The URL can be used to link to this page

1985352. .0741 j .B224af I 1985 CITY OF BANGOR, MAINE Financial Statements and Other Financial Information For The Year Ended June 30,1985 THEODORE C. JELLISON Finance Director C, CITY OF BANGOR, MAINE ' i G Annual Financial Report 7 Y'� June 30, 1985 �. Table of Contents AUDITORS' REPORT Exhibit Page(s) FINANCIAL STATEMENTS Combined Balance Sheet --All Fund Types and Account Groups 1 1 - 2 Combined Statement of Revenues, Expenditures and Changes in .: Fund Balances --All Governmental Fund Types and Expendable Trust Funds 2 3 Statement of Revenues, Expenditures and Changes in Fund Balance --Budget and Actual --General Fund 3 4 Combined Statement of Revenues, Expenses and Changes in _ Retained Earnings/Fund Balances --All Proprietary Fund Types and Similar Trust Funds 4 5 _ Combined Statement of Changes in Financial Position --All Proprietary Fund Types and Similar Trust Funds 5 6 Notes to Financial Statements 7 - 21 ADDITIONAL INFORMATION Schedule Governmental Funds: General Fund: Balance Sheet A-1 22 Statement of Revenues, Expenditures, and Changes in Fund Balance --Budget and Actual -Budget Basis A-2 23 - 24 Special Revenue Funds: Balance Sheet B-1 25 Combining Statement of Revenues, Expenditures and Changes in Fund Balance B-2 26 Capital Projects Funds: Combined Balance Sheet C-1 27 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 28 i� I CITY OF BANGOR, MAINE Annual Flnanutul Report June 30, 1985 Table of Contents Additional Information (Continued) Proprietary Funds: Enterprise Funds: Combining Balance Sheet Combining Statement of Revenues, Expenses, and Changes in Retained Earnings Combining Statement of Changes in Financial Position Fiduciary Funds: Trust and Agency Funds: Combining Balance Sheet Expendable Trust Funds - Combined Statement of Revenues, Expendigures, and Changes in Fund Balance Nonexpendable Trust Funds - Combining Statement of Revenues, Expenses and Chnages in Fund Balances Schedule of Assessed Valuation, Commitment and Collections STATISTICAL SECTION: Property Tax Valuations, Levies and Collections - Last Ten Fiscal Periods Local Assessed Valuations - Last Ten Fiscal Periods General Fund Expenditures by Function - Last Ten Fiscal Periods General Fund Revenue by Source - Last Ten Fiscal Periods Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures - Last Ten Fiscal Periods Debt Service Requirements to Maturity - General Obligation Bonds Ratio of General Bonded Debt to Assessed Value and General Bonded Debt per Capita - Last Ten Fiscal Periods Schedule Pages(s) D-1 29 D-2 30 D-3 31 E-1 32 E-2 33 E-3 34 F 35 Table 1 36 2 37 3 38 4 39 5 40 6 41 7 42 Brooks and EEN'tPr' Certified Public Accountants AUDITORS' REPORT The Honorable Mayor, City Council and City Manager City of Bangor, Maine We have examined the financial statements of the City of Bangor, Maine as of and for the year ended June 30, 1985, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circum- stances. In our opinion, the aforementioned financial statements present fairly the financial position of the City of Bangor, Maine, at June 30, 1985, and the results of its operations and the changes in financial position of the pro- prietary fund types and similar trust funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year after giving retroactive effect to the change, with which we concur, in the classification for accrued leave and teachers payroll as described in Note 13 to the financial statements. The examination referred to above was directed primarily toward formulating an opinion on the combined financial statements of the various funds and account groups of the City of Bangor, Maine, taken as a whole. The addi- tional information included in Schedules A-1 through F and statistical Tables 1 through 7 are presented for supplementary analysis purposes and are not necessary for a fair presentation of the financial position and results of operations of the various funds and account groups and changes in financial position of the proprietary fund types and similar trust funds of the City of Bangor, Maine. The additional information has been subjected to the auditing procedures applied in the examination of the basic combined financial statements and, in our opinion, is stated fairly in all material respects when considered in conjunction with the combined financial statements taken as a whole. September 23, 1985 P.O. Box 1167, Merrill Center, Bangor, Maine 04401 (207) 947 - 8341 Exhibit 1 CITY OF BANGOR, MAINE *Restated - Note 13 The accompanying notes are an integral part of these financial statements. Combined Balance Sheet - All Fund Types and Account Groups June 30, 1985 (with comparative totals for June 30, 1984) Proprietary Fiduciary Governmental Fund Types Fund Type Fund Type Account Groups General General Special Capital Enterprise Trust and Fixed Long-term Totals Assets and Other Debits General Revenue Projects (Notes 9 & 10) Agency Assets Debt 1985 1984 Cash, including time deposits of $10,492,253 in 1985 and $7,095,676 in 1984 $ 7,529,052 $ 90,253 $2,209,194 $( 90,387) $ 637,734 $ - $ - $ 10,375,846 $ 6,968,948 Investments, at cost (market value 1985 - $498,941, 1984 - $433,224) - - - - 513,771 - - 513,771 488,622 Receivables (net, where applicable of allowance for estimated un- collectible accounts of $154,709 in 1985 and $64,301 in 1984: Taxes, including interest, penalties and liens (note 2) 979,239 - - - - - - 979,239 1,217,495 Accounts (note 12) 934,078 - 120,344 913,876 16,168 - - 1,984,466 1,999,511 Loans - - - - 34,420 - - 34,420 34,500 Deferred special assessments - - 394,117 - - - - 394,117 535,919 Due from other governments (note 3) - 107,928 714,273 - - - - 822,201 702,928 Due from enterprise fund - - 100,000 - - - - 100,000 100,000 Advance to enterprise funds (note 9) 500,000 - - - - - - 500,000 500,000 Inventory, at cost 491,317 - - 84,802 - - - 576,1.19 570,833 Prepaid expenses - - - 53,562 - - - 53,562 36,394 Property, plant and equipment (net of accumulated depreciation) (note 4) - - - 119,089,673 - 43,327,570 - 162,417,243 163,119,338 ?-2ount to be provided for retirement of general long-term debt - - - - - - 10,778,278 10,778,278 10,353,522* Deposits for construction with capital projects funds - - - 1,717,556 - - - 1,717,556 1,079,276 Other assets 4,471 - - 871,903 - - - 876,374 933,195 $10,438,157 $198,181 $3,537,928 $122,640,985 $1,202,093 $43,327,570 $10,778,278 $192,123,192 $188,640,481 *Restated - Note 13 The accompanying notes are an integral part of these financial statements. Liabilities Accounts Payable Accrued leave Accrued payroll Tax collected in advance Amounts held by agency funds for others Deferred revenues (note 2) Due to capital projects funds Advance from general fund (note 9) General obligation bonds and notes payable (note 5) Fund Equity Combined CITY Balance Sheet - OF BANGOR, MAINE All Fund Types and Account Groups, Continued 677,004 ' assets (note 4) N - - Proprietary Fiduciary Fund balance: 4,442 Governmental Fund Types Fund Type Fund Type Account Groups 100,000 (note 9) 500,000 - Noncurrent receivables (note 12) 663,607 - General General Endowments Special Capital Enterprise Trust and Fixed Long-term General Revenue Projects (Notes 9 b 10) Agency Assets Debt $ 379,151 $ 30,138 $ 2,259 $ 271,157 $ - $ - $ - - - - 102,401 - - 450,125 - - - - - - 600,114 7,238 - - - - - - - - - - 489,049 - - 879,684 - - - - - - - - - 100,000 - - - - - - 500,000 - - - - - - 2,781,961 - - 9,728,039 $1,266,073 30,138 2,259 3,755,519 489,049 - $10.778,278 Fund Equity 113,350,246 Contributed capital (note 7) - - Investment in general fixed 677,004 ' assets (note 4) N - - ' Retained earnings - - Fund balance: 4,442 Reserve for: 507,724 Encumbrance 167,652 - Advance to enterprise funds 100,000 (note 9) 500,000 - Noncurrent receivables (note 12) 663,607 - Loans - - Endowments - - Unreserved: _ - _ Designated for subsequent years expenditures (note 6) 3,678,894 168,043 Undesignated 14-161-931 - Total fund equity 9,172,084 168,043 $10,438,157 $198,181 *Restated - Note 13 Exhibit 1 Con't. Totals 113,350,246 1985 1984 $ 682,705 $ 677,004 552,526 523,000 600,114 604,000 7,238 4,442 489,049 507,724 879,684 1,049,282 100,000 100,000 500,000 500,000 12,510,000 11,925,000 16,321,316 15,890,452 - 113,350,246 - - - 113,350,246 115,080,196 - - - 43,327,570 - 43,327,570 42,160,802 - 5,535,220 - - - 5,535,220 5,042,890 633,907 - - - - 801,559 1,164,977 _ _ _ - - 500,000 500,000 _ - _ 663,607 684,324 - - 61,802 - - 61,802 60,043 - - 487,460 - - 487,460 481,861 1,571,546 - 163,782 - - 5,582,265 2,857,468* 1,330,216 - - - - 5,492,147 4,717,468* 3,535,669 118,885,466 713,044 43,327,570 - 175,801,876 172,750.029* $3,537,928 $122,640,985 $202,093 $43,327,570 $10,778,278 $192,123,192 $188,640,481 The accompanying notes are an integral part of these financiaZ statements. I- Exhibit _2 I '-.. CITY OF BANGOR, MAINE Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds Year ended June 30, 1985 Fiduciary Governmental Fund Types Fund Type Special Capital Expendable General Revenue Projects Trust Total Revenues: Taxes (note 2) $17,695,376 $ - $ - $ - $17,695,376 Special assessments - - 44,310 - 44,310 Intergovernmental 6,601,075 1,307,052 1,488,015 - 9,396,142 Licenses and permits 234,607 - - - 234,607 Charges for services 533,474 - - - 533,474 Fines, forfeits, and penalties 60,879 - - - 60,879 - Revenues from use of money and property 1,733,772 138,906 59,448 - 1,932,126 Reimbursements 259,294 - - - 259,294 Miscellaneous - 159,824 200 160,024 Total revenues 27,118,477 1,445,958 1,751,597 200 30,316,232 Expenditures: General government 1,609,789 - - - 1,609,789 Public safety 4,942,962 - - - 4,942,962 Health, welfare, and recreation 1,394,799 - - - 1,394,799 Public buildings and services 3,332 912 - - - 3,332,912 Other agencies 685 558 - - - 685.558 Education 11,431,231 - - - 11,431,231 Other appropriations 1,469,537 - 26,312 - 1,495,849 Community Development Block Grant - 1,453,416 - - 1,453,416 Perpetual care fees - - - 15,000 15,0.0 Distribution to beneficiaries - - - 5,238 5,238 Capital projects - - 2,358,415 - 2,358,415 Total expenditures 24,866,788 1,453,416 2,384,727 20,238 28,725,169 Excess (deficiency) of revenues over expenditures 2,251,689 ( 7,458) ( 633,130) ( 20,038) 1,591,063 Other financing sources (uses): Operating transfers in - - 200,149 41,675 241,824 Operating transfers out (note 9) ( 292,546) - - - ( 292,546) Proceeds from bonds - - 1,575,000 - 1,575,000 ( 292,546) - 1,775,149 41,675 1,524,278 Excess (deficiency) of revenues and other sources over expenditures and other uses 1,959,143 ( 7,458) 1,142,019 21,637 3,115,341 Fund balances at beginning of period 7,212,941 175,501 2,393,650 142,145 9,924,237 as restated (Note 13) Fund balances at end of period $9,172,084 $ 168,043 $3,535,669 $ 163,782 $13,039,578 The accompanying notes are an integral part of these financial statements. -3- Exhibit 3 CITY OF BANGOR, MAINE Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund Year ended June 30. 1985 Expenditures: General government 1,740,979 1,609,789 Variance - Public safety 5,138,851 4,942,962 Favorable Health, welfare, and recreation Budget Actual (Unfavorable) Public buildings and services Revenues: 3,332,912 394,817 Other agencies Taxes (note 2) $16,885,304 $17,695,376 $ 810,072 Intergovernmental 6,462,185 6,601,075 138,890 Licenses and permits 183,708 234,607 50,899 Charges for services 608,430 533,474 ( 74,956) Fines, forfeits, and penalties 55,200 60,879 5,679 Revenue from use of money and property 1,146,192 1,733,772 587,580 Reimbursements 379,800 259,294 ( 120,506) Total revenues 25,720,819 27,118,477 1,397,658 Expenditures: General government 1,740,979 1,609,789 131,190 Public safety 5,138,851 4,942,962 195,889 Health, welfare, and recreation 1,541,248 1,394,799 146,449 Public buildings and services 3,727,729 3,332,912 394,817 Other agencies 684,085 685,558 ( 1,473) Education 11,546,290 11,431,231 115,059 Other appropriations 1,336.744 1,469,537 (_132_1_793) Total expenditures 25,715,926 24,866,788 'x.,138 Excess of revenues over expenditures ( 4,893) 2,251,689 2,246,796 Other financing uses - Operating transfers out 429,893 292,546 137,347 Excess (deficiency) of revenues over expenditures and other uses $( 425,000) 1,959,143 $2,384,143 Fund balance beginning of year as restated (Note 13) Fund balance at end of period 7,212,941 $9,172,084 The accompanying notes are an integral part of these financial statements. -4- CITY OF BANGOR, MAINE Combined Statement of Revenues, Expenses, and Changes in Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds Year ended June 30, 1985 Proprietary Fiduciary _ Fund Type Fund Type Enterprise Nonexpendable - (Notes 9 & 10) Trust -' Operating revenues: Charges for services $ 6,186,520 - Interest - 43,433 - Lot sales - 5,600 Total operating revenues 6,186,520 49,033 Operating expenses: Operating expenses other than depreciation 5 471 824 Depreciation and amortization: On assets acquired with own funds 312,053 On assets acquired with contribu- tions 3,007,147 - Total operating expenses 8,791,024 - Operating income (loss) (2,604,504) 49,033 Non operating revenues (expenses): Interest income 64,903 - Interest expense ( 193,613) - Income from sale of property 126,000 - ( 2,710) - Income (loss) before operating transfers (2,607,214) 49,033 Operating transfers in 92,397 - Operating transfers out (41,675) Net income (loss) (2,514,817) 7,358 Retained earnings/fund balances at 4 beginning of period 5,042,890 541,904 Depreciation and amortization on assets acquired with contributions 3,007,147 Retained earnings/fund balance at end of period. . $ 5,535,220. 549,262 The accompanying notes are an integral part of these financiaZ statements. -5- Exhibit 4 Total. $ 6,186,520 43,433 5,600 6,235,553 5,471,824 312,053 3,007,147 8,791,024 (2,555,471) 64,903 ( 193,613) 126,000 ( 2,710 (2,558,181) 92,397 ( 41,675 (2,507,459) 5,584,794 3,007,147 $ 6,084,482 Exhibit 5 CITY OF BANGOR, MAINE Combined Statement of Changes in Financial Position - All Proprietary Fund Types and Similar Trust Funds Year ended .lune 30, 1985 Proprietary Fiduciary Fund Type Fund Type - Enterprise P Nonex endable P 10 (Notes 9 & ) Trust Total Sources of working capital: Operations: Net income (loss) $(2,514,817) $ 7,358 $(2,507,459) Items not requiring working capital - depreciation and amortization 3,319,200 - 3,319,200 Working capital provided by operations 804,383 7,358 811,741 Contributions: City - - - Customers 105,795 - 105,795 Federal, state, and other 1,171,402 - 1,171,402 Proceeds of bond issue 495,000 - 495,000 $ 2,576,58q $ 7,358 $ 2,583,938 Uses of working capital: Deposits for capital projects $ 638,280 - $ 638,280 Acquisition of property, plant, and equipment 1,403,208 - 1,403,208 Current installment - general obligation bonds 317,199 - 317,199 Increase in working capital 217,893 7,358 225,251 $ 2,576,580 $ 7,358 $ 2,583,938 Elements of net increase (decrease) in working capital: Cash $ 345,292 $(17,711) $ 327,581 Receivables (net) ( 53,573) ( 80) ( 53,653) Investments - 25,149 25,149 Inventory ( 1,394) ( 1,394) Prepaid expenses 17,168 17,168 Accounts payable ( 85,918) ( 85,918) Current installments of long-term - debt and.notes payable ( 3,682) ( 3,682) Net increase in working capital $ 217,893 $ 7,358 $ 225.251 The accompanying notes are an integral part of these financial statements. - -6- CITY OF BANGOR, MAINE Notes to Financial Statements June 30, 1985 Note 1 - Summary of Significant Accounting Policies The City of Bangor, Maine was incorporated February 12, 1834, under the laws of the State of Maine. The City operates under a Council -Manager form of government and provides the following services as authorized by its charter: public safety, public works, recreation, and education. The accounting policies of the City of Bangor, Maine conform to generally accepted accounting principles as applicable to governmental units. The following is a summary of the more significant policies: (A) Basis of Presentation - Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund balance/ retained earnings, revenues, and expenditures/expenses. The various funds are summarized by type in the financial statements. The following fund types and account groups are used by the City: GOVERNMENTAL FUND TYPES Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabiliites (except those accounted for in proprietary funds) are accounted for through governmental funds. The measurement focus is upon determi- nation of changes in financial position, rather than upon net income determination. The following are the City's governmental fund types: General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expend- able trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or con- struction of major capital facilities (other than those financed by other funds). PROPRIETARY FUND TYPES Proprietary Funds are used to account for the City's ongoing organiza- tion and activities which are similar to those often found in the private sector. The measurement focus is upon determination of net income. (Continued) -7- CITY OF BANGOR, MAINE Notes to Financial Statements June 30, 1985 Note 1 - Continued Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, includ- ing depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. FIDUCIARY FUND TYPE Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organ- izations, other governmental units, and/or other funds. Trust and Agency Funds - Trust and Agency Funds include expend- able, nonexpendable and agency funds. Nonexpendable funds are accounted for and reported as proprietary funds since capital maintenance is critical. Expendable trust and agency funds are accounted for and reported as governmental funds. ACCOUNT GROUPS Account groups are used to establish accounting control and account- ability for the City's general fixed assets and general long-term debt. The following are the City's account groups: General Fixed Assets Account Group - This group of accounts is established to account for all fixed assets of the City, other than those accounted for in the proprietary funds. General Long -Term Debt Account Group - This group of accounts is established to account for all long-term debt of the City except that accounted for in the proprietary funds. (B) Basis of Accounting The modified accrual basis of accounting is followed by the governmental funds and expendable trust and agency funds. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible with- in the current period or soon enough thereafter to be used to pay lia- bilities of the current period. Expenditures, other than interest on long-term debt, are .recorded when the liability is incurred, if measur- able. (Continued) CITY OF BANGOR, MAINE Notes to Financial Statements June 30. 1985 Note 1 - Continued In applying the susceptible to accrual concept to intergovernmental reve- nues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of these revenues. In one, monies must be expended on the specific purpose of project before any amounts will be paid to the City; there- fore, revenues are recognized based upon the expenditures recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual criteria are met. Licenses and permits, charges for services, fines and forfeits, and mis- cellaneous revenues (except investment earnings) are recorded as reve- nues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and available. The accrual basis of accounting is used by proprietary funds and nonex- pendable trust funds. (C) Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the govern- mental funds. Open encumbrances are reported as reservations of fund balances since the commitments will be honored in subsequent years. Encumbrances do not constitute expenditures or liabilities. (D) Budgetary Accounting The City utilizes a formal budgetary accounting system to control revenues and expenditures accounted for in the general fund. These budgets are established in accordance with the various laws which govern the City's operations. The first Monday in April, the city administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expend- itures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. The budget is legally enacted through the passage of an ordinance. The city administrator is authorized to transfer budgeted amounts between departments, however, any revisions that alter the total expenditures must be approved by the City Council. No significant additional appropriations were required in 1985. (Continued) r i CITY OF BANGOR, MAINE Notes to Financial Statements June 30, 1985 r Note 1 - Continued All unencumbered and unexpended appropriations lapse at year end. Depart- mental expenditures may not exceed appropriations. Budget data as pre- sented for these funds utilize the modified accrual basis of accounting. Budgetary controls are maintained on the other governmental funds through formal authorizations by the City Council and grant agreements. (E) Investments Investments are stated at cost. (F) Inventory Inventory consists primarily of expendable supplies held for consumption. (G) Advances to Other Funds Long-term interfund advances are recorded as a receivable and as a reserve of fund balance by the advancing fund. (H) General Fixed Assets General fixed assets have been acquired for general governmental purposes. Assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the general fixed assets account group. Con- tributed fixed assets are recorded in general fixed assets at estimated fair market value at the time received. Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs, and gutters, streets and sidewalks, drainage systems, and lighting systems are capitalized along with other general fixed assets. No depreciation has been provided on general fixed assets, nor has interest been capitalized. (I) Property, Plant and Equipment - Enterprise Funds Property, plant, and equipment owned by the various enterprise funds is stated at cost except for certain assets contributed by others which are stated at fair market value as of the date of contribution. Depre- ciation has been provided over the estimated useful lives using the straight line method. Depreciation on all assets has been recorded as an expense of the current period. The amount applicable to assets acquired from contributions has then been transferred to the related contribution account rather than to retained earnings. The range of the estimated useful lives of the various classes of enterprise depre- ciable assets is as follows: (Continued) -10- CITY OF BANGOR, MAINE Notes to Financial Statements June 30, 1985 Note 1 - Continued (J) Vacation and Sick Leave Under terms of union contracts and personnel policies, permanent full time City employees are granted vacation and sick leave in varying amounts. In the event of termination an employee is re- imbursed for accumulated vacation days up to the equivalent of thirty days vacation. Employees are reimbursed for 33 percent of accumulated sick leave, up to 40 days, only upon retirement and after at least 25 years of service. For Governmental Type Funds (General and Special Revenue), the City appropriates funds for accrued vacation in the year the vacation is taken. Accordingly, accumulated vacation time earned and not taken at the end of the fiscal year will be raised in subsequent years' budgets. The related obligation, therefore, is recorded in the general long-term debt group of accounts of the City in accordance with Statement No. 4 of the National Council on Govern- mental Accounting. Accumulated sick leave is not recorded since it is neither determin- able nor measurable. (K) Capital Projects Funds - Unappropriated Fund Balances Unappropriated fund balances in the Capital Projects Funds represent, on a cumulative basis, the excess of specific project resources over the related project costs for certain completed as well as open pro- jects. These amounts are currently unappropriated and as such are available for use within the Capital Projects Funds for future capi- tal construction. (L) Comparative Total Data Comparative total data for the prior year have been presented in the accompanying combined financial statements in order to provide an (Continued) -11- Range of Estimated Asset Class Useful Life Buildings 25 - 40 years Equipment 5 - 20 years Pipelines and Mains 100 years Aircraft operational assets: Runways 40 years Buildings 20 years Machinery and equipment 5 - 10 years (J) Vacation and Sick Leave Under terms of union contracts and personnel policies, permanent full time City employees are granted vacation and sick leave in varying amounts. In the event of termination an employee is re- imbursed for accumulated vacation days up to the equivalent of thirty days vacation. Employees are reimbursed for 33 percent of accumulated sick leave, up to 40 days, only upon retirement and after at least 25 years of service. For Governmental Type Funds (General and Special Revenue), the City appropriates funds for accrued vacation in the year the vacation is taken. Accordingly, accumulated vacation time earned and not taken at the end of the fiscal year will be raised in subsequent years' budgets. The related obligation, therefore, is recorded in the general long-term debt group of accounts of the City in accordance with Statement No. 4 of the National Council on Govern- mental Accounting. Accumulated sick leave is not recorded since it is neither determin- able nor measurable. (K) Capital Projects Funds - Unappropriated Fund Balances Unappropriated fund balances in the Capital Projects Funds represent, on a cumulative basis, the excess of specific project resources over the related project costs for certain completed as well as open pro- jects. These amounts are currently unappropriated and as such are available for use within the Capital Projects Funds for future capi- tal construction. (L) Comparative Total Data Comparative total data for the prior year have been presented in the accompanying combined financial statements in order to provide an (Continued) -11- I .. CITY OF BANGOR, MAINE Notes to Financial Statements June 30, 1985 Note 1 - Continued understanding of changes in the City's financial position and oper- ations. However, comparative data (i.e., presentation of prior year totals by fund type) have not been presented in each of the statements, since their inclusion would make the statements unduly complex and difficult to read. The total data are the aggregate of the fund types and account groups. No consolidating or other eliminations were made in arriving at the totals; thus they do not present consolidated information. Note 2 - Property Tax The City's property tax was levied July 1, 1984 on the assessed value listed as of the prior April 1, for all real and personal property located in the City. The last revaluation was completed for the tax lists of April 1, 1978. The assessed value for the list of April 1, 1984 upon which the 1984 levy was based, was $484,384,30Q. The estimated market value was $629,000,000 making the assessed value 77 percent of the estimated market value. Taxes are billed on a semi-annual basis. Taxes were due August 1 and February i with a grace period to the first of the following month before interest was charged. Current tax collections for the year ended June 30, 1985 were 97.5 percent of the tax levy. Property taxes levied for the year ended June 30, 1985 are recorded as receiv- ables. The receivables collected during the year. and during the first 60 days of the subsequent year are recognized as revenues for the year ended June 30, 1985. Receivables estimated to be collected subsequent to the 60 day period are considered to be deferred revenues. Prior year tax levies were recorded using this same principle. Note 3 - Due From Other Governments Due from other governments includes accrued reimbursement on the following capital projects: Project Airport Development Aid Project Odlin Road Sewer Sewerage Facility Planning Kenduskeag Plaza Park Westside Pool Front Street Re -use Plan Estimated Expenditures Amounts Funded Amounts Due Total To By Other From Other Costs Date Governments Governments $5,896,784 $5,560,927 $5,328,850 $589,961 20,249 10,583 20,249 10,583 168,500 250,000 180,000 21,700 $6,537,233 176,623 195,086 96,051 16,135 $6,055,405 -12- 144,630 56,070 125,000 - 90,000 48,025 21,700 9,634 $5,730,429 $714,273 CITY OF BANGOR, MAINE Notes to Financial Statements June 30, 1985 _Rote 4 - Fixed Assets A summary -of changes in general fixed assets follows: Balance Balance June 30, June 30, 1984 Additions Deletions Transfers 1985 Land $2,866,190 $ - $ - $ - $2,866,190 City foreclosed property 55,821 10,827 ( 4,358) - 62,290 Buildings 17,772,742 - - - 17,772,742 Recreation Facilities 231119,672 15,000 2,134,672 Construction in process 11-100,283 1,023,985 (879,518) 1,244,750 23,914,708 1,034,812 ( 4,358) (864,518) 24,080,644 Public domain: Streets 10,893,022 - - 492,566 11,385,588 Sidewalks 1,331,492 - - 145,523 1,477,015 Bridges 1,053,245 - - - 1,053,245 Parking Structures 532,184 - - - 532,184 Electrical 602,034 - - - 602,034 Storm sewers - water lines 291,691 - - 51,830 343,521 Other public domain 397,602 - - - 397,602 Total public domain 15,101,270 - - 689,919 15,791,189 Equipment -vehicles 3,144,824 276,898 (140,584) - 3,281,138 Equipment computer - - - 174,599 174,599 Total equipment 3,144,824 276,898 (140,584) 174,599 3,455,737 $42,160,802 $1,311,710 $(144,942) $ -0- $43,327,570 -13- CITY OF BANGOR, MAINE Notes to Financial Statements June 30, 1985 Note 4 - Continued Construction in process is composed of the following: Required Project Expenses to Future Authorization June 30, 1985 Committed Financing Buildings $ 237,000 $ 48,378 $ 188,622 None School 509,223 202,358 306,867 None Streets 744,787 190,014 554,773 None Electrical 15,000 6,395 8,605 None Other Projects 1,309,376 797,605 511,771 None $2,815,388 $1,244,750 $1,570,638 A summary of proprietary fund type property, plant and equipment at' June 30, 1985 follows: Land $ 93,685 Building improvements and equipment 7,208,886 Pipelines and mains 15,499,811 Aircraft operational assets 121,414,677 Construction in process 5,790,365 150,007,424 Less accumulated depreciation 30,917,751 $119,089,673 Note 5 - Long -Term Debt The following is a summary of long-term debt transactions of the City for the period ended June 30, 1985: General Obligation Debt payable at June 30, 1984 $11,925,000 New debt issued - 1984 series 1,575,000 Debt retired - Serial bonds 990,000 Debt payable at June 30, 1985 512.510.000 -14- CITY OF BANGOR, MAINE Notes to Financial Statements June 30. 1985 Note 5 - Continued Bonds payable at June 30, 1985, are comprised of the following individual issues: Final Annual Authorized Interest maturity serial and General obligation bonds rates date payments Issued June 30, 1985 1965 General Public Improvement 3.10% 9/01/86 $ 15,000 $ 315,000 $ 30,000 1966 General Public Improvement 4.00 12/01/87 10,000 210,000 30,000 1966 Street and Sewer 4.00 12/01/86 5,000 100,000 10,000 1967 Interceptor Sewer and Treatment 3.70 7/01/87 70,000 1,400,000 210,000 1967 Plant Permanent Public Improvements 4.00 9/01/87 35,000 700,000 105,000 1968 Permanent Public Improvements 4.10 9/01/88 35,000 690,000 130,000 ( 25,000 in 1988) 1969 Permanent Public Improvements 5.75 8/15/89 55,000 1,060,000 235,000 ( 15,000 in 1989) 1970 Permanent Public Improvements 6.50 7/01/85 50,000 720,000 20,000 ( 20,000 in 1985) 1971 Permanent Public Improvements 4.90 5/01/91 35,000 690,000 200,000 ( 25,000 in 1991) 1972 Permanent Public Improvements 4.60 3/01/92 55,000 1,060,000 345,000 ( 15,000 in 1992) 1973 Permanent Public Improvements 5.00 7/15/93 100,000 2,000,000 900,000 1975 Permanent Public Improvements 6.50 8/01/95 205,000 4,050,000 2,205,000 (155,000 in 1995) 1978 Permanent Public Improvements 5.80 7/01/98 165,000 3,260,000 2,270,000 (125,000 in 1998) 1981 Permanent Public Improvements 10.00 6/01/01 155,000 3,065,000 2,445,000 (120,000 in 2001) 1984 Permanent Public Improvements 5.90 to 180,000 1,800,000 .1,800,000 8.75 (starting in 1985) 1985 Permanent Public Improvements 5.20 to 10/25/95 160,000 1,575,000 1,575,000 7.90 (starting in 1986) ( 135,000 in 1995) Total general obligation bonds 22,695,000 12,510,000 The annual requirements to amortize all debt outstanding as of June 30, 1985, including interest payments of $5,479,554 are as follows: Year ending June 30 1986 1987- 1988 1989 1990 1991-1995 1996-2000 2001 $ 1,976,846 2,049,956 1,952,306 1,750,824 1,616,025 6,455,288 2,062,309 126.000 $17,989,554 -15- CITY OF BANGOR, MAINE Notes to Financial Statements June 30, 1985 Note 5 - Continued The City is subject to the laws of the State of Maine which limit the amount of long-term debt to a percentage (depending on how funds will be used) of — its last full state valuation. The following is a summary, by purpose, of the outstanding debt of the City at June 30, 1985 and related limitations: Percent of state assessed The general obligation debt of all local governmental units which provide ser- vices within the City's boundaries and which must be borne by properties in the City (commonly called overlapping debt), is summarized below: Net debt value of Statutory Debt Net debt outstanding $612,250,000 Limit margin School $2,599,836 10% $61,225,000 $ 58,625,164 Sewer 1,652,449 72% 45,918,750 44,266,301 Airport 859,511 3% 18,367,500 17,507,989 All other 7,398,204 72% 45,918,750 38,520,546 The general obligation debt of all local governmental units which provide ser- vices within the City's boundaries and which must be borne by properties in the City (commonly called overlapping debt), is summarized below: This results in a per capita City debt of $395;per capita overlapping debt of $427; ratio of City debt to the City's June 30, 1985 assessed valuation of 2.6 percent; and a ratio of overlapping debt to June 30, 1985 assessed valuation of 2.8 percent. Note 6 - General Fund - Designated Fund Balance Designated fund balances represent those portions of the General Fund fund balance specifically designated for the following: (Continued) -16- Percentage Net debt applicable Overlapping Units outstanding to the City Debt City $12,510,000 100.00% $12,510,000 County 900,000 22.40 201,600 Bangor Recreation Center 800,000 100.00 800,000 Total $13,511,600 This results in a per capita City debt of $395;per capita overlapping debt of $427; ratio of City debt to the City's June 30, 1985 assessed valuation of 2.6 percent; and a ratio of overlapping debt to June 30, 1985 assessed valuation of 2.8 percent. Note 6 - General Fund - Designated Fund Balance Designated fund balances represent those portions of the General Fund fund balance specifically designated for the following: (Continued) -16- CITY OF BANGOR, MAINE Notes to Financial Statement June 30, 1985 Note 6 - Continued 1985 Departmental balances carried forward Automotive equipment replacement account Bus service equipment replacement account _e Fire equipment replacement account Golf course equipment replacement account Reserve for self insurance School department - Surplus Credit reserve fund General Fund Designated Fund Balance Note 7 - Contributed Capital $ 285,360 440,824 525,988 632,261 21,261 699,591 298,609 775,000 $ 3,678,894 A summary of changes in contributed capital follows: Contributed capital at June 30, 1984 Contributions Depreciation on assets acquired with contributions 1984 $ 241,633 958,975 521,297 198,509 615,290 253,991 $ 2,789,695 $115,080,196 1,277,197 ( 3,007,147) $113,350,246 Note 8 - Pension Plan The City participates in the Maine State Retirement System which is a multi- employer defined benefit pension plan. The system covers all full time permanent employees, requires both employee and City contributions and provides retirements, disability and death benefits. Employees are eligible for normal retirement upon attaining age sixty and early retire- ment after completing twenty-five or more years of creditable service. The City's contribution for the year ending June 30, 1985 approximated $1,421,000. Unfunded accrued liability as of June 30, 1985 is unavailable. As of June 30, 1984, the unfunded liability approximated $16,259,000 and is being amortized = over a remaining period of twenty-one years. The City's policy is to fund pension cost accrued. Actuarially determined vested and nonvested benefits have not been calculated for the plan. -17- CITY ON BANGOR, MAINE Notes to Financial Statements June 30, 1985 Note 9 - Liquidity Problems in the Enterprise Fund The Airport and Hospital Enterprise Funds have experienced operating losses in the past few years resulting in cash flow problems. Because of the cash flow problems it was necessary for the General Fund to advance the Airport Fund $500,000 in past years. In addition, $92,397 has been trans- ferred to the Hospital Fund for the fiscal period ending June 30, 1985 to meet operating needs. It is the City's intention to continue to advance funds from the General Fund to the Airport and Hospital Funds as necessary to enable these funds to meet current obligations. The amount advanced to the Airport Fund has been reserved in the General Fund's fund balance as it does not represent available spending resources. Note 10 - Segments of Enterprise Activities There are three services provided by the City which are financed by user charges - sewer, airport, and hospital. The key financial data for the period ended June 30, 1985 for those three services are as follows - (Continued) 20 Sewer Airport Hospital Totals Operating revenue $ 697,534 $ 4,138,012 $ 1,350,974 $ 6,186,520 Operating expenses: Depreciation and amortization 383,938 2,866,690 68,572 3,319,200 Other 479,354 3,576,070 1,416,400 5,471,824 863,292 6,442,760 1,484072 8,791,024 Operating income (loss) $(_ 165,758) $( 2,304,748) $(__133,998) $( 2,604,504) Net income (loss) $( 207,899) $( 21243,269) $( 63,649) $( 2,514,817) Assets $ 17,464,290 $ 104,283,029 $ 893,666 $ 122,640,985 Bonds payable $ 1,652,450 $ 859,511 $ 270,000 $ 2,781,961 Fund equity $ 15,766,269 $ 102,551,006 $ 568,191 $ 118,885,466 Aquisition of property, plant and equipment $ 192,900 $ 1,191,821 $ 18,487 $ 1,403,208 (Continued) 20 CITY OF BANGOR, MAINE Notes to Financial Statements June 30, 1985 .Y Note 11 - General Fund Cash Surplus By City Council definition, the General Fund cash surplus is the combined cash balances of the General and' Enterprise. Funds less the current lia- bilities of each (excluding non-cash related amounts), the reserves for encumbranges of each, and the reserves of the General Fund designated for a specific purpose. The General Fund Cash Surplus as of June 30, 1985 was computed as follows: Cash Accounts Payable Taxes Collected in Advance Deferred Revenues (net of deferred property taxes) Current Portion of Long -Term Debt Reserved for Encumbrances Designated for subsequent years expen- ditures General Fund Enterprise Fund Total $ 7,529,052 $( 90,387) $ 7,438,665 ( 379,151) (271,157) ( 650,308) ( 7,238) - ( 7,238) ( 16,684) - ( 16,684) - (317,740) ( 317,740) ( 167,652) ( 77,253) ( 244,905) (3,678,894) - (3,678,894) $ 3,279,433 $(756,537) $ 2,522,896 Enterprise Fund encumbrances are properly excluded from the City's financial statements. Note 12 - Related Party Transactions Bass Park Corp. manages the Bangor Civic Center, Bangor Auditorium and surround- ing fairgrounds pursuant to a lease agreement dated July 27, 1981, which runs on a month-to-month basis. The Board of Directors of Bass Park Corp. is made up of three City Counselors, six private citizens and the City Manager and City Finance Director as non-voting members. Pursuant to terms of the lease agreement, Bass Park Corp.'s rental payments consist of such amounts as are necessary on an annual basis to meet the financial obligation of the City of Bangor for payments of interest and/or principal on certain outstanding bonds issued by the Bangor Recreation Center, a quasi municipal corporation for the construction of the Bangor Auditorium and for other improvements at Bass Park. The Bangor Recreation Center annually levies a tax on the City of Bangor in an amount equal to this debt service. Prior to June 30, 1983, the City billed Bass Park Corp for annual rental charges equaling the debt service obligations or Recrea- tion Tax of the City. The.City currently bills only for other services per- formed. As of June 30, 1985, the City Was owed $663,607 from Bass Park Corp. (Continued) -19- i.. CITY OF BANCOR, MAINE Notes to Financial Statements June 30, 1985 Note 12 Continued of which $571,715 was 1983 and prior rental charges. Due to the un- certainty that Bass Park will be able to pay its obligations within the subsequent year, such amount has been set up in a reserve for cur- rent receivables in the General Fund. The City currently does not in- clude in its estimated revenues rental charges to Bass Park Corp. Note 13 - Restatement of Prior Year's Financial Statements During the year ended June 30, 1984, the City changed its method of ac- counting for accumulated unused vacation leave to comply with the National Council on Governmental Accounting (NCGA) Statement No. 4, which required employers to accrue a liability for future vacation benefits meeting certain conditions. In addition, the City also began to accrue the payroll liability to be paid to teachers during the two months subsequent to year end for work performed during the school year prior to year end. While this obligation meets the definition of a liability as of year end under generally accepted accounting principles, the City has consistently raised the appropriated funds for the obligation in the subsequent year's budget. The above accounting changes were made by retroactively restating the 1984 fund equity of the Governmental Type Funds. Accounting Standards recog- nize that governmental type fund balance sheets reflect only current liabilities and that the amounts recorded in the governmental type funds should be the amounts accrued during the year that would normally be liquidated with expandable available financial_ resources and that the remainder of the liability should be reflected in the General Long - Term Debt Group of Accounts. Accordingly, the 1984 financial state- ments have been restated to reclassify these liabilities from the Governmental Fund Types to the General Long -Term Debt Group of Accounts. The effect on total fund equity and on governmental fund types affected are as follows: Fund equity as previously reported. June 30, 1984 value of accumulated vacation leave June 30, 1984 value teachers payroll of accumulated accrued Fund equity at June 30, 1984 as restated -20- 1984 Total Fund General Special Revenue Equity Fund Fund $171,721,029 $6,190,941 $168,501 425,000 418,000 7,000 604,000 604,000 - $172,750,029 $7,212,941 $175,501 CITY OF BANGOR, MAINE Notes to Financial Statements JUNE 30, 1985 Note 14 - Other Matters The City of Bangor receives state subsidies -for its educational programs based in part on the level of expenditures of previous years. In accord- ance with generally accepted accounting principles, school subsidies are recognized in the year received when they are both measurable and avail- able. School subsidies for fiscal 1985 amounted to $3,680,940 which amount was based in part on the level of expenditures of fiscal year 1983. Projected subsidies for fiscal year 1986 are approximately $4,663,000 which is based in part on expenditures of fiscal year 1984 and 1985. The City of Bangor also receives Federal Revenue Sharing Entitlements on a quarterly basis. .Under Federal Revenue Sharing regulations, Federal Revenue Sharing money is not available to the General Fund of the City until the use of the funds is appropriated. The City follows the policy of incorporating the appropriation for the use of those funds into its normal budget process and giving recognition to the corres- ponding anticipated revenues based upon the projected date of receipt of such funds. Accordingly, the Federal Revenue Sharing Entitlement for the quarter ending June 30, 1985 amounting to $280,622 and re- ceived on July 9, 1985 is not, therefore, reflected in the attached financial statements. Consistent with prior years, these funds will be budgeted in fiscal 1986 both as an item expenditure and as an item of estimated revenue. -21- CITY OF BANGOR, MAINE General Fund Balance sheet June 30, 1985 (with comparative figures for June 30, 1984) Assets Cash Receivables Taxes, including interest and liens Accounts Advance to Enterprise Funds Inventory, at cost Other assets Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued leave Accrued payroll Taxes collected in advance Deferred revenues Total liabilities Fund balances: Reserved for advance to Enterprise Funds Reserved for noncurrent receivables Reserved for encumbrances Unreserved: Designated for subsequent year's expenditures Undesignated Total fund balances Total liabilities and fund balances -22- 1985 $ 7,529,052 979,239 934,078 500,000 491,317 4.471 rar.�sa_i�y.� $ 379,151 7,238 879,684 1,266,073 500,000 663,607 167,652 3,678,894 4,161,931 9,172,084 $10,438,157 Schedule A-1 1984 $5,483,418 1,217,495 902,830 500,000 484,637 13.945 $8,602,325 $ 335,660 4,442 1,049,282 1,389,384 500,000 684,324 106,568 2,789,695 3,132,354 7 q l n !/ l $8,602,325 Schedule A-2 CITY OF BANGOR, MAINE General Fund - Budget Basis Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 Intergovernmental revenues: Federal revenue sharing 1,200,000 1,152,375 Variance - State revenue sharing 1,268,837 1,446,626 Favorable School subsidy Budget Actual (Unfavorable) Revenues: 50,000 56,109 6,109 Taxes: 268,629 265,025 ( 3,604) Property Taxes $15,322,962 $15,967,934 $ 644,972 Automobile excise taxes 1,312,342 1,528,758 216,416 Interest on delinquent taxes 250,000 198,684 ( 51,316) Total taxes 16,885,304 17,695,376 810,072 Intergovernmental revenues: Federal revenue sharing 1,200,000 1,152,375 ( 47,625) State revenue sharing 1,268,837 1,446,626 177,789 School subsidy 3,674,719 3,680,940 6,221 Payment in lieu of taxes 50,000 56,109 6,109 Other 268,629 265,025 ( 3,604) Total intergovernmental revenue 6,462,185 61601,075 138,890 Licenses and permits 183,708 234,607 50,899 Charges for services 608,430 533,474 ( 74,956) Fines, forfeits, and penalties 55,200 60,879 5,679 Revenue from use of money and property 1,146,192 1,733,772 587,580 Reimbursements 379,800 259,294 ( 120,506) Total revenues 27,118,477 1,397,658 25,720,819 Expenditures: General government: Council 20,775 23,080 ( 2,305) Executive 317,516 334,275 ( 16,759) City Clerk 211,354 222,799 ( 11,445) Finance 358,738 316,471 42,267 Assessment 124,980 126,015 ( 1,035) Legal 106,044 98,771 7,273 Personnel 73,117 71,963 1,154 Economic development & research 72,490 71,674 816 Insurance 379,685 323,670 56,015 Planning 76,280 75,373 907 Total general government 1,740,979 1,664,091 76,888 Public safety: Police 2,205,129 2,135,769 69,360 Fire 2,726,746 2,621,052 105,694 Code enforcement 206,976 199,893 7,083 Total public safety 5,138,851 4,956,714 182,137 -23- CITY OF BANGOR, MAINE General Fund - Budget Basis Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual, Continued Year ended June 30, 1985 Budget Actual Expenditures, Continued: Health, welfare, and recreation: Health and welfare 924,594 782,978 Parks and recreation 616,654 633,082 Total health, welfare, & recreation 1,541,248 1,416,060 Public buildings and services Public services 2,565,313 2,388,519 Motor Pool 1,012,666 890,582 Private school services 149,750 154,350 Total public buildings and services 3,727,729 3,433,451 Other agencies: Taxes paid to county Public Library Total other agencies Education Other appropriations: Overlay (allowance for uncollectable taxas Bad debt expense Recreation district tax Pensions and other fringe benefits Contingency Debt service Credit reserve fund Total other appropriations Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses.) - Appropriation from fund balance Operating transfers out Excess of revenues over expenditures and other uses Fund balance beginning of year as restated Net addition to replacement accounts Appropriation from fund balance Appropriation to credit reserve fund Fund balance at end of period 362,059 322,026 684,085 11,546,290 135,440 129,535 119,811 951,958 775.000 2,111,744 26,490,926 ( 770,107) 1,200,000 ( 429,893) -24- 363,532 322,026 685,558 11,461,231 184,836 32,567 135,440 115,419 64,220 937,055 775.000 2,244,537 25,861,642 1,256,835 1,242,000 ( 292,546) 2,206,289 7,212,941 219,854 (1,242,000) 775,000 $_9,172,084 Schedule A-2, Con't Variance - Favorable (Unfavorable) 141,616 ( 16,428) 125,188 176,794 122,084 ( 4,600) 294,278 ( 1,473) ( 1,473) 85,059 ( 184,836) ( 32,567) 14,116 55,591 14,903 ( 132,793) 629,284 2,026,942 42,000 137,347 $2,206,289 Schedule B-1 CITY OF BANGOR, MAINE Special Revenue Funds Balance Sheet June 30, 1985 (with comparative totals for June 30, 1984) Assets 1985 1984 Cash $ 90,253 $ 41,968 Due from other governments 107,928 223,883 Other assets - 218 $198,181 $266,069 Liabilities and Fund Balance Accounts payable $ 30,138 $ 90,568 Accrued leave _ 30,138 90,568 Reserve for encumbrances - 9,631 Designated fund balance 1682043 165,870 168,043 175,501 $198,181 $266,069 -25- CITY OF BANGOR, MAINE Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended June 30, 1985 Authorization Schedule B-2 Unexpended Actual Balances Revenues: Intergovernmental $ 2,396,790 $ 1,307,052 $ 1,089,738 Program Income - 138,906 ( 138,906) 2,396,790 1,445,958 950,832 Expenditures: Acquistion of real property 246,021 112,725 133,296 Public works facilities site improvements 1,003,499 770,564 232,935 Code enforcement 69,507 25,558 43,949 Clearance, demolition, rehabilitation 20,550 2,355 18,195 Disposition of real property 17,850 16,281 1,569 Completion of urban renewal, NDP projects ( 204,174) - ( 204,174) Relocation payment and assistance 160,657 14,372 146,285 Planning and management development 24,732 - 24,732 Administration 145,649 199,945 ( 54,296) Contingencies 147,130 ( 157) 147,287 Rehabilitation and preservation activities 328,800 238,824' 89,976 Planning & Urban Environmental Design 12,140 33,277 ( 21,137) Loss of rental income 1,925 - 1,925 Economic Development 128,765 21,614 107,151 Facade Improvements 370,000 18,058 351,942 Public Housing Modernization 2,206 - 2,206 2,475,257 1,453,416 1,021,841 Excess (deficiency) of revenues over expenditures $( 78,467) ( 7,458) $( 71,009) Fund balances at beginning of period as restated Fund balances at end of period -26- 175,501 $ 168,043 Schedule C-1 CITY OF BANGOR, MAINE Capital Projects Funds Combined Balance Sheet June 30, 1985 (with comparative figures -for June 30, 1984) Assets 1985 1984 Cash $ 367,941 $ 111,628 Securities 1,841,253 1,145,676 Receivables: Accounts 120,344 82,518 Deferred special assessments: Sewer construction 239,976 319,847 Street construction 154,141 216,072 Due from other governments 714,273 479,045 Due from enterprise fund 100,000 100,000 $3,537,928 $ 2,454,786 Liabilities and Fund Balances Liabilities - accounts payable $ 2,259 $ 61,136 Fund Balances: Reserved for encumbrances 633,907 1,048,778 Unreserved: Designated for capital project expenditures 1,571,546 ( 240,242) Undesignated: Future construction - General Fund 138,423 318,756 Future construction - Sewer Utility Fund 602,742 676,791 Future construction - Airport Fund 186,060 51,082 Future construction - Downtown Development 8,874 2,566 Deferred special assessments 394,117 535,919 Total fund balances 3,535,669 2,393,650 $3,537,928 $ 2,454,786 -27- Schedule C-2 CITY OF BANGOR, MAINE Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1985 Sever Reserves for Other Hospital Utility Airport future Buildings Streets Electrical Schools Projects Fund Fund Fund Construction Total Revenues: Interest income - - 59,448 59,448 Special assessments - - 44,410 44,310 Intergovernmental - 84,796 - 231,816 40,061 1,131,342 - 1,488,015 Miscellaneous - - - 159,824 159,824 Total revenues - 84,796 231,816 40,061 1,131,342 263,582 1,751,597 Expenditures: Capital additions 25,920 423,471 - 55,585 545,019 1,486 133,073 1,173,861 2,358,415 Miscellaneous - 26,312 26,312 Total expenditures 25,920 423,471 - 55,585 545,019 1,486 133,073 1,173,861 26,312 2,384,727 Excess (deficiency) of revenues over m expenditures ( 25,920) (338,675) - ( 55,585) (313,203) ( 1,486) (93,012) ( 42,519) 237,270 ( 633,130) Other financing sources: Operating transfers in (out) - - - - 200,149 - - 200,149 Proceeds from bonds 625,000 - 300,000 155,000 170,000 325,000 1,575,000 Excess (deficiency) of revenues and other sources over expend- itures and other uses ( 25,920) 286,325 - 244,415 41,946 168,514 (93,012) 282,481 237,270 1,142,019 Fund balances at beginning of period 162,542 41,618 8,605 62,453 182,089 - 384,503 ( 33,275) 1,585,115 2,393,650 Transfers from (to) reserves for future construction 52,000 165,975 - 78,000 - 244,208 - ( 540,183) - Completed projects, remaining fund balances closed out - ( 3,175) - ( 20,000) - ( 24,839) - 48,014 - Fund balances at end of period 188,622 490,743 8,605 306,868 282,035 168,514 510,860 249,206 1,330,216 3,535,669 Schedule D-1 CITY OF BANGOR, MAINE Enterprise Funds Combining Balance Sheet June 30, 1985 (with comparative totals for June 30 1984 Sewer Utility Airport Hospital Totals Assets Fund Fund Fund 1985 1984 Current assets: Cash (cash overdraft) $ 130,940 $( 99,282) $(122,045) $( 90,387) $( 435,679) Accounts receivable 127,957 641,789 181,210 950,.956 1,001,642 Less allowance for estimated uncollectible accounts - 24,487 12,593 37,080 34,193 Net accounts receivable 127,957 617,302 168,617 913,876 967,449 Inventory, at cost - 84,802 - 84,802 86,196 Prepaid expenses - 53,180 382 53,562 36,394 Total current assets 258,897 656,002 46,954 961,853 654,360 Property, plant, and equipment: Land 58,425 - 35,260 93,685 93,655 Buildings, plant, and equipment 5,417,193 - 1,791,693 7,208,886 7,136,052 Pipelines and mains 15,499,811 - - 15,499,811 13,090,279 Aircraft operational assets - 121,414,677 - 121,414,677 121,396,715 Construction in process 227,952 5,560,927 1,486 5,790,365 6,891,477 21,203,381 126,975,604 1,828,439 150,007,424 148,608,208 Less accumulated depreciation 5,111,481 24,656,029 1,150,241 30,917,751 27,649,672 Net property, plant, and equipment 16,091,900 102,319,575 678,198 119,089,673 120,958,536 Other assets: Deposits for construction with Capital Projects Funds 1,113,493 435,549 168,514 1,717,556 1,079,276 Operating rights net of accumulated amortization of $428,097 in 1985 and $380,968 in 1984 - 871,903 - 871,903 919,032 $17,464,290 $ 104,283,029 $ 893,666 $122,640,985 $123,611,204 Liabilities and Fund Equity Current liabilities: Accounts payable $ 39,909 $ 198,647 $ 32,601 $ 271,157 $ 189,640 Accrued Leave 5,662 73,865 22,874 102,401 98,000 Due to Capital Projects Funds - 100,000 - 100,000 100,000 Current installments - general obliga- tion bonds 231,401 76,339 10,000 317,740 314,058 Bonds anticipation notes payable - Total current liabilities 276,972 448,851 65,475 791,298 701,698 Long-term liabilities: Advance from General Fund - 500,000 - 500,000 500,000 General obligation bonds (Net of current portion) 1,421,049 783,172 260,000 2,464,221 2,286,420 Total long-term liabilities 1,421,049 1,283,172 260,000 2,964,221 2,786,420 Total liabilities 1,698,021 1,732,023 325,475 3,755,519 3,488,118 Contributed capital: City 5,528,988 - 69,796 5,598,784 5,739,194 Federal, state, and other contributions 5,924,864 100,691,914 480,100 107,096,878 108,785,986 Customers 654,584 - - 654,584 555,016 Total contributed capital 12,108,436 100,691,914 549,896 113,350,246 115,080,196 Retained earnings 3,657,833 1,859,092 18,295 5,535,220 5,042,890 Total fund equity 15,766,269 102,551,006 568,191 118,885,466 120,123,086 $17,464,290 $104,283,029 $__8931666 $122,640,985 5123,611,204 -29- CITY OF BANGOR, MAINE Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings Year ended June 30, 1985 Sewer - Utility Airport Fund Fund - Operating revenues - charges for services $ 697,534 Operating expenses: Operating expenses other than depreciation 479,354 Depreciation and Amortization: On assets acquired with own funds 118,616 On assets acquired with contribu- tions 265,322 Total operating expense 863,292 Operating income (loss) ( 165,758) Non-operating Revenue (Expense): Interest income 59,630 Interest expense ( 101,771) Operating transfer from General Fund - Income from sale of property - Net non-operating revenue (expense) ( 42,141) Net income (loss) ( 207,899) Retained earnings at beginning of period 3,600,410 Depreciation and amortization on assets acquired with contributions 265,322 Retained earnings At end of period $3,657,833 -30- Hospital Fund Schedule D-2 Total $4,138,012 $1,350,974 $ 6,186,520 3,576,070 181,993 2,684,697 6,442,760 (2,304,748) 5,273 ( 69,794) 126,000 61,479 (2)243,269) 1,417,664 2,684,697 $1,859,092 1,416,400 11,444 57,128 1,484,972 ( 133,998) ( 22,048) 92,397 70,349 ( 63,649) 24,816 57,128 $ 18,295 5,471,824 312,053 3,007,147 8,791,024 (2,604,504) 64,903 ( 193 ,613) 92,397 126,000 89,687 (2,514,817) 5,042,890 3,007,147 $5,535,220 CITY OF BANGOR, MAINE Enterprise Funds Combining Statement of Changes in Financial Position Year ended June 30, 1985 Sewer Utility Fund Sources of working capital: Operations: Net income (loss) $(207,899) Items not requiring working capital - depreciation and amortization 383,938 Working capital provided by operations 176,039 Contributions: City _ Customers 105,795 Federal, state, and other 40,061 Proceeds of bond issue - $ 321,895 Uses of working capital: Deposits for capital projects $ 52,307 Acquisition of property, plant and equipment 192,900 Current installment general obligation bonds 230,933 Decrease in due to general fund - Increase (decrease) in working capital (154,245) $ 321,895 Elements of net increase (decrease) in working capital: Cash (109,481) Accounts receivable 3,631 Inventory _ Prepaid expenses - Accounts payable ( 28,822) Current installments of long-term debt and notes payable ( 19,573) Net increase (decrease) in working capital $(154,245) -31- Airport Hospital Fund Fund $(2,243,269) $( 63,649) 2,866,690 68,572 623,421 1,131,341 325,000 $ 2,079,762 $ 417,459 1,191,821 76,266 394,216 $ 2,079,762 412,701 18,871) 1,394) 17,245 41,356) 25,891 4,923 170,000 $ 174,923 $ 168,514 18,487 10,000 ( 22,078) $ 174,923 42,072 ( 38,333) ( 77) ( 15,740) ( 10,000) Schedule D-3 Total $(2,514,817) 3,319,200 804,383 1 105,795 1,171,402 495,000 $ 2,576,580 $ 638,280 1,4 03,208 317,199 217,893 $ 2,576,580 345,292 ( 53,573) ( 1,394) 17,168 ( 85,918) ( 3,682) $ 394,216 $(_2_2,078) $ 217,893 -.. - 71 Schedule E-1 CITY OF BANGOR, MAINE Fiduciary Funds Combining Balance Sheet June 30, 1985 (with comparative totals for June 30, 1984) Nonexpendable Trust Funds Expendable Revolving Trust Funds Endowment Loan Endowment Agency Totals Principal Principal Revenues Fund 1985 1984 Cash $( 2,626) $ 3,697 $163,782 $472,881 $ 637,734 $ 621,937 Investments, at cost (Market Value, 1985 - $498,491 1984 - $433,224) 490,086 23,685 - - 513,771 488,622 Receivables: - - 16,168 16,168 46,714 Accounts Loans from students - - 34,420 - - 342420 34,500 $ 487,460 $61,802 $163,782 $4891049 $1,202,093 $1,191,773 Liabilities and Fund Balances Liabilities - Amounts held - - 489,049 489,049 507,724 by agency fund for others - Fund balances: - 61,802 - - 61,802 60,043 Reserve for loans - 487,460 481,861 Reserve for endowments 487,460 - - Unreserved - designated for 163,782 - 163,782 142,145 subsequent expenditures - - Total. fund balances 487,460 61,802 163,782 - 713,044 6841049 $ 4872460 $61,802 $163,782 $489,049 $1,202 , 093 $1,191,773 Schedule E-2 CITY OF BANGOR, MAINE Expendable Trust Funds Combined Statement of Revenues, Expenditures and Changes in Fund Balance Year ended June 30, 1985 Total Revenues 200 Expenditures: Perpetual care fees 15,000- Distribution 5000Distribution of earnings to Home for Aged Women 4,314 Other payment to beneficiaries 924 Total expenditures 20,238 Excess of expenditures over revenues (20,038) Other financing sources - operating transfers in 41,675 Excess of revenues and other financing sources over expenditures 21,637 Fund balances at beginning of period 142,145 Fund balances at end of period 163,782 -33- Schedule E-3 CITY OF BANGOR, MAINE Nonexpendable Trust Funds Combining Statement of Revenues, Expenses, and Changes in Fund Balances Year ended June 30, 1985 Revolving Endowment Loan Principal Principal Total Operating revenues: Interest 41,675 1,758 43,433 Lot sales 5,600 - 5,600 Income before operating transfers 47,275 1,758 49,033 Transfer to expendable trust 41,675 - 41,675 Net income 5,600 1,758 7,358 Fund balances at beginning of period 481,861 60,043 541,904 Fund balances at end of period 487,461 61,801 549,262 -34- CITY OF BANGOR, MAINE Assessed Valuation, Commitment and Collections Year ended June 30, 1985 Valuation: Land and Buildings -- Personal Property Total valuation Commitment: Real estate and personal property Tax rate Total commitment Add: Supplemental taxes committed 438,259,600 46,124,700 Less: Collections - 1985 Abatements 1985 Taxes receivable at June 30, 1985 -35- 484,384,300 15,500,298 300,637 15,800,935 15,112,575 78,952 cnn tAn Schedule F CITY OF BANGOR, MAINE Property Tax Valuations, Levies and Collections Last Ten Fiscal Periods Table 1 Fiscal Assessed Property Property Collections In %-age of Year Valuation Tax Rate Tax Levy Year of Levy Collections 1976 235,479,850 45.30 9,917,054 9,344,192 94.2 1977 207,516,620 44.20 9,172,235 8,649,300 94.3 1978 402,443,210 21.00 8,451,307 7,909,538 93.6 1979 439,217,620 22.15 9,728,670 -9,000,454 92.5 1980 452,386,680 27.00 12,214,440 11,367,550 93.1 1981 456,484,410 30.90 14,105,368 13,270,358 94.1 1982 455,736,970 16.95 7,724,742 6,975,777 90.3 1983 462,895,320 31.68 14,664,524 13,957,974 95.2 1984 470,635,982 33.63 15,827,488 15,100,933 95.4 1985 484,384,300 32.00 15,500,298 15,112,575 97.5 *Six month period during June 30, 1982 -36- *Six month period ending June 30, 1982 -37- Table 2 i CITY OF BANGOR, MAINE Local Assessed Valuations Last Ten Fiscal Periods Fiscal Year Tax Rate Total Assessed Valuation Real Property Personal Property 1976 45.30 235,479,850 179,132,420 56,347,430 1977 44.20 207,516,620 184,802,520 22,714,100 1978 21.00 402,443,210 369,321,000 33,122,210 1979 22.15 439,217,620 401,043,500 38,174,120 1980 27.00 452,386,680 411,926,970 40,459,710 1981 30.90 456,484,410 416,146,390 40,338,020 1982* 16.95 455,736,970 415,706,430 40,030,540 1983 31.68 462,895,320 420,325,190 42,570,130 1984 33.63 470,635,982 424,900,452 45,735,530 1985 32.00 484,384,300 438,259,600 46,124,700 *Six month period ending June 30, 1982 -37- Table 3 CITY OF BANGOR, MAINE General Fund Expenditures by Function** Last Ten Fiscal Periods Public Fiscal General Public Recreation Health and Taxes Paid Buildings 6 Public Education Debt Service Designated Fund Balance Other Total Year Gov't. Safety Welfare to County Services 1976 1,015,975 2,295,425 1,587,810 246,240 2,400,524 7,988,330 923,476 62,000 1,589,670 18,109,450 1977 955,180 2,537,640 1,509,980 206,811 2,898,632 8,154,208 972,573 - 1,521,205 18,756,229 1978 1,059,946 3,133,111 1,879,352 223,380 3,319,288 8,835,493 898,134 - 712,683 20,061,387 1979 1,048,760 3,329,734 2,009,184 232,933 2,950,231 9,283,418 1,131,435 _ 640,209 20,625,904 1980 1,166,412 3,655,703 1,337,476 261,554 3,149,476 9,548,763 1,114,296 - 630,109 20,863,789 1981 1,153,910 3,973,885 1,128,013 364,753 3,416,166 10,225,919 1,121,820 - 656,239 22,040,705 1982* 735,625 2,056,660 598,959 - 1,863,254 5,764,457 302,585 - 353,975 11,675,515 �1983 m 1,421,132 4,262,987 1,384,122 389,817 3,391,773 10,414,896 1,052,511 _ 696,269 23,013,507 1 1984 1,621,971 4,819,962 1,507,402 372,117 3,550,215 10,442,128 998,226 _ 714,854 24,026,875 1985 1,664,091 4,956,714 1,416,060 363,532 3,433,451 11,461,231 937,055 775,000 854,508 25,861,642 *Six month period ending June 30, 1982 **Budget Basis Table 4 CITY OF BANGOR, MAINE General Fund Revenue by Source Last Ten Fiscal Periods *Six month period ending June 30, 1982 Licenses Fines Charges Fiscal Property Other and and Use of Money Intergovernmental For Totals Year Taxes Taxes Permits Forfeits and Property Revenue Services Reimbursements Revenues 1976 10,157,116 832,077 144,821 63,541 619,050 6,073,955 787,657 246,539 18,924,756 1977 9,172,234 958,930 173,573 82,309 6969847 7,343,762 841,062 291,216 19,559,933 1978 8,496,217 946,050 148,985 70,339 587,073 7,224,565 957,630 215,842 18,646,701 1979 9,733,430 989,836 167,123 87,261 709,967 6,749,373 949,370 255,624 19,641,984 1980 12,220,516 1,056,989 163,874 62,751 764,235 5,619,916 1,0519435 310,445 21,250,161 1981 14,109,169 1,200,905 161,715 66,368 702,528 5,359,129 1,105,997 310,639 23,016,450 1982* 7,724,742 744,898 93,115 29,324 523,702 2,271,553 519,113 240,270 12,146,717 o 1983 15,0269000 1,374,309 145,881 62,615 1,0589435 5,6089420 1,120,140 292,549 24,688,349 1984 15,945,826 1,591,819 210,117 60,467 1,183,827 5,885,432 619,741 368,515 25,865,744 1985 15,967,934 1,727,442 234,607 60,879 1,733,772 6,601,075 533,474 259,294 27,118,477 *Six month period ending June 30, 1982 Table 5 CITY OF BANGOR, MAINE Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures Last Ten Fiscal Periods *Six month period ending June 30, 1982 **Budget Basis Total Total Percentage of Debt Fiscal General Bonded General Fund Service to Total Year Principal Interest Debt Service Expenditures ** General Expenditures 1976 792,474 499,448 1,291,922 18,109,450 7.134 1977 792,476 534,787 1,327,263 18,756,230 7.076 1978 759,360 461,101 1,220,461 20,061,387 6.084 1979 932,532 478,775 1,411,307 20,625,904 6.842 i 1980 821,939 575,120 1,397,059 20,863,789 6.670 0 1 1981 821,939 683,121 1,505,060 22,040,705 6.829 1982* 237,796 336,395 574,191 11,675,515 4.918 1983 568,767 483,744 1,052,511 23,013,507 4.573 1984 525,876 472,350 998,226 24,026,875 4.155 1985 504,719 432,336 937,055 25,861,642 3.623 *Six month period ending June 30, 1982 **Budget Basis Table 6 CITY OF BANGOR, MAINE Debt Service Requirements to Maturity General Obligation Bonds Fiscal Total Year Principal Interest Requirement 1986 1,140,000 836,846 1,976,846 1987 1,280,000 769,956 2,049,956 1988 1,260,000 692,306 1,952,306 1989 1,135,000 615,824 1,750,824 1990 1,070,000 546,025 1,616,025 1991 1,045,000 469,468 1,514,468 1992 980,000 396,283 1,376,283 1993 965,000 326,392 1,291,392 1994 965,000 255,922 1,220,922 1995 865,000 187,223 1,052,223 Subsequent 1,805,000 383,309 2,188,309 12,510,000 5,479,554 17,989,554 -41- CITY OF BANGOR, MAINE Ratio of General Bonded Debt To Assessed Value and General Bonded Debt Per Capita Last Ten Fiscal Periods Fiscal Year Bonded Debt Valuation 1976 13,614,320 235,479,850 1977 12,485,880 207,516,620 1978 13,188,440 402,443,210 1979 15,025,000 439,217,620 1980 13,860,000 452,386,680 1981 12,695,000 456,484,410 1982* 13,625,000 455,736,970 1983 12,960,000 462,895,320 1984 11,925,000 470,635,982 1985 12,510,000 484,384,300 Rat io of General Bonded Debt to Assessed Value 5.8 6.0 3.3 3.4 3.1 2.8 3.0 2.8 2.5 2.6 Table 7 General Bonded** Debt Per Capita* 407.27 373.52 394.53 449.47 438.02 401.20 430.58 409.57 376.86 395.35 * Six month period ending June 30, 1982 ** Based on 1970 population of 33,428 through 1979 and 1980 population of 31,643 thereafter -42-