2017CITY OF BANGOR, MAINE
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR FISCAL YEAR JUNE 30, 2017
Community Developement Block Grant Programs
AfterBefore
Façade Grant
Neighborhood Public
Improvements
Neighborhood Stabilization
AfterBefore
Business Development
Before After
Residential Property Rehabilitation
CITY OF BANGOR, MAINE
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2017
Prepared by:
Debbie Cyr, Finance Director
David Little, Tax Collector/Deputy Treasurer
CITY OF BANGOR, MAINE
Comprehensive Annual Financial Report Table of Contents
For the Fiscal Year Ended June 30, 2017
INTRODUCTORY SECTION Page
Letter of Transmittal I - 1
GFOA Certificate of Achievement I - 7
Organizational Chart I - 8
Elected Officials and Principal Administrative Officers I - 9
FINANCIAL SECTION
Report of Independent Auditors II - 1
Management’s Discussion and Analysis II - 4
Basic Financial Statements: Exhibit
Government-wide Financial Statements:
Statement of Net Position 1 II - 19
Statement of Activities 2 II - 20
Fund Financial Statements:
Balance Sheet - Governmental Funds 3 II - 21
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 4 II - 22
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to the Statement of Activities 5 II - 23
Statement of Revenues, Expenditures and Changes in
Unassigned Fund Balance - Budget and Actual - General Fund 6 II - 24 Statement of Net Position – Proprietary Funds 7 II - 25
Statement of Revenues, Expenses and Changes in
Net Position – Proprietary Funds 8 II - 27 Statement of Cash Flows – Proprietary Funds 9 II - 28
Statement of Fiduciary Net Position – Fiduciary Funds 10 II - 30
Notes to the Financial Statements II - 31
Required Supplementary Information
Schedule of Funding Progress – Retiree Healthcare Plan II – 60
Schedule of City’s Proportionate Share of Net Pension Liability II – 61
Schedule of City’s Contributions II – 62
Notes to Required Supplementary Information II – 63
CITY OF BANGOR, MAINE
Table of Contents, Continued
Schedule Page
Combining and Individual Fund Financial Statements and Schedules: Balance Sheet – General Fund A – 1 II - 64
Schedule of Revenues, Expenditures and Changes in
Unassigned Fund Balance – Budget and Actual – Budgetary Basis – General Fund A – 2 II - 65
Combining Balance Sheet – Nonmajor Governmental Funds B – 1 II - 69
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds B – 2 II - 70
Combining Balance Sheet – Nonmajor Special Revenue Funds B – 3 II - 71
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Special Revenue Funds B – 4 II - 72
Combining Balance Sheet – Nonmajor Permanent Funds B – 5 II - 73
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Permanent Funds B – 6 II - 74
Combining Statement of Net Position – Nonmajor Proprietary Funds C – 1 II - 75
Combining Statement of Revenues, Expenses and
Changes in Net Position – Nonmajor Proprietary Funds C – 2 II - 77
Combining Statement of Cash Flows - Nonmajor Proprietary Funds C – 3 II - 78
Fiduciary Funds:
Statement of Changes in Assets and Liabilities – Agency Funds D – 1 II - 80
Capital Assets Used in the Operation of Governmental Funds:
Schedule of Changes by Function and Activity E – 1 II - 81
Other Information:
Assessed Valuation, Commitment and Collections F – 1 II - 82
General Fund Unassigned Fund Balance Sufficiency Calculation F – 2 II - 83
CITY OF BANGOR, MAINE Table of Contents, Continued
STATISTICAL SECTION
Table Page Financial Trends:
Net Position by Component 1 III – 1
Changes in Net Position 2 III – 2 Governmental Activities Tax Revenues by Source 3 III – 5
Fund Balances of Governmental Funds 4 III – 6
Changes in Fund Balances of Governmental Funds 5 III – 7
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property 6 III – 8
Property Tax Rate – Direct and Overlapping Governments 7 III – 9
Principal Property Taxpayers 8 III – 10
Property Tax Levies and Collections 9 III – 11
Debt Capacity:
Ratios of Outstanding Debt by Type 10 III – 12
Ratio of Net General Obligation Debt to Assessed Value and
Net Obligation Debt Per Capita 11 III – 13
Computation of Direct and Overlapping Debt 12 III – 14
Legal Debt Margin Information 13 III – 15
Demographic and Economic Information:
Demographic and Economic Statistics 14 III – 16
Principal Employers 15 III – 17
Operating Information:
Full-time Equivalent City Government Employees by Function 16 III – 18
Operating Indicators by Function 17 III – 19
Capital Asset Statistics by Function 18 III – 20
INTRODUCTORY SECTION
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FINANCE DEPARTMENT Deborah A. Cyr, Finance Director
(207)992-4253 fax (207)945-4446 debbie.cyr@bangormaine.gov
73 Harlow Street • Bangor, Maine 04401
January 30, 2017
To the Honorable Chair,
Members of the Bangor City Council, and
Citizens of Bangor
In accordance with the City Charter and state statutes, the City of Bangor’s
comprehensive annual financial report for the fiscal year ended June 30, 2017 is
hereby submitted. Responsibility for both the accuracy of the data and the
completeness and fairness of the presentation, including all disclosures, rests with
the City of Bangor. To the best of our knowledge and belief, the enclosed data is
accurate in all material respects and is reported in a manner that presents fairly the
financial position and results of operations of the City of Bangor on a government
wide and fund basis.
The City is responsible for establishing and maintaining an internal control
framework designed to ensure that the assets of the City are protected from loss,
theft, and misuse and that adequate accounting data is compiled to allow for the
preparation of financial statements in conformity with generally accepted accounting
principles (GAAP). 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 the costs of control should not exceed the
benefits likely to be derived and that the valuation of costs and benefits requires
estimates and judgments by management.
The City’s financial statements have been audited by Runyon Kersteen Ouellette.
The goal of the independent audit is to provide reasonable assurance that the
financial statements are free of material misstatement. The independent audit
involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial
statement presentation. The independent auditor’s unmodified opinion is presented
as the first component of the financial section of this report.
Further, the City is required to undergo an annual single audit in conformity with the
provisions of the U.S. Office of Management and Budget’s Uniform Guidance.
Information related to this single audit, including a schedule of expenditures of
federal awards, findings, questioned costs, recommendations, and the independent
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auditor’s reports on the internal control structure and compliance with applicable
laws and regulations, is included in a separately issued single audit report.
Governmental Accounting Standards Board (GASB) requires that management
provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of 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’s MD&A can be found immediately following the
independent auditor’s report.
Profile of the Government
The City of Bangor, which occupies approximately 35 square miles on the western
shore of the Penobscot River, was first settled in 1656, incorporated as a town on
February 25, 1791 and as a city on February 12, 1834. The City of Bangor is the
third largest City in Maine and serves as the County Seat for Penobscot County. As
a result, Bangor serves as the major trade, distribution, service, and commercial
center for the central, eastern, and northern portions of the State.
Bangor has operated under a Council-Manager Charter, since 1931. The City Council
is composed of nine members, elected at large, for three-year staggered terms. The
Charter grants to the Council all powers to enact, amend, or repeal rules,
ordinances, and resolutions relating to the City’s property, affairs, and government;
to preserve the public peace, health, and safety; to establish personnel policies; to
give effect to any vote of the City; and to authorize the issuance of debt. The
Council adopts an annual budget and provides for an annual audit. The City
Manager is the chief administrative officer of the City and is appointed by the
Council, as are the Assessor, Solicitor, and Clerk.
The School Department is governed by a seven-member School Committee with the
Superintendent is responsible for the day to day operations of the schools.
Members of the school committee are elected at large to staggered three-year
terms. By Charter, the School Committee has all the powers and responsibility for
the care and management of the public schools of the City. By Charter, The
Committee annually furnishes to the City Council an estimate of sums required for
school purposes for the ensuing municipal year.
The City Council makes a single gross appropriation for this purpose, which must be
ratified by the voters of Bangor at a referendum held prior to the start of the City’s
fiscal year. Once approved, the expenditure of this appropriation is under the
direction and control of the School Committee. The School Committee employs the
Superintendent of Schools as its chief operating officer.
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The City provides a full range of municipal services including police and fire,
highways, sanitation, health and welfare, parks and recreation, education, public
transportation, planning, business and economic development, code enforcement,
and general administrative services which are accounted for in the City’s General
Fund. Additionally, the City of Bangor owns and operates the Bangor International
Airport, sanitary sewer services, storm water utility, the Bass Park Complex (Cross
Insurance Center), parking facilities, golf course, and economic development
(properties), which are accounted for in the City’s enterprise funds.
The City’s fiscal year begins on July 1 and the annual budget serves as the
foundation for the City’s financial planning and control. The budget is prepared by
fund, function, and department and the City Manager may transfer resources within
a department; however, transfers between departments require Council action.
The City Charter requires that the City Manager submit a recommended budget to
the Council by the second Monday in April, which includes the general fund, school
budget, and seven enterprise funds. The budget, which must be in balance, contains
estimates of all non-tax revenues and receipts expected to be received during the
next fiscal year, the expenditures necessary to support City operations, debt service
requirements, and the tax levy required to achieve balance between revenues and
expenditures. The Council may modify recommended expenditures and as well as
the recommended tax levy. In accordance with the City Charter, if the Council fails
to adopt a budget by June 30, the City Manager’s proposed budget is enacted. The
appropriate property tax levy is established and filed with the City Assessor, who
then sets the necessary property tax rate.
Special revenue funds do not have adopted budgets but have program budgets.
Budgetary controls are maintained on other governmental funds through formal
authorizations by the City Council and through grant agreements. All budgets are
legally adopted by the City Council through the passage of appropriation resolves.
Factors Affecting Financial Condition
Local Economy. The City of Bangor serves as the major service center in northern
and eastern Maine for a variety of services including communications, banking,
retail, industrial, transportation, and healthcare. Additionally, the City serves as the
center for federal, state and county governments. Bangor also serves as northern
New England's economic link to the Canadian Maritimes and eastern Quebec.
Bangor has a stable and varied economic base. Major employers include a
diversified mix of health care, educational, professional, retail, manufacturing, and
governmental entities. Bangor’s 2017 unemployment rate of 3.7% was lower than
both the national and state rates of 4.4% and 3.8%, respectively.
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Bangor serves as one of the largest retail markets in Maine. The Bangor Mall,
Airport Mall, Broadway commercial center, Union Street commercial corridor, and
the Bangor Center Development District (downtown) have long established Bangor
as the hub of the six county eastern Maine retail market. Bangor's retail sector
serves an extensive geographic area ranging from eastern Maine to the Canadian
Maritimes, with a population exceeding 3.1 million. With less than three percent of
the State’s population, Bangor’s share of the State’s retail sales is proportionally
higher. In FY 2017, Bangor’s retail taxable sales were $1.37 billion and represent
6.32% of total State retail taxable sales. However, shifts in the retail market have
created challenges in some of our large retail centers. Specifically, the Bangor Mall
is facing the same challenges that are being faced by retail centers around the
country. The implications of this challenge are being monitored closely and the city
will be working proactively with mall owners to seek new uses for important retail
properties.
The City is committed to preserving its viable economic base while creating new
opportunities for future residential and commercial growth. To achieve these
objectives, the City is proactive in supporting economic activity through planned
capital improvements, innovative financing, and aggressive marketing as well as
enhancing our citizens’ quality of life. Similar to other areas of the country, Bangor
is experiencing significant growth in the downtown area including retail, dining,
residential, and office space. New mixed-use redevelopment projects completed
over the past 5 years has led to low vacancy rates and the development of high-end
residential apartment units. Public and private developments along Main Street
including development of the Casino, Cross Insurance Center, Marriot Residence Inn
and relocation of corporate headquarters for Cross Insurance have played a
significant role in that growth. In 2017, Bangor Savings Bank broke ground on a
new headquarters campus facility in the downtown, which bridges the areas of
lower Main Street, downtown, and the waterfront. The project will consolidate
corporate offices along with back office functions onto one campus.
Further evidence of continuing sustained growth is the change that can be
measured by the City’s assessed value of real and personal property. The annual
increase in assessed value is a combination of three factors: 1) market adjustments
to existing property, 2) new construction/additions, and 3) personal property
depreciation. Assessed valuations have remained relatively flat since the FY 2011
economic downturn. However, personal property enrolled in the Business
Equipment Tax Exempt program (BETE) continue to increase annually, an indication
of continued commercial investment within the City. As the City’s assessed
valuation has remained flat, the City also realized significant reductions in State-
funded revenue sharing, aid to education and absorbed additional tax shifts related
to general assistance and Medicare/Medicaid. The City continues to implement cost
control measures wherever identified, including work force reductions. Despite the
cost control measures, the reductions in revenues and cost shifts are the major
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contributing factor in the overall increase of 19.68% in the tax rate from 2008 to
2017.
Long-term financial planning and major initiatives. The City’s capital
improvement plan is an integral part of the annual budget process. A complete list
of near-term improvements is submitted as part of the City Manager’s budget
submission for all City functions. The plan includes projects anticipated within the
coming one to two-year period with an indication of how the City anticipates funding
the improvements. Certain improvements are longer term in nature and are
updated and reviewed via the City Council’s committee structure on an as-needed
basis.
The City has made significant investments in its operating and capital infrastructure
to support its economic base. Major areas of investment include:
$4.2 million invested in streets, sidewalks, traffic control, and other
infrastructure;
Completion of the $14 million reconstruction of Bangor International Airport’s
domestic air service terminal;
$878 thousand invested in leased facilities in support of the growth and
development of C&L Aerospace and Wayfair;
$4.4 million invested in the upgrade and separation of the City’s combined
sewer systems;
Continued investment in the City’s core downtown to encourage mixed use
development, including residential, commercial and cultural opportunities,
including $748 thousand improvement to the Cross Insurance Center parking
lot.
The City is proactively addressing quality of life issues and housing opportunities.
Key initiatives to date include:
Participation in the AARP age-friendly community initiative;
Proactive approaches to disruptive and foreclosed properties across
operational areas;
Provided assistance to homeowners and designated neighborhoods through
CDBG funding;
Leadership in the Community Health Leadership Board to address community
drug and alcohol issues;
Sustained commitment to academic excellence for all;
Energy efficiency rebate program;
Continued support of arts and culture.
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Finally, the City continues to implement significant technology and process
improvements to increase the overall organizational efficiency and enhance citizen
communication and engagement.
Relevant Financial Policies. City policy prescribes uses for unassigned fund
balances. In general, unassigned fund balance is not to be used to fund any portion
of the on-going and routine year-to-year operating expenditures of the City. It is to
be used primarily to ensure adequate fund balances, to respond to unforeseen
emergencies, and to provide overall financial stability.
By Charter, the City is to maintain an unassigned fund balance of no more than
16.66% and no less than 8.33% of prior year expenditures and the Council has
determined that a reasonable target is 8.33%. Unassigned fund balance in the
General Fund as of June 30, 2017 was 12.75% of expenditures, net of debt service.
Awards and Acknowledgements. The Government Finance Officers Association
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting
to the City of Bangor for its comprehensive annual financial report for the fiscal year
ended June 30, 2016. In order to be awarded a Certificate of Achievement, a
government 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 for
consideration for another certificate.
The preparation of this document would not have been possible without the hard
work of all of the City’s employees. Each one contributes on a daily basis, simply by
carrying out the responsibilities of their positions.
Our sincerest thanks are once again extended to our citizens and the Bangor City
Council for their continued support for our efforts to further develop the City’s
financial management and reporting capabilities. We are confident that we have
once again met their expectations.
Respectfully submitted,
Debbie Cyr
Finance Director
CITYMANAGER
CITIZENSOFBANGOR
CITIZENCOMMISSIONS CITIZENBOARDS
CITYCLERK
CITYCOUNCIL
ASSESSINGCITYSOLICITOR
VOTER
REGISTRATION
ANIMALCONTROL
ELECTIONS
CITY OF BANGOR ORGANIZATIONAL CHART Revised (10-15)
FINANCE
AUDITING
TREASURY
RISK &ENVIRONMENTALMANAGEMENT
INFORMATIONSERVICES
PURCHASING
PUBLIC WORKS
WASTERWATER TREATMENT
WATER QUALITY MANAGEMENT
HARBOR
ENGINEERING
PLANNING
CODEENFORCEMENT
INFRASTRUCTURE
POLICE
DETECTIVE
PATROL
ADMINISTRATION
SERVICES
COMMUNITY &ECONOMIC DEVELOPMENT
COMMUNITYDEVELOPMENT
ECONOMICDEVELOPMENT
DOWNTOWNPROGRAMS
PARKINGMANAGEMENT
BANGORINTERNATIONALAIRPORT
CROSS INSURANCE CENTER
STATEFAIR
BASS PARK
ADMINISTRATION
FIREPREVENTIONBUREAU
FIREFIGHTING
FIRE
LABORRELATIONS
ADMINISTRATIVESERVICES
HUMANRESOURCESSTORMWATER MANAGEMENT
COMMUNITYCONNECTOR
CENTRALSERVICES
HEALTH ANDCOMMUNITYSERVICES
GOVERNMENT
OPERATIONS
PARKSMAINTENANCE
RECREATION
PARKS ANDRECREATION
GOLFCOURSE
RECORDS
BANGOR REGION PUBLIC HEALTH & WELLNESS DIVISION
HOUSING & COMMUNITY SERVICES DIVISION
FLEETMAINTENANCE
I - 9
City of Bangor, Maine Elected Officials and Principal Administrative Officers June 30, 2017
City Council
Joseph Baldacci, Chair
Sean Faircloth Gibran Graham
David Nealley Sarah Nichols
Joseph Perry Benjamin Sprague Daniel Tremble Cary Weston
City Staff
Catherine M. Conlow, City Manager
Philip Drew, City Assessor
Lisa Goodwin, City Clerk
Norman Heitmann, City Solicitor
School Committee
Warren Caruso, Chair
Jennifer Degroff Brian Doore
Susan Hawes, Vice Chair Susan Sorg
Marlene Susi Carin Sychterz
School Staff
Betsy Webb, Superintendent of Schools
FINANCIAL SECTION
II-1
Certified Public Accountants and Business Consultants
Independent Auditor’s Report
City Council
City of Bangor, Maine:
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the discretely presented component unit, each major fund, and the aggregate remaining
fund information of the City of Bangor, Maine, as of and for the year ended June 30, 2017,and the
related notes to the financial statements,which collectively comprise the City’s basic financial
statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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City Council
City of Bangor, Maine
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City
of Bangor, Maine, as of June 30, 2017, and the respective changes in financial position and,where
applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the schedule of funding progress for the retiree’s health care plan, the schedule
of the City’s proportionate share of the net pension liability, and the schedule of City contributions, 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 of Bangor, Maine’s basic financial statements. The introductory section,
combining and individual fund financial statements, other schedules, and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements.
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City Council
City of Bangor, Maine
The combining and individual fund financial statements and the other schedules 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 statements and other
schedules are fairly stated,in all material respects,in relation to the basic financial statements as a
whole.
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 January 30,
2018, on our consideration of the City of Bangor, Maine’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
the City of Bangor, Maine’s internal control over financial reporting and compliance.
January 30, 2018
South Portland, Maine
II - 4
MANAGEMENT’S DISCUSSION AND ANALYSIS
Management of the City of Bangor offers this narrative overview and analysis of the financial
activities of the City for the fiscal year ended June 30, 2017. In addition to comparative
information from the government-wide statements, comparative data is also presented on key
information from the fund financial statements. We encourage readers to consider the
information presented here in conjunction with additional information that is furnished in our letter of transmittal, which can be found on pages I-1 to I-6 of this report.
Financial Highlights
The assets and deferred outflows of the City of Bangor exceeded its liabilities and deferred
inflows at the close of the most recent fiscal year by $205.9 million (net position).
At the close of fiscal year 2017, the City of Bangor’s governmental funds reported combined
ending fund balances of $29.7 million, a decrease of $2.3 million over the prior year balance of $32.0 million. The Capital Projects Fund fund balance decreased by $3.5 million, due to
the expenditure of bond proceeds issued in a prior year related to the refunding of debt and
investment in infrastructure. The General Fund fund balance increased by $1.0 million.
General Fund revenues exceeded estimates by $3.8 million as follows; excise taxes $1.2
million, property taxes $353 thousand, intergovernmental revenues $663 thousand, and
charges for service $1.5 million. During fiscal year 2017, $2.3 million of the General Fund
balance was transferred to the Capital Fund to pay for capital improvements in accordance with the City’s Fund Balance policy. All other governmental fund fund balances remained
relatively unchanged from prior year amounts. Approximately 74.3% of the total amount,
or $22.1 million, is either committed, assigned or unassigned and is available for spending
at the City Council’s discretion, if needed.
The City of Bangor has a fund balance policy. By Charter, the City is to maintain an
unassigned fund balance of no more than 16.66% and no less than 8.33% of prior year
expenditures, net of debt service. At the end of the current fiscal year, unassigned fund balance for the General Fund was $12.2 million, or 12.75% of the general fund expenditure
base. The annual calculation is included within the financial statements as Schedule F-2.
The total liabilities and deferred inflows of resources of the City’s governmental and
business-type activities decreased $3.3 million and $133 thousand, respectively. For governmental activities, the decrease is a result of principal payments on general obligation
bonds in the amount of $7.1 million net of the increase in net pension liability and related
deferred inflows of resources of $3.1 million.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Bangor’s basic
financial statements. These statements consist of three components: government-wide
financial statements, fund financial statements, and notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial
statements themselves. Government-wide financial statements. The government-wide financial statements
present the financial picture of the City from the point of view of economic resources
measurement and using the accrual basis of accounting, which is similar to that used by
II - 5
private-sector companies. These statements present governmental activities and business-type activities separately.
The statement of net position includes all of the City’s assets, liabilities and deferred inflows and
outflows, with the difference between them reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the
City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that are
accrued but not yet paid or collected but will result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused employee vacation leave).
These statements are divided into two categories: governmental activities and business-type
activities. Governmental activities – Most of the City’s basic services are included here, such as the
general government, public safety, public works, health and welfare, education, and parks
and recreation. These activities are principally supported by taxes and intergovernmental revenues.
Business-type activities – Currently, the City operates the following business-type activities:
Bangor International Airport, Sewer Utility, the Bass Park Complex, Stormwater Utility,
Parking, Golf Course, and Economic Development.
The government-wide financial statements can be found on pages II-19 to II-20 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City
of Bangor, 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
can be divided into three categories: governmental funds, proprietary funds, and fiduciary
funds.
Governmental funds are used to account for mostly the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements are reported
using an accounting method called modified accrual accounting that measures cash and all
other financial assets that can readily be converted to cash. Both the governmental fund
balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate a comparison between
governmental funds and governmental activities.
The City of Bangor maintains ten individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement
of revenues, expenditures, and changes in fund balances for the General Fund, Community
Development Block Grant, Arena fund, and Capital Projects Fund, all of which are
considered to be major funds. Data from the other six governmental funds are combined into a single aggregated presentation. Individual fund data for each of these non-major
II - 6
2017 2016 2017 2016 2017 2016
Current & other assets 43,365,544$ 45,360,502$ 32,500,253$ 27,577,992$ 75,865,797$ 72,938,494$
Capital assets, net of
accumulated depreciation 75,889,101 75,420,521 225,010,237 230,444,082 300,899,338 305,864,603
Total assets 119,254,645 120,781,023 257,510,490 258,022,074 376,765,135 378,803,097
Deferred outflows of resources 3,936,229 3,633,929 874,285 802,922 4,810,514 4,436,851
Total deferred outflows 3,936,229 3,633,929 874,285 802,922 4,810,514 4,436,851
Long-term debt outstanding 72,291,657 76,604,213 85,462,083 84,529,953 157,753,740 161,134,166
Other liabilities 7,233,422 6,689,682 4,448,512 5,737,793 11,681,934 12,427,475
Total liabilities 79,525,079 83,293,895 89,910,595 90,267,746 169,435,674 173,561,641
Deferred inflows of resources 5,795,923 5,331,398 477,061 253,185 6,272,984 5,584,583
Total deferred inflows 5,795,923 5,331,398 477,061 253,185 6,272,984 5,584,583
Net position:
Net investment in capital assets 49,367,869 47,792,253 153,328,264 159,537,793 202,696,133 207,330,046
Restricted 3,547,716 4,045,808 - - 3,547,716 4,045,808
Unrestricted (15,045,713) (16,048,402) 14,668,855 8,766,272 (376,858) (7,282,130)
Total net position 37,869,872$ 35,789,659$ 167,997,119$ 168,304,065$ 205,866,991$ 204,093,724$
Governmental
Activities
Business-type
Activities Total
governmental funds is provided in the form of combining statements (Schedule B) elsewhere in this report.
The City of Bangor adopts an annual budget for its General Fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with this
budget (Schedule A-2).
Proprietary funds are used to account for essentially the same functions reported as
business-type activities in the government-wide financial statements. Enterprise funds are
the only type of proprietary funds maintained by the City. The proprietary fund statements
provide the same type of information as the government-wide statements, only in more
detail.
The City maintains seven individual proprietary funds, of which the Sewer Utility, Airport, and Bass Park Funds are considered to be major. Data from four other proprietary funds is
combined into a single aggregated presentation. Individual fund data for each of these
non-major proprietary funds is provided in the form of combining statements (Schedule C)
elsewhere in this report.
Fiduciary funds are used to account for resources held for the benefit of parties outside the
City. Fiduciary funds are not reflected in the government-wide financial statements because
the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The
Fiduciary Statement of Net Position is included in this report as Exhibit 10.
Government-wide Financial Analysis
The following is a condensed version of the Statement of Net Position.
II - 7
By far the largest portion of the City’s net position reflects its net investment in capital assets (i.e., land, buildings, machinery and equipment) less any related outstanding debt used to
acquire those assets. The City uses these capital assets to provide services to citizens.
Consequently, these assets are not available for future spending. Although the City’s
investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources since the capital
assets themselves cannot be used to satisfy these liabilities. Restricted net position refers to
those resources that are subject to external restrictions on how they may be used; such as donor, legal or granting agency restrictions. While the remaining balance of unrestricted net
position has a deficit of $377 thousand, the governmental activities deficit of $15.0 million is
offset by the business type activities balance of $14.7 million. The governmental activities
deficit is primarily due to $19.8 million in outstanding pension obligation bonds.
Governmental activities net position increased $2.1 million. The major components associated
with the increase in governmental activities net position is excise tax revenues exceeding
estimates by $1.2 million and public safety expenses below estimates due to savings realized
related to turnover and vacancies.
Business-type net position is virtually unchanged with a decrease of $307 thousand. Due to the capital intensive requirements of the Airport and Sewer Funds, the net position within business-
type activities can vary significantly from year to year depending upon grant fund cycles and
levels of infrastructure investments.
II - 8
2017 2016 2017 2016 2017 2016
Revenues
Program Revenues
Charges for services 18,795,482$ 18,157,571$ 31,102,229$ 28,366,080$ 49,897,711$ 46,523,651$
Operating grants & contributions 33,872,652 34,838,496 - - 33,872,652 34,838,496
Capital grants & contributions 2,391,680 3,064,312 3,776,705 8,776,331 6,168,385 11,840,643
General Revenues
Property and other taxes 63,471,807 62,865,431 1,100,000 1,000,000 64,571,807 63,865,431
Grants and contributions not
restricted to specific programs 4,464,142 4,173,167 - - 4,464,142 4,173,167
Other 380,580 668,099 555,259 420,951 935,839 1,089,050
Total Revenues 123,376,343 123,767,076 36,534,193 38,563,362 159,910,536 162,330,438
Expenses
General government 6,953,399 6,588,238 - - 6,953,399 6,588,238
Public safety 18,841,238 18,107,357 - - 18,841,238 18,107,357
Health, community and recreation 9,497,729 10,112,526 - - 9,497,729 10,112,526
Public services 15,997,665 15,409,518 - - 15,997,665 15,409,518
Other agencies 5,049,394 4,528,591 - - 5,049,394 4,528,591
Education 55,079,037 51,901,230 - - 55,079,037 51,901,230
Arena development 801,439 136 - - 801,439 136
Community development 1,335,282 1,592,047 - - 1,335,282 1,592,047
Waterfront - 331,622 - - - 331,622
Public transportation 3,273,876 3,166,692 - - 3,273,876 3,166,692
Interest on debt 2,142,976 2,362,899 - - 2,142,976 2,362,899
Economic development (tif)711,220 929,322 - - 711,220 929,322
Sewer Utility - - 7,725,453 7,210,861 7,725,453 7,210,861
Airport - - 21,217,373 20,266,935 21,217,373 20,266,935
Stormwater Utility - - 509,884 400,924 509,884 400,924
Parking - - 1,037,558 931,676 1,037,558 931,676
Bass Park - - 7,886,589 7,735,775 7,886,589 7,735,775
Municipal Golf Course - - 604,127 613,930 604,127 613,930
Economic Development - - 466,485 508,234 466,485 508,234
Total Expenses 119,683,255 115,030,178 39,447,469 37,668,335 159,130,724 152,698,513
Excess (deficiency) before
transfers 3,693,088 8,736,898 (2,913,276) 895,027 779,812 9,631,925
Gain on disposition of asset 62,180 - 931,275 422,984 993,455 422,984
Transfers (1,675,055) (2,012,149) 1,675,055 2,012,149 - -
Change in net position 2,080,213 6,724,749 (306,946) 3,330,160 1,773,267 10,054,909
Beginning net position 35,789,659 29,064,910 168,304,065 164,973,905 204,093,724 194,038,815
Ending net position 37,869,872$ 35,789,659$ 167,997,119$ 168,304,065$ 205,866,991$ 204,093,724$
TotalActivities
Business-type
Activities
Governmental
Changes in Net Position
The following is a condensed version of the Statement of Activities.
II - 9
Governmental Activities
The cost of all governmental activities was $119.7 million. As shown on the Statement of
Activities, the total amount financed by the property tax was $56.7 million, or 47% of expenses.
Those who directly benefit from an activity provided $18.8 million in payments. Other governments and organizations subsidized certain activities with operating grants and
contributions in the amount of $33.9 million. Capital grants and contributions accounted for
$2.4 million. The City also received $11.7 million in other general revenues such as state
revenue sharing, motor vehicle and boat excise taxes, homestead exemptions, and interest
earnings.
Total governmental activities expenses increased $4.7 million over the prior year, $2.8 million of
the increase was due to the increase in the net pension liability and associated changes within
the net pension related deferred inflows and outflows of resources. The net pension liability is the City’s proportionate share of the cost sharing multiple-employer defined benefit pension
plans, administered by the Maine Public Employers Retirement System (additional information
on retirement plans can be found in Note D on pages II-53 to II-57 of this report). The balance
of the remaining increase is related to an increase in education costs associated with additional
students.
$0 $10 $20 $30 $40 $50 $60
(in millions)
General Government
Public Safety
Public Services
Health, Community & Recreation
Other Agencies
Education
Arena Development
Comm Development
Public Transportation
Econonmic Development
Interest on Debt
Expenses and Program Revenues - Governmental Activities
Revenues
Expenses
II - 10
Total governmental activities’ revenues were flat, with a decrease of $390 thousand. The
largest single source of revenue continues to be the property tax, which increased $658 thousand. Capital grants and contributions decreased $672 thousand due to decreased project
specific federal funding of streets/sidewalks. Operating grants and contributions decreased
$966 thousand due to a reduction in the level and number of grants being funded by the State
of Maine Department of Health and Human Services. Charges for services increased $638
thousand due to higher levels of charges for educational activities related to the number of
tuition and state agency students.
Business-type Activities
Total business-type activities expenses increased $1.8 million, $758 thousand of the increase was due to the increase in the net pension liability and associated changes within the net
pension related deferred inflows and outflows of resources. The remaining $364 thousand of
increased expenses within the Airport Fund are personnel costs associated with increased levels
of fuel sales and domestic airline services. The remaining $312 thousand of increased expenses
with the Sewer Utility Fund reflect the increased level of repairs and maintenance within the
existing sewer infrastructure systems.
Revenues by Source - Governmental Activities
27%2%46%
6%4%15%
Charges for Services
Operating Grants & Contributions
Capital Grants & Contributions
Property Taxes
Other
Unrestricted Grants & Contributions
II - 11
In total, business-type activities revenue decreased $2 million or 5.3%, this decrease is due to
the significant reduction in grant contributions received for capital assets of $5 million mostly
associated with the domestic terminal renovation project. Due to the significant cost associated with infrastructure improvements funded through the Federal Airport Improvement Plan grant
program, it is not unusual that revenues realized from year to year vary significantly. Airport
Fund charges for services increased $2.3 million due to an increase in the number of gallons of
jet fuel sold, as well as an increase in the number of domestic flights.
Revenues by Source - Business-type Activities
Other
4%
Transfers
4%
Capital Grants and
Contributions
10%
TIF
3%
Charges for Services
79%
Charges for Services
Capital Grants andContributions
Transfers
TIF
Other
$0 $5 $10 $15 $20 $25
(in millions)
Sewer Utility
Airport
Stormwater
Parking
Bass Park
Golf Course
Econ Develop
Expenses and Program Revenues - Business-type Activities
Revenues
Expenses
II - 12
Financial Analysis of the Government’s Funds
Governmental funds. The focus of the City’s governmental funds reporting is to provide
information on near-term inflows, outflows, and balances of spendable resources. Fund
balance is the measure of a governmental fund’s spendable resources. Governmental funds
report fund balances in one of five possible classifications. The nonspendable portion of fund
balance cannot be spent. Restricted fund balances are subject to externally enforceable legal restrictions. Committed fund balances are subject to limitations the City Council has imposed,
that are binding unless removed in the same manner. Assigned fund balances reflect the
intended use of resources. Unassigned fund balances are resources which have not been
classified in any other category. Only the General Fund can report a positive unassigned fund
balance amount.
At fiscal year end, the City of Bangor’s governmental funds reported combined ending fund balances of $29.7 million, a decrease of $2.3 million over the prior year balance. The decrease
is primarily due to the expenditure of $3.5 million of bond proceeds issued in a prior year within
the Capital Fund exceeding the $1.0 million increase in the General Fund fund balance.
Increases in the General Fund fund balance are due to revenues exceeding estimates by $3.8
million net of $2.3 million of transfers to the Capital Fund for capital related improvements. All
other governmental fund fund balances remained relatively unchanged from prior year
amounts. Of the ending balance of $29.7 million, approximately 74.3% of this total ($22.1 million) is either committed, assigned or unassigned and is available for spending by formal
action of the City Council and $3 million, or 10.2%, is restricted. The remainder is
nonspendable, indicating that it is in the form of nonspendable assets such as inventory,
prepaid expenditures, nonexpendable trust principal balances and allowance for advances made
to other funds.
The General Fund is the chief operating fund of the City and is comprised of two major
functions; education and municipal services. At the end of the fiscal year, the General Fund’s total fund balance was $22.6 million, a $1.0 million increase from the prior year’s balance of
$21.6 million. The General Fund realized an increased in property tax and educational tuition
revenues, and increased expenses related to education for the cost of services to state agency
clients and public services due to significant winter conditions. The overall increase is due to excise tax receipts exceeding budget estimates by $1.2 million.
The Community Development Block Grant Fund accounts for the annual entitlement grant funds
received under the Housing and Community Development Act of 1974. Total expenditures for
FY 2017 decreased $151 thousand over the prior year amount. This is reflective of a decline in
program income, in that fewer residential loans are prepaying and the winding down of the
west-side neighborhood revitalization efforts, to which significant funds had been dedicated to over the last few fiscal years. While the FY 2017 federal funding allocation remained relatively
flat, it does represent a nearly 35% reduction since FY 2012.
The Arena Fund accounts for the allocation of slot and table game revenues received by the
City from the operation of the casino. The fund was established to finance the cost to replace
the aging Bangor Auditorium and Civic Center. During the year, the Arena provided $1.8 million
towards the annual debt service costs of the Cross Insurance Center.
II - 13
The Capital Projects Fund varies significantly from year to year depending upon City Council priorities and available funding opportunities. Total expenditures increased $2.7 million over
the prior year, $1.6 million of which is related to the refunding of outstanding general
obligations bonds. Significant project costs incurred in FY 2017 included $4.2 million
investment in streets/sidewalks and other infrastructure, $1.1 in facility improvements and $1.4
million in equipment replacements.
Proprietary funds. Information on the City of Bangor’s proprietary funds is similar to that
found in the government-wide financial statements, but in more detail. The net position of the
seven enterprise funds decreased by $307 thousand to $168 million. The Sewer Utility fund net
position increased $1.3 million due to annual rate increases to keep pace with inflation and in
advance of significant capital investments. The Airport Fund net position decreased $1.6 million and Bass Park Fund net position decreased $1.5 million, due to the capital-intensive nature of
these operations, operating income is not sufficient to offset depreciation expense and other
operating costs.
General Fund Budgetary Highlights
For budgetary financial statement purposes, all balances carried from the prior year are added
to the subsequent year’s total appropriation. This resulted in an overall budgetary increase of
$2.5 million. There were minimal additional amendments to the originally adopted budget. The City’s commitment to budgetary integrity continues, actual operating revenues ended the year
over budget estimates 3.74%, or $3.8 million, municipal expenditures were under budget by
1.4%, or $711 thousand. Education expenditures were under budget by $2.3 million or 4.3%
and by statute, education balances must be segregated from municipal balances. Capital Asset and Debt Administration
Capital assets. As of June 30, 2017, the City of Bangor’s investment in capital assets for its
governmental and business-type activities amounted to $300.9 million (net of accumulated
depreciation), a decrease of $5.0 million over the prior year. This investment includes land,
buildings, machinery and equipment, roads, runways, and sewer lines. Depreciation expense of
$17.5 million exceeded the City’s investment in capital assets for the current fiscal year of $12.9 million. Governmental activities invested $4.6 million, and business-type activities invested $8.3
million and depreciation expense was $4.0 million and $13.4 million, respectively.
Major capital asset events during the current fiscal year included the following:
The City continues to invest in its core functions of infrastructure, vehicle and equipment
replacements. This year the City expanded its surface infrastructure with traffic enhancements and open space infrastructure upgrades, which amounted to $877 thousand
and spent $1.1 million and $311 thousand to replace vehicles and equipment, respectively.
The Airport Fund invested $3.7 million in operational assets at Bangor International Airport.
During FY 2017, the renovation of the domestic terminal building was completed. The
project involved the reconfiguration of the entire first floor to better serve passengers such
as: new airline and rental car counters, a behind the wall in-line baggage screening,
restrooms and overall aesthetic improvements. The project included federal and passenger facility charge funds and a $1.6 million local share. During FY 2017, $652 thousand was
invested in this project. In addition to the terminal project, the Airport invested nearly $2.1
II - 14
million in runway system upgrades which are funded through the Federal Department of Transportation’s Airport Improvement Plan and $878 thousand in leasehold improvements.
The Sewer Fund invested $3.4 million in sewer replacement and separation projects.
During FY 2017, the Economic Development Fund sold a property to the current tenant for
$875 thousand.
During FY 2017, the Parking Fund sold a property for redevelopment for $250,000.
Capital Assets (net of depreciation)
Governmental Business-type
Activities Activities
Land and improvements $13,156,795 $4,466,350
Buildings and improvements 40,823,517 62,192,263
Machinery and equipment 1,486,742 2,684,102
Vehicles 6,556,083 -
Infrastructure 11,457,682 49,527,034
Parking structures - 1,946,180
Aircraft operational assets - 100,246,092
Construction in process 2,408,282 3,948,216
Total $75,889,101 $225,010,237
Additional information on the City’s capital assets can be found in Note C, Detailed Notes on all
funds, of this report.
Debt Administration
At fiscal year end, the City had a total outstanding bonded debt of $134.0 million, a decrease of
$6.7 million during the year.
The City’s general obligation debt obtained a “AA-” rating from Standard & Poor’s and a “Aa2”
rating from Moody’s.
State statutes limit the amount of general obligation debt a governmental entity may issue to
15% of its total State assessed valuation. The current debt limit for the City is $381.6 million,
an amount which is significantly in excess of existing general obligation debt.
Bonded Debt Outstanding (in millions)
$79.1
$55.0
Governmental Activities
Business-type Activities
II - 15
Additional information on the City’s long-term debt can be found in Note I on pages II-46 to II-
49 of this report.
Quality of Life
The City serves as the urban, commercial, healthcare, governmental service and cultural center of a large geographic area. Although this activity is beneficial to our citizens and the region, it
presents some additional social challenges for Bangor. Unfortunately, significant reductions in
State general assistance funding, housing assistance, mental health treatments, and medical
reimbursements as well as Federal reductions in programs such as Community Development
Block Grants have deepened the imbalance between the local cost for providing regional
services and broad based revenue sources to offset them.
Growth in the downtown, waterfront, and Main Street corridor continues to generate new
activity and renewed interest in the core of Bangor. After several years of vacancies, two
significant blocks of properties in the downtown have sold and are being redeveloped and
repurposed into mixed use developments that include residential, commercial, office and
cultural. The development of upscale residential apartments in the downtown has been
increasing steadily over the past few years. In 2017, Bangor Savings Bank acquired several
parcels of land, bordering the downtown, waterfront, and lower Main Street. They have broken ground on a new headquarters campus.
The City continues to focus planning and capital efforts on the bus services including
maintenance, replacement and facilities. A growing community interest in improving and even
expanding bus operations along with direct federal oversight has led to a more focused
planning process. To date, the City has invested in new building facilities, midlife and end of
life bus overhauls, and acquisition of new busses. In future years, the City will focus on
evaluating bus hub facilities, as well as continuing replacement of busses.
The City continues to struggle with vacant and abandoned properties throughout the city. To
address these issues, the City has implemented a number of programs including a vacant property registration program. This program has required banks to register foreclosed
properties and ensures that financial institutions are taking the steps necessary to ensure safety
and security of the property. The City has become more aggressive in identifying blighted housing and removing them or getting them restored and sold. The City actively works to
identify neighborhoods that would benefit from strategic investment to encourage and foster
single occupancy ownership and provides investment opportunities to match; such as through a
Community Development Block Grant program to assist in rehabilitation or acquisition of property or rebates for residential energy efficiency improvements.
Despite being the youngest city in Maine, Bangor has a substantial population of elderly in the
community. In 2015, a City supported senior center closed down leading the City to take a
more active role in livability for seniors. In 2016, the City joined the AARP livable community
program, which outlines a process by which the City will identify specific action steps needed to
position the City to better serve the senior population. The program focuses on walkable streets, housing and transportation options, access to key services and opportunities for
residents to participate in community activities.
II - 16
In 2014 the City initiated a public planning process to identify best practices for dealing with substance abuse issues that had emerged in our community. Around the same time, the
Community Health Leadership Board (CHLB), a group representing major health and social
services agencies was established to deal with public health issues facing the community. One
of the first projects undertaken by the CHLB was to use the community report on substance
abuse to form action steps for combatting the crisis. Since their formation a great deal of work
has been done including a standardization of opioid prescribing protocols to be used in all major
medical practices, and supporting and promoting the use of Narcan among local law
enforcement agencies, promoting legislative changes on these issues of substance abuse
including obtaining legislative support for drug court and social detox. Although there are
limited resources for opioid treatment and recovery services, local partnerships within our
community have realized substantive changes in the dealing with the opioid crisis. Progress has been made, notably; the number of opioid prescriptions written are down as are deaths
because of opioid overdoses.
Communication and Technology
The City actively manages and updates its own website, which integrates with our service
request and notification subscription system, posts to social media, and manages its own
television channel, which broadcasts all City meetings and provides information on City
programs and services and offers live streaming of all meetings. We continually work to ensure
that we are providing the information citizens want in the form that best fits their need. The first public portal elements of the City’s recent project to implement an electronic content
management (ECM) system went live. Anyone with internet access is now able to access
council and committee related documents. This effort will continue in the coming years to
convert paper records and expand upon the types of documents that are readily available.
Tax Shift
One of the largest challenges faced by the City of Bangor is the incremental nature of Federal
and State budget decisions. While individual changes implemented over a number of sessions
seem tolerable, the totality of these actions has resulted in a significant tax shift to
municipalities. These actions include State legislative mandates to municipalities with no State
funding such as; General Assistance, transfer of normal costs of teacher retirement and
MaineCare changes and caps, and Statutory funding not upheld by the Legislature such as;
funding of revenue sharing and aid to education. In a previous session, the Legislature took
action to shift jail costs to County government, which in turn is shifted to municipalities via the
county tax mechanism.
The latest example of tax shifting is the 2018-2019 State of Maine Biennial budget. Due to an
impasse within the Legislature, the State of Maine did shut down for a few days in July. While the Legislature and Governor were able to develop a budget to enact, that provided additional
funding for Education, 41.6% of that funding for Bangor was redirected from a State
reimbursement for the State Homestead Exemption Program.
II - 17
Economic Factors and Next Year’s Budget and Rates
The unemployment rate for the City of Bangor in 2017 was 3.7%, which continues to be on
par with or below both the national and State rates of 4.4% and 3.8%, respectively.
While Bangor represents less than 3% of the State’s population, businesses within the City
generate 6.32% of the State’s retail sales tax.
Residential valuations continue to increase slightly in the coming year.
Value of commercial properties also continues to increase slightly after realizing significant
downward adjustments in FY 2010.
Bangor businesses continue to reinvest in personal property. While not subject to local
taxation, the value of BETE property (net of depreciation) in FY 2018 increased $19.8 million, or 18.8%, for a total of $125.1 million.
The fiscal year 2018 budget reflects the City’s historical results for these revenue sources, and
actual results to date appear to be on track with budgetary estimates. User fees for
governmental and business-type activities are reviewed on an annual basis to ensure that fee
structures are sufficient to cover service costs. Many fees are adjusted annually for inflation.
For fiscal year 2018, the City’s taxable assessed value increased approximately 1%, the impact
of the increase in taxable value was significantly reduced due to the increase in the State
Homestead Exemption; the associated tax revenue was not reimbursed to the City as required
by State Statue. However, even with the failure of the State of Maine to reimburse
municipalities for the increase in the Homestead Exemption, the slight net increase of .3% in
taxable value, when coupled with increased State education funding resulted in a .2% increase
in the tax rate for 2018. The budget allowed the City Council to provide a 1.50% increase to
employees, maintain increased levels of investment in infrastructure, as well as fund assigned
fund balances for future capital purchases on a current basis.
Both residential and commercial construction and permitting remain generally flat. We continue
to monitor key revenue areas such as: raising interest rates, automobile excise taxes, and
property tax collection rates.
Bangor serves as one of the largest retail markets in Maine. The Bangor Mall, Airport Mall,
Broadway commercial center, Union Street commercial corridor, and the Bangor Center
Development District (downtown) have long established Bangor as the hub of the six county
eastern Maine retail market. Unfortunately, properties at the Bangor Mall are facing the same challenges that are facing retail centers around the country. Changes in retail markets due to
the effects of on-line retail and the growth of experiential shopping trends has resulted in
several stores, such as Macy’s and Sears closing their doors. The City is committed to working
with owners of retail properties to identify opportunities for redevelopment. They may include
investment of infrastructure as well as a review of zoning requirements that would enhance the
ability to redevelop these properties in ways that reflect new trends. Developers have recently
acquired the former Macy’s property, the Bangor Mall, and Kmart (adjacent to the Bangor Mall)
properties. Additionally, The Airport Mall and Broadway Mall have recently changed ownership
at above assessed value. The rest of the City’s commercial real estate vacancy rates are in-line
and industrial properties are quite low.
The City continues to focus on value-added sectors such as manufacturing and aviation, as well
as the workforce challenges faced by our region, as we are facing extremely low unemployment
II - 18
rates, but there is a mismatch between workforce skills and available employment opportunities.
Beginning in the fall of 2018, the City will undertake a significant multi-million dollar sewer
infrastructure project, the Davis Brook tank installation. This project is expected to span
twenty-four months and involves the installation of a large 3.8 million gallon holding tank along
the Penobscot River. This additional capacity is required to further reduce the number of
discharges to the river of combined sewer overflows that occur within the City’s system during
high flow events (i.e. rain, snow melt). This investment is being made to ensure continued
compliance with the City’s consent decree with the Federal Environmental Protection Agency (a
copy of which is available at the Wastewater Treatment Plant page of the City’s website
www.bangormaine.gov).
While the State of Maine’s 2018-2019 Biennial budget has been adopted, it is fairly common for
the Legislature to enact supplemental budget provisions to the second year. The 2019 budget
includes additional education funding beyond the 2018 level. With recent reductions in state
income tax rates, the budget is predicated on other revenues stream keeping pace. If a
supplemental budget is required at the State level, it is anticipated that any Legislative actions
could negatively impact municipalities. Accordingly, city and school staff and elected officials will closely monitor legislative actions and continue to work collaboratively with other municipalities
and professional organizations and actively participate in any upcoming legislative hearings.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors, and
creditors with a general overview of the City of Bangor’s finances. Questions concerning any of
this information should be addressed to the Finance Director, City of Bangor, 73 Harlow Street,
Bangor, ME 04401 or via email to finance@bangormaine.gov.
BASIC FINANCIAL STATEMENTS
II - 19
Exhibit 1
Component Unit
Governmental Business-type Bangor
Activities Activities Total Public Library
ASSETS
Cash and cash equivalents 23,369,593$ 8,629,474$ 31,999,067$ 236,370$
Investments 530,292 14,184,298 14,714,590 12,420,981
Receivables:
Accounts (net of allowance of
$535,075 and $705,000, respectively)934,966 6,601,378 7,536,344 63,317
Intergovernmental 5,451,728 907,182 6,358,910 -
Taxes and liens - prior years 1,490,502 - 1,490,502 -
Taxes receivable - current year 1,151,283 - 1,151,283 -
Special assessments 30,130 - 30,130 -
Loans and notes 6,427,274 1,678,142 8,105,416 -
Internal balances 1,797,574 (1,797,574) - -
Inventories 554,843 194,674 749,517 -
Prepaid items 1,627,359 608,671 2,236,030 2,850
Other assets - 1,494,008 1,494,008 -
Non-depreciable capital assets 7,500,650 7,343,354 14,844,004 -
Depreciable capital assets, net 68,388,451 217,666,883 286,055,334 13,007,152
Total assets 119,254,645 257,510,490 376,765,135 25,730,670
DEFERRED OUTFLOWS OF RESOURCES
Net pension 3,936,229 874,285 4,810,514 -
Total deferred outflows of resources 3,936,229 874,285 4,810,514 -
LIABILITIES
Accounts payable and other current liabilities 2,606,083 3,491,555 6,097,638 142,544
Accrued wages and benefits payable 4,499,755 267,461 4,767,216 -
Unearned revenues 127,584 689,496 817,080 -
Noncurrent liabilities:
Due within one year 7,688,843 4,668,919 12,357,762 108,235
Due in more than one year 64,602,814 80,793,164 145,395,978 59,936
Total liabilities 79,525,079 89,910,595 169,435,674 310,715
DEFERRED INFLOWS OF RESOURCES
Deferred revenues - loans and assessments 4,518,751 - 4,518,751 -
Net pension 1,277,172 477,061 1,754,233 -
Total deferred inflows of resources 5,795,923 477,061 6,272,984 -
NET POSITION
Net investment in capital assets 49,367,869 153,328,264 202,696,133 12,898,917
Restricted for:
Nonexpendable trust principal 525,249 - 525,249 4,425,016
Expendable income 514,652 - 514,652 7,537,149
Grants and other balances 2,507,815 - 2,507,815 -
Unrestricted (15,045,713) 14,668,855 (376,858) 558,873
Total net position 37,869,872$ 167,997,119$ 205,866,991$ 25,419,955$
See accompanying notes to financial statements.
CITY OF BANGOR, MAINE
Statement of Net Position
June 30, 2017
Primary Government
II - 20
Exhibit 2
Operating Capital Component UnitCharges for grants and grants and Governmental Business-type BangorFunctions/programs Expenses services contributions contributions activities activities Total Public Library
Primary government
Governmental activities:
General government 6,953,399$ 2,117,874$ 2,535$ -$ (4,832,990)$ -$ (4,832,990)$ -$
Public safety 18,841,238 3,013,577 392,233 248,744 (15,186,684) - (15,186,684) - Health, community services and recreation 9,497,729 1,266,221 5,859,952 - (2,371,556) - (2,371,556) - Public services 15,997,665 3,637,836 2,839 - (12,356,990) - (12,356,990) - Other agencies 5,049,394 - - 2,080,390 (2,969,004) - (2,969,004) - Education 55,079,037 5,705,049 24,452,216 - (24,921,772) - (24,921,772) -
Arena development 801,439 1,838,285 - - 1,036,846 - 1,036,846 -
Community development 1,335,282 442,445 859,126 62,546 28,835 - 28,835 - Public transportation 3,273,876 774,195 2,303,751 - (195,930) - (195,930) - Economic development (tif)711,220 - - - (711,220) - (711,220) - Interest on debt 2,142,976 - - - (2,142,976) - (2,142,976) - Total governmental activities 119,683,255 18,795,482 33,872,652 2,391,680 (64,623,441) - (64,623,441) -
Business-type activities:
Sewer Utility 7,725,453 8,634,449 - 183,717 - 1,092,713 1,092,713 - Airport 21,217,373 15,870,081 - 3,492,988 - (1,854,304) (1,854,304) - Stormwater Utility 509,884 1,053,892 - - - 544,008 544,008 - Parking 1,037,558 1,008,494 - - - (29,064) (29,064) -
Bass Park 7,886,589 3,387,105 - 100,000 - (4,399,484) (4,399,484) -
Municipal Golf Course 604,127 644,303 - - - 40,176 40,176 -
Economic Development 466,485 503,905 - - - 37,420 37,420 - Total business-type activities 39,447,469 31,102,229 - 3,776,705 - (4,568,535) (4,568,535) -
Total primary government 159,130,724$ 49,897,711$ 33,872,652$ 6,168,385$ (64,623,441) (4,568,535) (69,191,976) -
Component unitBangor Public Library 2,795,795$ 34,610$ 2,182,454$ 69,584$ - - - (509,147)$
General revenues:
Property taxes, levied for general purposes 56,721,029 1,100,000 57,821,029 -
Payment in lieu of taxes 233,683 - 233,683 - Excise taxes 6,170,792 - 6,170,792 - Franchise taxes 346,303 - 346,303 - Grants and contributions not restricted to specific programs: Homestead/BETE exemption 2,214,078 - 2,214,078 -
Other State aid 24,600 - 24,600 -
State Revenue Sharing 2,225,464 - 2,225,464 - Unrestricted investment earnings 380,580 555,259 935,839 1,053,090 Gain on sale of assets 62,180 931,275 993,455 - Transfers (1,675,055) 1,675,055 - - Total general revenues and transfers 66,703,654 4,261,589 70,965,243 1,053,090
Change in net position 2,080,213 (306,946) 1,773,267 543,943
Net position, beginning of year 35,789,659 168,304,065 204,093,724 24,876,012
Net position, end of year 37,869,872$ 167,997,119$ 205,866,991$ 25,419,955$
See accompanying notes to financial statements.
Program Revenues in net positionPrimary Government
Net (expense) revenue and changes
CITY OF BANGOR, MAINEStatement of ActivitiesFor the Fiscal Year Ended June 30, 2017
II - 2\1
Exhibit 3CITY OF BANGOR, MAINE
Balance SheetGovernmental Funds June 30, 2017
Community Capital Other Total
Development Arena Projects Governmental GovernmentalGeneralBlock Grant Fund Fund Funds Funds
ASSETS
Cash and cash equivalents 18,878,973$ 120,579$ 501,915$ 2,665,269$ 1,202,857$ 23,369,593$ Investments 50,000 - - 349,299 130,993 530,292
Receivables:Taxes 2,641,785 - - - - 2,641,785
Accounts (net of allowance of $535,075)578,077 55,000 115,276 62,546 124,067 934,966 Interfund 1,935,404 - - - - 1,935,404
Intergovernmental 5,003,018 22,037 - 323,769 102,904 5,451,728 Loans and notes 535,372 4,328,621 - - 1,563,281 6,427,274
Unearned special assessments - - - 30,130 - 30,130 Inventory, at cost 554,843 - - - - 554,843
Prepaid items 507,130 - - 1,120,229 - 1,627,359
Total assets 30,684,602 4,526,237 617,191 4,551,242 3,124,102 43,503,374
LIABILITIES
Accounts payable 1,345,499 49,290 3,900 741,404 94,289 2,234,382 Accrued wages and benefits payable 4,495,658 4,097 - - - 4,499,755
Interfund loans payable - - - - 137,830 137,830 Unearned revenues - 49,286 - 78,298 - 127,584
Due to rehabilitation recipients - 44,132 - - - 44,132
Total liabilities 5,841,157 146,805 3,900 819,702 232,119 7,043,683
DEFERRED INFLOWS OF RESOURCESUnavailable revenues - property taxes 2,215,800 - - - - 2,215,800
Unavailable revenues - loans - 4,328,621 - - 160,000 4,488,621 Unavailable revenues - special assessments - - - 30,130 - 30,130
Total deferred inflows of resources 2,215,800 4,328,621 - 30,130 160,000 6,734,551
FUND BALANCES (Note J)
Nonspendable 2,962,473 - - 1,120,229 525,249 4,607,951 Restricted 764,922 50,811 - - 2,206,734 3,022,467
Committed 288,743 - 613,291 - - 902,034 Assigned 6,439,941 - - 2,581,181 - 9,021,122
Unassigned 12,171,566 - - - - 12,171,566 Total fund balances 22,627,645 50,811 613,291 3,701,410 2,731,983 29,725,140
Total liabilities, deferred inflows of resources and fund balances 30,684,602$ 4,526,237$ 617,191$ 4,551,242$ 3,124,102$
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, therefore, are not
reported in the funds.75,889,101 Unavailable revenues - property taxes are not available to pay for current-period expenditures and, therefore,
are deferred in the funds.2,215,800
Long-term liabilities, including bonds payable $54,988,615, accrued interest $327,569, accrued compensated absences $2,098,318,
self insurance liability $2,572,145, net OPEB obligation $3,123,960, bond premium $513,554, capital leases $181,526 and net pension liability, including deferred outflows and inflows of resources $6,154,482 are not due and payable in the current period and,
therefore, are not reported in the funds.(69,960,169)
Net position of governmental funds 37,869,872$
See accompanying notes to financial statements.
II - 22
Exhibit 4
CITY OF BANGOR, MAINE
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental FundsFor the Fiscal Year Ended June 30, 2017
Community Capital Other Total
Development Arena Projects Governmental Governmental
General Block Grant Fund Fund Funds Funds
RevenuesTaxes 61,629,388$ -$ -$ 1,920,385$ -$ 63,549,773$ Intergovernmental 30,662,625 779,410 - 2,276,585 6,787,748 40,506,368 Licenses and permits 644,795 - - - - 644,795 Charges for services 14,751,088 - - - 774,195 15,525,283 Program income - 407,403 - - - 407,403 Revenue from use of money and property 761,454 - 1,838,285 12,029 82,179 2,693,947 Other 18,623 35,042 - 115,095 107,011 275,771 Total revenues 108,467,973 1,221,855 1,838,285 4,324,094 7,751,133 123,603,340
ExpendituresCurrent:General government 5,133,047 - - - - 5,133,047
Public safety 17,330,311 - - - - 17,330,311
Health, community services and recreation 4,972,166 - - - - 4,972,166
Public services 10,907,018 - - - - 10,907,018
Other agencies 4,886,577 - - - - 4,886,577
Education 54,722,897 - - - - 54,722,897
Tax increment financing 711,220 - - - - 711,220
Unclassified 31,213 - 13,355 - - 44,568
Restricted grants - 1,167,891 - - 7,631,139 8,799,030
Capital outlay 906,169 - - 8,513,227 - 9,419,396
Debt service 5,687,035 - - 1,747,435 - 7,434,470
Total expenditures 105,287,653 1,167,891 13,355 10,260,662 7,631,139 124,360,700
Excess (deficiency) of revenues over (under) expenditures 3,180,320 53,964 1,824,930 (5,936,568) 119,994 (757,360)
Other financing sources (uses)Sale of assets 122,683 - - 21,686 - 144,369 Transfers to other funds (2,319,912) - (1,798,780) (58,891) (60,732) (4,238,315) Transfers from other funds 56,331 - - 2,505,919 1,010 2,563,260 Total other financing sources (uses)(2,140,898) - (1,798,780) 2,468,714 (59,722) (1,530,686)
Changes in fund balances 1,039,422 53,964 26,150 (3,467,854) 60,272 (2,288,046)
Fund balances, beginning of year 21,588,223 (3,153) 587,141 7,169,264 2,671,711 32,013,186
Fund balances, end of year 22,627,645$ 50,811$ 613,291$ 3,701,410$ 2,731,983$ 29,725,140$
See accompanying notes to financial statements.
II - 23
Exhibit 5
CITY OF BANGOR, MAINEReconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30, 2017
Net change in fund balances - total governmental funds (from Exhibit 4)(2,288,046)$
Amounts reported for governmental activities in the statement of
activities (Exhibit 2) are different because:
Governmental funds report capital outlays as expenditures.
However, in the statement of activities, the cost of those assets is
allocated over their estimated useful lives as depreciation expense.
This is the amount by which capital outlays of $4,600,669 exceeds loss on
disposal of assets of $82,189 and depreciation expense of $4,049,900.468,580
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds. This represents the change (226,997)
in unavailable revenues.
Financing proceeds provide current financial resources to governmental funds,
but issuing debt increases long-term liabilities in the statement of net position.
Governmental funds report the effects of premiums and discounts when debt is
issued, but these amounts are deferred and amortized in the statement of
activities. The City amortized bond premiums of $53,728. Repayment of bond and
capital lease principal are expenditures in the governmental funds, but the repayment
reduces long-term liabilities in the state of net position. For the year, the amount
of the repayments was $7,307,021.7,360,749
Some items reported in the statement of activities do not require
the use of current financial resources and, therefore, are not reported
in governmental fund statements. The differences are as follows: increase in
net OPEB obligation ($196,464), self insurance liability ($312,196), net pension liability
including deferred outflows and inflows of ($2,816,018) and decreases in accrued
compensated absences ($36,696) and interest ($53,909).(3,234,073)
Change in net position of governmental activities (see Exhibit 2)2,080,213$
See accompanying notes to financial statements.
II - 24
Exhibit 6
CITY OF BANGOR, MAINE
Statement of Revenues, Expenditures and Changes in
Unassigned Fund Balance - Budget and Actual
General FundFor the Fiscal Year Ended June 30, 2017
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Taxes 60,123,256$ 60,123,256$ 61,629,388$ 1,506,132$
Intergovernmental 26,935,261 26,942,331 27,605,530 663,199
Licenses and permits 620,243 620,243 644,795 24,552
Charges for services:
municipal 8,486,790 8,486,790 8,944,785 457,995
school 4,635,338 4,635,338 5,705,049 1,069,711
Fines, forfeits and penalties 23,000 23,000 18,623 (4,377)
Revenue from use of money and property
municipal 650,150 650,150 727,792 77,642
Total revenues 101,474,038 101,481,108 105,275,962 3,794,854
Expenditures
Current:
General government 5,339,462 5,339,462 5,292,146 47,316
Public safety 17,906,407 17,920,837 17,380,180 540,657
Health, community services and recreation 5,119,606 5,119,606 4,972,166 147,440
Public buildings and services 10,835,284 10,835,284 10,929,752 (94,468)
Other agencies 4,889,336 4,889,336 4,880,069 9,267
Education 51,484,510 54,029,216 51,709,777 2,319,439
Unclassified 809,378 809,378 748,941 60,437
Debt service 5,687,035 5,687,035 5,687,035 -
Total expenditures 102,071,018 104,630,154 101,600,066 3,030,088
Excess (deficiency) of revenues
over (under) expenditures (596,980) (3,149,046) 3,675,896 6,824,942
Other financing sources (uses)
Appropriation from restricted, committed
and assigned fund balances 1,257,480 1,257,480 7,480 (1,250,000)
Appropriation to assigned fund balance - - (1,220,686) (1,220,686)
Sale of assets 74,000 74,000 31,694 (42,306)
Contributions - 7,360 7,391 31
Insurance settlements 52,500 52,500 75,634 23,134
Transfers to other funds (814,000) (814,000) (1,350,614) (536,614)
Transfers from other funds 27,000 27,000 21,600 (5,400)
Total other financing sources (uses)596,980 604,340 (2,427,501) (3,031,841)
Net change in fund balance -$ (2,544,706)$ 1,248,395 3,793,101$
Unassigned fund balance, beginning of year 11,315,235
Changes in fund balance classification in accordance with GAAP
Changes in balances carried (568,230)
Inventory and prepaids (GASB 54)176,166
Unassigned fund balance, end of year 12,171,566$
See accompanying notes to financial statements.
Budgeted amounts
Continued on next page
II - 25
Exhibit 7
CITY OF BANGOR, MAINE
Statement of Net Position
Proprietary Funds
June 30, 2017
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
ASSETS
Current assets
Cash and cash equivalents 2,778,998$ 1,426,396$ 1,003,050$ 3,421,030$ 8,629,474$
Investments 8,961 11,892,915 - - 11,901,876
Accounts receivable 3,187,696 3,457,434 275,858 385,390 7,306,378
Less allowance for uncollectible accounts (45,000) (660,000) - - (705,000)
Net accounts receivable 3,142,696 2,797,434 275,858 385,390 6,601,378
Due from other governments - 907,182 - - 907,182
Inventories, at cost - 166,658 28,016 - 194,674
Prepaid items 40,220 369,637 69,031 129,783 608,671
Total current assets 5,970,875 17,560,222 1,375,955 3,936,203 28,843,255
Noncurrent assets
Capital Assets:
Land and improvements 683,865 - 579,157 5,008,359 6,271,381
Buildings and improvements 29,026,578 - 68,958,075 4,587,329 102,571,982
Machinery and equipment 6,611,064 - 2,020,234 553,257 9,184,555
Infrastructure 63,603,710 - - 683,189 64,286,899
Aircraft operational assets - 294,013,860 - - 294,013,860
Parking structures - - - 11,372,837 11,372,837
Construction in process 3,702,321 180,869 - 65,026 3,948,216
Total capital assets 103,627,538 294,194,729 71,557,466 22,269,997 491,649,730
Less accumulated depreciation (47,438,201) (193,767,768) (11,882,040) (13,551,484) (266,639,493)
Net capital assets 56,189,337 100,426,961 59,675,426 8,718,513 225,010,237
Investments - 2,282,422 - - 2,282,422
Loans receivable - 281,846 - 1,396,296 1,678,142
Due from bond trustee 1,494,008 - - - 1,494,008
Total noncurrent assets 57,683,345 102,991,229 59,675,426 10,114,809 230,464,809
Total assets 63,654,220 120,551,451 61,051,381 14,051,012 259,308,064
DEFERRED OUTFLOWS OF RESOURCES
Net pension 220,357 634,999 - 18,929 874,285
Total deferred outflows of resources 220,357 634,999 - 18,929 874,285
See accompanying notes to financial statements.
Continued from previous page
II - 26
Exhibit 7 (con't)
CITY OF BANGOR, MAINE
Statement of Net Position
Proprietary Funds
June 30, 2017
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
LIABILITIES
Current liabilities
Accounts payable 793,073 1,118,810 304,186 166,407 2,382,476
Accrued wages and benefits payable 39,062 150,566 58,850 18,983 267,461
Accrued interest 57,450 52,391 946,402 52,836 1,109,079
Workers' compensation 20,000 138,266 - 1,953 160,219
Interfund loans payable - - 1,797,574 - 1,797,574
General obligation debt payable 1,631,986 606,758 1,202,234 608,951 4,049,929
Capital lease obligation payable - - 9,478 - 9,478
Accrued compensated absences 70,564 268,903 - 19,115 358,582
Unearned revenue - - 689,496 - 689,496
Other liabilities - - 90,711 - 90,711
Total current liabilities 2,612,135 2,335,694 5,098,931 868,245 10,915,005
Long-term liabilities
Workers' compensation - 142,949 - 8,047 150,996
General obligation debt payable 13,160,080 8,045,255 49,892,322 3,909,412 75,007,069
Capital lease obligation payable - - 10,548 - 10,548
Accrued compensated absences 55,279 143,118 - 14,871 213,268
Net OPEB obligation 196,089 683,098 - 43,594 922,781
Net pension liability 541,226 1,559,643 - 46,493 2,147,362
Other long-term liabilities 156,498 - 2,184,642 - 2,341,140
Total long-term liabilities 14,109,172 10,574,063 52,087,512 4,022,417 80,793,164
Total liabilities 16,721,307 12,909,757 57,186,443 4,890,662 91,708,169
DEFERRED INFLOWS OF RESOURCES
Net pension 120,240 346,492 - 10,329 477,061
Total deferred inflows of resources 120,240 346,492 - 10,329 477,061
NET POSITION
Net investment in capital assets 43,627,040 94,571,999 9,820,801 5,308,424 153,328,264
Unrestricted 3,405,990 13,358,202 (5,955,863) 3,860,526 14,668,855
Total net position 47,033,030$ 107,930,201$ 3,864,938$ 9,168,950$ 167,997,119$
See accompanying notes to financial statements.
II - 27
Exhibit 8
CITY OF BANGOR, MAINE
Statement of Revenues, Expenses and Changes in Net Position
Proprietary FundsFor the Fiscal Year Ended June 30, 2017
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
Operating revenues
Charges for services 8,634,449$ 15,870,081$ 3,387,105$ 3,210,594$ 31,102,229$
Total operating revenues 8,634,449 15,870,081 3,387,105 3,210,594 31,102,229
Operating expenses
Operating expenses other than
depreciation and amortization 5,581,982 12,760,491 3,110,424 1,947,355 23,400,252
Depreciation and amortization 1,859,038 8,090,205 2,954,733 512,846 13,416,822
Total operating expenses 7,441,020 20,850,696 6,065,157 2,460,201 36,817,074
Operating income (loss)1,193,429 (4,980,615) (2,678,052) 750,393 (5,714,845)
Nonoperating revenue (expenses)
Interest income 194,764 221,981 - 138,514 555,259
Interest expense (284,433) (366,677) (1,821,432) (157,853) (2,630,395)
Taxes (Downtown TIF)- - 1,100,000 - 1,100,000
Gain on sale of assets 7,411 - - 923,864 931,275
Total nonoperating revenue (expenses)(82,258) (144,696) (721,432) 904,525 (43,861)
Net income (loss) before grants/contributions and transfers 1,111,171 (5,125,311) (3,399,484) 1,654,918 (5,758,706)
Grants/contributions received for capital assets 183,717 3,492,988 100,000 - 3,776,705
Transfers to other funds (25,000) - - (121,875) (146,875)
Transfers from other funds 23,150 - 1,798,780 - 1,821,930
Change in net position 1,293,038 (1,632,323) (1,500,704) 1,533,043 (306,946)
Net position, beginning of year 45,739,992 109,562,524 5,365,642 7,635,907 168,304,065
Net position, end of year 47,033,030$ 107,930,201$ 3,864,938$ 9,168,950$ 167,997,119$
See accompanying notes to financial statements.
Continued on next page
II - 28
Exhibit 9
CITY OF BANGOR, MAINE
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended June 30, 2017
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
Cash flows from operating activities
Cash received from customers 8,943,837$ 18,521,284$ 3,065,050$ 3,333,560$ 33,863,731$
Cash paid to suppliers for goods and services (3,593,136) (5,550,366) (3,300,901) (1,032,075) (13,476,478)
Cash paid to employees for services (1,850,920) (6,703,692) - (822,558) (9,377,170)
Net cash provided by (used in) operating
activities 3,499,781 6,267,226 (235,851) 1,478,927 11,010,083
Cash flows from noncapital financing activities
Interfund loans (repayments)- (6,225,775) - - (6,225,775)
Taxes (Downtown TIF)- - 1,100,000 - 1,100,000
Transfers in 23,150 - 1,798,780 - 1,821,930
Transfers out (25,000) - - (121,875) (146,875)
Net cash provided by (used in) noncapital
financing activities (1,850) (6,225,775) 2,898,780 (121,875) (3,450,720)
Cash flows from capital and related financing activities
Proceeds from general obligation bonds 4,280,000 - - - 4,280,000
Acquisition and construction of capital assets (4,429,957) (4,135,140) - (197,507) (8,762,604)
Principal paid on general obligation bonds/capital leases (1,579,986) (584,818) (1,152,375) (590,769) (3,907,948)
Interest paid on general obligation bonds (278,822) (365,218) (1,939,590) (168,574) (2,752,204)
Proceeds from sale of property 7,411 - - 1,125,000 1,132,411
Grant/contribution monies received for capital assets 183,717 5,454,730 100,000 - 5,738,447
Net cash provided by (used in) capital and related
financing activities (1,817,637) 369,554 (2,991,965) 168,150 (4,271,898)
Cash flows from investing activities
Net sales (purchases) of investments 271,056 700,743 - - 971,799
Investment of unexpended bond proceeds (812,062) - - - (812,062)
Interest on investments 194,764 221,981 - 171,033 587,778
Loan repayments - 86,407 - - 86,407
Net cash provided by (used in) investing activities (346,242) 1,009,131 - 171,033 833,922
Net increase (decrease) in cash 1,334,052 1,420,136 (329,036) 1,696,235 4,121,387
Cash, beginning of year 1,444,946 6,260 1,332,086 1,724,795 4,508,087
Cash, end of year 2,778,998$ 1,426,396$ 1,003,050$ 3,421,030$ 8,629,474$
Schedule of noncash investing, capital and financing activities:
During the year, the Airport Fund had an unrealized gain on investments in the amount of $403,750 and expended $284,718 in capital asset
acquisition costs to be reimbursed by Federal and State grants in a subsequent year.
See accompanying notes to financial statements.
Continued from previous page
II - 29
Exhibit 9 (con't)
CITY OF BANGOR, MAINE
Statement of Cash Flows - Proprietary FundsFor the Fiscal Year Ended June 30, 2017
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)1,193,429$ (4,980,615)$ (2,678,052)$ 750,393$ (5,714,845)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities
Depreciation and amortization 1,859,038 8,090,205 2,954,733 512,846 13,416,822
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 309,388 2,651,203 37,152 106,517 3,104,260
(Increase) decrease in inventories - 40,279 3,991 - 44,270
(Increase) decrease in prepaid items 9,807 (10,255) 25,051 11,364 35,967
Increase (decrease) in accounts payable (92,314) (103,596) (167,935) 69,168 (294,677)
Increase (decrease) in unearned revenue - - (359,207) - (359,207)
Increase (decrease) in other liabilities 220,433 580,005 (51,584) 28,639 777,493
Total adjustments 2,306,352 11,247,841 2,442,201 728,534 16,724,928
Net cash provided by (used in) operating activities 3,499,781$ 6,267,226$ (235,851)$ 1,478,927$ 11,010,083$
See accompanying notes to financial statements.
II - 30
Exhibit 10
CITY OF BANGOR, MAINE
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2017
Agency
Fund
ASSETS
Cash and cash equivalents $136,926
Total assets 136,926
LIABILITIES
Amounts held for others 136,926
Total liabilities $136,926
See accompanying notes to financial statements.
INDEX OF NOTES TO THE FINANCIAL STATEMENTS
Note Page
Summary of Significant Accounting Policies
A Reporting Entity II – 31
B Government-wide and Fund Financial Statements II – 31
C Measurement Focus, Basis of Accounting and Basis of Presentation II – 32 D Assets, Liabilities, Deferred Inflows/Outflows and Equity II – 34
Stewardship, Compliance and Accountability
A Budgetary Information II – 38
B Reconciliation of Budgetary Basis Statements II – 39 C Excess of Expenditures Over Appropriations II – 39
D Restricted Assets II – 39
Detailed Notes on All Funds
A Deposits and Investments II – 40 B Property Tax II – 41
C Capital Assets II – 42
D Interfund Transactions II – 43 E Due From Other Governments II – 44 F Leases II – 44
G Other Assets II – 46 H Unearned Revenue II – 46 I Long-Term Debt II – 46
J Fund Balances II – 50 K Net Position II – 51
Other Information
A Risk Management II – 51 B Tax Increment Financing Districts II – 52 C Contingent Liabilities II – 53
D Retirement II – 53
E Other Postemployment Benefits II – 58 F Subsequent Events II – 59
II - 31
CITY OF BANGOR, MAINE Notes to the Financial Statements June 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Bangor was incorporated under the laws of the State of Maine in 1834 and operates under
a council/manager form of government. In evaluating how to define the reporting entity, for financial
reporting purposes, management has considered all potential component units. The criteria used to determine which entities, agencies, commissions, boards and authorities are part of the City’s
operations include how the budget is adopted, whether debt is secured by general obligation of the
City, the City’s duty to cover any deficits that may occur, and supervision over the accounting
functions.
The Bangor Public Library is a nonprofit organization, which operates under the control of a nine-
member Board of Trustees. The Bangor City Council appoints four members and the City of Bangor
Charter appoints a fifth member. The Board has the power to hire officers, approve the budget and
direct the operations of the Library. However, the Library is financially dependent upon the City in that
the City provides approximately 60% of the operating financial support received by the Library during
the year ended June 30, 2017. The City believes that the financial statements would be incomplete
without the inclusion of the Library as a discretely presented component unit. Complete financial
statements may be obtained from the Bangor Public Library, 145 Harlow Street, Bangor, ME 04401.
The City of Bangor is a member of the Joint Venture of the Equity Charter Municipalities of Municipal
Review Committee, Inc (Joint Venture). The Joint Venture is an organization that resulted from a
contractual arrangement between certain member municipalities, Penobscot Energy Recovery Company
(PERC) and Bangor Hydro Electric Company. It was formed to pool resources of the Equity Charter
Municipalities for the long-term goal of handling the disposal of their present and projected volumes of
non-hazardous municipal solid waste. As of December 31, 2016 (most recent data available) the City
of Bangor’s share of the Joint Venture’s net position was $5,385,036. Complete financial statements
may be obtained from Municipal Review Committee, 395 State Street, Ellsworth, ME 04605.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the City. For the most part, the
effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support, as well as
from legally separate component units for which the City is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The City has elected not to allocate indirect costs among the
programs, functions and segments. Program revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported as general revenues.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
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.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. 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.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as certain compensated absences and claims and
judgments, are recorded only when the payment is due.
Those revenues susceptible to accrual are property taxes, interest, and charges for services. Other
receipts and taxes become measurable and available when cash is received by the City and are
recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to
accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other grant requirements have been met.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The Community Development Block Grant Fund accounts for federal grants obtained and expended
under the Housing and Community Development Act of 1974, as amended, for the development of
viable urban communities.
The Arena Fund accounts for the percentage of slot revenues received by the City from the
operation of the casino. Said funds will be used to fund a portion of the debt service related to the
construction of the Cross Insurance Center.
The Capital Projects Fund accounts for the acquisition of capital assets or construction of major capital projects not being financed by proprietary or fiduciary funds.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
The City reports the following major proprietary funds:
The Sewer Utility fund accounts for the costs of construction and operation of the sewage
treatment plant, the City sewer system, and sewer operation activities, and is self-supported
through sewer user fees.
The Airport Fund accounts for the operation of Bangor International Airport. The principal
sources of revenues are landing fees and the sale of aviation fuel. Other revenue sources include lease payments for the use of terminal space and non-aviation industrial buildings.
The Bass Park Fund accounts for the operation of the Cross Insurance Center, a harness racing track and the Bangor State Fair. Principal sources of revenue are admissions, concession sales
and rentals. The fund is named after the Bass family, which bequeathed the property to the City
for recreational purposes.
Additionally, the City reports the following fund type:
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf
of others. The City’s fiduciary funds include the following fund type:
Agency funds account for assets the City holds for others in an agency capacity. They are
custodial in nature and do not present results of operations of the City or have a
measurement focus. Agency funds are accounted for using the accrual basis of accounting.
The City serves as an agent for various School Activity funds.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the City’s public services function and
various other functions of the government. Elimination of these charges would distort the direct costs
and program revenues reported for the various functions concerned.
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 City’s proprietary fund are charges to customers for sales and services. Operating expenses 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.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
D. Assets, Liabilities, Deferred Inflows/Outflows and Equity
1. Deposits and Investments
Cash includes amounts in demand deposits as well as short-term investments with a maturity date
within three months of the date acquired by the City.
State statutes authorize the City to invest in obligations of the U. S. Treasury, commercial paper,
corporate bonds and repurchase agreements. City policy prohibits the investment in so-called “derivative instruments”.
Investments are reported at fair value. Fair value is measured using a hierarchy established by
generally accepted accounting principles. Level 1 investments are based on quoted prices in active
markets for identical assets, Level 2 investments are based on significant other observable inputs and
Level 3 investments are based on significant unobservable inputs. Income earned from the investment
of pooled cash is allocated to various funds based upon the average cash balance allocated to the
fund.
2. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as either “interfund loans” (i.e., current portion of interfund loans)
or “advances to/from other funds” (i.e., the non-current portion of interfund loans). Any residual
balances outstanding between the governmental activities and business-type activities are reported in
the government-wide financial statements as “internal balances”.
Advances between funds are offset by nonspendable fund balance accounts in applicable governmental
funds to indicate that they are not available for appropriation and are not expendable, available
financial resources.
3. Inventories and Prepaid Items
Inventories consist of expendable supplies held for consumption and are valued at cost using the
weighted average method. Certain payments to vendors reflect costs applicable to future accounting
periods and are recorded as prepaid items in both government-wide and fund financial statements.
The cost of inventories and prepaid items are recognized as expenditures/expenses when consumed or
used rather than when purchased. 4. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, sewer mains and similar items), are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Capital assets are defined by the City as
assets with an initial, individual cost of more than $10,000 for machinery/equipment/vehicles, $25,000 for
land/buildings and improvements and $100,000 for infrastructure and an estimated useful life in excess of
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation.
The costs of normal repairs and maintenance that do not add to the value of the asset or materially
extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. If material,
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.
Property, plant, and equipment of the primary government is depreciated using the straight-line method over the assets' estimated useful lives.
The range of useful lives used to compute depreciation are as follows:
Buildings 25 – 50 years
Equipment 5 – 20 years
Infrastructure 10 – 50 years
Airport Operational 5 – 40 years
Parking Structures 10 – 20 years
5. Deferred Inflows/Outflows of Resources
In addition to assets and liabilities, the statement of net position will sometimes report separate
sections for deferred outflows and inflows of resources. These separate financial statement elements
represent a consumption or acquisition of net position that applies to a future period(s) and so will not
be recognized as an outflow of resources (expense) or inflow of resources (revenue) until that time.
The governmental funds only report a deferred inflow of resources, unavailable revenue from property
taxes. These amounts are deferred and recognized as an inflow of resources in the period that the
amounts become available. The governmental activities have deferred outflows and inflows that relate
to the net pension liability, which include the City’s contribution subsequent to the measurement date,
which is recognized as a reduction of the net pension liability in the subsequent year. They also
include changes in assumptions, differences between expected and actual experience, changes in
proportion and differences between the City’s contributions and proportionate share of contributions,
which are deferred and amortized over the average expected remaining service lives of active and
inactive members in the plan. They also include the net difference between projected and actual
earnings on pension plan investments, which is deferred and amortized over a five-year period. In
addition, the governmental activities and governmental funds have deferred outflows that related to
community development loans and special assessments. These amounts are considered unavailable
and recognized as an inflow of resources (revenue) in the period that the amounts become available.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
6. Compensated Absences
Accumulated vacation or compensatory time or vested sick leave of governmental funds that is
expected to be liquidated with expendable available resources is reported as an expenditure in
respective fund financial statements only if the liability has matured, for example, as a result of employee resignations and retirements. All accumulated leave, including that which is not expected to
be liquidated with expendable available financial resources, is reported in the government-wide
financial statements. Accumulated leave of Enterprise Funds is recorded as an expense and liability of the respective fund as the benefits accrue to employees. No liability is recorded for non-accumulating
rights to receive sick pay benefits.
7. Long-term Obligations
In the government-wide financial statements, and 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, if material.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
during the current period. The face amount of debt is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances
are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
8. Fund Equity
In the fund financial statements, governmental funds report fund balances in one of five possible
classifications. Classification is based primarily on the extent to which the City is bound to honor
constraints on the specific purposes for which the funds can be spent. The categories are as follows:
Nonspendable fund balance cannot be spent. Restricted fund balances are subject to externally enforceable legal restrictions.
Committed fund balances are subject to limitations the City Council has imposed, that are binding
unless removed or modified by the passage of a Council Order. Assigned fund balances reflect the intended use of the resources. The City Council adopted a
comprehensive fund balance policy which authorized itself and the Finance Director and City
Manager, within defined limits, with the authority to assign fund balances. Unassigned fund balances are resources which have not been classified in any other category.
Only the General Fund can report a positive unassigned fund balance amount.
Should there be multiple sources of funding available for a particular purpose, it is the City’s policy to
expend currently budgeted resources first, then use other sources in the order of restricted, then
committed, then assigned, then unassigned amounts.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
9. Allowance for Uncollectible Accounts and Loans
Allowances for uncollectible accounts are maintained for all types of receivables, which historically
experience uncollectible accounts. Allowances for uncollectible loans are established when the City
determines its ability to collect the outstanding loan balance has been impaired. 10. Pensions
For purposes of measuring the net pension liability (MePers liability), deferred outflows of resources
and deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the Maine Public Employees Retirement System Consolidated Plan for Participating Local Districts (PLD Plan) and Maine Public Employees Retirement System State Employee
and Teacher Plan (SET Plan) and additions to/deductions from the Plan’s fiduciary net position have
been determined on the same basis as they are reported by the Plans. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
11. Use of Estimates
Preparation of the City’s financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
items at the date of the financial statements and the reported amounts of revenues and
expenses/expenditures during the reporting period. Actual results could differ from those estimates.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 38
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
Budgets are prepared on a modified accrual basis of accounting, with the exception of depreciation
within the enterprise funds. Budgets for the General Fund and enterprise funds are formally adopted
each year through the passage of an appropriation resolve. Budgets for special revenue and capital projects funds have adopted project-length budgets. Unencumbered appropriations lapse at fiscal year
end.
Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting is employed in governmental funds. Encumbrances (i.e., purchase orders,
contracts, and other commitments) outstanding at year end are reported in assigned fund balance and
do not constitute expenditures or liabilities because the commitments have not been honored in the
current year. For budgetary purposes, encumbrances are treated as expenditures within both
governmental and proprietary fund types.
On or before the second Monday in April, the City Manager submits to the City Council a proposed
operating budget for the ensuing fiscal year. The Council holds public meetings and a final budget
must be prepared and adopted no later than June 30th. Should the Council fail to adopt an operating
budget on or before June 30th, by Charter, the budget proposed by the City Manager becomes
effective.
The budget is adopted at the department level through the passage of appropriation resolves. The City Manager may make transfers of appropriations within a department. Transfers between
departments or additional appropriations require the approval of the City Council. The City Council
made several supplementary budgetary appropriations throughout the year, none of which were material.
Maine Public Employees Retirement contributions are made by the State of Maine on behalf of the School Department. These amounts have not been budgeted in the General Fund and result in a
difference in reporting on a budgetary basis of accounting vs. reporting under accounting principles
generally accepted in the United States of America of $3,057,095. These amounts have been included as intergovernmental revenue and education expenditures in the general fund on the Statement of
Revenues, Expenditures and Changes in Fund Balances (Exhibit 4) and in the entity-wide Statement of
Activities (Exhibit 2). There is no effect on fund balance or net position at the end of the year.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 39
Excess of revenues and other financing sources over
expenditures and other financing uses (Budget)1,248,395$
Activity in assigned fund balance 293,032
2017 encumbrances 1,428,752
2016 encumbrances paid (1,928,009)
2016 encumbrances lapsed (2,748)
Excess of revenues and other financing sources
over expenditures and other uses (GAAP)1,039,422$
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY, CONTINUED
B. Reconciliation of Budgetary Basis Statements
The following schedule reconciles the General Fund amounts on the Statement of Revenues,
Expenditures, and Changes in Unassigned Fund Balance—Budget and Actual—Budgetary Basis to the
amounts on the Statement of Revenues, Expenditures, and Changes in Fund Balances, Governmental Funds:
C. Excess of Expenditures Over Appropriations
The following General Fund departments were over-expended by the indicated dollar amounts;
Executive $45,627, Public Transportation $109,255, Planning, econ dev., code enforcement $11,188
and Public buildings and services $94,468. These over-expenditures were funded by receipt of
revenues in excess of appropriations and under-expenditures within other General Fund departments.
D. Restricted Assets
Donations received by the City whose use is limited are placed in the appropriate Special Revenue
fund, depending upon whether or not the principal can be expended. All changes in market value are
added to the earnings, which is allowable by State Statute. As these amounts are invested in a note
receivable, there was no change in market value for fiscal year 2017.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 40
Investment types Rating Fair Value Not Applicable <1 1-5 6-10
Mutual Funds 11,665,043$ 11,665,043$ -$ -$ -$ Repurchase Agreements 11,186 11,186 - - -
US Treasuries AA 2,532,085 - 249,663 2,027,384 255,038
Common Stock 456,276 456,276 - - -
Certificate of Deposit 50,000 - 50,000 - -
Totals 14,714,590$ 12,132,505$ 299,663$ 2,027,384$ 255,038$
Maturity (years)
Level 1 Level 2 Level 3
Investment types Fair Value Inputs Inputs Inputs
Mutual Funds 11,665,043$ 11,665,043$ -$ -$
US Treasuries 2,532,085 2,532,085 - -
Common Stock 456,276 456,276 - -
Totals 14,653,404$ 14,653,404$ -$ -$
DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
The City maintains a cash pool that is available for use by all funds. In addition, cash and investments
are separately held by several of the funds.
Custodial Credit Risk - Deposits
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be
returned. The City does not have a policy with respect to custodial credit risk for deposit accounts.
The City maintained certain accounts whose balances were fully covered, for other accounts in which
the balance exceeded the $250,000 provided by the Federal Deposit Insurance Corporation (FDIC),
pledged collateral securities were held in the City’s name. As of June 30, 2017, none of the City’s bank
balance of $33,610,056 was exposed to custodial credit.
Fair Value – Investments
The City of Bangor categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs.
At June 30, 2017, the City had the following investments and maturities:
Interest Rate Risk
The City’s investment policy requires that, to the extent possible, the City will attempt to match
investments with anticipated cash requirements. Unless matched to a specific cash flow, the City is not
allowed to directly invest in securities maturing more than three years from the date of purchase.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 41
DETAILED NOTES ON ALL FUNDS, CONTINUED
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Maine statutes authorize the City to invest in obligations of the U.S. Treasury and U.S agencies,
repurchase agreements and certain corporate stocks and bonds. In accordance with City policy,
investments in certificates of deposits must be F.D.I.C. insured and any excess of the amounts covered by insurance must be collateralized in accordance with Title 30-A, Section 5706 of the Maine Revised
Statutes; investments in mutual funds must be “no load” (which means no commission or fee shall be
charged on the purchase or sale), have a constant daily net asset value of $1.00 per share and limit
assets of the fund to U.S. Treasury Obligations or Federal Instrumentality or Agency Securities; the
total investments in stock cannot exceed 10% of the portfolio value and no more than 5% can be
invested in any one company.
Custodial Credit Risk - Investments
For investments, custodial credit risk is the risk that, in the event of 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 the outside party. As of June 30, 2017, the City had no investments that were subject to
custodial risk. The City’s investment policy states that all security transactions, including collateral for
repurchase agreements, entered into by the City shall be conducted on a “delivery vs. payment” basis.
Securities will be held by a third party custodian, or trust department, designated by the Treasurer and
evidenced by safekeeping receipts.
Concentration of Credit Risk The City’s investment policy states that the City will diversify its investments by security type and
institution. No more than 40% of the City’s total investment portfolio will be invested in any
combination of commercial paper and time certificates of deposit. B. Property Tax
Property taxes for the current year were levied July 8, 2016, on the assessed value listed as of the
prior April 1 for all real and personal property located in the City. Assessed values are periodically
established by the City's Assessor at 100% of assumed market value. Taxes were due in two
installments: September 15, 2016 and March 15, 2017. Interest was charged at 7.00% on all taxes
unpaid as of the due date.
Property taxes levied during the year were recorded as receivables at the time the levy was made.
The receivables collected during the year and in the first sixty days following the end of the fiscal year have been recorded as revenues. The remaining receivables have been recorded as deferred inflows.
Tax liens are placed on real property within twelve months following the tax commitment date if taxes
are delinquent. The City has the authority to foreclose on property eighteen months after the filing of the lien if the tax liens and associated costs remain unpaid.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 42
Balance Balance
June 30, 2016 Increases Decreases June 30, 2017Governmental activities:
Capital assets, not being depreciated:
Land 5,092,368$ -$ -$ 5,092,368$ Construction in process 1,811,356 2,007,952 1,411,026 2,408,282
Total capital assets not being depreciated 6,903,724 2,007,952 1,411,026 7,500,650
Capital assets, being depreciated:
Land improvements 11,936,342 1,989,288 - 13,925,630
Buildings and improvements 71,280,379 624,399 30,905 71,873,873
Machinery and equipment 12,209,056 311,249 - 12,520,305
Vehicles 17,930,929 1,078,807 749,980 18,259,756
Infrastructure 24,066,358 - - 24,066,358
Total capital assets being depreciated 137,423,064 4,003,743 780,885 140,645,922
Less accumulated depreciation for:
Land improvements (5,286,544) (574,659) - (5,861,203)
Buildings and improvements (29,555,671) (1,497,466) (2,781) (31,050,356)
Machinery and equipment (10,619,428) (414,135) - (11,033,563)
Vehicles (11,202,158) (1,197,430) (695,915) (11,703,673)
Infrastructure (12,242,466) (366,210) - (12,608,676)
Total accumulated depreciation (68,906,267) (4,049,900) (698,696) (72,257,471)
Total capital assets being depreciated, net 68,516,797 (46,157) 82,189 68,388,451
Governmental activities capital assets, net 75,420,521$ 1,961,795$ 1,493,215$ 75,889,101$
Balance Balance
June 30, 2016 Increases Decreases June 30, 2017Business-type activities:
Capital assets, not being depreciated:
Land 3,596,274$ -$ 201,136$ 3,395,138$
Construction in process 22,355,436 7,579,781 25,987,001 3,948,216 Total capital assets not being depreciated 25,951,710 7,579,781 26,188,137 7,343,354
Capital assets, being depreciated:
Land improvements 2,876,243 - - 2,876,243
Buildings and improvements 102,419,888 152,094 - 102,571,982 Machinery and equipment 9,123,253 83,793 22,491 9,184,555
Infrastructure 60,985,513 3,368,679 67,293 64,286,899
Airport operational assets 271,001,326 23,012,534 - 294,013,860
Parking structures 11,331,311 41,526 - 11,372,837
Total capital assets being depreciated 457,737,534 26,658,626 89,784 484,306,376 Less accumulated depreciation for:
Land improvements (1,748,756) (56,275) - (1,805,031)
Buildings and improvements (36,516,344) (3,863,375) - (40,379,719)
Machinery and equipment (6,021,871) (501,073) (22,491) (6,500,453) Infrastructure (14,127,007) (632,858) - (14,759,865)
Airport operational assets (185,677,563) (8,090,205) - (193,767,768)
Parking structures (9,153,621) (273,036) - (9,426,657)
Total accumulated depreciation (253,245,162) (13,416,822) (22,491) (266,639,493) Total capital assets being depreciated, net 204,492,372 13,241,804 67,293 217,666,883 Business-type activities capital assets, net 230,444,082$ 20,821,585$ 26,255,430$ 225,010,237$
DETAILED NOTES ON ALL FUNDS, CONTINUED
C. Capital Assets
Capital asset activity for the year ended June 30, 2017 was as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 43
Receivable Payable
General Fund 1,935,404$ -$
Nonmajor Governmental Funds - 137,830
Bass Park Fund - 1,797,574
1,935,404$ 1,935,404$
Governmental Activities:
General government 1,353,376$
Public safety 780,928
Health, community services and recreation 132,478
Public services 551,335
Education 1,231,783
Total depreciation expense - governmental activities 4,049,900$
Business-type activities:
Sewer Utility Fund 1,859,038$
Airport Fund 8,090,205
Bass Park Fund 2,954,733
Stormwater 16,494
Economic Development Fund 155,705
Parking Fund 273,036
Municipal Golf Course 67,611
Total depreciation expense - business-type activities 13,416,822$
Contract Paid Balance
Amount To Date Remaining
Building Improvements 777,935$ 397,528$ 380,407$
Infrastructure 1,564,150 468,462 1,095,688
Sewer Upgrades 3,908,651 3,635,088 273,563
DETAILED NOTES ON ALL FUNDS, CONTINUED
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction commitments:
At June 30, 2017 the City had entered into contracts or otherwise committed to various construction projects:
D. Interfund Transactions
Individual fund interfund receivable and payable transactions are described in the Summary of
Significant Accounting Policies Note D. 2. As of June 30, 2017 the balances were as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 44
Federal State of
Government Maine Other Total
General Fund 1,060,711$ 2,893,775$ 1,048,532$ 5,003,018$
Community Development 22,037 - - 22,037
Nonmajor Special Revenue Funds 102,904 - - 102,904
Capital Projects Fund - 323,769 - 323,769
Airport Fund 339,479 567,703 - 907,182
Transfers to Transfers from
General Fund 2,319,912$ 56,331$
Arena Fund 1,798,780 -
Capital Projects Fund 58,891 2,505,919
Nonmajor Governmental Funds 60,732 1,010
Bass Park Fund - 1,798,780
Sewer Fund 25,000 23,150
Nonmajor Enterprise Funds 121,875 -
4,385,190$ 4,385,190$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Individual fund transfers to and from other funds for the fiscal year ended June 30, 2017 are comprised primarily of transfers from fund balances to fund capital projects and to provide operating
subsidies to certain proprietary funds.
E. Due From Other Governments
Due from other governments is comprised of the following amounts at June 30, 2017:
Amounts due from Federal Government are comprised of operating and capital grants for all fund
types. Of the General Fund’s $2,893,775 due from State of Maine, $1,973,340 represents school grant
and State agency billings, and $400,323 represents general assistance claims. Amounts owed to the
Capital Projects and the Airport Funds by the State of Maine are for capital grant purposes. Amounts
due from other communities for tuition reimbursement to Bangor account for $378,484 of the Due
from Other in the General Fund.
F. Leases
Operating Leases
The Airport and Economic Development Proprietary Funds are the lessors of various buildings and land
parcels under operating leases expiring in various years through 2048 and 2041, respectively.
Minimum future rentals to be received on noncancelable leases as of June 30, 2017 are:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 45
Fiscal year ending Economic
June 30,Airport Development
2018 1,739,645$ 466,318$
2019 883,375 466,388
2020 762,784 392,089
2021 644,181 380,767
2022 537,877 343,647
Subsequent to 2023 3,197,984 3,039,088
7,765,846$ 5,088,297$
Economic
Airport Development
Land 565,532$ 2,515,911$
Buildings 22,886,327 3,674,723
Less accumulated depreciation (20,121,429) (1,562,160)
Total 3,330,430$ 4,628,474$
Governmental Business-type
Fiscal Year ending June 30,Activities Activities
2018 142,005$ 10,074$
2019 47,130 7,929
2020 - 2,938
Total minimum lease payments 189,135 20,941
Less: amount representing interest (7,609) (915)
Present value of future minimum lease payments 181,526$ 20,026$
Governmental Business-type
Activities Activities
Machinery and equipment 630,581$ 52,837$
Less accumulated depreciation (521,123) (28,564)
Carrying value 109,458$ 24,273$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Minimum future rentals do not include contingent rentals, which may be received as stipulated in the
lease contracts. The Airport received $1,934,439 in contingent rentals in fiscal year 2017.
The carrying amounts of the leased assets are as follows:
Capital Leases
The City entered into several leases for financing the acquisition of heavy equipment and office
equipment. These lease agreements qualify as capital leases for accounting purposes whereas they
contain a bargain purchase option. Leased equipment below the City’s capitalization policy has not
been capitalized. The following is an analysis of the carrying value of the leased capitalized equipment
as of June 30, 2017:
The following is a schedule of the future minimum lease payments under these capital leases, and the
present value of the net minimum lease payments at June 30, 2017:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 46
Sewer Utility
Fund
Due from bond trustee 1,494,008$
Total 1,494,008$
Bonds and notes payable at June 30, 2016 140,744,237$
Add: principal additions 4,280,000
Less: principal repayments 10,978,624
Bonds and notes payable at June 30, 2017 134,045,613$
DETAILED NOTES ON ALL FUNDS, CONTINUED
G. Other Assets
Other assets are comprised of the following:
H. Unearned Revenue
Community Development Block Grant and Capital Projects Fund unearned revenues consist of $49,286
and $78,298 in advance deposits, respectively. Bass Park Fund unearned revenues consist of $689,496
in advance sales.
I. Long-term Debt
General Obligation Bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital additions. General obligation bonds have been issued for both governmental and business-type
activities. These bonds are reported in the proprietary funds if they are expected to be repaid from
proprietary fund revenues. In addition, general obligation bonds have been issued to refund general
obligation bonds and extinguish an existing retirement liability. General obligation bonds are direct
obligations and pledge the full faith and credit of the government. These bonds generally are issued
as 20-year serial bonds.
The original amount of general obligation bonds issued is $195,536,948. The following is a summary
of general obligation bond and note transactions of the City for the fiscal year ended June 30, 2017:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 47
Fiscal year Interest Business-type Total
Long-term debt of maturity rate City School Activities June 30, 2017
Combined sewer overflow 2018 3.03%- - 152,798 152,798
Tax increment financing note*2018 4.50%12,333 - - 12,333
Maine Business Enterprise Park 2018 5.00%- - 19,857 19,857
Public improvements note*2020 4.50%249,476 - - 249,476
Pension obligation bonds 2026 3.06% - 6.45%18,573,047 1,193,325 4,001,913 23,768,285
Combined sewer overflow 2023 1.94%- - 994,082 994,082
Briggs building note 2023 4.50%- - 535,372 535,372
Combined sewer overflow 2025 1.41%- - 1,183,401 1,183,401
Chancellor's property note 2026 5.00%- - 1,283,287 1,283,287
Combined sewer overflow 2027 1.64%- - 1,081,156 1,081,156
Combined sewer overflow 2028 1.81%- - 1,188,030 1,188,030
Public improvements - 2009 2029 2.00% - 4.375%1,860,000 - - 1,860,000
ARRA - CWSRF 2029 0.00%- - 581,345 581,345
ARRA - CWSRF 2030 0.00%- - 333,944 333,944
Public improvements/refunding 2020 2.00% - 3.25%1,096,637 2,222,732 225,635 3,545,004
Public improvements/refunding 2021 2.00% - 3.25%785,876 - 1,844,124 2,630,000
Qualified school construction bond 2028 4.65%- 5,605,000 - 5,605,000
Refunding/public improvements 2022 2.00% - 2.25%1,217,465 1,096,039 721,496 3,035,000
Arena 2043 3.25% - 5.00%- - 50,715,000 50,715,000
Qualified school construction bond 2035 4.05%- 2,800,000 - 2,800,000
Refunding/public improvements 2032 2.00% - 4.00%5,747,685 - 1,232,315 6,980,000
Refunding/airport improvements 2033 .50% - 4.25%- - 3,635,000 3,635,000
Public improvements 2034 2.00% - 4.00%5,925,000 1,020,000 255,000 7,200,000
Combined sewer overflow 2034 0.10%- - 2,252,243 2,252,243
Public improvements 2030 2.00% - 2.75%2,350,000 320,000 - 2,670,000
Airport improvements 2035 3.00% - 3.65%- - 1,440,000 1,440,000
Refunding/public improvements 2030 2.00% - 3.00%2,914,000 - 261,000 3,175,000
Airport improvements 2027 0.95% - 3.25%- - 840,000 840,000
Combined sewer overflow 2036 1.00%- - 4,280,000 4,280,000
Total bonds and notes payable 40,731,519$ 14,257,096$ 79,056,998$ 134,045,613$
* Notes aggregating $261,809 are held by the City's Airport Fund at fixed, taxable market rates of interest.
Governmental Activities
Fiscal year ending
June 30,Principal Interest Principal Interest
2018 5,469,808$ 2,005,662$ 4,049,929$ 2,633,883$
2019 5,044,052 1,811,043 3,841,012 2,503,221
2020 5,116,641 1,614,642 3,949,504 2,372,793
2021 4,287,500 1,421,326 3,955,525 2,566,109
2022 4,356,677 1,281,556 3,689,252 2,372,229
2023-2027 18,670,937 3,019,403 17,161,873 8,405,887
2028-2032 8,748,000 343,079 13,166,710 5,931,108 2033-2037 3,295,000 66,263 13,213,193 3,967,634
2038-2042 - - 13,095,000 1,877,288
2043 - - 2,935,000 58,700
Total 54,988,615$ 11,562,974$ 79,056,998$ 32,688,852$
Governmental Activities Business-type Activities
DETAILED NOTES ON ALL FUNDS, CONTINUED
Bonds and notes payable at June 30, 2017 are comprised of the following:
Annual debt service requirements to maturity for general obligation bonds and notes payable are as
follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 48
DETAILED NOTES ON ALL FUNDS, CONTINUED
Legal Debt Margin
The City is subject to the laws of the State of Maine, which limits the amount of long-term debt to 15%
of the state’s assessed valuation of the City. At June 30, 2017, the statutory limit for the City was
$381,555,000. The City’s outstanding long-term debt of $134,045,613 at June 30, 2017 was within the statutory limit.
Authorized and Unissued
On November 26, 2007, the City Council authorized the issuance of up to $600,000 in general
obligation bonds for the purpose of renovating and rehabilitating property located at 103 Texas
Avenue. As of June 30, 2017, $155,000 remains authorized and unissued. The City will not be issuing
bonds for this purpose and will expunge the authorizing and unissued amounts.
On August 8, 2011, the City Council authorized the issuance of up to $2,000,000 in general obligation
bonds to provide funding for remediation of the Penobscot River. As of June 30, 2017, $1,590,000
remains authorized and unissued. The City will continue to monitor when and if the debt will be
issued.
On February 24, 2016, the City Council authorized the issuance of up to $2,145,000 in general
obligation bonds through the Maine Municipal Bond Bank State Revolving Fund to finance sewer
infrastructure improvements. As of June 30, 2017, $1,735,000 remains authorized and unissued. The
City expects to issue the debt within the next twenty-four months.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 49
Balance Balance Due within
June 30, 2016 Additions Reductions June 30, 2017 one year
Governmental activities:
General obligation debt 62,068,475$ -$ 7,079,860$ 54,988,615$ 5,469,808$
Accrued compensated absences*2,135,014 1,515,559 1,552,255 2,098,318 1,323,182
Capital leases 408,687 - 227,161 181,526 136,235
Bond premium 567,282 - 53,728 513,554 74,661
Net OPEB obligation*2,927,496 393,037 196,573 3,123,960 -
Net pension liability*6,237,310 2,576,229 - 8,813,539 -
Self insurance liability 2,259,949 616,336 304,140 2,572,145 684,957
Governmental activities
long-term liabilities 76,604,213$ 5,101,161$ 9,413,717$ 72,291,657$ 7,688,843$
Business-type activities:
General obligation debt 78,675,762$ 4,280,000$ 3,898,764$ 79,056,998$ 4,049,929$
Accrued compensated absences*583,716 432,662 444,528 571,850 358,582
Capital leases 29,210 - 9,184 20,026 9,478
Bond premium 2,366,065 - 90,712 2,275,353 90,711
Net OPEB obligation*865,711 114,171 57,101 922,781 -
Net pension liability*1,541,776 605,586 - 2,147,362 -
Self insurance liability 311,215 38,974 38,974 311,215 160,219
Other 156,498 - - 156,498 -
Business-type activities
long-term liabilities 84,529,953$ 5,471,393$ 4,539,263$ 85,462,083$ 4,668,919$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2017, was as follows:
* - The liquidation of compensated absences, net OPEB obligation and net pension liability is fully covered within the General
Fund and individual proprietary funds.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 50
As of June 30, 2017, fund balances components consisted of the following:
Nonspendable Restricted Committed Assigned
General Fund:
Advances to other funds 1,900,500$ -$ -$ -$ Inventory and prepaid items 1,061,973 - - -
PEG capital support - 19,883 - -
School capital - 131,039 - -
Education - 614,000 - -
Cultural Commission/Public Safety - - 288,743 -
Subsequent year expenditures - - - 72,264
Pooled equipment reserve - - - 351,707
Bus equipment reserve - - - 828,388
Fire equipment reserve - - - 355,567
Self insurance reserve - - - 2,525,908
Improvement reserve - - - 1,232,815 Demolition reserve - - - 52,772
Benefit reserve - - - 990,757
Parks & Recreation reserve - - - 29,763
Subtotal 2,962,473 764,922 288,743 6,439,941
Community Development Block Grant - 50,811 - -
Arena Fund - - 613,291 -
Capital Projects Fund 1,120,229 - - 2,581,181
Other Governmental Funds:
Nonexpendable trust principal 525,249 - - -
Nonmajor Special Revenue Funds
Infrastructure - 458,999 - -
Public Safety - 223,284 - -
Transportation - 94,458 - -
Economic Develop - 274,538 - -
Parks - 539,958 - -
Health - 21,755 - -
Other Municipal - 79,090 - -
Nonmajor Permanent FundsCemetery - 100,152 - -
Missionary - 92,833 - -
Education - 116,483 - -
Other Municipal - 205,184 - -
Subtotal 525,249 2,206,734 - -
Total 4,607,951$ 3,022,467$ 902,034$ 9,021,122$
DETAILED NOTES ON ALL FUNDS, CONTINUED
J. Fund Balances
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 51
Governmental Business-type
Capital assets 148,146,572$ 491,649,730$
Accumulated depreciation (72,257,471) (266,639,493)
Bonds payable (54,988,615) (79,056,998)
Capital leases (181,526) (20,026)
Non capital related bonds payable 28,679,092 8,116,358
Non capital related capital leases 134,072 -
Premium on long term debt (513,554) (2,275,353)
Unspent bond proceeds 349,299 1,554,046
Net investment in capital assets 49,367,869$ 153,328,264$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Encumbrances at year end were $1,428,752 for General Fund, $1,512,148 for Capital Projects Fund,
$510,589 for Airport Fund, $591,489 for Sewer Utility Fund and $50,864 for the Stormwater Fund. K. Net Position
Net position represents the difference between assets and deferred inflows and liabilities and deferred
outflows. Net investment in capital assets consists of capital assets, net of accumulated depreciation,
reduced by the outstanding balance of bonds and capital leases payable and adding back any unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either
through the enabling legislations adopted by the City of through external restrictions imposed by
creditors, grantors or laws or regulations of other governments. The City’s net investment in capital
assets was calculated as follows at June 30, 2017:
OTHER INFORMATION
A. 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, injuries to employees, and natural disasters for which the City either
carries commercial insurance or is self–insured. The City currently reports all of its risk management
activities in the General and Proprietary Funds. Claims expenditure, liabilities and reserves 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.
The City purchases coverage under a number of commercially available insurance policies such as;
commercial general liability, auto, property damage and crime and dishonesty, each with limits and
deductibles deemed prudent given the risks, cost of coverage and the City’s ability to fund certain
types of losses. For those claims covered by commercial insurance, the amount of settlements has not
exceeded the coverage for the years ended June 30, 2017, 2016 and 2015.
The City is self-insured for its workers’ compensation liability. Reserves are actuarially determined
each year to assure funding adequacy. In addition, the City purchases excess workers’ compensation
insurance to limit its financial risk. At June 30, 2017, the amount of self-insurance liabilities was $2,883,360. This liability is the City’s best estimate based on available information.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 52
Workers'All other self-
Compensation insured risks Total
Unpaid claims as of July 1, 2015 1,933,590$ 312,863$ 2,246,453$
Incurred claims 239,912 - 239,912
Payments (533,741) (46) (533,787)
Changes in estimates and other adjustments 618,167 419 618,586
Unpaid claims as of July 1, 2016 2,257,928 313,236 2,571,164
Incurred claims 198,197 - 198,197
Payments (322,546) (20,568) (343,114)
Changes in estimates and other adjustments 456,319 794 457,113
Unpaid claims as of July 1, 2017 2,589,898$ 293,462$ 2,883,360$
OTHER INFORMATION, CONTINUED
Changes in the reported liabilities since July 1, 2015 resulted from the following:
B. Tax Increment Financing Districts
The City may provide financial assistance to local economic development projects by using the new
property taxes that result from the commercial investment and corresponding increase in taxable
property valuation. This is accomplished by utilizing municipal tax increment financing districts (TIF) in
accordance with Chapter 260 of MRSA Title 30-A or via a City Council vote, which may result in the
execution of a Credit Enhancement Agreement (CEA). The CEA is a mechanism to assist the
development project by returning all or a portion of the incremental property tax revenues generated
by the new investment directly to the developer. Incremental taxes within a TIF that are not returned
to the developer may be retained by the City to fund eligible local expenses.
For FY 2017, the City captured $3,619,219 in incremental property taxes and dispersed $317,268 in
CEA payments to fifteen (15) developers. The remaining $3,301,951 was applied to eligible local
expenses. The following are the CEA payments that exceed ten (10) percent of the total CEA
payments.
The City dispersed $92,189 to Volunteers of America Northern New England to reimburse for
investments for affordable elderly housing funded through the HUD 202 Program, which represents a
100% TIF.
The City dispersed $47,232 to Peoples United Bank to reimburse for investments for the rehabilitation
and conversion of a historic building into office space, which represents a 100% CEA.
The City dispersed $34,194 to Seminary Housing Partners to reimburse for investments for affordable
elderly housing, which is a 70% TIF.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 53
OTHER INFORMATION, CONTINUED
C. Contingent Liabilities
In 2002, the City filed suit against Citizens Communication Company (Citizens), a potentially responsible party to force cleanup of contamination of the Penobscot River bottom due to the inability
to reach settlement. In July 2007, the City reached a settlement agreement with Citizens, whereby the
City received $7.625 million to be held in escrow and applied to the cost of remediation. A Consent
Decree has been negotiated with the Maine Department of Environmental Protection (DEP). The
remediation of the primary active zone has been completed. The City continues to work with State
and Federal agencies. The City plans to complete the remediation of the majority of the secondary
active zone in the fall of 2017.
In November 2015, the City entered into a consent decree with the Federal Environmental Protection
Agency (EPA) pursuant to which the City is required to (1) implement a capacity management
operations and maintenance program for the sewer collection system, (2) implement a municipal
separate storm sewer system illicit discharge detection and elimination program, (3) develop and
implement a Phase II long-term control plan for the combined sewer overflow program, and (4)
otherwise take such measures as are necessary to achieve and maintain compliance with the Clean
Water Act and permits required of the City thereunder. A complete copy of the Consent Decree is
available at the Wastewater Treatment Plant page of the City’s website www.bangormaine.gov.
The City is a party to various other lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City’s counsel that resolution of these matters will not have a
materially adverse effect on the financial condition of the City.
D. Retirement
The City of Bangor provides retirement pensions for its employees through a number of vehicles,
including a defined contribution plan, defined benefit pension plan and social security.
Defined Contribution Plan
Description of the Plan - The City provides pension benefits for certain employees through a 401(a)
defined contribution plan administered by ICMA/RC. In addition, certain full-time employees are
covered through both a 401 (a) and 457 Deferred Compensation Plans (DCP) also administered by
ICMA/RC. In a DCP, benefits depend solely on amounts contributed to the plan plus investment
earnings. Covered employees are eligible to participate and are fully vested from the date of
employment. The authority to establish and amend plan provisions or requirements rests with the City.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 54
OTHER INFORMATION, CONTINUED
Funding Policy – Plan members not covered by employment contracts are required to contribute 6.5%
of their annual covered salary and the City is required to contribute either 8% or 10% depending upon the employee’s classification. For fiscal year 2017, covered payroll was $19,507,107 and City
contributions were $1,674,585. For those plan members that have employment contracts, the City
contributes at various rates from 10% - 15% of annual earnings. The covered payroll and City contributions for those employees with employment contracts were $306,178 and $32,718
respectively, in fiscal year 2017.
Defined Benefit Pension Plan
Description of the Plan – For certain employees the City contributes to the Maine Public Employees
Retirement System Consolidated Plan for Local Participating Districts (PLD Plan) and Maine Public
Employees Retirement System State Employee and Teacher Plan (SET Plan), cost sharing multiple-
employer defined benefit pension plans, administered by the Maine Public Employers Retirement
System (MPERS). Benefit terms are established in Maine statute. MPERS issues a publicly available
financial report that can be obtained at www.mainepers.org.
Benefits Provided – The PLD and SET Plans provide defined retirement benefits based on members’
average final compensation and service credit earned as of retirement. Vesting (i.e. eligibility for
benefits upon reaching qualification) occurs upon the earning of five years of credit service. In some
cases, vesting occurs on the earning of one year of service credit immediately preceding retirement at
or after normal retirement age. For PLD members, normal retirement age is 60 or 20 or 25 years of
service for certain public safety employees. For SET members, normal retirement age is 60, 62 or 65.
The normal retirement age is determined by whether a member had certain creditable service
requirements on specific dates, as established by statute. The monthly benefit of members who retire before normal retirement age by virtue of having at least 25 years of service credit is reduced by a
statutorily prescribed factor for each year of age that a member is below his/her normal age at
retirement. MPERS also provides disability and death benefits, which are established by contract under applicable statutory provisions (PLD Plan) or by statute (SET Plan).
Contributions – Employee contribution rates are defined by law of Board rule and depend on the terms
of the plan under which an employee is covered. Employer contributions are determined by actuarial
valuations. The contractually required contribution rates actuarially determined as an amount that,
when combined with employee contributions, is expected to finance the costs of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability.
PLD Plan – Employees are required to contribute 8.0% of their annual pay. The City’s
contractually requirement contribution rate for the year June 30, 2017 ranged from 9.1% -
14.2% depending on the applicable benefit structure. The City’s contributions to the pension
plan were $745,366 for the year ended June 30, 2017.
SET Plan – Maine statute requires the State to contribute a portion of the City’s contractually
required contributions. Employees are required to contribute 7.65% of their annual pay. The
City’s contractually required contribution rate for the year ended June 30, 2017 was 13.38% of
annual payroll of which 3.36% of payroll was required from the City and 10.02% was required
from the State. Contributions to the pension plan from the City were $865,039 for the year
ended June 30, 2017.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 55
Deferred Deferred
Outflow of Inflow of
Resources Resources
Differences between expected and
actual experience -$ 424,422$
Changes of assumptions 893,233 -
Net Difference between projected and actual
earnings on pension plan investments 2,306,876 -
Changes in proportion and differences
between City contributions and
proportionate share of contributions - 1,329,811
City contributions subsequent to the
measurement date 1,610,405 -
4,810,514$ 1,754,233$
OTHER INFORMATION, CONTINUED
Pension Liabilities, Expense and Deferred Outflows and Inflows of Resources – The net pension
liabilities were measured as of June 30, 2016, and the total pension liabilities used to calculate the net
pension liabilities were determined by actuarial valuations as of that date, The City’s proportion of the net pension liabilities were based on projections of the City’s long-term share of contributions to the
pension plans relative to the projected contributions of all participating local districts (PLD Plan) and of
all participating School Administrative Units and the State (SET Plan), actuarially determined.
PLD Plan – At June 30, 2017, the City’s reported liability of its proportionate share of the net
pension liability was $8,840,254. At June 30, 2016, the City’s proportion of the PLD plan was
1.6638%.
SET Plan – At June 30, 2017, the City’s reported liability of its proportionate share of the net
pension liability was reduced to reflect the State support provided to the City. The amount
recognized by the City as its proportionate share of the net pension liability, the related State
support, and the total portion of the net pension liability associated with the City were as
follows:
City’s proportionate share of the net pension liability $2,120,647
State’s proportionate share of the net pension liability 35,661,692
Total $37,782,339
At June 30, 2016, the City’s proportion of the SET Plan was .1200%.
For the year ended June 30, 2016, the City recognized pension expense of $7,949,337 for the PLD Plan
and $4,144,026 and revenue of $2,578,338 for support provided by the State for the SET Plan. At June
30, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 56
OTHER INFORMATION, CONTINUED
$1,610,405 is reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension liabilities in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended June 30:
2018 ($137,646)
2019 (45,242)
2020 1,014,265
2021 614,499
Actuarial assumptions - The total pension liability in the June 30, 2016 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
PLD Plan SET Plan
Inflation 2.75% 2.75% Salary Increases, per year 2.75% to 9.0% 2.75% to 14.5%
Investment return, per annum, compounded annually 6.875% 6.875%
Cost of living benefit increases, per annum 2.20% 2.20%
Mortality rates were based on the RP2014 Total Data Set for Healthy Annuitant Mortality Tables
projected forward to 2016.
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 for each major asset class included in the pension
plan’s target asset allocation as of June 30, 2016 are summarized in the following table:
Long-Term Expected
Asset Class Target Allocation Real Rate of Return
US equities 20% 5.7%
Non-US equities 20% 5.5%
Private equity 10% 7.6%
Real estate 10% 5.2%
Infrastructure 10% 5.3%
Hard assets 5% 5.0%
Fixed income 25% 2.9%
Total 100%
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 57
OTHER INFORMATION, CONTINUED
Discount rate - The discount rate used to measure the total pension liability was 6.875% for both the
PLD and SET Plans. The projection of cash flows used to determine the discount rates assumed that employee contributions will be made at the current contribution rate and that contributions from
participating local districts will be made at contractually required rates, actuarially determined. Based
on these assumptions, the pension plans’ 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 liabilities.
Sensitivity of the City’s proportionate share of the net pension liabilities to changes in the discount rate
- The following presents the City’s proportionate share of the net pension liability calculated using the
discount rate of 6.875%, as well as what the City’s proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1-percentage-point lower (5.875% for PLD
and SET Plans) or 1 percentage-point higher (7.875% for PLD and SET Plans) than the current rate:
1% Current 1%
Decrease Discount Rate Increase
(5.875%) (6.875%) (7.875%)
PLD Plan $ 14,673,229 $ 8,840,254 $3,348,716
1% Current 1%
Decrease Discount Rate Increase
(5.875%) (6.875%) (7.875%)
SET Plan $ 3,395,696 $ 2,120,647 $ 1,057,905
Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net position
is available in the separately issued MPERS financial report.
Payables to the pension plan - None as of June 30, 2017.
Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue (IRC) Section 457. The plan permits participating employees to defer a portion of their salary
until future years. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency.
Social Security
The City does not have a section 218 agreement to provide full social security coverage to its
employees. The City does provide full social security coverage to part-time, seasonal and temporary
employees under the Omnibus Budget Reconciliation Act of 1990, and Internal Revenue Service
regulations, which became effective July 1, 1991.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 58
Annual required contribution (ARC)574,842$
Amortization adjustment to ARC (219,362)
Interest on net OPEB obligation 151,728
Annual OPEB cost 507,208$
June 30, 2015 June 30, 2016 June 30, 2017
Annual OPEB cost 547,590$ 542,336$ 507,208$
City contributions (253,004) (253,004) (253,674)
Increase in net OPEB obligation 294,586 289,332 253,534
Net OPEB obligation, beginning of year 3,209,289 3,503,875 3,793,207
Net OPEB obligation, end of year 3,503,875$ 3,793,207$ 4,046,741$
Percentage contributed 46.20%46.65%50.01%
Governmental Business-type Total
Activities Activities June 30, 2017
Actuarial accrued liability (AAL)4,817,833$ 1,399,492$ 6,217,325$
Actuarial value of plan assets - - -
Unfunded actuarial accrued liability (UAAL)4,817,833$ 1,399,492$ 6,217,325$
Covered payroll 17,387,158$ 5,050,651$ 22,437,809$
UAAL as a percentage of covered payroll 27.71%
OTHER INFORMATION, CONTINUED
E. Other Postemployment Benefits
Description of the Plan - The City sponsors a single-employer post-retirement benefit plan providing
health insurance to retiring employees through CIGNA. CIGNA issues a publicly available financial
report that may be obtained through their website www.cigna.com. Full- time City employees age 50 or older and covered under the active medical plan are eligible to participate. Retirees that are
designated in a plan pay 100% of the coverage premium. A Medicare Supplement plan is available for
eligible retirees. For retirees without Medicare, coverage is available without a Medicare offset.
Funding Policy and Annual OPEB Cost - GASB Statement 45 does not mandate the prefunding of
postemployment benefits liability. The City currently plans to fund these benefits on a pay-as-you-go
basis. No assets have been segregated and restricted to provide postemployment benefits. The annual
required contribution (ARC), an actuarial determined rate, represents a level of funding that, if paid on
an ongoing basis, is projected to cover normal cost each year and amortize unfunded actuarial
liabilities over a period not to exceed thirty years. The following table represents the OPEB costs for
the year and the annual required contribution:
Funding Status and Funding Progress – The City’s annual OPEB cost, the net OPEB obligation and the
percentage of annual OPEB cost contributed to the plan for the years ending June 30, 2015, 2016 and 2017 are as follows:
The unfunded actuarial accrued liability as a percentage of covered payroll for June 30, 2017 is as
follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 59
OTHER INFORMATION, CONTINUED
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events in the future. 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 to past expectations and new estimates are made about the future. The required schedule
of funding progress presented as required supplementary information provides multiyear trend information (only nine years available) that shows whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Actuarial methods and assumptions – Projections of benefits are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits in force at
the valuation date and the pattern of sharing benefit costs between the City and plan members at that
point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that
are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of
plan assets. Significant methods and assumptions were as follows:
Actuarial valuation date 07/30/17 – rolled back to 07/1/16 on a “no loss/no gain” basis
Actuarial cost method Projected unit credit cost with linear proration to decrement
Amortization method Level dollar
Amortization period 30 years - open
Actuarial assumptions:
Inflation rate 3.0%
Investment rate of return 4.0%
Payroll growth 3.0%
Healthcare cost trend rate 9.0% - 5.0%
Post retirement benefit increases 0.0% - retirees pay 100% of premium
F. Subsequent Events
On August 28, 2017 the City Council authorized the issuance of up to $3,068,000 in general obligation
bonds for the purpose of funding street and sidewalk work, the City’s annual fleet/equipment
replacement, and WWTP infrastructure. In addition, the City Council authorized the issuance of up to
$5,030,000 in general obligation bonds through the Maine Municipal Bond Bank State Revolving Fund
to finance sewer infrastructure improvements.
II - 60
2009 2010 2011 2012 2013*2014 2015 2016 2017
Actuarial Valuation Date 7/1/2008 7/1/2008 1/1/2011 1/1/2011 6/30/2013 6/30/2014 7/30/2015**7/30/2015**7/30/2017**Governmental activities:Actuarial value of assets -$ -$ -$ -$ -$ -$ -$ -$ -$
Actuarial accrued liability (AAL)8,488,427 8,488,427 3,407,638 3,430,307 5,284,045 5,213,644 5,310,515 5,299,817 4,817,833 Unfunded actuarial accrued liability (UAAL)8,488,427$ 8,488,427$ 3,407,638$ 3,430,307$ 5,284,045$ 5,213,644$ 5,310,515$ 5,299,817$ 4,817,833$ Funded ratio 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Covered payroll 16,257,319$ 17,224,485$ 17,369,969$ 17,175,024$ 16,901,784$ 16,098,456$ 16,550,206$ 17,142,698$ 17,387,158$
Business-type activities:Actuarial value of assets -$ -$ -$ -$ -$ -$ -$ -$ -$ Actuarial accrued liability (AAL)2,710,336 2,710,336 1,095,160 1,072,491 1,671,709 1,657,448 1,525,576 1,536,274 1,399,492 Unfunded actuarial accrued liability (UAAL)2,710,336$ 2,710,336$ 1,095,160$ 1,072,491$ 1,671,709$ 1,657,448$ 1,525,576$ 1,536,274$ 1,399,492$ Funded ratio 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Covered payroll 5,190,927$ 5,439,647$ 5,582,428$ 5,369,798$ 5,347,204$ 5,117,794$ 4,754,453$ 4,969,206$ 5,050,651$
Primary government:Actuarial value of assets -$ -$ -$ -$ -$ -$ -$ -$ -$ Actuarial accrued liability (AAL)11,198,763 11,198,763 4,502,798 4,502,798 6,955,754 6,871,092 6,836,091 6,836,091 6,217,325
Unfunded actuarial accrued liability (UAAL)11,198,763$ 11,198,763$ 4,502,798$ 4,502,798$ 6,955,754$ 6,871,092$ 6,836,091$ 6,836,091$ 6,217,325$ Funded ratio 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Covered payroll 21,448,246$ 22,664,132$ 22,952,397$ 22,544,822$ 22,248,988$ 21,216,250$ 21,304,659$ 22,111,904$ 22,437,809$
UAAL as a percentage of covered payroll 52.21%49.41%19.62%19.97%31.26%32.39%32.09%30.92%27.71%
Only nine years have been presented because 2009 was the year GASB Statement 45 was implemented.* - restated to reflect the reduction in liability resulting from the City discontinuing employment of all employees in the Bass Park Fund.
** - valuation dates are rolled back to the prior July 1st on a "no loss/no gain" basis.
CITY OF BANGOR, MAINE
Required Supplemental Information
Schedule of Funding Progress - Retiree Healthcare Plan
For the Fiscal Year Ended June 30, 2017
Fiscal Year
II - 61
CITY OF BANGOR, MAINE
Required Supplementary Information
Schedule of City's Proportionate Share of the Net Pension Liability
Maine Public Employees Retirement System Consolidated Plan (PLD) and State Employee and Teacher Plan (SET)Last 10 Fiscal Years*
2015 2016 2017
PLD Plan
Proportion of the net pension liability 2.2584%1.9745%1.6638%
Proportionate share of the net pension liability 3,475,288 6,299,478 8,840,254
Covered payroll 10,645,005 9,799,964 8,662,976
Proportion share of the net pension liability
as a percentage of its covered payroll 32.65%64.28%102.05%
Plan fidicuiary net position as a percentage of
the total pension liability 94.10%88.27%81.61%
SET Plan
Proportion of the net pension liability 0.0936%0.1096%0.1200%
City's proportionate share of the net pension liability 1,011,232$ 1,479,608$ 2,120,647$
State's proportionate share of the net pension liability 22,516,392 28,378,344 35,661,692
Total 23,527,624 29,857,952 37,782,339
Covered payroll 24,415,639 25,212,217 25,111,931
Proportion share of the net pension liability
as a percentage of its covered payroll 4.14%5.87%8.44%
Plan fidicuiary net position as a percentage of
the total pension liability 83.91%81.18%76.21%
* The amounts presented for each fiscal year were determined as of the prior fiscal year. As 2015 is the first year of implementation,
prior years data is not available.
II - 62
CITY OF BANGOR, MAINE
Required Supplementary Information
Schedule of City's Contributions
Maine Public Employees Retirement System Consolidated Plan (PLD) and State Employee and Teacher Plan (SET)Last 10 Fiscal Years
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
PLD Plan
Contractually required contributions 492,537 468,553 474,008 584,306 724,134 769,519 782,913 807,117 779,134 745,366
Contributions in relation to the
contractually required contribution 492,537 468,553 474,008 584,306 724,134 769,519 782,913 807,117 779,134 745,366
Contribution deficiency (excess)- - - - - - - - - -
Covered payroll 15,210,573 14,618,061 14,731,041 14,777,273 13,201,233 11,867,248 10,645,005 9,799,964 8,662,976 7,963,681
Contributions as a percentage of
covered payroll 3.24%3.21%3.22%3.95%5.49%6.48%7.35%8.24%8.99%9.36%
SET Plan*
Contractually required contributions - - - - - - 647,014 668,126 843,679 865,039
Contributions in relation to the
contractually required contribution - - - - - - 647,014 668,126 843,679 865,039
Contribution deficiency (excess)- - - - - - - - - -
Covered payroll - - - - - - 24,415,639 25,212,217 25,111,931 25,731,918
Contributions as a percentage of
covered payroll - - - - - - 2.65%2.65%3.36%3.36%
* - Until FY 2014, all employer contributions for the SET Plan were paid by the State of Maine.
II - 63
Change of benefit terms -None
Changes of assumptions -The following are changes in the actuarial assumptions used in the most
recent valuation:
2016 2017
Discount rate 7.125%6.875%
Inflation rate 3.50%2.75%
Salary increases - PLD 3.50% to 9.50%2.75% to 9.00%
Salary increases - SET 3.50% to 13.50%2.75% to 14.50%
Cost of living increase 2.55%2.20%
Long-term expected real
rate of return on assets:
U.S. equites 5.20%5.70%
Real estate 3.70%5.20%
Infrastructure 4.00%5.30%
Hard assets 4.80%5.00%
Fixed income 0.70%2.90%
CITY OF BANGOR, MAINE
Notes to Required Supplementary Information
June 30, 2017
In addition,in prior valuations,mortality rates were based on the RP2000 Combined Mortality Table
projected forward to 2015 using Scale AA; which changed to mortality rates based on the RP2014 Total
Data Set Healthy Annuitant Mortality Tables projected forward to 2016.
GENERAL FUND
The General Fund is used to account for resources traditionally associated with the government, which are not required legally or by sound financial management, to be
accounted for in another fund.
II - 64
Schedule A-1
CITY OF BANGOR, MAINE
Balance Sheet
General Fund
June 30, 2017
ASSETS
Cash and cash equivalents 18,878,973$
Investments 50,000
Receivables:
Taxes 2,641,785
Accounts (net of allowance of $535,075)578,077
Interfund 1,935,404
Intergovernmental 5,003,018
Loans 535,372
Inventory, at cost 554,843
Prepaid items 507,130
Total assets 30,684,602
LIABILITIES
Accounts payable 1,345,499
Accrued wages and benefits payable 4,495,658
Total liabilities 5,841,157
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - property taxes 2,215,800
Total deferred inflows of resources 2,215,800
FUND BALANCES
Nonspendable 2,962,473
Restricted 764,922
Committed 288,743
Assigned 6,439,941
Unassigned 12,171,566
Total fund balance 22,627,645
Total liabilities, deferred inflows ofresources and fund balances 30,684,602$
II - 65
Schedule A-2
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General FundFor the Fiscal Year Ended June 30, 2017
Balances Variance
Carried
7/1/2016 Budget Actual Surplus Carried
Revenues
Taxes
Real and personal property $- 57,471,235$ 57,532,711$ 61,476$ -$
Change in unavailable property tax - - 226,997 226,997 -
Tax increment financing district - (2,732,067) (2,732,067) - -
Payment in lieu of taxes - 169,088 233,683 64,595 -
Excise - 5,015,000 6,170,792 1,155,792 -
Interest on delinquent taxes - 200,000 197,272 (2,728) -
Total taxes - 60,123,256 61,629,388 1,506,132 -
Intergovernmental
State revenue sharing - 2,150,000 2,225,464 75,464 -
School subsidy - 16,554,117 16,554,117 - -
Other -
municipal - 4,082,253 3,984,945 (97,308) -
school - 4,155,961 4,841,004 - 685,043
Total intergovernmental - 26,942,331 27,605,530 (21,844) 685,043
Other revenue
Licenses and permits - 620,243 644,795 24,552 -
Charges for service -
municipal - 8,486,790 8,944,785 457,995 -
school - 4,635,338 5,705,049 - 1,069,711
Fines, forfeits and penalties - 23,000 18,623 (4,377) -
Revenue from use of money and property
municipal - 650,150 727,792 77,642 -
Total other - 14,415,521 16,041,044 555,812 1,069,711
Total revenues - 101,481,108 105,275,962 2,040,100 1,754,754
II - 66
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General FundFor the Fiscal Year Ended June 30, 2017
Balances Variance
Carried
7/1/2016 Budget Actual Surplus Carried
Expenditures
General government
Council - 29,263 26,250 3,013 -
Executive - 428,142 461,954 (45,627) 11,815
Public Transportation - 457,136 491,391 (109,255) 75,000
Human resources - 183,484 180,748 2,736 -
City clerk - 394,581 361,439 33,142 -
Assessing - 357,303 346,724 10,579 -
Legal - 286,100 282,040 4,060 -
Finance - 1,781,291 1,731,716 49,575 -
Insurance - 191,000 167,534 23,466 -
Planning, econ dev, code enforcement - 1,231,162 1,242,350 (11,188) -
Total general government - 5,339,462 5,292,146 (39,499) 86,815
Public safety
Police - 8,917,155 8,540,221 289,942 86,992
Fire 3,425 9,000,257 8,839,959 57,276 106,447
Total public safety 3,425 17,917,412 17,380,180 347,218 193,439
Health, community services and recreation
Health and community services - 3,130,702 3,095,785 34,917 -
Parks and recreation - 1,988,904 1,876,381 112,523 -
Total health, commun. serv and rec.- 5,119,606 4,972,166 147,440 -
Public buildings and services - 10,835,284 10,929,752 (94,468) -
II - 67
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General FundFor the Fiscal Year Ended June 30, 2017
Balances Variance
Carried
7/1/2016 Budget Actual Surplus Carried
Expenditures, continued
Other agencies
County tax - 3,266,411 3,266,411 - -
Downtown Development District - 60,690 60,690 - -
Public library - 1,445,334 1,445,334 - -
Other agencies 1,981 114,920 107,634 778 8,489
Total other agencies 1,981 4,887,355 4,880,069 778 8,489
Education
Regular instruction - 19,239,514 19,066,457 - 173,057
Special education - 6,969,533 6,967,006 - 2,527
Instructional support - 507,152 505,108 - 2,044
System administration - 1,365,870 1,279,283 - 86,587
CTE instruction - 3,924,071 3,817,909 - 106,162
School administration - 1,103,790 1,050,776 - 53,014
Facilities maintenance - 2,449,198 2,360,146 - 89,052
Transportation - 5,142,883 5,133,647 - 9,236
Other instruction - 1,941,400 1,939,084 - 2,316
Debt service - 1,521,075 1,520,120 - 955
Contingency & other - 117,131 112,485 - 4,646
Regular 2,050,914 44,281,617 43,752,021 - 2,580,510
Adult education 130,451 232,250 584,067 - (221,366)
School lunch 8,424 1,515,571 1,435,443 - 88,552
Special revenue 82,718 3,040,390 3,349,504 - (226,396)
Trust and agency 266,793 2,420,088 2,588,742 - 98,139
Total education 2,539,300 51,489,916 51,709,777 - 2,319,439
Other appropriations
Pensions and other fringe benefits - 2,313,666 2,303,287 10,379 -
Debt service - 3,245,565 3,245,537 28 -
Tax increment financing payments - 937,182 887,152 50,030 -
Total other appropriations - 6,496,413 6,435,976 60,437 -
Total expenditures 2,544,706 102,085,448 101,600,066 421,906 2,608,182
Excess (deficiency) of revenues
over/under expenditures (2,544,706) (604,340) 3,675,896 2,462,006 4,362,936
II - 68
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General FundFor the Fiscal Year Ended June 30, 2017
Balances Variance
Carried
7/1/2016 Budget Actual Surplus Carried
Other financing sources (uses)
Appropriation from restricted, committed
and assigned fund balances - 1,257,480 7,480 - (1,250,000)
Appropriation to assigned fund balances - - (1,220,686) (1,220,686) -
Sale of assets - 74,000 31,694 (42,306) -
Contributions - 7,360 7,391 31 -
Insurance Settlements - 52,500 75,634 23,134 -
Transfers to other funds - (814,000) (1,350,614) (536,614) -
Transfers from other funds - 27,000 21,600 (5,400) -
Total other financing sources (uses)- 604,340 (2,427,501) (1,781,841) (1,250,000)
Net change in unassigned fund balance (2,544,706)$ -$ 1,248,395$ 680,165$ 3,112,936$
Unassigned fund balance, beginning of year 11,315,235
Changes in amounts required to be shown as nonspendable fund balance
Inventory and prepaids 176,166
Unassigned fund balance, end of year 12,171,566$
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally
restricted to expenditures for particular purposes.
Other HUD Funds – This is used to account for 1) federal grants obtained and expended
under the Housing and Community Development Act of 1974, as amended, for the
redevelopment of the downtown commercial core of the City and 2) low interest loans to
businesses within the City of Bangor for establishment, expansion or redevelopment
purposes.
Grant Fund – Accounts for federal and state grants that are legally restricted to
expenditures allowable by the grantor agency.
Dedicated Revenue Funds - Accounts for amounts raised or donated to benefit various governmental programs such as; the Dental Clinic, local parks, City forest and Park
Woods complex.
Other Funds – Accounts for funds held to be used in future periods such as tax financing
district repayments and other community funds for capital expenditures relating to the
operation of the area transportation system.
Permanent Fund
Permanent funds are used to report resources that are legally restricted to the extent
that only earnings, not principal, may be used for purposes that support the reporting
government’s programs.
II - 69
Schedule B-1
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2017
Nonmajor
Special Nonmajor Total Other
Revenue Permanent Governmental
Funds Funds Funds
ASSETS
Cash and cash equivalents 1,202,857$ -$ 1,202,857$
Investments - 130,993 130,993
Receivables:
Accounts 124,067 - 124,067
Loans and notes 654,373 908,908 1,563,281
Intergovernmental 102,904 - 102,904
Total assets 2,084,201 1,039,901 3,124,102
LIABILITIES
Accounts payable 94,289 - 94,289
Interfund loans payable 137,830 - 137,830
Total liabilities 232,119 - 232,119
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - loans 160,000 - 160,000
Total deferred inflows of resources 160,000 - 160,000
FUND BALANCES
Nonspendable - 525,249 525,249
Restricted 1,692,082 514,652 2,206,734
Total fund balances 1,692,082 1,039,901 2,731,983
Total liabilities, deferred inflows ofresources and fund balances 2,084,201$ 1,039,901$ 3,124,102$
II - 70
Schedule B-2
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental FundsFor the Fiscal Year Ended June 30, 2017
Nonmajor
Special Nonmajor Total Other
Revenue Permanent Governmental
Funds Funds Funds
Revenues
Intergovernmental $6,787,748 -$ 6,787,748
Charges for services 774,195 - 774,195
Revenue from use of money and property 42,499 - 42,499
Other revenue 105,511 1,500 107,011
Interest revenue - 39,680 39,680
Total revenues 7,709,953 41,180 7,751,133
Expenditures
Current:
Personnel 1,397,144 - 1,397,144
Payments to beneficiaries 36,433 4,624 41,057
Other 3,120,892 - 3,120,892
Bus operations 3,072,046 - 3,072,046
Total expenditures 7,626,515 4,624 7,631,139
Excess of revenues over expenditures 83,438 36,556 119,994
Other financing sources (uses)
Transfers to other funds (25,732) (35,000) (60,732)
Transfers from other funds 1,010 - 1,010
Total other financing uses (24,722) (35,000) (59,722)
Net change in fund balances 58,716 1,556 60,272
Fund balances, beginning of year 1,633,366 1,038,345 2,671,711
Fund balances, end of year $1,692,082 1,039,901$ 2,731,983$
II - 71
Schedule B-3
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2017
Dedicated
Other Grant Revenue
HUD Funds Fund Funds Other Totals
ASSETS
Cash and cash equivalents 274,538$ 6,147$ 408,860 513,312$ 1,202,857$
Receivables:
Accounts - 124,067 - - 124,067
Loans and notes 160,000 - 374,379 119,994 654,373
Intergovernmental - 102,904 - - 102,904
Total assets 434,538 233,118 783,239 633,306 2,084,201
LIABILITIES
Accounts payable - 75,254 - 19,035 94,289
Interfund loans payable - 137,830 - - 137,830
Total liabilities - 213,084 - 19,035 232,119
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - loans 160,000 - - - 160,000
Total deferred inflows of resources 160,000 - - - 160,000
FUND BALANCES
Restricted 274,538 20,034 783,239 614,271 1,692,082
Total fund balances 274,538 20,034 783,239 614,271 1,692,082
Total liabilities, deferred inflows of
resources and fund balances 434,538$ 233,118$ 783,239$ 633,306$ 2,084,201$
II - 72
Schedule B-4
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue FundsFor the Fiscal Year Ended June 30, 2017
Dedicated
Other Grant Revenue
HUD Funds Fund Funds Other Totals
Revenues
Intergovernmental -$ 6,787,748$ -$ -$ 6,787,748
Charges for services - 774,195 - - 774,195
Revenue from use of money and property - - 23,981 18,518 42,499
Contributions - 3,880 600 101,031 105,511
Total revenues - 7,565,823 24,581 119,549 7,709,953
Expenditures
Current:
Personnel - 1,397,144 - - 1,397,144
Payments to beneficiaries - - 5,390 31,043 36,433
Other - 3,120,892 - - 3,120,892
Bus operations - 3,072,046 - - 3,072,046
Total expenditures - 7,590,082 5,390 31,043 7,626,515
Excess (deficiency) of revenues
over (under) expenditures - (24,259) 19,191 88,506 83,438
Other financing sources (uses)
Transfers to other funds - - (1,600) (24,132) (25,732)
Transfers from other funds - - - 1,010 1,010
Total other financing uses - - (1,600) (23,122) (24,722)
Net change in fund balances - (24,259) 17,591 65,384 58,716
Fund balances, beginning of year 274,538 44,293 765,648 548,887 1,633,366
Fund balances, end of year 274,538$ 20,034$ 783,239$ 614,271$ 1,692,082$
II - 73
Schedule B-5
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Permanent Funds
June 30, 2017
Revolving
Other Loan
Funds Funds Totals
ASSETS
Investments -$ 130,993$ 130,993$
Loans receivable 908,908 - 908,908
Total assets 908,908 130,993 1,039,901
LIABILITIES AND
FUND BALANCES
Liabilities - - -
Total liabilities - - -
Fund balances
Nonspendable 394,256 130,993 525,249
Restricted 514,652 - 514,652
Total fund balances 908,908 130,993 1,039,901
Total liabilities and
and fund balances 908,908$ 130,993$ 1,039,901$
II - 74
Schedule B-6
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Permanent Funds
For the Fiscal Year Ended June 30, 2017
Revolving
Other Loan
Funds Funds Totals
Revenues
Investment income $28,750 10,930$ 39,680$
Lot sales 1,500 - 1,500
Total revenues 30,250 10,930 41,180
Expenditures
Current:
Payments to beneficiaries 115 4,509 4,624
Total expenditures 115 4,509 4,624
Excess of revenues
over expenditures 30,135 6,421 36,556
Other financing uses
Transfer to other funds (35,000) - (35,000)
Total other financing uses (35,000) - (35,000)
Net change in fund balances (4,865) 6,421 1,556
Fund balances, beginning of year 913,773 124,572 1,038,345
Fund balances, end of year $908,908 130,993$ 1,039,901$
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises. The intent of the government is to have
the costs of providing goods or services to the general public financed or recovered
primarily through user charges. The government has decided that periodic
determination of net income is appropriate for accountability purposes.
In addition to the major funds reported in Summary of Significant Accounting Policies,
Note C the City has the following nonmajor enterprise funds:
Stormwater Utility – This fund assesses property owners a fee based on the amount of
impervious surface to fund the costs associated with stormwater management.
Economic Development Fund – This fund accounts for the operation and development of
properties acquired by the City. Its purpose is to promote economic growth within the City. The principal source of revenue is rental income.
Parking Fund – This fund accounts for the operation of the City-owned parking lots and
the Pickering Square garage. Revenue sources include monthly lease payments for
parking spaces, hourly/daily parking fees, and fines and waiver fees for parking
violations. Certain of these facilities are operated under a private management contract.
Municipal Golf Course – This fund accounts for the operation of a 27 hole municipal golf
course. Principal revenue sources are season memberships and daily green fees.
Continued on next page
II - 75
Schedule C-1
CITY OF BANGOR, MAINE
Combining Statement of Net Position
Nonmajor Proprietary Funds
June 30, 2017
Business-type Activities - Enterprise Funds
Economic Municipal Total
Stormwater Development Parking Golf Nonmajor
Utility Fund Fund Course Proprietary Funds
ASSETS
Current assets
Cash and cash equivalents 1,111,936$ 995,261$ 852,720$ 461,113$ 3,421,030$
Accounts receivable 357,774 27,616 - - 385,390
Net accounts receivable 357,774 27,616 - - 385,390
Prepaid items 3,073 53,459 65,733 7,518 129,783
Total current assets 1,472,783 1,076,336 918,453 468,631 3,936,203
Noncurrent assets
Capital Assets:
Land and improvements - 3,413,627 - 1,594,732 5,008,359
Buildings and improvements - 3,674,722 - 912,607 4,587,329
Machinery and equipment 247,398 - - 305,859 553,257
Infrastructure - 683,189 - - 683,189
Parking structures - - 11,372,837 - 11,372,837
Construction in process 65,026 - - - 65,026
Total capital assets 312,424 7,771,538 11,372,837 2,813,198 22,269,997
Less accumulated depreciation (24,740) (2,056,991) (9,426,657) (2,043,096) (13,551,484)
Net capital assets 287,684 5,714,547 1,946,180 770,102 8,718,513
Loans receivable - 1,396,296 - - 1,396,296
Total noncurrent assets 287,684 7,110,843 1,946,180 770,102 10,114,809
Total assets 1,760,467 8,187,179 2,864,633 1,238,733 14,051,012
DEFERRED OUTFLOWS OF RESOURCES
Net pension - - 18,929 - 18,929
Total deferred outflows of resources - - 18,929 - 18,929
Continued from previous page
II - 76
Schedule C-1 (con't)
CITY OF BANGOR, MAINE
Combining Statement of Net Position
Nonmajor Proprietary Funds
June 30, 2017
Business-type Activities - Enterprise Funds
Economic Municipal Total
Stormwater Development Parking Golf Nonmajor
Utility Fund Fund Course Proprietary Funds
LIABILITIES
Current liabilities
Accounts payable 77,726 41,337 39,818 7,526 166,407
Accrued wages and benefits payable 4,495 - 3,492 10,996 18,983
Accrued interest - 43,351 7,697 1,788 52,836
Workers' compensation - - 1,953 - 1,953
General obligation debt payable 74,133 264,175 233,241 37,402 608,951
Accrued compensated absences - - 8,168 10,947 19,115
Total current liabilities 156,354 348,863 294,369 68,659 868,245
Long-term liabilities
Workers' compensation - - 8,047 - 8,047
General obligation debt payable 841,156 1,954,343 822,064 291,849 3,909,412
Accrued compensated absences - - 6,920 7,951 14,871
Net OPEB obligation 2,761 - 13,345 27,488 43,594
Net pension liability - - 46,493 - 46,493
Total long-term liabilities 843,917 1,954,343 896,869 327,288 4,022,417
Total liabilities 1,000,271 2,303,206 1,191,238 395,947 4,890,662
DEFERRED INFLOWS OF RESOURCES
Net pension - - 10,329 - 10,329
Total deferred inflows of resources - - 10,329 - 10,329
NET POSITION
Net investment in capital assets 287,684 3,496,029 1,016,924 507,787 5,308,424
Unrestricted 472,512 2,387,944 665,071 334,999 3,860,526
Total net position 760,196$ 5,883,973$ 1,681,995$ 842,786$ 9,168,950$
II - 77
Schedule C-2
Economic Municipal Total
Stormwater Development Parking Golf Nonmajor
Utility Fund Fund Course Proprietary Funds
Operating revenues
Charges for services 1,053,892$ 503,905$ 1,008,494$ 644,303$ 3,210,594$
Operating expenses
Operating expenses other than
depreciation and amortization 493,390 206,515 723,878 523,572 1,947,355
Depreciation and amortization 16,494 155,705 273,036 67,611 512,846
Total operating expenses 509,884 362,220 996,914 591,183 2,460,201
Operating income 544,008 141,685 11,580 53,120 750,393
Nonoperating revenue (expenses)
Interest income 69,131 67,261 1,589 533 138,514
Interest expense - (104,265) (40,644) (12,944) (157,853)
Gain on sale of assets - 673,864 250,000 - 923,864
Total nonoperating revenue (expenses)69,131 636,860 210,945 (12,411) 904,525
Net income before transfers 613,139 778,545 222,525 40,709 1,654,918
Transfers to other funds (121,875) - - - (121,875)
Change in net position 491,264 778,545 222,525 40,709 1,533,043
Net position, beginning of year 268,932 5,105,428 1,459,470 802,077 7,635,907
Net position, end of year 760,196$ 5,883,973$ 1,681,995$ 842,786$ 9,168,950$
Business-type Activities - Enterprise Funds
Nonmajor Proprietary FundsFor the Fiscal Year Ended June 30, 2017
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenses and Changes in Net Position
Continued on next page
II - 78
Schedule C-3
Economic Municipal Total
Stormwater Development Parking Golf Nonmajor
Utility Fund Fund Course Proprietary Funds
Cash flows from operating activities
Cash received from customers 1,113,193$ 567,270$ 1,008,794$ 644,303$ 3,333,560$
Cash paid to suppliers for goods and services (287,463) (174,342) (343,745) (226,525) (1,032,075)
Cash paid to employees for services (198,871) - (327,436) (296,251) (822,558)
Net cash provided by
operating activities 626,859 392,928 337,613 121,527 1,478,927
Cash flows from noncapital financing activities
Transfers out (121,875) - - - (121,875)
Net cash (used in)
noncapital financing activities (121,875) - - - (121,875)
Cash flows from capital and related financing activities
Acquisition and construction of capital assets (3,886) (152,095) (41,526) - (197,507)
Principal paid on general obligation bonds (74,133) (255,891) (225,508) (35,237) (590,769)
Interest paid on general obligation bonds - (112,906) (42,292) (13,376) (168,574)
Proceeds from sale of property - 875,000 250,000 - 1,125,000
Net cash provided by (used in) capital
and related financing activities (78,019) 354,108 (59,326) (48,613) 168,150
Cash flows from investing activities
Interest on investments 69,131 99,780 1,589 533 171,033
Net cash provided by investing activities 69,131 99,780 1,589 533 171,033
Net increase in cash 496,096 846,816 279,876 73,447 1,696,235
Cash, beginning of year 615,840 148,445 572,844 387,666 1,724,795
Cash, end of year 1,111,936$ 995,261$ 852,720$ 461,113$ 3,421,030$
For the Fiscal Year Ended June 30, 2017
Business-type Activities - Enterprise Funds
CITY OF BANGOR, MAINECombining Statement of Cash Flows - Nonmajor Proprietary Funds
Continued from previous page
II - 79
Schedule C-3 (con't)
Economic Municipal Total
Stormwater Development Parking Golf Nonmajor
Utility Fund Fund Course Proprietary Funds
Reconciliation of operating income to net
cash provided by operating activities
Operating income 544,008$ 141,685$ 11,580$ 53,120$ 750,393$
Adjustments to reconcile operating income
to net cash provided by
operating activities
Depreciation and amortization 16,494 155,705 273,036 67,611 512,846
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 59,301 46,916 300 - 106,517
(Increase) decrease in prepaid items (458) 16,449 (4,505) (122) 11,364
Increase (decrease) in accounts payable 4,663 32,173 38,582 (6,250) 69,168
Increase (decrease) in other liabilities 2,851 - 18,620 7,168 28,639
Total adjustments 82,851 251,243 326,033 68,407 728,534
Net cash provided by
operating activities 626,859$ 392,928$ 337,613$ 121,527$ 1,478,927$
Business-type Activities - Enterprise Funds
CITY OF BANGOR, MAINE
Combining Statement of Cash Flows - Nonmajor Proprietary FundsFor the Fiscal Year Ended June 30, 2017
FIDUCIARY FUNDS
Fiduciary Funds are used to report assets held in a trustee or agency capacity for others.
Agency Funds – Agency Funds are used to account for situations where the City’s role is
purely custodial, such as the receipt, temporary investment, and remittance of fiduciary
resources to individuals, private organizations, or other governments.
II - 80
Schedule D-1
CITY OF BANGOR, MAINE
Statement of Changes in Assets and Liabilities
Agency FundsFor the Fiscal Year Ended June 30, 2017
Balance Balance
July 1, 2016 Additions Deletions June 30, 2017
ASSETS
Cash:
School Activity Funds 129,456$ 170,252$ 162,782$ 136,926$
Total assets 129,456 170,252 162,782 136,926
LIABILITIES
Funds held for others:
School Activity Funds 129,456 170,252 162,782 136,926
Total liabilities 129,456$ 170,252$ 162,782$ 136,926$
CAPITAL ASSETS USED
IN THE OPERATION
OF GOVERNMENTAL FUNDS
II - 81
Schedule E-1
CITY OF BANGOR, MAINE
Capital Assets Used in the Operation of Governmental Funds
(net of accumulated depreciation)
Schedule of Changes by Function and ActivityFor the Fiscal Year Ended June 30, 2017
Balance Balance
Function and Activity 2016 Additions Deletions 2017
General government
BAT community connector 1,489,962$ 254,828$ 337,761$ 1,407,029$
Central service 17,333 - 2,421 14,912
City hall 640,926 5,543 24,446 622,023
Community and economic development 9,020,866 494,845 453,859 9,061,852
Engineering 4,278 - 2,384 1,894
Information services 120,883 49,974 31,970 138,887
Motor pool 3,413,162 748,861 694,928 3,467,095
Other - unclassified 8,780 - 8,780 -
Total general government 14,716,190 1,554,051 1,556,549 14,713,692
Public safety
Fire 4,617,705 1,223,451 436,630 5,404,526
Police 8,474,358 278,826 353,368 8,399,816
Total public safety 13,092,063 1,502,277 789,998 13,804,342
Health, community services and recreation
Parks and recreation 3,221,844 1,420,563 1,345,761 3,296,646
Total health, community services and recreation 3,221,844 1,420,563 1,345,761 3,296,646
Public building and services
Public works 14,656,364 288,936 619,023 14,326,277
Total public buildings and services 14,656,364 288,936 619,023 14,326,277
Education 29,734,060 1,245,868 1,231,784 29,748,144
Total governmental fund capital assets 75,420,521$ 6,011,695$ 5,543,115$ 75,889,101$
OTHER INFORMATION
II - 82
Schedule F-1
CITY OF BANGOR, MAINE
Assessed Valuation, Commitment and Collections
For the Fiscal Year Ended June 30, 2017
VALUATION
Land and buildings 2,344,351,100$
Land and buildings - Homestead exemption 74,491,300
Personal property 221,870,900
Personal property - BETE exemption 105,332,700
Total valuation 2,746,046,000$
COMMITMENT
Real estate, personal property (excludes Homestead and BETE exemptions)2,566,222,000$
Tax rate 0.02250
Total commitment 57,739,995
ADD
Supplemental taxes committed 41,722
57,781,717
LESS
Collections 2017 56,513,791
Abatements 116,643
2017 taxes receivable at June 30, 2017 1,151,283$
II - 83
Schedule F-2
General Fund expenditures/uses ( Schedule A-2)
General government 5,292,146$
Public safety 17,380,180
Health, community services and recreation 4,972,166
Public buildings and services 10,929,752
Other agencies 4,880,069
Education 51,709,777
Other appropriations 6,435,976
Other uses, gross*1,350,614
Gross expenditures and uses 102,950,680
General Fund debt service 7,520,573
Net expenditures and uses 95,430,107$
Indicated unassigned fund balance @ 8.33%7,949,328$
Actual unassigned fund balance (Schedule A-2)12,171,566$
Actual unassigned fund balance as a percentage
of net expenditures and uses 12.75%
* excludes amounts appropriated from unassigned and assigned fund balance
of the last year's General Fund operating expenditures. The following table sets forth the calculation
as of June 30, 2017.
The City Charter states that the City Council shall target an a General Fund unassigned fund balance
General Fund Unassigned Fund Balance Sufficiency Calculation
For the Fiscal Year Ended June 30, 2017
CITY OF BANGOR, MAINE
of no more than 16.66% of operating expenditures. The target balance is established at 8.33%
STATISTICAL SECTION
This part of the City of Bangor’s comprehensive annual financial report presents
detailed information as a context for understanding what the information in the
financial statements, note disclosures and required supplementary information
says about the government’s overall financial health.
Page
Financial Trends III - 1
The schedules contain trend information to help the reader
understand how the City’s financial performance and well-being
have changed over time.
Revenue Capacity III - 8
These schedules contain information to help the reader assess the
City’s most significant local revenue source, the property tax.
Debt Capacity III - 12
These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the
ability to issue additional debt in the future.
Demographic and Economic Information III - 16
These schedules offer demographic and economic indicators to help
the reader understand the environment within which the City’s
financial activities take place.
Operating Information III - 18
These schedules contain service and infrastructure data to help the
reader understand how the information in the City’s financial report
relates to the services the City provides and the activities it
performs.
III - 1
Table 1
2011 2012 2013 2014 2015 2016 2017
Governmental activities:
Net investment in capital assets 40,176,260$ 67,253,588$ 54,540,288$ 49,674,874$ 50,030,025$ 47,792,253$ 49,367,869$ Restricted*5,033,496 5,054,449 3,966,494 4,745,034 4,494,021 4,045,808 3,547,716 Unrestricted (3,751,473) (28,635,920) (24,261,524) (29,701,463) (25,459,136) (16,048,402) (15,045,713) Total governmental activities net position 41,458,283 43,672,117 34,245,258 24,718,445 29,064,910 35,789,659 37,869,872
Business-type activities:Net investment in capital assets 155,344,528 152,749,709 165,548,784 159,116,820 156,544,970 159,537,793 153,328,264 Unrestricted 15,549,352 12,823,198 4,879,657 6,860,485 8,428,935 8,766,272 14,668,855
Total business-type activities net position 170,893,880 165,572,907 170,428,441 165,977,305 164,973,905 168,304,065 167,997,119
Primary government:
Net investment in capital assets 195,520,788 220,003,297 220,089,072 208,791,694 206,574,995 207,330,046 202,696,133
Restricted*5,033,496 5,054,449 3,966,494 4,745,034 4,494,021 4,045,808 3,547,716
Unrestricted 11,797,879 (15,812,722) (19,381,867) (22,840,978) (17,030,201) (7,282,130) (376,858) Total primary government net position 212,352,163$ 209,245,024$ 204,673,699$ 190,695,750$ 194,038,815$ 204,093,724$ 205,866,991$
Only seven years have been presented because 2011 was the year GASB Statement No. 54 was implemented. * Certain amounts within net position have been reclassified to conform with 2016 presentation.
(accrual basis of accounting)Last Ten Fiscal YearsNet Position by ComponentCITY OF BANGOR, MAINE
Fiscal Year
Continued on next page
III - 2
Table 2
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
ExpensesGovernmental activities:
General government 8,744,549$ 7,868,247$ 8,279,943$ 9,223,718$ 4,490,599$ 4,733,021$ 7,110,075$ 6,871,396$ 6,588,238$ 6,953,399$
Public safety 14,945,855 15,671,645 16,898,374 17,018,427 18,016,430 17,864,294 18,050,107 17,933,525 18,107,357 18,841,238
Health, community services and recreation 8,413,205 9,168,870 9,331,784 9,523,225 8,455,977 9,298,196 9,586,571 9,692,379 10,112,526 9,497,729 Public services*10,501,253 11,812,548 16,380,337 12,413,601 15,399,933 14,408,500 14,249,015 12,956,599 15,409,518 15,997,665
Other agencies 4,829,547 4,580,661 4,658,904 4,479,888 4,209,428 4,630,915 6,799,934 4,638,805 4,528,591 5,049,394
Education 47,537,197 54,294,824 52,763,860 50,986,350 51,223,806 50,145,937 50,594,050 52,297,774 51,901,230 55,079,037 Arena development 41,091 51,332 39,075 61,334 536,251 2,201,200 500,566 - 136 801,439
Community development 2,156,241 912,992 1,506,038 1,542,975 1,152,289 1,356,184 2,178,972 1,316,591 1,592,047 1,335,282
Waterfront 1,754,281 9,252,263 79,911 1,439,065 606,249 381,437 272,857 360,004 331,622 -
Public transportation 2,118,374 3,042,434 2,792,904 1,701,112 3,276,780 3,250,752 2,782,968 2,784,081 3,166,692 3,273,876 Economic development (tif)1,066,192 1,114,112 1,630,081 1,383,662 1,502,503 1,334,470 1,440,452 1,568,811 929,322 711,220
Interest on debt 3,206,764 2,651,599 2,555,839 2,151,172 2,710,135 3,343,590 2,464,804 2,604,030 2,362,899 2,142,976
Total governmental activities expenses 105,314,549 120,421,527 116,917,050 111,924,529 111,580,380 112,948,496 116,030,371 113,023,995 115,030,178 119,683,255
Business-type activities:
Sewer Utility 6,052,419 6,197,277 6,253,436 6,202,202 6,758,495 6,827,790 6,843,975 6,603,195 7,210,861 7,725,453
Airport 19,641,953 19,934,243 20,532,553 20,458,552 20,752,350 20,722,960 20,855,066 20,893,894 20,266,935 21,217,373 Park Woods 678,867 590,250 529,610 496,478 533,671 473,289 497,833 507,210 - -
Stormwater Utility - - - - - - 149,590 241,082 400,924 509,884
Parking 1,438,125 1,374,909 1,402,922 1,206,989 995,631 972,327 925,595 978,658 931,676 1,037,558
Bass Park 1,993,205 1,851,914 1,923,073 2,075,644 1,919,301 3,314,865 6,317,039 7,855,957 7,735,775 7,886,589 Municipal Golf Course 695,969 745,339 733,380 664,311 671,113 687,317 643,323 849,164 613,930 604,127
Economic Development 695,851 712,195 634,764 618,980 615,816 586,140 628,252 698,294 508,234 466,485
Total business-type activities expenses 31,196,389 31,406,127 32,009,738 31,723,156 32,246,377 33,584,688 36,860,673 38,627,454 37,668,335 39,447,469
Total primary government expenses 136,510,938$ 151,827,654$ 148,926,788$ 143,647,685$ 143,826,757$ 146,533,184$ 152,891,044$ 151,651,449$ 152,698,513$ 159,130,724$
* - Amounts previously reported as infrastructure have been reclassified as public services to conform with current year presentation.
(accrual basis of accounting)Last Ten Fiscal YearsChanges in Net Position
CITY OF BANGOR, MAINE
Continued on next page
III - 3
Table 2 (con't)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Program Revenues
Governmental activities:Charges for services General government 2,282,374$ 1,869,711$ 2,386,637$ 2,070,189$ 2,501,326$ 2,214,675$ 2,764,659$ 2,493,428$ 2,196,463$ 2,117,874$
Public safety 2,439,831 3,010,167 2,401,930 3,289,153 2,681,152 3,418,686 2,682,248 3,193,528 3,383,956 3,013,577
Health, community services and recreation 771,254 768,450 836,689 928,307 1,048,707 1,139,382 1,164,090 1,118,582 1,193,185 1,266,221
Public services 4,127,341 3,807,886 3,954,116 3,922,847 4,002,973 3,520,517 3,758,666 3,904,548 3,618,373 3,637,836
Other agencies 22,243 22,068 - 20,248 103,560 - 46,882 - - -
Education 4,539,787 4,386,457 4,533,041 5,165,261 3,806,614 3,835,409 3,446,006 4,699,101 4,506,591 5,705,049 Arena development 1,689,657 2,205,771 2,380,158 2,331,584 2,434,915 2,079,869 1,960,876 1,952,929 1,896,633 1,838,285
Community development 297,394 301,019 332,295 323,494 588,587 474,013 994,546 273,269 313,396 442,445
Public transportation 809,531 944,804 923,433 1,025,080 1,023,717 1,045,793 816,819 857,013 1,048,974 774,195
Tax increment financing - 1,711 - - - - - - - -
Operating grants and contributions 41,370,518 34,155,649 35,683,710 35,604,940 33,137,275 31,901,386 34,600,320 33,541,085 34,838,496 33,872,652
Capital grants and contributions 2,119,150 2,068,478 6,578,917 4,935,614 3,725,432 2,345,794 1,720,879 1,540,614 3,064,312 2,391,680 Total governmental activities program revenues 60,469,080 53,542,171 60,010,926 59,616,717 55,054,258 51,975,524 53,955,991 53,574,097 56,060,379 55,059,814
Business-type activities:
Charges for services
Sewer Utility 6,745,112 7,537,879 7,288,499 7,340,935 7,320,469 7,708,101 8,426,054 8,189,623 7,975,639 8,634,449
Airport 14,475,879 13,953,287 13,767,394 13,080,217 12,540,347 12,069,935 12,220,328 12,036,215 13,576,325 15,870,081 Park Woods 340,494 369,478 371,832 372,715 397,426 417,407 440,295 459,905 - - Stormwater Utility - - - - - - 359,029 1,088,119 1,000,864 1,053,892
Parking 1,001,697 997,111 1,050,579 1,057,710 1,012,109 960,947 1,002,164 1,022,305 1,030,872 1,008,494
Bass Park 1,426,599 1,253,236 1,382,947 1,276,869 1,304,384 1,249,595 2,683,094 3,239,457 3,346,951 3,387,105
Municipal Golf Course 655,834 608,930 658,053 643,501 628,869 592,825 575,020 611,132 732,016 644,303
Economic Development 422,716 569,549 507,867 585,785 409,486 462,033 515,339 589,383 674,066 503,905 Operating grants and contributions - - - - - - - 193,061 - - Capital grants and contributions 3,426,732 4,113,557 8,684,860 3,717,755 2,351,779 6,121,523 4,039,968 6,947,799 8,776,331 3,776,705
Total business-type activities program revenues 28,495,063 29,403,027 33,712,031 28,075,487 25,964,869 29,582,366 30,261,291 34,376,999 37,113,064 34,878,934
Total primary government program revenues 88,964,143$ 82,945,198$ 93,722,957$ 87,692,204$ 81,019,127$ 81,557,890$ 84,217,282$ 87,951,096$ 93,173,443$ 89,938,748$
(accrual basis of accounting)Last Ten Fiscal Years
Changes in Net Position
CITY OF BANGOR, MAINE
Continued from previous page
III - 4
Table 2 (con't)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Net (expense)/revenueGovernmental activities (44,845,469)$ (66,879,356)$ (56,906,124)$ (52,307,812)$ (56,526,122)$ (60,972,972)$ (62,074,380)$ (59,449,898)$ (58,969,799)$ (64,623,441)$ Business-type activities (2,701,326) (2,003,100) 1,702,293 (3,647,669) (6,281,508) (4,002,322) (6,599,382) (4,250,455) (555,271) (4,568,535) Total primary government expense (47,546,795) (68,882,456) (55,203,831) (55,955,481) (62,807,630) (64,975,294) (68,673,762) (63,700,353) (59,525,070) (69,191,976)
General revenues and other changes in net positionGovernmental activities:Property taxes 43,775,938 46,977,792 48,182,455 48,027,330 48,520,390 49,930,989 52,243,583 55,303,613 56,062,583 56,721,029 Payment in lieu of taxes 122,510 141,595 117,770 161,879 156,629 95,620 161,438 156,417 193,599 233,683 Excise taxes 4,641,320 4,752,005 4,694,936 4,515,752 4,596,947 4,594,821 5,400,100 5,844,800 6,272,270 6,170,792 Franchise taxes 300,768 322,526 348,163 367,672 372,542 362,088 350,014 341,605 336,979 346,303 Unrestricted grants and contributions 5,520,774 5,260,439 4,999,567 4,859,811 4,963,161 4,857,030 3,787,128 3,794,664 4,173,167 4,464,142 Unrestricted investment earnings 1,274,939 874,824 673,295 565,326 530,631 57,620 510,429 413,923 488,936 380,580 Gain on sale of asset - - - - - - - - - 62,180 Miscellaneous 161,439 93,967 135,849 92,379 16,698 112,060 1,863 410,991 179,163 - Transfers (539,088) (739,179) 761,103 (637,898) (417,042) (8,772,781) (3,170,717) (2,469,650) (2,012,149) (1,675,055) Total governmental activities 55,258,600 57,683,969 59,913,138 57,952,251 58,739,956 51,237,447 59,283,838 63,796,363 65,694,548 66,703,654
Business-type activities:Property taxes - - - - - - 750,000 800,000 1,000,000 1,100,000 Unrestricted investment earnings 1,326,787 1,025,098 1,035,753 752,891 543,493 345,932 504,584 462,069 420,951 555,259 Gain (loss) on sale of asset - - - - - (260,857) - - 452,331 931,275 Special Item - - - - - - - (484,664) - - Transfers 539,088 739,179 (761,103) 637,898 417,042 8,772,781 3,170,717 2,469,650 2,012,149 1,675,055 Total business-type activities 1,865,875 1,764,277 274,650 1,390,789 960,535 8,857,856 4,425,301 3,247,055 3,885,431 4,261,589
Total primary government 57,124,475 59,448,246 60,187,788 59,343,040 59,700,491 60,095,303 63,709,139 67,043,418 69,579,979 70,965,243
Change in net positionGovernmental activities 10,413,131 (9,195,387) 3,007,014 5,644,439 2,213,834 (9,735,525) (2,790,542) 4,346,465 6,724,749 2,080,213 Business-type activities (835,451) (238,823) 1,976,943 (2,256,880) (5,320,973) 4,855,534 (2,174,081) (1,003,400) 3,330,160 (306,946)
Total primary government 9,577,680$ (9,434,210)$ 4,983,957$ 3,387,559$ (3,107,139)$ (4,879,991)$ (4,964,623)$ 3,343,065$ 10,054,909$ 1,773,267$
Changes in Net PositionCITY OF BANGOR, MAINE
(accrual basis of accounting)Last Ten Fiscal Years
III - 5
Table 3
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Tax Revenues
Property taxes 43,775,938$ 46,977,792$ 48,182,455$ 48,027,330$ 48,520,390$ 49,930,989$ 52,243,583$ 55,303,613$ 56,062,583$ 56,721,029$
Excise taxes 4,641,320 4,752,005 4,694,936 4,515,752 4,596,947 4,594,821 5,400,100 5,844,800 6,272,270 6,170,792
Franchise taxes 300,768 322,526 348,163 367,672 372,542 362,088 350,014 341,605 336,979 346,303
Total tax revenues 48,718,026$ 52,052,323$ 53,225,554$ 52,910,754$ 53,489,879$ 54,887,898$ 57,993,697$ 61,490,018$ 62,671,832$ 63,238,124$
CITY OF BANGOR, MAINEGovernmental Activities Tax Revenues By SourceLast Ten Fiscal Years(accrual basis of accounting)
III - 6
Table 4
Fiscal Year
2011 2012 2013 2014 2015 2016 2017
General Fund:
NonspendableAdvances to other funds 1,900,500$ 1,900,500$ 1,900,500$ 1,900,500$ 1,900,500$ 1,900,500$ 1,900,500$
Inventory and prepaid items 963,770 860,187 873,714 853,265 672,248 1,238,139 1,061,973 RestrictedEducation purposes 1,213,508 936,158 186,871 974,012 889,481 1,354,267 745,039
Municipal purposes 405,119 349,362 288,519 288,857 19,803 19,830 19,883 Committed - municipal purposes 19,033 373,753 10,583 2,623 110,933 5,406 288,743
AssignedEncumbrances 1,389,501 1,548,268 777,788 31,347 15,987 244,899 72,264 Municipal purposes 3,115,199 3,240,838 3,415,627 3,386,444 4,626,740 5,509,947 6,367,677
Unassigned 8,017,940 7,563,658 7,727,014 9,598,472 9,995,105 11,315,235 12,171,566 Total general fund 17,024,570$ 16,772,724$ 15,180,616$ 17,035,520$ 18,230,797$ 21,588,223$ 22,627,645$
All other governmental funds:Nonspendable
Permanent Fund Principal 608,710$ 588,515$ 574,492$ 544,200$ 532,758$ 532,338$ 525,249$
Capital Project Fund - - - - - - 1,120,229 Restricted
Community Development Block Grant 346,605 415,956 252,479 - - - 50,811 Penobscot River 759 759 - - - - -
Nonmajor Special Revenue Funds 1,637,362 1,862,992 1,730,231 1,971,397 2,060,733 1,633,366 1,692,082
Nonmajor Permanent Funds 410,337 449,974 466,951 483,284 495,623 506,007 514,652 Committed
Arena Fund 6,690,287 - 2,761,541 1,051,134 871,271 587,141 613,291 Assigned
Capital Project Fund 826,179 - 4,426,655 4,868,248 4,657,905 7,169,264 2,581,181
Capital Project Fund Encumbrances - 1,853,043 127,712 - - - - Unassigned
Community Development Block Grant - - - (3,275) (10,679) (3,153) - Arena Fund - (4,603,950) - - - - -
Capital Project Fund (537) - - - - - -
Nonmajor Special Revenue Funds (12,257) (4,584) (5,736) - - - - Total all other governmental funds 10,507,445$ 562,705$ 10,334,325$ 8,914,988$ 8,607,611$ 10,424,963$ 7,097,495$
Only seven years have been reported because 2011 was the year GASB 54 was implemented.
(modified accrual basis of accounting)Last Ten Fiscal YearsFund Balances of Governmental Funds
CITY OF BANGOR, MAINE
III - 7
Table 5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Revenues:
Taxes:
Property taxes 43,767,914$ 47,113,576$ 48,284,733$ 48,371,202$ 48,688,270$ 50,004,619$ 52,748,153$ 55,650,209$ 56,626,711$ 57,378,981$
Excise taxes 4,641,320 4,752,005 4,694,936 4,515,752 4,596,947 4,594,821 5,400,100 5,844,800 6,272,270 6,170,792
Total tax revenues 48,409,234 51,865,581 52,979,669 52,886,954 53,285,217 54,599,440 58,148,253 61,495,009 62,898,981 63,549,773
Intergovernmental 41,345,956 41,123,520 46,211,718 45,304,160 40,536,525 39,029,824 40,025,974 38,563,450 41,912,419 40,506,368 Licenses and permits 956,965 644,621 633,339 601,202 948,267 576,559 1,389,717 831,968 755,273 644,795
Charges for services 13,283,275 13,449,587 13,655,764 15,226,575 13,594,482 14,079,514 12,782,036 14,889,219 14,802,549 15,525,283
Program income 296,325 288,677 329,800 314,203 575,460 462,380 765,142 247,549 284,619 407,403
Revenue from use of money and property 3,812,356 3,836,654 3,864,984 3,473,975 4,042,881 3,067,949 3,114,817 2,883,535 2,823,151 2,693,947
Other 7,691,463 428,220 1,108,213 279,426 561,118 165,686 156,659 516,714 227,243 275,771
Total revenues 115,795,574 111,636,860 118,783,487 118,086,495 113,543,950 111,981,352 116,382,598 119,427,444 123,704,235 123,603,340
Expenditures:
General government**5,122,152 5,103,378 5,422,805 4,858,721 5,390,049 5,612,408 5,172,972 5,391,279 5,172,435 5,133,047
Public safety 14,162,638 14,400,420 15,287,575 15,800,938 16,028,180 16,209,402 16,409,651 16,994,567 17,146,674 17,330,311
Health, community services and recreation 4,305,709 4,414,673 4,720,477 5,584,184 5,383,295 4,945,994 4,826,149 5,041,486 5,117,412 4,972,166
Public services 9,906,759 10,048,539 10,055,161 10,196,576 9,842,829 9,835,549 10,052,683 10,704,017 10,387,416 10,907,018
Other agencies 4,227,552 4,294,283 4,291,329 4,747,617 4,409,545 4,382,776 4,566,380 4,684,697 4,723,022 4,886,577
Education 48,293,846 50,380,309 51,590,324 51,391,657 50,159,407 49,880,770 50,771,925 53,037,177 52,655,986 54,722,897
Tax increment financing - 215,483 432,033 165,133 524,013 550,308 632,364 724,347 717,260 711,220
Unclassified 166,994 63,115 54,451 118,216 260,685 2,323,972 590,627 74,128 104,422 44,568
Restricted grants 9,098,706 8,360,660 8,479,740 8,232,148 7,414,001 9,202,815 10,729,492 9,691,489 9,852,311 8,799,030
Capital outlay*8,038,242 16,118,777 20,818,168 12,799,978 45,478,235 10,213,552 12,534,783 8,158,063 7,940,743 9,419,396
Debt service
Principal 2,044,428 2,136,415 12,423,331 3,862,188 6,996,892 22,907,595 3,222,253 3,685,728 3,970,474 5,563,414 Interest 2,436,120 2,373,922 2,472,643 2,375,397 2,180,013 2,923,060 1,957,347 2,050,633 1,983,468 1,871,056 Other charges 299 6,000 61,952 45,988 - - - - - - Total expenditures 107,803,445 117,915,974 136,109,989 120,178,741 154,067,144 138,988,201 121,466,626 120,237,611 119,771,623 124,360,700
Excess (deficiency) of revenues over (under) expenditures 7,992,129 (6,279,114) (17,326,502) (2,092,246) (40,523,194) (27,006,849) (5,084,028) (810,167) 3,932,612 (757,360)
Other financing sources/(uses)Issuance of debt - 3,100,000 3,100,000 2,086,100 30,659,143 10,378,985 8,369,000 3,602,000 3,014,000 - Capital leases - - - - - 456,581 - - 61,152 - Payment to escrow agent - - - - - (4,233,486) - - - - Premium on debt issuance - - - - - 748,121 133,552 - - - Financing proceeds - 7,091,928 9,596,640 - - - - - - - Sale of assets 161,439 104,620 135,849 117,558 84,507 186,709 187,760 565,717 179,163 144,369 Transfers to other funds (2,690,305) (2,865,418) (1,789,024) (2,015,003) (1,861,301) (9,783,007) (4,406,771) (3,698,558) (4,015,412) (4,238,315)
Transfers from other funds 2,151,217 2,126,239 2,550,127 1,377,105 1,444,259 1,010,226 1,236,054 1,228,908 2,003,263 2,563,260
Total other financing sources (377,649) 9,557,369 13,593,592 1,565,760 30,326,608 (1,235,871) 5,519,595 1,698,067 1,242,166 (1,530,686)
Net change in fund balances 7,614,480$ 3,278,255$ (3,732,910)$ (526,486)$ (10,196,586)$ (28,242,720)$ 435,567$ 887,900$ 5,174,778$ (2,288,046)$
Debt service as a percentage of noncapital expenditures 4.70%4.64%14.84%6.17%9.23%25.09%4.99%5.39%5.62%6.92%
* - Capital outlays under the modified accrual basis differ from capital outlays on the statement of activities due to capitalization thresholds andbudgetary requirements.** - Beginning with 2014, certain departmental costs are reflected in General government expenditures instead of other functional areas.
CITY OF BANGOR, MAINE
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years(modified accrual basis of accounting)
III - 8
Table 6
Business
Total Taxable Total Equipment
Fiscal Real Personal Assessed Direct Homestead Tax Other
Year Property Property Value Tax Rate Exemption¹Exemption²Exemptions³
2008 $2,082,355,000 254,991,600 2,337,346,600 17.74 68,742,200$ - 754,362,000
2009 $2,230,645,100 244,740,100 2,475,385,200 17.99 70,408,200$ 8,523,800 793,480,900
2010 $2,299,385,800 257,018,100 2,556,403,900 17.98 70,357,600$ 24,801,200 780,391,900
2011 $2,261,383,800 256,321,000 2,517,704,800 18.09 53,990,200$ 41,980,400 788,121,900
2012 $2,274,528,200 248,183,200 2,522,711,400 18.00 54,283,600$ 57,635,300 795,735,300
2013 $2,282,480,900 245,768,300 2,528,249,200 18.47 53,981,600$ 66,043,600 801,351,000
2014 $2,306,517,400 244,302,800 2,550,820,200 19.56 52,765,500$ 72,600,700 894,525,200
2015 $2,322,253,300 239,021,300 2,561,274,600 20.54 51,753,000$ 86,984,900 914,815,400
2016 $2,370,220,600 229,981,900 2,600,202,500 20.69 50,758,900$ 101,258,300 918,968,900
2017 $2,344,351,100 221,870,900 2,566,222,000 21.16 74,491,300$ 105,332,700 1,017,482,300
*Source - City of Bangor Commitment Report. It is City policy to assess at 100% of estimated actual value.
¹The City receives reimbursement from the State of Maine for 50% of the tax loss related to the Homestead Exemption.
²The Business Equipment Tax Exemption began in 2009. Upon implementation, the City received reimbursement from the State of Maine
for 100% of the tax loss; that reimbursement has declined to 58.0% for 2017.
³Other exemptions consists of property owned by federal, state and local governments, various fully exempt organizations and non-reimbursable
personal exemptions.
CITY OF BANGOR, MAINEAssessed Value and Estimated Actual Value of Taxable Property*Last Ten Fiscal Years
III - 9
Table 7
CITY OF BANGOR, MAINE
Property Tax Rate - Direct and Overlapping GovernmentsLast Ten Fiscal Years
General General Total
Fiscal City Fund Debt Direct Penobscot Total Tax/
Year Government Service Education Tax Rate County (Mill) Rate
2008 7.69 1.18 8.87 17.74 1.06 18.80
2009 8.12 1.16 8.71 17.99 1.06 19.05
2010 8.01 1.27 8.70 17.98 1.07 19.05
2011 7.94 1.40 8.75 18.09 1.11 19.20
2012 7.75 1.42 8.83 18.00 1.20 19.20
2013 8.08 1.41 8.98 18.47 1.18 19.65
2014 8.67 1.48 9.41 19.56 1.24 20.80
2015 8.89 1.65 10.00 20.54 1.26 21.80
2016 8.20 2.61 9.88 20.69 1.26 21.95
2017 8.33 2.64 10.19 21.16 1.34 22.50
III - 10
Table 8
CITY OF BANGOR, MAINE
Principal Property Taxpayers *Current Year and Nine Years Ago
2017 2008
Assessed % of Total Assessed % of Total
Taxpayer Business Value Rank Tax Base Value Rank Tax Base
GLP Capital L.P.Gaming 75,565,400$ 1 2.94%- -
Bangor Mall LLC Shopping mall 62,230,900 2 2.43%- -
Emera Maine Utility 40,761,500 3 1.59%- -
General Electric Manufacturer 26,957,400 4 1.05%81,913,200$ 1 3.40%
Walmart Stores Retailer 21,864,000 5 0.85%- -
QV Realty Trust Real estate interests 21,737,300 6 0.85%15,602,200 5 0.65%
Bangor Gas Company LLC Utility 20,722,100 7 0.81%14,327,700 7 0.60%
Banres, LLC Hotel 17,642,500 8 0.69%- -
HC Bangor LLC Gaming 17,575,000 9 0.68%- -
Bangor Savings Bank Commercial bank 17,388,100 10 0.68%15,094,000 6 0.63%
BANMAK Associates Shopping mall - - 56,985,700 2 2.37%
Paradigm Development LLC Utility - - 31,251,400 3 1.30%
Inland Western Parkade Shopping mall - - 26,206,600 4 1.09%
Eastern Maine Healthcare Medical institution - - 13,464,500 8 0.56%
May Department Stores Retailer - - 12,845,000 9 0.53%
Cabrel Company Real estate interests - - 12,636,400 10 0.53%
Totals 322,444,200$ 12.57%280,326,700$ 11.66%
*Source - City of Bangor Tax Commitment.
III - 11
Table 9
% of
Subsequent Total Total Tax
Fiscal Gross Tax Abate-Net Tax % of Year Tax Collection
Year Levy ments Levy Amount Net Levy Collections Collections to Net Levy
2008 $44,082,476 341,521 43,740,955 42,847,656 97.96%$841,791 43,689,447 99.88%
2009 $47,235,370 275,489 46,959,881 45,688,356 97.29%$1,200,000 46,888,356 99.85%
2010 $48,719,847 588,817 48,131,030 46,205,428 96.00%$1,790,348 47,995,776 99.72%
2011 $48,362,646 168,932 48,193,714 46,857,606 97.23%$1,208,158 48,065,764 99.73%
2012 $48,529,834 175,844 48,353,990 47,025,587 97.25%$1,200,139 48,225,726 99.73%
2013 $49,713,855 134,598 49,579,257 48,276,445 97.37%$1,170,154 49,446,599 99.73%
2014 $53,077,993 43,339 53,034,654 51,692,178 97.47%$1,171,531 52,863,709 99.68%
2015 $55,903,061 282,782 55,620,279 53,708,753 96.56%$1,717,204 55,425,957 99.65%
2016 $57,090,091 445,799 56,644,292 55,557,652 98.08%$582,806 56,140,458 99.11%
2017 $57,781,717 116,643 57,665,074 56,513,791 98.00%$- 56,513,791 98.00%
Collected within the
Fiscal Year of the Levy
CITY OF BANGOR, MAINE
Property Tax Levies and Collections
Last Ten Fiscal Years
III - 12
Table 10
CITY OF BANGOR, MAINE
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-type ActivitiesGeneral General Total
Fiscal Obligation Capital Obligation Capital Primary Per Assessed Per Personal
Year Bonds/Notes Leases Bonds Leases Government Capita*Value Income*
2008 $56,998,022 - 41,722,545 - 98,720,567 3,157.85 4.22%10.62%
2009 $56,687,684 7,091,928 37,623,522 - 101,403,134 3,236.72 4.10%10.88%
2010 $61,689,447 - 34,956,548 - 96,645,995 3,073.00 3.78%10.33%
2011 $58,455,666 - 31,985,337 - 90,441,003 2,737.40 3.59%7.06%
2012 $80,674,158 - 28,707,990 - 109,382,148 3,314.61 4.34%9.47%
2013 $62,727,567 361,009 82,492,223 - 145,580,799 4,416.49 5.76%11.71%
2014 $67,154,638 277,728 82,983,011 41,699 150,457,076 4,604.94 5.90%13.12%
2015 $65,147,398 549,636 83,619,820 33,082 149,349,936 4,585.79 5.83%12.64%
2016 $62,635,756 408,687 81,041,828 29,210 144,115,481 4,449.24 5.54%12.27%
2017 $55,502,169 181,526 81,332,351 20,026 137,036,072 4,284.39 5.34%12.01%
*Source: U.S. Census Bureau.
Governmental Activities Ratio of Net Bonded Debt
III - 13
Table 11
CITY OF BANGOR, MAINE
Ratio of Net General Obligation Debt to Assessed Value and
Net General Obligation Debt Per Capita
Last Ten Fiscal Years
Fiscal Assessed Net Bonded Assessed Per
Year Population*Value GO Debt Value Capita
2008 31,262 $2,337,346,600 98,720,567 4.22%3,157.85
2009 31,329 $2,475,385,200 94,311,206 3.81%3,010.35
2010 31,450 $2,556,403,900 96,645,995 3.78%3,073.00
2011 33,039 $2,517,704,800 90,441,003 3.59%2,737.40
2012 33,000 $2,522,711,400 109,382,148 4.34%3,314.61
2013 32,963 $2,528,249,200 145,219,790 5.74%4,405.54
2014 32,673 $2,550,820,200 150,137,649 5.89%4,595.16
2015 32,568 $2,561,274,600 148,767,218 5.81%4,567.90
2016 32,391 $2,600,202,500 143,677,584 5.53%4,435.73
2017 31,985 $2,566,222,000 136,834,520 5.33%4,278.08
*Source: U.S. Census Bureau.
Ratio of Net Bonded Debt
III - 14
Table 12
CITY OF BANGOR, MAINE
Computation of Direct and Overlapping Debt
June 30, 2017
Percentage Amount
Total Debt Applicable Applicable
Outstanding to Bangor to Bangor
Direct Debt
City of Bangor
General Obligation Bonds 55,502,169$ 100.00%55,502,169$
Capital Leases 181,526 100.00%181,526
Total Debt 55,683,695$ 55,683,695$
* - For year end June 30, 2017 the City had no overlapping debt obligations.
III - 15
Table 13
Total Net Debt Legal Percentage of
Fiscal Debt Applicable to Debt Net Debt to
Year Limit Limit Margin Debt Limit
2008 $353,737,500 98,720,567 255,016,933 27.91%
2009 $356,670,000 94,311,206 262,358,794 26.44%
2010 $365,400,000 96,645,995 268,754,005 26.45%
2011 $369,997,500 90,441,003 279,556,497 24.44%
2012 $368,467,500 109,382,148 259,085,352 29.69%
2013 $369,300,000 145,219,790 224,080,210 39.32%
2014 $369,637,500 146,954,498 222,683,002 39.76%
2015 $381,555,000 145,681,059 235,873,941 38.18%
2016 $383,182,500 140,744,237 242,438,263 36.73%
2017 $381,555,000 134,045,613 247,509,387 35.13%
Total State Valuation 2,543,700,000$
Debt Limitation: 15 % of State Valuation 381,555,000
Debt Applicable to Debt Limitation:
General Obligation Bonds:
Municipal 104,996,451
School 14,257,096
Sewer 14,792,066
Total debt applicable to limit 134,045,613
Legal Debt margin 247,509,387$
CITY OF BANGOR, MAINE
Legal Debt Margin Information
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2017
III - 16
Table 14
CITY OF BANGOR, MAINE
Demographic and Economic Statistics
Last Ten Fiscal Years
Median Per Public Unemploy-
Fiscal Household Capita Median School ment
Year Population *Income*Income*Age*Enrollment**Rate ***
2008 31,262 29,740 19,295 36.1 3,886 5.10%
2009 31,329 29,740 19,295 36.1 3,878 7.80%
2010 31,450 29,740 19,295 36.1 3,821 8.10%
2011 33,039 38,775 25,344 36.7 3,830 7.50%
2012 33,000 34,993 25,344 37.5 3,819 7.10%
2013 32,963 37,707 24,945 36.8 3,875 6.70%
2014 32,673 35,107 23,791 36.5 3,810 5.40%
2015 32,568 36,272 23,977 35.9 3,765 4.60%
2016 32,391 36,272 23,977 35.9 3,780 3.80%
2017 31,985 35,674 23,928 35.4 3,759 3.70%
*Source: U.S. Census.
**Source: Bangor School Department.
***Source: Maine Bureau of Labor Statistics.
III - 17
Table 15
CITY OF BANGOR, MAINE
Principal EmployersCalendar Year and Nine Years Ago
Employees Employer Location Employees Employer Location
1000-4000 Eastern Maine Medical Center Bangor 1000-4999 Eastern Maine Medical Center Bangor
St. Joseph Hospital Bangor Bangor Mall Bangor
City of Bangor Bangor
500-999 Acadia Hospital Bangor Hannaford Supermarkets Throughout
Bangor Savings Bank Bangor Cianbro Corporation Throughout
Bank of America Bangor
City of Bangor Bangor 500-999 Acadia Hospital Bangor
Hannaford Supermarkets Throughout L.L. Bean Bangor
Husson University Bangor Bangor Savings Bank Bangor
Penobscot Community Health Care Throughout Hollywood Slots Bangor
Walmart Throughout Walmart Throughout
St. Joseph Hospital Bangor
* Source - State of Maine, Department of Labor.
¹Source - Bangor, Maine Community & Economic Profile Report, Published by City of Bangor Community & Economic Development.
2017*2008¹
III - 18
Table 16
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Function
General government 100 100 100 100 99 97 92 103 74 77
Public safety
Police 93 93 97 97 96 96 96 93 91 94
Fire 91 91 95 95 95 95 91 87 90 89
Health, community services and recreation 49 49 49 47 49 48 46 41 34 36
Public building and services 81 82 82 81 78 78 76 63 62 61
Education 618 618 621 610 580 580 568 578 570 580
Sewer utility 21 21 21 21 24 24 24 24 27 27
Airport 89 90 86 87 88 93 77 85 69 79
Park woods 2 2 2 2 2 2 1 - - -
Parking 3 3 3 3 3 3 3 3 2 2
Bass park 7 8 8 7 6 5 - - - -
Municipal golf course 9 3 3 3 3 3 3 3 3 3
Totals 1,163 1,160 1,167 1,153 1,123 1,124 1,077 1,080 1,022 1,048
* Source - City of Bangor Human Resource Department, excludes temporary, seasonal and on-call employees.
CITY OF BANGOR, MAINE
Full-time Equivalent City Government Employees by Function*
Last Ten Fiscal Years
III - 19
Table 17
CITY OF BANGOR, MAINEOperating Indicators by Function*
Last Ten Calendar Years
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Function
Code enforcementBuilding permits 485 501 427 518 405 453 433 454 517 571
Certificates of occupancy 430 440 341 448 350 361 395 452 630 609
Sign permits 118 103 90 96 70 69 82 83 86 89
Police
Calls for service 32,392 34,329 32,351 30,167 31,640 33,740 36,153 36,967 38,347 38,505
Fire
Calls for service 7,477 7,990 7,357 8,000 9,020 9,044 9,031 9,292 10,048 10,110
Sewer
Treated flow (billions of gallons)3.21 3.89 3.55 2.81 3.10 2.68 2.69 3.20 2.57 2.44
Biosolids (tons)7,236 7,609 7,572 6,518 6,789 5,832 6,309 5,821 6,230 6,101
* Source - City of Bangor Departmental records.
III - 20
Table 18
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Function
Public safety
Police:
Stations 1 1 1 1 1 1 1 1 1 1Vehicles47505454504843505757
Fire:
Stations 3 3 3 3 3 3 3 3 3 3
Vehicles 28 27 25 25 26 26 26 26 24 25
Public works
Streets (miles)427 429 429 429 431 431 431 431 432 432
Sidewalks (miles)99.6 99.6 99.6 101.4 101.4 101.4 101.4 101.4 101.4 101.4
Parks and recreationParks 29 29 29 29 29 29 29 29 29 29
Parks acreage 950 950 950 950 950 950 950 950 950 950
Public swimming pools 2 2 2 2 2 2 2 2 2 2
Public golf courses 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Indoor ice arena 1 1 1 1 1 1 1 1 1 1Semi-pro baseball stadium 1 1 1 1 1 1 1 1 1 1
Sewer
Treatment plants 1 1 1 1 1 1 1 1 1 1
Pump stations 5 5 5 5 5 5 5 5 5 5Miles of sanitary sewers 103 103 103 103 103 103 103 103 103 103
Miles of combined sewers 44 44 44 44 44 47 49 49 49 49
* Source - City of Bangor Departmental records.
CITY OF BANGOR, MAINE
Capital Asset Statistics by Function*
Last Ten Fiscal Years
Fiscal Year