HomeMy WebLinkAbout2015 Comprehensive Annual Financial ReportCITY OF SOUTH BEND
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF SOUTH BEND, INDIANA
Pete Buttigieg, Mayor
John Murphy, City Controller
Jennifer Hockenhull, Deputy City Controller
REPORT PREPARED BY THE CITY OF SOUTH BEND DEPARTMENT OF ADMINISTRATION AND FINANCE
FISCAL YEAR ENDING ON DECEMBER 31, 2015
City of South Bend, Indiana
Contents
Introductory Section
City Officials i
Controller's Letter of Transmittal ii-xii
Certificate of Achievement for Excellence in Financial Reporting xiii
Organization Chart xiv
Financial Section
Report Letter 1-3
Management's Discussion and Analysis 4-28
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position 29-30
Statement of Activities 31-32
Fund Financial Statements:
Governmental Funds:
Balance Sheet 33-34
Reconciliation of the Balance Sheet to the
Statement of Net Position 35
Statement of Revenue, Expenditures, and Changes in Fund Balances 36-37
Reconciliation of the Statement of Revenue, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 38
Proprietary Funds:
Statement of Net Position 39-40
Statement of Revenue, Expenses, and Changes in Net Position 41
Statement of Cash Flows 42-43
Fiduciary Funds:
Statement of Fiduciary Net Position 44
Statement of Changes in Fiduciary Net Position 45
Notes to Financial Statements46-103
City of South Bend, Indiana
Contents (Continued)
Required Supplemental Information 104
1925 Police Officers' Pension Plan:
Schedule of Investment Returns 105
Schedule of City Contributions 106
Schedule of Changes in the City Net Pension Liability and Related Ratios 107
1937 Firefighters' Pension Plan:
Schedule of Investment Returns 108
Schedule of City Contributions 109
Schedule of Changes in the City Net Pension Liability and Related Ratios 110
OPEB System Schedule 111
Public Employees' Retirement Fund:
Schedule of City Contributions 112
Schedule of the City's Proportionate Share of the Net Pension Liability 113
1977 Police Officers' Pension and Disability Fund
Schedule of City Contributions 114
Schedule of the City's Proportionate Share of the Net Pension Liability 115
1977 Firefighters' Pension and Disability Fund
Schedule of City Contributions 116
Schedule of the City's Proportionate Share of the Net Pension Liability 117
Budgetary Comparison Schedules - General Fund and Major Special Revenue
Funds:
General Fund 118-120
Park and Recreation Fund 121
Public Safety LOIT Fund 122
COIT Fund 123
EDIT Fund 124
Budget/GAAP Reconciliation 125
Notes to Required Supplemental Information 126-127
City of South Bend, Indiana
Contents (Continued)
Other Supplemental Information 128
Fund Descriptions 129-134
Combining Balance Sheet 135-145
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 146-157
Schedules of Revenue, Expenditures, and Changes in Fund Balances - Budget
and Actual 158-216
Nonmajor Enterprise Funds:
Fund Descriptions 217
Combining Statement of Net Position 218
Combining Statement of Revenue, Expenses, and Changes in
Net Position 219
Combining Statement of Cash Flows 220-221
Internal Service Funds:
Fund Descriptions 222
Combining Statement of Net Position 223
Combining Statement of Revenue, Expenses, and Changes in Net Position 224
Combining Statement of Cash Flows 225-226
Fiduciary Funds:
Fund Descriptions 227
Statement of Assets and Liabilities 228
Combining Statement of Changes in Fiduciary Net Position 229
Statement of Changes in Assets and Liabilities 230
City of South Bend, Indiana
Contents (Continued)
Statistical Section
Financial Trend Information:
Net Position by Component 231
Changes in Net Position 232-233
Fund Balances, Governmental Funds 234
Changes in Fund Balances, Governmental Funds 235
Revenue Capacity Information:
Property Tax Levies and Collections 236
Direct and Overlapping Property Tax Rates 237
Detail of Net Assessed Valuation 238
Assessed Value and Actual Value of Taxable Property 239
Net Assessed Value of Taxable Property 240
Assessed Value of Taxable Property 241
Property Tax Collections - Cash Basis 242
2015 Circut Breaker Property Tax Cap Credits 243
Principal Property Taxpayers 244
Local Option Income Tax Revenue (CEDIT)245
Local Option Income Tax Revenue (COIT)246
Local Option Income Tax Revenue (PS LOIT)247
Total County Income Tax Distributions by Taxing Unit 248
Ten Largest Water Customers 249
Ten Largest Sewage Works Customers 250
Gasoline Tax Collections - Cash Basis 251
Wheel and Excise Surtax Collections - Cash Basis 252
Hotel/Motel Tax Revenue - Cash Basis 253
Professional Sports Development Tax - Cash Basis 254
Cable Television Franchise Fee Collections - Cash Basis 255
Debt Capacity Information:
Computation of Legal Debt Margin 256
Legal Debt Margin Information 257
Ratios of Outstanding Debt by Type 258
Computation of Direct and Overlapping Debt 259
Ratio of Annual Debt Service Expenditures for General Obligation Bonded
Debt to Total General Government Expenditures 260
Ratio of Net General Obligation Bonded Debt to Assessed Value and Net
Bonded Debt Per Capita 261
St. Joseph County Hotel/Motel Tax Board Statement of Estimated Cash Flow
and Debt Service Coverage 262
Schedule of Revenue Bond Coverage - Water Utility Bonds 263
Schedule of Revenue Bond Coverage - Wastewater Utility Bonds 264
City of South Bend, Indiana
Contents (Continued)
Municipal Sewage Works Annual Wastewater Flow Data and Number of
Customers 265
Statement of City-Owned Utility Debt 266
Estimated Debt Service Coverage Calculation of Sewage Works 267
Estimated Debt Service Coverage Calculation of Water Utility 268
Projected City of South Bend COIT Revenue 269
Projected City of South Bend CEDIT Revenue 270
Statement of Estimated Cash Flow and Debt Service Coverage (COIT)271
Statement of Estimated Cash Flow and Debt Service Coverage (CEDIT)272
Estimated Tax Increment Revenue - Erskine Village Project 273
Demographic and Economic Information:
Demographic Statistics 274-275
Employment by Type and Industry 276
Comparison of Growth Rates in Personal Income for St. Joseph County, the
State of Indiana, and U.S. Personal Income 277
Principal Employers 278
Operating Information:
Operating Indicators by Function/Program 279
Capital Asset and Infrastructure Statistics by Function/Program 280
New Construction - Number of Permits and Property Values 281
Full-Time Equivalent City Government Employees by Department 282-283
Salary Rate Comparison 284
Insurance Coverage 285
Financial Institutions 286
Miscellaneous Statistics 287-288
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CITY OFFICIALS
Office Official Term
Mayor Pete Buttigieg 01-01-12 to 12-31-15
Controller John Murphy 01-03-14 to 12-31-15
City Clerk John Voorde 01-01-12 to 12-31-15
President of the Board of
Public Works Gary A. Gilot 01-01-12 to 12-31-14
Common Council Members
1st District Tim Scott 01-01-12 to 12-31-15
2nd District Henry Davis, Jr. 01-01-12 to 12-31-15
3rd District Valerie Schey 01-01-12 to 12-31-15
4th District Fred Ferlic 01-01-12 to 12-31-15
5th District David Varner 01-01-12 to 12-31-15
6th District Oliver Davis 01-01-12 to 12-31-15
At Large Karen L. White 01-01-12 to 12-31-15
At Large Derek D. Dieter 01-01-12 to 12-31-15
At Large Gavin Ferlic 01-01-12 to 12-31-15
1200N COUNTY-CITY BUILDING PHONE 574/ 235-7678
227 W. JEFFERSON BLVD. FAX 574/ 235-9928
SOUTH BEND, INDIANA 46601-1830
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CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
DEPARTMENT OF ADMINISTRATION AND FINANCE
June 30, 2016
The Honorable Pete Buttigieg, Mayor of the City of South Bend
Members of the City of South Bend Common Council
Residents of the City of South Bend:
The comprehensive annual financial report of the City of South Bend, Indiana (the "City") for
the year ended December 31, 2015 is hereby submitted. Responsibility for both the accuracy of
the data and the completeness and fairness of the presentation, including all disclosures, rests
with management. To the best of our knowledge and belief, the enclosed data is accurate in all
material respects and is reported in a manner designed to present fairly the financial position and
results of operations of the various funds of the City. All disclosures necessary to enable the
reader to gain an understanding of the government’s financial activities are included.
Generally Accepted Accounting Principles (GAAP) requires that management provide a
narrative introduction, overview and analysis to accompany the basic financial statements in the
form of the Management’s Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The City of
South Bend’s MD&A can be found immediately following the independent auditors’ report.
The Comprehensive Annual Financial Report is presented in four sections: introductory
information, financial information, statistical information and federal compliance information.
The introductory section includes this transmittal letter, the City’s organizational chart, a list of
principal City officials and the Certificate of Achievement for Excellence in Financial Reporting
awarded to the City of South Bend for the year ending December 31, 2014. 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.
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The City is required to undergo an annual single audit in conformity with the provisions of the
U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments
and Non-Profit Organizations, the provisions of Indiana Code section 5-11-1-9 and the
requirements of the Indiana State Board of Accounts. Information related to the single audit,
including the schedule of federal financial assistance, findings and recommendations, and the
auditors’ reports on the internal control structure and compliance with applicable laws and
regulations, is included in a separate report.
The following pages of this transmittal letter begin with a general overview of South Bend and
the surrounding area. Also summarized are the key financial, budgetary and property tax
controls with which the City is required to comply. The remainder includes a discussion of the
prior year’s financial challenges and accomplishments, the City’s goals and objectives for this
year and beyond and other key issues the City is facing along with the impact they may have on
current and future budgets.
GENERAL INFORMATION
The City of South Bend is the county seat of St. Joseph County, Indiana, and is the fourth largest
city in the state. The City of South Bend’s 2010 U.S. Bureau of the Census population was
101,168. Accordingly, South Bend is classified as a “City of the Second Class” under Indiana
statutes (cities with a population of 35,000 to 250,000). 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 provides a full range of traditional general governmental services to its citizens. These
services include police and fire protection; sanitation services; the construction and maintenance
of highways, streets and infrastructure; recreational activities and cultural events. In addition to
general governmental activities, the City exercises oversight over the South Bend Water Works,
the South Bend Wastewater Treatment Facility, the Century Center Convention Center, the
Morris Performing Arts Center, the Studebaker National Museum, the City of South Bend
Redevelopment Commission and Authority, and several downtown parking facilities.
Location
St. Joseph County lies within the heartland of the manufacturing belt and metropolitan regions of
the Upper Midwest and Canada. The City of South Bend is located in the north central part of
Indiana, ten miles south of the Michigan state line, and is commonly known to be within the
“Michiana” area. The Michiana area is a vibrant and diverse area with a strong economy based
on a mix of health care, agricultural, service, manufacturing, education and other commercial
and tourism industries. This diverse economic mix creates varied employment opportunities for
the area’s residents while providing insulation via diversification from future economic
downturns.
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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.
St. Joseph County / South Bend - Economic Conditions and Outlook
St. Joseph County, with its 2010 U.S. Bureau of the Census population of 266,931, boasts a
strong history of manufacturing which continues today. The service industry and retail trade
have also flourished, creating a balance that serves the community well. The County
experienced a net growth in population of 28,317 (11.8% increase) between 1960 and 2010.
After experiencing a reduction of 2.6% during 1969 to 1983, at which time the entire Midwest
was at the depth of its economic restructuring and recess, the County’s population increased
4.0% between 1983 and 1990 and another 7.5% between 1990 and 2000. The population of St.
Joseph County is expected to have experienced a modest increase to an estimated 268,441 in
2015.
The estimated labor force in St. Joseph County is 130,912 workers (Indiana Department of
Workforce Development 2015). The workers are typical of the Midwest: well-trained with a
strong work ethic. Approximately 88.4% of the area’s adult population (25 and older) are high
school graduates or higher (as compared to the national average of 88.4%) with an estimated
27.2% with a Bachelor’s Degree or higher. There are eleven colleges, universities and technical
schools within South Bend and the surrounding area including the University of Notre Dame,
Indiana University South Bend, Bethel College, Saint Mary’s College, Purdue University
College of Technology at South Bend, Holy Cross College, American National University, Trine
University South Bend, Brown Mackie College, ITT Technical Institute and Ivy Tech
Community College. At the high school level, there are school-to-work transition programs. For
2015, St. Joseph County experienced an average unemployment rate of 4.9%, near average when
compared to its surrounding counties—Elkhart (3.5%), LaPorte (5.9%), and Marshall (3.9%) in
Indiana and Cass (4.3%) and Berrien (4.6%) in Michigan. Indiana’s unemployment rate
averaged 5.4% in 2015.
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 (US Census Bureau 2010-2014 American Community Survey 5-Year Estimates Civilian
Employed Population):
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Economic Sector Number Employed % of Total
Educational Services, Healthcare, Social Assistance 33,971 27.8%
Manufacturing 20,359 16.7%
Retail Trade 14,010 11.5%
Arts, Entertainment, Recreation, Accommodation, 11,677 9.6%
Food Services
Professional, Scientific, Management, Administrative, 9,906 8.1%
Waste Management Services
Finance and Insurance, Real Estate, Rentals, Leasing 6,417 5.3%
Other Services, except Public Administration 5,735 4.7%
Construction 5,655 4.6%
Transportation and Warehousing, and Utilities 4,909 4.0%
Public Administration 3,618 3.0%
Wholesale Trade 3,560 2.9%
Information 1,757 1.4%
Agriculture, Forestry, Fishing, Hunting, Mining 500 0.4%
Total 122,074 100.0%
St. Joseph County presently has an estimated 101,759 households with an average per capita
personal income of $24,039, which compares to the State of Indiana average per capita income
of $24,058 and the United States per capita income of $28,051. The per capita income in St.
Joseph County compares favorably with most of its surrounding counties—Elkhart ($21,866), La
Porte ($23,278), and Marshall ($22,580) in Indiana and Cass ($23,045) and Berrien ($24,304) in
Michigan.
Health and education lead the employment statistics for St. Joseph County. The largest
employers in St. Joseph County as of December 2015 were as follows: Beacon Health Systems
(6,913), University of Notre Dame (5,590), South Bend Community School Corporation (2,880),
AM General (2,858), Trinity Health/St. Joseph Regional Medical Center (2,597), Honeywell
Aerospace (1,499), Indiana University – South Bend (1,445), Schurz Communication, Inc.
(1,000), St. Joseph County (1,064), and The City of South Bend (1,098).
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The Following Provides a Profile of the Residents of St. Joseph County (Census Estimates
for July 2014 – Latest Information Available):
Gender %, male/female: 48.5% male; 51.5% female
Age: 24.0% under 18
11.1% 18-24 years of age
24.9% 25-44 years of age
25.7% 45-64 years of age
14.3% 65 years of age and older
Race: 73.0% White
13.2% Black/African American
8.2% Hispanic/Latino
2.3% Asian
3.3% Other
Home Ownership: 68.4% own; 31.6% rent/other
The cost of living continues to be one of the greatest advantages of living in this community. The
housing costs in South Bend are well below the national and regional averages. Per a report
compiled by the National Association of Realtors in the first quarter of 2016, the median sales
price for a single family home in the South Bend-Mishawaka Statistical Area was $99,800 as
compared to a median sales price of $208,600 in Chicago, $149,800 in Grand Rapids, $115,300
in Ft. Wayne and $146,900 in Indianapolis. The Midwest median sales price is $167,900.
Between January 2015 and June 2016 the City of South Bend has seen approximately
$192,148,376 in private investment and the announcement of roughly 939 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. A highlight of 2016
is the implementation of the Smart Streets project with downtown streets undergoing
construction. City investments like these 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 18,680 students in grades pre-
kindergarten through 12. An estimated 5,367 students attend private or parochial schools within
the City. The ten institutions of higher education and technical training located within the South
Bend area have a total enrollment of approximately 31,000. 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.
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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. The name Studebaker became
synonymous with the area of South Bend and the company was 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, aerospace and household products. The Singer Sewing Company,
Birdsell Manufacturing and the Oliver Chilled Plow Works were other important companies
during the early history of South Bend.
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 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 and the Oliver family Mansion, Copshaholm,
Century Center, Potawatomi Zoo, the Morris Conservatory/Muessel-Ellison Tropical Gardens,
Healthworks! Kids Museum, the Farmers’ Market, and the St. Clair (Belleville) 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. Until recently, the stadium was home to the
South Bend Silver Hawks, a Single-A minor league team in the Midwest League affiliated with
the Arizona Diamondbacks. In January 2011, the Silver Hawks were sold to Chicago
businessman Andrew Berlin, who has forged a strong partnership with the City and plans to keep
the team in South Bend for many years to come. In September 2014, a four-year player contract
was reached with the Chicago Cubs and the team became the South Bend Cubs. Total
attendance in 2015 of 347,000 was up approximately 34% over 2014. The South Bend Cubs
received the John H. Johnson Award recognizing its record setting 2015 season and its rise to
become one of Minor League Baseball's most outstanding franchises.
Additional miscellaneous information about the City of South Bend can be found in the
statistical section of this report.
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Financial, Budgetary and Property Tax Controls
The City’s management team is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the government are protected from loss, theft or
misuse and to ensure that adequate accounting data is compiled to allow for the preparation of
financial statements in conformity with generally accepted accounting principles. The internal
control structure is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits
requires estimates and judgments by management.
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 determine the adequacy of the internal control structure,
including that portion related to federal financial assistance programs, as well as to determine
that the City has complied with applicable laws and regulations. The results of the City’s single
audit for the year ended December 31, 2015 are included in a separate report.
Budgetary Controls. In accordance with Indiana statutes, the City maintains budgetary controls
integrated within the accounting system. The objective of these budgetary controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget (prepared on a
cash basis) which is adopted by the Common Council or Redevelopment Commission
(depending on the fund) and then reviewed and approved by the State of Indiana Department of
Local Government and Finance (DLGF). Activities of the general fund, special revenue funds,
capital project funds, enterprise funds, internal service funds, pension trust funds and debt
service funds are included in the annual budget. The level of budgetary control (that is, the level
at which expenditures cannot legally exceed the appropriated amount) is established by major
budget classification within funds. The Mayor and Common Council may transfer
appropriations from one major budget classification to another within a department by ordinance
as long as 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. Beginning in budget year 2009, the City must also submit its annual budget to
the St. Joseph County Common Council for a non-binding review and recommendation. 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.
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Property Tax Controls. In addition to budgetary and other controls established by Indiana
statute, the City must operate within specific and rigid controls governing the amount of property
tax it may levy. The property tax control program, which began in 1973, limits the amount of
property tax that may be levied by each unit of government in its legally budgeted funds. The
total amount of property tax levied by the unit may increase by the six year average annual
growth in Indiana personal non-farm income, as calculated by the U.S. Bureau of Economic
Analysis, with a 6% maximum.
During March 2008, the State of Indiana General Assembly enacted property tax reform
legislation which made significant changes in the property tax system by capping the amount of
property taxes at 1% of grossed assessed value for residential homesteads, 2% for
agricultural/rental properties and 3% for all other real and personal property. This legislation
was phased in over a two year period beginning in 2009. The loss of revenue to the City due to
this legislation was significant (estimated to be over $31 million dollars) but this revenue loss
has been offset by cost savings and the adoption of local option income taxes in order to continue
providing essential City services, including police and fire protection.
A historical view of the City’s tax rate and its net assessed valuation has been included in the
statistical section of this document.
Mayoral Leadership
Mayor Pete Buttigieg, a Harvard University graduate and Rhodes scholar, assumed office on
January 1, 2012, bringing with him a group of leaders with new ideas and energy to implement
transformational reform to city government. Elected at age 29, Mayor Buttigieg is the youngest
chief executive of a municipality exceeding 100,000 residents in the United States. During his
first term, Mayor Buttigieg has launched seven initiatives to improve city government:
1. New Economic Partnerships – to lay out a new economic vision for our community as
well as to agree on a smarter division of labor among various groups involved in
economic development.
2. High Ethical Standards – on his first day in office the Mayor issued an executive order
introducing a new ethics code for City employees.
3. Customer Service Mentality – design ways that City employees can track and resolve
citizens’ issues efficiently by using more advanced technology. This effort led to the
creation of a “311 Call Center” for non-emergency municipal telephone calls during
2012. The Call Center has taken more than 300,000 calls through June 2016 and
continues to add departments to be a central call center for most areas of City
government.
4. Strong Partnerships with Schools – the Mayor has improved dialogue with the South
Bend School Corporation and other stakeholders to ensure a strong educational system in
the City. The Mayor has begun programs to double the number of public school mentors
and curb youth and gun violence.
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5. Transparency and Accessibility – choosing not to serve from behind his desk, Mayor
Buttigieg has conducted a series of monthly “Mayor’s Night Out” and “Mayor’s Night
In” events around town to allow citizens to speak to him and his department heads
directly about concerns and ideas. The City website has been re-designed and additional
financial and operational reports are being made available online.
6. Vacant and Abandoned Buildings – as with many large cities, the City of South Bend
has an issue with vacant and abandoned buildings. The city has taken on this issue with
the appointment of a blue-ribbon task force that developed new strategies and initiated an
aggressive three-year program—1,000 buildings in 1,000 days—to reduce the number of
vacant and abandoned buildings. As of June 2016, more than 1,000 buildings have been
addressed. In the second phase of the project, the City is beginning to handle the new
vacant lots which resulted from the demolition of many buildings.
7. Smart Streets – an effort to improve the role of streets within South Bend. Projects
within this initiative utilize the “Complete Streets” philosophy which advocates for the
design of streets to enable safe access for all users, including pedestrians, bicyclists,
motorists and transit riders of all ages and abilities. During 2015, the City issued a bond
for $25 million to move the project of two-way street conversions and other Smart Street
initiatives forward.
8. South Bend Group Violence Intervention (SBGVI) – unites community leaders around
a common goal: to stop gun violence and keep South Bend’s highest risk citizens alive
and out of prison. SBGVI is a partnership among 30 community leaders from law
enforcement, government, education, civil service, health-care and faith-based agencies.
Administration Vision
The administration of Mayor Buttigieg has a single, overarching mission—we deliver services
that empower everyone to thrive. In support of this vision, the Mayor has established three
main pillars of administration policy:
1. Make the basics easy – Provide residents high quality services at the greatest value to the
taxpayer, maintaining widespread confidence that the fundamentals are managed well.
2. Deliver Good government – Put residents first always, leading by example, gathering
input, and transparently communicating our intentions, decisions, and actions.
3. Invest in people and places – Support residents with design, policy, and programming for
a strong and inclusive economy, vibrant culture, and great public spaces.
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Values
The five core values of the City administration are:
1. Excellence – For each major area of service delivery, establish South Bend as the best in
the state, and/or in the top 25% nationally, measuring and reporting progress.
2. Accountability – Put residents first always, offering services at the greatest value to the
taxpayer, with clear and transparent indications of how the government is using public
resources.
3. Innovation – Deliver better services more efficiently by introducing creative approaches
to government operations, questioning habit and using evidence to continually improve.
4. Inclusion – Ensure the City administration, as an employer and as a purchaser, reflects
the community it serves and includes diverse voices in our decision-making and actions.
5. Empowerment – Establish a work environment that enables employees to contribute
richly to the administration and the community, taking pride and ownership in our work.
Community and Governance Results
During 2016, the City administration has initiated a Priority Based Budgeting program and has
developed the following Community and Governance desired outcomes:
Community Results
1. Safe Community for Everyone
2. Strong, Inclusive Economy
3. Thriving Public Spaces and Culture
4. Vibrant, Welcoming Neighborhoods
5. Robust and Well-Planned Infrastructure
6. Physically and Digitally Connected Community
Governance Results
1. Great Employer with Great Employees
2. Enduring Financial Strength
3. Excellent Services and Efficient Processes
4. Modeling our Values (Excellence, Accountability, Innovation, Inclusion and
Empowerment)
5. Robust Physical and Technological Capital Assets
6. Reliable Compliance with Regulations and Well-Managed Risk
7. Effective, Responsive Leadership and Communication
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Awards
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of South
Bend for its comprehensive annual financial report for the fiscal year ended December 31, 2014.
This was the 25th consecutive year that the City has achieved this prestigious award. In order to
be awarded a Certificate of Achievement for Excellence in Financial Reporting, a government
unit must publish an easily readable and efficiently organized Comprehensive Annual Financial
Report. This report must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for
another certificate.
Acknowledgments
The preparation of the Comprehensive Annual Financial Report (CAFR) was made possible by
the dedicated service of the City’s departmental fiscal officers and the staff of the Department of
Administration and Finance. Each fiscal officer and member of the Administration and Finance
Department has our sincere appreciation for the contributions made in the preparation of this
report. We would especially like to acknowledge the efforts of the core CAFR preparation team
of Rahman Johnson, Cecil Eastman and Plante Moran, PLLC. In addition, we would like to
thank the Field Examiners of the Indiana State Board of Accounts (led by Martha Harper, Alex
Flores and Bruce Snyder) for their hard work and dedication in this effort.
In closing, without the leadership and support of Mayor Pete Buttigieg, City Department Heads,
City Fiscal Officers and members of the City of South Bend Common Council, preparation of
this report would not have been possible.
Sincerely,
John H. Murphy, MPA Jennifer Hockenhull, CPA
City Controller Deputy City Controller
xiii
Citizens of South Bend
City Council Mayor City Clerk
Board of Public
Works (1)
Public Works
(Director)
Century Center
Board of Managers
(2)
Century Center
(Director)
Board of Parks &
Recreation (1)
Parks & Recreation
(Superintendent)
Morris
Entertainment
Board (3)
Morris Performing
Arts Center
(Director)
Board of Public
Safety (1)
Fire Department
(Chief)
Police Department
(Chief)
Community &
Economic
Development
(Director)
Redevelopment
Authority/
Commission (4)
Administration &
Finance (City
Controller)
Consolidated
Building
Department
Code Enforcement
(Director)
Legal Department
(City Attorney)
- Technical Services Division
- Investigative Division
- Uniform Patrol
- Community Relations Division
-Fire Prevention
- Administrative Services Division
- Firefighting Operations Division
- EMS Division
- Park Administration Division
- Park Maintenance Division
- Recreation Division
- Potawatomi Zoo Division
- Golf Division
- Engineering Division
- Streets Division
- Water Works Division
- Sewage Division
- Central Services Division
- Solid Waste Division
- Energy Office
- Economic Development
- Community Development
- General Administration
- Hearing Officer
- Neighborhood Code Enforcement
- Abandoned Vehicles
- Unsafe Building
- Animal Control
- Bureau of Weights and Measures
- City Finance & Budgeting
- Human Resources
- Benefits Management
- Information Technology
- Safety & Risk Management
- Human Rights
- Purchasing/Diversity
- Innovation
City of South Bend, Indiana
Organizational Chart
(1) Board Members include Mayoral Appointments
(2) Board Members include Mayoral and Council Appointments
(3) Board Members include Citizen Appointments
(4) Board Members include Mayoral and Council Appointments for Redevelopment Commission, Mayoral Appointment for Redevelopment Authority
Effective as of January 1, 2015
xiv
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9
1
INDEPENDENT AUDITOR'S REPORT
(Continued)
Emphasis of Matter
As discussed in Note 25 to the financial statements, the City adopted new accounting guidance,
GASB Statement 68 Accounting and Financial Reporting for Pensions. Our opinion is not modified with
respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, Schedules of Investment Returns, Schedules of Proportionate Share
of the Net Pension Liability, Schedules of Contributions, Schedules of Changes in City Net Pension Liability
and Related Ratios, Schedules of Funding Progress, Budgetary Comparison Schedules, and Budget/GAAP
Reconciliation, as listed in the Table of Contents, be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit
of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City basic financial statements. The accompanying Combining Balance Sheet,
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances, Schedules of Revenue,
Expenditures, and Changes in Fund Balances - Budget and Actual, other Budgetary Comparison Schedules,
Combining Statements of Net Position, Combining Statements of Revenue, Expenses, and Changes in Net
Position, Combining Statements of Cash Flows, Statement of Asset and Liabilities, Combining Statement of
Changes in Fiduciary Net Position, and Statement of Changes in Assets and Liabilities, and the Introductory
and Statistical Sections are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
The Combining Balance Sheet, Combining Statement of Revenue, Expenditures, and Changes in
Fund Balances, Schedules of Revenue, Expenditures, and Changes in Fund Balances - Budget and Actual,
other Budgetary Comparison Schedules, Combining Statements of Net Position, Combining Statements of
Revenue, Expenses, and Changes in Net Position, Combining Statements of Cash Flows, Statement of Asset
and Liabilities, Combining Statement of Changes in Fiduciary Net Position, and Statement of Changes in
Assets and Liabilities are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the combining and individual fund financial state-
ments, and other budgetary comparison schedules are fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
2
INDEPENDENT AUDITOR'S REPORT
(Continued)
The Introductory and Statistical Sections, have not been subjected to the auditing procedures applied
in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 15,
2016, 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 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 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 City's internal control over financial reporting and compliance.
Paul D. Joyce, CPA
State Examiner
June 15, 2016
3
City of South Bend, Indiana
Management’s Discussion and Analysis
4
The management of the City of South Bend, Indiana (the “City”) provides herewith this
Management’s Discussion and Analysis (MD&A) of the financial activities and condition of the
City of South Bend, Indiana for the fiscal year ended December 31, 2015.
Readers of the information contained within this Management’s Discussion and Analysis, and any
opinion derived therein, should be considered as a part of the greater whole of the financial
statements, notes to the financial statements, supplemental information and letter of transmittal,
as contained within this Comprehensive Annual Financial Report (CAFR).
The City of South Bend is the county seat of St. Joseph County, Indiana, and is the fourth largest
city in the state of Indiana. St. Joseph County is located within the heartland of the manufacturing
and metropolitan regions of the Upper Midwest. The City of South Bend is located in the north
central region of the state of Indiana, five (5) miles south of the Indiana / Michigan state boundary
line. The City is approximately ninety (90) miles east of the city of Chicago and one hundred
forty (140) miles north of the city of Indianapolis.
The 2010 U.S. Bureau of the Census population for the City of South Bend was reported as
101,168 and the 2010 Census population for St. Joseph County was reported as 266,931.
Accordingly, South Bend is classified as a “Second Class City” under State of Indiana statutes,
defined as cities with a population between 35,000 and 600,000 residents.
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 citizens.
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 and Wastewater Utility services
to commercial and residential properties within the city. City operations also include the
Century Center convention venue, Morris Performing Arts Center, Palais Royale Ballroom,
Studebaker National Museum, South Bend Redevelopment Authority and Public Parking Garages
within the city footprint.
The City of South Bend governmental structure includes elected officials as follows with defined
management and legislative authority in compliance with Indiana statute.
Mayor Chief Executive Officer 4-year term
Common Council 9 member legislative body
6 from defined districts within the City
3 at-large members
4-year term
City Clerk Secretary of the Common Council 4-year term
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
5
The current terms of office for Common Council members, Mayor and City Clerk expire on
December 31, 2019.
The City of South Bend was incorporated in 1865, is compliant with Indiana statutes, and
remains as such through the period covered by this Management’s Discussion and Analysis
report. In 2015, the City celebrated its 150th birthday and a year-long series of community
activities was held for “SB 150”.
Financial Highlights
Governmental Business-type Government-wide
Activities Activities Activities
2015 2014*2015 2014*2015 2014*
Assets/deferred outfl ows $ 516,636,797 $ 498,965,722 $ 317,443,817 $ 302,099,795 $ 834,080,614 $ 801,065,517
Liabilities/deferred inflows 375,776,902 205,520,938 122,632,404 125,032,205 498,409,306 330,553,143
Net position
Net investment in capital assets 157,604,691 168,275,521 141,998,384 136,685,811 299,603,075 304,961,332
Restricted 9,137,552 8,723,878 28,397,290 26,587,012 37,534,842 35,310,890
Unrestric ted-25,882,348 116,445,385 24,415,739 13,794,767-1,466,609 130,240,152
Total net position 140,859,895 293,444,784 194,811,413 177,067,590 335,671,308 470,512,374
Ch ange v s. prior yea r (152,584,889)3,890,735 17,743,823 6,387,416 (134,841,066)10,278,151
Expenses 164,310,194 139,909,059 61,899,676 55,879,605 226,209,870 195,788,664
Revenues 143,906,425 144,482,843 75,039,628 61,583,972 218,946,053 206,066,815
* For this presentation, 2014 column balances were not restated for prior period adjustments due to lack of
information and management’s desire to maintain comparability with prior reports.
• Government-wide net position was $335,671,308 as of December 31, 2015.
• Government-wide net position decreased by $134,841,066 or 28.7% during fiscal 2015.
Governmental activity net position decreased by $152,584,889 or 52.0% and business-
type activity net position increased by $17,743,823 or 10% during fiscal 2015. On an
overall basis, the City is worse off financially at December 31, 2015 than it was at
December 31, 2014 on a government-wide financial basis. The primary reason is the
implementation of the new pension accounting rules which were posted as a prior period
adjustment. The above table for 2014 has not been adjusted for these prior period
adjustments.
• Total assets and deferred outflows of resources as of December 31, 2015 of
$834,080,614 increased by $33,015,097 or 4.1% as compared to total assets and
deferred outflows of resources as of December 31, 2014.
• Total liabilities and deferred inflows of resources as of December 31, 2015 of
$498,409,306 increased by $167,856,163 or 50.8% as compared to total liabilities and
deferred inflows of resources as of December 31, 2014.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
6
• As of December 31, 2015, the government-wide net position of $335,671,308 has
$299,603,075 invested in capital assets (net of debt) which is not available for spending,
$37,534,842 classified as restricted for debt service; capital outlay; and other; and a
negative ($1,466,609) classified as unrestricted.
• Government-wide revenue received in fiscal 2015 totaled $218,946,053, an increase of
$12,879,238 or 6.25% versus government-wide revenue received in fiscal 2014.
Governmental activity revenue decreased by $576,418 or .4%, whereas business-type
activity revenue increased by $13,455,656 or 21.8%.
• Government-wide expenses in 2015 totaled $226,209,870, an increase of $30,421,206
or 15.5% compared to expenses of $195,788,664 in 2014. Government activity
expenses increased by $24,401,135 or 17.4% and business-type activity expenses
increased by $6,020,071 or 10.8% compared to fiscal 2014.
• Explanatory commentary concerning the changes in assets, liabilities, revenue and
expenditures can be found in later sections of this MD&A.
Overview of the Financial Statements
The City of South Bend’s financial statements are comprised of three components: (1)
government-wide financial statements, (2) fund financial statements, and (3) notes to the
financial statements. This report also includes other supplementary information in addition to the
basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the City of South Bend’s finances using “accrual-based accounting,” a method of
accounting used by private sector businesses.
• Statement of Net Position
This statement reports all assets, deferred outflows of resources, liabilities, and deferred
inflows of resources of the City of South Bend as of December 31, 2015. 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.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
7
• 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, 2015. 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 county option income
taxes, fees for services and other revenue sources.
The government-wide financial statements distinguish between functions of the City that are
principally supported by taxes and intergovernmental revenue (governmental activities) and
other functions that are intended to recover all or a significant portion of their costs through
user fees and charges (business-type activities). The major governmental activities of the City of
South Bend include general government, public safety, street construction and maintenance,
infrastructure construction and maintenance, parks and recreation services, and arts and culture.
The major business-type activities of the City include the water utility, wastewater utility, solid
waste sanitation services, Century Center convention center, building department, emergency
medical services and the downtown parking garages.
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the City of South Bend can be divided into three
categories: governmental funds, proprietary funds and fiduciary funds. Each fund has its own
cash balance which must be maintained according to the City’s cash reserve policy.
Governmental Funds
Governmental funds are used to account for the same functions reported as governmental
activities in the government-wide financial statements. However, unlike government-wide
financial statements, governmental fund financial statements focus on short-term inflows and
outflows of spendable resources, as well as on balances of spendable resources available at the
end of the fiscal year. Such information may be useful in evaluating a government's short-term
financing requirements. Governmental funds use the modified accrual accounting method. The
City maintains seven (7) major governmental funds (General, Parks and Recreation, Public Safety
Local Option Income Tax (LOIT), County Option Income Tax, Economic Development Income
Tax, River West TIF and Redevelopment Authority Debt Service) and sixty-seven (67) non major
governmental funds.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
8
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 eight (8)
enterprise funds. Information is presented separately in the proprietary statement of net
position and the proprietary statement of revenues, expenses and changes in fund net
position for the Water utility, Wastewater utility and Century Center, which are considered
major enterprise funds. Data from the other five (5) nonmajor enterprise funds
(Consolidated Building Department, Parking Garage, Solid Waste, Blackthorn Golf Course
and Emergency Medical Services) are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor enterprise funds is provided in the form of
combining statements elsewhere in this report.
• Internal service funds are used to accumulate and allocate costs internally among the City's
various functions and funds. The City maintains five (5) 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 and central services unit (a department that
accounts for expenses related to fuel, vehicle repairs, printing and other services provided to
City departments on a cost-reimbursement basis). Because these services predominantly
benefit governmental rather than business-type functions, they have been included within
governmental activities in the government-wide financial statements but are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual fund
data for the internal service funds is provided in the form of combining statements elsewhere
in the report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City
government. Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to support City programs. The City
maintains six (6) fiduciary funds, which consist of two (2) pension trust funds (1925 Police
Pension and 1937 Firefighters’ Pension), three (3) agency funds (Payroll, Police Distributions
Payable and Morris/Palais Royale Box Office), and one (1) private-purpose trust fund (City
Cemetery).
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
9
Pension Trust Fund Operations
City employees are covered by the Public Employees Retirement Fund (PERF) and the 1977
Police Officers' and Firefighters' Pension Fund, both of which are administered by the State of
Indiana. However, certain police officers and firefighters hired before May 1, 1977 (who did not
opt into the 1977 fund) continue to be members of the 1925 Police Officers’ Pension Fund or
the 1937 Firefighters' Pension Fund. These two funds are administered by the City. The number
of police officers and firefighters in the City-managed pension trust funds will continue to decline
in the future as current participants pass away. The State makes certain contributions toward
the funding of the 1925 Police Officers’ and 1937 Firefighters’ pension plans.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential in order to
have a full understanding of the data provided in the government-wide and fund financial
statements.
Other Information
In addition to the basic financial statements and accompanying notes and disclosures, this CAFR
presents supplementary information (“Required Supplementary Information” or “RSI”)
immediately following the basic financial statements. Other supplementary information is found
in the Statistical Section. The combining statements referred to earlier in connection with non-
major governmental, non-major enterprise, internal service and fiduciary funds are presented
immediately after the Required Supplementary Information within the financial statement section
of the CAFR.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
10
Government-wide Financial Statements
The following financial analysis will focus on the statement of net position and statement of
changes in net position of the City’s governmental and business-type activities.
Statement of Net Position
Governmental Business-type Government-wide
Activities Activities Activities
2015 2014*2015 2014*2015 2014*
Assets
Cur rent and other $ 226,795,797 $ 214,391,686 $ 74,526,365 $ 64,664,042 $ 301,322,162 $ 279,055,728
Capital assets (net) 265,386,820 284,574,036 240,503,593 236,196,523 505,890,413 520,770,559
Total Assets 492,182,617 498,965,722 315,029,958 300,860,565 807,212,575 799,826,287
Deferred Outflows 24,454,180 - 2,413,859 1,239,230 26,868,039 1,239,230
Liabilities
Cur rent 30,617,734 30,496,632 15,584,204 14,315,178 46,201,938 44,811,810
L ong ter m 324,909,155 174,715,186 106,707,120 110,277,807 431,616,275 284,992,993
Total Liabilities 355,526,889 205,211,818 122,291,324 124,592,985 477,818,213 329,804,803
Deferred Inflows 20,250,013 309,120 341,080 439,220 20,591,093 748,340
Net Position
Net investment in capital assets 157,604,691 168,275,521 141,998,384 136,685,811 299,603,075 304,961,332
Restricted 9,137,552 8,723,878 28,397,290 26,587,012 37,534,842 35,310,890
Unrestricted (25,882,348) 116,445,385 24,415,739 13,794,767 (1,466,609) 130,240,152
Total Net Position $ 140,859,895 $ 293,444,784 $ 194,811,413 $ 177,067,590 $ 335,671,308 $ 470,512,374
* For this presentation, 2014 column balances were not restated for prior period adjustments due to lack of
information and management’s desire to maintain comparability with prior reports.
• As of December 31, 2015, total assets and deferred outflows exceeded liabilities and
deferred inflows by $335,671,308, a decrease of $134,841,066, or 28.7%, from the net
position level as of December 31, 2014.
• Governmental activities net position of $140,859,895 decreased by $152,584,889, or 52.0%,
from December 31, 2014.
• Business-type net position of $194,811,413 increased by $17,743,823, or 10.0%, from
December 31, 2014. The increase in business-type net position was due primarily to a 5%
increase in sewer rates which will be used to support long-term capital projects of the
Wastewater utility and the reclassification of the Emergency Medical Services operations
from a governmental activity to a business-type activity during 2015 based on an ordinance
approved by the South Bend Common Council.
• Government-wide assets and deferred outflows increased by $33,015,097, or 4.1%, as
compared to amounts as of December 31, 2014 primarily due to the recording of deferred
outflows with respect to pensions under GASB Statement No. 68 at December 31, 2015.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
11
• Government-wide liabilities and deferred inflows increased by $167,856,163, or 50.8%, as
compared to amounts as of December 31, 2014. The increase is due primarily to the
implementation of new accounting requirements for recording pension liabilities under GASB
Statement No. 68 at December 31, 2015.
Statement of Changes in Net Position
Governmental Business-type Government-wide
Activities Activities Activities
2015 2014*2015 2014*2015 2014*
Revenue
Program revenue:
Charge for services $ 6,529,359 $ 11,473,867 $ 69,997,286 $ 59,858,306 $ 76,526,645 $ 71,332,173
Operating grants 2,813,481 3,203,805 - - 2,813,481 3,203,805
Capital grants - - 4,683,424 95,834 4,683,424 95,834
General revenue:
Taxes
Property tax 72,032,049 69,221,468 - - 72,032,049 69,221,468
Other tax 24,507,308 23,822,661 - - 24,507,308 23,822,661
Unrestricted grants 25,487,112 29,061,942 - - 25,487,112 29,061,942
Investment earnings 1,322,674 951,901 358,918 128,168 1,681,592 1,080,069
Other revenue 11,214,442 6,747,199 - 1,501,664 11,214,442 8,248,863
Total Revenue 143,906,425 144,482,843 75,039,628 61,583,972 218,946,053 206,066,815
Expenses
General government 21,572,776 19,013,453 - - 21,572,776 19,013,453
Public safety 56,528,448 68,783,155 - - 56,528,448 68,783,155
Highways and streets 20,045,444 13,031,500 - - 20,045,444 13,031,500
Culture and recreation 20,300,768 16,802,311 - - 20,300,768 16,802,311
Economic development 40,727,612 19,780,791 - - 40,727,612 19,780,791
Bond issuance costs 372,432 - - - 372,432 -
Interest on long-term debt 4,762,714 2,497,849 - - 4,762,714 2,497,849
Water utility - - 13,609,378 13,020,610 13,609,378 13,020,610
Wastewater utility - - 25,737,867 25,521,753 25,737,867 25,521,753
Civic center - - 4,854,747 4,747,838 4,854,747 4,747,838
Building department - - 3,552,347 3,242,320 3,552,347 3,242,320
Parking - - 2,139,182 1,660,596 2,139,182 1,660,596
Solid waste - - 5,243,972 5,811,526 5,243,972 5,811,526
Golf course - - 165,977 1,874,962 165,977 1,874,962
Emergency medical services - - 6,596,206 - 6,596,206 -
Total Expenses 164,310,194 139,909,059 61,899,676 55,879,605 226,209,870 195,788,664
Change in net position
Before transfers (20,403,769) 4,573,784 13,139,952 5,704,367 (7,263,817) 10,278,151
Special items - Disposal of operations - - (1,180,964) - (1,180,964) -
Transfers 2,846,415 (683,049) (2,846,415) 683,049 - -
Change in net position (17,557,354) 3,890,735 9,112,573 6,387,416 (8,444,781) 10,278,151
Beginning net position 158,417,249 289,554,049 185,698,840 170,680,174 344,116,089 460,234,223
(restated)
Ending net position $ 140,859,895 $ 293,444,784 $ 194,811,413 $ 177,067,590 $ 335,671,308 $ 470,512,374
* For this presentation, 2014 column balances were not restated for prior period adjustments due to lack of
information and management’s desire to maintain comparability with prior reports.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
12
Governmental Activities
Net position for governmental activities decreased by $17,557,354 during fiscal 2015, a decrease
of 11.1% from the restated balance of Net Position at December 31, 2014. Revenue of
$143,906,425 decreased by $576,418, or .4%. Expenses were $164,310,194 during 2015, an
increase of $24,401,135, or 17.4% as compared to fiscal 2014.
The governmental activities revenue decreases were due primarily to lower grant revenue for
community and economic development projects and the reclassification of Emergency Medical
Services to a business-type activity during 2015. Governmental activities expenses increased
significantly in highway and streets economic development due to higher spending on capital
projects including the smart streets two-way conversion of downtown streets, the Ignition Park
turbo project and the LaSalle Hotel renovation.
Business-type Activities
Net position from business-type activities increased by $9,112,573 during fiscal 2015, an
increase of 4.9% from the restated balance of Net Position at December 31, 2014. During
2015, business-type activities revenue of $75,039,628 increased by $13,455,656, or 21.8%, over
fiscal 2014. During 2015, business-type activities expenses of $61,899,676 increased by
$6,020,071, or 10.8%, when compared to fiscal 2014.
Revenue increased primarily in the Wastewater utility as a result of a 5% rate increase that was
approved by the South Bend Common Council along with the classification of Emergency
Medical Services (EMS) as a business-type activity in 2015. Expenses for EMS were also classified
as business-type activities during 2015.
Financial Analysis of Government Funds
The City of South Bend uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. Funds of the City are divided into three categories:
governmental funds, proprietary funds and fiduciary funds.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
13
Condensed Balance Sheet, Statement of Revenue, Expenditures, and Changes in Fund Balance As of December 31, 2015
Redevelopment
Authority Debt
General Park & Rec PS LOIT COIT EDIT River West TIF Service Other Total
Total assets $ 31,461,006 $ 3,977,754 $ 641,982 $ 13,852,167 $ 10,294,695 $ 44,549,416 $ 1,217,412 $ 110,565,226 $ 216,559,658
Total liabilities 838,950 157,272 88,715 792,557 65,472 2,806,268 - 10,983,688 15,732,922
Fund Balances:
Nonspendable 491,665 45,197 - 1,764,770 270,001 11,011,644 - 13,950,624 27,533,901
Restricted - 3,775,285 553,267 - - 30,731,504 1,217,412 76,727,038 113,004,506
Committed - - - - - - - 2,238,475 2,238,475
Assigned 466,088 - - 11,294,840 9,959,222 - - 10,883,997 32,604,147
Unassigned 29,664,303 - - - - - - (4,218,596) 25,445,707
Total fund balance 30,622,056 3,820,482 553,267 13,059,610 10,229,223 41,743,148 1,217,412 99,581,538 200,826,736
Liabilities and fund balance 31,461,006 3,977,754 641,982 13,852,167 10,294,695 44,549,416 1,217,412 110,565,226 216,559,658
Revenues 60,573,110 10,142,497 6,471,567 9,476,845 9,892,798 17,241,931 11,117 28,909,961 142,719,826
Expenditures 61,754,032 10,527,677 6,926,864 10,434,756 2,886,155 26,673,997 5,229,973 48,225,279 172,658,733
Net surplus (deficit) (1,180,922) (385,180) (455,297) (957,911) 7,006,643 (9,432,066) (5,218,856) (19,315,318) (29,938,907)
Other sources (uses) 4,215,573 922,515 - (2,499,361) (7,105,136) 9,810,004 2,296,854 32,089,275 39,729,724
Net change in fund
balances 3,034,651 537,335 (455,297) (3,457,272) (98,493) 377,938 (2,922,002) 12,773,957 9,790,817
Beginning fund balances 27,587,405 3,283,147 1,008,564 16,516,882 10,327,716 41,365,210 4,139,414 86,807,581 191,035,919
Ending fund balances 30,622,056$ 3,820,482$ 553,267$ 13,059,610$ 10,229,223$ 41,743,148$ 1,217,412$ 99,581,538$ 200,826,736$
As of December 31, 2015, the City governmental funds reported a combined ending fund
balance of $200,826,736.
The nonspendable fund balance of $27,533,901 is sequestered for property held for resale,
inventory, and long-term receivables and is, therefore, not available for new spending. The
restricted fund balance of $113,004,506 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 $2,238,475 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 $32,604,147 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 $25,445,707 consists of
money primarily in the General Fund that has not been obligated in any manner by the City less
deficits in certain nonmajor governmental funds due primarily to interfund advance transactions
to finance economic development projects that will be paid back over time.
The General Fund is the primary operating fund for City operations including general
government, public safety, certain culture and recreation expenses, and certain debt service
obligations.
As of December 31, 2015, the General Fund balance of $30,622,056 represents an increase of
$3,034,651, or 11.0% from the balance as of December 31, 2014. The increase was due
primarily to higher property tax revenue during 2015 than expected and lower spending for
public safety and administration than anticipated.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
14
As of December 31, 2015, the General Fund had an unassigned fund balance of $29,664,303
which is equal to 48.0% of 2015 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 2015 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
2015.
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 30% of annual expenditures and exceeded this target at December 31,
2015.
The Parks and Recreation Fund balance increased $537,335 during fiscal 2015, due primarily
to a combination of higher property and tax revenue and transfers in and lower expenditures. As
of December 31, 2015, the fund balance in the Parks and Recreation Fund was $3,820,482, or
36.3% of 2015 expenditures. The City has a policy to maintain fund reserves equal to at least
25% of annual expenditures and exceeded this target at December 31, 2015.
The Public Safety Local Option Income Tax Fund (Public Safety LOIT) was created in
October 2009, with the local legislative passage of an increase in local option income taxes of
0.95%, a part of which (0.25%) tax increase was established to fund public safety expenditures.
The City has established the Public Safety LOIT Fund as a major governmental fund, due solely
to its purpose of creating a funding source to sustain public safety staffing levels, which were
compromised by state implementation of property tax reform that has reduced property tax
revenues, which historically are the source of public safety funding. Public Safety LOIT funds are
used to cover the personnel costs of police officers and firefighters. Receipts of Public Safety
LOIT tax revenue commenced in January 2010. Revenue in fiscal 2015 of $6,471,567 increased
by $85,726 or 1.3% compared to 2014. The decrease in fund balance in the amount of
$455,297 during 2015 was planned and is the result of increased costs for police and fire
personnel. The ending fund balance was $553,267, or 8.0% of annual expenditures, and meets
the City’s cash reserve policy goal of 8%.
The County Option Income Tax Fund (COIT) and Economic Development Income Tax
Fund (EDIT) funds are used to fund major capital and construction projects, economic
development initiatives, certain subsidies and support to organizations and units that benefit city
economic development and cultural venues, certain city-wide expenditures such as telephone
and information technology costs, and certain debt service payments.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
15
The COIT fund balance decreased by $3,457,272 during 2015, due to higher expenditures for
the curb and sidewalk program and information technology. The City has operationally
sequestered COIT funds for use in major capital and construction funding initiatives, certain
subsidies and support to organizations and units that benefit city economic development and
cultural venues, information technology costs, city-wide expenditures like telephone and
electricity for street lights, and certain debt service payments.
As of December 31, 2015, the COIT Fund balance was $13,059,610, or 100% of 2015
expenditures and transfers out. This level of fund reserves is significantly higher than the City
policy target of 50%.
The EDIT Fund balance decreased by $98,493 during 2015 due to expenses related to initiatives
of the highest priority such as the commitment of demolition of vacant and abandoned buildings
and operating transfers to the Code Enforcement and Animal Care & Control Departments. The
City has operationally sequestered EDIT funds for use in major economic development
initiatives, certain subsidies and support to organizations and units that benefit city economic
development and cultural venues, operational costs of the street, code enforcement and
community investment departments and certain debt service payments.
As of December 31, 2015, the EDIT fund balance was $10,229,223, or 102% of 2015
expenditures and transfers out. The City policy target is 50%.
The fund balance in the River West TIF Fund (formerly known as the TIF Airport Fund)
increased by $377,938 during 2015. This change was the result of transfers in from other funds
of $10,763,908 resulting from TIF consolidation offset by higher expenditures for economic
development projects in the allocation area. The area of the River West TIF Fund was expanded
in 2015 to include a portion of the downtown central business district.
As of December 31, 2015, the River West TIF Fund balance of $41,743,148 included
$11,011,644 nonspendable fund balances (primarily property held for resale) and $30,731,504 in
restricted fund balances. This fund continues to be a major success for the City of South Bend
and has generated in excess of $645 million in private investment since its inception.
The Redevelopment Authority Debt Service Fund is a new major fund for 2015. The fund
accounts for lease rental payments from the City and the payment of debt service to
bondholders through trust agreements with financial institutions. During 2015, the 2008 Eddy
Street Commons Revenue bonds were refunded in this fund. The fund balance was $1,217,412
at December 31, 2015. The fund does not have a City reserve target and is not a budgeted fund.
During 2015, the fund balances in Nonmajor Governmental funds increased by $12,773,957
due primarily to bond proceeds on new debt issuance including the Century Center Energy
Conservation Bond ($4.17 million), Smart Streets Bond ($25.0 million) and the Parks/EDIT Bond
($5.6 million). A substantial portion of these bond proceeds were not spent at December 31,
2015.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
16
The total balance in Nonmajor Governmental Funds was $99,581,538 at December 31, 2015.
These fund balances provide the necessary resources that the City requires to meet future
capital construction needs, ongoing debt service obligations, and economic development project
initiatives in order to fuel community growth within the City.
Individual fund data for each of the nonmajor governmental funds is provided in the form of the
combining statements immediately following the Required Supplemental Information within the
Financial Section of the CAFR.
Governmental Fund Revenue
The following schedule presents a summary of governmental fund revenue for the year ended
December 31, 2015 with comparison to the prior year:
2015% of 2014% of
Actual Total Actual Total
Tax Based
General property $ 71,525,988 50.1% $ 69,221,468 47.9%
County option income 15,326,102 10.7%15,025,840 10.4%
County economic development 9,181,206 6.4%8,796,821 6.1%
Professional sports development 626,192 0.5% 588,054 0.4%
Total Tax 96,659,488 67.7%93,632,183 64.8%
Non-Tax Based
Licenses and permits 151,923 0.1%141,565 0.1%
Intergovernmental 30,216,059 21.2%30,663,505 21.1%
Charge for services 5,794,168 4.1%10,628,976 7.4%
Fines and forfeitures 454,327 0.3%563,999 0.4%
Interest income 1,253,242 0.9%955,376 0.7%
Other 8,190,619 5.7%7,904,187 5.5%
Total Non-Tax Based 46,060,338 32.3%50,857,608 35.2%
Total Revenue $ 142,719,826 100.0% $ 144,489,791 100.0%
Tax revenue continues to represent the most significant source of revenue required to support
services provided by the City. Property tax revenue is the primary source of funding for
governmental expenditures. Property tax revenue is based on a relationship between two
variables. The first variable is the assessed property valuation of industrial, commercial and
residential parcels for both real and personal property. The second variable is the application of
a tax rate to arrive at the total tax levy. Taxable property is assessed at 100% of the true tax
value. The amount of property tax levied (billed to property owners) is further restricted by
State of Indiana-enacted property tax legislative reform, the so-called “circuit breaker” property
tax caps in 2009, to no more than 1.0% (homestead), 2.0% (other residential/rental) or 3.0%
(commercial/industrial) of gross assessed valuation. Property tax revenue includes taxes
collected on behalf of the following funds: General Fund, Parks and Recreation Fund, Cumulative
Capital Development Fund, Redevelopment Commission Tax Incremental Financing (TIF) Funds,
Excess Levy Fund, and a special levy to cover debt service at the former College Football Hall of
Fame building.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
17
The City recognizes the need to further diversify the revenue stream and to reduce its
dependency on general property taxes to ensure that a broad base of users of city services,
including nonresidents who work in the City, share in the funding of basic City services. As a
result of the need to diversify the revenue stream, the City of South Bend Common Council and
Saint Joseph County Council adopted an additional local option income tax of 0.95% during
2009, increasing the tax rate from 0.8% to 1.75%. The local option income tax increase
consisted of three components: 0.2% increase in the economic development income tax, a
0.25% public safety local option income tax and a 0.5% property tax relief local option income
tax. The property tax relief local option income tax does not result in any direct revenue to the
City but helps to reduce circuit breaker property tax losses.
The City continues to seek diversified sources of revenue that will reduce its reliance on
property and income taxes. The City has supported efforts of the Indiana Association of Cities
and Towns (IACT) “Hometown Matters” to lobby the state legislature to enable alternative
revenue sources that best fit the needs of the community. One viable source of revenue is from
user fees and/or charges for services currently being performed. City-performed services are
priced at levels representing the full cost of service, taking into consideration fees charged by
providers of similar services. The City performs ongoing reviews of user fee costs incurred and
revises service fee prices as required.
Total tax revenue was $96,659,488 during 2015 and increased by $3,027,305, or 3.23%, from
2014. This increase was due primarily to an improving local economic and housing market that
has increased local income taxes and general property taxes. Total non-tax based revenue was
$46,060,338 and decreased $4,797,270, or 9.4%, from 2014. This decrease was due primarily
to the classification of the Emergency Medical Services Fund from a governmental fund to an
enterprise Fund during 2015.
Governmental Fund Expenditures
The City accounts for government fund expenditures in seven 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.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
18
The following schedule presents a summary of governmental fund expenditures for the year
ended December 31, 2015 with comparison to fiscal year 2014.
2015% of 2014% of
Actual Total Actual Total
General government $ 8,420,278 4.9% $ 8,022,688 5.2%
Public safety 61,889,405 35.9%66,927,250 43.4%
Highways and streets 12,787,641 7.4%10,441,957 6.8%
Community and economic development 11,068,013 6.4%7,309,130 4.7%
Culture and recreation 12,855,704 7.4%13,948,089 9.0%
Bond issuance costs 372,432 0.2% - 0.0%
Debt service 18,711,690 10.8%18,243,049 11.8%
Capital outlay 46,553,570 27.0%29,407,934 19.1%
Total Expenditures $ 172,658,733 100.0% $ 154,300,097 100.0%
Government fund expenditures in fiscal 2015 of $172,658,733 increased by $18,358,636, or
11.9%, in comparison to government fund expenditures in fiscal 2014.
Capital outlay expenditures increased by $17,145,636, or 58.3%, during 2015 due primarily to
increased spending in tax increment financing funds, the County Option Income Tax Fund, the
Major Moves Fund, and other capital projects funds for important project like smarts streets,
information technology, Ignition Park and downtown residential and hotel infrastructure
development. The accumulation of fund reserves in these funds has occurred in prior years and
2015 was a year that many of the projects came to fruition.
Public Safety expenditures decreased by $5,037,845, or 7.5%, due to the classification of the
Emergency Medical Services Fund as an enterprise fund in 2015.
Public Safety expenditures continue to be the primary use of government fund resources with
35.9% of expenditures used for this purpose in fiscal 2015. Public safety spending is followed by
capital outlay expenditures (27.0%), debt service (10.8%), community and economic
development (6.4%), culture and recreation (7.4%), highways and streets (7.4%), general
government (4.9%) and bond issuance (.2%). General government spending is comprised of the
executive offices of the Mayor, Common Council, City Clerk, City Attorney, Controller,
Engineering and other administrative functions. General government expenditures of less than
5% is lower than the average of other comparable municipal governments based on a study
conducted by the Department of Administration and Finance in 2015.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
19
Proprietary funds Condensed Statement of Net Position Revenue, Expenses, and Changes in Fund Net Position
As of December 31, 2015
Total assets $ 72,814,076 $ 192,580,050 $ 21,760,848 $ 27,891,590 $ 315,046,564 $ 13,756,528
Total deferred outflows 18,812 2,395,047 - - 2,413,859 -
Total liabilities 20,927,456 91,957,468 293,150 9,129,856 122,307,930 3,278,488
Total deferred inflows - - 335,417 5,663 341,080 -
Net position:
Net investment in capital assets 40,782,405 74,650,027 19,463,920 7,102,032 141,998,384 1,294,520
Restricted for:
Depreciation fund 2,876,026 8,723,058 - - 11,599,084 -
Debt service fund 4,398 804,674 - - 809,072 -
Customer repair and deposit fund 1,509,816 1,647,834 - - 3,157,650 -
Cash with fiscal agent 32,120 77,071 - 112,361 221,552 -
Bond reserve fund 1,604,996 4,105,623 - - 5,710,619 -
Operating reserve fund 2,228,964 3,668,277 5,897,241 -
Capital outlay - - 1,002,072 - 1,002,072 -
Unrestricted 2,866,707 9,341,065 666,289 11,541,678 24,415,739 9,183,520
Total net position 51,905,432 103,017,629 21,132,281 18,756,071 194,811,413 10,478,040
Operating revenues 14,204,285 36,635,501 2,817,114 14,868,943 68,525,843 23,251,875
Operating expenses 12,618,661 20,008,518 4,854,747 16,655,967 54,137,893 23,698,855
Operating income (loss) 1,585,624 16,626,983 (2,037,633) (1,787,024) 14,387,950 (446,980)
Nonoperating rev (exp) (913,191) (5,484,681) 1,386,259 (919,809) (5,931,422) 49,254
Income (loss) before contributions and
transfers 672,433 11,142,302 (651,374) (2,706,833) 8,456,528 (397,726)
Capital contributions - - 4,683,424 - 4,683,424 -
Disposal of property - - - (1,180,964) (1,180,964) -
Transfers in - - - 2,663,144 2,663,144 -
Transfers out (1,942,608) (3,497,207) (50,000) (19,744) (5,509,559) -
Change in net position (1,270,175) 7,645,095 3,982,050 (1,244,397) 9,112,573 (397,726)
Total net position – beginning 53,175,607 95,372,534 17,150,231 20,000,468 185,698,840 10,875,766
Total net position – ending $ 51,905,432 $ 103,017,629 $ 21,132,281 $ 18,756,071 $ 194,811,413 $ 10,478,040
Internal ServiceWater Utility
Wastewater
Utility Century Center Other Total Enterprise
The City of South Bend maintains two types of proprietary funds: enterprise and internal
service.
The City maintains eight (8) enterprise funds. Information is presented separately in the
Proprietary Statement of Net Position, the Proprietary Statement of Revenues and
Expenditures, and Changes in Fund Net Position for the Water Utility, Wastewater Utility and
Century Center, which are considered major enterprise funds. Data from the other five (5)
non-major enterprise funds (Consolidated Building Department, Parking Garage, Solid Waste,
Blackthorn Golf Course, and Emergency Medical Services) are combined into a single,
aggregated presentation.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
20
The City maintains five internal service funds. The City of South Bend uses internal service funds
to account for its business insurance and self-funded liability insurance program, self-funded
employee health benefits program, police take-home vehicle program, unemployment
compensation claims and central services unit (a department that accounts for expenses related
to fuel, vehicle repairs, printing and other services provided to City departments on a cost-
reimbursement basis). The internal service funds have been combined into a single, aggregated
presentation.
As of December 31, 2015, City enterprise funds reported a net position of $194,811,413, an
increase of $9,112,573, or 4.9%, from the restated net position at December 31, 2014.
At December 31, 2015, net position includes net investment in capital assets of $141,998,384,
restricted net position of $28,397,290 and unrestricted net position of $24,415,739.
During 2015, the Water utility experienced a decrease in net position of $1,270,175 and the
Wastewater utility experienced an increase in net position of $7,645,095. The Water utility
experienced decreased operating revenues of $168,891 while the Wastewater utility
experienced an increase in operating revenue of $2,626,384. The Wastewater utility had the
benefit of a 5% rate increase during 2015 but the Water utility had no rate increase. Through a
series of sewer rate increases approved by the South Bend Common Council, the Wastewater
utility continues to build its fund balances in order to pay for the mandated Long Term Control
Plan, a multi-year program being built by the City to control wastewater overflow events. The
City is currently studying the viability of a rate increase for the Water utility but no decision has
been made on this issue.
During 2015, Century Center experienced an increase in net position of $3,982,050, primarily
as the result of capital contributions for improvements made at the facility from the Century
Center Energy Conservation bond (a governmental fund) and the Saint Joseph County
Hotel/Motel Tax Fund.
Nonmajor Enterprise Funds experienced a decrease in net position of $1,244,397 during
2015. The Parking Garage Fund reported a decrease in net position of $1,164,054 primarily as
the result of the amortization of sales/leaseback charges on the original acquisition and higher
operating and capital costs. The Blackthorn Golf Course Fund was sold to a private developer
for $1,472,130 in March 2015 and the fund was closed out. The Consolidated Building Fund
reported an increase in net position of $1,155,744 during 2015 as the result of underspending
budgeted monies. The Solid Waste Fund reported an increase in net position of $123,198 but
continues to accumulate capital lease debt to finance new trash trucks. A solid waste fee
increase of 9.1% was approved for 2016 to help shore up the finances of the fund.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
21
As of December 31, 2015, City’s internal service funds reported net position of $10,478,040, a
decrease of $397,726, or 3.66%, compared to restated net position at December 31, 2014. The
Liability Insurance Fund decreased its net position by $962,346 in 2015 as the result of high
claims paid and estimates for future claims. The Central Services Fund increased its net position
by $122,416. The Self-Funded Employee Benefits Fund had an increase in its net position of
$282,596 due to a 20% employer rate increase and more modest growth in medical insurance
claims. In January 2016, the City opened the Activate Health and Wellness Center for the benefit
of employees and their families and to control future health care cost increases.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. The City maintains six fiduciary funds, which consist of two pension trust funds
(1925 Police Pension and 1937 Firefighters’ Pension), one private-purpose trust fund
(Cemetery) and three agency funds (Payroll, Police Distributions Payable and Morris/Palais
Royale Box Office).
Pension Trust Private Purpose Trust Agency
Total assets $ 1,629,896 $ 28,543 $ 2,752,256
Total liabilities 428 - 2,752,256
Total net position 1,629,468 28,543 -
Total additions 11,427,164 164 -
Total deductions 11,547,520 - -
Changes in net position (120,356) 164 -
Effective in fiscal 2009, with the passage of State legislation, the State of Indiana began making
contributions to the 1925 Police 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 decline in the net asset position of 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), as well as
the cost of healthcare benefits to pension members which are not covered by State
contributions. In 2016, the regular Fire Department budget will pay retiree health care costs
while this change will occur in 2017 for the Police Department. In other words, the 1925 Police
and 1937 Firefighters’ pension funds will no longer pay retiree health insurance costs. Rather,
these costs will be paid from the regular police and fire operating budgets.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
22
General Fund Budgetary Highlights
The City prepares an annual budget for General Fund expenditures, which is subject to City of
South Bend Common Council approval for adoption, before November 1 of the year preceding
the budget period, according to state statute concerning the annual budget of second class cities
and towns. The Common Council adopted the 2015 budget at its meeting held in October
2014.
The General Fund budget applicable for fiscal 2015 is reported as follows:
Actual Budgetary
Original Final Basis Variance
Revenue $ 52,642,236 $ 54,344,268 $ 53,719,617 $ (624,651)
Expenditures 52,642,236 53,379,131 52,454,314 924,817
Surplus (deficit) - 965,137 1,265,303 300,166
General Fund revenue/transfers in was originally budgeted at $52,642,236 for fiscal 2015. During
the year, the General Fund revenue/transfers in budget was increased by $1,702,032 to
$54,344,268. The budget may be increased or decreased at any time based on updated revenue
projections. By closely aligning the budget with actual results, more meaningful analysis is made
possible. The revenue/transfers in budget was increased primarily due to an increase in the
property tax and intergovernmental revenue estimate because of higher collections than
anticipated.
During 2015, the General Fund collected $53,719,617 in revenue/transfers in on a budgetary
basis, which was $1,077,381 higher than the original budget. The primary reason for the revenue
pickup was a change in property tax collections that were higher than budgeted and additional
intergovernmental revenue.
General Fund expenditures/transfers out were originally budgeted at $52,642,236 for fiscal
2015. During the year, the General Fund expenditure/transfers out budget were increased
$736,895 to $53,379,131. Additional appropriations were passed for Fire Department overtime
and other purposes. Carryforward of unspent encumbrances from 2014 also increased the 2015
amended budget.
General Fund spending is reviewed on a monthly basis under the direction of the City Controller
to ensure spending remains within budgetary constraints. Monthly reviews are conducted as
required with General Fund department management to review spending projections to ensure
that annual expenditures remain within the budgetary levels. Budget amendments for cost-
neutral redistribution between expense categories (i.e., personnel, supplies, services, capital)
were submitted to Common Council four times during 2015, as required to adjust the budget to
prevent any budget overruns in any expenditure category.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
23
Additional appropriations for projects, initiatives, or unbudgeted spending requirements within
the General Fund are presented to the Common Council for adoption as deemed necessary by
the Mayor.
General Fund expenditures/transfers out incurred on a budgetary basis, including cash expended
and outstanding encumbrances as of year-end December 31, 2015, amounted to $52,454,314.
The expenditures/transfers out and commitments as of year-end December 31, 2015 are less
than the 2015 amended General Fund budget by $924,817 or 1.7%. The largest savings were in
the police, legal and administration/finance department budgets as personnel and other costs
spent were less than budgeted due to position vacancies and other factors. In addition, a
budgeted transfer of $500,000 from the General Fund to the Emergency Medical Services (EMS)
Fund for capital was not made due to special Medicaid collections received in the EMS Fund.
Capital Assets and Debt Administration
Statement of Capital Assets
Governmental Business type Government-wide
Activities Activities Activities
2015 2014 (restated)2015 2014 (restated)2015 2014 (restated)
Assets not depreciated
L and $ 15,106,806 $ 15,106,806 $ 2,614,016 $ 3,773,864 $ 17,720,822 $ 18,880,670
Construction in progress 5,339,423 3,698,336 16,644,050 17,242,386 21,983,473 20,940,722
Total 20,446,229 18,805,142 19,258,066 21,016,250 39,704,295 39,821,392
Assets depreciated
Buildings 128,082,279 128,065,629 85,178,794 87,683,548 213,261,073 215,749,177
Non-buildi ng improvements 16,616,553 16,616,553 28,186,217 29,427,578 44,802,770 46,044,131
Machinery and equipment 45,543,924 46,700,042 40,171,610 36,453,578 85,715,534 83,153,620
Roads and Infrastructure 434,344,887 431,536,099 199,721,525 197,923,650 634,066,412 629,459,749
Total Cost 624,587,643 622,918,323 353,258,146 351,488,354 977,845,789 974,406,677
Accumulated depreciation
Buildings 47,274,258 43,717,720 34,631,698 35,773,700 81,905,956 79,491,420
Non-buildi ng improvements 9,242,882 8,708,806 6,193,452 6,982,898 15,436,334 15,691,704
Machinery and equipment 30,808,402 29,554,115 22,524,631 23,957,630 53,333,033 53,511,745
Roads 292,321,510 280,745,718 68,662,837 64,016,923 360,984,347 344,762,641
Total 379,647,052 362,726,359 132,012,618 130,731,151 511,659,670 493,457,510
Net Depreciated Assets 244,940,591 260,191,964 221,245,528 220,757,203 466,186,119 480,949,167
$ 520,770,559 Net Capital Assets $ 265,386,820 $ 278,997,106 $ 240,503,594 $ 241,773,453 $ 505,890,414
The investment in capital assets includes land and land improvements, buildings and building
improvements, vehicles, information technology equipment, machinery and equipment, and
construction in progress. A detailed explanation of these capital assets can be found in the Notes
to the Basic Financial Statements.
Under the category of roads and infrastructure, the current cost amount of $634,066,412
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.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
24
Major Capital Asset Project Spending in 2015
Included in capital asset additions for 2015 were the following projects:
• Century Center - $4.9 million – specialty lighting, HVAC upgrades and other
improvements financed by a bond, county hotel/motel tax and other sources.
• Infrastructure - $2.8 million – street improvements on Lincoln Way, Madison, Marion and
Fellows/Ireland Road finance by TIF and bond sources.
• Police Department - $1.6 million – for replacement vehicles and equipment financed by
capital leases and other sources.
• Wastewater - $5.7 million – for wastewater plant and sewer improvements financed by
bond proceeds and other sources.
Capital Assets Analysis
As of December 31, 2015, government-wide capital assets were valued at $505,890,414, net of
accumulated depreciation, a decrease of $14,880,145, or 2.85%, since December 31, 2014.
Construction in Progress increased by $1,042,751, and capitalized assets in land, buildings,
improvements, machinery and equipment, and roads decreased by $15,922,896, net of
depreciation, since December 31, 2014. On January 1, 2013, the City instituted a new
capitalization policy that included significantly higher thresholds for expenditures to qualify as
capital assets. Consequently, many purchases formerly considered as capital assets no longer
qualify as such. The asset decrease is the result of fewer assets being added to the register as
those assets that remain continue to depreciate.
At December 31, 2015, the cost of Roads & Infrastructure ($634,066,412) was the major asset
class followed by Buildings ($213,261,073) and Machinery & Equipment ($85,715,534).
Total depreciation expense was $30,426,526 for 2015, as compared to $29,930,159 for 2014.
Depreciation expense was $19,905,882 for governmental activities and $10,520,644 for
business-type activities for 2015.
Additional information on capital assets can be found in the notes to the financial statements in
Note 6.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
25
Debt Administration
Outstanding debt principal as of December 31, 2015 was $251,637.449, an increase of
$16,551,579, or 7.0%, from 2014. City outstanding debt includes revenue bonds, mortgage
bonds, notes and loans payable and capital leases.
Type Beginning Additions Retirements Ending
Revenue bonds 196,072,386$ 89,495,000$ (74,879,575)$ 210,687,811$
Mortgage bonds 21,812,152 - (2,055,614) 19,756,538
Notes and loans 5,412,155 4,167,897 (1,289,401) 8,290,651
Capital leases 11,789,177 4,860,622 (3,747,350) 12,902,449
Total Debt 235,085,870$ 98,523,519$ (81,971,940)$ 251,637,449$
During 2015, the City entered into several new bond financing agreements to finance various
improvements for street infrastructure, parks and at Century Center. The City of South Bend
Redevelopment Commission issued $25 million dollars in revenue bonds for the “smart streets”
downtown two-way conversion project. The City of South Bend Building Corporation issued
$5.6 million dollars in EDIT bonds to finance parks improvements. The City issued an Energy
Conservation loan in the amount of $4.17 million to finance improvements at the Century
Center, with the backing of a future funding pledge from the Saint Joseph County Hotel/Motel
Tax Board and an interest rebate program with the federal government. In addition, during
2015, the City issued 2015 Eddy Street Commons bonds ($31.5 million dollars) and 2015 Sewer
Bonds ($27.4 million dollars) to refund existing debt and realize net present value savings and
lower future debt service costs.
During 2015, the City entered into capital lease agreements in the amount of $4.86 million to
purchase certain vehicles, copiers, and equipment. The lease terms are typically for five years
with semi-annual debt service paid from the operating budgets of the user departments. Capital
lease financing is used to acquire police vehicles, public works vehicles, computer replacements,
copiers and other vehicles and equipment. The City solicits competitive financing proposals for
lease financing from local and national companies and the interest rate achieved during 2015 was
on average less than 2% for these leases.
Under the Indiana Constitution and State statute, the City's general obligation bonded debt and
certain other debt is subject to a legal limitation based upon 2% of total assessed value of real
and personal property. The City had no general obligation bonded debt outstanding at
December 31, 2015 and none of the above debt issuance amounts are subject to this debt
limitation. A calculation of the City’s legal debt limitation can be found in the statistical debt
capacity section of this document.
Additional information on debt can be found in the Notes to Financial Statements in Note 8 -
Leases and Note 9 - Long-term Debt.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
26
Significant Subsequent Events
On November 24, 2014, the City of South Bend submitted documents to participate in the
Municipalities Continuing Disclosure Cooperation Initiative (MCDC) with the United States
Securities and Exchange Commission. Effective January 1, 2015, the City adopted a new bond
continuing disclosure procedure. In May 2016, the City was contacted by the Security and
Exchange Commission and is in the process of negotiating a settlement agreement of this matter
which involves no monetary penalty.
In April 2016, the City of South Bend entered into Intergovernmental Agreements with the
Pokagon Band of the Potawatomi Indians for the development of the Pokagon Band’s 166-acre
site on the City’s southwest side that is expected to be the home of the Tribal Village and Four
Winds Casino, pending approval from the Bureau of Indian Affairs. The City may receive certain
revenue from this agreement but the amount has yet to be determined.
In 2016, the Indiana General Assembly authorized a special distribution of county option income
taxes to local governments in the State. The City of South Bend’s share, which was received in
May 2016, was $5,623,399 and was allocated $4,217,549 (75%) for road projects and
$1,405,850 (25%) in the Rainy Day Fund consistent with allowable State guidelines.
Economic Factors and 2016 Budget
Economic Factors
Property tax revenue, historically and at present, is the principal source of revenue for funding of
governmental activities within the City of South Bend.
The State of Indiana General Assembly enacted property tax reform legislation in March 2008.
Known as the “Circuit Breaker”, House Enrolled Act 1001 (HEA 1001) limits property taxes
paid to 1% of gross assessed value for residential homesteads, 2% for agricultural/rental
properties, and 3% for all other real and personal property.
Under current legislation, all Indiana localities assess properties based on market values. Each
year properties are “trended”, which involves comparing property values to sales activity in the
neighborhood and adjusting the current assessed values up or down according to the trended
data.
The Circuit Breaker legislation was phased in commencing in fiscal 2009 and has led to significant
reductions in property tax revenues available to fund city governmental operations since then. In
2015, the primary funds supported by property taxes (General Fund, Parks and Recreation
Fund, and Cumulative Capital Development Fund) lost approximately $31.6 million in taxable
property tax levy due to the circuit breaker caps (Indiana Legislative Services Agency, Circuit
Breaker Report, December 2015).
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
27
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
posture of fiscal conservatism similar to the management practices engaged in during fiscal 2015.
Special attention will be given to maintaining adequate fund reserves in the General Fund and the
income tax funds as they are very important to the continued financial strength of the City.
City Management believes that the national economic recovery will continue according to the
predictions of governmental economists, with low to zero inflation over the next fiscal period. In
addition, job creation is the primary engine to drive economic recovery, as the Congressional
Budget Office (CBO) predicts a growth in Gross Domestic Product (GDP) of 4.4% for 2016.
Unemployment rates in the South Bend-Mishawaka Metropolitan Area continue to improve and
were 5.3% in March 2016 as compared to a high of 13.0% in January 2010 (Bureau of Labor
Statistics).
2016 Budget and Beyond
The City will engage to ensure effective delivery of required services to taxpayers and citizens
within the constraints of available financial resources. The City will continue to provide required
services within the constraints of a balanced General Fund budget. For 2016 and 2017, the City
has enacted a “zero growth” budget expenditure target goal for all funds supported by property
and income tax revenue. In addition, the City has engaged in a process of program budgeting
with the Center for Priority Based Budgeting for the 2017 budget. This program budgeting will
be in addition to the state-required fund and account budgeting through the Indiana Department
of Local Government Finance.
Preliminary projections of circuit breaker property tax losses indicate a potential decline of
property tax revenue of $2.54 million dollar in the General Fund, $510 thousand dollars in the
Parks & Recreation Fund and $3.8 million dollars in the Tax Increment Financing funds in fiscal
year 2020 due to the expiration of some special credits to local governments in Saint Joseph
County and Lake County. City Management is aware of this fiscal situation and is developing
strategies to address this matter. One strategy is to maintain a well-financed Rainy Day Fund.
This fund received a special distribution of county option income tax funds of $1.4 million dollars
in May 2016 and had cash reserves of $10.2 million dollars at May 31, 2016. No spending is
currently planned for this fund.
City of South Bend, Indiana
Management’s Discussion and Analysis (Continued)
28
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 2017 that will remain fiscally responsible to
the effective delivery of required services to city citizens and stakeholders within the existing
revenue constraints. Specific concerns for the 2017 budget include the continuing impact of
circuit breaker property tax reform on City revenue, high health and pension costs and other
stagnant or declining revenue sources such as gasoline, wheel and auto excise taxes.
Requests for Information
This Management’s Discussion and Analysis, as contained within the City of South Bend
Comprehensive Annual Financial Report, is intended to provide readers with a general overview
of the financial condition of the City of South Bend as of December 31, 2015. Questions
concerning any of the information provided in this report, or requests for additional information,
should be addressed to:
John H. Murphy, City Controller
City of South Bend
Department of Administration and Finance
227 W. Jefferson Boulevard, 12th Floor
South Bend, Indiana 46601
Telephone 574-235-7678
Facsimile 574-235-9928
Email jmurphy@southbendin.gov
City of South Bend
June 30, 2016
City of South Bend, Indiana
Statement of Net Position
December 31, 2015
Primary Government
Governmental
Activities
Business-type
Activities Total
Assets
Cash and cash equivalents$66,065,948$4,691,879$70,757,827
Investments 127,318,854 16,959,261 144,278,115
Receivables:
Taxes 1,014,875-1,014,875
Accounts 1,071,313 8,220,214 9,291,527
Interest 253,448 92,362 345,810
Intergovernmental 2,736,675-2,736,675
Loans 6,644,346-6,644,346
Allowance for doubtful accounts-(130,000)(130,000)
Internal balances(19,368)19,368-
Inventory 896,684 532,596 1,429,280
Prepaid expenses 412,533 69,034 481,567
Restricted assets 60,300 44,071,651 44,131,951
Property held for resale 15,019,163-15,019,163
Net pension asset 5,321,026-5,321,026
Capital assets:
Assets not subject to depreciation 20,446,229 19,258,063 39,704,292
Assets subject to depreciation 244,940,591 221,245,530 466,186,121
Total assets 492,182,617 315,029,958 807,212,575
Deferred Outflows of Resources
Unamortized loss on refunding 2,520,464 2,413,859 4,934,323
Deferred outflows related to pensions 21,933,716-21,933,716
Total deferred outflows of resources 24,454,180 2,413,859 26,868,039
Liabilities
Accounts payable 7,609,656 2,573,023 10,182,679
Due to other governmental units-160,098 160,098
Performance deposits payable 82,138 37,437 119,575
Accrued liabilities and other:
Accrued payroll payable 859,468 297,135 1,156,603
Accrued interest payable 142,241 281,553 423,794
Taxes payable 1,628-1,628
Customer deposits payable-1,635,376 1,635,376
Other current payables 11,465 118,173 129,638
Noncurrent liabilities:
Due within one year -
Accrued interest payable from restricted assets 1,696,265-1,696,265
Compensated absences 4,604,779 595,102 5,199,881
Notes and loans payable 184,371 345,456 529,827
Mortgage bonds payable 1,691,120 288,880 1,980,000
Claims payable 2,574,044-2,574,044
Capital leases 2,565,559 1,381,971 3,947,530
Revenue bonds payable 8,595,000 7,870,000 16,465,000
The Notes to Financial Statements are an
Integral Part of this Statement.29
City of South Bend, Indiana
Statement of Net Position (Continued)
December 31, 2015
Primary Government
Governmental
Activities
Business-type
Activities Total
Liabilities (Continued)
Noncurrent liabilities (Continued) -
Due in more than one year:
Notes and loans payable$4,647,381$3,113,443$7,760,824
Mortgage bonds payable 12,213,853 5,562,685 17,776,538
Capital leases 5,925,848 3,029,071 8,954,919
Net OPEB obligation 11,660,935-11,660,935
Net pension liability 191,240,248-191,240,248
Revenue bonds payable 99,220,890 95,001,921 194,222,811
Total liabilities 355,526,889 122,291,324 477,818,213
Deferred Inflows of Resources
Unamortized service agreement-335,417 335,417
Unamortized gain on sale/leaseback-5,663 5,663
Deferred inflows related to pensions 20,250,013-20,250,013
Total deferred inflows of resources 20,250,013 341,080 20,591,093
Net Position
Net investment in capital assets 157,604,691 141,998,384 299,603,075
Restricted for:
Debt service 5,858,374 809,072 6,667,446
Depreciation fund-11,599,084 11,599,084
Customer repair and deposit fund-3,157,650 3,157,650
Cash with fiscal agent-221,552 221,552
Bond reserve fund 3,279,178 5,710,619 8,989,797
Operating reserve fund-5,897,241 5,897,241
Capital outlay-1,002,072 1,002,072
Unrestricted(25,882,348)24,415,739(1,466,609)
Total net position$140,859,895$194,811,413$335,671,308
The Notes to Financial Statements are an
Integral Part of this Statement.30
City of South Bend, Indiana
Program Revenues
Expenses
Charges for
Services
Operating Grants
and
Contributions
Capital Grants
and
Contributions
Functions/Programs
Primary government:
Governmental activities:
General government$21,572,776$1,188,531$485,764$-
Public safety 56,528,448 529,386 2,545-
Highways and streets 20,045,444 676,429--
Community and economic development 40,727,612 408,654 1,698,980-
Culture and recreation 20,300,768 3,726,359 626,192-
Bond issuance costs 372,432---
Interest on long-term debt 4,762,714---
Total governmental activities 164,310,194 6,529,359 2,813,481-
Business-type activities:
Water Utility 13,609,378 14,204,285--
Wastewater Utility 25,737,867 36,638,804--
Century Center 4,854,747 4,202,564-4,683,424
Consolidated Building 3,552,347 2,037,950--
Parking Garage 2,139,182 968,417--
Solid Waste 5,243,972 5,364,871--
Blackthorn Golf Course 165,977 109,949--
Emergency Medical Services 6,596,206 6,470,446--
Total business-type activities 61,899,676 69,997,286-4,683,424
Total primary government$226,209,870$76,526,645$2,813,481$4,683,424
General revenues:
Property taxes
Income taxes
Grants and contributions not restricted to specific programs
Investment income
Other miscellaneous income
Gain on sale of fixed assets
Total general revenues
Special Item- Disposal of operations
Transfers
Change in Net Position
Net Position- Beginning of year (as restated)(Note 25)
Net Position- End of year
The Notes to Financial Statements are an
Integral Part of this Statement.31
Statement of Activities
Year Ended December 31, 2015
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental
Activities
Business-type
Activities Total
$(19,898,481)$-$(19,898,481)
(55,996,517)-(55,996,517)
(19,369,015)-(19,369,015)
(38,619,978)-(38,619,978)
(15,948,217)-(15,948,217)
(372,432)-(372,432)
(4,762,714)-(4,762,714)
(154,967,354)-(154,967,354)
-594,907 594,907
-10,900,937 10,900,937
-4,031,241 4,031,241
-(1,514,397)(1,514,397)
-(1,170,765)(1,170,765)
-120,899 120,899
-(56,028)(56,028)
-(125,760)(125,760)
-12,781,034 12,781,034
(154,967,354)12,781,034(142,186,320)
72,032,049-72,032,049
24,507,308-24,507,308
25,487,112-25,487,112
1,322,674 358,918 1,681,592
9,978,698-9,978,698
1,235,744-1,235,744
134,563,585 358,918 134,922,503
-(1,180,964)(1,180,964)
2,846,415(2,846,415)-
(17,557,354)9,112,573(8,444,781)
158,417,249 185,698,840 344,116,089
$140,859,895$194,811,413$335,671,308
32
City of South Bend, Indiana
General Fund
Parks and
Recreation
Public Safety
LOIT COIT EDIT
Assets
Cash and cash equivalents$5,899,634$793,970$130,023$2,447,792$1,999,978
Investments 24,517,570 3,119,955 510,935 9,618,756 7,859,043
Receivables:
Taxes-----
Accounts 466,784 3,421-1,457 150,000
Interest 48,584 6,154 1,024 19,210 15,673
Intergovernmental-----
Loans-----
Due from other funds 36,769 9,057-182-
Advances to other funds 491,665--1,589,771-
Inventory-45,197---
Property held for resale---174,999 270,001
Restricted assets-----
Total assets$31,461,006$3,977,754$641,982$13,852,167$10,294,695
Liabilities
Accounts payable$159,795$71,705$-$788,267$65,387
Due to other funds 20,202 6,506--85
Advances from other funds-----
Performance deposits payable 78,906----
Accrued liabilities and other:
Accrued payroll payable 579,249 76,870 88,715 4,290-
Taxes payable 798 830---
Other current payables-1,361---
Total liabilities 838,950 157,272 88,715 792,557 65,472
Fund Balances
Nonspendable 491,665 45,197-1,764,770 270,001
Restricted-3,775,285 553,267--
Committed-----
Assigned 466,088--11,294,840 9,959,222
Unassigned 29,664,303----
Total fund balances 30,622,056 3,820,482 553,267 13,059,610 10,229,223
Total liabilities and fund
balances$31,461,006$3,977,754$641,982$13,852,167$10,294,695
The Notes to Financial Statements are an
Integral Part of this Statement.33
Governmental Funds
Balance Sheet
December 31, 2015
River West TIF
Redevelopment
Authority Debt
Service Nonmajor Funds Total
$6,629,106$1,217,412$44,632,291$63,750,206
26,049,496-46,650,201 118,325,956
531,011-483,864 1,014,875
--405,288 1,026,950
51,868-92,947 235,460
--2,736,675 2,736,675
403,714-6,240,632 6,644,346
--1,373 47,381
--5,571,713 7,653,149
---45,197
10,884,221-3,689,942 15,019,163
--60,300 60,300
$44,549,416$1,217,412$110,565,226$216,559,658
$2,303,036$-$3,704,218$7,092,408
--39,255 66,048
500,000-7,153,149 7,653,149
3,232--82,138
--77,085 826,209
---1,628
--9,981 11,342
2,806,268-10,983,688 15,732,922
11,011,644-13,950,624 27,533,901
30,731,504 1,217,412 76,727,038 113,004,506
--2,238,475 2,238,475
--10,883,997 32,604,147
--(4,218,596)25,445,707
41,743,148 1,217,412 99,581,538 200,826,736
$44,549,416$1,217,412$110,565,226$216,559,658
34
City of South Bend, Indiana
Governmental Funds
Reconciliation of the Balance Sheet to the
Statement of Net Position
December 31, 2015
Fund Balance Reported in Governmental Funds$200,826,736
Amounts reported for governmental activities in the statement
of net position are different because:
Capital assets used in governmental activities are not financial resources
and are not reported in the funds 264,066,595
Prepaid expenses are not available to pay for current period
expenditures, and therefore are deferred in the funds 202,880
Net pension assets are not available to pay for current period
expenditures, and therefore are reported in the funds 5,321,026
Deferred outflows of resources related to pensions are not available to
pay for current period expenditures, and therefore are reported in the
funds 21,933,716
Deferred inflows on refunding are not due and payable in the current
period and are not reported in the funds 2,520,464
Notes and loans payable, mortgage bonds payable, revenue bonds
payable, and capital leases are not due and payable in the current
period and are not reported in the funds(135,018,317)
Accrued interest is not due and payable in the current period and is not
reported in the funds(1,838,382)
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(4,481,544)
Deferred inflows of resources related to pensions do not present a claim
on current financial resources and are not reported as fund liabilities(20,250,013)
Net OPEB obligations do not present a claim on current financial
resources and are not reported as fund liabilities(11,660,935)
Net pension liabilities do not present a claim on current financial
resources and are not reported as fund liabilities(191,240,248)
Other long-term liabilities do not present a claim on current financial
resources and are not reported as fund liabilities(123)
Internal service funds are included as part of governmental activities 10,478,040
Net Position of Governmental Activities$140,859,895
The Notes to Financial Statements are an
Integral Part of this Statement.35
City of South Bend, Indiana
General Fund
Parks and
Recreation
Public Safety
LOIT COIT EDIT
Revenue
Property taxes$37,278,746$7,480,452$-$-$-
Income taxes--6,466,190 8,859,912 9,181,206
Licenses and permits 151,923----
Professional sports development taxes-----
Intergovernmental 16,008,619 666,224---
Charges for services 999,899 1,686,201-531,926 300,082
Fines and forfeitures 14,081---354,660
Investment income 106,976 8,636 5,377 85,007 56,850
Rental income-----
Other revenue 6,012,866 300,984---
Total revenue 60,573,110 10,142,497 6,471,567 9,476,845 9,892,798
Expenditures
Current:
General government 5,221,067---73,674
Public safety 54,211,836-6,926,864--
Highways and streets 887,568----
Community and economic
development-----
Culture and recreation 1,414,639 10,193,689---
Bond issuance costs-----
Capital outlay-34,130-9,097,739 1,460,937
Debt service:
Principal 15,968 292,172-1,180,924 1,101,284
Interest on long-term debt 2,954 7,686-156,093 250,260
Total expenditures 61,754,032 10,527,677 6,926,864 10,434,756 2,886,155
Excess of Revenue (Under) Over
Expenditures(1,180,922)(385,180)(455,297)(957,911)7,006,643
Other Financing Sources (Uses)
Debt proceeds-34,130-110,620-
Premium on refunding debt-----
Proceeds from sale of capital assets-----
Transfers in 4,282,212 888,385---
Transfers out(66,639)--(2,609,981)(7,105,136)
Payment to bond refunding escrow
agent-----
Total other financing
sources (uses)4,215,573 922,515-(2,499,361)(7,105,136)
Net Change in Fund Balances 3,034,651 537,335(455,297)(3,457,272)(98,493)
Fund Balances- Beginning of year 27,587,405 3,283,147 1,008,564 16,516,882 10,327,716
Fund Balances - End of year$30,622,056$3,820,482$553,267$13,059,610$10,229,223
The Notes to Financial Statements are an
Integral Part of this Statement.36
Governmental Funds
Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2015
River West TIF
Redevelopment
Authority Debt
Service Nonmajor Funds Total
$16,288,169$-$10,478,621$71,525,988
---24,507,308
---151,923
--626,192 626,192
492,000-13,049,216 30,216,059
14,061-2,261,999 5,794,168
--85,586 454,327
213,455 11,117 765,824 1,253,242
95,414-73,335 168,749
138,832-1,569,188 8,021,870
17,241,931 11,117 28,909,961 142,719,826
--3,125,537 8,420,278
--750,705 61,889,405
--11,900,073 12,787,641
--11,068,013 11,068,013
-2,002 1,245,374 12,855,704
-372,432-372,432
22,356,677-13,604,087 46,553,570
3,006,371 2,769,874 4,952,799 13,319,392
1,310,949 2,085,665 1,578,691 5,392,298
26,673,997 5,229,973 48,225,279 172,658,733
(9,432,066)(5,218,856)(19,315,318)(29,938,907)
-31,450,000 37,831,843 69,426,593
-1,682,169 237,618 1,919,787
1,202,858-32,886 1,235,744
10,763,908 4,863,500 10,700,676 31,498,681
(2,156,762)-(16,713,748)(28,652,266)
-(35,698,815)-(35,698,815)
9,810,004 2,296,854 32,089,275 39,729,724
377,938(2,922,002)12,773,957 9,790,817
41,365,210 4,139,414 86,807,581 191,035,919
$41,743,148$1,217,412$99,581,538$200,826,736
37
City of South Bend, Indiana
Governmental Funds
Reconciliation of the Statement of Revenue, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year Ended December 31, 2015
Net Change in Fund Balances- Total governmental funds$9,790,817
Amounts reported for governmental activities in the statement
of activities are different because:
Governmental funds report capital outlays as expenditures; however, in the statement of activities,
these costs are allocated over their estimated useful lives as depreciation:
Capital outlay 9,894,765
Depreciation expense(19,905,882)
Net book value of assets disposed of and transferred(3,599,169)
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 29,314
Debt proceeds (from notes and loans payable, mortgage bonds payable, revenue bonds payable, and
capital leases) provide financial resources to governmental funds, but issuing debt increases long-
term liabilities in the statement of net position(69,426,593)
Repayment of debt principal is an expenditure in the governmental funds, but not in the statement of
activities (where it reduces long-term debt)13,319,392
Payment to bond refunding agent 35,698,815
Other adjustments related to debt premiums, discounts, deferred inflows, and deferred outflows(4,124,116)
Other adjustments(141,242)
Changes in accrued interest payable and other 35,784
Changes in compensated absences reported in the statement of activities do not require the use of
current resources, and therefore are not reported in the fund statements until they come due
for payment(128,705)
Changes in the net OPEB obligation reported in the statement of activities do not require the use of
current resources, and therefore are not reported in the fund statements until they come due
for payment(1,617,630)
Changes in the net pension asset, net pension liabilities, and related deferred inflows and outflows
reported in the statement of activities do not require the use of current resources, and therefore
are not reported in the fund statements until they come due for payment 13,066,446
Internal service funds are included as part of governmental activities - Net change in position(397,726)
Adjustment for items included above:
Prepaid expenses(4,592)
Capital outlay and other(181,453)
Depreciation expense 128,868
Accrued interest payable 61
Net book value of assets disposed of 19,832
Repayment of debt principal(4,682)
Compensated absences(9,658)
Change in Net Position of Governmental Activities$(17,557,354)
The Notes to Financial Statements are an
Integral Part of this Statement.38
City of South Bend, Indiana
Proprietary Funds
Statement of Net Position
December 31, 2015
Enterprise Funds
Governmental
Activities
Water Utility
Wastewater
Utility Century Center
Nonmajor
Enterprise Total
Proprietary
Internal Service
Fund
Assets
Current assets:
Cash and cash equivalents$788,964$1,218,393$1,096,892$1,587,630$4,691,879$2,315,742
Investments 3,100,284 7,777,728-6,081,249 16,959,261 8,992,898
Receivables:
Accounts 844,999 2,509,351 140,012 4,725,852 8,220,214 44,363
Interest 19,378 60,815-12,169 92,362 17,988
Allowance for doubtful accounts(50,000)(80,000)--(130,000)-
Due from other funds 20,959 3,786 10,059 1,170 35,974 4,172
Inventory 278,446 216,724 37,426-532,596 851,487
Prepaid expenses 24,087 34,480 10,467-69,034 209,653
Total current assets 5,027,117 11,741,277 1,294,856 12,408,070 30,471,320 12,436,303
Noncurrent assets:
Restricted assets 8,256,321 33,425,359 1,002,072 1,387,899 44,071,651-
Capital assets:
Assets not subject to depreciation 376,951 17,008,258 713,434 1,159,420 19,258,063-
Assets subject to depreciation 59,153,687 130,405,156 18,750,486 12,936,201 221,245,530 1,320,225
Total noncurrent assets 67,786,959 180,838,773 20,465,992 15,483,520 284,575,244 1,320,225
Total assets 72,814,076 192,580,050 21,760,848 27,891,590 315,046,564 13,756,528
Deferred Outflows of Resources-
Unamortized loss on refunding 18,812 2,395,047--2,413,859-
Liabilities
Current liabilities:
Accounts payable 309,496 1,887,037 67,832 308,658 2,573,023 517,248
Due to other governmental units---160,098 160,098-
Due to other funds 3,786 2,077-10,743 16,606 4,873
Performance deposits payable---37,437 37,437-
Accrued liabilities and other:
Accrued payroll payable 62,310 85,218 46,166 103,441 297,135 33,259
Accrued interest payable 528 189,945-91,080 281,553 124
Customer deposits payable 1,514,085-121,291-1,635,376-
Other current payables 60,312-57,861-118,173-
Compensated absences 209,894 235,936-149,272 595,102 123,235
Notes and loans payable 187,424 158,032--345,456-
Mortgage bonds payable-68,880-220,000 288,880-
Claims payable-----2,574,044
Capital leases 17,577 464,592-899,802 1,381,971 5,275
Revenue bonds payable 1,165,000 6,705,000--7,870,000-
Total current liabilities 3,530,412 9,796,717 293,150 1,980,531 15,600,810 3,258,058
Noncurrent liabilities:
Notes and loans payable 863,800 2,249,643--3,113,443-
Mortgage bonds payable-343,016-5,219,669 5,562,685-
Capital leases 57,812 1,041,603-1,929,656 3,029,071 20,430
Revenue bonds payable 16,475,432 78,526,489--95,001,921-
Total noncurrent liabilities 17,397,044 82,160,751-7,149,325 106,707,120 20,430
Total liabilities 20,927,456 91,957,468 293,150 9,129,856 122,307,930 3,278,488
Deferred Inflows of Resources
Unamortized service agreement--335,417-335,417-
Unamortized gain on sale/leaseback---5,663 5,663-
Total deferred inflows of
resources--335,417 5,663 341,080-
The Notes to Financial Statements are an
Integral Part of this Statement.39
City of South Bend, Indiana
Proprietary Funds
Statement of Net Position (Continued)
December 31, 2015
Enterprise Funds
Governmental
Activities
Water Utility
Wastewater
Utility Century Center
Nonmajor
Enterprise Total
Proprietary
Internal Service
Fund
Net Position
Net investment in capital assets$40,782,405$74,650,027$19,463,920$7,102,032$141,998,384$1,294,520
Restricted:
Depreciation fund 2,876,026 8,723,058--11,599,084-
Debt service fund 4,398 804,674--809,072-
Customer repair and deposit fund 1,509,816 1,647,834--3,157,650-
Cash with fiscal agent 32,120 77,071-112,361 221,552-
Bond reserve fund 1,604,996 4,105,623--5,710,619-
Operating reserve fund 2,228,964 3,668,277--5,897,241-
Capital outlay fund--1,002,072-1,002,072-
Unrestricted 2,866,707 9,341,065 666,289 11,541,678 24,415,739 9,183,520
Total net position$51,905,432$103,017,629$21,132,281$18,756,071$194,811,413$10,478,040
The Notes to Financial Statements are an
Integral Part of this Statement.40
City of South Bend, Indiana
Proprietary Funds
Statement of Revenue, Expenses, and Changes in Net Position
Year Ended December 31, 2015
Enterprise Funds
Governmental
Activities
Water Utility
Wastewater
Utility Century Center
Non major
Enterprise Total
Proprietary
Internal Service
Fund
Operating Revenue
Metered revenue$9,477,512$35,471,904$-$-$44,949,416$-
Convention fees--2,701,564-2,701,564-
Fire protection revenue 1,988,234---1,988,234-
Licenses and permits-3,500-1,839,150 1,842,650-
Interest and penalty charges 111,049---111,049-
Parking fees--115,550 968,397 1,083,947-
Solid waste fees---4,859,903 4,859,903-
Employee/Employer contributions-----15,771,041
Charges for sales and services-185,069-6,470,435 6,655,504 7,364,529
Water leak insurance revenue 959,779---959,779-
Golf course fees---109,949 109,949-
Charges to other funds 1,166,640 92,955--1,259,595-
Other 501,071 882,073-621,109 2,004,253 116,305
Total operating revenue 14,204,285 36,635,501 2,817,114 14,868,943 68,525,843 23,251,875
Operating Expenses
Cost of water 5,903,635---5,903,635-
Cost of sewage treatment-11,451,460--11,451,460-
Other operation and maintenance---13,578,480 13,578,480 6,888,584
General and administration 2,030,862 2,106,138 4,039,630 1,790,220 9,966,850 1,346,631
Insurance claims and premiums-----15,334,772
Plumbing contractors 980,149---980,149-
Customer service 1,736,675---1,736,675-
Depreciation 1,967,340 6,450,920 815,117 1,287,267 10,520,644 128,868
Total operating expenses 12,618,661 20,008,518 4,854,747 16,655,967 54,137,893 23,698,855
Operating Income (Loss)1,585,624 16,626,983(2,037,633)(1,787,024)14,387,950(446,980)
Nonoperating Revenue (Expenses)
Investment income 77,526 241,354 809 39,229 358,918 69,432
Hotel/Motel tax revenue--1,313,450-1,313,450-
Interest expense(863,067)(3,419,351)-(394,313)(4,676,731)-
Other nonoperating expenses-(1,474,728)--(1,474,728)-
(Loss) gain on sale of assets(127,650)(835,259)-(87,057)(1,049,966)(19,833)
Debt service charge-----(345)
Other nonoperating revenue (expenses) -
Charges-3,303 72,000(477,668)(402,365)-
Total nonoperating
(expenses) revenue(913,191)(5,484,681)1,386,259(919,809)(5,931,422)49,254
Income (Loss) - Before contributions 672,433 11,142,302(651,374)(2,706,833)8,456,528(397,726)
Capital Contributions -Other capital
contributions--4,683,424-4,683,424-
Special Item- Disposal of operations ---(1,180,964)(1,180,964)-
Transfers In---2,663,144 2,663,144-
Transfers Out(1,942,608)(3,497,207)(50,000)(19,744)(5,509,559)-
Change in Net Position(1,270,175)7,645,095 3,982,050(1,244,397)9,112,573(397,726)
Net Position- Beginning of year(restated)53,175,607 95,372,534 17,150,231 20,000,468 185,698,840 10,875,766
Net Position - End of year$51,905,432$103,017,629$21,132,281$18,756,071$194,811,413$10,478,040
The Notes to Financial Statements are an
Integral Part of this Statement.41
City of South Bend, Indiana
Proprietary Funds
Statement of Cash Flows
Year Ended December 31, 2015
Enterprise Funds
Governmental
Activities
Water Utility
Wastewater
Utility Century Center
Nonmajor
Enterprise Total
Proprietary
Internal Service
Fund
Cash Flows from Operating Activities
Receipts from customers and users$13,075,199$36,557,983$2,730,525$16,197,317$68,561,024$6,126,912
Receipts from interfund services and reimbursements 1,166,640 33,551-344,740 1,544,931 17,122,063
Payments to suppliers(6,118,997)(4,434,497)(1,935,142)(5,947,550)(18,436,186)(20,343,902)
Payments to employees(4,683,844)(6,699,583)(2,148,822)(8,527,049)(22,059,298)(2,862,203)
Internal activity - Payments to other funds(4,809)(2,484,115)-(771,790)(3,260,714)(656,717)
Internal activity - Payments from other funds(3,267)---(3,267)-
Net cash provided by (used in)
operating activities 3,430,922 22,973,339(1,353,439)1,295,668 26,346,490(613,847)
Cash Flows from Noncapital Financing Activities
Transfers from other funds---2,663,144 2,663,144-
Hotel/Motel tax--1,313,450-1,313,450-
Transfers to other funds(1,942,608)(3,497,207)(50,000)(19,744)(5,509,559)-
Repayments of loans from other funds---(1,472,130)(1,472,130)-
Other nonoperating expense-(1,474,728)--(1,474,728)-
Other nonoperating revenue-3,303 72,000 82,679 157,982-
Net cash (used in) provided by
noncapital financing activities(1,942,608)(4,968,632)1,335,450 1,253,949(4,321,841)-
Cash Flows from Capital and Related Financing
Activities
Proceeds from capital debt refunding-27,440,000--27,440,000-
Proceeds from capital debt issued for future
capital purchase---1,387,899 1,387,899-
Proceeds from sales of capital assets 8,417--1,709,703 1,718,120-
Purchase of capital assets(216,729)(6,901,958)(195,394)(552,509)(7,866,590)(157,335)
Principal paid on capital debt(1,319,285)(35,031,335)-(1,084,741)(37,435,361)(4,682)
Interest paid on capital debt(732,394)(5,519,342)-(223,193)(6,474,929)(284)
Debt service charge(750)---(750)-
Net cash (used in) provided by
capital and related financing
activities(2,260,741)(20,012,635)(195,394)1,237,159(21,231,611)(162,301)
Cash Flows from Investing Activities
Interest received on investments 71,908 220,095 809 32,801 325,613 64,861
Proceeds from sale and maturities of investment
securities 186,071(2,008,997)-(2,123,792)(3,946,718)219,363
Net cash provided by (used in)
investing activities 257,979(1,788,902)809(2,090,991)(3,621,105)284,224
Net (Decrease) Increase in Cash and Cash
Equivalents(514,448)(3,796,830)(212,574)1,695,785(2,828,067)(491,924)
Cash and Cash Equivalents- Beginning of year 3,003,875 15,908,607 2,311,538 1,279,744 22,503,764 2,807,666
Cash and Cash Equivalents- End of year$2,489,427$12,111,777$2,098,964$2,975,529$19,675,697$2,315,742
The Notes to Financial Statements are an
Integral Part of this Statement.42
City of South Bend, Indiana
Proprietary Funds
Statement of Cash Flows (Continued)
Year Ended December 31, 2015
Enterprise Funds
Governmental
Activities
Water Utility
Wastewater
Utility Century Center
Nonmajor
Enterprise Total
Proprietary
Internal Service
Fund
Statement of Net Position Classification of Cash
and Cash Equivalents
Cash and investments$3,889,248$8,996,121$1,096,892$9,056,778$23,039,039$11,308,640
Restricted cash and investments 8,256,321 33,425,359 1,002,072-42,683,752-
Less amounts classified as investments(9,656,142)(30,309,703)-(6,081,249)(46,047,094)(8,992,898)
Total cash and cash equivalents$2,489,427$12,111,777$2,098,964$2,975,529$19,675,697$2,315,742
Reconciliation of Operating Income (Loss) to Net
Cash from Operating Activities
Operating income (loss)$1,585,624$16,626,983$(2,037,633)$(1,787,024)$14,387,950$(446,980)
Adjustments to reconcile operating income (loss)
to net cash from operating activities:
Depreciation and amortization 1,967,340 6,450,920 815,117 1,287,267 10,520,644 128,868
Changes in assets and liabilities:
Receivables(12,446)(122,390)31,794 1,642,058 1,539,016(7,698)
Allowance for uncollectable accounts 50,000 80,000--130,000-
Due from other funds(3,267)919(10,059)-(12,407)4,798
Inventory(68,437)(22,224)5,430 6,344(78,887)(1,269)
Prepaid expenses and other assets 14,410(1,735)(1,463)3,000 14,212(4,593)
Accounts payable(27,742)217,109(53,260)(39,756)96,351 372
Performance deposit 27,045---27,045-
Due to other funds(4,809)500-8,679 4,370 2,114
Accrued liabilities and other(96,796)-(103,365)175,100(25,061)(94,290)
Accrued payroll payable-(236,479)--(236,479)-
Compensated absences payable-(20,264)--(20,264)-
Estimate of unfiled claims-----(195,169)
Net cash provided by (used in)
operating activities$3,430,922$22,973,339$(1,353,439)$1,295,668$26,346,490$(613,847)
Noncash Investing, Capital, and Financing Activities
Capital assets acquired through lease$56,055$757,190$-$84,252$897,497$24,114
Capital assets disposed (at cost)411,965 6,416,043 316,875 6,318,423 13,463,306 117,068
Capital asset contribution--4,683,424-4,683,424-
Work in progress completed transferred to capital
assets 2,565,058---2,565,058-
Accumulated depreciation on disposals of capital
assets 275,898 5,580,785 316,875-6,173,558-
The Notes to Financial Statements are an
Integral Part of this Statement.43
City of South Bend, Indiana
Fiduciary Funds
Statement of Fiduciary Net Position
December 31, 2015
Pension Trust
Funds
Private-
Purpose Trust
Fund Agency Funds
Assets
Cash and cash equivalents$330,099$5,781$2,752,256
Investments 1,297,145 22,717-
Receivables - Interest 2,652 45-
Total assets 1,629,896 28,543$2,752,256
Liabilities
Accounts payable 180-$-
Accrued liabilities and other 248-412,690
Customer deposits payable--1,504,458
Police distribution payable--835,108
Total liabilities 428-$2,752,256
Net Position for Pension Benefits and Other
Purposes$1,629,468$28,543
The Notes to Financial Statements are an
Integral Part of this Statement.44
City of South Bend, Indiana
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
Year Ended December 31, 2015
Pension Trust
Funds
Private-
Purpose Trust
Fund
Additions
Investment income - Interest and dividends$7,051$164
Contributions:
On behalf 11,417,384-
Other 2,729-
Total contributions 11,420,113-
Total additions 11,427,164 164
Deductions
Benefit payments 11,520,804-
Administrative expenses 26,716-
Total deductions 11,547,520-
Net (Decrease) Increase in Net Position(120,356)164
Net Position- Beginning of year 1,749,824 28,379
Net Position- End of year$1,629,468$28,543
The Notes to Financial Statements are an
Integral Part of this Statement.45
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies
The following is a summary of the significant accounting policies used by the City of
South Bend:
Reporting Entity
The City of South Bend (the "City") was established under the laws of the State of
Indiana and operates under a Council-Mayor form of government. The accompanying
financial statements present the City and its component units, entities for which the City
is considered to be financially accountable. Although blended component units are legal
separate entities, in substance, they are part of the City's operations.
Blended Component Units
The South Bend Redevelopment Authority is a significant blended component unit of the
City. Although it is legally separate from the City, the Redevelopment Authority is
reported as if it were part of the City because its sole purpose is to finance and
construct land, building, and other improvements for use by the City. Financial
statements for the Redevelopment Authority are available at the City Controller's
Office, City of South Bend, 227 West Jefferson, 12th Floor County-City Building, South
Bend, Indiana 46601.
The South Bend Building Corporation, Inc. is also a legally separate nonprofit
corporation and a significant blended component unit of the City. The Building
Corporation is reported as if it were part of the City because its main purpose is to
finance construction and remodeling of City buildings. Debt of the Building Corporation
is repaid through lease payments from the City. Financial statements for the Building
Corporation are available at the City Controller's Office, City of South Bend, 227 West
Jefferson, 12th Floor County-City Building, South Bend, Indiana 46601.
Related Organizations
The City's officials are also responsible for appointing the members of the boards of
other organizations, but the City's accountability for these organizations does not extend
beyond making the appointments. The mayor and the Common Council appoint the
board members of the South Bend Housing Authority, South Bend Public
Transportation Corporation (TRANSPO), Urban Enterprise Association, 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.
46
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
Report Presentation
Governmental accounting principles require that financial reports include two different
perspectives - the government-wide perspective and the fund-based perspective. The
government-wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the nonfiduciary activities of the
primary government and its component units. The government-wide financial
statements are presented on the economic resources measurement focus and the full
accrual basis of accounting. Property taxes are recognized as revenues in the year for
which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met. The statements also
present a schedule reconciling these amounts to the modified accrual-based
presentation found in the fund-based statements.
The statement of activities demonstrates the degree to which the direct expenses of a
given function or segment are offset by program revenues. Direct expenses are those
that are clearly identifiable with a specific function or segment. Program revenues
include: (1) charges to customers or applicants for goods, services, or privileges
provided; (2) operating grants and contributions; and (3) capital grants and contributions,
including special assessments. Taxes and other items not properly included among
program revenues are reported instead as general revenue.
For the most part, the effect of interfund activity has been removed from these
statements. Exceptions to this general rule are charges between the City's enterprise
funds and various other functions of the City. Eliminations of these charges would distort
the direct costs and program revenues reported for the various functions concerned.
Separate financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide
financial statements. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements.
Fund Accounting
The City accounts for its various activities in several different funds in order to
demonstrate accountability for how we have spent certain resources - separate funds
allow us to show the particular expenditures that specific revenues were used for. The
various funds are aggregated into three broad fund types:
47
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
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, which is the primary operating fund, accounts for all financial
resources used to provide general government services, other than those specifically
assigned to another fund.
The Park and Recreation Fund is used to account for the operation of the City park
system. Financing is provided by a specific annual property tax levy to the extent that
user fees and miscellaneous revenues are insufficient to provide such financing.
The Public Safety Local Option Income Tax (LOIT) Fund is used to account for the
City's share of the public safety local option income tax. Expenditures are restricted
to public safety.
The County Option Income Tax (COIT) Fund is used to account for the City's share
of the county option income tax. Expenditures include any lawful purpose of the
City.
The Economic Development Income Tax (EDIT) Fund is to account for the City's
share of the County Economic Development Tax. Expenditures include any lawful
purpose of the City.
The River West TIF (Tax Incremental Financing) Fund is used to account for public
improvement projects in the river west economic development area. Financing is
provided by property tax proceeds in excess of those attributable to the assessed
value of property in the district before redevelopment. As of January 1, 2015, this
fund has been renamed the River West TIF Fund. This fund was formerly known as
the Airport TIF Fund.
The Redevelopment Authority Debt Service Fund is used 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.
48
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
Proprietary Funds include enterprise funds (which provide goods or services to users
in exchange for charges or fees) and internal service funds (which provide goods or
services to other funds of the City). The City reports the following funds as “major”
enterprise funds:
The Water Utility Fund accounts for the operation of the City's water distribution
system.
The Wastewater Utility Fund accounts for the operation of the City's wastewater
treatment plant, pumping stations, and collection systems.
The Century Center Fund accounts for the operation and maintenance of the City's
convention center. Financing is received from various user fees for conventions,
meetings, and other events held at the civic center and a subsidy from the St. Joseph
County's Special Funds Board of Managers.
The City’s internal service funds are used to account for various City liability coverage,
employee medical coverage, unemployment claims, 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 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 pension trust funds account for the activities of the 1925 Police and 1937 Fire
Pension Funds which accumulate resources for pension benefit payments.
The Private-Purpose Trust Fund reports a trust arrangement under which principal
and income benefit cemetery maintenance.
The agency funds account for assets held by the City as an agent for employee
payroll, pension, and payroll deductions and held for an entertainment center’s event
deposits.
49
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
Interfund Activity: During the course of operations, the City has activity between funds
for various purposes. Any residual balances outstanding at year end are reported as due
from/to other funds and advances to/from other funds. While these balances are
reported in fund financial statements, certain eliminations are made in the preparation of
the government-wide financial statements. Balances between the funds included in
governmental activities (i.e., the governmental and internal service funds) are eliminated
so that only the net amount is included as internal balances in the governmental activities
column. Similarly, balances between the funds included in business-type activities (i.e.,
the enterprise funds) are eliminated so that only the net amount is included as internal
balances in the business-type activities column.
Further, certain activity occurs during the year involving transfers of resources between
funds. In fund financial statements, these amounts are reported at gross amounts as
transfers in/out. While reported in fund financial statements, certain eliminations are
made in the preparation of the government-wide financial statements. Transfers
between the funds included in governmental activities are eliminated so that only the net
amount is included as transfers in the governmental activities column. Similarly, balances
between the funds included in business-type activities are eliminated so that only the net
amount is included as transfers in the business-type activities column.
Basis of Accounting
The governmental funds use the current financial resources measurement focus and the
modified accrual basis of accounting. This basis of accounting is intended to better
demonstrate accountability for how the City has spent its resources.
Expenditures are reported when the goods are received or the services are rendered.
Capital outlays are reported as expenditures (rather than as capital assets) because they
reduce the ability to spend resources in the future; conversely, employee benefit costs
that will be funded in the future (such as pension and retiree healthcare related costs, or
sick and vacation pay) are not counted until they come due for payment. In addition,
debt service expenditures, claims, and judgments are recorded only when payment is
due.
Revenues are not recognized until they are collected, or collected soon enough after the
end of the year that they are available to pay for obligations outstanding at the end of the
year. For this purpose, the City considers amounts collected within 60 days of year end
to be available for recognition. The following major revenue sources meet the
availability criterion: property taxes, franchise taxes, licenses, and interest associated
with the current fiscal period.
Proprietary funds and fiduciary funds use the economic resources measurement focus
and the full accrual basis of accounting. Revenue is recorded when earned and expenses
are recorded when a liability is incurred, regardless of the timing of related cash flows.
50
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
Specific Balances and Transactions
Cash and Cash Equivalents - Cash and cash equivalents include cash on hand, demand
deposits, and short-term investments with a maturity of three months or less when
acquired.
Investments - State statute (IC 5-13-9) authorizes the City to invest in securities,
including but not limited to, federal government securities, repurchase agreements, and
certain money market mutual funds. Certain other statutory restrictions apply to all
investments made by local governmental units.
Nonparticipating certificates of deposit, demand deposits, and similar nonparticipating
negotiable instruments that are not reported as cash and cash equivalents are reported
as investments at cost. A “nonparticipating” instrument is one that does not recognize
market fluctuations in its valuation.
Debt securities are reported at fair market value. Debt securities are defined as
securities backed by the full faith and credit of the United States Treasury or fully
insured or guaranteed by the United States or any United States government agency.
Open-end mutual funds are reported at fair market value.
Money market investments that mature within one year or less at the date of their
acquisition are reported at amortized cost. There is no material difference between
amortized cost and fair market value. Other money market investments are reported at
fair market value.
Investment income, including changes in the fair market value of investments, is
reported as revenue in the operating statement.
Inventories and Prepaid Items - Inventories are valued at cost, on a first-in, first-out
basis. Inventories of governmental funds are recorded as expenditures when consumed
rather than when purchased. Certain payments to vendors reflect costs applicable to
future fiscal years and are recorded as prepaid items in both government-wide and fund
financial statements.
Restricted Assets - Certain proceeds of the enterprise fund revenue bonds, as well as
certain resources set aside for their repayment, are classified as restricted assets on the
statement of net position because their use is limited by applicable bond covenants.
Restricted assets also include customer deposits, operating reserves, capital outlay
accounts, and debt service reserve funds.
51
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
Capital Assets - Capital assets, which include property, plant, equipment, intangible
assets, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are
reported in the applicable governmental or business-type activities column in the
government-wide financial statements. Capital assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are
recorded at estimated fair market value at the date of donation.
Capitalization thresholds (the dollar values above which asset acquisitions are added to
the capital asset accounts), depreciation methods, and estimated useful lives of capital
assets reported in the government-wide statements and proprietary funds are noted in
the table below.
The City has implemented retroactive reporting of its infrastructure as of December 31,
2006.
For depreciated assets, the cost of normal maintenance and repairs that do not add to
the value of the asset or materially extend asset lives are not capitalized.
All land purchases are capitalized regardless of acquisition price. Land is never
depreciated.
Major outlays for capital assets and improvements are capitalized when projects have
completed the construction phase. Interest incurred during the construction phase of
capital assets of business-type activities is included as part of the capitalized value of the
assets constructed.
Infrastructure, intangibles, buildings, equipment, roads, and vehicles are depreciated
using the straight-line method over the following useful lives:
Capital Asset Class
Capitalization
Threshold Lives (in years)
Buildings and improvements$100,000 20-30
Large office equipment 10,000 5-10
Vehicles and other equipment 10,000 5-20
Roads - Collectors and residential 250,000 40-50
Utilities infrastructure (large)250,000 30-99
52
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
Long-term Obligations - In the government-wide financial statements and the
proprietary fund types in the fund financial statements, long-term debt and other long-
term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund-type statement of net position. Bond
premiums and discounts are deferred and amortized over the life of the bonds using the
straight-line method; bonds payable are reported net of the applicable bond premium or
discount. Bond issuance costs are expensed at the time they are incurred. In the fund
financial statements, governmental fund types recognize bond issuances as an “other
financing source,” as well as bond premiums and discounts. Net position restricted for
debt service and for capital outlay shown in the business-type activities and in the
enterprise funds are restricted pursuant to state statute and/or local ordinance.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and/or balance sheet will sometimes
report a separate section for deferred outflows of resources. This separate financial
statement element represents a consumption of net position that applies to a future
period and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has two items that qualify for reporting in this category. The
deferred charge on refunding and deferred charges on pensions that are reported in the
enterprise funds 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.
In addition to liabilities, the statement of net position and/or balance sheet will
sometimes report a separate section for deferred inflows of resources. This separate
financial statement element represents an acquisition of net position that applies to a
future period and so will not be recognized as an inflow of resources (revenue) until that
time. The City has three items that qualify for reporting in this category: an unamortized
amount related to a service agreement, an unamortized gain related to a sale/leaseback
transaction, and deferred inflows related to pensions per GASB Statement No. 68.
Net Position Flow Assumption
Sometimes the City will 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.
53
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
Fund Balance Flow Assumption
Sometimes the City will 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 City’s policy to consider restricted fund balance to have been depleted
before using any of the components of unrestricted fund balance. Further, when the
components of unrestricted fund balance can be used for the same purpose, committed
fund balance is depleted first, followed by assigned fund balance. Unassigned fund
balance is applied last.
Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the
nature of any limitations requiring the use of resources for specific purposes. The
government itself can establish limitations on the use of resources through either a
commitment (committed fund balance) or an assignment (assigned fund balance).
Nonspendable fund balances include items that cannot be spent. This includes activity
that is not in a spendable form (long-term portions of loans, property held for resale)
and activity that is legally or contractually required to remain intact, such as principal
balances in a permanent fund.
Restricted fund balances have constraints placed upon the use of the resources either by
an external party such as a grantor or creditor or imposed by law through constitutional
provisions or enabling legislation.
Committed fund balances can be used only for specific purposes pursuant to constraints
imposed by a formal action by the South Bend Common Council, for all non-TIF Funds,
or by the South Bend Redevelopment Commission for TIF Funds. This formal action is
the passage of an ordinance by the Council or resolution by the Commission specifying
the purposes for which the funds can be used. The same type of formal action is
necessary to remove or change the specified use. The South Bend Common Council is
the highest level of decision-making authority for the non-TIF Funds. The South Bend
Redevelopment Commission is the highest level of decision-making authority for the TIF
Funds.
54
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
Assigned fund balances include amounts that are constrained by the City's intent to be
used for a specific purpose, but are neither restricted nor committed. For the
governmental fund types other than the General Fund, this is the residual amount within
the fund that is not restricted or committed. Currently, state statute does not require
the City’s Common Council to undertake any resolution regarding the assignment of
fund balances. Assignments of fund balance are imposed by informal action of the City
Controller. Formal action by a governing body is not required to assign fund balances.
The unassigned fund balance is the residual amount of the General Fund not included in
the four categories above. Only the General Fund may report a positive unassigned
fund balance whereas other governmental funds may need to report a negative
unassigned fund balance if expenditures incurred for specific purposes exceeded the
amounts restricted, committed, or assigned to those purposes.
When both restricted and unrestricted amounts are available for use, generally it is the
City's policy to use restricted amounts first, with unrestricted resources utilized as
needed. In the case of unrestricted resources, it is generally the City's policy to use
committed amounts first, followed by assigned amounts, then unassigned amounts as
needed.
The fund balance policy includes reserve ranges for funds as follows:
General: 30 percent of annual expenditures
COIT: 50 percent of annual expenditures
EDIT: 50 percent of annual expenditures
Water operating: 5 percent of annual expenditures
Wastewater operating: 5 percent of annual expenditures
Other: generally 25 percent of annual expenditures
The detail of the fund balance classifications of the governmental funds for the year
ended December 31, 2015 can be found in Note 16.
Property Tax Revenue
Property taxes levied are collected by the County Treasurer and are usually distributed
to the City in June and in December. State statute (IC 6-1.1-17-16) requires the Indiana
Department of Local Government Finance to establish property tax rates and levies by
February 15. These rates were based upon the preceding year's March 1 (lien date)
assessed valuations, adjusted for various tax credits. Taxable property is assessed at 100
percent of the true tax value (determined in accordance with rules and regulations
adopted by the Indiana Department of Local Government Finance). Taxes may be paid
in two equal installments that become delinquent if not paid by May 10 and
November 10, respectively.
55
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
Pension and Other Postemployment Benefit Costs - The City offers both pension
and retiree healthcare benefits to retirees. The City receives an actuarial valuation to
compute the annual required contribution (ARC) necessary to fund the obligation over
the remaining amortization period. In the governmental funds, pension and OPEB costs
are recognized as contributions are made. For the government-wide statements and
proprietary funds, the City reports the full accrual cost equal to the current year
required contribution, adjusted for interest and “adjustment to the ARC” on the
beginning of year underpaid amount, if any.
Compensated Absences (Vacation and Sick Leave)
a.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. Policemen, teamsters,
40-hour-per-week firemen, and all other employees earn eight sick days per year,
regardless of tenure of service. Firemen working 24-hour workdays with tenure
greater than five years earn five days of sick leave per year, and firemen working 24-
hour workdays with tenure less than five years, earn four days of sick leave per year.
Sick leave may accumulate to a maximum 90 days for policemen, 100 days for 40-
hour-per-week firemen, 38 days for 24-per-day fireman, 75 days for teamsters, and
65 days for all other employees. Accumulated sick leave is paid to firemen and
policemen upon termination of employment depending upon the number of sick
leave hours transacted, at a rate of 50 percent to 100 percent of the base hourly rate
of pay for firemen and at a rate of one-half the first class patrolman rank rate of pay
for policemen. Accumulated sick leave is paid to teamster employees, upon
retirement, at a rate of $25 for each accumulated sick leave day transacted. Sick
leave buy-back during employment is paid to firemen and policemen annually upon
request. Upon request, firemen are paid unused sick days earned in the previous
year in excess of 252 hours in the sick day bank at the base hourly rate of pay. Upon
request, policemen are paid up to a maximum eight unused sick days at the first class
patrolman rate of pay.
b.Vacation Leave - Primary government employees earn vacation leave at rates from
zero days to 28 days based upon hire date, years of service, and employee
classification. Vacation leave does not accumulate from year to year for policemen,
firemen, and teamster employees, except in instances where special cases are
approved. Nonbargaining employees carry over to the following year unused
vacation time up to a maximum of 160 hours. Employees earn vacation leave during
the year for use in the succeeding year. Unused vacation leave is paid to employees
upon termination of employment. Firemen 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.
56
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 1 - Summary of Significant Accounting Policies (Continued)
c.Personal Leave - City policemen earn personal leave at the rate of seven days per
year, and have the opportunity to earn an additional three days leave with
participation in regularly scheduled police practice shooting exercises. Policemen
personal leave does not accumulate from year to year. Policemen unused personal
leave may be rolled into sick leave. City employees under the teamster contract can
use up to four days of their sick leave for personal leave.
d.Compensatory Leave - City firemen can elect to receive compensation for overtime
hours worked either through wage payment or compensatory time off work up to a
maximum of 240 hours. All other nonexempt employees working overtime hours
earn compensatory time off up to a maximum balance of 32 hours, after which they
are paid overtime wage. All other exempt employees working overtime hours earn
compensatory time up to a maximum balance of 160 hours.
Unused vacation leave for all City employees, and unused sick leave and compensatory
leave of firemen, policemen, 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, Century Center fund, and
internal service funds are charges to customers for sales and services. Operating
expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All 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 and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expenses during the
period. Actual results could differ from those estimates.
57
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 2 - Stewardship, Compliance, and Accountability
Budgetary Information - Annual budgets are adopted on the cash basis which is not
consistent with accounting principles generally accepted in the United States of America.
All annual appropriations lapse at fiscal year-end. Annual budgets are adopted for the
following governmental funds:
Major governmental funds:
General Fund
Special Revenue Funds - Park and Recreation, Public Safety Local Option Income
Tax (LOIT), County Option Income Tax (COIT), Economic Development Income
Tax (EDIT)
Capital Projects Fund - River West TIF
Nonmajor governmental funds:
Special Revenue Funds - Motor Vehicle Highway, Recreation Nonreverting,
Studebaker Oliver Revitalization Grants, Economic Development State Grants, DCI
Operating, Community Investment Grants, Police State Seizure, Juvenile Positive
Assistance, Law Enforcement Continuing Education, Loss Recovery, Emergency
Telephone System, Local Road and Street, Excess Welfare Distribution, Human
Rights-Federal Grant, East Race Waterway, Morris and Palais Marketing, Police
Block Grants, Economic Development Commission, Hazmat, Indiana River Rescue,
COPS Block Grant II, Regional Police Academy, COPS MORE Grant, Federal Drug
Enforcement, Gift, Urban Development Action Grant, Leaf Collection and Removal,
Police K-9 Unit, Rainy Day, Excess Levy
Debt Service Fund - College Football Hall of Fame Debt Service, Redevelopment
Bond - Airport Taxable, Coveleski Bond Debt Service Reserve, Redevelopment
Bond - Palais Royale, Century Center Energy Conservation Debt Service
Capital Projects Funds - Professional Sports Development, Coveleski Stadium
Capital, Zoo Endowment, Park Nonreverting Capital, Cumulative Capital
Development, Cumulative Capital Improvement, Morris Performing Arts Center
Capital, TIF Downtown, TIF Leighton Plaza, TIF - West Washington, Redevelopment
General, Community Revitalization Enhancement District, TIF No. 1 - Southside
Development, TIF No. 3 - Southside Development, TIF - Central Medical Service
Area, Football Hall of Fame Capital, Major Moves, TIF - River East Development,
TIF Douglas Road, TIF River East Residential, Certified Technology Park, Palais
Royale Historic Preservation, Airport Urban Enterprise Zone
58
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 2 - Stewardship, Compliance, and Accountability (Continued)
On or before August 31, the City Controller submits to the Common Council a
proposed operating budget for the year commencing the following January 1. Prior to
adoption, the budget is advertised and public hearings are conducted by the Common
Council to obtain taxpayer comments. Prior to November 1 of each year, the Common
Council, through the passage of an ordinance, approves the budget for the next year.
Copies of the budget ordinance and the advertisement for funds for which property
taxes are levied or highway use taxes are received are sent to the Indiana Department of
Local Government Finance. The budget becomes legally enacted after the City
Controller receives approval of the Indiana Department of Local Government Finance.
The City's management cannot transfer budgeted appropriations between object
classifications, namely, Personnel, Supplies, Services, or Capital of a fund budget without
approval of the Common Council. The Department of Local Government Finance must
approve any revisions to the appropriations for any fund or any department of the
General Fund. The legal level of budgetary control is by object and department within
the fund for the General Fund and by object within the fund for all other budgeted
funds.
Expenditures did not exceed appropriations for any funds or any departments within the
General fund, the Parks and Recreation Fund, the Public Safety LOIT Fund, the COIT
Fund, the EDIT Fund, or any other major or nonmajor governmental fund which
required legally approved budgets. Certain other financing uses for transfers out in the
Airport Taxable and Palais Royale debt service funds exceeded the approved budget due
to higher interest earnings in the funds which was transferred to other funds.
Fund Deficits - At December 31, 2015, the following funds reported deficits in fund
equity, which are violations of State statute: Urban Development Action Grant
($219,910), TIF - Douglas Road ($443,111), and TIF - River East Residential
($2,816,175).
Fund equity deficits arose primarily from expenditures or expenses exceeding revenues
due to the underestimate of current requirements. It is anticipated that these deficits
will be repaid from future revenues.
59
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 3 - Deposits and Investments
Authorization for investment activity is stated in Indiana Code 5-13. Indiana Code 5-13-9
has authorized investment in securities backed by the full faith and credit of the United
States Treasury or fully guaranteed by the United States of America and issued by the
United States Treasury, a federal agency, a federal instrumentality, or a federal
government-sponsored enterprise. These investments are required by statute to have a
stated final maturity of not more than five years.
Indiana Code also provides for investment in money market mutual funds that are in the
form of securities of, or interest in, an open-end, no-load, management-type investment
company or investment trust registered under the provision of the federal Investment
Company Act of 1940, as amended. Investments in money market mutual funds may not
exceed 50 percent of the funds held by the City and available for investment. The
portfolio of an investment company or investment trust used must be limited to direct
obligations of the United States of America, obligations issued by the federal agency, a
federal instrumentality, or a federal government-sponsored enterprise; or repurchase
agreements fully collateralized by direct obligations of the United States of America or
obligations issued by a federal agency, a federal instrumentality, or a federal
government-sponsored enterprise. The form of securities of, or interest in, an
investment company or investment trust must be rated as AAA, or its equivalent by
Standard & Poor's Corporation or its successor or Aaa, or its equivalent, by Moody's
Investors Service, Inc., or its successor. The form of securities in an investment company
or investment trust should have a stated final maturity of one day.
Additionally, the City may enter into repurchase agreements with depositories
designated by the State Board of Finance as depositories for state deposits involving the
unit's purchase and guaranteed resale of any interest-bearing obligations issued or fully
insured or guaranteed by the United States of America, a United States of America
government agency, an instrumentality of the United States of America, or a federal
government-sponsored enterprise. The repurchase agreement is considered to have a
stated final maturity of one day. This agreement must be fully collateralized by interest-
bearing obligations as determined by their current market value.
60
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 3 - Deposits and Investments (Continued)
The City's cash and investments are subject to several types of risk, which are examined
in more detail below:
Custodial Credit Risk of Bank Deposits - Custodial credit risk is the risk that in the
event of a bank failure, the City's deposits may not be returned to it. Indiana Code 5-13-
8-1 allows a political subdivision of the State of Indiana to deposit public funds in a
financial institution only if that institution is a depository eligible to receive state funds
and has a principal office or branch that qualifies to receive public funds of the political
subdivision. At December 31, 2015, the bank balances held at the following institutions
were collateralized with securities held by the pledging financial institution’s trust
department or agent in the depositor-City’s name:
Wells Fargo Bank, NA$1,910,886
US Bank NA 29,360,611
Bank of America 2,078,474
Bank of New York Mellon 4,137,744
1st Source Bank 2,048,252
1st Source Bank 952,532
The remaining bank balances were insured by the Federal Deposit Insurance
Corporation or the Public Deposit Insurance Fund, which covers all public funds held in
approved depositories. The City has not formally adopted a deposit policy for custodial
credit risk.
Custodial Credit Risk of Investments - Custodial credit risk is the risk that, in the
event of the failure of the counterparty, the City will not be able to recover the value of
its investments or collateral securities that are in the possession of an outside party. The
City does not have a formal policy for custodial credit risk. At year end, $74,780,027 of
investment securities were uninsured and unregistered, with securities held by the
counterparty or by its trust department or agent but not in the City's name.
Interest Rate Risk - Interest rate risk is the risk that the value of investments will
decrease as a result of a rise in interest rates. The City must follow state statute and
limit the stated final maturities of the investments to no more than five years. The City
does not have a formal investment policy for interest rate risk.
At year end, the City had the following investments and maturities:
Primary Government Fair Value
Less than One
Year
One to Two
Years
More than
Two Years
U.S. Government Agency Securities$69,788,341$9,001,345$51,270,906$9,516,090
U.S. Treasuries 4,991,686 4,991,686--
Total$74,780,027$13,993,031$51,270,906$9,516,090
61
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 3 - Deposits and Investments (Continued)
Credit Risk - Credit risk is the risk that an issuer or other counterparty to an
investment will not fulfill its obligations. U.S. government agency securities are implicitly
guaranteed by the full faith and credit of the U.S. government and are recognized as one
of the safest investments available. The City does not have a formal investment policy
for credit risk.
Concentration of Credit Risk - Concentration of credit risk is the risk of loss
attributed to the magnitude of a government's investment in a single issuer. It is the
City’s practice to limit concentration of investments to no more than 10 percent of any
institution’s asset base. United States of America government and United States of
America governmental agency securities are exempt from this policy requirement.
Note 4 - Receivables
The following receivable accounts have timing and credit characteristics different from
typical accounts receivable. As of December 31, 2015, 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$403,714$127,423
Nonmajor governmental funds:
Economic development state grants 379,015 302,069
Community investment grants 247,107 192,744
Urban development action grant 739,400 117,010
Industrial revolving 4,875,110 4,077,146
Total nonmajor governmental funds$6,240,632$4,688,969
62
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 5 - Net Investment in Capital Assets
The net investment in capital assets is calculated as follows:
Governmental
Activities
Business-type
Activities Total
Capital assets not subject to depreciation$20,446,229$19,258,063$39,704,292
Capital assets subject to depreciation - Net 244,940,591 221,245,530 466,186,121
Deferred outflows (capital related)2,520,464 2,413,859 4,934,323
Revenue bonds payable - Current(8,595,000)(7,870,000)(16,465,000)
Mortgage bonds payable - Current(1,691,120)(288,880)(1,980,000)
Notes and loans payable - Current(184,371)(345,456)(529,827)
Capital leases payable - Current(2,565,559)(1,381,971)(3,947,530)
Revenue bonds payable - Noncurrent(99,220,890)(95,001,921)(194,222,811)
Mortgage bonds payable - Noncurrent(12,213,853)(5,562,685)(17,776,538)
Notes and loans payable - Noncurrent(4,647,381)(3,113,443)(7,760,824)
Capital leases payable - Noncurrent(5,925,848)(3,029,071)(8,954,919)
Unspent debt proceeds 24,741,429 15,674,359 40,415,788
Net investment in capital assets$157,604,691$141,998,384$299,603,075
Note 6 - Capital Assets
Capital asset activity of the City's governmental and business-type activities was as
follows:
Governmental Activities
Restated Balance
January 1, 2015 Additions Disposals
Balance
December 31, 2015
Capital assets not being depreciated:
Land$15,106,806$-$-$15,106,806
Construction in progress 3,698,336 4,070,473 2,429,386 5,339,423
Subtotal 18,805,142 4,070,473 2,429,386 20,446,229
Capital assets being depreciated:
Buildings 128,065,629 1,353,546 1,336,896 128,082,279
Improvements other than buildings 16,616,553--16,616,553
Machinery and equipment 46,700,042 2,998,854 4,154,972 45,543,924
Roads and other infrastructure 431,536,099 2,808,788-434,344,887
Subtotal 622,918,323 7,161,188 5,491,868 624,587,643
Accumulated depreciation:
Buildings 43,717,720 4,822,671 1,266,133 47,274,258
Improvements other than buildings 8,708,806 534,076-9,242,882
Machinery and equipment 29,554,115 4,205,889 2,951,602 30,808,402
Roads and other infrastructure 280,745,718 11,575,792-292,321,510
Subtotal 362,726,359 21,138,428 4,217,735 379,647,052
Net capital assets being depreciated 260,191,964(13,977,240)1,274,133 244,940,591
Net capital assets$278,997,106$(9,906,767)$3,703,519$265,386,820
63
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 6 - Capital Assets (Continued)
Business-type Activities
Restated Balance
January 1, 2015 Additions Disposals
Balance
December 31, 2015
Capital assets not being depreciated:
Land$3,773,864$27,400$1,187,248$2,614,016
Construction in progress 17,242,386 4,817,550 5,415,886 16,644,050
Subtotal 21,016,250 4,844,950 6,603,134 19,258,066
Capital assets being depreciated:
Buildings 87,683,548 1,933,820 4,438,574 85,178,794
Improvements other than buildings 29,427,578 1,775,149 3,016,510 28,186,217
Machinery and equipment 36,453,578 8,275,395 4,557,363 40,171,610
Roads and other infrastructure 197,923,650 2,061,486 263,611 199,721,525
Subtotal 351,488,354 14,045,850 12,276,058 353,258,146
Accumulated depreciation:
Buildings 35,773,700 2,101,057 3,243,059 34,631,698
Improvements other than buildings 6,982,898 1,174,585 1,964,031 6,193,452
Machinery and equipment 23,957,630 2,728,760 4,161,759 22,524,631
Roads and other infrastructure 64,016,923 4,897,615 251,701 68,662,837
Subtotal 130,731,151 10,902,017 9,620,550 132,012,618
Net capital assets being depreciated 220,757,203 3,143,833 2,655,508 221,245,528
Net capital assets$241,773,453$7,988,783$9,258,642$240,503,594
The original business-type activities net capital asset balance as of January 1, 2015 was
$236,196,523. Following the Emergency Medical Services Fund reclassification to
business-type activities, the January 1, 2015 balance was increased $5,576,930 to
$241,773,453.
Depreciation expense was charged to programs of the primary government as follows:
Governmental activities:
General government$474,718
Public safety 3,407,647
Highways and streets, and other general infrastructure 12,174,472
Culture and recreation 3,006,462
Economic development 713,715
Internal service funds (depreciation is charged to the various
functions based on their usage of the assets)128,868
Total governmental activities depreciation expense 19,905,882
Prior year accumulated depreciation for transfer in to
governmental activities (police building)1,232,546
Total additions to accumulated depreciation per capital asset
depreciation schedules$21,138,428
64
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 6 - Capital Assets (Continued)
Business-type activities:
Emergency medical service$451,579
Water 1,967,340
Wastewater 6,450,920
Civic center 815,117
Consolidated building department 153,457
Parking garage 216,068
Solid waste 466,163
Total business-type activities depreciation expense 10,520,644
Prior year accumulated depreciation for transfers into
business-type activities (code enforcement)381,373
Total additions to accumulated depreciation per capital asset
depreciation schedules$10,902,017
Construction Commitments - The City has active construction projects at year end.
As of December 31, 2015, the City's commitments with contractors are as follows:
Project Spent to Date
Remaining
Commitment
Governmental activities:
Hill and Colfax improvements$367,130$50,430
Bartlett St. roundabout 1,048,788 85,596
Olive-Sample overpass 1,073,301 224,139
Western Ave. corridor improvements 2,320,848 487,501
Marion-Madison roundabout 529,356 5,156,794
Total governmental activities 5,339,423 6,004,460
Business-type activities:
Wastewater Utility:
Primary Clarifier upgrades 5,559,953 221,202
Digester upgrade at WWTP 7,457,452 169,229
Prairie Avenue sewer separation 613,887 601
Secondary Clarifier rehab 2,215,775 11,684,255
Grit removal and influent screening
improvements 176,376 67,224
East Bank sewer separation phase 5 620,607 2,668,716
Total business-type activities 16,644,050 14,811,227
Total$21,893,473$20,815,687
65
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 7 - Interfund Receivables, Payables, and Transfers
Interfund balances resulted from the time lag between the dates that (1) interfund loans
are repaid, (2) interfund goods and services are provided or reimbursable expenditures
occur, (3) transactions are recorded in the accounting system, and (4) payments
between funds are made. The composition of interfund balances at December 31, 2015
is as follows:
Receivable Fund Payable Fund Amount
Due to/from Other Funds
General Fund Nonmajor governmental funds$36,769
Parks and recreation Nonmajor enterprise funds 9,057
COIT Parks and recreation 182
Nonmajor governmental funds Parks and recreation 69
Internal service funds 1,304
Total Nonmajor
governmental funds 1,373
Nonmajor enterprise funds Nonmajor governmental funds 1,170
Internal service funds General Fund 4,172
Water Utility General Fund 9,080
Parks and recreation 6,255
EDIT 85
Nonmajor governmetal funds 1,316
Wastewater Utility 2,077
Internal service funds 460
Nonmajor enterprise funds 1,686
Total Water Utility 20,959
Wastewater Utility Water Utility 3,786
Century Center General Fund 6,950
Internal service funds 3,109
Total Century Center 10,059
Total$87,527
66
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 7 - Interfund Receivables, Payables, and Transfers (Continued)
Receivable Fund Payable Fund Amount
Advances from/to Other Funds
General Fund Nonmajor governmental funds$491,665
COIT Nonmajor governmental funds 1,589,771
Nonmajor governmental funds River West TIF 500,000
Nonmajor governmental funds 5,071,713
Total nonmajor
governmental funds 5,571,713
Total$7,653,149
Specific purposes of the advances are as follows: the General Fund advanced funds to
the Football Hall of Fame to cover operating expenses. The COIT Fund advanced funds
to the Urban Development Action Grant Fund for community development projects.
Major Moves advanced funds to the Douglas Road and River East Residential TIFs for
project costs incurred to construct roads and a parking garage.
67
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 7 - Interfund Receivables, Payables, and Transfers (Continued)
Interfund transfers reported in the fund financial statements are comprised of the
following:
Receiving Fund Paying Fund Amount
General Fund Water Utility$1,589,834
Wastewater Utility 2,692,378
Total General Fund 4,282,212
Parks and Recreation Nonmajor governmental funds 3,550
Water Utility 316,551
Wastewater Utility 568,284
Total Parks and
Recreation 888,385
River West TIF Nonmajor governmental funds 10,744,164
Nonmajor enterprise funds 19,744
Total River West TIF 10,763,908
Redevelopment Authority River West TIF 978,512
EDIT 462,988
COIT 122,625
Nonmajor governmental funds 3,299,375
Total Redevelopment
Authority 4,863,500
Nonmajor governmental funds General Fund 66,639
COIT 2,487,356
EDIT 3,979,004
River West TIF 1,178,250
Nonmajor governmental funds 2,666,659
Water Utility 36,223
Wastewater Utility 236,545
Century Center 50,000
Total nonmajor
governmental funds 10,700,676
Nonmajor enterprise funds EDIT$2,663,144
68
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 7 - Interfund Receivables, Payables, and Transfers (Continued)
The City typically uses transfers to fund ongoing operating subsidies. Specific purposes
of the transfers are as follows: The Water and Wastewater Utility Funds transferred
PILOT funds to the General, Parks and Recreation, Redevelopment Bond Debt Service-
Airport Taxable, and Cumulative Capital Development Funds for general use. The
COIT, EDIT, River West TIF, Cumulative Capital Improvement, and TIF River East
Residential Funds transferred funds to the Redevelopment Authority and South Bend
Building Corporation Debt Services Funds for debt service payments. The COIT and
EDIT Funds transferred funds to the Motor Vehicle Highway Fund for general
operations as well as for the curb and sidewalk improvements. The EDIT Fund
transferred funds to the DCI Operating Fund for salaries and wages relating to
community investment initiatives and to the Consolidated Building Fund for general
operations of Code Enforcement and Animal Care & Control. The Leaf Collection and
Removal Fund transferred funds collected from customers for leaf collection to the
Motor Vehicle Highway Fund to cover supervisory personnel in charge of the Leaf
Collection and Removal program.
Note 8 - Leases
Operating Leases - The City has entered into various operating leases having initial or
remaining noncancelable terms exceeding one year for golf cart global positioning
systems, office machines, and office space. Rental expenditures for these leases were
$228,159. The following is a schedule by years of future minimum rental payments as of
December 31, 2015:
Years Ending
December 31 Amount
2016$237,070
2017 208,042
2018 133,195
2019 70,695
2020 and later 70,695
Total$719,697
69
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 8 - Leases (Continued)
Capital Leases - The City has entered into various capital leases for various types of
equipment and two parking garages. The parking garage capital leases are being repaid
from governmental funds. Future minimum lease payments and present values of the net
minimum lease payments under these capital leases as of December 31, 2015 are as
follows:
Years Ending
December 31
Governmental
Activities
Business-type
Activities
2016$2,756,428$1,446,151
2017 2,016,209 1,360,253
2018 1,588,517 755,266
2019 1,101,680 525,806
2020 710,981 467,288
2021-2025 1,000,000-
Total minimum lease payments 9,173,815 4,554,764
Less amount representing
interest 682,408 143,722
Present value$8,491,407$4,411,042
Assets acquired through capital leases still in effect are as follows:
Governmental
Activities
Business-type
Activities
Buildings$4,115,612$-
Improvements other than buildings 1,458,939-
Machinery and equipment 10,238,805 4,999,176
Total 15,813,356 4,999,176
Accumulated depreciation(7,023,416)(1,453,639)
Net$8,789,940$3,545,538
70
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 9 - Long-term Debt
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 to pay debt service. Debt activity is as follows:
Description Amount
Governmental Activities
Mortgage Bonds:
2010 Public Works Service Center Refunding
Interest rates: 3.0% to 5.0%
Original issue: $6,075,000, 87.7% Governmental ($5,327,775)
Principal installments: $525,000 to $615,000 plus interest
Maturity: February 1, 2021$2,907,255
2012 New Fire Station/Police Renovations Refunding
Interest rates: 2.1% to 5.0%
Original issue: $13,985,000
Principal installments: $545,000 to $770,000
Maturity: February 1, 2023 10,085,000
Subtotal 12,992,255
Revenue Bonds:
2014 St. Joseph County PSAP (EDIT) Revenue Bonds
City's portion of $9,155,000 bond (29.03%)
Interest rates: 2.0% to 3.625%
Original issue: $2,657,697
Installments of $12,799 to $16,611 plus interest
Maturity: December 31, 2034 2,386,508
2014 TJX Special Taxing District Refunding Bonds
Interest rates: 2.0% - 3.0%
Original issue: $3,440,000
Installments of $395,000 to $470,000 plus interest
Maturity: January 1, 2022 2,615,000
2003 Amended River West TIF Refunding
Interest rates: 4.0% to 5.2%
Original issue: $14,420,000
Installments of $254,036 to $530,000 plus interest
Maturity: February 1, 2025 7,845,000
2011 Downtown TIF Refunding
Interest rates: 4.0% to 5.2%
Original issue: $19,795,000
Installments of $260,000 to $935,000 plus interest
Maturity: February 1, 2025 13,760,000
71
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 9 - Long-term Debt (Continued)
Description Amount
Governmental Activities (Continued)
Revenue Bonds (continued):
2005 Southside TIF/Erksine Village
Interest rates: 6.1% to 6.75%
Original issue: $5,485,000
Installments of $165,000 to $465,000 plus interest
Maturity: February 1, 2027$4,035,000
2015 Eddy Street Commons Refunding
Interest rates: 4.0% to 6.0%
Original issue: $36,000,000
Installments of $145,000 to $1,420,000 plus interest
Maturity: February 15, 2033 31,450,000
2013 Century Center Refunding
Interest rates: 4.0% to 5.63%
Original issue: $4,655,000
Installments: $155,000 to $375,000 plus interest *
Maturity: May 1, 2028 3,465,000
2009 Morris Performing Arts Center Refunding
Interest rates 3.0% to 4.0%
Original issue: $7,210,000
Installments of $400,000 to $515,000 plus interest
Maturity: February 1, 2017 1,510,000
2011 College Football Hall of Fame Refunding
Interest rates: .8% to 3.65%
Original issue: $7,580,000
Installments of $550,000 to $615,000 plus interest
Maturity: February 1, 2018 3,010,000
2011 Century Center Refunding
Interest rates: 2.0% to 3.0%
Original issue: $2,980,000
Installments of $215,000 to $260,000 plus interest
Maturity: February 1, 2018 1,180,000
2006 CEDIT Refunding
Interest rates: 3.75% to 4.0%
Original issue: $7,440,000
Installments of $310,000 to $430,000 plus interest
Maturity: February 1, 2017 1,265,000
2015 Redevelopment Authority Smart Streets Bonds
Interest rates: 3.0 - 4.0%
Original issue: $25,000,000
Installments of $460,000 to $840,000 plus interest
Maturity: February 1, 2037 25,000,000
2015 EDIT/Parks Bonds
Interest rates: 3.00 - 3.75%
Original issue: $5,605,000
Installments of $100,000 to $390,000 plus interest
Maturity: August 1, 2035 5,605,000
72
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 9 - Long-term Debt (Continued)
Description Amount
Governmental Activities (Continued)
Revenue Bonds (continued):
2010 Four Winds Field (Coveleski Stadium) Recovery Zone - Taxable
Interest rates: 1.75% to 5.2%
Original issue: $4,980,000
Installments of $580,000 to $670,000 plus interest
Maturity: January 5, 2019$2,295,000
Subtotal 105,421,508
Total governmental activity debt$118,413,763
* St. Joseph County has irrevocably pledged hotel-motel tax revenues to finance debt payments
Business-type Activities
Mortgage Bonds:
2010 Public Works Service Center Refunding
Interest rates: 3.0% to 5.0%
Original issue: $6,075,000, 12.3% Business-Type ($747,225)
Installments of $525,000 to $615,000 plus interest
Maturity: February 1, 2021$407,745
2013 Building Corp EMS Fire Station/Tower Bonds
Interest rates: 3.0% to 4.2%
Original issue: $5,580,000
Installments $215,000 to $235,000 plus interest
Maturity: February 1, 2033 5,365,000
Subtotal$5,772,745
Revenue Bonds:
2006 Water Works Improvement
Interest rates: 4.25% to 4.5%
Original issue: $4,710,000
Installments of $170,000 to $350,000 plus interest
Maturity: January 1, 2027$3,090,000
2009 Water Works Improvement
Interest rates: 3.80% to 5.89%
Original issue: $5,380,000
Installments of $195,000 to $455,000 plus interest
Maturity: January 1, 2030 4,555,000
2012 Water Works Improvement
Interest rate: 2.0%
Original issue: $5,975,000 plus interest
Installments of $335,000 to $425,000 plus interest
Maturity: January 1, 2023 2,745,000
2012B Water Works Improvement
Interest rates: 2.0% to 3.7%
Original issue: $8,300,000
Installments of $340,000 to $540,000 plus interest
Maturity: January 1, 2033 7,275,000
73
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 9 - Long-term Debt (Continued)
Description Amount
Business-type Activities (Continued)
Revenue Bonds (continued)
2015 Sewage Works Refunding
Interest rates: 2.0%
Original issue: $27,440,000
Installments of $2,475,000 to $3,025,000 plus interest
Maturity: December 1, 2025$27,440,000
2010 Sewage Works Revenue
Interest rates: 2.0% to 4.5%
Original issue: $9,345,000
Installments of $365,000 to $665,000 plus interest
Maturity: December 1, 2030 7,530,000
2011 Sewage Works Revenue
Interest rates: 3.0% to 4.0%
Original issue: $21,500,000
Installments of $365,000 to $665,000 plus interest
Maturity: December 1, 2031 18,175,000
2012 Sewage Works Revenue
Interest rates: 2.0% to 2.75%
Original issue: $25,000,000
Installments of $1,105,000 to $1,650,000 plus interest
Maturity: December 1, 2032 21,935,000
2013A Sewage Works Revenue
Interest rate: 1.94%
Original issue: $14,765,000
Installments of $1,065,000 to $715,000 plus interest
Maturity: December 11, 2024 9,970,000
Subtotal 102,715,000
Total business-type activity debt$108,487,745
Excluded from the governmental activities amounts outstanding are total unamortized
premiums of $912,718 and $2,394,382 related to the mortgage bonds and revenue
bonds, respectively.
74
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 9 - Long-term Debt (Continued)
Excluded from the business-type activities amounts outstanding are total unamortized
premiums of $78,820 and $156,921 related to the mortgage bonds and revenue bonds,
respectively.
Beginning Balance
(Restated)Additions Reductions Ending Balance
Due Within
One Year
Governmental Activities
Mortgage bonds$15,672,613$-$1,767,640$13,904,973$1,691,120
Revenue bond 84,862,512 62,055,000 39,101,622 107,815,890 8,595,000
Total bonds payable 100,535,125 62,055,000 40,869,262 121,720,863 10,286,120
Notes and loans payable 1,617,491 4,167,897 953,636 4,831,752 184,371
Capital leases 8,358,904 2,604,474 2,471,971 8,491,407 2,565,559
Subtotal 110,511,520 68,827,371 44,294,869 135,044,022 13,036,050
Accumulated compensated absences 4,476,074 128,705-4,604,779 4,604,779
Net pension liability 60,258,010 130,982,238-191,240,248-
Net OPEB obligation 10,043,305 2,336,489 718,859 11,660,935-
Total governmental
activities$185,288,909$202,274,803$45,013,728$342,549,984$17,765,506
Compensated absences for governmental activities typically have been liquidated from
the General Fund and special revenue funds. All of the December 31, 2015 business-
type activities' compensated absences are due within one year. The net 1925 Police and
1937 Firefighters' pension liability will be liquidated from the pension trust funds. The
Public Employees' Retirement Fund (PERF) liability will not be liquidated from the
pension trust funds. The net OPEB obligation will be liquidated from the General Fund.
Beginning Balance
(Restated)Additions Reductions Ending Balance
Due Within
One Year
Business-type Activities
Mortgage bonds$6,139,539$-$287,974$5,851,565$288,880
Revenue bonds 111,209,874 27,440,000 35,777,953 102,871,921 7,870,000
Total bonds payable 117,349,413 27,440,000 36,065,927 108,723,486 8,158,880
Capital leases payable 3,430,273 2,256,148 1,275,379 4,411,042 1,381,971
Notes and loans payable 3,794,664-335,765 3,458,899 345,456
Total business-type
activities$124,574,350$29,696,148$37,677,071$116,593,427$9,886,307
75
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 9 - Long-term Debt (Continued)
Total interest expense for the year was $10,033,245. Annual debt service requirements
to maturity for the above bonds and note obligations are as follows:
Governmental Activities Business-type Activities
Year Ending
December 31 Principal Interest Total Principal Interest Total
2016$10,470,491$3,930,628$14,401,119$8,504,336$3,008,035$11,512,371
2017 10,625,462 4,014,105 14,639,567 8,744,348 2,822,476 11,566,824
2018 9,739,011 4,040,927 13,779,938 8,932,068 2,621,011 11,553,079
2019 8,863,832 3,684,488 12,548,320 7,775,084 2,414,078 10,189,162
2020 8,841,235 3,345,959 12,187,194 7,781,573 2,225,318 10,006,891
2021-2025 37,563,169 11,447,097 49,010,266 39,829,335 8,108,526 47,937,861
2026-2030 23,294,022 5,511,591 28,805,613 23,384,658 3,304,315 26,688,973
2031-2035 17,155,393 1,786,058 18,941,451 7,230,983 253,025 7,484,008
Total$126,552,615$37,760,853$164,313,468$112,182,385$24,756,784$136,939,169
Current Refundings - On September 10, 2015, the South Bend Redevelopment
Authority issued $31,450,000 in refunding revenue bonds with an average interest rate
of 3.14 percent to currently refund the remainder of its 2008 Redevelopment Special
Taxing District (Eddy Street Commons) bonds to take advantage of favorable interest
rates and lower future debt service payments. The net proceeds of $32,905,580 (after
payment of $306,048 in issuance costs) were used to redeem $35,698,809 in bonds. In
so doing, the City saved $3,251,291 in debt service costs over the remaining life of the
bonds.
On December 8, 2015, the City of South Bend issued $27,440,000 in Sewage Works
Refunding revenue bonds with an average interest rate of 2.00 percent to currently
refund the remainder of its 2006, 2007, and 2007B Sewage Works Revenue bonds to
take advantage of favorable interest rates and lower future debt service payments. The
net proceeds of $27,251,769 (after payment of $188,231 in issuance costs) were used to
redeem $30,432,980 in bonds. In so doing, the City saved $2,354,284 in debt service
costs over the remaining life of the bonds.
Revenue Bond - The City has pledged future revenues, net of operating expenses, to
repay water and wastewater utilities' bonds. Bond ordinances require monthly deposits
of a portion of user fee revenues 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 2015, the Water Utility paid $2,051,778 in debt payments or approximately 14.4
percent of operating revenues. The Wastewater Utility paid $7,899,703 in debt
payments or approximately 21.6 percent of operating revenues.
76
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 9 - Long-term Debt (Continued)
The City has pledged tax incremental financing revenues to meet tax incremental
financing and Redevelopment Authority debt requirements. The City has pledged
economic development income taxes (EDIT) to meet the EDIT revenue bond debt
requirements. The City has also pledged taxes in the Professional Sports and
Convention Development (PSCD) Area to meet the PSCD revenue bonds.
Note 10 - Restricted Assets
The balances of restricted assets in the enterprise funds are composed of the following:
Cash, cash equivalents, and investments:
Depreciation fund$11,599,084
Debt service fund 809,072
Customer repair and deposit fund 3,157,650
Cash with fiscal agent 221,554
Bond reserve fund 5,710,619
Operating reserve fund 5,897,241
Capital outlay accounts 1,002,072
Unspent bond proceeds 15,674,359
Total restricted assets$44,071,651
Note 11 - Property Held for Resale
The City's Redevelopment Commission has purchased properties in blighted areas for
redevelopment and subsequent resale. At December 31, 2015, the market value of
these properties was not known. These properties are recognized as assets in the funds
that purchased the property.
Note 12 - Service Concession Agreement
On July 1, 2013, the City entered into a Service Concession Agreement (SCA) with
SMG, a civic center management company, with the purpose of obtaining high-quality
professional management of the Century Center. The initial term of the contract
extends through June 30, 2016 and is renewable for two additional three-year periods.
SMG’s compensation is a flat fee of $135,000 for the first year and is then adjusted by
the CPI for each successive year. There are also additional financial incentives based on
various operational goals. SMG is responsible for all operations and financial reporting.
Additionally, SMG contributed a one-time capital infusion of $575,000, to be used for
capital improvement that will be amortized over seventy-two (72) months.
Both parties retain certain rights regarding operations and contract cessation.
77
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
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 to employees, retirees, and dependents; and natural
disasters.
The risks of torts; theft of, damage to, and destruction of assets; errors and omissions;
and natural disasters are covered by commercial insurance from independent third
parties. Settled claims from these risks have not exceeded commercial insurance
coverage for the past three years. There were no significant reductions in insurance by
major category of risk.
Liability Insurance - The City has chosen to establish a risk financing fund for risks
associated with job-related illnesses or injuries to employees, automobile liability, and
comprehensive liability. The risk financing fund is accounted for in the Liability Insurance
Premium Reserve Fund, an internal service fund, whereby assets are set aside for claim
settlements. Excess policies through commercial insurance covers individual claims in
excess of $300,000 per claim for job-related illnesses or injuries to employees (workers’
compensation) and $100,000 per claim for damage to and destruction of assets
(property damage). Two claims resulting from property damage exceeded the property
insurance self-retention amount. The first claim occurred during 2012 and the gross
claim was $424,021. In 2013, a second claim was incurred at a loss of $248,094. No such
claims occurred in 2014 or 2015. 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.
Two claims resulting from this risk exceeded the self-retention amount during the past
three years. The claims occurred during 2014 and the gross claims cost was $724,350 in
2014 and $398,000 in 2015. 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.
78
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 13 - Risk Management (Continued)
Claim expenditures and liabilities of the fund are reported when it is probable that a loss
has occurred and the amount of the loss can be reasonably estimated. These losses
include an estimate of claims that have been incurred but not reported (IBNRs). Claim
liabilities are calculated considering the effects of inflation, recent claim settlement
trends including frequency and amounts of payouts, and other economic and social
factors.
Changes in the estimated liability for the past two fiscal years were as follows:
Liability Insurance Group Health
2015 2014 2015 2014
Unpaid claims - Beginning of year$1,671,438$2,791,134$1,085,259$1,207,274
Incurred claims, including claims incurred but not reported
(Restatement Note 25)1,354,057 1,011,669 13,321,524 14,139,152
Claim payments(1,549,227)(2,131,365)(13,309,007)(14,261,167)
Unpaid claims - End of year (Restatement Note 25)$1,476,268$1,671,438$1,097,776$1,085,259
Note 14 - Subsequent Events
On November 24, 2014, the City of South Bend submitted documents to participate in
the Municipalities Continuing Disclosure Cooperation Initiative (MCDC) with the United
States Securities and Exchange Commission. Effective January 1, 2015, the City adopted
a new bond continuing disclosure procedure. In May 2016, the City was contacted by
the Securities and Exchange Commission and is currently in the process of negotiating a
settlement agreement which involves no monetary penalty.
In April 2016, the City of South Bend has entered into Intergovernmental Agreements
with the Pokagon Band of Potawatomi Indians for the development of the Pokagon
Band’s 166-acre site on the City’s southwest side that is expected to be the home of a
Tribal Village and a Four Winds Casino, pending approval from the Bureau of Indian
Affairs. The City may receive certain revenue from this agreement, but the amount has
yet to be determined.
In 2016, the Indiana General Assembly authorized a special distribution of county option
income taxes to local governments in the State. The City of South Bend share, which
was received in May 2016, was $5,623,399 and was allocated $4,217,549 (75%) for
road projects and $1,405,850 (25%) in the Rainy Day Fund consistent with allowable
State guidelines.
79
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 15 - Conduit Debt Obligation
From time to time, the City has issued industrial revenue bonds to provide financial
assistance to private sector entities for the acquisition and construction of industrial and
commercial facilities deemed to be in the public interest. The bonds are secured by the
property financed and are payable solely from payments received on the underlying
mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities
transfers to the private sector entity served by the bond issuance. Neither the City, the
State, nor any political subdivision thereof is obligated in any manner for the repayment
of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
As of December 31, 2015, there were several series of industrial revenue bonds
outstanding. The City has been unable to obtain the total outstanding principal amount
for the outstanding bonds. During 2015, the City approved no new industrial revenue
bonds.
80
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 16 - Fund Balance Constraints
The detail of the various components of fund balance is as follows:
General Fund
Parks and
Recreation
Public
Safety LOIT COIT EDIT
River West
TIF
Redevelopment
Authority Debt
Service
Nonmajor
Funds Total
Fund Balances
Nonspendable:
Inventory$-$45,197$-$-$-$-$-$-$45,197
Advances to other funds 491,665--1,589,771---5,571,713 7,653,149
Property held for resale---174,999 270,001 10,884,221-3,689,942 15,019,163
Noncurrent loans
receivable-----127,423-4,688,969 4,816,392
Total 491,665 45,197-1,764,770 270,001 11,011,644-13,950,624 27,533,901
Restricted:
Debt service------1,217,412 7,920,140 9,137,552
General administration-------494,044 494,044
Police and fire salaries--553,267-----553,267
Police and fire capital-------2,656,962 2,656,962
Street maintenance-------8,689,887 8,689,887
Economic development
projects-----30,731,504-29,029,857 59,761,361
Parks maintenance-3,775,285-----1,280,170 5,055,455
Cultural capital projects-------5,604,959 5,604,959
Street capital projects-------21,051,019 21,051,019
Total-3,775,285 553,267--30,731,504 1,217,412 76,727,038 113,004,506
Committed:
Street capital projects-------990,110 990,110
Police and fire capital-------116,225 116,225
Economic development
projects-------407,010 407,010
Cultural capital-------725,130 725,130
Total-------2,238,475 2,238,475
Assigned:
General administration 466,088--11,294,840 9,959,222--8,696,364 30,416,514
Police and fire capital-------1,056,589 1,056,589
Street maintenance-------1,122,341 1,122,341
Economic devlopment
administration-------8,703 8,703
Total 466,088--11,294,840 9,959,222--10,883,997 32,604,147
Unassigned 29,664,303------(4,218,596)25,445,707
Total fund balance$30,622,056$3,820,482$553,267$13,059,610$10,229,223$41,743,148$1,217,412$99,581,538$200,826,736
Public Safety LOIT funds are primarily restricted for payment of police and fire
personnel. Parks and Recreation funds are restricted primarily for parks and recreation
operating costs, including personnel. COIT and EDIT funds are assigned to general
government primarily for debt service payments and operating expenses. River West
TIF and Redevelopment Authority Debt Service are restricted for economic
development projects and debt service.
The government-wide statement of net position reports restricted net position for debt
service and capital outlay, which is restricted by enabling legislation.
81
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 17 - Other Postemployment Benefits
Plan Description - The City of South Bend Retiree Healthcare Plan is a single-
employer defined benefit healthcare plan administered by the City of South Bend,
Department of Administration and Finance, through the City's self-insurance fund. The
plan provides for medical insurance benefits to eligible retirees and their spouses.
Indiana Code 5-10-8 gives the unit the authority to establish and amend the plan.
The City issues a publicly available financial report that includes financial statements and
required supplementary information for the plan. The report is available by contacting
the City Controller's office: 227 West Jefferson Blvd. Rm. 1200N, South Bend, IN
46601, Ph. (574) 235-9216.
Funding Policy - The contribution requirements of plan members for the City of South
Bend Retiree Healthcare Plan are established and can be amended by the City's
Common Council. The required contribution is based on projected pay-as-you-go
financing requirements. For the year ended December 31, 2015, the City contributed
$718,859 to the plan for current premiums. Police and fire members receiving benefits
contributed approximately 30 percent of the total premiums through their required
contribution of $200 per month for retiree-only coverage and $600 for retiree and
spouse coverage. General employee members receiving benefits contributed
approximately 100 percent of the total premiums through their required contribution of
$496 per month for retiree-only coverage and $1,308 for retiree and spouse coverage.
Funding Progress - For the year ended December 31, 2015, the City has estimated
the cost of providing retiree healthcare benefits through an actuarial valuation as of
January 1, 2015. The valuation computes an annual required contribution that
represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal costs each year and amortize any unfunded actuarial liabilities over a period not
to exceed 30 years. This valuation's computed contribution and actual funding are
summarized as follows:
Annual required contribution (recommended)$2,501,114
Interest on the prior year's net OPEB obligation 236,835
Less adjustment to the annual required contribution(401,460)
Annual OPEB cost 2,336,489
Amounts contributed:
Payments of current premiums(718,859)
Advance funding-
Increase in net OPEB obligation 1,617,630
OPEB obligation - Beginning of year 10,043,305
OPEB obligation - End of year$11,660,935
82
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 17 - Other Postemployment Benefits (Continued)
The annual OPEB costs, the percentage contributed to the plan, and the net OPEB
obligation for the current and two preceding years were as follows:
Fiscal Year Ended
Annual OPEB
Cost
Percentage
Contributed
Net OPEB
Obligation
12/31/13$2,463,473 28.5$8,300,677
12/31/14 2,542,733 31.5 10,043,305
12/31/15 2,336,489 30.8 11,660,935
The funding progress of the plan as of the three most recent valuation dates is as
follows:
Actuarial Valuation Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability (AAL)
(b)
Unfunded
AAL (UAAL)
(b-a)
Funded Ratio
(Percent)
(a/b)
1/1/15$-$21,512,260$21,512,260-
1/1/14-21,493,998 21,493,998-
1/1/13-21,493,998 21,493,998-
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve
estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding
the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future. The schedule of funding progress, presented
above, presents multiyear trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types
of benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
As of January 1, 2015, the most recent actuarial valuation date, the plan was 0 percent
funded. The actuarial accrued liability for benefits was $21,512,260 and the actuarial
value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of
$21,512,260. The covered payroll was $51,521,030, which as a percentage of the
actuarial accrued liability was 239 percent.
83
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 17 - Other Postemployment Benefits (Continued)
In the January 1, 2015 actuarial valuation, the entry age actuarial cost method was used.
The actuarial assumptions included a 4.5 percent investment rate of return (net of
administrative expenses), which is a blended rate of the expected long-term investment
returns on plan assets and on the employer's own investments calculated based on the
funded level of the plan at the valuation date, and an annual healthcare cost trend rate of
9 percent initially, reduced by decrements to an ultimate rate of 5 percent after 10
years. Both rates included a 3 percent inflation assumption. The UAAL is being
amortized as a level percentage of projected payroll on an open basis. The remaining
amortization period at December 31, 2015 was 30 years.
Note 18 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan -
Public Employees' Retirement Fund
Plan Description - The Public Employees’ Retirement Fund (PERF) 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 plan is
a cost sharing multiple employer defined benefit pension plan administered by the
Indiana Public Retirement System (INPRS). The pension system issues a publicly available
financial report that can be obtained at http://www.inprs.in.gov.
Benefits Provided - The plan provides retirement, disability and survivor benefits. 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.
Retirement benefits for employees are calculated as years of credible service times the
average highest 20 quarters of salary times 1.1% plus the employee’s Annuity Savings
Account. Normal retirement age is 60 with early retirement at 50-59 with 15 years of
service. Vesting period is 10 years. An employees who leaves service may withdraw his
or her Annuity Savings Account contributions, plus any accumulated interest.
Benefit terms provide for annual cost of living adjustments to each employee’s
retirement allowance subsequent to the employee’s retirement date. The annual
adjustments are granted by the Indiana General Assembly on an ad hoc basis.
Contributions - Per Indiana Code, Title 5, Articles 10.2 and 10.3, contribution
requirements of the active employees and the participating employers are established
and may be amended by the INPRS Board based on recommendations by the INPRS
actuary. Employees are required to contribute 3 percent of their annual pay. The City’s
contractually required contribution rate for the year ended December 31, 2015 was
11.20 percent of annual payroll. Contributions to the plan from the City were
$3,027,676 for the year ended December 31, 2015.
84
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 18 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan -
Public Employees' Retirement Fund (Continued)
Net Pension Liability, Deferrals, and Pension Expense
At December 31, 2014, the City reported a liability of $22,687,694 for its proportionate
share of the net pension liability. The net pension liability was measured as of June 30,
2015 and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of that date. The City's proportion of the net
pension liability was based on the City's actuarially required contribution for the year
ended December 31, 2015, relative to all other contributing employers. At June 30,
2015, the City's proportion was 0.55704 percent, which was an increase of 0.00642
from its proportion measured as of December 31, 2014.
For the year ended December 31, 2015, the City recognized pension expense of
$3,650,212. At December 31, 2015, the City reported deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual experience$973,862$46,920
Changes in assumptions 1,917,873-
Net difference between projected and actual earnings
on pension plan investments 3,825,428 2,133,693
City contributions made subsequent to the
measurement date 1,542,885-
Changes in proportion and differences between
employer contributions and proportionate share of
contributions 319,515 147,604
Total$8,579,563$2,328,217
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows. These amounts are
exclusive of employer contributions to the plan made subsequent to the measurement
date ($1,542,885), which will impact the net pension liability in fiscal year 2016, rather
than pension expense. (No amounts available for 2020 and thereafter).
Years Ending
June 30 Amount
2016$1,502,430
2017 1,502,430
2018 747,244
2019 956,357
85
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 18 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan -
Public Employees' Retirement Fund (Continued)
Actuarial Assumptions -The total pension liability in the June 30, 2015 actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.25%
Salary increases 2.5% -
4.25%Average, including inflation
Investment rate of return 6.75%Net of pension plan investment
expense, including inflation
Mortality rates were based on the RP 2014 (with MP-2014 improvement removed)
Total Data Set mortality table projected on a fully generational basis using the future
mortality improvement scale inherent in the mortality projection included in the Social
Security Administration's 2014 Trustee report.
The actuarial assumptions used in the June 30, 2015 valuation were based on the results
of an actuarial experience study for the four years ended June 30, 2014. The study was
performed in April 2015. As a result of the study, inflation decreased from 3.00 percent
to 2.25 percent, future salary rates decreased from a table range of 3.25 percent to 4.50
percent to a table ranging from 2.50 percent to 4.25 percent. The mortality rates
changed from the 2013 IRS Static Mortality projected five years with Scale AA to the
process referenced above. Each of these assumption changes were made to more
closely reflect actual experience.
Discount Rate -The discount rate used to measure the total pension liability was 6.75
percent. The projection of cash flows used to determine the discount rate assumed that
employee contributions will be made at the current contribution rate and that employer
contributions will be made at rates equal to the difference between actuarially
determined contribution rates and the employee rate.
Projected Cash Flows
Based on those assumptions, the pension plan’s fiduciary net position was projected to
be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the
total pension liability.
86
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 18 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan -
Public Employees' Retirement Fund (Continued)
The long-term expected rate of return on pension plan investments was determined
using a building-block method in which best-estimate ranges of expected future real
rates of return (expected returns, net of pension plan investment expense, and inflation)
are developed for each major asset class. These ranges are combined to produce the
long-term expected rate of return by weighting the expected future real rates of return
by the target asset allocation percentage and by adding expected inflation. The target
allocation and best estimates of arithmetic real rates of return as of June 30, 2015 for
each major asset class are summarized in the following table.
Asset Class
Target
Allocation (%)
Long-term
Expected Real
Rate of Return
Public equity%22%5.30
Private equity%10%5.60
Fixed income - Ex inflation - Linked%22%2.10
Fixed income - Inflation - Linked%10%0.70
Commodities%8%2.00
Real estate%8%3.00
Absolute return%10%3.90
Risk parity%10%5.00
Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The
following presents the net pension liability of the City, calculated using the discount rate
of 6.75 percent, as well as what the City's net pension liability would be if it were
calculated using a discount rate that is 1 percentage point lower (5.75 percent) or 1
percentage point higher (7.75 percent) than the current rate:
1 Percent
Decrease
(5.75%)
Current
Discount Rate
(6.75%)
1 Percent
Increase
(7.75%)
Net pension liability$33,466,292$22,687,694$13,739,488
Pension Plan Fiduciary Net Position - Detailed information about the plan’s fiduciary
net position is available in a separately issued financial report available at
http://www.inprs.in.gov. 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.
87
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 19 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan -
1977 Police Officers' and Firefighters' Pension and Disability
Fund
Plan Description - The 1977 Police Officers' and Firefighters' Pension and Disability
Fund provides pensions for all police officers and firefighters hired after April 30, 1977.
The plan is a cost sharing multiple employer defined benefit pension plan administered
by the Indiana Public Employees' Retirement Plan (INPRS). The pension system issues a
publicly available financial report that can be obtained at http://www.inprs.in.gov.
Benefits Provided - The plan provides retirement, disability, and death benefits.
Benefit terms are established and amended by State legislative action.
Annual retirement benefits for employees are calculated as 50 percent of first-class
salary for 20 years of service. Normal retirement age is 52 with early retirement at 50.
Employees are eligible for non duty disability benefits after five years of service and for
duty related disability benefits upon hire. Disability retirement benefits are determined
in the same manner as retirement benefits but are payable immediately without an
actuarial reduction. Death benefits equal the benefit which would have been payable to
a beneficiary if the member had retired at age 50 or at death, whichever is later, under
an effective election of the joint and survivor option available for retirement benefits. An
employee who leaves service may withdraw his or her contributions, plus any
accumulated interest.
Benefit terms provide for annual cost-of-living adjustments to each employee’s
retirement allowance subsequent to the employee’s retirement date. The annual
adjustments are determined by statue equal to the change in the Consumer Price Index
but not in excess of a 3 percent increase.
Contributions - Per Indiana State statute (IC 36 8 8 and IC 36 8 8.5), contribution
requirements of the active employees and the participating employers are established
and may be amended by the INPRS Board based on recommendations by the INPRS
actuary. Employees are required to contribute 6 percent of their annual pay. The City’s
contractually required contribution rate for the year ended December 31, 2015 was
19.50 percent of annual payroll. Contributions to the plan from the City were
$5,563,434 for the year ended December 31, 2015.
88
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 19 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan -
1977 Police Officers' and Firefighters' Pension and Disability
Fund (Continued)
Net Pension Asset, Deferrals, and Pension Expense
At December 31, 2015, the City reported an asset of $5,321,026 for its proportionate
share of the net pension asset. The net pension asset was measured as of December 31,
2015 and the total pension liability used to calculate the net pension asset was
determined by an actuarial valuation as of that date. The City's proportion of the net
pension asset was based on the City's actuarially required contribution for the year
ended December 31, 2015, relative to all other contributing employers. At December
31, 2015, the City's proportion was 3.6021 percent, which was an increase of 0.02185
from its proportion measured as of December 31, 2014.
For the year ended December 31, 2015, the City recognized pension expense of
$1,452,255. At June 30, 2015, the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual experience$-$2,314,108
Changes in assumptions-9,960,705
Net difference between projected and actual earnings
on pension plan investments 10,385,351 5,536,939
City contributions made subsequent to the
measurement date 2,879,733-
Changes in proportion and differences between
employer contributions and proportionate share of
contributions 89,069 110,044
Total$13,354,153$17,921,796
89
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 19 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan -
1977 Police Officers' and Firefighters' Pension and Disability
Fund (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows. These amounts are
exclusive of employer contributions to the plan made subsequent to the measurement
date ($2,879,733), which will impact the net pension liability in fiscal year 2016, rather
than pension expense.
Years Ending
June 30 Amount
2016$(734,626)
2017(734,626)
2018(734,626)
2019 1,111,021
2020(1,485,317)
Thereafter(4,869,202)
Actuarial Assumptions -The total pension liability in the June 30, 2015 actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.25 %
Salary increases 2.50 %Average, including inflation
Investment rate of return 6.75 %Net of pension plan investment
expense, including inflation
Mortality rates were based on the RP 2014 (with MP-2014 improvement removed) Blue
Collar mortality table projected on a fully generational basis using the future mortality
improvement scale inherent in the mortality projection included in the Social Security
Administration's 2014 Trustee report.
Discount Rate -The discount rate used to measure the total pension liability was 6.75
percent. The projection of cash flows used to determine the discount rate assumed that
employee contributions will be made at the current contribution rate and that employer
contributions will be made at rates equal to the difference between actuarially
determined contribution rates and the employee rate.
90
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 19 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan -
1977 Police Officers' and Firefighters' Pension and Disability
Fund (Continued)
Projected Cash Flows
Based on those assumptions, the pension plan’s fiduciary net position was projected to
be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the
total pension liability.
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. The target
allocation and best estimates of arithmetic real rates of return as of June 30, 2015 for
each major asset class are summarized in the following table.
Asset Class
Target
Allocation (%)
Long-term
Expected Real
Rate of Return
Public equity%22%5.30
Private equity%10%5.60
Fixed income - Ex inflation - Linked%22%2.10
Fixed income - Inflation - Linked%10%0.70
Commodities%8%2.00
Real estate%8%3.00
Absolute return%10%3.90
Risk parity%10%5.00
Sensitivity of the Net Pension Asset to Changes in the Discount Rate - The
following presents the net pension asset of the City, calculated using the discount rate of
6.75 percent, as well as what the City's net pension asset would be if it were calculated
using a discount rate that is 1 percentage point lower (5.75 percent) or 1 percentage
point higher (7.75 percent) than the current rate:
1 Percent
Decrease
(5.75%)
Current
Discount Rate
(6.75%)
1 Percent
Increase
(7.75%)
Net pension liability (asset)$22,394,318$(5,321,026)$(27,668,465)
91
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 19 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan -
1977 Police Officers' and Firefighters' Pension and Disability
Fund (Continued)
Pension Plan Fiduciary Net Position - Detailed information about the plan’s fiduciary
net position is available in a separately issued financial report available at
www.in.gov/inprs/files/2015INPRSCAFRBook.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.
Note 20 - Defined Benefit Pension Plan - 1925 Police Officers' Pension
Plan
Pension Plan Description
Plan Description - The City contributes to the 1925 Police Officers' Pension Plan,
which is a single employer defined benefit pension plan. The plan is administered by the
local pension board as authorized by state statute (IC 36 8 6).
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 plan is vested in the pension board, which consists of nine
members - the Mayor, City Controller, and Chief of Police plus six elected by plan
member.
Plan Membership - At the December 31, 2015, pension plan membership consisted of
the following:
Inactive plan members or beneficiaries currently receiving benefits 215
Active plan members 6
Total employees covered by the plan 221
The pension plan is closed to new entrants.
Benefits Provided - The plan provides retirement, disability, and death benefits to plan
members and beneficiaries. The plan was established by the plan administrator, as
provided by state statute. The plan administrator does not issue a publicly available
financial report that includes financial statements and required supplementary
information of the plan.
92
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 20 - Defined Benefit Pension Plan - 1925 Police Officers' Pension
Plan (Continued)
Contributions - Plan members are required by state statute (IC 36 8 6 4) to contribute
an amount equal to six percent (6 percent) of the salary of a first class patrolman. The
contribution requirements of plan members are established by state statute. The City's
annual pension cost and related information, as provided by the actuary, is presented in
this note. The net pension liability (NPL) is considered an obligation of the City and is
reflected in the statement of net position. The State of Indiana is required by statute to
reimburse the City for benefits paid and has contributed $6,378,359 during 2015 on
behalf of the City. The City has recognized these on behalf payments as
intergovernmental revenue and public safety expenditures in the General Fund.
Pension Plan Investments - Policy and Rate of Return
Investment Policy - The 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, 2015:
Asset Class
Target
Allocation
Cash or cash equivalents%24
Fixed income investments%76
Rate of Return - For the year ended December 31, 2015, the annual money-weighted
rate of return on pension plan investments, net of pension plan investment expense, was
0.8 percent. The money-weighted rate of return expresses investment performance,
net of investment expense, adjusted for the changing amounts actually invested.
Net Pension Liability of the City
City reports pension expense based on funding requirements, as directed by GASB
Statement No. 68. The net pension liability of the City has been measured as of
December 31, 2015 and is composed of the following:
Total pension liability$92,772,809
Plan fiduciary net position(1,157,433)
City's net pension liability$91,615,376
Plan fiduciary net position as a percentage of the total pension liability%1.2
93
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 20 - Defined Benefit Pension Plan - 1925 Police Officers' Pension
Plan (Continued)
Changes in the net pension liability during the measurement year were as follows:
Increase (Decrease)
Changes in Net Pension Liability
Total Pension
Liability
Plan Net
Position
Net Pension
Liability
Balance at December 31, 2014$99,502,362$1,110,743$98,391,619
Service cost 184,104-184,104
Interest 2,415,583-2,415,583
Differences between expected and
actual experience(2,973,249)-(2,973,249)
Changes in assumptions(294,402)-(294,402)
Non-employer contributing entity
contributions 6,378,359(6,378,359)
Net investment income-4,376(4,376)
Other revenue-62(62)
Benefit payments, including refunds(6,061,589)(6,336,107)274,518
Net changes(6,729,553)46,690(6,776,243)
Balance at December 31, 2015$92,772,809$1,157,433$91,615,376
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
For the year ended December 31, 2015, the City recognized pension expense of
$6,336,108. At December 31, 2015, the City reported no deferred outflows of
resources or deferred inflows of resources related to pensions.
Actuarial Assumptions - The total pension liability in the December 31, 2015 actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.25 %
Salary increases 2.50 %Average, including inflation
Investment rate of return 2.59 %Net of pension plan investment
expense, including inflation
Mortality rates were based on the RP 2014 Blue Collar Set Mortality Table with
mortality improvement since 2006 using scale MP 2014 removed and projected on a
fully generational basis using the future mortality improvement scale inherent in the
mortality projection included in the Social Security Administration's 2014 Trustee
report.
94
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 20 - Defined Benefit Pension Plan - 1925 Police Officers' Pension
Plan (Continued)
Discount Rate - The discount rate used to measure the total pension liability was 2.59
percent. The discount rate increased from the 2.56 percent used for the December 31,
2014 calculation of the net pension liability. The projection of cash flows used to
determine the discount rate considered the fact that on behalf contributions made by
the State of Indiana are made as benefit payments become due for payment.
Projected Cash Flows
Based on those assumptions, the pension plan's fiduciary net position was not projected
to be available to make all projected future benefit payments of current active and
inactive employees. Therefore, the discount rate incorporates a municipal bond rate
which was 2.59. The source of that bond rate was the Barclay's 20-year Municipal Bond
Index as of December 31, 2015. The municipal bond rate was applied to the remaining
periods.
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. Best
estimates of arithmetic real rates of return as of December 31, 2015 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 table.
Asset Class
Long-term
Expected Real
Rate of Return
Cash or cash equivalents%1.00
Fixed income investments%1.00
Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The
following presents the net pension liability of the City, calculated using the discount rate
of 2.59 percent, as well as what the City's net pension liability would be if it were
calculated using a discount rate that is 1 percentage point lower (1.59 percent) or 1
percentage point higher (3.59 percent) than the current rate:
1 Percent
Decrease
(1.59%)
Current
Discount Rate
(2.59%)
1 Percent
Increase
(3.59%)
Net pension liability of the City$102,336,904$91,615,376$82,631,834
95
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 20 - Defined Benefit Pension Plan - 1925 Police Officers' Pension
Plan (Continued)
Pension Plan Fiduciary Net Position - Detailed information about the plan’s fiduciary
net position is not available in the separately issued financial report. 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.
Note 21 - Defined Benefit Pension Plan - 1937 Firefighters' Pension Plan
Pension Plan Description
Plan Description - The City contributes to the 1937 Firefighters' Pension Plan, which is
a single employer defined benefit pension plan. The plan is administered by the local
pension board as authorized by state statute (IC 36 8 7).
The financial statements of the plan are included in these financial statements as a
pension and other employee benefit trust fund.
Management of the plan is vested in the pension board.
Plan Membership - At the December 31, 2015, pension plan membership consisted of
the following:
Inactive plan members or beneficiaries currently receiving benefits 179
Active plan members 6
Total employees covered by the plan 185
The pension plan is closed to new entrants.
Benefits Provided - The plan provides retirement, disability, and death benefits to plan
members and beneficiaries. The plan was established by the plan administrator, as
provided by state statute. The plan administrator does not issue a publicly available
financial report that includes financial statements and required supplementary
information of the plan.
96
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 21 - Defined Benefit Pension Plan - 1937 Firefighters' Pension Plan
(Continued)
Contributions - Plan members are required by state statute (IC 36 8 7 8) to contribute
an amount equal to 6 percent of the salary of a first class fireman. 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 $5,039,025 during 2015 on
behalf of the City. The City has recognized these on behalf payments as
intergovernmental revenue and public safety expenditures in the General Fund.
Pension Plan Investments - Policy and Rate of Return
Investment Policy - The 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, 2015:
Asset Class
Target
Allocation
Cash or cash equivalents%24.0
Government agency securities%76.0
Rate of Return - For the year ended December 31, 2015, the annual money-weighted
rate of return on pension plan investments, net of pension plan investment expense, was
0.8 percent. The money-weighted rate of return expresses investment performance,
net of investment expense, adjusted for the changing amounts actually invested.
97
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 21 - Defined Benefit Pension Plan - 1937 Firefighters' Pension Plan
(Continued)
Net Pension Liability of the City
The City reports pension expense based on funding requirements, as directed by GASB
68. The net pension liability of the City has been measured as of December 31, 2015
and is composed of the following:
Total pension liability$77,409,213
Plan fiduciary net position(472,035)
City's net pension liability$76,937,178
Plan fiduciary net position as a percentage of the total pension liability%0.6
Changes in the net pension liability during the measurement year were as follows:
Increase (Decrease)
Changes in Net Pension Liability
Total Pension
Liability
Plan Net
Position
Net Pension
Liability
Balance at December 31, 2014$83,390,271$639,081$82,751,190
Service cost 155,487-155,487
Interest 2,020,796-2,020,796
Differences between expected and
actual experience(2,816,692)-(2,816,692)
Changes in assumptions(245,887)-(245,887)
Non-employer contributing entity
contributions 5,039,025(5,039,025)
Net investment income-2,675(2,675)
Other revenue-2,667(2,667)
Benefit payments, including refunds(5,094,762)(5,211,413)116,651
Net changes(5,981,058)(167,046)(5,814,012)
Balance at December 31, 2015$77,409,213$472,035$76,937,178
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
For the year ended December 31, 2015, the City recognized pension expense of
$5,221,414. At December 31, 2015, the City reported no deferred outflows of
resources or deferred inflows of resources related to pensions.
98
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 21 - Defined Benefit Pension Plan - 1937 Firefighters' Pension Plan
(Continued)
Actuarial Assumptions - The total pension liability in the December 31, 2015 actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.25 %
Salary increases 2.50 %Average, including inflation
Investment rate of return 2.59 %Net of pension plan investment
expense, including inflation
Mortality rates were based on the RP 2014 Blue Collar Set Mortality Table with
mortality improvement since 2006 using scale MP 2014 removed and projected on a
fully generational basis using the future mortality improvement scale inherent in the
mortality projection included in the Social Security Administration's 2014 Trustee
report.
Discount Rate - The discount rate used to measure the total pension liability was 2.59
percent. The discount rate increased from the 2.56 percent used for the December 31,
2014 calculation of the net pension liability. The projection of cash flows used to
determine the discount rate considered the fact that on behalf contributions made by
the State of Indiana are made as benefit payments become due for payment.
Projected Cash Flows
Based on those assumptions, the pension plan's fiduciary net position was not projected
to be available to make all projected future benefit payments of current active and
inactive employees. Therefore, the discount rate incorporates a municipal bond rate
which was 2.59 percent. The source of that bond rate was the Barclay's 20 year
Municipal Bond Index as of December 31, 2015. The municipal bond rate was applied
to all remaining periods.
99
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 21 - Defined Benefit Pension Plan - 1937 Firefighters' Pension Plan
(Continued)
The long-term expected rate of return on pension plan investments was determined
using a building-block method in which best-estimate ranges of expected future real
rates of return (expected returns, net of pension plan investment expense, and inflation)
are developed for each major asset class. These ranges are combined to produce the
long-term expected rate of return by weighting the expected future real rates of return
by the target asset allocation percentage and by adding expected inflation. Best
estimates of arithmetic real rates of return as of December 31, 2015 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 table.
Asset Class
Long-term
Expected Real
Rate of Return
Cash or cash equivalents%1.00
Government agency securities%1.00
Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The
following presents the net pension liability of the City, calculated using the discount rate
of 2.59 percent, as well as what the City's net pension liability would be if it were
calculated using a discount rate that is 1 percentage point lower (1.59 percent) or 1
percentage point higher (3.59 percent) than the current rate:
1 Percent
Decrease
(1.59%)
Current
Discount Rate
(2.59%)
1 Percent
Increase
(3.59%)
Net pension liability of the City$85,894,640$76,937,178$69,435,844
Pension Plan Fiduciary Net Position - Detailed information about the plan’s fiduciary
net position is not available in the separately issued financial report. 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.
100
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 22 - Pension Trust Funds
The following are condensed financial statements for the individual pension plans:
1925 Police
Pension
1937 Firefighters'
Pension
Statement of Net Position
Cash and investments$1,155,658$471,586
Other assets 1,873 779
Liabilities 98 330
Net position$1,157,433$472,035
Statement of Changes in Net Position
Investment income$4,376$2,675
Contributions 6,378,421 5,041,692
Benefit payments 6,323,646 5,197,158
Other deductions 12,461 14,255
Net change in net position$46,690$(167,046)
Note 23 - Closure and Postclosure Care Cost
As of January 1, 2008, the City of South Bend's Biosolids Lagoon #4 site has been
closed. The City is required to maintain the one-acre site by monitoring methane and
groundwater and maintain the site (mowing, cover inspection, gas collection system
inspection, cover repair, ditch maintenance, etc.). The closure and postclosure care
costs are reported as operating expenses, as incurred. For the year ending December
31, 2015, the total expenses incurred were $12,540. The remaining expected liability
relating to postclosure costs is estimated at less than $250,000 and due to the minimal
nature of these expenditures, is not included in the financial statements.
101
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 24 - Upcoming Accounting Pronouncements
In February 2015, the Governmental Accounting Standards Board issued GASB
Statement No. 72, Fair Value Measurement and Application. The requirements of this
statement will enhance comparability of financial statements among governments by
requiring measurement of certain assets and liabilities at fair value using a consistent and
more detailed definition of fair value and acceptable valuation techniques. This
statement also will enhance fair value application guidance and related disclosures in
order to provide information to financial statement users about the impact of fair value
measurements on a government’s financial position. GASB Statement No. 72 is
required to be adopted for years beginning after June 15, 2015. The City is currently
evaluating the impact this standard will have on the financial statements when adopted
during the City's 2016 fiscal year.
In June 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions, which addresses reporting by
governments that provide postemployment benefits other than pensions (OPEB) to
their employees and for governments that finance OPEB for employees of other
governments. This OPEB standard will require the City to recognize on the face of the
financial statements its net OPEB liability related to the City of South Bend Retiree
Healthcare Plan. The statement also enhances accountability and transparency through
revised note disclosures and required supplemental information (RSI). The City is
currently evaluating the impact this standard will have on the financial statements when
adopted. The provisions of this statement are effective for the City’s financial statements
for the year ending December 31, 2018.
Note 25 - Reporting Change - Prior Period Adjustment
During the current year, the City adopted GASB Statment No. 68, Accounting and
Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for
Contributions Made Subsequent to the Measurement Date - an Amendment of GASB
Statement No. 68. As a result, the government-wide statements now include a liability
for our unfunded legacy costs. Some of the changes in this net pension liability will be
recognized immediately as part of the pension expense measurement, and part will be
deferred and recognized over future years. Refer to the pension notes for further
details.
The financial statements for the year ended December 31, 2014 have been restated in
order to adopt GASB Statement Nos. 68 and 71. The effect of these new standards was
a decrease in net position to record the net pension liability at December 31, 2014.
102
City of South Bend, Indiana
Notes to Financial Statements
December 31, 2015
Note 25 - Reporting Change - Prior Period Adjustment (Continued)
As a result of implementing these statements, the beginning net position of the
governmental activities has been restated as indicated:
Governmental
Activities
Business-type
Activities
Net Position/Fund Balance - December 31, 2014 - As
previously reported$293,444,784$177,067,590
Adjustment for implementation of GASB Statement
No. 68(133,844,660)-
Adjustment to reclassify Emergency Medical Services Fund
as an enterprise fund(3,450,753)3,450,753
Adjustment to correct 2014 activity for Internal Service
Funds - Liability Insurance Premium Reserve 2,267,878-
Adjustment to correct 2014 activity for the Business-type
Activities - Emergency Medical Services Fund-5,180,497
Net Position/Fund Balance - December 31, 2014 - As
restated$158,417,249$185,698,840
Note 26 - Disposal of Blackthorn Golf Course
Effective March 2, 2015, the City sold the Blackthorn Golf Course (a nonmajor
enterprise fund) to a private company and discontinued City operations of the course.
The contract sales price was $1,655,000 less certain offsets and closing costs. During the
term of City ownership, the Blackthorn Golf Course realized consistent operating losses
and required expenditures from the River West TIF for capital and debt service
expenditures.
103
Required Supplemental Information
104
City of South Bend, Indiana
Required Supplemental Information
1925 Police Officers' Pension Plan
Schedule of Investment Returns
Last Two Fiscal Years
2015 2014
Annual money-weighted rate of return, net of investment expense%0.8%0.6
105
City of South Bend
Required Supplemental Information
1925 Police Officers' Pension Plan
Schedule of City Contributions
Last Ten Fiscal Years
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Actuarially determined contribution$6,073,049$6,432,800$6,633,200$6,986,200$7,317,800$6,673,100$5,995,700$6,421,500$6,722,800$6,255,300
Contributions in relation to the actuarially
determined contribution 6,323,645 6,116,195 5,837,216 6,776,614 6,512,842 5,805,597 6,355,442 5,072,985 4,773,188 6,255,300
Contribution (Excess) Deficiency$(250,596)$316,605$795,984$209,586$804,958$867,503$(359,742)$1,348,515$1,949,612$-
Covered Employee Payroll$441,200$441,200$430,000$421,800$542,900$569,500$611,000$652,000$350,667$531,733
Contributions as a Percentage of
Covered Employee Payroll%1,433.3%1,386.3%1,357.5%1,606.6%1,199.6%1,019.4%1,040.2%778.1%1,361.2%1,176.4
Notes to Schedule of City Contributions
Actuarial valuation information relative to the determination of contributions:
Valuation date December 31, 2015
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percent of payroll
Remaining amortization period 30 years
Asset valuation method Not applicable. Benefits are funded on a pay-as-you-go basis
Inflation 2.25% per year
Salary increases 2.50% per year
Investment rate of return 2.59% per year
Retirement age Non-converted - any age with 20 or more years of creditable service
Converted - age 52 with 20 or more years of creditable service and no longer active
Mortality RP-2014 Total Data Set Mortality Tables with mortality improvement since 2006 using scale MP-2014 removed
and projected on a fully generational basis using the future mortality improvement scale inherent in the mortality
projection included in the Social Security Administration's 2014 Trustee Report
Other information Cost of living increases of 2.50% per year in retirement for non-converted and 2.00% per year in retirement for
converted
106
City of South Bend, Indiana
Required Supplemental Information
Schedule of Changes in the City Net Pension Liability and Related
Ratios
Last Two Fiscal Years
2015 2014
Total Pension Liability
Service cost$184,104$157,965
Interest 2,415,583 3,721,864
Changes in benefit terms--
Differences between expected and actual experience(2,973,249)-
Changes in assumptions(294,402)12,487,771
Projected benefit payments(6,061,589)(6,122,870)
Net Change in Total Pension Liability(6,729,553)10,244,730
Total Pension Liability- Beginning of year 99,502,362 89,257,632
Total Pension Liability- End of year$92,772,809$99,502,362
Plan Fiduciary Net Position
Contributions - Other$62$4,329
Contributions - Non-employer Entity 6,378,359 6,111,865
Net investment income 4,376 3,759
Administrative expenses(12,462)(10,957)
Benefit payments, including refunds(6,323,646)(6,705,815)
Other--
Net Change in Plan Fiduciary Net Position 46,689(596,819)
Plan Fiduciary Net Position - Beginning of year 1,110,743 1,707,562
Plan Fiduciary Net Position - End of year$1,157,432$1,110,743
City's Net Pension Liability- Ending$91,615,377$98,391,619
Plan Fiduciary Net Position as a Percentage of Total Pension
Liability%1.25%1.12
Covered Employee Payroll$441,200$441,200
City's Net Pension Liability as a Percentage of Covered
Employee Payroll%20,765.0%22,300.9
107
City of South Bend, Indiana
Required Supplemental Information
1937 Firefighters' Pension Plan
Schedule of Investment Returns
Last Two Fiscal Years
2015 2014
Annual money-weighted rate of return, net of investment expense%0.8%0.6
108
City of South Bend
Required Supplemental Information
1937 Firefighters' Pension Plan
Schedule of City Contributions
Last Ten Fiscal Years
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Actuarially determined contribution$4,977,042$5,436,400$5,550,900$5,787,300$6,399,700$5,811,400$5,258,600$4,436,200$5,104,800$5,369,400
Contributions in relation to the actuarially
determined contribution 5,197,158 5,130,581 5,051,319 5,208,570 5,503,742 5,172,146 5,416,358 4,702,372 6,738,336 5,798,952
Contribution (Excess) Deficiency$(220,116)$305,819$499,581$578,730$895,958$639,254$(157,758)$(266,172)$(1,633,536)$(429,552)
Covered Employee Payroll$328,600$328,600$319,300$365,500$397,100$429,500$474,450$519,400$1,338,200$326,833
Contributions as a Percentage of
Covered Employee Payroll%1,581.6%1,561.3%1,582.0%1,425.1%1,386.0%1,204.2%1,141.6%905.3%503.5%1,774.3
Notes to Schedule of City Contributions
Actuarial valuation information relative to the determination of contributions:
Valuation date December 31, 2015
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percent of payroll
Remaining amortization period 30 years
Asset valuation method Not applicable. Benefits are funded on a pay-as-you-go basis
Inflation 2.25% per year
Salary increases 2.50% per year
Investment rate of return 2.59% per year
Retirement age Non-converted - any age with 20 or more years of creditable service
Converted - age 52 with 20 or more years of creditable service and no longer active
Mortality RP-2014 Total Data Set Mortality Tables with mortality improvement since 2006 using scale MP-2014 removed
and projected on a fully generational basis using the future mortality improvement scale inherent in the mortality
projection included in the Social Security Administration's 2014 Trustee Report
Other information Cost of living increases of 2.50% per year in retirement for non-converted and 2.00% per year in retirement for
converted
109
City of South Bend, Indiana
Required Supplemental Information
1937 Firefighters' Pension Plan
Schedule of Changes in the City Net Pension Liability and
Related Ratios
Last Two Fiscal Years
2015 2014
Total Pension Liability
Service cost$155,487$114,297
Interest 2,020,796 3,155,669
Changes in benefit terms--
Differences between expected and actual experience(2,816,692)-
Changes in assumptions(245,887)9,620,657
Projected benefit payments(5,094,762)(5,206,870)
Net Change in Total Pension Liability(5,981,058)7,683,753
Total Pension Liability- Beginning of year 83,390,271 75,706,518
Total Pension Liability- End of year$77,409,213$83,390,271
Plan Fiduciary Net Position
Contributions - Other$2,667$1,484
Contributions - Non-employer Entity 5,039,025 5,129,098
Net investment income 2,675 1,963
Administrative expenses(14,255)(10,920)
Benefit payments, including refunds(5,197,159)(5,407,429)
Other--
Net Change in Plan Fiduciary Net Position(167,047)(285,804)
Plan Fiduciary Net Position- Beginning of year 639,081 924,885
Plan Fiduciary Net Position - End of year$472,034$639,081
City's Net Pension Liability- Ending$76,937,179$82,751,190
Plan Fiduciary Net Position as a Percentage of Total Pension
Liability%0.61%0.77
Covered Employee Payroll$328,600$328,600
City's Net Pension Liability as a Percentage of Covered
Employee Payroll%23,413.6%25,183.0
110
City of South Bend, Indiana
Required Supplemental Information
OPEB System Schedule
Year Ended December 31, 2015
The schedule of funding progress is as follows:
Actuarial
Valuation Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability (AAL)
(b)
Unfunded
AAL (UAAL)
(b-a)
Funded Ratio
(Percent)
(a/b)
Covered
Payroll
(c)
UAAL as a
Percentage of
Covered
Payroll
1/1/11$-$17,641,023$17,641,023-$--
1/1/12-17,641,023 17,641,023---
1/1/13-21,493,998 21,493,998---
1/1/14-21,493,998 21,493,998---
1/1/15-21,512,620 21,512,620-51,521,030 41.8
Information on covered payroll is not available prior to January 1, 2015.
111
City of South Bend
Required Supplemental Information
Public Employees' Retirement Fund
Schedule of City Contributions
Last Fiscal Year
2015
Actuarially determined contribution$3,650,212
Contributions in relation to the actuarially determined contribution 2,982,234
Contribution Deficiency$667,978
Covered Employee Payroll$26,681,229
Contributions as a Percentage of Covered Employee Payroll%11.2
Notes to Schedule of City Contributions
Actuarial valuation information relative to the determination of contributions:
Valuation date June 30, 2015
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percent of payroll
Remaining amortization period 30 years
Asset valuation method Not applicable. Benefits are funded on a pay-as-you-go basis
Inflation 2.25% per year
Salary increases 2.50% to 4.25% per year
Investment rate of return 6.75% per year
Retirement age Normal retirement is age 62 with 10 years of service; early retirement is age 50 with 15 years of service (reduced
benefit)
Mortality RP-2014 Total Data Set Mortality Tables with mortality improvement since 2006 using scale MP-2014 removed
and projected on a fully generational basis using the future mortality improvement scale inherent in the mortality
projection included in the Social Security Administration's 2014 Trustee Report
Other information Cost of living increases of 2.00% per year in retirement
112
City of South Bend
Required Supplemental Information
Public Employees' Retirement Fund
Schedule of the City's Proportionate Share of the Net Pension Liability
Last Two Fiscal Years
2015 2014
City's proportion of the net pension liability (asset)%0.00557%0.00563
City's proportionate share of the net pension liability (asset)$22,687,694$14,807,363
City's covered employee payroll$26,681,229$27,509,916
City's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Employee
Payroll%85.0%53.8
Plan Fiduciary Net Position as a Percentage of Total Pension Liability%77.3%84.3
113
City of South Bend
Required Supplemental Information
1977 Police Officers' Pension and Disability Fund
Schedule of City Contributions
Last Fiscal Year
2015
Actuarially determined contribution$709,017
Contributions in relation to the actuarially determined contribution 2,625,418
Contribution Deficiency (Excess)$(1,916,401)
Covered Employee Payroll$13,327,077
Contributions as a Percentage of Covered Employee Payroll%19.7
Notes to Schedule of City Contributions
Actuarial valuation information relative to the determination of contributions:
Valuation date June 30, 2015
Methods and assumptions used to determine contribution rates
Actuarial cost method Entry age normal
Amortization method Level percent of payroll
Remaining amortization period 30 years
Asset valuation method Not applicable. Benefits are funded on a pay-as-you-go basis
Inflation 2.25% per year
Salary increases 2.50% per year
Investment rate of return 6.75% per year
Retirement age Normal retirement is age 52 with 20 years of service; early retirement is age 50 with 20 years of service (reduced
benefit)
Mortality RP-2014 Total Data Set Mortality Tables with mortality improvement since 2006 using scale MP-2014 removed
and projected on a fully generational basis using the future mortality improvement scale inherent in the mortality
projection included in the Social Security Administration's 2014 Trustee Report
Other information Cost of living increases of 2.0% per year
114
City of South Bend
Required Supplemental Information
1977 Police Officers' Pension and Disability Fund
Schedule of the City's Proportionate Share of the Net Pension Liability
Last Two Fiscal Years
2015 2014
City's proportion of the net pension liability (asset)%0.01787%0.01829
City's proportionate share of the net pension liability (asset)$(2,640,039)$(932,236)
City's covered employee payroll$13,327,077$12,981,067
City's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Employee
Payroll%(19.8)%(7.2)
Plan Fiduciary Net Position as a Percentage of Total Pension Liability%103.2%101.1
115
City of South Bend
Required Supplemental Information
1977 Firefighters' Pension and Disability Fund
Schedule of City Contributions
Last Fiscal Year
2015
Actuarially determined contribution$743,238
Contributions in relation to the actuarially determined contribution 2,666,116
Contribution Deficiency (Excess)$(1,922,878)
Covered Employee Payroll$13,533,745
Contributions as a Percentage of Covered Employee Payroll%19.7
Notes to Schedule of City Contributions
Actuarial valuation information relative to the determination of contributions:
Valuation date June 30, 2015
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percent of payroll
Remaining amortization period 30 years
Asset valuation method Not applicable. Benefits are funded on a pay-as-you-go basis
Inflation 2.25% per year
Salary increases 2.50% per year
Investment rate of return 6.75% per year
Retirement age Normal retirement is age 52 with 20 years of service; early retirement is age 50 with 20 years of service (reduced
benefit)
Mortality RP-2014 Total Data Set Mortality Tables with mortality improvement since 2006 using scale MP-2014 removed
and projected on a fully generational basis using the future mortality improvement scale inherent in the mortality
projection included in the Social Security Administration's 2014 Trustee Report
Other information Cost of living increases of 2.0% per year
116
City of South Bend
Required Supplemental Information
1977 Firefighters' Pension and Disability Fund
Schedule of the City's Proportionate Share of the Net Pension Liability
Last Two Fiscal Years
2015 2014
City's proportion of the net pension liability (asset)%0.01815%0.01795
City's proportionate share of the net pension liability (asset)$(2,680,987)$(915,265)
City's covered employee payroll$13,533,745$12,744,754
City's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Employee
Payroll%(19.8)%(7.2)
Plan Fiduciary Net Position as a Percentage of Total Pension Liability%103.2%101.1
117
118
City of South Bend, Indiana
Required Supplemental Information
Budgetary Comparison Schedules
General Fund and Major Special Revenue Funds
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes - Property 36,638,888$ 37,349,888$ 37,349,388$ (500)$
Licenses and permits 114,200 145,350 152,245 6,895
Intergovernmenta l 8,335,316 9,203,736 9,199,549 (4,187)
Charges for services 213,005 216,065 3,078 (212,987)
Fines and forfeits 25,920 26,780 14,111 (12,669)
Other 3,671,954 3,759,496 3,358,291 (401,205)
Total revenues 48,999,283 50,701,315 50,076,662 (624,653)
Expenditures:
Current:
General government:
Mayor:
Personnel services 669,877 684,522 682,067 2,455
Supplies 11,752 12,413 12,328 85
Other services and charges 57,625 58,977 49,407 9,570
Mayor - 311 Call Center:
Personnel services 441,562 441,562 426,768 14,794
Supplies 5,500 6,125 5,797 328
Other services and charges 23,229 39,046 37,442 1,604
Capital outlay-
City Clerk:
Personnel services 339,442 339,442 313,772 25,670
Supplies 7,740 12,588 10,689 1,899
Other services and charges 69,876 79,543 55,365 24,178
Capital outlay 13,400 - - -
Common Council:
Personnel services 325,242 229,742 223,609 6,133
Supplies 4,403 8,706 7,045 1,661
Other services and charges 198,494 294,702 289,582 5,120
Administration/Finance:
Personnel services 1,806,651 1,710,406 1,645,093 65,313
Supplies 27,909 40,709 33,314 7,395
Other services and charges 180,659 234,164 209,196 24,968
General Fund
Budgeted Amounts
119
City of South Bend, Indiana
Required Supplemental Information
Budgetary Comparison Schedules
General Fund and Major Special Revenue Funds (Continued)
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
General Fund
Budgeted Amounts
City Attorney:
Personnel services 955,213$ 948,013$ 891,666$ 56,347$
Supplies 4,544 6,832 5,997 835
Other services and charges 45,662 63,754 47,106 16,648
Human Righ ts:
Personnel services 286,475 295,475 292,814 2,661
Supplies 2,010 2,010 954 1,056
Other services and charges 71,931 73,492 67,568 5,924
Capital outlay- 11,202 10,407 795
Neighborhood Code Enforcement:
Supplies- 383 - 383
Other services and charges- 1,887 - 1,887
Total General Government 5,549,196 5,595,695 5,317,986 277,709
Public Safety:
Police Department:
Personnel services 22,989,224 22,609,224 22,405,852 203,372
Supplies 289,227 499,279 467,688 31,591
Other services and charges 1,833,060 2,524,561 2,328,802 195,759
Communication Center:
Personnel services 143,972 143,972 138,008 5,964
Other services and charges 1,543,568 1,543,568 1,543,560 8
Fire Department:
Personnel services 15,733,861 16,157,086 16,153,069 4,017
Supplies 318,517 320,618 279,312 41,306
Other services and charges 1,207,954 1,296,770 1,295,167 1,603
Total Public Safety 44,059,383 45,095,078 44,611,458 483,620
120
City of South Bend, Indiana
Required Supplemental Information
Budgetary Comparison Schedules
General Fund and Major Special Revenue Funds (Continued)
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
General Fund
Budgeted Amounts
Highways and Streets:
Engineering:
Personnel services 710,552$ 687,352$ 675,354$ 11,998$
Supplies 29,240 52,462 51,544 918
Other services and charges 213,240 319,119 314,551 4,568
Total highways and streets 953,032 1,058,933 1,041,449 17,484
Culture and recreation:
Palais Royale Ballroom:
Personnel services 263,505 263,505 237,606 25,899
Supplies 22,757 23,897 15,193 8,704
Other services and charges 210,607 234,891 193,796 41,095
Capital outlay 14,000 14,000 12,072 1,928
Morris Performing Arts Center:
Personnel services 749,285 749,285 727,372 21,913
Supplies 32,850 33,542 21,828 11,714
Other services and charges 287,621 310,305 275,554 34,751
Total culture and recreation 1,580,625 1,629,425 1,483,421 146,004
Total expenditures 52,142,236 53,379,131 52,454,314 924,817
Other financing sources - Transfers In 3,642,953 3,642,953 3,642,955 2
Other financing sources - Transfers Out(500,000) - - -
Net ch ange in fund balances- 965,137 1,265,303 300,166
Fund balances - Beginning 28,684,573 28,684,573 28,684,573 -
Fund balances - Ending 28,684,573$ 29,649,710$ 29,949,876$ 300,166$
121
City of South Bend, Indiana
Required Supplemental Information
Budgetary Comparison Schedules
General Fund and Major Special Revenue Funds (Continued)
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes - Property 7,340,000$ 7,488,000$ 7,487,554$ (446)$
Intergovernmental 1,510,875 1,551,175 1,551,059 (116)
Charges for services 1,985,640 1,985,640 1,730,286 (255,354)
Fines and forfeits 500 500 (25) (525)
Other 193,700 193,700 263,065 69,365
Total revenues 11,030,715 11,219,015 11,031,939 (187,076)
Expenditures:
Current:
Culture and recreation:
Personnel services 7,105,374 7,081,699 6,875,784 205,915
Supplies 1,074,757 1,153,635 1,025,682 127,953
Other services and charges 2,693,302 2,828,661 2,782,429 46,232
Total expenditures 10,873,433 11,063,995 10,683,895 380,100
Other financing sources - Transfers out(95,500) - - -
Net change in fund balances 61,782 155,020 348,044 193,024
Fund balances - Beginning 3,500,634 3,500,634 3,500,634 -
Fund balances - Ending 3,562,416$ 3,655,654$ 3,848,678$ 193,024$
Parks and Recreation Fund
Budgeted Amounts
122
City of South Bend, Indiana
Required Supplemental Information
Budgetary Comparison Schedules
General Fund and Major Special Revenue Funds (Continued)
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes - County option income tax 6,464,911$ 6,466,190$ 6,466,190$ -$
Other 6,000 6,050 5,386 (664)
Total revenues 6,470,911 6,472,240 6,471,576 (664)
Expenditures - Personnel services 7,246,551 7,246,551 7,122,876 123,675
Net change in fund balances(775,640) (774,311) (651,300) 123,011
Fund balances - Beginning 1,293,979 1,293,979 1,293,979 -
Fund balances - Ending
518,339$ 519,668$ 642,679$ 123,011$
Budgeted Amounts
Public Safety LOIT Fund
123
City of South Bend, Indiana
Required Supplemental Information
Budgetary Comparison Schedules
General Fund and Major Special Revenue Funds (Continued)
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes - County option income 8,857,724$ 8,859,912$ 8,859,912$ -$
Other 1,024,059 1,067,059 1,055,618 (11,441)
Total revenues 9,881,783 9,926,971 9,915,530 (11,441)
Expenditures:
Current:
General Government:
Personnel Services 427,077 367,077 326,157 40,920
Supplies 1,372,932 1,064,804 922,908 141,896
Other services and charges 10,399,539 11,874,464 11,164,472 709,992
Capital outlay 811,000 1,087,322 1,073,910 13,412
Total expenditures 13,010,548 14,393,667 13,487,447 906,220
Other financing uses - Transfers out(1,500,000) (1,500,000) (1,500,000) -
Net change in fund balances(4,628,765) (5,966,696) (5,071,917) 894,779
Fund balances - Beginning 14,960,014 14,960,014 14,960,014 -
Fund balances - Ending 10,331,249$ 8,993,318$ 9,888,097$ 894,779$
COIT Fund
Budgeted Amounts
124
City of South Bend, Indiana
Required Supplemental Information
Budgetary Comparison Schedules
General Fund and Major Special Revenue Funds (Continued)
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes - County economic development income tax 8,970,839$ 9,031,710$ 9,031,709$ (1)$
Other 544,660 567,760 561,373 (6,387)
Total revenues 9,515,499 9,599,470 9,593,082 (6,388)
Expenditures:
General Government:
Other services and charges 3,001,350 3,645,967 3,512,277 133,690
Capital outlay- 4,000 3,200 800
Total expenditures 3,001,350 3,649,967 3,515,477 134,490
Other financing uses - Transfers out(6,483,782) (6,483,782) (6,483,782) -
Net change in fund balances 30,367 (534,279) (406,177) 128,102
Fund balances - Beginning 10,176,142 10,176,142 10,176,142 -
Fund balances - Ending 10,206,509$ 9,641,863$ 9,769,965$ 128,102$
Budgeted Amounts
EDIT Fund
125
City of South Bend, Indiana
Required Supplemental Information
Budget/GAAP Reconciliation
General Fund and Major Special Revenue Funds
Year Ended December 31, 2015
The major differences between budgetary (Non-GAAP) basis and GAAP basis are as follows:
a. Revenues are recorded when received in cash (budgetary) as opposed to susceptible to accrual (GAAP).
b. Expenditures are recorded when paid in cash (budgetary) as opposed to when the liability is incurred (GAAP).
c. Encumbrances are recorded as expenditures for budgetary purposes when purchase orders are issued.
Adjustments necessary to convert the results of operations at the end of the year on a budgetary basis to a GAAP basis are as follows:
Parks and Public Safety
General Recreation LOIT COIT EDIT
Net change in fund balances (budgetary basis)1,265,303$ 348,044$ (651,300)$ (5,071,917)$ (406,177)$
Adjustments:
To adjust revenues for accruals(281,668) 36,911 (13) (328,065) 299,714
To adjust expenditures for accruals 1,584,928 81,625 196,016 (262,761) (102,027)
To adjust expenditures for encumbrances 466,088 70,755 - 2,205,471 109,997
Net change in fund balances (GAAP basis)
3,034,651$ 537,335$ (455,297)$ (3,457,272)$ (98,493)$
126
City of South Bend, Indiana
Notes to Required Supplemental Information
Note 1 - Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the budgetary comparison
schedules:
A. After conferring with the Common Council President and several department heads, the City
Controller submits to the Common Council a proposed operating budget for the fiscal year
commencing the following January 1. The operating budget includes proposed expenditures and the
means of financing them.
B. Prior to adoption, the City advertises the budget and the Common Council holds public hearings to
obtain taxpayer comments. The Common Council may reduce, but not increase, the budget from the
advertised amounts.
C. No later than November 1 of each year, the budget for the next year is approved by the Common
Council through the passage of an ordinance.
D. Copies of the budget ordinance and advertisements for funds for which property taxes are levied or
highway use taxes are received are sent to the Indiana Department of Local Government Finance for
their review and approval. The budget becomes legally enacted after the City Controller receives
approval from the Indiana Department of Local Government Finance. This approval is required by
Indiana statute and ad valorem property tax rates are to be set by February 15 of the year budgeted.
The budget ordinance as approved by the Indiana Department of Local Government Finance becomes
the City's expenditures budget. The City's maximum tax levy is restricted by Indiana law, with certain
adjustments and exceptions. If the advertised budget, for funds for which property taxes are levied or
for which highway use taxes are received, exceeds the spending and tax limits of the state control laws,
an excess levy can be granted by the Indiana Department of Local Government Finance, upon appeal by
the City.
E. The legal level of budgetary control (the level at which expenditures may not exceed appropriations
without the governing body’s approval) is by object classification for all funds except for the General
Fund, which is by object classification within each department. The City’s management cannot transfer
budgeted appropriations between object classifications of a budget without approval of the Common
Council. Any revisions that alter the total appropriations for any fund or any department of the General
Fund must be approved by the Common Council and, in some instances, by the Indiana Department of
Local Government Finance. Formal budgetary integration is required by state statute and is
employed as a management control method.
127
City of South Bend, Indiana
Notes to Required Supplemental Information
(Continued)
F. Formal budgetary integration is required by State statute and is employed as a management control
device. An annual budget was legally adopted for the following funds:
Major funds:
General Fund
Special revenue funds - parks and recreation, public safety local option income tax (LOIT),
county
option income tax (COIT), economic development income tax (EDIT)
Capital projects fund - River West TIF
Nonmajor governmental funds:
Special revenue funds - motor vehicle highway, recreation non-reverting, Studebaker Oliver
revitalization grants, economic development State grants, DCI operating, community investment
grants, police state seizure, juvenile positive assistance, law enforcement continuing education,
loss recovery, emergency telephone system, local road and street, excess welfare distribution,
human rights-federal, East Race waterway, Morris and Palais marketing, police block grants,
economic development commission, hazmat, Indiana river rescue, COPS block grant II, regional
police academy, COPS MORE grant, federal drug enforcement, gift, urban development action
grant, leaf collection and removal, police K-9 unit, rainy day, excess levy
Debt service fund - College Football Hall of Fame debt service, redevelopment bond - airport
taxable, Coveleski bond debt service reserve, redevelopment bond - Palais Royale, Century
Center Energy Conservation Debt Service
Capital projects funds - emergency medical services, professional sports development, Coveleski
stadium capital, zoo endowment, park non-reverting capital, cumulative capital development,
cumulative capital improvement, Morris Performing Arts Center capital, TIF downtown, TIF
Leighton Plaza, TIF - West Washington, redevelopment general, community revitalization
enhancement district, TIF No. 1 - Southside development, TIF No. 3 - Southside development,
TIF - central medical service area, Football Hall of Fame capital, Major Moves, TIF - northeast
development, TIF Douglas road, TIF northeast residential, certified technology park, Palais Royale
historic preservation, airport urban enterprise zone
G. The City's budgetary process is based upon cash outflows, which is a non-GAAP basis. Appropriations
lapse with the expiration of the budgetary period unless encumbered by a purchase order or contract.
Encumbered appropriations are carried over and added to the subsequent year's budget.
H. Budgeted amounts are as originally adopted, or as amended by the Common Council and approved by
the Indiana Department of Local Government Finance in the regular legal manner. The net effect of
individual amendments to the budget increased the original appropriations by $46,044,296 in 2015 for
the funds listed above.
I. Expenditures did not exceed appropriations for any funds or any departments within the General Fund
which required legally approved budgets.
Other Supplemental Information
128
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions
Special Revenue Funds
Motor Vehicle Highway - To account for street construction and the operations of the street
maintenance department. Financing is provided by state motor vehicle highway distributions.
Recreation Non-Reverting - To account for fees and related expenses from park department
activities.
Studebaker/Oliver Revitalization Grants - To account for expenditures related to the
Studebaker and Oliver revitalization projects. Financing is provided by federal and state grants
and loans from other organizations.
Economic Development State Grants - To account for expenditures related to projects
promoting economic development. Financing is provided by state grants and loan payments.
Expenditures include grants and related expenses.
DCI Operating - To account for the operating expenditures related to the South Bend
Department of Community Investment. Financing will be provided by revenues received from
charges for services, other revenue sources, and from fund transfers.
Community Investment Grants - To account for revenues received from the U.S.
Department of Housing and Urban Development related to community improvement projects.
Police State Seizure - To account for law enforcement expenditures financed by the
authorized state or local agencies' sale of confiscated property.
Juvenile Positive Assistance - To account for monies received from penalties paid for curfew
violations. Expenditures include Drug Abuse Resistance Education and Juvenile Aid Bureau.
Law Enforcement Continuing Education - To account for police fees collected to finance
police officers' continuing education, training, and supplies and equipment.
Loss Recovery Fund - To account for compensatory or exemplary damage payments from
third parties arising from loss or damage to City tangible or intangible property.
Emergency Telephone System - To account for 9-1-1 revenues from the county as well as
state grants.
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.
Excess Welfare Distribution - To account for a special distribution from the County that can
only be spent on public safety expenditures.
Human Rights Federal - To account for expenditures to prevent discrimination and to
promote human rights. Financing is provided by federal grants.
East Race Waterway - To account for donations for the promotion and development of the
East Race Waterway.
129
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
Morris and Palais Marketing - To account for marketing and promotion expenditures
financed by sponsorship solicitations and donations.
Police Block Grants - To account for federal grants which provide financing for police
activities.
Economic Development Commission - To account for administrative expenditures of the
Economic Development Commission. Financing is provided by fees from businesses applying for
Economic Development Revenue Bonds.
Hazmat - To account for monies generated by the South Bend Fire Department's response to
hazardous materials incidents. Funds are used to purchase, repair, or replace hazmat equipment,
or for training and supplies.
Indiana River Rescue - To account for expenditures related to river rescue training. Financing
is provided by registration fees.
COPS Block Grant II - To account for federal grants which provide financing for police
activities.
Regional Police Academy - To account for revenues (tuition) and expenditures (seminars,
travel, lectures, and career days) related to the advancement of present and future police
officers.
COPS MORE Grant - To account for a COPS MORE grant which provides financing for police
activities.
Federal Drug Enforcement - To account for expenditures for drug enforcement. Financing is
provided by distributions from the authorized federal agencies' confiscated property sale.
Gift - To account for donations, gifts, or bequeaths for purposes designated by the donor.
Urban Development Action Grant - To account for economic development expenditures
which are financed by federal grants and loan repayments.
Leaf Collection and Removal - To account for the expenditures of a program to remove
leaves from the City each fall. Financing is provided by a monthly service fee charged to all City
residents.
Police K-9 Unit - To account for donations for development and maintenance of the K-9 unit.
Rainy Day - To account for unused and unencumbered funds that are transferred from a fund
that has a tax levy. Revenues in this fund also include special distributions of county option
income tax (COIT) and county economic development income tax (CEDIT).
Excess Levy - To account for monies collected from property taxes that exceed the City's
maximum property tax levy as determined by the Indiana Department of Local Government
Finance (DLGF). Proceeds in this statutory fund are used to offset future property tax levy
amounts as determined by the DLGF during the budget approval process.
130
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
Industrial Revolving - To account for the revenue and expenditures of providing special loans
to qualifying local firms. Financing was originally provided by a $5,000,000 Economic Adjustment
Assistance Grant from the U.S. Department of Commerce.
Debt Service Funds
College Football Hall of Fame Debt Service - To accumulate monies for the payment of
Redevelopment Authority bonds issued to refinance bonds issued for construction of the College
Football Hall of Fame. Financing is to be provided by an annual property tax levy.
Redevelopment Bond - Airport Taxable - To accumulate monies as a reserve for the
payment of Redevelopment Authority bonds for the airport taxable project.
Coveleski Bond Debt Service Reserve - To accumulate monies as a reserve for the payment
of the Coveleski Stadium recovery zone economic development bonds. Financing for debt
payments is to be provided by professional sports and convention development area taxes
(PSCDA) and county option income tax revenues if PSCDA revenues are insufficient.
Redevelopment Bond - Palais Royale - To accumulate monies as a reserve for the payment
of Redevelopment Authority bonds for the Palais Royale project.
South Bend Building Corporation Debt Service - To account for debt retirement of the
Building Corporation's Mortgage Bonds. Funding is provided by transfers from other City funds.
TIF Erskine Village Debt Service - To account for Erskine Village project debt retirement of
the south side tax incremental financing (TIF) district. Financing is provided by transfers from the
TIF South Side Development Fund.
Smart Streets Debt Service - To account for debt retirement of 2015 Redevelopment
Authority bonds for smart streets/"two-way streets" conversion. Funding is provided by transfers
from other City funds.
Parks Bonds Debt Service Fund - To account for debt retirement of the 2015 Building
Corporation/EDIT bond for park improvements. Funding is provided by transfers from other
City funds.
Century Center Energy Conservation Debt Service - To account for debt retirement of a
2015 qualified energy conservation bond for improvements at Century Center. Funding is
provided by hotel/motel tax revenue, interest rebates, and transfers from other City funds.
Capital Projects Funds
Professional Sports Development - To account for Hotel/Motel Tax and Professional Sports
Development Tax revenues dedicated toward the College Football Hall of Fame. Based on an
agreement with the National Football Foundation (NFF), the City pays the NFF to assist with the
operation and capital costs.
131
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
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.
Zoo Endowment - To account for construction projects at the City's zoo. Financing is provided
by gifts and donations.
Park Non-Reverting Capital - To account for specific revenues used to finance capital
improvements at the City parks.
Cumulative Capital Development - To account for expenditures relating to the purchase or
lease of capital improvements in the City. Financing is provided by a specific property tax levy.
Cumulative Capital Improvement - To account for state cigarette tax distributions used for
improvement projects.
Morris Performing Art Center Capital - To accumulate monies for major repairs and capital
improvements to the Morris Civic Auditorium. Financing is provided by a surcharge on ticket
sales for events held at the auditorium.
Tax Incremental Financing (TIF) - Downtown - To account for expenditures for public
improvements in the central business tax incremental district. Also, transfers are made to debt
service funds to meet debt obligations as they mature. Financing is provided by property tax
proceeds in excess of those attributable to the assessed valuation of the property in the district
before redevelopment. During TIF consolidation in 2015, this fund was closed out into the River
West TIF Fund (formerly known as the TIF Airport Fund).
Tax Incremental Financing (TIF) - Leighton Plaza - To account for expenditures for public
improvement projects in the Leighton Plaza tax incremental district. Financing is provided by
property tax proceeds in excess of those attributable to the assessed value of the property in the
district before redevelopment. During TIF consolidation in 2015, this fund was closed out into
the River West TIF Fund (formerly known as the TIF Airport Fund).
Tax Incremental Financing (TIF)- West Washington - To account for expenditures for
public improvement projects in the West Washington Economic Development Area. Financing is
provided by property tax proceeds in excess of those attributable to the assessed value of the
property in the district before redevelopment.
Redevelopment General - To account for eligible redevelopment activities in the Studebaker
Corridor financed by proceeds from land sales or leases.
Community Revitalization Enhancement District - To account for public improvements in
the Studebaker/Oliver Community Revitalization Enhancement District. Financing is provided by
income tax and gross retail tax increments in the district.
132
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
Tax Incremental Financing (TIF) No. 1 - Southside Development - To account for
expenditures for improvements in the Southside Development Tax incremental district No. 1.
Financing is provided by property tax proceeds in excess of those attributable to the assessed
valuation of the property in the district before redevelopment.
Tax Incremental Financing (TIF) No. 3 - Southside Development - To account for
expenditures for improvements in the Southside Development tax incremental district No. 3.
Financing is provided by property tax proceeds in excess of those attributable to the assessed
valuation of the property in the district before redevelopment.
Tax Incremental Financing (TIF) - Central Medical Service Area - To account for
expenditures for public improvements in the central business tax incremental district, medical
service area. Financing is provided by property tax proceeds in excess of those attributable to
the assessed valuation of the property in the district before redevelopment. During TIF
consolidation in 2015, this fund was closed out into the River West TIF Fund (formerly known as
the TIF Airport Fund).
Football Hall of Fame Capital - To account for capital expenditures for the College Football
Hall of Fame. Financing was provided by a transfer from the City's Professional Sports
Development Fund. This fund also accounts for the advance from the General Fund which may
be repaid from future operating surpluses.
Major Moves - To account for state distributions used for road construction and other uses
authorized by Indiana statute.
Tax Incremental Financing (TIF) - River East Development - To account for expenditures
for improvements in the northeast development tax incremental district. Financing is provided
by property tax proceeds in excess of those attributable to the assessed valuation of the
property in the district before redevelopment. During TIF consolidation in 2015, this fund was
renamed. It was formerly known as the TIF Northeast Development Fund.
Tax Incremental Financing (TIF) - Douglas Road - To account for expenditures for
improvements in the Douglas Road development tax incremental district. Financing is provided
by property tax proceeds in excess of those attributable to the assessed valuation of the
property in the district before redevelopment.
Tax Incremental Financing (TIF) - River East Residential - To account for expenditures for
improvements in the Northeast Neighborhood Residential development tax incremental district.
Financing is provided by property tax proceeds in excess of those attributable to the assessed
valuation of the property in the district before redevelopment. During TIF consolidation in 2015,
this fund was renamed. It was formerly known as the TIF Northeast Residential Fund.
133
City of South Bend, Indiana
Other Supplemental Information
Nonmajor Governmental Funds
Fund Descriptions (Continued)
Certified Technology Park - To account for expenditures related to acquisition,
improvements, construction and maintenance of public facilities, debt service, and other
permitted uses under Indiana Code 36-7-32-23 in connection with a certified technology park.
Financing is provided by property tax proceeds, state gross retail and uses taxes, and other
revenues.
Palais Royale Historic Preservation - To account for expenditures financed by a 2 percent
fee charged for all Palais Royale services.
Airport Urban Enterprise Zone - To account for expenditures for improvements in the Zone
area, financed by property taxes on qualifying properties in the Zone.
Equipment Leasing - To account for proceeds from capital lease-purchase agreements used to
finance major equipment needs of the City.
Century Center Energy Conservation Bond - To account for capital expenditures at
Century Center funded by a qualified energy conservation bond (QECB) and other sources.
Smart Steets Bond Capital Projects Fund - To account for capital expenditures in
connection with the conversion of one-way streets to two-way streets in the downtown area.
Funding is provided by a Redevelopment Authority bond.
Parks Bond Capital Projects Fund - To account for capital expenditures in the City parks
with funding provided by a Building Corporation bond.
134
City of South Bend, Indiana
Special Revenue Funds
Motor Vehicle
Highway
Recreation
Nonreverting
Studebaker
Oliver
Revitalization
Grants
Economic
Development
State Grants DCI Operating
Assets
Cash and cash equivalents$1,057,082$166,676$224,263$157,121$227,319
Investments 4,153,870 654,964 881,255 3,229 893,265
Receivables:
Taxes-----
Accounts 47,481 2,337--29,644
Interest 8,332 1,309 1,760 12 1,792
Intergovernmental 789,902--1,633,937-
Loans---379,015-
Due from other funds 69 1,304---
Advances to other funds--500,000--
Property held for resale-----
Restricted assets-----
Total assets$6,056,736$826,590$1,607,278$2,173,314$1,152,020
Liabilities
Accounts payable$262,857$12,307$23,232$1,462,492$3,535
Due to other funds 579---1,170
Advances from other funds-----
Accrued liabilities and other -
Accrued payroll payable 46,619 3,864--24,974
Other current payables-----
Total liabilities 310,055 16,171 23,232 1,462,492 29,679
Fund Balances
Nonspendable--500,000 302,069-
Restricted 5,746,681 810,419 1,084,046 408,753-
Committed-----
Assigned----1,122,341
Unassigned-----
Total fund balances 5,746,681 810,419 1,584,046 710,822 1,122,341
Total liabilities and fund balances$6,056,736$826,590$1,607,278$2,173,314$1,152,020
135
Other Supplemental Information
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
December 31, 2015
Special Revenue Funds
Community
Investment
Grants
Police State
Seizure
Juvenile
Positive
Assistance
Law
Enforcement
Continuing
Education
Loss Recovery
Fund
Emergency
Telephone
System
Local Road and
Street
Excess Welfare
Distribution
$112,041$40,457$2,479$184,507$201,182$33,671$552,427$8
440,272 158,977 9,740 725,033 790,556-2,170,798-
--------
-15,083-27,806--241,510-
842 318 19 1,448 1,580-4,333-
------85,510-
247,107-------
--------
--------
3,155,452-------
--------
$3,955,714$214,835$12,238$938,794$993,318$33,671$3,054,578$8
$290,031$-$-$25,098$3,208$-$111,372$-
36,769-------
--------
--------
3,869-------
330,669--25,098 3,208-111,372-
3,348,196-------
276,849 214,835-913,696-33,671 2,943,206 8
--12,238-990,110---
--------
--------
3,625,045 214,835 12,238 913,696 990,110 33,671 2,943,206 8
$3,955,714$214,835$12,238$938,794$993,318$33,671$3,054,578$8
136
City of South Bend, Indiana
Special Revenue Funds
Human Rights
Federal
East Race
Waterway
Morris and
Palais
Marketing
Police Block
Grants
Economic
Development
Commission
Assets
Cash and cash equivalents$78,334$270$6,148$780$5,542
Investments 346,532 1,063 24,158 3,064 21,778
Receivables:
Taxes-----
Accounts--200--
Interest 555 2 48 6 43
Intergovernmental 71,000----
Loans-----
Due from other funds-----
Advances to other funds-----
Property held for resale-----
Restricted assets-----
Total assets$496,421$1,335$30,554$3,850$27,363
Liabilities
Accounts payable$795$-$-$-$-
Due to other funds-----
Advances from other funds-----
Accrued liabilities and other -
Accrued payroll payable 1,582----
Other current payables-----
Total liabilities 2,377----
Fund Balances
Nonspendable-----
Restricted 494,044--3,850-
Committed-1,335 30,554-27,363
Assigned-----
Unassigned-----
Total fund balances 494,044 1,335 30,554 3,850 27,363
Total liabilities and fund balances$496,421$1,335$30,554$3,850$27,363
137
Other Supplemental Information
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
December 31, 2015
Special Revenue Funds
Hazmat
Indiana River
Rescue
COPS Block
Grant II
Regional Police
Academy
COPS MORE
Grant
Federal Drug
Enforcement Gift
Urban
Development
Action Grant
$6,494$19,332$121,196$14,223$24,621$252,752$13,140$127,687
25,519 75,967-55,889 96,751-51,635 501,754
--------
---1,950 270---
51 151-112 193 94 103 1,020
----7,319---
-------739,400
--------
--------
--------
--------
$32,064$95,450$121,196$72,174$129,154$252,846$64,878$1,369,861
$-$1,800$6,713$251$407$-$-$-
--------
-------1,589,771
-46------
--------
-1,846 6,713 251 407--1,589,771
-------117,010
--114,483-128,747 252,846 64,878 622,390
32,064--71,923----
-93,604------
-------(959,310)
32,064 93,604 114,483 71,923 128,747 252,846 64,878(219,910)
$32,064$95,450$121,196$72,174$129,154$252,846$64,878$1,369,861
138
City of South Bend, Indiana
Special Revenue Funds
Leaf
Collection
and
Removal
Police K-9
Unit Rainy Day Excess Levy
Industrial
Revolving
Fund Total
Assets
Cash and cash equivalents$186,799$784$1,760,578$742$1,812,796$7,391,451
Investments 734,037 3,079 6,918,304 2,917 235,456 19,979,862
Receivables:
Taxes------
Accounts 36,815----403,096
Interest 1,465 6 13,817 6-39,417
Intergovernmental-----2,587,668
Loans----4,875,110 6,240,632
Due from other funds-----1,373
Advances to other funds-----500,000
Property held for resale----97,800 3,253,252
Restricted assets------
Total assets$959,116$3,869$8,692,699$3,665$7,021,162$40,396,751
Liabilities
Accounts payable$-$-$-$-$-$2,204,098
Due to other funds-----38,518
Advances from other funds-----1,589,771
Accrued liabilities and other -
Accrued payroll payable-----77,085
Other current payables-----3,869
Total liabilities-----3,913,341
Fund Balances
Nonspendable----4,174,946 8,442,221
Restricted----2,846,216 16,959,618
Committed-----1,165,587
Assigned 959,116 3,869 8,692,699 3,665-10,875,294
Unassigned-----(959,310)
Total fund balances 959,116 3,869 8,692,699 3,665 7,021,162 36,483,410
Total liabilities and fund balances$959,116$3,869$8,692,699$3,665$7,021,162$40,396,751
139
Other Supplemental Information
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
December 31, 2015
Debt Service Funds
College
Football Hall of
Fame Debt
Service
Redevelopment
Bond - Airport
Taxable
Coveleski Bond
Debt Service
Reserve
Redevelopment
Bond - Palais
Royale
South Bend
Building
Corporation
Debt Service
TIF Erskine
Village Debt
Service
Smart Streets
Debt Service
Parks Bond
Debt Service
Fund
$16,371$210,155$102,858$351,136$561,710$561,115$2,895,787$555,687
211 825,819 404,188 1,379,810----
--------
--------
-1,649 807 2,756--49-
--------
--------
--------
--------
--------
--------
$16,582$1,037,623$507,853$1,733,702$561,710$561,115$2,895,836$555,687
$-$-$-$-$-$-$-$-
--------
--------
--------
--------
--------
--------
16,582 1,037,623 507,853 1,733,702 561,710 561,115 2,895,836 555,687
--------
--------
--------
16,582 1,037,623 507,853 1,733,702 561,710 561,115 2,895,836 555,687
$16,582$1,037,623$507,853$1,733,702$561,710$561,115$2,895,836$555,687
140
City of South Bend, Indiana
Debt Service Funds Capital Projects Funds
Century
Center Energy
Conservation
Debt Service Total
Professional
Sports
Development
Coveleski
Stadium
Capital
Zoo
Endowment
Assets
Cash and cash equivalents$50,032$5,304,851$86,564$16,721$10,015
Investments-2,610,028 340,160 65,707 39,355
Receivables:
Taxes-----
Accounts-----
Interest-5,261 679 131 79
Intergovernmental--149,007--
Loans-----
Due from other funds-----
Advances to other funds-----
Property held for resale-----
Restricted assets-----
Total assets$50,032$7,920,140$576,410$82,559$49,449
Liabilities
Accounts payable$-$-$-$22,000$-
Due to other funds-----
Advances from other funds-----
Accrued liabilities and other -
Accrued payroll payable-----
Other current payables-----
Total liabilities---22,000-
Fund Balances
Nonspendable-----
Restricted 50,032 7,920,140 576,410--
Committed---60,559 49,449
Assigned-----
Unassigned-----
Total fund balances 50,032 7,920,140 576,410 60,559 49,449
Total liabilities and fund balances$50,032$7,920,140$576,410$82,559$49,449
141
Other Supplemental Information
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
December 31, 2015
Capital Projects Funds
Park
Nonreverting
Capital
Cumulative
Capital
Development
Cumulative
Capital
Improvement
Morris
Performing
Arts Center
Capital TIF Downtown
TIF Leighton
Plaza
TIF - West
Washington
Redevelopment
General
$34,842$115,850$63,040$104,662$-$84,013$305,206$1,763
373,867 455,240 247,718 411,277-131,219 1,199,326 6,926
------84,361-
-----2,192--
742 903 492 821-262 2,392 14
--------
--------
--------
--------
------436,690-
60,300-------
$469,751$571,993$311,250$516,760$-$217,686$2,027,975$8,703
$-$-$-$9,945$-$4,996$3,366$-
--------
--------
--------
-----6,112--
---9,945-11,108 3,366-
------436,690-
469,751 571,993 311,250--206,578 1,587,919-
---506,815----
-------8,703
--------
469,751 571,993 311,250 506,815-206,578 2,024,609 8,703
$469,751$571,993$311,250$516,760$-$217,686$2,027,975$8,703
142
City of South Bend, Indiana
Capital Projects Funds
Community
Revitalization
Enhancement
District
TIF No. 1 -
Southside
Development
TIF No. 3 -
Southside
Development
TIF-Central
Medical Service
Area
Football Hall of
Fame Capital
Assets
Cash and cash equivalents$2,404$1,234,613$1,073,995$-$101,857
Investments-4,851,492 4,220,333-400,254
Receivables:
Taxes-173,447---
Accounts-----
Interest 45 9,660 8,428-800
Intergovernmental-----
Loans-----
Due from other funds-----
Advances to other funds-----
Property held for resale-----
Restricted assets-----
Total assets$2,449$6,269,212$5,302,756$-$502,911
Liabilities
Accounts payable$-$153,472$-$-$10,509
Due to other funds----737
Advances from other funds----491,665
Accrued liabilities and other -
Accrued payroll payable-----
Other current payables-----
Total liabilities-153,472--502,911
Fund Balances
Nonspendable-----
Restricted 2,449 6,115,740 5,302,756--
Committed-----
Assigned-----
Unassigned-----
Total fund balances 2,449 6,115,740 5,302,756--
Total liabilities and fund balances$2,449$6,269,212$5,302,756$-$502,911
143
Other Supplemental Information
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
December 31, 2015
Capital Projects Funds
Major Moves
TIF River East
Development
TIF Douglas
Road
TIF - River East
Residential
Certified
Technology
Park
Palais Royale
Historic
Preservation
Airport Urban
Enterprise
Zone
Equipment
Leasing
$436,896$1,531,500$30,720$328,133$460,456$15,477$76,892$422,833
1,716,811 6,018,127 120,715 1,289,420 1,809,392 60,820 302,152-
-185,320 40,736-----
--------
3,429 12,017 238 2,465 3,619 121 603-
--------
--------
--------
5,071,713-------
--------
--------
$7,228,849$7,746,964$192,409$1,620,018$2,273,467$76,418$379,647$422,833
$129,904$85,558$-$-$-$-$-$-
--------
--635,520 4,436,193----
--------
--------
129,904 85,558 635,520 4,436,193----
5,071,713-------
2,027,232 7,661,406--2,273,467--422,833
-----76,418 379,647-
--------
--(443,111)(2,816,175)----
7,098,945 7,661,406(443,111)(2,816,175)2,273,467 76,418 379,647 422,833
$7,228,849$7,746,964$192,409$1,620,018$2,273,467$76,418$379,647$422,833
144
City of South Bend
Other Supplemental Information
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
December 31, 2015
Capital Projects Funds
Century
Center Energy
Conservation
Bond
Smart Streets
Bond Capital
Projects Fund
Parks Bond
Capital
Projects Fund Total
Total Nonmajor
Governmental
Funds
Assets
Cash and cash equivalents$1,348,997$19,053,536$4,995,004$31,935,989$44,632,291
Investments---24,060,311 46,650,201
Receivables:
Taxes---483,864 483,864
Accounts---2,192 405,288
Interest-329-48,269 92,947
Intergovernmental---149,007 2,736,675
Loans----6,240,632
Due from other funds----1,373
Advances to other funds---5,071,713 5,571,713
Property held for resale---436,690 3,689,942
Restricted assets---60,300 60,300
Total assets$1,348,997$19,053,865$4,995,004$62,248,335$110,565,226
Liabilities
Accounts payable$1,005,519$30,078$44,773$1,500,120$3,704,218
Due to other funds---737 39,255
Advances from other funds---5,563,378 7,153,149
Accrued liabilities and other -
Accrued payroll payable----77,085
Other current payables---6,112 9,981
Total liabilities 1,005,519 30,078 44,773 7,070,347 10,983,688
Fund Balances
Nonspendable---5,508,403 13,950,624
Restricted 343,478 19,023,787 4,950,231 51,847,280 76,727,038
Committed---1,072,888 2,238,475
Assigned---8,703 10,883,997
Unassigned---(3,259,286)(4,218,596)
Total fund balances 343,478 19,023,787 4,950,231 55,177,988 99,581,538
Total liabilities and fund balances$1,348,997$19,053,865$4,995,004$62,248,335$110,565,226
145
City of South Bend, Indiana
Special Revenue Funds
Motor Vehicle
Highway
Recreation
Nonreverting
Studebaker
Oliver
Revitalization
Grants
Economic
Development
State Grants DCI Operating
Revenue
Property taxes$-$-$-$-$-
Professional sports development taxes-----
Intergovernmental 5,893,499-128,597 2,590,236 257,933
Charges for services 269,795 941,966--282,530
Fines and forfeitures-----
Investment income 27,722 5,025 6,336 11,222 6,512
Rental income-----
Other revenue 44,083 50,324-749 2,481
Total revenue 6,235,099 997,315 134,933 2,602,207 549,456
Expenditures
Current:
General government-----
Public safety-----
Highways and streets 8,510,104----
Community and economic development--137,576 2,560,444 2,390,880
Culture and recreation-985,934---
Capital outlay-----
Debt service:
Principal 357,769--59,966-
Interest on long-term debt 19,934--12,044-
Total expenditures 8,887,807 985,934 137,576 2,632,454 2,390,880
Excess of Revenue Over (Under)
Expenditures(2,652,708)11,381(2,643)(30,247)(1,841,424)
Other Financing Sources (Uses)
Debt proceeds 623,430----
Premium on refunding debt-----
Proceeds from sale of capital assets 13,529----
Transfers in 3,703,000---1,967,638
Transfers out-(3,550)---
Total other financing sources
(uses)4,339,959(3,550)--1,967,638
Net Change in Fund Balances 1,687,251 7,831(2,643)(30,247)126,214
Fund Balances- Beginning of year 4,059,430 802,588 1,586,689 741,069 996,127
Fund Balances - End of year$5,746,681$810,419$1,584,046$710,822$1,122,341
146
Other Supplemental Information
Combining Statement of Revenue, Expenditures, and Changes in
Fund Balances (Continued)
Nonmajor Governmental Funds
Year Ended December 31, 2015
Special Revenue Funds
Community
Investment
Grants
Police State
Seizure
Juvenile Positive
Assistance
Law
Enforcement
Continuing
Education
Loss Recovery
Fund
Emergency
Telephone
System
Local Road and
Street
$-$-$-$-$-$-$-
-------
2,338,715-----1,045,399
---170,947---
--163 85,423---
1,252 1,114 69 5,591 53,857 19 15,255
-------
312,295 29,397-17,078-13,769 687,871
2,652,262 30,511 232 279,039 53,857 13,788 1,748,525
----2,803,096--
-3,116-346,533---
----1,882,210-1,326,494
2,948,658------
-------
-------
180,000------
-------
3,128,658 3,116-346,533 4,685,306-1,326,494
(476,396)27,395 232(67,494)(4,631,449)13,788 422,031
-------
-------
-------
-------
-------
-------
(476,396)27,395 232(67,494)(4,631,449)13,788 422,031
4,101,441 187,440 12,006 981,190 5,621,559 19,883 2,521,175
$3,625,045$214,835$12,238$913,696$990,110$33,671$2,943,206
147
City of South Bend, Indiana
Special Revenue Funds
Excess Welfare
Distribution
Human Rights
Federal
East Race
Waterway
Morris and
Palais Marketing
Police Block
Grants
Revenue
Property taxes$-$-$-$-$-
Professional sports development taxes-----
Intergovernmental-146,450---
Charges for services---11,221-
Fines and forfeitures-----
Investment income-2,434 21 159 22
Rental income-----
Other revenue-24,159---
Total revenue-173,043 21 11,380 22
Expenditures
Current:
General government-194,793---
Public safety-----
Highways and streets-----
Community and economic development-----
Culture and recreation--3,999 7,541-
Capital outlay-----
Debt service:
Principal-----
Interest on long-term debt-----
Total expenditures-194,793 3,999 7,541-
Excess of Revenue Over (Under)
Expenditures-(21,750)(3,978)3,839 22
Other Financing Sources (Uses)
Debt proceeds-----
Premium on refunding debt-----
Proceeds from sale of capital assets-----
Transfers in-----
Transfers out-----
Total other financing sources
(uses)-----
Net Change in Fund Balances-(21,750)(3,978)3,839 22
Fund Balances- Beginning of year 8 515,794 5,313 26,715 3,828
Fund Balances - End of year$8$494,044$1,335$30,554$3,850
148
Other Supplemental Information
Combining Statement of Revenue, Expenditures, and Changes in
Fund Balances (Continued)
Nonmajor Governmental Funds
Year Ended December 31, 2015
Special Revenue Funds
Economic
Development
Commission Hazmat
Indiana River
Rescue
COPS Block
Grant II
Regional Police
Academy
COPS MORE
Grant
Federal Drug
Enforcement
$-$-$-$-$-$-$-
-------
---56,891-62,303-
--53,950-24,588--
-------
158 188 494 55 390 624 981
-------
-----20,070 68,584
158 188 54,444 56,946 24,978 82,997 69,565
-------
-602 64,593 22,574 18,616 40,029 145,694
-------
-------
-------
-------
-------
-------
-602 64,593 22,574 18,616 40,029 145,694
158(414)(10,149)34,372 6,362 42,968(76,129)
-------
-------
-------
-------
-------
-------
158(414)(10,149)34,372 6,362 42,968(76,129)
27,205 32,478 103,753 80,111 65,561 85,779 328,975
$27,363$32,064$93,604$114,483$71,923$128,747$252,846
149
City of South Bend, Indiana
Special Revenue Funds
Gift
Urban
Development
Action Grant
Leaf Collection
and Removal Police K-9 Unit Rainy Day
Revenue
Property taxes$-$-$-$-$-
Professional sports development taxes-----
Intergovernmental-----
Charges for services--438,225--
Fines and forfeitures-----
Investment income 506 1,545 6,147 20 50,131
Rental income-----
Other revenue 8,870 9,999-1,000-
Total revenue 9,376 11,544 444,372 1,020 50,131
Expenditures
Current:
General government 48,368-79,280--
Public safety---971-
Highways and streets 1,349----
Community and economic development-----
Culture and recreation-----
Capital outlay-----
Debt service:
Principal--68,587--
Interest on long-term debt--3,631--
Total expenditures 49,717-151,498 971-
Excess of Revenue Over (Under)
Expenditures(40,341)11,544 292,874 49 50,131
Other Financing Sources (Uses)
Debt proceeds-----
Premium on refunding debt-----
Proceeds from sale of capital assets-----
Transfers in-----
Transfers out--(350,000)--
Total other financing sources
(uses)--(350,000)--
Net Change in Fund Balances(40,341)11,544(57,126)49 50,131
Fund Balances- Beginning of year 105,219(231,454)1,016,242 3,820 8,642,568
Fund Balances - End of year$64,878$(219,910)$959,116$3,869$8,692,699
150
Other Supplemental Information
Combining Statement of Revenue, Expenditures, and Changes in
Fund Balances (Continued)
Nonmajor Governmental Funds
Year Ended December 31, 2015
Special Revenue Funds Debt Service Funds
Excess Levy
Industrial
Revolving Fund Total
College Football
Hall of Fame
Debt Service
Redevelopment
Bond - Airport
Taxable
Coveleski Bond
Debt Service
Reserve
Redevelopment
Bond - Palais
Royale
$-$-$-$905,783$-$-$-
-------
--12,520,023 74,194---
--2,193,222----
--85,586----
17 151,293 349,159 61 6,013 2,928 10,050
-------
-19,416 1,310,145----
17 170,709 16,458,135 980,038 6,013 2,928 10,050
--3,125,537----
--642,728----
--11,720,157----
-103,820 8,141,378----
--997,474----
-------
--666,322 1,150,000---
--35,609 116,833---
-103,820 25,329,205 1,266,833---
17 66,889(8,871,070)(286,795)6,013 2,928 10,050
--623,430----
-------
--13,529----
--5,670,638 220,578---
--(353,550)-(6,740)-(11,262)
--5,954,047 220,578(6,740)-(11,262)
17 66,889(2,917,023)(66,217)(727)2,928(1,212)
3,648 6,954,273 39,400,433 82,799 1,038,350 504,925 1,734,914
$3,665$7,021,162$36,483,410$16,582$1,037,623$507,853$1,733,702
151
City of South Bend, Indiana
Debt Service Funds
South Bend
Building
Corporation
Debt Service
TIF Erskine
Village Debt
Service
Smart Streets
Debt Service
Parks Bond
Debt Service
Fund
Revenue
Property taxes$-$-$-$-
Professional sports development taxes----
Intergovernmental----
Charges for services----
Fines and forfeitures----
Investment income 90-439 8
Rental income----
Other revenue----
Total revenue 90-439 8
Expenditures
Current:
General government----
Public safety 107,977---
Highways and streets 3,000---
Community and economic development----
Culture and recreation----
Capital outlay----
Debt service:
Principal 1,637,965 220,000--
Interest on long-term debt 517,405 268,380 245,644-
Total expenditures 2,266,347 488,380 245,644-
Excess of Revenue Over (Under)
Expenditures(2,266,257)(488,380)(245,205)8
Other Financing Sources (Uses)
Debt proceeds--3,141,041-
Premium on refunding debt----
Proceeds from sale of capital assets----
Transfers in 2,165,606 488,380-555,679
Transfers out----
Total other financing sources
(uses)2,165,606 488,380 3,141,041 555,679
Net Change in Fund Balances(100,651)-2,895,836 555,687
Fund Balances- Beginning of year 662,361 561,115--
Fund Balances - End of year$561,710$561,115$2,895,836$555,687
152
Other Supplemental Information
Combining Statement of Revenue, Expenditures, and Changes in
Fund Balances (Continued)
Nonmajor Governmental Funds
Year Ended December 31, 2015
Debt Service Funds Capital Projects Funds
Century Center
Energy
Conservation
Debt Service Total
Professional
Sports
Development
Coveleski
Stadium Capital
Zoo
Endowment
Park
Nonreverting
Capital
Cumulative
Capital
Development
$-$905,783$-$-$-$-$428,312
--626,192----
-74,194----38,148
-----7,613-
-------
32 19,621 2,394 254 285 2,517 2,316
-------
--56,232 41,853-250-
32 999,598 684,818 42,107 285 10,380 468,776
-------
-107,977-----
-3,000-----
--800----
-------
---22,000-65,812-
-3,007,965 720,000---510,970
-1,148,262 134,803---19,693
-4,267,204 855,603 22,000-65,812 530,663
32(3,267,606)(170,785)20,107 285(55,432)(61,887)
-3,141,041-----
-------
-------
50,000 3,480,243----52,191
-(18,002)-----
50,000 6,603,282----52,191
50,032 3,335,676(170,785)20,107 285(55,432)(9,696)
-4,584,464 747,195 40,452 49,164 525,183 581,689
$50,032$7,920,140$576,410$60,559$49,449$469,751$571,993
153
City of South Bend, Indiana
Capital Projects Funds
Cumulative
Capital
Improvement
Morris
Performing Arts
Center Capital TIF Downtown
TIF Leighton
Plaza
TIF - West
Washington
Revenue
Property taxes$-$-$-$-$487,272
Professional sports development taxes-----
Intergovernmental 403,987----
Charges for services-61,164---
Fines and forfeitures-----
Investment income 645 2,981-864 6,997
Rental income 25,000----
Other revenue---160,202-
Total revenue 429,632 64,145-161,066 494,269
Expenditures
Current:
General government-----
Public safety-----
Highways and streets-----
Community and economic development-----
Culture and recreation-----
Capital outlay-71,505-126,814 102,144
Debt service:
Principal-----
Interest on long-term debt-----
Total expenditures-71,505-126,814 102,144
Excess of Revenue Over (Under)
Expenditures 429,632(7,360)-34,252 392,125
Other Financing Sources (Uses)
Debt proceeds-----
Premium on refunding debt-----
Proceeds from sale of capital assets-----
Transfers in-----
Transfers out(367,875)-(9,941,478)--
Total other financing sources
(uses)(367,875)-(9,941,478)--
Net Change in Fund Balances 61,757(7,360)(9,941,478)34,252 392,125
Fund Balances- Beginning of year 249,493 514,175 9,941,478 172,326 1,632,484
Fund Balances - End of year$311,250$506,815$-$206,578$2,024,609
154
Other Supplemental Information
Combining Statement of Revenue, Expenditures, and Changes in
Fund Balances (Continued)
Nonmajor Governmental Funds
Year Ended December 31, 2015
Capital Projects Funds
Redevelopment
General
Community
Revitalization
Enhancement
District
TIF No. 1 -
Southside
Development
TIF No. 3 -
Southside
Development
TIF-Central
Medical Service
Area
Football Hall of
Fame Capital Major Moves
$-$-$2,379,269$19,183$-$-$-
-------
-------
-------
-------
59 377 26,920 31,654-3,122 249,442
-------
-------
59 377 2,406,189 50,837-3,122 249,442
-------
-------
-------
-105,000-----
-------
1,447-762,481 201,724-69,761 2,256,767
-------
-7,794-----
1,447 112,794 762,481 201,724-69,761 2,256,767
(1,388)(112,417)1,643,708(150,887)-(66,639)(2,007,325)
-------
-------
-------
-----66,639-
---(488,380)(2,215,650)--
---(488,380)(2,215,650)66,639-
(1,388)(112,417)1,643,708(639,267)(2,215,650)-(2,007,325)
10,091 114,866 4,472,032 5,942,023 2,215,650-9,106,270
$8,703$2,449$6,115,740$5,302,756$-$-$7,098,945
155
City of South Bend, Indiana
Capital Projects Funds
TIF River East
Development
TIF Douglas
Road
TIF - River East
Residential
Certified
Technology
Park
Palais Royale
Historic
Preservation
Revenue
Property taxes$2,606,628$311,494$3,340,680$-$-
Professional sports development taxes-----
Intergovernmental----12,864
Charges for services-----
Fines and forfeitures-----
Investment income 35,131 411(571)25,185 390
Rental income---48,335-
Other revenue-256---
Total revenue 2,641,759 312,161 3,340,109 73,520 13,254
Expenditures
Current:
General government-----
Public safety-----
Highways and streets-----
Community and economic development---2,820,835-
Culture and recreation-----
Capital outlay 874,376----
Debt service:
Principal-47,003---
Interest on long-term debt-43,027 189,503--
Total expenditures 874,376 90,030 189,503 2,820,835-
Excess of Revenue Over (Under)
Expenditures 1,767,383 222,131 3,150,606(2,747,315)13,254
Other Financing Sources (Uses)
Debt proceeds-----
Premium on refunding debt-----
Proceeds from sale of capital assets 19,357----
Transfers in 1,430,965----
Transfers out--(2,931,500)--
Total other financing sources
(uses)1,450,322-(2,931,500)--
Net Change in Fund Balances 3,217,705 222,131 219,106(2,747,315)13,254
Fund Balances- Beginning of year 4,443,701(665,242)(3,035,281)5,020,782 63,164
Fund Balances - End of year$7,661,406$(443,111)$(2,816,175)$2,273,467$76,418
156
Other Supplemental Information
Combining Statement of Revenue, Expenditures, and Changes in
Fund Balances (Continued)
Nonmajor Governmental Funds
Year Ended December 31, 2015
Capital Projects Funds
Airport Urban
Enterprise Zone
Equipment
Leasing
Century Center
Energy
Conservation
Bond
Smart Streets
Bond Capital
Projects Fund
Parks Bond
Capital Projects
Fund Total
Total Nonmajor
Governmental
Funds
$-$-$-$-$-$9,572,838$10,478,621
-----626,192 626,192
-----454,999 13,049,216
-----68,777 2,261,999
------85,586
2,189 24-3,104 354 397,044 765,824
-----73,335 73,335
-250---259,043 1,569,188
2,189 274-3,104 354 11,452,228 28,909,961
------3,125,537
------750,705
---176,916-176,916 11,900,073
-----2,926,635 11,068,013
----247,900 247,900 1,245,374
-2,315,948 3,824,419 2,815,484 93,405 13,604,087 13,604,087
-539---1,278,512 4,952,799
-----394,820 1,578,691
-2,316,487 3,824,419 2,992,400 341,305 18,628,870 48,225,279
2,189(2,316,213)(3,824,419)(2,989,296)(340,951)(7,176,642)(19,315,318)
-2,435,515 4,167,897 21,858,960 5,605,000 34,067,372 37,831,843
---154,123 83,495 237,618 237,618
-----19,357 32,886
-----1,549,795 10,700,676
----(397,313)(16,342,196)(16,713,748)
-2,435,515 4,167,897 22,013,083 5,291,182 19,531,946 32,089,275
2,189 119,302 343,478 19,023,787 4,950,231 12,355,304 12,773,957
377,458 303,531---42,822,684 86,807,581
$379,647$422,833$343,478$19,023,787$4,950,231$55,177,988$99,581,538
157
158
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Major Governmental Funds
Capital Projects Funds - River West TIF
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Property taxes 13,400,000$ 16,433,274$ 16,293,240$ (140,034)$
Other 1,475,000 3,669,298 3,620,344 (48,954)
Total revenues 14,875,000 20,102,572 19,913,584 (188,988)
Expenditures:
Current:
Economic Development:
Other services and charges 2,984,612 13,338,585 10,774,722 2,563,863
Capital outlay 15,864,602 34,372,012 24,534,425 9,837,587
Total expenditures 18,849,214 47,710,597 35,309,147 12,401,450
Other financing sources - Transfers in 5,000 4,993,040 4,989,785 (3,255)
Net change in fund balances(3,969,214) (22,614,985) (10,405,778) 12,209,207
Fund balances - Beginning 31,411,026 31,411,026 31,411,026 -
Fund balances - Ending 27,441,812$ 8,796,041$ 21,005,248$ 12,209,207$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(10,405,778)$
To adjust revenues for accruals 924,951
To adjust expenditures for accruals(1,943,310)
To adjust expenditures for encumbrances 11,802,075
Net change in fund balance, GAAP basis 377,938$
Budgeted Amounts
159
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Motor Vehicle Highway
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental 5,697,000$ 5,697,000$ 5,814,812$ 117,812$
Charges for services 190,000 190,000 255,529 65,529
Other 91,300 150,800 122,609 (28,191)
Total revenues 5,978,300 6,037,800 6,192,950 155,150
Expenditures:
Current:
Highways and streets:
Personnel services 4,314,548 4,314,548 3,665,648 648,900
Supplies 2,014,593 2,789,854 2,456,731 333,123
Other services and charges 3,252,159 3,301,526 3,063,165 238,361
Capital outlay 100,000 79,458 78,916 542
Total expenditures 9,681,300 10,485,386 9,264,460 1,220,926
Other financing sources - Transfers in 2,953,000 3,703,000 3,703,000 -
Net change in fund balances(750,000) (744,586) 631,490 1,376,076
Fund balances - Beginning 3,897,479 3,897,479 3,897,479 -
Fund balances - Ending 3,147,479$ 3,152,893$ 4,528,969$ 1,376,076$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 631,490$
To adjust revenues for accruals 679,107
To adjust expenditures for accruals(256,862)
To adjust expenditures for encumbrances 633,516
Net change in fund balance, GAAP basis 1,687,251$
Budgeted Amounts
160
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Recreation Nonreverting
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Charges for services 1,530,935$ 923,935$ 944,718$ 20,783$
Other 48,000 48,000 63,420 15,420
Total revenues 1,578,935 971,935 1,008,138 36,203
Expenditures:
Current:
Culture and recreation:
Personnel services 737,842 737,842 506,540 231,302
Supplies 277,645 312,970 243,646 69,324
Other services and charges 520,775 495,107 258,156 236,951
Total expenditures 1,536,262 1,545,919 1,008,342 537,577
Other financing sources (uses) - Transfers out- (3,550) (3,550) -
Net change in fund balances 42,673 (577,534) (3,754) 573,780
Fund balances - Beginning 815,052 815,052 815,052 -
Fund balances - Ending 857,725$ 237,518$ 811,298$ 573,780$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(3,754)$
To adjust revenues for accruals(10,825)
To adjust expenditures for accruals 10,859
To adjust expenditures for encumbrances 11,551
Net change in fund balance, GAAP basis 7,831$
Budgeted Amounts
161
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Studebaker Oliver Revitalization Grants
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 574,000$ 136,000$ 134,906$ (1,094)$
Expenditures:
Current:
Economic Development
Other Services and Charges 570,000 630,000 597,420 32,580
Capital Outlay- - - -
Total expenditures 570,000 630,000 597,420 32,580
Net change in fund balances 4,000 (494,000) (462,514) 31,486
Fund balances - Beginning 1,087,092 1,087,092 1,087,092 -
Fund balances - Ending 1,091,092$ 593,092$ 624,578$ 31,486$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(462,514)$
To adjust revenues for accruals 27
To adjust expenditures for accruals(23,406)
To adjust expenditures for encumbrances 483,250
Net change in fund balance, GAAP basis(2,643)$
Budgeted Amounts
162
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Economic Development State Grants
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 1,673,510$ 1,031,290$ 1,013,085$ (18,205)$
Expenditures:
Current:
Economic Development
Other services and charges 1,672,012 1,694,412 1,045,647 648,765
Capital Outlay- 2,000,000 2,000,000 -
Total expenditures 1,672,012 3,694,412 3,045,647 648,765
Net change in fund balances 1,498 (2,663,122) (2,032,562) 630,560
Fund balances - Beginning 329,623 329,623 329,623 -
Fund balances - Ending 331,121$ (2,333,499)$ (1,702,939)$ 630,560$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(2,032,562)$
To adjust revenues for accruals 1,589,121
To adjust expenditures for accruals(1,450,292)
To adjust expenditures for encumbrances 1,863,486
Net change in fund balance, GAAP basis(30,247)$
Budgeted Amounts
163
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - DCI Operating
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental 416,787$ 416,787$ 257,933$ (158,854)$
Other 247,200 267,000 267,769 769
Total revenues 663,987 683,787 525,702 (158,085)
Expenditures:
Current:
Economic Development:
Personnel services 2,110,075 2,120,943 1,979,898 141,045
Supplies 26,298 35,753 26,750 9,003
Other services and charges 495,251 505,034 478,232 26,802
Total expenditures 2,631,624 2,661,730 2,484,880 176,850
Other financing sources - Transfers in 1,967,638 1,967,638 1,967,638 -
Net change in fund balances 1 (10,305) 8,460 18,765
Fund balances - Beginning 1,074,839 1,074,839 1,074,839 -
Fund balances - Ending 1,074,840$ 1,064,534$ 1,083,299$ 18,765$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 8,460$
To adjust revenues for accruals 23,755
To adjust expenditures for accruals 54,387
To adjust expenditures for encumbrances 39,612
Net change in fund balance, GAAP basis 126,214$
Budgeted Amounts
164
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Community Investment Grants
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental 3,850,000$ 2,514,035$ 2,338,715$ (175,320)$
Other 250,000 513,000 336,269 (176,731)
Total revenues 4,100,000 3,027,035 2,674,984 (352,051)
Expenditures:
Current:
Economic development -
Other services and charges 4,100,000 6,547,968 6,469,490 78,478
Net change in fund balances- (3,520,933) (3,794,506) (273,573)
Fund balances - Beginning 791,640 791,640 791,640 -
Fund balances - Ending 791,640$ (2,729,293)$ (3,002,866)$ (273,573)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(3,794,506)$
To adjust revenues for accruals(22,724)
To adjust expenditures for accruals(216,128)
To adjust expenditures for encumbrances 3,556,962
Net change in fund balance, GAAP basis(476,396)$
Budgeted Amounts
165
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Police State Seizure
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 35,900$ 36,050$ 15,422$ (20,628)$
Expenditures:
Current:
Public Safety:
Other services and charges 35,900 35,900 3,116 32,784
Net change in fund balances- 150 12,306 12,156
Fund balances - Beginning 187,540 187,540 187,540 -
Fund balances - Ending
187,540$ 187,690$ 199,846$ 12,156$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 12,306$
To adjust revenues for accruals 15,089
Net change in fund balance, GAAP basis 27,395$
Budgeted Amounts
166
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Juvenile Positive Assistance
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Fines and fees 1,000$ 1,000$ 163$ (837)$
Other 25 25 69 44
Total revenues 1,025 1,025 232 (793)
Expenditures:
Current:
Public safety - Other services and charges 1,000 1,000 - 1,000
Total expenditures 1,000 1,000 - 1,000
Net change in fund balances 25 25 232 207
Fund balances - Beginning 12,013 12,013 12,013 -
Fund balances - Ending 12,038$ 12,038$ 12,245$ 207$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 232$
To adjust revenues for accruals-
Net change in fund balance, GAAP basis 232$
Budgeted Amounts
167
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Law Enforcement Continuing Education
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental-$ 50,000$ 49,119$ (881)$
Charges for services 100,000 100,000 124,443 24,443
Fines and fees 80,000 82,000 93,510 11,510
Other 31,000 38,000 23,244 (14,756)
Total revenues 211,000 270,000 290,316 20,316
Expenditures:
Current:
Public safety:
Supplies 115,980 172,478 154,126 18,352
Other services and charges 190,000 230,000 217,214 12,786
Capital outlay 50,000 - - -
Total expenditures 355,980 402,478 371,340 31,138
Net change in fund balances(144,980) (132,478) (81,024) 51,454
Fund balances - Beginning 961,837 961,837 961,837 -
Fund balances - Ending 816,857$ 829,359$ 880,813$ 51,454$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(81,024)$
To adjust revenues for accruals(11,275)
To adjust expenditures for accruals 14,797
To adjust expenditures for encumbrances 10,008
Net change in fund balance, GAAP basis(67,494)$
Budgeted Amounts
168
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Loss Recovery
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 4,200$ 60,500$ 54,051$ (6,449)$
Expenditures:
Current:
General government:
Supplies- 74,690 72,461 2,229
Other services and charges 1,050,000 3,273,445 3,093,436 180,009
Capital outlay- 1,889,108 1,889,108 -
Total expenditures 1,050,000 5,237,243 5,055,005 182,238
Net change in fund balances(1,045,800) (5,176,743) (5,000,954) 175,789
Fund balances - Beginning 5,867,278 5,867,278 5,867,278 -
Fund balances - Ending 4,821,478$ 690,535$ 866,324$ 175,789$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(5,000,954)$
To adjust revenues for accruals(193)
To adjust expenditures for accruals 239,387
To adjust expenditures for encumbrances 130,311
Net change in fund balance, GAAP basis(4,631,449)$
Budgeted Amounts
169
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Emergency Telephone System
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Intergovernmental-$ -$ -$ -$
Other- 20 19 (1)
Total revenues- 20 19 (1)
Net change in fund balances- 20 19 (1)
Fund balances - Beginning 33,671 33,671 33,671 -
Fund balances - Ending 33,671$ 33,691$ 33,690$ (1)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 19$
To adjust revenues for accruals 13,769
Net change in fund balance, GAAP basis 13,788$
Budgeted Amounts
170
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Local Road and Street
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental 1,000,000$ 1,046,000$ 1,045,516$ (484)$
Other 593,300 464,300 461,539 (2,761)
Total revenues 1,593,300 1,510,300 1,507,055 (3,245)
Expenditures:
Current:
Highways and streets:
Supplies 380,000 380,229 377,372 2,857
Other services and charges 157,500 245,000 230,369 14,631
Capital outlay 1,055,000 1,798,492 1,628,332 170,160
Total expenditures 1,592,500 2,423,721 2,236,073 187,648
Net change in fund balances 800 (913,421) (729,018) 184,403
Fund balances - Beginning 2,445,859 2,445,859 2,445,859 -
Fund balances - Ending
2,446,659$ 1,532,438$ 1,716,841$ 184,403$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(729,018)$
To adjust revenues for accruals 241,468
To adjust expenditures for accruals(102,364)
To adjust expenditures for encumbrances 1,011,945
Net change in fund balance, GAAP basis 422,031$
Budgeted Amounts
171
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Excess Welfare Distribution
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other-$ -$ -$ -$
Expenditures:
Current - Public safety - Supplies- - - -
Net change in fund balances- - - -
Fund balances - Beginning 8 8 8 -
Fund balances - Ending 8$ 8$ 8$ -$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis-$
To adjust revenues for accruals-
Net change in fund balance, GAAP basis-$
Budgeted Amounts
172
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Human Rights Federal
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental 187,000$ 189,000$ 77,117$ (111,883)$
Other 16,400 20,950 26,588 5,638
Total revenues 203,400 209,950 103,705 (106,245)
Expenditures:
Current:
General government
Personnel services 123,657 123,657 118,886 4,771
Supplies 2,800 2,800 1,818 982
Other services and charges 120,900 122,600 87,858 34,742
Total expenditures 247,357 249,057 208,562 40,495
Net change in fund balances(43,957) (39,107) (104,857) (65,750)
Fund balances - Beginning 530,516 530,516 530,516 -
Fund balances - Ending 486,559$ 491,409$ 425,659$ (65,750)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(104,857)$
To adjust revenues for accruals 69,339
To adjust expenditures for accruals 13,768
Net change in fund balance, GAAP basis(21,750)$
Budgeted Amounts
173
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - East Race Waterway
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other-$ 50$ 21$ (29)$
Expenditures:
Current - Culture and recreation - Supplies 4,000 4,000 3,998 2
Total expenditures 4,000 4,000 3,998 2
Net change in fund balances(4,000) (3,950) (3,977) (27)
Fund balances - Beginning 5,315 5,315 5,315 -
Fund balances - Ending 1,315$ 1,365$ 1,338$ (27)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(3,977)$
To adjust revenues for accruals(1)
Net change in fund balance, GAAP basis(3,978)$
Budgeted Amounts
174
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Morris and Palais Marketing
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 18,000$ 18,000$ 11,179$ (6,821)$
Expenditures:
Current - Culture and recreation -
Other services and charges 18,000 18,974 8,419 10,555
Net change in fund balances- (974) 2,760 3,734
Fund balances - Beginning 26,729 26,729 26,729 -
Fund balances - Ending 26,729$ 25,755$ 29,489$ 3,734$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 2,760$
To adjust revenue for accruals 2
To adjust expenditures for accruals 200
To adjust expenditures for encumbrances 877
Net change in fund balance, GAAP basis 3,839$
Budgeted Amounts
175
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Police Block Grants
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other-$ 125$ 22$ (103)$
Net change in fund balances- 125 22 (103)
Fund balances - Beginning 3,830 3,830 3,830 -
Fund balances - Ending 3,830$ 3,955$ 3,852$ (103)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 22$
To adjust revenues for accruals-
Net change in fund balance, GAAP basis 22$
Budgeted Amounts
176
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Economic Development Commission
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other-$ 300$ 157$ (143)$
Net change in fund balances- 300 157 (143)
Fund balances - Beginning 27,220 27,220 27,220 -
Fund balances - Ending 27,220$ 27,520$ 27,377$ (143)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 157$
To adjust revenues for accruals 1
Net change in fund balance, GAAP basis 158$
Budgeted Amounts
177
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Hazmat
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Charges for services 10,000$ 14,000$ 13,787$ (213)$
Other- 100 189 89
Total revenues 10,000 14,100 13,976 (124)
Expenditures:
Current:
Public safety - Supplies 10,000 31,530 21,542 9,988
Net change in fund balances- (17,430) (7,566) 9,864
Fund balances - Beginning 39,651 39,651 39,651 -
Fund balances - Ending 39,651$ 22,221$ 32,085$ 9,864$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(7,566)$
To adjust revenues for accruals(13,787)
To adjust expenditures for accruals 20,939
Net change in fund balance, GAAP basis(414)$
Budgeted Amounts
178
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Indiana River Rescue
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Charges for services 45,000$ 45,000$ 53,950$ 8,950$
Intergovernmental- - - -
Other 200 350 493 143
Total revenues 45,200 45,350 54,443 9,093
Expenditures:
Current:
Public safety:
Personnel services 7,500 7,500 3,512 3,988
Supplies 8,800 8,800 2,259 6,541
Other services and charges 79,500 79,500 37,631 41,869
Capital outlay 25,000 25,000 20,997 4,003
Total expenditures 120,800 120,800 64,399 56,401
Net change in fund balances(75,600) (75,450) (9,956) 65,494
Fund balances - Beginning 105,460 105,460 105,460 -
Fund balances - Ending 29,860$ 30,010$ 95,504$ 65,494$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(9,956)$
To adjust revenues for accruals 1
To adjust expenditures for accruals(194)
Net change in fund balance, GAAP basis(10,149)$
Budgeted Amounts
179
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Cops Block Grant II
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Intergovernmental 90,000$ 90,000$ 56,946$ (33,054)$
Expenditures:
Current:
Public safety:
Other services and charges- 89,959 72,346 17,613
Supplies- 15,186 14,186 1,000
Capital outlay 90,000 - - -
Total expenditures 90,000 105,145 86,532 18,613
Net change in fund balances- (15,145) (29,586) (14,441)
Fund balances - Beginning 95,464 95,464 95,464 -
Fund balances - Ending 95,464$ 80,319$ 65,878$ (14,441)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(29,586)$
To adjust expenditures for accruals 8,585
To adjust expenditures for encumbrances 55,373
Net change in fund balance, GAAP basis 34,372$
Budgeted Amounts
180
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Regional Police Academy
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Charges for services 20,000$ 20,500$ 22,638$ 2,138$
Other 2,000 2,200 389 (1,811)
Total revenues 22,000 22,700 23,027 327
Expenditures:
Current:
Public safety:
Supplies 1,750 1,750 1,295 455
Other services and charges 22,000 22,000 19,796 2,204
Total expenditures 23,750 23,750 21,091 2,659
Net change in fund balances(1,750) (1,050) 1,936 2,986
Fund balances - Beginning 68,322 68,322 68,322 -
Fund balances - Ending 66,572$ 67,272$ 70,258$ 2,986$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 1,936$
To adjust revenues for accruals 1,952
To adjust expenditures for accruals 2,474
Net change in fund balance, GAAP basis 6,362$
Budgeted Amounts
181
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - COPS MORE Grant
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental 86,658$ 208,658$ 34,019$ (174,639)$
Other 41,600.00 41,600 20,510 (21,090)
Total Revenues 128,258.00 250,258 54,529 (195,729)
Expenditures:
Current:
Public safety:
Supplies 15,000 45,735 44,510 1,225
Other services and charges 66,000 66,000 25,906 40,094
Capital outlay 60,600 60,600 - 60,600
Total expenditures 141,600 172,335 70,416 101,919
Other Financing (uses)
Transfers IN- 22,000 20,965 (1,035)$
Net change in fund balances(13,342) 99,923 5,078 (94,845)
Fund balances - Beginning 106,295 106,295 106,295 -
Fund balances - Ending 92,953$ 206,218$ 111,373$ (94,845)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 5,078$
To adjust revenues for accruals 7,502
To adjust expenditures for accruals 20,143
To adjust expenditures for encumbrances 10,245
Net change in fund balance, GAAP basis 42,968$
Budgeted Amounts
182
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Federal Drug Enforcement
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental 75,000$ 75,000$ 66,449$ (8,551)$
Other 2,000 2,000 4,839 2,839
Total revenues 77,000 77,000 71,288 (5,712)
Expenditures:
Current:
Public safety:
Supplies 45,000 84,759 67,791 16,968
Other services and charges 90,000 34,201 23,541 10,660
Capital outlay 90,000 130,000 79,711 50,289
Total expenditures 225,000 248,960 171,043 77,917
Net change in fund balances(148,000) (171,960) (99,755) 72,205
Fund balances - Beginning 345,543 345,543 345,543 -
Fund balances - Ending 197,543$ 173,583$ 245,788$ 72,205$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(99,755)$
To adjust revenues for accruals(1,724)
To adjust expenditures for accruals 18,385
To adjust expenditures for encumbrances 6,965
Net change in fund balance, GAAP basis(76,129)$
Budgeted Amounts
183
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Gift
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 216,100$ 8,800$ 9,378$ 578$
Expenditures:
Supplies- 1,552 1,349 203
Other services and charges 216,000 297,094 81,093 216,001
Capital Outlay- 15,000 - 15,000
Total expenditures 216,000 313,646 82,442 231,204
Net change in fund balances 100 (304,846) (73,064) 231,782
Fund balances - Beginning 138,018 138,018 138,018 -
Fund balances - Ending 138,118$ (166,828)$ 64,954$ 231,782$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(73,064)$
To adjust revenues for accruals(2)
To adjust expenditures for accruals 32,725
Net change in fund balance, GAAP basis(40,341)$
Budgeted Amounts
184
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Urban Development Action Grant
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 438,313$ 1,040,686$ 1,040,937$ 251$
Expenditures:
Current:
Economic Development
Other services and charges 438,203 438,203 438,203 -
Net change in fund balances 110 602,483 602,734 251
Fund balances - Beginning 27,681 27,681 27,681 -
Fund balances - Ending 27,791$ 630,164$ 630,415$ 251$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 602,734$
To adjust revenues for accruals(1,029,393)
To adjust expenditures for accruals 438,203
Net change in fund balance, GAAP basis 11,544$
Budgeted Amounts
185
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Leaf Collection and Removal
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Charges for services 429,000$ 429,000$ 438,225$ 9,225$
Other 2,700 2,700 6,133 3,433
Total revenues 431,700 431,700 444,358 12,658
Expenditures:
Current:
General government:
Personnel services 64,081 64,081 38,899 25,182
Supplies 6,000 900 847 53
Other services and charges 102,277 107,379 107,377 2
Other uses 6,000 5,998 5,765 233
Total expenditures 178,358 178,358 152,888 25,470
Other financing uses -
Transfers out(350,000) (350,000) (350,000) -
Net change in fund balances(96,658) (96,658) (58,530) 38,128
Fund balances - Beginning 980,362 980,362 980,362 -
Fund balances - Ending 883,704$ 883,704$ 921,832$ 38,128$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(58,530)$
To adjust revenues for accruals 14
To adjust expenditures for accruals 1,390
Net change in fund balance, GAAP basis(57,126)$
Budgeted Amounts
186
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Police K-9 Unit
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 2,000$ 2,000$ 1,520$ (480)$
Expenditures:
Current - Public safety -
Other services and charges 2,000 2,000 970 1,030
Net change in fund balances- - 550 550
Fund balances - Beginning 3,321 3,321 3,321 -
Fund balances - Ending 3,321$ 3,321$ 3,871$ 550$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 550$
To adjust expenditures for accruals(501)
Net change in fund balance, GAAP basis 49$
Budgeted Amounts
187
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Rainy Day
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 34,680$ 61,280$ 49,919$ (11,361)$
Net change in fund balances 34,680 61,280 49,919 (11,361)
Fund balances - Beginning 8,647,178 8,647,178 8,647,178 -
Fund balances - Ending 8,681,858$ 8,708,458$ 8,697,097$ (11,361)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 49,919$
To adjust revenues for accruals 212
Net change in fund balance, GAAP basis 50,131$
Budgeted Amounts
188
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Special Revenue Funds - Excess Levy
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other-$ 20$ 18$ (2)$
Net change in fund balances- 20 18 (2)
Fund balances - Beginning 3,648 3,648 3,648 -
Fund balances - Ending 3,648$ 3,668$ 3,666$ (2)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 18$
To adjust revenues for accruals(1)
Net change in fund balance, GAAP basis 17$
Budgeted Amounts
189
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Debt Service Funds - College Football Hall of Fame Debt Service
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes:
Property 1,177,620$ 906,264$ 906,263$ (1)$
Intergovernmental 96,436 294,846 294,772 (74)
Other- 50 41 (9)
Total revenues 1,274,056 1,201,160 1,201,076 (84)
Expenditures:
Debt service:
Principal 1,150,000 1,150,000 1,150,000 -
Interest and fiscal agent fees 116,820 122,000 122,000 -
Total expenditures 1,266,820 1,272,000 1,272,000 -
Net change in fund balances 7,236 (70,840) (70,924) (84)
Fund balances - Beginning 74,164 74,164 74,164 -
Fund balances - Ending 81,400$ 3,324$ 3,240$ (84)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(70,924)$
To adjust revenues for accruals(461)
To adjust expenditures for accruals 5,168
Net change in fund balance, GAAP basis(66,217)$
Budgeted Amounts
190
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Debt Service Funds - Redevelopment Bond - Airport Taxable
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 5,000$ 7,400$ 5,989$ (1,411)$
Other financing uses - Transfers out(5,000) (5,000) (6,740) (1,740)
Net change in fund balances- 2,400 (751) (3,151)
Fund balances - Beginning 1,038,904 1,038,904 1,038,904 -
Fund balances - Ending 1,038,904$ 1,041,304$ 1,038,153$ (3,151)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(751)$
To adjust revenues for accruals 24
Net change in fund balance, GAAP basis(727)$
Budgeted Amounts
191
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Debt Service Funds - Coveleski Bond Debt Service Reserve
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 1,800$ 3,800$ 2,916$ (884)$
Net change in fund balances 1,800 3,800 2,916 (884)
Fund balances - Beginning 505,194 505,194 505,194 -
Fund balances - Ending 506,994$ 508,994$ 508,110$ (884)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 2,916$
To adjust revenues for accruals 12
Net change in fund balance, GAAP basis 2,928$
Budgeted Amounts
192
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Debt Service Funds - Redevelopment Bond - Palais Royale
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 6,000$ 13,000$ 10,007$ (2,993)$
Other financing uses - Transfers out(6,000) (6,000) (11,262) (5,262)
Net change in fund balances- 7,000 (1,255) (8,255)
Fund balances - Beginning 1,735,840 1,735,840 1,735,840 -
Fund balances - Ending 1,735,840$ 1,742,840$ 1,734,585$ (8,255)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(1,255)$
To adjust revenues for accruals 43
Net change in fund balance, GAAP basis(1,212)$
Budgeted Amounts
193
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Debt Service Funds - Century Center Energy Conservation Debt
Service
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other-$ 40$ 32$ (8)$
Other financing sources - Transfers in- 50,000 50,000 -
Net change in fund balances- 50,040 50,032 (8)
Fund balances - Beginning- - - -
Fund balances - Ending-$ 50,040$ 50,032$ (8)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 50,032$
To adjust expenditures for accruals-
Net change in fund balance, GAAP basis 50,032$
Budgeted Amounts
194
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Professional Sports Development
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental 610,000$ 747,750$ 628,261$ (119,489)$
Other 61,761 66,261 58,624 (7,637)
Total revenues 671,761 814,011 686,885 (127,126)
Expenditures:
Culture and recreation:
Other services and charges 754,803 755,603 755,603 -
Other uses 100,000 100,000 100,000 -
Total expenditures 854,803 855,603 855,603 -
Net change in fund balances(183,042) (41,592) (168,718) (127,126)
Fund balances - Beginning 596,436 596,436 596,436 -
Fund balances - Ending 413,394$ 554,844$ 427,718$ (127,126)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(168,718)$
To adjust revenues for accruals(2,067)
Net change in fund balance, GAAP basis(170,785)$
Budgeted Amounts
195
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Coveleski Stadium Capital
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 15,100$ 42,100$ 42,103$ 3$
Net change in fund balances 15,100 42,100 42,103 3
Fund balances - Beginning 40,474 40,474 40,474 -
Fund balances - Ending 55,574$ 82,574$ 82,577$ 3$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 42,103$
To adjust revenues for accruals 4
To adjust expenditures for accruals(22,000)
Net change in fund balance, GAAP basis 20,107$
Budgeted Amounts
196
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Zoo Endowment
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 200$ 200$ 284$ 84$
Expenditures:
Capital 49,000 49,000 - 49,000
Net change in fund balances(48,800) (48,800) 284 49,084
-
Fund balances - Beginning 49,190 49,190 49,190 -
Fund balances - Ending 390$ 390$ 49,474$ 49,084$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 284$
To adjust revenues for accruals 1
Net change in fund balance, GAAP basis 285$
Budgeted Amounts
197
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Park Nonreverting Capital
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Charges for services 34,000$ 34,000$ 7,613$ (26,387)$
Other 14,200 14,200 6,758 (7,442)
Total revenues 48,200 48,200 14,371 (33,829)
Expenditures:
Culture and recreation:
Supplies 58,000 67,073 33,714 33,359
Other services and charges 50,000 21,860 20,932 928
Capital outlay 75,000 104,000 22,499 81,501
Total expenditures 183,000 192,933 77,145 115,788
Other financing sources - Transfers in 95,500 95,500 - (95,500)
Net change in fund balances(39,300) (49,233) (62,774) (13,541)
Fund balances - Beginning 521,465 521,465 521,465 -
Fund balances - Ending 482,165$ 472,232$ 458,691$ (13,541)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(62,774)$
To adjust revenues for accruals(3,991)
To adjust expenditures for encumbrances 11,333
Net change in fund balance, GAAP basis(55,432)$
Budgeted Amounts
198
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Cumulative Capital Development
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes - Property 450,000$ 428,730$ 428,727$ (3)$
Intergovernmental 90,191 90,339 90,339 -
Other 2,500 2,500 2,307 (193)
Total revenues 542,691 521,569 521,373 (196)
Expenditures:
General government -
Other services and charges 542,691 542,691 530,663 12,028
Total expenditures 542,691 542,691 530,663 12,028
Net change in fund balances- (21,122) (9,290) 11,832
Fund balances - Beginning 581,586 581,586 581,586 -
Fund balances - Ending 581,586$ 560,464$ 572,296$ 11,832$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(9,290)$
To adjust revenues for accruals(406)
Net change in fund balance, GAAP basis(9,696)$
Budgeted Amounts
199
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Cumulative Capital Improvement
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental 397,000$ 404,000$ 403,987$ (13)$
Other 25,150 26,050 25,637 (413)
Total revenues 422,150 430,050 429,624 (426)
Expenditures - General government -
Other services and charges 365,625 367,875 367,875 -
Net change in fund balances 56,525 62,175 61,749 (426)
Fund balances - Beginning 249,627 249,627 249,627 -
Fund balances - Ending 306,152$ 311,802$ 311,376$ (426)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 61,749$
To adjust revenues for accruals 8
Net change in fund balance, GAAP basis 61,757$
Budgeted Amounts
200
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Morris Performing Arts Center Capital
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Charges for services 100,000$ 100,000$ 61,164$ (38,836)$
Other 1,500 1,500 2,969 1,469
Total revenues 101,500 101,500 64,133 (37,367)
Expenditures:
Culture and recreation:
Supplies 20,000 35,210 35,025 185
Other services and charges 40,000 45,038 42,726 2,312
Total expenditures 60,000 80,248 77,751 2,497
Net change in fund balances 41,500 21,252 (13,618) (34,870)
Fund balances - Beginning 515,718 515,718 515,718 -
Fund balances - Ending 557,218$ 536,970$ 502,100$ (34,870)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(13,618)$
To adjust revenues for accruals 12
To adjust expenditures for accruals(8,677)
To adjust expenditures for encumbrances 14,923
Net change in fund balance, GAAP basis(7,360)$
Budgeted Amounts
201
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - TIF Downtown
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes 3,500,000$ -$ -$ -$
Intergovernmental 489,500 - - -
Charges for Services 34,000 - - -
Other 314,702 - - -
Total revenues 4,338,202 - - -
Expenditures:
Economic Development:
Other services and charges 3,316,193 - - -
Capital outlay 1,028,009 - - -
Total expenditures 4,344,202 - - -
Other financing sources - Transfers in 6,000 - - -
Other financing sources - Transfers out- (4,088,473) (4,088,473) -
Net change in fund balances- (4,088,473) (4,088,473) -
Fund balances - Beginning 4,098,979 4,098,979 4,098,979 -
Fund balances - Ending 4,098,979$ 10,506$ 10,506$ -$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(4,088,473)$
To adjust expenditures for accruals(5,853,005)
Net change in fund balance, GAAP basis(9,941,478)$
Budgeted Amounts
202
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - TIF Leighton Plaza
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 189,123$ 210,215$ 166,751$ (43,464)$
Expenditures:
Economic Development:
Supplies 8,250 8,250 7,390 860
Other services and charges 146,466 146,466 123,071 23,395
Capital outlay- - - -
Total expenditures 154,716 154,716 130,461 24,255
Net change in fund balances 34,407 55,499 36,290 (19,209)
Fund balances - Beginning 172,578 172,578 172,578 -
Fund balances - Ending 206,985$ 228,077$ 208,868$ (19,209)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 36,290$
To adjust revenues for accruals(5,684)
To adjust expenditures for accruals 3,646
Net change in fund balance, GAAP basis 34,252$
Budgeted Amounts
203
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - TIF - West Washington
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes 420,000$ 420,000$ 402,911$ (17,089)$
Other 2,000 9,800 6,942 (2,858)
Total revenues 422,000 429,800 409,853 (19,947)
Expenditures:
Economic Development:
Other services and charges- 33,868 33,868 -
Capital outlay 722,000 727,032 368,276 358,756
Total expenditures 722,000 760,900 402,144 358,756
Net change in fund balances(300,000) (331,100) 7,709 338,809
Fund balances - Beginning 1,196,440 1,196,440 1,196,440 -
Fund balances - Ending 896,440$ 865,340$ 1,204,149$ 338,809$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 7,709$
To adjust revenues for accruals 84,416
To adjust expenditures for accruals(3,366)
To adjust expenditures for encumbrances 303,366
Net change in fund balance, GAAP basis 392,125$
Budgeted Amounts
204
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Redevelopment General
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 252$ 252$ 59$ (193)$
Expenditures:
Economic Development -
Other services and charges 6,000 6,000 1,447 4,553
Net change in fund balances(5,748) (5,748) (1,388) 4,360
Fund balances - Beginning 10,096 10,096 10,096 -
Fund balances - Ending 4,348$ 4,348$ 8,708$ 4,360$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(1,388)$
To adjust expenditures for accruals-
Net change in fund balance, GAAP basis(1,388)$
Budgeted Amounts
205
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Community Revitalization
Enhancement District
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Intergovernmental 650,000$ -$ -$ -$
Other- 450 360 (90)
Total revenues 650,000 450 360 (90)
Expenditures:
Economic Development -
Other services and charges 650,000 650,000 7,794 642,206
Net change in fund balances- (649,550) (7,434) 642,116
Fund balances - Beginning 9,838 9,838 9,838 -
Fund balances - Ending 9,838$ (639,712)$ 2,404$ 642,116$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(7,434)$
To adjust revenues for accruals 17
To adjust expenditures for accruals(105,000)
Net change in fund balance, GAAP basis(112,417)$
Budgeted Amounts
206
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - TIF No. 1 - Southside Development
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes 2,400,000$ 2,400,000$ 2,205,822$ (194,178)$
Other 10,000 35,750 26,718 (9,032)
Total revenues 2,410,000 2,435,750 2,232,540 (203,210)
Expenditures:
Economic Development:
Other services and charges- 714,085 682,708 31,377
Capital outlay 1,620,000 2,128,450 1,723,559 404,891
Total expenditures 1,620,000 2,842,535 2,406,267 436,268
Other financing sources - Transfers in- - - -
Net change in fund balances 790,000 (406,785) (173,727) 233,058
Fund balances - Beginning 4,960,153 4,960,153 4,960,153 -
Fund balances - Ending 5,750,153$ 4,553,368$ 4,786,426$ 233,058$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(173,727)$
To adjust revenues for accruals 173,650
To adjust expenditures for accruals 331,971
To adjust expenditures for encumbrances 1,311,814
Net change in fund balance, GAAP basis 1,643,708$
Budgeted Amounts
207
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - TIF No. 3 - Southside Development
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes-$ 19,185$ 19,183$ (2)$
Other 25,000 31,600 31,555 (45)
Total revenues 25,000 50,785 50,738 (47)
Expenditures:
Economic Development -
Other services and charges 489,380 691,380 690,104 1,276
Net change in fund balances(464,380) (640,595) (639,366) 1,229
Fund balances - Beginning 6,506,286 6,506,286 6,506,286 -
Fund balances - Ending 6,041,906$ 5,865,691$ 5,866,920$ 1,229$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(639,366)$
To adjust revenues for accruals 99
Net change in fund balance, GAAP basis(639,267)$
Budgeted Amounts
208
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - TIF - Central Medical Service Area
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes 625,000$ -$ -$ -$
Other 7,000 - - -
Total revenues 632,000 - - -
Expenditures:
Economic Development:
Other services and charges- - - -
Capital outlay 1,610,908 - - -
Total expenditures 1,610,908 - - -
Other Financing Sources (uses);
Transfers Out- (2,294,533) (2,294,533) -
Net change in fund balances(978,908) (2,294,533) (2,294,533) -
Fund balances - Beginning (restated)2,295,858 2,295,858 2,295,858 -
Fund balances - Ending 1,316,950$ 1,325$ 1,325$ -$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(2,294,533)$
To adjust expenditures for accruals 78,883
Net change in fund balance, GAAP basis(2,215,650)$
Budgeted Amounts
209
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Football Hall of Fame Capital
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 2,500$ 4,700$ 3,112$ (1,588)$
Expenditures:
Culture and Recreation:
Supplies 15,000 15,000 - 15,000
Other services and charges 173,824 173,824 59,456 114,368
Total expenditures 188,824 188,824 59,456 129,368
Other financing sources - Transfers in- - - -
Net change in fund balances(186,324) (184,124) (56,344) 127,780
Fund balances - Beginning 559,543 559,543 559,543 -
Fund balances - Ending 373,219$ 375,419$ 503,199$ 127,780$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(56,344)$
To adjust revenues for accruals 66,649
To adjust expenditures for accruals(10,305)
Net change in fund balance, GAAP basis-$
Budgeted Amounts
210
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Major Moves
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 811,187$ 813,687$ 805,256$ (8,431)$
Expenditures:
Highways and streets - Capital outlay 1,330,000 3,096,061 3,084,962 11,099
Net change in fund balances(518,813) (2,282,374) (2,279,706) 2,668
Fund balances - Beginning 3,643,765 3,643,765 3,643,765 -
Fund balances - Ending 3,124,952$ 1,361,391$ 1,364,059$ 2,668$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(2,279,706)$
To adjust revenues for accruals(555,814)
To adjust expenditures for accruals 33,162
To adjust expenditures for encumbrances 795,033
Net change in fund balance, GAAP basis(2,007,325)$
Budgeted Amounts
211
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - TIF - River East Development
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes 820,000$ 2,421,310$ 2,421,308$ (2)$
Other 7,000 56,357 54,153 (2,204)
Total revenues 827,000 2,477,667 2,475,461 (2,206)
Expenditures:
Economic Development:
Other services and charges- 779,084 764,276 14,808
Capital outlay 1,252,000 6,460,440 4,672,656 1,787,784
Total expenditures 1,252,000 7,239,524 5,436,932 1,802,592
Other Financing Sources (uses);
Transfers In- 1,430,966 1,430,965 (1)
Net change in fund balances(425,000) (3,330,891) (1,530,506) 1,800,385
Fund balances - Beginning 4,559,110 4,559,110 4,559,110 -
Fund balances - Ending 4,134,110$ 1,228,219$ 3,028,604$ 1,800,385$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(1,530,506)$
To adjust revenues for accruals 185,655
To adjust expenditures for accruals 27,398
To adjust expenditures for encumbrances 4,535,158
Net change in fund balance, GAAP basis 3,217,705$
Budgeted Amounts
212
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - TIF - Douglas Road
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes 320,000$ 320,000$ 270,758$ (49,242)$
Other 750 1,010 664 (346)
Total revenues 320,750 321,010 271,422 (49,588)
Expenditures:
Economic Development:
Other services and charges 341,189 345,389 345,387 2
Total expenditures 341,189 345,389 345,387 2
Net change in fund balances(20,439) (24,379) (73,965) (49,586)
Fund balances - Beginning 221,558 221,558 221,558 -
Fund balances - Ending 201,119$ 197,179$ 147,593$ (49,586)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(73,965)$
To adjust revenues for accruals 40,739
To adjust expenditures for accruals 251,157
To adjust expenditures for encumbrances 4,200
Net change in fund balance, GAAP basis 222,131$
Budgeted Amounts
213
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - TIF - River East Residential
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues:
Taxes 2,599,000$ 3,129,690$ 3,129,681$ (9)$
Other 5,000 216,000 210,462 (5,538)
Total revenues 2,604,000 3,345,690 3,340,143 (5,547)
Expenditures:
Economic Development:
Other services and charges 3,425,632 3,425,632 3,425,628 4
Total expenditures 3,425,632 3,425,632 3,425,628 4
Net change in fund balances(821,632) (79,942) (85,485) (5,543)
Fund balances - Beginning 1,706,488 1,706,488 1,706,488 -
Fund balances - Ending 884,856$ 1,626,546$ 1,621,003$ (5,543)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(85,485)$
To adjust revenues for accruals(34)
To adjust expenditures for accruals 304,625
Net change in fund balance, GAAP basis 219,106$
Budgeted Amounts
214
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Certified Technology Park
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 4,404$ 82,239$ 73,581$ (8,658)$
Expenditures -
Economic Development - Capital outlay 1,549,000 5,000,000 2,963,748 2,036,252
Net change in fund balances(1,544,596) (4,917,761) (2,890,167) 2,027,594
Fund balances - Beginning 5,023,459 5,023,459 5,023,459 -
Fund balances - Ending 3,478,863$ 105,698$ 2,133,292$ 2,027,594$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis(2,890,167)$
To adjust revenues for accruals(61)
To adjust expenditures for encumbrances 142,913
Net change in fund balance, GAAP basis(2,747,315)$
Budgeted Amounts
215
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Palais Royale Historical Preservation
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 16,150$ 16,150$ 13,252$ (2,898)$
Expenditures -Culture and Recreation -
Other services and charges 16,150 16,150 - 16,150
Total expenditures 16,150 16,150 - 16,150
Net change in fund balances- - 13,252 13,252
Fund balances - Beginning 63,198 63,198 63,198 -
Fund balances - Ending 63,198$ 63,198$ 76,450$ 13,252$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 13,252$
To adjust revenues for accruals 2
Net change in fund balance, GAAP basis 13,254$
Budgeted Amounts
216
City of South Bend, Indiana
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Nonmajor Governmental Funds
Capital Projects Funds - Airport Urban Enterprise Zone
Year Ended December 31, 2015
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts(Negative)
Revenues - Other 1,500$ 2,800$ 2,180$ (620)$
Net change in fund balances 1,500 2,800 2,180 (620)
Fund balances - Beginning 377,659 377,659 377,659 -
Fund balances - Ending 379,159$ 380,459$ 379,839$ (620)$
Budget/GAAP Reconciliation
Net change in fund balance, budget basis 2,180$
To adjust revenues for accruals 9
Net change in fund balance, GAAP basis 2,189$
Budgeted Amounts
City of South Bend, Indiana
Other Supplementary Information
Nonmajor Enterprise Funds
Fund Descriptions
Consolidated Building - The consolidated building fund accounts for the operation of the
consolidated St. Joseph County/South Bend Building Department.
Parking Garage - The parking garage fund accounts for the operation and maintenance of the
City's parking garages.
Solid Waste - The solid waste fund accounts for the provision of solid waste services.
Blackthorn Golf Course - The Blackthorn Golf Course fund accounts for the operation and
maintenance of the City's Blackthorn Golf Course.
Emergency Medical Services - To account for purchases of necessary equipment for the Fire
Department and Emergency Medical Services Department. Financing is provided by ambulance
fees.
217
City of South Bend, Indiana
Other Supplementary Information
Combining Statement of Net Position
Nonmajor Enterprise Funds
December 31, 2015
Consolidated
Building Parking Garage Solid Waste
Blackthorn
Golf Course
Emergency
Medical
Services Total
Assets
Current assets:
Cash and cash equivalents$423,618$129,756$64,784$-$969,472$1,587,630
Investments 1,507,191 509,886 254,570-3,809,602 6,081,249
Receivables:
Accounts 60,694 385 409,743-4,255,030 4,725,852
Interest 3,018 1,025 511-7,615 12,169
Due from other funds 1,170----1,170
Total current assets 1,995,691 641,052 729,608-9,041,719 12,408,070
Noncurrent assets:
Restricted assets--695,616-692,283 1,387,899
Capital assets:
Assets not subject to
depreciation 27,400 1,132,020---1,159,420
Assets subject to depreciation 1,789,385 3,525,989 2,395,002-5,225,825 12,936,201
Total noncurrent
assets 1,816,785 4,658,009 3,090,618-5,918,108 15,483,520
Total assets 3,812,476 5,299,061 3,820,226-14,959,827 27,891,590
Liabilities
Current liabilities:
Accounts payable 51,649 105,712 114,672-36,625 308,658
Due to other governmental units----160,098 160,098
Due to other funds 10,085---658 10,743
Performance deposits payable 37,437----37,437
Accrued liabilities and other:
Accrued payroll payable 28,346-22,339-52,756 103,441
Accrued interest payable 580-11,225-79,275 91,080
Compensated absences 110,908-38,364--149,272
Mortgage bonds payable----220,000 220,000
Capital leases 31,351-714,676-153,775 899,802
Total current
liabilities 270,356 105,712 901,276-703,187 1,980,531
Noncurrent liabilities:
Mortgage bonds payable----5,219,669 5,219,669
Capital leases 87,498-1,333,888-508,270 1,929,656
Total noncurrent
liabilities 87,498-1,333,888-5,727,939 7,149,325
Total liabilities 357,854 105,712 2,235,164-6,431,126 9,129,856
Deferred Inflows of Resources-
Unamortized gain on sale/leaseback-5,663---5,663
Net Position
Net investment in capital assets 1,697,936 4,658,009 1,042,054-(295,967)7,102,032
Restricted - Cash with fiscal agent----112,361 112,361
Unrestricted 1,756,686 529,677 543,008-8,712,307 11,541,678
Total net position$3,454,622$5,187,686$1,585,062$-$8,528,701$18,756,071
218
City of South Bend, Indiana
Other Supplementary Information
Combining Statement of Revenue, Expenses, and Changes in
Net Position
Nonmajor Enterprise Funds
Year Ended December 31, 2015
Consolidated
Building Parking Garage Solid Waste
Blackthorn
Golf Course
Emergency
Medical
Services Total
Operating Revenue
Licenses and permits$1,839,150$-$-$-$-$1,839,150
Parking fees-968,397---968,397
Solid waste fees--4,859,903--4,859,903
Charges for sales and services----6,470,435 6,470,435
Golf course fees---109,949-109,949
Other 116,121 20 504,968--621,109
Total operating
revenue 1,955,271 968,417 5,364,871 109,949 6,470,435 14,868,943
Operating Expenses
Other operation and maintenance 3,306,901-4,375,524 165,977 5,730,078 13,578,480
Billing and administrative costs 55,944 1,361,426 372,850--1,790,220
Depreciation 153,457 216,068 466,163-451,579 1,287,267
Total operating
expenses 3,516,302 1,577,494 5,214,537 165,977 6,181,657 16,655,967
Operating (Loss) Gain(1,561,031)(609,077)150,334(56,028)288,778(1,787,024)
Nonoperating Revenue (Expenses)
Investment income 6,997 6,711 2,299-23,222 39,229
Interest expense(1,509)-(29,435)-(363,369)(394,313)
Gain (loss) on sale of assets(34,536)(1,341)--(51,180)(87,057)
Other nonoperating revenue
(expenses) - Charges 82,679(560,347)---(477,668)
Total nonoperating
revenue (expense)53,631(554,977)(27,136)-(391,327)(919,809)
Loss - Before contributions(1,507,400)(1,164,054)123,198(56,028)(102,549)(2,706,833)
Special Item - Disposal of operations ---(1,180,964)-(1,180,964)
Transfers In 2,663,144----2,663,144
Transfers Out---(19,744)-(19,744)
Change in Net Position 1,155,744(1,164,054)123,198(1,256,736)(102,549)(1,244,397)
Net Position - Beginning of year 2,298,878 6,351,740 1,461,864 1,256,736 8,631,250 20,000,468
Net Position - End of year$3,454,622$5,187,686$1,585,062$-$8,528,701$18,756,071
219
City of South Bend, Indiana
Other Supplementary Information
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
Year Ended December 31, 2015
Consolidated
Building Parking Garage Solid Waste
Blackthorn
Golf Course
Emergency
Medical
Services Total
Cash Flows from Operating
Activities
Receipts from customers$1,932,454$968,440$5,036,406$116,261$8,143,756$16,197,317
Receipts from interfund services
and reimbursements--344,740--344,740
Payments to suppliers(895,803)(1,379,070)(2,667,610)(58,730)(946,337)(5,947,550)
Payments to employees(2,029,391)-(1,656,167)(101,323)(4,740,168)(8,527,049)
Internal activity - Payments to
other funds(219,767)(29,091)(522,932)--(771,790)
Net cash (used in)
provided by
operating activities(1,212,507)(439,721)534,437(43,792)2,457,251 1,295,668
Cash Flows from Noncapital
Financing Activities
Transfers from other funds 2,663,144----2,663,144
Transfers to other funds---(19,744)-(19,744)
Repayments of loans from other
funds---(1,472,130)-(1,472,130)
Other nonoperating revenue 82,679----82,679
Net cash provided by
(used in)
noncapital
financing activities 2,745,823--(1,491,874)-1,253,949
Cash Flows from Capital and Related
Financing Activities
Proceeds from capital debt issued
for future capital purchase--695,616-692,283 1,387,899
Proceeds from sales of capital
assets---1,709,703-1,709,703
Purchase of capital assets(318,754)-(82,052)-(151,703)(552,509)
Principal paid on capital debt(21,399)-(550,459)(257,538)(255,345)(1,084,741)
Interest paid on capital debt(1,133)-(25,859)-(196,201)(223,193)
Net cash (used in)
provided by capital
and related
financing activities(341,286)-37,246 1,452,165 89,034 1,237,159
Cash Flows from Investing Activities
Interest received on investments 4,798 6,886 2,262-18,855 32,801
Proceeds from sale and maturities of
investment securities(944,452)313,867 84,174-(1,577,381)(2,123,792)
Net cash (used in)
provided by
investing activities(939,654)320,753 86,436-(1,558,526)(2,090,991)
220
City of South Bend, Indiana
Other Supplementary Information
Combining Statement of Cash Flows
Nonmajor Enterprise Funds (Continued)
Year Ended December 31, 2015
Consolidated
Building Parking Garage Solid Waste
Blackthorn
Golf Course
Emergency
Medical
Services Total
Net Increase (Decrease) in Cash and
Cash Equivalents$252,376$(118,968)$658,119$(83,501)$987,759$1,695,785
Cash and Cash Equivalents-
Beginning of year 171,242 248,724 102,281 83,501 673,996 1,279,744
Cash and Cash Equivalents- End of
year$423,618$129,756$760,400$-$1,661,755$2,975,529
Balance Sheet Classification of Cash
and Cash Equivalents
Cash and investments$1,930,809$639,642$1,014,970$-$5,471,357$9,056,778
Less amounts classified as
investments(1,507,191)(509,886)(254,570)-(3,809,602)(6,081,249)
Total cash and
cash
equivalents$423,618$129,756$760,400$-$1,661,755$2,975,529
Reconciliation of Operating Loss to
Net Cash from Operating
Activities
Operating income (loss)$(1,561,031)$(609,077)$150,334$(56,028)$288,778$(1,787,024)
Adjustments to reconcile
operating income (loss) to net
cash from operating activities:
Depreciation and
amortization 153,457 216,068 466,163-451,579 1,287,267
Changes in assets and
liabilities:
Receivables(53,874)23 16,275 6,312 1,673,322 1,642,058
Inventory---6,344-6,344
Prepaid expenses
and other assets---3,000-3,000
Accounts payable 36,568(46,735)(43,027)(3,420)16,858(39,756)
Due to other funds 8,679----8,679
Accrued liabilities
and other 203,694-(55,308)-26,714 175,100
Net cash (used in)
provided by
operating
activities$(1,212,507)$(439,721)$534,437$(43,792)$2,457,251$1,295,668
Noncash Investing, Capital, and
Financing Activities
Capital assets acquired through
lease$83,099$-$1,153$-$-$84,252
Capital assets disposed (at cost)97,133 20,117-6,030,409 170,764 6,318,423
Net capital assets transferred
from General Fund----5,576,930 5,576,930
Net debt transferred for related
assets from General Fund----6,361,328 6,361,328
221
City of South Bend, Indiana
Other Supplementary Information
Internal Service Funds
Fund Descriptions
Liability Insurance Premium Reserve - The Liability Insurance Premium Reserve fund
accounts for expenses related to maintaining the City's self-funded liability insurance including
administrative costs, claims, and premiums. Funding is provided by assessments to certain other
City funds.
Self-Funded Employee Benefits - To account for employer and employees' contributions for a
medical insurance plan.
Central 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.
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.
222
City of South Bend, Indiana
Other Supplementary Information
Combining Statement of Net Position
Internal Service Funds
December 31, 2015
Liability
Insurance
Premium
Reserve
Self-Funded
Employee
Benefits
Central
Services
Police Take
Home Vehicle
Unemployment
Compensation
Insurance Total
Assets
Current assets:
Cash and cash equivalents$916,771$905,779$308,719$129,930$54,543$2,315,742
Investments 3,602,511 3,456,681 1,208,809 510,567 214,330 8,992,898
Receivables:
Accounts-3,060 41,303--44,363
Interest 7,199 6,950 2,392 1,019 428 17,988
Due from other funds--4,172--4,172
Inventory--851,487--851,487
Prepaid expenses 203,487-6,166--209,653
Total current
assets 4,729,968 4,372,470 2,423,048 641,516 269,301 12,436,303
Noncurrent assets - Capital assets
- Assets subject to depreciation 15,531-1,304,694--1,320,225
Total assets 4,745,499 4,372,470 3,727,742 641,516 269,301 13,756,528
Liabilities
Current liabilities:
Accounts payable 20,059-489,035 53 8,101 517,248
Due to other funds-4,413 460--4,873
Accrued liabilities and other:
Accrued payroll payable 2,426-30,833--33,259
Accrued interest payable--124--124
Compensated absences 9,989-113,246--123,235
Claims payable 1,476,268 1,097,776---2,574,044
Capital leases--5,275--5,275
Total current
liabilities 1,508,742 1,102,189 638,973 53 8,101 3,258,058
Noncurrent liabilities - Capital
leases--20,430--20,430
Total liabilities 1,508,742 1,102,189 659,403 53 8,101 3,278,488
Deferred Inflows of Resources------
Net Position
Net investment in capital assets 15,531-1,278,989--1,294,520
Unrestricted 3,221,226 3,270,281 1,789,350 641,463 261,200 9,183,520
Total net position$3,236,757$3,270,281$3,068,339$641,463$261,200$10,478,040
223
City of South Bend, Indiana
Other Supplementary Information
Combining Statement of Revenue, Expenses, and Changes in
Net Position
Internal Service Funds
Year Ended December 31, 2015
Liability
Insurance
Premium
Reserve
Self-Funded
Employee
Benefits
Central
Services
Police Take
Home Vehicle
Unemployment
Compensation
Insurance Total
Operating Revenue
Employee/employer contributions$1,222,767$14,323,273$-$123,320$101,681$15,771,041
Charges for sales and services--7,364,529--7,364,529
Other 95,249-21,056--116,305
Total operating
revenue 1,318,016 14,323,273 7,385,585 123,320 101,681 23,251,875
Operating Expenses
Other operation and maintenance--6,888,584--6,888,584
Administration 349,730 747,777 242,328-6,796 1,346,631
Insurance claims and premiums 1,950,000 13,321,522-1,140 62,110 15,334,772
Depreciation 9,502-119,366--128,868
Total operating
expenses 2,309,232 14,069,299 7,250,278 1,140 68,906 23,698,855
Operating (Loss) Income(991,216)253,974 135,307 122,180 32,775(446,980)
Nonoperating Revenue
(Expenses)
Investment income 29,207 28,622 6,950 3,248 1,405 69,432
Loss on sale of assets(337)-(19,496)--(19,833)
Debt service charge--(345)--(345)
Total nonoperating
revenue (expenses)28,870 28,622(12,891)3,248 1,405 49,254
Change in Net Position(962,346)282,596 122,416 125,428 34,180(397,726)
Net Position - Beginning of year
(restated) 4,199,103 2,987,685 2,945,923 516,035 227,020 10,875,766
Net Position - End of year$3,236,757$3,270,281$3,068,339$641,463$261,200$10,478,040
224
City of South Bend, Indiana
Other Supplementary Information
Combining Statement of Cash Flows
Internal Service Funds
Year Ended December 31, 2015
Liability
Insurance
Premium
Reserve
Self-Funded
Employee
Benefits Central Services
Police Take
Home Vehicle
Unemployment
Compensation
Insurance Total
Cash Flow from Operating
Activities
Receipts from customers and
users$95,249$3,079,384$2,828,959$123,320$-$6,126,912
Receipts from interfund services
and reimbursements 1,222,767 11,258,483 4,539,132-101,681 17,122,063
Payments to suppliers(2,277,934)(13,625,009)(4,371,702)(1,087)(68,170)(20,343,902)
Payments to employees(219,546)(10)(2,642,647)--(2,862,203)
Internal activity - Payments to
other funds(3,591)(429,249)(217,081)-(6,796)(656,717)
Net cash (used in)
provided by
operating
activities(1,183,055)283,599 136,661 122,233 26,715(613,847)
Cash Flows from Capital and
Related Financing Activities
Purchase of capital assets--(157,335)--(157,335)
Principal paid on capital debt--(4,682)--(4,682)
Interest paid on capital debt--(284)--(284)
Net cash used in
capital and
related financing
activities--(162,301)--(162,301)
Cash Flows from Investment
Activities
Interest received on
investments 28,356 26,198 6,256 2,805 1,246 64,861
Proceeds from sale and
maturities of investment
securities 755,587(363,954)(28,330)(114,651)(29,289)219,363
Net cash provided
by (used in)
investing
activities 783,943(337,756)(22,074)(111,846)(28,043)284,224
Net (Decrease) Increase in Cash
and Cash Equivalents(399,112)(54,157)(47,714)10,387(1,328)(491,924)
Cash and Cash Equivalents-
Beginning of year 1,315,883 959,936 356,433 119,543 55,871 2,807,666
Cash and Cash Equivalents-
End of year$916,771$905,779$308,719$129,930$54,543$2,315,742
225
City of South Bend, Indiana
Other Supplementary Information
Combining Statement of Cash Flows
Internal Service Funds (Continued)
Year Ended December 31, 2015
Liability
Insurance
Premium
Reserve
Self-Funded
Employee
Benefits Central Services
Police Take
Home Vehicle
Unemployment
Compensation
Insurance Total
Balance Sheet Classification of
Cash and Cash Equivalents
Cash and investments$4,519,282$4,362,460$1,517,528$640,497$268,873$11,308,640
Less amounts classified as
investments(3,602,511)(3,456,681)(1,208,809)(510,567)(214,330)(8,992,898)
Total cash and
cash
equivalents$916,771$905,779$308,719$129,930$54,543$2,315,742
Reconciliation of Operating (Loss)
Income to Net Cash from
Operating Activities
Operating (loss) income$(991,216)$253,974$135,307$122,180$32,775$(446,980)
Adjustments to reconcile
operating (loss) income to
net cash from operating
activities:
Depreciation and
amortization 9,502-119,366--128,868
Changes in assets and
liabilities:
Receivables-14,594(22,292)--(7,698)
Due from other
funds--4,798--4,798
Inventory--(1,269)--(1,269)
Prepaid expenses
and other
assets 1,573-(6,166)--(4,593)
Accounts payable 3,045 12,517(9,183)53(6,060)372
Due to other
funds-2,514(400)--2,114
Estimate of unfiled
claims(195,169)----(195,169)
Accrued liabilities
and other(10,790)-(83,500)--(94,290)
Net cash (used
in) provided
by operating
activities$(1,183,055)$283,599$136,661$122,233$26,715$(613,847)
Noncash Investing, Capital, and
Financing Activities
Capital assets acquired through
lease$-$-$24,114$-$-$24,114
Capital assets disposed (at cost)841-116,227--117,068
226
City of South Bend, Indiana
Other Supplementary Information
Fiduciary Funds
Fund Descriptions
Pension Trust Funds
1925 Police Pension - To account for the provision of retirement and disability benefits to
police officers hired prior to May 1, 1977. Financing is provided by mandatory contributions by
active members, and state pension relief distributions.
1937 Firefighters' Pension - To account for the provision of retirement and disability benefits
to firefighters hired prior to May 1, 1977. Financing is provided by mandatory contributions by
active members and state pension relief distributions.
Agency Funds
Payroll - To account for the payroll of City employees and pension benefits of the Police and
Firefighters' Pension Funds. Gross payroll and pension benefits are treated as expenditures in
other City funds and transferred into this fund, which serves as a clearing account.
Morris Palais Royale Box Office - To account for Morris Entertainment Center and Palais
Royale event advance deposits and related expenses.
Police Distributions Payable - To account for monies collected by the South Bend Police
Department from asset seizures and other sources. Proceeds may be used to pay other
governmental agencies for monies collected on their behalf or for related expenses.
227
City of South Bend
Other Supplementary Information
Statement of Assets and Liabilities
Fiduciary Funds
December 31, 2015
Pension Trust Funds Agency Funds
1925 Police
Pension
1937
Firefighters'
Pension
Total Pension
Trust Funds Payroll
Morris Palais
Royale Box
Office
Police
Distribution
Payable
Total Agency
Funds
Assets
Cash and cash equivalents$234,434$95,665$330,099$412,690$1,504,458$835,108$2,752,256
Investments 921,224 375,921 1,297,145----
Receivables - Interest 1,873 779 2,652----
Total assets$1,157,531$472,365$1,629,896$412,690$1,504,458$835,108$2,752,256
Liabilities
Accounts payable$98$82$180$-$-$-$-
Accrued liabilities and other-248 248 412,690--412,690
Customer deposits payable----1,504,458-1,504,458
Police distribution payable-----835,108 835,108
Total liabilities 98 330 428$412,690$1,504,458$835,108$2,752,256
Net Position for Pension
Benefits and Other
Purposes$1,157,433$472,035$1,629,468
228
City of South Bend, Indiana
Other Supplementary Information
Combining Statement of Changes in Fiduciary Net Position
Pension Trust Funds
Year Ended December 31, 2015
1925 Police
Pension
1937
Firefighters'
Pension Total
Additions
Investment income - Interest and dividends$4,376$2,675$7,051
Contributions:
On behalf 6,378,359 5,039,025 11,417,384
Other 62 2,667 2,729
Net contributions 6,378,421 5,041,692 11,420,113
Total additions 6,382,797 5,044,367 11,427,164
Deductions
Benefit payments 6,323,646 5,197,158 11,520,804
Administrative expenses 12,461 14,255 26,716
Total deductions 6,336,107 5,211,413 11,547,520
Net Increase (Decrease) in Net Position Held in Trust
46,690(167,046)(120,356)
Net Position- Beginning of year 1,110,743 639,081 1,749,824
Net Position- End of year$1,157,433$472,035$1,629,468
229
City of South Bend, Indiana
Other Supplementary Information
Statement of Changes in Assets and Liabilities
Agency Funds
Year Ended December 31, 2015
Balance at
January 1, 2015 Additions Reductions
Balance at
December 31,
2015
Payroll
Assets - Cash and investments$301,548$104,323,272$(104,212,130)$412,690
Liabilities - Accrued liabilities and other$301,548$104,323,272$(104,212,130)$412,690
Balance at
January 1, 2015 Additions Reductions
Balance at
December 31,
2015
Morris Palais Royale Box Office
Assets - Cash and investments$1,071,032$4,349,030$(3,915,604)$1,504,458
Liabilities - Customer deposits payable$1,071,032$4,349,030$(3,915,604)$1,504,458
Balance at
January 1, 2015 Additions Reductions
Balance at
December 31,
2015
Police Distribution Payable
Assets - Cash and investments$802,859$97,510$(65,261)$835,108
Liabilities - Police distribution payable$802,859$97,510$(65,261)$835,108
230
Statistical Section
This part of the &LW\RI6RXWK%HQG
V Comprehensive Annual Financial Report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplemental information says about the &LW\
V
overall financial health.
The statistical section is organized into the following main categories:
x Financial trends - These schedules contain trend information to help the reader understand
how the &LW\
V financial performance and well-being have changed over time.
x Revenue capacity - These schedules contain information to help the reader assess the
&LW\
V most significant local revenue source, property taxesDQGRWKHUPDMRUUHYHQXHVRXUFHV.
x Debt capacity - These schedules contain information to help the reader assess the
affordability of the &LW\’s current levels of outstanding debt and the &LW\’s ability toissue
additional debt in the future.
x Demographic and economic information - These schedules offer demographic economic
indicators to help the reader understand the environment within which the &LW\'s
financial activities take place.
x Operating information - These schedules contain service and infrastructure data to help the
reader understand how the information in the &LW\'s financial report relates to the
services the &LW\ provides and the activities it performs.
Financial Trends
These schedules contain trend information to help the reader understand how the &LW\'s
financial performance and well-being have changed over time.
City of South Bend
231
Statistical Section
Net Position by Component
Last Ten Fiscal Years
2006 (1)2007 2008 2009 2010 2011 2012 2013 2014 (2)2015 (2)
Governmental activities
Invested in capital assets, net of related debt 208,509,577$ 200,634,954$ 178,178,047$ 178,483,535$ 186,771,216$ 196,265,413$ 202,779,954$ 192,190,446$ 168,275,521$ 157,604,691$
Restricted 5,225,642 5,370,627 11,077,687 12,825,227 8,840,610 9,354,772 8,050,418 7,990,172 8,723,878 9,137,552
Unrestricted 24,900,036 47,150,229 56,786,214 82,877,695 96,539,932 82,271,482 71,992,457 86,413,227 (18,581,970) (25,882,348)
Total governmental activities net position 238,635,255$ 253,155,810$ 246,041,948$ 274,186,457$ 292,151,758$ 287,891,667$ 282,822,829$ 286,593,845$ 158,417,429$ 140,859,895$
Business-type activities
Invested in capital assets, net of related debt 97,670,533$ 112,194,451$ 124,705,327$ 119,607,643$ 122,108,095$ 103,463,004$ 113,193,929$ 114,506,252$ 136,685,811$ 141,998,384$
Restricted 22,535,858 8,273,257 8,630,542 14,075,339 13,320,967 12,937,988 29,259,933 48,267,664 26,587,012 28,397,290
Unrestricted 7,168,852 15,793,782 9,209,917 12,597,138 19,262,192 45,733,630 26,957,505 7,906,258 22,426,017 24,415,739
Total business-type activities net position 127,375,243$ 136,261,490$ 142,545,786$ 146,280,120$ 154,691,254$ 162,134,622$ 169,411,367$ 170,680,174$ 185,698,840$ 194,811,413$
Primary government
Invested in capital assets, net of related debt 306,180,110$ 312,829,405$ 302,883,374$ 298,091,178$ 308,879,311$ 299,728,417$ 315,973,883$ 306,696,698$ 304,961,332$ 299,603,075$
Restricted 27,761,500 13,643,884 19,708,229 26,900,566 22,161,577 22,292,760 37,310,351 56,257,836 35,310,890 37,534,842
Unrestricted 32,068,888 62,944,011 65,996,131 95,474,833 115,802,124 128,005,112 98,949,962 94,319,485 3,844,047 (1,466,609)
Total primary government net position 366,010,498$ 389,417,300$ 388,587,734$ 420,466,577$ 446,843,012$ 450,026,289$ 452,234,196$ 457,274,019$ 344,116,269$ 335,671,308$
Sour ce - City o f S outh Be nd Comprehensive Annual Fi nancial Reports (inclu des pr ior pe riod adjustments)
(1) Th e C i ty imp l emented th e retro a ctive r ep orting o f inf ra s tructur e assets requir ed b y GASB S ta tement N o. 34 during 2 0 06.
(2) Th e City imp lemented th e reporting of net pension liability through GASB 68 duri ng 2015. 2014 w as restated.
Net positio n is defi ned a s the dif ference betwee n t otal a ss et s and defer r ed o utfl ows of res our ces l ess total l i ab ilities a nd d eferred i nflows of resourc es and can general l y be th ough t of a s the net wo r th o f t he City of So uth Bend.
City of South Bend
232
Statistical Section
Changes in Net Position
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Expenses
Governmental activities:
General Government(17,194,920)$ (13,680,203)$ (10,253,389)$ (7,903,378)$ (8,261,861)$ (16,783,351)$ (13,788,310)$ (13,200,898)$ (19,013,453)$ (21,572,776)$
Public Safety(56,600,175)(52,751,974)(49,728,256)(50,800,573)(62,106,991)(73,530,442)(69,977,237)(76,023,819)(68,783,155)(56,528,448)
Highways and Streets(21,813,189)(17,904,129)(22,292,012)(15,042,344)(9,526,537)(7,574,003)(14,639,158)(20,915,815)(13,031,500)(20,045,444)
Health and Welfare(114,131)(75,000)(75,000)- - - - - - -
Community and Economic Development(18,813,636)(18,206,948)(27,299,233)(4,335,618)(30,744,012)(34,648,975)(20,217,987)(10,069,690)(19,780,791)(40,727,612)
Culture and Recreation(14,994,300)(16,454,667)(18,311,807)(17,981,839)(16,036,194)(15,566,794)(21,724,589)(26,846,471)(16,802,311)(20,300,768)
Bond Issuance Costs- - - - - - - - - (372,432)
Interest on Long-Term Debt(5,841,032)(5,859,102)(7,080,166)(8,049,610)(7,339,548)(6,798,531)(6,134,406)(5,961,124)(2,497,849)(4,762,714)
Total governmental activities expenses(135,371,383)$ (124,932,023)$ (135,039,863)$ (104,113,362)$ (134,015,143)$ (154,902,096)$ (146,481,687)$ (153,017,817)$ (139,909,059)$ (164,310,194)$
Business-type activities:
Water(11,916,504)$ (13,061,750)$ (13,492,744)$ (12,584,679)$ (12,525,246)$ (11,972,840)$ (12,228,014)$ (15,221,865)$ (13,020,610)$ (13,609,378)$
Wastewater(16,972,401)(18,295,813)(23,020,991)(27,047,143)(21,403,663)(22,260,005)(23,809,975)(26,390,790)(25,521,753)(25,737,867)
Century Center(3,355,531)(3,490,103)(3,562,285)(3,488,266)(2,989,586)(3,100,484)(2,929,268)(4,330,656)(4,747,838)(4,854,747)
Conso lidated Building Department (1)(1,102,164)(1,090,327)(1,108,940)(1,113,867)(930,120)(871,299)(909,376)(1,131,815)(3,242,320)(3,552,347)
Parking Garage(1,261,942)(1,444,146)(1,466,200)(1,471,960)(1,438,288)(1,467,646)(1,721,655)(1,285,056)(1,660,596)(2,139,182)
Solid Waste(4,187,706)(4,072,910)(4,299,846)(4,036,001)(4,204,056)(4,962,157)(5,118,806)(5,091,588)(5,811,526)(5,243,972)
Blackthorn Golf Course(1,811,757)(1,811,801)(1,829,122)(1,881,982)(1,995,556)(1,689,042)(1,841,998)(1,497,513)(1,874,962)(165,977)
Emergency Medical Services (2)- - - - - - - - - (6,596,206)
Total business-type activities net expenses(40,608,005)(43,266,850)(48,780,128)(51,623,898)(45,486,515)(46,323,473)(48,559,092)(54,949,283)(55,879,605)(61,899,676)
Total primary gove rnme nt net position(175,979,388)$ (168,198,873)$ (183,819,991)$ (155,737,260)$ (179,501,658)$ (201,225,569)$ (195,040,779)$ (207,967,100)$ (195,788,664)$ (226,209,870)$
Governmental activities:
Charges for services:
General Government 6,883,104$ 6,553,121$ 6,647,223$ 6,855,830$ 6,964,269$ 1,165,018$ 2,100,103$ 1,939,865$ 1,451,438$ 1,188,531$
Public Safety 5,132,285 4,228,405 5,035,433 5,051,827 4,916,958 4,096,566 5,079,182 5,210,272 4,992,228 529,386
Highways and Streets 44,250- - 5,152 28,110 227,000 291,840 451,363 728,343 676,429
Community and Economic Development 562,807 604,873 636,722 332,454 283,420 683,503 271,366 444,839 485,938 408,654
Culture and Recreation 4,940,629 5,057,076 5,300,818 5,063,896 4,995,049 4,681,536 5,224,543 5,112,019 3,815,920 3,726,359
Operating Grants and Contributions 12,452,463 15,628,287 11,356,682 12,199,444 29,467,573 32,091,246 24,937,596 21,466,622 3,203,805 2,813,481
Capital Grants and Contributions 13,793,363 960,502 1,176,783 780,137 1,472,233 2,328,468 2,468,120 1,867,213- -
Total governmental activities program revenue 43,808,901$ 33,032,264$ 30,153,661$ 30,288,740$ 48,127,612$ 45,273,337$ 40,372,750$ 36,492,193$ 14,677,672$ 9,342,840$
Business-type activities:
Charges for services:
Water 14,757,819$ 15,336,891$ 14,926,833$ 14,151,289$ 14,194,442$ 14,080,592$ 15,409,171$ 15,102,462$ 14,373,176$ 14,204,285$
Wastewater 18,725,903 21,349,401 23,567,973 25,012,163 26,001,156 29,407,263 30,657,698 32,474,743 34,009,117 36,638,804
Century Center 3,113,264 3,371,553 3,370,802 2,873,966 2,869,010 2,894,913 2,680,076 3,463,813 2,227,171 4,202,564
Consolidated Building Department 1,039,405 1,078,258 1,169,788 977,050 875,481 899,397 1,000,381 967,667 1,387,571 2,037,950
Parking Garage 799,350 861,307 1,003,889 1,070,519 1,047,784 1,071,078 921,044 968,868 1,017,218 968,417
Solid Waste 4,177,897 4,187,821 4,343,120 4,759,530 4,745,547 4,830,342 5,081,991 5,399,044 5,295,712 5,364,871
Blackthorn Golf Course 1,565,649 1,512,150 1,493,519 1,557,951 1,479,415 1,392,999 1,669,372 1,530,402 1,548,341 109,949
Emergency Medical Services- - - - - - - - - 6,470,446
Operating Grants and Contributions- - - - - - - - - -
Capital Grants and Contributions 1,413,861 1,253,332 1,209,380 4,038,412 1,889,165 4,291,731 2,010,253 697,916 95,834 4,683,424
Total business-type activities program revenues 45,593,148 48,950,713 51,085,304 54,440,880 53,102,000 58,868,315 59,429,986 60,604,915 59,954,140 74,680,710
Total primary government program revenues 89,402,049$ 81,982,977$ 81,238,965$ 84,729,620$ 101,229,612$ 104,141,652$ 99,802,736$ 97,097,108$ 74,631,812$ 84,023,550$
City of South Bend
233
Statistical Section
Changes in Net Position (Continued)
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net (Expense)/Revenue
Governmental activities(81,123,122)$ (102,007,599)$ (73,959,701)$ (103,726,403)$ (106,774,484)$ 45,273,337$ (106,108,937)$ (116,525,624)$ (125,231,387)$ (154,967,354)$
Business-type activities 2,326,298 170,585(538,594)8,954,365 6,778,527 58,868,315 10,870,894 5,655,632 4,074,535 12,781,034
Total primary government net expense(78,796,824)$ (101,837,014)$ (74,498,295)$ (94,772,038)$ (99,995,957)$ 104,141,652$ (95,238,043)$ (110,869,992)$ (121,156,852)$ (142,186,320)$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Pro perty taxes 68,256,602$ 77,120,683$ 76,109,499$ 73,882,128$ 77,315,641$ 76,445,349$ 71,775,415$ 72,018,650$ 69,221,468$ 72,032,049$
County Option Income Tax 6,410,405 8,072,623 5,813,846 10,270,179 11,502,052 13,219,723 13,748,824 13,739,325 15,025,840 14,847,338
Economic Development Income Tax 4,013,475 4,681,134 3,788,754 4,536,245 7,335,113 8,044,773 8,324,878 8,177,352 8,796,821 9,031,709
Professional Sports Development Tax 336,281 435,791 453,268 522,788 597,406 558,268 633,904 649,996 588,054 628,261
Community Revitalization District Tax 1,000,000 1,000,000 955,315 605,623 416,149 733,100 653,185 244,623-
Unrestricted Grants and Contributions 5,063,541 4,032,300 5,664,011 7,597,883 4,883,081 3,964,336 3,891,810 5,893,924 28,473,888 25,487,112
Unrestricted Investment earnings 4,762,484 6,247,113 4,961,410 859,135 868,023 1,050,768 1,317,443 762,270 951,901 1,322,674
Other 3,520,138 5,016,902 2,007,821 2,781,368 2,627,341 3,483,054 6,623,313 14,285,314 6,747,199 11,214,442
Transfers 44,200 3,735 34,970(645,992)(648,823)3,041,176 3,879,721 4,525,187(683,049)2,846,415
Total governme ntal activities 93,407,126$ 106,610,281$ 99,788,894$ 100,409,357$ 104,895,983$ 110,540,547$ 110,848,493$ 120,296,641$ 129,122,122$ 137,410,000$
Business-type activities:
Unrestricted Investment earnings 906,056$ 1,301,348$ 1,514,287$ 271,360$ 146,826$ 206,409$ 285,572$ 138,362$ 128,168$ 358,918$
Other- - - - - - - - 1,501,664-
Transfers(44,200)(3,735)(34,970)645,992 648,823(3,041,176)(3,879,721)(4,525,187)683,049(2,846,415)
Total business-type activities 861,856 1,297,613 1,479,317 917,352 795,649(2,834,767)(3,594,149)(4,386,825)2,312,881(2,487,497)
Total primary government 94,268,982$ 107,907,894$ 101,268,211$ 101,326,709$ 105,691,632$ 107,705,780$ 107,254,344$ 115,909,816$ 131,435,003$ 134,922,503$
Special Item (Governmental activities):
Well field contamination settleme nt-$ -$ 4,462,214$ -$ -$ -$ -$ -$ -$ -$
Disposal of operations- - - - - - - - - (1,180,964)
Change in Net Position
Governmental activities(8,600,473)32,650,580 524,705(6,365,127)150,169,320 911,788 4,739,556 3,771,016 3,890,735(17,557,354)
Business-type activities 1,032,441 759,019 10,433,682 7,695,879 59,663,964 9,710,075 7,276,745 1,268,807 6,387,416 9,112,573
Total primary government(7,568,032)$ 33,409,599$ 10,958,387$ 1,330,752$ 209,833,284$ 10,621,863$ 12,016,301$ 5,039,823$ 10,278,151$ (8,444,781)$
Excludes prior period adjustments
Source : City of South Bend Comprehensive Annual Financial Reports
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.
(1) In 2014, Code Enforcement and Animal Care and Control were consolidated with the Building Department to build efficiencies. Prior to 2014, these expenses were included in the general government activities.
(2) In 2015, Emergency Medical Services was reclassified to an enterprise fund.
City of South Bend
234
Statistical Section
Fund Balances - Governmental Funds
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 (1)2012 2013 2014 2015
General fund
Reserved 4,162,853$ 2,213,970$ 3,245,271$ 1,516,159$ 1,824,454$ -$ -$ -$ -$ -$
Unreserved 21,688,442 21,546,783 24,171,313 23,102,296 26,912,688- - - - -
Nonspendable- - - - - 1,115,025 958,341 656,848 558,304 491,665
Restricted- - - - - 327,267 - - - -
Committed- - - - - - - - - -
Assigned - - - - - 255,287 165,389 516,506 - 466,088
Unassigned- - - - - 26,233,637 27,671,353 26,495,559 27,029,101 29,664,303
Total - General Fund 25,851,295$ 23,760,753$ 27,416,584$ 24,618,455$ 28,737,142$ 27,931,216$ 28,795,083$ 27,668,913$ 27,587,405$ 30,622,056$
Other Governmental Funds
Reserved 34,251,520$ 36,374,517$ 60,213,915$ 56,819,802$ 62,230,229$ -$ -$ -$ -$ -$
Unreserved, reported in:
Special revenue funds 19,348,846 25,703,180 32,054,329 36,398,024 31,996,398 - - - - -
Capital projects funds 60,447,079 66,593,906 87,571,056 78,214,132 85,237,947 - - - - -
Debt service funds(7,828) - - - - - - - - -
Nonspendable- - - - - 37,036,839 37,706,861 22,828,476 20,537,450 27,042,236
Restricted- - - - - 44,754,037 78,326,567 95,387,879 100,501,274 113,004,506
Committed- - - - - 11,829,074 11,142,045 20,697,026 12,962,745 2,238,475
Assigned- - - - - 77,460,284 35,180,652 35,455,190 35,147,874 32,138,059
Unassigned- - - - - (2,777,374) (4,219,066) (4,852,169) (5,700,829) (4,218,596)
Total - Other Governmental Funds 114,039,617 128,671,603 179,839,300 171,431,958 179,464,574 168,302,860 158,137,059 169,516,402 163,448,514 170,204,680
Grand Total - Governmental Funds 139,890,912$ 152,432,356$ 207,255,884$ 196,050,413$ 208,201,716$ 196,234,076$ 186,932,142$ 197,185,315$ 191,035,919$ 200,826,736$
(1) - The City of South Bend adopted Statement No. 54 of the Governmental Accounting Standa rds Board requiring new classifications for Fund Balance reporting for fisca l year 2011.
Sour ce: City of S outh B end Comprehensive Annual Financ ial Reports
City of South Bend
235
Statistical Section
Changes in Fund Balances - Governmental Funds
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenues
Taxes 84,049,414$ 88,695,023$ 96,930,953$ 89,139,585$ 101,785,765$ 99,001,213$ 95,136,206$ 94,829,947$ 93,632,183$ 96,033,296$
Licenses, fees and permits 186,470 173,604 177,329 206,594 192,397 190,943 189,714 177,019 141,565 151,923
Fines and forfeits 444,861 437,732 412,707 423,981 409,775 636,749 334,767 660,841 563,999 454,327
Charges for services 16,931,744 15,832,139 17,030,160 16,678,584 16,585,634 13,990,267 12,442,553 12,320,498 10,628,976 5,794,168
Intergovernmental 31,275,541 21,400,166 18,196,118 20,577,464 35,822,886 34,419,714 31,297,526 29,227,759 30,663,505 30,216,059
Investment earnings 4,762,484 6,248,605 4,962,768 859,135 868,023 1,050,768 1,317,443 762,270 955,376 1,253,242
Other revenues 3,414,731 5,039,373 2,007,821 3,046,791 2,677,796 3,587,518 6,660,875 13,174,140 7,904,187 8,816,811
Total revenues 141,065,245 137,826,642 139,717,856 130,932,134 158,342,276 152,877,172 147,379,084 151,152,474 144,489,791 142,719,826
Expenditures
General government 11,244,734 9,611,354 6,902,426 5,969,141 5,214,424 6,680,855 6,390,585 7,154,965 8,022,688 8,420,278
Public Safety 51,050,640 53,203,005 50,413,055 48,790,068 62,586,177 69,612,754 67,138,414 64,041,549 66,927,250 61,889,405
Highways and Streets 13,583,761 13,257,781 13,369,611 11,716,810 10,702,555 5,079,041 9,288,682 9,769,942 10,441,957 12,787,641
Health and Welfare 75,000 75,000 75,000- - - - - - -
Community and Economic Development 9,752,254 7,710,242 9,726,718 8,938,134 17,408,376 9,698,611 3,543,180 8,068,458 7,309,130 11,068,013
Culture and Recreation 13,849,622 13,469,798 14,542,481 12,733,094 12,841,596 13,816,699 18,557,986 13,956,025 13,948,089 12,855,704
Capital Outlay 16,391,192 17,293,302 26,695,208 37,485,105 21,952,522 46,691,030 39,984,127 30,748,663 29,407,934 46,553,570
Bond Issuance Costs- - - - - - - - - 372,432
Debt Service
Interest and Fiscal Charges 6,144,611 5,718,572 7,258,201 8,053,995 7,499,683 7,186,494 6,734,305 6,113,043 5,360,219 5,392,298
Principal 7,435,722 7,870,166 9,040,095 9,276,363 12,552,681 13,632,195 10,822,721 13,008,105 12,882,830 13,319,392
Total expenditures 129,527,536 128,209,220 138,022,795 142,962,710 150,758,014 172,397,679 162,460,000 152,860,750 154,300,097 172,658,733
Excess of revenues
over (under) expenditures 11,537,709 9,617,422 1,695,061(12,030,576)7,584,262(19,520,507)(15,080,916)(1,708,276)(9,810,306)(29,938,907)
Other Financing Sources (Uses)
Proceeds from debt issuance 14,050,557 2,920,287 45,622,808 1,771,318 5,280,314 3,478,239 5,660,897 7,801,455 8,436,905 69,426,593
Premium (discount) on debt issuance- - 1,626,186 80,950 146,030 26,877 1,236,364 21,576 171,851 1,919,787
Proceeds from refunding- - - 7,210,000 5,327,775 38,307,431 13,595,000 3,990,000- -
Payments to refunded bond escrow agent(8,371,711)- - (7,591,171)(5,538,255)(37,300,856)(14,613,147)(4,376,769)(3,482,205)(35,698,815)
Transfers in 8,928,540 7,872,575 10,574,625 8,687,172 16,314,577 22,483,564 25,368,413 26,365,239 18,478,925 31,498,681
Transfers out(8,884,340)(7,868,840)(10,539,655)(9,333,164)(16,963,400)(19,442,388)(21,488,692)(21,840,052)(16,522,289)(28,652,266)
Other- - - - - - - - 28,476 1,235,744
Total other financing
sources (uses)5,723,046 2,924,022 47,283,964 825,105 4,567,041 7,552,867 9,758,835 11,961,449 7,111,663 39,729,724
Special Item:
Well field contamination settlement- - - 4,462,214- - - - - -
Net change in fund balances 17,260,755$ 12,541,444$ 48,979,025$ (6,743,257)$ 12,151,303$ (11,967,640)$ (5,322,081)$ 10,253,173$ (2,698,643)$ 9,790,817$
Debt service as a percentage of
noncapital expenditures (1)10.8%11.4%12.1%17.6%15.4%13.8%12.9%13.4%13.5%11.6%
Excludes prior period adjustments
(1) Formula = Deb service payments (principal and interest) / (Total Governmental Fund expenditures - Governmental Fund capital outlay per reconciliation)
Source: City of South Bend Comprehensive Annual Financial Reports
Revenue Capacity
These schedules contain information to help the reader assess the &LW\'s most significant local
revenue source, the property taxDQGRWKHUPDMRUUHYHQXHVRXUFHV.
City of South Bend
236
Statistical Section
Property Taxes Levies and Collections
Last Ten Fiscal Years
Estimated Adjusted Current Tax Total Tax(1)Outstanding
Per DLGF Circuit Breaker Current Tax Collections Delinquent Collections as Outstanding Delinquent Taxes
Tax Year/Current Levy Levy Current Tax as a Percent of Tax Total Tax a Percent of Delinquent as a Perce nt of
Collection Year Tax Le vy Reduction(County Abstract)Collections Adjusted Tax Levy Collections Collections Adjusted Tax Levy Taxes Adjusted Tax Levy
2005/2006 62,058,519$ -$ 62,058,519$ 58,849,337$ 94.83%3,847,872$ 62,697,209$ 101.03%5,495,442$ 8.86%
2006/2007 62,723,113 - 62,723,113 57,979,187 92.44%2,289,138 60,268,325 96.09%7,411,505 11.82%
2007/2008 65,534,282 - 65,534,282 59,589,537 90.93%4,113,095 63,702,632 97.21%2,831,650 4.32%
2008/2009 64,546,050 7,863,846 56,682,204 47,497,697 83.80%3,355,161 50,852,858 89.72%5,810,503 10.25%
2009/2010 66,929,179 14,346,110 52,583,069 41,813,442 79.52%6,380,600 48,194,042 91.65%10,026,236 19.07%
2010/2011 68,662,101 17,692,787 50,969,314 40,876,844 80.20%5,791,920 46,668,764 91.56%8,165,775 16.02%
2011/2012 70,756,844 23,965,911 46,790,933 42,598,817 91.04%5,111,380 47,710,197 101.96%9,550,891 20.41%
2012/2013 72,696,497 27,863,156 44,833,341 38,721,788 86.37%5,200,000 43,921,788 97.97%11,146,473 24.86%
2013/2014 73,981,565 27,051,751 46,929,814 41,370,637 88.15%3,134,526 44,505,163 94.83%8,745,941 18.64%
2014/2015 76,533,090 29,728,412 46,804,678 42,097,072 89.94%3,168,597 45,265,669 96.71%8,200,000 17.52%
Source - St. Joseph County Auditor's Settlement Worksheets and Abstract. City of South Bend budget forms approved by the Department of Local Government Finance (DLGF).
Data provided for General Fund, Parks & Recreation, Cumulative Capital Development, Fire Pension and Police Pension Funds. Excludes College Football Hall of Fame and Tax Increment Financing Funds.
Delinquent tax collections are not broken out by individual taxing unit. A calculation of South Bend's share of delinquent taxes has been made based on proportionate tax rates.
Total collections may exceed 100% of adjusted tax levy as prior year collections are not broken out separately by the St. Joseph County Auditor.
(1) Outstanding Delinquent Taxes are reported in the aggregate as of the end of each year and are not cumulative. Estimated for 2014/2015.
City of South Bend
237
Statistical Section
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Net Assessed Value)
Overlapping Rates (3)
Cumulative
Tax Year/General Parks/Firefighters'Police Capital Total St. Joseph Schools Total Grand
Collection Year Fund Recreation Pension Pension Development Direct County Districts Township Library Othe r (1)Overlapping Total
2005/2006 1.7386 0.2981 0.0554 0.0498 0.0376 2.1795 0.9899 1.6033 0.0269 0.2027 0.1501 2.9729 5.1524
2006/2007 1.6838 0.2858 0.0531 0.0477 0.0342 2.1046 0.8711 1.5419 0.0285 0.1957 0.1737 2.8109 4.9155
2007/2008 1.7924 0.2979 0.0579 0.0572 0.0342 2.2396 0.7576 1.5417 0.0482 0.2216 0.1944 2.7635 5.0031
2008/2009 1.9777 0.3656 0.0117 0.0189 0.0342 2.4081 0.5693 1.0297 0.0537 0.2257 0.1733 2.0517 4.4598
2009/2010(2)2.2536 0.4401- - 0.0342 2.7279 0.5866 1.0728 0.0406 0.2657 0.1835 2.1492 4.8771
2010/2011 2.4381 0.4818- - 0.0342 2.9541 0.5424 1.2211 0.0438 0.3027 0.1958 2.3058 5.2599
2011/2012 2.4954 0.4957- - 0.0328 3.0239 0.6212 1.1931 0.0464 0.2941 0.1817 2.3365 5.3604
2012/2013 2.5678 0.5102- - 0.0328 3.1108 0.6731 1.3493 0.0453 0.3227 0.1971 2.5875 5.6983
2013/2014 2.7977 0.5608- - 0.0328 3.3913 0.7058 1.3577 0.0505 0.3309 0.1849 2.6298 6.0211
2014/2015 2.8313 0.5676- - 0.0325 3.4314 0.6866 1.2940 0.0500 0.3207 0.2125 2.5638 5.9952
Source: St. Joseph County Auditor's Office - Certified Tax Rate Schedules - Rates presented for Portage Township in South Bend
(1) Include s State of Indiana, Redevelopment Comm issio n (H all of Fame), South Bend Transportation and South Bend Regional Airport.
(2) Firefighters' Pension and Police Pension no longer tax burden for the City of South Bend as the State of Indiana has assumed responsibility for funding these programs.
(3) Informatio n provided for Portage Township in the City of South Bend. Property tax rates applied to net assessed valuation. Property tax billings
are also subject to "circuit breaker" property tax caps on grossed assessed valuation of 1% (homestead residential property), 2% (other residential/rental property),
and 3% ( nonresidential real and personal property). Therefore, an increase in stated property tax rates will not result in higher property taxes paid for many
taxpayers who have reached their cap.
City Direct Rates
City of South Bend
238
Statistical Section
Detail of Net Assessed Valuation
(Assessment for the Year 2014 Payable in 2015)
South Bend South Bend South Bend South Bend South Bend South Bend
Centre Twp Clay Twp German Twp Penn Twp Warren Twp Portage Twp Totals Percent
Value of land 111,235,900$ 25,403,300$ 67,460,500$ 17,010,900$ 2,104,100$ 382,859,700$ 606,074,400$
Value of improvements 457,250,600 116,476,100 409,078,800 83,055,200 22,895,800 2,497,974,020 3,586,730,520
Total value of real estate 568,486,500 141,879,400 476,539,300 100,066,100 24,999,900 2,880,833,720 4,192,804,920
Less: Mortgage, veterans, blind, age
65 & other exemptions(225,151,976)(33,285,949)(82,018,671)(26,710,454)- (903,098,984)(1,270,266,034)
Tax-exempt property(41,704,125)(7,423,168)(27,124,970)(9,323,600)- (338,256,082)(423,831,945)
Investment Deduction- - - - - (1,702,500)(1,702,500)
Tax increment financing(59,228,996)(8,648,206)(248,406,279)- (23,951,500)(366,775,526)(707,010,507)
Tax abatements(2,784,175)- (18,302,844)(1,583,740)(1,048,400)(13,151,882)(36,871,041)
Net value of real estate 239,617,228 92,522,077 100,686,536 62,448,306- 1,257,848,746 1,753,122,893 77.56%
Gross personal property assessments 27,801,510 8,667,670 166,310,462 2,283,340 6,991,780 345,705,220 557,759,982
Less: Tax abatements- - (18,079,655)- - (11,780,800)(29,860,455)
Tax-exempt property(1,557,090)(155,400)(2,796,240)(1,065,870)- (81,148,643)(86,723,243)
Investment deduction- - - - - (20,954,569)(20,954,569)
Tax increment financing- - - - - - -
Net value of personal property 26,244,420 8,512,270 145,434,567 1,217,470 6,991,780 231,821,208 420,221,715 18.59%
Net value of utilities 9,260,250 3,696,780 6,771,990 1,101,960 336,000 65,757,730 86,924,710 3.85%
Total net assessed valuation 275,121,898$ 104,731,127$ 252,893,093$ 64,767,736$ 7,327,780$ 1,555,427,684$ 2,260,269,318$ 100.00%
Percentage of Total 12.17%4.63%11.19%2.87%0.32%68.82%100.00%
Summary
Real Personal Property/
Property Utilities Total Percent
Total value 4,192,804,920$ 644,684,692$ 4,837,489,612$ 100.00%
Deductions & exemptions(1,271,968,534)(20,954,569)(1,292,923,103)-26.73%
Tax exempt property(423,831,945)(86,723,243)(510,555,188)-10.55%
Tax increment financing(707,010,507)- (707,010,507)-14.62%
Tax abatements(36,871,041)(29,860,455)(66,731,496)-1.38%
Total net assessed valuation 1,753,122,893$ 507,146,425$ 2,260,269,318$ 46.72%
Percent 77.56%22.44%100.00%
Source: St. Joseph County Auditor's Office - Information from the County Abstract prepared by the Indiana De partment of Local Government Finance.
City of South Bend
239
Statistical Section
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
(2)
Gross Assessed Values Less:Total Net City
Tax Year/Real Personal Utilities Total Non-Taxed Taxable Tax%
Collection Year Property Property Property Value Property (1)Value Rate Taxable
2005/2006$3,789,447,190$655,066,401$98,165,420$4,542,679,011$1,707,413,121$2,835,265,890 2.1795 62.41%
2006/2007 4,374,431,415 544,460,152 90,443,780 5,009,335,347 1,986,978,200 3,022,357,147 2.1046 60.33%
2007/2008 4,420,513,240 527,383,785 92,736,090 5,040,633,115 2,064,552,317 2,976,080,798 2.2396 59.04%
2008/2009 4,698,989,240 592,538,950 95,891,770 5,387,419,960 2,718,532,541 2,668,887,419 2.4081 49.54%
2009/2010 4,368,497,000 604,951,450 98,433,750 5,071,882,200 2,618,376,627 2,453,505,573 2.7279 48.37%
2010/2011 4,339,037,300 551,819,290 101,009,760 4,991,866,350 2,667,414,488 2,324,451,862 2.9541 46.56%
2011/2012 4,255,238,900 560,331,660 95,165,650 4,910,736,210 2,529,861,602 2,380,874,608 3.0239 48.48%
2012/2013 4,452,887,970 537,500,490 100,832,450 5,091,220,910 2,720,133,213 2,371,087,697 3.1108 46.57%
2013/2014 4,199,757,500 552,872,520 90,252,180 4,842,882,200 2,633,155,528 2,209,726,672 3.3913 45.63%
2014/2015 4,192,804,920 557,759,982 86,924,710 4,837,489,612 2,577,220,294 2,260,269,318 3.4314 46.72%
(1) Non-taxed property includes adjustments for deductions and exemptions, tax exempt property, tax increment financing property, and
tax abatements.
(2) Excludes Redevelopment Commission (Hall of Fame) tax rate.
Source: St. Joseph County Auditor's Office
City of South Bend
240
Statistical Section
Net Assessed Value of Taxable Property
Last Ten Fiscal Years
Real Personal Utilities Total
Tax Year/Net Assessed Net Assessed Net Assessed Net Assessed Percent
Collection Year Value Value Value Value Change
2005/2006 2,200,118,689$ 536,981,781$ 98,165,420$ 2,835,265,890$ 0.58%
2006/2007 2,520,098,365 411,815,002 90,443,780 3,022,357,147 6.60%
2007/2008 2,493,481,003 389,863,705 92,736,090 2,976,080,798 -1.53%
2008/2009 2,137,129,242 435,866,407 95,891,770 2,668,887,419 -10.32%
2009/2010 1,911,818,036 443,253,787 98,433,750 2,453,505,573 -8.07%
2010/2011 1,809,523,734 413,918,368 101,009,760 2,324,451,862 -5.26%
2011/2012 1,858,836,588 426,872,370 95,165,650 2,380,874,608 2.43%
2012/2013 1,858,213,181 412,042,066 100,832,450 2,371,087,697 -0.41%
2013/2014 1,687,672,152 431,802,340 90,252,180 2,209,726,672 -6.81%
2014/2015 1,753,122,893 420,221,715 86,924,710 2,260,269,318 2.29%
Source: St. Joseph County Auditor's office
City of South Bend
241
Statistical Section
Assessed Value of Taxable Property
2005 - 2015
Net
Tax Year/Total Tax Exempt Tax Increment Tax Assessed
Collection Year Gross Valuation Deductions (1)Property Financing Abatements Valuation
2005/2006 4,542,679,011$ (867,578,331)$ (413,587,899)$ (290,451,066)$ (135,795,825)$ 2,835,265,890$
2006/2007 5,009,335,347(1,014,750,501)(494,545,149)(382,668,480)(95,014,070)3,022,357,147
2007/2008 5,040,633,115(996,413,450)(494,748,890)(471,656,927)(101,733,050)2,976,080,798
2008/2009 5,387,419,960(1,557,329,781)(436,861,027)(625,910,065)(98,431,668)2,668,887,419
2009/2010 5,071,882,200(1,344,563,829)(449,848,037)(707,096,696)(116,868,065)2,453,505,573
2010/2011 4,991,866,350(1,353,769,271)(439,343,852)(777,038,302)(97,263,063)2,324,451,862
2011/2012 4,910,736,210(1,331,068,608)(417,907,225)(702,724,247)(78,161,522)2,380,874,608
2012/2013 5,091,220,910(1,397,134,910)(488,961,977)(761,349,489)(72,686,837)2,371,087,697
2013/2014 4,842,882,200(1,344,702,776)(512,692,590)(713,448,152)(62,312,010)2,209,726,672
2014/2015 4,837,489,612(1,292,923,103)(510,555,188)(707,010,507)(66,731,496)2,260,269,318
(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.
2015 Deductions
Homestead Standard Deduction 814,820,960$
Supplemental Standard Deduction 368,795,377
Mortgage Deduction 44,358,618
Veteran's Deduction 11,027,128
Age 65 and Over Deduction 25,146,428
Energy Systems Deduction 403,400
Blind & Disabled Deduction 5,714,123
Investment Deduction 22,657,069
Total 1,292,923,103$
Source: St. Joseph County Auditor's Office Abstract
City of South Bend
242
Statistical Section
Property Tax Collections - Cash Basis
2006 - 2015
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fund Name Actual Actual Actual (2)Actual (3)Actual Actual Actual Actual Actual Actual
General Fund$48,768,150$48,720,726$14,574,480$79,162,937$38,780,847$38,514,550$39,368,431$36,251,397$36,708,989$37,349,387
Excess Levy- - - - - - - - 3,648-
Parks & Recreation 8,363,955 8,271,741 2,461,101 13,919,096 7,591,932 7,613,760 7,824,056 7,207,060 7,365,388 7,487,554
Redevelopment Bonds Studebaker Corridor- 11,590- - - - - - - -
College Football Hall of Fame Debt Service 899,472 1,127,140 360,682 2,362,057 1,488,453 1,549,954 1,133,205 1,268,179 497,768 906,263
River West TIF District (1)7,515,744 8,851,077 33,400 10,808,912 21,508,430 11,187,768 11,631,287 13,340,354 14,284,734 16,293,240
Cumulative Capital Development 1,054,963 989,824 291,600 1,420,833 587,063 540,454 517,710 463,331 430,786 428,727
Sample-Ewing TIF District (1)732,356 778,093- - - - - - - -
South Bend Central Development Area TIF (1) 3,283,075 3,276,169 12,696 3,870,188 7,336,117 3,633,473 3,671,478 2,590,808 4,309,727-
West Washington Street TIF District 255,510 287,095 1,785 358,844 860,049 431,085 422,715 493,608 580,987 402,911
Central Medical Service Area TIF District (1)333,585 928,113 2,793 919,174 3,524,962 1,704,238 1,606,915 1,221,676 851,211-
River East (Northeast) TIF District- 13,468- 22,191 195,400 715,063 1,351,048 841,627 1,568,240 2,421,308
Southside Development Area TIF District 28,565 457,985 1,756 355,596 4,094,135 1,808,952 2,466,203 2,404,416 2,379,212 2,205,822
Erskine Commons TIF District (5)2,585 2,891 10 1,240,184 5,978,592 784,373- - - -
Erskine Village TIF District 305,399 775,622 2,713 1,531,403 3,759,287 1,603,182- 1,311,129 9,175 19,183
Douglas Road TIF District- 13,941- 125,294 460,760 306,053 285,713 323,939 321,895 270,758
River East (Northeast) Residential TIF- - - - 1,815,829 2,446,103 2,514,048 2,262,765 2,725,909 3,129,681
Airport Urban Enterprise- - - - 301,430 123,165 111,721- - -
Fire Department Employees Pension (4)1,554,387 1,536,839 462,375 1,437,539(5,867)- - - - -
Police Department Employees Pension (4)1,397,265 1,380,555 425,760 1,609,905(9,479)- - - - -
Total$74,495,011$77,422,869$18,631,151$119,144,153$98,267,940$72,962,173$72,904,530$69,980,289$72,037,669$70,914,834
Source - City Accounting System
(1) Fund 414 closed out during 2008 into Fund 324. Name changed in 2015 from TIF Airport to River West TIF due to consolidation of Central Development Area and Central Medical TIFs.
(2) Delays in sending out property tax bills until December 19, 2008 (with an on-time due date of February 20, 2009) resulted in interfund borrowing in the General Fund (101), Parks
and Recreation Fund (201) and the College Football Hall of Fame Debt Service Fund (313) at year end. The remainder of property tax revenue was received during the first half of
2009 with final settlement with the St. Joseph County Auditor in July, 2009
(3) Includes collections of 2008 taxes as noted above. Tax Increment Financing (TIF) 2009 property tax collections were received from the County Auditor on January 21, 2010.
(4) Property tax levy for Police and Fire pension plans eliminated. Funding provided by the State of Indiana.
(5) Erskine Commons TIF District funds were released and outstanding bonds were paid off.
City of South Bend
243
Statistical Section
2015 Circuit Breaker Property Tax Cap Credits
(2%)(3%)
Taxing(1%)Other Residential All Other Total
Unit Name Homsesteads and Farmland Real/Personal Elderly Credits
City of South Bend (101,168 population)
South Bend Civil City 6,779,178$ 13,324,421$ 11,509,505$ 23,037$ 31,636,141$
Hall of Fame Bond- - - 461 461
TIF - SB So. #1 Centre 623 43,284 1,115,515 - 1,159,422
TIF - SB So. #3 Centre- - 9,367 9,367
TIF- Douglas Road EDA- 2,921 159,924 - 162,845
TIF - River East Clay- - 8,609 - 8,609
TIF - River West German 31,042 396,166 4,325,091 - 4,752,299
TIF - SB West Washington 10,346 249,479 106,870 66 366,761
TIF - SB So. #1 Portage 498 54,518 52,427 - 107,443
TIF - River West Portage 25,034 1,218,360 2,527,990 4 3,771,388
TIF - River West Warren- - 442,888 - 442,888
TIF - River East Portage 62,996 2,824,062 1,512,367 - 4,399,425
Total Credits 6,909,717$ 18,113,211$ 21,770,553$ 23,568$ 46,817,049$
Per Capita Credits 68.30 179.04 215.19 0.23 462.77
Total 2010 Per Capita
Local Unit Credits Population Credits
South Bend Civil City 31,636,141$ 101,168 312.71
Anderson Civil City 10,239,625 56,120 182.46
East Chicago Civil City 11,263,022 29,698 379.25
Elkhart Civil City 9,278,997 50,949 182.12
Evansville Civil City 9,659,167 117,429 82.26
Fort Wayne Civil City 18,570,414 253,691 73.20
Gary Civil City 26,398,072 80,294 328.77
Goshen Civil City 3,874,596 31,719 122.15
Hammond Civil City 5,260,785 80,830 65.08
Jeffersonville Civil City 3,731,632 44,953 83.01
Kokomo Civil City 8,865,350 45,468 194.98
Lafayette Civil City 1,664,486 61,140 27.22
Laporte Civil City 2,714,420 22,053 123.09
Mishawka Civil City 4,459,425 48,252 92.42
Muncie Civil City 14,811,898 70,085 211.34
Noblesville Civil City 5,155,218 51,969 99.20
Saint Joseph County 7,720,780 266,931 28.92
South Bend School Corporation 7,137,022 101,168 70.55
Terre Haute Civil City 10,071,647 60,785 165.69
Sources - Circuit Breaker Report. Prepared by the Legislative Services Agency, December 17, 2014 (www.iga.in.gov).
County Property Tax Studies, Saint Joseph County, Property Tax Changes in Saint Joseph County Between
2014 and 2015. Prepared by the Legislative Services Agency, October 2015. (www.iga.gov).
2010 Population - American Fact Finder www. 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.
City of South Bend
244
Statistical Section
Principal Property Taxpayers - Current and Nine Years Ago
December 31, 2015
2015 2006
Net Assessed Percent Net Assessed Percent
Taxpayer Type of Business Value (1)Rank of Total Value (2)Rank of Total
Honeywell International, Inc.Airplane and Auto Parts 45,011,384$ 1 1.99%10,686,900$ 6 0.38%
Indiana Bell - AT&T Inc.Telecommunications 41,252,660 2 1.83
Indiana Michigan Power Company - AEP Utility 36,944,140 3 1.63
Edward Rose of Indiana Apartments and Real Estate 35,693,000 4 1.58 40,418,500 2 1.43
Beacon Health Systems, Inc. - Memorial Hospital Healthcare 25,705,840 5 1.14
Federal-Mogul Powertrain Systems Automotive Parts 24,942,500 6 1.10
The Tire Rack Automotive Parts 21,639,970 7 0.96
NIPSCO Utility 20,911,992 8 0.93
KSK Scottsdale Mall Commercial Real Estate 19,631,600 9 0.87
Comcast Telecommunications 18,569,480 10 0.82
Home Properties Maple Lane II LLC Apartments and Real Estate 57,087,800 1 2.01
Walnut Grove Mutual Housing Corp Apartments and Real Estate 33,450,900 3 1.18
Can-American South Bend Limited Apartments and Real Estate 12,386,000 4 0.44
Dwellco II Limited Partnership Apartments and Real Estate 11,131,000 5 0.39
Ameritech Communications 10,563,700 7 0.37
Meijer Stores Limited Partnership Department Store 9,329,400 8 0.33
Amico Turtle Creek Apartments and Real Estate 9,239,000 9 0.33
Wal-Mart Department Store 9,189,400 10 0.32
Total Net Assessed Value - Ten Largest Taxpayers 290,302,566$ 12.84%203,482,600$ 7.18%
Total Net Assessed Value (3)2,260,269,318$ 100.00%2,835,265,890$ 100.00%
Source:
(1) 2015 South Bend Redevelopment Authority Consultant's Report prepared by Crowe Horwath
(2) 2006 Comprehensive Annual Financial Report
(3) St. Joseph County Auditor
City of South Bend
245
Statistical Section
Local Option Income Tax Revenue
Last Ten Years
COUNTY ECONOMIC DEVELOPMENT INCOME TAX (CEDIT) REVENUE
Total Est South Bend South Bend Actual City
Distribution EDIT (1)County EDIT Rate of EDIT Rate of as a Percent Collections
Year Tax Rate Collections Growth Distribution Growth of Total During Year
2006 0.20%10,610,460$ 18.10%4,013,475$ 15.86%37.83%4,013,475$
2007 0.20%10,558,004 -0.49%3,702,467 -7.75%35.07%3,702,467
2008 0.20%11,136,493 5.48%3,997,997 7.98%35.90%3,997,997
2009 0.20%11,938,605 7.20%4,612,694 15.38%38.64%3,843,912
2010 (2)0.40% 22,789,919 90.89%8,321,633 80.41%36.51%9,090,415
2011 0.40%18,826,685 -17.39%7,300,866 -12.27%38.78%7,300,866
2012 (3)0.40%17,649,256 -6.25%8,324,626 14.02%47.17%9,068,785
2013 0.40%20,611,415 16.78%8,177,352 -1.77%39.67%8,177,352
2014 0.40%22,063,091 7.04%8,796,821 7.58%39.87%8,796,821
2015 0.40%23,081,049 4.61%9,181,206 4.37%39.78%9,181,206
Total $178,249,127$69,893,289 39.21%$70,637,448
(1) This tax was first enacted as of July 1, 1995 at the rate of 0.1% of City residents' adjusted gross income. The rate was
increased to 0.2% effective July 1, 1997.
(2) The CEDIT tax rate for 2010 and subsequent years was increased by City of South Bend Common Council
and the Saint Joseph County Common Council.
(3) 2012 actual CEDIT payments includes $744,159 underpaid in 2011 due to a State of Indiana accounting error
Source - State of Department of Local Government Finance CEDIT Distribution Reports
Actual City Collections During Year per City Accounting System
City of South Bend
246
Statistical Section
Local Option Income Tax Revenue
Last Ten Years
COUNTY OPTION INCOME TAX (COIT) REVENUE
Total South Bend South Bend Actual City
Distribution COIT County COIT Rate of COIT Rate of as a Percent Collections
Year Tax Rate (1)Distributions Growth Distribution Growth of Total During Year
2006 0.60%21,276,623$ 27.96%6,950,396$ 26.60%32.67%6,410,405$
2007 0.60%16,993,346 -20.13%5,160,903 -25.75%30.37%5,816,766
2008 0.60%20,689,958 21.75%6,382,478 23.67%30.85%6,192,452
2009 0.60%26,973,887 30.37%8,952,424 40.27%33.19%8,302,694
2010 0.60%25,147,806 -6.77%7,855,776 -12.25%31.24%7,648,824
2011 0.60%19,907,430 -20.84%6,458,586 -17.79%32.44%7,097,462
2012 (2)0.60%22,536,457 13.21%7,691,991 19.10%34.13%8,610,742
2013 0.60%22,923,958 1.72%7,846,939 2.01%34.23%7,846,939
2014 0.60%25,275,541 10.26%8,645,811 10.18%34.21%8,645,811
2015 0.60%26,435,155 4.59%8,859,912 2.48%33.52%8,859,912
Total 244,788,292$ 80,295,434$ 32.80%81,127,625$
(1) This tax was first enacted as of July 1, 1997 at the rate of 0.2% of City residents' adjusted gross income. The COIT
rate increased 0.1% each year until it reached 0.6% as of July 1, 2001. The above collections/distribution amounts
are net of the additional homestead credits that accompanied the passage of this income tax.
(2) 2012 actual COIT collections includes $918,751 underpaid in 2011 due to a State of Indiana accounting error.
Source - State of Indiana Department of Local Government Finance COIT Distribution Reports
Actual City Collections During Year per City Accounting System
City of South Bend
247
Statistical Section
Local Option Income Tax Revenue
Last Ten Years
PUBLIC SAFETY LOCAL OPTION INCOME TAX REVENUE
Total South Bend South Bend Actual City
Distribution PS LOIT County LOIT Rate of LOIT Rate of as a Percent Collections
Year Tax Rate Distributions Growth Distribution Growth of Total During Year
2010(1)0.25%13,846,267$ 100.00%6,078,454$ 100.00%43.90%6,078,454$
2011 0.25%11,371,882 -17.87%5,293,619 -12.91%46.55%5,293,619
2012(2)0.25%10,644,975 -6.39%6,056,334 14.41%56.89%6,605,601
2013 0.25%12,457,864 17.03%5,892,356 -2.71%47.30%5,892,386
2014 0.25%13,476,753 8.18%6,380,029 8.28%47.34%6,380,029
2015 0.25%13,734,382 1.91%6,466,190 1.35%47.08%6,466,190
Total $75,532,123$36,166,982 47.88%$36,716,279
(1) This tax was effective in October 2009 at the rate of 0.25% of City residents' adjusted gross income.
The measure is being used to support the Public Safety operations consisting of the Police Department
and the Fire Department, to keep the staffing levels at their full complement.
(2) 2012 actual Public Safety LOIT collections includes $549,267 underpaid in 2011 due to a State of Indiana accounting error.
Source - State of Indiana Department of Local Government Finance LOIT Public Safety Distribution Reports
Actual City Collections During Year per City Accounting System
City of South Bend
248
Statistical Section
Total County Income Tax Distributions by Taxing Unit
Last Ten Years
Unit of Government 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total County Certified Distribution 31,044,322$ 30,859,812$ 32,574,042$ 34,801,729$ 33,231,041$ 27,292,516$ 29,898,874$ 29,898,874$ 32,344,207$ 32,962,518$
Les s: Homestead Credit (1)(9,767,699)(13,866,466)(11,884,084)(7,827,842)(8,083,235)(7,385,086)(7,362,417)(6,974,918)(7,068,666)(6,527,363)
Total Distributive Shares 21,276,623$ 16,993,346$ 20,689,958$ 26,973,887$ 25,147,806$ 19,907,430$ 22,536,457$ 22,923,956$ 25,275,541$ 26,435,155$
Distributive Shares/Total County Distribution 68.54%55.07%63.52%77.51%75.68%72.94%75.38%76.67%78.15%80.20%
Amount
St. Joseph County 8,440,988$ 7,376,623$ 8,825,206$ 10,358,300$ 9,819,576$ 7,383,180$ 7,986,750$ 8,460,192$ 9,314,201$ 9,611,416$
Townships 834,727 648,364 820,241 1,180,913 1,168,352 1,054,827 1,244,481 954,332 1,069,408 1,541,211
City of South Bend - Civil City 6,733,129 5,077,450 6,266,381 8,748,506 7,677,730 6,304,224 7,511,976 7,711,609 8,483,839 8,754,940
City of South Bend - Redevelopment 217,267 83,453 116,097 203,918 178,046 154,363 184,790 135,330 161,972 104,972
Other Cities & Towns 2,616,698 1,982,192 2,367,929 3,592,330 3,462,786 2,667,400 3,077,335 3,137,086 3,378,481 3,508,422
Libraries 1,706,495 1,285,029 1,646,819 2,007,809 2,042,942 1,762,365 1,879,376 1,849,933 2,126,185 2,144,046
Special Districts 727,319 540,235 647,285 882,111 798,374 581,071 651,749 675,474 741,455 770,148
Total 21,276,623$ 16,993,346$ 20,689,958$ 26,973,887$ 25,147,806$ 19,907,430$ 22,536,457$ 22,923,956$ 25,275,541$ 26,435,155$
Percentage of Distribution
St. Joseph County 39.67%43.41%42.65%38.40%39.05%37.09%35.44%36.91%36.85%36.36%
Townships 3.92%3.82%3.96%4.38%4.65%5.30%5.52%4.16%4.23%5.83%
City of South Bend - Civil City 31.65%29.88%30.29%32.43%30.53%31.67%33.33%33.64%33.57%33.12%
City of South Bend - Redevelopment 1.02% 0.49% 0.56% 0.76% 0.71% 0.78%0.82%0.59%0.64%0.40%
Other Cities & Towns 12.30%11.66%11.44%13.32%13.77%13.40%13.65%13.68%13.37%13.27%
Libraries 8.02%7.56%7.96%7.44%8.12%8.85%8.34%8.07%8.41%8.11%
Special Districts 3.42%3.18%3.14%3.27%3.17%2.91%2.90%2.95%2.93%2.91%
Total 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
(1) A portion of the county option income tax is used for property tax relief through homestead credits for residential property owners.
Source - State of Indi ana Dep artment of Local Government Fi nance COIT Distributi on Reports
City of South Bend
249
Statistical Section
Ten Largest Water Customers
December 31, 2015
Percentage of
Total Water
2015 Operating Usage
Name Revenue Revenue CCF*
South Bend Community School Corporation$140,508 0.99%93,015
Memorial Hospital of South Bend 106,400 0.75%93,713
Irish Hills Apartments 75,351 0.53%61,638
Honeywell Aerospace Co 72,596 0.51%65,410
Indiana University South Bend 56,244 0.40%31,495
Indian Springs Apartments and Townhouses 53,570 0.38%39,567
Castle Point Apartments 40,042 0.28%42,333
Aramark Uniform Services 37,530 0.26%47,452
Laurnenz Place LLC 36,744 0.26%47,117
Holy Cross Care Services Inc 35,034 0.25%32,076
Total of Ten Largest Water Customers$654,020 4.60%
Total for Operating Revenue for Water Works$14,204,285 100.00%
*Hundreds of Cubic Feet
City of South Bend
250
Statistical Section
Ten Largest Sewage Works Customers
December 31, 2015
Percentage of
Heavy Total Water
Metered Demand Total Sewer Usage
Name Revenue Surcharge Revenue Revenue CCF*
I/NTEK Plant$2,013,744 $$2,013,744 5.50%738,695
University of Notre Dame 1,349,108 1,349,108 3.68%567,593
Noble Americas Ethenol 946,283 577,463 1,523,746 4.16%111,966
Memorial Hospital 397,073 397,073 1.08%90,703
South Bend Community School Corp 384,711 384,711 1.05%67,758
Honeywell Aerospace Co 308,200 308,200 0.84%64,070
Indian Springs Apartments and Townhouses 188,984 188,984 0.52%33,360
Irish Hill Apartment 187,850 187,850 0.51%46,298
Aramark Uniform Services 185,394 185,394 0.51%47,440
Laurenz Place LLC 169,638 169,638 0.46%46,836
Total of Ten Largest Sewer Customers$6,130,984$577,463$6,708,447 18.31%
Total Operating Revenue for Wastewater$36,635,501
*Hundreds of Cubic Feet
City of South Bend
251
Statistical Section
Gasoline Tax Collections - Cash Basis
Last Ten Fiscal Years
LR&S MVH Total Gas%
Year Fund Fund Tax Change
2006 1,201,538$ 3,327,314$ 4,528,852$ -1.76%
2007 1,171,732 3,243,818 4,415,550-2.50%
2008 1,104,260 3,016,198 4,120,458-6.68%
2009 1,045,477 2,954,086 3,999,563-2.93%
2010 1,064,149 2,922,165 3,986,314-0.33%
2011 1,030,958 2,951,072 3,982,030-0.11%
2012 1,022,508 2,786,592 3,809,100-4.34%
2013 1,001,871 3,006,122 4,007,993 5.22%
2014 1,017,383 3,682,329 4,699,712 17.26%
2015 1,045,516 3,679,371 4,724,887 0.54%
Source: City Accounting Records
Distributions of gas tax revenue are made monthly by the Indiana Department of Revenue to the Local
Road and Street (LR&S) and Motor Vehicle Highway (MVH) funds for use in construction and maintenance
of streets and highways.Distributions are based on a complex formula developed by the state which
takes into account population,road and street mileage and other factors.Gas tax revenue was declining in
prior years due to the economy and more fuel efficient vehicles,however,due to animprovement in the
economy and temporary increase in state funding for two years,total gas tax increased in 2014.Gas tax
remained consistent in 2015.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Gasoline Tax
LR&S
MVH
Total Gas
City of South Bend
252
Statistical Section
Wheel and Excise Surtax Collections - Cash Basis
Last Ten Years
LR&S MVH Total Wheel%
Year Fund Fund Tax Change
2006 1,849,924$ -$ 1,849,924$ -3.37%
2007 1,966,003- 1,966,003 6.27%
2008- 2,040,751 2,040,751 3.80%
2009- 1,893,982 1,893,982-7.19%
2010- 1,975,397 1,975,397 4.30%
2011- 1,863,283 1,863,283-5.68%
2012- 1,795,538 1,795,538-3.64%
2013- 2,045,213 2,045,213 13.91%
2014- 1,637,707 1,637,707-19.92%
2015- 2,135,441 2,135,441 30.39%
Source: City Accounting Records
Effective January 1,2004,St.Joseph County enacted a wheel tax and annual
license excise surtax as allowed by State law to provide additional funding for road
maintenance and repair.State law allows an annual wheel tax of$5-40 per vehicle
and an annual license excise surtax of 2-10%.St.Joseph County has enacted a
$25 County Excise surtax.The tax applies to all passenger cars,trucks less than
11,000 pounds,buses,tractors and motorcycles registered in the County.(Other
rates apply to recreational vehicles,semitrailers and trucks exceeding 11,000
pounds.)The tax is collected by the Indiana Bureau of Motor Vehicles,remitted to
the County and distributed monthly to the local units based on population and
road miles.
During 2004-2007,the City of South Bend deposited the wheel tax and excise
surtax in its Local Road and Street(LR&S)fund.During 2008 and thereafter,the
City will deposit the taxes in its Motor Vehicle Highway(MVH)fund,as required
by the Indiana State Board of Accounts.
Increase in the 2015 wheel tax due to 13 months of taxes being collected during
the year(September 2014-September 2015).Prior year tax collections were
several months behind.
City of South Bend
253
Statistical Section
Hotel/Motel Tax Revenue - Cash Basis - City Distributions
Last Ten Fiscal Years
--------------------------------Paid to City of South Bend----------------------------------------------------Direct Payments-----------------------
Century Professional Cumulative 2008 Subtotal:1992 Century 2008 Other
Center Sports Develop.Capital Impr.Century Center Paid to City Center Century Center South Bend Total Hotel/%
Year Fund Fund Fund Bonds of South Bend Bonds Bonds Projects Motel Tax Change
2006 1,247,928$ 473,258$ 150,000$ -$ 1,871,186$ 357,135$ -$ 364,150$ 2,592,471$ 0$
2007 1,361,263 507,585 150,000- 2,018,848 354,916- 136,330 2,510,094-3.18%
2008 1,497,390 589,620 150,000- 2,237,010 356,918- 694,135 3,288,063 30.99%
2009 1,347,651 530,137 150,000- 2,027,788- 198,500 265,258 2,491,546-24.22%
2010 1,313,152 521,800 150,000 399,000 2,383,952- - 97,000 2,480,952-0.43%
2011 1,313,436 494,325 150,000 400,000 2,357,761- - - 2,357,761-4.97%
2012 1,313,436 489,152 150,000 398,000 2,350,588- - - 2,350,588-0.30%
2013 1,313,436- 150,000 398,500 1,861,936- - - 1,861,936-20.79%
2014 1,313,450- 150,000 400,000 1,863,450- - 457,739 2,321,189 24.67%
2015 1,313,450- 150,000 492,000 1,955,450- - 976,855 2,932,305 26.33%
Source: City Accounting Records and Saint Joseph County Auditor's Office
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 during 2015 to all organizations was $4,159,034. The cash balance in the County Hotel/Motel Tax Fund was $2,362,417 at December 31, 2015.
The hotel/motel tax was enacted in 1973 and the current tax rate is 6%.The tax is accounted for in a fund of the Saint Joseph County government and is administered by the 11 member Saint
Joseph County Board of Managers for Hotel-Motel Tax.Appointments to the Board of Managers are made by the Mayors of South Bend and Mishawaka and the Saint Joseph County
Commissioners.
Proceeds from the hotel/motel tax fund are budgeted and distributed annually to important economic development and tourism projects in the County.South Bend receives distributions for the
operations, maintenance and debt service of Century Center (convention center), the Cumulative Capital Development Fund (used for repayment of 1994 Century Center Bonds), repayment of a
2008 Century Center Bond and other capital projects.Hotel/Motel tax will also be used to pay the 2015 Energy Conservation Bond which was issued by the City for the energy improvements
made at the Century Center in 2015.
Centur y
Center
Fund
Cumulative
Capital Impr.
Fund
2008
Centur y Center
Bonds
City of South Bend
254
Statistical Section
Professional Sports Development (PSDA) Tax - Cash Basis
Last Ten Fiscal Years
Total PSDA%
Year Tax Change
2006 370,556$ -3.73%
2007 387,813 4.66%
2008 396,873 2.34%
2009 617,304 55.54%
2010 640,760 3.80%
2011 409,020-36.17%
2012 721,763 76.46%
2013 597,111-17.27%
2014 551,252-7.68%
2015 628,261 13.97%
Source: City Accounting Records
The PSDA taxes are collected by the Indiana Department of Revenue and are remitted on a month ly basis to Saint Joseph County which issues a check to
the City of South B end.There are currentl y four professional sports development areas in the State--South Bend,Indianapolis/Marion County,Evansville
and Ft. Wayne.
PSDA tax revenue increased in 2009 primarily due to the increase in the State of Indiana sales tax rate from 6%to 7%and the increase in local option
income taxes from.8%to 1.75%as a consequence of property tax reform.PSDA tax revenue decreased in 2011 due to dela ys in pa yments in amounts
owed by the State until 2012.The decrease PSDA tax revenues in 2014 were due to a delay in payments from the state whereas the increase in 2015 is
due to 12 months of receipts being deposited.
In prior years,PSDA tax revenue has been used to fund the College Football Hall of Fame Capital F und and the Century Center Capital Account.
Beginning in 2011,PSDA tax revenue will continue to fund the Century Center Capital Account and has also been pledged to pay debt service on 2010
Coveleski Stadium Taxable Revenue bonds in the amount of$4,980,000 issued on December 23,2010.The b ond proceeds were used to make certain
capital improvements to the City-owned facility.The operations of the minor league baseball team(South Bend Cubs)in the stadium accounts for the
majority of PSDA tax revenue earned each year.
The Professional Sports Development Area(PSDA)tax is a combination of state income tax withholding,local income tax withholding and sales tax
withholding from businesses and employees in South Bend's designated PSDA area,which includ es the College Football Hall of Fame,Century Center,
Coveleski Stadium,Morris Performing Arts Center,Palais Royale Ballroom and Studebaker National M useum.South Bend's PSDA area was formed on
November 3, 1997 and expires on December 31, 2027. PSDA capture of state sales and income taxes ends in 2018.
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dollars
Year
PSDA Tax Collections -Ten Year Trend
City of South Bend
255
Statistical Section
Cable Television Franchise Fee Collections - Cash Basis
Last Ten Fiscal Years
Total %
Year Comcast AT&T Franchise Fees Change
2006 790,111$ -$ 790,111$ 24.15%
2007 692,548- 692,548-12.35%
2008 694,387- 694,387 0.27%
2009 702,048 41,043 743,091 7.01%
2010 817,023 131,263 948,286 27.61%
2011 677,949 176,586 854,535-9.89%
2012 691,586 192,621 884,207 3.47%
2013 736,071 191,529 927,600 4.91%
2014 717,156 238,309 955,465 3.00%
2015 723,676 281,873 1,005,549 5.24%
Source: City Accounting Records
Pursuant to 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(2015-$43,000)are spent on
support of the local public access channel.
Under 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.
Debt Capacity
These schedules contain information to help the reader assess the affordability of the &LW\'s
current levels of outstanding debt and the &LW\'s ability to issue additional debt in the
future.
City of South Bend
256
Statistical Section
Computation of Legal Debt Margin
December 31, 2015
Civil City
Net Assessed Valuation (2014 pay 2015) of Taxable Property in South Bend$2,260,269,318
Debt limit: 2% of one third thereof 15,068,462
Less Bonds subject to limitation:
County Economic Development Income Tax Refunding
Revenue Bonds, Series 2006 A (860,000)
County Economic Development Income Tax Refunding
Revenue Bonds, Series 2006 B(805,000)
Economic Development Income Tax Bonds of 2015
(Parks Bond)(5,605,000)
Issuance Margin$7,798,462
Percentage of Debt to Debt Limit 48.25%
Redevelopment District
Net Assessed Valuation (2014 pay 2015) of Taxable Property in South Bend$2,260,269,318
Debt limit: 2% of one third thereof 15,068,462
Less Bonds subject to limitation:
Special Taxing District Bonds of 2014 (2,615,000)
Issuance Margin$12,453,462
Percentage of Debt to Debt Limit 17.35%
A 2%debt limit is established by the Constitution of the State of Indiana.This limit is established for general
obligation bonds,Economic Development Income Tax revenue bonds,tax revenue notes and other types of
indebtedness.This limitation does not include revenue bonds payable from governmental funds(excluding
EDIT bonds)shown in the general long term debt account group.Indiana law allows the creation of separate
municipal corporations to provide vital governmental functions.Each of these municipal corporations
(including the Redevelopment Authority and Redevelopment Commission)has its own 2%debt limit,even if
they have the same or similar boundaries.
City of South Bend
257
Statistical Section
Legal Debt Margin Information
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Civil City
Debt Limit (1)$18,901,773$20,149,048$19,840,538$17,792,583$16,356,704$15,495,323$15,599,467$15,579,379$14,731,511$15,068,462
Total Net Debt Applicable To Limit 7,367,825 6,685,000 6,105,000 5,500,000 9,850,000 8,910,000 7,650,000 6,335,000 4,970,000 7,270,000
Debt Margin 11,533,948 13,464,048 13,735,538 12,292,583 6,506,704 6,585,323 7,949,467 9,244,379 9,761,511 7,798,462
Percentage of Debt Limit 38.98%33.18%30.77%30.91%60.22%57.50%49.04%40.66%33.74%48.25%
Redevelopment District
Debt Limit (1)$18,901,773$20,149,048$19,840,538$17,792,583$16,356,704$15,495,323$15,599,467$15,579,379$14,731,511$15,068,462
Total Net Debt Applicable To Limit 5,850,000 5,580,000 5,300,000 5,010,000 4,715,000 4,085,000 4,085,001 3,405,000 3,010,000 2,615,000
Debt Margin 13,051,773 14,569,048 14,540,538 12,782,583 11,641,704 11,410,323 11,514,466 12,174,379 11,721,511 12,453,462
Percentage of Debt Limit 30.95%27.69%26.71%28.16%28.83%26.36%26.19%21.86%20.43%17.35%
(1) A 2% of net assessed value debt limit has been established by the Constitution of the State of Indiana for certain type of debt including general obligation bonds,
Economic Development Income Tax bonds and tax revenue notes. This limitation does not apply to revenue bonds payable from governmental or proprietary funds.
City of South Bend
258
Statistical Section
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
So uth Be nd South Be nd
General Total De bt Es tim ated Debt
Fisc al Obl igation Rev enu e M ortgage Note s/Lo an s Capital Revenue M ortgage No tes/Loans C ap it al Pr imary Es t imate d Per Perso na l Percent of
Year B ond s B ond s Bon ds Pay able Lease s Bonds Bon ds Payable Leases Gove rnm ent P opul atio n Ca pita In co me In co me
2006-$ 8 2,445,0 00$ 27,337,12 4$ 11,758,552$ 3,533,1 87$ 44,345,00 0$ 97 2,315$ 19,258,433$ 1,5 23,594$ 1 91,173,205$ 104,457 1,830$ 3,45 0,632,538$ 5.54%
2007- 7 8,570,0 00 25,957,83 9 7,9 00,658 7,695,4 87 73,145,000 92 6,805 18,380,491 1,1 27,394 2 13,703,674 104,069 2,053 3,51 1,183,991 6.09%
2008- 11 5,240,0 00 24,534,46 4 9,5 43,790 7,388,4 43 67,535,000 87 8,835 17,031,649 6 28,427 2 42,780,608 104,905 2,314 3,70 9,126,085 6.55%
2009- 113,975,0 00 23,061,14 8 8,4 70,308 6,21 4,206 68,225,000 82 9,020 16,145,358 893,233 2 37,813,273 106,192 2,239 3,67 9,658,9 92 6.46%
2010- 111,510,0 00 21,117,29 5 6,3 23,199 5,29 9,341 72,655,000 717,705 16,755,369 799,402 2 35,177,311 101,168 2,325 3,50 5,572,3 68 6.71%
2011- 101,472,4 31 19,724,490 4,4 31,871 7,51 0,749 88,655,000 660,510 15,542,372 1,077,642 239,075,065 101,168 2,3 63 3,37 1,120,0 96 7.09%
2 012- 96,41 0,000 17,883,530 4,9 53,639 8,33 6,120 1 17,650,000 601,470 13,848,901 3,641,3 62 263,325,022 101,168 2,6 03 3,371,120,0 96 7.81%
2 013- 90,17 2,826 23,079,781 3,0 30,554 8,77 7,238 1 18,121,963 546,973 4,121,010 3,831,9 33 251,682,278 101,168 2,4 88 3,371,120,0 96 7.47%
2 014- 84,86 2,512 21,331,548 1,617,491 8,48 1,375 1 11,209,874 480,604 3,794,664 3,307,8 02 235,085,870 101,168 2,3 24 3,371,120,0 96 6.97%
2 015- 107,81 5,890 13,904,973 4,831,752 8,491,4 07 102,871,921 5,85 1,565 3,458,899 4,4 11,042 2 51,637,449 101,168 2,487 4,03 7,513,712 6.23%
Perc ent o f Total Debt 0.0 0%42.85%5.53% 1.92% 3.37% 40.88% 2.33% 1.3 7% 1.75%100.0 0%
So urc es: City o f S outh B end Comp r ehe ns i ve A nnu al F i na ncial R ep ort s
Po pu l at ion s ta ti stics o btai ned from the U.S. C ensus Bu re au.
C i ty of South Bend es tima ted pe rsonal i ncome is comp uted as e stimated City popul at ion x 2 014 South Be nd M et ro Area Per Cap it a I ncome (see De mographic Statistics)
Governmental Activ ities B usine s s-Ty pe Activities
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20 06 20 07 2008 2009 20 10 2011 2012 20 13 20 14 2015
Governmental Activities Debt
Capit a l L eases
Notes/Lo ans Pay able
M o rtgage Bonds
Reven ue Bo nds
General O bliga ti on B on ds
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20 06 2007 20 08 2009 2 010 20 11 2012 20 13 2014 20 15
Business-Type Activities Debt
Capita l L eases
Notes/Loa ns Pa yable
Mo rtgage Bon ds
Reven ue Bon ds
City of South Bend
259
Statistical Section
Computation of Direct and Overlapping Debt
December 31, 2015
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
General Obligation Bonds
Revenue Bonds - Governmental Activities 107,815,890$ 100.00%107,815,890$
Mortgage Bonds - Governmental Activities 13,904,973 100.00 13,904,973
Notes Payable - Governmental Activities 4,831,752 100.00 4,831,752
Capital Leases - Governmental Activities 8,491,407 100.00 8,491,407
Total Direct Debt and Lease Obligation Debt 135,044,022$ 1,335$ 5.97 %3.34 %
Overlapping Debt (1)
South Bend Community School Corporation 153,498,692$ 53.34%81,876,202$
St. Joseph County Public Library 6,925,000 50.03 3,464,578
St. Joseph County Airport Authority 11,770,000 28.63 3,369,751
St. Joseph County 14,535,000 28.63 4,161,371
Penn-Harris-Madison School Corporation 49,730,365 2.71 1,347,693
Mishawaka-Penn-Harris Public Library 2,425,000 2.18 52,865
German Township 340,000 60.58 205,972
Penn Township 645,000 3.29 21,221
Total Overlapping and Underlying Direct Debt and Lease Obligations 94,499,652$ 934$ 4.18 %2.34 %
Total Direct Debt and Lease Obligation Debt and Overlapping and 229,543,674$ 2,269$ 10.16 %5.69 %
Underlying Direct Debt and Lease Obligations
Ratio Factors
Net Assessed Valuation (2014 payable 2015)2,260,269,318
Population - 2010 US Census Bureau 101,168(2)
South Bend Metropolitan Area 2014 Per Capita Income 39,909(3)
Estimated South Bend Total Personal Income (2 x 3)4,037,513,712
(1) Overlapping debt percentages are based on the net assessed value of South Bend properties in proportion to the total net assessed value.
(2) Population statistics obtained from the U.S. Census Bureau (http://factfinder.census/gov/servlet).
(3) South Bend-Mishawaka, IN Metropolitan Area Profile (www.bea.gov). Lastest information available.
City of South Bend
260
Statistical Section
Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt
To Total Governmental Fund Expenditures
Last Ten Years
Total Ratio of Debt Service
Fiscal Total Debt Governmental Fund To Governmental Fund
Year Principal Interest Service Expenditures Expenditures
2006 320,000$ 8,160$ 328,160$ 129,527,536$ 0.25%
2007- - - 128,209,220 0.00%
2008- - - 138,022,795 0.00%
2009- - - 142,962,710 0.00%
2010- - - 150,758,014 0.00%
2011- - - 172,397,679 0.00%
2012- - - 162,460,000 0.00%
2013- - - 152,889,475 0.00%
2014- - - 154,300,097 0.00%
2015- - - 172,658,733 0.00%
The City of South Bend has no General Obligation Bonds outstanding. The 1977 Studebaker Corridor bonds were paid off during 2006.
Source - City of South Bend Comprehensive Annual Financial Reports
City of South Bend
261
Statistical Section
Ratio of Net General Bonded Debt to Net Assessed Valuation and Net Bonded Debt per Capita
Last Ten Years
Percent of Net
Gross Debt Service Net GO Bonded Debt Net GO
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
2005/2006 104,457 2,835,265,890$ -$ -$ -$ 0.00%-$
2006/2007 104,069 3,022,157,147 - - - 0.00%0.00
2007/2008 104,905 2,976,080,798 - - - 0.00%0.00
2008/2009 106,192 2,668,887,419 - - - 0.00%0.00
2009/2010 101,168 2,453,505,573 - - - 0.00%0.00
2010/2011 101,168 2,324,451,862 - - - 0.00%0.00
2011/2012 101,168 2,380,874,608 - - - 0.00%0.00
2012/2013 101,168 2,371,087,697 - - - 0.00%0.00
2013/2014 101,168 2,209,726,672 - - - 0.00%0.00
2014/2015 101,168 2,260,269,318 - - - 0.00%0.00
(1) Population statistics obtained from the U.S. Census Bureau (http://factfinder.census/gov/servlet).
City of South Bend
262
Statistical Section
St. Joseph County Hotel/Motel Tax Board
Statement of Estimated Cash Flow and Debt Service Coverage
Projected 2011 B 2013 2015
Hotel/Motel Century Center Century Center Century Center Estimated
Tax Refunding Refunding Energy Conservation Total Annual Excess Estimated
Year Revenues Bonds (1)Bonds Bonds Debt Service Funds Coverage
2016 4,750,000$ 150,000$ 396,000$ 22,585$ 568,585$ 4,181,415$ 835%
2017 4,797,500 150,000 394,000 46,606 590,606 4,206,894 812%
2018 4,845,475 - 395,000 162,702 557,702 4,287,773 869%
2019 4,893,930 - 396,500 280,090 676,590 4,217,340 723%
2020 4,942,869 - 397,000 285,614 682,614 4,260,255 724%
2021 4,992,298 - 396,500 291,274 687,774 4,304,524 726%
2022 5,042,221 - 395,000 297,175 692,175 4,350,046 728%
2023 5,092,643 - 394,500 303,221 697,721 4,394,922 730%
2024 5,143,569 - 396,000 309,315 705,315 4,438,254 729%
2025 5,195,005 - 283,500 315,561 599,061 4,595,944 867%
2026 5,246,955 - 84,500 321,964 406,464 4,840,491 1291%
2027 5,299,425 - - 328,529 328,529 4,970,896 1613%
2028 5,352,419 - - 335,259 335,259 5,017,160 1597%
2029 5,405,943 - - 342,159 342,159 5,063,784 1580%
2030 5,460,003 - - 349,334 349,334 5,110,669 1563%
2031 5,514,603 - - 176,508 176,508 5,338,095 3124%
Total 81,974,856$ 300,000$ 3,928,500$ 4,167,896$ 8,396,396$ 73,578,460$ 976%
Source: Saint Joseph County Hotel/Motel Tax Board financial reports
City of South Bend Debt Schedules
(1) $150,000 paid from hotel/motel tax revenue. The balance paid from City of South Bend revenue sources.
City of South Bend
263
Statistical Section
Schedule of Revenue Bond Coverage
Water Utility Bonds
Last Ten Years
Gross Net Revenue Debt Service Requirements
Operating Operating Available for Debt
Year Revenue Expenses (1)Debt Service Principal Interest Total Coverage
2006 13,166,166$ 7,369,035$ 5,797,131$ 2,485,622$ 1,042,309$ 3,527,931$ 164%
2007 13,748,213 8,296,075 5,452,138 2,764,265 1,015,524 3,779,789 144%
2008 13,343,210 8,528,933 4,814,277 2,908,014 888,199 3,796,213 127%
2009 13,471,890 8,838,405 4,633,485 2,481,871 754,108 3,235,979 143%
2010 13,513,995 8,560,390 4,953,605 2,605,840 937,293 3,543,133 140%
2011 14,032,074 9,301,552 4,730,522 2,729,925 823,265 3,553,190 133%
2012 14,190,243 9,021,274 5,168,969 821,847 823,944 1,645,791 314%
2013 13,783,701 10,665,913 3,117,788 1,241,768 809,673 2,051,441 152%
2014 14,373,176 10,105,709 4,267,467 1,251,588 769,025 2,020,613 211%
2015 14,204,285 10,651,321 3,552,964 1,319,285 732,394 2,051,679 173%
(1) Operating expenses exclude depreciation.
Operating revenue used to make debt service payments is obtained primarily through monthly user charges to water customers.
Source - City of South Bend Comprehensive Annual Financial Report.
City of South Bend
264
Statistical Section
Schedule of Revenue Bond Coverage
Wastewater Utility Bonds
Last Ten Years
Gross Net Revenue Debt Service Requirements
Operating Operating Available for Debt
Year Revenue Expenses (1)Debt Service Principal Interest Total Coverage
2006 18,058,615$ 9,650,301$ 8,408,314$ 2,481,626$ 1,273,423$ 3,755,049$ 224%
2007 20,685,490 10,389,691 10,295,799 2,863,218 1,364,272 4,227,490 244%
2008(2)22,941,734 14,079,734 8,862,000 3,701,524 2,647,324 6,348,848 140%
2009 24,313,147 17,504,825 6,808,322 3,130,000 2,557,940 5,687,940 120%
2010 25,444,404 12,193,363 13,251,041 3,385,205 2,314,275 5,699,480 232%
2011 29,023,547 14,869,660 14,153,887 3,867,584 2,737,027 6,604,611 214%
2012 30,963,483 13,777,728 17,185,755 4,736,450 3,489,057 8,225,507 209%
2013 31,926,078 11,526,554 20,399,524 5,080,425 3,354,156 8,434,581 242%
2014 34,009,117 14,313,967 19,695,150 6,320,626 3,376,045 9,696,671 203%
2015(3)36,635,501 13,557,598 23,077,903 4,691,336 3,419,351 8,110,687 285%
(1) Operating expenses exclude depreciation.
(2) Two large Sewage Works revenue bonds were issued during 2007 with principal and interests payments beginning in 2008.
These bonds are part of the City of South Bend's long term combined sewer overflow (CSO) control plan.
(3) Sewer bonds were refunded in 2015 and the principal repayments are no included in the 2015 principal total.
Operating revenue used to make debt service payments is obtained primarily through monthly user charges to sewer customers.
Source - City of South Bend Comprehensive Annual Financial Report
City of South Bend
265
Statistical Section
Municipal Sewage Works
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capacity (MGD)48 48 48 48 48 48 48 48 48 48
Average Daily Flow 31.67 32.45 37.80 38.42 30.86 35.80 31.77 30.69 32.00 30.20
Peak Flow 50.70 60.30 75.00 68.80 62.00 72.50 63.70 62.50 68.50 57.70
Annual Flow (MG)11,559 11,845 13,835 14,024 11,264 13,068 11,596 11,203 11,677 11,023
Number of Customers - South Bend Municipal Sewage Works
Total Number
Year of Customers
2006 39,124
2007 37,018
2008 38,282
2009 36,664
2010 38,455
2011 39,027
2012 39,068
2013 39,322
2014 39,461
2015 39,763
Source: City of South Bend Environmental Services Department
City of South Bend
266
Statistical Section
Statement of City-Owned Utility Debt
December 31, 2015
South Bend Municipal Sewage Works
Sewage Works Revenue Bonds of 2010 7,530,000$
Sewage Works Revenue Bonds of 2011 18,175,000
Sewage Works Revenue Bonds of 2012 21,935,000
Sewage Works Revenue Bonds of 2013 A 9,970,000
Sewage Works Refunding Revenue Bonds of 2015 27,440,000
Total Sewage Utility Debt 85,050,000$
South Bend Municipal Waterworks
Waterworks Revenue Bonds of 2000
State Revolving Fund (SRF) Loan 698,431$
Waterworks Revenue Bonds of 2006 3,090,000
Waterworks Revenue Bonds of 2009, Series A
State Revolving Fund (SRF) Loan 352,793
Waterworks Revenue Bonds of 2009, Series B
Indiana Bond Bank 4,555,000
Waterworks Revenue Bonds of 2012 2,745,000
Waterworks Revenue Refunding Bonds of 2012, Series B 7,275,000
Total Water Utility Debt 18,716,224$
Total Utility Debt 103,766,224$
Source: City of South Bend Finance Administration
City of South Bend
267
Statistical Section
Estimated Debt Service Coverage Calculation
of Sewage Works
December 31, 2015
Operating Revenues 35,635,501$
Less: Operation and Maintenance Expenses (Net of Depreciation)(13,557,598)
Net Revenues Available for Debt Service 22,077,903
Estimated Combined Annual Debt Service 8,110,687
Coverage - $13,967,216$
Coverage - %272%
City of South Bend
268
Statistical Section
Estimated Debt Service Coverage Calculation
of Water Utility
December 31, 2015
Operating Revenues 14,204,285$
Less: Operation and Maintenance Expenses (Net of Depreciation)(10,651,321)
Net Revenues Available for Debt Service 3,552,964
Estimated Combined Maximum Annual Debt Service 2,051,679
Coverage - $1,501,285$
Coverage - %173%
City of South Bend
269
Statistical Section
Projected City of South Bend COIT Revenues
.6% COIT Tax Rate
Levy is used to Distribute COIT
Projected
St. Joseph County Projected COIT Amount
Year of Projected COIT Available For
Collection Distribution Debt Service
2016 26,435,155$ 33.52%(1)8,859,912$
2017 26,699,507 33.52%8,949,675
2018 26,966,502 33.52%9,039,171
2019 27,236,167 33.52%9,129,563
2020 27,508,528 33.52%9,220,859
2021 27,783,614 33.52%9,313,067
2022 28,061,450 33.52%9,406,198
2023 28,342,064 33.52%9,500,260
2024 28,625,485 33.52%9,595,263
2025 28,911,740 33.52%9,691,215
Total 92,705,182$
(1) Kept constant based on 2016.
Source: Department of Local Government Finance (DLGF)
City of South Bend
270
Statistical Section
Projected City of South Bend CEDIT Revenues
.4% CEDIT Tax Rate
Levy is used to Distribute CEDIT
Projected
St. Joseph County CEDIT Amount
Year of Projected Projected Available For
Collection Distribution CEDIT Debt Service
2016 23,081,049$ 39.78%(1)9,181,641$
2017 23,311,859 39.78%9,273,458
2018 23,544,978 39.78%9,366,192
2019 23,780,428 39.78%9,459,854
2020 24,018,232 39.78%9,554,453
2021 24,258,414 39.78%9,649,997
2022 24,500,999 39.78%9,746,497
2023 24,746,009 39.78%9,843,962
2024 24,993,469 39.78%9,942,402
2025 25,243,403 39.78%10,041,826
Total 96,060,283$
(1) Kept constant based on 2016.
Source: Department of Local Government Finance (DLGF)
City of South Bend
271
Statistical Section
Statement of Estimated Cash Flow and Debt Service Coverage (COIT)
Projected Redevelopment COIT First Mortgage First Mortgage
City of South Bend District Lease Rental Revenue Revenue Refunding Revenue Bonds Estimated
COIT Taxable Revenue Refunding Bonds of 2010 Bonds, Series 2012 Series 2013 Total Lease Excess Estimated
Year Revenues Bonds, Series 2010 Lease Payments Lease Payments Lease Payments Payments Funds Coverage
2016 8,859,912$ 732,604$ 673,000$ 1,572,000$ 404,155$ 3,381,759$ 5,478,153$ 262%
2017 8,949,675 720,905 675,000 1,570,000 402,480 3,368,385 5,581,290 266%
2018 9,039,171 706,650 675,000 1,564,000 395,730 3,341,380 5,697,791 271%
2019 9,129,563 - 673,000 1,562,000 398,830 2,633,830 6,495,733 347%
2020 9,220,859 - 678,000 1,567,000 396,705 2,641,705 6,579,154 349%
2021 9,313,067 - - 1,567,000 399,355 1,966,355 7,346,712 474%
2022 9,406,198 - - 1,563,000 396,780 1,959,780 7,446,418 480%
2023 9,500,260 - - 1,563,000 398,980 1,961,980 7,538,280 484%
2024 9,595,263 - - - 406,543 406,543 9,188,720 2360%
2025 9,691,215 - - - 411,493 411,493 9,279,722 2355%
2026 9,788,127 - - - 410,643 410,643 9,377,484 2384%
2027 9,886,009 - - - 414,149 414,149 9,471,860 2387%
2028 9,984,869 - - - 421,605 421,605 9,563,264 2368%
2029 10,084,717 - - - 422,742 422,742 9,661,975 2386%
2030 10,185,565 - - - 422,742 422,742 9,762,823 2409%
2031 10,287,420 - - - 427,550 427,550 9,859,870 2406%
2032 10,390,294 - - - 431,254 431,254 9,959,040 2409%
2033 10,494,197 - - - 433,925 433,925 10,060,272 2418%
2033 10,599,139 - - - 433,925 433,925 10,165,214 2443%
Total 184,405,520$ 2,160,159$ 3,374,000$ 12,528,000$ 7,829,586$ 25,891,745$ 158,513,775$ 712%
Source: City of South Bend Finance Department
City of South Bend
272
Statistical Section
Statement of Estimated Cash Flow and Debt Service Coverage (CEDIT)
Projected 2006 2014 2015
City of South Bend CEDIT Refunding St. Joseph County Parks/CEDIT Estimated
CEDIT Bonds PSAP Revenue Bond Total Lease Excess Estimated
Year Revenues Bond Payments Funds Coverage
2016 9,181,641$ 884,030$ -$ 380,106$ 1,264,136$ 7,917,505$ 726%
2017 9,273,458 439,933 183,437 390,482 1,013,851 8,259,606 915%
2018 9,366,192 - 198,966 379,107 578,073 8,788,119 1620%
2019 9,459,854 - 199,242 382,732 581,974 8,877,880 1625%
2020 9,554,453 - 199,460 381,132 580,592 8,973,861 1646%
2021 9,649,997 - 199,271 374,382 573,653 9,076,344 1682%
2022 9,746,497 - 199,423 372,557 571,980 9,174,517 1704%
2023 9,843,962 - 199,423 375,582 575,005 9,268,957 1712%
2024 9,942,402 - 199,314 368,382 567,696 9,374,705 1751%
2025 10,041,826 - 154,405 381,032 535,437 9,506,389 1875%
2026 10,142,244 - 155,363 373,232 528,595 9,613,649 1919%
2027 10,243,667 - 154,724 375,357 530,081 9,713,586 1932%
2028 10,346,103 - 155,298 377,182 532,480 9,813,623 1943%
2029 10,449,564 - 154,128 383,616 537,744 9,911,820 1943%
2030 10,554,060 - 154,172 384,038 538,210 10,015,850 1961%
2031 10,659,600 - 154,051 388,463 542,514 10,117,086 1965%
2032 10,766,197 - 153,630 387,176 540,806 10,225,390 1991%
2033 10,873,858 - 153,038 389,813 542,851 10,331,007 2003%
2034 10,982,597 - 153,582 391,781 545,363 10,437,234 2014%
2035 11,092,423 - - 593,094 593,094 10,499,329 1870%
Total 202,170,596$ 1,323,963$ 3,120,929$ 7,829,246$ 12,274,138$ 189,896,459$ 1647%
Source: City of South Bend Finance Department
City of South Bend
273
Statistical Section
Estimated Tax Increment Revenues
Erskine Village Project
Estimated 12/13 Estimated
Tax Year /Tax Net Tax Tax Increment
Collection Year Increment (1)Rate (2)Revenue
2012/2013 1,311,129$ 3.6197$ 1,311,129$
2013/2014 9,175$ -$ 9,175$
2014/2015 19,183$ -$ 19,183$
(1) The City passed back incremental assessed value for payable year 2013.
The City will make a yearly decision on the passback of incremental
assessed value. The Redevelopment Commission released TIF for
2013 pay 2014.
Source: City of South Bend Finance Department
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the &LW\'s financial activities take place.
City of South Bend
274
Statistical Section
Demographic Statistics
Last Ten Years
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 (4)(Decrease)(Millions)(Decrease)Income (3)(Decrease)Median Age (4)Enrollment (2)(Decrease)
2006 104,457-1.2%39,046$ 2.8%8,958$ 4.6%33,034$ 2.2%34.6 21,926-0.8%
2007 104,069-0.4%44,400 13.7%8,978 0.2%33,739 2.1%34.6 21,715-1.0%
2008 104,905 0.8%40,684-8.4%9,396 4.7%35,357 4.8%34.6 20,800-4.2%
2009 106,192 1.2%43,403 6.7%9,466 0.7%34,651-2.0%32.3 20,451-1.7%
2010 101,168-4.7%40,789-6.0%9,289-1.9%34,286-1.1%33.4 20,066-1.9%
2011 101,168 0.0%40,873 0.2%9,768 5.2%33,322-2.8%33.3 19,467-3.0%
2012 101,168 0.0%40,873 0.0%9,768 0.0%33,322 0.0%33.3 18,982-2.5%
2013 101,168 0.0%40,873 0.0%10,162 4.0%38,152 14.5%33.3 19,680 3.7%
2014 101,168 0.0%34,656-15.2%12,740 25.4%39,909 4.6%33.9 19,308-1.9%
2015 101,168 0.0%34,656 0.0%12,740 0.0%39,909 0.0%34.0 18,680-3.3%
Sources:
Population statistics are obtained from the U.S. Census Bureau population estimate table.
Effective Buying Income statistics come from "Survey of Buying Power", Sales and Marketing Management, Annual editions, 1992-2003.
Unemployment and labor force statistics are estimated figures obtained from the Work force Development Services. These are based on
South Bend being a Metropolitan Statistical Area. This is defined as a county or group of contiguous counties with a total
population of at least 100,000. The area must also contain at least one city with a population of 50,000 or more.
(4) U.S. Census Bureau (http://factfinder2.census.gov). 2015 information not available for Median Family Income.
(3) South Bend-Mishawaka, IN_MI Metropolitan Area Profile (www.bea.gov/). 2015 information not available.
(2) South Bend Community School Corporation Administration office for enrollment on October 1, 2015.
(1) U.S. Census Bureau 2010 Census information (http://factfinder2.census.gov). No 2015 information available.
City of South Bend
275
Statistical Section
Demographic Statistics (Continued)
Last Ten Years
December December December
South Bend South Bend South Bend
Metropolitan Percent Metropolitan Percent Metropolitan
Area Labor Increase/Area Increase/Unemployment
Year Force (1)(Decrease)Unemployment (1)(Decrease)Rate (1)
2006 134,651 0.5%6,501-6.5%4.8%
2007 132,693-1.5%6,291-3.2%4.7%
2008 133,433 0.6%12,476 98.3%9.4%
2009 123,792-7.2%13,474 8.0%10.9%
2010 125,853 1.7%12,648-6.1%10.0%
2011 129,438 2.8%12,366-2.2%9.6%
2012 124,968-3.5%12,108-2.1%9.7%
2013 124,145-0.7%9,211-23.9%7.4%
2014 125,693 1.2%8,017-13.0%6.4%
2015 130,912 4.2%6,538-18.4%5.0%
Source:
(1) South Bend-Mishawaka, IN_MI Metropolitan Area Profile (http://www.stats.indiana.edu).
"Labor Force Overview" employment statistics annual averages.
City of South Bend
276
Statistical Section
Employment by Type and Industry
Last Ten Years
Description 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 **
Total employment 173,180 173,782 174,814 172,488 163,879 162,658 165,560 164,605 164,832 166,972
By Type
Wage and salary employment 147,110 147,207 147,123 144,979 135,940 134,905 137,218 136,839 136,543 138,653
Proprietors employment 26,070 26,575 27,691 27,509 27,939 27,753 28,342 27,766 28,289 28,319
Farm proprietors employment 1,391 1,332 1,350 1,333 1,330 1,339 1,340 1,294 1,292 1,303
Nonfarm proprietors employment 24,679 25,243 26,341 26,176 26,609 26,414 27,002 26,472 26,997 27,016
By Industry
Farm employment 2,065 1,961 1,966 1,841 1,866 1,883 1,977 1,909 1,943 1,686
Nonf arm employme nt 171,115 171,821 172,848 170,647 162,013 160,775 163,583 162,696 162,889 165,286
Pri v a te nonfarm empl oyment 152,969 153,648 154,753 152,421 143,674 142,492 145,406 145,406 146,107 148,724
Forestry, fishing, and related activities(D)(D)181(D)(D)236 260 295 288(D)
M ini ng(D)57 56 99 103 183 156 192 206(D)
Utilities(D)(D)(D)(D)(D)(D)(D)(D)(D)(D)
Construction 9,524 9,311 9,053 9,079 7,813 6,816 6,805 6,535 6,780 6,797
M a nufacturing 21,917 20,962 20,376 19,328 16,503 16,266 17,601 17,650 17,120 17,619
Wh olesale trade 7,991 8,320 8,147 7,921 7,015 7,122 7,225 7,078 6,880 7,035
Reta il trade 20,078 20,001 20,050 19,011 17,946 17,498 17,654 17,472 17,413 17,563
Tra nsp ortation and w a reh ousing(D)(D)(D)(D)(D)4,139(D)(D)(D)(D)
Information 2,679 2,648 2,641 2,525(D)2,165 2,029 2,049 2,221 2,201
Finance a nd insurance 6,513 6,744 6,873 6,945 6,874 6,692 6,894 6,673 6,142 6,091
Rea l estate and rental a nd leasing 5,633 5,603 5,709 5,542 5,188 4,936 5,088 4,883 4,980 5,050
Professional, scientific, and technical services 7,238 7,558 7,784 7,736 7,713 7,627 7,573 7,495 7,997 7,950
Mana gement of compani es and enterprises 902 924 1,113 1,235 1,256(D)(D)1,484 2,130 2,234
Admini strative and waste management services 8,254 8,892 9,419 8,973 7,967 8,413 8,283 7,843 7,641 8,079
Educational services 12,645 12,677 12,870 13,251 13,055 13,169 13,730 14,096(D)(D)
Health care and social assistance 18,427 19,690 20,072 20,259 20,818 20,239 21,208 21,854(D)(D)
Arts, entertainment, and recreation 2,674 2,777 2,850 2,809 2,603 2,577 2,743 2,716 2,796 2,687
Accommodation and food services 11,329 11,343 11,335 11,627 10,925 11,010 11,557 11,795 12,157 12,359
Other services, except public administration 10,100 10,118 10,296 10,118(D)9,704 10,001 10,039 10,101 10,315
Government and government enterprises 18,146 18,173 18,095 18,226 18,339 18,283 18,177 17,290 16,782 16,562
Federal, civilian 1,251 1,243 1,236 1,223 1,241 1,265 1,091 1,071 1,009 962
Military 947 1,019 995 1,003 1,013 1,003 1,043 1,007 990 1,009
State and local 15,948 15,911 15,864 16,000 16,085 16,015 16,043 15,212 14,783 14,591
State government 3,055 3,108 3,069 3,188 3,350 3,434 3,535 3,457 3,265 3,036
L ocal government 12,893 12,803 12,795 12,812 12,735 12,581 12,508 11,755 11,518 11,555
Source: Bureau of Local Economic Analysis (www.bea.gov)
(D) - information not shown on the BEA website to avoid disclosure of confidential information but estimates are included in the totals
** 2014 is the most recent year available as of the date of publication of this information.
City of South Bend
277
Statistical Section
Comparison Growth Rates in Personal Income for St. Joseph County
The State of Indiana and U.S. Personal Income
Last Ten Years
Amount in Amount in
Millions Billions Annual Percentage Increase
St. Joseph Co.Indiana U.S.St. Joseph Co.Indiana U.S.
Calendar Personal Personal Personal Personal Personal Personal
Year Income Income Income Income Income Income
2006 8,958$ 203,502$ 10,968$ 4.59%5.25%6.65%
2007 8,978 204,877 11,074 0.22%0.68%0.97%
2008 9,396 210,447 11,634 4.66%2.72%5.06%
2009 9,466 220,670 12,225 0.74%4.86%5.08%
2010 9,289 218,527 12,168 -1.87%-0.97%-0.47%
2011 9,678 232,586 12,949 4.19%6.43%6.42%
2012 10,162 249,198 13,729 5.00%7.14%6.02%
2013 10,132 253,779 14,211 -0.30%1.84%3.51%
2014 12,740 253,779 13,977 25.74%0.00%-1.65%
2015 *12,740 275,348 15,545 0.00%8.50%11.22%
6.93%4.78%5.10%
4.28%3.71%4.57%
Source
Bureau of Economic Analysis US Department of Commerce Bearfacts (www.bea.gov)
* 2015 information not available for St. Joseph County.
Average Annual Growth - Most Recent 5 Years
Average Annual Growth - Most Recent 10 Years
City of South Bend
278
Statistical Section
Principal Employers - Current and Nine Years Ago
December 31, 2015
2015 2006
Number of Percent Number of Percent
Employer Type of Business Employees of Total Rank Employees of Total Rank
Beacon Health System Health Care 6,913 5.66%1 3,600 2.67%2
University of Notre Dame College/University 5,590 4.58 2 4,200 3.11 1
South Bend Community School Corp Public Schools 2,880 2.36 3 3,338 2.47 3
AM General Corporation Manufacturing/Assembly 2,858 2.34 4 2,292 1.70 5
Trinity Health/St. Joseph Regional Medical Center Health Care 2,597 2.13 5
Honeywell Aerospace Aerospace Manufacturing 1,499 1.23 6
Indiana University South Bend College/University 1,445 1.18 7 1,400 1.04 8
City of South Bend Government 1,098 0.90 8 1,288 0.95 9
St. Joseph County Government 1,068 0.87 9 2,025 1.50 6
Schurz Communication, Inc.News and Information 1,000 0.82 10
The Diocese of Fort Wayne/South Bend Parochial Schools 1,750 1.30 7
Madison Center Health Care 1,239 0.92 10
Total Number of Employees 26,948 22.08%17,532 13.00%
Total Employees - South Bend Metropolitan Area Labor Force 122,074 100.00%134,889 100.00%
Source:
St. Joseph County Chamber of Commerce 2015 Economic Profile
South Bend-Mishawaka, IN_MI Metropolitan Area Profile (http://www.stats.indiana.edu). "Labor Force Overview" employment statistics annual averages.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how
the information in the &LW\'s financial report relates to the services the &LW\ provides and the
activities it performs.
City of South Bend
279
Statistical Section
Operating Indicators by Function/Program
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Function/program
Police
Physical arrests 5,932 4,589 4,091 3,785 3,077 3,626 3,174 2,959 2,608 2,483
Parking violations 515 1,820 1,672 1,479 979 904 1,051 1,019 299 691
Traffic violations 16,583 1,626 5,901 11,746 14,163 4,236 7,561 2,180 1,487 4,327
Fire
Emergency responses 14,297 14,822 15,123 14,341 15,578 15,408 15,720 15,865 15,902 15,340
Fires extinguished 227 279 264 264 225 251 214 220 227 213
Inspections 4,875 4,302 4,467 4,205 4,233 3,553 3,325 2,273 3,133 3,778
Refuse collection
Refuse collected (tons per day) (1)269 267 137 70 120 123 128 122 128 149
Other public works
Street resurfacing (miles)15.00 16.50 14.70 14.50 20.30 18.10 16.90 21.00 22.00 17.10
Potholes repaired (tonnage)239.88 923.00 898.00 629.22 380.00 332.32 117.21 691.00 826.25 526.05
Parks and recreation
Athletic field permits issued 700 1,000 738 700 381 227 133 93 120 113
Fitness Center Admissions 61,452 63,088 70,193 74,438 60,118 67,408 61,002 63,671 67,428 64,547
Water
New billable housing starts 471 321 299 194 179 144 160 242 141 108
Water mains breaks 54 105 72 87 76 60 66 80 134 99
Average daily consumption 17,704 19,042 18,280 16,100 15,955 15,600 16,600 15,300 11,000 14,500
(thousands of gallons)
Wastewater
Average daily sewage treatment 32,800 35,970 37,800 41,200 30,861 35,800 31,770 30,690 31,991 30,200
(thousands of gallons)
Sources: Various city departments
(1) 2007 and prior years were in cubic yards
Fiscal Year
City of South Bend
280
Statistical Section
Capital Asset and Infrastructure Statistics by Function/Program
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Function/program
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 25 25 25 25 25 19 19 19 19 19
Fire
Stations 11 11 11 11 11 11 11 11 11 11
Training Center 0 0 0 0 0 0 0 0 1 1
Rescue units 31 32 32 33 33 33 33 33 33 33
Refuse collection
Collection trucks 22 22 22 21 23 23 19 19 19 19
Other public works
Streets (miles)500 500 500 532 532 499 525 525 525 525
Streetlights 1,060 1,170 1,242 2,500 2,500 2,500 2,700 2,700 3,000 3,015
Traffic signals 167 160 160 162 162 164 165 167 162 158
Parks and recreation
Acreage 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292
Playgrounds 47 47 47 47 47 47 47 47 47 47
Baseball/softball diamonds 26 27 27 27 27 27 27 27 27 27
Soccer/football fields 17 17 17 17 17 17 19 19 19 19
Swimming pools 2 2 2 2 2 2 2 2 2 2
Community center 5 5 5 5 5 5 5 5 3 3
Water
Water mains (miles)553 558 560 560 580 582 583 584 583 583
Fire hydrants 5,013 4,000 5,081 5,317 5,345 5,377 5,401 5,436 5,448 5,439
Storage capacity (thousands of gallons)17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300
Wastewater
Sanitary sewers ( miles)540 540 540 534 534 534 528 526 527 527
Storm sewers (miles)200 200 200 200 127 127 133 133 133 133
Treatment capacity (thousands of gallons)48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000
Sources: Various city departments
Fiscal Year
City of South Bend
281
Statistical Section
New Construction - Number of Permits and Property Values
Last Ten Fiscal Years
(Dollar Amounts in 000’s)
Public
Residential Residential Commercial Commercial Public Utility Manufacturing Manufacturing Total Value
Number of Value Number of Value Utility Number Value Number of Value Total Value Increase/
Year Permits(in 000's)Permits(in 000's)of Permits(in 000's)Permits(in 000's)(in 000's)(Decrease)
2006 102 17,241 21 36,749 2,282 34,836 2 7,927 96,753 -2.4%
2007 103 18,314 28 27,082 1,907 28,720 5 6,612 80,728 -16.6%
2008 55 10,032 15 44,678 1,662 29,685 1 2,416 86,811 7.5%
2009 48 8,467 10 29,451 1,627 28,785 - - 66,703 -23.2%
2010 35 7,450 5 28,283 1,221 25,998 - - 61,731 -7.5%
2011 33 6,300 14 10,737 880 20,265 1 2,023 39,325 -36.3%
2012 45 9,827 11 21,247 - - 2 2,291 33,365 -15.2%
2013 50 15,136 8 4,954 - - 1 160 20,250 -39.3%
2014 51 13,101 12 10,392 - - - - 23,493 -29.6%
2015(1)77 18,615 70 415,219 - - 6 28,460 462,294 2182.9%
Source - Consolidated City/County Building Department
(1) - Increase in commercial construction due to major construction taking place at the University of Notre Dame.
City of South Bend
282
Statistical Section
Full-Time Equivalent City Government Employees by Department
Last Ten Fiscal Years
Department 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General Government
Mayor's Office 10.00 10.00 9.00 8.00 7.00 7.00 6.00 6.00 7.00 7.00
City Clerk's Office 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Common Council (elected officials, part-time)9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00
Administration and Finance 32.00 31.00 29.00 26.00 26.00 27.00 22.00 20.00 21.00 18.00
Legal Department 15.00 15.00 15.00 9.00 9.00 9.00 9.00 10.00 10.00 12.00
Engineering 19.00 18.50 18.50 16.00 19.00 17.00 15.00 13.00 14.00 16.00
311 Call Center- - - - - - - 5.00 7.00 7.00
Safety and Risk- - - - - - 3.00 3.00 3.00 2.00
Human Rights- - - - - - 6.00 6.00 6.00 6.00
Public Safety
Police Department 317.00 320.00 317.00 279.00 293.00 293.00 291.00 291.00 295.00 300.00
Communication Center 31.00 30.00 30.00 37.00 38.00 35.00 35.00 33.00 34.00 0.00
Fire Department 255.00 254.00 254.00 246.00 255.00 258.00 249.00 255.00 257.00 259.00
Building Maintenance 7.00 7.00 7.00 4.00 3.00 3.00- - - -
Culture and Recreation
Parks and Recreation (2)122.00 122.00 121.00 111.00 113.00 114.00 114.00 113.00 87.00 88.00
Convention and Events Management (1)49.00 16.00 15.00 13.00 13.00 14.00 14.00 14.00 14.00 14.00
Economic Development
Department of Community Investment 42.00 35.00 33.00 26.00 26.00 25.00 24.00 26.00 25.00 25.00
Highways and Streets
Street Department 66.00 54.00 54.00 51.00 52.00 56.00 52.00 60.00 59.00 53.00
Traffic & Lighting 11.00 11.00 11.00 6.00 0.00 0.00 0.00 0.00 0.00 0.00
Enterprise Funds
Water Works 86.00 86.00 80.00 82.00 75.00 74.00 73.00 70.00 68.00 67.00
Wastewater 53.00 54.50 56.50 48.00 51.00 49.00 46.00 45.00 42.00 43.00
Organic Resources (formerly in Wastewater)- - - - - - 6.00 6.00 6.00 6.00
Sewer 29.00 28.00 28.00 33.00 35.00 36.00 39.00 34.00 33.00 30.00
Solid Waste 31.00 26.00 26.00 26.00 26.00 23.00 24.00 26.00 22.00 21.00
Building Department 22.00 22.00 22.00 15.00 13.00 13.00 13.00 14.00 13.00 13.00
Code Enforcement (formerly General Gov't)28.00 27.00 27.00 27.00 23.00 25.00 25.00 24.00 23.00 23.00
Internal Service Fund
Central Services 49.00 49.00 46.00 39.00 41.00 41.00 42.00 43.00 38.00 36.00
Total Positions 1,288.00 1,230.00 1,213.00 1,116.00 1,132.00 1,133.00 1,122.00 1,131.00 1,098.00 1,060.00
City of South Bend
283
Statistical Section
Full-Time Equivalent City Government Employees by Department (Continued)
Last Ten Fiscal Years
Department 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Summary by Activity
General Government 90.00 88.50 85.50 73.00 75.00 74.00 75.00 77.00 82.00 82.00
Public Safety 610.00 611.00 608.00 566.00 589.00 589.00 575.00 579.00 586.00 559.00
Culture and Recreation 171.00 138.00 136.00 124.00 126.00 128.00 128.00 127.00 101.00 102.00
Economic Development 42.00 35.00 33.00 26.00 26.00 25.00 24.00 26.00 25.00 25.00
Highways and Streets 77.00 65.00 65.00 57.00 52.00 56.00 52.00 60.00 59.00 53.00
Enterprise Funds 249.00 243.50 239.50 231.00 223.00 220.00 226.00 219.00 207.00 203.00
Internal Service Fund 49.00 49.00 46.00 39.00 41.00 41.00 42.00 43.00 38.00 36.00
Total Positions 1,288.00 1,230.00 1,213.00 1,116.00 1,132.00 1,133.00 1,122.00 1,131.00 1,098.00 1,060.00
Excludes seasonal, part-time and temporary positions
(1) Includes red uction of 34 posi tions in th e City's conventi on facility (Century Center) during 2007. Century Center is being managed by a private company under an agreement
with the City of South Bend.
(2) Potawatomi Zoo employees (33) became employees of the Potawatomi Zoological Society through a public-private partnership as of January 1, 2014.
Source: City of South Bends Performance Based Budgets and personnel records
0.0 0
200.00
400.00
600.00
800.00
1,0 00.00
1,2 00.00
1,4 00.00
Summary of Employees by Activity
Total Positions
Public Safety
Enterprise Funds
Culture and Recreation
General Go vern ment
Highways a nd Streets
Internal Ser vice Fund
Economic Development
City of South Bend
284
Statistical Section
Salary Rate Comparison
1990 - 2015
-----1st Class Patrol Officer----- ---1st Class Fire Fighter---
Year Percent Base Salary Percent Base Salary Non-bargaining Teamsters
1990 3.62%20,071$ 4.74%19,869$ 3.00-4.00%.25 per hour
1991 0.92%20,256 2.52%20,369 3.00%.25 per hour
1992 4.69%21,206 2.45%20,869 3.00%.30 per hour
1993 0.44%21,300 5.00%21,912 4.24%0.00%
1994 2.35%21,800 0.00%21,912 1.50% + $300 bonus.15 per hour
1995 4.82%22,850 3.00%22,569 1.50% + $300 bonus.30 per hour
1996 4.38%23,850 5.00%23,697 3.00%.27 per hour
1997 4.19%24,850 4.87%24,850 3.00%.33 per hour
1998 4.63%26,000 0.60%25,000 3.00%.37 per hour
1999 3.85%27,000 2.60%25,650 3.25%3.50%
2000 5.56%28,500 9.34%28,045 3.50%3.50%
2001 9.74%31,275 11.52%31,275 3.50%4.00%
2002 4.50%32,682 4.03%32,534 4.00%4.00%
2003 5.57%34,504 4.04%33,850 4.00%4.00%
2004 6.01%36,578 5.17%35,600 4.00%4.00%
2005 9.36%40,000 12.36%40,000 4.00%4.00%
2006 2.50%41,000 2.00%40,800 2.00%4.25%
2007 2.50%42,025 2.50%41,820$750/0%.38 per hour
2008 3.50%43,496 3.50%43,285 3.00%3.00%
2009 2.20%44,453 2.00%44,150 2.00%2.00%
2010 0.00%44,453 6.80%47,150 2.00%2.00%
2011 11.50%49,563 4.06%49,066 2.00%0.00%
2012 2.00%50,554 2.00%50,047 2.00%2.00%
2013 2.50%51,818 3.00%51,550 2.00%2.00%
2014 2.50%53,113 3.00%53,100 2.00%2.00%
2015 2.20%54,281 2.20%54,268 2.00%2.00%
Source - City of South Bend personnel records
City of South Bend
285
Statistical Section
Insurance Coverage
2015
Limits of Estimated
Type of Coverage Liability Annual Premium
LIABILITY
Comprehensive General Liability Statutory Self-Insured
Police Professional Liability Statutory Self-Insured
Ambulance Malpractice Liability Statutory Self-Insured
Premises Liability Statutory Self-Insured
(Clay Utilities, Century Center,
Parking Garages)
CGL - Stadium Statutory Self-Insured
Liquor Liability 4/26/15 - 16$1,000,000$1,739
CRIME
Public Employee Dishonesty 12/31/15 - 16$1,000,000$9,374
PROPERTY 7/1/15 - 16
All risk blanket building & contents$637,392,067$406,974
Business Income Included in above Included in above
Machinery Breakdown Included in above Included in above
Fine Arts Included in above Included in above
Valuable Papers & Records Included in above Included in above
Contractors Equipment Included in above Included in above
Flood Insurance - Pump station & contents 1/15/15 - 16$670,000$6,557
Eddy Street Commons Parking Garage 3/2/15 - 16
Building & Infrastructure$36,000,000$26,115
Business Income & Rental Value$15,000,000 Included in above
Flood$25,000,000 Included in above
Earthquake$25,000,000 Included in above
OTHER 1/1/15 - 16
Workers Compensation Statutory Self-Insured
Third Party Fee Statutory$50,000
Excess Over Self-insured Statutory$116,315
$250,000 Retention Each Accident
Source: City of South Bend Administration & Finance Department
Gibson Insurance Company
City of South Bend
286
Statistical Section
Financial Institutions
Last Ten Years
(Amounts in 000’s)
Percent
Banks Savings and Loans Credit Unions Increase/
Year Branches Deposits Branches Deposits Branches Deposits Total Deposits(Decrease)
2006 35$2,054,972 5$89,039 24$1,857,323$4,001,334 4.1%
2007 35 2,183,105 5 86,561 24 1,975,374 4,245,040 6.1%
2008 40 2,184,092- - 24 2,699,677 4,883,769 15.0%
2009 40 2,443,390- - 23 2,914,347 5,357,737 9.7%
2010 40 3,108,702- - n/a 2,410,711 5,519,413 3.0%
2011 39 3,342,964- - n/a 2,474,034 5,816,998 5.4%
2012 40 3,201,888- - n/a 2,735,212 5,937,100 2.1%
2013 37 3,730,018- - n/a 2,854,527 6,584,545 10.9%
2014 39 2,548,101- - n/a 2,911,596 5,459,697-17.1%
2015 40 2,454,129 1 25,077 n/a 3,089,732 5,568,938 2.0%
Banks Credit Unions
1st Source Bank$1,266,255 51.60%Teacher's Credit Union$2,142,189 69.33%
Key Bank 447,325 18.23%Notre Dame Federal Credit Union 416,747 13.49%
Wells Fargo 249,367 10.16%Community Wide Credit Union 301,724 9.77%
Others 491,182 20.01%AAA Federal Credit Union 50,281 1.63%
Total$2,454,129 100.00%Policemen's Federal Credit Union 47,540 1.54%
Others 131,251 4.25%
Total$3,089,732 100.00%
n/a - information is not available
Bank of America closed operations in South Bend prior to June 30, 2014 reducing total bank deposits.
Sources:
Federal Deposit Insurance Corporation Website (www.fdic.gov). Summary of Deposits, Deposits Market Share Report, Indiana,
St. Joseph County, South Bend, Run Report.
National Credit Union Association Website (www.ncua.gov). Custom Query, Search Fields, State = Indiana, Total Shares
Greater than 1, City = South Bend or Notre Dame. Check data for CU name and total amount of shares and deposits.
City of South Bend
287
Statistical Section
Miscellaneous Statistics
December 31, 2015
2014 2015 2014 2015
Authorized Officers 260 260 Traffic Signals 162 158
Vehicles 388 394 Street Lights (City maintained)3,000 3,015
Special Officer Groups:Miles of Streets 525 525
K-9 Patrols 8 8 Miles of Sidewalks 695 695
SWAT Team 17 17 Miles of Alleys 398 398
Metro Drug Task Force (of 20 total)13 12 Miles of Sanitary Sewers and Storm Drains 660 690.16
NEST - Special Neighborhood Unit 7 7 City Owned Vehicles & Related Units 1,195 1,185
Motorcycle Patrol Officers 5 5 Trash Picked Up Per Week (in tons)519/wk 596/wk
Bomb Squad 3 5
Crime Prevention Officers 4 4
Sign Shop
Crime Data:
2014 2015
Murders 17 17 Work orders for sign maintenance,
Rapes 98 88
installation or removal 2,169 2,380
Robbery 341 350 Miles of yellow and white paint 160 275
Aggravated Assault 235 285 Pre-formed plastic arrows used for
Residential Burglary 911 943 street markings 169 196
Non-residential Burglary 311 487 Crosswalk painting at intersections 229 436
Larceny 3,190 3,612 Turn arrows in turn lanes 0 0
Auto Theft 332 368 Detour routes 62 50
Arson 30 34 Temporary No Parking postings 584 630
Calls for Service 89,428 97,164 Built Portables 0 0
Dispatches 89,428 97,164 Railroad Crossings 4 7
Miles Driven 3,321,136 3,252,664 Special Signs Built 1,124 2,165
Arrests 2,608 2,483
Barricades set up for events (# of events):153 185
Fire Department Block Parties 24 36
Paid Department established 1887
2014 2015
Sworn Firefighters
(51 of which are Paramedics)251 251
Fire Apparatus 20 20 2014 2015
Hazardous Materials Truck 1 1 Customers 39,461 39,763
Reserve Pumper Trucks 3 3 Dry Tons of Sludge produced per year 2,645 2,528
Reserve Ladder Trucks 2 2 Miles of Sanitary Sewer Lines 527 527
River Rescue Boats 3 3 Miles of Storm Sewer Lines 133 133
Ambulances 7 7
Neonatal (Newborn) Units 3 3 Water Utility
Fire Runs 3,326 3,234 2014 2015
Ambulance Runs 13,317 13,967 Customers/Meters 40,091 40,377
Irrigation Customers 2,827 2,823
Wells/Pumps in service 30 30
Pumping Capacity 60 m.g.d.60 m.g.d.
Daily Consumption 14.7 m.g.d.14.5 m.g.d.
Peak Demand 22.8 m.g.d.24.9 m.g.d.
Miles of Distribution Systems 583 583
Fire Hydrants 5,448 5,439
Sewer Utility
Department of Public WorksPolice Department
City of South Bend
288
Statistical Section
Miscellaneous Statistics
December 31, 2015
South Bend International Airport Convention Facilities
Passenger Century Center 75,000 square feet of
Year Volume exhibit space
2006 729,619 2,590 available seating
2007 779,356 750 seat theater
2008 704,418 Morris Performing
2009 625,077 Arts Center 2,500 available seating
2010 626,597
2011 599,127 Hotels/Motels 41 motels/hotels
2012 589,030 4 Bed and Breakfasts
2013 629,287 Over 4,000 available rooms
2014 602,555
2015 628,600 Major hotels and meeting rooms:
Double Tree facilities to seat 300
The South Bend International Airport had 34,913 take-offs Hilton Garden Inn facilities to seat 600
and landings during 2015. Approximately 36 commercial The Morris Inn facilities to seat 300
airline flights per day fly nonstop to 10 airports. Waterford Estates Lodge facilities to seat 600
Commercial airlines with operatio ns at South Bend Health Care
International Airport (market share):
2014 2015 The City of South Bend has excellent health care access
Allegiant Air 32.01%31.07%at costs below the national average and the lowest in the
Delta Connection 44.34%45.34%Midwest region. The City has one major hospital:
United Express 21.95%21.38%
Charters/Nonscheduled 1.70%2.21%Memorial Health Systems 526 beds
Total 100.00%100.00%
Communications
Bus Passengers (to O'Hare/Midway)37,315 34,394 Access to:
Train Passengers (South Shore)251,426 246,021 4 Major Television Networks (WNDU, WSJV, WSBT, WBND)
1 Public Broadcasting Television Station (WNIT)
2 Local Television Stations (WHME, WMWB)
Transpo 1 Major Newspaper (The South Bend Tribune)
South Bend Public Transportation Corporation 25 Radio Stations
2014 2015
Motor Bus (Fixed Route)Famous Residents
Route Miles 286.8 287.0
Ridership 2,188,951 1,873,416 South Bend has been the home to the many distinguished
Miles of Service 1,362,052 1,341,234 individuals including the following persons:
Revenue Miles 1,252,888 1,271,031
Demand Response (ACCESS)Schuyler Colfax, 17th U.S. Vice President
Ridership 61,828 66,604 John Fogerty, singer
Total Miles 326,381 365,787 Michael Warren, actor
Revenue Miles 293,667 327,563 Chad Everett, actor
Sidney Pollack, actor/director
Other Transportation Knute Rockne, football coach
John Wooden, basketball coach
43 Trucking Lines, 33 Terminals Joe Kernan, former South Bend Mayor and Indiana Governor
4 Interstate Bus Lines Ryan Newman, racecar driver
4 Major Rail Systems (freight and passenger)Skylar Diggins, woman's basketball player
Colleges and Universities Other
Universities and Colleges- Incorporated in 1865
2014 2015- County Seat of St. Joseph County
University of Notre Dame 12,124 12,292- South Bend officially began under the name South Hold but the
Indiana University at South Bend 7,859 7,574 name was changed by the Post Office in 1830 to avoid confusion
Bethel College 1,800 1,600 with other communities that used that name. The name South
St. Mary's College 1,519 1,570 Bend was used because the City is located at the southernmost
Holy Cross College 525 530 point of the St. Joseph River.
Trine University - South Bend 161 78- Average High Temperature:
Brown Mackie College - South Bend 434 340 January 31 degrees Fahrenheit
Purdue University South Bend 200 200 July 83 degrees Fahrenheit
Technical Colleges
2014 2015
IVY Tech Community College 3,783 3,214
Enrollment
Enrollment
UNEMPLOYMENT DROPPED
A 29% REDUCTION
5.5%
IN DEC ‘15
7.7%
IN JAN ’15
City Legal updated South Bend’s contracting policy
to expand protections for all community members of
every race, gender, or sexual orientation and identity
PROTECTIONS FOR ALL COMMUNITY MEMBERS
Smart Sewers prevented 500 million gallons
of sewage entering the river in 2015
70% REDUCTION
$178,793,982
INVESTED IN SOUTH BEND CONSTRUCTION IN 2015 an 112%
INCREASE OVER 2014 Placing South Bend in the
TOP 5 Indiana Second Class
cities for fiscal strength
BOND RATINGAA
$5,600,000
BOND REFINANCING
WILL SAVE TAX PAYERS
SOUTH BEND’S POPULATION
EXPERIENCED ITS LARGEST 1-YEAR EXPANSION IN 20 YEARS
Invested in the City’s west side, in addition to $500,000 of
public and private investment for 14 west side projects
selected under the façade matching grant program
$4.3 MSOUTH BEND’S SMART STREETS
South Bend has ended the crisis of
collapsing houses, now we look
to new opportunities to reuse and
redevelop some of our vacant land
ABANDONED HOUSES
1,122 TOOK ACTION ON
INCLUDING 433 HOUSES REPAIRED
$164 M OF PRIVATE
INVESTMENT
WILL CREATE 900 JOBS
DOWNTOWN WILL SEE THE ADDITION OF OVER 300 NEW RESIDENTIAL UNITS,
INCLUDING 300 NEW HOTEL ROOMS IN 2016
The Former College Football
Hall of Fame will become
a Courtyard by Marriott
MAKEOVERS FOR TWO OF SOUTH BEND’S MOST ICONIC BUILDINGS:
The Former Chase Tower
will become an Aloft
hotel and residences &
took
142,313
calls in 2015
The City’s resident service line is on track
to receive its 500,000 in June
In 2015, South Bend neighborhoods saw
34,019
NEW linear ft of sidewalk
13,927
NEW linear f of curb &
The City passed an ordinance in 2015
that added food trucks to the list of
allowable businesses—and a real-time
food truck tracker bit.ly/sbftt
BROUGHT STREET LIGHTS TO PARTS OF
THE CITY WITHOUT ADEQUATE COVERAGE
LIGHT UP SOUTH BEND
in Riley High School area
bringing the program total to 14670 NEW LIGHTS
SOUTH BEND BY THE NUMBERS
COMPREHENSIVE ANNUAL FINANCIAL REPORT | FISCAL YEAR ENDING ON DECEMBER 31, 2015
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
REPORT PREPARED BY THE CITY OF SOUTH BEND DEPARTMENT OF ADMINISTRATION AND FINANCE
FISCAL YEAR ENDING ON DECEMBER 31, 2015
CITY OF SOUTH BEND, INDIANA