issuance of debt Premium on debtProceeds from sale of capital assetsTransfers inTransfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2024 Debt Service Funds 2018 2018 TIF 2019 South 2020 TIF 2015 Smart 2017 Eddy St.Fire Station #9 Park Bond Shore Double Library Bond Streets Bond 2015 Park Bond 2017 Park Bond Commons Bond Bond Debt Service Tracking Bond Debt ServiceDebt Service Debt Service Debt Service Debt Service Debt Service Reserve Debt Service Reserve -$ -$ 1,133,783$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - 58,349 - - - - - - - - - - - - - - - - - - - - - 84 5,011 3,676 171 - 52,738 3 17 - - - - - - - - 84 5,011 1,195,808 171 - 52,738 3 17 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,120,000 240,000 890,000 810,000 220,000 - 760,000 - 586,394 128,381 287,990 1,131,375 121,331 - 273,625 - - - - - - - - - 1,706,394 368,381 1,177,990 1,941,375 341,331 - 1,033,625 - (1,706,310) (363,370) 17,818 (1,941,204) (341,331) 52,738 (1,033,622) 17 - - - - - - - - - - - - - - - - - - - - - - - - 1,712,500 398,819 - 1,941,375 341,332 - 1,039,000 - - - - - - - - (1) 1,712,500 398,819 - 1,941,375 341,332 - 1,039,000 (1) 6,190 35,449 17,818 171 1 52,738 5,378 16 1,751,226 558,847 152,975 3,669,002 - 1,077,309 20,074 326,953 1,757,416$ 594,296$ 170,793$ 3,669,173$ 1$ 1,130,047$ 25,452$ 326,969$ 138 City of South Bend, Indiana Revenues Property taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for services Fines and forfeitures Investment income (loss)Other Total revenues Expenditures Current: General government Public safety Highways and streetsCommunity and economic developmentCulture and recreationCapital outlay:General governmentPublic safety Highways and streets Community and economic development Culture and recreation Debt service:PrincipalInterest on long-term debtBond issuance costs Total expenditures Excess of revenues (under) over expenditures Other financing sources (uses) Issuance of debt Premium on debtProceeds from sale of capital assetsTransfers inTransfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2024 Debt Service Funds Capital Projects Funds Century South Bend Center Energy Redevelopment Building Total Fire Coveleski Cumulative Cumulative Conservation Authority Corporation Debt Service Department Stadium Capital CapitalDebt Service Debt Service Debt Service Funds Capital Capital Development Improvement -$ -$ -$ 1,133,783$ -$ -$ 664,179$ -$ - - - - - - - - 221,438 - - 221,438 - - - - - - - - - - - - - - - 58,349 - - 41,911 167,350 - - - - 2,071,883 23,211 - - - - - - - - - - 6,365 16,279 2,438 211,985 47,647 32 9,890 13,935 73,619 - - 73,619 9,854 - - - 301,422 16,279 2,438 1,699,174 2,129,384 23,243 715,980 181,285 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 21,613 - - - - - - - - - - - - - - 2,191,932 - - - - - - - - - - - - - - - - - - - - - - - - - - - 309,315 2,300,000 910,000 7,559,315 1,164,500 - 47,993 - 84,073 2,386,781 514,543 5,514,493 97,956 - 547 - - - - - - - -- 393,388 4,686,781 1,424,543 13,073,808 3,454,388 21,613 48,540 - (91,966) (4,670,502) (1,422,105) (11,374,634) (1,325,004) 1,630 667,440 181,285 - - - - 2,745,000 - - - - - - - - - - - - - - - 22,540 - - - 212,073 9,388,500 1,440,000 16,473,599 - 19,000 - - - - - (1) (746,961) - (500,000) (75,000) 212,073 9,388,500 1,440,000 16,473,598 2,020,579 19,000 (500,000) (75,000) 120,107 4,717,998 17,895 5,098,964 695,575 20,630 167,440 106,285 32,830 449,211 231,489 11,149,383 1,570,209 2,793 198,910 278,531 152,937$ 5,167,209$ 249,384$ 16,248,347$ 2,265,784$ 23,423$ 366,350$ 384,816$ 139 City of South Bend, Indiana Revenues Property taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for services Fines and forfeitures Investment income (loss)Other Total revenues Expenditures Current: General government Public safety Highways and streetsCommunity and economic developmentCulture and recreationCapital outlay:General governmentPublic safety Highways and streets Community and economic development Culture and recreation Debt service:PrincipalInterest on long-term debtBond issuance costs Total expenditures Excess of revenues (under) over expenditures Other financing sources (uses) Issuance of debt Premium on debtProceeds from sale of capital assetsTransfers inTransfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2024 Capital Projects Funds Professional Morris Sports Convention Performing TIF - Southside Development Arts Center Redevelopment TIF - West TIF - River East Development TIF - DouglasMajor Moves Area Capital General Washington Development Area No. 1 Road -$ -$ -$ -$ 610,118$ 8,221,833$ 3,445,272$ 346,094$ - - - 22 - - - - - - - 750,388 - - - - - - - - - - - - 9,706 6,746,912 1,500,000 - - - - - - - - - - - - - - - - - - - - - 69,182 141,161 231 168,016 73,848 838,262 462,054 37,057 12,386 - 6,200,000 1,597,977 - 2,406,481 - - 91,274 6,888,073 7,700,231 2,516,403 683,966 11,466,576 3,907,326 383,151 - - - - - - - - - - - - - - - - 606,964 - - - - - - - - - - 725,856 1,140,000 1,752,339 274,003 - - - - - - - - - - - - - - - - - - - - - - - - - 336,590 - - - - - - - - - - 824,038 - 3,939,401 7,263,030 - - 217,132 2,530,557 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 943,554 217,132 2,530,557 1,549,894 1,140,000 5,691,740 7,537,033 - (852,280) 6,670,941 5,169,674 966,509 (456,034) 5,774,836 (3,629,707) 383,151 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (4,020,000) - (763,500) - (784,200) - - - (4,020,000) - (763,500) - (784,200) - - (852,280) 2,650,941 5,169,674 203,009 (456,034) 4,990,636 (3,629,707) 383,151 2,232,999 519,247 156,586 3,224,625 2,246,272 14,262,018 11,935,586 602,943 1,380,719$ 3,170,188$ 5,326,260$ 3,427,634$ 1,790,238$ 19,252,654$ 8,305,879$ 986,094$ 140 City of South Bend, Indiana Revenues Property taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for services Fines and forfeitures Investment income (loss)Other Total revenues Expenditures Current: General government Public safety Highways and streetsCommunity and economic developmentCulture and recreationCapital outlay:General governmentPublic safety Highways and streets Community and economic development Culture and recreation Debt service:PrincipalInterest on long-term debtBond issuance costs Total expenditures Excess of revenues (under) over expenditures Other financing sources (uses) Issuance of debt Premium on debtProceeds from sale of capital assetsTransfers inTransfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2024 Capital Projects Funds Certified Palais Royale Airport Urban 2023 RDA 2024B RDA 2024A RDA TIF - River East Technology Historic Enterprise Lease-Rental Bond - Madison Bond - Four 2017 ParkResidentialParkPreservationZoneBond Capital Lifestyle District Winds Field Bond Capital 7,798,612$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 18,483 - - - - - - - - - - - - - 406,823 567 6,745 20,895 908,612 31,843 648,778 49,987 - - - - 120,181 - - - 8,205,435 567 25,228 20,895 1,028,793 31,843 648,778 49,987 - - - - - - - - - - - - - - - - - - - - - - - - 10,740 - - - 281,718 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,283,000 - - - 10,727,176 71,735 - - - - - - - - 3,874,914 290,851 - - - - - - - - 13,886 - - - - - - - - - - - - 264,938 552,707 - 2,307,626 - - - 11,008,894 336,673 4,427,621 290,851 5,897,809 567 25,228 20,895 (9,980,101) (304,830) (3,778,843) (240,864) - - - - - 24,480,000 44,860,000 - - - - - - - 706,002 - - - - - - - - - - - - - - - - - (4,414,875) - - - - (6,741,141) - - (4,414,875) - - - - 17,738,859 45,566,002 - 1,482,934 567 25,228 20,895 (9,980,101) 17,434,029 41,787,159 (240,864) 8,064,300 11,592 127,794 426,861 26,598,407 - - 1,100,115 9,547,234$ 12,159$ 153,022$ 447,756$ 16,618,306$ 17,434,029$ 41,787,159$ 859,251$ 141 City of South Bend, Indiana Revenues Property taxesIncome taxesHotel/motel taxesLicenses and permitsIntergovernmentalCharges for services Fines and forfeitures Investment income (loss)Other Total revenues Expenditures Current: General government Public safety Highways and streetsCommunity and economic developmentCulture and recreationCapital outlay:General governmentPublic safety Highways and streets Community and economic development Culture and recreation Debt service:PrincipalInterest on long-term debtBond issuance costs Total expenditures Excess of revenues (under) over expenditures Other financing sources (uses) Issuance of debt Premium on debtProceeds from sale of capital assetsTransfers inTransfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2024 Capital Projects Funds 2017 Eddy St.2018 Fire 2018 TIF 2021 Total Total Nonmajor Commons Bond Station #9 Park Bond Infrastructure Capital Projects GovernmentalCapitalBond Capital Capital Bond Capital Funds Funds -$ -$ -$ -$ 21,086,108$ 22,219,891$ - - - - 22 22 - - - - 750,388 971,826 - - - - - 23,865 - - - - 8,465,879 22,520,752 - - - - 2,113,577 3,409,692 - - - - - 792,804 1 16,094 50,015 33,893 4,035,568 5,303,576 - - - - 10,346,879 27,547,050 1 16,094 50,015 33,893 46,798,421 82,789,478 - - - - - 5,024,484 - - - - - 651,383 - - - - 606,964 24,074,256 - - - - 4,184,656 11,668,557 - - - - 21,613 14,456,628 - - - - - 193,647 - - - - 2,191,932 2,469,361 - - - 72,632 409,222 3,632,838 - - - - 25,108,380 25,108,380 - - 1,318,984 - 8,232,438 8,232,438 - - - - 1,212,493 10,662,435 - - - - 112,389 5,854,833 - - - - 817,645 817,645 - - 1,318,984 72,632 42,897,732 112,846,885 1 16,094 (1,268,969) (38,739) 3,900,689 (30,057,407) - - - - 72,085,000 75,055,000 - - - - 706,002 706,002 - - - - 22,540 1,324,789 - - - - 19,000 32,216,799 - - - - (18,045,677) (18,345,678) - - - - 54,786,865 90,956,912 1 16,094 (1,268,969) (38,739) 58,687,554 60,899,505 25,765 328,772 1,442,694 716,148 76,073,167 134,066,061 25,766$ 344,866$ 173,725$ 677,409$ 134,760,721$ 194,965,566$ 142 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Major Governmental Funds Capital Projects Funds - River West TIF For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 18,091,160$ 20,520,362$ 20,520,362$ -$ Taxes - local income tax - - - - Intergovernmental 396,500 1,696,200 1,919,401 223,201 Charges for services - - 7,210 7,210 Investment income 465,981 465,981 1,062,628 596,647 Other - 44,500 457,110 412,610 Total revenues 18,953,641 22,727,043 23,966,711 1,239,668 Expenditures: Current: Economic development:Other services and charges 8,036,435 9,614,706 9,561,189 53,517 Capital outlay 12,218,665 28,149,799 26,014,116 2,135,683 Total expenditures 20,255,100 37,764,505 35,575,305 2,189,200 Other Financing Sources (Uses): Transfers in - 6,741,141 6,741,141 - Transfers out - - (3,670,300) (3,670,300) Net change in fund balances (1,301,459) (8,296,321) (8,537,753) (241,432) Fund balances - Beginning 25,487,120 25,487,120 25,487,120 - Fund balances - Ending 24,185,661$ 17,190,799$ 16,949,367$ (241,432)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (8,537,753)$ To adjust revenues for accruals 146,289 To adjust expenditures for accruals (452,912) Net change in fund balance, GAAP basis (8,844,376)$ 143 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds Special Revenue Funds - Motor Vehicle Highway For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Licenses and permits 1,500$ 1,500$ 2,250$ 750$ Intergovernmental 3,174,424 3,174,424 3,196,691 22,267 Charges for services 165,300 165,300 103,179 (62,121) Investment income 22,417 22,417 147,816 125,399 Other 196,818 196,818 305,280 108,462 Total revenues 3,560,459 3,560,459 3,755,216 194,757 Expenditures: Current: Highways and streets: Personnel services 5,513,950 5,513,950 4,800,554 713,396 Supplies 1,812,068 1,494,524 1,247,843 246,681 Other services and charges 6,754,241 6,562,009 5,830,681 731,328 Capital outlay 5,302,382 4,835,454 3,131,758 1,703,696 Total expenditures 19,382,641 18,405,937 15,010,836 3,395,101 Other Financing Sources (Uses): Debt proceeds - - 2,670,000 2,670,000 Transfers in 10,000,000 10,000,000 7,400,000 (2,600,000) Transfers out - - - - Net change in fund balances (5,822,182) (4,845,478) (1,141,000) 3,704,478 Fund balances - Beginning 5,389,843 5,389,843 5,389,843 - Fund balances - Ending (432,339)$ 544,365$ 4,248,843$ 3,704,478$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (1,141,000)$ To adjust revenues for accruals 13,727 To adjust expenditures for accruals (192,572) Net change in fund balance, GAAP basis (1,319,845)$ 144 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Studebaker Oliver Revitalization Grants For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 11,321$ 11,321$ 26,294$ 14,973$ Other - - - - Total revenues 11,321 11,321 26,294 14,973 Expenditures:Current: Economic development:Other services and charges 98,331 43,705 39,368 4,337 Capital outlay - - - - Total expenditures 98,331 43,705 39,368 4,337 Net change in fund balances (87,010) (32,384) (13,074) 19,310 Fund balances - Beginning 643,028 643,028 643,028 - Fund balances - Ending 556,018$ 610,644$ 629,954$ 19,310$ Budget/GAAP ReconciliationNet change in fund balance, budget basis (13,074)$ To adjust revenues for accruals 5,205 To adjust expenditures for accruals 524 Net change in fund balance, GAAP basis (7,345)$ 145 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Economic Development State Grants For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ 67,698$ 67,698$ Investment income - - - - Other - - - - Total revenues - - 67,698 67,698 Expenditures: Current: Economic development: Other services and charges 8,770 - - - Total expenditures 8,770 - - - Net change in fund balances (8,770) - 67,698 67,698 Fund balances - Beginning - - - - Fund balances - Ending (8,770)$ -$ 67,698$ 67,698$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 67,698$ To adjust revenues for accruals - To adjust expenditures for accruals - Net change in fund balance, GAAP basis 67,698$ 146 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - DCI Operating For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ -$ -$ Charges for services 825,449 825,449 407,740 (417,709) Fines and forfeitures 58,450 58,450 122,280 63,830 Investment income 1,463 1,463 365 (1,098) Other - - 39,424 39,424 Total revenues 885,362 885,362 569,809 (315,553) Expenditures: Current: Economic development: Personnel services 3,106,504 3,006,504 2,623,094 383,410 Supplies 53,190 29,190 34,082 (4,892) Other services and charges 1,852,925 1,587,529 1,576,636 10,893 Total expenditures 5,012,619 4,623,223 4,233,812 389,411 Other Financing Sources (Uses): Transfers in 4,250,000 4,250,000 3,872,000 (378,000) Transfers out - - - - Net change in fund balances 122,743 512,139 207,997 (304,142) Fund balances - Beginning 622,046 622,046 622,046 - Fund balances - Ending 744,789$ 1,134,185$ 830,043$ (304,142)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 207,997$ To adjust revenues for accruals 5,669 To adjust expenditures for accruals 9,440 Net change in fund balance, GAAP basis 223,106$ 147 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - DCI Federal Grants For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 2,712,968$ 2,712,968$ 1,903,440$ (809,528)$ Fines and forfeitures - - - - Other 10,000 10,000 85,985 75,985 Total revenues 2,722,968 2,722,968 1,989,425 (733,543) Expenditures: Current: Economic development: Other services and charges 8,116,210 11,427,588 2,859,882 8,567,706 Total expenditures 8,116,210 11,427,588 2,859,882 8,567,706 Net change in fund balances (5,393,242) (8,704,620) (870,457) 7,834,163 Fund balances - Beginning 262,755 262,755 262,755 - Fund balances - Ending (5,130,487)$ (8,441,865)$ (607,702)$ 7,834,163$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (870,457)$ To adjust revenues for accruals (3,789) To adjust expenditures for accruals 11,603 Net change in fund balance, GAAP basis (862,643)$ 148 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Police State Seizure For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 15,000$ 15,000$ 38,123$ 23,123$ Investment income 3,619 3,619 11,348 7,729 Total revenues 18,619 18,619 49,471 30,852 Expenditures:Current: Public safety: Other services and charges - - - - Capital outlay - - - - Total expenditures - - - - Other Financing Sources (Uses):Transfers in - - - - Net change in fund balances 18,619 18,619 49,471 30,852 Fund balances - Beginning 308,208 308,208 308,208 - Fund balances - Ending 326,827$ 326,827$ 357,679$ 30,852$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 49,471$ To adjust revenues for accruals 2,359 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 51,830$ 149 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Gift, Donation, Bequest For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 15,524$ 15,524$ 186,739$ 171,215$ Other 7,033,000 7,033,000 3,561,983 (3,471,017) Total revenues 7,048,524 7,048,524 3,748,722 (3,299,802) Expenditures:Current: General government: Supplies - - - - Other services and charges 7,032,059 6,015,432 5,339,970 675,462 Total expenditures 7,032,059 6,015,432 5,339,970 675,462 Net change in fund balances 16,465 1,033,092 (1,591,248) (2,624,340) Fund balances - Beginning 2,837,135 2,837,135 2,837,135 - Fund balances - Ending 2,853,600$ 3,870,227$ 1,245,887$ (2,624,340)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (1,591,248)$ To adjust revenues for accruals 32,126 To adjust expenditures for accruals (917,022) Net change in fund balance, GAAP basis (2,476,144)$ 150 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Unsafe Building For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Fines and forfeitures 60,400$ 60,400$ 94,394$ 33,994$ Investment income 17,984 17,984 37,818 19,834 Total revenues 78,384 78,384 132,212 53,828 Expenditures:Current: General government:Other services and charges 24,880 24,880 24,780 100 Total expenditures 24,880 24,880 24,780 100 Net change in fund balances 53,504 53,504 107,432 53,928 Fund balances - Beginning 1,013,403 1,013,403 1,013,403 - Fund balances - Ending 1,066,907$ 1,066,907$ 1,120,835$ 53,928$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 107,432$ To adjust revenues for accruals 7,895 To adjust expenditures for accruals 1,730 Net change in fund balance, GAAP basis 117,057$ 151 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Law Enforcement Continuing Education For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 300,000$ 300,000$ 553,924$ 253,924$ Charges for services 120,700 120,700 111,828 (8,872) Fines and forfeitures 107,272 107,272 83,835 (23,437) Investment income 11,263 11,263 26,498 15,235 Other 1,060 1,060 7,432 6,372 Total revenues 540,295 540,295 783,517 243,222 Expenditures: Current: Public safety: Supplies 219,019 487,972 403,989 83,983 Other services and charges 291,019 297,148 223,202 73,946 Capital outlay 40,000 350,000 277,429 72,571 Total expenditures 550,038 1,135,120 904,620 230,500 Other Financing Sources (Uses):Transfers in - - - - Net change in fund balances (9,743) (594,825) (121,103) 473,722 Fund balances - Beginning 879,724 879,724 879,724 - Fund balances - Ending 869,981$ 284,899$ 758,621$ 473,722$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (121,103)$ To adjust revenues for accruals 7,417 To adjust expenditures for accruals 35,701 Net change in fund balance, GAAP basis (77,985)$ 152 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Rental Units Regulation For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Fines and forfeitures 100,000$ 100,000$ 302,788$ 202,788$ Investment income 1,861 1,861 10,924 9,063 Total revenues 101,861 101,861 313,712 211,851 Expenditures:Current: General government: Personnel services - - (5,733) 5,733 Supplies - - - - Other services and charges 206,211 115,345 62,325 53,020 Total expenditures 206,211 115,345 56,592 58,753 Other Financing Sources (Uses): Transfers in - - - - Net change in fund balances (104,350) (13,484) 257,120 270,604 Fund balances - Beginning 399,860 399,860 399,860 - Fund balances - Ending 295,510$ 386,376$ 656,980$ 270,604$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 257,120$ To adjust revenues for accruals 2,760 To adjust expenditures for accruals (844) Net change in fund balance, GAAP basis 259,036$ 153 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Loss Recovery For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ 991,612$ 991,612$ Investment income 21,226 21,226 108,013 86,787 Other - - - - Total revenues 21,226 21,226 1,099,625 1,078,399 Net change in fund balances 21,226 (128,774) 949,625 1,078,399 Fund balances - Beginning 3,141,574 3,141,574 3,141,574 - Fund balances - Ending 3,162,800$ 3,012,800$ 4,091,199$ 1,078,399$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 949,625$ To adjust revenues for accruals 22,973 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 972,598$ 154 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Code Enforcement For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Licenses and permits 37,000$ 37,000$ 21,615$ (15,385)$ Charges for services 50,300 50,300 45,391 (4,909) Fines and forfeitures 342,000 342,000 189,507 (152,493) Investment income - - 5,887 5,887 Other 500 500 5,053 4,553 Total revenues 429,800 429,800 267,453 (162,347) Expenditures: Current: General government: Personnel services 4,007,141 3,716,141 2,756,968 959,173 Supplies 242,774 223,254 179,819 43,435 Other services and charges 2,205,651 2,023,880 1,930,572 93,308 Capital outlay 677,058 441,198 133,864 307,334 Total expenditures 7,132,624 6,404,473 5,001,223 1,403,250 Other Financing Sources (Uses): Debt proceeds - - 300,000 300,000 Proceeds from sale of capital assets - - 4,439 4,439 Transfers in 5,970,000 5,970,000 4,452,200 (1,517,800) Net change in fund balances (732,824) (4,673) 22,869 27,542 Fund balances - Beginning 11,418 11,418 11,418 - Fund balances - Ending (721,406)$ 6,745$ 34,287$ 27,542$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 22,869$ To adjust revenues for accruals (191) To adjust expenditures for accruals (140,663) Net change in fund balance, GAAP basis (117,985)$ 155 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Local Road and Street For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 2,067,634$ 2,067,634$ 2,396,792$ 329,158$ Investment income 40,156 40,156 41,630 1,474 Total revenues 2,107,790 2,107,790 2,438,422 330,632 Expenditures:Current: Highways and streets: Supplies 400,000 380,000 380,000 - Other services and charges 2,944,437 3,317,856 2,500,319 817,537 Capital outlay 715,085 389,372 389,372 - Total expenditures 4,059,522 4,087,228 3,269,691 817,537 Other Financing Sources (Uses): Transfers out - - - - Net change in fund balances (1,951,732) (1,979,438) (831,269) 1,148,169 Fund balances - Beginning 481,230 481,230 481,230 - Fund balances - Ending (1,470,502)$ (1,498,208)$ (350,039)$ 1,148,169$ Budget/GAAP ReconciliationNet change in fund balance, budget basis (831,269)$ To adjust revenues for accruals 6,075 To adjust expenditures for accruals 445,133 Net change in fund balance, GAAP basis (380,061)$ 156 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - LOIT 2016 Special Distribution For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income 42$ 42$ 2,573$ 2,531$ Other - - - - Total revenues 42 42 2,573 2,531 Expenditures:Current: Highways and streets: Other services and charges 1,501 797 - 797 Capital outlay 52,636 1 - 1 Total expenditures 54,137 798 - 798 Net change in fund balances (54,095) (756) 2,573 3,329 Fund balances - Beginning 66,106 66,106 66,106 - Fund balances - Ending 12,011$ 65,350$ 68,679$ 3,329$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 2,573$ To adjust revenues for accruals 535 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 3,108$ 157 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Human Rights Federal Grants For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 54,600$ 54,600$ 380,140$ 325,540$ Charges for services 85,000 85,000 - (85,000) Investment income - - 6,723 6,723 Other - - - - Total revenues 139,600 139,600 386,863 247,263 Expenditures: Current: General government: Personnel services 197,505 199,905 194,549 5,356 Supplies 2,500 2,500 2,402 98 Other services and charges 66,399 37,149 34,101 3,048 Total expenditures 266,404 239,554 231,052 8,502 Net change in fund balances (126,804) (99,954) 155,811 255,765 Fund balances - Beginning 319,063 319,063 319,063 - Fund balances - Ending 192,259$ 219,109$ 474,874$ 255,765$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 155,811$ To adjust revenues for accruals 2,137 To adjust expenditures for accruals (6,043) Net change in fund balance, GAAP basis 151,905$ 158 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - COVID-19 Response For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ 197,789$ 197,789$ Other - - - - Total revenues - - 197,789 197,789 Expenditures:Current: General government: Supplies - - - - Other services and charges 90,148 122,305 118,138 4,167 Total expenditures 90,148 122,305 118,138 4,167 Other Financing Sources (Uses):Transfers in - - - - Transfers out - - - - Net change in fund balances (90,148) (122,305) 79,651 201,956 Fund balances - Beginning - - - - Fund balances - Ending (90,148)$ (122,305)$ 79,651$ 201,956$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 79,651$ To adjust revenues for accruals (1) To adjust expenditures for accruals 32,391 Net change in fund balance, GAAP basis 112,041$ 159 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Local Road and Bridge Grant For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 1,000,000$ 1,000,000$ 1,111,750$ 111,750$ Investment income 7,369 7,369 27,984 20,615 Total revenues 1,007,369 1,007,369 1,139,734 132,365 Expenditures:Current: Highways and streets:Other services and charges 2,222,695 1,229,351 1,229,350 1 Total expenditures 2,222,695 1,229,351 1,229,350 1 Other Financing Sources (Uses): Transfers in - - - - Net change in fund balances (1,215,326) (221,982) (89,616) 132,366 Fund balances - Beginning 340,324 340,324 340,324 - Fund balances - Ending (875,002)$ 118,342$ 250,708$ 132,366$ Budget/GAAP ReconciliationNet change in fund balance, budget basis (89,616)$ To adjust revenues for accruals 2,956 To adjust expenditures for accruals - Net change in fund balance, GAAP basis (86,660)$ 160 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - MVH Restricted For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 3,174,424$ 3,174,424$ 3,196,691$ 22,267$ Investment income 13,724 13,724 44,973 31,249 Total revenues 3,188,148 3,188,148 3,241,664 53,516 Expenditures:Current: Highways and streets: Personnel services 669,771 669,771 506,606 163,165 Supplies 1,379,901 1,443,305 1,374,806 68,499 Other services and charges 1,046,169 1,190,960 1,074,487 116,473 Capital outlay - - - - Total expenditures 3,095,841 3,304,036 2,955,899 348,137 Net change in fund balances 92,307 (115,888) 285,765 401,653 Fund balances - Beginning 1,186,999 1,186,999 1,186,999 - Fund balances - Ending 1,279,306$ 1,071,111$ 1,472,764$ 401,653$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 285,765$ To adjust revenues for accruals 8,246 To adjust expenditures for accruals (5,404) Net change in fund balance, GAAP basis 288,607$ 161 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Hazmat For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 5,000$ 5,000$ 24,983$ 19,983$ Investment income 585 585 1,478 893 Total revenues 5,585 5,585 26,461 20,876 Expenditures:Current: Public safety:Supplies - - - - Total expenditures - - - - Net change in fund balances 5,585 5,585 26,461 20,876 Fund balances - Beginning 42,431 42,431 42,431 - Fund balances - Ending 48,016$ 48,016$ 68,892$ 20,876$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 26,461$ To adjust revenues for accruals 318 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 26,779$ 162 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Indiana River Rescue For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 90,000$ 90,000$ 137,522$ 47,522$ Investment income 7,878 7,878 20,875 12,997 Other - - - - Total revenues 97,878 97,878 158,397 60,519 Expenditures: Current: Public safety: Personnel services - - - - Supplies 69,071 66,171 37,708 28,463 Other services and charges 23,000 24,000 23,255 745 Total expenditures 92,071 90,171 60,963 29,208 Net change in fund balances 5,807 7,707 97,434 89,727 Fund balances - Beginning 570,443 570,443 570,443 - Fund balances - Ending 576,250$ 578,150$ 667,877$ 89,727$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 97,434$ To adjust revenues for accruals 4,344 To adjust expenditures for accruals 1,070 Net change in fund balance, GAAP basis 102,848$ 163 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - COPS MORE Grant For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ -$ -$ Fines and forfeitures - - - - Investment income - - - - Other - - - - Total revenues - - - - Expenditures: Current: Public safety: Supplies - - - - Other services and charges - - - - Capital outlay - - - - Total expenditures - - - - Other Financing Sources (Uses): Transfers out - - - - Net change in fund balances - - - - Fund balances - Beginning 20,995 20,995 20,995 - Fund balances - Ending 20,995$ 20,995$ 20,995$ -$ Budget/GAAP Reconciliation Net change in fund balance, budget basis -$ To adjust revenues for accruals 234 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 234$ 164 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Federal Drug Enforcement For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 80,000$ 80,000$ 89,867$ 9,867$ Investment income 2,288 2,288 2,951 663 Total revenues 82,288 82,288 92,818 10,530 Expenditures:Current: Public safety: Supplies - - - - Other services and charges - - - - Capital outlay - - - - Total expenditures - - - - Other Financing Sources (Uses): Transfers in - - - - Net change in fund balances 82,288 82,288 92,818 10,530 Fund balances - Beginning 294,114 294,114 294,114 - Fund balances - Ending 376,402$ 376,402$ 386,932$ 10,530$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 92,818$ To adjust revenues for accruals (262) To adjust expenditures for accruals - Net change in fund balance, GAAP basis 92,556$ 165 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Urban Development Action Grant For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Investment income -$ -$ 2,800$ 2,800$ Other - - - - Total revenues - - 2,800 2,800 Expenditures:Current: Economic development:Other services and charges - - - - Total expenditures - - - - Net change in fund balances - - 2,800 2,800 Fund balances - Beginning 72,322 72,322 72,322 - Fund balances - Ending 72,322$ 72,322$ 75,122$ 2,800$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 2,800$ To adjust revenues for accruals 575 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 3,375$ 166 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Leaf Collection and Removal For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 456,126$ 456,126$ 455,341$ (785)$ Investment income 7,640 7,640 21,275 13,635 Total revenues 463,766 463,766 476,616 12,850 Expenditures:Current: Highways and streets: Personnel services 60,120 60,120 48,726 11,394 Supplies 7,605 7,605 5,477 2,128 Other services and charges 38,752 43,657 43,502 155 Total expenditures 106,477 111,382 97,705 13,677 Other Financing Sources (Uses): Transfers out (300,000) (300,000) (300,000) - Net change in fund balances 57,289 52,384 78,911 26,527 Fund balances - Beginning 545,941 545,941 545,941 - Fund balances - Ending 603,230$ 598,325$ 624,852$ 26,527$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 78,911$ To adjust revenues for accruals 4,193 To adjust expenditures for accruals (1,997) Net change in fund balance, GAAP basis 81,107$ 167 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - City Cemetery For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 623$ 623$ 1,277$ 654$ Total revenues 623 623 1,277 654 Net change in fund balances 623 623 1,277 654 Fund balances - Beginning 32,970 32,970 32,970 - Fund balances - Ending 33,593$ 33,593$ 34,247$ 654$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 1,277$ To adjust revenues for accruals 262 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 1,539$ 168 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Bowman Cemetery For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 9,800$ 9,800$ 20,081$ 10,281$ Total revenues 9,800 9,800 20,081 10,281 Net change in fund balances 9,800 9,800 20,081 10,281 Fund balances - Beginning 518,649 518,649 518,649 - Fund balances - Ending 528,449$ 528,449$ 538,730$ 10,281$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 20,081$ To adjust revenues for accruals 4,125 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 24,206$ 169 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Special Revenue Funds - Industrial Revolving Fund For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ -$ -$ Investment income 78,514 78,514 178,664 100,150 Other 172,000 172,000 607,853 435,853 Total revenues 250,514 250,514 786,517 536,003 Expenditures: Current: Economic development: Other services and charges 195,143 202,899 82,115 120,784 Total expenditures 195,143 202,899 82,115 120,784 Net change in fund balances 55,371 47,615 704,402 656,787 Fund balances - Beginning 4,853,400 4,853,400 4,853,400 - Fund balances - Ending 4,908,771$ 4,901,015$ 5,557,802$ 656,787$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 704,402$ To adjust revenues for accruals (12,838) To adjust expenditures for accruals 1,107 Net change in fund balance, GAAP basis 692,671$ 170 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2003 Redevelopment Bond - Airport Taxable For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income -$ -$ 43,769$ 43,769$ Total revenues - - 43,769 43,769 Other Financing Sources (Uses): Transfers out - - - - Net change in fund balances (1,040,462) (1,040,462) 43,769 1,084,231 Fund balances - Beginning 1,124,566 1,124,566 1,124,566 - Fund balances - Ending 84,104$ 84,104$ 1,168,335$ 1,084,231$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 43,769$ To adjust revenues for accruals 3,091 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 46,860$ 171 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2003 Redevelopment Bond - Palais Royale For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income -$ -$ 73,175$ 73,175$ Total revenues - - 73,175 73,175 Other Financing Sources (Uses): Transfers out - - - - Net change in fund balances (1,739,495) (1,739,495) 73,175 1,812,670 Fund balances - Beginning 1,880,105 1,880,105 1,880,105 - Fund balances - Ending 140,610$ 140,610$ 1,953,280$ 1,812,670$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 73,175$ To adjust revenues for accruals 5,168 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 78,343$ 172 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2015 Smart Streets Bond Debt Service For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 34,996$ 34,996$ 91$ (34,905)$ Total revenues 34,996 34,996 91 (34,905) Expenditures: Current:Debt service: Other services and charges 1,704,785 1,704,785 1,706,394 (1,609) Total expenditures 1,704,785 1,704,785 1,706,394 (1,609) Other Financing Sources (Uses):Transfers in 1,704,785 1,704,785 1,712,500 7,715 Net change in fund balances 34,996 34,996 6,197 (28,799) Fund balances - Beginning 1,757,416 1,757,416 1,757,416 - Fund balances - Ending 1,792,412$ 1,792,412$ 1,763,613$ (28,799)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 6,197$ To adjust revenues for accruals (7) To adjust expenditures for accruals - Net change in fund balance, GAAP basis 6,190$ 173 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2015 Park Bond Debt Service For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 11,751$ 11,751$ 5,695$ (6,056)$ Total revenues 11,751 11,751 5,695 (6,056) Expenditures: Current:Debt service: Other services and charges 368,381 368,381 368,381 - Total expenditures 368,381 368,381 368,381 - Other Financing Sources (Uses):Transfers in 368,381 368,381 398,819 30,438 Net change in fund balances 11,751 11,751 36,133 24,382 Fund balances - Beginning 594,295 594,295 594,295 - Fund balances - Ending 606,046$ 606,046$ 630,428$ 24,382$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 36,133$ To adjust revenues for accruals (684) To adjust expenditures for accruals - Net change in fund balance, GAAP basis 35,449$ 174 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2017 Park Bond Debt Service For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 1,125,000$ 1,125,000$ 1,133,782$ 8,782$ Intergovernmental 49,747 49,747 58,349 8,602 Investment income 3,748 3,748 2,341 (1,407) Total revenues 1,178,495 1,178,495 1,194,472 15,977 Expenditures: Current: Debt service: Other services and charges 1,177,990 1,177,990 1,177,990 - Total expenditures 1,177,990 1,177,990 1,177,990 - Net change in fund balances 505 505 16,482 15,977 Fund balances - Beginning 170,792 170,792 170,792 - Fund balances - Ending 171,297$ 171,297$ 187,274$ 15,977$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 16,482$ To adjust revenues for accruals 1,336 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 17,818$ 175 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 For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 73,411$ 73,411$ 188$ (73,223)$ Total revenues 73,411 73,411 188 (73,223) Expenditures: Current:Debt service: Other services and charges 1,941,375 1,941,375 1,941,375 - Total expenditures 1,941,375 1,941,375 1,941,375 - Other Financing Sources (Uses):Transfers in 1,941,375 1,941,375 1,941,375 - Net change in fund balances 73,411 73,411 188 (73,223) Fund balances - Beginning 3,669,174 3,669,174 3,669,174 - Fund balances - Ending 3,742,585$ 3,742,585$ 3,669,362$ (73,223)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 188$ To adjust revenues for accruals (17) To adjust expenditures for accruals - Net change in fund balance, GAAP basis 171$ 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 For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Expenditures: Current: Debt service: Other services and charges 341,331$ 341,331$ 341,331$ -$ Total expenditures 341,331 341,331 341,331 - Other Financing Sources (Uses): Transfers in 341,331 341,331 341,332 1 Net change in fund balances - - 1 1 Fund balances - Beginning 1 1 1 - Fund balances - Ending 1$ 1$ 2$ 1$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 1$ To adjust revenues for accruals - To adjust expenditures for accruals - Net change in fund balance, GAAP basis 1$ 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 For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 21,353$ 21,353$ 43,753$ 22,400$ Total revenues 21,353 21,353 43,753 22,400 Net change in fund balances 21,353 21,353 43,753 22,400 Fund balances - Beginning 1,130,047 1,130,047 1,130,047 - Fund balances - Ending 1,151,400$ 1,151,400$ 1,173,800$ 22,400$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 43,753$ To adjust revenues for accruals 8,985 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 52,738$ 178 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2019 South Shore Double Tracking Bond Debt Service For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 402$ 402$ 3$ (399)$ Total revenues 402 402 3 (399) Expenditures: Current:Debt service: Other services and charges 1,033,625 1,033,625 1,033,625 - Total expenditures 1,033,625 1,033,625 1,033,625 - Other Financing Sources (Uses):Transfers in 1,033,625 1,033,625 1,039,000 5,375 Net change in fund balances 402 402 5,378 4,976 Fund balances - Beginning 25,452 25,452 25,452 - Fund balances - Ending 25,854$ 25,854$ 30,830$ 4,976$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 5,378$ To adjust revenues for accruals - To adjust expenditures for accruals - Net change in fund balance, GAAP basis 5,378$ 179 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - 2020 TIF Library Bond Debt Service Reserve For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 6,539$ 6,539$ 16$ (6,523)$ Total revenues 6,539 6,539 16 (6,523) Other Financing Sources (Uses): Transfers out - - - - Net change in fund balances 6,539 6,539 16 (6,523) Fund balances - Beginning 326,969 326,969 326,969 - Fund balances - Ending 333,508$ 333,508$ 326,985$ (6,523)$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 16$ To adjust revenues for accruals - To adjust expenditures for accruals - Net change in fund balance, GAAP basis 16$ 180 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - Century Center Energy Conservation Debt Service For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 221,437$ 221,437$ 221,437$ -$ Investment income 3,739 3,739 5,377 1,638 Other 64,132 64,132 73,619 9,487 Total revenues 289,308 289,308 300,433 11,125 Expenditures: Current: Debt service: Other services and charges 393,388 393,388 393,388 - Total expenditures 393,388 393,388 393,388 - Other Financing Sources (Uses):Transfers in - - 212,073 212,073 Net change in fund balances (104,080) (104,080) 119,118 223,198 Fund balances - Beginning 152,936 152,936 152,936 - Fund balances - Ending 48,856$ 48,856$ 272,054$ 223,198$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 119,118$ To adjust revenues for accruals 989 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 120,107$ 181 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - Redevelopment Authority Debt Service For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 5,420$ 5,420$ 17,969$ 12,549$ Total revenues 5,420 5,420 17,969 12,549 Expenditures: Current:Debt service: Other services and charges 4,684,081 4,684,081 4,686,781 (2,700) Total expenditures 4,684,081 4,684,081 4,686,781 (2,700) Other Financing Sources (Uses):Transfers in 4,684,081 9,515,081 9,388,500 (126,581) Net change in fund balances 5,420 4,836,420 4,719,688 (116,732) Fund balances - Beginning 5,167,209 5,167,209 5,167,209 - Fund balances - Ending 5,172,629$ 10,003,629$ 9,886,897$ (116,732)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 4,719,688$ To adjust revenues for accruals (1,690) To adjust expenditures for accruals - Net change in fund balance, GAAP basis 4,717,998$ 182 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Debt Service Funds - South Bend Building Corporation Debt Service For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 20,165$ 20,165$ 2,641$ (17,524)$ Total revenues 20,165 20,165 2,641 (17,524) Expenditures: Current:Debt service: Other services and charges 1,423,193 1,423,193 1,424,543 (1,350) Total expenditures 1,423,193 1,423,193 1,424,543 (1,350) Other Financing Sources (Uses):Debt proceeds - - - - Transfers in 1,423,193 1,423,193 1,440,000 16,807 Transfers out - - - - Net change in fund balances 20,165 20,165 18,098 (2,067) Fund balances - Beginning 249,384 249,384 249,384 - Fund balances - Ending 269,549$ 269,549$ 267,482$ (2,067)$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 18,098$ To adjust revenues for accruals (203) To adjust expenditures for accruals - Net change in fund balance, GAAP basis 17,895$ 183 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Fire Department Capital For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ -$ -$ Charges for services 2,066,825 2,066,825 2,071,884 5,059 Fines and forfeitures - - - - Investment income - - 49,098 49,098 Other - - 9,854 9,854 Total revenues 2,066,825 2,066,825 2,130,836 64,011 Expenditures: Current: Public safety: Other services and charges 1,499,349 1,213,347 1,213,334 13 Capital outlay 4,676,808 1,924,337 1,662,885 261,452 Total expenditures 6,176,157 3,137,684 2,876,219 261,465 Other Financing Sources (Uses): Debt proceeds - - 2,745,000 2,745,000 Transfers out - - (746,961) (746,961) Net change in fund balances (4,109,332) (1,070,859) 1,275,196 2,346,055 Fund balances - Beginning 2,843,652 2,843,652 2,843,652 - Fund balances - Ending (1,265,680)$ 1,772,793$ 4,118,848$ 2,346,055$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 1,275,196$ To adjust revenues for accruals (1,452) To adjust expenditures for accruals (578,169) Net change in fund balance, GAAP basis 695,575$ 184 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Coveleski Stadium Capital For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 25,000$ 25,000$ 23,212$ (1,788)$ Investment income - - 24 24 Total revenues 25,000 25,000 23,236 (1,764) Expenditures:Current: Culture and recreation:Other services and charges 40,000 40,000 21,613 18,387 Total expenditures 40,000 40,000 21,613 18,387 Net change in fund balances (15,000) (15,000) 20,623 35,623 Fund balances - Beginning 212 212 212 - Fund balances - Ending (14,788)$ (14,788)$ 20,835$ 35,623$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 20,623$ To adjust revenues for accruals 7 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 20,630$ 185 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Cumulative Capital Development For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 610,828$ 610,828$ 664,179$ 53,351$ Intergovernmental 45,458 45,458 41,911 (3,547) Investment income 2,724 2,724 7,224 4,500 Total revenues 659,010 659,010 713,314 54,304 Expenditures: Current: General government: Other services and charges 48,541 48,541 48,541 - Capital outlay - - - - Total expenditures 48,541 48,541 48,541 - Net change in fund balances 110,469 110,469 164,773 54,304 Fund balances - Beginning 366,351 366,351 366,351 - Fund balances - Ending 476,820$ 476,820$ 531,124$ 54,304$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 164,773$ To adjust revenues for accruals 2,667 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 167,440$ 186 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Cumulative Capital Improvement For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 186,102$ 186,102$ 167,350$ (18,752)$ Investment income 2,686 2,686 10,797 8,111 Other - - - - Total revenues 188,788 188,788 178,147 (10,641) Other Financing Sources (Uses): Transfers out (75,000) (75,000) (75,000) - Net change in fund balances 113,788 113,788 103,147 (10,641) Fund balances - Beginning 384,816 384,816 384,816 - Fund balances - Ending 498,604$ 498,604$ 487,963$ (10,641)$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 103,147$ To adjust revenues for accruals 3,138 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 106,285$ 187 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Major Moves For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ 9,705$ 9,705$ Investment income 1,500 1,500 60,055 58,555 Other - - 138,514 138,514 Total revenues 1,500 1,500 208,274 206,774 Expenditures: Current: Highways and streets: Supplies 350,002 350,002 350,000 2 Other services and charges 596,861 449,011 217,979 231,032 Capital outlay 759,971 544,085 316,921 227,164 Total expenditures 1,706,834 1,343,098 884,900 458,198 Net change in fund balances (1,705,334) (1,341,598) (676,626) 664,972 Fund balances - Beginning 930,874 930,874 930,874 - Fund balances - Ending (774,460)$ (410,724)$ 254,248$ 664,972$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (676,626)$ To adjust revenues for accruals (117,000) To adjust expenditures for accruals (58,654) Net change in fund balance, GAAP basis (852,280)$ 188 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Professional Sports Convention Development Area For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Intergovernmental 5,000,000$ 5,000,000$ 6,363,342$ 1,363,342$ Investment income - - 125,958 125,958 Other - - - - Total revenues 5,000,000 5,000,000 6,489,300 1,489,300 Expenditures: Current: Highways and streets: Supplies - - - - Other services and charges - - - - Capital outlay 248,154 147,772 147,772 - Total expenditures 248,154 147,772 147,772 - Net change in fund balances 4,751,846 832,228 2,321,528 1,489,300 Fund balances - Beginning 2,588,794 2,588,794 2,588,794 - Fund balances - Ending 7,340,640$ 3,421,022$ 4,910,322$ 1,489,300$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 2,321,528$ To adjust revenues for accruals 398,773 To adjust expenditures for accruals (69,360) Net change in fund balance, GAAP basis 2,650,941$ 189 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Morris Performing Arts Center Capital For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services -$ -$ -$ -$ Investment income - - 258 258 Total revenues - - 7,700,258 7,700,258 Expenditures:Current: Culture and recreation: Supplies - - - - Other services and charges - - - - Capital outlay 484,305 1,495,666 1,493,326 2,340 Total expenditures 484,305 1,495,666 1,493,326 2,340 Other Financing Sources (Uses): Transfers in - - - - Net change in fund balances (484,305) (1,495,666) 6,206,932 7,702,598 Fund balances - Beginning 6,037,555 6,037,555 6,037,555 - Fund balances - Ending 5,553,250$ 4,541,889$ 12,244,487$ 7,702,598$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 6,206,932$ To adjust revenues for accruals (27) To adjust expenditures for accruals (1,037,231) Net change in fund balance, GAAP basis 5,169,674$ 190 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Redevelopment General For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - local income tax 100$ 100$ 21$ (79)$ Intergovernmental 763,500 763,500 750,388 (13,112) Investment income 76,586 76,586 141,217 64,631 Other 1,000,000 1,000,000 1,597,977 597,977 Total revenues 1,840,186 1,840,186 2,489,603 649,417 Expenditures: Current: Economic development:Other services and charges 671,458 859,419 724,465 134,954 Total expenditures 671,458 1,683,457 1,548,503 134,954 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - (763,500) (763,500) Net change in fund balances 1,168,728 156,729 177,600 20,871 Fund balances - Beginning 3,464,016 3,464,016 3,464,016 - Fund balances - Ending 4,632,744$ 3,620,745$ 3,641,616$ 20,871$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 177,600$ To adjust revenues for accruals 26,801 To adjust expenditures for accruals (1,392) Net change in fund balance, GAAP basis 203,009$ 191 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - TIF - West Washington For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 289,606$ 610,117$ 610,117$ -$ Investment income 30,516 30,516 61,654 31,138 Total revenues 320,122 640,633 671,771 31,138 Expenditures:Current: Economic development: Other services and charges 1,000,000 1,140,000 1,140,000 - Capital outlay 68,357 68,357 68,357 - Total expenditures 1,068,357 1,208,357 1,208,357 - Net change in fund balances (748,235) (567,724) (536,586) 31,138 Fund balances - Beginning 1,354,237 1,354,237 1,354,237 - Fund balances - Ending 606,002$ 786,513$ 817,651$ 31,138$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (536,586)$ To adjust revenues for accruals 12,195 To adjust expenditures for accruals 68,357 Net change in fund balance, GAAP basis (456,034)$ 192 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - TIF - River East Development For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 3,899,348$ 8,221,832$ 8,221,833$ 1$ Investment income 138,858 138,858 680,566 541,708 Other - 2,398,600 2,406,481 7,881 Total revenues 4,038,206 10,759,290 11,308,880 549,590 Expenditures: Current: Economic development: Other services and charges 972,464 1,250,828 1,012,810 238,018 Capital outlay 5,683,334 5,734,658 3,379,725 2,354,933 Total expenditures 6,655,798 6,985,486 4,392,535 2,592,951 Other Financing Sources (Uses): Transfers in - - - - Net change in fund balances (2,617,592) 3,773,804 6,132,145 2,358,341 Fund balances - Beginning 21,819,370 21,819,370 21,819,370 - Fund balances - Ending 19,201,778$ 25,593,174$ 27,951,515$ 2,358,341$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 6,132,145$ To adjust revenues for accruals 157,695 To adjust expenditures for accruals (1,299,204) Net change in fund balance, GAAP basis 4,990,636$ 193 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - TIF - Southside Development Area No. 1 For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 1,852,064$ 3,445,271$ 3,445,271$ -$ Investment income 100,986 100,986 381,990 281,004 Total revenues 1,953,050 3,546,257 3,827,261 281,004 Expenditures:Current: Economic development: Other services and charges 265,982 301,787 277,394 24,393 Capital outlay 7,793,180 8,199,060 7,756,642 442,418 Total expenditures 8,059,162 8,500,847 8,034,036 466,811 Net change in fund balances (6,106,112) (4,954,590) (4,206,775) 747,815 Fund balances - Beginning 8,669,255 8,669,255 8,669,255 - Fund balances - Ending 2,563,143$ 3,714,665$ 4,462,480$ 747,815$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (4,206,775)$ To adjust revenues for accruals 80,064 To adjust expenditures for accruals 497,004 Net change in fund balance, GAAP basis (3,629,707)$ 194 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - TIF - Douglas Road For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 169,320$ 169,320$ 346,093$ 176,773$ Investment income 10,824 10,824 30,035 19,211 Total revenues 180,144 180,144 376,128 195,984 Expenditures:Current: Economic development:Other services and charges - - - - Total expenditures - - - - Other Financing Sources (Uses): Transfers out - - - - Net change in fund balances 180,144 180,144 376,128 195,984 Fund balances - Beginning 986,096 986,096 986,096 - Fund balances - Ending 1,166,240$ 1,166,240$ 1,362,224$ 195,984$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 376,128$ To adjust revenues for accruals 7,023 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 383,151$ 195 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - TIF - River East Residential For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Taxes - Property 6,097,948$ 7,798,613$ 7,798,613$ -$ Investment income 117,973 117,973 327,534 209,561 Total revenues 6,215,921 7,916,586 8,126,147 209,561 Expenditures:Current: Economic development:Other services and charges 183,514 183,514 150,754 32,760 Total expenditures 2,745,382 2,814,931 2,577,949 236,982 Other Financing Sources (Uses): Transfers out - - (4,414,875) (4,414,875) Net change in fund balances 3,470,539 5,101,655 1,133,323 (3,968,332) Fund balances - Beginning 10,189,053 10,189,053 10,189,053 - Fund balances - Ending 13,659,592$ 15,290,708$ 11,322,376$ (3,968,332)$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 1,133,323$ To adjust revenues for accruals 79,287 To adjust expenditures for accruals 270,324 Net change in fund balance, GAAP basis 1,482,934$ 196 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Certified Technology Park For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 230$ 230$ 471$ 241$ Total revenues 230 230 471 241 Net change in fund balances 230 230 471 241 Fund balances - Beginning 12,159 12,159 12,159 - Fund balances - Ending 12,389$ 12,389$ 12,630$ 241$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 471$ To adjust revenues for accruals 96 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 567$ 197 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Project Funds - Palais Royale Historical Preservation For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues: Charges for services 14,500$ 14,500$ 18,482$ 3,982$ Investment income 1,729 1,729 5,587 3,858 Total revenues 16,229 16,229 24,069 7,840 Expenditures:Current: Culture and recreation:Other services and charges - - - - Total expenditures - - - - Net change in fund balances 16,229 16,229 24,069 7,840 Fund balances - Beginning 150,412 150,412 150,412 - Fund balances - Ending 166,641$ 166,641$ 174,481$ 7,840$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 24,069$ To adjust revenues for accruals 1,159 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 25,228$ 198 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - Airport Urban Enterprise Zone For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income 8,296$ 8,296$ 17,336$ 9,040$ Total revenues 8,296 8,296 17,336 9,040 Net change in fund balances 8,296 8,296 17,336 9,040 Fund balances - Beginning 447,755 447,755 447,755 - Fund balances - Ending 456,051$ 456,051$ 465,091$ 9,040$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 17,336$ To adjust revenues for accruals 3,559 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 20,895$ 199 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2023 RDA Lease-Rental Bond Capital For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income -$ -$ 908,612$ 908,612$ Other - - 120,181 120,181 Total revenues - - 1,028,793 1,028,793 Expenditures: Current: Highways and streets: Other services and charges 3,284,341 3,709,756 938,215 2,771,541 Capital outlay 16,119,956 14,604,014 10,844,047 3,759,967 Total expenditures 19,404,297 18,313,770 11,782,262 6,531,508 Other Financing Sources (Uses): Debt proceeds - - - - Proceeds from sale of capital assets - - - - Transfers in - - - - Transfers out - - - - Net change in fund balances (19,404,297) (18,313,770) (10,753,469) 7,560,301 Fund balances - Beginning 16,919,563 16,919,563 16,919,563 - Fund balances - Ending (2,484,734)$ (1,394,207)$ 6,166,094$ 7,560,301$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (10,753,469)$ To adjust revenues for accruals - To adjust expenditures for accruals 773,368 Net change in fund balance, GAAP basis (9,980,101)$ 200 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2024B RDA Bond - Madison Lifestyle District For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income -$ -$ 31,843$ 31,843$ Other - - - - Total revenues - - 31,843 31,843 Expenditures: Current: Highways and streets: Other services and charges - 475,283 264,938 210,345 Capital outlay - 144,205 71,735 72,470 Total expenditures - 619,488 336,673 282,815 Other Financing Sources (Uses): Debt proceeds - 24,480,000 24,480,000 - Proceeds from sale of capital assets - -- - Transfers in - -- - Transfers out - (6,741,141) (6,741,141) - Net change in fund balances - 17,119,371 17,434,029 314,658 Fund balances - Beginning 17,448,598 17,448,598 17,448,598 - Fund balances - Ending 17,448,598$ 34,567,969$ 34,882,627$ 314,658$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 17,434,029$ To adjust revenues for accruals - To adjust expenditures for accruals - Net change in fund balance, GAAP basis 17,434,029$ 201 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2024A RDA Bond - Four Winds Field For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income -$ -$ 648,774$ 648,774$ Other - - - - Total revenues - - 648,774 648,774 Expenditures: Current: Highways and streets: Other services and charges - 552,707 552,707 - Capital outlay - 29,977,968 1,474,628 28,503,340 Total expenditures - 30,530,675 2,027,335 28,503,340 Other Financing Sources (Uses): Debt proceeds - 45,566,002 45,566,002 - Proceeds from sale of capital assets - - - - Transfers in - - - - Transfers out - - - - Net change in fund balances - 15,035,327 44,187,441 29,152,114 Fund balances - Beginning 44,187,444 44,187,444 44,187,444 - Fund balances - Ending 44,187,444$ 59,222,771$ 88,374,885$ 29,152,114$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 44,187,441$ To adjust revenues for accruals - To adjust expenditures for accruals (2,400,282) Net change in fund balance, GAAP basis 41,787,159$ 202 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2017 Park Bond Capital For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income -$ -$ 41,824$ 41,824$ Total revenues - - 41,824 41,824 Expenditures: Current:Culture and recreation: Other services and charges - - - - Capital outlay 1,245,965 1,066,680 558,336 508,344 Total expenditures 1,245,965 1,066,680 558,336 508,344 Net change in fund balances (1,245,965) (1,066,680) (516,512) 550,168 Fund balances - Beginning 859,250 859,250 859,250 - Fund balances - Ending (386,715)$ (207,430)$ 342,738$ 550,168$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (516,512)$ To adjust revenues for accruals 8,163 To adjust expenditures for accruals 267,485 Net change in fund balance, GAAP basis (240,864)$ 203 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2017 Eddy St Commons Bond Capital For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income -$ -$ 1$ 1$ Total revenues - - 1 1 Expenditures: Current:Culture and recreation: Other services and charges - - - - Capital outlay - - - - Total expenditures - - - - Net change in fund balances - - 1 1 Fund balances - Beginning 25,766 25,766 25,766 - Fund balances - Ending 25,766$ 25,766$ 25,767$ 1$ Budget/GAAP Reconciliation Net change in fund balance, budget basis 1$ To adjust revenues for accruals - To adjust expenditures for accruals - Net change in fund balance, GAAP basis 1$ Change in Fund Balance GAAP basis 1$ 204 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2018 Fire Station #9 Bond Capital For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income -$ -$ 13,352$ 13,352$ Total revenues - - 13,352 13,352 Net change in fund balances - - 13,352 13,352 Fund balances - Beginning 344,867 344,867 344,867 - Fund balances - Ending 344,867$ 344,867$ 358,219$ 13,352$ Budget/GAAP ReconciliationNet change in fund balance, budget basis 13,352$ To adjust revenues for accruals 2,742 To adjust expenditures for accruals - Net change in fund balance, GAAP basis 16,094$ 205 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2018 TIF Park Bond Capital For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income -$ -$ 43,300$ 43,300$ Total revenues - - 43,300 43,300 Expenditures: Current:Culture and recreation: Other services and charges - - - - Capital outlay 2,315,432 2,238,756 2,238,756 - Total expenditures 2,315,432 2,238,756 2,238,756 - Net change in fund balances (2,315,432) (2,238,756) (2,195,456) 43,300 Fund balances - Beginning 173,726 173,726 173,726 - Fund balances - Ending (2,141,706)$ (2,065,030)$ (2,021,730)$ 43,300$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (2,195,456)$ To adjust revenues for accruals 6,715 To adjust expenditures for accruals 919,772 Net change in fund balance, GAAP basis (1,268,969)$ 206 City of South Bend, Indiana Other Supplemental Information Budgetary Comparison Schedule - Nonmajor Governmental Funds (Continued) Capital Projects Funds - 2021 Infrastructure Bond Capital For fiscal year ended December 31, 2024 Variance Actual With Final Budgetary Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) Revenues:Investment income -$ -$ 27,842$ 27,842$ Total revenues - - 27,842 27,842 Expenditures: Current:Highways and streets: Capital outlay 323,346 277,014 276,767 247 Total expenditures 323,346 277,014 276,767 247 Net change in fund balances (323,346) (277,014) (248,925) 28,089 Fund balances - Beginning 677,408 677,408 677,408 - Fund balances - Ending 354,062$ 400,394$ 428,483$ 28,089$ Budget/GAAP Reconciliation Net change in fund balance, budget basis (248,925)$ To adjust revenues for accruals 6,051 To adjust expenditures for accruals 204,135 Net change in fund balance, GAAP basis (38,739)$ 207 City of South Bend, Indiana Other Supplemental Information Nonmajor Enterprise Funds Fund Descriptions NONMAJOR ENTERPRISE FUNDS Century Center To account for the operations of the City’s convention center. Consolidated Building To account for the operation of the consolidated St. Joseph County/ South Bend Building Department. 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 Morris Performing Arts Center To account for the operation of the Morris Performing Arts Center. Financed by ticket sales (for self-promoted events) and rent from promoters. 202 City of South Bend, Indiana Combining Statement of Net Position Nonmajor Enterprise Funds December 31, 2024 MorrisConsolidatedPerformingCentury Center Building Parking Garage Solid Waste Arts Center Total Assets Current assets:Cash and cash equivalents 974,123$ 1,439,618$ 163,851$ (44,617)$ 56,651$ 2,589,626$ Investments - 1,825,632 207,979 304,623 70,915 2,409,149 Receivables: Accounts 299,116 295 24,300 1,052,993 36,883 1,413,587 Allowance for doubtful accounts - - - (24,999) - (24,999) Interest (1) (1) (1) 108 1 106 Taxes 1,912,500 - - - - 1,912,500 Due from other funds - - - 2,227 - 2,227 Inventory 69,993 - - - - 69,993 Prepaid expenses 2,711 - - - - 2,711 Total current assets 3,258,442 3,265,544 396,129 1,290,335 164,450 8,374,900 Noncurrent assets: Restricted assets 1,501,623 3,116 (1,523) 3,069,734 1,652 4,574,602 Capital assets:Assets not subject to depreciation 798,204 - 1,132,020 - - 1,930,224 Assets subject to depreciation 11,279,295 11,545 3,960,278 4,099,051 - 19,350,169 Total noncurrent assets 13,579,122 14,661 5,090,775 7,168,785 1,652 25,854,995 Total assets 16,837,564 3,280,205 5,486,904 8,459,120 166,102 34,229,895 Deferred outflows of resources Deferred outflows related to pensions 76,922 194,058 - 274,083 - 545,063 Deferred outflows related to OPEB 28,882 72,864 - 102,911 - 204,657 Total deferred outflows of resources 105,804 266,922 - 376,994 - 749,720 Liabilities Current liabilities: Accounts payable 95,588 681 77,626 265,067 40,068 479,030 Due to other funds - - 9,054 - - 9,054 Performance deposits payable - 7,000 - - - 7,000 Accrued liabilities and other: Accrued payroll payable 57,384 56,400 9,829 95,756 29,889 249,258 Accrued interest payable - - - 50,027 - 50,027 Taxes payable 10,435 3,116 - 5,291 (20,246) (1,404) Other current payables (65,256) - 150,000 - - 84,744 Customer deposits payable 168,751 - - - - 168,751 Unearned revenue 40,000 - - - - 40,000 Compensated absences 15,104 16,104 - 9,929 19,749 60,886 Financed purchase agreements - - - 1,258,294 - 1,258,294 Total current liabilities 322,006 83,301 246,509 1,684,364 69,460 2,405,640 Noncurrent liabilities: Financed purchase agreements - - - 2,870,923 - 2,870,923 Net pension liability 226,169 570,576 - 805,868 - 1,602,613 Total OPEB liability 115,605 291,646 - 411,914 - 819,165 Total noncurrent liabilities 341,774 862,222 - 4,088,705 - 5,292,701 Total liabilities 663,780 945,523 246,509 5,773,069 69,460 7,698,341 Deferred inflows of resources Deferred inflows related to pensions 8,123 20,493 - 28,944 - 57,560 Deferred inflows related to OPEB 62,259 157,066 - 221,836 - 441,161 Total deferred inflows of resources 70,382 177,559 - 250,780 - 498,721 Net position Net investment in capital assets 12,077,499 11,545 5,092,298 2,749,194 - 19,930,536 Restricted: Capital outlay 1,501,623 3,116 - 290,374 1,652 1,796,765 Unrestricted 2,630,084 2,409,384 148,097 (227,303) 94,990 5,055,252 Total net position 16,209,206$ 2,424,045$ 5,240,395$ 2,812,265$ 96,642$ 26,782,553$ 208 City of South Bend, Indiana Combining Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds For the Year Ended December 31, 2024 Morris Consolidated PerformingCentury Center Building Parking Garage Solid Waste Arts Center Total Operating revenues Convention fees 3,063,607$ -$ -$ -$ 860,487$ 3,924,094$ Licenses and permits - 3,855,864 - - - 3,855,864 Parking fees 121,084 - 1,517,589 - - 1,638,673 Solid waste fees - - - 8,183,773 - 8,183,773 Charges to other funds 71,905 - - - - 71,905 Other 7,441 17,870 9,841 1,071 174,497 210,720 Total operating revenues 3,264,037 3,873,734 1,527,430 8,184,844 1,034,984 17,885,029 Operating expenses Personnel services 585,533 1,335,413 1,930 1,979,940 689,901 4,592,717 Materials and supplies 1,032,161 80,224 59,982 (487,091) 49,529 734,805 Contractual services 1,288,861 1,192,529 700,453 3,206,865 501,141 6,889,849 Insurance claims and premiums - - 18,783 - - 18,783 General and administration 1,723,080 317,710 842,777 1,476,423 296,268 4,656,258 Depreciation 1,244,885 9,896 290,933 503,163 - 2,048,877 Total operating expenses 5,874,520 2,935,772 1,914,858 6,679,300 1,536,839 18,941,289 Operating income (loss)(2,610,483) 937,962 (387,428) 1,505,544 (501,855) (1,056,260) Nonoperating revenues (expenses) Investment income 49,311 140,397 22,105 71,937 19,754 303,504 Hotel/motel tax revenues 2,683,000 - - - - 2,683,000 Interest expense - - - (140,621) - (140,621) (Loss) gain on sale of assets - 7,636 - 2,668 - 10,304 Total nonoperating revenues (expenses)2,732,311 148,033 22,105 (66,016) 19,754 2,856,187 Income (loss) - Before contributions and transfers 121,828 1,085,995 (365,323) 1,439,528 (482,101) 1,799,927 Capital contributions - Other capital contributions - - - - - - Transfers in - - - 933,000 - 933,000 Transfers out (237,274) - - (933,000) - (1,170,274) Change in net position (115,446) 1,085,995 (365,323) 1,439,528 (482,101) 1,562,653 Net position - Beginning of year 16,324,652 1,338,050 5,605,718 1,372,737 578,743 25,219,900 Net position - End of year 16,209,206$ 2,424,045$ 5,240,395$ 2,812,265$ 96,642$ 26,782,553$ 209 City of South Bend, Indiana Nonmajor Enterprise FundsCombining Statement of Cash Flows For the Year Ended December 31, 2024 MorrisConsolidatedParkingPerformingCentury Center Building Garage Solid Waste Arts Center Total Cash flows from operating activities Receipts from customers and users 3,331,968$ 3,872,998$ 1,400,118$ 8,193,131$ 998,100$ 17,796,315$ Receipts from interfund services andreimbursements - - - (323) - (323) Payments to suppliers (2,114,529) (1,276,293) (392,189) (3,359,437) (561,513) (7,703,961) Payments to employees (2,025,840) (1,246,238) (888,872) (1,897,537) (680,359) (6,738,846) Internal activity - payments to other funds (266,332) (317,710) (96,466) (1,476,423) (296,208) (2,453,139) Internal activity - payments from other funds 71,905 - - - - 71,905 Net cash provided by (used in) operating activities (1,002,828) 1,032,757 22,591 1,459,411 (539,980) 971,951 Cash flows from noncapital financing activities Transfers from other funds - - - 933,000 - 933,000 Transfers to other funds (212,073) - - (933,000) - (1,145,073) Hotel/motel tax 2,683,000 - - - - 2,683,000 Net cash (used in) provided by noncapital financing activities 2,470,927 - - - - 2,470,927 Cash flows from capital and related financing activities Proceeds from capital debt issuedfor future capital purchase - - - 2,200,000 - 2,200,000 Proceeds from sales of capital assets - 7,638 - 2,668 - 10,306 Purchase of capital assets (1,331,059) - (227,112) (2,764,102) - (4,322,273) Principal paid on capital debt - - - (1,054,761) - (1,054,761) Interest paid on capital debt - - - (92,244) - (92,244) Debt service charge - - - (271) - (271) Net cash (used in) provided by capital and related financing activit (1,331,059) 7,638 (227,112) (1,708,710) - (3,259,243) Cash flows from investing activitiesInterest received on investments 53,757 146,870 23,839 75,212 20,900 320,578 Proceeds from sale and maturities of investment securities - (706,396) 89,034 106,702 275,889 (234,771) Net cash provided by (used in) investing activities 53,757 (559,526) 112,873 181,914 296,789 85,807 Net (decrease) increase in cash and cash equivalents 190,797 480,869 (91,648) (67,385) (243,191) 269,442 Cash and cash equivalents - beginning of year 2,284,949 961,865 253,976 3,092,502 301,494 6,894,786 Cash and cash equivalents - end of year 2,475,746$ 1,442,734$ 162,328$ 3,025,117$ 58,303$ 7,164,228$ Classification of cash and cash equivalentsCash and investments 974,123$ 3,265,250$ 371,830$ 260,006$ 127,566$ 4,998,775$ Restricted cash and investments 1,501,623 3,116 (1,523) 3,069,734 1,652 4,574,602 Less amounts classified as investments - (1,825,632) (207,979) (304,623) (70,915) (2,409,149) Total cash and cash equivalents 2,475,746$ 1,442,734$ 162,328$ 3,025,117$ 58,303$ 7,164,228$ Reconciliation of operating income (loss)to net cash from operating activities Operating income (loss)(2,610,483) 937,962 (387,428) 1,505,544 (501,855) (1,056,260) Adjustments to reconcile operating income (loss)to net cash from operating activities:Depreciation and amortization 1,244,885 9,896 290,933 503,163 - 2,048,877 Changes in assets and liabilities:Receivables 69,960 - (24,300) (22,448) (36,883) (13,671) Due from other funds - - - (323) - (323) Inventory 90,306 - - - - 90,306 Prepaid expenses and other assets 22,003 - - - - 22,003 Increase (decrease) in liabilitiesAccounts payable (27,931) (3,534) 11,846 (639,758) (468) (659,845) Taxes payable (4,907) (5) - 98 (10,377) (15,191) Due to other funds 67 - (18,460) - 60 (18,333) Accrued payroll payable 13,128 20,656 - 36,282 8,737 78,803 Compensated absences payable 3,246 414 - 676 806 5,142 Customer deposits 55,146 - - - - 55,146 Other current payables 49,390 - 150,000 - - 199,390 Increase (decrease) in deferred outflows of resourcesPension items (2,308) 13,192 - 24,205 - 35,089 OPEB items 1,690 12,053 - 19,307 - 33,050 Increase (decrease) in net pension liabilities 44,623 66,311 - 80,098 - 191,032 Increase (decrease) in OPEB liability 47 (29,331) - (50,055) - (79,339) Increase (decrease) in deferred inflows of resourcesPension items (1,360) (5,846) - (8,965) - (16,171) OPEB items 9,670 10,989 - 11,587 - 32,246 Total adjustments 1,607,655 94,795 410,019 (46,133) (38,125) 2,028,211 Net cash provided by (used in) operating activities (1,002,828)$ 1,032,757$ 22,591$ 1,459,411$ (539,980)$ 971,951$ Noncash investing, capital, and financing activities Capital assets acquired through lease -$ -$ -$ -$ -$ -$ Capital assets disposed (at cost)- - - - - - Work in progress completed transferredto capital assets - - - - - - Accumulated depreciation on disposalsof capital assets - - - - - - 210 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. 206 City of South Bend, Indiana Combining Statement of Net PositionInternal Service Funds December 31, 2024 Liability Innovation &Insurance Self-Funded Technology UnemploymentPremiumEmployeeCentralPolice Take 311 Call Compensation ParentalReserveBenefitsServicesHome Vehicle Center Insurance Leave Total AssetsCurrent assets:Cash and cash equivalents 3,393,606$ 4,370,049$ 220,517$ 417,242$ 2,830,690$ 174$ 389,354$ 11,621,632$ Investments 4,159,694 5,542,583 - 529,191 3,598,197 220 493,822 14,323,707 Receivables:Accounts - 93,730 49,588 - - - - 143,318 Interest - (1) 2 - 1 - - 2 Inventory - - 1,718,099 - - - - 1,718,099 Prepaid expenses 455,505 7,320 1,500 - 1,045,947 - - 1,510,272 Total current assets 8,008,805 10,013,681 1,989,706 946,433 7,474,835 394 883,176 29,317,030 Noncurrent assets:Restricted assets - - 9,052 - 12,137 - - 21,189 Capital assets:Assets not subject to depreciation - - - - - - - - Assets subject to depreciation 2,142,554 - 652,704 - - - - 2,795,258 Total noncurrent assets 2,142,554 - 661,756 - 12,137 - - 2,816,447 Total assets 10,151,359 10,013,681 2,651,462 946,433 7,486,972 394 883,176 32,133,477 Deferred outflows of resources Deferred outflows related to pensions - - 472,578 - 695,916 - - 1,168,494 Deferred outflows related to OPEB - - 177,441 - 261,299 - - 438,740 Total deferred outflows of resources - - 650,019 - 957,215 - - 1,607,234 Liabilities Current liabilities:Accounts payable 384,552 288,037 424,421 - 579,451 - - 1,676,461 Due to other funds - - 780 - -- - 780 Accrued liabilities and other:Accrued payroll payable - - 163,876 - 219,704 - - 383,580 Accrued interest payable - - - - 22,328 - - 22,328 Taxes payable - - 9,052 - 12,137 - - 21,189 Other current payables - - - - - - - - Compensated absences - - 41,279 - 104,249 - - 145,528 Claims payable 8,003,982 902,825 - - - - - 8,906,807 Financed purchase agreements - - 4,150 - 719,558 - - 723,708 Total current liabilities 8,388,534 1,190,862 643,558 - 1,657,427 - - 11,880,381 Noncurrent liabilities:Financed purchase agreements - - - - 420,357 - - 420,357 Net pension liability - - 1,389,491 - 2,046,159 - - 3,435,650 Total OPEB liability - - 710,229 - 1,045,880 - - 1,756,109 Total noncurrent liabilities - - 2,099,720 - 3,512,396 - - 5,612,116 Total liabilities 8,388,534 1,190,862 2,743,278 - 5,169,823 - - 17,492,497 Deferred inflows of resources Deferred inflows related to pensions - - 49,905 - 73,490 - - 123,395 Deferred inflows related to OPEB - - 382,493 - 563,258 - - 945,751 Total deferred inflows of resources - - 432,398 - 636,748 - - 1,069,146 Net position Net investment in capital assets 2,142,554 - 648,554 - - - - 2,791,108 Unrestricted (379,729) 8,822,819 (522,749) 946,433 2,637,616 394 883,176 12,387,960 Total net position 1,762,825$ 8,822,819$ 125,805$ 946,433$ 2,637,616$ 394$ 883,176$ 15,179,068$ 211 City of South Bend, Indiana Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds For the Year Ended December 31, 2024 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 Operating revenues Employee/employer contributions 3,639,998$ 17,565,024$ -$ 72,261$ 13,100,296$ 8,566$ 299,280$ 34,685,425$ Charges for sales and services - - 10,062,109 - - - - 10,062,109 Charges to other funds - - 160,000 - - - - 160,000 Other 85,678 1,031,006 108,180 - 137,344 - - 1,362,208 Total operating revenues 3,725,676 18,596,030 10,330,289 72,261 13,237,640 8,566 299,280 46,269,742 Operating expenses Personnel services 33,815 122,589 3,671,822 - 5,424,084 - 78,021 9,330,331 Materials and supplies - 107,661 6,639,961 - 1,100,702 - - 7,848,324 Contractual services 3,724,351 1,661,919 211,980 - 6,624,812 - - 12,223,062 Insurance claims and premiums 2,568,136 16,839,804 - - - 72,369 - 19,480,309 General and administration - - 776,640 - 818 - - 777,458 Depreciation - - 113,880 - - - - 113,880 Total operating expenses 6,326,302 18,731,973 11,414,283 - 13,150,416 72,369 78,021 49,773,364 Operating income (loss)(2,600,626) (135,943) (1,083,994) 72,261 87,224 (63,803) 221,259 (3,503,622) Nonoperating revenues (expenses) Investment income 326,554 477,483 - 42,599 268,797 845 36,522 1,152,800 Interest expense - - (48) - (84,268) - - (84,316) (Loss) gain on sale of assets - - 2,484 - - - - 2,484 Total nonoperating revenues (expenses)326,554 477,483 2,436 42,599 184,529 845 36,522 1,070,968 Income (loss) - Before contributions and transfers (2,274,072) 341,540 (1,081,558) 114,860 271,753 (62,958) 257,781 (2,432,654) Transfers in - - 1,500,000 - - 23,000 - 1,523,000 Transfers out - - - - - - - - Change in net position (2,274,072) 341,540 418,442 114,860 271,753 (39,958) 257,781 (909,654) Net position - Beginning of year 4,036,897 8,481,279 (292,637) 831,573 2,365,863 40,352 625,395 16,088,722 Net position - End of year 1,762,825$ 8,822,819$ 125,805$ 946,433$ 2,637,616$ 394$ 883,176$ 15,179,068$ 212 City of South Bend, Indiana Internal Service FundsCombining Statement of Cash Flows For the Year Ended December 31, 2024 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 85,678$ 1,000,283$ 405,284$ 72,260$ 137,344$ -$ -$ 1,700,849$ Receipts from interfund services andreimbursements 3,623,822 17,565,025 10,484,950 - 13,799,177 8,566 299,280 45,780,820 Payments to suppliers (2,770,462) (18,735,277) (7,109,499) 2 (7,762,463) (77,729) - (36,455,428) Payments to employees - - (3,592,273) - (5,032,966) - (78,021) (8,703,260) Internal activity - payments to other funds - - (776,514) - (818) - - (777,332) Net cash provided by (used in) operating activities 939,038 (169,969) (588,052) 72,262 1,140,274 (69,163) 221,259 1,545,649 Cash flows from noncapital financing activitiesTransfers from other funds - - 1,500,000 - - 23,000 - 1,523,000 Net cash (used in) provided by noncapital financing activities - - 1,500,000 - - 23,000 - 1,523,000 Cash flows from capital and related financing activities Proceeds from capital debt issued for future capital purchase - - - - 269,717 - - 269,717 Proceeds from sales of capital assets - - 2,484 - - - - 2,484 Purchase of capital assets (315,175) - (12,187) - - - - (327,362) Principal paid on capital debt - - (4,198) - (686,269) - - (690,467) Interest paid on capital debt - - (50) - (68,681) - - (68,731) Net cash (used in) provided by capital and related financing activities (315,175) - (13,951) - (485,233) - - (814,359) Cash flows from investing activities Interest received on investments 460,755 507,614 - 45,207 286,030 988 38,485 1,339,079 Proceeds from sale and maturities of investment securities (680,620) (379,923) - (82,228) (645,651) 24,351 (157,679) (1,921,750) Net cash provided by (used in) investing activities (219,865) 127,691 - (37,021) (359,621) 25,339 (119,194) (582,671) Net (decrease) increase in cash and cash equivalents 403,998 (42,278) 897,997 35,241 295,420 (20,824) 102,065 1,671,619 Cash and cash equivalents - beginning of year 2,989,608 4,412,327 (668,428) 382,001 2,547,407 20,998 287,289 9,971,202 Cash and cash equivalents - end of year 3,393,606$ 4,370,049$ 229,569$ 417,242$ 2,842,827$ 174$ 389,354$ 11,642,821$ Classification of cash and cash equivalents Cash and investments 7,553,300$ 9,912,632$ 220,517$ 946,432$ 6,428,887$ 394$ 883,176$ 25,945,338$ Restricted cash and investments - - 9,052 - 12,137 - - 21,189 Less amounts classified as investments (4,159,694) (5,542,583) - (529,190) (3,598,197) (220) (493,822) (14,323,706) Total cash and cash equivalents 3,393,606$ 4,370,049$ 229,569$ 417,242$ 2,842,827$ 174$ 389,354$ 11,642,821$ Reconciliation of operating income (loss)to net cash from operating activitiesOperating income (loss)(2,600,626) (135,943) (1,083,994) 72,261 87,224 (63,803) 221,259 (3,503,622) Adjustments to reconcile operating income (loss)to net cash provided by (used in) operating activities: Depreciation and amortization - - 113,880 - - - - 113,880 Changes in assets and liabilities:Receivables - (30,723) 3,035 - - - - (27,688) Due from other funds - - - - - - - - Inventory - - (86,537) - - - - (86,537) Prepaid expenses and other assets 71,519 (7,320) (1,500) - (153,213) - - (90,514) Accounts payable 279,519 238,215 (87,043) 1 114,064 (5,360) - 539,396 Taxes payable - - 1,904 - 2,198 - - 4,102 Due to other funds - - 126 - - - - 126 Accrued payroll payable - - 82,015 - 105,878 - - 187,893 Compensated absences payable - - (2,466) - 25,185 - - 22,719 Other current payables - - - - - - - - Estimate of unfiled claims 3,188,626 (234,198) - - - - - 2,954,428 Increase (decrease) in deferred outflows of resources Pension items - - (58,493) - (163,424) - - (221,917) OPEB items - - (7,777) - (43,120) - - (50,897) Increase (decrease) in net pension liabilities - - 381,972 - 750,542 - - 1,132,514 Increase (decrease) in OPEB liability - - 68,919 - 221,189 - - 290,108 Increase (decrease) in deferred inflows of resourcesPension items - - (2,721) - 5,816 - - 3,095 OPEB items - - 90,628 - 187,935 - - 278,563 Total adjustments 3,539,664 (34,026) 495,942 1 1,053,050 (5,360) - 5,049,271 Net cash provided by (used in) operating activities 939,038$ (169,969)$ (588,052)$ 72,262$ 1,140,274$ (69,163)$ 221,259$ 1,545,649$ Noncash investing, capital, and financing activitiesCapital assets disposed (at cost)-$ -$ (20,471)$ -$ -$ -$ -$ (20,471)$ Capital assets transferred from/to another fund (cost)- - - - - - - - Accumulated depreciation on disposals of capital assets - - 20,471 - - - - 20,471 Accumulated depreciation on transfers of capital assets - - - - - - - - 213 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 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. Morris / Palais Box Office To account for Morris Performing Arts Center and Palais Royale event advance deposits. Customer deposits are used for event-related activity, and any deposit remaining after event expenses is returned to the customer. 210 City of South Bend, Indiana Statement of Fiduciary Net Position Fiduciary Funds December 31, 2024 Pension Trust Funds Custodial Funds 1925 1937 Total Morris / Palais Police TotalPoliceFirefighters'Pension Trust Box Distribution CustodialPensionPensionFundsOfficePayableFunds Assets Cash and cash equivalents 238,511$ 151,797$ 390,308$ 1,233,154$ 824,099$ 2,057,253$ Investments: U.S. Treasuries 243,425 154,927 398,352 - - - U.S. Government Agency Securities 59,079 37,601 96,680 - - - Tax-Exempt Municipal Bonds - - - - - - Receivables - Interest 2,656 1,691 4,347 - - - Total assets 543,671 346,016 889,687 1,233,154 824,099 2,057,253 Liabilities Accounts payable 101 94 195 15,841 - 15,841 Customer deposits payable - - - 1,217,313 - 1,217,313 Police distribution payable - - - - 824,099 824,099 Total liabilities 101 94 195 1,233,154 824,099 2,057,253 Net position restricted for pensions 543,570$ 345,922$ 889,492$ See Notes to Financial Statements 45 City of South Bend, Indiana Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended December 31, 2024 Pension Trust Funds Custodial Funds 1925 1937 Total Morris / Palais Police Total Police Firefighters'Pension Trust Box Distribution CustodialPensionPensionFundsOfficePayableFunds Additions Investment income (loss) - Interest and dividends 27,459$ 18,518$ 45,977$ -$ -$ -$ Police asset seizures - - - - 107,877 107,877 Contributions: On behalf 6,063,837 3,920,895 9,984,732 - - - Other - (44) (44) - - - Net contributions 6,063,837 3,920,851 9,984,688 - - - Customer deposits - - - 6,240,131 - 6,240,131 Total additions 6,091,296 3,939,369 10,030,665 6,240,131 107,877 6,348,008 Deductions Benefit payments 6,032,294 3,958,189 9,990,483 - - - Police distributions - - - - 267,744 267,744 Police distributions payable - - - - (159,867) (159,867) Customer deposits distributed - - - 4,294,765 - 4,294,765 Customer deposits payable - - - 1,945,366 - 1,945,366Administrative expenses 20,888 26,986 47,874 - - - Total deductions 6,053,182 3,985,175 10,038,357 6,240,131 107,877 6,348,008 Net increase (decrease) in net position held in trust 38,114 (45,806) (7,692) - - - Net position - Beginning of year 505,456 391,728 897,184 - - - Net position - End of year 543,570$ 345,922$ 889,492$ -$ -$ -$ See Notes to Financial Statements 46 Statistical Section 216 Financial trends Revenue capacity Debt capacity Demographic and economic information Operating information These schedules help the reader understand the environment within which the government's financial activities take place. 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. 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: These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. 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. 217 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. 218 City of South Bend, Indiana Net Position by Component Last Ten Fiscal Years As of December 31, 2015 (1)2016 2017 2018 2019 (2)2020 2021 2022 2023 2024 Governmental activities Net investment in capital assets 157,604,691$ 161,341,318$ 155,912,682$ 143,282,487$ 133,763,392$ 128,432,152$ 133,711,581$ 138,388,784$ 124,800,129$ 211,855,858 Restricted 9,137,552 8,669,117 9,245,531 11,639,254 11,332,302 11,810,879 30,180,859 10,969,003 11,149,383 16,248,347 Unrestricted (25,882,348) (7,327,797) (16,751,916) 3,673,134 10,845,011 31,481,927 51,283,016 152,234,215 170,668,771 121,213,335 Total net position 140,859,895$ 162,682,638$ 148,406,297$ 158,594,875$ 155,940,705$ 171,724,958$ 215,175,456$ 301,592,002$ 306,618,283$ 349,317,540 Business-type activities Net investment in capital assets 141,998,384$ 145,288,974$ 145,585,038$ 147,069,159$ 151,699,680$ 158,425,568$ 165,916,250$ 171,543,157$ 168,718,604$ 171,219,480 Restricted 28,397,290 31,963,852 29,623,015 33,936,695 34,701,170 42,169,068 42,713,237 50,422,677 30,416,215 32,814,484 Unrestricted 24,415,739 25,357,665 28,103,338 30,785,421 19,018,588 12,248,916 20,263,612 19,143,447 47,533,637 52,412,983 Total net position 194,811,413$ 202,610,491$ 203,311,391$ 211,791,275$ 205,419,438$ 212,843,552$ 228,893,099$ 241,109,281$ 246,668,456$ 256,446,947 Primary government Net investment in capital assets 299,603,075$ 306,630,292$ 301,497,720$ 290,531,646$ 285,463,072$ 286,857,720$ 299,627,831$ 309,931,941$ 293,518,733$ 383,075,338 Restricted 37,534,842 40,632,969 38,868,546$ 45,575,949 46,033,472 53,979,947 72,894,096 61,391,680 41,565,598 49,062,831 Unrestricted (1,466,609) 18,029,868 11,351,422 34,458,555 29,863,599 43,730,843 71,546,628 171,377,662 218,202,408 173,626,318 Total net position 335,671,308$ 365,293,129$ 351,717,688$ 370,566,150$ 361,360,143$ 384,568,510$ 444,068,555$ 542,701,283$ 553,286,739$ 605,764,487 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. (1) The City implemented the reporting of net pension liability through GASB 68 during 2015. 2014 was restated. (2) 2019 Net position for governmental and business-type is restated. See Note 20 for information regarding the prior period adjustments. Source: City of South Bend Annual Comprehensive Financial Reports 219 City of South Bend, Indiana Changes in Net Position Last Ten Fiscal Years 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Expenses Governmental activities: General government (21,572,776)$ (15,618,817)$ (16,750,853)$ (12,654,430)$ (10,915,147)$ (15,594,628)$ (13,099,391)$ (21,881,174)$ (26,825,090)$ (36,840,791)$ Public safety (56,528,448) (55,029,909) (71,656,865) (69,209,163) (92,017,691) (71,038,475) (66,584,412) (56,739,974) (94,934,628) (100,981,465) Highways and streets (20,045,444) (13,550,535) (21,716,658) (17,223,378) (27,114,327) (30,954,585) (29,402,967) (24,745,703) (31,556,893) (22,635,340) Community and economic development (40,727,612) (28,436,368) (26,326,989) (33,801,755) (44,698,518) (33,591,809) (18,151,702) (25,843,717) (49,277,781) (66,611,120) Culture and recreation (20,300,768) (17,156,094) (19,332,902) (26,076,331) (24,641,558) (18,219,658) (20,298,172) (20,604,274) (36,420,777) (9,541,476) Interest on long-term debt (5,135,146) (4,727,630) (4,538,530) (5,718,172) (5,746,755) (5,928,006) (5,517,287) (5,627,814) (5,870,341) (8,233,931) Total governmental activities expenses (164,310,194) (134,519,353) (160,322,797) (164,683,229) (205,133,996) (175,327,161) (153,053,931) (155,442,656) (244,885,510) (244,844,123) Business-type activities: Water utility (13,609,378) (14,900,039) (14,902,682) (14,788,847) (16,268,059) (15,426,501) (14,387,728) (15,760,389)$ (21,051,699)$ (19,630,586)$ Wastewater utility (25,737,867) (26,420,526) (32,548,087) (25,744,139) (32,482,382) (30,400,218) (29,248,157) (30,960,152) (36,522,974) (37,180,780) Century center (4,854,747) (5,364,472) (5,121,336) (5,287,797) (5,469,673) (3,513,761) (3,826,100) (4,553,091) (5,202,221) (5,874,520) Consolidated building (1)(3,552,347) (3,240,172) (3,704,963) (4,136,837) (4,329,275) (1,500,424) (1,346,344) (1,826,813) (2,297,459) (2,935,772) Parking garage (2,139,182) (909,857) (1,177,363) (459,536) (1,178,641) (1,262,908) (966,418) (1,181,311) (1,573,973) (1,914,858) Solid waste (5,243,972) (5,794,913) (5,169,128) (5,467,986) (5,481,420) (6,169,271) (6,133,675) (7,807,892) (8,334,688) (6,819,921) Emergency medical services (2)(6,596,206) (7,437,349) (8,617,050) (8,987,340) (7,864,987) (91,057) (2,017) - - - Morris performing arts center - - - - - - (45,918) (1,184,243) (1,425,960) (1,536,839) Total business-type activities expenses (61,899,676) (64,067,328) (71,240,609) (64,872,482) (73,074,437) (58,364,140) (55,956,357) (63,273,891) (76,408,974) (75,893,276) Total primary government expenses (226,209,870) (198,586,681) (231,563,406) (229,555,711) (278,208,433) (233,691,301) (209,010,288) (218,716,547) (321,294,484) (320,737,399) Program revenues Governmental activities:Charges for services: General government 1,188,531$ 1,622,788$ 1,118,328$ 718,155$ 452,796$ 635,786$ 619,851$ 607,155$ 617,503$ 599,268$ Public safety 529,386 975,712 648,136 702,977 521,835 5,940,878 6,322,288 6,764,488 7,657,412 7,759,820 Highways and streets 676,429 707,547 976,095 - 244,790 690,372 416,847 308,415 287,847 301,179 Community and economic development 408,654 481,293 1,489,942 698,252 199,405 1,391,715 1,973,800 1,876,212 855,118 417,872 Culture and recreation 3,726,359 4,383,977 4,308,699 4,356,659 4,240,087 3,180,546 3,791,726 3,671,567 3,346,895 3,676,317 Operating grants and contributions 2,813,481 2,644,272 11,828,681 26,248,738 14,701,908 20,139,125 20,180,108 21,370,099 20,414,840 14,771,586 Capital grants and contributions - - 1,000,000 4,100,000 3,605,801 949,034 3,742,319 1,000,000 1,000,000 1,000,000 Total governmental activities program revenues 9,342,840 10,815,589 21,369,881 36,824,781 23,966,622 32,927,456 37,046,939 35,597,936 34,179,615 28,526,042 Business-type activities: Charges for services: Water utility 14,204,285 15,091,372 15,290,203 17,183,460 20,440,181 21,536,290 21,486,628 20,856,662 21,924,430 22,413,363 Wastewater utility 36,638,804 39,061,562 38,794,212 39,931,429 41,324,779 39,653,436 41,517,462 42,707,606 44,744,079 46,162,858 Century center 4,202,564 4,796,676 3,055,793 3,258,017 3,268,026 1,047,253 1,465,145 3,340,775 3,178,260 3,264,037 Consolidated building 2,037,950 1,764,100 1,902,493 2,044,582 2,043,272 1,302,594 1,518,911 1,894,252 2,118,723 3,881,370 Parking garage 968,417 996,197 1,264,706 1,323,524 1,004,401 885,672 951,227 828,821 912,261 1,527,430 Solid waste 5,364,871 5,839,143 5,420,711 5,471,364 5,465,311 5,754,646 6,118,743 6,972,856 7,640,735 8,187,512 Morris Performing Arts Center - - - - - - - 1,125,380 1,161,121 1,034,984 Capital grants and contributions 4,683,424 649,609 1,170,970 - 1,710,762 2,142,194 743,450 7,410 300,410 7,410 Total business-type activities program revenues 74,680,710 76,119,831 74,207,331 76,218,131 80,977,166 72,322,882 73,801,566 77,733,762 81,980,019 86,478,964 Total primary government program revenues 84,023,550 86,935,420 95,577,212 113,042,912 104,943,788 105,250,338 110,848,505 113,331,698 116,159,634 115,005,006 Net (expenses)/revenues Governmental activities (154,967,354) (123,703,764) (138,952,916) (127,858,448) (181,167,374) (142,399,705) (116,006,992) (119,844,720) (210,705,895) (216,318,081) Business-type activities 12,781,034 12,052,503 2,966,722 11,345,649 7,902,729 13,958,742 17,845,209 14,459,871 5,571,045 10,585,688 Total primary government net (expenses)/revenues (142,186,320) (111,651,261) (135,986,194) (116,512,799) (173,264,645) (128,440,963) (98,161,783) (105,384,849) (205,134,850) (205,732,393) 220 City of South Bend, Indiana Changes in Net Position (continued) Last Ten Fiscal Years 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General revenues and other changes in net position Governmental activities: Taxes: Property taxes 72,032,049$ 76,331,581$ 78,266,107$ 80,155,902$ 82,470,667$ 80,188,143$ 87,866,397$ 88,670,960$ 98,454,889$ 111,753,844 Income taxes 23,879,047 30,789,397 28,179,750 32,911,525 34,643,723 36,897,937 35,736,715 31,464,822 44,541,700 47,813,791 Hotel/motel taxes 492,000 396,000 394,000 616,437 630,000 602,937 604,437 795,960 797,437 1,356,826 State-shared revenue 25,623,373 26,124,184 17,113,289 4,819,125 13,050,283 12,242,415 13,357,839 61,869,953 18,725,812 31,193,302 Unrestricted investment income (loss)1,322,674 1,458,787 1,687,888 3,304,646 5,136,772 2,152,868 (52,191) (999,162) 12,192,479 13,913,534 Other miscellaneous income 11,214,442 6,745,542 8,731,916 10,523,004 17,646,068 17,917,905 19,002,228 20,501,061 35,803,723 44,769,122 Gain (loss) on sale of capital assets - - - - - 80,339 104,819 21,455 14,260 119,324Transfers2,846,415 3,681,016 4,123,183 5,229,661 2,768,851 8,101,414 2,837,246 3,936,217 5,232,498 8,097,595 Total governmental activities 137,410,000 145,526,507 138,496,133 137,560,300 156,346,364 158,183,958 159,457,490 206,261,266 215,762,798 259,017,338 Business-type activities: Unrestricted Investment earnings 358,918 570,982 578,773 1,088,896 1,784,206 639,006 4,084 (219,972) 3,450,773 4,607,398 Hotel/motel taxes (3)- - 1,275,000 1,275,000 1,275,000 956,250 1,037,500 1,912,500 1,769,855 2,683,000 Transfers (2,846,415) (3,681,016) (4,123,183) (5,229,661) (2,768,851) (8,101,414) (2,837,246) (3,936,217) (5,232,498) (8,097,595) Total business-type activities (2,487,497) (4,253,425) (2,265,822) (2,865,765) 290,355 (6,534,628) (1,795,662) (2,243,689) (11,870) (807,197) Total primary government 134,922,503 141,273,082 136,230,311 134,694,535 156,636,719 151,649,330 157,661,828 204,017,577 215,750,928 258,210,141 Special items (Governmental activities): Well field contamination settlement - - - - - - - Disposal of operations (1,180,964) - - - - - Change in net position Governmental activities (17,557,354) 21,822,743 (456,783) 9,701,852 (24,821,010) 15,784,253 43,450,498 86,416,546 5,056,903 42,699,257 Business-type activities 10,293,537 7,799,078 700,900 8,479,884 8,193,084 7,424,114 16,049,547 12,216,182 5,559,175 9,778,491 Total primary government (7,263,817)$ 29,621,821$ 244,117$ 18,181,736$ (16,627,926)$ 23,208,367$ 59,500,045$ 98,632,728$ 10,616,078$ 52,477,748$ Changes in net assets is defined as the incremental difference between total assets and total liabilities as a result of operations during the fiscal year. (3) Hotel/motel taxes for the Century Center were mistakenly included in program revenues from 2011-2013 and 2015-2016, but are now represented as general revenues. Source: City of South Bend Annual Comprehensive Financial Reports (excludes prior period adjustments) (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. In 2019, Code Enforcement and Animal Care & Control were moved into a governmental fund and reclassified as general governmental activities again. (2) In 2015, Emergency Medical Services was reclassified to an enterprise fund. In 2019, EMS activities were reclassified from business-type to public safety governmental activities. 221 City of South Bend, Indiana Fund Balances - Governmental Funds Last Ten Fiscal Years As of December 31, 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General fund: Nonspendable 491,665 494,730 447,003 425,680 - - - 513,253 175,000 175,000 Restricted - - - - - - - - - - Committed - - - - - - - - - - Assigned 466,088 1,380,036 1,242,770 820,914 820,834 - - - - - Unassigned 29,664,303 32,077,856 33,776,487 37,383,206 42,478,766 51,026,016 63,401,631 112,933,830 102,130,370 98,229,348 Total general fund 30,622,056 33,952,622 35,466,260 38,629,800 43,299,600 51,026,016 63,401,631 113,447,083 102,305,370 98,404,348 All other governmental funds: Nonspendable 27,042,236 23,566,267 21,927,221 22,322 15,686 11,359,804 10,903,713 1,129,310 668,969 558,684 Restricted 113,004,506 101,826,640 125,302,667 152,809,121 119,218,398 109,268,103 125,396,563 152,085,918 178,518,650 223,974,088 Committed 2,238,475 2,698,694 2,392,685 3,209,500 4,495,457 6,177,133 8,053,213 8,297,587 7,745,034 14,648,524 Assigned 32,138,059 31,998,790 32,769,201 38,707,987 42,474,803 47,008,958 42,663,195 23,739,112 27,062,462 30,299,652 Unassigned (4,218,596) (2,301,793) (626,846) - (57,852) - (26,633) (196,539) (246,627) (170,609) Total all other governmental funds 170,204,680 157,788,598 181,764,928 194,748,930 166,146,492 173,813,998 186,990,051 185,055,388 213,748,488 269,310,339 Total of all governmental funds 200,826,736$ 191,741,220$ 217,231,188$ 233,378,730$ 209,446,092$ 224,840,014$ 250,391,682$ 298,502,471$ 316,053,858$ 367,714,687$ Source: City of South Bend Annual Comprehensive Financial Reports 222 City of South Bend, Indiana Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenues Taxes 96,033,296$ 107,861,553$ 106,746,367$ 113,683,864$ 117,943,632$ 117,689,017$ 124,207,549$ 120,931,742$ 143,794,026$ 160,924,461 Licenses, fees and permits 151,923 224,677 231,260 245,956 284,048 311,100 303,837 350,561 246,565 305,095 Intergovernmental 30,216,059 27,959,813 29,634,896 35,167,863 31,987,992 33,326,540 36,241,803 82,567,947 38,058,277 46,782,811 Charges for services 5,794,168 7,062,108 7,020,575 5,735,251 5,658,913 11,286,157 13,165,015 13,109,188 12,602,548 12,661,763 Fines and forfeitures 454,327 756,781 562,466 494,836 1,124,570 647,214 613,971 593,118 739,837 803,412 Investment income (loss)1,253,242 1,624,527 1,687,888 3,304,646 5,136,772 2,152,868 (52,191) (999,162) 12,192,479 13,913,534 Other revenues 8,816,811 7,179,959 9,703,304 10,523,004 16,237,450 16,959,591 18,963,129 19,557,382 34,817,321 43,660,615 Total revenues 142,719,826 152,669,418 155,586,756 169,155,420 178,373,377 182,372,487 193,443,113 236,110,776 242,451,053 279,051,691 Expenditures Current:General government 8,420,278 16,311,633 14,221,015 12,763,226 11,714,095 14,890,828 14,088,456 23,212,153 24,203,487 22,724,224 Public safety 61,889,405 64,350,281 72,010,182 75,530,051 74,695,638 77,145,197 80,411,282 82,671,364 89,702,272 94,262,971 Highways and streets 12,787,641 11,294,768 13,600,140 16,906,126 19,636,991 18,741,789 15,999,114 19,032,317 26,088,643 30,781,392 Community and economic development 12,855,704 13,070,606 20,622,330 22,179,273 20,706,436 12,593,759 12,791,198 14,239,039 22,934,480 20,692,336 Culture and recreation 11,068,013 20,894,153 15,904,306 16,597,764 26,106,656 15,993,587 16,644,748 17,263,972 29,035,558 33,804,432 Capital outlay 46,553,570 27,056,295 17,035,543 23,240,519 43,200,250 31,186,219 19,643,464 32,047,181 54,608,990 85,092,886 Debt service:Principal 13,319,392 13,055,327 16,634,195 13,134,725 14,124,590 14,569,010 16,121,723 16,158,332 16,558,582 17,068,440 Interest on long-term debt 5,392,298 4,943,021 4,514,526 5,682,429 6,002,448 6,018,810 5,873,228 5,646,097 5,831,806 6,725,140 Bond issuance costs 372,432 - - 165,885 293,022 301,761 258,996 677,462 490,359 817,645 Total expenditures 172,658,733 170,976,084 174,542,237 186,199,998 216,480,126 191,440,960 181,832,209 210,947,917 269,454,177 311,969,466 Excess of revenues (under) over expenditures (29,938,907) (18,306,666) (18,955,481) (17,044,578) (38,106,749) (9,068,473) 11,610,904 25,162,859 (27,003,124) (32,917,775) Other financing sources (uses) Issuance of debt 69,426,593 4,999,053 40,727,816 26,101,096 8,788,457 10,093,069 10,543,000 18,592,507 35,274,116 77,720,507 Premium on debt 1,919,787 - 6,478 479,608 1,462,841 120,059 1,250,022 283,690 3,943,353 706,002 Proceeds from refunding - - - - - - - - - - Payments to refunded bond escrow agent (35,698,815) - - - - - - - - - Transfers in 31,498,681 19,541,050 29,141,285 28,197,288 27,479,435 34,125,738 42,663,275 30,610,209 48,874,955 51,557,126 Transfers out (28,652,266) (15,860,034) (25,018,102) (22,528,488) (24,110,584) (26,024,654) (39,826,029) (26,673,992) (43,642,457) (46,874,490) Other 1,235,744 541,081 (412,028) 942,616 67,236 167,423 131,330 135,516 104,544 1,469,459 Total other financing sources (uses)39,729,724 9,221,150 44,445,449 33,192,120 13,687,385 18,481,635 14,761,598 22,947,930 44,554,511 84,578,604 Net change in fund balances 9,790,817$ (9,085,516)$ 25,489,968$ 16,147,542$ (24,419,364)$ 9,413,162$ 26,372,502$ 48,110,789$ 17,551,387$ 51,660,829$ Excludes prior period adjustments Debt service as a percentage of noncapital expenditures (1)12.21%11.27%14.60%11.00%10.89%13.72%13.14%11.10%8.78%9.04% (1) Formula = Debt service payments (principal and interest) / (Total Governmental Fund expenditures – Governmental Fund capital outlay per reconciliation) Source: City of South Bend Annual Comprehensive Financial Reports (excludes prior period adjustments) For the Year Ended December 31 223 City of South Bend, Indiana Financial Institutions Last Ten Years (Amounts in 000's) Percent Year Branches Deposits Branches Deposits Branches Deposits Total Deposits Increase/ (Decrease) 2015 40 2,454,129 1 25,077 n/a 3,089,732 5,459,697 2016 39 2,607,360 1 25,077 n/a 3,262,413 5,568,938 2.00% 2017 35 2,853,276 - - n/a 3,451,457 5,894,850 5.85% 2018 36 3,179,336 - - n/a 3,719,934 6,304,733 6.95% 2019 45 4,789,990 - - n/a 4,137,490 8,927,480 41.60% 2020 34 3,336,459 - - n/a 5,047,305 8,383,764 -6.09% 2021 34 3,133,766 - - n/a 5,628,842 8,762,608 4.52% 2022 33 3,415,861 - - n/a 5,361,837$ 8,777,698 0.17% 2023 32 3,452,859 - - n/a 5,688,786$ 9,141,645 4.15% 2024 30 3,521,687 - - n/a 6,016,813$ 9,538,500 4.34% Banks Credit Unions 1st Source Bank 2,493,317$ 70.82%Everwise 4,254,127$ 70.70% Lake City Bank 136,179 3.87%Notre Dame Federal Credit Union 971,028 16.14% Jpmorgan Chase Bank, National Assoc.217,773 6.18%Community Wide Credit Union 611,109 10.16% Fifth Third Bank, National Association 94,708 2.69%AAA Federal Credit Union 64,988 1.08% Keybank National Association 92,045 2.61%Policemen's Federal Credit Union 70,101 1.17% PNC Bank, National Association 88,560 2.51%South Bend Firefighters' Credit Union 43,117 0.72% Others 399,105 11.31%Others 2,343 0.04% Total 3,521,687$ 99.99%Total 6,016,813$ 100.01% 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 224 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. 225 City of South Bend, Indiana Property Taxes Levies and Collections Last Ten Fiscal Years Outstanding Post-Circuit Collected as Collected as Outstanding Delinquent Taxes Tax Year/Certified Circuit Breaker Breaker Taxes a Percent of a Percent of Delinquent as a Percent of Collection Year Tax Levy (1)Tax Credit (2)Tax Levy Collected (3)Gross Levy Net Levy Taxes (4)Net Levy 2014/2015 76,533,090 31,636,141 44,896,949 45,265,669 59.15%100.82%8,200,000 18.26% 2015/2016 78,503,658 30,864,405 47,639,253 47,766,833 60.85%100.27%7,468,597 15.68% 2016/2017 81,487,640 32,421,068 49,066,572 49,080,526 60.23%100.03%12,106,873 24.67% 2017/2018 85,426,389 33,910,221 51,516,168 51,498,854 60.28%99.97%11,343,797 22.02% 2018/2019 88,747,340 35,874,959 52,872,381 55,470,558 62.50%104.91%10,648,543 20.14% 2019/2020 91,764,231 39,908,278 51,855,953 51,748,694 56.39%99.79%9,286,878 17.91% 2020/2021 94,929,278 41,202,439 53,726,839 55,516,953 58.48%103.33%8,765,528 16.31% 2021/2022 99,710,814 44,460,442 55,250,372 56,378,190 56.54%102.04%8,017,401 14.51% 2022/2023 104,710,208 42,628,766 62,081,442 61,739,306 58.96%99.45%7,422,218 11.96% 2023/2024 108,871,970 39,363,454 69,508,516 70,811,554 65.04%101.87%6,575,491 9.46% Total collections may exceed 100% of adjusted tax levy as prior year collections are not broken out separately by the St. Joseph County Auditor. Sources: (1) Department of Local Government Finance Certified Budget Orders (https://www.in.gov/dlgf/county-specific-information/st-joseph/) (2) St. Joseph County Circuit Breaker Report (https://www.in.gov/dlgf/county-specific-information/st-joseph/) (3) Baker Tilly Municipal Advisors - Annual Information for Continuing Disclosure Compliance (4) Indiana Gateway Abstract Reports: Total Taxes Summary Report (https://gateway.ifionline.org/report_builder/) Data provided for General Fund, Parks & Recreation, Cumulative Capital Development, and Park Bond; excludes College Football Hall of Fame and Tax Increment Financing Funds. Delinquent taxes 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 by dividing South Bend's total direct tax rate by the total tax rate for Portage Township and then by multiplying it by the amount of delinquent taxes reported for Portage Township. 226 City of South Bend, Indiana Last Ten Fiscal Years (Rate per $100 of Net Assessed Value) Cumulative Total Tax Year/General Parks/Park Capital Total St. Joseph Schools Total Portage Collection Year Fund Recreation Bond Development Direct County Districts Township Library Other (2)Overlapping Township 2014/2015 2.8313 0.5676 - 0.0325 3.4314 0.6866 1.2940 0.0500 0.3207 0.2125 2.5638 5.9952 2015/2016 2.8703 0.5754 - 0.0321 3.4778 0.6974 1.2682 0.0512 0.3549 0.2224 2.5941 6.0719 2016/2017 2.8382 0.6473 - 0.0313 3.5168 0.6950 1.2049 0.5300 0.3372 0.1822 2.9493 6.4661 2017/2018 2.8267 0.6651 0.0293 0.0303 3.5514 0.6908 1.1685 0.5389 0.3309 0.1907 2.9198 6.4712 2018/2019 2.8140 0.6621 0.0461 0.0300 3.5522 0.6640 1.1312 0.0522 0.3278 0.1518 2.3270 5.8792 2019/2020 2.6687 0.6279 0.0405 0.0285 3.3656 0.6783 1.0414 0.0502 0.3196 0.1548 2.2443 5.6099 2020/2021 2.6562 0.6249 0.0387 0.0285 3.3483 0.6741 1.4505 0.0149 0.3177 0.1558 2.6130 5.9613 2021/2022 2.6125 0.6146 0.0372 0.0282 3.2925 0.6574 1.4195 - 0.3013 0.1530 2.5312 5.8237 2022/2023 2.3359 0.5550 0.0312 0.0282 2.9503 0.5989 1.2708 - 0.2626 0.1392 2.2715 5.2218 2023/2024 2.3710 0.5565 0.0308 0.0282 2.9865 0.6259 1.2822 - 0.2725 0.1437 2.3243 5.3108 Source: Department of Local Government Finance Certified Budget Orders (https://www.in.gov/dlgf/county-specific-information/st-joseph/) Overlapping Rates (1)City Direct Rates (1) 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 theircap. (2) Includes South Bend Transportation and South Bend Regional Airport. Previously included South Bend Redevelopment Commission Debt Exempt from Circuit Breaker, final year 2017/2018. Direct and Overlapping Property Tax Rates 227 City of South Bend, Indiana Detail of Net Assessed Valuation Assessment For the Year 2023 Payable in 2024 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 Gross value of land 205,018,500$ 45,733,500$ 115,782,800$ 31,743,900$ 988,300$ 492,635,700$ 891,902,700$ Value of improvements 691,101,600 167,212,300 581,283,300 125,913,600 23,273,700 4,629,067,400 6,217,851,900 Total value of real estate 896,120,100 212,945,800 697,066,100 157,657,500 24,262,000 5,121,703,100 7,109,754,600 Less: Mortgage, veterans, blind, age 65 & other exemptions (358,535,730) (50,346,664) (141,216,040) (49,705,852) - (1,628,278,106) (2,228,082,392) Investment deductions - - - - - (409,200) (409,200) Tax-exempt property (46,312,075) (13,908,793) (26,830,964) (18,834,100) - (393,998,632) (499,884,564) Tax increment financing (1)(77,268,418) (11,525,358) (280,185,964) (279,102) (24,262,000) (879,718,659) (1,273,239,501) Tax abatements (1,010,796) - (72,384,135) (74,880) - - (73,469,811) Net value of real estate 412,993,081 137,164,985 176,448,997 88,763,566 - 2,219,298,503 3,034,669,132 82.09% Gross personal property assessments 38,547,170 14,850,230 199,807,900 4,102,030 10,636,510 348,433,560 616,377,400 Less: Investment deductions - - (5,463,430) - - (11,477,425) (16,940,855) Tax-exempt property (1,840,489) (2,360,162) (1,750,613) (2,730,600) - (85,131,148) (93,813,012) Net value of personal property 36,706,681 12,490,068 192,593,857 1,371,430 10,636,510 251,824,987 505,623,533 13.68% Net value of utilities 20,877,700 8,655,640 5,811,390 1,246,630 19,167,840 100,755,720 156,514,920 4.23% Total net assessed valuation 470,577,462$ 158,310,693$ 374,854,244$ 91,381,626$ 29,804,350$ 2,571,879,210$ 3,696,807,585$ 100.00% Percentage of Total 12.73%4.28%10.14%2.47%0.81%69.57%100.00% Summary:Real Property Personal Property/Utilities Total Percent Total value 7,109,754,600$ 772,892,320$ 7,882,646,920$ 100.00% Exemptions & deductions (2,228,491,592) (16,940,855) (2,245,432,447) –28.49% Tax exempt property (499,884,564) (93,813,012) (593,697,576) –7.53% Tax increment financing (1)(1,273,239,501) - (1,273,239,501) –16.15% Tax abatements (73,469,811) - (73,469,811) –0.93% Total net assessed valuation 3,034,669,132$ 662,138,453$ 3,696,807,585$ 46.90% Percentage of Total 82.09%17.91%100.00% (1) Tax Increment Financing data from Indiana Department of Local Government Finance Gateway County Abstract Reports Source: St. Joseph County Auditor's Office 228 City of South Bend, Indiana Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years Less:Total Net (2) Tax Year/Real Personal Utilities Total Non-Taxed Taxable City Tax % Collection Year Property Property Property Value Property (1)Value Rate Taxable 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 (2,779,605,371) 2,416,457,217 3.5514 46.51% 2018/2019 4,899,699,000 634,665,170 105,339,300 5,639,703,470 (3,068,693,472) 2,571,009,998 3.5522 45.59% 2019/2020 5,114,244,500 646,921,594 121,834,780 5,883,000,874 (3,112,064,193) 2,770,936,681 3.3656 47.10% 2020/2021 5,393,811,140 645,296,200 133,481,040 6,172,588,380 (3,285,738,559) 2,886,849,821 3.3483 46.77% 2021/2022 5,748,531,680 645,137,280 139,131,250 6,532,800,210 (3,469,797,299) 3,063,002,911 3.2925 46.89% 2022/2023 6,634,783,500 703,643,260 127,129,150 7,465,555,910 (3,903,424,230) 3,562,131,680 2.9503 47.71% 2023/2024 7,109,754,600 616,377,400 156,514,920 7,882,646,920 (4,185,839,335) 3,696,807,585 2.9865 46.90% (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 Office Gross Assessed Values 229 City of South Bend, Indiana Net Assessed Value of Taxable Property Last Ten Fiscal Years Real Estate Personal Utilities Total Tax Year/Net Assessed Net Assessed Net Assessed Net Assessed Percent Collection Year Value Value Value Value Change 2014/2015 1,753,122,893 420,221,715 86,924,710 2,260,269,318 - 2015/2016 1,737,036,616 456,346,197 83,786,930 2,277,169,743 0.75% 2016/2017 1,758,787,301 463,676,740 105,036,200 2,327,500,241 2.21% 2017/2018 1,831,929,345 490,912,332 93,615,540 2,416,457,217 3.82% 2018/2019 1,969,190,797 496,479,901 105,339,300 2,571,009,998 6.40% 2019/2020 2,134,421,914 514,679,987 121,834,780 2,770,936,681 7.78% 2020/2021 2,235,284,708 518,084,073 133,481,040 2,886,849,821 4.18% 2021/2022 2,402,312,000 521,559,661 139,131,250 3,063,002,911 6.10% 2022/2023 2,846,891,825 588,110,705 127,129,150 3,562,131,680 16.30% 2023/2024 3,034,669,132 505,623,533 156,514,920 3,696,807,585 3.78% Source: St. Joseph County Auditor's Office 230 City of South Bend, Indiana Assessed Value of Taxable Property Last Ten Fiscal Years Net Tax Year/Total Tax Exempt Tax Increment Tax Assessed Collection Year Gross Valuation Deductions (1)Property Financing Abatements Valuation 2014/2015 4,837,489,612 (1,292,923,103) (510,555,188) (707,010,507) (66,731,496) 2,260,269,318 2015/2016 4,886,942,370 (1,305,921,190) (521,555,123) (718,066,149) (64,230,165) 2,277,169,743 2016/2017 5,061,070,610 (1,334,844,637) (559,770,989) (743,657,399) (95,297,344) 2,327,500,241 2017/2018 5,196,062,588 (1,427,692,210) (553,655,834) (747,216,585) (51,040,742) 2,416,457,217 2018/2019 5,639,703,470 (1,455,171,383) (740,085,791) (806,734,955) (66,701,343) 2,571,009,998 2019/2020 5,883,000,874 (1,580,254,616) (564,471,187) (876,115,204) (91,223,186) 2,770,936,681 2020/2021 6,172,588,380 (1,649,281,358) (567,817,363) (975,281,036) (93,358,802) 2,886,849,821 2021/2022 6,532,800,210 (1,768,647,659) (561,215,590) (1,025,524,319) (114,409,731) 3,063,002,911 2022/2023 7,465,555,910 (1,973,484,072) (591,737,438) (1,210,009,794) (128,192,926) 3,562,131,680 2023/2024 7,882,646,920 (2,245,432,447) (593,697,576) (1,273,239,501) (73,469,811) 3,696,807,585 (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. 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 Homestead Standard Deduction 904,481,400$ 932,918,401$ 964,256,713$ 1,003,829,055$ 1,081,183,121$ Supplemental Standard Deduction 560,654,768 603,002,529 694,705,463 861,947,660 1,098,719,183 Mortgage Deduction 38,098,290 37,448,388 38,690,362 38,883,403 1,267,760 Age 65 and Over Deduction 22,391,995 23,772,326 24,376,360 24,012,244 24,724,406 Veteran's Deduction 13,847,494 14,026,257 14,674,994 14,237,573 22,543,679 Blind & Disabled 5,982,136 5,939,885 5,802,048 5,824,908 5,798,920 Energy Systems Deduction 474,200 468,400 482,000 569,500 659,600 Heritage Barn Deduction 24,500 24,500 24,500 29,300 29,300 Fertilizer/Pesticide Deduction - - - - - Investment Deduction 34,299,833 31,680,672 25,635,219 24,150,429 10,506,478 Total 1,580,254,616$ 1,649,281,358$ 1,768,647,659$ 1,973,484,072$ 2,245,432,447$ Source: St. Joseph County Auditor's Office Deductions 231 City of South Bend, Indiana Fund 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Fund Name Number Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual General Fund 101 37,349,387$ 39,362,139$ 39,568,076$ 40,719,333$ 42,705,987$ 40,660,123$ 43,659,873$ 45,635,698$ 48,636,181$ 55,895,188$ Excess Levy 103 - - - - - - - - - - Parks & Recreation 201 7,487,554 7,902,995 9,033,731 9,591,899 10,048,047 9,566,845 10,271,000 10,742,492 11,441,107 13,118,405 Park Bond (2017 Parks Bond Debt Service)312 - - - 703,118 1,166,972 1,087,915 1,116,956 1,149,510 1,080,710 1,133,782 College Football Hall of Fame Debt Service 313 906,263 1,361,512 820,071 426,604 - - - - - - River West TIF District (1)324 16,293,240 18,159,311 17,259,902 18,662,835 18,555,308 16,814,400 18,120,969 16,811,078 19,559,921 20,520,362 Cumulative Capital Development 406 428,727 440,887 436,823 436,677 455,002 433,812 469,124 492,015 581,307 664,179 South Bend Central Development Area TIF (1) 420 - - - - - - - - - - West Washington Street TIF District 422 402,911 453,503 378,994 332,220 261,830 237,261 348,856 308,363 490,344 610,117 Central Medical Service Area TIF District (1)426 - - - - - - - - - - River East (Northeast) TIF District 429 2,421,308 2,348,608 2,630,887 3,062,820 2,722,642 2,997,091 4,328,968 4,209,328 6,216,898 8,221,833 Southside Development Area TIF District 430 2,205,822 2,401,252 2,365,692 2,166,637 1,755,231 3,081,721 2,981,728 2,745,678 2,986,918 3,445,271 Erskine Village TIF District 432 19,183 - - - - - - - - - Douglas Road TIF District 435 270,758 345,262 379,255 - - - 269,923 308,581 233,288 346,093 River East (Northeast) Residential TIF 436 3,129,681 3,932,947 4,262,917 4,686,651 4,933,558 5,308,975 6,299,000 6,268,217 7,228,216 7,798,613 Airport Urban Enterprise 454 - - - - - - - - - - Total 70,914,834$ 76,708,415$ 77,136,348$ 80,788,794$ 82,604,579$ 80,188,143$ 87,866,397$ 88,670,960$ 98,454,890$ 111,753,843$ (2) Name changed in 2015 from TIF Airport to River West TIF due to consolidation of Central Development Area and Central Medical TIFs. Source: City of South Bend Accounting Records Property Tax Collections - Cash Basis Last Ten Fiscal Years 232 City of South Bend, Indiana Circuit Breaker Property Tax Cap Credits Fiscal Year 2024 Selected Benchmark Local Governments: Total 2020 Per Capita Local Unit Credits (1) Population (2)Credits South Bend Civil City 39,363,454$ 103,453 380$ Anderson Civil City 14,936,848 54,788 273 East Chicago Civil City 13,806,240 26,370 524 Elkhart Civil City 8,852,866 53,923 164 Evansville Civil City 18,774,978 117,298 160 Fort Wayne Civil City 10,318,822 263,886 39 Gary Civil City 52,221,074 69,093 756 Goshen Civil City 3,125,541 34,517 91 Hammond Civil City 14,166,728 77,879 182 Jeffersonville Civil City 4,942,242 49,447 100 Kokomo Civil City 17,327,774 59,604 291 Lafayette Civil City 2,301,679 70,783 33 LaPorte Civil City 3,985,822 22,471 177 Mishawka Civil City 8,384,263 51,063 164 Muncie Civil City 21,683,633 65,194 333 Noblesville Civil City 6,696,871 69,604 96 St. Joseph County 11,408,750 272,912 42 South Bend School Corporation 11,984,794 103,453 116 Terre Haute Civil City 18,416,147 58,389 315 Sources: (1)Department of Local Governmental Finance 2021 Estimated Property Tax Cap Impact Report (https://www.in.gov/dlgf/county-specific-information/) (2)U.S. Census Bureau, 2020 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. 233 City of South Bend, Indiana 2023/pay 2024 2013/pay 2014 Net Assessed Percent Net Assessed PercentTaxpayerType of Business Value (1)Rank of Total Value (2)Rank of Total University of Notre Dame Higher Education 112,883,995$ 1 2.68%-$ 0.00% AEP / Indiana Michigan Power Company Electic Utility 110,528,260 2 2.62%37,253,440 3 1.59% Air Wisconsin Airlines LLC Regional Airline 62,616,340 3 1.49%- 0.00% Honeywell International, Inc. / Bendix Corp.Mfg. auto and aircraft parts 53,954,360 4 1.28%51,150,670 1 2.19% Steel Ware House Co., Inc. / Lock Joint Tube Steel processing 42,263,760 5 1.00%- 0.00% Edward Rose of Indiana Apartment complexes 35,082,900 6 0.83%36,374,900 4 1.56% UND Property Owner Apartment complex 29,845,000 7 0.71%- 0.00% JVE Investments LLC / The Tire Rack, Inc. Tire Sales 24,057,350 8 0.57%- 0.00% GLC Portage Prairie LLC Warehouses 24,011,161 9 0.57%- 0.00% Commerce Center Development Office Building 22,536,500 10 0.53%- 0.00% Total Net Assessed Value - Ten Largest Taxpayers 517,779,626$ 12.28%124,779,010$ 5.34% Total Net Assessed Value (3)4,216,447,192$ 100.00%2,336,906,810$ 100.00% Sources: (1) Baker Tilly Municipal Advisors - Annual Information for Continuing Disclosure Compliance (2) 2014 Comprehensive Annual Financial Report (3) St. Joseph County Auditor Principal Property Taxpayers - Current and Nine Years Ago For fiscal year ended 12/31/2024 234 City of South Bend, Indiana Local Income Tax Revenue Economic Development Component Last Ten Years Economic South Bend Actual City Distribution Development Total County Rate of South Bend Rate of as a Percent CollectionsYearTax Rate (1)Distributions Growth Distribution Growth of Total During Year 2015 0.40%23,081,049 9,031,709 39.13%9,031,709 2016 0.40%23,733,626 2.83%9,594,602 6.23%40.43%9,594,602 2017 0.40%26,149,949 10.18%10,433,361 8.74%39.90%10,433,361 2018 (3)0.40%26,745,547 2.28%10,720,959 2.76%40.09%11,885,489 2019 (4)0.40%28,586,914 6.88%11,597,226 8.17%40.57%12,474,651 2020 (5)0.40%28,744,062 0.55%12,123,599 4.54%42.18%13,405,714 2021 (6)0.40%30,245,517 5.22%12,597,307 3.91%41.65%13,006,489 2022 (7)0.40%29,091,734 –3.81%12,065,405 –4.22%41.47%12,704,389 2023 (8)0.40%32,835,878 12.87%13,736,992 13.85%41.84%17,660,862 2024 (9)0.40%40,602,192 23.65%16,896,469 23.00%41.61%19,485,677 Total 216,378,398$ 88,164,168$ 40.75%129,682,944$ (3) The City's 2018 Economic Development distribution included $1,164,530 of supplemental, one-time distributions. (4) The City's 2019 Economic Development distribution included $877,425 of supplemental, one-time distributions. (5) The City's 2020 Economic Development distribution included $1,282,115 of supplemental, one-time distributions. (6) The City's 2021 Economic Development distribution included $409,182 of supplemental, one-time distributions. (7) The City's 2022 Economic Development distribution included $638,984 of supplemental, one-time distributions. (8) The City's 2023 Economic Development distribution included $3,923,870 of supplemental, one-time distributions. (9) The City's 2024 Economic Development distribution included $2,589,208 of supplemental, one-time distributions. Sources: State of Indiana Department of Local Government Finance Local Income Tax Distribution Reports City of South Bend Accounting Records (Local Income Tax-Economic Development Fund #408) (1) This tax was first enacted as of July 1, 1995 at the rate of 0.1% of City residents' adjusted gross income. The rate was increased to 0.2% effective July 1, 1997. The Economic Development tax rate for 2010 and subsequent years was increased by City of South Bend Common Council and the Saint Joseph County Common Council. 235 City of South Bend, Indiana Local Income Tax Revenue Certified Shares Component Last Ten Years South Bend Actual City Distribution Certified Shares Total County Rate of South Bend Rate of as a Percent CollectionsYearTax Rate (1)Distributions Growth Distribution Growth of Total During Year 2015 0.60%26,435,155 8,859,912 33.52%8,754,940 2016 0.60%27,898,910 5.54%9,454,023 6.71%33.89%9,275,956 2017 0.60%31,321,416 12.27%10,459,265 10.63%33.39%10,267,404 2018 (2)0.60%31,947,819 2.00%12,188,922 16.54%38.15%12,213,073 2019 (3)0.60%35,539,674 11.24%12,148,294 –0.33%34.18%12,879,847 2020 (4)0.60%35,901,334 1.02%12,440,774 2.41%34.65%13,764,809 2021 (5)0.60%37,776,651 5.22%12,912,855 3.79%34.18%13,334,937 2022 (6)0.60%26,153,469 –30.77%8,933,585 –30.82%34.16%9,591,298 2023 (7)0.60%29,519,454 12.87%10,164,012 13.77%34.43%14,189,571 2024 (8)0.60%36,501,371 23.65%12,254,718 20.57%33.57%14,471,413 Total 282,493,882$ 109,816,360$ 38.87%118,743,248$ (2) The City's 2018 Certified Shares distribution included $1,407,558 of supplemental, one-time distributions. (3) The City's 2019 Certified Shares distribution included $731,553 of supplemental, one-time distributions. (4) The City's 2020 Certified Shares distribution included $1,324,035 of supplemental, one-time distributions. (5) The City's 2021 Certified Shares distribution included $422,082 of supplemental, one-time distributions. (6) The City's 2022 Certified Shares distribution included $657,713 of supplemental, one-time distributions. (7) The City's 2023 Certified Shares distribution had $4,025,559 of supplemental, one-time distributions. (8) The City's 2024 Certified Shares distribution had $1,917,126 of supplemental, one-time distributions. Sources: State of Indiana Department of Local Government Finance Local Income Tax Distribution Reports City of South Bend Accounting Records (Local Income Tax-Certified Shares Fund #101) (1) This tax was first enacted as of July 1, 1997 at the rate of 0.2% of City residents' adjusted gross income. The Certified Shares rate increased 0.1% each year until it reached 0.6% as of July 1, 2001. The above collections/distribution amounts are net of the additional homestead credits that accompanied the passage of this income tax. 236 City of South Bend, Indiana Local Income Tax Revenue Public Safety Component Last Ten Years South Bend Actual City Distribution Public Safety Total County Rate of South Bend Rate of as a Percent CollectionsYearTax Rate (1) Distributions Growth Distribution Growth of Total During Year 2015 0.25%13,734,382 6,466,190 47.08%6,466,190 2016 0.25%14,237,777 3.67%6,791,160 5.03%47.70%6,791,160 2017 0.25%15,673,247 10.08%7,467,618 9.96%47.65%7,467,618 2018 (3)0.25%15,986,699 2.00%8,487,336 13.66%53.09%8,487,336 2019 (4)0.25%17,784,064 11.24%8,560,555 0.86%48.14%9,205,130 2020 (5)0.25%17,965,039 1.02%8,766,330 2.40%48.80%9,703,297 2021 (6)0.25%18,903,448 5.22%9,094,317 3.74%48.11%9,391,746 2022 (7)0.25%18,182,334 –3.81%8,705,124 –4.28%47.88%9,168,579 2023 (8)0.25%20,522,424 12.87%9,855,778 13.22%48.02%12,690,915 2024 (9)0.25%25,376,370 23.65%11,988,584 21.64%47.24%13,856,681 Total 178,365,784$ 86,182,992$ 48.32%66,681,056$ (2) The City's 2012 Public Safety distribution included $549,267, the amount the State of Indiana underpaid the City in 2011. (3) The City's 2018 Public Safety distribution included $105,782 of supplemental, one-time distributions. (4) The City's 2019 Public Safety distribution included $644,575 of supplemental, one-time distributions. (5) The City's 2020 Public Safety distribution included $936,967 of supplemental, one-time distributions. (6) The City's 2021 Public Safety distribution included $297,429 of supplemental, one-time distributions. (7) The City's 2022 Public Safety distribution included $463,455 of supplemental, one-time distributions. (8) The City's 2023 Public Safety distribution had $2,835,137 of supplemental, one-time distributions. (9) The City's 2024 Public Safety distribution had $1,868,094 of supplemental, one-time distributions. Sources: State of Indiana Department of Local Government Finance Local Income Tax Distribution Reports City of South Bend Accounting Records (Local Income Tax-Public Safety Fund #249) (1) This tax was effective in October 2009 at the rate of 0.25% of City residents' adjusted gross income. The measure is being used to support the Public Safety operations consisting of the Police Department and the Fire Department, to keep the staffing levels at their full complement. 237 City of South Bend, Indiana Last Ten Years Unit of Government 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total County Certified Distribution 32,962,518$ 34,170,664$ 37,640,869$ 38,393,656$ 42,710,208$ 43,144,837$ 45,398,521$ 43,666,693$ 49,286,652$ 60,943,890$ Less: Homestead Credit (1)(6,527,363) (6,271,754) (6,319,453) (6,445,837) (7,170,534) (7,243,503) (7,621,870) (17,513,224) (19,767,198) (31,424,436) Total Distributive Shares 26,435,155$ 27,898,910$ 31,321,416$ 31,947,819$ 35,539,674$ 35,901,334$ 37,776,651$ 26,153,469$ 29,519,454$ 29,519,454$ Distributive Shares / Total County Distribution 80.20%81.65%83.21%83.21%83.21%83.21%83.21%59.89%59.89%48.44% Amount St. Joseph County 9,611,416$ 9,983,016$ 10,908,099$ 11,290,728$ 12,351,986$ 12,279,480$ 12,941,856$ 8,922,886$ 9,976,782$ 12,254,718$ Townships 1,541,211 1,695,662 2,396,851 1,978,069 3,506,429 2,175,833 2,443,619 1,614,656 1,819,814 2,041,428 City of South Bend - Civil City 8,754,940 9,275,956 10,267,284 10,781,364 12,148,294 12,440,774 12,912,855 8,933,585 10,164,012 12,554,287 City of South Bend - Redevelopment 104,972 178,067 191,981 124,929 70,356 8,775 1,099 92 9 1 Other Cities & Towns 3,508,422 3,683,131 4,118,009 4,317,405 4,868,878 4,982,004 5,229,085 3,730,865 4,402,111 5,153,874 Libraries 2,144,046 2,279,241 2,541,672 2,569,360 2,889,567 2,927,273 3,006,149 2,071,253 2,339,032 2,885,191 Special Districts 770,148 803,837 897,520 885,964 1,054,424 1,087,195 1,241,988 880,132 997,694 1,311,872 Total 26,435,155$ 27,898,910$ 31,321,416$ 31,947,819$ 36,889,934$ 35,901,334$ 37,776,651$ 26,153,469$ 29,699,454$ 36,201,371$ Percentage of Distribution St. Joseph County 36.36%35.78%34.83%35.34%33.48%34.20%34.26%34.12%33.59%33.85% Townships 5.83%6.08%7.65%6.19%9.51%6.06%6.47%6.17%6.13%5.64% City of South Bend - Civil City 33.12%33.25%32.78%33.75%32.93%34.65%34.18%34.16%34.22%34.68% City of South Bend - Redevelopment 0.40%0.64%0.61%0.39%0.19%0.02%0.00%0.00%0.00%0.00% Other Cities & Towns 13.27%13.20%13.15%13.51%13.20%13.88%13.84%14.27%14.82%14.24% Libraries 8.11%8.17%8.11%8.04%7.83%8.15%7.96%7.92%7.88%7.97% Special Districts 2.91%2.88%2.87%2.77%2.86%3.03%3.29%3.37%3.36%3.62% Total 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00% (1) A portion of the certified shares income tax is used for property tax relief through homestead credits for residential property owners. Source: State of Indiana Department of Local Government Finance Local Income Tax Distribution Reports Total Local Income Tax Certified Shares Distributions by Taxing Unit 238 City of South Bend, Indiana Ten Largest Water Customers Percentage of Total Water 2024 Operating Usage Customer Name Revenue Revenue CCF* SOUTHBENDCOMMUNITYSCHOOLS 230,881$ 1.02%105,277 MEMORIALHOSPITAL 164,923 0.73%83,749 IRISHHILLSAPARTMENTS 148,542 0.66%77,667 PARKS DEPT 136,521 0.61%67,206 ALLIEDSIGNALAEROSPACECOMPANY 97,434 0.43%56,166 HAPROSPERLLC 66,025 0.29%54,045 INDIANAUNIVERSITYSOUTHBEND 116,215 0.52%45,469 POKAGONGAMING/POTAWATOMIINDIANS 66,834 0.30%44,381 ARAMARKUNIFORMSERVICESINC 51,634 0.23%40,109 CASTLEPOINTAPTSPROPERTYLLC 54,845 0.24%37,800 Total of Ten Largest Water Customers 1,133,854$ 5.03% Total for Operating Revenue for Water Works 22,562,284$ 100.00% * Hundreds of Cubic Feet Source: City of South Bend Water Utility For fiscal year ended 12/31/2024 239 City of South Bend, Indiana Ten Largest Sewage Works Customers Percentage of Heavy Total Metered Demand 2024 Wastewater Usage Customer Name Revenue Surcharge Revenue Revenue CCF* Cleveland-Cliffs Tek Inc 2,505,542$ -$ 2,077,118$ 4.78%575,887 University of Notre Dame 204,422 - 1,121,671 2.58%418,310 South Bend Ethanol 711,159 - 550,905 1.27%174,337 Town of New Carlisle 193,455 - 240,391 0.55%75,619 Memorial Hospital of South Bend 112,216 - 225,659 0.52%71,411 South Bend Community Schools 1,027,039 - 230,167 0.53%70,982 Irish Hill Apartments 272,566 - 185,362 0.43%58,659 Allied Signal Aerospace Company 116,587 - 174,252 0.40%55,143 H&A Prosper, LLC 120,974 - 144,598 0.33%45,759Aramark Uniform Services Inc.125,364 - 126,744 0.29%40,109 Total of Ten Largest Sewer Customers 5,389,323$ -$ 5,076,868$ 11.68% Total Operating Revenue for Wastewater 43,471,462$ *Hundreds of Cubic Feet Source: City of South Bend Sewage Works Utility For fiscal year ended 12/31/2024 240 City of South Bend, Indiana Gasoline Tax Collections - Cash Basis Last Ten Fiscal Years Local Road Motor Vehicle & Street Highway Total % Year Fund Fund Gasoline Tax Change 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 4,352,316 6,210,894 –5.11% 2020 1,781,618 3,838,489 5,620,107 –9.51% 2021 1,939,498 4,242,239 6,181,737 9.99% 2022 2,003,475 4,339,494 6,342,969 2.61% 2023 2,040,961 4,455,394 6,496,355 2.42% 2024 2,063,246 4,327,130 6,390,376 –1.63% Source: City of South Bend Accounting Records Distributions of gas tax revenue are made monthly by the Indiana Department of Revenue to the Local Road and Street (LR&S) and Motor Vehicle Highway (MVH) funds for use in construction and maintenance of streets and highways. Distributions are based on a complex formula developed by the State of Indiana. The formula takes into account population, road and street mileage and other factors. 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 fairly consistent until 2017, the Indiana General Assembly passed legislation to increase the gas tax. However, after raising the tax, the State revised its distribution formula to keep more funds at the state-level, resulting in a decrease in distributions to local governments starting in 2019. Gas tax revenue continued to decline in 2020 because travel and transportation decreased due to the COVID-19 pandemic. 0 $1 M $2 M $3 M $4 M $5 M $6 M $7 M 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Motor VehicleHighway Local Road &Street 241 City of South Bend, Indiana Wheel and Excise Surtax Collections - Cash Basis Last Ten Fiscal Years Motor VehicleHighway % Year Fund Change 2015 (1)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% 2020 2,131,825 3.20% 2021 2,166,019 1.60% 2022 1,929,591 –10.92% 2023 2,093,052 8.47%2024 2,163,565 3.37% 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.) During 2004-2007, the City of South Bend deposited the wheel tax and excise surtax in the Local Roads & Streets Fund. Starting in 2008, the Indiana State Board of Accounts (SBOA) required that the taxes be deposited into the Motor Vehicle Highway Fund. Starting in 2019, the SBOA required that the tax revenue be split 50/50 between the Motor Vehicle Highway Fund and a new MVH Restricted Fund. 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. (1) 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. $1.8 M $1.8 M $1.9 M $1.9 M $2.0 M $2.0 M $2.1 M $2.1 M $2.2 M $2.2 M $2.3 M 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 MotorVehicleHighway 242 City of South Bend, Indiana Hotel/Motel Tax Revenue - Cash Basis Last Ten Fiscal Years ------------------------------------Paid to City of South Bend--------------------------------------Direct Payments--- Century Professional Cumulative 2008 Century Center Subtotal:Other Center Sports Develop.Capital Impr.Century Center Energy Consv.Paid to City Century Center Total Hotel/Percent Year Fund Fund Fund Bonds Debt Service of South Bend Projects Motel Tax Change 2015 1,313,450 - 150,000 492,000 - 1,955,450 976,855 2,932,305 - 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 - - 395,000 235,000 1,905,000 1,292,506 3,197,506 24.00% 2020 956,250 - - 381,500 221,437 1,559,187 1,220,953 2,780,140 –13.05% 2021 1,037,500 - - 383,000 221,437 1,641,937 538,692 2,180,629 –21.56% 2022 1,275,000 - - 200,000 221,437 1,696,437 219,962 1,916,399 –12.12% 2023 1,275,000 385,000 221,437 1,881,437 494,855 2,376,292 24.00% 2024 1,275,000 100,000 385,000 221,437 1,981,437 33,000 2,014,437 –15.23% Source: City of South Bend Accounting Records and St. Joseph County Auditor's Office The hotel/motel tax was enacted in 1973. A tax rate of 6% had been in effect since 1994. In July 2021, the rate was increased to 8%, with 1% going towards developing a youth sports complex in Mishawaka, 0.5% going towards the repayment of bonds issued in 2022 to fund capital improvement projects at Potawatomi Zoo, and 0.5% going towards the repayment of bonds issued in 2022 to fund capital improvements to the Morris Performing Arts Center. The tax is accounted for in a fund of the St. Joseph County government and is administered by the 11 member St. 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 St. Joseph County Commissioners. Proceeds from the hotel/motel tax fund are budgeted and distributed anually 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). Distributions to the Cumulative Capital Improvement fund were used for the repayment of the 1994 Century Center Bonds. Distributions to the River West Tax Increment Financing fund (starting in 2015, SCBDA General fund prior) are used for the repayment of the 2008 Century Center Bonds. Distributions to the Century Center Debt Service fund are used for repayment of the 2015 Energy Conservation Bonds which were issued by the City for the energy improvements made at the Century Center in 2015. The 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 to all organizations was $3,975,190 during 2022. The cash balance in the County Hotel/Motel Tax Fund was $6,242,205 at December 31, 2022. Century Center Fund63% 2008 Century Center Bonds23% Century Center Energy Conservation Bonds Debt Service Fund14% 243 City of South Bend, Indiana Professional Sports Convention Development Area (PSCDA) Tax - Cash Basis Last Ten Fiscal Years Total % Year PSCDA Tax Change 2015 628,261 13.97% 2016 760,390 21.03% 2017 409,659 –46.13% 2018 - –100.00% 2019 - 0.00% 2020 - 0.00% 2021 775,414 100.00% 2022 2,082,741 168.60% 2023 2,055,414 –1.31% 2024 6,363,342 209.59% Source: City of South Bend Accounting Records The Professional Sports Convention Development Area (PSCDA) tax is a combination of Indiana state income tax withholding, local income tax withholding, and sales tax withholding from businesses and employees in the designated area. The PSCDA tax revenue shall be used for capital improvements or financing of capital improvements for any facility that is owned by the City and is used as one of the following: a professional sports franchise for practice or competitive sporting events, a facility used principally for convention or tourism related events, a museum, a facility used for public attractions of national significance, a performing arts venue (IC 36-7-31.38-8 (a)(2)). There are currently four professional sports development areas in the State--South Bend, Indianapolis/Marion County, Evansville, and Ft. Wayne. The PSCDA taxes are collected by the Indiana Department of Revenue and are remitted on a monthly basis to St. Joseph County which remits the taxes to the City of South Bend. The PSCDA was originally established in 1997 to fund debt service and improvements at the College Football Hall of Fame. The City received PSCDA tax revenue for the original area from January 1998 through December 2017. The original PSCDA included the College Football Hall of Fame, Century Center, Four Winds Field at Stanley Coveleski Stadium, Morris Performing Arts Center, Palais Royale Ballroom, and the Studebaker National Museum. In 2021, the PSCDA was reinstated in downtown South Bend. The revised PSCDA expanded the tax area, adding the Aloft Hotel, the Courtyard by Marriott South Bend, Downtown, the Doubletree Hotel, Howard Park including its Community Center and the Howard Park Public House, and the campus of Indiana University South Bend. The maximum amount of covered taxes that may be captured in the PSCDA is $2 million per year per IC 36-7-31.8-10(e). The allocation provisions shall expire July 1, 2041. $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 244 City of South Bend, Indiana Cable Television Franchise Fee Collections - Cash Basis Last Ten Years Total %Year Comcast AT&T Franchise Fees Change 2015 723,676 281,873 955,465 3.00% 2016 749,565 256,611 1,005,549 5.24% 2017 771,128 156,394 1,006,176 0.06% 2018 714,471 226,562 941,033 –6.47% 2019 707,836 132,332 840,169 –10.72% 2020 678,238 255,861 934,099 11.18% 2021 670,761 105,016 775,777 –16.95% 2022 707,080 63,341 770,421 –0.69% 2023 605,333 88,450 693,783 –9.95% 2024 496,793 66,143 562,936 –18.86% 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 ($43,000) are spent on support of the local public access channel. Under Indiana State law,the City is required to submit an Annual Franchise Fee Report (State Form 55122) summarizing franchise fee revenue received during the year and the purpose for which the revenue was expended. The report must be file with the Indiana Utility Regulatory Commission by March 1st of the following year. 245 Debt Capacity These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 246 City of South Bend, Indiana Computation of Legal Debt Margin For fiscal year ended December 31, 2024 Civil City Net Assessed Valuation (2024 pay 2025) of Taxable Property in South Bend 4,116,360,102$ Debt limit: 2% of one third thereof 27,442,401 Less Bonds subject to limitation: Economic Development Income Tax Bonds of 2015 (Parks Bond)(3,600,000) Economic Development Income Tax Bonds, Series 2018 (Zoo Bond)(2,410,000) General Obligation Bonds, Series 2018 (Fire Station #9)(3,775,000) Issuance Margin 17,657,401$ Percentage of Debt to Debt Limit 35.66% Park District Net Assessed Valuation (2024 pay 2025) of Taxable Property in South Bend 4,116,360,102$ Debt limit: 2% of one third thereof 27,442,401 Less Bonds subject to limitation: Park District Bonds, Series 2017 (A-K)(8,760,000) Issuance Margin 18,682,401$ Percentage of Debt to Debt Limit 31.92% Redevelopment District Net Assessed Valuation (2024 pay 2025) of Taxable Property in South Bend 4,116,360,102$ Debt limit: 2% of one third thereof 27,442,401 Less Bonds subject to limitation: Redevelopment District Bonds, Series 2018 (TIF Parks Bond) (7,385,000) Issuance Margin 20,057,401$ Percentage of Debt to Debt Limit 26.91% 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 Economic Development Income Tax 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. 247 City of South Bend, Indiana Legal Debt Margin Information 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Civil City Debt Limit (1)15,068,462$ 15,181,132$ 16,109,715$ 16,036,190$ 16,655,845$ 18,176,894$ 19,245,665$ 20,420,019$ 23,747,545$ 27,442,401$ Total Net Debt Applicable To Limit 7,270,000 5,835,000 5,190,000 13,390,000 12,900,000 12,315,000 11,710,000 11,080,000 10,565,000 9,785,000$ Debt Margin 7,798,462 9,346,132 10,919,715 2,646,190 3,755,845 5,861,894 7,535,665 9,340,019 13,182,545 17,657,401$ Percentage of Debt Limit 48.25%38.44%32.22%83.50%77.45%67.75%60.84%54.26%44.49%35.66% Park District Debt Limit (1)15,068,462$ 15,181,132$ 16,109,715$ 16,036,190$ 16,655,845$ 18,176,894$ 19,245,665$ 20,420,019$ 23,747,545$ 27,442,401$ Total Net Debt Applicable To Limit - - 14,075,000 13,725,000 12,955,000 12,170,000 8,760,000 10,515,000 9,650,000 8,760,000$ Debt Margin 15,068,462 15,181,132 2,034,715 2,311,190 3,700,845 6,006,894 10,485,665 9,905,019 14,097,545 18,682,401$ Percentage of Debt Limit 0.00%0.00%87.37%85.59%77.78%66.95%45.52%51.49%40.64%31.92% Redevelopment District Debt Limit (1)15,068,462$ 15,181,132$ 16,109,715$ 16,036,190$ 16,655,845$ 18,176,894$ 19,245,665$ 20,420,019$ 23,747,545$ 27,442,401$ Total Net Debt Applicable To Limit 2,615,000 2,210,000 1,795,000 12,955,000 11,855,000 10,725,000 7,385,000 8,865,000 8,140,000 7,385,000$ Debt Margin 12,453,462 12,971,132 14,314,715 3,081,190 4,800,845 7,451,894 11,860,665 11,555,019 15,607,545 20,057,401$ Percentage of Debt Limit 17.35%14.56%11.14%80.79%71.18%59.00%38.37%43.41%34.28%26.91% (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 Years 248 City of South Bend, Indiana Ratios of Outstanding Debt by Type South Bend South Bend General Financed Financed Total Debt Estimated DebtFiscalObligationRevenueMortgageNotes/Loans Purchased Revenue Mortgage Notes/Loans Purchase Primary Estimated Per Personal Percent ofYearBondsBondsBondsPayableAgreementsBondsBondsPayableAgreementsGovernmentPopulation (1)Capita Income (2)Income 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 3,371,120,096 7.03% 2017 14,081,478 111,887,531 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% 2018 18,737,645 120,483,913 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% 2019 18,010,537 122,084,649 10,659,268 3,761,150 11,959,268 71,235,075 120,368 2,016,089 4,763,272 244,609,677 101,168 2,418 3,492,622,864 7.00% 2020 17,005,155 118,820,313 8,389,572 3,405,904 13,712,755 64,329,826 40,771 1,816,433 3,113,163 230,633,892 103,453 2,229 3,571,507,919 6.46% 2021 15,950,563 118,765,880 6,345,096 3,079,026 12,889,298 58,574,841 - 220,712 2,394,205 218,219,621 103,453 2,109 3,571,507,919 6.11% 2022 14,886,850 121,492,119 4,568,552 2,781,851 14,679,571 50,638,747 - 196,030 2,590,360 211,834,080 103,453 2,048 3,571,507,919 5.93% 2023 13,625,000 137,750,067 3,450,000 2,478,630 16,257,166 40,725,000 - 170,517 2,957,005 217,413,385 103,453 2,102 3,571,507,919 6.09% 2024 12,515,000 196,997,659 3,170,000 2,169,315 18,860,747 58,243,439 - 144,144 4,129,217 296,229,521 103,453 2,863 3,571,507,919 8.29% Percent of total debt 4.22%66.50%1.07%0.73%6.37%19.66%0.00%0.05%1.39%100.00% Sources: City of South Bend Comprehensive Annual Financial Reports (1) U.S. Census Bureau, 2010 & 2020 Census information (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 Survey 5-Year Estimates (http://factfinder.census.gov/) Last Ten Fiscal Years Governmental Activities Business-Type Activities 0 $50 M $100 M $150 M $200 M $250 M 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Governmental Activities Debt FinancedPurchasedAgreements Notes/LoansPayable MortgageBonds RevenueBonds GeneralObligationBonds $20 M $40 M $60 M $80 M $100 M $120 M $140 M 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Business-Type Activities Debt PurchaseAgreements Notes/LoansPayable MortgageBonds RevenueBonds 249 City of South Bend, Indiana Computation of Direct and Overlapping Debt For fiscal year ended December 31, 2024 Percentage Amount Ratio of Debt/Ratio of Debt/ Gross Applicable to Applicable to Debt Per Net Assessed Personal Debt South Bend South Bend Capita Value Income Direct Debt: City of South Bend (1) General Obligation Bonds 12,515,000$ 100.00%12,515,000$ Revenue Bonds - Governmental Activities 196,839,738 100.00%196,839,738 Mortgage Bonds - Governmental Activities 3,170,000 100.00%3,170,000 Notes Payable - Governmental Activities 2,169,315 100.00%2,169,315 Finance Purchase Agreements - Governmental Activities 18,590,200 100.00%18,590,200 Total Direct Debt and Financed Purchase Agreement Debt 233,284,253$ 2,255$ 5.67%5.29% Overlapping Debt (2) Tax Supported Debt: St. Joseph County 140,393,411$ 30.26%42,483,046$ South Bend Community School Corporation 67,915,393 54.02%36,687,895 Penn-Harris-Madison School Corporation 75,313,601 2.31%1,739,744 Mishawaka-Penn-Harris Public Library 7,130,000 1.91%136,183 St. Joseph County Public Library 17,560,000 50.47%8,862,532 St. Joseph County Airport Authority 10,020,000 30.26%3,032,052 Total Tax Supported Debt 92,941,453 Total Overlapping Debt 92,941,453$ 898$ 2.26%2.11% Total Direct Debt and Financed Purchase Agreements and Overlapping and 326,225,706$ 3,153$ 7.93%7.39% Underlying Direct Debt and Lease Obligations Ratio Factors Net Assessed Valuation (2020 payable 2021)4,116,360,102$ Population - 2020 Census (3)103,453 South Bend Median Household Income 2020 (4)42,657$ Estimated South Bend Total Personal Income (3 x 4)4,412,994,621$ Sources: (1) City of South Bend Comprehensive Annual Financial Report (2) Overlapping debt percentages are based on the net assessed value of South Bend properties in proportion to the total net assessed value. Provided by Baker Tilly Municipal Advisors - Annual Information for Continuing Disclosure Compliance (3) U.S. Census Bureau, 2020 Census information (4) U.S. Census Bureau, 2016-2020 American Community Survey 5-Year Estimates (http://factfinder.census.gov/) 250 City of South Bend, Indiana Last Ten Fiscal Years Total Ratio of Debt Service Fiscal Total Debt Governmental Fund To Governmental Fund Year Principal Interest Service Expenditures Expenditures 2015 - - - 172,658,733 0.00% 2016 - - - 170,976,084 0.00% 2017 - - - 174,542,237 0.00% 2018 425,000 288,967 713,967 186,199,998 0.38% 2019 940,000 562,846 1,502,846 216,480,126 0.69% 2020 980,000 534,196 1,514,196 191,440,960 0.79% 2021 1,030,000 504,496 1,534,496 181,832,209 0.84% 2022 1,040,000 473,521 1,513,521 210,947,917 0.72% 2023 1,080,000 442,021 1,522,021 267,783,413 0.57% 2024 1,110,000 394,367 1,504,367 286,369,573 0.53% 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 251 City of South Bend, Indiana Last Ten Fiscal Years Percent of Net Gross Debt Service Net G.O. Bonded Debt Net G.O. Tax Year/Net Assessed General Obligation Monies General Obligation To Net Assessed Bonded Debt Collection Year Population (1)Value Bonded Debt Available Bonded Debt Value Per Capita 2014/2015 101,168 2,260,269,318 - - - 0.00%- 2015/2016 101,168 2,277,169,743 - - - 0.00%- 2016/2017 101,168 2,327,500,241 14,081,478 - 14,081,478 0.61%139 2017/2018 101,168 2,416,457,221 18,737,645 - 18,737,645 0.78%185 2018/2019 101,168 2,770,936,681 18,010,537 - 18,010,537 0.65%178 2019/2020 103,453 2,726,534,082 17,005,155 - 17,005,155 0.62%164 2020/2021 103,453 - 15,950,563 - 15,950,563 #DIV/0!154 2021/2022 103,453 3,063,002,911 14,886,850 - 14,886,850 0.49%144 2022/2023 103,453 3,562,131,680 13,625,000 - 13,625,000 0.38%132 2023/2024 103,453 4,116,360,102 12,515,000 - 12,400,000 0.30%120 (1) U.S. Census Bureau, 2010 & 2020 Census information Source: City of South Bend Comprehensive Annual Financial Reports Ratio of Net General Obligation Bonded Debt to Net Assessed Valuation and Net Bonded Debt Per Capita 252 City of South Bend, Indiana St. Joseph County Hotel/Motel Tax Board Pledged Revenue Coverage Last Ten Fiscal Years Annual Debt Service Payments (1) 2013 2015 2022 2022 Unrestricted Century Center Century Center Morris Peforming Potawatomi ZooHotel/Motel Tax Refunding Energy Conservation Arts Center Economic Develop.Total Annual Debt Year Revenues Bonds Bonds Revenue Bonds Revenue Bonds Debt Service Excess Funds Coverage 2015 4,749,836 392,688 - 392,688 4,357,149 1209.57% 2016 4,930,183 387,613 236,132 623,744 4,306,439 790.42% 2017 5,239,133 385,813 191,297 577,109 4,662,024 907.82% 2018 5,679,728 386,713 305,736 692,449 4,987,279 820.24% 2019 5,766,555 390,413 415,423 805,836 4,960,719 715.60% 2020 3,454,156 388,556 411,096 799,653 2,654,503 431.96% 2021 5,818,371 390,713 406,711 797,423 5,020,948 729.65% 2022 8,816,030 386,425 402,367 185,046 189,476 1,163,314 7,652,716 757.84% 2023 10,181,885 386,075 397,599 378,825 375,963 1,538,462 8,643,423 661.82% 2024 10,049,446 385,000 221,437 373,125 377,263 1,356,825 8,692,621 740.66% (1) Debt service includes principal and interest payments Sources: St. Joseph County Hotel/Motel Tax Board financial reports City of South Bend Accounting Records 253 City of South Bend, Indiana Last Ten Years Gross Net Revenue Operating Operating Available for Debt Year Revenues (1)Expenses (2)Debt Service Principal (3)Interest Total Coverage 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 2,800,735 925,031 3,725,767 197.74% 2020 21,536,290 13,194,357 8,341,933 1,058,099 442,037 1,500,136 556.08% 2021 21,475,588 14,060,542 7,415,046 1,390,548 424,213 1,814,761 408.60% 2022 20,849,578 15,466,529 5,383,049 1,449,987 392,422 1,842,409 292.17% 2023 21,922,958 19,067,255 2,855,703 1,045,513 354,962 1,400,475 203.91% 2024 22,404,163 19,291,980 3,112,183 786,373 187,226 973,599 319.66% (1) Operating revenues used to make debt service payments is obtained primarily through monthly user charges to water customers. (2) Operating expenses exclude depreciation. (3) Bonds were refunded in 2019. The principal repayment is not included in the principal total for 2019. Sources: City of South Bend Comprehensive Annual Financial Reports City of South Bend Accounting Records Debt Service Requirements Schedule of Revenue Bond Coverage Water Utility Bonds 254 City of South Bend, Indiana Last Ten Years Gross Net Revenue Operating Operating Available for Debt Year Revenues (1)Expenses (2)Debt Service Principal (3)Interest Total Coverage 2015 36,635,501 13,557,598 23,077,903 4,691,336 3,419,351 8,110,687 284.54% 2016 39,061,562 16,920,370 22,141,192 7,522,453 2,342,132 9,864,586 224.45% 2017 38,794,212 22,942,677 15,851,535 7,666,400 2,197,813 9,864,213 160.70% 2018 39,931,429 16,218,116 23,713,313 7,892,085 2,052,348 9,944,433 238.46% 2019 42,455,078 22,828,605 19,626,473 6,652,079 1,873,664 8,525,743 230.20% 2020 39,653,436 20,625,437 19,027,999 5,791,557 1,501,575 7,293,132 260.90% 2021 41,492,806 27,594,387 13,898,419 5,440,004 1,625,439 7,065,443 196.71% 2022 42,680,236 22,353,082 20,327,154 6,463,482 1,210,699 7,674,181 264.88% 2023 44,725,771 28,983,363 15,742,408 6,420,000 1,074,541 7,494,541 210.05% 2024 46,147,954 36,280,616 9,867,338 6,580,000 1,041,145 7,621,145 129.47% (1) Operating revenues used to make debt service payments is obtained primarily through monthly user charges to sewer customers. (2) Operating expenses exclude depreciation. (3) Bonds were refunded in 2015 and 2021. The principal repayments are not included in the principal total for these years. Sources: City of South Bend Comprehensive Annual Financial Reports City of South Bend Accounting Records Debt Service Requirements Schedule of Revenue Bond Coverage Wastewater Utility Bonds 255 City of South Bend, Indiana Municipal Sewage Works Last Ten Years Annual Wastewater Flow Data 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Capacity (MGD) *48 48 48 48 48 48 48 48 48 48 Average Daily Flow (MGD)30.20 43.87 35.80 38.47 37.73 31.87 29.20 27.18 30.57 30.28 Peak Flow (MGD)57.70 67.80 62.40 71.00 71.20 71.70 55.70 55.00 60.90 65 Annual Flow (MG)11,023 16,014 13,067 14,042 13,077 11,630 10,657 10,491 10,904 11,082 Number of Customers - South Bend Municipal Sewage Works Year Total Number of Customers 2015 39,763 2016 40,073 2017 40,543 2018 40,679 2019 40,547 2020 41,154 2021 41,645 2022 42,328 2023 42,264 2024 42,413 Source: City of South Bend Utilities * Short-term peak design capacity is 77 mllions of gallons per day (MGD), actual long-term sustainable capacity is 48 MGD. 256 City of South Bend, Indiana Statement of City-Owned Utility Debt For fiscal year ended December 31, 2024 South Bend Municipal Water Utility Water Works State Revolving Fund (SRF) Loan of 2009 144,144$ Water Works Revenue Bonds of 2012 3,860,000 Water Works Refunding Revenue Bonds of 2016 630,000 Amended Water Works Revenue Bonds of 2009, Series B 2,025,000 Total Water Utility Debt 6,659,144$ South Bend Municipal Wastewater Utility Sewage Works Revenue Bonds of 2012 11,725,000$ Sewage Works Refunding Revenue Bonds of 2015 3,025,000 Sewage Works Refunding Revenue Bonds of 2020 3,025,000 Sewage Works Refunding Revenue Bonds of 2021 8,795,000 Sewage Work State Revolving Fund Loan of 2023 32,150,000 Water Works State Revolving Fund Loan of 2024 10,743,000 Water Works State Revolving Fund Loan of 2024 BAN 3,900,000 Total Sewage Utility Debt 58,720,000 Total Utility Debt 65,379,144$ Source: City of South Bend Accounting Records 257 City of South Bend, Indiana Operating Revenues 22,404,163$ Less: Operation and Maintenance Expenses (Net of Depreciation)(19,291,980) Net Revenues Available for Debt Service 3,112,183 Estimated Combined Maximum Annual Debt Service 973,599 Coverage - $2,138,584$ Coverage - %319.66% For fiscal year ended December 31, 2024 Estimated Debt Service Coverage Calculation Water Utility 258 City of South Bend, Indiana Operating Revenues 46,147,954$ Less: Operation and Maintenance Expenses (Net of Depreciation)(36,280,616) Net Revenues Available for Debt Service 9,867,338 Estimated Combined Annual Debt Service 7,621,145 Coverage - $2,246,193$ Coverage - %129.47% For fiscal year ended December 31, 2024 Estimated Debt Service Coverage Calculation Wastewater Utility 259 City of South Bend, Indiana Projected Local Income Tax Revenues Certified Shares Component 0.6% Certified Shares Tax Rate Levy is used to Distribute City of South Bend's Projected Amount Year of St. Joseph County Estimated Portion Available ForCollectionProjected Distribution of Projected Distribution Debt Service 2024 36,501,371$ 34.39%12,554,287$ 2025 37,231,398 34.16%12,718,246 2026 37,976,026 34.16%12,972,611 2027 38,735,547 34.16%13,232,063 2028 39,510,258 34.16%13,496,704 2029 40,300,463 34.16%13,766,638 2030 41,106,472 34.16%14,041,971 2031 41,928,602 34.16%14,322,810 2032 42,767,174 34.16%14,609,267 2033 43,622,517 34.16%14,901,452 Total 136,616,048$ Estimated 2% increase to distributions due to improving economic conditions. Source: Department of Local Government Finance (DLGF) 260 City of South Bend, Indiana Projected Local Income Tax Revenues Economic Development Component 0.4% Economic Development Tax Rate Levy is used to Distribute City of South Bend's Projected Amount Year of St. Joseph County Estimated Portion Available ForCollectionProjected Distribution of Projected Distribution Debt Service 2024 40,602,192$ 41.61%16,896,469$ 2025 41,414,236 41.47%17,174,484 2026 42,242,521 41.47%17,517,973 2027 43,087,371 41.47%17,868,333 2028 43,949,118 41.47%18,225,699 2029 44,828,101 41.47%18,590,213 2030 45,724,663 41.47%18,962,018 2031 46,639,156 41.47%19,341,258 2032 47,571,939 41.47%19,728,083 2033 48,523,378 41.47%20,122,645 Total 184,427,175$ Estimated 2% increase to distributions due to improving economic conditions. Source: Department of Local Government Finance (DLGF) 261 City of South Bend, Indiana Projected Local Income Tax Revenues Public Safety Component 0.25% Public Safety Tax Rate City of South Bend's Projected Amount Year of St. Joseph County Estimated Portion Available ForCollectionProjected Distribution of Projected Distribution Debt Service 2024 25,376,370$ 47.24%11,988,584$ 2025 25,883,897 47.88%11,988,584 2026 26,401,575 47.88%12,641,074 2027 26,929,607 47.88%12,893,896 2028 27,468,199 47.88%13,151,774 2029 28,017,563 47.88%13,414,809 2030 28,577,914 47.88%13,683,105 2031 29,149,473 47.88%13,956,767 2032 29,732,462 47.88%14,235,903 2033 30,327,111 47.88%14,520,621 Total 132,475,117$ Estimated 2% increase to distributions due to improving economic conditions. Source: Department of Local Government Finance (DLGF) 262 City of South Bend, Indiana Local Income Tax - Certified Shares Component City of South Bend Projected Certified Shares Estimated Local Income Tax Total Debt Excess EstimatedYearRevenuesPaymentsFundsCoverage 2024 12,554,287$ -$ 12,554,287$ n/a 2025 12,805,373 - 12,805,373 n/a 2026 13,061,480 - 13,061,480 n/a 2027 13,322,710 - 13,322,710 n/a 2028 13,589,164 - 13,589,164 n/a 2029 13,860,947 - 13,860,947 n/a 2030 14,138,166 - 14,138,166 n/a 2031 14,420,930 - 14,420,930 n/a 2032 14,709,348 - 14,709,348 n/a 2033 15,003,535 - 15,003,535 n/a 2034 15,303,606 - 15,303,606 n/a 2035 15,609,678 - 15,609,678 n/a 2036 15,921,871 - 15,921,871 n/a 2037 16,240,309 - 16,240,309 n/a 2038 16,565,115 - 16,565,115 n/a 2039 16,896,417 - 16,896,417 n/a 2040 17,234,346 - 17,234,346 n/a Total 251,237,282$ -$ 251,237,282$ Source: City of South Bend Accounting Records Statement of Estimated Cash Flow and Debt Service Coverage 263 City of South Bend, Indiana Statement of Estimated Cash Flow and Debt Service Coverage Local Income Tax - Economic Development Component City of South Bend South Bend Projected Building Corporation Economic Develop.2015 EDIT 2018 EDIT 2021 Lease Rental Estimated Local Income Tax Revenue Bonds Revenue Bonds Revenue Bonds Total Debt Excess Estimated Year Revenues (Park Projects)(Potawatomi Zoo Project)(Infrastructure Projects)Payments (1)Funds Coverage 2024 16,896,469 368,381 326,500 640,300 1,335,181 15,561,288 1265.48% 2025 17,174,484 381,031 318,000 643,900 1,342,931 15,831,552 1278.88% 2026 17,517,973 373,231 327,750 646,700 1,347,681 16,170,292 1299.86% 2027 17,868,333 375,356 321,750 643,700 1,340,806 16,527,526 1332.66% 2028 18,225,699 377,181 325,375 640,200 1,342,756 16,882,943 1357.33% 2029 18,590,213 383,616 318,250 641,000 1,342,866 17,247,348 1384.37% 2030 18,962,018 384,038 320,750 641,000 1,345,788 17,616,230 1408.99% 2031 19,341,258 388,463 322,625 640,200 1,351,288 17,989,971 1431.32% 2032 19,728,083 387,175 318,750 639,975 1,345,900 18,382,183 1465.79% 2033 20,122,645 389,813 324,250 643,175 1,357,238 18,765,407 1482.62% 2034 20,525,098 391,781 158,875 645,775 1,196,431 19,328,666 1715.53% 2035 20,935,600 593,094 - 647,775 1,240,869 19,694,731 1687.17% 2036 21,354,312 - - 644,175 644,175 20,710,137 3314.99% 2037 21,781,398 - - - - 21,781,398 n/a 2038 22,217,026 - - - - 22,217,026 n/a 2039 22,661,366 - - - - 22,661,366 n/a 2040 23,114,594 - - - - 23,114,594 n/a Total 337,016,568$ 4,793,159$ 3,382,875$ 8,357,875$ 16,533,909$ 320,482,659$ (1) Debt payments include principal and interest. Source: City of South Bend Accounting Records 264 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. 265 City of South Bend, Indiana South Bend South Bend Metropolitan Metro Area South Bend City of City of Percent Area Percent Total Personal Percent Metro Area Percent City of South Bend Percent South Bend Increase/Median Family Increase/Income (3)Increase/Per Capita Increase/South Bend Public School Increase/ Year Population (1)(Decrease)Income (2)(Decrease)(Millions)(Decrease)Income (3)(Decrease)Median Age (4)Enrollment (5)(Decrease) 2015 101,168 34,656 13,560 42,362 34.0 18,680 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 101,168 0.00%32,511 –9.08%15,232 3.62%47,244 3.42%32.8 16,725 –2.90% 2020 103,453 2.26%41,599 27.95%23,392 53.57%41,599 –11.95%34.7 15,906 –4.90% 2021 103,453 0.00%42,657 2.54%24,969 6.74%42,657 2.54%33.7 16,297 2.46% 2022 104,523 1.03%46,002 7.84%28,408 13.77%50,248 17.80%36.7 16,297 0.00% 2023 105,984 1.40%60,772 32.11%N/A 0.00%33,632 –33.07%33.9 15,964 –2.04% 2024 103,713 –2.14%55,767 –8.24%N/A - 31,528 –6.26%36.1 14,486 –9.26% Sources: (1) U.S. Census Bureau, 2010 & 2020 Census information (http://factfinder.census.gov/) (2) U.S. Census Bureau, 2016-2020 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/). (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/) (6) Website Updated - now data.census.gov/ Demographic Statistics Last Ten Years Personal 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. 266 City of South Bend, Indiana 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) 2015 156,971 7,291 4.64% 2016 159,085 1.35%6,694 –8.19%4.21% 2017 159,240 0.10%5,689 –15.01%3.57% 2018 161,816 1.62%5,937 4.36%3.67% 2019 162,013 0.12%5,609 –5.52%3.46% 2020 158,137 –2.39%8,829 57.41%5.58% 2021 157,854 –0.18%5,110 –42.12%3.24% 2022 155,679 –1.38%5,555 8.71%3.57% 2023 156,574 0.57%6,181 11.27%3.95% 2024 148,687 –5.04%7,296 18.04%4.91% Source: Demographic Statistics (Continued) Last Ten Years (1)Bureau of Labor Statistics, Local Area Unemployment Statistics: South Bend-Mishawaka IN-MI Metropolitan Statistical Area (https://www.bls.gov/lau/metrossa.htm) - December of each year 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. 267 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. 268 City of South Bend, Indiana Last Ten Fiscal Years Function/ Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police: Physical arrests 2,483 2,342 2,229 2,664 2,028 1,785 1,875 1,792 2,563 2,505 Parking violations 691 480 919 548 293 662 649 410 154 224 Traffic violations 4,327 6,437 4,701 2,580 2,038 1,802 923 1,044 2,146 2,421 Fire: Emergency responses 15,340 15,886 16,829 22,659 22,166 21,958 18,003 24,096 23,914 23,966 Fires extinguished 213 236 339 278 393 360 290 380 382 565 Inspections 3,778 2,148 2,522 3,525 24 634 1,450 1,726 2,126 4,545 Refuse collection: Refuse collected (tons per day) (1)149 139 142 142 148 170 162 147 152 157 Other public works: Street resurfacing (miles)17 20 19 21 21 21 19 19 19 21 Potholes repaired (tonnage)526 462 363 476 878 365 317 440 450 476 Parks and recreation: Athletic field permits issued 113 427 142 103 428 428 347 502 616 151 Fitness Center Admissions 64,547 67,294 73,405 68,306 71,262 65,432 84,748 98,315 104,002 101,081 Water: New billable housing starts 108 189 214 119 149 107 159 129 167 232 Water mains breaks 99 53 45 67 86 48 89 85 44 78 Average daily consumption 14,500 14,640 14,358 14,640 14,400 14,866 11,294 10,868 11,193 10,983 (thousands of gallons) Wastewater: Average daily sewage treatment 30,200 43,874 35,800 37,110 37,730 31,870 34,559 34,869 30,570 30,280 (thousands of gallons) Source: City of South Bend Departments Operating Indicators by Function/Program As of December 31, 269 City of South Bend, Indiana Capital Asset and Infrastructure Statistics by Function/Program Last Ten Fiscal Years Function/program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 19 19 19 19 19 19 19 19 19 19 Fire Stations 11 11 11 11 11 11 11 11 11 11 Training Center 1 1 1 1 1 1 1 1 1 1 Rescue units 33 33 33 33 33 33 33 33 33 33 Refuse collection Collection trucks 19 19 19 19 19 19 18 19 21 24 Other public works Streets (miles)525 525 525 525 525 525 525 525 525 525 Streetlights 3,000 3,015 3,015 3,015 3,015 3,056 3,056 3,713 3,713 3713 Traffic signals 162 158 164 163 163 160 160 160 160 160 Parks and recreation Acreage 1,292 1,292 1,292 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Playgrounds 23 23 23 23 23 37 37 37 37 37 Baseball/softball diamonds 27 27 27 27 27 23 23 23 23 24 Soccer/football fields 19 19 19 19 19 19 19 19 19 19 Swimming pools 2 2 2 2 2 2 2 2 2 2 Splash Pads 6 6 7 8 8 9 9 9 9 9 Community center 3 3 3 4 4 6 6 6 6 6 Water Water mains (miles)583 583 583 586 587 587 587 587 623 612 Fire hydrants 5,448 5,439 5,459 5,539 5,550 5,647 5,647 4,606 4,673 4727 Storage capacity (thousands of gallons)17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17300 Wastewater Sanitary sewers (miles)527 527 527 535 537 251 246 246 541 541 Storm sewers (miles)133 133 155 155 155 156 193 193 204 204 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 Source: City of South Bend Departments As of December 31, 270 City of South Bend, Indiana New Construction - Number of Permits and Property Values Last Ten Fiscal Years (Dollar Amounts in 000's) Residential Commercial Manufacturing Number of Value Number of Value Number of Value Total Value Percent Year Permits ($ in 000's)Permits ($ in 000's)Permits ($ in 000's)($ in 000's)Change 2015 (1)77 18,615 70 415,219 6 28,460 462,294 2016 61 15,215 22 53,622 -- 68,837 –85.11% 2017 88 23,195 13 17,843 -466 41,504 –39.71% 2018 92 26,069 19 41,335 -- 67,404 62.40% 2019 85 23,322 17 72,746 1 60,000 156,068 131.54% 2020 45 13,846 16 19,037 -21,000 53,883 –65.47% 2021 89 30,996 13 28,022 1 6,705 65,723 21.97% 2022 93 33,457 33 138,526 -- 171,983 161.68% 2023 259 132,512 49 298,141 5 2,930 433,583 152.11% 2024 153 93,560 18 24,703 -- 118,263 –72.72% Source: Consolidated City/County Building Department 271 City of South Bend, Indiana Activity 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government: Mayor's Office 7 7 6 7 7 7 9 12 9 9 Community Police Review Board 1 City Clerk's Office 5 5 5 5 5 4 5 4 5 3 Common Council (elected officials, part-time)9 9 9 9 9 9 9 9 9 9 Administration and Finance (1), (2)21 22 22 21 23 23 20 17 18 20 Human Resources (1) - - - - - - 6 5 6 5 Diversity & Inclusion (1) - - - - - - 3 3 2 3 Human Rights 6 5 5 5 4 5 5 6 2 4 Legal Department 10 11 10 10 11 10 12 10 12 13 Engineering 16 18 18 23 21 24 23 25 24 25 Office of Sustainability - - - 1 2 2 1 1 1 2 Safety and Risk 1 2 2 2 2 1 - - - - 311 Call Center 7 - - - - - - - - - Public Safety: Police Department 300 287 285 283 270 271 267 294 302 291 Communication Center - - - - - - - - - Fire Department 259 268 272 262 265 257 256 254 245 262 Culture and Recreation: Parks and Recreation (3)88 89 94 90 94 91 86 83 92 99 Convention and Events Management 14 12 9 10 11 9 9 9 7 6 Economic Development: Department of Community Investment 25 23 22 24 28 29 27 33 33 31 Neighborhood Services (4) -4 4 4 4 34 32 27 19 31 Highways and Streets: Streets Division / Traffic & Lighting 50 46 53 54 56 58 57 51 50 55 Enterprise Funds: Water Works 67 66 66 63 63 63 62 65 66 55 Wastewater 43 44 44 42 43 42 40 42 40 42 Organic Resources 6 6 6 6 6 6 6 6 6 7 Sewer 36 37 41 39 41 41 40 35 32 33 Solid Waste 25 29 23 22 23 22 22 24 25 24 Building Department 13 14 14 15 13 15 16 14 15 16 Code Enforcement/Animal Resource Center (4)23 18 25 26 27 - - - - - Century Center - - - 8 6 5 5 5 4 6 Internal Service Fund: 311 Call Center -6 6 7 7 7 7 8 8 15 Innovation & Technology (2) -- 17 20 21 22 22 21 24 30 Central Services Fund 38 40 41 39 37 35 31 31 30 35 Total Positions 1,069 1,068 1,099 1,097 1,099 1,092 1,078 1,094 1,086 1,132 Source: City of South Bend Personnel Records (1) Human Resources and Diversity & Inclusion were formerly part of the Department of Administration & Finance (2) Innovation & Technology was formerly part of the Department of Administration & Finance(3) Potawatomi Zoo employees (33) became employees of the Potawatomi Zoological Society through a public-private partnership as of January 1, 2014. (4) Code Enforcement and Animal Resource Center moved from an Enterprise to a Governmental fund in 2020 Last Ten Fiscal Years Full-Time City Government Employees by Department As of December 31, 272 City of South Bend, Indiana Activity 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government 79 77 83 84 85 93 92 88 94 104 Public Safety 559 555 557 545 535 528 523 548 547 553 Culture and Recreation 102 101 103 100 105 100 95 92 99 111 Economic Development 25 27 26 28 32 63 59 60 52 80 Highways and Streets 50 46 53 54 56 58 57 51 50 55 Enterprise Funds 213 214 219 221 222 194 191 191 188 195 Internal Service Funds 38 46 64 66 65 64 60 60 62 80 Total Positions 1,066 1,066 1,105 1,098 1,100 1,100 1,077 1,090 1,092 1,178 Source: City of South Bend Personnel Records - Excludes seasonal, part-time, and temporary positions Last Ten Fiscal Years As of December 31, Full-Time City Government Employees by Department (Continued) 104 553 111 80 55 195 80 Full-Time Employees as of December 31, 2024 1,000 1,020 1,040 1,060 1,080 1,100 1,120 1,140 1,160 1,180 1,200 Full-Time Employees at Year-End 273 City of South Bend, Indiana Year Percent Base Salary Percent Base Salary Non-bargaining Teamsters 1993 0.44%21,300 5.00%21,912 4.24%0.00% 1994 2.35%21,800 0.00%21,912 1.5% + $300 bonus .15¢ per hour 1995 4.82%22,850 3.00%22,569 1.5% + $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 $750/0%.38¢ per hour 2008 3.50%43,496 3.50%43,285 3.00%3.00% 2009 2.20%44,453 2.00%44,150 2.00%2.00% 2010 0.00%44,453 6.80%47,150 2.00%2.00% 2011 11.50%49,563 4.06%49,066 2.00%0.00% 2012 2.00%50,554 2.00%50,047 2.00%2.00% 2013 2.50%51,818 3.00%51,550 2.00%2.00% 2014 2.50%53,113 3.00%53,100 2.00%2.00% 2015 2.20%54,281 2.20%54,268 2.00%2.00% 2016 2.20%55,475 2.20%55,462 2.00%2.00% 2017 2.50%56,861 2.20%56,682 2.00%1% and 1.5% INPRS Contribution 2018 2.00%57,998 2.00%57,957 2.00%0.75% and 1.5% INPRS Contribution 2019 2.00%59,158 2.00%59,116 2.00%0.75% and 1.5% INPRS Contribution 2020 2.00%60,341 2.00%60,298 2.00%0.75% and 1.5% INPRS Contribution 2021 5.00%63,358 2.00%61,505 0.30%1% and 1.5% INPRS Contribution 2022 3.50%65,579 3.50%63,658 2.50%2.5% and 1.5% INPRS Contribution 2023 8.00%70,822 3.00%65,249 3.00%2.0% and 1.5% INPRS Contribution20244.25%77154 2.00%66,717 3.00%2.0% and 1.5% INPRS Contribution Salary Rate Comparison 1993 through 2024 ---1st Class Fire Fighter-------1st Class Patrol Officer--- 274 City of South Bend, Indiana Limits of Type of Coverage Liability Liability Comprehensive General Liability Statutory Police Professional Liability Statutory Ambulance Malpractice Liability Statutory Premises Liability Statutory (Clay Utilities, Century Center, Parking Garages) CGL - Stadium Statutory Liquor Liability 1/1/24-1/1/25 1,000,000$ 5,191$ Premium Crime Public Employee Dishonesty 12/31/23-12/31/24 2,000,000$ 13,591$ Premium Property 7/1/24-7/1/25 All risk blanket building & contents 1,000,000$ 749,323$ 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 1/15/24-1/15/25 870,000$ 8,028$ Premium Eddy Street Commons Parking Garage 1/1/24-1/1/25 Building & Infrastructure 36,000,000$ 31,379$ Premium Business Income & Rental Value 15,000,000$ Flood 25,000,000$ Other 1/1/24-1/1/25 Workers Compensation Statutory Third Party Fee Statutory 58,000$ Fee Excess Over Self-insured Statutory 154,876$ Premium/Fee $500,000/$700,000 Retention Each Accident Sources: City of South Bend Administration & Finance Department Gibson Insurance Company Self-Insured Insurance Coverage 2024 Estimated Annual Premium 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 275 City of South Bend, Indiana 2021 2022 2023 2024 2021 2022 2023 2024 Authorized Officers 232 242 250 253 Traffic Signals 160 160 160 160 Vehicles 333 333 333 333 Street Lights (City maintained)3,056 3,056 3,713 3713 Special Officer Groups:Miles of Streets 525 525 525 525 K-9 Patrols 7 7 7 7 Miles of Sidewalks 707 707 707 707 SWAT Team 18 18 18 21 Miles of Alleys 398 398 398 398 Stategic Focus Unit 12 12 12 13 Miles of Sanitary Sewers and Storm Drains 632 632 745 745 Motorcycle Patrol Officers 8 8 7 8 City Owned Vehicles & Related Units 1,132 1,133 N/A N/A Bomb Squad 3 6 6 6 Community Resource Offices 1 2 3 3 Crime Data: Murders 19 25 23 7 2021 2022 2023 2024 Rapes 70 64 63 75 Work orders for sign maintenance, Robbery 355 318 253 206 installation or removal 2,020 1,840 1,650 2,289 Aggravated Assault 1,997 1,360 1,221 1,111 Miles of yellow and white paint - n/a n/a n/a Residential Burglary 475 466 489 394 Pre-formed plastic arrows used for Non-residential Burglary 190 328 256 179 street markings - 30 50 65 Larceny 2,587 2,415 2,255 2,031 Crosswalk painting at intersections 30 20 300 200 Auto Theft 631 547 470 492 Temporary No Parking postings - n/a n/a na Arson 34 41 31 50 Railroad Crossings 6 2 15 8 Calls for Service/Dispatches 92,818 92,136 101,582 102,085 Special Signs Built 200 500 290 200 Miles Driven 1,885,132 2,107,534 2,377,899 2,442,144 Arrests 1,875 1,792 2,563 2,505 Barricades set up for events (# of events):30 n/a n/a n/a Block Parties 10 18 10 11 2021 2022 2023 2024 2021 2022 2023 2024 Sworn Firefighters Customers 40,794 40,832 42,264 42413 (46 of which are Paramedics)256 256 256 253 Dry Tons of Sludge produced per year 2,581 2,587 2,664 3111.5 Fire Apparatus 20 20 20 20 Miles of Sanitary Sewer Lines 246 246 541 541 Hazardous Materials Truck 1 1 1 1 Miles of Storm Sewer Lines 193 193 204 204 Reserve Pumper Trucks 3 3 3 3 Miles of Combined Lines (not separated)293 293 293 293 Reserve Ladder Trucks 3 3 3 3 River Rescue Boats 3 3 3 3 Ambulances 4 4 4 1 Neonatal (Newborn) Units - - 2021 2022 2023 2024 Fire Runs 4,765 6,566 6,093 6,101 Customers/Meters 42,333 42,968 42,968 42,430 Ambulance Runs 13,238 17,513 17,821 17,865 Irrigation Customers 2,805 2,967 2,967 3,106 Wells/Pumps in service 30 29 29 29 Pumping Capacity 47.2 m.g.d.53.7 m.g.d.53.7 m.g.d.53.7 m.g.d. Daily Consumption 14.6 m.g.d.14.7 m.g.d.14.7 m.g.d.14.7 m.p.d. Peak Demand 24.96 m.g.d.27.05m.g.d.27.05m.g.d.24.8 m.p.d. Miles of Distribution Systems 587 535 535 611 Fire Hydrants 5,647 4,606 4,606 4,727 Source: City of South Bend Departments Miscellaneous Statistics Sewer Utility Water Utility Police Department Fire Department Department of Public Works Sign Shop 276 City of South Bend, Indiana Passenger Volume:Century Center 100,000 square feet of event space Airline South Shore Bus to O'Hare/2,270 max available seating Year Enplanements Train Midway 569 seat theater 2018 368,877 246,641 27,044 Morris Performing Arts Center 2,041 available seating 2019 417,929 236,274 25,803 Hotels/Motels 25 Hotels/Motels 2020 *211,744 82,600 - 3 Bed & Breakfasts 2021 341,645 141,895 - Major hotels and meeting rooms: 2022 364,772 166,935 - DoubleTree by Hilton facilities to seat 600 2023 411,562 145,202 - Waterford Estates Lodge facilities to seat 500 2024 451,184 201,569 - The Morris Inn facilities to seat 400 Aloft facilities to seat 150 The City of South Bend has excellent health care access at costs below the national average and the lowest in the Midwest region. The City has Commercial airlines with operations at South Bend one major hospital: International Airport (market share):2022 2023 2024 Beacon Health Systems (Memorial Hospital)526 beds Allegiant Air 30%28%27% Breeze Airways --1% Delta Connection 24%22%25% United Express 19%19%19%Access to: American 25%29%28% 3 Major Television Networks: NBC (WNDU), ABC (WBND), Charters/Nonscheduled 2%2%2%and CBS/FOX (WSBT) Total 100%100%100% 1 Public Broadcasting Television Station (WNIT) 2 Local Television Stations (WHME, WJSV) 1 Major Newspaper (The South Bend Tribune) 25 Radio Stations Transpo:2022 2023 2024 Motor Bus (Fixed Route)South Bend has been the home to the many distinguished individuals Route Miles 290 290 290 including the following persons: Ridership 1,096,886 1,191,741 1,191,741 Schuyler Colfax, 17th U.S. Vice President Miles of Service 1,348,238 1,385,969 1,385,969 John Fogerty, singer Revenue Miles 1,278,850 1,303,204 1,303,204 Michael Warren, actor Demand Response (ACCESS)Chad Everett, actor Ridership 60,520 61,079 N/A Sidney Pollack, actor/director Total Miles 338,949 325,965 N/A Knute Rockne, football coach Revenue Miles 289,448 28,891 N/A John Wooden, basketball coach Joe Kernan, former South Bend Mayor and Indiana Governor Ryan Newman, racecar driver Skylar Diggins, WNBA player 43 Trucking Lines, 33 Terminals Jaden Ivey, NBA player 4 Interstate Bus Lines Blake Wesley, NBA player 4 Major Rail Systems (freight and passenger) - Incorporated in 1865 - County Seat of St. Joseph County Enrollment - South Bend officially began under the name South Hold, but the name Universities and Colleges 2021-2022 2022-2023 2023-2024 was changed by the Post Office in 1830 to avoid confusion with other University of Notre Dame 13,139 13,105 13,174 communities that used that name. The name South Bend was used Indiana University at South Bend 4,449 4,326 4,446 because the City is located at the southernmost point of the St. Joseph Bethel University 1,339 1,292 3,521 River. Saint Mary's College 1,527 1,519 1,518 - Average High Temperature: Holy Cross College 468 434 547 January 32 degrees Fahrenheit July 78 degrees Fahrenheit Communications Famous Residents Other Miscellaneous Statistics (Continued) South Bend International Airport Convention Facilities Health Care On average, more than 2,000 airline passengers travel through South Bend International every day. * COVID 2020 - stay at home order 3/24/20 - 5/3/20 - Airlines Suspension in flights - through 2020 South Bend Public Transportation Corporation Other Transportation 277