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City of Bangor, Maine
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Co�nprel�ensivle Annual F�i�nancial Report
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P�epared by: ` � '` ,, , .
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:':.,V .,..�. �:: : ': ..: y -:: .i.;. .
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� ,. Ronald Heller,;.Finance Director -
, .
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Debbie Cy�;, Deputy Firiance Director
David Little, Staff Accountant
Int�oductory Section
City of Bangor, Maine
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 1997
Table of Contents
INTRODUCTORY SECTION Exhibit Page(s)
Letter of Transmittal 1-18
Organizational Chart 19
Elected Officials and Principal Administrative Officers 20
Awards and Recognition 21
FINANCIAL SECTION
R�e ort of Inde�endent Auditors 23
Combined Financial Statements �verv�ew:
Combined Balance Sheet- All Fund Types and
Account Groups 1 26-29
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balances - All Governmental
Fund Types and Expendable Trust Funds 2 30
Statement of Revenues, Expenditures, and Changes
in Unreserved/Undesignated Fund Balance -
Budget and Actual - Budgetary Basis - General Fund 3 31
Combined Statement of Revenues, Expenses, and
Changes in Retained Earnings/Fund Balances - All
Proprietary Fund Types and Similar Trust Funds 4 32
Combined Statement of Cash Flows - All
Proprietary Fund Types and Similar Trust Funds 5 33
Notes to the Financial Statements 34-64
Schedule
General Fund:
Balance Sheet A-1 66
Statement of Revenues, Expenditures, and Changes
in Unreserved/Undesignated Fund Balance -
Budget and Actual - Budgetary Basis A-2 67-69
City of Bangor, Maine
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 1997
Table of Contents (Continued)
Schedule Page(s)
S�ecial Revenue Funds:
Combining Balance Sheet B-1 71
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances B-2 72
�i o'ects nd: �
Balance Sheet C-1 74
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances C-2 75
Enterorise Funds:
Combining Balance Sheet D-1 78-81
Combining Statement of Revenues, Expenses,
and Changes in Retained Earnings D-2 82-83
Combining Statement of Cash Flows D-3 84-87
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Sewer Fund D-4 88
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Airport Fund D-5 89
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Park Woods Fund D-6 90
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - City Nursing Facility
Fund D-7 91
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Parking Fund D-8 92
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Bass Park Fund D-9 93
: City of Bangor, Maine
Annual Financial Report .
For the Fiscal Year Ended June 30, 1997
Table of Contents (Continued)
Schedule Page(s)
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Municipal Golf Course
Fund D-10 94
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Economic Development
Fund D-11 95
Trust and Agency Funds:
Combining Balance Sheet E-1 97
Statement of Revenues, Expenditures, and Changes
in Fund Balances - Expendable Trust Funds E-2 98
Combining Statement of Revenues, Expenses and
Changes in Fund Balances - Nonexpendable Trust Funds E-3 99
Combining Statement of Cash Flows - Nonexpendable
Trust Funds E-4 100
Statement of Changes in Assets and Liabilities - Agency
Funds E-5 101
General Fixed Assets Account Grouv_:
Schedule of General Fixed Assets by Source F-1 103
Schedule of General Fixed Assets by Function F-2 104
Schedule of Changes in General Fixed Assets by Function F-3 10�
Other Inf�rmation:
Assessed Valuation, Commitment, and Collections G-1 107
Undesignated Fund Balance Sufficiency Calculation G-2 108
City of Bangor, Maine
Annual Financial Report
For the Fiscal Year Ended June 30, 1997
Table of Contents (Continued)
STATISTICAL SECTION
Table Page(s)
General Governmental Revenues - Budgetary Basis -
General Fund Only, Last Ten Fiscal Years 1 110-111
General Governmental Expenditures - Budgetary Basis -
General Fund Only, Last Ten Fiscal Years 2 112-113
General Governmental Expenditures/Other Uses and
Revenues/Other Sources - Budgetary Basis- General
Fund Only, Last Ten Fiscal Years 3 114-115
Assessed and Estimated Market Value, Last Ten Fiscal Years 4 116
Property Tax Levies, Collections and Delinquencies,
Last Ten Fiscal Years 5 118-119
Property Tax Rate Components, Last Ten Fiscal Years 6 120
Principal Taxpayers, June 30, 1997 7 121
Computation of Legal Debt Margin, June 30, 1997 8 122
Ratio of Net Bonded General Obligation Debt to Assessed
Value and Net Bonded General Obligation Debt Per Capita,
Last Ten Fiscal Years 9 123
Ratio of Annual Debt Service Expenditures for General
Fund, General Obligation Bonded Debt to Total General �
Fund Expenditures, Last Ten Fiscal Years 10 124
Computation of Direct and Overlapping Debt, June 30, 1997 11 12�
Direct and Overlapping Debt, Last Ten Fiscal Years 12 126
Revenue Bond Coverage, Last Ten Fiscal Years 13 127
Debt Service Requirements to Maturity - All Bonded
Debt, June 30, 1997 14 128
Self Supporting and Tax Supported General
Obligation Debt, June 30, 1997 15 129
Defined Benefit Pension Plan - City and Employee
Rates and Contributions, Last Ten Fiscal Years 16 130-131
City of Bangor, Maine
Annual Financial Report
For the Fiscal Year Ended June 30, 1997
Table of Contents (Continued)
Table Page(s)
Defined Benefit Pension Plan, Funding Status at Cost
. and Market Value, Last Ten Fiscal Years 17 132-133
Public School Enrollment, Last Ten School Years 18 134
Educational Attainment - Persons Age 18 and Over,
Calendar 1996 19 135
Employment Composition, Last Ten Calendar Years 20 136-137
Employment Data, Last Ten Calendar Years 21 138
Major Employers - Bangor and Bangor MSA,
Calendar 1996 22 139
Residential and Commercial Building Permits and Bank
Deposits, Last Ten Fiscal Years 23 , 140
Ten Largest Current Construction Projects, June 30, 1997 24 141
Various Demographic Data, 1990 Census 25 142-143
Taxable Retail Sales, Last Ten Calendar Years 26 144
Miscellaneous Data 27 145
CITY OF , ' �"•°,
MAINE ��� �• 73 HARLOW STREET
BANGOR,MAINE 04401
FINANCE DEPARTMENT TEL.207/945-4400
Ronald I. Heller
Finance Director
December 31, 1997
Honorable Chairman, Members of the
Bangor City Council and the
Citizens of Bangor:
Enclosed herewith are the City of Bangor's audited financial statements for the fiscal year
ended June 30, 1997. In our ongoing�fforts to provide greater and more meaninaful
information to the Council, the people of Bangor, and other interested parties, we have, for the
first time, assembled this Comprehensive Annual Financial Report, or CAFR, the core of
which is formed by the City's audited financial statements. It is our intent that this document
give the City's financial statements more depth, aid in their interpretation, and help the reader
identify the issues inherent in the City's fmancial operations.
Responsibility for the accuracy, completeness and fairness of the data and its presentation rests
solely with the City of Bangor and,more specifically, with the Finance Director and Deputy
Director. To the best of our knowledge and belief, this data, its presentation and the conte�-t in
which it is presented is accurate in all material respects.
This CAFR is presented in three sections:
■ The Introductory Section, of which this letter of transmittal is a part, also consists of an
organizational chart of City government and a listing of principal officials. It is, by its
nature, unaudited, and is intended as an introduction and overview with respect to the
other two sections. An integral part of this letter of transmittal is a narrative report on the
City's financial results for the fiscal year ended June 30, 1997.
■ The Financial Section is composed of the general purpose financial statemenTs, including
all notes and schedules for the City's general fund, its eight �nterprise funds, its various
special revenue and fiduciary funds and its two major account groups. This information
has been prepared by City staff, and includes the City's independent auditor's report.
■ The Statistical Section presents selected financial, economic and demographic
information, presented variously on either single or multi year bases.
LOCATION AND BRIEF HISTORY
The City of Bangor is situated in eastern Maine, in the south-central section of Penobscot
County. It is the County seat and the third most populous of Maine's 22 cities. Bangor is
located approximately 235 miles north-northeast of Boston, 140 miles northeast of Portland,
the State's largest city, and approximately 76 miles northeast of Augusta, the State Capital.
The City is the hub of an 11 municipality employment area as well as the commercial and
cultural center for eastern and northern Maine,which contains more than a third of the State's
population.
The City occupies approximately 35 square miles on the western shore of the Penobscot River,
which forms its southeastern border and sepazates it from the City of Brewer. The Town of
Veazie is contiguous to Bangor on its east. The Town of Orono, home of the principal campus
of the University of Maine System, forms the City's northeastern border. The Town of
Glenburn borders Bangor on the north, the Town of Hermon on the west and the To�vn of
Hampden forms its southern border.
Bangor was first settled in 1656, incorporated as a town on February 25, 1791 and as a city on
February 12, 1834. During the 1850's, Bangor was the world's leading lumber port and was
second only to Chicago in the 1860's to 1870's. In the intervening years, Bangor has become a
major trade, distribution, service and commercial center for the eastern and northern portions of
the State.
ORGAi�1IZATIONAL STRUCTURE
The City's present charter dates to 1931, and has been amended several times over the years;
most recently by City voters in November, 1995. The City operates under a Council-Manaaer
form of government, with a nine-member Council elected at-large to staggered three year
terms, three of which lapse each year.
Councilors are limited by City Charter to two consecutive three year terms. The Council Chair,
or Mayor, is elected annually by the Council from its ranks. The Mayor principally presides
over Council meetings, makes committee assignments, and acts as the City's spokesperson.
The City Manager is the City's Chief Operating Officer, and is appointed by the Council, as are
the Assessor, Solicitor and Clerk. The current City Manager has been in his position since
1988.
The City's schools are governed by a seven-member School Committee. Like the Council, its
members are elected at large to staQaered three year terms. Unlike the Council, there is no
limit to the number of consecutive terms that a member may serve. The School Committee
employs the Superintendent of Schools. The current Superintendent has been in his position
since 1987.
2
FINANCIAL INFORMATION
The Finance Department is responsible for establishing and maintaining the necessary intemal
control mechanisms and structures to assure that City assets are properly collected, accounted
for, invested, expended and safeguarded. It consists of the treasury, audit, tax collection and
" risk management divisions.
The Finance Director is the City's Chief Financial Officer and Treasurer. As such,he/she is
responsible for all financial functions, including managing and recording all financial
transactions, planning for the City's financial needs, prudently investing City funds, identifyina
and managing financial risk, borrowing funds as authorized by City Council action, performing
those tasks assigned by the City Manager and other activities pertaining to the City's financial
affairs.
The Deputy Finance Director is the City's Auditor. As such, she/he is most directly
responsible for maintaining the City's accounts and records, producing the City's aeneral
purpose financial statements and assisting the Finance Director in the performance of his/her
duties.
The Budgeting Process and Controls
The City's budgeting process is keyed to its fiscal year, which begins on July 1 st and ends on
the following June 30th. The City annually adopts budgets for its general fund and eight
enterprise funds. The City Charter requires that the City Manager develop a recommended
budget and submit it to the Council by the second Monday in April. The budget, which mus�
be in balance, contains an estimate of(1) all non-tax revenues and cash receipts expected to be
received during the ne;ct fiscal year, (2)the expenditures necessary for the City to support its
operations, (3) debt service requirements and (4) the tax levy required to complement non-tax
revenues and receipts.
The Council may modify recommended expenditures and the recommended tax lew at its sole
discretion. If the Council fails to adopt a budget by July 1 st,the City Manager's proposed
budget automatically becomes that fiscal year's budget. Upon either event, a property ta� le�--��
is established and filed with the Citv Assessor.
The City employs a full anay of intemal budgetary controls to assure the proper receipt,
custody and disposition of City funds. These include formal Council authorization to accept
and expend funds, segregation of duties with respect to disbursements, computer programs that
require manual override if payments exceed budget, the use of purchase requisitions; warrants,
redundant signature requirements, and the like.
3
� Independent Audit
The City Charter requires that an annual audit be performed by an independent certified public
accountant. The firm of Runyon Kersteen Ouellette was selected by the City Council to
perform this audit, beginning with the fiscal 1997 statements. The firm's report on the City's
general purpose financial statements is included in the financial section of this CAFR.
Additionally, the firm performed various tests and procedures to meet the requirements of the
federal Single Audit Act of 1984 and related OMB Circular A-133. The auditor's report
pertaining to these requirements are separate from this document.
Risk Management
Overall risk management responsibility falls to the Finance Department, which identifies and
takes reasonable steps to ameliorate the foreseeable risks inherent in the normal conduct of
City business. Accordingly, the City regularly purchases coverage under a number of
commercially available insurance policies for a variety of identified risks. These include
coverages under commercial general liability, auto,property damage, crime and dishonest�% and
various other policies, each with limits and deductibles deemed prudent and reasonable, �iven
the nature of the risks, the cost of coverage and the City's ability to fund various types of
losses.
In addition, the City self-insures its workers' compensation program. Reserves are actuarially
evaluated each year to assure their adequacy to at least an 80% confidence level. In addition,
the City purchases excess workers' compensation insurance to buttress this program and liLnit
its financial risk.
Finally,the City engages the services of a risk managementlsafety consultant on a part-time
basis. His/her responsibilities include administering the City's insurance programs, identifyinQ
safety hazards, assisting other City personnel in remedying them, conducting safety trainina
throughout all City departments, and a variety of other related activities.
Cash ManaQement
Investment authority resides with the Finance Director and Deputy Director, acting in
accordance with the City's investment policy. The policy defines the types of investments that
may be made, and specifically prohibits investments in so-called "derivative" instnunents. It is
express City policy to invest all available operating cash so as to (1)preserve City assets (2)
assure liquidity, and (3) optimize return within these parameters.
The City's investment strategy with respect to operating cash is constructed around three tune
horizons and is based on the principle of matching maturities to cash flow needs. Accordinaly,
medium term liabilities (ie. between one and three years) such as debt service and county ta.les
are funded by securities maturing on or about the relevant date. Typically, funds for this
purpose are invested in risk-free vehicles, such as treasury bonds and notes.
4
Shorter tezm cash requirements aze met with appropriately short term maturities, once agai.n
matched as to maturity. Securities typically used for this purpose are treasury bills; as well as
treasury notes and bonds maturirig on or near the dates when cash will be required. Other short
term investments include government agencies,both federally guaranteed and otherwise, and
occasionally "prime" commercial paper for cash needs within 90 days.
Finally, overnight investments are executed through a nightly"sweep"of the City's operating
accounts, designed to keep otherwise idle cash as fully invested as possible. Such funds are
invested through the City's depository bank in a money market fund, and are insured for up to
$2.0 million by MBIA. Amounts in excess of this are invested in perfected repurchase
agreements, with collateral held in the City's name within the trust division of a third party.
Investment decisions among fixed income asset classes are generally made on the basis of
relative value at the time the investment is made. Further, the City's portfolio is neither
actively nor passively managed. Securities remain in its portfolio until maturity, unless called
by the issuer.
FISCAL 1997 RESULTS
The enclosed general purpose financial statements detail the City's financial results for the
fiscal year ended June 30, 1997. As defined therein, and based upon accepted criteria, the
financial reporting entity with which these statements are concerned includes only the City.
General Fund Results �
The general fund is the City's principal operating fund. It provides for general government
functions including Assessing, the City Council,the City Clerk's office, Legal, Executive,
Human Resources, Finarice, Planning, Economic Development, Public Safety, Health and
Welfare, Recreation, Public Buildings and Services, and Education.
The general fund also provides funding for other agencies and governments, such as the Banaor
Public Library, the BanQor Convention and Visitor's Bureau, Penobscot County and several
private schools within the City. It accounts for well over two thirds of the City's total revenues
and expenditures, and substantially all its non-enterprise fund revenues and expenditures.
Balance Sheet (Eshibit 1�
� The general fund balance sheet focuses on the City's liquidity, or those assets and liabilities
likely to convert to cash and be paid within the next fiscal year, respectively.
5
At the end of fiscal 1997 ("FY97"),the general fund had$13.7 million in assets. Not all of
this, however, is eYpected to become available in FY98. Exceptions are the $2.0 million in
amounts due from other funds, which are more properly considered long term in nature. (As
discussed below,the City has set aside $1.9 million in the designated fund balance as a reserve
against what amounts to this "bad debt".) Additionally, a substantial, but indeternunate portion
of taxes receivable will probably remain uncollected and be camed over to subsequent years.
These amounts are also more properly considered long term in nature.
Eliminating these uncertainties, cash and amounts likely to become cash in the general fund for
use during FY98 mininnally approximates$9.1 million, representing a$625 thousand, or 6.4%
decrease from the previous year, when$9.7 million was available. This change is almost
entirely attributable to a decrease of$611 thousand in amounts due from other governments;
approximately $550 thousand of which is due to an accounting change with respect to amounts
due from the State of Maine for teachers' salaries.
Liabilities are comprised of what the City is, at year end, obligated to pay during the nelt fiscal
year. At fiscal year end, the general fund showed$5.8 million in liabilities. This number,
however, should be adjusted to reflect the fact that the $2.1 million in"deferred revenue"
represents amounts owed to, not by the City. (It should be noted that long term debt is not
shown in the general fund balance sheet. These amounts are shown in the General Long Term
Debt Account Group.) .
The amount by which current assets exceed current liabilities is net cunent assets, or worl:ina
cash. This is the net amount, in addition to revenues to be collected in FY98, that the City has
available in its general fund for operating purposes in the coming fiscal year. Reflecting the
adjustments noted above, at fiscal year end this approacimated $5.5 million, down from FY96's
$6.4 million.
General fund balance represents residual assets, or the difference between all general fund
assets and liabilities, and is best described as the accumulation of operating surpluses over the
years. It has three components:
♦ Reserved balances are contractually obligated to be expended in subsequent years. Thev
are not available for other purposes.
♦ Designated balances are set aside by the Council for non-contractually obligated
expenditures in subsequent years. They may, at Council discretion, be made available for
other purposes.
♦ Unreserved/LTndesiQnated balances are neither reserved nor designated for subsequent
expenditure, and may be appropriated by the Council. It is Council policy to "target" these
balances at 7.5% of the previous year's general fund expenditures, adjusted for debt
service. Despite an excess of revenues over expenditures and other uses, at the end of
FY97, unreserved/undesignated balances had decreased by $713 thousand to $3.7 million,
representing 6.7% of general fund expenditures, net of debt service. This decrease has
several components, as shown below.
6
Components of Undesignated/IJnreserved Fund Balance Changes
. Fisca11997
(Dollars in Thousands)
- Beginning unreserved/undesignated fund balance $4,371.2
Add:
Excess of revenues over expenditures and other uses,FY97 692.4
. Subtract:
Amounts in excess of 7.5°/a target appropriated during FY97 to
designated fund balances for capital projects (405.4)
„ Amounts appropriated to designated fund balances as reserves
aQainst interfund loans to enterprise funds 1( •000.01
Ending unreserved/undesignated fund balance 53,6�8.2
Revenues (Schedule A-21:
The general fund is primarily supported by t�es, intergovernmental revenues and charges for
services. FY97 revenues were $�6.5 million; an increase of$711 thousand, or 1.3% from
FY96. The proportion of locally generated revenues to the general fund decreased to 74.7%
from 75.3% beiween FY96 and FY97. This was due to an increase in intergovernmental
revenue of$520 thousand, against an increase in locally generated revenue of$192 thousand.
General fund revenues, their respective percentages of total revenues and both the amount and
percentage change between fiscal 1996 and 1997 aze shown immediately below. �"°`
General Fund Revenues by Source �
Fiscal 1997
- (Dollars in Thousands)
FY97 FY96 FY96/97 Chanae
Revenue source Amount % Rev's Amount %Rev's Amount Percent
Taxes $33,712.0 �9.7% $33,6403 603% $71.7 .2°'0
Intergovernmental 14,322.7 2�.3 13,803.1 24.7 519.6 3.8
Charges for services 7,138.2 12.6 6,940.1 12.4 198.1 2.9
Other revenue 1,339.1 2_4 1,417.3 2_5 782 5.�1
Totals ��6,512.0 100.0% ���,800.8 100.0% �711.2 1.3%
Some of the more notable revenue categories were as follows:
♦ Tax revenues consist primarily of real,personal property and excise taxes. In FY97; $31.1
million, or 92.4% of tax revenues came from property taxes, an increase of$3�3 th�usand
over FY96. Property taY revenue collections continue to perform well, yielding about 9�%
in the current year.
7
♦ Intergovernmental revenue is primarily composed of State revenue sharing and school
subsidies. FY97 State revenue sharing was up$136 thousand, or 5.4% over FY96; the
school subsidy increased by $444 thousand, or 5.2%. Other State-supplied revenue
declined by $60 thousand (2.2°/a).
♦ Charges for services consist of municipal and school charges, both of which were up over
FY961evels, for a combined gain of$198 thousand, or 2.9%.
Expenditures �Schedule A-21:
FY97 expenditures were $55.2 million; an increase of$1.5 million, or 2.8% from FY96. As
always, the largest expenditure category was education, at$28.9 million; an increase of$676
thousand, or 2.4% from FY96. The City's portion of FY97 expenditures was $26.3 million; up
about $826 thousand, or 3.2% from FY96. Expenditures were for public safety; public
services; health, welfare and recreation; and general government services and other agencies
and appropriations.
General fund expenditures, their respective percentages of total expenditures and both the
amount and percentage change between fiscal 1996 and 1997 are shown immediately below.
General Fund Expenditures by Category
Fiscal 1997
(Dollars in Thousands)
FY97 FY96 FY96/97 ChanQe
Department Amount % Exp's Amount % Exp's Amount Percent
Education $28,935.0 52.4% $28,258.7 52.6% $676.3 2.4%
Public safety 9,723.0 17.6 8,990.9 16.7 732.1 8.1
Public services 6,842.5 12.4 7,049.0 13.1 (206.5) (2.9)
General government 3,:s78.4 6.1 3,340.7 6.2 37.7 1.1
Health, welfare
and recreation 2,692.9 4.9 2,5713 4.8 121.6 4.7
Other agencies and
aonropriations 3.636.4 6_6 3.495.4 6_S 141.0 4_0
Totals ���,208.2 100.0% $�3,706.1 100.0% �1,�02.2 2.8%
Notable eYpenditure categories are as follows:
♦ Public safetv expenditures are divided between police and fire services. Expenditures for
the former were up $264 thousand, or 6.3% over FY961evels. The latter were up $469
thousand, or 9.7% over FY961evels. These increases were attributable both to a retroactive
pay increase for firefighters, as well as a change in the Maine State Retirement System
allocation formula.
♦ Health, welfare and recreation increases were due entirely to increased expenditures for
general relief, which rose $122 thousand, or 13.7%. Other expenditures were flat.
8
♦ Other agencies and a�pro�riations consist of expenditures for county taxes,private
schools, the Bangor Public Library, the Bangor Convention and Visitors Bureau and debt
service. The $141 thousand increase iri these categories was primarily due to enhanced
support to the Convention and Visitors Bureau, as well as funds expended only in FY97 in
support of the Maine School for the Arts.
Enterprise Fund Results
�Schedules D-1. D-2 and D-3�,
The City operates eight enterprise funds essentially as business entities. These include Bangor
International Airport, the sewer utility fund, the City Nursing Facility, the parking fund, Bass
Park, Bangor Municipal Golf Course, the Park Woods housing complex and the economic
development fund. Together, these eiQht funds generated $21.2 million in charges for services
and an operating profit, before depreciation, of$6.3 million in FY97; up from $5.9 million in
FY96.
Bangor International Airport:
At $9.7 million, operating revenue at the airport was essentially flat. Operating expenses
before depreciation and amortization (hereinafter referred to collectively only as
"depreciation") declined $146 thousand, or 2.0% from FY96. Net operating income improved
� $137 thousand, and operating cash flow was $3.0, million, up $796 thousand (3�.9%) over -
FY96.
Net income, after adding back depreciation on assets acquired with contributions (hereii�,,�'�:-
referred to as "depreciation add back"), improved $376 thousand, or 40.0%, to $1.3 million.
At fiscal year end, retained earnings stood at$31.9 million, cash and equivalents at $�.1
million.
Sewer Utilit�Fund:
Operati�g revenues were essentially flat here as well, at $6.2 million. Operating expenses
before depreciation decreased 6.4%; to �2.5 million; the second consecutive annual decrease.
Net operatin� income was $2.3 million; �vhich represented an 11.8%, or $242 thousand
improvement over FY96. Operating cash flow was $4.1 million, a 20.3% ($700 thousand)
increase over FY96. Net income, after depreciation add back, was $1.3 million, an
improvement of$187 thousand, or 16.4% over FY96. Retained earnings at fiscal year end
were $12.3 million, cash and equivalents were $3.4 million.
Despite its strong FY97 performance, the sewer fund operates on a planned cash flow deficit
basis. This is funded entirely from $2.6 million received in FY96 as a result of agreements
with the towns of Hampden and Hermon regarding amounts owed for construction of the
City's secondary wastewater treatment plant. This provides a cushion against further rate
increases necessitated by a consent decree with the U.S. Department of Environmental
Protection requiring continuing capital projects and associated borrowing. Current projeciir���,=
indicate that rates may ultimately have to be raised in small increments to cover these deficiis.
9
Citv Nursing Facilitv:
Operating revenue declined 6.5%, to $2.6 million due to continued low occupancy rates.
Operating expenses before depreciation decreased 2.0%, to $2.9 million. The net operating
loss at the facility increased 57.7%, to $344 thousand. More importantly, operating cash flow
was a negative $306 thousand, as compared to a negative $72 thousand in the previous year.
The facility's net loss, after depreciation add back, was $226 thousand. This brought retained
earnings to a negative $531 thousand. Ending cash and equivalents was $47 thousand.
Overall, the facility required both a general fund subsidy of$156 thousand and an interfiuld
loan of$249 thousand. (The general fund subsidy in FY96 was limited to $184 thousand.) In
addition to annually-appropriated operating subsidies, the nursing facility has, over the years,
received cumulative cash flow support from the general fund in the amount of$689 thousand,
which has been fully reserved.
Early in FY98, the City Council accepted the recommendation of the nursing facility's
consultant to restructure its operations to more closely reflect the industry in which it operates
and the market it serves. Among other things, such plans will require bonowing in the amount
of about$400 thousand, with the expectation that the facility will achieve "breakeven" status
within five years. It is the Council's cleaz intention to continue providing nursing facility
services to the City's citizens, albeit in a more mazket-responsive, cost effective way.
Parkin�Fund:
The parking fund incuned its expected loss, although its performance did improve
significantly. Operating revenues were essentially flat at $572 thousand, while operatina
expenses before depreciation decreased 13.1%, to $348 thousand. (This is attributable to more
favorable contractual arrangements ne�otiated with the firm that now manages the City's
parking garages.) As a result, the operating loss improved by $59 thousand,to $7� thousand.
Operating cash flow was $234 thousand; an increase of$70 thousand, or 42.6% over FY96.
Net income after the depreciation add back was $22 thousand which, when added to retained
earnings, resulted in a year end deficit of$69 thousand. Ending cash and equivalents were
$150 thousand; up from last year's $137 thousand.
The general fund's contribution for debt service continues to decline as planned, cominQ in
at $364 thousand in FY97, down from �393 thousand in FY96.
Bass Park:
Bass Park generated $1.2 million in operating revenue in FY97, much of which was a budQeted
decrease of 2.3% from FY96 levels. Operating expenses before depreciation increased $92
thousand, or 7.2%, to just under $1.4 million. On an operating basis (without depreciation); the
complex lost approximately $197 thousand (against a$76 thousand loss in FY96), and overall
showed a loss of$149 thousand after depreciation add back (versus a net loss of$20 thousand
in FY96). Year end retained earnings declined to a negative $1.1 million. Ending cash and
equivalents was minimal at $18 thousand.
10
On an operating cash flow basis, the complex lost $189 thousand. The general fund was once �
again required to provide an operating subsidy of$250 thousand, as well as a cash infusion of
$108 thousand, the latter representing a substantial deterioration from FY96 results. By fiscal
year end,the complex had accumulated $1.3 million in cash flow loans from the general fund
which, as with the City Nursing Facility, has been fully reserved�for.
Also like the City Nursing Facility, efforts are underway to improve the complex's financial
performance. These are described more fully under the Departmental Focus section,below.
Municipal Golf Course:
The golf course continues to operate at a net surplus, on both an accounting and cash flow
basis. At$589 thousand, operating revenues were up 42%, or $24 thousand over last year; and ,
operating expenses before depreciation were $306 thousand, down 6.3%, or$21 thousand from
FY96.
Operating income was $218 thousand; up from$180 thousand in FY96. Net income was S222
thousand, and operating cash flow was $284 thousand, up from last year's results of�176
thousand and $241 thousand, respectively. Ending retained earnings were $951 thousand; cash
and equivalents were $228 thousand. In accordance with standing City policy, $111 thousand,
or half of the golf course's net income (not its cash) was transferred to reserved retained
earnings for future improvements.
Park Woods Com�le�: .
Net income after the depreciation add back was $19 thousand, after giving effect to a�63
thousand operating transfer from the general fund. This represented a significant improvement
over FY96, when net losses were $111 thousand, unmediated by general fund support. � _
The year-over-year difference in performance is almost entirely due to a$69 thousand, or
45.8% increase in rent revenue attributable to improved collection practices instituted by the
� Bangor Housing Authority,the City's agent. Operating expenses before depreciation declined
slightly to $253 thousand. Net operatina cash improved to a negative $29 thousand from
negative $96 thousand in FY96. Retained earnings closed the year with a $113 thousand
deficit; cash and equivalents were minimal at just under $3 thousand.
Economic Development Fund:
Established in FY97, this fund is designed to provide a self-supporting, stable funding source
for economic development projects throu�hout the City. Its revenue is derived from rents and
other fees attributable to two recently acquired parcels of property. One was transferred to the
City from Bangor International Airport, and was thereby released from Federal Aviation
Administration restrictions with respect to their use. The second is a 28 acre riverfront parcel
bought from the Maine Central Railroad.
In FY97, this fund generated$83 thousand in operating revenue. Its operating expenses before
depreciation were $38 thousand; net income was $49 thousand. Cash flow from operatina
activities was $58 thousand. Retained eamings at year end was $49 thousand; ending cash �__�
equivalents was $194 thousand. Given its formation during the fiscal year, it should be notea
that these results are based on less than one year of operations.
11
� LONG TERM DEBT
�Section III.Note 91
� At fiscal year end,the City had long term debt totaling $64.4 million; $59.0 million of which is
full faith and credit, general obligation debt payable from property tax revenues. Of this $�9.0
million, $33.3 million is fully self-supporting,meaning no general fund support is required.
' Rather,this debt is paid from user charges from the wastewater treatment plant, Bangor
International Airport and the municipal golf course.
Most of the rest of this debt is for schools ($12.8 million) and the general fund ($6.9 million).
Smaller amounts are attributable to those funds which require general fund support and thus
rely on the City's full faith and credit pledge. These include the parking fund ($4.2 million),
Bass Park ($830 thousand) and the City Nursing Facility ($350 thousand).
The City is also responsible for its proportionate share of the debt incurred by Penobscot
County and Maine Vocational Region Four. At year end, the City's portions of this debt�vere
$812 thousand and $222 thousand, respectively.
During FY97, the City issued $63 million in new general obligation debt, and retired $6.0
million. General obligation debt service payments due in FY98 aggregate to $11.� million,
$2.7 million of which represents interest. Of the $8.9 million in principal, approximately �4.0
million represents interim financing which has since been refinanced with long term bonds.
The City has been rated"Aa" by Moody's Investors Service since at least the 1940's. Recently,
Moody's changed its rating system to more finely differentiate between"Aa"-rated credits.
The City received Moody's "Aa2" rating in September, 1997 prior to its most recent bond
issue.
DEPARTMENTAL FOCUS: �
BASS PARK FUND
One of the more sensitive political points in Bangor has long been the poor financial
performance of Bass Park, a compleY consisting of a civic center, auditorium, harness racinQ
track and fair grounds lyin�just south of the downtown business district. Since fiscal 1991; the
City has contributed approximatelv �2.3 million from its aeneral fund to this enterprise fund
for operating purposes. FY98 is eYpected to add an additional $300 thousand to that number.
The mission statement adopted by the Bangor City Council in late 199� was the first step in
reversing this trend. In relevant part; it recognizes the complex's proven ability to attract
activities of economic benefit to the City and region as well as the importance of amactinQ
such activity. It also recognizes the central location of Bangor with respect to a large,
dispersed population in need of an economic and social "center". The qualifying mandate that
the compleY adhere to sound business principles eYpresses the desire to generate increasinQ
cash flow from operations over time, thereby decreasing its reliance on the general fund. �
12
In early 1996 the Bangor City Council asked some 30 community members to serve on the
Bass Park Strategic Planning Comm.ittee. The purpose of this group was to review the
complex's situation, identify its opportunities, and develop a strategy to fulfill its mission. The
result was a practical business plan to improve the complex's financial and operating
performance over the next three to five years.
The plan's main goal is to increase operating revenues through aggressive mazketing, and to
improve the quality of the product offered. It thus incorporates marketing, facility
improvement, operational and financial components. The plan calls for incremental operating
expenses of about $100 thousand during the first full yeaz,primarily for marketing start up,
with between $50 thousand and $7� thousand in subsequent years to maintain the marketinQ
effort. Additionally, it identifies capital projects to be undertaken during the first year of�2.�
million, with subsequent costs of between$3 and $4 million.
The plan was presented to, and accepted by the City Council in February, 1997. Fiscal realities
being what they are, a scaled back version of the plan was adopted and funded. This increased
marketing expenditures by $50 thousand and authorized the issuance of$640 thousand in
�eneral obligation debt to fund the more critical capital projects.
Since that time, marketing materials have been commissioned and developed, contacts have
been established with potential users, questionnaires have been designed, and a number of
other operational and financial improvements have been undertaken.
Also, six capital projects have been initiated and are in various stages of compietion. The
Civic Center is being re-roofed; a new basketball floor has been ordered and will be in place by:_.
December, 1997, and the Auditorium's vzntilation system is being refurbished. Additionali_�-, :�
the Auditoriums' concession area will be expanded and relocated to what is now a storaQe area;
the main mens' and women's rest rooms will be expanded and updated, and the Civic Center
will be redecorated, all in the spring of 1998.
The significance of these efforts lies in their implications for City taxpayers. At FY97 fundin�
levels, the impact of the general fund subsidy to Bass Park is approximately $.18 per thousand
of assessed valuation, or about .8% of the total tax rate: Additionally the City has, at the end of
FY97, reserved $1.9 million within the Qeneral fund against outstandinQ loans to enterprise
funds; $1.3 million of which is attributable to the Bass Park complex. This continuinQ drain on
aeneral fund resources diminishes the City's financial fleYibility and its capacitv to undenake
additional projects and initiatives.
While it is true that the complex provides a means for Bangor to attract visitors and the
economic benefits they bring from beyond its borders, it is also true that the complex is a
regional economic engine as well. Thus its cost, which falls primarily to Banaor taxpayers,
often seems to bear an unreasonable relationship to the benefits they receive.
13
To the extent, then, that the cost of maintaining the complex can be either reduced, or more
equitably apportioned among those cities and towns that benefit from its presence, the better
off will be Bangor's t�payers. Currently,there exists no mechanism for spreading these costs
beyond the City's boundaries, although efforts are underway to assess this potential.
Accordingly, the only alternative that appears presently viable is to make the complex as self-
supporting as possible. It is our expectation that the changes and improvements to Bass Park
will begin to show results after FY98, decreasing the financial burden on the City's taxpayers.
ECONOMIC BASE, CONDITION AND OUTLOOK
Bangor is a commercial, industrial and residential community which retains some rural
characteristics. The land area of the City includes tracts of forest and farm lands, open space
and riverfront areas, and a developed downtown business district. Large portions of the City
are as yet undeveloped, and can accommodate significant future growth.
Em�lovment Characteristics:
Bangor has a stable and diverse economic base. Major employers include a mix of health care,
educational, professional, retail,manufacturing, and governmental entities. The Bangor MSA
unemployment rate is typically lower than both United States and State of Maine averages.
The Bangor MSA labor force grew at a faster rate than the State of Maine's rate between 1991-
1996 (ie., 6.6% versus 2.2%).
The Bangor MSA's October, 1997 unemployment rate of 3.4 %was .7% lower than the Maine
rate of 4.1% and a full percent lower than the national rate of 4.4%. The MSA's October rate
was up from the 3.2% level of one year earlier. On a year-over-year basis, the MSA's October,
19971eve1 of employment was 49,300, up 1,000, or 2.1%. State employment, on the other
hand, declined in the same period 1,700, or .3%, and national employment increased by 1.7%.
Transportation:
Convenient access to Bangor is provided by Interstates 95 and 395. The former bisects the
City, and the two intersect within its borders. U.S. Routes lA, 2 and State Routes 15, 100; 221
and 222 all traverse the City. BanQor is served by two railroads and twenty one truckina firms.
Bangor International Airport(BIA), which is located within the City, serves about a million
passengers annually. Located on the heavily traveled great circle route to Europe, the airpon
provides both domestic and international air service for the entire region. It handles forty six
scheduled daily flights, including direct service to Boston,New York, Philadelphia, Atlanta
and Cincinnati. The airport represents 10% of the region's economic activity (both
aeronautical and non-aeronautical), and is nationally recognized as a successful military base
conversion. BIA has the second longest civilian runway on the east coast, and is designated an
alternate landing site for NASA Space Shuttle missions.
Finally, the future of commuter air service appears to be improving, given the commitment of
Business Express to the lease of a hangar at BIA. They intend to relocate their maintenance
operation, with nearly 30 employees, to Bangor.
14
Retail Trade: �
Bangor is the second largest retail market area in the State of Maine, after Portland. The
Bangor Mall, Airport Mall, Broadway Shopping Center, downtown business district, and many
other shopping locations firmly establish Bangor as the regional hub of the eight-county eastern
Maine retail market.
Bangor's retail sector services a huge geographic area, with a total population of 3.1 million.
Bangor is the closest United States metro area to Nova Scotia, Prince Edward Island,
Newfoundland and New Brunswick. Residents of these areas frequently visit and shop in the
Bangor area.
The Bangor Mall area has seen nearly 700,000 square feet of additional commercial
development in the last 6 years. Total floor space in the retail complex is now approYimately
two million square feet and is expected to reach 2.5 million square feet by the end of 1998.
Major projects are currently being planned totaling 375,000 square feet.
Over the last 10 years, growth in Bangor's total taxable retail sales, in constant dollars, has
totaled more than 40%, versus Portland's growth of 33%. Sales in calendar 1996 were up �.�%
over 1995 levels.
Other Services:
With four hospitals, Bangox is a regional center for health care services. With four commercial
and 1 public television stations, 12 radio stations and New England's 4th largest daily
newspaper, Ban�or is also the media and communications hub for the northern and eastern part� =
of the State.
The Bangor MSA is also a:egional center for higher education, largely due to the presence oi
the principal campus of the University of Maine. Bangor itself is horne to a number of other
institutions of higher learning, including Husson College, Bangor Theological Seminary and
Eastern Maine Technical College. All in,there are some fifteen thousand students in the
Bangor MSA enrolled in higher education.
Recent Events and Trends:
In the past year, Bangor has seen sianificant grow-th in its economic base. In 1997, General
Electric initiated its fourth expansion in as many years. The two million dollar investment in
its turbine manufacturing facilities will prepare it to receive production machinery- and toolinQ
for a new line of large turbines, the production of which will be transferred from Schenectady,
New York. �
Also within the past year, a German-Swiss company, Eldur Corporation, moved into a 3;;000
square foot building near the airport. It produces and distributes electronic components
throughout the western hemisphere. Employment is eYpected to reach 100.
Additionally, four major redevelopment projects represent over $30 million in private
investment. These include the Broadway Medical Center, Union Street Medical Center,
Bangor Public Library and the Bangor Mall area retail development.
15
Downtown Bangor is enjoying an influx of new activity that includes the $2.7 million
development of 34 market-rate elderly housing units, plans for renovation of a long vacant
building as the Maine School for the Arts, and the occupancy of a long vacant downtown
landmark building by a well-respected outdoor sports retailer. Overall, more than a million
square feet of commercial space is planned or under construction throughout the City.
CURRENT AND FUTURE IlVITIATIVES
Each year, the Council and staff attend a professionally facilitated retreat to identify priorities
for the coming year. The current year's initiatives are both long and short term in nature; and
are as follows:
♦ Develop an economic development strate�v: To a city of Bangor's size, location and
economic base, economic development is vital. Currently,there are a number of .
individuals and organizations pursuing various aspects of economic development. Amon�
these are the City's Economic Development Department, Bangor International Airport, the
Bangor Convention and Visitors Bureau and the Bangor Area Chamber of Commerce. The
City is attempting to pull these often disparate efforts into one cohesive whole; thereby
making them more effective. This is a longer term effort, which will require careful
coordination and planning, much of which has begun.
Additionally, Bangor is strategically located on the Atlantic rim and is thus well-positioned
to capitalize on growing trade opportunities,through both NAFTA and the development of
trade with the European Community. The airport, which sits astride a major great circle
route to Europe and offers many competitive advantages in terms of cost, domestic
transportation options and customs clearing, is poised to take advantage of the oppommities
that will inevitably flow from these developments.
♦ Im�rove communications both within citv government and as a means of informing
and involving citizens: The need to quickly disseminate information; and to eYpeditiously
move items through City processes makes it increasin�ly important to tie Council and staff
members together throuah an easily accessible communications system. While the
technology is available to accomplish this,particularly at the staff level, the introduction of
communication technologies to "tie" part-time Councilors with varying access into such a
network is somewhat complicated and costly, but remains a top short term priority.
A second, related initiative is to more fully involve citizens in City affairs throuah the
wider dissemination of information. However, the diffusion of information to differentially
involved groups of citizens with varying interests is a more complicated task than simpl��
linking City staff and Council members, and is expected to be a somewhat lonQer term
project. �
16
I
` ♦ Im.�roving certain infrastructures and services: Bangor offers many "quality of life"
.. assets, and it is crucial that we continue building upon these strengths. Infrastructure
investment, both to enhance the quality of life and to support economic growth, has been
� continuous, and includes the expansion of both the airport and sewage treatment plant, and
. school and other improvements. Such projects represent total public sector investment in
excess of$100 million in the past six years.
� The City is acutely attentive to the improvement of streets, sidewalks, public transportation
and solid waste disposal systems, all with an eye toward maintaining Bangor's livability
and its attractiveness to firms and individuals seeking to locate here. By their nature, these
�" are ongoing projects.
This attentiveness to infrastructure is evident. Bangor's schools are ranked among the top
� systems in the State, and Bangor offers the lowest cost of living of any New England
metropolitan area. Further, according to Macmillan Travel's 1997 edition of Places Rated
Almanac, Bangor ranked first overall among 17 metropolitan areas with populations under
100,000. Macmillan also found that Bangor compares very favorably with 350 other
metropolitan areas across North America,ranking first both for its low crime rate and its
recreational opporriznities.
♦ Waterfront develo�ment: Bangor's history is tied to the river, and there is a stron�
. consensus that its future is as well. After several years of negotiation, the City recently �
acquired 28 acres of prime river frontage from the Maine Central Railroad, clearing the way,�e;:
for both quality of life enhancements and significant development. Current plans are to
encourage the development of projects that lend themselves to this milieu and provide a .
pleasant environment for citizens and visitors alike.
♦ Broaden the revenue base: One of the great financial weaknesses of Maine municipalities
is their reliance on the property t� as their primary source of revenue. This is not merely
an issue of diversification, but also of providing the financial wherewithal to undertake
- longer term, economic development projects. Bangor's reliance on the property tax
prohibits it from exporting the financial burden of infrastructure improvements, even
though such improvements have reQional benefits. The City is currently organizing to
lobby the State legislature for additional taxing authority.
CONCLUSION
,Overall the City of Bangor's financial position is sound. Our tax collections aze very good and
generally improving, our control of e;cpenses is excellent and our procedures and processes
- regarding City assets work very well. Further,we are both liquid and prudently invested, ��-e
have adequate insurance and reserves to meet any reasonable unforeseen events, and we face
no impending demands upon our financial resources.
17
It is our sincere hope that this document meets the informational needs of its primary intended
audience, the people of Bangor and their elected City Council. Its intent, as mentioned at the
outset, is to give the City's financial statements more depth, aid in their interpretation, and help
� the reader identify the issues inherent in the City's financial operations. We hope that this has
• indeed been accomplished.
This document has also been prepared in accordance with the standards set by the Govemment
' Finance Officers Association with the intent of submitting it for first time consideration for
their Certificate ofAchievement for Excellence in Financial Reporting. The certificate, which
is awarded to those governments which"...achieve the highest standards in government
� accounting and financial reporting", constitutes recognition of a government's ability to
monitor and manage its resources; particulazly those of a financial nature. In addition, it is
intended to provide a means by which those with an interest can more fully assess the City's
financial well being. We are confident that this document meets the very exacting criteria
thereby implied.
,
ACKNOWLEDGMENTS
The preparation of this document would not have been possible without the invaluable
guidance, assistance and hard work of Debbie Cyr and David Little, Deputy Finance Director
� and Staff Accountant, respectively. They are primarily responsible for preparing the City's
general purpose financial statements, exhibits, schedules and notes.
� Additi.onal thanks is extended to Sally Burgess, of the City's Community and Economic
Development Department, for her research efforts; City Solicitor Erik Stumpfel, for his
clarifying abilities; and City Assessor Ben Birch, for his guidance through the arcane world of
assessing.
Finally, thanks is extended to the Bangor City Council and City Manager Ed Barrett for their
support in allowing us to "take the next step", to further develop and demonstrate what I feel
are our department's considerable capabilities.
Respect lly submitted,
Ronald I. Heller
Finance Director
18
CITY OF BANGOR - ORGANIZATION CHART
CITIZENS
OF
BANGOR
CITIZEN CITY CITIZEN
COMMISSIONS COUNCIL BOARD
ASSESSING CITY CITY CITY
DEPARTMENT SOLICITOR MANAGER CLERK
ANIMAL ELECTIONS
CONTROL
LICENSES
PARKS AND COMMUNITY CITY NURSING
EiASS PARK . RECR[ATION FINANCE DIMINISTRATION AND ECONOMIC FACILITY
DEVELOPMENT
PAfiKS qECREnTION AUDIT TR[ASUftY fIUMAN INFORMATION pLANNING COMMUNIIY qDMINISTPnTiON NURSING
CIVIC CENTEPi UDITORIUM MAWTENANCE RESOURCES SERVICES DEVELOPMENT
FLEET OUSEKEEPING
HARNESS S7ATE GOLF RisK NON MAINTENANCE PURCIIASING DEVE�LOPMENT MANAGEMENT DIETARY AND
RACING FAIR COU SE MANAGEMENT EPAATMEN7AL
MANAGEMENT MAINTENANCE
THE CENTflAL CODE
BUS SERVICES ENFORCEMENT
LAE30R
RELATIONS
�i ,
AIRPORT POLICE F(R[ HEALTH AND PUBLIC
WELFARE SERVICES
AVIATION MAINTENANCE D[7LCTIVE PATROL F��E ADMINIS7fiATION GENERAL NURSING OPERATIONS
SERVICES � FIGH7ING � RELIEF SEfiVICES ENGINEERING AND
MAINTENANCE
ADMINISTRATION ADMINIST(lATION S[RVICES �'�E DENTAL GRANT
PRE'JEN710N CLINIC PIIOG(tAM SEWER SEWER
CUfiEAU PLAN7 MAINTENANCE
IiAR00R
City of Bangor, Maine
Elected Officials and Principal Administrative Officers
June 30, 1997
City Councii
Patricia A. Blanchette, Mayor
� Michael W. Aube Joseph M. Baldacci
Nichi S. Farnham David J. Leen
Dennis D. Soucy Charles M. Sullivan
James M. Tyler Timothy C. Woodcock
Citv Staff
Edward A. Barrett, City Manager
Benjamin F. Birch, City Assessor
Gail E. Campbell, City Clerk
Ronald I. Heller, Finance Director
Erik M. Stumpfel, City Solicitor •
Bangor School Committee
Martha G. Newman, Chauman
Phyllis M. Shubert, Vice Chairman
Susan A. Carlisle Suzanne M. Cox
Arthur G. Eaton, Jr. Scott E Lary
Rachel G. Leen
School Committee Staff
James Dou�hty, Superintendent of Schools
Dr. Robert Ervin, Assistant Superintendent of Schools
Alan F. Kochis, Director of Business Services
20
City of Bangor, Maine
Awards Received and Recognition Bestowed
Maine Town and City Managers' Association, 1997
Linc Stackpole Manager of the Year Award to
Edward A. Barrett, City Manager
John J. Gunther Blue Ribbon Practices in Community Development, 1997
Award in Housing
and
Award for Economic Opportunity
Maine Department of Environmental Protection, 1997
Recognition as a National Leader in the Abatement of Combined Sewer Overflows
National League of Cities Award, 1997
Shaw's Food and Drug Project
Bangor Convention and Visitors Bureau, 1997
Eagle Tourism Award to Dale Theriault and the Bangor Parks and Recreation Department
Fleet Bank All-Star A�vard, 1997
To Bangor Parks and Recreation Department
For Community Service for the Bangor Playground
Consulting Engineers of 1Vlaine, 1996
Honor Award for EngineerinQ Excellence for the Shaw's Food and Drug Project
Maine Association of Planners, 1996
Project of the Year Award to Community and Economic Development Staff for the BanQor
Front Street/Waterfront Development
American Consulting Engineers Council of New England, 1994
Excellence Award for Professional Design Excellence for the Upgrade and Expansion of the
Bangor Water Pollution Control Facility by CH2M Hill
New England `Vater Pollution Control Association, 1993
Alfred E. Peloquin Award to John vlurphy, Staff En�ineer for Significant Contributions to the
Wastewater Treatment Field
21
Financial Section
n
�,RUNYON RSM
J �KERSTEEN
�OUELLETTE international
� - - -
Certif led Independent Auditor's Report '
Public
�Accountants Ciry Council
j � City of Bangor,Maine:
' Alexander M.Runyon
j'� �-;G1enn s.xersceen We have audited the accompa��ng general purpose financiai statements of the City of Bangor,Maine,
�� Carl N.Ouellette as of and for the year ended J�30; 1997,as listed in the table of contents. These general purpose
John J.su�ti�an financial statements aze tlie res�onsibility of the City of Bangor,Maine's management. Our
I xathleen s.Tyson responsibility is to express an��on on these general purpose financial statements based on our audit.
� ��Alice M.Harris
' We conducted our audit in acc�dance with$enerally accepted auditing standards and the standards
I� applicab'le to financial audits c�n`tained in Government Auditing Standards issued by the Comptroller
General of the United States. '�ose standards require that we plan and perform the audit to obtain
� reasonabie assurance about wFr�`ther the general purpose fmancial statements are fres of material
misstatement. An audit includ`���xamining,on a test basis,evidence supporting the amounts and
�i disclosures in the general purpc,�se financial statements. An audit also includes assessing the accounting
ur
. . well as evaluatin the overall general
E pruiciples used and significant��:s�imates made by management,as g
purpose financial statement pre�ntation. We believe that our audit provides a reasonable basis for our
I' � opinion. _
' In our.opinion the.general purpc�se financial statements referred to above present fairly,in all material
respects,the financial position�f the City of Bangor,Maine as of June 30, 1997,and the results of its
� o.perations and the cash flows o�its proprietary and nonexpendable trust fund types for the year then
ended in.conformity with gener�'�y accepted accounting principles.
i� � In accordance with GovernmenlAuditing Standar.ds,we have also issued a report dated November 21,
1997 on our consideration of tt�City of Bangor,Maine's internal control over financial reporting and
r--
our tests of its compliance with.certain provisions of laws,regulations,contracts and grants.
�-' Our audit was made for the p�se of forming an opuuon on the generai purpose financial statements
taken as a whole. The combinix►g and individual fund and account group statements presented on
`�I Schedules A-1 through G-2,are#'or purposes of additional analysis and are not a required part of the
�i general purpose fmancial state�ents of the City of Bangor,Maine. Such information has been subjected
� to the audifing procedures applied in the audit of the general purpose financial statements,and in our
i r j opinion,is faiily stated in all material respects in relarion to the general purpose financial statements
r� taken as a whole.
, � The information in the starisrical section has not been subjected to the auditing procedures applied in the
t; audit of the general purpose financial statements and, accordingly,we express no opinion on such data.
o ��e
� �� �5.�..�.
��
� November 21, 1997
I ��
, South Portland,Maine
�
20 Long Creek Drive
South Portland,ME 04106
''207-773-2986
r-,
FAX 207-7723361
http://wwwrko-cpas.com
An Independently Owned Member of
The McGladrey Network
I Branch Office.•Camden,ME Worldwide Services through RSM International
;
�
City of Bangor, Maine
Combined Balance Sheet
All Fund Types and Account Groups `-'
June 30, 1997
(with Comparative Totals for June 30, 1996) �
�
Governmental Fund Types - ,
;
Special Capital `� �
General Revenue Projects - ;;
Assets and other debits ��
�.
Assets:
Cash on hand $2,962 $250 - � �
Equity in pooled cash and
investments 388,414 (289,033) 487,241 "
Investments at cost 6,172,395 45,650 - j
f Receivables: �J �
Taxes, including interest, penalties and liens .,
(net of allowance for uncollectible taxes of , ,�
$3,581 in 1997 and $3,581 in 1996) � 2,490,610 - - ;�
iAccounts (net, where applicable, of allowance �'
for estimated uncollectible�accounts,of � �;
$640,402 in 1997 and $580,105 in 1996) � 873,231 - - � '`
a;
� Loans (net of'allowance for uncollectible � ;�.
° `;.. � , � - � , , _,. -� :.; _ �: J �
: - 1 �
�` , P ;
�' '�� Deferred s eciai assessments � - - 30;130
accounts of 130,131 in 1997 and 1996 3,895,843 �
� Due fr'om water district - - ' . -` _ ; � -
jII Due from other funds ` ` � 2,044;860 - . - '�
�� Due from other governments 1,335,488 338,696 38,403 �,
Inventory, at cost 291,109 - - ��
�) Prepaid expenses 44,113 17,574 - ��l �
u �y�
q Property, plant and equipment (net of accumulated
depreciation) _ - - - y;
Investment held by bond trustee - - - '� k
Deposits - - - " �
! Other assets 9,895 - 1,984,455 �i
�� Other debits: � �
� Amounts available for self insurance - - - �
'I Amount to be provided for retirement of general , �
� long-term debt - - - 'i �
°;;
Total assets and other debits $13,653,077 $4,008,980 $2,540,229 ��
, �
� �' �
,
,
; . �l �
II' The notes to the fmancial statements are an integxal part of this statement. �j ��
+ Continued on facing page !,� �
1 �'
� � �
i � 26 �
! . ��_ �',;_� � :, :: w.- �-_:���� - < : :a��,�� :- °�: �� �=.�;.. .. ..�:�i�..= . : . f :r �sart �.::�_ - ��►. : .�
Exhibit 1
Proprietary Fiduciary
- Fund Type Fund Type Account Groups
General General Totals
Trust and Fixed Long-Term (Memorandum
Enterprise Agency Assets Debt Only)
$4,373 - - , - $7,585
2,261,047 71,922 - - 2,919,591
15,301,016 1,365,908 - - 22,884,969
- - - - 2,490,610
3,393,992 � - - - 4,267,223
- 56,764 - - 3,952,6Q7
115,031 - - - 145,161
155,945 - - - 155,945
- - - - 2,044,860
- - - - 1,712,587
144,467 - - - 435,576
54,766 - - - 116,453
183,035,836 - 56,235,669 - 239,271,505
610,226 - - - 610,226
15,000 - - - 15,000
2,626,165 - - - 4,620,515
- - - 1,799,733 1,799,733
- - - 22,610,793 22,�610,793
$207,717,864 $1,494,594 $56,235 669 $24 410,526 $310 06Q,939
27
City of Bangor, Maine
Combined Balance Sheet
All Fund Types and Account Groups
June 30, 1997
(with Comparative Totals for June 30, 1996)
Governmental Fund Types
Special Capital
General Revenue Projects
Liabilities, e�� and other credits
Liabilities:
Accounts payable $986,280 $45,545 $626,572
Loans payable - - -
Workers' compensation 607,890 - -
Accrued leave and sick - - -
Accrued payroll &withholdings 2,022,177 - -
Accrued interest - - -
Accrued expenses - - -
Tax collected in advance 23,263 - -
Amounts held for others - 659 16,850
Deferred revenue 2,119,232 3,895,843 -
Due to rehabilitation recipients - 83,379 -
Due to other funds - - -
Developer payable - - -
General obligation debt - - -
Limited revenue obligation bonds - - -
Deferred amount on refunding - - -
Arbitrage payable - - -
Obligations under capital lease - - -
Defened sewer assessments - - -
Other liabilities - - -
Long-term obligation for self insurance - - -
Totalliabilities 5,758,842 4,025,426 643,422
Liabilities, fund equity and other credits
Investment in general fixed assets - - -
Contributed capital - - -
Retained earnings:
Reserved - - -
Reserved for debt service - - -
Unreserved - - -
Fund Balances:
Reserve for:
Encumbrances 207,440 70,935 636,789
Loans - - -
Endowments - - -
Unreserved:
Designated 4,028,623 (87,381) 1,128,253
Undesignated 3,658,172 - 131,765
, Total equity and other credits 7,894,235 (16,446) 1,896,807
Total liabilities, equity and other credits $13,653,077 $4,008,980 $2,540,229
The notes to the financial statements are an integral part of this statement.
Continued on facing page
28
�xhibit 1 (con't)
Proprietary Fiduciary
, Fund Type Fund Type Account Groups
General General Totals
� Trust and Fixed Long-Term (Memorandum
.,,
Enterprise Agency Assets Debt Only)
$1,323,891 $2,992 - - $2,985,280
259,848 - - - 259,848
589,119 - - - 1,197,009
248,389 - - 2,534,548 2,782,937
241,359 - - - 2,263,536
577,699 - - - 577,699
28,613 - - - 28,613
- - - - 23,263
� - 394,064 - - 411,573
75,502 - - - 6,090,577
- - - - 83,379
2,044,860 - - - 2,044,860
58,883 - - - 58,883
39,342,533 - - 19,688,747 59,031,280
5,365,000 - - - 5,365,000
(756,068) - - - (756,068)
107,019 - - - 107,019
31,600 - - 387,498 419,098
308,092 - - - 308,092
19,999 - - - 19,999
- - - 1,799,733 1,799,733
49,866,338 397,056 - 24,410,526 85,101,610
- - 56,235,669 - 56,235,669
114,409,174 - - - 114,409,174
2,703,528 - - - 2,703,528
539,308 - - - 539,308
� 40,199,516 - - - 40,199,516
- - - - 915,164
- 126,062 - - 126,062
- 529,958 - - 529,958
- 441,518 - - 5,511,013
- - - - 3,789,937
157,851,526 1,097,538 56,235,669 - 224,959,329
$207,717,864 $1,494,594 $56,235 669 $24 410 526 $310 060 939
29
Exhibit 2
City of Bangor,Maine
Combined Statement of Revenues,Expenditures,and Changes in Fund Balances
All Governmental Fund Types and Expendable Trust Funds
For the Fiscal Year Ended June 30, 1997
Fiduciary
Governmental Fund Types Fund Type Totals
�� Special Capital Expendable (Memorandum
General Revenue Projects Trust Only)
����
Ta�ces $33,711,954 - - - $33,711,954
Intergovernmental 17,458,382 5,082,144 554,304 - 23,094,830
Licenses and permits 372,003 - - - 372,003
Charges for services 7,578,118 268,622 - - 7,846,740
Fines, forfeits,and penalties 42,350 - - - 42,350
Revenue from use of money and
property 1,131,212 - 154,485 7,279 1,292,976
Program income - 362,056 - - 362,056
Other - 3,253 - - 3,253
Contributions - - - 42,059 42,059
Total revenues 60,294,019 5,716,075 708,789 49,338 66,768,221
�tpenditures�
Current:
General government 3,438,502 - - - 3,438,502
Public safety 9,702,413 - - - 9,702,413
Health, welfare,and recreation 2,693,771 - - - 2,693,771
Public buildings and services 6,960,111 - - - 6,960,111
Other agencies 2,196,959 - - - 2,196,959
Eciucation 32,138,403 - - - 32,138,403
Other appropriations 75,238 - - - 75,238
Community development block grants - 2,089,304 - - 2,089,304
Economic incentive revo(ving loan - 24,600 - - 24,600
Grant fund - 3,666,599 - - 3,666,599
Payments to beneficiaries - - - 12,410 12,410
Capital outlay:
Capital additions - - 5,071,683 - 5,071,683
Landfill closure and postclosure care - - " 213,182 - 213,182
Debt service(excluding education) 1,364,213 - - - 1,364,213
Total expenditures 58,569,610 5,780,503 5,284,865 12,410 69,647,388
Excess(deficiency)of revenues
over expenditures 1,724,409 (64,428) (4,576,076) 36,928 (2,879,167)
Qther f�anci�g�ou�c�.slus�)�
Operating transfers in(out) (2,282,123) - 1,795,120 - (487,003)
General obligation debt 112,610 - 2,500,000 - 2,612,610
Main St. Development District (112,610) - - - (112,610)
Sale of assets 356,773 - - - 356,773
Total other financing sources(uses) (1,925,350) - 4,295,120 - 2,369,770
Excess(deficiency)of revenues and
other financing sources over
expenditures and other uses (200,941) (64,428) (280,956) 36,928 (509,397)
Cumulative effect of accounting change - - - - -
Fund balances,July 1, as restated 8,095,176 (52,405) 2,177,563 79,997 10,300,331
Fund balances,June 30 $7,894,235 ($116,833) $1,896.607 $116,925 59,790,934
The notes to the financial statements are an integral part of this statement
30
' Exhibit 3
City of Bangor, Maine
Statement of Revenues, Expenditures, and Changes in
� Unreserved/Undesignated Fund Balance-Budget and Actual-Budgetary Basis
General Fund
For the Fiscal Year Ended June 30, 1997 �
Variance -
Favorable
Budget Actual (Unfavorable)
' �evenues•
Taxes $33,427,409 $33,711,954 $284,545
Intergovernmental 14,149,978 14,322,698 172,720
• Licenses and permits 326,850 372,003 45,153
Charges for services 6,908,982 7,138,210 229,228
Fines, forfeits and penalties 22,800 42,350 19,550
Revenue from use money and property 809,630 924,742 115,112
Totalrevenues 55,645,649 56,511,957 866,308
Expenditures•
Cunent:
General government 3,506,044 3,378,392 127,652
Public safery 9,287,688 9,445,384 (157,696)
Health, welfare, and recreation 2,477,990 2,692,856 (214,866)
Public buildings and services 7,016,600 6,829,469 187,131
Otheragencies 2,126,500 2,031,959 94,541
Education 28,948,653 28,510,806 437,847
Other appropriations 150,559 75,238 7�,321
Debt service 1,527,492 1,364,213 163,279
Total expenditures 55,041,526 54,328,317 713,209
Excess ofrevenues overexpenditures 604,123 2,183,640 1,579,517
Other financin��ources u es :
Appropriation from designated fund balance 1,554,517 1,249,123 (30�,394)
General obligation debt - 112,610 112,610
Main St. Development District - (112,610) (112,610)
Sale of assets 4,125 14,838 10,713
Operating transfers in 66,222 66,222 -
Operating transfers out (2,228,987) (2,228,987) -
Total other financing uses (604,123) (898,804) (294,681)
Excess of revenues and other fmancing sources
over expenditures and other uses - 1,284,836 $1,284,836
Unreserved/Undesignated balance, July 1 4,371,274
Appropriation to designated fund balances (1,405,492)
Balances canied to succeeding year (592,446)
Unreserved/Undesignated balance, June 30 $3,658,172
The notes to the financial statements are an integral part of this statement
31
Exhi it 4
City of Bangor, Maine
Combined Statement of Revenues, Expenses, and Changes in
Retained Earnings/Fund Balances
All Proprietary Fund Types and Similar Trust Funds
, For the Fiscal Year Ended June 30, 1997
Proprietary Fiduciary
Fund Type Fund Type Total
Nonexpendable (Memorandum
Enterprise Trust Only)
Operating revenues:
Charges for services $21,188,810 - $21,188,810
Interest - 85,533 85,533
Other - 3,201 3,201
Total operating revenues 21,188,810 �8,734 21,277,544
Onera�ing exnenses:
Operating expenses other than depreciation and
amortization 14,843,909 69,596 14,913,505
Depreciation and amortization:
On assets acquired with own fi2nds 3,276,925 - � 3,276,925
On assets acquired with contributions 4,422,674 - 4,422,674
Total operating expenses 22,543,508 69,596 22,613,104
Operating income (loss) (1,354,698) 19,138 (1,335,560)
Non-o�eratin�revenues (expense :
Interest income 991,252 - 991,252
Interest expense (2,270,083) - (2,270,083)
Miscellaneous expense (36,495) - (36,495)
Total non-operating revenues (expenses) (1,315,326) - (1,315,326)
Net income (loss) before operating transfer (2,670,024) 19,138 (2,6�0,886)
Operating transfer from General Fund 832,171 - 832,171
Net income (loss) (1,837,853) 19,138 (1,818,715)
Add depreciation and amortization on fixed assets
acquired by grants and contributions 4,422,674 - 4,422,674
Increase in retained earnings/fund balances 2,584,821 19,138 2,603,959
Retained earnings/fund balances, July 1 40,857,531 961,475 41,819,006
Retained earnings/fund balances, June 30 $43,442,352 $980,613 $44.422,965
The notes to the financial statements are an integral part of this statement.
32
Exhibit�
City of Bangor,Maine
Combined Statement of Cash Flows
� All Proprietary Fund Types and Similar Trust Funds
For the Fiscal Year Ended June 30, 1997
Proprietary Fiduciary
- Fund Type Fund Type Total
Nonexpendable (Memorandum
Enterprise Trust Only)
S�,sl�flows from oo�erating activities:
. Cash received from customers $21,641,910 $3,201 $21,645,111
Cash received on invesunents - 85,533 85,533
Cash payments to suppliers for goods and services ($6,075,602) (5,481) (6,081,083)
Cash payments to employees for services ($8,362,078) - (8,362,078)
Cash paid to beneficiaries - (64,115) (64,115)
Net cash provided by(used in)operating activities 7,204,230 19,138 7,223,368
�s�h fl wc frQm no�anital financjpg activities:
Interfund loans(repayments) 319,123 - 319,123
' Operating subsidies received 832,171 - 832,171
Studentloans made - (5,000) (5,000)
Student loan payments received - 11,162 11,162
Net cash provided by(use in)non-capital financing activities 1,151,294 6,162 1,157,456
��Sh�19�fLom�Cagital and relatesLt"inancine�ti�ki�s;
Proceeds from general obligation debt 2,186,957 - 2,186,957
Acquisition and construction of capital assets (7,220,259) - (7,220,259)
Principal paid on bonds (2,635,473) - (2,635,473)
Interest paid on bonds (2,162,084) - (2,162,084)
Proceeds from sale of equipment 2,501 - 2,501
Deferred rehab loan proceeds 7,788 - 7,788
Loan proceeds 297,135 - 297,135
Grant monies received for capital assets 1,882,589 - 1,88?,589
Contributions received for capital assets 5,000 - 5,000
Investment bond&ban proceeds 490,838 - 490.838
Net cash provided by(used in)capital and related financing activities (7,145,008) - (7,145.008)
Cash fl91YS�C4m inveSklllg�7SS1Y1xL�S�
Net sales(purchases)of investments (436,359) (25,300) (�61,659' ,
i
Interest on investments 996,948 - 996.948
Net cash provided by(used in) investing activities 560,589 (25,300) 535.289
Netincrease(decrease)in cash 1,771,105 - 1,771,105
Cash,July 1 494,315 - 494.315
Cash,June 30 $2,265,420 $2,265.420
R�onciliati�oLopQcatinginc4m�t4�.eLcaslLgr_orislesl by(used inl o�etatin�activities;
Operating income(loss) ($1,354,698) $19,138 (�1,33�.560)
Adjustments to reconcile operating income to net cash provided by
(used in)operating activities:
Depreciation and amortization 7,699,599 - 7,699.599
Provision for uncollectible accounts 63,922 - 63.922
Changes in assets and liabilities:
(Increase)decrease in deposits 4,602 - 4,602
(Increase)decrease in accounts receivable 364,989 - 364,989
_ (Increase)decrease in due from state government 117,000 - 117,000
(Increase)decrease in due from water district (78,593) - (78,593)
(Increase)decrease in inventory (18,786) - (18,786)
(Increase)decrease in prepaid expenses (21,703) - (21,703)
Increase(decrease)in accounu payable 116,810 - 116,810
Increase(decrease)in accrued expenses 215,961 - 215,961
Increase(decrease)in deferred revenue 47,594 - 47,594
Increase(decrease)in other liabilities 47,533 - 47,533
Total adjustments 8,558,928 - 8,558,928
Net cash provided by(used in)operating activities $7.204,230 $19,138 $7.223,368
The notes to the financial statemenu ue an integral part of this statemenc.
33
City of Bangor, Maine
Notes to Financial Statements
- June 30, 1997
I. Summary of Significant Accounting Policies
The financial statements of the City of Bangor, Maine have been prepared in conformity with generally
accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting
• Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and
reporting principles. The more significant of the government's accounting policies are described below.
1. Reporting Entity
The City of Bangor, Maine is governed by a nine member elected Council and an appointed Manager. In
evaluating how to define the reporting entity for financial reporting purposes, management has to consider all
potential component units. The decision to as to which potential component units were to be included was
made by applying the criteria set forth in GAAP. The criteria defines the reporting entity as the
primary government and those component units for which the primary government is financially accountable.
Financial accountability is defined as appointment of a voting majority of the component unit's board and
. either (a) the ability of the primary government to impose its will, or (b) the possibility that the component
unit will provide a financial benefit to, or impose a financial burden on, the primary government.
The following entities were examined, using the above criteria, to determine their status as a component unit
of the City of Bangor:
Bangor Public Library - Established in 1883, it is a non-profit corporation that provides library
services to the citizens of Bangor and the surrounding communities.
Bangor Water District - Established in 1957, as a quasi-municipal entity it provides water service to
the inhabitants of Bangor and certain surrounding communities.
Bangor Housing Authority - Established to provide housing assistance to low income, elderly and
disabled individuals and families.
Bangor Target - A private non-profit development corporation that promotes economic
development projects in the greater Bangor region.
Bangor Airport Civic - A non-profit corporation, known commonly as BanAir, that promotes and
Development Corporation develops the services and reaI estate of the Bangor International Airport.
Based upon all pertinent facts derived from the analysis of the above criteria, it was determined that none of
the above entities should be included as part of these financial statements.
2. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized and operated on the basis of funds and account groups. A fund
is a separate accounting entity with a self-balancing set of accounts. Fund accounting segregates funds
according to their intended purpose and is used to aid management in demonstrating compliance with
finance-related legal and contractual provisions. The minimum number of funds are maintained consistent
with legal and managerial requirements.
34
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
I. Summary of Significant Accounting Policies (Continued)
Account groups are a reporting device to account for certain assets and liabilities of the governmental funds
not recorded directly in those funds.
Funds are classified into three categor;es: governmental, proprietary and fiduciary. Each category, in turn,
is divided into separate "fund types".
- Governmental Funds Types
Governmental Funds are used to account for most governmental functions of the C'ity. Governmental fund
types use the flow of current financial resources measurement focus and the modified accrual basis of
accounting. Under the modified accrual basis of accounting revenues are recognized when susceptible to
accrual (i.e. when they are "measurable and available"). "Measurable" means the amount of the transaction
can be determined and "available" means the amounts are collectible within the current period
or soon enough thereafter to pay liabilities of the current period. Expenditures are recorded when the
related fund liability is incurred, except for principal and interest on general long-term debt, which is
recognized when due, and certain compensated absences and claims and judgments which are recognized
when the obligations are expected to be liquidated with expendable available financial resources.
Governmental funds include the following types:
�
General Fund - The General Fund is the general operating fund of the City. It is used to
account for all financial resources except those required to be accountzd for in
another fund.
Special Revenue Funds - Special Revenue Funds are used for revenue sources (not including expendable
trusts or major capital projects) that are legally restricted to expenditure for
specific purposes.
Capital Projects Fund - The Capital Projects Fund is used to account for the acquisition of fixed assets
or construction of major capital projects not financed by proprietary or
nonexpendable trust funds.
Proprietary Fund Types
Proprietary funds are accounted for on the flow of economic resources measurement focus and use the
accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are
recorded at the time liabilities are incurred.
The City has adopted GASB Statement No. 20 "Accounting and Financial Reporting for Proprietary Funds
and Other Governmental Entities That Use Proprietary Fund Accounting", whereby the City has elected to
apply all applicable GASB Pronouncements as well as Financial Accounting Standards Board (FASB)
pronouncements issued before November 30, 1989, unless the FASB pronouncements conflict with or
contradict GASB pronouncements.
Proprietary funds include the following type:
Enterprise Funds - Enterprise Funds are used to account for those operaCions that are financed and
operated in a manner similar to a private business or where the City Council has
decided that the determination of revenues earned, costs incurred and/or net
income is necessary for management accountability.
35
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
I. Summary of Significant Accounting Policies (Continued)
Fiduciary Fund Types
Fiduciary funds account for assets held by the City in a trustee capacity or as agent on behalf of others.
Trust funds account for assets held under the terms of a formal trust agreement.
Fiduciary funds include the following types:
Nonexpendable Trust - Nonexpendable trust funds are accounted for in essentially the same manner as
Funds the proprietary funds, using the same measurement focus and basis of
accounting. Nonexpendable trust funds account for assets of which the principal
may not be spent.
Expendable Trust Funds - Expendable trust funds are accounted for in essentially the same manner as the
governmental fund types, using the same measurement focus and basis of
accounting. Expendable trust funds account for assets where both the principal
and interest may be spent.
Agency Fund - The agency fund is custodial in nature and does not present results of operations
or have a measurement focus. The agency fund is accounted for using the
modified accrual basis of accounting. This fund is used to account for asseu
that the City holds for others in an agency capacity.
Account Groups
Account groups are used to establish accounting control and accountability for certain long-term assets and
liabilities of governmental fund types and nonexpendable trust funds. The account groups do not present
results of operations or have a measurement focus.
Account groups include the following types:
General Fixed Assets - The general fixed assets account group is used to account for fixed asseis not
Account Group accounted for in proprietary funds.
General Long-Term - The general long-term debt account group is used to account for general
DebtAccount Group long-term debt and certain other liabilities'that are not specific liabilities of
propriety funds.
3. Assets, Liabilities and Equity
Assets
Cash and Investments - The City's cash and equity in pooled cash and investments are considered to be
cash on hand, demand deposits, overnight insured instruments and other liquid
investments. State statute and policy defines the types of investments that may
be made. Among these are U.S. Treasury and Agency notes and bonds.
Expressly prohibited under City policy is the investment in so-called
"derivative" instruments.
Interfund Receivables - Transactions between funds that represent lending/borrowing arrangemenu �
and Payables outstanding at the end of the fiscal year are reported as "due to/from other
36
City of Bangor, Maine
� Notes to Financiai Statements
June 30, 1997
I. Summary of Significant Accounting Policies (Continued)
� funds". These are offset by a designated fiznd balance account in the City's
general fund to indicate they are not available for appropriation and are not
. expendable available financial resources.
Inventories and Prepaid - The City accounts for inventory under the consumption method. Inventories in
Items the general fund and proprietary funds consist of expendable supplies held for
� consumption and are carned at cost. The costs of inventory items are
recognized as expenditures when consumed. The consumption method does �
not require a reserve for inventory and the City has chosen not to have such a
reserve. Certain payments to vendors reflect costs applicable to future
accounting periods and are recorded as prepaid items.
Fixed Assets - Fixed assets used in govemmental fund.types of the City are recorded in the
general fixed asset account group at cost or estimated historical cost if
purchased or constructed. Assets in the general fixed asset account group are
not depreciated. Interest incurred during construction is aot capitalized on
general fixed assets.
Public domain general fixed assets (e.g., roads, bridges, sidewalks and other
assets that are immovable and of value only to the City) are not capitalized.
The cost of normal maintenance and repairs that do not add to the value of the
asset or materially extend the asset's life are not included in the general fixed
assets account group or capitalized in the proprietary funds.
Property, plant and equipment in the proprietary funds of the City are recorded
at cost. Property, plant and equipment donated to these proprietary fund type
operations are recorded at their estimated fair value at the date of donation.
Major outlays for capital assets and improvements are capitalized in proprietary
funds as projects are constructed. Interest incurred during the construction
phase of proprietary fund fixed assets is reflected in the capitalized value of the
asset constructed, net of interest earned on the invested proceeds over the same
period.
Property, plant and equipment are depreciated in the proprietary funds of the
City using the straight line method over the following estimated useful lives:
Buildings 25 -40 years
Equipment 5 -20 years
Pipelines and mains 100 years
Aircraft operational assets
Runways 40 years
Buildings 20 years
Machinery and equipment 5 - 10 years
Investment Held by - This investment consists of City bond proceeds and matching federal and state
Bond Trustee funds not yet requested under the State Revoiving Loan Fund as administered
jointly by the State Department of Environmental Protection and Maine
Municipal Bond Bank.
Liabilities
Compensated Absences - It is the City's policy to permit employees to accumulate earned but unused
vacation, compensation and sick pay benefits. With minor exceptions
37
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
I. Suuunary of Significant Accounting Policies (Continued)
employees are entitled to full payment of unused vacation and compensation pay
upon termination. Sick pay is available only if retirement occurs simultaneously
with termination. Vacation, compensation and sick(if applicable) pay is
accrued when incuned in proprietary funds and reported as a fund liabiliry.
Resources for vacation, compensation and sick(if applicable) pay are provided
for in the subsequent year in governmental fund types. Amounts not expected
to be liquidated with expendable available financial resources are reported in the
general long-term debt account group. No expenditure is reported for these
amounts.
Long-Term Obligations - The City reports long-term debt of governmental funds at face value in the
general long-term debt account group. Certain other governmental fund
obligations not expected to be financed with current available financial resources
are also reported in the general long-term debt account group. Long-term debt
and other obligations fmanced by proprietary funds are reported as liabilities in
the appropriate funds.
For governmental fund types, bond premiums and discounts as well as issuance
costs are recognized during the current period. Issuance costs, even if withheld
from the actual net proceeds received, are reported as expenditures. For
proprietary fund types, bond premiums and discounts as well as issuance costs
may be deferred and amortized over the life of the bonds. Issuance costs are
reported as deferred charges.
Fund Equity
Contributed Capital - The proprietary fund's contributed capital represents equiry acquired through
capital grants and contributions from developers, customers, other parties or
other funds.
Reserves - Reservations of fund balance represent amounts that are not appropriable or are
legally segregated for a specific purpose.
Designations - Designations of fund balance represent tentative management plans that are
subject to change.
Memorandum Only - Total Columns
Total columns on the general purpose financial statements are captioned as "memorandum only" because
they do not represent consolidated �nancial information and are presented only to facilitate financial
analysis. The columns do not present information that reflects financial position, results of operations or
cash flows in accordance with GAAP. Interfund eliminations have not been made in the aggregation of this
data.
Comparative Data/Reclassification
Comparative total data for the prior year have been presented in selected sections of the accompanying
financial statements in order to provide an understanding of the changes in the City's financial position and
operations. Also, certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year's presentation.
38
_.; City of Bangor, Maine
� Notes to Financial Statements
June 30, 1997
II. Stewardship, Compliance and Accountability
1. Budgetary Information
Budgets are adopted on a basis consistent with generally accepted accounting principles with certain
exceptions. Budgets for the General Fund and Enterprise funds are formally adopted each year through
_ the passage of appropriation resolves. Other Special Revenue Funds and the Capital Projects Funds
have adopted project-length budgets. Unencumbered appropriations lapse at�scal year end.
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
` expenditure of resources are recorded to reserve that portion of the applicable appropriation, is utilized
in governmental funds.
Encumbrance outstanding at year end are reported as reservations of fund balances and do not
- constitute expenditures or liabilities because goods or services have not been received in the current
year. However, for budgetary purposes, encumbrances are treated as expenditures.
• 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 30. Should the Council fail to adopt an operating
budget on or before June 30, by charter, the budget proposed by the City Manager becomes effective.
The appropriated budget is prepared by fund, function and department. 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 supplemental budgetary appropriations throughout the year, including •
appropriating the transfer of approximately $1,090,000 from designated fund balances m the general
fund for operating transfers to other funds and capital asset acquisition. Other supplemental budgetary
appropriations were not considered material.
2. Budget/GAAP Reconciliation
General Fund revenues and expenditures reported in the Statement of Revenues, Expenditures, and
Changes in Unreserved/Undesignated Fund Balance - Budget and Actual - Budgetary Basis (E�chibit 3)
are presented on the basis budgeted by the City. The City follows certain accounting principles for
budgetary reporting purposes that differ from generally accepted accounting principles.
Such differences and their effects on the General Fund's reported operations are summarized in the
following reconciliation:
Other Financing
Revenues Expenditures Sources (Uses)
Statement of Revenues, Expenditures,
and Changes in Unreserved/Undesignated
Fund Balance - Budget and Actual -Budgetary
Basis (E�chibit 3) $56,511,957 $54,328,317 ($898,804)
State of Maine "on-behalf" payments $3,135,684 $3,135,684 -
Activity in designated fund balance 646,378 252,061 (861,546)
1996 encumbrances - (207,440) -
1995 encumbrances paid - 181,155 -
1995 balances carried - 879,833 (165,000)
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balance-All Governmental
Fund Types-General Fund (E�ibit 2) $60,294,019 $58,569,610 ($1,925,350)
39
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
._, II. Stewardship, Compliance and Accountability(Continued)
The following two schedules summarize the enterprise funds' revenue and expenditure budgets. The differences between budgetary and
GAAP reporting purposes are as follows:
Favorable
Actual (Unfavorable)
_ Budget (Budget Basis) Variance
Revenues: .
. Sewer $5,929,896 $6,437,735 $507,839
Airport 9,182,387 9,928,802 746,415
Park Woods 312,476 283,062 (29,414)
City Nursing Faciliry 2,873,736 2,754,947 (118,789)
Parking 998,067 937,330 (60,737)
Bass Park 1,419,375 1,436,173 16,798
Municipal Golf Course 613,305 599,142 (14,163)
-• Economic Development 86,713 83,387 (3,326)
Total revenues-budget basis $21,415,955 22,460,578 $1,044,623
The financial statement classifications of nonoperating revenues required
by GAAP are treated as operating revenue for budgetary purposes. (1,771,931)
Revenues received for resuicted purposes that aze excluded from operating
revenue for budgetary purposes. 500,163
Totai operating revenues-Exhibit 4 $21,188,810
Expenses:
Sewer $7,591,032 $7,054,204 $536,828
Airport 11,087,380 10,483,113 604,267
Park Woods 312,474 264,083 48,391
City Nursing Facility 2,946,856 3,014,949 (68,093)
Parking 1,298,178 1,257,999 40,179
Bass Park 1,510,843 1,679,956 (169,113)
Municipal Golf Course 667,504 597,623 69,881
Economic Development 66,463 40,729 25,734
Total expenses-budget basis $25,480,730 24,392,6�6 $1,088,074
Capital outlay that has been included in an enterprise fund's operating
budget is reported as an expense for budgetary purposes. (1,257,928)
The principle amortization of general and limited obligation bonds, notes
payable and capital leases are recognized as expenses for budgetary purposes. (2,635,473)
Current year encumbrances are recognized as expenses for budgetary purposes. (143,616)
Prior year encumbrances are recognized as expenses in the year expended
as required by GAAP. 35,278
The financial statement classifications of nonoperating expenses required by
GAAP are treated as operating expenses for budgetary purposes. 2,152,591
Total operating expenses-Exhibit 4 $22,543,508
40
' City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
II. Stewardship, Compliance and Accountability (Continued)
� 3. Excess of Expenditures Over Appropriations
The following funds had departmental over-expenditures for the year ended June 30, 1997:
� General Fund - The following departments were over-expended by the indicated dollar
amounts; Police ($188,027), Health and Welfare ($165,481), Parks and
Recreation($49,385) and Main St. Develop District ($112,610). These
T over-expenditures were funded by receipt of revenues in excess of
appropriation and under-expenditures within other general fund departments.
" City Nursing Facility - The facility was overspent on a departmental basis by $68,093. This deficit
was not funded and resulted in an increase to the deficit fund balance.
- Bass Park - The complex was overspent on a departmental basis by $169,113. This
deficit was not funded and resulted in an increase to the deficit fund balance.
4. Deficit Fund Equity
_ The following funds had a deficit fund balance as of June 30, 1997:
Community Development Block - The deficit will be funded in the subsequent year wath increased collection of
Grant- Special Revenue Fund program income.
Park Woods -Enterprise Fund - The deficit has decreased over the prior year due to a more effective
management of the housing development and the addition of a general fund
operatmg subsidy.
Ciry Nursing Facility -Enterprise - This facility rypically operates at a deficit, largely due to its management
Fund , structure and the resulting inability to anticipate and successfully adjust to an
ever-changing industry. The City Council has approved a plan which,
among other things, adopts a more suitable, private, not-for-profit structure.
It is anticipated that a general fund operating subsidy will continue until this
restructuring is completed.
Parking -Enterprise Fund - It was anticipated, that with the construction of a $5.5 million dollar parking
garage the fund would operate in a deficit position until debt service
decreases in future years. Annual operating results are as expected. Until
. such time as the debt service decreases significantly, the general fund will
continue to provide an annual operating subsidy to the parking fund.
Bass Park -Enterprise Fund - This facility was studied by a committee of staff and community members to
determine how to improve operating results. The recommendations were to
market more aggressively and improve the product quality. The Ciry
Council has demonstrated its support by pledging more resources to the
facility. In the interim, the general fund will continue to provide an annual
operating subsidy.
41
City of Bangor, Maine
Notes to Financial Statements
' June 30, 1997
III. Detailed Notes on all Funds and Account Groups
1. Deposits and Investments
The City maintains a cash and investment pool that is available for use by all funds. Each fund type's
portion of this pool is displayed on the combined balance sheet as "equity in pooled cash and
investments" and is classified as short term. Cash is invested in various interest bearing securities,
which can be redeemed as needed without penalty. In addition, cash and investments are separately held
by some of the City's fund types.
Deposits: At year end, the carrying amount of the City's deposits was $2,870,291 and the bank balance
was $ 3,611,486. Of the bank balance $2,437,193 was fully insured and or collateralized and
$1,174,293 was uninsured and uncollateralized.
Investments: Statutes authorize the City to invest in obligations of the U.S. Treasury, agencies and
instrumentalities, repurchase agreements, corporate securities, financial institution stocks, and other
stock investments. The City's investments are categorized below to give an indication of the level of
risk assumed by the entity at year-end.
Category 1 - includes investments that are insured or collateralized with securities held by the City or
its agent in the City's name.
Category 2 - includes uninsured investments for which the securities are held by the banks' trust
department in the City's name.
Category 3 - includes uninsured investments for which the securities are held by the banks' trust
department or its agent but not in the City's name.
Category Carrying Market
1 2 3 Amount Value
U.S. Government and agencies - $22,168,315 - $22,168,315 $22,322,214
Repurchase Agreements - 1,838,775 - 1,838,775 1,838,775
Other 50,000 534,326 - 584,326 592,689
Mutual Funds - - - 677,407 677,407
$50,000 $24,541,416 - $25,268,823 $25,431,085
Mutual fund investments are not required to be classified in any of the three above categories because
they are not evidenced by securities that exist in physical or book entry form.
Due to higher cash flows at certain times during the year, -the City's investment in U.S. Govemment
and agency obligations, repurchase agreements and mutual funds fluctuates significantly.
42
City of Bangor, Maine
� Notes to Financial Statements
June 30, 1997
1. Deposits and Investments (Continued)
A reconciliation of cash and investments as shown on the combined balance sheet for the City follows:
_ Carrying amount of deposits $2,870,291
Canying amount of investments 25,268,823
$28,139,114
Equity in pooled cash and investments $2,919,591
Investments, at cost 22,884,969
• Investment in bond and ban proceeds (other assets) 2,491,199
28,295,759
Less:
Pending collection items 156,645
$28,139,114
2. Property Tax
The City's property tax was levied July 1, 1996 on the assessed value listed as of the prior t�pril l, for
� all real and personal property located in the City. The assessed value for the list of April l, 1996, upon
which the 19961evy was based, was $1,363,463,500. The estimated market value was
$1,363,463,500 making the assessed value 100 percent of the estimated market value
Taxes are billed on a annual basis. Taxes were due September 16, 1996 and March 17, 1997 with
interest due from that date if unpaid. Current tax collections for the year ended June 30, 1997, were
95.0 percent of the tax levy. (Table 5)
Property taxes levied for the year ended 7une 30, 1997, are recorded as receivables. The receivables
collected during the year and the first 60 days of the subsequent year are recognized as revenues for the
year ended June 30, 1997. Receivables estimated to be collected subsequent to the 60 day period are
considered to be deferred revenues. Prior year tax levies were recorded using this same principle.
3. Interfund Transactions
Individual fund interfund receivable and payable balances at June 30, 1997 were as follows:
' Receivable Payable
General Fund $2,044,860 -
Enterprise Funds:
City Nursing Facility - 689,217
Bass Park Fund - 1,255,355
Park Woods - 100,288
$2,044,860 $2,044,860
43
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
4. Due from Other Governments
' Due from other governments is comprised of the following amounts at June 30, 1997:
State of Federal
� Other Maine Government Total
General Fund $7,908 $1,327,580 - $1,335,488
Special Revenue Funds - $58,718 $279,978 $338,696
Capital Projects Fund - $38,403 - $38,403
Of the General Funds $1,327,580 due from State of Maine, $910,430 represents school subsidies and State agency
billings and $262,132 represents general assistance claims not yet received.
5. Fu�ed Assets
A summary of the activity in the General Fixed Asset Account Group for fiscal year ended June 30, 1997,
follows:
Capital
Balance Transfers & Project Balance
June 30, 1996 Additions Deletions Close-outs June 30, 1997
Land, buildings, and
construction in process:
Land $5,441,291 - ($242,800) - �5,198,491
School Land 950,988 - - - 950,988
Buildings 4,473,383 580,600 - - �,053,983
School Buildings 26,235,769 - - - 26,235,769
Construction in process 1,598,450 2,594,531 - (28,579) 4,164,402
Total land, buildings,
and construction in process $38,699,881 $3,175,131 ($242,800) ($28,579) �41,603,633
Equipment:
Vehicles 6,278,215 63,000 - - � 6,341,215
Machinery & Equipment 3,668,750 182,551 (1,809) 28,579 3,878,071
Schoolother 4,261,207 151,543 - - 4,412,750
Total equipment 14,208,172 397,094 (1,809) 28,579 14,632,036
Total fixed assets $52,908,053 $3,572,225 ($244,609) - $56,235,669
44
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
5. Fu�ed Assets (Continued)
A summary of proprietary fund type property, plant, and equipment at 7une 30, 1997, follows:
Land $966,042
Buildings, plant and equipment 44,418,975
Pipelines and mains 32,198,669
Airport operational assets 187,650,187
P�rking structures 6,459,608
_ Construction in process . 3,315,453
� 275,008,934
Less: accumulated depreciation 91,973,098
. $183,035,836
- In 1997, total proprietary fund type interest incurred was $2,270,083 all of which was charged to
operations. No interest was capitalized during the year
6. Leases
Operating Leases
The Airport and the Economic Development Fund are the lessors of various buildings and land parcels
� under operating leases expiring in various years through 2034 and 2019, respectively. Minunum future
rentals to be received on noncancelable leases as of June 30, 1997 are:
Economic
Year ended June 30 Airport Development
1998 $1,249,760 $261,720
1999 1,088,973 246,813
2000 913,937 254,965
2001 754,850 25,026
2002 648,746 250,950
Subsequentto 2002 1,532,898 2,126,826
Total Minimum Future Rentals $6,189,164 $3,166,301
Airport minimum future rentals do not include contingent rentals that may be received under certain leases
of buildings because of revenue produced or usage in excess of specified amounts. Contingent rentals for
the Airport in 1997 were $1,554,587.
45
City of Bangor, Maine
Notes to Financial Statements
' 7une 30, 1997
6. Leases (Continued)
Capital Leases
The City's General Fund currently leases heavy machinery, a telephone system and copiers under capital
leases. In addition the Sewer Fund leases heavy machinery under a capital lease. Following is a schedule,
by year, of future minunum lease payments under these leases, together with the present value of the net
minimum lease payments as of June 30, 1997.
. Sewer General
Year Ended June 30 Fund Fund
1998 $33,392 $153,027
1999 - 136,879
2000 - 81,294
2001 - 66,339
33,392 437,539
Less: Interest 1,792 50,041
Present value of net minimum lease payments $31,600 $387,498
7. Other Assets
Other assets are comprised of the following:
General Capital Enterprise
Fund Projects Fund Funds
Investment of bond and ban proceeds - $1,984,455 $506,744
Tax mortgages 9,895 - -
Operating rights (net of amortization) - - $306,342
Loans - - $1,522,535
Bond issuance costs (net of amortization) - - 290,544
Total other assets $9,895 $1,984,455 $2,626,165
8. Deferred Revenue
Deferred revenues consist of the following:
General Special
Fund Revenue Funds
Taxes $2,044,552 -
Loans - 3,895,843
Advance Deposits 74,680 -
$2,119,232 $3,895,843
Deferred tax revenues consist of those tax revenues not available to meet the needs of the cunent period.
46
City of Bangor, Maine
. Notes to Financial Statements
June 30, 1997
8. Deferred Revenue (Continued)
Defened revenue of the Special Revenue Fund represents future revenue equal to loans made pursuant to the Community
Development, Urban Development Action Grants, and Economic Incenrive Revolving Loan Fund over the past years.
Pursuant to the terms of these grants, loans made are recognized as an expenditure in the Special Revenue Fund when
they occur with corresponding recognition of grant revenues
Further, pursuant to regulations governing such funds, repayment of loans thus outstanding are considered program
. income as received in subsequent years and are available to the recipient for additional use within the program. The
future revenue associated with the loans outstanding is, therefore, reflected as deferred revenue.
. 9. Long-Term Debt
The following is a summary of long-term debt transacrions of the City for the period ended June 30, 1997:
� General Limited Revenue
Obligation Obligation
Debt Bonds Total
Debt payable at June 30, 1996 $58,759,213 $5,560,000 �64,319,213
New debt issued 6,299,567 - 6,299,567
Debt retired (6,027,500) (195,000) (6,222,500)
Debt payable at June 30, 1997 $59,031,280 $5,365,000 564,396,280
The City is subject to the laws of the State of Maine which limit the amount of long-term debt to 15 percent(depending
on how fund will be used) of its last full state valuation. The statutory limit for June 30, 1997 was for$201,532,500
with a general obligation debt margin of$ 142,501,220. The following is a summary, by purpose, of the ouutanding
debt of the City at June 30, 1997, and related limitations:
Max. Allowable
Percent of State
Debt Assessed Value of Statutory Debt
Outstanding�_ $1,343,550,000 Limit Margin
School $12,772,555 10.0% $134,355,000 �121,582,445
Sewer 33,167,141 7.5% 100,766,250 67,599,109
Airport 40,794 3.0% 40,306,500 40,265,706
All other * 13,050,790 7.5% 100,766,250 87,715,460
Total $59,031,280 15.0% $201,532,500 �142,501,220
* All other debt outstanding is comprised of the following:
General Fund $6,916,192 53.1%
Parking Fund 4,194,466 32.1%
Golf Course Fund 60,077 0.5%
Bass Park Fund 830,047 6.4%
City Nursing Fund 350,008 2.7%
Economic�Incentive Fund 700,000 5.3%
$13,050,790 100.0%
The Bangor Intemational Airport has $5,365,000 of lim.ited revenue obligation bonds outstanding at June 30, 1997, the
proceeds of which were used to finance terminal expansion. The interest rate varies from 5.00% to 6.70% with a fmal
maturity date of October, 2012.
47
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
9. Long-Term Debt (Continued)
General obligation debt payable at June 30, 1997, consisted of the following issues:
Final
� Interest Maturity
Rates Date
1978 Permanent Public Improvements 5.80 07/O1/98
1981 Permanent Public Improvements 10 06/O 1/O 1
1987 Permanent Public Improvements 5.70 to 6.80 10/25/97
1988 Permanent Public Improvements 7.37 to 8.60 10/28/07
1989 Permanent Public Improvements 6.70 to 7.00 09/O 1/09
1990 Permanent Public Improvements 7.00 to 7.10 08/O1/10
1991 Permanent Public Improvements 5.00 10/O1/12
1992 Permanent Public Improvements 5.00 to 5.30 11/O1/12
1992 Permanent Public Improvements 4.75 to 5.40 11/O1/02
1993 Permanent Public Improvements 3.30 to 4.65 10/O1/00
1993 SRF Treatment Plant 2.46 10/O 1/13
1993 SRF Combined Sewer Overflow 2.45 10/Ol/13
1994 Refunding Bonds 2.35 to 5.20 08/O1/10
1996 Permanent Public Improvements 5.05 to 5.85 09/O1/15
1996 SRF Sewer 3.52 10/O1/16
1996 General Obligation Notes * 6.00 to 6.90 OS/O1/16
1996 School Improvement BAN 4.25 09/26/96
1996 Permanent Public Improvements 5.35 to 6.50 09/26/96
1996 General Obligation Notes (Waterfront) 4.10 10/18/96
1997 MMBB Line of Credit - CSO 3.00 08/24/97
Total
Less current portion(due fiscal year 1998)
* The notes are, at the option of the holder, due and payable in ninety days after
written notice from the holder is given to the City.
48
Authorized General Enterprise Total
and Issued City School Funds June 30, 1997
$3,260,000 $253,089 - $36,911 $290,000
3,065,000 119,340 465,660 - 585,000
1,785,000 37,953 21,590 105,457 165,000
3,200,000 - 91,100 1,128,900 1,220,000
13,025,000 201,000 1,194,000 855,000 2,250,000
9,265,000 344,000 - 1,596,000 1,940,000
19,000,000 - - 15,200,000 15,200,000
12,550,000 - 5,355,Q00 4,675,000 10,030,000
575,000 335,000 - - 335,000
3,314,000 1,866,770 - 22,230 1,889,000
1,864,000 - - 1,584,400 1,584,400
1,986,000 - - 1,688,100 1,688,100
11,155,000 324,040 3,145,205 7,320,755 10,790,000
1,030,000 960,000 - - 960,000
2,942,923 - - 2,942,823 2,942,823
975,000 975,000 - - 975,000
2,500,000 - 2,500,000 - 2,500,000
1,500,000 1,500,000 - - 1,500,000
700,000 - - 700,000 700,000
1,486,957 - - 1,486,957 1,486,957
$95,178,880 6,916,192 12,772,555 39,342,533 59,031,280
1,040,370 3,511,818 4,316,002 8,868,190
$5,875,822 $9,260,737 $35,026,531 $50,163,090
49
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
9. Long-Term Debt (Continued)
Overlapping Debt
The City is located in Penobscot County and, as such, is responsible for its proportionate share
(22.86%) of the county's long term debt outstanding which, at June 30, 1997 was $3,550,000. The
City is also a member of Maine Vocational Region Four (M.V.R. No. 4), which is comprised of three
cities, including Bangor, 11 towns, one plantation, four S.A.D.'s and one C.S.D. The City is
responsible for its proportional share (33.59%) of M.V.R. No. 4's long-term debt which, at June 30,
1997 was $660,000.
The City's portion of overlapping debt is summarized below:
Percentage
Debt Applicable Overlapping
Units Outstanding to the City Debt
City $59,031,280 100.00% $59,031,280
County 3,550,000 22.86% 811,530
M.V.R. No. 4 660,000 33.59% 221,693
$63,241,280 $60,064,503
This produces the following results:
Per capita direct City debt $1,790 (Table 9)
Per capita overlapping debt $1,821
Ratio of City debt to the City's
June 30, 1997 assessed valuation 4.33% (Table 9)
Ratio of overlapping debt to the
June 30, 1997 assessed valuation 4.41%
The following table sets forth the ratio of general obligation debt to assessed valuation, by fund type;
and per capita debt ratios, by fund type; for the fiscal year ended June 30, 1997.
Amount of Debt b,�
General Fund Enterprise
City School Funds Total
$6,916,192 $12,772,555 $39,342,533 $59,031,280
Debt as Percent of Assessed Valuati�n
General Fund Enterprise
City School Funds Total
0.51% 0.94% 2.88% 4.33%
Per Canita Debt b� Fund
General Fund Enterprise
City School Funds Total
$210 $387 $1,193 $1,790
50
' City of Bangor, Maine
Notes to Financial Statements .
June 30, 1997
9. Long-Term Debt (Continued)
� The annual future principal and interest payment requirements for all debt outstanding as of June 30,
1997, is as follows:
General Limited Revenue
�A Obligation Debt Obligation Bonds
Year Ended � Total
June 30 Principal Interest Principal Interest Requirement
�� 1998 $8,868,190 $2,690,339 $205,000 $329,603 $12,093,132
1999 4,568,554 2,284,282 220,000 318,757 7,391,593
2000 4,456,007 2,042,624 230,000 306,770 7,035,401
2001 3,979,265 1,816,978 245,000 293,643 6,334,886
2002 3,328,003 1,638,945 260,000 279,307 5,506,255
„ Subsequent 33,831,261 8,292,776 4,205,000 1,703,226 48,032,263
$59,031,280 $18,765,944 $5,365,000 $3,231,306 $86,393,530
' In Fiscal Year 1994 the City advance refunded the callable portion of the 1989 and 1990 general
obligation bonds to reduce debt service payments by approximately $408,000 and $302,000 in the
General Fund and Enterprise Funds, respectively over the then remaining 17 years and to obtain an
economic gain (difference between the present values of the debt service payments on the old and new
debt) of$230,000 in the General Fund and $84,000 in the Enterprise Funds.
As of June 30, 1997, the amount of defeased debt outstanding but removed from the General Long-term
Debt Account Group and Enterprise Funds is $3,163,900 and $6,541,100, respectively.
The Sewer Utility and Parking enterprise funds have recorded a deferrea amount on refunding, which is �
the difference between the reacquisition price (funds required to refund old debt) and the net carrying
value of the old debt. The deferred amount on refunding will be amortized over the remaining life of the
old debt. .
The following sets forth the changes in liabilities reported in the general long term debt account group
during the year ended June 30, 1997:
Balance Balance
June 30, 1996 Additions Reductions June 30, 1997
General obligation debt $19,115,296 $4,112,610 $3,539,159 $19,688,747
Obligations under capital leases 180,833 280,061 73,396 387,498
- Accrued leave and sick 583,473 1,951,075 - . 2,534,548
Long-term obligation for self
insurance 1,576,789 222,944 1,799,733
$21,456,391 $6,566,690 $3,612,555 - $24,410,526
51
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
10. Contributed Capital
A summary of changes in contributed capital follows:
Contributed capital at June 30, 1996 $118,617,309
Contributions 214,539
Depreciation on assets acquired with contributions (4,422,674)
Contributed capital at June 30, 1997 $114,409,174
11. Nonexpendable and Expendable Trust Funds Balances
Nonexpendable and Expendable Trust funds Balances were comprised of the following at June 30, 1997:
Unexpended
Principal Income
Nonexnendable Trusts
Cemetery:
Perpetual Care $376,752 $123,476
Parks:
Bass Park - 30,675
Arthur Chapin Fund 14,538 16,146
14,538 46,821
City Missionary:
Hiram Fogg 1,000 2,813
Louis & Sophia Kirstein 500 2,072
Hiram Oliver 2,000 6,161
Penobscot Association for the Blind 11 4
Lorenzo Sabine 1,000 1,657
Stetson 12,000 15,482
16,511 28,189
Education:
Bangor High School 200 1,440
French Medal 35,738 15,718
Holton Public School . 2,000 4,150
Louis & Sophia Kirstein 5,000 4,768
A.E. Webber, Jr. 1,200 711
44,138 26,787
52
City of Bangor, Maine
. Notes to Financial Statements
� June 30, 1997
11. Nonexpendable and �xpendable Trust Funds Balances (Continued)
. Unexpended
Principal Income
-j Aid for Aged Women:
Charles Adams 10,000 5,550
Thomas Upham Coe 3,000 1,665
- Anna H. Pierce 4,000 2,219
Annie Stetson 5,067 2,707
George Stodder � 11,000 6,105
' Wakefield 10,000 9,299
43,067 27,545
Other Funds:
- Dorthea Miller 507 488
Bangor Firemen's Relief 7,639 9,526
Bangor Fuel Society 4,500 375
Kirstein Ciry hospital 507 1,776
Arthur Morey 1,013 4,652
Melvin Murch 5,733 16,075
O'Connell Trust 1,000 6,738
Twitchell Trust - 143
Flora Seavey 1,500 1,166
Charlotte Hall 5,984 18,233
Pfaff Trust 811 1,904
Porter - Pulsifer 5,000 10,451
Jewish War Veterans 758 248
34,952 71,775
Revolving Loan:
Sophia Kirstein Student Loan 126,062 -
Total nonexpendable trusts $656,020 �324,593
Expendable Trusts
Dental Clinic $48,650 $15,959
Preservation of Records 35 47
CNF Wheelchair Van 1,531 260
Adopt a Park 20,093 4,707
BFD Imaging 25,174 469
Total expendable trusts $95,483 $21,442
53
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
12. Designated Fund Balance
General Fund:
Designated fund balances represent those portions of the General Fund balance specifically designated
' for the following:
1997 1996
Departmental balances carried forward $125,342 $290,650
School department - regular 197,621 259,547
adult education 54,633 35,307
special revenue 69,119 71,346
school lunch 27,370 56,561
trust & agency 118,361 1,422
Accrued summer teacher payroll (1,535,431) (1,409,198)
Pooled equipment account 523,372 579,720
Bus equipment reserve 17,213 33,646
Fire equipment account 20,276 71,691
Improvement reserve 272,915 462,675
Workers' compensation reserve 1,650,981 1,432,184
Self insurance reserve 148,752 144,605
Credit reserve 77,109 276,419
Cameron Stadium 14,679 14,270
Designated reserve for advances to Enterprise funds 1,900,000 900,000
Landfill closure 127,232 123,685
Cascade Park maintenance 51,658 15,191
Arbitrage rebate -city 26,076 25,349
school department 141,345 137,404
Total general fund designated fund balance $4,028,623 $3,522,474
IV. Other Information
1. Risk Management
The City is exposed to various risks of losses related to torts; theft of, damage to and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The City currently reports
all if its risk management activities in its General and Enterprise Funds. Claims expenditures,
liabilities and reserves are reported when it is probable that a loss has occurred and the amount of the
loss can be reasonable 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 Iiability, 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.
The City is self-insured for its workers' compensation liability. Reserves are actuarially determined
each year to determine adequacy. In addition, the City purchases excess workers' compensation
insurance to limit its financial risk.
54
City of Bangor, Maine
Notes to Financial Statements
� June 30, 1997
1. Risk Management (Continued)
At June 30, 1997, the amount of the self-insurance liabilities was $2,996,742. This liability is the City's best
estimate based on.available information. Changes in the reported liability since July 1, 1995, resulted from
the following:
� Workers'
Compensation Insurance Total
Unpaid Claims as of July 1, 1995 $1,883,533 $141,037 $2,024,570
Incurred Claims 281,566 - 281,566
Payments (751,730) - (751,730)
Changes in estimates and
other adjustments 1,212,465 3,568 1,216,033
Unpaid Claims as of June 30, 1996 2,625,834 144,605 2,770,439
Incurred Claims 141,646 - 141,646
Payments (541,815) - (541,815)
Changes in estimates and
other adjustments 622,325 4,147 626,472
Unpaid Claims as of June 30, 1997 $2,847,990 $148,752 $2,996 742
Comprised of: �
Current obligations of the general fund $607,890 $607,890
Enterprise funds 589,119 589,119
General long term debt account group 1,650,981 148,752 1,799,733
Total $2,847,990 $148,752 $2 996 742
2. Related Party Transactions
During the fiscal year end June 30, 1997, the City made no significant purchases of goods or services from a
related party.
3. Tax Increment Financing Districts
The City has established TIF (taJc increment financing) districts, all of which dedicate a portion of captured
real estate and personal property tax increment revenues over staggered twenty year periods for the following
purposes:
��.�unlc� a v _o�m_ent District No. 1:
Partially finances $27.5 million of capital expenditures at manufacturing facilities leased by General Electric
Company from Bangor International Airport. The captured assessed value is returned to General Electric via
reduced rental payments at a rate of 50% for personal property and 100% for real property. This amounted to
$588,406 for the year ended June 30, 1997.
L�[a1t�Street Municipal De�loDment Distri�
Assists Penobscot Development Limited Liability Company in financing the extraordinary costs of acquisition
and environmental remediation of the former Gasworks site on Main Street, ultimately to provide land area
necessary for the construction of a 54,000 square foot supermarket in a Community Development project
area.
,�cl�ering SQuare Municipal De�.pment District•
Assists Realty Resources Chartered in a major redevelopment project by converting the Pickering Square
section of the former Freese's Department Store building into 34 units of affordable housing.
55 .
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
4. Segment Information - Enterprise Funds �
There are eight services provided by the City which are financed by user charges - Sewer, Airport, Park
Woods, City Nursing Faciliry, Parking, Bass Park, Municipal Golf Course and Economic Development.
The key financial data for the period ended June 30, 1997, for those services are as follows:
Park
Sewer Airport Woods
Operating revenue $6,246,505 $9,700,711 $220,348
Operating expenses:
Depreciation and amortization * 1,480,470 5,392,457 84,452
Other 2,476,949 7,190,191 253,242
3,957,419 12,582,648 337,694
Operating income (loss) 2,289,086 (2,881,937) (117,346)
Nonoperating revenue (expense) (1,277,880) 381,134 (69,194)
Operating transfers from General Fund - - 62,714
Net income (loss) $1,011,206 ($2,500,803) ($123,826)
Additions to contributed capital - $1,957,572 -
Acquisition of property, plant & equipment $1,969,807 $4,146,231 $7,788
Total assets $58,119,599 $137,392,359 $2,075,583
Net working capital $2,519,931 $4,840,892 ($125,575)
Bonds payable $33,167,141 $5,405,794 -
Fund equity $24,134,543 $130,575,715 $1,753,414
* Includes depreciation and amortization of$4,422,674 on assets acquired with contributions.
56
City Bass Municipal Economic
Nursing Parking Park Golf Course Development Total
$2,594,963 $572,192 $1,181,732 $588,972 $83,387 $21,188,810
85,849 299,198 281,568 65,461 10,144 7,699,599
2,853,163 348,000 1,378,430 � 305,903 38,031 14,843,909
2,939,012 647,198 1,659,998 371,364 48,175 22,543,508
(344,049) (75,006) (478,266) 217,608 35,212 (1,354,698)
(201,147) (637,582) (353,491) 4,642 6,021 (2,147,497)
155,890 363,567 250,000 - - 832,171
($389,306) ($349>021) ($581,757) $222,250 $41,233 ($2,670,024)
- - - - $744,630 $2,702,202
$21,545 $2,100 $81,510 $156,625 $834,653 $7,220,259
$979,644 $3,997,480 $2,251,266 $1,044,622 $1,857,311 $207,717,864
($634,426) ($300,091) ($1,306,198) $146,073 ($145,590) $4,995,016
$350,008 $4,194,466 $830,047 $60,077 $700,000 $44,707,533
($438,519) $25,744 $49,241 $960,525 $790,863 $157,851,526
57
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
5. Contingent Liabilities
Liti ta ion
A subcontractor for the Sewer Fund's Secondary treatment facility has submitted a contract claim in the
amount of$497,394 for additional costs alleged to have been incuned in constructing the facility, due to
changed site conditions. There has been little activity on this claim during the past year. Under the
terms of the parties arbitration agreement the City's cost to resolve the claim will range from $40,000 -
$215,000.
The City has asserted claims against the architect of the Airport's terminal building expansion project
for design errors and negligent contract administration approximating $2,500,000. In turn, the architect
claims $138,473 is due from the City for additional services. A positive recovery to the Airport Fund is
anticipated upon resolution of these claims.
In December 1994, the City acquired tax title to a large vacant building. In December 1995, the City
extinguished claims of the former owners by an eminent domain action. Both of these actions above are
the subject of a pending legal challenge by the building's former owners. If the former owners are
successful, the City will be liable for damages. It is estimated that the City's cost in that event could
range from $130,000 - $790,000. The City has subsequently sold the rear third of the building for
redevelopment purposes. In doing so, the City signed an Indemnity Agreement with a title insurance
company indemnifying them of any losses that may occur from an adverse outcome of the pending suit.
The City's contingent liability is capped at $3,OOQ,000.
In September 1992, the City received a "Notice of Potential Responsibility" under Maine's Uncontrolled
Hazardous Substance Sites law. The notice involves the planned cleanup of several hazardous waste
disposal sites. The City may be liable because the sites were formerly operated by the company the
City used for the disposal of waste oil during the 1960s - 1980s. The Maine Department of
Environmental Protection's preliminary estimate of cleanup costs at the primary site exceeds
$10,000,000. The City is listed as a "de minimus" contributor in the DEP's various notices. As such it
is estimated that the City's cost will range from $80,000 - $100,000.
The City is subject to a wide variety of federal and state laws and regulations relating to land use, water
resources, sewage disposal, the use, storage, discharge, emission and disposal of wastes and other
environmental matters. The City believes that its properties and operations are presently in material
compliance with all land use and environmental laws. Failure to comply with such laws, however,
could result in severe penalties that could adversely affect the City. The City is not aware of any
environmental conditions or non-compliance, the remediation or conection of which, the City believes,
would have a material adverse impact on the financial condition of the City. The City is not subject to
any pending or threatened proceedings or actions involving environmental matters.
There are various other claims and suits pending against the City which arise in the normal course of the
City's activities. In the opinion of the City management the ultimate disposition of these various claims
and suits will have no material effect on the financial position of the City.
58
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
6. Pension Plans
Introduc 'o �
. The City of Bangor provides retirement pensions for its employees through a number of vehicles,
including Defined Benefit Pension Plan, Defined Contribution Pension Plan and Social Securiry.
The Defined Benefit Pension Plan is administered through the Maine State Retirement System (MSRS).
The Defined Contribution Pension Plans are section 401(a) and 457 Deferred Compensation Plans
administered by ICMA/RC. Finally, those employees not eligible for coverage under either the Defined
Benefit or Defined Contribution Plans are provided full Social Security coverage.
A. Defined Benefit Pension Plans
The City of Bangor's teachers and teacher-defined school department personnel are covered for
retirement benefits under the State of Maine's Public Teacher's Plan in the Maine State Retirement
System (MSRS). Other non-teacher personnel and municipal employees (i.e. City employees) are
covered under the City of Bangor's Participating Local District (PLD) plan in the MSRS, which is a self
funded retirement plan administered by MSRS on behalf of the City.
The Maine State Retirement System ("System"), is an agent mulitple-employer public employee
retirement system that acts as a common investment and administrative agent for cites in the State.
Fixed-term contract employees and part-timers that work less than 720 annual hours are exempted from
MSRS coverage.
1. Participating Local District Plan �
Beginning July 1, 1996 the City became a PLD within the MSRS Consolidated Plan. Prior to this date,
the City was a PLD outside the Consolidated Plan. Entry into the Consolidated Plan was mandatory and,
with the exception of several slightly modified employee benefits, does not substantively change
the City's liabilities or its proportional share of assets. What does change is the way in which the City's
contributions for both normal costs and unfunded liabilities are calculated. Also changed is the way in
which the City reports its contributions and those of its employees.
Moreover, MSRS typically reports its annual results to PLD's between eight and ten months after the
close of the fiscal year. Thus, the City has not yet received its report from MSRS with respect to the
fiscal year ended June 30, 1997, and so has no information about its status within the Consolidated
Plan. With the exception, then, of references to fiscal year ended June 30, 1997 (such as covered payroll
and contributions made during the year), the following MSRS related disclosure pertains to performance,
procedures and status for the year ended June 30, 1996, prior to the City's becoming part of the
Consolidated Plan.
All full-time permanent City employees are required to participate in the System unless the employee is
covered by an individual fixed term contract. Benefits vest after ten years of service. City employees
who retire at or after age 60 are entitled to an annual retirement benefit for life, in an amount equal to a
fraction of the average final compensation multiplied by years of inembership service after the date of
establishment.
Average final compensation is defined as the average annual rate of earnable compensation of a member
during the 3-5 years of creditable service, not necessarily consecutive, in which such average annual rate
of earnable compensation is highest. The System also provides death and disability benefits. These
benefit provisions and all other requirements are established by State statute and the adopted City plan.
59
City of Bangor, Maine
_ Notes to Financial Statements
7une 30, 1997
6. Pension Plans (Continued)
' City employees are required to contribute 6 1/2 percent of their annual salary to the System. The City
is required to contribute the remaining amounts necessary to fund the System, using the actuarial basis
specified by statute. The City's payroll for employees covered by the System for the year end June 30,
1997 was $18,533,665.
The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the
present value of pension benefits, adjusted for the effects of projected salary increases and step-rate
benefits, estimated to be payable in the future as a result of employee service to date.
The measure is intended to help users assess the funding status of the System on a going-concern basis,
assess progress made in accumulating su�cient assets to pay benefits when due, and make comparisons
among employers. The measure is the actuarial present value of credited projected benefits and is
independent of the funding method used to detemune contributions to the System.
The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30,
1996 (the latest available valuation). Significant actuarial assumptions used in the valuation include (a)
a rate of retum on the investment of present and future assets of 8 percent a year compounded annually,
(b) additional projected salary increases of 6 percent a year, attributable to senior/merit, and (c) 4
percent cost of living retirement benefit increases.
� Total unfunded pension benefit obligation applicable to the City's employees was $41,980,740 at June
30, 1996, as follows:
1996
Pension benefit obligation:
Retirees and beneficiaries currently receiving
benefits and terminated employees not yet
receiving benefits $61,810,674
Current employees -
Accumulated employee contributions including
allocated investment earnings 13,147,768
Employer financed vested 24,311,789
Employer financed non-vested 6,702,261
Total pension benefit obligation 105,972,492
Net assets available for benefits, at cost .
(market value is $89,999,814 at June 30, 1996) 63,991,752
Unfunded pension benefit obligation $41,980,740
Unfunded pension benefit obligation:
As a percent of total pension benefit obligation 39.61%
As a percent of covered payroll 229.37%
60
' City of Bangor, Maine
Notes to Financial Statements
� June 30, 1997
6. Pension Plans (Continued)
- Required contributions are determined separately for service retirement benefits, survivor benefits, and
disability benefits elected on or after January 1, 1977. The System's funding policy provides for
actuarially determined periodic contributions for normal cost and for amortization of any unfunded
actuarial accrued liabiliry so that su�cient assets will be available to pay benefits when due. For
determining plan costs, assets are valued at "actuarial value".
The actuarial funding method used to compute actuarially determined contribution requirements is the
� entry age normal method, a method under which the actuarial present value of the projected benefits of
each individual included in an actuarial valuation is allocated on a level basis over the earnings or
service of the individual between entry age and assumed exit age.
� The portion of this actuarial present value allocated to a valuation year is called the normal cost. The
portion of this actuarial present value not provided for at a valuation date by the actuarial present value
of future normal costs is called the actuarial accrued liability. The significant actuarial assumptions
_ used to compute the actuarially determined contribution requirement are the same as those used to
compute the pension benefit obligation as described earlier.
. The contribution to the System for 1997 was $5,046,423 and was made in accordance with actuarially
determined requirements computed through an actuarial valuation performed as of June 30, 1995.
. The contribution consisted of$1,939,735 normal cost (10.47% of current covered payroll) and
$1,902,000 amortization of the unfunded actuarial accrued liability (10.26% of current covered payroll).
The City contributed $3,841,735 (20.73% of current covered payroll); employees contributed
$1,204,688 (6.50% of current covered payroll).
2. Public Teachers Plan
School employees are eligible for normal retirement, upon attaining age 60 or 62 (depending on hire
date), provided they have 25 years of creditable service. The Plan also provides disability and survivor
benefits. Employees are required by State statute to contribute 7.65% of their compensation to the
retirement system. The covered teacher's payroll for the year ended June 30, 1997 was $16,263,923.
The State of Maine paid the employers share for its Public Teacher's Plan. In the case of federally
funded positions, the funding grant pays the employers share. During the year ended June 30, 1997,
$106,274 in employers share was charged to various school grants for $551,216 in covered payroll.
3. Historical Trend Information
Trend information gives an indication of the progress made in accumulating sufficient assets to pay
benefits when due. Three year trend information(the latest available), for the years ended June 30, is
presented as follows:
1996 1995 1994
Net assets available for benefits as percentage of the
pension benefit obligation 60.39% 58.22% 56.45%
Unfunded pension benefit obligation as percentages
of covered payroll 229.37% 231.90% 234.79%
Employer contributions (in accordance with actuarially
determined requirements) as percentages of covered
payroll 20.76% 21.42% 22.17%
Ten-year trend information is located in Tables 16 and 17.
61
City of Bangor, Maine
Notes to Financial Statements
June 30, 1997
6. Pension Plans (Continued)
B. Defined Contribution Pension Plan
The City of Bangor provides pension bene�ts for certain of its full-time employees through both 401(a)
° and 457 Deferred Compensation Plans (both of which are defined contribution plans (DCPs))
administered by ICMA/RC. In a DCP, benefits depend solely on amounts contributed to the plan plus
investment earnings. Participation for fixed-term contract employees is provided in lieu of the defined
_ benefit plan through the Maine State Retirement System. Covered employees are eligible to participate
and are fully vested from the date of employment. The City contributes at various rates depending upon
employment contracts. The contribution rates vary from 10.0% - 22.0% of annual earnings. The
covered payroll in fiscal year 1997 was approximately $492,506 and City contributions totaled
. approximately $59,535. �
In addition, all City employees may participate in the 457 plan and defer a portion of their salary until
future years. The deferred compensation is not available to employees until termination, retirement,
' death or unforeseeable emergency.
Until December 1, 1996, all amounts of compensation deferred under the 457 plan, all property and
rights purchased with those amounts and all income attributable to those amounts, property or rights are
(until paid or made available to the employee or other beneficiary) solely the property and rights of the
City (without being restricted to the provisions of benefits under the plan), subject only to the
-. claims of the City's general creditors. Participants rights under the plan are equal to those of general
creditors of the City in an amount equal to the fair value of the deferred account for each participant.
On December, 1, 1996, the City amended the plan in accordance with the provisions of Internal
Revenue Code (IRC) Section 457. On that date, assets of the plan were placed in trust for the exclusive
benefit of participants and their beneficiaries. The requirements of that IRC Section prescribes that the
City no longer owns amounts deferred by employees, including the related income on those amounts.
Accordingly, the assets and the liability for the compensation deferred by plan participants, including
earnings on plan assets, were removed from the City's financial statements.
C. Social Securitv
The City of Bangor does not have a section 218 agreement to provide full social security coverage to its'
employees. The City provides full social security coverage to part-time, seasonal and temporary
employees under the Omnibus Budget Reconciliation Act of 1990, and IRS regulations which became
effective July 1, 1991.
7. Landfill Closure and Postclosure Care Costs
Federal regulations (Subtitle 'D') stipulate that landfills which have not accepted MSW (Municipal Solid
Waste) in recent years are exempt from specific postclosure care and monitoring requirements, provided
that such landfills are closed prior to October 8, 1994, and in accordance with applicable State
regulations, subject to certain construction requirements.
In June 1994, the State of Maine legislature approved new state landfill closure regulations drafted by
the Maine Department of Environmental Protection. These regulations included a "Reduced Closure
Option" provision which allowed qualifying low risk landfills to be closed prior to October 8, 1994 if
federal construction standards were met, with no further requirements for specific postclosure
monitoring and maintenance programs.
62
City of Bangor, Maine
Notes to Financial Statements
Y ' June 30, 1997
. 7. Landfill Closure and Postclosure Care Costs (Continued)
The City of Bangor's Kittredge Road Landfill qualified for the "Reduced Closure Option" and is in full
compliance with its provisions.
The estimated liability for landfill closure and postclosure care costs is $378,369 as of June 30, 1997,
which is based on 100% usage of the landfill. The estimated total current cost of the landfill closure
- and postclosure care is based on the amount that would be paid if services required to close, monitor
and maintain the landfill were acquired as of June 30, 1997. The actual cost of closure and postclosure
should not change significandy from the amount estimated.
At June 30, 1997 $378,369 of the closure and postclosure care costs had been funded by the issuance of
general obligation bonds, reimbursement from the State of Maine and the interest earnings thereon.
8. Subsequent Events ,
In October 1997, the City declared its intention to issue up to $425,000 in general obligation bonds to
finance the expansion, remodeling and renovation of the skilled nursing unit of the Bangor Nursing
Facility, relocation of its physical therapy department, and creation of a 17 bed resident care therapy
department.
In August 1997, the City issued $2,452,362 in general obligation bonds through the Maine Municipal :��
� Bond Bank's State Revolving Loan Fund to fmance various sewer separation projects. The bonds carry ��
an average interest rate of 2.32% with final maturity in October 2017. Of the proceeds $1,486,957 was a"�
used to pay off a line of credit.
In September 1997, The City issued $8,500,000 in general obligation bonds with interest rates ranging
from 4.875% to 5.30% and final maturity in September 2017. Of the proceeds $2,500,000 was used to
pay off a bond anticipation note. The remaining proceeds will be used to finance the following projects;
school improvements, library improvements, sewer separation, Bass Park improvements and several
smaller projects.
9. Restatement of Fund Balances
The June 30, 1996, General Fund designated fund balance was restated to reflect the removal of the
accrued teacher payroll subsidy received from the State of Maine. Such removal is warranted because
� the amount of the subsidy is not designated by the State of Maine for payment to the City of Bangor
until after the City's fiscal year end. The effect of the removal is as follows:
Balance on the June 30, 1996 Financial Statements $4,025,417
Removal of accrued teacher payroll subsidy (502,943)
Restated balance for June 30, 1997 $3,522,474
63
City of Bangor, Maine -
Notes to Financial Statements
7une 30, 1997
9. Restatement of Fund Balances (Continued)
The Sewer Fund's accounts receivable and unappropriated fund balance amounts for June 30, 1996 were
restated to reflect the inclusion of earned but unbilled sewer user revenue. The effect of this change
follows:
Accounts Unappropriated
Receivable Fund Balance
Enterprise Funds accounts receivable balance
on the June 30, 1996 Financial Statements $3,488,931 $37,718,360
Add earned but unbilled revenue 775,160 775,160
Restated balance for June 30, 1997 $4,264,091 $38,493,520
Additionally, the Airport's assets and liabilities balances were restated to reflect the removal of a direct
financing lease. The lease was neither an asset nor a liability of the City and was merely a pass-through
item established as part of an agreement between a lessee of the City and a third party. The effect on
the overall Enterprise Funds assets and liabilities follows:
The effect on the overall Enterprise Funds assets and liabilities follows:
Assets Liabilities
Enterprise Funds asset balance on the
June 30, 1996 Financial Statements $208,798,786 $208,798,786
Remove direct financing lease (968,652) (968,652)
Restated balance 207,830,134 207,830,134
Effect of the Sewer change noted above 775,160 775,160
Restated balance for June 30, 1997 $208,605,294 $208,605,294
10. Changes in Presentation
The Airport Fund changed its presentation of retained earnings between fiscal year ended June 30, 1996
and fiscal year ended June 30, 1997. For fiscal year 1996, a reserve for debt service was recorded as a
portion of reserved retained earnings, whereas in fiscal 1997 this portion was broken out and shown as a
separate line item titled "Reserved for�debt service". The reserve for debt service at June 30, 1996 (as
restated) and June 30, 1997 was $539,308.
The General Long Term Debt Account Group changed its presentation between fiscal year ended June
30, 1996 and June 30, 1997. Long term obligation for self insurance was included as a component of
the account group for year ended June 30, 1997, whereas, it was not a component for year ended June
30, 1996. The long term obligation for self insurance at June 30, 1997 was $1,799,733.
64
�.
General Fund '`�
�` ° .
� �_ � f .i . r F',,
' ,
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.
Schedule A-1
City df Bangor, Maine
� �alance Sheet
�eneral Fund
June 30, 1997 and 1996
Ass�
1997 1996
Cash $391,376 $338,998
' Inveshnents , 6,172,395 6,188,427 �
Receivables:
Taxes, including interest and liens 2,490,610 2,500,654
Accounts 873,231 943,295
Due from other governments 1,335,488 1,443,232
Due from other funds 2,044,860 1,620,820
Inventory, at cost 291,109 300,747 �
Other assets $4,ppg 24,017
Total assets $13,653 077 $13,360,190
Liabilitze�i
Accounts payable $986,280 $725,�1:�
Workers' compensation self insuranc� 607,890 607.��i0
Taxes collected in advance 23,263 2�,1 x;
Deferred revenues 2,119,232 1,�1�.��r�
Accrued payroll & withholdings 2��22,1�� �,9��.�� ;
Total liabilities 5,'75g�g42 3,���_,: �
Fund balances:
Reserve for encumbrances 207,440 .?.�33�.��::�;
Unreserved:
Designated (as restated) 4,028,623 �,��
Undesignated 3,658,172 4,37�
Total fund balances 7,894,235 8,095
Total liabilities and fund balances _ $13 653,077 $13,360,.yv
66
Schedule A_2
City of Bangor, Maine
- Statement of Revenues,Expenditures, and
Changes in UnreservedlUndesignated Fund Balance-Budget and Actual-Budgetary Basis
General Fund
For the Fiscal Yeaz Ended June 30, 1997
- Variance
Balances Favorable(LJnfavorable)
Carried Lapsed to
07/01196 Budget Actual Surplus Carried
"� �y��ues:
Ta�ces:
Real and personal property - $30,914,451 $31,137,100 $222,649 -
. Change in deferred property tax revenues - - (123,501) (123,501) -
Tax increment financing district - (588,406) (588,406) - -
Payment in lieu of taxes - 147,364 100,964 (46,400) -
Automobile and boat excise taxes - 2,677,500 2,926,858 249,358 -
� Interest on delinquent taxes - 276,500 258,939 (17,561) -
Totaltaxes - 33,427,409 33,711,954 284,545 -
Intergovernmental revenue:
State revenue sharing - 2,500,000 2,646,891 14b,891 -
Schoolsubsidy - 9,007,755 8,991,551 - (16,204)
Other -Municipal - 920,839 1,008,562 87,723 -
School - 1,721,384 1,675,694 - (45,690)
Total intergovernmental revenue - 14,149,978 14,322,698 234,614 (61,894)
Otherrevenue:
Licenses and pernuts - 326,850 372,003 45,153 -
Charges for services - Municipal - 4,186,835 4,143,170 (43,665) -
School - 2,722,147 2,995,040 - 272,893
Fines, forfeits, and penalties - 22,800 42,350 19,550 -
Revenue from use of money -Municipal - 774,630 766,090 (8,540) -
and property -School - 35,000 158,652 - 123,652
Total other revenue - 8,068,262 8,477,305 12,498 396,545
Totalrevenues - 55,645,649 56,511,957 531,657 334,651
�Xp�nditures•
General government:
Council - 19,961 19,888 73 -
Executive - 1,135,224 1,119,879 15,345 -
Ciry Clerk - 324,519 293,579 30,940 -
Finance - 649,867 648,353 1,514 -
Assessment - 342,037 332,078 9,959 -
Insurance - 61,105 18,765 42,340 -
Planni�lg - 195,197 189,118 6,079 -
�g� - 198,881 198,137 744 -
Personnel - 113,614 103,662 9,952 -
� Economic Develop and Code Enforcement - 465,639 454,933 10,706 -
Total general government - 3,506,044 3,378,392 127,652 -
Continued on following page
67
Schedule A-2�con'tl
City of Bangor, Maine
Statement of Revenues, Expenditures, and
„ Changes in Unreserved/Undesignated Fund Balance-Budget and Actual - Budgetary Basis
General Fund
For the Fiscal Year Ended June 30, 1997
� Vaziance
Balances Favorable(Unfavorable)
Carried Lapsed to
07/O1/96 Budget Actual Surplus Carried
�xnensl.�i�,s�9�'_�L:
Public safety:
Police - 4,246,974 4,435,001 (188,027) -
Fire 277,650 5,040,714 5,288,033 - 30,33I
Total public safety 277,650 9,287,688 9,723,034 (188,027) 30,331
Health, welfare, and recreation
Health and welfare - 1,640,253 1,805,734 (165,481) -
Parks and recreation - 837,737 887,122 (49,385) -
Total health, welfare&recreation - 2,477,990 2,692,856 (214,866) -
� Public buildings and services:
Public services 13,000 7,016,600 6,842,469 172,131 15,000
Total public buildings and services 13,000 7,016,600 6,842,469 172,131 15,000
Other agencies:
Taxes paid to county - 1,176,516 1,176,516 - -
Private Schoolservices - 129,980 115,450 14,530 -
Downtown Development District - 41,046 41,046 - -
Otheragencies 165,000 55,000 139,989 - 80,011
Public library - 723,958 723,958 - -
Total other agencies 165,000 2,i26,500 2,196,959 14,530 80,011
Education:
Regular 259,547 25,135,122 25,036,640 - 358,029
Adult education 35,307 550,007 534,574 - 50,740
Specialrevenue 71,346 1,050,334 1,029,118 - 92,562
Schoollunch 56,561 881,426 858,680 - 79,307
Trust &agency 1,422 1,331,764 1,475,977 - (142,791)
Total education 424,183 28,948,653 28,934,989 - 437,847
Other appropriations:
Pensions and other fringe benefits - 98,227 58,381 39,846 -
Contingent - 52,332 16,857 35,475 -
Debtservice - 1,527,492 1,364,213 163,279 -
Total other appropriations - 1,678,051 1,439,451 238,600 -
Totalexpenditures 879,833 55,041,526 55,208,150 150,020 563,189 �
Excess (deficiency) of revenues
over expenditures (879,833) 604,123 1,303,807 681,677 897,840
Continued on facing page
68
Schedule A-2 �con't�
City of Bangor, Maine
Statement of Revenues, Expenditures, and
Changes in Unreserved/Undesignated Fund Balance-Budget and Actual -Budgetary Basis
General Fund
For the Fiscal Year Ended June 30, 1997
Variance
Balances Favorable (Unfavorable)
Carried Lapsed to
07/O1/96 Budget Actual Surplus Carried
9_t�Q��i ���i�g sQurces (uses)�
Appropriated from designated fund balances - 1,554,517 1,249,123 - (305,394)
Sale of assets 250,000 4,125 264,838 10,713 -
General obligation debt - - 112,610 112,610 -
Main Street Development District - - (112,610) (112,610) -
Operating transfers (85,000) (1,330,594) (1,415,594) - -
City Nursing Facility subsidy - (155,890) (155,890) - -
Parking Fund subsidy - (363,567) (363,567) - -
Park Woods subsidy - (62,714) (62,714) - -
Bass Park subsidy - (250,000) (250,000) - -
Total other fmancing sources (uses) 165,000 (604,123) (733,804) 10,713 (305,394)
Excess (deficiency) of revenues over
expenditures and other sources (uses) ($714,833) - $570,003 692,390 $592,446
Unreserved/Undesignated fund balance, July 1 4,371,274
Appropriation to Designated for subsequent years (1,405,4921
Unreserved/Undesignated fund balance, June 30 $3,658,172
69
' Special Revenue Funds
Special Revenue�funcls are used to account for specific revenues that are legally restricted to
expenditures for particular purposes. -
The following aie the City's Special Revenue funds:
Community Development - Accounts for`federal grants obtained and expended under the
Block Grant Housing and Community Development Act of 1974, as amended, for
the development of viable urban communities:
U�ban Development r,� , ,- Accounts for federal grants obtained and expended under the
Action Grant 3 ' - ' Housing and Community Development Ac� of 1974, as amended, for
the redevelopment of the downtown commercial,core of the City.
� ; r . . . .. ... • . � ' . . . . .
Economic Incentive , . - Accounts for low interest ioans to business's within the Ciry of
Revolving Loan Fund Bangor,for establishment, expansion or redevelopment purposes.
' Job creation or retainage principally for low or moderate income
, persons is a major factor in loan approval. Funding is provided from
the U.S, Department of Housing and Urban Development
Community Development Block Grant Program.
Grant Fund - Accounts for federal and state grants that are legally restricted to
expenditures ailowable by the grantor agency.
Schedule B-1
City of Bangor, Maine
Combining Balance Sheet
Special Revenue Funds
June 30, 1997
(with Comparative Totals for June 30, 1996)
Economic
` Community Urban Incentive
Development Development Revolving Grant Totals
� Block Grants Action Grants Loan Fund Fund 1997 1996
.. Assets�
Cash ($131,208) $202 $3,343 ($161,120) ($288,783) $122,740
Investments - - - 45,650 45,650 -
Loans Receivable 2,642,815 1,115,131 268,028 - 4,025,974 3,555,841
Allowance for uncollectible - (130,131) - - (130,131) (130,131)
Due from other govemments 177,670 - - 161,026 338,696 89,305
Prepaid expenses 17,558 - - 16 17,574 -
Totalassets $2,706,835 $985,202 $271,371 $45,5'72 $4,008,980 �3,637,755
'a ilfties:
Accounts payable $29,120 - - $16,425 S45,545 $46,248
Amounts held for others - - - 659 659 -
Due to rehabilitation recipients 83,379 - - - 83,379 117,815
Deferred revenue . 2,642,815 985,000 268,028 - 3,895,843 3,425,710
Total Liabilities 2,755,314 985,000 268,028 17,084 4,025,426 3,589,773
un 1 ce •
Reserve for encumbrances 64,674 - - 6,261 70,935 70,338
Designated forsubsequent years (113,153) 202 3,343 22,227 (87,381) (22,356)
Total fund balances (48,479) 202 3,343 28,488 (i6,446) 47,982
Total liabilities and fund balances $2,706,835 $985,202 $271,371 $45,572 �4,008,980 S3,637,755
71
Schedule B-2
City of Bangor, Maine
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Special Revenue Funds
For the Fiscal Yeaz ended June 30, 1997
Economic
Community Urban Incentive
Development Development Revolving Grant
Block Grants Action Grants Loan Fund Fund Total
Reven�es;.
Intergovernmental $1,697,209 - - $3,384,935 �5,082,144
Program income 340,791 - 20,441 824 362,056
Charges for services - - - 268,622 268,622
Other 2,814 6 433 - 3,253
Totalrevenues 2,040,814 6 20,874 3,654,381 5,716,075
Exnenditures:
Acquisition of real property 267,877 - - - 267,877
Public works facilities site improvements 387,874 - - - 387,874
Clearance 44,591 - - - 44,591
Business development assistance 373,716 - - - . 373,716
Disposition of real property 32,306 - - - 32,306
Administration 216,959 - - - 216,959
Rehabilitation and preservation activities 724,305 - - - 724,305
Planning 10,474 - - - 10,474
Personnel - - - 502,812 502,812
Other 31,202 - - 2,368,683 2,399,885
Bus operations - - - 795,104 795,104
Economic incentive loans - - 24,600 - 24,600
Totalexpenditures 2,089,304 - 24,600 3,666,599 5,780,503
Excess (deficiency) of revenues over
expenditures (48,490) 6 (3,726) (12,218) (64,428)
Fund balances, July 1 11 196 7,069 40,706 47,982
Fund balances, June 30 ($48,479) $202 $3,343 $28,488 ($16,446)
72
' .
� � Capital Projects F�nd ���
,
The Capital Projects fund is used account for the acquisition and construction of major capital
facilities other than those financed by proprietary funds and trust funds.
Schedule C-1
City of Bangor, Maine
Balance Sheet
Capital Projects Fund
June 30, 1997 and 1996
� 1997 1996
A_��t�
Cash $487,241 ($20,634)
Investment of bond proceeds 1,984,455 2,465,190
Accounts receivables - 11,317
Deferred street assessments 30,130 30,130
Due from other governments 38,403 5,838
Total assets $2,540,229 $2,491,841
L��bili�i�e�
Accounts payable $626,572 � $297,428
Amounts held for others 16,850 16,850
Total liabilities 643,422 314,278
F ind Balanc� '
Reserve for encumbrances 636,789 360,308
Unreserved:
Designated for subsequent years 1,128,253 1,754,252
Undesignated:
Deferred street assessments 30,130 30,130
Future construction - General 41,191 4,714
Future construction - School 60,444 . 28,159
Total fund balances 1,896,807 2,177,563
Total liabilities and fund balances $2,540,229 $2,491,841
74
� �chedule G2
City of Bangor, Maine
Combining Statement of Revenues, Expenditures,
_ and Changes in Fund Balances
Capital Projects Fund
For the Fiscal Yeaz Ended June 30, 1997
Undesignated
for Future
Infrastructures Buildings Equipment Other Construction Total
Revenues•
Interest income $27,082 $53,314 $535 $30,823 $42,731 $154,485
Intergovernmental 518,594 - 9,028 26,682 - 554,304
Totalrevenues 545,676 53,314 9,563 57,505 42,731 708,789
Fxg���latures:
Capital addirions 1,324,975 1,806,659 706,749 1,232,294 1,006 5,071,683
Landfill closure and postclosure
care costs 213,182 - - - - 213,182
Totalexpenditures 1,538,157 1,806,659 706,749 1,232,294 1,006 5,284,865
Deficiency of revenues over
expenditures (992,481) (1,753,345) (697,186) (1,174,789) 41,725 (4,576,076)
9�er�nancing sources (pses):
Operating transfers in(out) 769,346 85,000 827,611 113,163 - 1,795,120
General obligation debt 150,000 1,175,000 - 1,175,000 - 2,500,000
Total other financing sources(uses) 919,346 1,260,000 827,611 1,288,163 - 4,295,120
Excess (deficiency) of revenues and
and sources over expenditures (73,135) (493,345) 130,425 113,374 41,725 (280,956)
and other uses
Fund balances, July 1 725,912 899,354 218,878 270,415 63,004 2,177,563
Residual equity transfer 214,182 (2,394) 32,937 (244,725) - -
Equity transfers from(to)undesignated for
for future construction (11,925) - (13,946) (965) 26,836 -
Fund balances, June 30 $855,034 $403,615 $368,294 $138,099 $131,565 51,896,607
75
This page left intentionally blank
. 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.
, The following are the City's Enterprise:funds ,: �
Sewer Utility Fund - Tlus:fund�ac�ourits for•the costs of construction and operation of the Sewage
Treatment Plant;`the City,sewer"sqstem, and sewer separation activities, and
Y _ , is self sugported through sewer user fees -� „
� ._
� ,:� ,
�'�:.,y F :, ': :.,;-. H ; • :: : ::
Airport Fund ` This fund accounts for the operation of Bangor Interna"tional Airport. The
� '` � ; principal�souices of revenues are landing,fees and,the �ale of aviation fuel.
� Other revenue sources include lease payments for the use of terminal space
:''' and non aviation indust�ial buildings.
z't ; � , ; ' ;
£:,
Park Woods � This fund accounts for the rental of 60 units of surplus housing received from
€� ; �he federal,goverziment pursuaiit to the McKiiuiey Horneless Assistance Act.
The principal saurce of irevenue is-"rentai income.
$ ,
City Nursing Faciliry �` This=fund accounCs for the ope'ration of a City ow�ed nursing home. This is a
61 bed facility, and,pri,ncipal revenue saurces are"Medicaid:and rental income
� � from'excess�space The current facilrty,was the base ho`spital at the former
` Dow A�r Force Base, which closed in 196�
;
F ;3
Parking Fund - This fund ac�ounts for the operation`of the'`Crty=owried parking lots and the
Pickermg S;quare`Garage Revenue sources mcYude monthly lease payments
�� �for p,arking spaces, hourly/daily parkmg fe`es-, and fines and waiver fees for
parki�ng•violations Certain of these;<faclTities are operated under a private
management �ontract , ; , ;
;:; :
Bass Park Fund - This fund accounts for the operation of the Bangor Auditorium, Ban�or Civic
Center, and 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.
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.
Economic Development - This fund accounts for the operation and development of properties
transfened to the City from the Bangor International Airport. The principal
source of revenue is rental income.
C�ty,�co�Bangor, Maine
Comi��ning Balance Sheet
E'�terprise Funds
.�une 30, 1997
(with Compara�a�e Totals for June 30, 1996)
Sewer
Utility Airport Park
Fund Fund Woods
Assets_
Current assets:
Cash $1,175,608 $741,323 $2,873
Investments ~ 2,214,993 4,312,848 -
Due from water district 155,945 - -
Due from other governments - - -
Accounts receivable 1,747,575 1,638,037 660
Less allowance for estimated
uncollectible accounts 22,601 361,410 -
Net accounts receivable 1,724,974 1,276,627 660
Inventory, at cost 21,321 99,015 -
Prepaid expenses 9,737 13,596 -
Total current assets 5,302,578 6,443,409 3,�33
Property, plant & equipment:
Land 683,895 - -
Buildings, plant& equipment 31,946,669 - 2,253,�37
Pipelines &mains 32,198,669 - -
Aircraft operational assets - 187,650,187 -
Parking structures - ' "
Construction in process 2,122,738 521,039 -
. 66,951,971 188,171,226 2,253,537
Less accumulated depreciation 15,150,751 68,038,953 196,487
Net property, plant & equipment 51,801,220 120,132,273 2,057,0�0
Other assets:
Investments - 8,481,056 -
Investment in bond proceeds - 506,744 -
Investment in RRG insurance - - �
Investment held by bond trustee 610,226 - -
Deferred sewer assessments 115,031 - -
Operating rights (net of accumulated
amortization of$993,658 in 1997 and
$946,528 in 1996) - 306,342 -
Loans - 1,522,535 -
Bond issuance costs (net of accumulated
amortization of$124,518 in 1997 and
$103,765 in 1996) 290,544 - -
Deposits - - 15,000
Total assets $58 119,599 $137,392,359 $2,075,583
* Restated
Continued on facing page
78
5chedule D-1
City Municipal Economic
Nursing Parking Bass Park Golf Development Totals
Facility Fund Fund Course Fund 1997 1996*
$36,861 $128,571 $17,637 $131,569 $30,978 $2,265,420 $494,315
10,265 21,598 - 96,891 163,365 6,819,960 8,217,982
- - - - - 155,945 77,352
- - - - - - 284,816
386,198 5,172 118,977 30 - 3,896,649 4,264,091
85,643 4,876 28,127 - - 502,657 438,735
300,555 296 90,850 30 - 3,393,992 3,825,356
13,793 - 10,338 - - 144,467 125,681
2,800 - 26,953 1,680 - 54,766 33,063
. 364,274 150,465 145,778 230,170 194,343 12,834,550 13,058,565
39,575 - 228,572 14,000 - 966,042 952,245
2,791,699 - 5,283,300 1,138,292 1,005,478 44,418,975 42,632,634
- - - - - 32,198,669 30,129,489
- - - - - 187,650,187 185,204,170
- 6,459,608 - - � - 6,459,608 6,457,508
- - 290 3,751 667,635 3,315,453 �,353,966
2,831,274 6,459,608 5,512,162 1,156,043 1,673,113 275,008,934 270,730,012
2,215,904 2,612,593 3,406,674 341,591 10,145 91,973,098 85,237,878
615,370 3,847,015 2,105,488 814,452 1,662,968 183,035,836 185,492,134
- - - - - 8,481,056 6,690,837
- - - - - 506,744 554,087
- - - - - - 21,304
- - - - - 610,226 1,100,865
- - - - - 115,031 115,741
- - - - - 306,342 353,472
- - - - - 1,522,535 887,390
_ - - - - - 290,544 311,297
- - - - - 15,000 19,602
$979,644 $3,997,480 $2,251 266 $1 044 622 $1 857 311 $207 717,864 $208 605 294
79
City of Bangor, Maine
Combining Balance Sheet
Enterprise Funds
June 30, 1997
(with Comparative Totals for June 30, 1996)
Sewer
� Utility Airport Park
Fund Fund Woods
Liabilities and Fund Equitx.
• Cunent liabilities:
Accounts payable $260,211 $859,067 $23,942
Accrued payroll and withholdings 25,328 123,536 1,759
Due to other funds - - 100,288
Worker's compensation self insurance 28,506 107,966 3,119
Accrued leave 31,751 150,645 -
Accrued interest . 385,808 85,333 -
Accrued expenses - 27,917 -
Deferred revenue - 4,352 -
Other current liabilities - - -
Current installments - general and limited
revenue obligation bonds 2,051,043 243,701 -
Total current liabilities 2,782,647 1,602,517 129,108
Long-term liabilities:
Defened liabilities 115,031 - 193,061
Developer payable 58,883 - -
Loans payable - - -
General obligation debt 31,116,098 2,093 -
Limited revenue obligation bonds - 5,160,000 -
Defened amount on refunding (408,402) - -
Capital lease obligations 31,600 - -
Construction retainage 9,951 - -
Arbitrage payable 97,754 - -
Workers' comp self insurance 181,494 52,034 -
Total long-term liabilities 31,202,409 5,214,127 193,061
Totalliabilities 33,985,056 6,816,644 322,169
Fund equity (deficit):
Contributed capital:
City 4,099,570 - -
Federal, state and other 4,671,817 98,687,357 1,866,600
Customers 3,022,844 - -
Total contributed capital 11,794,231 98,687,357 1,866,600
Retained earnings:
Reserved 121,726 2,171,183 -
Reserved for debt service - 539,308 -
Unreserved 12,218,586 29,177,867 (113,186)
Total retained earnings 12,340,312 31,888,358 (113,186)
Total fund equity (deficit) 24,134,543 130,575,715 1,753,414 �
Total liabilities and fund equity $58,119,599 $137,392,359 $2,075,583
* Restated
Continued on facing page
80
Schedule D-1 (con't)
City Municipal Economic
Nursing Parking Bass Park Golf Development Totals
Facility Fund Fund Course Fund 1997 1996�`
$44,088 $1,086 $18,864 $10,033 $106,600 $1,323,891 $1,104,466
61,090 4,200 16,197 9,249 - 241,359 93,998
689,217 - 1,255,355 - - 2,044,860 1,620,820
101,545 3,991 10,000 - - 255,127 303,541
41,361 4,884 15,691 4,057 - 248,389 198,265
3,052 95,501 7,324 681 - " 577,699 613,052
- - 696 - - 28,613 11,194
23,299 - 47,851 - - 75,502 30,361
10,048 - ' - - - 10,048 7,015
25,000 340,894 79,998 60,077 233,333 3,034,046 2,683,342
998,700 450,556 1,451,976 84,097 339,933 7,839,534 6,666,054
- - - - - 308,092 301,014
- - - - - 58,883 63,383
- - - - 259,848 259,848 -
325,008 3,853,572 750,049 - 466,667 36,513,487 37,155,575
- - - - - 5,160,000 5,365,000
- (347,666) - - - (756,068) (842,370)
- - - - - 31,600 61,505
, - - - - - 9,951 18,951
- 9,265 - - - 107,019 101,320
94,455 6,009 - - - 333,992 240,022
419,463 3,521,180 750,049 - 726,515 42,026,804 42,464,400
1,418,163 3,971,736 2,202,025 84,097 1,066,448 49,866,338 49,130,454
62,254 - 451,554 - - 4,613,378 4,792,229
30,599 94,250 670,987 9,158 742,184 106,772,952 110,686,390
- - - - - 3,022,844 3,138,690
92,853 94,250 1,122,541 9,158 742,184 114,409,174 118,617,309
14,876 - 48,438 347,305 - 2,703,528 1,824,703
- - - - - 539,308 539,308
(546,248) (68,506) (1,121,738) 604,062 48,679 40,199,516 38,493,520
(531,372) (68,506) (1,073,300) 951,367 48,679 43,442,352 40,857,531
(438,519) 25,744 49,241 960,525 790,863 157,851,526 159,474,840
$979,644 $3,997,480 $2,251 266 $1 044 622 $1 857 311 $207 717 864 $208 605 294
81
City of Bangor, Maine
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings
Enterprise Funds
For the Fiscal Year ended June 30, 1997
Sewer
, Utility Airport Park
Fund Fund Woods
��erating revenues:
Charges for services $6,246,505 $9,700,711 $220,348
Operating ex�enses: .
Operating expenses other than depreciation
and amortization 2,476,949 � 7,190,191 253,242
Depreciation and amortization
On assets acquired with own funds 1,162,944 1,573,421 4,361
On assets acquired with contributions 317,526 3,819,036 80,091
Total operating expenses 3,957,419 12,582,648 337,694
Operating income (loss) 2,289,086 (2,881,937) (117,346)
l��n-9�era in r enue�e�pen�e.s�-
Interest income 201,930 763,817 -
Interest expense (1,477,878) (347,120) (6,480)
Miscellaneous income (expense) (1,932) (35,563) -
Total non-operating revenues (expenses) (1,277,880) 381,134 (6,480)
Net income (loss) before operating transfers 1,011,206 (2,500,803) (123,826)
Operating transfer from General Fund - - 62,714
Net income (loss) 1,011,206 (2,500,803) (61,112)
Add depreciation and amortization on fixed assets
acquired by grants and contributions 317,526 3,819,036 80,091
Increase (decrease) in retained earnings 1,328,732 1,318,233 18,979
Retained earnings (deficit), July 1 * 11,011,580 30,570,125 (132,165)
Retained earnings (deficit), June 30 $12,340,312 $31,888,358 ($113,186)
* Restated
Continued on facing page
82
`` Schedule D-2
City Municipal Economic
Nursing Parking Bass Park Golf Development
Facility Fund Fund Course Fund Total
. $2,594,963 $572,192 $1,181,732 $588,972 $83,387 $21,188,810
2,853,163 348,000 1,378,430 305,903 38,031 14,843,909
78,272 291,948 98,375 64,906 2,698 3,276,925
7,577 7,250 183,193 555 7,446 4,422,674
2,939,012 647,198 1,659,998 371,364 48,175 22,543,508
(344,049) (75,006) (478,266) 217,608 35,212 (1,354,698)
4,094 1,571 3,649 10,170 6,021 991,252
(49,351) (275,586) (108,140) (5,528) - (2,270,083)
- - 1,000 - - (36,495)
(45,257) (274,015) (103,491) 4,642 6,021 (1,315,326)
(389,306) (349,021) (581,757) 222,250 41,233 (2,670,024)
155,890 363,567 250,000 - - 832,171
(233,416) 14,546 (331,757) 222,250 41,233 (1,837,853)
7,577 7,250 183,193 555 7,446 4,422,674
(225,839) 21,796 (148,564) 222,805 48,679 2,584,821
(305,533) (90,302) (924,736) 728,562 - 40,857,531
� ($531,372) ($68,506) ($1,073,300) $951 367 $48 679 $43 442 352
83
City of Bangor, Maine
Combining Statement of Cash Flows
, Enterprise Funds
Year Ended June 30, 1997
Sewer
Utility Airport Park
Fund Fund Woods
Cash flows from o e�rating activitie�
� Cash received from customers $6,565,372 $9,856,968 $219,688
Cash payments to suppliers for goods and
services (1,524,393) (2,569,711) (201,602)
Cash payments to employees for services (899,680) (4,275,720) (47,430)
Net cash provided by (used in) operating
activities 4,141,299 3,011,537 (29,344)
Cash flows from non-canital��l�c�aag�.cti • ies:
Interfund loans (repayments) - - (32,891)
Operating subsidies received - - 62,714
Net cash provided by (use in) non-capital
financing activities - - 29,823
Cash flows from c�pital and related financing
activities:
Proceeds from general obligation debt 1,486,957 - -
Acquisition and construction of capital assets (1,969,807) (4,146,231) (7,788)
Principal paid on bonds (1,885,784) (236,208) -
Interest paid on bonds (1,499,526) (349,842) -
Proceeds from sale of equipment - 1,501 -
Deferred rehab loan proceeds - - 7,788
Loan proceeds - 37,287 -
Grant monies received for capital assets - 1,882,589 -
Contributions received for capital assets - - -
Investment bond&ban proceeds 490,639 199 - _
Net cash provided by (used in) capital and
related financing activities (3,377,521) (2,810,705) -
�as�_.�ows from investi�g�tivities:
Net sales (purchases) of investments (2,566) (235,232) -
Interest on investments 204,682 763,817 -
Net cash provided by (used in) investing
activities 202,116 528,585 -
Netincrease (decrease) in cash 965,894 729,417 479
Cash, July 1 209,714 11,906 2,394
Cash, June 30 $1,175,608 $741,323 $2,873 .
Schedule of noncash investing, capital and financing activities:
During the year, the Airport fund acquired a fixed asset valued at$900,000 in exchange for 178
acres of land. The asset was subsequently transfened to the General fund in exchange for land, a
building and a note for $299,974. A portion of the note, $37,287, was paid during the year, with the
remainder to be paid in annual installments.
Continued on facing page
84
Schedule D-3
City Municipal Economic
Nursing Parking Bass Park Golf Development
Facility Fund Fund Course Fund Total
Y $2,569,964 $571,932 $1,185,657 $588,942 $83,387 $21,641,910
(684,595) (176,739) (777,316) (115,986) (25,260) (6,075,602)
(2,191,718) (161,537) (597,322) (188,671) - (8,362,078)
(306,349) 233,656 (188,981) 284,285 58,127 7,204,230
248,801 (5,196) 108,409 - - 319,123
155,890 363,567 250,000 - - 832,171
, 404,691 358,371 358,409 - - 1,151,294
- - - - 700,000 2,186,957
(21,545) (2,100) (81,510) (156,625) (834,653) (7,220,259)
(25,000) (340,165) (82,778) (65,538) - (2,635,473)
(18,946) (241,221) (46,300) (6,249) - (2,162,084)
- - 1,000 - - 2,501
- - - - - 7,788
- - - - 259,848 297,135
- ' - - - - 1,882,589
- - - - 5,000 5,000
- - - - - 490,838
(65,491) (583,486) (209,588) (228,412) 130,195 (7,145,008)
(3,250) 13,845 47,144 (92,935) (163,365) (436,359)
4,093 4,517 3,648 10,170 6,021 996,948
843 18,362 50,792 (82,765) (157,344) 550,589
33,694 26,903 10,632 (26,892) 30,978 1,771,105
3,167 101,668 7,005 158,461 - 494,315
$36,861 $128,571 $17,637 $131 569 $30 978 $2 265 420
During the year, the Economic Development fund acquired land and buildings from tfie Airport
fund valued at$1,004,478. A portion of the fixed assets represented Federal contributions and a
portion represented a sale from the Airport. A loan was established, payable to the Airport, in the
amount of$259,848. The loan will be paid in annual installments beginning next fiscal year.
85
City of Bangor, Maine
. Combining Statement of Cash Flows
Enterprise Funds
Year Ended June 30, 1997
Sewer
Utility Airport Park
. Fund Fund Woods
Reconci�xation of o$erating income to net cash
provided by ed inl operating activities:
Operating income (loss) $2,289,086 ($2,881,937) ($117,346)
� Adjustments to reconcile operating income to
net cash provided by (used in) operating
activities:
Depreciation and amortization 1,480,470 5,392,457 84,452
Provision for uncollectible accounts (7,288) 31,264 -
Changes in assets and liabilities:
(Increase) decrease in deposits - - (15,000)
(Increase) decrease in accounts receivable 280,460 156,257 (660)
(Increase) decrease in due from state government 117,000 - -
(Increase) decrease in due from water district (78,593) - -
(Increase) decrease in inventory 4,695 (28,402) -
` (Increase) decrease in prepaid expenses 737 (12,694) -
Increase (decrease) in accounts payable (44,629) 217,151 17,781
Increase (decrease) in accrued expenses 25,861 127,441 1,429
Increase (decrease) in deferred revenue - - -
Increase (decrease) in other liabilities 73,500 10,000 -
Total adjustments 1,852,213 5,893,474 88,002
Net cash provided by (used in) operating activities $4,141,299 $3,011,537 ($29,344)
Continued on facing page
86
I
� Schedule D-3 (con,tl
City Municipal Economic
Nursing Parking Bass Park Golf Development
� Facility Fund Fund Course Fund Total
($344,049) ($75,006) ($478,266) $217,608 $35,212 ($1,354,698)
85,849 299,198 281,568 65,461 10,144 7,699,599
34,643 (924) 6,227 - - 63,922
- 19,602 - - - 4,602
(38,995) 663 (32,706) (30) - 364,989
- - - - - 117,000 �
- - - - - (78,593)
3,516 - 1,405 - - (18,786)
(2,800) - (5,266) (1,680) - (21,703)
(71,707) (10,252) (9,489) 5,184 12,771 116,810
52,198 375 10,915 (2,258) - 215,961
10,963 - 36,631 - - 47,594
(35,967) - - - - 47,533
37,700 308,662 289,285 66,677 22,915 8,558,928
($306,349) $233,656 ($188,981) $284,285 $58,127 $7,204,230
87
���dule D-4
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Sewer Fund
Year Ended June 30, 1997
Favorable
(Unfavorable)
' Budget Actual Variance
Revenues:
Charges for services $5,854,896 $6,244,573 $389,677
Operating subsidy - - -
Interest and other revenue 75,000 193,162 118,162
Totalrevenues 5,929,896 6,437,735 507,839
Expenditures and Encumbrances
Salaries 689,569 677,040 12,529
Fringe benefits 265,777 322,002 (56;225)
Supplies 659,760 591,076 68,684
Contractual services 570,929 392,545 178,384
Interfund charges 430,456 375,359 55,097
Miscellaneous 10,100 3,848 6,252
Debt service 3,584,021 3,464,627 119,394
Depreciation 1,227,570 1,162,944 64,626
Outlay � 152,850 64,763 88,087
Credits - - -
Total expenditures and encumbrances 7,591,032 7,054,204 536,828
Excess of revenues over expenditures and
encumbrances ($1,661,136� ($616,469) $1,044,667
88
Schedule D-5
- City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Airport Fund
Year Ended June 30, 1997
Favorable
� (Unfavorable)
Budget Actual Variance
Revenues:
Charges for services $8,466,387 $9,164,985 $698,598
Operating subsidy - - -
Interest and other revenue 716,000 763,817 47,817
Total revenues 9,182,387 9,928,802 746,415
Expenditures and Encumbrances
Salaries 3,452,622 3,406,583 46,039
Fringe benefits 1,026,694 989,849 36,845
Supplies 1,149,600 1,083,733 65,867
Contractual services 1,324,440 1,184,804 139,636
Interfund charges 474,493 442,359 32,134
Miscellaneous 91,050 84,539 6,511
Debt service 586,054 583,328 2,726
Depreciation 1,493,379 1,573,421 (80,042}
Outlay 1,489,048 1,134,497 354,551
Credits - - -
Total expenditures and encumbrances 11,087,380 10,483,113 604,267
Excess of revenues over expenditures and
encumbrances ($1,904,993) ($554,311) $1,350,682.
� 89
Schedule D-6
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Park Woods Fund
Year Ended June 30, 1997
Favorable
(Unfavorable)
Budget Actual Variance
Revenues:
� Charges for services $249,762 $220,348 ($29,414)
Operating subsidy 62,714 62,714 -
Interest and other revenue - - -
Total revenues 312,476 283,062 (29,414)
Expenditures and Encumbrances
Salaries 41,149 40,666 483
Fringe benefits 9,141 8,193 948
Supplies 88,080 84,269 3,811
Contractual services 131,444 119,488 11,956
Interfund charges 670 626 44 ,
Miscellaneous 41,490 - 41,490
Debt service - 6,480 (6,480)
Depreciation 500 4,361 (3,861)
Outlay - - -
Credits - - -
Total expenditures and encumbrances 312,474 264,083 48,391
Excess of revenues over expenditures
and encumbrances $2 $18,979 $18,977
90
�ch�d�le D-7
�� City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
, Budget and Actual - Budget Basis
Enterprise Funds - City Nursing Facility Fund
Year Ended June 30, 1997
�, Favorable
(Unfavorable)
Budget Actual Variance
�,
Revenues:
Charges for services $2,717,846 $2,599,057 ($118,789)
� Operating subsidy 155,890 155,890 -
Interest and other revenue - - - -
Total revenues 2,873,736 2,754,947 (118,789)
Expenditures and Encumbrances
. Salaries 1,699,909 1,657,627 42,282
Fringe benefits 551,158 568,973 (17,815)
Supplies 306,031 300,636 5,395
Contractual services 144,76$ 179,421 (34,653)
Interfund charges 5,385 5,773 (388)
Miscellaneous 95,137 125,377 (30,240)
Debt service 45,798 74,351 (28,553)
Depreciation 73,120 78,272 (5,152)
Outlay 25,550 24,519 1,031
Credits - - _
Total expenditures and encumbrances 2,946,856 3,014,949 (68,093)
Excess of revenues over expenditures and
encumbrances ($73,120) ($260,002) ($186,882)
91
Schedule D-8
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Parking Fund
Year Ended June 30, 1997
Favorable
(Unfavorable)
Budget Actual Variance
� Revenues:
Charges for services $629,500 $572,192 ($57,308)
Operating subsidy 363,567 $363,567 -
Interest and other revenue 5,000 1,571 . (3,429)
Total revenues 998,067 937,330 (60,737)
Expenditures and Encumbrances
Salaries 121,831 128,075 (6,244)
Fringe benefits 40,672 33,836 6,836
Supplies 2,950 2,744 206
Contractual services 161,900 134,498 27,402
Interfund charges 63,200 48,397 14,803
Miscellaneous - 175 (175)
Debt service 593,514 615,751 (22,237)
Depreciation 300,111 291,948 8,163
Outlay 14,000 2,575 11,425
Credits - - -
Total expenditures and encumbrances 1,298,178 1,257,999 40,179
Excess of revenues over expenditures and
encumbrances ($300,111) ($320,669) ($100,916)
92 �
• Schedule D-9
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Bass Park Fund
Year Ended June 30, 1997
Favorable
(i7nfavorable)
Budget Actual Variance
� Revenues:
Charges for services $1,169,375 $1,182,733 $13,358
Operating subsidy 250,000 $250,000 -
' Interest and other revenue - 3,440 3,440
Total revenues 1,419,375 1,436,173 16,798
Expenditures and Encumbrances
Salaries 438,954 498,480 (59,526)
Fringe benefits 119,405 113,914 5,491
Supplies 192,950 198,932 (5,982)
Contractual services 367,325 400,724 (33,399)
Interfund charges 105,200 122,693 (17,493)
Miscellaneous 60,000 65,687 (5,687)
Debt service 129,078 190,918 (61,840)
Depreciation 100,181 98,375 1,806
Outlay 19,750 12,233 7,517
Credits (22,000) (22,000) -
Total expenditures and encumbrances 1,510,843 1,679,956 (169,113)
Excess of revenues over expenditures and
encumbrances ($91,468� ($243,7� ($152,315)
93
Schedule D-10
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances �
Budget and Actual - Budget Basis
Enterprise Funds - Municipal Golf Course Fund
Year Ended June 30, 1997
Favorable '
(IJnfavorable)
Budget Actual Variance
' Revenues:
Chargesfor services $613,305 $588,972 ($24,333)
Operating subsidy - - -
Interest and other revenue - 10,170 10,170
Total revenues 613,305 599,142 (14,163)
Expenditures and Encumbrances
Salaries 146,365 160,106 (13,741)
Fringe benefits 22,864 26,307 (3,443)
Supplies 48,600 41,616 6,984
Contractual services 65,200 51,883 13,317
Interfund charges 154,265 26,285 127,980
Miscellaneous - - -
Debt service 71,785 71,066 719
Depreciation 54,425 64,906 (10,481)
Outlay 104,000 155,454 (51,454)
Credits - - -
Total expenditures and encumbrances 667,504 597,623 69,881
Excess of revenues over expenditures and
encumbrances ($54,199� $1,519 $55,718
94
Schedule D_ll
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Economic Development Fund
Year Ended June 30, 1997
Favorable
(Unfavorable)
Budget Actual • Variance
Revenues:
Charges for services $86,713 $83,387 ($3,326)
Operating subsidy - - -
Interest and other revenue - - -
Total revenues 86,713 83,387 (3,326)
Expenditures and Encumbrances
Salaries - - -
Fringe benefits - - -
Supplies 3,000 4,593 (1,593)
Contractual services 43,927 18,141 25,786
Interfund charges 7,750 13,857 (6,107)
Miscellaneous 11,786 1,440 10,346
Debt service _ - - -
Depreciation - 2,698 (2,698)
Outlay - - -
Credits - - -
Total expenditures and encumbrances 66,463 40,729 25,734
Excess of revenues over expenditures and
encumbrances $20,250 $42,658 $22,408
95
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Trust funds are used ro account for assets held by the government�in a trustee�capacity. Agency funds
are used to account for assets held by the government as an agent for individuals, private
organizations, other governments and/or other funds:' �:. .� ,
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Schedule E-1
City of Bangor, Maine
" Combining Balance Sheet
Trust and Agency Funds
June 30 ,1997
. (with Comparative Totals for June 30, 1996)
Nonexpendable Trust Funds
" Other Revolving Expendable Agency Totals
Funds Loan Funds Total Trust Funds Funds 1997 1996
Assets:
Cash - - - - $71,922 $71,922 $109,561
Investments, at cost
(Market value,
1997 $1,312,897,
' 1996$6,252,591) 854,551 69,298 923,849 116,925 325,134 1,365,908 6,236,310
Receivables:
Accounts - - - - - - 75
Loans to students - 56,764 56,764 - - 56,764 65,790
Total assets $854,551 $126,062 $980,613 $116,925 $397,056 $1,494,594 $6,411,736
._ ��._a_b�l_ities:
Accounts payable - - - - $2,992 $2,992 $3,541
Amounts held by agency
fund for others - - - - 394,064 394,064 5,366,723
Totalliabilities - - - - ?97,056 397,056 5,370,264
�ur��l��ces:
Reserve for: '
Loans - 126,062 126,062 - - 126,062 126,767
Endowments 529,958 - 529,958 - - 529,958 529,958
Unreserved:
Designated for
subsequentyears 324,593 - 324,593 116,925 - 441,518 384,747
Totalfund balances 854,551 126,062 980,613 116,925 - 1,097,538 1,041,472
Total liabilities and
fund balances $854,551 $126,062 $980,613 $116,925 $397,056 $1,494,594 �6,411,736
97
� Schedule �2
City of Bangor, Maine
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Expendable Trust Funds
For the Fiscal Year Ended June 30, 1997
Revenues•
Interest $7,279
Contributions 42,059
Total revenues 49,338
Expend-�tu'es:
Payments to beneficiaries 12,410
Total expenditures 12,410
Excess of revenues over expenditures 36,928
.
Fund balances, July 1 79,997
Fund balances, June 30 $116,925
98
Schedule E-3
City of Bangor, Maine
Combining Statement of Revenues, Expenses, and
Changes in Fund Balances _
Nonexpendable Trust Funds
For the Fiscal Year Ended June 30, 1997
Other Revolving
Funds Loan Fund Total
• Operating revenues:
Interest $80,757 . $4,776 $85,533
• Other 3,201 - 3,201
Total revenues 83,958 4,776 88,734
Operating ex�enses:
- Perpetual care fees 56,480 - 56,480
Distribution to Parks & Recreation 2,000 - 2,000
Other payments to beneficiaries 5,635 - 5,635
Miscellaneous - 5,481 5,481
Total expenses 64,115 5,481 69,596
Net income 19,843 (705) 19,138
Fund balances, July 1 834,708 126,767 961,475
Fund balances, June 30 $854,551 $126,062 $980,613
99
Schedule E-4
City of Bangor, Maine
Combining Statement of Cash Flows
Nonexpendable Trust Funds
Year Ended June 30, 1997
Other Revolving
Funds Loan Fund Total
Cash flows from onerating activities:
Cash received from customers . $3,201 - $3,201
Cash received on investments 80,757 4,776 85,533
Cash paid to beneficiaries (64,115) - (64,115)
Cash paid for operating expenses - (5,481) (5,481)
Net cash provided by (used in) operating activities 19,843 (705) 19,138
. Cash flows fro�on-c��itt�l�ancing activities:
Student loans made - (5,000) (5,000)
Student loan payments received - 11,162 11,162
Net cash provided by (used in) non-capital financing activities - 6,162 6,162
Cash flows from investing activitie� .
Net sales (purchases) of investments (19,843) (5,457) (25,300)
Net cash provided by (used in) investing activities (19,843) (5,457) (25,300)
Net increase (decrease) in cash - - -
Cash, July 1 - - -
Cash, June 30 - - -
Reconc'�Ii�t��o��erating inc�ffie to�s�sh provid�si�zy (�sed inl o_ge���g�ctivities:
Operating income $19,843 (�705) S 19,138
Adjustments to reconcile operating income to net cash
provided by (used in) operating activities - - -
Net cash provided by (used in) operating activities $19,843 ($705) S19,138
100
Schedule E-5
City of Bangor, Maine
� Statement of Changes in Assets and Liabilities
Agency Funds
For the fiscal year ended June 30, 1997
Balance Balance
June 30, 1996 Additions Deletions June 30, 1997
Assets:
Cash $109,561 - $37,639 $71,922
� Investments 5,260,628 - 4,935,494 325,134
Accounts receivable 75 - 75 -
$5 370 264 - $4 973 208 $397 056
Liabilities:
Accounts payable $3,541 - $549 $2,992
Amounts held by agency
fund for others 5,366,723 - 4,972,659 394,064
$5 370 264 - $4 973 208 $397 056
101
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The general fixed assets account group is used to account for:the City's fixed assets which are not
accounted for in an enferprise or trust fund TYiis self=;balancing account`�`�oup is used to establish
accountmg control of the City's general fixed assets ',�
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Schedule F-1
_ City of Bangor, Maine
Schedule of General Fixed Assets by Source
June 30, 1997
� n ral Fixed Assets
Land $5,198,491
School land 950,988
Buildings 5,053,983
School buildings 26,235,769
Vehicles 6,341,215
. Machinery and equipment 3,878,071
School other 4,412;750
Construction in progress 4,164,402
Total general fixed assets $Sb,235,669
InY�.stment in General Fu�ed As�
General fund $56,23�,669
103
Schedule F-2
City of Bangor, Maine
Schedule of General Fixed Assets by Function
June 30, 1997
Machinery
and
. Land Buildings Vehicles Equipment Total
Generalgovernment $3,682,151 $148,827 $9,999 $583,217 $4,424,194
Public safety 131,355 2,094,213 1,314,994 707,178 4,247,740
Health, welfare and 1,037,595 1,499,094 - 692,513 3,229,202
recreation
Public building and 347,390 1,311,850 5,016,222 1,895,162 8,570,624
services
Education 950,988 26,235,769 - 4,412,750 31,599,507
6,149,479 31,289,753 6,341,215 8,290,820 52,071,267
Construction in
process - 2,982,216 319,712 862,474 4,164,402
Total general fixed
assets $6,149,479 $34,271,969 $6,660,927 $9,153,294 $56,235,669
104
Schedule F-3
City of Bangor, Maine
Schedule of Changes in General Fixed Assets by Function
June 30, 1997
General General
Fixed Assets Fixed Assets
June 30, 1996 Additions Deletions June 30, 1996
General govemment $4,396,643 $29,360 $1,809 $4,424,194
Public safety 4,239,297 8,443 4,247,740
Health, welfare and
recreation 2,888,704 583,298 242,800 3,229,202
Public building and
services 8,336,995 233,629 8,570,624
Education 31,447,964 151,543 31,599,507
51,309,603 1,006,273 244,609 52,071,267
Construction in
process 1,598,450 2,594,531 28,579 4,164,402
Total general fixed
assets $52,908,053 $3,600,804 $273,188 $56,235,669
105
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Schedule Gl
City of Bangor, Maine
Assessed Valuation, Commitment and Collections
Year Ended June 30, 1997
Valuation:
Land and buildings $1,206,956,900
Personal property \ 156,506,6Q0
Total valuation $1,363,463,500
��mmitment•
Real estate and personal property $1,363,463,500
Tax rate 0.02290
Total commitment 31,223,314
Add:
Supplemental talces committed 214,124
31,437,438
�.es�;
Collections - 1997 29,481,626
Abatements 395,775
1997 taxes receivable at June 30, 1997 �1,560,037
107
�chedule G-2
City of Bangor, Maine
Undesignated Fund Balance Sufficiency Calculation
Year Ended June 30, 1997
It is the policy of the Ciry to maintain an undesignated fund balance approximating 7.5% of operating
expenditures. The following table sets forth the calculation as to the suff'iciency of the June 30, 1997
undesignated fund balance.
General Fund expenditures/uses (Schedule A-2)
General government $3,378,392
Public safety ' 9,723,034
Health, welfare and recreation 2,692,856
Public buildings and services 6,842,469
Other agencies , 2,196,959
Education 28,934,989
Other appropriations 1,439,451
Other uses, gross 2,313,987
Gross expenditures and uses $57,522,137
General Fund debt service 2,892,125
Net expenditures and uses $54,630,012
Indicated undesignated fund balance @ 7.50% $4,097,251
Actual undesignated fund balance (Schedule A-2) $3,658,172
Actual undesignated fund balance as a percent
of net expenditures and uses 6.70%
Over (under) funded status ($439,079)
108
Statist�cal Section
.a
STATISTICAL SECTION
General Fund Sources and Uses
Table T: General Governmental Revenues-Budgetary Basis - General Fund On1y,Last Ten
Fiscal Years
Table 2: General Governmental Expenditures -Budgetary Basis - General Fund Only,Last
Ten Fiscal Years �
� Table 3: General Governmental Expenditures/Other Uses and Revenues/Other Sources -
Budgetary Basis - General Fund Only, Last Ten Fiscal Years �
PropertY Tax Data �
Table 4: Assessed and Estimated Market Value, Last Ten Fiscal Years
Table 5: Property T�Levies, Collections arid Delinquencies, Last Ten Fiscal Years
Table 6: Property Ta�c Rate Com�onents,Last Ten Fiscal Years �
Table 7: Principal Taxpayers; Jiine 30,, 199'1�
, " � ,� Debt Stat�stics � �
, . ; , ; . , ' ; �;
Table 8: Cornputation of Legal Debt l�lazgin;'June'30, 1997
Table 9: Ratio ofNet B'onded General Obligation Debt to Assessed Value aiid Net Bonded
General Obligation Debt Per Caprta,Last Ten Fiscal Years '�'
_
Table 10: Ratio of Annual Debt Service Expei�ditures for General Fund, General Obligation
�..
Bonded Debt tii°Total Generai Fund Expenditures, Last Ten Fiscal Years
Table 11: Computafion of Direct and O�erlapp�g Debt, June 30; 1�97 ;
, ,
Table 12: Direct ancl Overlapping Debt;Last Ten��scal Years ' . ' � '
Table 13: Revenue'Band Coverage, Last fi�n,Fisca�:Ye�rs� ;: �
Table 14: Deb� S�rvice.Re:quuements to Maturrty Al1:Bonded IDebt, June 30, 1997
Table 15: Self Supporting;and Tax Supported General Obligatiori Debt, Tl�ne 30, 1Q97 ,
, �:
Define`d,Be�nefit Pension bata
,.� . :_� . ,
. ;. -
Table 16: Defin�d Benefit Perision Plan City" and Employee Rates and Contributions,L•ast
Teri Fiscal Years 3
Table 17: Defined Benefit Pension Plan Funding Status at Cost„and Market Value, Last Ten
,,. � :
Fiscal Years •. ''
,
Demographic Economic and�IVliscellaneous Data
Table 18: Pubiic School Enrollment, Last Ten School`Years
Table 19: Educational Attainment - Persons Age 18 and Over, Calendar 1996
Table 20: Employment Composition, Last Ten Calendar Years
Table 21: Employment Data, Last Ten Calendar Years .
Table 22: Major Employers - Bangor and Bangor MSA, Calendar 1996
Table 23: Residential and Commercial Building Permits and Bank Deposits,Last Ten •
Calendar Years �
Table 24: Ten Largest Current Construction Projects; June 30, 1997
Table 25: Various Demographic Data, 1990 Census
Table 26: Taxable Retail Sales, Last Ten Calendar Years
Table 27: Miscellaneous Data �
City of Bangor,Maine
General Governmental Revenues, Budgetary Basis*
General Fund Only
Last Ten Fiscal Years
Tax Revenues
Fiscal Real Personal Total Tax Intergov-
Year r e ro e xcise eve ue ernmental
1988 $16,254,596 $1,928,009 $2,318,476 $20,501,081 $8,749,115
1989 18,396,912 1,457,196 2,444,835 22,298,943 10,110,512
1990 18,823,850 1,579,998 2,538,950 22,942,798 11,685,235
1991 20,627,960 1,836,642 2,359,558 24,824,160 12,269,912
1992 24,254,687 2,166,822 2,307,113 28,728,622 11,366,929
1993 25,141,883 2,327,456 2,548,060 30,017,399 14,094,486
1994 26,392,128 2,483,933 2,922,952 31,799,013 17,291,808
1995 27,011,014 3,138,803 2,763,619 32,913,436 14,513,�24
1996 27,340,204 3,545,267 2,754,819 33,640,290 13,803,107
1997 27,036,650 3,748,446 2,926,858 33,711,954 14,322,698
* Amounts appear in Schedule A-2.
** "Reimbursements"were primarily grants for human services,which were reclassified as such,
and moved to the Trust and Agency fund,beginning in fiscal 1993.
Continued on facing page
110
Table 1
� Non-Ta�c Revenues
, Licenses/ Charges for Fines and Use of Money Reimburse- Total
Permits Services Forfeitures And Propertv ments** Revenues
$192,845 $2,972,056 $10,203 $1,426,272 $282,274 $34,133,846
237;847 3,448,093 11,931 1,112,318 737,504 37,957,148
211,100 4,323,202 9,453 1,932,699 816,097 41,920,584
_ 199,007 5,154,889 15,355 1,162,157 1,423,846 45,049,326
232,584 5,937,666 12,486 505,967 2,804,902 49,589,156
270,248 6,586,779 11,788 381,952 - 51,362,652
276,167 5,203,023 11,699 530,633 - 55,112,343
268,352 6,936,668 �4,132 911,491 - 55,597;60}
324,639 6,940,083 26,569 1,066,083 - 55,800,771
372,003 7,138,210 42,350 924,742 - 56,511,957
111
City of Bangor, Maine
, General Governmental Expenditures, Budgetary Basis*
� General Fund Only
Last Ten Fiscal Years
-= Health
Fiscal General Public and Parks and Public
_ '1 ear Government afe Welfare Recreation Services
1988 $2,352,271 $6,130,389 $857,180 $697,661 $3,813,924
1989 2,280,921 6,879,079 1,317,769 634,457 4,306,620
� 1990 3,516,105 7,184,337 1,484,309 738,341 3,847,293 ,
1991 3,617,711 7,644,841 2,046,254 748,629 4,126,514
1992 3,184,909 8,054,011 3,857,657 670,214 4,049,770
1993 3,188,999 8,678,863 3,434,463 721,216 4,302,728
1994 3,275,299 9,126,524 4,016,937 894,339 5,659,277
1995 3,243,405 9,233,995 2,455,303 970,084 6,720,880
1996 3,340,732 8,990,888 1,683,177 888,139 7,049,049 ,
1997 3,378,392 9,723,034 1,805,734 887,122 6,842,469
*Amounts appear in Schedule A-2
**"Other Appropriations" includes recreation district tax,contingency,pensions and
other fringes.
**'`"Appropriations to Other Agencies" includes Penobscot County taxes and support
to the Ban�or Public Library and the Bangor Convention and Visitors Bureau.
Continued on facing page
112
Table 2
Appropriation Total
Debt To Other General Fund
Education ervice Other** Agencies*** Ex�enditures
$18,112,132 $1,225,692 $267,994 $1,144,039 $34,601,282
20,338,411 1,186,968 322,910 1,347,075 38,614,210
22,289,738 1,021,821 464,004 1,550,520 42,096,468
24,847,977 1,150,036 222,777 1,732,847 46,137,586
25,486,072 1,210,420 198,564 1,796,519 48,508,136
25,854,492 1,160,983 213,491 1,671,710 49,226,945
26,871,968 1,454,132 200,436 1,715,417 53,214,329
27,999,220 1,641,046 150,474 1,999,580 54,413,987
28,258,718 1,403,761 45,595 2,046,064 53,706,123
28,934,989 1,364,213 75,238 2,196,959 55,208,150
113
City of Bangor, Maine
General Governmental Expenditures/OtherUses
And Revenues/Other Sources, Budgetary Basis*
General Fund Only
Last Ten Fiscal Years
Other Uses
Total
Appropriations Operating General Fund
Fiscal To Transfers Out Total Expenditures ,
Year Fund Balance And Other Other Uses And Uses
1988 - $169,994 $169,994 $34,771,276
1989 - 488,438 488,438 39,102,648
1990 - 1,015,603 1,015,603 43,112,071
1991 - 787,546 787,546 46,925,132
1992 - 415,232 415,232 48,923,368
1993 $433,112 692,527 1,125,639 50,352,584
1994 - 787,897 787,897 54,002,226 �
1995 - 865,462 865,462 55,279,449
1996 - 1,871,914 1,871,914 55,578,037
1997 - 2,360,375 2,360,375 57,568,525
*Amounts appear in Schedule A-2.
Continued on facing page
114
_ Table 3
Other Sources Surplus
(Deficiency)
Total Of Revenues/Other
Appropriations Operating General Fund Sources Over
From Transfers In Total Other Revenues Expenditures/Other
' Fund Balance And Other Sources And Sources Uses
$2,455,015 $222,000 $2,677,015 $36,810,861 $2,039,585
. 1,393,523 - 1,393,523 39,350,671 248,023
641,747 8,000 649,747 42,570,331 (541,740)
276,007 - 276,007 45,325,333 (1,599,799)
818,520 9,300 827,820 50,416,976 1,493,608
- - - 51,362,652 1,010,06&
26,328 108,179 134,507 5�,246,850 1,244,624
260,000 28,770 288,770 55,886,373 606,924
689,909 76,249 766,158 56,566,929 988,892
1,249,123 377,448 1,626,571 58,138;528 570,00�
115
� able 4
�_ City of Bangor, Maine �
Assessed and Estimated Mazket Value
� Last Ten Fiscal Years
,-�
. Assessed and Estimated Market Value*
� Fiscal Real Personal Percent
--r Year Property Property Total Change
1988 $804,676,300 $86,872,700 $891,549,000 NA .
1989 927,665,500 94,536,200 1,022,201,700 14.6�%
1990 1,082,126,000 101,506,000 1,183,632,000 15.79
. 1991 1,126,289,900 94,536,200 1,220,826,100 3.14
1992 1,140,049,000 101,506,000 1,241,555,000 1.70
1993 1,162,189,600 103,825,600 1,266,015,200 1.97
1994 1,183,296,900 109,541,200 1,292,838,100 2.12
1995 1,193,466,200 112,324,800 1,305,791,000 1.00
1996 1,201,371,900 139,604,900 1,340,976,800 2.69
1997 1,206,956,900 156,506,600 1,363,463,500 1.68
*It has been City policy to assess at 100°/a of estimated market value since fiscal 1988.
116
This page left intentionally blank
City of Bangor,Maine
Property Tax Levies, Collections and Delinquencies �
Last Ten Fiscal Years
Percent Delinquent
Fiscal Total Ta�c Current Of Levy Tax
` ea� evX Collections Co ected Collections
1988 $18,125;459 $17,521,214 96.67% . $678,595
1989 20,213,141 19,47�,525 96.34 512,602
� 1990 21,071,913 20,208,740 95.90 467,573
1991 23,097,868 21,507,973 93.12 854,272
1992 26,447,878 24,496,794 92.62 1,402,235
1993 27,118,624 25,125,906 92.65 1,994,355
1994 28,549,008 26,880,298 94.15 2,024,862 �
1995 30,305,921 28,573,651 94.28 1,680,210
1996 31,084,237 29,638;908 9535 1,469,986
1997 31,437,529 29,877,492 95.04 1,570,081
Continued on facing page
118
, Table 5
Percentage Outstanding Ratio of
Total Of Total Tax Current Year Current Year
� Tax Collections Delinquent Delinquencies
Collections To Levx aYes To e
� $18,199,809 100.4% $604,245 3.33%
19,986,127 98.88 739,616 3.72
, 20,676,313 98.12 863,173 4.18
22,362,245 96.82 1,589,895 6.94
25,899,029 97.92 1,951,084 7.43
27,120,261 100.01 1,992,718 7.38
28,905,160 � 101.25 1,668,710 5.92
30,253,861 99.83 1,732,270 5.78
31,108,894 100.08 1,445,329 4.70
31,447,573 100.03 1,560,037 5.03
119
Ta le 6
° City of Bangor,Maine
Property Tax Rate Components
„ (In Dollars Per Thousand of Assessed Value)
Last Ten Fiscal Years
General
General City Fund Debt Penobscot Total Tax
- Fiscal Year Government ervice Education Coun il Rate
1988 $8.29 $1.48 $9.91 $1.10 $20.78
1989 7.86 1.17 9.61 0.86 19.50
1990 7.61 0.97 8.31 0.86 17.75
1991 8.19 0.98 8.76 0.97 18.90
1992 9.13 0.97 10.22 0.98 21.30
1993 9.57 0.91 10.04 0.88 21.40
1994 9.60 1.13 10.41 0.86 22.00
1995 9.72 1.26 11.21 0.86 23.05
1996 9.35 1.34 11.33 0.88 22.90
1997 9.32 1.46 11.51 0.86 23.15
120
Tahle 7
City of Bangor, Maine
Principal Taxpayers
June 30, 1997
Percent Cumula-
_ Assessed of tive
Firm ��e of Business Value ax Base Percent
. BANMAK Associates Shopping mall $38,659,600 2.79% 2.79%
Bangor Hydro-Electric Utility 21,608,000 1.56 4.3�
Wal Mart Stores, Inc. Retailer 1�,860,200 1.14� 5.49
General Electric* Steam turbine manufacturer 1�,702,800 1.13 6.62
Webber Oil Company Fuel distributor 12,860,100 0.93 7.»
Bangor Airport Mall Trust Shopping mall 12,044,500 0.87 8.42
Erin, Inc HotelslMotels 10,699,500 0.77 9.19
Bangor Savings Bank Savings bank 8,940,300 0.64 9.83
Fleet Bank of Maine Commercial bank 8,911,800 0.64 10.47
Cabrel Company Real estate interests 8 575,100 0.62 11.OS
Totals �3,�61,900 11•�
*Net of tax increment financin�assets
121
Table 8
City of Bangor,Maine
Computation of Legal Debt Margin
June 30, 1997
Total State Valuation $1,330,900,000
� Debt Limitation:
15°/o of State Valuation $199,635,000
Debt Applicable to Debt Limitation:
Bonded General Obli�ation Debt
� Le�al Maximum As a Percent of
Dollar State
Pur�ose ercenta�e Amount ount Maximum Valuation
Municipal 7.50% $99,817,500 $13,050,790 13.07% 0.98%
Airport 3.00 39,927,000 40,794 0.10 0.00
School 10.00 133,090,000 12,772,555 9.60 0.96
Sewer 7.50 99,817,500 33,167,141 33.23 2.4
Total Bonded Debt Applicable
To Debt Limit: 5�372�,5�2,QQQ �59.0�1,2$�t 1�.$�°10 4.44°l0.
Margin for Additional Borrowing: $14_O�,.bU�2Q
122
Table
� City of Bangor,Maane
Ratio of Net Bonded General Obligation Debt to Assessed Value
And Net Bonded General Obligation Debt Per Capita
Last Ten Fiscal Yeazs
� Ratio of Net Bonded Debt
Assessed Net Bonded To Assessed Per
Fiscal Year Po�ulation* Value Debt Value Ca�
1988 31,643 $891,549,000 $14,590,000 1.64% $461.08
1989 33,061 1,022,201,700 31,040,000 3.04 938.87
1990 33,176 1,183,629,000 33,695,000 2.85 1,015.64
1991 33,301 1,220,826,100 50,405,000 4.13 1,513.62
1992 32,516 1,241,55�,000 55,860,000 4.50 1,717.92
1993 32,027 1,266,015,200 58,277,090 4.60 - 1,819.62
1994 32,437 1,292,838,100 62,209,000 4.81 1,917.84
1995 32,497 1,305,791,000 57,394,763 4.40 1,76G.1n
1996 32,659 1,340,976,800 58,759,213 4.38 1,799.15
1997 32,986 1,363,463,500 59,031,280 4.33 1,789.58
* Source:Maine Department of Human Services
123
Table 10
City of Bangor, Maine
Ratio of Annual Debt Service Expenditures
For General Fund, Generai Obligation Bonded Debt
_ To Total General Fund Expenditures
Last Ten Fiscal Years
Ratio of Debt
Debt Service Ex enditures Total Gerieral Service to
Fund General Fund
Fiscal Year Principal Interest Total Expenditures* Ex�enditures
1988 $973,945 $712,404 $1,686,349 $34,601,282 4.87%
1989 1,102,988 692,541 1,795,529 38,614,210 4.65
1990 1,039,852 959,567 1,999,419 42,096,468 4.75
1991 1,460,110 1,087,678 2,547,788 46,137,586 5.52
1992 1,552,596 1,005,862 2,558,458 48,508,136 5.27
1993 1,541,233 1,177,919 2,719,152 49,226,945 5.52
1994 2,209,846 1,235,184 3,445,030 53,214,329 6.47
1995 2,358,643 1,085,414 3,444,057 54,413,987 6.33
1996 2,180,072 948,868 3,128,940 53,706,123 5.83
1997 2,039,162 8�2,963 2,892,125 55,208,150 �.24
*Budget basis,Schedule A-2
124
- Tab e 11
City of Bangor, Maine
- Computation of Direct and Overlapping Debt
' June 30, 1997
Percentage Amount
� Total Debt Applicable Applicable
Outstanding To Bangor To Bangor
Direct Debt:
City of Bangor $59,031,280 100.00% $59,031,280
Overlapping Debt:
Penobscot County 3,550,000 22.86 811,530
Maine Vocational Region 4 660,000 33.59 221,693
Total Debt �3,241 280 �6Q,Q54,59�
� 125
- Table 12
City of Bangor, Maine
Direct and Overlapping Debt
Last Ten Fiscal Years
Overlappin�Debt Direct and Overla in Debt
' � � �
Direct Debt Bangor Maine As % of
Fiscal City of Penobscot Recreation Vocational Assessed Per
l Year Bangor Coun District e i n 4 Total Value Capita
1988 $14,590,000 $1,546,911 $560,000 - $16,696,911 1.87% $527.67
1989 31,040,000 1,813,329 480,000 - 33,333,329 3.26 1,008.24
1990 33,695,000 2,072,915 400,000 - 36,167,915 3.06 1,090.18
1991 50,405,000 1,760,796 �20,000 - 52,485,796 4.30 1,�76.10
1992 55,860,000 1,663,253 240,000 - 57,763,253 4.65 1,776.4b
1993 58,277,090 1,598,481 160,000 517,286 60,552,857 4.78 1,890.68
1994 62,209,000 760,461 80,000 527,096 63,576,557 4.92 1,960.00
1995 57,394,763 696,911 - 369,490 58,461,164 4.48 1,798.97
1996 58,759,213 1,007,864 - 295,592 60,062,669 4.48 1,839.06
1997 59,031,280 811,530 - 221,693 60,064,503 4.41 1,820.90
126
w
,rI
T'able 13
City of Bangor, Maine
, Revenue Bond Coverage*
Last Ten Fiscal Years
Net Revenue CalcuIation
Net Revenue Debt Service Re uirements
,_ Fiscal Gross Operating Available for
Year evenues x enses Aebt Service Princi�al Interest otal Coveraae
. 1988-199 No Revenue Bond Indebtedness NA
1993 $14,888,630 $10,962,918 $3,925,712 - $176,126 $176,126 22.29
1994 12,876,641 9,873,956 3,002,685 - 352,253 352,253 8.52
1995 11,853,307 9,861,003 1,992,304 - 352,252 352,252 5.66
1996 9,715,257 7,336,358 2,378,899 190,000 348,073 538,073 4.42
1997 9,932,620 7,190,091 2,742,529 195,000 339,311 534,3I1 5.13
* Revenue debt consists solely of a 1992 limited obligation au-port bond issue.
127
Table 14
City of Bangor, Maine
Debt Service Requirements to Maturity
� All Bonded Debt
June 30, 1997
Limited Obligation,
General Obligation Debt Revenue Debt
. Fiscal r- � Total
Year Tnterest Princi�al Interest rinci al Re�uirements
1998* $2,690,339 $8,868,190 $�29,603 $205,000 $12,093,132
1999 2,284,282 4,568,>j4 318,758 220,000 7,391,594
2000 2,042,624 4,456,007 306,770 230,000 7,035,401
� 2001 1,816,978 3,979,265 293,643 245,000 6,334,885
2002 1,638,945 3,328,003 279,308 260,000 5,506,256
2003 1,489,884 3,295,897 263,789 275,000 5,324,570
2004 1,323,800 3,238,9�6 247,045 290,000 5,099,801
2005 1,159,428 3,217,187 228,890 310,000 4,915,505
2006 1,010,111 3,200,602 208,958 �30,000 4,749,670
2007 858,613 3,179,211 187,368 350,000 4,575,191
Thereafter 2.450.940 17,699,409 567.178 2.650,000 23.367,526
Totals �18,Z6�,244 �59_,Q31,2_$Q �,231,306 �,���QQQ �86 39�,�34
* General obligation principal amounts due in fisca] 1998 consist, in part,of$2,�00,000 in BAN's
and$1,486,957 in advances under a line of credit with the Maine Municipal Bond Bank,both of
which were subsequently replaced with permanent financin�.
128
Table 15
City of Bangor, Maine
' Self Supporting and Tax Supported General Obligation Debt
June 30, 1997
General Obligation Debt Supported by Property Tax Revenues
Percent of
Amount Total
General Fund $6,916,192 11.72%
Education 12,772,555 21.64
Non-Self Supporting Enterprise Fund Debt 6 074,521 10.29
Total ������,2�� 43 64%.
Self-Supporting General Obligation Debt
Sewer Fund $33,167,141 56.19%
. Airport Fund 40,794 0.07
Golf Course 60,077 0.10
Total ��.2��]2 �6•36%
Total General Obligation Debt $5�,931.284 1�Q.991a
- 129
City of Bangor, Maine
Defined Benefit Pension Plan
City and Employee Rates and Contributions
Last Ten Fiscal Yeazs
Ci Rate Com onents
Normal
Covered Retirement Unfunded Survivors
Fiscal Year Payroll Costs Liabili Benefits
1988 $12,640,84� 5.17% 14.10% 0.28% -
1989 13,251,763 11.04 10.72 0.15
1990 15,156,868 9.51 9.92 0.14
1991 15,731,400 10.56 10.60 0.14
1992 16,223,38I 9.99 10.98 0.13
1993 16,875,589 10.10 11.96 0.12�
1994 17,578,929 10.01 1131 0.11
1995 17,944,029 9.89 10.70 0.17
1996 18,302,798 9.82 9.84 0.18
1997* 18,533,66� 9.77 10.26 0.70
* Beginning in fiscal 1997,the City became a Participating Local District
within the Maine State Retirement System's(MSRS}Consolidated Plan.
Accordingly,the City's contributions are calculated using three discrete
employee�roups,rather than the "melded"rate employed in previous.
years. These�roups consist of police and fire personnel eligible to retire
after twenty and twenty five years(Special Plans"1 C" and"2C",
respectively), and all other City employees not covered separately
under teachers'pension plans(Re�ular Plan "A"). In order to
provide uniformity,the fiscal 1997 figures are presented in the same
Continued on facing page
130
Table 6
Ci Contribution Com onents
• Normal Em lo ee Contribution
Retirement Unfunded Survivors Total
Costs L'abil' enefits Rate Amount Contribution
$653,532 $1,782,�59 $�5,�94 6.50% $821,655 $3,292,940
� 1,462,995 1,420,589 19,878 6.50 861,365 3,764,826
1,441,418 1,503,561 21;220 6.50 985,196 3,951,395
1,661,236 1,667,528 22,024 6.50 1,022,541 4,373,329
� 1,620,716 1,781,327 21,090 6.50 1,054,520 4,477,653
1,704,434 2,018,320 20,251 6.50 1,096,913 4,839,919
� 1,759,651 1,988,177 19,337 6.50 1,142,630 4,909,795
1,774,664 1,920,011 30,505 6.50 1,166,362 4,891,542
1,797,335 1,800,995 32,94� 6.50 1,189,682 4,820,957
1,809,999 1,902,000 129,736 6.50 1,204,688 5,046,423
format as for previous years. The dynamic underlyin;the number,however,differs.
Specifically, covered payroll is the sum of the three groups'covered payrolls
(ie. $li,1�5,841, �1,747,762 and��,6�0,062 for plans"A", "1C" and "2C",respectively).
A specific percentage is applied to each amount to determine the City's
contribution for"Normal Retirement Cosu" (8.0%, 19.0%and 11.7%,to plans"A",
"1C"and"2C",respectively). The sum of these separate calculations is shown under the
"Normal Retirement Costs column. Additionally,the City's "Unfunded Liability"contribution,
which had previously been expressed as a percenta�e of covered payroll, is now simply a
monthly lump sum payment as determined by the MSRS. In fiscal 1997,this amount was$1�8,�
�_
�.
131
City of Bangor,Maine
Defined Benefit Pension Plan
Funding Status at Cost and Market Value
Last Ten Fiscal Years
Pension Benefit Obli ation
-- Net Assets Valued at:
Current Current Total
Fiscal Year Recipients Em�loyees Obli$ation Cost Market
1987* Data Not Available Data Not Available
1988 $30,321,227 $29,296,280 $59;617,507 $29,896,646 $32,047,821
1989 36,445,036 30,671,706 67,116,742 33;992,376 37,712,656
1990 38,927,496 33,419,875 72,347,371 37,863,530 41,726,761
1991 43,278,280 35,414,835 78,693,115 41,601,689 46,463,�12
1992 47,178,751 37,061,146 84,239,897 45,298,529 52,9�1,615
1993 49,512,507 41,007,982 90;520,489 48,627,595 60,826,187 '
1994 52,212,495 42,567,275 94,779,770 53,505,473 65,282,924
1995 56,254,100 43,343,943 99,598,043 57,985,791 77,651,448
1996** 61,810,674 44,161,818 105,972,492 63,991,752 89,999,814
*Actuarial data for the fiscal year ending June 30, 1987 was not available, either at
the time or currently.
**Data is typically provided by the State eight to ten months after the close of the
. fiscal year. Therefore, data for fiscal 1997 is not available at this time.
Continued on facing page
132 . , •
-- Table 17
Percent of Full Fundin at: Unfunded Liabilit� at: Years to
� � � Amortize
Cost N arket Cost arket At Cost
� Data Not Available Data Not Available 30
50.15% 5�.76% $29,720,861 $27,569,686 29
50.65 56.19 33,124,366 29,404,086 28
52.34 57.68 34,483,841 30,620,610 27
52.87 59.04 37,091,426 32,229,603 26
•� 53.77 62.86 38,941,368 31,288,282 25
53.72 67.20 41,892,894 29,694,302 24
'
56.45 68.88 41,274,297 29,496,846 23
58.22 77.96 41,612,252 21,946,595 22
60.39 84.93 41,980,740 15,972,678 21
133 .
Table 18
City of Bangor,Maine
Public School Enrollment
Last Ten School Years
School Grades Grades Grades Grades Total
Year K-3 4=5 6=8 -12 Other Enrollment
1988 1,444 545 842 1,255 124 4,210
1989 1,465 598 803 1,162 116 4,144
1990 1,511 635 808 1,085 139 4,178
1991 1,497 639 873 989 148 4,146 �
1992 1,440 617 906 919 181 4,063
1993 1,456 650 946 904 205 4,161
1994 1,387 676 938 965 173 4,139
1995 1,433 640 932 1,054 167 4,226
1996 1,361 617 892 1,056 247 4;173
1997 1,381 651 933 1,169 260 4,394 �
Source: Maine Department of Education
134
� Table 1
City of Bangor, Maine
Educational Attainment,•Persons Age 18 and Over
� Calendar 1996
Penobscot State of
Bangor Coun aine
Less than ninth grade 4.08% 5.06% 5.88%
Ninth to twelfth grade, no diploma 8.50 9.86 9.85
High school, including equivalency 23.61 27.70 27.87
Some college 18.10 1613 13.51
Associate's degree 6.89 5.18 4.98
Bachelor's degree 1129 7.82 8.75
Graduate/professional degree 5.53 3.94 3.98
Source:U.S. Census Bureau
135
Bangor, Maine MSA
Employment Composition
Last Ten Calendar Years
Manufacturin
Total Non- Transportation
Calendar Fann Non- And Public
Year Emnloyment Durable Goods Durable Goods Construction Utilities
1987 45,850 1,560 3,600 2,020 2,980
; 1988 48,580 1,810 3,620 2,240 3,090
1989 50,310 1,890 3,340 2,280 3,290
1990 49,870 1,800 3,150 2,030 3,060
1991 48,020 1,770 2,920 1,640 3,190
1992 47,820 1,610 2,870 1,660 2,920
1993 49,890 1,770 2,950 1,760 2,970
1994 50,300 1,800 2,580 1,710 2,940
1995 51,040 1,820 2,580 1,700 2,990
1996 51,300 1,850 2,440 1,930 3,060
Source: Maine State Deparhnent of Labor
Continued on facing page
136
able 20
Non-Manufacturin
' Finance,
Wholesale/ Insurance,
Retail Trade Real Estate Services Government
12,0 8 0 1,73 0 11,140 10,740
12,920 1,830 11,820 11,250
13,440 1,900 12,400 11,770 �
13,250 1,770 12,680 12,13 0
12,550 1,670 12,710 11,570
12,580 1,660 13,050 11,470
13,340 1,540 13,970 11,590
13,580 1,540 14,770 11,380
13,990 1,640 15,080 11,240
13,930 1,660 15,48Q 10,950
137
Table 21
City of Bangor,Maine - .
..., Employment Data
Last Ten Calendar Years
_ Unem lo ment
Calendar � -
� Year Labor Force Emnloyment umber Percentaee
1987 15,789 15,046 743 � 4.71%
1988 16,095 15,540 556 3.45
1989 16,434 15,833 601 3.66
1990 17,525 16,541 984 5.61
1991 17,681 16,280 1,401 7.92
1992 17,464 16;288 1,176 6.73
1993 17,402 16,017 1,385 7.96
1994 16,558 15,321 1,237 7.47
1995 17,333 16,342 991 5.72
1996 17,717 16,916 SO1 4.52
Source: Maine State Department of Labor
138 -
able 2�
Bangor,Maine
� Major Employers,Bangor and Bangor MSA
Calendar 1996
Em o er escri tion m lo ees Location
Eastern Maine Medical
� Center Regional health care center 2,525 Bangor
University of Maine Main campus _ 2,188 Orono
Bangor Mall Shopping complex 1,642 Bangor
City of Bangor Municipal government 976 Bangor
Fort James Paper Corp. Pulp and tissue producer 910 Old Town
St. Joseph Hospital Health care center 826 Bangor
� Community Health and
Counseling Services Social service provider 665 Bangor
Shop & Save �
Supermarkets Supermarket chain 612 Bangor
� Bangor Mental Health Regional mental health
Institute center 580 Bangor
General Electric Corp. Turbine manufacturer 480 Bangor
Bangor Hydro
Electric Co. Utility 460 Bangor
Eastern Fine Paper, Inc. Paper producer 456 Brewer
Acadia Hospital Mental health/substance
abuse treatment facility 409 Bangor
R.H. Foster, Inc. Fuel wholesaler/distributor 360 Hampden
Irving Oil Corp. Fuel wholesaler/distributor 350 Bangor
MBNA Telemarketing
Systems Credit card telemarketer 300 Orono
Wal-Mart Stores Retailer 281 Bangor
Bangor Publishing Co. Newspaper publisher 280 Bangor
Penquis CAP Social service provider 251 Bangor
Lemforder Corp. Auto parts manufacturer 250 Brewer
139
Table 23
City of Bangor,Maine
� Residential and Commercial Building Permits
And Bank Deposits
Last Ten Calendar Years .
(Dollar Amounts in Thousands)
Buildin Permits
Residential Non-Residential Totals
Calendar Bank
�ear its Value Units Value _ nits Value p_pe osits*
1987 . 412 $7,947.6 241 $16,955.2 653 $24,902.8 "i; $856,961
1988 487 8,670.4 293 27,405.7 780 36,076.1 :;;;: 979,028.0 '
1989 540 8,669.8 193 32,359.3 733 41,029.1 ;;r 1,152,290.0
- 1990 439 9,401.5 179 9,947.8 618 19,3493 ;;;:; 1,064,208.0
:`:�
�:;<
1991 412 4,789.6 166 46,431.0 578 51,220.6 ::::�: 1,033,098.0
1992 377 4,700.7 194 30,264.6 5�1 . 34,965.3 ;::<�: 826,716.0
1993 371 5,718.7 253 10,968.4 624 16,687.1 :;::; 717,982.0
1994 289 4,019.7 274 21,068.0 563 25,087.7 <`>:; 705,589.0
.1::.
1995 279 3,203.0 198 17,392.7 477 20,595.7 ;�?? 749,352.0
1996 283 4,013.8 192 18,773.8 475 22,787.6 ::�;; 762,181.0
* Source: Maine Department of Banking
140
Table 24
� City of Bangor,Maine
Ten Largest Current Construction Projects
June 30, 1997
Estimated
�ompletion Value 1
ro'ect Description Date 000's
St. Joseph's Hospital Expansion Nov-97 $7,167.5
Home Depot New construction Jan-98 b,873.2
EMMC Oncology Expansion Dec-97 6,000.0
Bangor Public Library Expansion Feb-98 4,230.0
EMMC Westgate Renovation and new construction Apr-98 3,�00.0
Ross Care Medical New construction Jun-98 1,800.0
Realty Resources Renovation Sep-97 1,350.0
St. Joseph's Hospital New construction Jun-98 1,200.0 �
Bangor Mall Remodeling and expansion Oct-99 1,117.3
� W.T. Grant's Building Redevlopment Nov�99 6Q0.�
Totals ����$38.Q
141
City of Bangor,Maine
Various Demographic Data
1990 Census
� A e Distribution Household Income
� Age
Category um er ercent CategorX �lumber e cent
<18 7,294 21.99% <$15,000 3,740 27.97%
� ' 18-29 8,058 24.29 $15,000-$29,999 4,050 30.28
30-44 7,792 23.49 $30,000-$44,999 2,859 21.38 .
45=54 2,885 8.70 $45,000-$59,999 1,283 9.59 W
55-64 2,624 7.91 $60,000-$74,999 629 4.70
>64 4� 3.63 >$75,000 $�2 C�2Z
Totals �� 109 99%. Totals 13�,3Z3 1QQ.9�.
Median NA Median �
Sowrce:U.S. Census Bureau
Continued on facing page
� � 142
Table 25
Owner-Occu ied Housin Values
. CategorX Number Percent
<$25,000 31 0.69%
$25,000-$49,999 396 8.87 �
$50,000-$74,999 1,682 37.70
$75,000-$99,999 1,265 28.3�
$100,000-$124,99 445 9.97
$125,000-$149,99 249 5.58
$150,000-$174,99 158 3.54 �
$175,000-$200,00 97 2.17
>$200,000 13 3.1�
Totals _ �� 199 00%
Median $26,20Q
143
able 6
' City of Bangor,Maine
Taxable Retail Sales
Last Ten Calendar Yeazs
(000's)
Ta�cable Retail Sa1es in:
Ban or as Percent of:
Calendar City of Penobscot State of
ea Bangor Coun Maine Countv State
1987 NA NA $8,425,1b3 NA NA
1988 663,226 1,192,781 9,185,402 55.60% 7.22%
� . 1989 668,139 1,170,467 9,133,673 57.08 7.32
1990 644,993 1,1�7,309 8,930,108 56.71 7.22
1991 620,521 1,112,986 8,760,684 55.75 7.08
1992 670,388 1,178,162 9,336,655 56.90 7.18
1993 712,294 1,217,741 9,815,702 58.49 7.26
1994 725,513 1,241,600 10,162,703 58.43 7.14
1995 '731,195 1,269,502 10,414,283 57.60 7.02
1996 784,965 1,333,801 10,915,108 58.85 7.19
Source: Maine State Planning Office
� 144
' Table 27
City of Bangor, Maine
� Miscellaneous Data
� June 30, 1997
City Em�loyees
� Full time 528
Part time 448
Public Education
Number of schools 10
Number of teachers 374
Number of students 4,394
Police Protection
Number of officers 78
Number of stations 1
Number of vehicles 22
Fire Protection .
Number of fire fighters 98
Number of stations 3
Number of vehicles 18
Insurance Service Organization fire protection rating 2
Parks and Recreation
Number of parks 50
Acres of parkland C�00
Indoor ice arena 1
Semi-pro baseball stadium 1
Public golf courses 1
Public swimming pools 2
Sewers
Miles of sanitary sewers , 120
Miles of storm se�vers 18
Miles of combined sew�ers 30
Public Library
Number of branches 1
Number of volumes 450,000
145
�t .
CITY OF BANGOR
FiNAhICiAL STATEIIIIlEt�T PRESENTATiUN
,
Financial Overview
Presented by: KEY PERFORMANCE INDICATORS
Glenn Kersteen
RUNYON KERSTEEN OUELLETTE
7,000
Recently,the City of Bangor completed the
financial audit process. The City will 6,000
receive an unqualified opinion for fiscal
year 1997. 5,000
Further, the City is not expected to report 4,000
any material reportable conditions noted in
internal controls.
3,000
For the first time, the City is applying for
the Certificate of Achievement in Financial 2,000
Reporting, and the City finance staff has
done a remarkable job in producing that 1,000
report.
The remainder of this publication is Acct. Due other
dedicated to providing you with the Cash Invest. 0/S taxes
financial results for fiscal year 19J7 as well Rec. funds
as trend information for certain areas. 01996 339 6,188 2,491 2,349 1621
We hope you find this information useful ❑1�7 �1 6,172 2,501 2,209 2045
and understandable. Finally, we wish to (000's)
express our appreciation to all the
members of the City's staff who were so _
helpful to us during the audit process.
SUMMARY OF SIGNIFICANT CHANGES
INSIDE
l. Asscts . Cash increased by $52M while investments decreased by $16M.
2. Liab��ities And Fund Equity Cash increased and investments decreased due to the types of
3. Re�enue And Expenditure Table deposits at year end.
�. Collc,�ctions And Ta� Rates Outstanding taxes and liens remained relatively stable.
s. Fund Balance Anal��sis . Accounts receivable declined b y
G. Retained Earnin�s- Entcr��rise y $140M, et amounts due from
Funds other funds increased by $424M (Bass Park and the Nursing
7. Comparative Collection Rates FBCIIIty).
8. Rc��cnue And Expcnditures Charts
9. Debt Per Capita and Other Funds
Conclusion
umrox ,��--
��� CITY OF BANCOR 1
`
CITY OF BANGOR
GENERAL FUND LIABILITIES
SUMMARY OF SIGNIFICANT
2,�19 CHANGES
2,500 1,914 1,993
2,�22 s;F • The most significant liability,
F ;` accrued wages, increased by
r�;+ �
2,000 ���`�" $108M. This amount
represents payroll earned prior
986 ` �F�"- to June 30th but not yet paid.
The majority relates to School
�,500 ',_�,�:: Department teachers.
�26 �'� - • Deferred revenue represents
taxes still unpaid 60 days after
1,000 608 s08 the end of the year. These
amounts are not recognized as
,�x;:' ❑1996 revenues in the current year.
� Despite a 95% collection rate,
500 � + �`"��'� °�997 this increased by $126M.
f .�;.
M � • Accounts payable increased by
t.
;
a,-` �, � approximately $260M.
Accts Accrued Deferred Workers
payable wages revenue comp ins.
GENERAL FUND EQUITY �000�•5 SUMMARY OF
5,137 SIGNIFICANT CHANGES
6,000 -
5,000 3,658 Designated fund balances
increased by $630M which
4,000 � includes $1,OOOM for long-
3,000 term advances to other
� �; funds.
2,000 �;� 207
1,000 �` ��996 Undesignated fund
, ,.
_ � '� ❑1997 balance declined by
(1,000) �� � � $713M primarily due to
changes in designated
(2,000) balances.
�eseN�g�stedG��at�s�r��`,9�atedG�� School fund balances
�es Oes�gn v�aes declined by $123M on a
GAAP basis that
approximates the increase
in accrued wages.
lI1NYON .��
�;� CITY OF BANCOR 2
CITY 4F BANGOR
GENERAL FUND REVENUES
; ,
axes , , , , , _
Licenses, permits 326,850 372,003 =t5,1�3
Intergovernmental 14,149,978 14,322,698 172,720
Charges for serviees 6,908,982 7,138,210 229,228
Other education - - -
Fees and frnes 22,800 42,350 19,550
Unclassified - - -
Investment earnings 809,630 924,742 115,112
Sale of assets 254,125 264,838 10,713
Use of surplus 1,554,517 1,249,123 (30�,394)
Tota/revenue 57,454,291 58,025,918 571,627
SUMMARY OF SIGNIFICANT CHANGES
• Tax revenues were more than anticipated as a result of supplemental taxes ($214M) and excise taxes
($249M), net of the increase in deferred property taxes ($126M).
• Charges for services reflect$229M more than estimated. Education reported a $273M excess while the
City fell short of its estimates by $47M.
• The $1,554M use of surplus was planned as part of the budget process, yet only $1,249M was used.
GENERAL FUND EXPENDITURES
k.3
m J � ;t t� ,.1 1 !
General government 3,506,044 3,3?8,392 127,652
Public buildings & services 7,029,600 6,842,469 187,131
Health, welfare, reereation 2,477,990 2,692,856 (214,866)
Public safety 9,565,338 9,723,034 (157,696)
Education 29,372,836 28,934,989 437,847
Insuranee and fringe 98,227 58,381 39,846
Other agencies 2,291,500 2,196,959 94,541
Unclassified 52,332 16,857 35,475
Deht service 1,527,492 1,364,213 I63,279
Operating transfers 2,247,765 2,247,765 -
Total expenditures 58,169,124 57,455,915 713,209
"«� �"� CITY OF BANGOR 3
oz�a.arra/"�
CITY OF BANGOR
PROPERTY TAX COLLECTION RATES
OBSERVATIONS
1029'0
• After a slight drop in the
early 1990's, tax ippy,
collections of current
taxes remained stable �
at 94-95% of the 989'0
commitment.
• In 4 out of the last 5 969'0
years, total collections
have exceeded 100% of 949,0
the commitment.
929'0
�;
909'0 `
�:`
;;�':;:
88qo
1988 1989 199D 1991 1992 1993 1994 1995 1996 1997
Ooll yean 00.40%98.88% 98.12X 96.82% 97.92%100.01% 01.26%99.83X 00.08 100.03
�current yeon 96.67% 96.34X 95.90X 93.12% 92.62% 92.6'S% 94.15X 94.28% 96.36% 96.04%
PROPERTY TAX RATES
_ _ . __ _ __, OBSERVATIONS
23.00
22.00
s�.00 • Tax rates in Bangor have
Zo.00 �emained relatively stable over
�s.00
the past 5 years.
�a.00
��.00
�s.00
15.00
1988 1989 1990 1991 1992 1994 1995 1996 1997
20.78 19.50 17.75 18.90 21.30 22.00 23.05 22.90 23.15
Tax Rate Per Thousand Valuation
un�vox /'�
a�,��� CITY OF BANCOR 4
CITY OF BANGOR
FUND BALANCE ANALYSIS FY 1988 - 1997
9,000
8,000
�
7,000 :;
�
6,000
5,000
N
p 4��0� �
i?
0 j
3,000 ;�
\,"' -
�
2,UUU �
�F
1,000
(1,000)
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
■Reserved 281 354 300 144 415 716 295 318 201 207
O Designated 2,693 1,803 2,861 2,912 1,642 2,321 2,573 3,169 4,025 4,029
�Undesig 2,785 1,776 689 (763) 824 1,797 3,380 4,082 4,371 3,658
OBSERVATION
While Bangor's Reserved fund balances and Designated fund balances have
remained relatively stable over the past ten years, Undesignated fund balance has
recovered from a deficit in 1991 to a healthy $3,658M in 1997.
"`�� �'� C1TY OF BANGOR 5
a�sr.�srrB�"�
CITY OF BANGC� R
UNAPPROPRIATED RETAINED EARNINGS — ENTERPRISE FUNDS
800
600
400
200
�200)
��)
��)
�8�)
(1,000)
�1.200)
1993 1994 1995 1996 1997
❑Pork woods - - (21) (132) (113)
❑Nursirg facil. (326) (2Sn (256) (320) (546)
■Parking find (281) (104) (56) (90) (69)
O Boss park (700) (812) (953) (973) (1,122)
■6olf coiru 228 26S 375 471 604
O Econ. Dev. - - - 49
OBSERVATION
Of the eight enterprise funds operated by the City, four have rather
significant deficits. Addressing these shortfalls has become a major
thrust of the City's management. This chart includes the 6 smaller
enterprise funds. The next chart includes the Sewer and Airport funds.
�
<.7NYON ...�
��� CITY OF BANCOR 6
CITY OF BANGOR
UNAPPROPRIATED RETAINED EARNINGS - SEWER AND AIRPORT FUNDS
_ _ __ _ __ _ _ .
30,000 _ __ _
$
u�
25�0�� �, �' }
��`ti
k
,,.
a. ;�
,�a�`.
��
20,000 �. � �� r�� �
4;
�'` ;u,
N �'� ',
0 15,000 �'' ��
o `,�
o "
�r.: � �� '
.�
10,000 '
�
ti;
yy
5,000 � �� �
�,
�
�.
,N:
C
1993 1994 1995 1996 1997
OSewer Fund 9,044 8,536 8,894 10,128 12,219
�Airport 25,072 27,250 27,797 28,636 29,178
TAX COLLECTION RATES COMPARED TO OTHER CITIES
.9.9% __. . 98.69% _ . 98.10�/...98.30'/0 _.
OBSERVATION
98% s�.ao^
97% � � ° Bangor's tax collection
96% ` rate compares somewhat
o s5.oa� favorably with many cities
95/o in Maine of similar size.
0
94/o ��92 s�, �' .t ��
93%
92%
91%
90%
1996 1997
O Bangor 0 Lewiston O Auburn ❑Portland ■So.Portland
u`�� �
o��� C1TY OF BANCOR 7
CITY OF BANGC� R
1997 REVENUES AND EXPENDITURES - GENERAL FUND
Ir�tergovernmental
25% Fees and fines
Licenses, permits 096 Churges for services
1% 12%
Irnestment eurnings
29'0
Sale of assets
�,�,,,,..--'' 0%
` T�re_"'s"".
i r,�gy� Use of Surplus
,.
2%
O Taxes �Licenses, permits ❑Intergovernmental ❑Charges for services
■Fees and fines D Investment earnings ■Sale of assets ❑Use of Surplus
�f�eneral government �Education ❑Health, welfure, recreution
❑Public sufety ■Insurance and fringe ❑Other agencies
■Unclussified ❑Debt service ■Operatirg transfers
■Public buildings d� services
Education recrtution
��,`_'__'�.`��� 576
50% ;;.�,�'.a,_ _"=
Public safcfy
5��i� �y
+?} �S 1/N
y�k 5r
'?s�Ym Insurance und fringe
076
6enerol government � Other ogencies
Public buildings& 4%
6X
scrviccs
1Z•K Unclossitied
Operotirg tronsfers Debt service 0%
4Yo 2�
lI1NYON �
a��� CiTY OF BANGOR 8
CITY tJF BANGOR
DEBT PER CAPITA - LAST TEN FISCAL YEARS
z000 . . .... .. ____. . _..._... . .___ .._ ___ _ _ __ _.._ .
isoo
�
25 1� }
i
500
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
461 939 1016 1,514 1,718 1,820 1,918 1,766 1,799 1,790
OBSERVATION
Bonded debt and debt per capita is relatively unchanged from 1992.
OTHER SIGNIFICANT FUNDS - FUND BALANCES
30,� _ __ ___ _ _ __ _
_ .___ _
30,000
0 10.000 ��"��:,�.�
o �., r�=a
-10,000
-30,000
-50,000
CDB6 UDA6 EI-RlF 6ronts
O 1996 11 196 7069 40706
O 1997 -48,479 202 3343 25488
FINAL WORDS
�T
This presentation is intended as a tool to assist the City Council and '` �� �°� �' � ,:
management in understanding its financial operating results. ,� ���" ,,� ����� � � �
,
The information contained in this publication should be read in � �.� , � ��
conjunetion with the audited financial statements and '_
related disclosures and should not bc used for any other purposes � ��
;4 �
without the expressed consent of �' �
.: �, � ,�;,
Rl''�l�t)\ i�ERSTFF:� OI��ELL[:TTE. - -
Please contact us at 207-773-2986 or 1-800-486-1784 �.
20 Long Creek Drive, South Portland, ME 04106 s,
�
�.. � �� ;,? � 4:;<: s s�r�: ,� � s Ns, �s°�.-:,� � �..w,.,,F,,F;:
...�w� .*W�v.�_��a"� .... e.��.;'�;s:.��� �e"�r,. �� ,
ll[�.��'�t .�
o�,�.�� CITI' OF BANGOR 9
OMB No.0348-0057
FORM SFSAC U.S.DEPARTMENT OF COMMERCE-BUREAU OF THE CENSUS
�g_g� ACTING AS COLLECTING AGENT FOR
OFFICE OF MANAGEMENT AND BUDGET
Data Collection Form for Reporting on
AUDITS OF STATES, LOCAL GOVERNMENTS,AND NON-PROFIT ORGANIZATIONS
Complete this form, as required by OMB Circular A-133, "Audits . Single Audit Clearinghouse
of States, Local Governments, and Non-Profit Organizations." 1201 E.10'h Street
Jeffersonville,IN 47132
' � ' GENERAL INFORMATION (To be comp/eted by auditee, except for/tem 7)
1. Fiscal year ending date for this submission 2. Type of Circular A-133 audit
mm/dd/yy 6/30/97 1 � Single audit 2 ❑ Program-specific audit
3. Audit period covered FEDERAL 4. Date received by Federal
1 � Annual 3 ❑Other- Months GOVERNMENT clearinghouse
2 ❑ Biennial USE ONLY
5. Employer ldentification Number(EIN)
a. Auditee EIN 016000020 b. Are muttiple EINs covered in this report? 1 ❑Yes 2 � No
6.AUDITEE INFORMATION 7. AUDITOR INFORMATION (To be completed by auditor)
a.Auditee name a. Auditor name
City of Bangor Runyon Kersteen Ouellette
b.Auditee address (Number and street) b.Auditor address (Number and street)
Street 73 Harlow Street Street 20 Long Creek Drive
City Bangor City South Portland
State Maine ZIP Code 04401 State Maine ZIP Code 04106
c.Auditee contact c. Auditor contact
Name Ronald Heller Name Glenn S. Kersteen
Title Finance Director Title Principal
d. Auditee contact telephone d. Auditor contact telephone
207-945-4420 ex 316 207-773-2986
e. Auditee contact FAX(Optional) e.Auditor contact FAX (Optional)
207-945-4446 207-772-3361
f.Auditee contact E-mail (Optional) f. Auditor contact E-mail (Optional)
E I N: 016000020
g.AUDITEE CERTIFICATION STATEMENT-This is to certify g.AUDITOR STATEMENT-The data elements and information
that, to the best of my knowledge and belief, the auditee has: included in this form are limited to those prescribed by OMB
(1) Engaged an auditor to perform an audit in accordance Circular A-133. The information included in Parts II and III of
with the provisions of OMB Circular A-133 for the period the form, except for Part III, Items 5 and 6, was transferred
described in Part I, Items 1 and 3; (2)the auditor has from the auditor's report(s)for the period described in Part I,
completed such audit and presented a signed audit report Items 1 and 3, and is not a substitute for such reports. The
which states that the audit was conducted in accordance with auditor has not performed any auditing procedures since the
the provisions of the Circular; and, (3)the information date of the auditor's report(s). A copy of the reporting package
included in Parts I, II, and III of this data collection form is required by OMB Circular A-133, which includes the complete
accurate and complete. I declare that the foregoing is true auditor's report(s), is available in its entirety from the auditee
and correct. at the address provided in Part I of this form. As required by
OMB Circular A-133, the information in Parts II and III of this
form was entered in this form by the auditor based on
information included in the reporting package. The auditor has
not performed any additional auditing procedures in
connection with the completion of this form.
Signature of certifying official D8t2 Month DayYear
Name/Title of certifying official Signature of auditor D8t2 MonthDayYear
�d� ��,�-- �/,�y19�
' � ' GENERAL INFORMATION - Continued
8. Indicate whether the auditee has either a Federal cognizant or oversight agency for audit. (Mark(X) one box)
1 ❑ Cognizant agency 2 � Oversight agency
9. Name of Federal cognizant or oversight agency for audit. (Mark(X) one box)
o� ❑African ss ❑ Federal Emergency �s ❑Justice oa ❑ Peace Corps
Development Management Agency t� ❑ Labor ss ❑ Small Business
Foundation sa ❑ Federal Mediation and as ❑ National Aeronautics Administration
02 ❑Agency for Conciliation Service and Space ss ❑Social Security
International ss ❑ General Services Administration Administration
Development Administration ss ❑ National Archives and �s ❑State
�o ❑ Agriculture ss ❑ Health and Human Records Administration 20 ❑Transportation
�� ❑Commerce Services os ❑ National Endowment for 2� ❑Treasury
sa ❑Corporation for �a � Housing and Urban the Arts a2 ❑United States
National and Development os ❑National Endowment for Information Agency
Community Service os ❑ Institute for Museum the Humanities sa ❑Veterans Affairs
t2 ❑ Defense Services a� ❑ National Science ❑Other-Specify:
sa ❑ Education oa ❑ Inter-American Foundation
ai ❑ Energy Foundation o� ❑Office of National Drug
ss ❑ Environmental �s ❑ Interior Control Policy
Protection Agency
' � ' FINANCIAL STATEMENTS (To be completed by auditor)
1. Type of audit report (Mark(X) one box)
� � Unqualified opinion 2❑ Qualified opinion s❑ Adverse opinion a❑ Disclaimer of opinion
2. Is a "going concern" explanatory
paragraph included in the audit report? � ❑Yes 2� No
3. Is a reportable condition disclosed? � Yes 2 No-SKIP to Item 5
4. Is any reportable condition reported as
a material weakness? � � Yes 2❑ No
5. Is a material noncompliance
disclosed? � ❑ Yes 2� No
E I N: 016000020
� � ' FEDERAL PROGRAMS (To be completed by auditor)
1. Type of audit report on major program compliance
� � Unqualified opinion 2❑ Qualified opinion s❑ Adverse opinion a❑ Disclaimer of opinion
2. What is the dollar threshold to distinguish Type A and Type B programs§_.520(b)?
$300,000
3. Did the auditee qualify as a low-risk auditee (§_.530)?
� ❑ Yes 2� No
4. Are there any audit findings required to be reported under§_.510(a)?
� ❑ Yes 2� No
5. Which Federal Agencies are required to receive the reporting package? (Mark(X) all that apply)
o� ❑African Development ss ❑ Federal Emergency �s ❑Justice oa ❑ Peace Corps
Foundation Management Agency �� ❑ Labor ss ❑Small Business
02 ❑Agency for 3a ❑ Federal Mediation and as ❑ National Aeronautics Administration
International Conciliation Service and Space ss ❑Social Security
Development ss ❑ General Services Administration Administration
�o ❑ Agriculture Administration ss ❑ National Archives and �s ❑State
�� ❑Commerce ss ❑ Health and Human Records 20 ❑Transportation
sa ❑Corporation for Services Administration 2� ❑Treasury
National and �a ❑ Housing and Urban os ❑ National Endowment a2 ❑ United States
Community Service Development for the Arts Information Agency
t2 ❑ Defense os ❑ Institute for Museum os ❑ National Endowment sa ❑Veterans Affairs
sa ❑ Education Services for the Humanities oo � None
a� ❑ Energy oa ❑ Inter-American a� ❑ National Science ❑Other- Specify:
ss ❑ Environmental Foundation Foundation
Protection Agency �s ❑ Interior o� ❑Office of Nationat
Drug Control Policy
EIN: 016000020
' � ' FEDERAL PROGRAMS - Continued
6. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 7. AUDIT FINDINGS AND QUESTIONED COSTS
CFDA Name of Federal Amount Major Type of Amount of Internal Audit finding
number' program expended program compliance questioned control reference
requifement2 costs findings3 number(s)
a b c a b c d e
14218 CDBG Block Grant , , � Yes O i A N/A
2 ❑ No 2 ❑ B
3 � C
14.238 Shelter Plus Care , � Yes O � � A N/A
2 � No 2 ❑ B
3 � C
16.592 Local Law Enforce Block Grant , � Yes O � A N/A
2 � No 2 ❑ B
3 � C
20.106 Airport Improvement Plan , , � Yes O � A N/A
2 ❑ No 2 ❑ B
3 � C
10.557 Women Infant Children , , � Yes O � A N/A
2 ❑ No 2 ❑ B
3 � C
10.550 Food Distribution , � Yes O � A N/A
2 � No 2 ❑ B
3 � C
66.458 State Revolving Loan Fund , � Yes O t A N/A
2 ❑ No z ❑ B
3 � C
93.197 Lead Poisoning and Prevention , � Yes O � A N/A
2 � No 2 ❑ B
3 � C
13.994 Dental Clinic , t Yes O t A N/A
2 � No 2 ❑ B
3 � C
. ervices , � Yes O � A N/A
2 � No 2 ❑ B
3 � C
TOTAL FEDERAL AWARDS EXPENDED IF ADDITIONAL LINES ARE NEEDED, PLEASE REFER TO THE INSTRUCTIONS
FOR OMB CIRCULAR A-133 WORD PROCESSING TEMPLATE
r
EIN: 016000020:
� � ' FEDERAL PROGRAMS - Continued
6. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 7. AUDIT FINDINGS AND QUESTIONED COSTS
CFDA Name of Federal Amount Major Type of Amount of Internal Audit finding
number' program expended program compliance questioned control reference
requirementZ costs findings3 number(s)
a b c a b c d e
13.268 Immunization Programs , t Yes O � A N/A
2 � No 2 ❑ B
3 � C
84.164A Eisenhower , � Yes O � A 1997-1A
2 � No 2 ❑ B
3 ❑ C
84.255 Esteem Machine , � Yes O � A 1997-1A
2 � No 2 ❑ B
3 � C
84.192 Homeless � Yes O t A N/A
2 � No 2 ❑ B
3 � C
84.010 Title 1 Disadvantaged , � Yes O � A 1997-1A
z ❑ No 2 ❑ B
3 ❑ C
84.011 Title 1 Migrant , � Yes O � A 19s7-1A
2 � No 2 ❑ B
3 ❑ C
84.298 Title IV , � Yes O � A 1997-1A
z � No 2 ❑ B
3 ❑ C
84.281 Eisenhower ElemenUSec , � Yes O � A 1997-1A
2 � No 2 ❑ B
3 ❑ C
84.027 Local Entitlement Title VAEHA , � Yes O t A 1997-1A
2 � No z ❑ B
3 ❑ C
. , � Yes O � A N/A
2 � No 2 ❑ B
3 � C
TOTAL FEDERAL AWARDS EXPENDED IF ADDITIONAL LINES ARE NEEDED, PLEASE CUT AND PASTE THIS PAGE AS
MANY TIMES AS NEEDED
EIN: 016000020
' � ' FEDERAL PROGRAMS - Continued
6. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 7. AUDIT FINDINGS AND QUESTIONED COSTS
CFDA Name of Federal Amount Major Type of Amount of Internal Audit finding
number' program expended program compliance questioned control reference
requirement2 costs findings3 number(s)
a b c a b c d e
81.XXX Institutional Conservation Program , � Yes O � A N/A
z � No 2 ❑ B
3 � C
N/A Passenger Facility Charges , � Yes O � A N/A
2 � No 2 ❑ B
3 � C
10.553 School Breakfast Program , � Yes O � A 1997-1A
2 ❑ No 2 ❑ B
3 ❑ C
10.555 School Lunch Program , t Yes O � A 1997-1A
2 ❑ No 2 ❑ B
3 ❑ C
10.559 Summer Food Program , � Yes O � A 1997-1A
z ❑ No 2 ❑ B
3 ❑ C
� Yes � A
2 ❑ No 2 ❑ B
3 ❑ C
� Yes � A
2 ❑ No 2 ❑ B
3 ❑ C
� Yes � A
2 ❑ No 2 ❑ B
3 ❑ C
� Yes � A
2 ❑ No 2 ❑ B
3 ❑ C
� Yes i A
2 ❑ No 2 ❑ B
3 ❑ C
TOTAL FEDERAL AWARDS EXPENDED , , IF ADDITIONAL LINES ARE NEEDED, PLEASE CUT AND PASTE THIS PAGE AS
MANY TIMES AS NEEDED
� 'Or other identifying number when the Catalog of Federal Domestic Assistance(CFDA)number is not available.
Z Type of compliance requirement(Enter the letter(s)of all that apply to audit findings and questioned costs reporfed for each Federal program.)
A.Activities allowed or unallowed G.Matching,level of effort,earmarking L.Reporting
B.Allowable costs/cost principles H.Period of availability of funds M.Subrecipient monitoring
C.Cash management L.Procurement N.Special tests and provisions
D.Davis-Bacon Act J.Program income 0.None
E.Eligibility K.Real property acquisition and
F.Equipment and real property management relocation assistance
3 Type of internal control findings(Mark(�all that apply)
A.Material weaknesses B.Reportable conditions C.None reported
Yn -
. • � , � • , ' ' • • •
Certified Public Accounta ts
Key Plaza• 23 Water Street
Post Office Box 864
Bangor, ME 04402-0864
(207) 947-3325
MEMORANDUM
To: City of Bangor Finance Committee
Subject: Recommendations to improve accounting controls and
selected comparisons with prior years
Date: December 3, 1996
During the course of our audit for the year ended June 30, 1996 we observed no material
weaknesses in the internal control structure. We noted that our recommendations of the prior
year have been addressed and implemented. Several matters came to our attention that are
opportunities for further strengthening internal control and operating efficiency. Our comments
and suggestions regarding these matters are as follows along with selected comparisons of
prior years:
Airport Fund Transactions with BanAir
On December 11, 1995 the City Council ordered that the Airport Department be authorized to
transfer funds in the amount of $25,000 to BanAir Corporation for the purpose of providing
financing to Travel Concepts, Inc. under such terms and conditions determined by BanAir
Corporation's Board of Directors. At June 30, 1996 the City's Airport Fund is carrying an asset
representing this transfer as a loan receivable of $25,000 from BanAir Corporation. In
confirming this balance with BanAir Corporation, we were informed that they believed that this
transfer did not have to be repaid to the Airport Fund. We recommend that this matter be
clarified.
Employee Fidelity Bonds
For the year ended June 30, 1996 the City's employee fidelity bonds covered selected
employees including the Treasurer, Finance Director, Bass Park employees and several clerks
in the Treasurer's office at amounts ranging from $25,000 to $100,000. We recommend that
consideration be given to providing blanket bond coverage for all employees having access to
the City's assets including employees of the Sewer, Airport, and School Departments and that
the coverage be increased to a minimum of$250,000.
City of Bangor Finance Committee
Page 2
Park Woods Fund
The Park Woods Fund, which is included in the City's Enterprise Funds, incurred a loss for the
year ended June 30, 1996 of $111,416 which when combined with the prior year's losses of
$20,749 produces an accumulated deficit of$132,165.
Uncollected tenant rents exceeded $80,000 at June 30, 1996. The City's legal department has
obtained judgments in three of the larger cases totaling approximately $10,000 which still
remain to be collected. The balance of the uncollected rents has been turned over to an
outside agency for collection. The $80,000 of uncollected rents has not been recognized as an
asset in the City's accounts. Also, at June 30, 1996 the Park Woods Fund owes the City's
General Fund $126,699.
It is our understanding that a new agency has been employed to manage the rentals and
collections. We recommend that this area be monitored to avoid the accumulation of additional
deficits and additional loans from the General Fund.
Sewer Utility Fund Transactions
During our audit testing at the sewer plant we noted that sewer liens were not readily traceable
from computer detail to the actual liens. In some instances the amounts differed or the liens
were difficult to find. We recommend that the lien record process be reviewed.
City departments were not billed by the Sewer Utility Fund for April or June 1996 sewer usage
until September. We recommend that steps be taken to assure the timely billing of this service.
General
Overall, we found the City's accounting and reporting to be significantly improved over the prior
year both as to quality of information and the timing of its availability.
Yours truly,
BRANTNER, THIBODEAU 8�ASSOCIATES
, � .
Gerald E. Thibodeau, CPA
City of Bangor
SELECTED COMPARISONS WITH PRIOR YEARS
June 30, 1996
Reference
Report Year ended June 30
Page 1996 1995 1994 1993 1992
General Fund's unreserved and
undesignated fund balance 36 $4,371,274 $4,081,936 $3,379,526 $1,797,207 $ 824,389
General Fund's subsidies to Enterprise Funds 40
Bass Park 250,000 250,000 277,322 215,108 97,568
Parking Fund 392,578 438,900 493,621 463,419 226,951
City Nursing Facility 183,640 67,747 16,954 - 90,713
General Fund's receivables from Enterprise Funds
Sewer Utility Fund 46 - 683,246 - - -
Park Woods 46 126,699 27,243 - - -
Bass Park 46 1,084,321 1,091,869 995,991 836,647 934,433
City Nursing Facility 46 409,800 396,397 376,251 299,704 222,065
Municipal Golf Course 46 - - 29,87g 2,62g _
1 1,620,820 2,198,755 1,402,121 1,138,980 1,156,498
Unfunded Pension Obligation(not on balance sheet) 32
Using plan's net assets at
Cost 41,600,000 41,600,000 41,300,000 41,900,000 38,900,000
Market 34,300,000 34,300,000 29,500,000 29,700,000 31,200,000
i ' � ' i • � � � . � . -
Certified Public Accountants
Key Plaza• 23 Water Street
Post Office Box 864
Bangor, ME 04402-0864
(207) 947-3325
MEMORANDUM
To: City of Bangor Finance Committee
Subject: Recommendations to improve accounting controls and
selected comparisons with prior years
Date: December 3, 1996
During the course of our audit for the year ended June 30, 1996 we observed no material
weaknesses in the internal control structure. We noted that our recommendations of the prior
year have been addressed and implemented. Several matters came to our attention that are
opportunities for further strengthening internal control and operating e�ciency. Our comments
and suggestions regarding these matters are as follows along with selected compa�isons of
prior years:
Airport Fund Transactions with BanAir
On December 11, 1995 the City Council ordered that the Airport Department be authorized to
transfer funds in the amount of $25,000 to BanAir Corporation for the purpose of providing
financing to Travel Concepts, Inc. under such terms and conditions determined by BanAir
Corporation's Board of Directors. At June 30, 1996 the City's Airport Fund is carrying an asset
representing this transfer as a loan receivable of $25,000 from BanAir Corporation. In
confirming this balance with BanAir Corporation, we were informed that they believed that this
transfer did not have to be repaid to the Airport Fund. We recommend that this matter be
clarified.
Employee Fidelity Bonds
For the year ended June 30, 1996 the City's employee fidelity bonds covered selected
employees including the Treasurer, Finance Director, Bass Park employees and several clerks
in the Treasurer's office at amounts ranging from $25,000 to $100,000. We recommend that
consideration be given to providing blanket bond coverage for all employees having access to
the City's assets including employees of the Sewer, Airport, and School Departments and that
the coverage be increased to a minimum of$250,000.
y
City of Bangor Finance Committee
Page 2 �
Park Woods Fund
The Park Woods Fund, which is included in the City's Enterprise Funds, incurred a loss for the
year ended June 30, 1996 of $111,416 which when combined with the prior year's losses of
$20,749 produces an accumulated deficit of$132,165.
Uncollected tenant rents exceeded $80,000 at June 30, 1996. The City's legal department has
obtained judgments in three of the larger cases totaling approximately $10,000 which still
remain to be collected. The balance of the uncollected rents has been turned over to an
outside agency for collection. The $80,000 of uncollected rents has not been recognized as an
asset in the City's accounts. Also, at June 30, 1996 the Park Woods Fund owes the City's
General Fund $126,699.
It is our understanding that a new agency has been employed to manage the rentals and
collections. We recommend that this area be monitored to avoid the accumulation of additional
deficits and additional loans from the General Fund.
Sewer Utility Fund Transactions
During our audit testing at the sewer plant we noted that sewer liens were not readily traceable "
from computer detail to the actual liens. In some instances the amounts differed or the liens
were difficult to find. We recommend that the lien record process be reviewed.
City departments were not billed by the Sewer Utility Fund for April or June 1996 sewer usage
until September. We recommend that steps be taken to assure the timely billing of this service.
General
Overall, we found the City's accounting and reporting to be significantly improved over the prior
year both as to quality of information and the timing of its availability.
Yours truly,
BRANTNER, THIBODEAU &ASSOCIATES
� .
Gerald E. Thibodeau, CPA
City of Bangor
SELECTED COMPARISONS WITH PRIOR YEARS
June 30, 1996
Reference
Report Year ended June 30
Page 1996 1995 1994 1993 1992
General Fund's unreserved and
undesignated fund balance 36 $4,371,274 $4,081,936 $3,379,526 $1,797,207 $ 824,389
General Fund's subsidies to Enterprise Funds 40
Bass Park 250,000 250,000 277,322 215,108 97,568
Paricing Fund 392,578 438,900 493,621 463,419 226,951
City Nursing Facility 183,640 67,747 16,954 - 90,713
General Fund's receivables from Enterprise Funds
Sewer Utility Fund 46 - 683,246 - _ _
Park Woods 46 126,699 27,243 - _ _
Bass Park 46 1,084,321 1,091,869 995,991 836,647 934,433
City Nursing Facility 46 409,800 396,397 376,251 299,704 222,065
Municipal Golf Course 46 - - 29,879 2,629 -
1 1,620,820 2,198,755 1,402,121 1,138,980 1,156,498
Unfunded Pension Obligation(not on balance sheet) 32
Using plan's net assets at
Cost 41,600,000 41,600,000 41,300,000 41,900,000 38,900,000
Market 34,300,000 34,300,000 29,500,000 29,700,000 31,200,000
p