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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 i 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 ii 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. iii 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. iv 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): v 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). vi 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. vii 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. viii 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. ix 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. x 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. xi 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 xii 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 S A TO: THE Report on W type activ (City), as which coll Managem M accordanc design, im of financia Auditor's O conducted and the st Comptroll obtain rea A in the fina assessme making th fair prese circumsta control. 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The p s of material m ssments, the financial stat t for the purpo we express no ed and the rea he overall pre at the audit ev based on th respective fina he aggregate financial pos with accountin DIANA Y EMPLOYER NDEPENDENT Y OF SOUTH nts panying finan d the aggreg December 31 's basic finan r the Financia for the prepa es generally a nance of inter from materia ress opinions with auditing st ncial audits co States. Those whether the g procedures t procedures se misstatement o auditor consid tements in or ose of expres o such opinion asonableness esentation of t idence we ha e audit, the fi ancial position remaining fun sition and, wh ng principles R T AUDITOR'S H BEND, ST. J cial statemen ate remaining 1, 2015, and cial statemen al Statement ration and fai accepted in th rnal control re al misstateme s on these fin tandards gene ontained in G e standards r financial state to obtain audit elected depe of the financia ders internal c rder to design ssing an opini n. An audit als s of significant the financial s ave obtained is inancial state n of the govern nd information here applicab generally acc S REPORT JOSEPH CO nts of the gove g fund inform the related no nts as listed in ts r presentation he United Sta elevant to the p nt, whether d nancial statem erally accepte Government Au require that w ements are fr t evidence ab nd on the au al statements, control releva n audit proced ion on the eff so includes ev t accounting e statements. s sufficient an ements referre nmental activi n of the City, a ble, cash flow cepted in the STAT 302 WE INDIANA Te F We OUNTY, INDIA ernmental activ mation of the C otes to the fin n the Table of n of these fina ates of Americ preparation a due to fraud o ments based ed in the Unite uditing Stand we plan and p ree of materia out the amou uditor's judgm whether due ant to the entit dures that are fectiveness o valuating the estimates mad nd appropriate ed to above p ties, the busin s of Decembe ws thereof and United States TE BOARD OF A EST WASHINGT ROOM E41 APOLIS, INDIA elephone: (317) 2 Fax: (317) 232-4 eb Site: www.in ANA vities, the bus City of South nancial statem f Contents. ancial stateme ca; this include nd fair presen r error. on our audit d States of Am dards, issued b perform the au al misstateme nts and disclo ment, includin to fraud or err ty's preparatio e appropriate f the City's in appropriaten de by manage e to provide a present fairly, ness-type acti er 31, 2015, an d for the year s of America. ACCOUNTS TON STREET 18 ANA 46204-2769 232-2513 4711 .gov/sboa iness- Bend ments, ents in es the ntation t. We merica by the udit to ent. osures ng the ror. In on and in the nternal ess of ement, basis , in all ivities, nd the r then 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