City of South Bend Smart Streets Debt Service Budget 2019
Fund 756
These are our observations about the South Bend Smart Streets Debt Service Budget. For accuracy the dollar amounts are taken directly from information provided by the City of South Bend, Indiana. (Page 235)
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NOTES:
Questions - Why is there a NET $2,100,000 DEFICIT in this? (Page 232 Adopted 2018 Budget Book)
What account will cover this?
Questions - Why is there a NET $2,100,000 DEFICIT in this? (Page 232 Adopted 2018 Budget Book)
What account will cover this?
Student Training Quiz Questions
1. The interest cost for "Smart Streets" is $_________________
2. The cost to issue the Bond for it is $_________________
3. Taxpayers won't be done paying for it until _________
4. The cost financed was $______________ (Hint: Some of the interest was financed as well)
5. Every year the taxpayers will be paying usually $______________ on the lease of this.
6. The Total Cost is $_____________, but because of financing instead of "pay-as-you-go", the amount available was $_______________
7. This is part of which TIF District? ____________________________________________
8. The City pardoned the State from caring for the streets which would mean the City now has to re-pave, snow plow, paint and patch these streets from here on out? True/False
9. This debt is exempt from Property Tax Caps. True/False
10. These changes made it faster and easier for emergency vehicles to respond and for those working at the Beacon and Notre Dame to get to and from work more easily. True/False
Bonus Question: How old will you be when this is paid off?
(See below for answers)
1. The interest cost for "Smart Streets" is $_________________
2. The cost to issue the Bond for it is $_________________
3. Taxpayers won't be done paying for it until _________
4. The cost financed was $______________ (Hint: Some of the interest was financed as well)
5. Every year the taxpayers will be paying usually $______________ on the lease of this.
6. The Total Cost is $_____________, but because of financing instead of "pay-as-you-go", the amount available was $_______________
7. This is part of which TIF District? ____________________________________________
8. The City pardoned the State from caring for the streets which would mean the City now has to re-pave, snow plow, paint and patch these streets from here on out? True/False
9. This debt is exempt from Property Tax Caps. True/False
10. These changes made it faster and easier for emergency vehicles to respond and for those working at the Beacon and Notre Dame to get to and from work more easily. True/False
Bonus Question: How old will you be when this is paid off?
(See below for answers)
Information from the State of Indiana
Debt Name: 135 - 2015 Redevelopment Authority Lease Rental Revenue Bonds
Debt Status: Outstanding
Type of Indebtedness: Lease
Base CUSIP Number: 836562
Is this debt exempt from the property tax caps? N
Debt Limitation
Is this debt subject to the issuer’s debt limit? N
Date of Preliminary Determination:
Date of Publication of Preliminary Determination:
Newspaper(s): South Bend Tribune & Tri-County News
Date of Public Hearing: 1/29/2015
Date of Final Approval/Lease Execution: 2/11/2015
Date of Appropriation Resolution: 2/18/2015
Date of Debt Sale: 3/24/2015
Date of Debt Closing: 4/9/2015
Security on the Debt - Source of Repayment
Property Tax: Secondary
TIF Revenue: Primary
COIT: No
Motor Vehicle Highway/Local Road & Street: No
CAGIT: No
Stormwater Revenues: No
CEDIT: No
Electric Revenues: No
Water Revenue: No
Wasterwater Revenues: No
Grant Revenue: No
Other () : No
Allocation Area from which the TIF Revenues will be generated: River West Development Area
Name of Lessor (Building Corporation/Hold Corporation):
Does this debt refinance or refund any previously outstanding debt? No
Sources of Funds
Lease Rental Revenue Bonds of 2015 $25,000,000.00
Net reoffering premium $154,123.35
Debt Name: 135 - 2015 Redevelopment Authority Lease Rental Revenue Bonds
Debt Status: Outstanding
Type of Indebtedness: Lease
Base CUSIP Number: 836562
Is this debt exempt from the property tax caps? N
Debt Limitation
Is this debt subject to the issuer’s debt limit? N
Date of Preliminary Determination:
Date of Publication of Preliminary Determination:
Newspaper(s): South Bend Tribune & Tri-County News
Date of Public Hearing: 1/29/2015
Date of Final Approval/Lease Execution: 2/11/2015
Date of Appropriation Resolution: 2/18/2015
Date of Debt Sale: 3/24/2015
Date of Debt Closing: 4/9/2015
Security on the Debt - Source of Repayment
Property Tax: Secondary
TIF Revenue: Primary
COIT: No
Motor Vehicle Highway/Local Road & Street: No
CAGIT: No
Stormwater Revenues: No
CEDIT: No
Electric Revenues: No
Water Revenue: No
Wasterwater Revenues: No
Grant Revenue: No
Other () : No
Allocation Area from which the TIF Revenues will be generated: River West Development Area
Name of Lessor (Building Corporation/Hold Corporation):
Does this debt refinance or refund any previously outstanding debt? No
Sources of Funds
Lease Rental Revenue Bonds of 2015 $25,000,000.00
Net reoffering premium $154,123.35
Source of Data: https://gateway.ifionline.org/report_builder/Default3a.aspx?rptType=debt&rpt=TifDebtReports&rptName=Bond/Lease&row_id=9306
Answers
1. $10,598,841 in interest costs
2. $188,082.85 in costs to issue the bond
3. Won't be done paying for it until 2037
4. $1,429,996 was Capitalized Interest. So total is $12,028,837
5. Two payments of $857,500 annually until 2037 or $1.7M annually.
6. Total for this is $34,278,000 but because of financing only $21,825,000 was available to use.
7. River West TIF Fund 324. Debt Schedule No. 135. Paid for out of Fund 756.
8. True. The City took over ownership from the State and now has to care for them along with the other 2,200 lane miles. At the current rate of paving, the City will get around to paving those streets in 85 years. This will add to the expense burden of the taxpayers.
9. This debt is NOT exempt from Property Tax Caps.
10. False. The narrowing of the lanes and inserting concrete planters mean traffic cannot move out of the way for oncoming emergency vehicles and has slowed the commute for two of South Bend's largest employers.
Final Question: Was this a great use of tax dollars? Are these really "Smart Streets"?
1. $10,598,841 in interest costs
2. $188,082.85 in costs to issue the bond
3. Won't be done paying for it until 2037
4. $1,429,996 was Capitalized Interest. So total is $12,028,837
5. Two payments of $857,500 annually until 2037 or $1.7M annually.
6. Total for this is $34,278,000 but because of financing only $21,825,000 was available to use.
7. River West TIF Fund 324. Debt Schedule No. 135. Paid for out of Fund 756.
8. True. The City took over ownership from the State and now has to care for them along with the other 2,200 lane miles. At the current rate of paving, the City will get around to paving those streets in 85 years. This will add to the expense burden of the taxpayers.
9. This debt is NOT exempt from Property Tax Caps.
10. False. The narrowing of the lanes and inserting concrete planters mean traffic cannot move out of the way for oncoming emergency vehicles and has slowed the commute for two of South Bend's largest employers.
Final Question: Was this a great use of tax dollars? Are these really "Smart Streets"?